/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100625.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, June 25, 2010, Vol. 14, No. 174 Headlines 3 G PROPERTIES: Section 341(a) Meeting Scheduled for July 28 ADVANTA CORP: Court Okays $106,000 Sale of BizEquity Corp. AE BIOFUELS: Posts $2.0 Million Net Loss for Q1 2010 ALLEN PRINTING: Files for Chapter 11 Bankruptcy Protection ALLEN PRINTING: Case Summary & 20 Largest Unsecured Creditors ALMATIS B.V.: Has OK for Moelis as Investment Banker ALMATIS B.V.: Restructuring Won't Be Affected by DIC Woes ALMATIS B.V.: Wins Approval for E&Y as Tax Adviser ALMATIS B.V.: Wins OK to Hire Cash Management Adviser ALMATIS B.V.: Negotiations on Prepack Not Privileged AMERICAN APPAREL: NYSE Amex Grants Aug. 16 Extension for Plan AMERICAN CAPITAL: Escapes Bankruptcy with Sufficient Tenders ASAP ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors ATHENS HOLIDAY: Case Summary & 2 Largest Unsecured Creditors BANKRATE INC: Moody's Assigns 'B2' Corporate Family Rating BARNES INC: Case Summary & 20 Largest Unsecured Creditors BLANCA LLC: Has Until Monday to File Plan of Reorganization BLANCA LLC: Hearing on Cash Collateral Access Set for July 20 BOSTON SCIENTIFIC: Moody's Retains 'Ba1' Ratings & Stable Outlook BRIARWOOD CAPITAL: Wants Plan Exclusivity Extended Until August 27 BROADSTRIPE LLC: Seeks to Sell Cable Systems for $1,200 C BEAN: Gets Court Final Okay to Use Cash Collateral CANWEST GLOBAL: Can't Agree With Shareholders on TV Assets Sale CANWEST GLOBAL: CMI Monitor Supports Creditors' Meeting CANWEST GLOBAL: Terms of Court-Approved Amended Plan CC MEDIA: Mark Mays Steps Down as Chief Executive CHEMTURA CORP: AIG Parties Have Civil Action vs. Canada Unit CHEMTURA CORP: Has Civil Action Against Environmental Agencies CHEMTURA CORP: Signs Long-Term Contract With Odyssey Logistics COASTLINE TERMINALS: Section 341(a) Meeting Scheduled for July 12 COASTLINE TERMINALS: Taps Coan Lewendon as Bankruptcy Counsel CORUS BANKSHARES: Gets Court's Nod to Hire BMC as Claims Agent CRYOPORT INC: KMJ Corbin Raises Going Concern Doubt DELTA AIR: Aircraft Owners' Tax Indemnity Claims Are Proper DERRY & WEBSTER: Case Summary & 6 Largest Unsecured Creditors DOT VN INC: Inks MOU With VNNIC to Support Development in Laos DURACO PRODUCTS: Bankr. Court Won't Take Criminal Allegations EAST WEST: Wants Plan Exclusivity Until August 16 EIGEN INC: Committee Wants Kazi Loan Subordinated as Equity FIBERVISIONS DELAWARE: S&P Shifts Rating on $20 Mil. Loan to 'B+' FIRST FOLIAGE: Files for Chapter 11 in Miami FORUM HEALTH: Court Approves Sale Process and Lower Break-Up Fee GARLOCK SEALING: Boyer Insists on Being Asbestos Panel Member GARLOCK SEALING: Proposes to Pay Temporary Workers GARLOCK SEALING: Sec. 341 Meeting of Creditors on July 14 GARLOCK SEALING: Seeks to Assume New Vista Contract GENERAL GROWTH: Faces Deadline to Pay Alderwood Mall's $300MM Loan GENERAL GROWTH: Helps Lure Macy to West Valley Mall GENERAL MOTORS: South African Claimants Want Class Treatment GENERAL MOTORS: GM South America Formed; Headquarters in Brazil GLOWPOINT INC: Stockholders Vote to Amend 2007 Incentive Plan GREAT NEIGHBORHOODS!: Case Summary & 20 Largest Unsec. Creditors GTC BIOTHERAPEUTICS: LFB Biotech Holds 83.2% of Shares GUN LAKE: S&P Assigns 'B' Rating to $160 Mil. Senior Loan IMPLANT SCIENCES: Approves Increase of Shares of Common Stock INTERNATIONAL COMMERCIAL: Recurring Losses Cue Going Concern Doubt ITI INTERNET: Files for Protection Under Chapter 11 JOSE FRANCO: Section 341(a) Meeting Scheduled for July 19 JOSHUA FARMER: Files Schedules of Assets and Liabilities KRONOS INTERNATIONAL: Moody's Raises Corp. Family Rating to 'B3' L-1 IDENTITY: S&P Puts 'B+' Rating on CreditWatch Developing LEHMAN BROTHERS: JPM's Dimon Said Barclays Misled Court on Sale LENNAR CORP: Fitch Affirms Issuer Default Rating at 'BB+' LINCOLNSHIRE CAMPUS: Section 341(a) Meeting Scheduled for July 22 LIONS GATE: S&P Retains CreditWatch Negative on 'B-' Rating LIONS GATE: In Merger Talks With Metro-Goldwyn-Mayer MAGIC BRANDS: Travistock Objected to Luby's Buying Fuddruckers MAIDENFORM BRANDS: S&P Raises Corporate Credit Rating to 'BB+' MARILYN UPTEGROVE: Voluntary Chapter 11 Case Summary MECHANICAL TECH: Stockholders Approve Lim, Robb as Directors METRO-GOLDWYN-MAYER: In Merger Talks With Lions Gate MGIC INDEMNITY: S&P Corrects Counterparty Credit Ratings to 'B+' MOVIE GALLERY: Gamers to Block COKeM's $3MM Bid for Video Assets MWB LLC: Case Summary & Largest Unsecured Creditor NEWARK GROUP: Seeks to Hire Grant Thornton as Tax Accountant NORTH AMERICAN PETROLEUM: Cash Collateral Hearing Set for July 6 NORTH AMERICAN PETROLEUM: Gets 30 Add'l Days to File Schedules NORTH AMERICAN PETROLEUM: Section 341(a) Meeting Set for June 29 NOVADEL PHARMA: Registers 10-Mil. Shares Under 2006 Equity Plan PATRICK HACKETT: U.S. Trustee Drops Ch. 7 Case Conversion Plea POLARIOD CORP: Auction of Photos Nets $12.4 Million PRES-LAHAINA SQUARE: Section 341(a) Meeting Scheduled for July 28 PRM REALTY: Has Until August 4 to File Reorganization Plan REVLON INC: Files 2009 Annual Report for Profit Sharing Plan RIVER WEST: Hearing for Competing Plans Set for July 30 RME EQUIPMENT: Case Summary & 8 Largest Unsecured Creditors ROBERT N LUPO: U.S. Trustee Wants Case Converted to Chapter 7 ROBERT N LUPO: Cash Collateral Hearing Scheduled for June 29 ROBERT N LUPO: U.S. Trustee Forms 4-Member Creditors Committee ROCKY MOUNTAIN: Gets 5-Year Probation for Illegal Exports SAHARA ENEGY: Creditors Approve BIA Proposal SHOPPES OF LAKESIDE: Section 341(a) Meeting Scheduled for July 21 SHOPPES OF LAKESIDE: Taps Bryan Mickler as Bankruptcy Counsel SL GREEN: Court Dismisses Certain Legal Claims Made Against Firm SMURFIT-STONE: Deregisters Unsold Stock Under Savings Plan SMURFIT-STONE: Kruger Wants Claim vs. SSC Canada Allowed SMURFIT-STONE: To Hold Call on Emergence on July 1 SOUTH BAY EXPRESSWAY: Valley Crest, 2 Others in Creditors' Panel SOUTH BAY EXPRESSWAY: Wins Nod for Imperial as Fin'l Advisor SPRINT NEXTEL: Reports Results of Exchange Offer for Stock Options TAVERN ON THE GREEN: Remains Vacant; Food Carts May Be Set Up TELIFONDA (CAYMAN): Reaches Settlement With Aurelio Resource TRIBUNE CO: Examiner Seeks July 27 Extension of Report TRUMP ENTERTAINMENT: Chapter 11 Examiner to Quit US AIRWAYS: F. Holcombe Insists on Reserve for Claim US AIRWAYS: Judge Hilton Remands Holcombe Case to Bankruptcy Court US AIRWAYS: Stockholders Elect Board Members at Annual Meeting USEC INC: Files 2009 Annual Report for Savings Program VEBLEN WEST: Gets Final OK to Access AgStar's Cash Collateral VISTEON CORP: UBS AG & Goldman Sachs Report Equity Stake VYTERIS INC: Re-Elects Eight to Board of Directors WASHINGTON MUTUAL: Objects to $5 Billion Putative Class Claim WASHINGTON MUTUAL: Objects to Idaho's $1.6 Million Claim WASHINGTON MUTUAL: Susman Godfrey Now Counsel to Equity Panel WEINSTEIN CO: Goldman Sachs to Own Films in Restructuring Deal WORLDSPACE INC: Sale to Yazmi USA Completed YOUNG BROADCASTING: Ownership Transitioned to a Shareholder Group * California Lawmakers Considers Bill on Defaulting Mortgages * Public Company Filings Trail 2009 in Amount, Number * BOOK REVIEW: The Executive Guide to Corporate Bankruptcy ********* 3 G PROPERTIES: Section 341(a) Meeting Scheduled for July 28 ------------------------------------------------------------ The U.S. Trustee for the Eastern District of North Carolina will convene a meeting of 3 G Properties, LLC's creditors on July 28, 2010, at 10:00 a.m. The meeting will be held at USBA Creditors Meeting Room, Two Hannover Square, Room 610, 434 Fayetteville Street Mall, Raleigh, NC 27601. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Wake Forest, North Carolina-based 3 G Properties, LLC, dba Granville Park Partners, LLC, Lake Glad Road Commercial, LLC, dba Lake Glad Road Partners, LLC, filed for Chapter 11 bankruptcy protection on June 14, 2010 (Bankr. E.D. N.C. Case No. 10-04763). Gregory B. Crampton, Esq., and Kevin L. Sink, Esq., at Nicholls & Crampton, P.A., assist the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. ADVANTA CORP: Court Okays $106,000 Sale of BizEquity Corp. ---------------------------------------------------------- Advanta Corp., et al., sought and obtained authorization from the Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to sell the assets of BizEquity Corp. to EMG Technologies, LLC, free and clear of liens, claims, and encumbrances for $106,000. The assets to be sold include: a. intellectual property; b. software and other code; c. Internet URLs and domain names; d. Web sites; e. customer, costs and other information; f. written technical information, date, and research and development information; and g. certain assumed contracts. The assets to be sold exclude BizEquity's license to data from the National Business Database of Experian Information Services under an amendments, dated March 1, 2009, to the Business Marketing Services Master Agreement, dated February 28, 2000, between Experian Information Solutions, Inc., and Advanta Business Service Corp. At closing, BizEquity will pay amounts determined by the Court to be necessary to cure monetary defaults, if any, and pay for all actual or pecuniary losses that have resulted from any defaults, under the assumed contracts, over and above a floor of $2,500. The Buyer will be responsible for cure amounts up to the $2,500 floor. As promptly as practicable after the Closing, BizEquity will be required to either change its name or dissolve, and won't otherwise be permitted to use in commerce the name "BizEquity Corp." Should BizEquity receive a superior company proposal and accept it, then upon termination of its asset purchase agreement with the Buyer, BizEquity will pay the Buyer a termination fee in an amount equal to any and all-out-of-pocket fees, costs and expenses incurred by the Buyer in connection with the negotiation, drafting, execution and delivery of the APA, including the fees, costs and expenses of the Buyer's advisors and legal counsel, as reflected on invoices provided by the Buyer to BizEquity, by wire transfer of immediately available funds no more than three business days after the later of the date of the termination and the date on which the Buyer provides BizEquity with wire transfer instructions and invoices. A copy of the APA is available for free at: http://bankrupt.com/misc/ADVANTA_CORP_assetpurchasepact.pdf About Advanta Corp. Advanta Corp. -- http://www.advanta.com/-- has had a 59-year history of being a leading innovator in the financial services industry and of providing great value to its stakeholders, including its senior retail note holders and shareholders, prior to the recent reversals. It has also been a major civic and charitable force in the communities in which it is based, particularly in the Greater Philadelphia area. In June 2009, the Federal Deposit Insurance Corporation placed significant restrictions on the activities and operations of Advanta Bank Corp., a wholly owned subsidiary of the Company, as the Bank's capital ratios were below required regulatory levels. On November 8, 2009, Advanta Corp. filed for Chapter 11 (Bankr. D. Del. Case No. 09-13931). Attorneys at Weil, Gotshal & Manges LLP, and Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Alvarez & Marsal serves as financial advisor. The Garden City Group, Inc., serves as claims agent. The filing did not include Advanta Bank Corp. The petition says that Advanta Corp.'s assets totaled $363,000,000 while debts totaled $331,000,000 as of September 30, 2009. AE BIOFUELS: Posts $2.0 Million Net Loss for Q1 2010 ---------------------------------------------------- AE Biofuels, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.0 million on $2.2 million of revenue for the three months ended March 31, 2010, compared with a net loss of $2.5 million on $2.5 million of revenue for the same period a year ago. The Company's balance sheet as of March 31, 2010, showed $20.8 million in assets, $25.9 million of liabilities, for a stockholders' deficit of $5.2 million. The Company has experienced losses and negative cash flow since inception and currently has a working capital deficit and total stockholders' deficit. "These factors raise substantial doubt about our ability to continue as a going concern." "We have produced minimal gross profit, have less than one month of operating cash, have incurred losses from inception through March 31, 2010, and have negative working capital of $19,136,033." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6546 Cupertino, Calif.-based AE Biofuels, Inc. (OTC BB: AEBF) - http://www.aebiofuels.com/- is an international biofuels company focused on the development, acquisition, construction and operation of next-generation fuel grade ethanol and biodiesel facilities, and the distribution, storage, and marketing of biofuels. The Company currently operates a biodiesel manufacturing facility with a nameplate capacity of 55 million gallons per year (MGY) in Kakinada, India and has a next- generation integrated cellulose and starch ethanol demonstration facility in Butte, Montana. ALLEN PRINTING: Files for Chapter 11 Bankruptcy Protection ---------------------------------------------------------- Nashville, Tennessee-based print shop operator Allen Printing Co. made a voluntary filing under Chapter 11 (Bankr. M.D. Tenn. Case No. 10-06427), listing assets and debts of up to $10 million. Brian Reisinger at Business Journal of Nashville reports that the Company said "cooperative discussions" with major creditors allowed the company to "walk confidently into the [Chapter 11] process," though there is no completely pre-packaged reorganization plan. ALLEN PRINTING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Allen Printing Company, Inc. 415 Spence Ln Nashville, TN 37210 Bankruptcy Case No.: 10-06427 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: George C. Paine II Debtor's Counsel: Elliott Warner Jones, Esq. 1600 Division Street Suite 675 Nashville, TN 37203 Tel: (615) 916-5264 E-mail: elliott@elliottwarnerjones.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/tnmb10-06427.pdf The petition was signed by Paul E. Heffington, co-owner. ALMATIS B.V.: Has OK for Moelis as Investment Banker ---------------------------------------------------- Almatis B.V. and its debtor affiliates received the U.S. Bankruptcy Court's authority to employ Moelis & Company LLC as their investment banker effective as of April 30, 2010. Remco de Jong, chief executive officer of Almatis, says Moelis is qualified for the job since it has extensive experience in the restructuring of distressed companies. He adds that the firm is familiar with the Debtors' business given its prior employment with the Debtors. As investment banker to the Debtors, Moelis will be tasked to: (1) review and analyze the Debtors' business plans and financial projections; (2) prepare and provide a written report stating its opinion of a valuation range of the Debtors to be used in their bankruptcy cases; (3) prepare a written liquidation analysis regarding the liquidation value of the Debtors and a comparison of recoveries to creditors under a potential restructuring plan and under a liquidation, and the firm's view regarding the feasibility of the plan; (4) offer testimony by its managing director or another professional acceptable to the Debtors as to such valuation, liquidation analysis and feasibility in hearings before the Court; (5) advise and attend meetings with the Debtors, their advisers and other concerned parties; and (6) provide general investment banking advice regarding the Debtors' bankruptcy cases. The Debtors intend to pay Moelis a monthly fee of $150,000 for the first three months after the Petition Date. If the employment expires or is terminated prior to the fourth month, the firm will receive a $150,000 fee for that month. For the next three months thereafter, Moelis will not receive a monthly fee. For the eighth month after April 30, 2010, and for each succeeding month, Moelis will receive a $150,000 monthly fee until its employment expires or is terminated. In addition to payment of fees, the Debtors will indemnify and reimburse Moelis for its necessary expenses. Jared Dermont, managing director at Moelis, assures the Court that his firm does not hold or represent interest adverse to the Debtors, and is a "disinterested person" under Section 101(14) of the Bankruptcy Code. About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V. estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ALMATIS B.V.: Restructuring Won't Be Affected by DIC Woes --------------------------------------------------------- Dubai International Capital LLC, the owner of Almatis, said its proposal for a three-month extension to repay its debt will not affect the current restructuring process undertaken by Almatis, according to a report by the International Financing Review. A DIC spokesperson said the repayment problem will have no impact on the refinancing proposal DIC is working on for Almatis or on Almatis' own funding, IFR reported. DIC has asked its lenders for a debt extension so that it could implement a "consensual longer term plan" that would allow it to "maximize the value of its business for the benefit of all its stakeholders. DIC has $2.6 billion of debt maturing by 2011, with $1.25 billion falling due this month, according to a report by The Wall Street Journal. About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V. estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ALMATIS B.V.: Wins Approval for E&Y as Tax Adviser -------------------------------------------------- Almatis B.V. and its debtor affiliates received a U.S. Bankruptcy Court order authorizing the employment of Ernst & Young Belastingadviseurs LLP as their tax adviser effective as of April 30, 2010. The Debtors want to tap Ernst & Young for tax advisory services in connection with the implementation of their Chapter 11 plan. E&Y will also tasked to resolve the implications of the plan for countries where the Debtors are located, and provide other services upon agreement with the Debtors. In return for its services, the firm will be paid on an hourly basis and will be reimbursed for its expenses. The E&Y professionals expected to render services and their hourly rates are: * E&Y The Netherlands Professionals Hourly Rates ------------- ------------ Hans Grimbergen EUR795 Tom Philibert EUR543 Sangini Sewmangal EUR229 * E&Y The United Kingdom Professionals Hourly Rates ------------- ------------ Reinout Kok EUR795 * E&Y Germany Professionals Hourly Rates ------------- ------------ Ralf Eberhardt EUR580 Marco Huder EUR340 * Ernst & Young USA Professionals Hourly Rates ------------- ------------ Charles Lenns EUR821 Heather Hudak EUR645 Jean Hepner EUR585 Scott Syglowski EUR581 The Debtors will indemnify E&Y for any claim arising from or in connection with its employment. The firm, however, will not be indemnified for claims stemming from gross negligence, willful misconduct or breach of its duties. In a declaration, Hans Grimbergen, a partner at E&Y, assures the Court that his firm does not have interest adverse to the Debtors' estates, their creditors and equity security holders; and is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V. estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ALMATIS B.V.: Wins OK to Hire Cash Management Adviser ----------------------------------------------------- Almatis B.V. and its affiliated debtors received permission from the U.S. Bankruptcy Court to employ Talbot Hughes McKillop LLP as their cash management adviser effective April 30, 2010. The Debtors tapped the services of the firm to review and to assist them in preparing cash forecasting and analysis reports, presentations required in connection with their restructuring and other reporting obligations. Talbot will also be tasked to assist the Debtors in responding to information requests from creditors and their advisers, and assist the executive management in implementing the steps to complete the restructuring. Talbot Hughes will be paid for its services on an hourly basis and will be reimbursed for its necessary expenses. The hourly rates of the firm's professionals are: Professionals Hourly Rates ------------- --------------- Partners GBP625 - GBP795 Directors GBP545 Associates/Senior Associates GBP350 - GBP495 Support Staff GBP85 The Debtors, with Court approval, also propose to indemnify the firm for any claim arising in connection with its employment. Talbot Hughes, however, will not be indemnified for any claim arising from its gross negligence, willful misconduct or breach of duties. "[Talbot's] professionals are well qualified to act on the Debtors' behalf, given their extensive experience and expertise in the restructuring process and their knowledge of the Debtors' business," says Almatis Chief Executive Remco de Jong. Talbot Hughes specializes in crisis stabilization and cash management, financial restructuring, among other things. The firm has served as financial restructuring adviser to many other bankrupt companies and is also familiar with the Debtors' businesses and financial affairs in light of its previous employment with the Debtors, according to Mr. de Jong. In a declaration, Dean Merritt, Esq., a partner at Talbot, has assured the Court that the firm does not hold or represent interest adverse to the Debtors, and that it is a "disinterested person " under Section 101(14) of the Bankruptcy Code. About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V. estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ALMATIS B.V.: Negotiations on Prepack Not Privileged ---------------------------------------------------- Bill Rochelle at Bloomberg News reports that at the behest of junior lenders, U.S. Bankruptcy Judge Martin Glenn has ordered Almatis B.V. to produce documents about negotiations leading up to the agreement on its prepackaged plan. Almatis on July 19 is scheduled to seek confirmation of a plan negotiated with holders of first-lien debt. The plan is opposed by second-lien and mezzanine debt holders who would almost be wiped out under the plan. Judge Glenn, according to the report, rejected the first lien lenders' arguments that that documents need not be produced under the so-called common interest doctrine. Judge Glenn pointed out that the agreement on the plan was negotiated at arm's length between the senior lenders and Almatis. Mr. Rochelle notes that the decision is important because it requires disclosure of documents created in the give-and-take during negotiations on a bankruptcy reorganization plan. About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V. estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) AMERICAN APPAREL: NYSE Amex Grants Aug. 16 Extension for Plan ------------------------------------------------------------- American Apparel, Inc., received a letter from the NYSE Amex LLC that the Exchange accepted the Company's previously submitted plan of compliance and, pursuant to such plan, has granted the company an extension until August 16, 2010, to regain compliance with its continued listing standards. As previously disclosed, on May 18, the Company received a letter from the Exchange stating that the company's timely filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 is a condition for the Company's continued listing on the Exchange, as required by Sections 134 and 1101 of the Exchange's Company Guide, and that the Company's failure to timely file the Form 10-Q is a material violation of the Company's listing agreement with the Exchange. The letter from the Exchange provided that the Company must submit to the Exchange by June 1, a plan to bring the Company in compliance with Sections 134 and 1101 of the Company Guide by no later than August 16, or it would be subject to delisting procedures. On June 1, the company submitted its plan of compliance to the Exchange. On June 17, the Company received a letter from the Exchange stating that the Exchange completed its review of the company's compliance plan and granted the Company an extension until August 16, for the company to file the Form 10-Q. The Company will be subject to periodic reviews by the Exchange during the extension period. Failure to make progress consistent with the plan or to regain compliance with continued listing standards by the end of the extension period could result in the company being delisted from the Exchange. Although no assurances may be given in this regard, the Company currently expects to complete the preparation and review of the financial statements and related disclosures for the Form 10-Q and file the Form 10-Q prior to July 16, 2010, but in any event, by no later than August 16, 2010. About American Apparel American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of June 15, 2010, American Apparel employed approximately 10,000 people and operated over 280 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. American Apparel also operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. AMERICAN CAPITAL: Escapes Bankruptcy with Sufficient Tenders ------------------------------------------------------------ American Capital, Ltd., said Wednesday it has received a sufficient number of tenders to complete its private offers to exchange outstanding unsecured public and private notes for cash payments and new secured notes and the related consent solicitation of its outstanding public notes. The Company is extending the expiration time of the Exchange Offers for three days to satisfy all closing conditions to the Exchange Offers. The Company is not extending the voting deadline for the Company's solicitation of votes to accept a standby plan of reorganization, which expired on June 22, 2010. Because the Company anticipates satisfying the conditions to the Exchange Offers after the new expiration time, it does not intend to proceed with the Standby Plan. The Company has received tenders representing approximately 98% of the aggregate principal amount outstanding of the Company's unsecured public 6.85% Senior Notes due August 1, 2012. This exceeds the 85% minimum tender requirement (subject to reduction under certain circumstances) that is a condition to consummating the Exchange Offers. The indenture relating to the new secured notes contains additional closing conditions, which must be satisfied in order for the Company to complete the Exchange Offers. In extending the expiration time, the Company is targeting an announcement on June 28, 2010 that it has accepted the Exchange Offers, has satisfied these conditions and is closing the Exchange Offers on such date, or as soon as practicable thereafter. The Exchange Offers and the Consent Solicitation were previously scheduled to expire at 11:59 p.m., New York City time, on June 22, 2010 (as previously extended on June 9, 2010). The Exchange Offers and the Consent Solicitation have now been extended until 5:00 p.m., New York City time, on June 25, 2010, unless further extended or earlier terminated. There is no right to withdraw public and private notes that were tendered on or prior to June 22, 2010 and there will be no right to withdraw public and private notes that are subsequently tendered. All other terms of the Exchange Offers and the Consent Solicitation remain unchanged. Holders of public notes who have not tendered in the Exchange Offers continue to have the right to tender their notes. The Company has been advised of the following information by, as applicable, the exchange agent for the Exchange Offers and the voting agent for the Standby Plan, as of 11:59 p.m. New York City time on June 22, 2010: * With regard to lenders under the Company's existing credit agreement, whose approximately $1.4 billion of claims constitute Class 3, Existing Credit Agreement Claims, under the Standby Plan, all of the lenders by outstanding principal amount participated in the solicitation of votes for the Standby Plan, with 100% in principal amount and 100% in number of votes cast supporting the Standby Plan. In connection with a restructuring of the credit agreement, lenders with approximately 49% in principal amount have elected to have their loans repaid in cash and approximately 51% in principal amount have elected to become lenders in an amended credit agreement or receive new secured notes in payment for their loans. * With regard to the holders of the Company's unsecured private notes, whose approximately $406 million in claims constitute Class 4, Private Notes Claims, under the Standby Plan, approximately 63.7% of holders by outstanding principal amount participated in the solicitation of votes for the Standby Plan, of which 100% in principal amount and 100% in number of votes cast supported the Standby Plan. With regard to the Exchange Offers, the following unsecured private notes have been tendered: -- $83.7 million in aggregate principal amount (100%) of outstanding 5.92% Senior Notes, Series A due September 1, 2009. -- $94.9 million in aggregate principal amount (100%) of outstanding 6.46% Senior Notes, Series B due September 1, 2011. -- $134.2 million in aggregate principal amount (100%) of outstanding 6.14% Senior Notes, Series 2005-A due August 1, 2010. -- Euro 14.8 million in aggregate principal amount (100%) of outstanding 5.177% Senior Notes, Series 2006-A due February 9, 2011. -- 3.3 million pounds Sterling in aggregate principal amount (100%) of outstanding 6.565% Senior Notes, Series 2006-B due February 9, 2011. Holders of $71 million in aggregate principal amount of the foregoing unsecured private notes have elected to receive new secured notes, while holders of $265 million in aggregate principal amount have elected to receive cash in payment for their notes. None of the $75 million of outstanding Floating Rate Senior Notes, Series 2005-B due October 30, 2020, have been tendered. * With regard to the holders of the Public Notes, whose approximately $550 million in claims constitute Class 6, Public Notes Claims, under the Standby Plan, approximately 79.7% of holders by outstanding principal amount participated in the solicitation of votes for the Standby Plan, of which approximately 74.8% in principal amount and 46% in number of votes cast supported the Standby Plan. With regard to the Exchange Offers, $539 million in aggregate principal amount (approximately 98%) of outstanding unsecured public notes have been tendered and the same percentage has voted in favor of the Consent Solicitation. Holders of $536 million in aggregate principal amount have elected to receive new secured notes, while holders of $3 million in aggregate principal amount have elected to receive cash in payment for their notes. * With regard to the holders of the Company's outstanding swap agreements, whose claims constitute Class 7, Swap Claims, under the Standby Plan, all of the holders by notional amount participated in the solicitation of votes for the Standby Plan, with 100% in notional amount and 100% in number of votes cast supporting the Standby Plan. About American Capital Bethesda, Maryland-based 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 has $14 billionin capital resources under management and eight offices in the U.S., Europe and Asia. ASAP ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: ASAP Enterprises of Sarasota, Inc. dba ASAP Rental Equipment & Sales 5377 McIntosh Rd Sarasota, FL 34233 Bankruptcy Case No.: 10-14817 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Richard J. McIntyre, Esq. McIntyre, Panzarella, Thanasides & Eleff 6943 East Fowler Avenue Temple Terrace, FL 33617 Tel: (813) 899-6059 Fax: (813) 899-6069 E-mail: rich@mcintyrefirm.