/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100630.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, June 30, 2010, Vol. 14, No. 179 Headlines 5TH AVENUE PARTNERS: Ch. 11 Filing Stops WestLB Receivership Bid 5TH AVENUE PARTNERS: Case Summary & 19 Largest Unsecured Creditors ABITIBIBOWATER INC: $180,000 in Claims Change Hands April-May ABITIBIBOWATER INC: BCFC Hires APS as Special Advisor ABITIBIBOWATER INC: Proposes Jones Day as Conflicts Counsel ADVANCED MEDICAL: Posts $4.2MM Net Loss in Q2 Ended December 31 AES CORPORATION: Fitch Affirms Issuer Default Rating at 'B+' AFFINIA GROUP: Moody's Gives Stable Outlook; Affirms 'B2' Rating ALTAYA VENTURES: Voluntary Chapter 11 Case Summary AMBRILIA BIOPHARMA: Appoints Faraj Nakhleh to Board of Directors AMERICAN CAPITAL: Now 'RD' by Fitch After 'Coercive Debt Exchange' AMERICAN CAPITAL: S&P Cuts Counterparty Credit Rating to 'SD' AMERICAN HOSPITALITY: Foreclosure Back on Track AMTRUST FINANCIAL: Objects to JDJ Reno's Arbitration Stay Bid ASHRAY CORPORATION: Case Summary & 15 Largest Unsecured Creditors ATHENS INVESTORS: Case Summary & 20 Largest Unsecured Creditors AVINCI MEDIA: Posts $255,600 Net Loss for Q1 of 2010 BAY FRONT: Case Summary & 17 Largest Unsecured Creditors BEAR ISLAND: Plan Exclusivity Extended Until October 1 BELLALILLY, LLC: Voluntary Chapter 11 Case Summary BIGLER LP: Amegy Bank Buying Most Assets With Credit Bid BIOVEST INTERNATIONAL: Names CPA Edmund King as Director BLACK GAMING: Court Confirms Amended and Final Reorganization Plan BLOCKBUSTER INC: Presents Accomplishments to Shareholders BRIDGE ASSOCIATES: Case Summary & 5 Largest Unsecured Creditors BRIER CREEK: Wants Case Dismissed to Pay Prepetition Claims BRIER CREEK: Can Use Fund X's Cash Collateral Until July 30 BRIER CREEK: Files Schedules of Assets and Liabilities CALIFORNIA COASTAL: Submits Third Iteration of Reorganization Plan CALYPTE MEDICAL: Posts $549,000 Net Loss for March 31 Quarter CANE RIDGE: Voluntary Chapter 11 Case Summary CATHOLIC CHURCH: Catholic Mutual Seeks Arbitration CC MEDIA: Mark Mays to Transition as Chairman CENTER FOR RENAL: Voluntary Chapter 11 Case Summary CHAD EICHTEN: Case Summary & 20 Largest Unsecured Creditors CHARLESTON ASSOCIATES: Meeting to Form Creditors Committee July 1 CHINO HILLS: Voluntary Chapter 11 Case Summary COLONIAL BANCGROUP: FDIC to Seek Dismissal of Tax Refund Lawsuit COOPER TIRE: S&P Raises Corporate Credit Rating to 'BB-' CRISTAL INORGANIC: Moody's Moves Outlook on 'B3' to 'Stable' DOUBLE G: Files Schedules of Assets and Liabilities DOUBLE G: U.S. Trustee Forms 6-Member Creditors Committee DOYLE HEATON: Wins Confirmation of Chapter 11 Plan DR HORTON: S&P Changes Outlook to Stable; Affirms 'BB-' Rating DUKE'S EARTH: Case Summary & 20 Largest Unsecured Creditors ENERGY PARTNERS: Completes Refinancing, Recovers Cash Collateral EROSION SERVICE: Case Summary & 20 Largest Unsecured Creditors FAIRPOINT COMMS: Vermont Regulators Reject Bankruptcy Plan FIRST INDUSTRIAL: Fitch Puts Low-B Ratings on Negative Watch FISHERMAN'S WHARF: Taps Bush Ross as General Bankruptcy Counsel FISHERMAN'S WHARF: Files Schedules of Assets and Liabilities FLYING J: Plaintiff Says Plan Improperly Releases Hot Fuel Claims FORUM HEALTH: Hearing on Sale of Assets Continued Until August 10 FRONTIER COMMS: Highlights New Wins in Commercial Business Sector FRONTIER DRILLING: Moody's Puts Junk Rating Under Review FRONTIER DRILLING: S&P Shifts Watch on 'CCC' Rating to Positive FURNITURE FACTORY: Court OKs Planned to Manage GOB Sales GARDEN WAY: Voluntary Chapter 11 Case Summary GARY MCLEAN: Ex-Wife Wants Case Dismissed or Converted to Ch. 7 GARY MCLEAN: Files Schedules of Assets and Liabilities GARY MCLEAN: Taps Lasher Holzapfel as Bankruptcy Counsel GARY MCLEAN: U.S. Trustee Unable to Form Creditors Committee GARY REYNOLDS: Case Summary & 6 Largest Unsecured Creditors GENELINK INC: March 31 Balance Sheet Upside-Down by $1 Million GENERAL MOTORS: In Talks With China to Raise SAIC Stake to 44% GENERAL MOTORS: Industry Rebounding, Says UAW President GENERAL MOTORS: Withdraws All Applications for Opel Guarantees GENTIVA HEALTH: Moody's Confirms 'Ba3' Corporate Family Rating GOOD HOME: Voluntary Chapter 11 Case Summary GREAT LAKES: Case Summary & 20 Largest Unsecured Creditors GREEKTOWN HOLDINGS: Faces Obstacles to June 30 Finish Line GREEKTOWN HOLDINGS: Noteholders Win OK for Plan Related Documents GREEKTOWN HOLDINGS: Plan Tax Effects Determination Approved HARVEY KALMENSON: Case Summary & 9 Largest Unsecured Creditors HMSC CORP: S&P Affirms 'B-' Counterparty Credit Rating INAYAT BERGUM: Case Summary & 20 Largest Unsecured Creditors INDEPENDENCE TAX: Trien Rosenberg Raises Going Concern Doubt INSIGHT COMMUNICATIONS: Moody's Pus 'B1' Corporate Family Rating INSIGHT COMMUNICATIONS: S&P Puts 'B-' Rating on $400 Mil. Notes INTERNATIONAL TOBACCO: Case Summary & 7 Largest Unsec Creditors INTERNET BUSINESS: Voluntary Chapter 11 Case Summary JEFFREY BAKER: Case Summary & 9 Largest Unsecured Creditors JERMAX INC: Case Summary & 14 Largest Unsecured Creditors JESUP & LAMONT: To Cut Staff After FINRA Halts Trading Operations JIT MANN: Case Summary & 20 Largest Unsecured Creditors KENAN ADVANTAGE: Moody's Assigns 'Ba3' Corporate Family Rating KRISPY KREME: Shareholders Elect 3 Director Nominees L3 LLC: Voluntary Chapter 11 Case Summary LEHMAN BROTHERS: Asks for Nod of Deal With Silver Lake, et al. LEHMAN BROTHERS: Has Paid $830,576,000 to Firms as of May 31 LEHMAN BROTHERS: Proposes to Transfer Servicing Rights to Aurora LEHMAN BROTHERS: Seeks to Sell New Silk Stake to Berkeley LEHMAN BROTHERS: Proposes Settlement With Heritage Fields LEHMAN BROTHERS: Wants to Enforce Stay on Greenbrier Minerals LEHMAN BROTHERS: Wants to Establish Asset Disposal Procedures LEXI DEVELOPMENT: Filing Could Result to $8MM Loss for Bank LOUISIANA SYSTEM: Voluntary Chapter 11 Case Summary MAJESTIC STAR: Court Extends Ch. 11 Plan Filing Until August 20 MALIBU ASSOCIATES: Court Extends Plan Filing Period Until Sept. 3 MARDI INVESTMENTS: Voluntary Chapter 11 Case Summary MARK BRUNELL: Personal Guarantees on Biz Loans Add to Woes MARK BRUNELL: Case Summary & 20 Largest Unsecured Creditors MARTIN CADILLAC: Files for Chapter 11 in New Jersey MARTIN CADILLAC: Case Summary & 20 Largest Unsecured Creditors MEDIA SERVICES: Voluntary Chapter 11 Case Summary MEDICAL CONNECTIONS: Posts $2.5 Million Net Loss for Q1 2010 MERIT MINING: Closes Second Tranche of $15.5MM Private Placement MOVIE GALLERY: Sales of Inventory Generate $18 Million NETWORK COMMS: Will Not Pay $9.4 Million Interest on Sr. Notes NICOLAS MARSCH: Wants Extension of Exclusive Period to File Plan NORTH GENERAL HOSPITAL: To File for Bankruptcy on Friday NORTH GLYNN: Case Summary & 5 Largest Unsecured Creditors NUTRACEA: Files Joint Plan of Reorganization With Creditors ORANGE GROVE: Files Schedules of Assets and Liabilities OSCIENT PHARMACEUTICALS: RBS Citizens Objects to Amended Plan PACIFIC ETHANOL: Ca. Superior Court Approves Settlement Agreement PACIFIC ETHANOL: Subsidiaries Exit Bankruptcy PARKSIDE PARTNERS: Case Summary & 9 Largest Unsecured Creditors PEACHTREE RESTAURANT: Files for Chapter 11 Bankruptcy Protection PERRY ELLIS: S&P Assigns 'B-' Senior Unsecured Debt Rating PLAYBOY ENTERPRISES: Downsizes Organizational Structure POWER EFFICIENCY: Closes Private Placement of Series D Stock REFCO INC: Claims Objection Deadline Extended to Dec. 7 REFCO INC: Fraud Victims Reap $135 Million From Executives REFCO INC: Litigation Trustee Makes $65MM Distribution RESIDENCE FOR RENAL: Voluntary Chapter 11 Case Summary RHYNE'S ANTIQUES: Case Summary & 6 Largest Unsecured Creditors RHYNESTONE INC: Case Summary & 3 Largest Unsecured Creditors RICHARD HOUNG: Case Summary & 4 Largest Unsecured Creditors SAC II: Files Schedules of Assets and Liabilities SECURITY BENEFIT: S&P Keeps 'BB+' Counterparty Credit Rating SOURCEGAS LLC: Moody's Affirms 'Ba2' Corporate Family Rating SOUTHERN CYPRESS: Case Summary & 20 Largest Unsecured Creditors SPECIALTY ACQUISITION: Files Schedules of Assets and Liabilities SPECIALTY TRUST: Files Schedules of Assets and Liabilities SPRINGBOK SERVICES: Section 341(a) Meeting Scheduled for July 26 SPRINGBOK SERVICES: Taps Bieging Shapiro as Bankruptcy Counsel SPRINGBOK SERVICES: Wants to Hire JAS as Restructuring Advisor SPRINGBOK SERVICES: Wants to Hire Epiq as Claims & Noticing Agent STARKEY CHEMICAL: Case Summary & 20 Largest Unsecured Creditors STERLING ESTATES: Court Fixes August 16 as Claims Bar Date STERLING ESTATES: Has Access to Wells Fargo's Cash Until July 30 STERLING ESTATES: Files Schedules of Assets and Liabilities STEVEN BATES: Case Summary & 15 Largest Unsecured Creditors STEVENSON TELO: Case Summary & 5 Largest Unsecured Creditors SUMNER REGIONAL: Sale to LifePoint Formally Approved SUNDANCE SELF-STORAGE: Case Summary & Creditors List SWIFT MASTER: Accounts Removal Won't Affect Moody's Ba3 Rating TANIA HUNTER: Case Summary & 20 Largest Unsecured Creditors TAYLOR BEAN: Committee Wants to Preserve D&O Policy TEREX CORPORATION: Moody's Affirms 'B2' Corporate Family Ratings TEXAS RANGERS: Judge Says Chapter 11 Plan May Fail TEXAS RANGERS: MLB & Creditors Must Surrender Documents TIMOTHY CREDE: Voluntary Chapter 11 Case Summary TOMAS MARTINEZ: Case Summary & 4 Largest Unsecured Creditors TWIN LAKES: Case Summary & 9 Largest Unsecured Creditors UNIVERSAL HEALTH: Fitch Assigns 'BB' Rating on Senior Facility USA COMMERCIAL: Contractor Agrees to Pay $5.5 Million to Trust VISTEON CORP: Expands Automotive Systems Manufacturing in China VISTEON CORP: Goldman, 3.90% Owner, Party to Plan Funding Deal VISTEON CORP: UBS, 0.12% Owner, Party to Plan Funding Deal WAYTRONX INC: Incurs $1.2 Million Net Loss in Q1 2010 WESTPARK PROMENADE: Case Summary & 7 Largest Unsecured Creditors WON SHIN LEE: Case Summary & 20 Largest Unsecured Creditors WORLDGATE COMMS: March 31 Balance Sheet Upside-Down by $1 Million YURI PLYAM: Precision, Castle Want Bankruptcy Case Dismissed YURI PLYAM: Section 341(a) Meeting Scheduled for July 27 * Upcoming Meetings, Conferences and Seminars ********* 5TH AVENUE PARTNERS: Ch. 11 Filing Stops WestLB Receivership Bid ---------------------------------------------------------------- 5th Avenue Partners LLC filed for Chapter 11 bankruptcy protection on Friday (Bankr. C.D. Calif. Case No. 10-18667). Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports the bankruptcy filing halted a state court hearing slated for Monday at which lender WestLB AG Bank would have sought the appointment of a receiver to take over the company's assets. The bank had sought the receivership in connection with 5th Avenue's default on about $67 million in outstanding loans, secured by substantially all of the company's assets, court papers show, according to Ms. Palank. The Debtor owns and operates the Se San Diego hotel and landlord to a House of Blues music club next door. Dow Jones notes the Se San Diego, located in San Diego's financial district, was plagued with challenges before it even opened its doors at the end of 