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/flmb10-14817.pdf The petition was signed by Carl Castoro, chief executive officer. ATHENS HOLIDAY: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Athens Holiday Group, LLC P.O. Box 6018 Oak Ridge, TN 37831-6018 Bankruptcy Case No.: 10-32950 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Richard Stair Jr. Debtor's Counsel: Thomas Lynn Tarpy, Esq. Hagood, Tarpy & Cox PLLC Suite 2100, Riverview Tower 900 South Gay Street Knoxville, TN 37902-1537 Tel: (865) 525-7313 E-mail: ltarpy@htandc.com Scheduled Assets: $3,900,000 Scheduled Debts: $2,450,000 A list of the Company's 2 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tneb10-32950.pdf The petition was signed by Charles B. Hicks, member. BANKRATE INC: Moody's Assigns 'B2' Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service assigned Bankrate, Inc., a B2 Corporate Family Rating, B1 Probability of Default Rating, and a B2 rating to the company's proposed $280 million senior secured notes due 2015. These first time ratings are assigned in connection with Bankrate's proposed acquisitions of NetQuote, Inc., and CreditCards.com for a combined purchase price of approximately $350 million. Proceeds from the notes, an incremental $80 million investment by equity sponsor Apax Partners, and existing cash will be utilized to fund the purchase of the equity and refinance the debt of NetQuote and CreditCads, and pay transaction fees and expenses. In conjunction with the transactions, approximately $238 million of existing Bankrate subordinated shareholder notes will be converted into preferred stock. The acquisitions improve Bankrate's scale in online credit card and insurance product information and will approximately double the company's revenue base. The rating outlook is stable. Assignments: Issuer: Bankrate, Inc. -- Corporate Family Rating, Assigned B2 -- Probability of Default Rating, Assigned B1 -- Senior Secured Regular Bond/Debenture, Assigned B2, LGD4 - 66% Outlook Actions: Issuer: Bankrate, Inc. -- Outlook, Assigned Stable Bankrate's B2 CFR reflects the company's strong brand and good market position in online consumer finance advertising, high leverage following the acquisitions, integration risks given the significant scale of the acquisitions, exposure to highly cyclical client advertising spending, and event risks related to acquisitions and cash distributions or leveraging actions by the equity sponsor. The company has built a large audience of consumers searching for interest rate and other consumer finance product data, which Bankrate collects and posts in a variety of online and traditional media outlets. The audience of consumers close to a purchase decision attracts marketing spending by a wide variety of financial institutions seeking to generate customer leads. Bankrate's ability to generate high value leads and facilitate transactions for its marketing partners drives the majority of its revenue. Client marketing spending is highly sensitive to cyclical downturns in consumer spending and factors such as changes in interest rates that can materially affect demand for consumer finance products but are outside of the company's control. Moody's does not consider the consumer rate and finance information as exclusive and entry barriers are low for online businesses. The relationships with financial data providers and scope and depth of the online databases (encompassing more than 3 million pieces of information daily) would nevertheless take time to replicate, which provides some near term protection from competitors. Bankrate's ability to drive a large majority of the traffic to its websites at no cost through search engine marketing enhances its margins, but is a potential risk should the cost of that traffic increase significantly. Bankrate has grown aggressively through acquisitions since the current CEO arrived in 2004, but the size of the proposed acquisitions is much larger than the company has taken on previously. Moody's believes the enhancement to Bankrate's scale and market position as a result of the acquisitions is mitigated in the near term by integration risk and the financial leverage resulting from the incremental debt. Debt-to-EBITDA leverage is high following the acquisitions (approximately 5.7x LTM 3/31/10 pro forma for the acquisitions, incorporating Moody's standard adjustments including partial debt treatment of the holding company preferred stock, excluding certain costs from EBITDA that will fall away as a result of the acquisition, and prior to the company's estimate of synergies). Moody's expects the recovery in client marketing spending from recent cyclical lows and realization of acquisition synergies will reduce leverage to a 5x range over the next 12-18 months. The company has a sizable pro forma cash position, but the majority of that cash relates to an accrual for dissenting shareholders in Apax' September 2009 acquisition. Moody's believes the absence of a revolver weakens Bankrate's liquidity position, which is exposed to volatile client marketing spending. Moody's expects the company will generate moderate free cash flow and there are no required debt payments over the next 12 months or financial maintenance covenants. Bankrate faces refinancing risk at the 2015 note maturity date and will be exposed to prevailing market conditions if the cash balance is not built up as the maturity approaches. The stable rating outlook reflects Moody's expectation that Bankrate will generate modest free cash flow and reduce leverage as client spending recovers from recessionary levels and that consumer finance interest rates will increase only modestly over the next 12-18 months. Moody's anticipates that dissenting shareholder payment will be made within the next 12-18 months, and that Bankrate will utilize a portion of its free cash flow for acquisitions. Moody's does not expect in the rating that there will be sizable acquisitions or cash distributions to shareholders within the next 12-18 months. The B2 rating and LGD4-66% assessment on Bankrate's proposed senior secured notes reflects the first priority lien on substantially all of the assets of Bankrate and its operating subsidiaries. The company does not plan to put in place a revolver in the near term and the note is the only debt instrument. Because of the single debt class and lack of financial maintenance covenants, Moody's utilizes a 65% mean family loss assumption in accordance with the Loss Given Default notching methodology, which results in a Probability of Default Rating of B1 that is one notch higher than the B2 CFR. Bankrate's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Bankrate's core industry and believes Bankrate's ratings are comparable to those of other issuers with similar credit risk. Bankrate, headquartered in North Palm Beach, FL, is a privately owned network of consumer banking and personal finance websites, which provides information on many finance related matters including mortgages, credit cards, auto loans, money market accounts, certificates of deposit, and home equity loans. Bankrate was acquired by private equity investment group, Apax Partners in September 2009 for approximately $555. Bankrate's revenue for the 12 months ended March 31, 2010 pro forma for the NetQuote and CreditCards acquisitions was approximately $258 million. BARNES INC: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Barnes Inc. dba Prospector Saloon and Gaming Parlor fka Prospector Casino P.O. Box 477 Black Eagle, MT 59414 Bankruptcy Case No.: 10-61483 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court U.S. Bankruptcy Court, District of Montana (Butte) Judge: Ralph B. Kirscher Debtor's Counsel: Steven M. Johnson, Esq. P.O. Box 1645 Great Falls, MT 59403 Tel: (406) 761-3000 E-mail: sjohnson@chjw.com Scheduled Assets: $1,036,625 Scheduled Debts: $1,524,362 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mtb10-61483.pdf The petition was signed by Jack Barnes, company's president. BLANCA LLC: Has Until Monday to File Plan of Reorganization ----------------------------------------------------------- The Hon. Barry Russel of the U.S. Bankruptcy Court for the Central District of California directed Blanca, LLC, to file a Plan of Reorganization and explanatory Disclosure Statement by June 28, 2010. Downey, California-based Blanca, LLC, filed for Chapter 11 bankruptcy protection on February 23, 2010 (Bankr. C.D. Calif. Case No. 10-16519). Carolyn A. Dye, Esq., who has an office in Los Angeles, California, assists the Company in its restructuring effort. BLANCA LLC: Hearing on Cash Collateral Access Set for July 20 ------------------------------------------------------------- The Hon. Barry Russel of the U.S. Bankruptcy Court for the Central District of California, in a third interim order, authorized Blanca, LLC, to use the cash collateral in which East West Bank and Bank of the West claim an interest in. A continued hearing on the Debtor's continued access to the cash collateral will be held on July 20, 2010, at 2:00 p.m. at Courtroom 1668, 255 East Temple Street, Los Angeles, California. Objections, if any, are due on before 4:00 p.m. on July 10. The cash collateral consists of proceeds, products, rents or profits of properties located in 5831 Firestone Blvd., Southgate, California; 8077 Florence Ave., Downey, California; and 4705 Durfee Ave., Pico Rivera, California. The Debtor will use the cash collateral postpetition to fund its business operations. The Debtor will also use the excess rents from each property to pay debt service to the respective lenders as funds are available. The Debtor said that the preservation and enhancement of the collateral resulting from the Debtor's ongoing operations affords adequate protection to secured parties. About Blanca LLC Downey, California-based Blanca, LLC, filed for Chapter 11 bankruptcy protection on February 23, 2010 (Bankr. C.D. Calif. Case No. 10-16519). Carolyn A. Dye, Esq., who has an office in Los Angeles, California, assists the Company in its restructuring effort. BOSTON SCIENTIFIC: Moody's Retains 'Ba1' Ratings & Stable Outlook ----------------------------------------------------------------- Moody's commented that Boston Scientific Corporation's Ba1 ratings and stable outlook remain unchanged at this time following the company's announcement that it has put in place a new $2.0 billion 3-year revolver and $1.0 billion 3-year term loan. The last rating action on Boston Scientific was taken on February 1, 2010, when Moody's affirmed Boston Scientific's ratings and stable outlook following the announced $1.75 billion litigation settlement with Johnson & Johnson. Boston Scientific Corporation, headquartered in Natick, Massachusetts, is a worldwide developer, manufacturer and marketer of medical devices, specializing in a broad range of interventional and cardiac rhythm management devices. BRIARWOOD CAPITAL: Wants Plan Exclusivity Extended Until August 27 ------------------------------------------------------------------ Briarwood Capital, LLC, asks the U.S. Bankruptcy Court for the Southern District of California to extend its exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan until August 27, 2010, and October 26, respectively. The Debtor proposes a hearing on its exclusivity on August 9, at 11:00 a.m. before the Hon. Peter W. Bowie. Rancho Santa Fe, California-based Briarwood Capital, LLC, filed for Chapter 11 bankruptcy protection on February 23, 2010 (Bankr. S.D. Calif. Case No. 10-02677). Jeffry A. Davis, Esq., at Mintz Levin Cohn Ferris Glovsky & Popeo, assists the Company in its restructuring effort. In its schedules, the Debtor disclosed $292,798,759 in total assets against $18,563,641 in total liabilities. BROADSTRIPE LLC: Seeks to Sell Cable Systems for $1,200 ------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Broadstripe LLC is seeking permission from the Bankruptcy Court to sell several small money-losing cable systems in the Washington, D.C., area for $1,200 to New Day Broadband LLC. Broadstripe said there were no other offers except from buyers wanting to purchase other operations the company doesn't want to sell. Broadstripe added that if the cable systems aren't sold, it would incur $273,000 in costs to tear down the systems in compliance with local regulations. A hearing on the request is scheduled for July 1. Bloomberg notes that Broadstripe will lose its exclusive right to propose a Chapter 11 plan after July 2, when it completes its 18th month in bankruptcy. The Company has been unable to confirm a plan in view of a suit where the unsecured creditors' committee contends that secured lenders' claims should be subordinated or recharacterized as equity. About Broadstripe LLC Headquartered in Chesterfield, Missouri, Broadstripe LLC -- http://www.broadstripe.com/-- provides videos and telephone services to consumers and business in Maryland, Michigan, Washington and Oregon. The Company and five of its affiliates filed for Chapter 11 protection on January 2, 2009 (Bankr. D. Del. Lead Case No. 09-10006). Attorneys at Ashby & Geddes, and Gardere Wynne Sewell LLP represent the Debtors in their restructuring efforts. The Debtors tapped FTI Consulting Inc. as their restructuring consultant, and Epiq Bankruptcy Consultants LLC as their claims agent. In its petition, Broadstripe listed assets and debts between $100 million and $500 million. C BEAN: Gets Court Final Okay to Use Cash Collateral ---------------------------------------------------- C. Bean Transport, Inc., sought and obtained interim and final approval from the U.S. Bankruptcy Court for the Western District of Arkansas to use cash collateral from April until November 15, 2010 or confirmation of the Debtor's Plan of Reorganization by a final, nonappealable order, whichever comes first, or at a later date to which Bank Midwest, N.A., and Financial Federal Credit, Inc., may stipulate in a written notice to the Debtor's counsel of record in this case without further notice to creditors or order of the Court. Bank Midwest holds a first lien on the Debtor's property known as the 271 Warehouse Property as well as all rents from the leases entered into with respect to the property covered by a mortgage. In August 2006, Bank Midwest made a $2,040,800 loan to the Debtor. To secure payment of the loan, the Debtor executed a mortgage encumbering the 271 Warehouse Property. In June 2009, Bank Midwest made an additional $175,000 loan to the Debtor for the purpose of making repairs to the improvements constructed on the 271 Warehouse Property covered by the Mortgage. In February 2009, Financial Federal filed its mortgage, whereby the Debtor granted to FFCI a mortgage to secure repayment of certain obligations of the Debtor and others to Financial Federal. The mortgage includes within its terms an Assignment of Rents, Issues and Profits. The Debtor will use the cash collateral to fund the operation of the 271 Warehouse Property, and pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/C_BEAN_budget.pdf The Debtor will make payments to Bank Midwest in the amount of $8,500 per month beginning April 15, 2010, and continuing on the 15th day of each successive month, which sums shall be applied to the amounts due and owing under the 6974 Renewal Note and the 0131 Note. Amity, Arkansas-based C. Bean Transport, Inc., filed for Chapter 11 bankruptcy protection on March 17, 2010 (Bankr. W.D. Ark. Case No. 10-71360). Chad J. Kutmas, Esq., at Doerner, Saunders, Daniel & Anderson, LLP, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. CANWEST GLOBAL: Can't Agree With Shareholders on TV Assets Sale --------------------------------------------------------------- Canwest Global Communications Corp. and a group of shareholders failed to reach an agreement on a proposal to sell the company's television assets to Shaw Communications Inc., according to a June 22 report by Bloomberg News. The Honorable Justice Sarah E. Pepall of the Ontario Superior Court of Justice called the dispute "ridiculous" and ordered lawyers to resolve it outside the court, the report said. Shareholders object to the sale of all of the television assets, which would include Canwest's specialty TV unit, partly owned by Goldman Sachs Group Inc. Goldman Sachs agreed to sell its stake for C$700 million. Earlier, the shareholders led by former chief executive Leonard Asper tried to block the C$2 billion deal by asking the Canadian Court for another 30-day auction to solicit higher bids, according to a report by lfpress.com. The ad hoc committee of shareholders opposing the deal said the initial auction process to sell Canwest's television assets was flawed and therefore yielded a low sale price. The auction was initially designed to find a co-investor for Goldman Sachs but in the end, Shaw's original offer to acquire a 20% voting stake in Canwest's television division became 100% of the equity of the restructured broadcast company once Goldman Sachs dropped out, lfpress.com reported. "Rarely in the history of corporations do you have Boards that agree to sell a company without having a competitive process," lfpress.com quoted Mr. Asper as saying. "We're willing to let Shaw or somebody else buy the company as long as they pay the market price," Mr. Asper said, noting that creditors, retirees and suppliers of the company are being cut short under the current deal. Mr. Asper said he would be involved in making a bid for the company's broadcast assets in case there would be a second auction. 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: CMI Monitor Supports Creditors' Meeting ------------------------------------------------------- FTI Consulting Canada Inc., the firm appointed to monitor the assets of Canwest Global Communications Corp. and the other applicants and partnerships -- the CMI Entities -- filed a report in support of the CMI Entities' motion to conduct a meeting of their creditors. The CMI Entities earlier proposed to hold a creditors' meeting on July 19, 2010, to consider and vote on a consolidated plan of compromise and arrangement. In connection to this, they also asked the Canadian Court to approve the terms for the conduct of and voting at the meeting, which include: (1) there will be two classes of creditors -- the 8% Noteholder Class and the Ordinary Creditor Class; (2) so-called Convenience Class Creditors will be deemed to vote in favor of the Plan; (3) FTI will tally the votes and the Plan will be deemed to be accepted by the required majority if it is approved by affected creditors present in person or represented by proxy or other voting instrument at the meetings holding claims totaling 66 2/3% in value and a majority in number of each class of creditors; and (4) any vote will be binding on the affected creditors whether or not those creditors are present at the meeting. FTI said it conducted a review of the proposed terms for the conduct of and voting at the meeting, and that it agrees with the CMI Entities that the proposed terms are fair and reasonable. FTI also expressed support to the CMI Entities' motion to file the Plan based on a deal with Shaw Communications Inc. Shaw Communications earlier agreed to acquire 100% of the over- the-air and specialty television businesses of Canwest Global for about C$2 billion. These include all of the equity interests in CW Investments Co., the Canwest subsidiary that owns the specialty television channels. A full-text copy of FTI's report is available for free at http://bankrupt.com/misc/Canwest_CMI_FTIReportJune17.pdf 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: Terms of Court-Approved Amended Plan ---------------------------------------------------- Canwest (Canada) Inc., Canwest Limited Partnership/Canwest Societe en Commandite and certain of their subsidiaries -- the LP Entities -- sought and obtained an order from the Ontario Superior Court of Justice sanctioning and approving their amended plan of compromise and arrangement. The Honorable Justice Sarah E. Pepall of the Ontario Superior Court of Justice issued the Sanction Order on June 18, 2010. The order came barely a week after more than 97% of the LP Entities' unsecured creditors approved the amended plan. "I view the restructuring as quite an achievement," The Financial Post quoted Justice Pepall as telling a Toronto courtroom last week. "I am satisfied that the amended plan is fair and reasonable." In providing reasons for approving the deal, Justice Pepall outlined why it satisfied the CCAA provisions. "The secured debt of senior lenders will be paid in full. There is no better alternative for the unsecured creditors," The Financial Post quoted Justice Pepall as saying. She further said that the amended plan will also preserve jobs and pension benefits for "thousands of employees." The LP Entities' amended plan is hinged on the offer made by the ad hoc committee of holders of 9.25% senior subordinated notes to acquire the LP Entities' assets as well as the shares of National Post Inc. for about C$1.1 billion, including C$950 million in cash funding. The sale proceeds will be used to pay in full about C$925 million owed by the LP Entities to their senior secured lenders. The terms of the ad hoc committee's bid are set forth in an asset purchase agreement, which the LP Entities hammered out with 7535538 Canada Inc. and CW Acquisition Limited Partnership. The offer is scheduled to be finalized by July 12, 2010. Under the amended plan, the total equity commitment of C$250 million by the ad hoc committee will be for shares in a new company, increasing the notional value of the equity of Newco to C$400 million. Affected creditors will receive 13 million shares of Newco at C$11.54 per share while the ad hoc committee will receive 27 million shares of Newco at C$9.26 per share. The amended plan also provides that as much as C$130 million representing up to 32.5% of the notional value of the equity will be available to creditors with proven claims against the LP Entities at the time of their emergence. Creditors with claims of less than C$1,000 will receive full cash payment while those with claims of C$1,000 or more can elect to receive shares in Newco on a pro rata basis or C$1,000 in cash. Other Provisions Pursuant to the June 18 Sanction Order, all affected claims against the LP Entities will be compromised, discharged and released; the ability of any person to proceed against the LP Entities in respect of or relating to any affected claims will be discharged and restrained; and all proceedings with respect to, in connection with or relating to those claims will be permanently stayed, subject only to the rights of the affected creditors to receive distributions pursuant to the amended plan and the Sanction Order. The stay period granted under the Companies Creditors' Arrangement Act was also extended to December 31, 2010, conditional on the amended plan being implemented before July 30, 2010. The Sanction Order authorized FTI Consulting Canada Inc., the firm appointed to monitor the assets of the LP Entities to administer the so-called "unsecured creditors' cash pool," which will be held by the firm in escrow for the affected creditors with proven and disputed claims equal to or less than $1,000, and those with claims greater than $1,000 who have made a valid cash election in accordance with the amended plan. FTI was also authorized to administer the "unsecured creditors' equity pool" with the share consideration issued by 7535538 Canada Inc. to Canwest Publishing Inc. in order to effect distributions to the affected creditors with proven and disputed claims greater than $1,000 who have not made a valid cash election. The firm will also maintain and administer the disputed claims reserve in accordance with the amended plan. Vesting Order In connection with the amended plan, Justice Pepall issued a vesting order on June 18, 2010, which provides for the vesting of the acquired assets in 7536321 Canada Inc. or its nominee upon delivery of a certificate stating that FTI has been advised that all of the conditions to closing have been satisfied. Full-text copies of the Sanction and Vesting Orders may be accessed for free at: http://bankrupt.com/misc/Canwest_LP_SanctionOrder.pdf http://bankrupt.com/misc/Canwest_LP_VestingOrder.pdf 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). CC MEDIA: Mark Mays Steps Down as Chief Executive ------------------------------------------------- CC Media Holdings, Inc., Clear Channel Communications, Inc.'s indirect parent company, on June 23, 2010, said Mark P. Mays will transition from his role as CC Media's and the Company's Chief Executive Officer to the Chairman of CC Media and the Company. The effective date for Mr. Mays' transition will occur upon the hiring of a new Chief Executive Officer for CC Media and the Company. Mr. Mays will remain a director and employee of CC Media and the Company. In connection with this transition, on June 23, 2010, CC Media, the Company and Mr. Mays entered into an amended and restated employment agreement. In connection therewith and on June 23, 2010, CC Media and Mr. Mays entered into an amendment to Mr. Mays' option agreement under which he previously was granted options to purchase common stock of CC Media. "After 21 wonderful years of building the industry leader that is Clear Channel, I have made a personal decision to step away from the chief executive role. Clear Channel is well-positioned to continue leading in the marketplace, and given the positive trends I am seeing, I am very optimistic about the future of the company," said Mr. Mays. "As I've discussed with our Board, this is an opportune time for a new CEO to work with the management team in leading our terrific company forward, and I look forward to executing a seamless transition." "Mark Mays has made enormous contributions to Clear Channel as President and CEO over the past six years, as he has throughout his career with the company. We deeply appreciate his service to the company, his leadership, and the remarkable foundation he has built," said Scott M. Sperling, of THL Partners, and John Connaughton, of Bain Capital, in a joint statement on behalf of the Board. "We are committed to identifying a world-class executive who will just as capably and successfully lead this great business into the future." Mr. Mays has served as Chairman of the Board of Clear Channel Communications since last year and as President and CEO since October 2004. Prior to that, Mr. Mays served in various roles at the company, including Vice President and Treasurer, Senior Vice President of Operations and later President and COO. Joseph Plambeck, writing for The New York Times' Media Decoder, relates Mr. Mays's brother, Randall, in 2009 stepped down as president and chief financial officer at the company. The brothers are the sons of Lowry Mays, who built the company from a single radio station into the country's largest radio broadcaster. Mr. Mays will continue to lead the company as President and CEO until a replacement is named, which is expected to be later this year. The Board has engaged Egon Zehnder International, a executive search firm, to lead the search for a new CEO. About Clear Channel Communications Clear Channel Communications, Inc. (OTCBB:CCMO) -- http://www.clearchannel.com/-- is a global media and entertainment company specializing in mobile and on-demand entertainment and information services for local communities and premiere opportunities for advertisers. Based in San Antonio, Texas, the company's businesses include radio and outdoor displays. Bain Capital and THL Partners paid $24 billion in 2008 to take over the company. * * * As reported by the Troubled Company Reporter on February 16, 2010, Moody's Investors Service upgraded Clear Channel Communications, Inc.'s Corporate Family Rating to Caa2 from Caa3. Moody's upgraded Clear Channel's bank credit facilities to Caa1 from Caa2 and its speculative grade liquidity rating to SGL-2 from SGL-4. Moody's also affirmed the Ca ratings of Clear Channel's senior notes due 2016 (issued in connection with the company's leverage buyout) and its legacy senior unsecured notes. The upgrades reflect Moody's expectation that while the company's capital structure remains unsustainable in the intermediate-term, a full restructuring or bankruptcy filing is no longer imminent. CHEMTURA CORP: AIG Parties Have Civil Action vs. Canada Unit ------------------------------------------------------------ AIU Insurance Company and several of its affiliates commenced a civil action against Chemtura Canada Co./CIE, an indirect subsidiary of Chemtura Corporation, and Zurich Insurance Company, in the Supreme Court of the State of New York in early February 2010. The Civil Action seeks a declaratory judgment as to the insurance coverage that AIG owes to Chemtura Canada for claims alleging injury from exposure to diacetyl. Chemtura Canada is covered under insurance policies of Chemtura Corp., including the insurance policies that are the subject of the Civil Action. Accordingly, the Civil Action is directly targeted at Chemtura Corp. and its insurance policies. Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York, notes that AIG intended the Civil Action to "determine" Chemtura Corp.'s rights and obligations under the insurance policies at issue. Chemtura Corp. represents that as of February 25, 2010, it owns, directly or indirectly, at least 10% or more of the stock of Chemtura Canada. However, because Chemtura Corp. is under Chapter 11 protection, having filed for bankruptcy in March 2009 in the Bankruptcy Court for the Southern District of New York, the automatic stay provision under Section 362 of the Bankruptcy Code preclude AIG from including Chemtura Corp. in the Civil Action. Chemtura Corp. insists that its insurance policies are property of its bankruptcy estate and are an integral part of developing a Chapter 11 plan of reorganization. Mr. Cieri also points out that any decisions about the coverage available to Chemtura Canada will have an impact on Chemtura Corp.'s bankruptcy estate. Mr. Cieri further laments that AIG instituted the Civil Action only after Chemtura Corp. provided notice to AIG of more than 300 proofs of claim that had been filed against Chemtura Corp. in its Chapter 11 case alleging injuries from exposure to diacetyl. Against this backdrop, Chemtura Canada filed a notice of removal on February 25, 2010, seeking to have all claims asserted in the Civil Action removed to the U.S. District Court for the Southern District of New York. Mr. Cieri asserts that Chemtura Canada's request is warranted pursuant Section 1334 of the Judiciary and Judicial Procedure, which provides that the district court in which a case under Chapter 11 is commenced or is pending will have exclusive jurisdiction of all the property of the debtor as of the commencement of the Chapter 11 case. The District Court, Mr. Cieri maintains, has exclusive jurisdiction over the Civil Action against Chemtura Canada because Chemtura Canada is covered under Chemtura Corp.'s insurance policies, and a debtor's insurance policies are assets of its bankruptcy estate. "Th[e] Notice of Removal is timely filed because it is within 30 days after AIG served the Civil Action on Chemtura Canada," Mr. Cieri says. He adds that "upon removal, the Civil Action will be a core proceeding under [Section 157(b) of the Judiciary and Judicial Procedure]." AIG Seeks to Remand Case to State Court Pursuant to Rule 9027(e)(3) of the Federal Rules of Bankruptcy Procedure, the AIG Parties deny Chemtura Canada's allegation that upon removal, the Civil Action will be a core proceeding under Section 157(b). In a separate filing, AIG asked the District Court to remand the case back to the Supreme Court because the District Court lacks jurisdiction pursuant to Section 1334. Representing AIG, Bryce L. Friedman, Esq., at Simpson Thacher & Bartlett LLP, in New York, explains that there is no jurisdiction under Section 1334 to support removal because the Civil Action against Chemtura Canada would have arisen without Chemtura Corp.'s bankruptcy petition. "That Chemtura US may have also claimed insurance coverage under many of the same insurance policies is a red herring; no court has found that disputes about the scope of coverage under so- called 'shared' insurance policies are subject to the exclusive jurisdiction of the Bankruptcy Court as Chemtura Canada contends," Mr. Friedman argued. Chemtura Canada Disputes AIG's Contention On behalf of Chemtura Canada, Mr. Cieri argues that AIG's arguments are inconsistent with AIG's prior efforts to add Chemtura Corp. as a party to the Civil Action after it filed for Chapter 11 protection. Under the Second Circuit's definition of "related to" jurisdiction, any action that could have a "conceivable effect" upon a debtor's estate is within the court's "related to" jurisdiction, Mr. Cieri contends. He notes that the claims at issue in the Civil Action easily satisfy the standard. For these reasons, Chemtura Canada asks the District Court to either defer a ruling to remand until the Bankruptcy Court rules on the matter, or summarily deny AIG's request to remand. In a separate filing, Zurich Insurance asks the District Court to deny AIG's request to remand. AIG Talks Back Representing AIG, Mr. Friedman reiterates that there is no bankruptcy issue or bankruptcy debtor in the Civil Action and no reason that it should be heard anywhere but in state court. He adds that even if the District Court concludes that it has jurisdiction over the Civil Action, it should abstain from exercising it. "State court juries should resolve the disputes turning on issues of state law that are raised in the complaint," Mr. Friedman says. The fact that the Chartis Insurers have asked the Bankruptcy Court to let Chemtura Corp. join as a defendant in the Civil Action does nothing to change the scope of the jurisdictional issue before the Bankruptcy Court, which depends solely on the Complaint, Mr. Friedman further argues. Defendants Respond to Complaint, Chemtura Canada Files Counterclaims In response to AIG's complaint, Zurich Insurance denies that the insurance policies it issued are primary insurance policies with respect to insurance policies issued by AIG. Zurich Insurance adds that it is without knowledge or information sufficient to for a belief as to the truth of AIG's other allegations. Chemtura Canada asserts that AIG's Complaint fails to state a claim upon which relief can be granted and should be dismissed. Chemtura Canada also asks the District Court to declare the Civil Action void "ab initio," and compel any insurance coverage dispute involving Diacetyl Claims to proceed in the Bankruptcy Court. Pursuant to Rule 57 of the Federal Rules of Civil Procedure and Section 2201 of the Judiciary and Judicial Procedure, Chemtura Canada also seeks a declaration that the AIG parties are obligated under the insurance policies they sold to Chemtura Canada to: (a) defend fully, or pay in full the costs of defending, Chemtura Canada against the Diacetyl Claims; and (b) indemnify in full any liability that Chemtura Canada has incurred, or may incur, with respect to the Diacetyl Claims, including any and all sums paid in connection with a judgment or settlement. In addition, Chemtura Canada seeks damages resulting from certain of the AIG parties' breach of contractual obligations to defend Chemtura Canada fully or to pay in full the costs of Chemtura Canada's defense against the Diacetyl Claims. AIG Refutes Counterclaims AIG denied all the allegations made by Chemtura Canada. Case Assigned to Judge Swain The AIG Civil Action has been reassigned from Judge Denny Chin to Judge Laura Taylor Swain. In a separate filing, Judge Swain schedule a pre-trial conference to be held on July 23, 2010. 