2008. Construction on the hotel began in February 2006, and by December 2007, its general contractor found itself significantly over budget. The contractor abandoned the project in April 2008, leaving 5th Avenue to spend an extra $30 million to complete the hotel. The hotel's opening that December coincided with the collapse of the U.S. economy, 5th Avenue said, which left it in a precarious position when its construction loan from WestLB came due several months later. Tight credit markets prevented 5th Avenue from refinancing the loan, leading it to default this past March. According to Ms. Palank, 5th Avenue is seeking immediate permission to use cash collateral securing its lenders' claims and continue paying its 224 employees. 5th Avenue said, "Unless the debtor obtains immediate authorization to use cash collateral to pay all ordinary and necessary obligations, the operations of the hotel will be adversely impacted." In addition to its 184 guestrooms, the Se San Diego houses a 5,500-square-foot spa, a restaurant, rooftop bar and lounge, 20,000 square feet of banquet space and meeting rooms, an outdoor rooftop pool, fitness center and 23 unsold condominium units. Next door is a 31,000-square-foot building, which 5th Avenue owns and rents to House of Blues San Diego LLC. The two companies split all profits generated by the music club. Ms. Palank notes 5th Avenue disclosed $10 million to $50 million in assets and $50 million to $100 million in debts. Judge Erithe A. Smith of the U.S. Bankruptcy Court in Santa Ana, Calif., will oversee 5th Avenue's Chapter 11 proceeding, numbered 10-18667. 5TH AVENUE PARTNERS: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: 5th Avenue Partners, LLC 4300 Campus Drive, #214 Newport Beach, CA 92660 Bankruptcy Case No.: 10-18667 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: Marc J. Winthrop, Esq. 660 Newport Center Dr Ste 400 Newport Beach, CA 92660 Tel: (949) 720-4100 E-mail: mwinthrop@winthropcouchot.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Steven Rebeil, managing member of Diegan, LLC, the managing member of the Debtor. Debtor's List of 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Manatt Phelps & Phillips Legal services $746,721 Attn: Corporate Officer 695 Towne Ctr. Dr., 14 Fl. Costa Mesa, CA 92626 Raymond - Sam Diego Trade $569.144 Attn: Corporate Officer 520 W. Walnut Avenue Orange, CA9286 California Comfort Sys Trade $562,797 USA Attn: Corporate Officer 9750 Distribution Ave. San Diego, CA 92121 Dynalectric Company Trade $527,647 Attn: Corporate Officer 9505 Chesapeake Drive San Diego, CA 92123 Jeffrey Trott Industries Trade $227,603 Wirtz Tile & Stone Trade $223,619 Rockwell Group Trade $194,542 RW Smith Trade $171,876 Gabbard Hardware Trade $164,637 Buxcon Sheet Metal Inc. Trade $128,797 Division 8 Trade $111,522 ISEC Trade $102,871 ACE Parking Trade $97,969 Marsh Risk & Insurance Insurance $91,060 Serv MJA Advertising Trade $81,368 Westry Group, dba Sub Trade $72,573 Zero Wolf San Diego Gas & Electric Trade $72,121 Navigant Consulting Trade $71,626 GNS Management Trade $60,664 ABITIBIBOWATER INC: $180,000 in Claims Change Hands April-May ------------------------------------------------------------- The Clerk of the Bankruptcy Court recorded the transfers of these entities' claims, totaling $31,686, in the Debtors' cases for the month of April 2010: Claim Claim Transferor Transferee No. Amount ---------- --------- ----- ------ Maintenance Contrarian Funds, LLC 1004 $24,222 Insulation Co. Klenzoid ASM Capital, L.P. 80 7,464 Equipment Co. The Clerk of the Bankruptcy Court recorded the transfers of these entities' claims, totaling $152,595 in the Debtors' cases for the