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) CHEMTURA CORP: Has Civil Action Against Environmental Agencies -------------------------------------------------------------- Judge Richard M. Berman of the District Court for the Southern District of New York directed all parties in a lawsuit commenced by Chemtura Corporation and its debtor affiliates against the U.S. Government and several federal and state environmental agencies to appear at a status conference scheduled for June 15, 2010. The Debtors originally filed the complaint in the U.S. Bankruptcy Court for the Southern District of New York under Judge Gerber. Under the complaint, the Debtors sought a determination that any environmental obligations on sites that they do not presently own or operate should be discharged in bankruptcy. The Debtors referred to sites in Alabama, Florida, California, and New York, among others. The reference of the complaint has been withdrawn to the District Court on March 26, 2010, at the request of the U.S. Government. Judge Berman is currently presiding over the complaint. The Debtors have filed a summary judgment motion, asking the Court to discharge them from performing remediation work on the subject environmental sites. The Defendants subsequently a cross summary judgment motion, contending that the Debtors' obligations on the Sites are non- dischargeable. In a separate filing, Brian T. Stansbury, Esq., at Kirkland & Ellis LLP, in Washington, D.C., asked the District Court to set July 7, 2010, as the date for Chemtura Corporation to submit its brief. He also asked the District Court to set July 28, 2010, as the date for defendants to file their reply briefs. 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) CHEMTURA CORP: Signs Long-Term Contract With Odyssey Logistics -------------------------------------------------------------- Chemtura Corp. has entered into a long-term agreement with Odyssey Logistics & Technology pursuant to which OL&T manages Chemtura's North American transportation and logistics activities, Bulk Transporter reports. OL&T will also manage all of Chemtura's ocean export shipments outside North America. 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) COASTLINE TERMINALS: Section 341(a) Meeting Scheduled for July 12 ----------------------------------------------------------------- The U.S. Trustee for Region 2 will convene a meeting of Coastline Terminals of Conn. Parent Inc.'s creditors on July 12, 2010, at 3:00 p.m. The meeting will be held at The Giaimo Federal Building, 150 Court Street, Room 309, at intersection of Court and Orange Street, New Haven, CT 06510. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. New Haven, Connecticut-based Coastline Terminals of Conn. Parent, Inc, filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. D. Conn. Case No. 10-31801). Carl T. Gulliver, Esq., at Coan Lewendon Gulliver & Miltenberger LL, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. COASTLINE TERMINALS: Taps Coan Lewendon as Bankruptcy Counsel ------------------------------------------------------------- Coastline Terminals of Connecticut Parent, Inc., has asked for authorization from the U.S. Bankruptcy Court for the District of Connecticut to employ Coan, Lewendon, Gulliver & Miltenberger, LLC, as bankruptcy counsel. Coan Lewendon will, among other things: a. negotiate arrangements with creditors respecting their claims and treatment of their claims in a plan of reorganization; b. institute and defend litigation in this court and other courts as counsel; c. prepare petitions, answers, orders, reports, disclosure statements, plans and other papers; and d. perform other legal services for the Debtor. Coan Lewendon will be paid based on the hourly rates of its personnel: Attorneys $300-$350 Paralegals $95-$110 Carl T. Gulliver, a member at Coan Lewendon, assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. New Haven, Connecticut-based Coastline Terminals of Conn. Parent, Inc, filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. D. Conn. Case No. 10-31801). The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. CORUS BANKSHARES: Gets Court's Nod to Hire BMC as Claims Agent -------------------------------------------------------------- Corus Bankshares, Inc., sought and obtained authorization from the U.S. Bankruptcy Court for the Northern District of Illinois to employ BMC Group, Inc., as notice, claims, and balloting agent. BMC will, among other things, prepare these services: a. preparation of service lists, claims registers and claims reports; b. assistance in the preparation of statements of financial affairs and schedules; c. custom date extraction and forensics; and d. copy and notice services consistent with the applicable Local Bankruptcy Rules and as requested by the Debtor. BMC will be paid based on the hourly rates of its personnel: Clerical $25-$65 Analyst $80-$110 Technology/Programming Consultant $110-$145 Consultant $110-$145 Senior Consultant/Senior Management Consultant $175-$250 Principal/Director $250-$275 Tinamarie Feil, president of BMC, assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Corus Bankshares Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding company. Its lone operating unit, Corus Bank, N.A., closed September 11, 2009, by regulators and the Federal Deposit Insurance Corporation was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank. The Company filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Ill. Case No. 10-26881). David R. Seligman, Esq., at Kirkland & Ellis LLP, assists the Company in its restructuring effort. Kinetic Advisors is the Company's restructuring advisor. Plante & Moran is the Company's auditor and accountant. 4 As of June 15, 2010, the Company listed $314,145,828 in assets and $532,938,418 in liabilities. CRYOPORT INC: KMJ Corbin Raises Going Concern Doubt --------------------------------------------------- KMJ Corbin & Company LLP expressed substantial doubt against CryoPort Inc.'s ability as a going concern. The firm noted that the Company has incurred recurring losses and negative cash flows from operations since inception. Although the Company has working capital of $1,994,934 and cash and cash equivalents balance of $3,629,886 at March 31, 2010, management has estimated that cash on hand, which include proceeds from the offering received in the fourth quarter of fiscal 2010, will only be sufficient to allow the Company to continue its operations only into the second quarter of fiscal 2011. The Company's balance sheet at March 31, 2010 showed $4.7 million in total assets and $5.6 million in total liabilities, for a stockholder's deficit of $914,575. The Company reported a net loss of $5.6 million on $117,956 of revenues for the fiscal year ended March 31, 2010, compared with a net loss of $16.7 million on $35,124 of revenues for the year ended March 31, 2009. A full-text copy of the Company's Form 10-K is available for free at http://ResearchArchives.com/t/s?6552 About CryoPort Inc. Headquartered in Lake Forest, Calif., CryoPort, Inc. (OTC BB: CYRXD) -- http://www.cryoport.com/-- provides innovative cold chain frozen shipping system dedicated to providing superior, affordable cryogenic shipping solutions that ensure the safety, status and temperature of high value, temperature sensitive materials. The Company has developed a line of cost-effective reusable cryogenic transport containers capable of transporting biological, environmental and other temperature sensitive materials at temperatures below 0o Celsius. DELTA AIR: Aircraft Owners' Tax Indemnity Claims Are Proper ----------------------------------------------------------- Bill Rochelle at Bloomberg News reports that the U.S. Court of Appeals in Manhattan ruled in favor of aircraft owners on the issue of leveraged leases. According to Mr. Rochelle, the issue has bedeviled bankruptcy courts in recent airline reorganizations such as Delta Air Lines Inc., UAL Corp.'s United Air Lines Inc. and Northwest Airlines Corp. According to Bloomberg, under leveraged leases, a bank or financial institution would be the owner of an aircraft leased to an airline that pays all costs of operation and maintenance. The documents accompanying the leveraged lease include a tax indemnification agreement where the airline agrees to make up the tax losses. In addition, there is a separate agreement where the airline agrees to pay an amount called stipulated loss value. Mr. Rochelle relates that Delta, Northwest, and UAL all objected to the owners' tax indemnity claims in their now-completed bankruptcy reorganizations. In the Delta case, the airline won when the bankruptcy judge in substance disallowed the tax claim, because it was duplicated by the SLV claim asserted by the lenders. The district court affirmed the bankruptcy court. The 2nd Circuit in Manhattan reversed on June 22, saying that the lower courts improperly based their reasoning on "a strained and improbable reading" of the word "paid" as contained in the governing contracts. The lower courts said that the owners were "paid" even though bankruptcy gave them only a small portion of the damages called for in their contracts. According to the report, an opinion by Circuit Judge Pierre N. Leval, however, said the lower courts gave a "nonsensical and self-defeating" meaning to the word "paid." Judge Leval said the lower courts instead should have adopted an interpretation of the words that was in accord with the purpose of the provisions in the contracts. Mr. Rochelle notes that the ruling this week will give the aircraft owners large unsecured claims in the airline's reorganizations. Even with a smaller aircraft, a tax indemnity claim can be worth several million dollars. On a wide-body aircraft, a tax indemnity claim can amount to tens of millions of dollars. The case is Northwestern Mutual Life Insurance Co. v. Delta Air Lines Inc. (In re Delta Air Lines Inc.), 08-5002, 2nd U.S. Circuit Court of Appeals (Manhattan). About Delta Air Lines Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or http://www.nwa.com/-- serves more than 160 million customers each year. Delta and the Delta Connection carriers offer service to 367 destinations in 66 countries on six continents. Delta employs more than 70,000 employees worldwide and operates a mainline fleet of nearly 800 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's trans-Atlantic joint venture with Air France KLM. Including its worldwide alliance partners, Delta offers customers more than 16,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta became the world's largest airline following merger with Northwest Airlines in 2008. Northwest and 12 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. At December 31, 2009, Delta had total assets of $43,539,000,000 against total current liabilities of $9,797,000,000 and total noncurrent liabilities of $33,497,000,000, resulting in stockholders' equity of $245,000,000. At end-2008, Delta had stockholders' equity of $874,000,000. The December 31, 2009 balance sheet showed strained liquidity: Delta had total current assets of $7,741,000,000 against total current liabilities of $9,797,000,000. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines and Northwest Airlines carry a 'B/Negative/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's and "B-" LT Issuer Default rating from Fitch. DERRY & WEBSTER: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Derry & Webster, LLC 253 Main St Nashua, NH 03060 Bankruptcy Case No.: 10-12679 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court District of New Hampshire Live Database (Manchester) Judge: J. Michael Deasy Debtor's Counsel: Robert L. O'Brien, Esq. O'Brien Law P.O. Box 357 New Boston, NH 03070-0357 Tel: (603) 459-9965 Fax: (603) 250-0822 E-mail: robjd@mail2firm.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 6 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nhb10-12679.pdf The petition was signed by Vatche Manoukian, managing member. DOT VN INC: Inks MOU With VNNIC to Support Development in Laos -------------------------------------------------------------- Dot VN Inc. has entered into a memorandum of understanding with the Vietnam Internet Network Information Center to assist it in developing an Internet policy and managing the ccTLD".LA" domain registration program for the country of Laos. In accordance with the terms of the MOU, Dot VN and VNNIC will partner together to assist the Lao People's Democratic Republic to establish the Laotian National Internet Committee to support the development and growth of the Laotian country code Top Level Domain ".LA" and promote the use of the Laotian Internet worldwide. The agreement further provides that Dot VN and VNNIC will cooperate to assist LANIC in developing an Internet management policy and provide operational training, a domain registration platform, a registrar network, a global marketing and promotion strategy, and world class infrastructure. The LANIC infrastructure will be developed based on best of breed technologies, including the use of Elliptical Mobile Solutions' Micro-Modular Data CenterTM equipment and E-Band Communication's E-Link 1000EXR millimeter wave radios for which Dot VN has secured distribution rights in the country of Laos. Commenting on the agreement, Dot VN President Lee Johnson remarked, "We are extremely honored to be working with VNNIC in this capacity. Not only does the agreement further strengthen our continuing partnership with VNNIC, but it signifies the success we have achieved in helping to further the development of the Internet in Vietnam, which we are confident that we can replicate in Laos. We are excited to have the opportunity to bring our expertise to bear on the burgeoning internet and telecommunications market in Laos. Moreover, the MOU is a reaffirmation of our business strategy as we seek to extend our business model outside of Vietnam and capitalize on the rapid growth of the telecommunications and technology industries throughout the Asian region." "We are pleased that we have the opportunity to share our resources with the country of Laos to help them in establishing their own identity online and will endeavor to assist them any way we can. We appreciate their trust in our capabilities and the effectiveness of Vietnamese Internet Policy and Management. Dot VN has been a key part of the success that we have had in developing the policy and promoting the use of the Vietnamese ccTLD. As we look forward towards the creation and rebirth of the ".LA" ccTLD, we welcome the participation of a partner like Dot VN and specifically Dr. Lee Johnson in helping the global market realize that ".LA" mean Laos, not Los Angeles" said Mr. Nguyen Le Thuy, Director General of VNNIC. About Dot VN Dot VN, Inc. -- http://www.DotVN.com/-- provides innovative Internet and telecommunication services for Vietnam. The Company was awarded an "exclusive long term contract" by the Vietnamese government to register ".vn" (Vietnam) domains and commercialize Parking Page Marketing/Online Advertising worldwide via the Internet. Also, Dot VN has exclusive rights to distribute and commercialize Micro-Modular Data CentersTM solutions and Gigabit Ethernet Wireless applications to Vietnam and Southeast Asia region. At January 31, 2010, the Company's balance sheet showed $2.5 million in total assets and $10.0 million in total liabilities for a $7.5 million stockholders' deficit. Chang G. Park, CPA, in its March 17, 2010 report, said the Company's losses from operations raise substantial doubt about its ability to continue as a going concern. DURACO PRODUCTS: Bankr. Court Won't Take Criminal Allegations ------------------------------------------------------------- Ashok Selvam at Chicago Daily Herald reports that a federal bankruptcy judge dismissed a motion filed last week by attorneys representing former workers at Duraco Products Inc. who allege they weren't paid by the owners of the Streamwood factory. The motion claimed owner Kevin P. Lynch misled the court and committed perjury through paperwork filed in November 2008 when Duraco filed for bankruptcy. The workers alleged Lynch lied about paying the factory workers. Bankruptcy Judge Eugene R. Wedoff said that he had no jurisdiction over criminal matters and would refer the perjury allegations to the U.S. attorney's office. The 34 ex- employees said Mr. Lynch owes them $350,000 in back wages and damages. Based in Illinois, Duraco Products, Inc. makes molding lawn and garden furniture. The company filed for Chapter 11 protection on November 18, 2008 (Bankr. N.D. Ill. Case No. 08-31353). Keevan D. Morgan, Esq., at Morgan & Bley, Ltd., represents the Debtor in its restructuring efforts. The company has assets of less than $50,000, and debts of between $1 million and $10 million. EAST WEST: Wants Plan Exclusivity Until August 16 ------------------------------------------------- East West Resort Development V, L.P., L.L.L.P., et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive period to solicit acceptances of their Chapter 11 Plan from August 16, 2010, to November 16. The Debtors relate that the initial plan constituted a separate Chapter 11 Plan of Reorganization for East West Resort Development V, L.P., L.L.L.P. The Debtors, however, determined, after consultation with EWRD V's largest unsecured creditor, Bank of America, N.A., and review of EWRD V's assets and liabilities, that EWRD V could not confirm its Plan because of the lack of support from some of EWRD V's largest unsecured creditors, including BofA. Accordingly, the Debtors removed EWRD V from the second amended Plan. On June 2, the Court confirmed the second amended plan. The Debtors have yet to propose an amended plan for EWRD V. The Debtors intend for the plan to be consensual and would like time to discuss with BofA both the structure and the contents of the Plan before submitting it for the Court's approval. The Debtors propose a hearing on their solicitation period on July 15 at 11:30 a.m. (ET.) Objections, if any, are due on July 8, at 4:00 p.m. (ET.) About East West Resort Avon, Colorado-based East West Resort Development V, L.P., L.L.L.P., is a limited partnership between Crescent Resort Development, Inc., and long-standing developer East West Partners, Inc., that was formed to develop residential and commercial real estate projects on and around the Northstar at Tahoe Resort in Lake Tahoe, California. East West Resort filed for Chapter 11 bankruptcy protection on February 16, 2010 (Bankr. D. Del. Case No. 10-10452), estimating its assets and debts at $100,000,001 to $500,000,000. The Company's affiliates -- Tahoe Club Company, LLC Tahoe Club Company, LLC; Tahoe Mountain Resorts, LLC; NMP Holdings, LLC; Grays Station, LLC; Old Greenwood, LLC; Old Greenwood Realty, Inc.; Northstar Village Townhomes, LLC; Northstar Big Horn, LLC; Northstar Trailside Townhomes, LLC; Northstar Iron Horse, LLC; and Northstar Mountain Properties, LLC -- filed separate Chapter 11 petitions. Paul, Hastings, Janofsky & Walker LLP serves as bankruptcy counsel. The Debtors' financial advisor is Houlihan Lokey Howard & Zukin Capital, Inc. The Debtors' claims agent is Epiq Bankruptcy Solutions. EIGEN INC: Committee Wants Kazi Loan Subordinated as Equity ----------------------------------------------------------- Jacqueline Palank of Dow Jones Daily Bankruptcy Review reports that unsecured creditors of Eigen Inc. are suing the majority owner for allegedly driving the medical-device company deep into financial distress in a bid to seize control. The official unsecured creditors committee sued shareholder Kazi Management VI LLC and its owner Zubair Kazi in bankruptcy court Monday accusing them of loading up Eigen with millions of dollars in debt they knew it couldn't repay to take control of the company. Dow Jones reports that the committee seeks to have the $20 million-plus claim KMVI says it holds to be declared equity and to wipe out the liens allegedly securing that claim, ensuring that KMVI is last in line to be paid. Otherwise, the committee warned the defendants would be rewarded for allowing Eigen to subsist on inadequate capital and to continue to rack up debt it couldn't pay off. 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. FIBERVISIONS DELAWARE: S&P Shifts Rating on $20 Mil. Loan to 'B+' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its issue rating and recovery rating on FiberVisions Delaware Corp.'s $20 million second-lien term loan to 'B+' and '2' from 'B' and '4', respectively. The 'B+' issue rating and '2' recovery rating indicate S&P's expectation for substantial recovery (70%-90%) in the event of a payment default. FiberVisions Delaware Corp. is the borrower under Duluth, Ga.-based FiberVisions Corp.'s credit facility. "The revision to the second-lien ratings reflects improved recovery prospects for second-lien creditors following a decline in the first-lien debt outstanding," said Standard & Poor's credit analyst Paul Kurias. At the same time, S&P affirmed its 'B' corporate credit rating on the company. The outlook is stable. The 'BB-' issue rating and '1' recovery rating on the company's first-lien facilities remain unchanged. The rating on FiberVisions Delaware Corp. reflects a vulnerable business risk profile with limited growth potential, exposure to technology changes in the nonwoven fibers industry, and meaningful customer concentration. The rating also reflects an aggressive financial risk profile. Additional sources of concern include the company's narrow focus on the niche polyolefin staple fiber market and weak operating margins derived from its participation in this fragmented and competitive industry. FiberVisions' leading market share in staple fibers, good geographic diversification through plant locations on three continents, and moderate end-market diversity mitigate these factors. FIRST FOLIAGE: Files for Chapter 11 in Miami -------------------------------------------- First Foliage LC filed for Chapter 11 reorganization June 23 in Miami (Bankr. S.D. Fla. Case No. 10-27532), listing assets of $52 million against liabilities totaling $30.7 million. Homestead, Florida-based First Foliage is a grower and marketer of tropical plants. It claims to be one of the three largest tropical foliage nurseries in the U.S. and one of the 10 largest foliage nurseries. The current owners bought the assets from a bankrupt company in 2000 for $150,000 cash plus the assumption of $38 million in debt. According to Bill Rochelle at Bloomberg News, the Company said it was forced into bankruptcy by the lack of crop insurance coverage and a lender that doesn't want to be making loans in the nursery business. Bloomberg relates that the Company wants to use cash representing security for a term loan by Bank of America NA. It says that the collateral is worth $52 million, exceeding its $24 million debt to BofA. FORUM HEALTH: Court Approves Sale Process and Lower Break-Up Fee ---------------------------------------------------------------- George Nelson at Business Journal Daily reports that a federal court approved a sale process for Forum Health's assets. Under the Court-approved rules (i) Ardent Health Services Inc., as stalking horse bidder, would start the auction., (ii) initial competing bids would be due August 5, and (iii) Ardent would be entitled to a break-up fee lower than the $3 million the Company had proposed. Ardent Health is under contract to buy the assets for $69.8 million, absent higher and better offers. According to The Vindicator, in Ohio, in addition to the purchase offer, Ardent, based in Nashville, Tenn., pledged to hire Forum's employees, keep its three major hospitals open, and invest $50 million to $70 million over five years on renovations, new equipment and other upgrades. The proposed $3 million break-up fee represented approximately 3.2% of the transaction valued at $94 million. According to Business Journal, the parties have agreed to lower the break-up fee to $750,000, but Ardent Health could seek expense reimbursements of up to $1.75 million. The Court has scheduled a sale hearing for August 10. Support, Objections to Sale Jacqueline Palank, writing for Dow Jones Daily Bankruptcy Review, relates Gov. Ted Strickland in Ohio urged the bankruptcy judge to let Forum Health head to the auction block with the stalking horse bid from Ardent. He said the deal is in the best interest of the communities in northeastern Ohio that depend on Forum for health care. Gov. Strickland warned of the "potentially devastating" consequences if creditors aiming to block the sale get their way. "The forced liquidation and closure of Forum Health would likely cripple the economy of an area hit hard by the national recession and deprive Ohio residents of necessary and essential health-care services," Ohio's attorney general Richard Cordray wrote in court papers filed Friday on Gov. Strickland's behalf. Dow Jones notes several key creditor groups oppose Forum Health's proposed auction. Secured creditors MBIA Insurance Corp., U.S. Bank and Fifth Third Bank last week urged Forum to make its auction rules more "fair and reasonable." "The sale process is fundamentally flawed and clearly fails to provide a fair and open process for potential bidders to submit bids for the sale assets and, therefore, will not maximize value to the debtors' estates," the creditors said Friday, according to Dow Jones. According to Dow Jones, the secured creditors find a $3 million breakup fee payable to the Ardent unit if its bid loses, too high. They fear it will chill bidding for Forum Health's assets. The official committee of unsecured creditors agrees that it would restrict interest by forcing bidders to cover the fee's cost in their bid. About Forum Health Forum Health and its affiliates filed for Chapter 11 protection on March 16, 2009 (Bankr. N.D. Ohio Lead Case No. 09-40795). Paul W. Linehan, Esq., and Shawn M Riley, Esq., at McDonald Hopkins LLC, serve as lead counsel to the Debtors. The Debtors have also tapped Michael A. Gallo, Esq. at Nadler Nadler & Burdman Co., LPA as co- counsel; Kurtzman Carson Consultants LLC as claims, noticing and balloting agent; and Huron Consulting Services LLC as financial advisors. Alston & Bird LLP represents the official committee of unsecured creditors formed in the Chapter 11 cases. At the time of its filing, Forum Health estimated that it had assets and debts both ranging from $100 million to $500 million GARLOCK SEALING: Boyer Insists on Being Asbestos Panel Member ------------------------------------------------------------- Joseph D. Boyer was previously included in the list of members for the Official Committee of the Asbestos Personal Injury Claimants for Garlock Sealing Technologies LLC's cases, as proposed by Linda W. Simpson, U.S. Bankruptcy Administrator for the Western District of North Carolina. However, the Debtors objected to Mr. Boyer's appointment at a hearing held June 15, 2010, arguing, among other things, that Mr. Boyer's maritime claims were administratively dismissed and did not belong in the Debtors' Chapter 11 cases or on the Asbestos PI Committee. Accordingly, Mr. Boyer was omitted from the Asbestos PI Committee members list. "The decision of the Court to remove Mr. Boyer was falsely premised based on the erroneous misleading statements of the Debtors," James H. Henderson, Esq., at The Henderson Law Firm, in Charlotte, North Carolina -- henderson@title11.com -- contends. Mr. Henderson insists that Mr. Boyer is absolutely qualified to sit as a member of the Asbestos PI Committee. Mr. Henderson also asserts that Mr. Boyer's counsel, The Jacques Admiralty Law Firm, P.C., is familiar with the committee work, dealing with trusts, claims processing and all aspects of how this case will run. Mr. Henderson assures the Court that costs or expenses to the Debtors' estates would be not an issue because The Jacques Admiralty Law Firm will waive or cover all costs and expenses. Mr. Henderson further notes that Mr. Boyer resides in North Carolina and The Jacques Admiralty Law Firm is located in Michigan. However, because the maritime claims are strict liability general admiralty product liability claims recognized under federal admiralty law, the location of the firm should not be of great significance, Mr. Henderson maintains. Against this backdrop, Mr. Boyer asks the Court to include him as a member of the Asbestos PI Committee. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Proposes to Pay Temporary Workers -------------------------------------------------- Before the Petition Date, about 20 temporary and contract employees were performing services for Garlock Sealing Technologies LLC and its debtor-affiliates. The temporary employees consist of: * two temporary employees working on an independent contract basis -- the Contract Employees; * six temporary employees that were referred to the Debtors through YOH Services, LLC. -- the YOH Employees; and * 12 temporary employees that were referred to the Debtors through Meador Staffing Services -- the Meador Employees. The Temporary Employees perform a variety of functions for the Debtors, including, manufacturing, engineering, and generally sustaining the Debtors' business operations through administrative and accounting functions. The number of Temporary Employees fluctuates from time to time based on the Debtors' needs. As of the Petition Date, the Debtors had accrued but unpaid salary and wage obligations to the Temporary Employees consisting of: Fee Period Fees ---------- ---- Contract Employees 04/15/2010- $15,400 06/04/2010 YOH Employees 02/07/2010- $3,215 05/05/2010 Meador Employees 05/16/2010- $6,375 05/23/2010 The Debtors do not anticipate that the Contract Employees will submit additional invoices for prepetition services. However, the Debtors believe that YOH Services and Meador Staffing may submit additional invoices for prepetition services of the YOH Employees and Meador Employees. By this motion, the Debtors seek the court's approval to continue to pay obligations to the Temporary Employees, including all costs and expenses incident to them. Ashley K. Neal, Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North Carolina, points out that the continued use of the Temporary Employees is essential to the Debtors' efforts to preserve and maximize the value of their businesses and assets. Any delay in honoring the obligations to the Temporary Employees would harm the Debtors' employees' morale and result in significant hardship to the Temporary Employees, at the very time when their dedication and cooperation is most critical, he stresses. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Sec. 341 Meeting of Creditors on July 14 --------------------------------------------------------- Linda W. Simpson, U.S. Bankruptcy Administrator for the Western District of North Carolina, will convene a meeting of the creditors of Garlock Sealing Technologies LLC and its debtor affiliates on July 14, 2010, at 2:00 p.m. at her office located at 402 W. Trade St., Suite 205, in Charlotte, North Carolina. The meeting, as required under Section 341(a) of the Bankruptcy Code, offers the one opportunity for creditors to question a responsible office of the Debtors under oath about their financial affairs and operations that would be of interest to the general body of creditors. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Seeks to Assume New Vista Contract --------------------------------------------------- Garlock Sealing Technologies LLC and New Vista Corporation are parties to an executory contract whereby New Vista manufactures a custom brazing system to Garlock's specifications. By this motion, the Debtors seek to assume the Contract and pay $25,755 as cure amount under the Contract. Shelley K. Abel, Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North Carolina, relates that the brazing system is a capital expenditure necessary for Garlock's manufacturing operations before the Petition Date. The Debtors believe that construction of the brazing system for the price quoted in the Contract provides a net benefit to them and their estates, Ms. Abel points out. She further explains that the payment of $25,755 reflects the down-payment required upon New Vista's receipt of the order pursuant to the Contract. New Vista has not begun work on the brazing system, as payment of this initial invoice is required for work to begin, she tells the Court. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Faces Deadline to Pay Alderwood Mall's $300MM Loan ------------------------------------------------------------------ General Growth Properties, Inc., has until next month to pay off close to $300 million of debt on Alderwood Mall, located in Lynwood, Washington, Commercial Mortgage Alert reported on June 21. If GGP cannot refinance the securitized mortgage, the Teachers Insurance and Annuity Association - College Retirement Equities Fund might refinance the property's $196.9 million securitized mortgage to protect its investment, the report discloses. The TIAA-CERF declined to comment on the property but said in a statement that it is discussing strategies to manage its existing mortgage loan maturities, including loan extensions and refinances of loans with attractive credit characteristics," Commercial Mortgage Alert related. GGP owned Alderwood Mall with New York Common Fund, the report noted. Alderwood Mall was excluded from GGP's bankruptcy in 2009 but was put on a servicer watch list due to concerns that the General Growth partnership would have difficulty refinancing, the report added. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Helps Lure Macy to West Valley Mall --------------------------------------------------- Macy's will move into General Growth Properties, Inc.-owned West Valley Mall in December 2010, Jennie Rodriguez of Record.net reported. To lure Macy's to West Valley Mall, the City Council approved a $2.75 million incentive, the report noted. Similarly, GGP will add $4.2 million to sweeten the deal, the report disclosed. The move will create 448 jobs and millions in sales tax revenue, according to the report, citing city officials. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: South African Claimants Want Class Treatment ------------------------------------------------------------ South Africans who claim that General Motors Corp. aided apartheid-era repression and torture have asked a bankruptcy court to treat them as a class, saying the company made less than a minimal effort to notify them that they could file individual claims, according to Bankruptcy Law360. Two groups, who style themselves the Boha and Balintulo plaintiffs, claim that the automaker built vehicles that it knew would be used by the government to terrorize nonwhite South Africans, Law360 says. 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) GENERAL MOTORS: GM South America Formed; Headquarters in Brazil --------------------------------------------------------------- General Motors announced today it is creating a new regional organization to meet rising customer demand in South America. GM South America will be headquartered in Sao Paulo, Brazil and will be led by Jaime Ardila, currently president and general manager GM Mercosur. Ardila becomes president, GM South America and will report to GM Chairman and CEO Ed Whitacre. As a member of the Executive Committee and regional president, Ardila becomes the highest ranking Hispanic in the company. "Jaime's number one priority will be to ensure the very best for our customers in this important and growing region," Whitacre said. GM South America includes GM's existing sales and manufacturing operations in Brazil, Argentina, Colombia, Ecuador and Venezuela as well as sales activities in those countries and Bolivia, Chile, Paraguay, Peru and Uruguay. GM South America currently has 29,000 employees. As part of GM's global product operations organization, GM South America has product design and engineering capabilities, which will allow it to continue creating local cars and trucks that complement GM's global product architectures. In the first five months of the year, GM sold 394,000 vehicles in South America and its market share was 20.2 percent. "The GM International Operations team is doing a great job expanding our global presence," said Whitacre. "However, with the rapidly growing markets in Asia, the Middle East and Russia, we need the GMIO team focused exclusively on those countries that are critical to our growth." In related moves, Denise C. Johnson, vice president, Labor Relations, will become president and managing director, GM do Brazil, effective July 1, 2010. She will report to Ardila. Catherine L. Clegg, GM North America manufacturing manager, succeeds Johnson as vice president, Labor Relations, effective July 1, 2010. She will report to Diana Tremblay, GM vice president, Manufacturing and Labor Relations. A successor for Clegg will be announced in the near future. "This is an exciting development for our team in South America," said Ardila. "I'm honored to lead the effort in the new South America region, and even more inspired to collaborate with our colleagues around the world to bring the best cars and trucks to our customers in the region." 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) GLOWPOINT INC: Stockholders Vote to Amend 2007 Incentive Plan ------------------------------------------------------------- Glowpoint Inc. held its annual meeting of stockholders, during which theSE matters were decided by the following votes cast for, against or withheld, as well as the number of abstentions and broker non-votes, as applicable: * Amending the Company's 2007 Stock Incentive Plan to increase the shares reserved for issuance thereunder to 5,500,000 shares of common stock -- 49,764,239 votes for; 6,095,212 votes against; 187,100 abstentions; and 19,962,425 broker non-votes. * Authorizing the board of directors, in its discretion, to amend the Company's certificate of incorporation to effect a reverse stock split of the Company's issued and outstanding shares of common stock, without further approval or authorization of its stockholders, at a ratio of not less than one-for-two and not more than one-for-five, with the exact ratio to be set within this range as determined by the board of directors in its sole discretion at any time prior to the next annual meeting of stockholders of the Company - 70,421,780 votes for; 5,339,754 votes against; and 247,441 abstentions. * Ratification of the selection of Amper, Politziner & Mattia, LLP as the Company's Independent Registered Public Accounting Firm for the fiscal year ending December 31, 2010 - 70,706,618 votes for; 3,350,804 votes against; and 1,951,554 abstentions. * Election of these directors, each to a one-year term: -- James Lusk -- Grant Dawson -- Joseph Laezza -- David W. Robinson -- Kenneth Archer About Glowpoint, Inc. Based in Hillside, New Jersey, Glowpoint, Inc., provides advanced video communications solutions. Its suite of telepresence and video communications solutions enable organizations to communicate with each other over disparate networks and technology platforms -- empowering business, governmental agencies and educational institutions to sharply boost the impact and productivity of their internal and external communications while at the same time reducing their on-going operating costs. The Company supports thousands of video communications systems in more than 35 countries with its 24/7 managed video services, powering Fortune(R) 500 companies, major broadcasters, as well as global carriers and video equipment manufacturers and their customers around the world. At September 30, 2009, the Company had total assets of $7,192,000 against total liabilities of $8,777,000, resulting in stockholders' deficit of $1,585,000. At December 31, 2009, the Company had total assets of $6,914,000 against total liabilities of $5,761,000 resulting in stockholders' equity of $1,153,000. In its Form 10-Q filing with the Securities and Exchange Commission for the quarter ended September 30, 2009, the Company said there is substantial doubt as to its ability to continue as a going concern. GREAT NEIGHBORHOODS!: Case Summary & 20 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Great Neighborhoods! Development Corporation dba American Indian Neighborhood Development Corporation dba American Indian Business Development Corporation 1113 East Franklin Avenue, Suite 202 Minneapolis, MN 55404 Bankruptcy Case No.: 10-44648 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court District of Minnesota (Minneapolis) Judge: Gregory F. Kishel Debtor's Counsel: Will R. Tansey, Esq. Ravich Meyer Kirkman McGrath & Nauman 4545 IDS Center 80 South Eighth Street Minneapolis, MN 55402 Tel: (612) 317-4760 Fax: (612) 332-8302 E-mail: wrtansey@ravichmeyer.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/mnb10-44648.pdf The petition was signed by Theresa Carr, CEO. GTC BIOTHERAPEUTICS: LFB Biotech Holds 83.2% of Shares ------------------------------------------------------ LFB Biotechnologies, S.A.S., disclosed that as of June 15, 2010, it may be deemed to beneficially own 45,136,134 shares or 83.2% of the common stock of GTC Biotherapeutics, Inc. On June 15, 2010, LFB entered into a Note Purchase Agreement with GTC to purchase for $7,000,000 a secured convertible note in the principal amount of $7,000,000. The transaction was consummated on June 15, 2010. The 2010 Secured Convertible Note matures on June 15, 2013 and accrues interest at a rate equal to 4% per annum, which is payable upon maturity. The 2010 Secured Convertible Note may only be prepaid with LFB's consent. LFB has the right to convert all or a portion of the 2010 Secured Convertible Note into shares of Common Stock at a conversion price equal to $0.42 per share, subject to adjustment for any stock splits, stock dividends, recapitalization or other combination or subdivision of the Common Stock. About GTC Biotherapeutics Based in Framingham, Massachusetts, GTC Biotherapeutics, Inc. (OTCBB: GTCB) -- http://www.gtc-bio.com/-- develops, supplies and commercializes therapeutic proteins produced through transgenic animal technology. ATryn(R), GTC's recombinant human antithrombin, has been approved for use in the United States and Europe. ATryn(R) is the first and only therapeutic product produced in transgenic animals to be approved anywhere in the world. GTC is also developing a portfolio of recombinant human plasma proteins with known therapeutic properties. GTC's intellectual property includes a patent in the United States through 2021 for the production of any therapeutic protein in the milk of any transgenic mammal. On November 5, 2009, the Company implemented a restructuring plan to enable it to meet the requirements of key programs and maximize the impact of its cash resources. The restructuring plan, which is expected to provide savings of $5 million to $6 million on an annualized basis, included a reduction in workforce from 154 to 109 employees. At April 4, 2010, the Company had $26.950 million in total assets against total liabilities of $54.098 million, resulting in stockholders' deficit of $27.148 million. In its Form 10-Q report, the Company noted that it has operated at a net loss since inception in 1993, and it used $5.9 million of net cash in its operating cash flows during the first three months of 2010. The Company also has negative working capital of $13.1 million as of April 4, 2010. "We are entirely dependent upon funding from equity financings, partnering programs and proceeds from short and long-term debt to finance our operations until we achieve commercial success in selling and licensing our products and positive cash flow from operations. Based on our cash balance as of April 4, 2010, as well as potential cash receipts from existing programs, we believe our capital resources will be sufficient to fund operations to the end of the second quarter of 2010. Our recurring losses from operations and our limited available funds raise substantial doubt about our ability to continue as a going concern," the Company said. GUN LAKE: S&P Assigns 'B' Rating to $160 Mil. Senior Loan --------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B' issue-level rating to Dorr, Mich.-based Gun Lake Tribal Gaming Authority's proposed $160 million senior secured first-lien term loan. Upon closing of the transaction and its review of final documentation, S&P expects to assign a 'B' issuer credit rating with a stable rating outlook. The Authority plans to use proceeds from the proposed term loan to repay a portion of an outstanding development loan and finance ongoing construction costs of the Gun Lake Casino, located near Grand Rapids, Mich. "The expected 'B' issuer credit rating reflects the vulnerability of new gaming projects to uncertain demand and difficulties in managing initial costs, often leading to poor profitability in the first several months of operations," said Standard & Poor's credit analyst Michael Listner. In addition, the Authority's narrow business position as an operator of a single casino property (once the Gun Lake Casino opens in early 2011) and competition from existing gaming operations in the region limit the current rating. These factors are somewhat mitigated by an interest reserve account supporting 14 months of interest payments on the issuer's senior secured term loan. S&P expects the reserve to provide liquidity support during construction and for six months post-opening. Other mitigating factors include meaningful construction progress, with approximately 47% of project costs already spent; the facility's close proximity to a major population center; and anticipated adequate pro forma credit measures once the casino opens. The Authority is an unincorporated instrumentality of the Michigan-based Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians, and was created by the Tribe to develop, construct, and operate Gun Lake Casino. Currently, there are 12 federally recognized Native American tribes in Michigan operating a total of 19 land-based Class III gaming facilities in the State. The Tribe's compact with the State of Michigan became effective in 2009 and expires in 2029. The gaming compact allows the Tribe to operate one Class III gaming facility with no restrictions on the number of slot machines and table games. It also requires the Authority to pay a percentage of net slot revenues, ranging from 10% to 14%, to the state and local governments in exchange for the exclusive right to conduct gaming operations in a specified region of the state. IMPLANT SCIENCES: Approves Increase of Shares of Common Stock ------------------------------------------------------------- A Special Meeting of Stockholders of Implant Sciences Corporation was held on June 16, 2010. At the meeting, there were 19,291,957 shares of common stock represented to vote either in person or by proxy, or 78.3% of the outstanding shares of common stock, which represented a quorum. As of the record date, May 4, 2010, there were 24,624,195 shares of common stock outstanding and entitled to vote at the meeting. At the meeting, this proposal was voted upon and approved an amendment to the Company's Amended and Restated Articles of Organization to increase the number of authorized shares of Common Stock from 50,000,000 shares to 200,000,000 shares. About Implant Sciences Implant Sciences Corporation (OBB: IMSC.OB) -- http://www.implantsciences.com/-- develops, manufactures and sells sensors and systems for the security, safety and defense (SS&D) industries. As of December 31, 2009, the Company had $5,475,000 in total assets against $12,995,000 in total liabilities, $5,000,000 in Series E Convertible Preferred Stock, and $378,000 in Series F Convertible Preferred Stock, resulting in stockholders' deficit of $12,898,000. As reported by the Troubled Company Reporter on January 15, 2010, Implant Sciences renegotiated its credit agreements with its senior secured investor, DMRJ Group LLC. DMRJ increased Implant Sciences' line of credit from $3,000,000 to $5,000,000; extended the maturity of all of Implant Sciences' indebtedness from December 10, 2009, to June 10, 2010; waived all existing defaults through the new maturity date; reduced the interest rate payable on Implant Sciences' obligations to 15% per annum; and removed all profit sharing arrangements from the agreements. Implant Sciences' total indebtedness to DMRJ, including all principal and accrued interest, now stands at $7,570,000. INTERNATIONAL COMMERCIAL: Recurring Losses Cue Going Concern Doubt ------------------------------------------------------------------ International Commercial Television, Inc., filed on June 22, 2010, its annual report for the fiscal year ended December 31, 2009. Amper, Politziner & Mattia LLP, in Edison, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and negative cash flows. The Company reported a net loss of $241,135 on $5,898,707 of revenue for the three months ended March 31, 2010, compared with a net loss of $3,156,244 on $15,370,765 of revenue for the same period a year ago. The Company's balance sheet as of March 31, 2010, showed $1,582,209 in assets and $1,872,984 of liabilities, for a stockholders' deficit of $290,775. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?6551 Bainbridge Island, Wash.-based International Commercial Television Inc. produces long-form infomercials and short-form advertising spots and sell its proprietary brands of advertised products directly to its viewing audience. In addition, the Company sells products via televised shopping networks, the internet, and retail distribution channels. ITI INTERNET: Files for Protection Under Chapter 11 --------------------------------------------------- ITI Internet Services, Inc., a wholly owned subsidiary of HIMC Corporation, have filed for protection under Chapter 11 of the U.S. Bankruptcy Law. Mr. Jay Gurley, Chairman of HIMC Corporation, said, "Filing for bankruptcy was necessitated by the unsuccessful appeal of the Durand vs. HIMC Corporation lawsuit and the need to protect merchant funds." HIMC Corporation, through its wholly owned subsidiary ITI Internet Services, has been a leading provider of secure electronic check processing, refund and rebate check fulfillment services, NSF check re-presentment, credit card processing, and ACH transfers for national, regional and local businesses through the use of the internet, telephone and wireless. JOSE FRANCO: Section 341(a) Meeting Scheduled for July 19 --------------------------------------------------------- The U.S. Trustee for Region 21 will convene a meeting of Jose Manuel Colon Franco's creditors on July 19, 2010, at 9:00 a.m. The meeting will be held at Ochoa Building, 500 Tanca Street, First Floor, San Juan, PR 00901. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Jose Franco Caguas, Puerto-Rico-based Jose Manuel Colon Franco, aka Cheo Colon Franco, fdba Garaje Colon Hijo; and Ramona Arroyo Ramos, aka Monin Arroyo, filed for Chapter 11 bankruptcy protection on June 14, 2010 (Bankr. D.P.R. Case No. 10-05189). Victor Gratacos Diaz, Esq., who has an office in Caguas, Puerto Rico, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. JOSHUA FARMER: Files Schedules of Assets and Liabilities -------------------------------------------------------- Joshua B. Farmer & Andrea G. Farmer filed with the U.S. Bankruptcy Court for the Western District of North Carolina its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $954,000 B. Personal Property $119,319 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $1,973,665 E. Creditors Holding Unsecured Priority Claims $143,474 F. Creditors Holding Unsecured Non-priority Claims $3,163,148 ----------- ----------- TOTAL $1,073,319 $5,280,287 Rutherfordton, North Carolina-based Joshua Farmer and Andrea Farmer -- dba Two Mile Properties, LLC, et al. -- filed for Chapter 11 bankruptcy protection on April 5, 2010 (Bankr. W.D. N.C. Case No. 10-40270). The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. Raymond Farmer and Diane Farmer filed a separate Chapter 11 petition on April 5, 2010 (Case No. 10-40269), listing $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. Travis W. Moon, Esq., at Hamilton Moon Stephens Steele Martin, assists the Debtors in their restructuring efforts. KRONOS INTERNATIONAL: Moody's Raises Corp. Family Rating to 'B3' ---------------------------------------------------------------- Moody's Investors Service raised Kronos International, Inc.'s Corporate Family Rating to B3 from Caa1 and the rating on the EUR400 million senior secured notes due 2013 to Caa1 from Caa2. The upgrade reflects KII's better operating results, improved titanium dioxide market conditions and the expectation that credit metrics will improve further in 2010. The outlook is stable. This summarizes the ratings changes: Ratings upgraded: Kronos International Inc. * Corporate family rating -- B3 from Caa1 * Probability of default rating -- B3 from Caa1 * EUR400 million 6.5% Sr Sec Notes due 2013 -- Caa1 (LGD5, 71%) from Caa2 (LGD5, 72%) * Outlook: Stable Kronos has benefited from a rebound in sales volumes and its margins are expected to benefit from higher selling prices and volumes. Sales volumes of 84 thousand metric tons in the first quarter are on par with pre-crisis sales volumes. While the company reported flat year-over-year selling prices in the first quarter, numerous announced price increases by KII (and its competitors) are expected to translate into higher realized selling prices (and profit margins) due to current titanium dioxide (TiO2) supply constraints. High TiO2 industry operating rates have resulted from producers working off excess inventory in 2009, limited appetite on the part of TiO2 customers to build inventory, permanent plant closures, and unplanned production outages. A further rebound in demand would also support producers' economics. KII's liquidity is supported by its positive cash flow from operations, cash balances and unused availability under its EUR80 million revolving credit, which matures in less than one year (May 2011). Total use of the revolver was restored to the company in May 2010 after complying with the amended covenants in the first quarter 2010. Availability had been limited to EUR51 million since the facility was amended in September 2009 to accommodate the shortfall in EBITDA generation during the global economic downturn, which would have led to a violation of the leverage covenant. The improved profitability in 2010 could allow the company to meet the original financial covenants and revert the credit facility to its pre-amendment terms and conditions. Free cash flow in the first half of 2010 is expected to be negative, then turn positive in the second half. Overall, 2010 free cash flow may be minimal due to the need to invest in working capital and a return to higher capital expenditure levels. The stable outlook assumes that the TiO2 market will support higher operating rates, KII's operating results and credit metrics will improve in 2010, and it will refinance its revolver well in advance of the maturity date. An upgrade could be considered if KII were to refinance its revolver and demonstrate the ability to raise prices, increase its margins and produce positive free cash flow, to the extent that Retained Cash Flow/Total Debt rose to 8- 10% and Total Debt/EBITDA fell to roughly 5.0x, on a sustained basis. Moody's most recent announcement concerning the ratings for KII was on October 28, 2009, when KII's CFR was raised to Caa1 from Caa3 reflecting the improved liquidity after amending its revolver covenants and a rebound in sales. The outlook was returned to stable at that time. Kronos International, Inc., produces and markets TiO2 pigments in Europe, and is a wholly owned subsidiary of Kronos Worldwide, Inc., headquartered in Dallas, Texas. For the twelve months ended March 31, 2010, the company reported sales of $877 million. L-1 IDENTITY: S&P Puts 'B+' Rating on CreditWatch Developing ------------------------------------------------------------ Standard & Poor's Ratings Services said it placed its 'B+' corporate credit rating on Stamford, Conn.-based L-1 Identity Solutions Inc. on CreditWatch with developing implications. S&P also placed the 'BB' issue-level rating on the company's $135 million revolver and split-term senior secured term loan, and the 'B+' issue-level rating on the company's $175 million convertible notes on CreditWatch Developing. "These actions reflect L-1's ongoing process of evaluating strategic alternatives for the company which may include a sale of all or part of the company's operations," said Standard & Poor's credit analyst Jennifer Pepper. The buyer for L-1's business could be a larger, likely higher rated company with sufficient liquidity to retire L-1's debt, but the timeliness of this transaction has become of greater importance because of the terms of the recently amended covenants. The company recently obtained relief under its covenants while contemplating a suitable transaction. If prior to Aug. 31, 2010, L-1 enters into a definitive agreement to sell the company, the amended covenant ratios (which currently give the company approximately 18% headroom) will remain in place through Dec. 31, 2010. If a definitive agreement is not executed prior to Aug. 31, 2010, the pre-amendment covenant ratios would remain in effect. Under that scenario, S&P expects the company to refinance or further amend its covenants, as the pre-amended covenant schedule is restrictive. (The leverage covenant would have been violated in the March 2010 quarter if not for the amendment to the credit agreement.). In resolving the CreditWatch, S&P will monitor the progress of L- 1's entering into a definitive agreement or the execution of a refinancing. Should the company sign an agreement to be acquired prior to Aug. 31, 2010, S&P will evaluate the creditworthiness of the buyer and their intent with respect to L-1 debt. If as the Aug. 31, 2010 deadline approaches, there is no announcement on the resolution of a strategic alternative, if a pre-refinancing is not underway, or if the company does not report that EBITDA has improved beyond current levels such that a covenant breach would be not be imminent if the credit agreement reverts to pre-amendment levels, S&P would consider a downgrade, likely as much as two notches. LEHMAN BROTHERS: JPM's Dimon Said Barclays Misled Court on Sale --------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that trial resumed June 22 on a lawsuit filed by Lehman Brothers Holdings Inc. and its creditors' committee asserting that Barclays Plc took $11 billion more than it was entitled to receive when it purchased the brokerage business. According to Lehman, Jamie Dimon, the chairman of JPMorgan Chase & Co., wrote a letter to Barclays executives saying the bankruptcy judge was misinformed about the acquisition. Lehman is finishing with its witnesses this week. Barclays will begin presenting its case on Aug. 23. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LENNAR CORP: Fitch Affirms Issuer Default Rating at 'BB+' --------------------------------------------------------- Fitch Ratings has affirmed Lennar Corp.'s ratings: -- Issuer Default Rating at 'BB+'; -- Short-Term IDR at 'B'; -- 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, improving operating results and moderately stronger prospects for the housing sector this year. The ratings also reflect LEN's successful execution of its business model and its repositioning to a more land 'light' model during the upcoming cyclical recovery, lessened joint venture exposure, geographic and product line diversity and the still challenging U.S. housing environment. LEN was the third largest homebuilder in 2009 and primarily focuses on entry-level and first-time move-up homebuyers. The company builds in 14 states with particular focus on markets in Florida, Texas and California. Its financial services operations provide primarily mortgage financing, title insurance and closing services for both buyers of Lennar's homes and others. Its newest segment is Rialto Investments, which provides advisory services, due-diligence, workout strategies, ongoing asset management services and acquires and monetizes distressed loans and securities portfolios. (Management has considerable expertise in this highly specialized business.) In February 2010, the company acquired indirectly 40% managing member equity interests in two limited liability companies in partnership with the FDIC, for approximately $243 million (net of transaction costs and a $22 million working capital reserve). During the first quarter of 2010, LEN also invested $41 million in a fund formed under the Federal government's Public-Private Investment Program, which is focused on acquiring securities backed by real estate loans. In recent years the company has improved its capital structure, pursued conservative capitalization policies and has positioned itself to withstand a meaningful housing downturn. LEN's significant ranking (within the top five or top 10) in many of its markets, its largely presale operating strategy, and a return on capital focus provide the framework to soften the impact on margins from declining market conditions. Fitch notes that in the past, acquisitions (in particular, strategic acquisitions) have played a significant role in LEN's operating strategy. Compared to its peers Lennar had above-average exposure to joint ventures during this past housing cycle. Longer-dated land positions are controlled off balance sheet. The company's equity interests in its partnerships ranged from 10% to 50%. These JVs have a substantial business purpose and are governed by LEN's conservative operating principles. They allow LEN to strategically acquire land while mitigating land risks and reduce the supply of land owned by LEN. They help LEN to match financing to asset life. JVs facilitate just-in-time inventory management. Finally, the JVs enable LEN to franchise its active-adult brand. Nevertheless, LEN has been substantially reducing its number of JVs over the last few years (from 270 at the peak in 2006 to 58 as of Feb. 28, 2010) and, as a consequence, has very sharply lowered its JV recourse debt exposure (from $1.76 billion to $279 million as of Feb. 28, 2010). In the future, management will still be involved with partnerships and JVs, but there will be fewer of them and they will be larger, on average, than in the past. LEN generated $89.42 million of cash flow from operations during the first quarter of 2010, including a tax refund of $91.9 million as a result of the tax legislation enacted in November 2009. (An additional tax refund of $230.3 million was received on March 2, 2010.) The company ended the first quarter with unrestricted homebuilding cash of $732.39 million and $172.50 million in restricted cash. For all of fiscal 2010, LEN has the potential to be cash flow positive, excluding tax refunds, although the company continues to rebuild its land position (through land purchases and development spending). During the first quarter, the company spent $154 million on land purchases (3,300 home sites), but only reported land expenditures of $75 million in the first quarter of 2009. (In the first quarter of 2008, $354 million was spent on land.) The company terminated its revolving credit facility in February 2010 and subsequently entered into two letters of credit agreements with a capacity of $225 million that are secured by cash deposits. As of Feb. 28, 2010, LEN had $162.7 million of cash-collateralized letters of credit. 