month of May 2010: Claim Claim Transferor Transferee No. Amount ---------- --------- ----- ------- Plum Creek Liquidity 1431 $42,202 Solutions, Inc. Hargrove Liquidity undisclosed 37,753 & Associates Solutions, Inc. Chem Station Fair Harbor undisclosed 10,120 Capital, LLC Denlinger, U.S. Debt undisclosed 9,826 Rosenthal Recovery V, LP & Greenberg Palmer & Fair Harbor 1376 8,889 Lawrence, Inc. Capital, LLC I.A.M. Lubricants Fair Harbor undisclosed 7,190 Capital, LLC ML Ball Co., Inc. Fair Harbor undisclosed 6,377 Capital, LLC Bolts & Nuts, Inc. Fair Harbor 2508 6,357 Capital, LLC Lightnin c/o Fair Harbor undisclosed 5,809 Rodgers-Turner Capital, LLC & Assoc. G&K Trucking U.S. Debt undisclosed 4,082 Recovery IV, LLC Scofield Timber Sierra Liquidity 1949 3,277 Company, Inc. Fund, LLC Scofield Timber Sierra Liquidity 27 2,338 Company, Inc. Fund, LLC Mower County Sierra Liquidity undisclosed 2,015 Fund, LLC Carotron, Inc. Sierra Liquidity 1328 1,332 Fund, LLC Carolina Rebar, Sierra Liquidity 1949 1,311 Inc. Fund, LLC Beaty Lumber Sierra Liquidity 73 983 Company Fund, LLC Leon Hills U.S. Debt undisclosed 627 Interiors, Inc. Recovery IV, LLC Pest Shield U.S. Debt undisclosed 599 Pest Control, Recovery IV, LLC Inc. Superior Sierra Liquidity 1025 425 Scale, Inc. Fund, LLC Master Scales Sierra Liquidity 1728 363 Fund, LLC About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ABITIBIBOWATER INC: BCFC Hires APS as Special Advisor ----------------------------------------------------- AbitibiBowater Inc. and its units ask the U.S. Bankruptcy Court to authorize Bowater Canada Finance Corporation to (i) employ and retain AP Services, LLC, as special advisor; and (ii) designate Lisa Donohue as vice president for Restructuring. BCFC is a wholly owned subsidiary of Bowater Incorporated organized as an unlimited liability company under Nova Scotia law. BCFC issued notes in the principal amount of $600 million pursuant to the indenture for the 7.95% notes due 2011 dated as of October 31, 2001, among BCFC as issuer, Bowater as guarantor, and the Bank of New York, as trustee. The BCFC Notes remain outstanding. BCFC is a financing vehicle with no material operations. In the event of a winding up of BCFC, it may have a wind up claim against Bowater for any amounts outstanding, as well as other potential claims, in connection with the use of proceeds from the issuance of the BCFC Notes. Resolving the Wind-Up Claim and BCFC Claims presents a potential conflict of interest between BCFC and Bowater. Accordingly, retention of a wholly independent officer to investigate the Wind Up Claim and the BCFC Claims and make recommendations to BCFC's board regarding the appropriate prosecution or settlement is warranted, to "avoid undue expense and delay with their reorganization and emergence efforts, and any appearance of impropriety," according to Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' Application to employ APS and Ms. Donohue shares the reasons behind the Debtors' previous intent to hire Togut, Segal & Segal LLP as conflicts counsel. The Debtors contend that for more than 20 years, APS and its affiliates have provided interim management and advisory services to companies experiencing financial difficulties, including the large and mid-size bankruptcy restructurings of Motors Liquidation Company, Lyondell Chemical Co., Hayes Lemmerz and Stallion Oil Field Services, among others. Similarly, Ms. Donahue has 13 years of experience in claims settlements, creditor negotiations, situational analysis, and debt restructuring for both domestic and international organizations, Mr. Greecher says. Pursuant to an engagement agreement with BCFC, APS and Ms. Donahue will, among other things: (a) review the Wind-Up Claim and the BCFC Claims, in each case with the benefit of advice from independent legal advisors; and in the case of the BCFC Claims, with the benefit of review and consideration of the report regarding the BCFC Claims of the Monitor overseeing the Companies' Creditors Arrangement Act Proceedings of AbitibiBowater's affiliates in Canada; (b) consider, and recommend to the Board of Directors, the course of action to be taken in the best interests of BCFC in connection with the Wind Up Claim and the BCFC Claims, including whether BCFC should file any proof of claim, action or proceeding on account of the Wind Up Claim or the BCFC Claims and, if so, whether and on what terms to resolve that claim, action or proceeding; (c) implement, with the assistance of independent legal advisors, any recommended course of action by the Board of Directors; (d) take action as the VP determines to be necessary or appropriate in order to properly guide and advise the Board of Directors; and (e) assist with other matters as may be requested by the Board of Directors that fall within the VP expertise and that are mutually agreeable provided, for greater certainty, that the VP's authority and powers will not include investigating or considering the filing by BCFC of any objection to the Chapter 11 Plan of Reorganization and the CCAA Plan of Compromise, as amended, the Disclosure Statement and the CCAA Information Circular filed in connection with the Plans. BCFC and Bowater propose to pay these APS professionals these standard hourly rates: Name Title Hourly Rate ---- ----- ----------- Lisa Donahue VP Restructuring $860 John Castellano Staff $760 Todd Zoha Staff $580 Christian Matthaeus Staff $470 BCFC will reimburse APS for its necessary out-of-pocket expenses. Except for Ms. Donahue, temporary staff may be replaced by other professionals at various levels, as required. BCFC and Bowater have also agreed to indemnify and hold harmless APS and its affiliates from and against any and all claims, liabilities, losses, expenses, and damages, subject to certain limitations, pursuant to an indemnification agreement. Ms. Donahue assures Judge Carey that she and APS are "disinterested" persons as that term is defined under Section 101(14) of the Bankruptcy Code. Wilmington & Noteholders Object Wilmington Trust Company, as successor indenture trustee for the 7.95% Notes due 2011 issued by Bowater Canada Finance Corporation pursuant to an indenture agreement dated as of October 31, 2001, contends that the terms of APS and Ms. Donahue's proposed Engagement Agreement "fall short of remedying the conflicts of interest between the Debtors and BCFC." Curtis S. Miller, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, tells Judge Carey that Wilmington Trust has made extensive efforts to reach a consensual resolution of the intercompany conflicts by consenting to the Debtors' selection of the APS, Ms. Donohue and the Togut Firm as BCFC's conflicts counsel so long as the Debtors reciprocate by expanding the powers of the Firms and Ms. Donohue. Unfortunately, Ms. Miller says, "the Donahue Application is misleading as to the events leading to the application and disingenuous as to whether the application would address the fundamental problem, the lack of an independent fiduciary for BCFC." While the firms chosen are qualified to perform the functions of an independent fiduciary and her counsel, the restrictions the Debtors would place on those professionals render their proposed retention pointless, if not counterproductive, Ms. Miller tells the Court. Noteholders Aurelius Capital Management, LP, and Contrarian Capital Management, LLP, for