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 $300 million-$400 million), especially in these still uncertain times. LEN accessed the capital markets a number of times during the past year or so 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 March 2013 ($266 million). In April 2009, LEN sold $400 million principal amount of 12.25% senior notes due in 2017. In early May 2010, the company completed the sale of $250 million principal amount of 6.95% senior notes due 2018. LEN also sold $276.5 million principal amount of 2.00% convertible senior notes due 2020. Then in late May 2010, the company announced that it had repurchased $289.4 million principal amount of its outstanding notes through a debt tender. The tender offer was structured as a 'waterfall' tender. The senior notes purchased included $130.8 million of 2011 notes, $82.3 million of 2013 notes and $76.4 million of 2010 notes. During fiscal 2009, LEN added $225 million to its liquidity under its $275 million equity drawdown program. 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. Also, 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. LINCOLNSHIRE CAMPUS: Section 341(a) Meeting Scheduled for July 22 ----------------------------------------------------------------- The U.S. Trustee for Region 6 will convene a meeting of Lincolnshire Campus, LLC's creditors on July 22, 2010, at 2:00 p.m. The meeting will be held at Office of the U.S. Trustee, 1100 Commerce Street, Room 976, Dallas, TX 75242. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Baltimore, Maryland-based Lincolnshire Campus, LLC, is an affiliate of Erickson Retirement Communities. Erickson owns 20 continuing care retirement communities in 11 states. Erickson, along with affiliates, filed for Chapter 11 on October 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). As of September 30, 2009, on a book value basis, ERC had approximately $2.7 billion in assets, including $2.2 billion of property and equipment, and $3.0 billion in liabilities. Lincolnshire Campus filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P. Slusher, Esq., at DLA Piper LLP US, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. LIONS GATE: S&P Retains CreditWatch Negative on 'B-' Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on British Columbia, Canada-domiciled and Santa Monica, Calif.- headquartered Lions Gate Entertainment Corp. and its subsidiary, Lions Gate Entertainment Inc., are not affected by the news that 13.2% of the company's common shares were tendered to investor Carl Icahn and that the company's banks modified Lions Gate's credit agreement to raise the change-of-control threshold. The 'B-' corporate credit rating and all related issue-level ratings remain on CreditWatch with negative implications, where they were placed March 24, 2010. The tender gives Mr. Icahn about a 32% stake in the company, making him the largest shareholder. More shares could be tendered in Mr. Icahn's subsequent offering period, which ends June 30, 2010. On June 22, 2010, the company announced that it obtained an amendment to its credit agreement. The amendment raises the threshold for a change of control, which is an event of default under the agreement, to more than 50% control or ownership of the company's equity securities, from more than 20%. Management has also previously stated that it was considering financing options and alternatives in reaction to the Icahn Group's tender offer. S&P could downgrade its rating on Lions Gate if it takes actions, such as a significant debt-financed acquisition, that cause its credit measures to deteriorate from their already weak levels. LIONS GATE: In Merger Talks With Metro-Goldwyn-Mayer ---------------------------------------------------- Claudia Eller and Ben Fritz at The Los Angeles Times report that people close to the situation said Lions Gate Entertainment has been holding merger discussions with the management of beleaguered Metro-Goldwyn-Mayer. The talks, if successful, could result in a powerful independent studio with a library of thousands of movies and television shows that would be run by Lions Gate's management team. According to LA Times, people with knowledge of the discussions said that Lions Gate Chief Executive Jon Feltheimer and Vice Chairman Michael Burns were pursuing a merger with MGM to fend off a takeover attempt by Carl Icahn, who has accumulated nearly one- third of Lion Gate's stock and has threatened to wage a proxy war to gain control. According to LA Times, the people said the talks were fluid and Lions Gate had not presented a specific merger proposal. Moreover, such a transaction would face significant hurdles. The report notes Lions Gate would first have to win Mr. Icahn's approval, which it might accomplish by granting him board seats as part of a settlement to stave off his proxy war. Mr. Icahn opposed a $1.4-billion offer Lions Gate made to acquire MGM earlier this year, and the bid was subsequently withdrawn. The Troubled Company Reporter on June 22, 2010, citing The Wall Street Journal's Mike Spector and Lauren A.E. Schuker, said people familiar with the matter disclosed Spyglass Entertainment has emerged as the leading contender to run MGM. The sources told the Journal that Spyglass is the preferred choice of a group of hedge funds holding large amounts of MGM's debt. Any deal would be executed in a "prepackaged" bankruptcy, with an eye toward spending less than two months in court proceedings. The LA Times reported Tuesday that Spyglass would substantially reduce MGM's approximately $150 million in annual overhead costs by slashing staff and outsourcing theatrical distribution to one of Hollywood's six major studios as part of a proposal to take over the debt-burdened company, two people close to the situation said. Brooks Barnes at The New York Times' Media Decoder reported in May that MGM's lenders agreed to let the studio skip interest and principal payments until July 14, 2010. MGM tried to sell itself in March but received low bids. According to The Wall Street Journal, early in March MGM was readying a backup plan should bids for its assets come in too low. Sources told the Journal MGM creditors are increasingly willing to assume control over the studio. The sources said that under that scenario, MGM would likely pursue a "standalone" plan in which lenders would convert their debt to equity. MGM has hired investment bank Moelis & Company and the law firm Skadden, Arps, Slate, Meagher & Flom. In August 2009, it hired the restructuring expert Stephen F. Cooper to help lead the company. About Metro-Goldwyn-Mayer Metro-Goldwyn-Mayer, Inc., is an independent, privately held motion picture, television, home video, and theatrical production and Distribution Company. The Company owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming. An investor consortium, comprised of Providence Equity Partners, TPG Capital, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group, owns MGM. About Lions Gate British Columbia-domiciled and Santa Monica, California- headquartered Lions Gate is a leading, diversified independent producer and distributor of motion pictures, home entertainment, television programming and animation worldwide and holds a majority interest in the pioneering CinemaNow VOD business. The Lions Gate brand name is synonymous with original, cutting edge, quality entertainment in markets around the world. As reported by the Troubled Company Reporter on March 10, 2010, Standard & Poor's Ratings Services revised its rating outlook on Lions Gate to negative from stable. At the same time, S&P affirmed ratings on Lions Gate, including the 'B-' corporate credit rating. Lions Gate carries Moody's "B2" corporate family rating and probability of default rating. MAGIC BRANDS: Travistock Objected to Luby's Buying Fuddruckers -------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Travistock Group, the losing bidder for the Fuddruckers stores and franchise business, said in a court filing there are "potentially serious issues" with regard to the auction. Travistock was the stalking horse bidder at the auction, but Luby's Inc. emerged as the winner with its $63.45 million bid. The auction started with Travistock's $40 million. According to the report, Travistock said that Luby's recent losses cast doubt on its ability to complete the sale. It added that Luby's violated a rule of the auction precluding bidders from talking with another bidder. Travistock said Luby's chief executive officer was seen speaking with the third bidder, Fidelity National. Following the auction, Magic Brands said the sale "could" result in full payment for unsecured creditors. About Magic Brands Based in Austin, Texas, Magic Brands, LLC -- http://www.fuddruckers.com/-- 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. Fuddruckers was founded in 1980 in San Antonio, Texas. It serves hamburgers that are cooked to order and made with fresh ingredients. Magic Brands purchased the chain in 1998 and has sought to broaden its appeal by expanding its menu. Magic Brands, LLC, and its operating units filed for Chapter 11 on April 21, 2010 (Bankr. D. Del. Lead Case No. 10-11310). It disclosed assets of up to $10,000,000 and debts of $10,000,001 to $50,000,000. Affiliate Fuddruckers, Inc., also filed, listing assets and debts of $50,000,000 to $100,000,000. FocalPoint Securities, LLC, serves as investment banker to Magic Brands and Goulston & Storrs serves as lead bankruptcy counsel. Kurtzman Carson Consultants, LLC, serves as claims and notice MAIDENFORM BRANDS: S&P Raises Corporate Credit Rating to 'BB+' -------------------------------------------------------------- Standard & Poor's Ratings Services published earlier a press release wherein the new corporate credit rating was listed incorrectly. A corrected version is: S&P said it raised its corporate credit rating on Iselin, N.J.- based Maidenform Brands Inc. to 'BB+' from 'BB-' and removing all S&P's ratings from CreditWatch, where they were placed with positive implications on Dec. 10, 2009. The CreditWatch placement reflected S&P's view that Maidenform's operating performance has been good even with the difficult retail environment and credit metrics have remained above average for the rating despite the economic downturn. The rating outlook is stable. In addition, S&P raised its senior secured debt rating to 'BBB' from 'BB+' (two notches above the corporate credit rating). The recovery rating on the debt remains '1'. Immediately following the upgrade, S&P is withdrawing all of its ratings on the company, at the issuer's request. "The ratings on Maidenform reflect its participation in the highly competitive and very promotional intimate apparel sector," said Standard & Poor's credit analyst Jayne Ross, "along with a difficult retail environment, its relatively small size, its narrow product focus, and customer concentration." These following factors offset those risks: The company's well-known Maidenform brand (introduced in 1922); its solid position in the intimate apparel market; and the intimate apparel market's relatively stable demand, low fashion risk, and high replenishment rates. MARILYN UPTEGROVE: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Marilyn Kay Uptegrove 1171 NE 401 Road Calhoun, MO 65323 Bankruptcy Case No.: 10-43169 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court Western District of Missouri (Kansas City) Judge: Jerry W. Venters Debtor's Counsel: Ronald S. Weiss, Esq. Berman DeLeve Kuchan & Chapman 911 Main St., Suite 2230 Kansas City, MO 64105 Tel: (816) 471-5900 Fax: (816) 842-9955 E-mail: rweiss@bdkc.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 Marilyn Kay Uptegrove. MECHANICAL TECH: Stockholders Approve Lim, Robb as Directors ------------------------------------------------------------ Mechanical Technology Incorporated' stockholders elected as directors Peng K. Lim and Dr. Walter L. Robb to hold office until the 2013 Annual Meeting of Stockholders or until their successors are duly elected and qualified; and ratified the selection of PricewaterhouseCoopers, LLP as the Company's independent registered public accounting firm for the fiscal year 2010. About Mechanical Technology Mechanical Technology, Incorporated, operates in two segments, the New Energy segment which is conducted through MTI MicroFuel Cells Inc., a majority-owned subsidiary, and the Test and Measurement Instrumentation segment, which is conducted through MTI Instruments, Inc., a wholly owned subsidiary. MTI Micro is developing Mobion(R), a handheld energy-generating device to replace current lithium-ion and similar rechargeable battery systems in many handheld electronic devices for the military and consumer markets. As of December 31, 2009, the Company owned approximately 61.81% of MTI Micro's outstanding common stock. MTI Instruments is a worldwide supplier of precision non-contact physical measurement solutions, condition based monitoring systems, portable balance equipment and wafer inspection tools. * * * In its March 31, 2010 report, PricewaterhouseCoopers in Albany, New York, said there is substantial doubt about the Company's ability to continue as a going concern. It noted that the Company has suffered recurring losses from operations and has an accumulated deficit. METRO-GOLDWYN-MAYER: In Merger Talks With Lions Gate ---------------------------------------------------- Claudia Eller and Ben Fritz at The Los Angeles Times report that people close to the situation said Lions Gate Entertainment has been holding merger discussions with the management of beleaguered Metro-Goldwyn-Mayer. The talks, if successful, could result in a powerful independent studio with a library of thousands of movies and television shows that would be run by Lions Gate's management team. According to LA Times, people with knowledge of the discussions said that Lions Gate Chief Executive Jon Feltheimer and Vice Chairman Michael Burns were pursuing a merger with MGM to fend off a takeover attempt by Carl Icahn, who has accumulated nearly one- third of Lion Gate's stock and has threatened to wage a proxy war to gain control. According to LA Times, the people said the talks were fluid and Lions Gate had not presented a specific merger proposal. Moreover, such a transaction would face significant hurdles. The report notes Lions Gate would first have to win Mr. Icahn's approval, which it might accomplish by granting him board seats as part of a settlement to stave off his proxy war. Mr. Icahn opposed a $1.4-billion offer Lions Gate made to acquire MGM earlier this year, and the bid was subsequently withdrawn. The Troubled Company Reporter on June 22, 2010, citing The Wall Street Journal's Mike Spector and Lauren A.E. Schuker, said people familiar with the matter disclosed Spyglass Entertainment has emerged as the leading contender to run MGM. The sources told the Journal that Spyglass is the preferred choice of a group of hedge funds holding large amounts of MGM's debt. Any deal would be executed in a "prepackaged" bankruptcy, with an eye toward spending less than two months in court proceedings. The LA Times reported Tuesday that Spyglass would substantially reduce MGM's approximately $150 million in annual overhead costs by slashing staff and outsourcing theatrical distribution to one of Hollywood's six major studios as part of a proposal to take over the debt-burdened company, two people close to the situation said. Brooks Barnes at The New York Times' Media Decoder reported in May that MGM's lenders agreed to let the studio skip interest and principal payments until July 14, 2010. MGM tried to sell itself in March but received low bids. According to The Wall Street Journal, early in March MGM was readying a backup plan should bids for its assets come in too low. Sources told the Journal MGM creditors are increasingly willing to assume control over the studio. The sources said that under that scenario, MGM would likely pursue a "standalone" plan in which lenders would convert their debt to equity. MGM has hired investment bank Moelis & Company and the law firm Skadden, Arps, Slate, Meagher & Flom. In August 2009, it hired the restructuring expert Stephen F. Cooper to help lead the company. About Lions Gate British Columbia-domiciled and Santa Monica, California- headquartered Lions Gate is a leading, diversified independent producer and distributor of motion pictures, home entertainment, television programming and animation worldwide and holds a majority interest in the pioneering CinemaNow VOD business. The Lions Gate brand name is synonymous with original, cutting edge, quality entertainment in markets around the world. As reported by the Troubled Company Reporter on March 10, 2010, Standard & Poor's Ratings Services revised its rating outlook on Lions Gate to negative from stable. At the same time, S&P affirmed ratings on Lions Gate, including the 'B-' corporate credit rating. Lions Gate carries Moody's "B2" corporate family rating and probability of default rating. About Metro-Goldwyn-Mayer Metro-Goldwyn-Mayer, Inc., is an independent, privately held motion picture, television, home video, and theatrical production and Distribution Company. The Company owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming. An investor consortium, comprised of Providence Equity Partners, TPG Capital, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group, owns MGM. MGIC INDEMNITY: S&P Corrects Counterparty Credit Ratings to 'B+' ---------------------------------------------------------------- Standard & Poor's Ratings Services corrected its counterparty credit and financial strength ratings on MGIC Indemnity Co. by lowering them to 'B+' from 'BB' and assigning a negative outlook. On Oct. 19, 2009, S&P lowered its ratings on Mortgage Guaranty Insurance Corp. to 'B+' from 'BB', but because of an error, S&P did not contemporaneously downgrade MGIC Indemnity Co. Ratings List Rating lowered MGIC Indemnity Co. To From -- ---- Counterparty credit rating B+/Negative/-- BB/Stable/-- Financial strength rating B+/Negative/-- BB/Stable/-- MOVIE GALLERY: Gamers to Block COKeM's $3MM Bid for Video Assets ---------------------------------------------------------------- Bankruptcy Law360 reports that Gamers Factory Inc. is aiming to block rival COKeM International Ltd. from buying over $3 million worth of video games and accessories from Movie Gallery Inc., saying it would beat COKeM's proposed sale price by $50,000. Gamers, a subsidiary of Game Trading Technologies Inc., lodged an objection to the proposed sale Wednesday in the U.S. Bankruptcy Court for the Eastern District of Virginia, Law360 says. About Movie Gallery Based in Wilsonville, Ore., Movie Gallery, Inc., is the second largest North American video and game rental company, operating stores in the U.S. and Canada under the Movie Gallery, Hollywood Video and Game Crazy brands. Movie Gallery first filed for Chapter 11 on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853). Kirkland & Ellis LLP and Kutak Rock LLP represented the Debtors. The Company emerged from bankruptcy on May 20, 2008, with private-investment firms Sopris Capital Advisors LLC and Aspen Advisors LLC as its principal owners. William Kaye was appointed plan administrator and litigation trustee. Movie Gallery returned to Chapter 11 protection on February 3, 2009 (Bankr. E.D. Va. Case No. 10-30696). Attorneys at Sonnenschein Nath & Rosenthal LLP and Kutak Rock LLP represent the Debtors in their second restructuring effort. Kurtzman Carson Consultants serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Movie Gallery Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings undertaken by Movie Gallery Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). MWB LLC: Case Summary & Largest Unsecured Creditor -------------------------------------------------- Debtor: MWB, LLC P.O. Box 5958 Maryville, TN 37802 Bankruptcy Case No.: 10-32951 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Richard Stair Jr. Debtor's Counsel: Thomas Lynn Tarpy, Esq. Hagood, Tarpy & Cox PLLC Suite 2100, Riverview Tower 900 South Gay Street Knoxville, TN 37902-1537 Tel: (865) 525-7313 E-mail: ltarpy@htandc.com Scheduled Assets: $2,500,000 Scheduled Debts: $1,940,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ McMinn Couty Trustee Real propert taxes $30,000 Athens, TN 37303 The petition was signed by Charles B. Hicks, member. NEWARK GROUP: Seeks to Hire Grant Thornton as Tax Accountant ------------------------------------------------------------ BankruptcyData.com reports that Newark Group is seeking approval from the Bankruptcy Court to employ Grant Thornton (Contact: Alan Gallatin) as tax accountant at these hourly rates: * partner at $620 to $715, * director at $570 to $650, * senior manager at $505 to $565, * manager at $450 to $475, * senior associate at $335 to $395, * associate at $230 to $260, * paraprofessional at $125 to $180 and * intern at $175 to $195. 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. NORTH AMERICAN PETROLEUM: Cash Collateral Hearing Set for July 6 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware, in a second interim order, authorized North American Petroleum Corporation USA, et al., to use the cash securing their obligation to their prepetition lenders. A final hearing on the Debtor's access to the cash collateral will be held on July 6, 2010, at 11:00 a.m. prevailing Eastern Time. Objections, if any, are due on July 1, at 4:00 p.m. ET. The Debtors would use the cash collateral to fund their Chapter 11 case, pay suppliers and other parties. As reported in the Troubled Company Reporter on June 8, 2010, to support their drilling activities, the Debtors entered into a certain senior secured credit agreement originally dated August 25, 2005, with Texas Capital Bank, N.A., as Administrative Agent, and Guaranty Bank, FSB, as Co-Agent Bank, on behalf of the lender parties thereto, to provide the Debtors with a $200 million term and revolving credit facility. Approximately $103 million remains outstanding under the Prepetition Credit Agreement. Under a reimbursement agreement (the Cost Recovery Agreement) with the Debtors, Enterra Energy Corp. and certain of its affiliates agreed to provide up-front funding for the construction of certain waste-water disposal and other infrastructure improvements for wells. Although the Debtors were required pursuant to the Cost Recovery Agreement to ultimately fund more than the entire cost of the infrastructure improvements, the improvements remained property of Enterrra, and the Debtors had no interest in the improvements. Enterra claims that approximately $15 million remains to be paid by the Debtors under the Cost Recovery Agreement. As of the Petition Date, the Debtors had total consolidated funded debt of approximately $103 million, consisting of secured bank debt under the prepetition secured credit agreement. In addition, to date Enterrra has asserted statutory mechanics and materialman's liens against certain prepetition collateral for prepetition obligations allegedly owed from the Debtors to Enterra in an amount of approximately $9.2 million. In exchange for using the cash collateral, the Debtors will grant the Co-Agents additional and replacement continuing valid, binding, enforceable, non-avoidable, and automatically perfected postpetition security interests in and liens on any and all presently owened and hereafter acquired personal property, real property and all other assets of the Debtors. As further adequate protection of the interests of the prepetition lenders and Enterra against diminution in value of their interests, the Debtors will commence negotiations with Enterra and the Prepetition Lenders regarding a schedule for the restructuring and/or sale of the Debtors' assets. About North American Petroleum Denver, Colorado-based North American Petroleum Corp. USA is a natural gas driller. North American Petroleum and Prize Petroleum are subsidiaries of Petroflow Energy Corporation. North American Petroleum filed for Chapter 11 bankruptcy protection on May 25, 2010 (Bankr. D. Del. Case No. 10-11707). Kirkland & Ellis LLP assists the Company in its restructuring effort. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP, is the Company's Delaware counsel. Kinetic Advisors LLC is the Company's restructuring advisor. Epiq Bankruptcy Solutions, LLC, is the Company's notice, claims and balloting agent. The Company estimated its assets and debts at $100,000,001 to $500,000,000. The Company's affiliate, Prize Petroleum LLC, filed a separate Chapter 11 petition on May 25, 2010 (Case No. 10-11708), listing up to $0 to $50,000 in assets and $100,000,001 to $500,000,000 in debts. NORTH AMERICAN PETROLEUM: Gets 30 Add'l Days to File Schedules -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware extended for an additional 30 days North American Petroleum Corporation USA, et al.'s time to file their (i) statement of financial affairs; (ii) schedules of assets and liabilities; (iii) schedules of current income and expenditures; and (iv) statements of executory contracts. Denver, Colorado-based North American Petroleum Corp. USA is a natural gas driller. North American Petroleum and Prize Petroleum are subsidiaries of Petroflow Energy Corporation. North American Petroleum filed for Chapter 11 bankruptcy protection on May 25, 2010 (Bankr. D. Del. Case No. 10-11707). Kirkland & Ellis LLP assists the Company in its restructuring effort. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP, is the Company's Delaware counsel. Kinetic Advisors LLC is the Company's restructuring advisor. Epiq Bankruptcy Solutions, LLC, is the Company's notice, claims and balloting agent. The Company estimated its assets and debts at $100,000,001 to $500,000,000. The Company's affiliate, Prize Petroleum LLC, filed a separate Chapter 11 petition on May 25, 2010 (Case No. 10-11708), listing up to $0 to $50,000 in assets and $100,000,001 to $500,000,000 in debts. NORTH AMERICAN PETROLEUM: Section 341(a) Meeting Set for June 29 ---------------------------------------------------------------- Roberta A. Deangelis, the U.S. Trustee for Region 3, will convene a meeting of creditors in North American Petroleum Corporation USA, et al.'s Chapter 11 case on June 29, 2010, at 11:00 a.m. The meeting will be held at J. Caleb Boggs Federal Building, 2nd Floor, Room 2112, Wilmington, Delaware. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About North American Petroleum Corp. USA Denver, Colorado-based North American Petroleum Corp. USA is a natural gas driller. North American Petroleum and Prize Petroleum are subsidiaries of Petroflow Energy Corporation. North American Petroleum filed for Chapter 11 bankruptcy protection on May 25, 2010 (Bankr. D. Del. Case No. 10-11707). Kirkland & Ellis LLP assists the Company in its restructuring effort. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP, is the Company's Delaware counsel. Kinetic Advisors LLC is the Company's restructuring advisor. Epiq Bankruptcy Solutions, LLC, is the Company's notice, claims and balloting agent. The Company estimated its assets and debts at $100,000,001 to $500,000,000. The Company's affiliate, Prize Petroleum LLC, filed a separate Chapter 11 petition on May 25, 2010 (Case No. 10-11708), listing up to $0 to $50,000 in assets and $100,000,001 to $500,000,000 in debts. NOVADEL PHARMA: Registers 10-Mil. Shares Under 2006 Equity Plan --------------------------------------------------------------- NovaDel Pharma Inc. disclosed that on June 10, 2010, an additional 10,000,000 shares of common stock were authorized for issuance under the 2006 Equity Incentive Plan (as amended and restated on April 20, 2010) in accordance with the provisions of the plan. The Company has filed a registration statement with the Securities and Exchange Commission to cover the additional 10,000,000 shares. Pursuant to the Registration Statement, the maximum aggregate offering price is $1,950,000. A full-text copy of the Registration Statement on Form S-8 is available at no charge at http://ResearchArchives.com/t/s?6555 About NovaDel Pharma Bridgewater, N.J.-based NovaDel Pharma Inc. (OTC BB: NVDL) -- http://www.novadel.com/-- is a specialty pharmaceutical company developing oral spray formulations for a broad range of marketed pharmaceuticals. * * * As reported in the Troubled Company Reporter on April 6, 2010, J.H. Cohn LLP, in Roseland, N.J., 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 December 31, 2009. The independent auditors noted that of the Company's recurring losses from operations and negative cash flows from operating activities. The Company's balance sheet as of March 31, 2010, showed $5,032,000 in assets and $9,831,000 of liabilities, for a stockholders' deficit of $4,799,000. PATRICK HACKETT: U.S. Trustee Drops Ch. 7 Case Conversion Plea --------------------------------------------------------------- Brian Kelly at Watertown Daily Times reports that U.S. Trustee Diane G. Adams withdrew her request to convert the Chapter 11 case of Patrick Hackett Hardware Inc. to Chapter 7 liquidation proceeding after the Company filed a plan of reorganization. According to the reorganization plan, Patrick Hackett plans to pay off its debts from revenues and income generated by the continued operation of its business. It will also use $500,000 from its parent corporation, Wisebuys Inc., which is not in bankruptcy; $200,000 from Seaway Valley Capital Corp., of which Wisebuys is a subsidiary; and $200,000 from the sale of property in Canton and Ogdensburg. The money from Wisebuys and Seaway Valley will be raised through "various public offerings," according to a disclosure statement accompanying the reorganization plan. About Patrick Hackett Hackett's Stores, Inc., is the parent company of Patrick Hackett Hardware Company and HIIO, Inc. Patrick Hackett Hardware Company has a wide variety of merchandise and business lines, including a full service hardware, consumer electronics, equipment rental, brand name clothing, footwear, sporting goods and gourmet foods. HIIO, Inc., represents a concept platform for a new specialty retailer focused on fashion clothing and outerwear, footwear and selected gift items. There are currently no HIIO-branded stores opened to date. Hackett's Stores, Inc. (Pink Sheets:HCKI) is a holding of Seaway Valley Capital Corporation (Pink Sheets:SEVA). Based in New York, Patrick Hackett Hardware Company -- http://www.hackettsonline.com/-- began in 1830 as a hardware store in upstate New York. Hacketts now operates full-service department stores and a specialty store, selling a full line of clothes, consumer electronics, cell phones, shoes, housewares, hardware and others. Patrick Hackett filed for Chapter 11 on November 10, 2009 (Bankr. N.D. N.Y Case No. 09-63135). The Debtor disclosed less than $10,000,000 in total asset Hackett's Stores, Inc., whose shares trade currently on the Pink Sheets, is not nor has ever been in bankruptcy or bankruptcy protection." POLARIOD CORP: Auction of Photos Nets $12.4 Million --------------------------------------------------- Jacqueline Palank at Dow Jones Daily Bankruptcy Review, citing The Associated Press, reports that a two-day auction of 1,000-plus Polaroid photos raked in $12.4 million, about $2 million more than was expected. The auction was held in connection with Polaroid Corp.'s bankruptcy proceedings. The sale of the images, handpicked from Polaroid's collection of 16,000 photographs, will go toward paying off creditors of the company's bankruptcy estate. Polaroid Corporation -- http://www.polaroid.com/-- makes and sells films, cameras, and other imaging products. Polaroid filed for chapter 11 protection on Oct. 12, 2001 (Bankr. D. Del. Case No. 01-10864) and again on Dec. 18, 2008 (Bankr. D. Minn. Case No. 08-46617). PLR Acquistion LLC, a joint venture composed of Hilco Consumer Capital L.P. and Gordon Brothers Brands LLC, acquired most of Polaroid's assets -- including the Polaroid brand and trademarks -- in May 2009. They paid $87.6 million for the brand. Debtor Polaroid Corp. was renamed to PBE Corp. following the sale. The case was converted to Chapter 7 on Aug. 31, 2009, and John R. Stoebner serves as the Chapter 7 Trustee. PRES-LAHAINA SQUARE: Section 341(a) Meeting Scheduled for July 28 ----------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of creditors of Pres-Lahaina Square LLC and VLJ Aloha LLC on July 28, 2010, at 11:00 a.m. The meeting will be held at 411 W Fourth St., Room 1-159, Santa Ana, CA 92701. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Newport Beach, California-based Pres-Lahaina Square LLC filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. C.D. Calif. Case No. 10-18065). Marc J. Winthrop, Esq., who has an office in Newport Beach, California, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. The Company's affiliate, VLJ Aloha LLC, filed a separate Chapter 11 petition on June 15, 2010 (Case No. 10-18067). PRM REALTY: Has Until August 4 to File Reorganization Plan ---------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas extended PRM Realty Group, LLC's exclusive periods to file and solicit acceptances for the proposed Plan of Reorganization until August 4, 2010, and October 4, respectively. Chicago, Illinois-based PRM Realty Group, LLC, filed for Chapter 11 bankruptcy protection on January 6, 2010 (Bankr. N.D. Tex. Case No. 10-30241). The Company's affiliates -- Peter R. Morris; Bon Secour Partners, LLC; PM Transportation, LLC; Rangeline Properties, LLC; PRS II, LLC; and Morris Radio Enterprises, LLC -- filed separate Chapter 11 bankruptcy petitions. Gerrit M. Pronske, Esq., at Pronske & Patel, P.C., assists PRM Realty in its bankruptcy effort. PRM Realty listed $100,000,001 to $500,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. REVLON INC: Files 2009 Annual Report for Profit Sharing Plan ------------------------------------------------------------ Revlon Inc. filed with the Securities and Exchange Commission an annual report on Form 11-K for the Revlon Employees' Savings, Investment And Profit Sharing Plan for the fiscal year ended December 31, 2009. As of December 31, 2009, Net investments total $115,014; and Net assets available for benefits were $115,347. A full-text copy of the Form 11-K report is available at no charge at http://ResearchArchives.com/t/s?6553 About Revlon Inc. Headquartered in New York City, Revlon, Inc. (NYSE: REV) -- http://www.revloninc.com/-- is a worldwide cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and personal care products company. The Company's brands, which are sold worldwide, include Revlon(R), Almay(R), Mitchum(R), Charlie(R), Gatineau(R), and Ultima II(R). At March 31, 2010, the Company's balance sheet showed $807.0 million in total assets, $303.7 million total current liabilities, $1.1 billion long-term debt, $107.0 million long-term debt (affiliates), $210.8 million long term pension liabilities, and $63.9 million other long term liabilities, for a $983.0 million stockholders' deficit. RIVER WEST: Hearing for Competing Plans Set for July 30 ------------------------------------------------------- Bank of America, N.A., filed with the U.S. Bankruptcy Court for the Northern District of Illinois a Chapter 11 plan of liquidation and an explanatory disclosure statement for River West Plaza- Chicago, LLC. The Debtor has also filed its own plan of liquidation. The Court will consider the confirmation of either Plan at a hearing on July 30, 2010, at 9:30 a.m., C.D.T. Objections, if any, are due on July 16. To assist holders in evaluating the competing Plans versus a Chapter 7 liquidation, BofA prepared the Plan Comparison Chart showing its analysis of the aggregate recoveries for each class of creditors under the two Plans and a Chapter 7 liquidation. Class of Claim Projected Recovery Under: -------------- Bank's Plan Third Plan Ch. 7 Liquidation ----------- ---------- ----------------- 1 - Bank Secured 100% 100% 85% 1 - Other Secured 100% 100% 0% 2 - General unsecured 100% 62% or more 0% 2 - Bank Deficiency Unknown 62% 0% 3 - Equity Interests 0% 0% 0% A full-text copy of the BofA Plan, is available for free at http://bankrupt.com/misc/Riverwest_BofAAmendedDS.pdf About River West Plaza-Chicago River West Plaza-Chicago LLC, dba Joffco Square, is an Illinois limited liability company, with its principal office located at 5 Revere Drive, Suite 200, Northbrook, Illinois 60062. The Company filed for Chapter 11 bankruptcy protection on December 7, 2009 (Bankr. N.D. Ill. Case No. 09-46258). Forrest B. Lammiman, Esq., at Meltzer, Purtill & Stelle LLC assists the Company in its restructuring efforts. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. RME EQUIPMENT: Case Summary & 8 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: RME Equipment, Inc. 34818 Michelle Dr. Pinehurst, TX 77362 Bankruptcy Case No.: 10-35103 Chapter 11 Petition Date: June 21, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Jeff Bohm Debtor's Counsel: Jack Nicholas Fuerst, Esq. Attorney at Law P.O. Box 79263 Houston, TX 77279 Tel: (713) 299-8221 Fax: (713) 789-2606 E-mail: jfuerst@sbcglobal.net Scheduled Assets: $543,596 Scheduled Debts: $1,664,203 A list of the Company's 8 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb10-35103.pdf The petition was signed by Richard Monte Evenson, company's president. ROBERT N LUPO: U.S. Trustee Wants Case Converted to Chapter 7 ------------------------------------------------------------- The Hon. William C. Hillman of the U.S. Bankruptcy Court for the District of Massachusetts will consider at a hearing on June 29, 2010, at 9:30 a.m., the motion to convert the Chapter 11 case of Robert N. Lupo to one under Chapter 7 of the Bankruptcy Code, or appoint a Chapter 11 trustee. The hearing will be held at Courtroom 2, J.W. McCormack Post Office & Court House, 5 Post Office Square, 12th Floor, Boston, Massachusetts. John P. Fitzgerald, III, Acting U.S. Trustee for Region 1, sought for the conversion of the Debtor's case because: -- the Debtor's amended schedules and statements reflect substantial non-exempt assets available for liquidation and payment to creditors; -- the Debtor failed to formulate a disclosure statement and a feasible plan in over the six months his case has been pending; and -- the Debtor's counsel filed a motion to withdraw. About Robert N. Lupo Weston, Massachusetts-based Robert N. Lupo filed for Chapter 11 bankruptcy protection on December 10, 2009 (Bankr. D. Mass. Case No. 09-21945). Andrew G. Lizotte, Esq., at Hanify & King, P. C., 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 N LUPO: Cash Collateral Hearing Scheduled for June 29 ------------------------------------------------------------ The Hon. William C. Hillman the U.S. Bankruptcy Court for the District of Massachusetts will consider Robert N. Lupo's access to the cash collateral on June 29, 2010, at 9:30 a.m. The hearing will be held at Courtroom 2, J.W. McCormack Post Office & Court House, 5 Post Office Square, 12th Floor, Boston, Massachusetts. As reported in the Troubled Company Reporter on April 15, the secured creditors claim an interest in 31 commercial, residential and mixed use properties in Weston, Wayland, Lincoln, Newton, Waltham, and Acton, Massachussetts, and on Cape Cod, in New Hampshire, and in Maine. The Debtor will use the rental income generated by the properties to fund its operations postpetition. The Debtor said that the secured creditors are provided adequate protection of their interest through its continued ownership and management of the properties, the payment of postpetition taxes, insurance, and other operating expenses, and by the lender's interest in the continuing stream of rental income. About Robert N. Lupo Weston, Massachusetts-based Robert N. Lupo filed for Chapter 11 bankruptcy protection on December 10, 2009 (Bankr. D. Mass. Case No. 09-21945). Andrew G. Lizotte, Esq., at Hanify & King, P. C., 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 N LUPO: U.S. Trustee Forms 4-Member Creditors Committee -------------------------------------------------------------- John P. Fitzgerald, III, Acting U.S. Trustee for Region 1, appointed five members to the official committee of unsecured creditors in the Chapter 11 case of Robert N. Lupo. The Creditors Committee members are: 1. Lisa Jacobs P.O. Box 488 Weston, MA 02493 Tel: (781) 899-9774 Fax: (781) 899-9774 E-mail: lisajacobs8@hotmail.com 2. EZ Oil Company 11 Pine Vale Rd. Waltham, MA 02451-2237 Creditor Rep: Law Offices of Nicole Starck Legal Representation Tel: (781) 893-2254 Fax: (781) 893-2257 E-mail: nicole@starcklaw.com 3. Thomas D. Godino & Company, Inc. dba Godino & Co., Inc. 225 Riverview Ave., Suite 101 Newton, MA 02466 Creditor Rep: Thomas D. Godino, president Tel: (617) 965-4200 extn. 111 Cell: (617) 797-7747 Fax: (617) 965-8632 E-mail: tgodinosr@godinoco.com 4. Lexington Alarm Systems 9 Alfred Circle Bedford, MA 01730 Creditor Rep: Dennis Hughes, COO Tel: (781) 275-4200 Fax: (781) 275-3141 E-mail: dhughes@lexingtonalarm.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtor's expense. They may investigate the Debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Robert N. Lupo Weston, Massachusetts-based Robert N. Lupo filed for Chapter 11 bankruptcy protection on December 10, 2009 (Bankr. D. Mass. Case No. 09-21945). Andrew G. Lizotte, Esq., at Hanify & King, P. C., 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. ROCKY MOUNTAIN: Gets 5-Year Probation for Illegal Exports --------------------------------------------------------- Felisa Cardona at The Denver Post says Rocky Mountain Instrument Co.'s chief executive pleaded guilty to exporting military optical prisms and data to foreign nations without permission from the U.S. State Department. A district judge sentenced the Company to five years of probation and oversight, and ordered the forfeiture of $1 million to the federal government. Lafayette, Colorado-based Rocky Mountain Instrument Inc. is a high-tech optics company. The Company and its laser subsidiary makes a variety of photonics products for industry and defense use, including optics that defense giant Lockheed Martin Corp. planned to use in its F-22 fighter currently under development. The Company has offices in Russia and South Korea in addition to its Lafayette site. The Company filed for Chapter 11 protection on June 23, 2009 (Bankr. D. Col. Case No.: 09-22368). Christian C. Onsager, Esq., represents the Debtor in its restructuring efforts. The Company listed assets of less than $50,000 and liabilities of between $1 million and $10 million. SAHARA ENEGY: Creditors Approve BIA Proposal -------------------------------------------- Sahara Energy Ltd. disclosed that, further to its news release of June 8, 2010, the secured creditors and the unsecured creditors of Sahara voted in favor of Sahara's proposal under the Bankruptcy and Insolvency Act at a meeting of the creditors held on June 22, 2010. The finalization of the proposal remains subject to court approval, which will be sought by Deloitte and Touche Inc. who is acting as trustee under Sahara's proposal. The proposal is also subject to regulatory and shareholder approval. SHOPPES OF LAKESIDE: Section 341(a) Meeting Scheduled for July 21 ----------------------------------------------------------------- The U.S. Trustee for Region 21 will convene a meeting of Shoppes of Lakeside, Inc.'s creditors on July 21, 2010, at 3:00 p.m. The meeting will be held at First Floor, 300 North Hogan St. Suite 1-200, Jacksonville, FL 32202. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Neptune Beach, Florida-based Shoppes of Lakeside, Inc., filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. M.D. Fla. Case No. 10-05199). Bryan K. Mickler, Esq., who has an office in Jacksonville, Florida, assists the Company in its restructuring effort. The Company listed $39,894,050 in assets and $37,748,101 in liabilities. SHOPPES OF LAKESIDE: Taps Bryan Mickler as Bankruptcy Counsel ------------------------------------------------------------- Shoppes of Lakeside, Inc., has sought permission from the U.S. Bankruptcy Court for the Middle District of Florida to employ Bryan K. Mickler as bankruptcy counsel. Mr. Mickler will represent the Debtor in its Chapter 11 case and provide other legal services which the Debtor anticipate will be required. The Debtor and Mr. Mickler didn't disclose how Mr. Mickler will be compensated for his services. Mr. Mickler assures the Court that he is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Neptune Beach, Florida-based Shoppes of Lakeside, Inc., filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. M.D. Fla. Case No. 10-05199). The Company listed $39,894,050 in assets and $37,748,101 in liabilities. SL GREEN: Court Dismisses Certain Legal Claims Made Against Firm ---------------------------------------------------------------- SL Green Realty Corp. disclosed that the New York State Supreme Court has dismissed certain legal claims made against the Company regarding a cancelled property sale. SL Green reached an agreement in late 2009 to sell an investment interest in an office building at 485 Lexington Avenue in New York City, but the buyer failed to meet conditions imposed by the lender of the property. The buyer then filed a lawsuit in an attempt to force SL Green to transfer the property to the buyer at a reduced price without lender consent, and filed a Notice of Pendency to prevent SL Green from selling the property to anyone else. The Court dismissed the claims which sought to compel SL Green to transfer the property, and cancelled the Notice of Pendency. SL Green President & Chief Investment Officer Andrew Mathias commented, "While it was unfortunate that the buyer chose this course of action after being unable to meet the lender's conditions and the transaction couldn't be completed, the Court has verified that we fulfilled our obligations in seeking lender approval. Most importantly, we have continued to manage the building and provide superior tenant service without interruption. The only remaining claim is for damages, which the Court stated is limited to a return of the deposit, and since we have already refunded the deposit we will be moving to dismiss that claim as well." About SL Green SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. The Company is the only publicly held REIT that specializes in this niche. As of December 31, 2009, the Company owned interests in 29 New York City office properties totaling approximately 23,211,200 square feet, making it New York's largest office landlord. In addition, at December 31, 2009, SL Green held investment interests in, among other things, eight retail properties encompassing approximately 374,812 square feet, three development properties encompassing approximately 399,800 square feet and two land interests, along with ownership interests in 31 suburban assets totaling 6,804,700 square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey. As reported in the Troubled Company Reporter on February 8, 2010, Fitch Ratings has affirmed the Issuer Default Rating of SL Green Realty Corp. and its subsidiaries SL Green Operating Partnership, L.P., and Reckson Operating Partnership, L.P.: SL Green Realty Corp. -- IDR at "BB+"; -- Perpetual preferred stock at "BB-". SL Green Operating Partnership, L.P. -- IDR at "BB+"; -- Revolving credit facility at "BB+"; -- Convertible unsecured notes at "BB+". Reckson Operating Partnership, L.P. -- IDR at "BB+"; -- Senior unsecured notes at "BB+" -- Convertible unsecured notes at "BB+". SMURFIT-STONE: Deregisters Unsold Stock Under Savings Plan ---------------------------------------------------------- In separate Form S-8s filed with the Securities and Exchange Commission on June 21, 2010, Smurfit-Stone Container Corporation disclosed that in December 2008, it amended the terms of the: * St. Laurent Paperboard Hourly Savings Plan; and * Smurfit-Stone Container Corporation Savings Plan, Jefferson Smurfit Corporation Hourly Savings Plan and Smurfit Packaging Corporation Savings Plan, to no longer allow participants to invest their contributions in SSCC's Common Stock. Therefore, neither the Common Stock available for issuance under the Plans nor interests need to be registered. SSCC previously registered 200,000 shares of common stock, par value $0.01, available for issuance under the St. Laurent Paperboard Hourly Savings Plan. In addition, SSCC registered 10,000,000 shares of common stock, par value $0.01 and 1,624,522 shares of Common Stock in connection with the Smurfit-Stone Container Corporation Savings Plan, Jefferson Smurfit Corporation Hourly Savings Plan and Smurfit Packaging Corporation Savings Plan. SSCC also registered an indeterminate amount of interests to be offered and sold pursuant to the Plans in accordance with Rule 416(c) under the Securities Act of 1933, as amended. Pursuant to an undertaking contained in the Registration Statements, SSCC deregisters, as of June 21, all shares of the Common Stock and all Interests unsold or unissued. SSCC filed a Form 15 on June 21 with the SEC to suspend the Plans' duties to file reports under Section 15(d) of the Securities Exchange Act of 1934, including on Form 11-K. 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) SMURFIT-STONE: Kruger Wants Claim vs. SSC Canada Allowed -------------------------------------------------------- Kruger Inc. Scierie Parent asks the Court to allow Claim No. 13658 against Debtor Smurfit-Stone Container Canada, Inc. Kruger, a Canadian corporation, was listed as a general unsecured creditor by Smurfit Canada on its schedules of assets and liabilities with a $1,073,654 unliquidated, contingent claim. Jeffrey R. Waxman, Esq., at Morris James LLP, in Wilmington, Delaware -- jwaxman@morrisjames.com -- tells the Court that despite the Debtors' knowledge that they had significant creditors located outside the United States, it does not appear that the Debtors published notice of the bar date for filing proofs of claim in any Canadian publications. Mr. Waxman says that Kruger had no knowledge of receiving the bar date notice until more than a month after the bar date had passed. Further, the Debtors' Notice of Bar Date and related papers was served on creditors by the claim agent, Mr. Waxman points out. "As a Canadian corporation, Kruger expects to be served with official court notices by registered mail or personally by a bailiff," Mr. Waxman argues. 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) SMURFIT-STONE: To Hold Call on Emergence on July 1 -------------------------------------------------- Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware confirmed on June 21, 2010, the Joint Plan of Reorganization and Plan of Compromise and Arrangement filed by Smurfit-Stone Container Corporation and each of its subsidiaries and affiliates currently acting as debtors-in-possession under Chapter 11 of the United States Bankruptcy Code, including those Debtors that are Canadian subsidiaries and parties to the Companies' Creditors Arrangement Act (Canada) proceeding. At the June 21 hearing, says Bloomberg News, Judge Shannon overruled the last objection to a compromise with shareholders that will make Smurfit a publicly traded company owned by unsecured creditors. The objection was from United States Debt Recovery, a claims trader holding approximately 70 claims worth about $11,000,000. Judge Shannon overruled USDR's objection after the Debtors and common shareholders led by Fir Tree, Inc., and P. Schoenfeld Asset Management LP, in separate filings, asserted that the Settlement provides a fair and reasonable resolution to the equity holders' objections without a material impact on creditors says the report. The State of Montana Department of Environmental Quality also filed an objection to the Settlement. However, the objection was resolved after the Debtors agreed to add a statement in the confirmation order providing that MDEQ's environmental claims will not be discharged. As previously reported, Smurfit-Stone's POR received overwhelming support from its creditor constituencies. On May 13, 2010, the Ontario Superior Court of Justice issued an order sanctioning the POR in the CCAA proceedings in Canada. On May 24, 2010, Smurfit-Stone announced that it reached a resolution with certain holders of the Company's preferred and common stock. The resolution provides that 4.5% of the new common stock of the reorganized Company that the POR previously provided for distribution to unsecured creditors will now be distributed to the Company's current stockholders, with 2.25% being distributed pro rata to the holders of the Company's preferred stock and 2.25% being distributed pro rata to holders of the Company's common stock. The company will leave bankruptcy with about $1.8 billion in debt, Matthew A. Clemente, a lawyer for Smurfit with the firm Sidley Austin LLP, said in an interview, notes Bloomberg. "With confirmation of the Plan of Reorganization, Smurfit-Stone is now on a path to emerge from our financial restructuring on June 30," said Patrick J. Moore, chairman and CEO of Smurfit- Stone. "Upon consummation of the restructuring plan, we will have successfully reduced our debt and realigned our capital structure in a way that dramatically improves the Company's prospects for long-term growth and profitability. "We are pleased to have been able to reach agreement with our creditors and stockholders on a plan that enables us to continue to drive value for our stakeholders and help our customers grow their businesses," Mr. Moore continued. "I particularly want to thank our employees, whose hard work and enduring dedication have allowed us to continue meeting and exceeding our customers' expectations throughout this process and whose efforts contributed greatly to positioning us for a successful emergence." Plan Complies With Section 1129 In his findings of fact, conclusions of law and order, confirming the Plan, Judge Shannon indicated that the Plan satisfies the requirements for confirmation set forth in Section 1129 of the Bankruptcy Code. A. Section 1129(a)(1) The Plan complies with all applicable provisions of the Bankruptcy Code, as required by Section 1129(a)(1) of the Bankruptcy Code, including, without limitation, Sections 1122 and 1123 of the Bankruptcy Code. Moreover, the Plan fully complies with each requirement of Section 1123(a) of the Bankruptcy Code. In accordance with Section 1122(a) of the Bankruptcy Code, the Plan classifies each Claim against and Interest in the Debtors into a Class containing only substantially similar Claims or Interests. In accordance with Section 1123(a)(1) of the Bankruptcy Code, the Plan properly classifies all Claims and Interests that require classification. The number of classes reflects the diverse classification of those Claims against and Interests in the various Debtors, and the legal rights under the Bankruptcy Code of each of the holders of Claims or Interests within that Class. In accordance with Section 1123(a)(2) of the Bankruptcy Code, the Plan identifies and describes each Class of Claims or Interests that is not impaired under the Plan. In accordance with Section 1123(a)(3) of the Bankruptcy Code, the Plan identifies and describes any Class of Claims or Interests that is impaired under the Plan. In accordance with Section 1123(a)(4) of the Bankruptcy Code, the Plan provides the same treatment for each Claim or Interest of a particular Class unless the holder of a Claim or Interest agrees to less favorable treatment. In accordance with Section 1123(a)(5) of the Bankruptcy Code, the Plan provides adequate means for its implementation. In accordance with Section 1123(a)(6) of the Bankruptcy Code, the Reorganized Debtors' charters, bylaws or similar constituent documents contain provisions prohibiting the issuance of nonvoting equity securities, provide for the appropriate distribution of voting power among all classes of equity securities authorized for issuance, and otherwise comply with the requirements of Section 1123(a)(6) of the Bankruptcy Code. In accordance with Section 1123(a)(7) of the Bankruptcy Code, the provisions of the Plan and the Reorganized Debtors' charters, bylaws and similar constituent documents regarding the manner of selection of officers and directors of the Reorganized Debtors are consistent with the interests of creditors and equity security holders and with public policy. B. Section 1129(a)(2) Votes with respect to the Plan were solicited in good faith and in a manner consistent with the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure and the Court's order approving solicitation and tabulation procedures. Accordingly, the requirements of Section 1129(a)(2) of the Bankruptcy Code have been satisfied. C. Section 1129(a)(3) The Debtors have proposed the Plan in good faith and not by any means forbidden by law. Consistent with the overriding purpose of Chapter 11 of the Bankruptcy Code, the Plan is designed to allow each of the Debtors to reorganize on a going concern basis while maximizing recoveries to their creditors and providing the Reorganized Debtors with a capital structure that will allow the Reorganized Debtors to satisfy their obligations with sufficient liquidity and capital reserves and to fund necessary capital expenditures and otherwise conduct their business in the ordinary course. In determining whether the Plan has been proposed in good faith, Judge Shannon examined the totality of the circumstances surrounding the filing of the Chapter 11 Cases, the Plan itself, the process leading to its formulation, and the solicitation of votes in support of the Plan. Accordingly, he found out that the Plan satisfies the "good faith" requirement of Section 1129(a)(3) of the Bankruptcy Code. D. Section 1129(a)(4) In accordance with Section 1129(a)(4) of the Bankruptcy Code, no payment for services or costs and expenses in or in connection with the Chapter 11 Cases, or in connection with the Plan and incidental to the Chapter 11 Cases, including Claims for professional fees, has been or will be made by a Debtor other than payments that have been authorized by the Bankruptcy Court. The Plan provides for the payment of various administrative claims, including claims for professional fees, which are subject to the Bankruptcy Court's approval and the standards of the Bankruptcy Code. In addition, the Prepetition Notes Indenture Trustee Fees, Industrial Revenue Bond Indenture Trustee Fees, and the Professional Fees of the Ad Hoc Noteholders, the Ad Hoc Group of Preferred Holders, and the Ad Hoc Group of Common Holders, which are payable by the Debtors pursuant to the Plan will be subject to a "reasonableness" standard. E. Section 1129(a)(5) The Debtors have disclosed all necessary information regarding the Reorganized Debtors' officers and directors, including for those directors and officers who may constitute insiders, and the applicable compensation paid or to be paid as of the Effective Date. The appointment or continuance of the proposed directors and officers is consistent with the interests of the holders of Claims and Interests and with public policy. The initial board of directors of Reorganized SSCC will consist of: * Patrick J. Moore - Chief Executive Officer; * Steven J. Klinger - President and Chief Operating Officer * Ralph F. Hake - Chairman; * James J. O'Connor; * Timothy J. Bernlohr; * Terrell K. Crews; * Eugene I. Davis; * Michael E. Ducey; * Jonathan F. Foster; * Ernst A. Haberli; and * Arthur W. Huge. F. Section 1129(a)(6) The Debtors' current businesses do not involve the establishment of rates over which any regulatory commission has or will have jurisdiction after Confirmation. G. Section 1129(a)(7) Each Holder of an Impaired Claim that has not accepted the Plan will, as demonstrated by the liquidation analysis submitted by the Debtors together with the Disclosure Statement describing the Plan, receive or retain property under the Plan having a value, as of the Effective Date, that is not less than the amount that the Holder would so receive or retain if the Debtors were liquidated under Chapter 7 of the Bankruptcy Code on the Effective Date. The liquidation analysis annexed to the Disclosure Statement including the methodology used and estimations and assumptions made therein, and the evidence related thereto that was proffered at the Confirmation Hearing, (a) are persuasive and credible as of the dates the evidence was prepared, presented or proffered, (b) have not been controverted by other persuasive evidence and have not been challenged, (c) are based upon reasonable and sound assumptions, and (d) provide a reasonable estimate of the liquidation value of each of the Debtors' Estates upon a conversion to a chapter 7 proceeding. Therefore, the Plan satisfies the requirements of Section 1129(a)(7) of the Bankruptcy Code. H. Section 1129(a)(8) Each Impaired Class of Claims entitled to vote to accept or reject the Plan has voted to accept the Plan pursuant to Section 1126(c) of the Bankruptcy Code, except for Classes 4C and 4D. The Holders of Claims in Classes 4C and 4D have agreed to change their vote pursuant to the CIT Stipulation and Union Bank Stipulation upon entry of the Confirmation Order, and, as a result, these Classes have voted to accept the Plan pursuant to Section 1126(f) of the Bankruptcy Code. The Plan satisfies the requirements of Section 1129(b) with respect to Classes 1G, 4C, 4D, 4G, 6C through 14C, 15F, 15G, 16F, 17D, 20F, 21D, and 22C through 25C as a matter of law. I. Section 1129(a)(9) The Plan provides for treatment of Allowed Claims entitled to priority pursuant to Section 507(a)(2) to (8) of the Bankruptcy Code in the manner required by Section 1129(a)(9) of the Bankruptcy Code. J. Section 1129(a)(10) At least one impaired class of claims has voted in sufficient number and amount to accept the Plan, determined without including the acceptance by any insider, with respect to every Debtor, except for the non-operating subsidiary Debtors which are either being dissolved or merged into the Reorganized Debtors on the Plan's effective date. Accordingly, Judge Shannon finds that Section 1129(a)(10) of the Bankruptcy Code has been satisfied in connection with each of the Debtors. K. Section 1129(a)(11) Judge Shannon determined that the Plan is feasible and the Debtors have demonstrated, through, among other things, an updated financial information and evidence proffered or adduced at the Confirmation Hearing, that confirmation of the Plan is not likely to be followed by the liquidation or need for further financial reorganization, of the Debtors, the Reorganized Debtors or any successor to the Reorganized Debtors. The Plan, therefore, complies with Section 1129(a)(11) of the Bankruptcy Code. L. Section 1129(a)(12) The Plan provides that all fees payable pursuant to Section 1930 of Title 28 of the United States Code, as determined by the Bankruptcy Court at the Confirmation Hearing, will be paid on the Effective Date. M. Section 1129(a)(13) In accordance with Section 1129(a)(13) of the Bankruptcy Code, the Plan provides that except and to the extent previously assumed by the Bankruptcy Court, as of the Confirmation Date, but subject to the occurrence of the Effective Date, all Employee Benefit Plans, including the Employment and Retirement Benefit Agreements entered into before, on or after the Petition Date will be deemed and treated as though they are, executory contracts that are assumed by the Debtors and assigned to the Reorganized Debtors, except for (i) executory contracts or plans specifically rejected pursuant to the Plan, and (ii) executory contracts or plans that have previously been rejected and are the subject of a motion to reject or have been specifically waived by the beneficiaries of any plans or contracts. However, the Debtors will pay all "retiree benefits" and will amend certain Employment and Retirement Benefit Agreements prior to their assumption to provide that the implementation of the restructuring in accordance with the Plan will not alone constitute "Good Reason" or "Good Cause" for any employee of the Debtors or the Reorganized Debtors to terminate his or her employment nor constitute a "Change in Control" that would result in any obligation of the Debtors or Reorganized Debtors to provide any payments or other benefits to any employee. N. Section 1129(a)(14) The Debtors are not required by a judicial or administrative order, or by statute, to pay a domestic support obligation. Accordingly, Section 1129(a)(14) is inapplicable. O. Section 1129(a)(15) The Debtors are not individuals and accordingly, Section 1129(a)(15) is not applicable. P. Section 1129(a)(16) The Debtors are each a moneyed, business, or commercial corporation and accordingly, Section 1129(a)(16) is inapplicable. Other Provisions The Court ruled that the Canadian Asset Sale is approved in all respects. On the Effective Date, and pursuant to the Confirmation Order, the CCAA Sanction Order and the CCAA Vesting Order, the Canadian Assets will transfer to Canadian Newco free and clear of all Liens, Claims, interests and encumbrances other than those liabilities expressly assumed by Canadian Newco in accordance with the terms of the Asset Purchase Agreement. The consideration provided by Canadian Newco for the purchase of the Canadian Assets (a) is fair and reasonable and (b) constitutes "reasonably equivalent value" and "fair consideration" -- as these terms are used in each of the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act and Section 548 of the Bankruptcy Code. The Debtors may sell the Canadian Assets free and clear of all Interests or Claims because the Holders of Claims against SSC Canada and Smurfit-MB I have consented to the Canadian Asset Sale pursuant to Section 1123(b) of the Bankruptcy Code. In addition, holders of General Unsecured Claims against the Non- Operating Debtors (Canada) will not be entitled to receive or retain any monetary distributions or other property on account of the Claims under the Plan. All Allowed General Unsecured Claims against the Non-Operating Debtors (Canada), other than 605681 N.B. Inc., will be deemed settled, cancelled and extinguished on the Effective Date. For purposes of the CCAA Proceedings, all General Unsecured Claims against the Non-Operating Debtors (Canada) will be deemed to be Excluded Claims. Nothing in the Plan or the Confirmation Order will be deemed to alter the Debtors and Reorganized Debtors rights or obligations under the Stevenson Industrial Revenue Bonds and the St. Louis County Bonds. All New SSCC Common Stock issued pursuant to the Plan will, upon issuance, be duly authorized and validly issued, fully paid and non-assessable, and the conditions precedent to the issuance thereof will be deemed satisfied. Confirmation Objections are Resolved The Court held that certain objections to confirmation, to the extent not satisfied by a separate agreement, are resolved on the terms and subject to certain conditions. Accordingly, each of these formal or informal objections have been, and are deemed to have been, withdrawn by the objecting party at or prior to the Confirmation Hearing or, with respect to the Valuation Objections, on the Effective Date: * Environmental Protection Agency Nothing in the Confirmation Order or the Plan discharges, releases, or precludes: (i) any environmental liability to the United States that is not a Claim; (ii) any environmental Claim of the United States arising on or after the Confirmation Date; (iii) any environmental liability to the United States on the part of any entity as the owner or operator of real property after the Confirmation Date, provided that nothing in clause (iii) will be construed to deny a discharge, release or preclusion of any Claim with respect to the real property for: (a) response costs, oversight costs or other monetary costs incurred prior to the Confirmation Date or (b) penalties for all days of alleged violation of law prior to the Confirmation Date); or (iv) any environmental liability to the United States on the part of any Person other than the Debtors or Reorganized Debtors. Nor will anything in the Order or the Plan enjoin or otherwise bar the United States from asserting or enforcing, outside the Court, any liability as described. Notwithstanding any other provision in the Order or the Plan, the Court retains jurisdiction, but not exclusive jurisdiction, to determine whether environmental liabilities asserted by the United States are discharged or otherwise barred by the Order, the Plan, or the Bankruptcy Code. * Gexa The proof of claim filed by Gexa Energy LP will be deemed timely filed. Claim No. 13611 filed by Gexa Energy LP will be deemed an Allowed Claim. * DOJ/IRS The setoff rights and recoupment rights of the United States, including the Internal Revenue Service, will be preserved and are unaffected. No provision of the plan, including but not limited to the exculpation provisions is to have the effect of limiting any right of the IRS to assess or collect taxes, interest, or penalties from any non-debtor. * CAT Nothing will be deemed to affect Caterpillar Financial Services Corporation's security interest granted pursuant to the Leases in the Equipment in the possession of the Debtors, Reorganized Debtors or Canadian Newco. * Andritz The SSCE Distribution Reserve will include a reserve of $1,314,347 for Andritz Inc.'s rejection damage claim -- Claim No. 13877, provided the Debtors or Reorganized Debtors' right to object to the Andritz Claim on any and all grounds is expressly preserved. * Montana DOR If the Debtors fail to cure a default with respect to a tax payment owed to the Montana Department of Revenue that is not the subject of a bona fide dispute within 10 days after service of a written notice of the default from the Montana DOR, then the Montana DOR may (a) enforce the entire amount of its undisputed claim, (b) exercise any and all rights and remedies under applicable nonbankruptcy law, and (c) seek the relief as may be appropriate in the Court. Nothing in the Plan or the Confirmation Order will, or will be deemed to, release, discharge, nullify, enjoin or preclude the enforcement or assessment by Montana DOR of any liability, in the appropriate court or administrative body, against any non-Debtor entity or person subject to liability for taxes owed to the Montana DOR, subject to any defenses that the non-debtor entity or person may have under applicable law and facts. * Surety Bond The SSCE Distribution Reserve will include a reserve of $2,080,000 for Bond Safeguards' Claim No. 10503, provided the Debtors or Reorganized Debtors' right to object to the Bond Safeguard Claim on any and all grounds is expressly preserved. * ERISA Neither the entry of the Confirmation Order nor the occurrence of the Effective Date of the Plan will, or will be deemed to, prejudice, release, waive, discharge, enjoin or otherwise impair the rights of or belonging to the ERISA Objectors against SSCE, SSSC, and the defendants named in the action brought by the ERISA Objectors in the United States District Court for the Northern District of Illinois with respect to any insurance policies or insurance proceeds which may be available or may afford coverage with respect to the putative claims or causes of action asserted in (i) the ERISA Action or (ii) the proofs of claims filed against SSCE and SSSC on behalf of or belonging to the ERISA Objectors. * Texas Taxing Authorities/Fort Worth To the extent that the Local Texas Tax Authorities or FWISD et al. hold an Allowed Other Secured Claim, then (i) the Allowed Other Secured Claim will be paid in full in Cash pursuant to the Plan, together with any unpaid interest thereon accruing from the Petition Date through the date of payment at the rate determined under applicable nonbankruptcy law pursuant to Section 511 of the Bankruptcy Code, (ii) the accrued taxes for the 2010 tax year owed to the Texas Taxing Authorities will be paid timely pursuant to applicable nonbankruptcy law without the necessity of the Texas Taxing Authorities filing an administrative expense claim or request for payment, and (iii) to the extent that any valid Liens securing the Allowed Other Secured Claim or for postpetition 2010 taxes exist as of the Effective Date, that Tax Liens will not be cancelled, released, subordinated or otherwise affected pursuant to the Plan pending satisfaction of any Allowed Other Secured Claim and payment of postpetition 2010 taxes. * Montana Department of Environmental Quality As to the Montana Department of Environmental Quality, nothing In the Confirmation Order or the Plan discharges, releases, or precludes: (i) any environmental liability to the MDEQ that is not a Claim; (ii) any environmental Claim of the MDEQ arising on or after the Confirmation Date; (iii) any environmental liability to the MDEQ on the part of any entity as the owner or operator of real property in the state of Montana after the Confirmation Date; or (iv) any environmental liability to the MDEQ on the part of any Person other than the Debtors or Reorganized Debtors. Nor will anything in the Order or the Plan enjoin or otherwise bar the MDEQ from asserting or enforcing, outside the Court, any liability herein described. Notwithstanding any other provision in the Order or the Plan, the Court retains jurisdiction, but not exclusive jurisdiction, to determine whether environmental liabilities asserted by the MDEQ are discharged or otherwise barred by the Order, the Plan, or the Bankruptcy Code. * Baron and Budd Claimants Nothing in the Plan or in the Confirmation Order will or will be deemed to release, discharge, exculpate, nullify, enjoin or preclude the enforcement of any claims of the Baron and Budd Claimants against any non-debtor entity subject to liability for the claims, subject to any defenses that any non-debtor entity may have under applicable law. In addition, nothing in the Plan or the Confirmation Order will impair or modify the rights of the Baron & Budd Claimants from exercising their rights to liquidate their Claims against any Reorganized Debtor in a non-bankruptcy court of competent jurisdiction as provided by 28 U.S.C. Section 157(b)(2)(B) and nothing in the Plan or the Confirmation Order will be deemed to modify the rights of any Baron & Budd Claimant against any defendant, including any Reorganized Debtor, in any proceeding. The Reorganized Debtors and Baron & Budd have agreed that the Claims of the Baron & Budd Claimants will be liquidated on an expedited basis no later than 60 days after the Effective Date pursuant to the terms of the prepetition letter agreement between Baron & Budd and Smurfit-Stone. Any Claims of Baron & Budd Claimants upon which agreement cannot be reached between the parties will be submitted to non-binding mediation in a single mediation conducted by a mediator from the state of Louisiana who is mutually acceptable to Baron & Budd and the Reorganized Debtors. The costs of the mediation will be borne 50% by the Reorganized Debtors and 50% by the Baron & Budd Claimants. The purpose of the mediation is to liquidate the Claim being mediated and determine the amount, if any, the Claimant should receive in satisfaction of the Claim. Any differences in interpretation of the Letter Agreement also will be determined by the mediator. Once liquidated, claims of the Baron & Budd Claimants will be treated in accordance with the provisions of the Plan. Upon liquidation of a Claim of a Baron & Budd Claimant, stock distributed in satisfaction of the Claim will be issued to Baron & Budd pursuant to the Power of Attorney granted to Baron & Budd by the Claimant or to a fund or designee designated by Baron & Budd for purposes of receiving stock. * M&T The Debtors will pay Manufacturers and Traders Trust Company in full, in cash, all of its reasonable fees and expenses through May 10, 2010, on account of its actions as Prepetition Notes Indenture Trustee on behalf of the 7.375% Notes Due 2014. With respect to any and all fees and expenses of M&T for the period after May 10, 2010, (i) the Debtors will pay in full, in cash, all of M&T's reasonable fees and expenses related to any distributions to Holders of the 7.375% Notes Due 2014 pursuant to the Plan, and (ii) that the Debtors will not pay any fees and expenses of M&T related to the prosecution of the Intercompany Claim or Contribution Claim or any other related claims, actions or liabilities of the Debtors or their Related Persons, provided that the fees and expenses may be added to the claim of the Holders of the 7.375% Notes Due 2014 against Stone FinCo II and may be asserted as part of the Stone FinCo II Contribution Claim. * CIT The CIT Stipulation is approved. The first sentence of Section 3.5.4(b) of the Plan (Class 4D: CIT Group Claims Against Calpine Corrugated) is deemed amended to add this language to the end: ", plus the further sum of $750,000 in settlement and compromise of CIT's claims for payment of default rate interest in excess of nondefault rate interest accruing under the CIT Credit Agreement through the Effective Date and, in the event that the Effective Date has not occurred on or before July 15, 2010, CIT shall also receive payment of interest accruing at the default rate under the CIT Credit Agreement from July 15, 2010 through the Effective Date." On the Effective Date, Calpine Containers, Inc. will be authorized to assert any valid and enforceable setoff rights against Calpine Corrugated, LLC under applicable law to the extent allowed under Section 553 of the Bankruptcy Code. * UBC The Union Bank Stipulation is approved. The first sentence of Section 3.5.3(b) of the Plan (Class 4C: Union Bank Claims Against Calpine Corrugated) is deemed amended to add this language to the end: ", plus the further sum of $125,000 in settlement and compromise of Union Bank's claims for payment of default rate interest in excess of non-default rate interest accruing under the Union Bank Credit Agreement through the Effective Date." Judge Shannon held that all Objections, including the Stone FinCo II Objections, which was overruled pursuant to the Aurelius Order, not otherwise addressed or previously settled or withdrawn are overruled for the reasons set forth on the record at the Confirmation Hearing and in the Confirmation Order. A copy of the Confirmation Order is available for free at: http://bankrupt.com/misc/SmrftConfOrder.pdf A copy of the approved Plan is available for free at: http://bankrupt.com/misc/SmrftApprvCh11Plan.pdf Smurfit-Stone will host an emergence conference call and webcast to update investors on the newly restructured company on Thursday, July 1, 2010, at 11:00 a.m. ET. To access the presentation dial (800) 261-3417; access code 13274863 or visit Smurfit-Stone's website at www.smurfit- stone.com Plan Exclusivity Until Sept. 26 The Court has ruled that except with respect to Stone Container Finance Company of Canada II, the exclusive period for the Debtors to file a Chapter 11 Plan is extended through and including July 26, 2010, and the exclusive period to solicit acceptances to the Plan is extended through and including September 26, 2010. 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) SOUTH BAY EXPRESSWAY: Valley Crest, 2 Others in Creditors' Panel ---------------------------------------------------------------- Tiffany L. Carroll, the Acting United States Trustee for Region 15, appoints three members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of South Bay Expressway, L.P., and California Transportation Ventures, Inc.: (1) Liberstudio Architects, Inc. 1119 Colorado Avenue, Suite 112 Santa Monica, California 90401 Attn: Sheldon D. Liber Tel: (310) 434-9777 Fax: (310) 434-9111 E-mail: sliber@liberstudio.com (2) Resolution Management Consultants 5 Greentree Centre, Suite 311 525 Lincoln Drive West Marlton, New Jersey 08053 Attn: Jeffrey B. Kozek Tel: (856) 985-5000 Fax: (856) 985-5656 E-mail: j.kozek@resmgt.com (3) Valley Crest Landscape Development Inc. 24151 Ventura Boulevard Calabasas, California 91202 Attn: Ashley Wilson Tel: (818) 737-3195 E-mail: awilson@valleycrest.com Resolution Management is among the Debtors' 20 largest creditors. Resolution Management asserts a $80,483 claim against the Debtors' estates. Liberstudio is an architecture firm focusing on works with airport/aviation, colleges and universities, communication facilities, fire service facilities, government buildings, high tech labs, offices and school laboratories. Valley Crest is an integrated landscaping company specializing in landscape architecture, development and maintenance. To recall, Ms. Carroll informed the Court last May that despite her efforts to contact the Debtors' unsecured creditors, she did not receive sufficient indications of willingness to serve on an official committee of unsecured creditors from persons eligible to serve on the committee. Accordingly, Ms. Carroll told Judge Adler that her office was unable to appoint a committee pursuant to Section 1102(a) of the Bankruptcy Code at that time. 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 EXPRESSWAY: Wins Nod for Imperial as Fin'l Advisor ------------------------------------------------------------ South Bay Expressway, L.P., and California Transportation Ventures, Inc. won permission from the Bankruptcy Court to employ Imperial Capital LLC as their financial advisor. To recall, the Office of the United States Trustee and Banco Bilbao Vizcaya Argentaria, S.A., as the administrative agent under a certain Senior Loan Agreement, filed objections to the Application, opposing, among other things, the Application's initially proposed fee structure and indemnification. Imperial subsequently filed a reply addressing certain of the objections, and the Court entered two tentative rulings. The objections raised by the U.S. Trustee, if and to the extent that those objections were not resolved or overruled as stated on the record of hearing, are overruled, the Court held. Imperial's notice for judicial notice is granted, and the Court takes judicial notice of the documents referenced in that notice. The Application is approved according to these modifications in the Engagement Letter stated in Imperial's reply to the Application's objections: (a) Imperial will be paid: * a $150,000 Monthly Advisory Fee for each of the first two months after the Petition Date; * a $200,000 Monthly Advisory Fee for each of the next six months thereafter; and * a $150,000 Monthly Advisory Fee for every month of the engagement thereafter; (b) Imperial's potential Restructuring Transaction Fee will range from a minimum of $200,000, which minimum fee is approved, up to a maximum amount of $600,000, with any amounts above $200,000 to be subject to approval under Section 330 of the bankruptcy by the Court, provided that, subject to the rights provided to the U.S. Trustee in the order, only BBVA will have the right to object to any Restructuring Transaction Fee in excess of $200,000 under Section 330; and (c) Reimbursement of Imperial's legal fees will be capped at $50,000, pursuant to the Engagement Letter related to the Objections, the Imperial Reply, the Judicial Notice Request, the Appendix to the Application, and the hearing on the Application. The fees payable to Imperial pursuant to the Engagement Letter will be subject to review only pursuant to the standards set forth in Section 328(a), and will not be subject to the standard of review set forth in Section 330 of the Bankruptcy Code, provided (i) the U.S. Trustee, and no creditor or other party-in-interest, other than BBVA, will have the right to object to any fees paid or payable to Imperial pursuant to the Application, and (ii) BBVA will have the right to only object to any Restructuring Transaction Fee above $200,000 under Section 330. Imperial and its professionals will only be required to maintain time records for services rendered postpetition in half-hour increments, and will not be required to provide or conform to any schedule of hourly rates. The Indemnification Provisions of the Engagement Letter are also approved, provided all requests of Imperial for payment of indemnity pursuant to the Engagement Letter, as modified, will be made by means of a fee application and will be subject to review by the Court to ensure that payment of that indemnity conforms to the terms of the modified Engagement Letter, and is reasonable based on the circumstances of the litigation or settlement in respect of which indemnity is sought. 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). SPRINT NEXTEL: Reports Results of Exchange Offer for Stock Options ------------------------------------------------------------------ Sprint Nextel Corporation filed Amendment No. 2 to the Tender Offer Statement Under Section 14(d)(1) or 13(e)(1) of the Securities Exchange Act of 1934 to amend and supplement the Tender Offer Statement originally filed on May 17, 2010, as amended on May 21, 2010. The Offer expired at 11:00 p.m., Central Time, on June 16, 2010. The Company has accepted for cancellation and cancelled Options to Purchase Common Stock, Par Value $0.01 per share, covering 27,558,225 shares, representing 92% of the total Eligible Options. Subject to the terms and conditions of the Offer to Exchange, the Company has issued 6,838,000 New Options in exchange for the Eligible Options surrendered in the Offer. The exercise price of the New Options is $4.64, which was the closing price of the Company's common shares on June 17, 2010, as reported by the New York Stock Exchange. About Sprint Nextel Overland Park, Kansas-based Sprint Nextel Corporation -- http://www.sprint.com/-- offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two wireless networks serving more than 48 million customers at the end of the third quarter of 2009 and the first and only 4G service from a national carrier in the United States; industry-leading mobile data services; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The Company's balance sheet showed $54.28 billion in total assets and $37.03 billion in total liabilities, for a $17.24 billion stockholders' equity. Sprint has posted a net loss for three consecutive years -- reporting a net loss of $2.436 billion in 2009 from a net loss of $29.444 billion in 2007 and $2.796 billion in 2008. * * * Sprint Nextel carries Moody's Investors Service's Ba1 corporate family rating and Standard & Poor's Ratings Services' BB issuer credit rating. Moody's Investors Service has assigned a Baa2 rating to Sprint Nextel Corporation's proposed $2.25 billion senior unsecured revolving credit facility. The new facility will mature in the later half of 2013 and will replace the existing $4.5 billion credit facility that was due to expire in December 2010. Fitch Ratings has assigned a 'BB' rating with a Negative Rating Outlook to the new proposed unsecured $2.25 billion revolving credit facility at Sprint Nextel Corporation. The credit facility will mature in 2013. Concurrently, Fitch will withdraw the ratings on Sprint Nextel's $4.5 billion unsecured revolving credit facility at the time of closing. TAVERN ON THE GREEN: Remains Vacant; Food Carts May Be Set Up ------------------------------------------------------------- Jacqueline Palank at Dow Jones Daily Bankruptcy Review relates The Wall Street Journal's Metropolis blog this week reported that Manhattan officials are aiming to set up four food carts on the patio of the defunct restaurant Tavern on the Green, whose longtime operators filed for bankruptcy last year and closed up shop on Jan. 1 to make way for a new operator who didn't pan out. Dow Jones says officials are still working on a request for proposals from restaurateurs looking to reopen Tavern's doors, but that won't be ready for a few months. In the meantime, New York Mayor Michael Bloomberg hopes to use the space as a visitor center and shop. Tavern on the Green LP is the operator of the 75-year-old restaurant in New York's Central Park. Tavern on the Green, the second-highest grossing restaurant in the U.S. last year, was founded in 1934 by New York Parks Commissioner Robert Moses and the license was bought by restaurateur Warner LeRoy in 1974. The Company filed for Chapter 11 on September 9, 2009 (Bankr. S.D.N.Y. Case No. 09-15450). It listed assets and debts of as much as $50 million each. TELIFONDA (CAYMAN): Reaches Settlement With Aurelio Resource ------------------------------------------------------------ Aurelio Resource Corporation disclosed that the Company and Telifonda (Cayman) Ltd. have agreed to a settlement concerning Telifonda's multiple defaults in regards to Telifonda's February 2009 acquisition of Bolsa Resources, Inc. and the 100%-owned Hill Cu-Au-Ag project, located in Cochise County, Arizona. Telifonda Corporation was unable to meet two significant cash obligations to Aurelio of more than U.S. $1.7 million. U.S. $245,792 was due to Aurelio on or before October 31, 2009 and U.S. $1.45 million non recourse loan payment due on or before December 31, 2009 for AIEX Corporation, a subsidiary of Aurelio and its project Gavilanes Minera. In December 2009, the Company was advised that ownership of Telifonda and Bolsa (including the Hill project) was being acquired by Mining & Minerals Opportunity, Ltd. (the "MMO"), a private mineral acquisition and development company incorporated in Delaware that the Company understands has many shareholders in common. In May 2010, MMO completed the purchase of Telifonda and Bolsa. The Settlement The Company does not have the financial resources to pursue legal actions against Telifonda et. al. concerning the multiple defaults on the 2008 and 2009 agreements. Reluctantly, the Company's Board of Directors have voted to accept an equity settlement consisting of 450,000 Preferred Series A shares of MMO, plus 1,000,000 warrants with an exercise price of US$6/share (expiry date of December 31, 2015). The Company has been advised that MMO aims to complete an IPO on the Toronto Stock Exchange sometime during 2011. Impact of the Telifonda Default Telifonda's defaults have placed the Company in severe financial distress. The Company was unable to file its audited financial statements for the year ending December 31, 2009 resulting in a transfer of the Company's stock listing from the OTC-BB to the Pink Sheets. Telifonda's default has caused the Company to allow agreements to acquire the Veta Grande, Sand Springs and Horse Creek Canyon gold projects in Nevada to lapse. The Company was not able to make nearly U.S. $100,000 in option / advanced annual royalty payments which came due in the first quarter of 2010. The Company is working diligently towards divesting its Iron Butte, Nevada gold assets to a third party for cash and an equity position in a TSX-V listed company; however, there are no assurances that the transactions under discussion / negotiation will be completed. The resignation of Stephen Doppler, Director, President and CEO was regrettably received since he was one of the founders of the Company when the Company became public in August 2006. We wish him success in his future endeavors. About Aurelio Resource Aurelio Resource Corporation recently acquired a portfolio exploration and development-stage gold projects in Nevada, most of which are located on or in-between the Carlin and Battle Mountain- Eureka Trends; several of the projects are situated along the Cortez-Carlin Trend, which conceptually links the Carlin and Battle Mtn - Eureka Trends in a similar fashion as does the Getchell Trend to the northwest. Aurelio has also acquired the rights to explore, and an option to purchase, the Gavilanes gold deposit in Durango, Mexico. TRIBUNE CO: Examiner Seeks July 27 Extension of Report ------------------------------------------------------ Kenneth Klee, the independent examiner in the Tribune Co. bankruptcy case, is asking for more time to complete his report on the media company's 2007 leveraged buyout. According to The Associated Press, the report was due July 12, but Mr. Klee says witness interviews are taking more time and money than expected. Mr. Klee seeks a July 27 extension of the deadline to submit his report and said Tribune is willing to delay a hearing on its reorganization plan to accommodate him, according to The AP. The AP notes Mr. Klee is reviewing the buyout led by Sam Zell and potential claims arising from it that might be brought on behalf of the bankruptcy estate. Bondholders have sued JPMorgan Chase and other banks that financed the buyout, saying they knew the resulting debt load would leave Tribune insolvent. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-13141). Sidley Austin LLP serves as the Debtor's bankruptcy 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) TRUMP ENTERTAINMENT: Chapter 11 Examiner to Quit ------------------------------------------------ Bankruptcy Law360 reports that the Chapter 11 examiner overseeing the bankruptcy proceedings of Trump Entertainment Resorts Inc. is asking to be relieved of his duties in the case, despite an ongoing appeal by billionaire investor Carl Icahn over the casino Company's reorganization plan. Based in Atlantic City, New Jersey, Trump Entertainment Resorts Inc. (NASDAQ: TRMP) -- http://www.trumpcasinos.com/-- owns and operates three casino hotel properties in Atlantic City, New Jersey, which include Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino. The Company conducts gaming activities and provides customers with casino resort and entertainment. Donald Trump is a shareholder of the Company and, as its non- executive Chairman, is not involved in the daily operations of the Company. The Company is separate and distinct from Mr. Trump's privately held real estate and other holdings. Trump Entertainment Resorts, TCI 2 Holdings, LLC, and other affiliates filed for Chapter 11 on February 17, 2009 (Bankr. D. N.J., Lead Case No. 09-13654). The Company has tapped Charles A. Stanziale, Jr., Esq., at McCarter & English, LLP, as lead counsel, and Weil Gotshal & Manges as co-counsel. Ernst & Young LLP is the Company's auditor and accountant and Lazard Freres & Co. LLC is the financial advisor. Garden City Group is the claims agent. The Company disclosed assets of $2,055,555,000 and debts of $1,737,726,000 as of December 31, 2008. Trump Hotels & Casino Resorts, Inc., filed for Chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J. Case No. 04-46898 through 04-46925). Trump Hotels' obtained the Court's confirmation of its Chapter 11 plan on April 5, 2005, and in May 2005, it exited from bankruptcy under the name Trump Entertainment Resorts Inc. US AIRWAYS: F. Holcombe Insists on Reserve for Claim ---------------------------------------------------- Reorgnized US Airways II asks the U.S. Bankruptcy Court for the Eastern District of Virginia to dismiss any claims asserted by Fougere Holcombe as a result of the remand on her appeal from the Fourth Circuit. Ms. Holcombe filed Claim No. 3018 in the Reorganized Debtors' second bankruptcy case for $60,475,000. As the result of a compromise, the Reorganized Debtors reserved $2.3 million solely for the purpose of establishing a distribution reserve of stock for disputed claims in accordance with the terms of the Plan and the Court's December 20, 2005 order establishing distribution reserves. The Reorganized Debtors objected to Claim No. 3018 and filed a motion for summary judgment seeking the disallowance of the Claim. In response to the dimissal request, Ms. Holcombe contends that all of these allegations are false and misleading. She asserts that the Debtors wilfully and materially defaulted in implementing the Plan and the Order of the Court, which set the distribution reserve for her Claim No. 3018. According to Ms. Holcombe, it is undisputed that on December 19, 2005, the Court established the Distribution Reserve in the amount of $950,000 with respect to her Claim No. 3018. Thus, she notes, her Claim No. 3018 became a "Distribution Reserve Claim." On March 22, 2006, by Stipulation and Order, the Distribution Reserve Amount for Claim No. 3018 was increased from $950,000 to $2.3 million solely for the purpose of establishing a distribution reserve in accordance with the Distribution Reserve Order. As was stipulated, all other terms and provisions of the December 19, 2005 Distribution Reserve Order remained in effect. Ms. Holcombe notes, among other things, that these terms and conditions of the December 19 Order included: "The Reorganized Debtors are further granted the authority to adjust the Distribution Reserve, without further order of the Court, when and as each Distribution Reserve Claim is resolved by stipulation or final order." Ms. Holcombe avers that nothing in the December 19, 2005 Order, however, suggests that US Airways or their agent may begin disbursing her distribution reserve without providing a proper notice to the creditor whose right to the Distribution Reserve is affected. Ms. Holcombe maintains that there was no stipulation and no final or ultimate determination of her Distribution Reserve Claim. In respect of the Debtors' assertion that Ms. Holcombe's Distribution Reserve Claim was disbursed, Ms. Holcombe demands full accounting in connection with that distribution. Thus, Ms. Holcombe asks the Court to: (i) direct the Reorganized Debtors to produce full accounting with respect to disbursement of her Distribution Reserve Claim No. 3018; (ii) deny the Reorganized Debtor's motion to dismiss remand; (iii) reinstate the Distribution Reserve for her Claim No. 3018 by disgorging Defendant attorneys' fees; (iv) set aside the Judgment dated April 2, 2007, wherein the Bankruptcy Court disallowed Ms. Holcombe's claim and granted US Airways' motion for summary judgment; and (v) stay any further proceedings with respect to her claim and the Debtor's objections until the District Court adjudicates Ms. Holcombe's Motion to Withdraw the Reference and transfer. About US Airways US Airways -- http://www.usairways.com/-- along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves more than 190 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another Chapter 11 petition on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represented the Debtors in their restructuring efforts. The USAir II bankruptcy plan became effective on September 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As of December 31, 2009, US Airways had total assets of $7,454,000,000, including $2,331,000,000 in total current assets, against total current liabilities of $2,789,000,000 and total noncurrent liabilities and deferred credits of $5,020,000,000, resulting in $355,000,000 stockholders' deficit. US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp. family rating and probability of default rating. Outlook is negative. US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer Credit rating and LT Local Issuer credit rating. Outlook is also negative. US Airways Group carries Fitch's "CCC" LT Issuer default rating and "C" Senior unsecured debt rating. Outlook is also negative. US AIRWAYS: Judge Hilton Remands Holcombe Case to Bankruptcy Court ------------------------------------------------------------------ Judge Claude M. Hilton of the U.S. District Court for the Eastern District of Virginia remanded to the U.S. Bankruptcy Court for the Eastern District of Virginia a civil action entitled Fougere Holcombe v. U.S. Airways, Inc., for consideration in light of the decision issued by the Court of Appeals. The Court of Appeals, on March 5, 2010, entered its judgment, according to which the previous decision in the matter was affirmed in part, reversed in part and remanded to the District Court for further proceedings. Ms. Holcombe had appealed to the U.S. District Court for the Eastern District of Virginia regarding Judge Stephen S. Mitchell's findings and conclusions which resulted to the disallowance of her Claim No. 3018 for $60,475,000. The District Court affirmed the Bankruptcy Court's order granting the Debtors' request to disallow Ms. Holcombe's Claim No. 3018. Ms. Holcombe then appealed to the Fourth Circuit, which entered an unpublished opinion and order on March 5, 2010. About US Airways US Airways -- http://www.usairways.com/-- along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves more than 190 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another Chapter 11 petition on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represented the Debtors in their restructuring efforts. The USAir II bankruptcy plan became effective on September 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As of December 31, 2009, US Airways had total assets of $7,454,000,000, including $2,331,000,000 in total current assets, against total current liabilities of $2,789,000,000 and total noncurrent liabilities and deferred credits of $5,020,000,000, resulting in $355,000,000 stockholders' deficit. US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp. family rating and probability of default rating. Outlook is negative. US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer Credit rating and LT Local Issuer credit rating. Outlook is also negative. US Airways Group carries Fitch's "CCC" LT Issuer default rating and "C" Senior unsecured debt rating. Outlook is also negative. US AIRWAYS: Stockholders Elect Board Members at Annual Meeting -------------------------------------------------------------- US Airways Group, Inc., held its 2010 Annual Meeting of Stockholders on June 10, 2010, at which these matters were submitted to a vote of stockholders: 1. To elect three directors in Class II to serve until the 2013 Annual Meeting of Stockholders; 2. To ratify the appointment of KPMG LLP as the independent registered public accounting firm of the Company for the fiscal year ending December 31, 2010; and 3. To vote upon a stockholder proposal relating to cumulative voting. In an 8-k filing with the Securities and Exchange Commission dated June 11, 2010, US Airways Group, Inc. Executive Vice President - Corporate Stephen L. Johnson disclosed that at the meeting, the stockholders voted to re-elect Denise M. O'Leary, George M. Philip and J. Steven Whisler to serve on the Board of Directors until the 2013 Annual Meeting of Stockholders. In addition, the stockholders voted to ratify the appointment of KPMG LLP as the independent registered accounting firm of the Company for the fiscal year ended December 31, 2010. Stockholders voted against a stockholder proposal relating to cumulative voting. About US Airways US Airways -- http://www.usairways.com/-- along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves more than 190 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another Chapter 11 petition on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represented the Debtors in their restructuring efforts. The USAir II bankruptcy plan became effective on September 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As of December 31, 2009, US Airways had total assets of $7,454,000,000, including $2,331,000,000 in total current assets, against total current liabilities of $2,789,000,000 and total noncurrent liabilities and deferred credits of $5,020,000,000, resulting in $355,000,000 stockholders' deficit. US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp. family rating and probability of default rating. Outlook is negative. US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer Credit rating and LT Local Issuer credit rating. Outlook is also negative. US Airways Group carries Fitch's "CCC" LT Issuer default rating and "C" Senior unsecured debt rating. Outlook is also negative. USEC INC: Files 2009 Annual Report for Savings Program ------------------------------------------------------ USEC Inc. filed with the Securities and Exchange Commission an annual report on Form 11-K for the USEC Savings Program for the fiscal year ended December 31, 2009. As of December 31, 2009, Net assets available for benefits total $305,843. A full-text copy of the Form 11-K Annual Report is available at no charge at http://ResearchArchives.com/t/s?6554 About USEC Inc. Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) -- http://www.usec.com/-- a global energy company, is a supplier of enriched uranium fuel for commercial nuclear power plants. The Company's balance sheet at March 31, 2010, showed $3.4 billion in total assets, $1.0 billion in total current liabilities, $575.0 million in long term debt, and $556.1 million other long- term liabilities, for a stockholder's equity of $1.2 billion. * * * According to the Troubled Company Reporter on Dec. 30, 2009, USEC Inc. has a revolving credit that matures in August and a corporate rating from Standard & Poor's that recently declined one click to CCC+, matching the action taken on Dec. 18 by Moody's Investors Service. The Troubled Company Reporter on May 28, 2010, reported that Standard & Poor's Ratings Services said that its rating and outlook on USEC Inc. (CCC+/Developing/--) are not affected by the announcement that Toshiba Corp. and Babcock & Wilcox Investment Co., an affiliate of The Babcock & Wilcox Co., have signed a definitive investment agreement for $200 million with USEC. VEBLEN WEST: Gets Final OK to Access AgStar's Cash Collateral ------------------------------------------------------------- The Hon. Charles l. Nail, Jr., of the U.S. Bankruptcy Court for the District of South Dakota authorized, on a final basis, Veblen West Dairy LLP, to use AgStar Financial Service, PCA and AgStar Financial Services, FLCA's cash collateral. The Debtor would use the money to fund its Chapter 11 case, pay suppliers and other parties. As adequate protection for the use of cash collateral, the Debtor will: (i) provide interest-only payments on AgStar's existing loans on a monthly basis; (ii) grant AgStar replacement liens on all after-acquired collateral; and (iii) to operate its business to maximize the value of AgStar's collateral. About Veblen West Dairy Veblen West Dairy LLP, based in Veblen, South Dakota, filed a petition April 7 seeking protection under Chapter 11 (Bankr. D. S.D. Case No. 10-10071). Veblen West listed assets and debts of $10 million to $50 million. VISTEON CORP: UBS AG & Goldman Sachs Report Equity Stake -------------------------------------------------------- UBS AG disclosed that as of June 13, 2010, it may be deemed to beneficially own 160,817 shares or roughly 0.12% of the common stock of Visteon Corporation. Goldman Sachs & Co. disclosed that as of June 18, 2010, it may be deemed to have beneficially owned directly an aggregate of 5,079,455 shares of Visteon Common Stock acquired in ordinary course trading activities by Goldman Sachs, representing in the aggregate 3.90% of the shares of Common Stock reported to be outstanding as of April 26, 2010. As of June 18, 2010, The Goldman Sachs Group may be deemed to have beneficially owned indirectly an aggregate of 5,079,455 shares of Common Stock beneficially owned directly by Goldman Sachs, representing in the aggregate approximately 3.90% of the shares of Common Stock reported to be outstanding. About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The Company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) VYTERIS INC: Re-Elects Eight to Board of Directors -------------------------------------------------- Vyteris Inc. recently held an annual meeting of shareholders. At the annual meeting, shareholders voted for the reelection of each of the eight current directors: * Eugene Bauer * John Burrows * Arthur Courbanou * David DiGiacinto * Susan Guerin * Haro Hartounian * Joel Kanter * Russell Potts Based in Fair Lawn, New Jersey, Vyteris, Inc. (formerly Vyteris Holdings (Nevada), Inc., has developed and produced the first FDA- approved electronically controlled transdermal drug delivery system that transports drugs through the skin comfortably, without needles. This platform technology can be used to administer a wide variety of therapeutics either directly into the skin or into the bloodstream. The Company holds approximately 50 U.S. and 70 foreign patents relating to the delivery of drugs across the skin using an electronically controlled "smart patch" device with electric current. At March 31, 2010, the Company had total assets of $3,551,507 against total liabilities of $13,033,654, resulting in stockholders' deficit of $9,482,147. The March 31, 2010 balance sheet showed strained liquidity: The Company had total current assets of $1,816,956 against total current liabilities of $9,984,423. WASHINGTON MUTUAL: Objects to $5 Billion Putative Class Claim ------------------------------------------------------------- In March 2009, representative plaintiffs in a putative class action styled In re Payment Card Interchange Fee and Merchant- Discount Antitrust Litigation, litigated in the Eastern District of New York, filed Claim No. 2812 for "$5,064,200,000 . . . plus attorneys fees and costs of suit awarded in the [Visa Antitrust Action]." Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Visa Antitrust Action consolidates 36 individual cases proceeding in the Eastern District of New York on October 20, 2005. A consolidated amended Class Action complaint was filed on April 24, 2006, against Visa USA, Inc., Visa International Service Association, and Visa, Inc., and MasterCard International Incorporated, among other Bank defendants that include Washington Mutual Bank and Washington Mutual, Inc. The purported basis for Claim No. 2812 is alleged monetary damages sustained by the Representative Plaintiffs and Class Members on account of antitrust law violations by Debtor and other defendants in the Action by conspiring with Visa and Mastercard to establish and enforce network rules pertaining to transactions that (i) require the payment of default interchange, and (ii) prevent merchants from steering customers at the point of sale away from all or some Visa or MasterCard branded cards. Mr. Collins argues that all the allegations in the Complaint are "unrelated" to WaMu, which is a former savings and loan holding company that owned the shares of various subsidiaries. As a holding company, WaMu did not engage in any banking activities, was not involved in the day-to-day banking activities of WMB, and did not play any role in the issuance of Visa and/or MasterCard cards or the imposition or collection of the interchange fees at issue in the Complaint, Mr. Collins clarifies. WMB was an Issuing Bank, which assets -- including debit and credit card business, and certain liabilities -- were purchased on September 25, 2008 by JPMorgan Chase Bank, N.A. Mr. Collins makes clear that WaMu did not participate in WMB's businesses. "WMB, not WaMu, was the signatories to the Original MasterCard Agreement and the Restated MasterCard Agreement, and any assets of WMB were passed on to [JPMorgan] as part of the Purchase and Assumption Agreement. As a result, [WaMu] cannot be liable for any claims or liabilities related to MasterCard-branded debit or credit cards, including the liability, if any, to the issuance and collection of any interchange fees. Accordingly, all monetary liability allegedly resulting from MasterCard interchange fees asserted in Claim No. 2812, if any, are not potential liabilities of [WaMu]," WaMu Senior Vice President and Deputy General Counsel Colleen M. Martin avers in a declaration filed with the Court. In addition, the Claimants' allegations of post-initial public offering and intra-network horizontal conspiracies are "based on nothing more than a series of vertical agreements between a network and an individual bank under which the participating banks allegedly agreed to "abide by" the rules of the networks, Ms. Martin says. The Plaintiffs have alleged no evidence showing that WaMu Inc. directly and independently participated in the alleged conspiracy, Ms. Martin contends. Hence, Claim No. 2812 should be dismissed for substantive antitrust reasons, she says. Ms. Martin notes that a second Consolidated Amended Class Action Complaint was filed when the automatic stay imposed by WaMu's Chapter 11 cases was already in place. Thus, the Visa Antitrust Action is currently proceeding against the other defendants, but not against WaMu, she clarifies. Ms. Martin adds, "While my understanding is that [WaMu] has no potential liability under Claim No. 2812, the maximum potential liability, if any, that could be attributed to [WaMu] must, at minimum, be reduced by the amount of liability relating to WMB's MasterCard-branded credit and debit cards, or $2,162,000,000, and, thereto, cannot, under any circumstances, be higher than $2,902,220,000." JPMorgan Reacts The Debtors mischaracterize the obligations and liabilities that JPMorgan acquired pursuant to the September 25, 2008 Purchase and Assumption Agreement entered into between the Federal Deposit Insurance Corporation, in its capacity as receiver of WMB, and JPMorgan, argues Adam G. Landis, Esq., at Landis Roth & Cobb LLP, in Wilmington, Delaware. Mr. Landis elaborates that by the express terms of the P&A Agreement, JPMorgan agreed to honor and perform all duties and obligations related to WMB's debit and credit business from and after September 25, 2008 -- but not any duties and obligations for action or inaction of WMB that occurred before that date, other than liabilities expressly assumed under the P&A Agreement and further subject to JPMorgan's indemnification rights. The Debtors' assertion that JPMorgan assumed anything more than what is provided for by the terms of the P&A Agreement should be rejected, Mr. Landis asserts. 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). WASHINGTON MUTUAL: Objects to Idaho's $1.6 Million Claim -------------------------------------------------------- Prior to the Petition Date, Washington Mutual Inc. and certain of its subsidiaries filed unitary combined income tax returns as a result of business activities they conducted within the Idaho State Tax Commission. WaMu, itself, did not have a physical or taxable presence in Idaho during the tax periods from year 2003 to 2005. The Idaho STC, on February 17, 2009, filed Claim No. 2281, seeking payment of taxes and penalties in these amounts: Taxable Year Tax Amount Interest Total ------------ ---------- -------- ---------- 2003 $1,334,804 $339,609 $1,674,413 2004 508,528 98,721 607,249 2005 359,458 48,274 407,732 Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Idaho STC had not completed an audit of the Taxes and Interest. The Idaho Claim acknowledges, however, that credits are owed with respect to taxable years 2000, 2002, and 2007 in the aggregate amount of $1,016,521. Pursuant to its Claim, the Idaho STC seeks payment of the Taxes and Interest, less the Credits, in the aggregate amount of $1,672,873. The Idaho Claim seeks payment for taxes and interest assessed against entities other than the Debtors and accordingly, should be disallowed, Mr. Collins contends. Under Idaho law, corporations transacting business in Idaho must calculate their tax liability on a combined basis. However, a corporation is only liable for its apportioned share of combined business income. The liabilities asserted by the Idaho Claim are solely attributable to the activities of entities other than WaMu in Idaho, Mr. Collins asserts. WaMu, he says, has never had a taxable presence in Idaho and as a result, WaMu's apportioned share of business income from Idaho is zero. Because WaMu is not liable for the liabilities asserted in the Idaho Claim, the Debtors object to its allowance. The Debtors contend that based on the mentioned adjustments, the Credits owed by the Idaho STC will likely exceed any tax obligations on account of the Combined Tax Returns. Nevertheless, even if the Idaho STC were to reach a final determination that Taxes and Interest are due based on the combined tax returns, the liability asserted by the Claim would not be an obligation of WaMu and should be disallowed, Mr. Collins tells Judge Walrath. 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). WASHINGTON MUTUAL: Susman Godfrey Now Counsel to Equity Panel ------------------------------------------------------------- In a notice filed with the Bankruptcy Court, the Official Committee of Equity Security Holders of Washington Mutual, Inc., informed Judge Walrath that the law firm of Dewey LeBoeuf LLP has withdrawn its appearance as counsel for the Equity Committee. Accordingly, all notices and pleadings in the Debtors' cases with respect to the Equity Committee should be served upon: Stephen D. Susman Seth D. Ard Susman Godfrey, L.L.P 654 Madison Avenue, 5th Floor New York, NY 10065 Telephone: (212) 336-8330 Facsimile: (212) 336-8340 E-mail: ssusman@susmangodfrey.com sard@Susmangodfrey.com Parker C. Folse, III Edgar Sargent Justin A. Nelson Susman Godfrey, L.L.P 1201 Third Ave., Suite 3800 Seattle, W A 98101 Telephone: (206) 516-3880 Facsimile: (206) 516-3883 E-mail: pfolse@susmangodfrey.com esargent@susmangodfrey.com jnelson@Susmangodfrey.com 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). WEINSTEIN CO: Goldman Sachs to Own Films in Restructuring Deal -------------------------------------------------------------- The Wall Street Journal's Lauren A.E. Schuker and Serena Ng report that The Weinstein Co. has agreed to a major debt restructuring that gives Goldman Sachs Group and an insurance company possession of more than 200 films in its library. Goldman Sachs and Assured Guaranty Ltd., which insured some of the company's debt, will now own as many as 250 Weinstein films as well as a small portion of the Weinstein Co.'s future projects. The Journal says the restructuring was finalized by the companies Wednesday and is designed to allow Weinstein Co. to continue as a going concern and resolve the financial struggles that beset the studio shortly after it opened in 2005. Brothers Harvey and Bob Weinstein established the company after leaving Miramax, their previous independent film studio which they had sold to the Walt Disney Co. in 1993. The brothers raised roughly $1.2 billion with the help of Goldman Sachs to launch the venture. About $500 million of that total was securitized debt and much of the remainder was equity. Ambac Assurance. Corp. insured the $500 million loan. Weinstein produced a string of movies that flopped at the box office and made investments in several businesses including social media and clothing that struggled. About five years later, the company spent most of the $1.2 billion that was raised and had little to show for it other than the film library and success of Quentin Tarantino's "Inglourious Basterds." The Journal relates the restructuring comes the same day as a state court hearing that involved bond insurer Ambac Assurance Corp., which has run into its own financial problems. In the Wednesday hearing, the Journal continues, a Wisconsin county court approved a settlement proposal from Ambac, which is undergoing it own restructuring. The proposed settlement would release Ambac from insuring the Weinstein Co.'s debt in exchange for paying debtholders a total of $115 million in cash and notes. According to the Journal, Goldman Sachs has agreed to subtract that $115 million from the Weinstein Co.'s total outstanding debt of $450 million. That reduces the Weinstein Co.'s debt to $335 million. Since 2006, according to the Ambac filing, the Weinstein Co. failed to meet its financial commitments several times. Over the past year, the two firms attempted to hammer out a new arrangement. Talks broke down and ended in March 2010. Last summer, the studio hired Miller Buckfire, who helped convince Ambac to waive some bond covenants, which gave the Weinstein Co. some breathing room. The Journal relates the new plan, put together with the help of Wall Street lawyer H. Rodgin Cohen, Esq., stands to give the studio a fresh start. If it can pay off the $335 million through film library revenue, it will emerge debt-free and be able to reclaim ownership of those 250 movies. "This restructuring will not only help the Weinstein Company become hugely solvent," says veteran Hollywood attorney Bertram Fields, Esq., who is representing the Weinstein Co., "but it also puts the company in a good position to achieve its goals." WORLDSPACE INC: Sale to Yazmi USA Completed ------------------------------------------- WorldSpace, Inc. disclosed that it and its affiliated co-debtors in its Chapter 11 bankruptcy proceeding have closed the Asset Purchase Agreement entered into with Yazmi USA, LLC (the Buyer), subject to continuing some operations under contract with the Buyer for a transition period. The agreement provided for the sale of substantially all the assets of WorldSpace and its co- debtors. About WorldSpace Inc. WorldSpace, Inc. (WRSPQ.PK) -- http://www.1worldspace.com/-- provides satellite-based radio and data broadcasting services to paying subscribers in 10 countries throughout Europe, India, the Middle East, and Africa. 1worldspace(TM) satellites cover two- thirds of the earth and enable the Company to offer a wide range of services for enterprises and governments globally, including distance learning, alert delivery, data delivery, and disaster readiness and response systems. 1worldspace(TM) is a pioneer of satellite-based digital radio services. The Debtors and their affiliates operate two geostationary satellites, AfriStar and Asia Star, which are in orbit over Africa and Asia. The Debtor and two of its affiliates filed for Chapter 11 bankruptcy protection on October 17, 2008 (Bankr. D. Del., Case No. 08-12412 - 08-12414). James E. O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors as counsel. Kurtzman Carson Consultants serves as claims and notice agent. Neil Raymond Lapinski, Esq., and Rafael Xavier Zahralddin-Aravena, Esq., at Elliot Greenleaf, represent the Official Committee of Unsecured Creditors. When the Debtors filed for bankruptcy, they listed total assets of $307,382,000 and total debts of $2,122,904,000. YOUNG BROADCASTING: Ownership Transitioned to a Shareholder Group ----------------------------------------------------------------- Young Broadcasting has transitioned from the shareholders of the publicly traded company to a shareholder group comprised of the former senior lenders of Young Broadcasting. Having shed nearly $800 million in debt and millions of dollars of burdensome contracts through the bankruptcy process, New Young Broadcasting is emerging from bankruptcy as the most financially sound company in television broadcasting. About Young Broadcasting Headquartered in New York City, Young Broadcasting, Inc. -- http://www.youngbroadcasting.com/-- owns 10 television stations and the national television representation firm, Adam Young, Inc. Five stations are affiliated with the ABC Television Network (WKRN-TV - Nashville, TN, WTEN-TV - Albany, NY, WRIC-TV - Richmond, VA, WATE-TV - Knoxville, TN, and WBAY-TV - Green Bay, WI), three are affiliated with the CBS Television Network (WLNS-TV - Lansing, MI, KLFY-TV - Lafayette, LA and KELO-TV - Sioux Falls, SD), one is affiliated with the NBC Television Network (KWQC-TV - Davenport, IA) and one is affiliated with MyNetwork (KRON-TV - San Francisco, CA). The Company and its affiliates filed for Chapter 11 protection on February 13, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-10645). Jo Christine Reed, Esq., at Sonnenschein Nath & Rosenthal LLP, represents the Debtors in their restructuring effort. The Debtors selected UBS Securities LLC as consultant; Ernst & Young LLP as accountant; Epiq Bankruptcy Solutions LLC as claims agent; and David Pauker chief restructuring officer Andrew N. Rosenberg, Esq., at Paul Weiss Rifkind Wharton & Harrison LLP, serves as counsel to the official unsecured creditors committee. * California Lawmakers Considers Bill on Defaulting Mortgages ------------------------------------------------------------- American Bankruptcy Institute reports that state legislators in California are considering a bill that would redefine the obligations of many defaulting homeowners. * Public Company Filings Trail 2009 in Amount, Number ----------------------------------------------------- Fifty public companies filed for bankruptcy reorganization or liquidation this year through June 20, compared with 118 in the same period last year, Bill Rochelle at Bloomberg News reported, citing data from BankruptcyData.com. According to BankruptcyData, assets of the public companies filing in Chapters 7 or 11 so far this year totaled $45 billion, 12% of the $376 billion of assets in bankrupt companies filing in the same period of 2009. BankruptcyData said the peak public-company filings in dollar amount of assets was $1.16 trillion in 2008. In number of public company filings over the last 10 years, the leader was 2001 with 263 filings. * BOOK REVIEW: The Executive Guide to Corporate Bankruptcy ---------------------------------------------------------- Authors: Thomas J. Salerno; Craig D. Hansen; Jordan A. Kroop Publisher: Beard Books Hardcover: 728 pages List Price: $174.95 The newly revised edition of The Executive Guide To Corporate Bankruptcy is perfectly timed. As the global economy continues to deteriorate, more and more companies are sinking into insolvency with executives at their helm who need a crash course in bankruptcy realities. This excellent book will quickly get both the seasoned executive and the uninitiated lawyer up to speed on the bankruptcy process. Salerno, Kroop and Hansen understand that the reorganization process can be intimidating, puzzling, and generally unpleasant. They penetrate the opaque gloom that some lawyers tend to perpetuate. Each chapter of this book addresses a different aspect of the reorganization process, beginning with an overview of the origins and purpose of US bankruptcy laws and ending with a debunking of common myths about reorganization. In between, they discuss each chapter of the bankruptcy code; discussing the gamut from liquidations through Chapter 11 sales and full-blown reorganizations. The authors' ability to distill the bankruptcy code's complex language into comprehensible and manageable blocks of information makes the book extremely readable. The Executive Guide is full of pragmatic advice. After laying out the essential elements and key players in the restructuring process, the authors get down to the nitty gritty of navigating a distressed company through reorganization. They realistically assess the challenges that an executive should expect to face in Chapter 11. They discuss how to assuage and balance the concerns of employees and key vendors, address the inevitable creditor dissatisfaction with executive compensation, deal with members of their professional team and work effectively as an executive whose actions will be constantly scrutinized and second-guessed. The authors also provide the cautionary note that "executives preparing to embark on a reorganization are usually too preoccupied with business emergencies to think about the personal toll that the process will exact." One common flaw in books that try to be accessible while dealing with technical topics is that they fall short in providing the reader with a substantive understanding of the subject matter. The Executive Guide to Corporate Bankruptcy avoids this pitfall. The book's fourth and fifth chapters provide in-depth analysis of the strategic decisions and steps that should be taken during the restructuring process. The authors explain the importance that venue can have a case, the intricacies of first day motions and how to prepare for confirmation. There is a detailed discussion of the sale of assets during the course of a Chapter 11 restructuring and the importance of making sure that major constituencies are a part of the decision-making process. They also walk the reader through the specifics of a plan of a reorganization, explaining the dynamics of the negotiation process, especially how to understand and appreciate the needs of your constituents and how to get a plan confirmed. The icing on the cake for this book is the excellent appendix. The final section of the book includes a user-friendly glossary of commonly used bankruptcy terms and a reorganization timeline. It also includes sample documents such as debtor-in-possession (DIP) financing agreements, operating reports, first day motions and orders, management severance agreements, and more. The summary of management incentive stock plans implemented in recent restructuring transactions is particularly informative. This is a terrific book. While geared to the non-lawyer executive, it will also be a useful resource for any lawyer who wants to gain practical familiarity with the bankruptcy process. This should be a best seller in today's environment, though it may need to be delivered to most executives in a brown paper wrapper. ********* 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 ***