their part, point out that it is simply not credible to suggest that the officers and directors of BCFC are able to act for the benefit of BCFC in resolving the disputes with the other Debtors. "The Applications [however] do nothing to remedy this conflict," Victoria W. Counihan, Esq., at Greenberg Traurig, LLP, in Wilmington, Delaware, says. If the Applications are granted, Ms. Donahue and the Togut Firm will still report to the obviously conflicted BCFC Board, which makes the employment of Ms. Donahue and the Togut Firm meaningless, Ms. Counihan points out on behalf of the Noteholders. "The reality is that BCFC is still left without anyone to act in its interests." Debtors Respond The Noteholders have already shown that they are fully capable of protecting their financial interests as creditors in these Chapter 11 cases, the Debtors contend. Thus, their arguments with respect to the APS Application "are properly characterized as nothing more than potential future objections to confirmation of the Plan," Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, counsel to the Debtors, relates. Approval of the Employment Application will not sweep the Intercompany Conflict issues under a rug, Mr. Greecher clarifies. "Rather, the Issues will be closely and immediately researched, analyzed and evaluated by BCFC's independent fiduciary and conflicts counsel, and eventually lead to a quick and efficient resolution of the issues that will inure to all stakeholders' benefit, and will facilitate the Company's emergence from chapter 11 and CCAA Proceedings." About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ABITIBIBOWATER INC: Proposes Jones Day as Conflicts Counsel ----------------------------------------------------------- AbitibiBowater Inc. and its units ask u.s. Bankruptcy Judge Kevin Carey to allow Bowater Incorporated to employ Jones Day as their conflicts counsel, nunc pro tunc to June 2,2010. The Debtors seek the retention of Jones Day in light of an apparent intercompany conflict between Bowater and its wholly owned subsidiary, Bowater Canada Finance Corporation. Bowater organized BCFC as an unlimited liability company under Nova Scotia law. BCFC issued notes in the principal amount of $600 million pursuant to that certain indenture for the 7.95% notes due 2011 dated as of October 31, 2001 among BCFC as issuer, Bowater as guarantor, and the Bank of New York, as trustee. The BCFC Notes remain outstanding. BCFC is a financing vehicle with no material operations. Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, relates that in the event of a winding up, BCFC may have a wind up claim against Bowater pursuant to Section 135 of the Companies Act (Nova Scotia) for BCFC's liabilities, as well as other potential claims in with respect to the BCFC Notes -- which present a potential conflict of interest between BCFC and Bowater. As Bowater's conflicts counsel, Jones Day is expected to: (a) for only the matters Jones Day is handling, advise Bowater regarding its powers and duties as a debtor-in-possession; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest; (c) prepare on Bowater's behalf motions, objections, applications, adversary proceedings, answers, orders, reports and papers necessary to the matters Jones Day is handling; and (d) perform other necessary legal services as may be requested and provide other necessary legal advice to Bowater in connection with the Chapter 11 cases. Jones Day will ensure that the services it performs for Bowater will not duplicate the duties of other professionals in the Debtors' cases. Bowater proposes to pay for Jones Day's services in accordance with these hourly rates: Title Hourly Rate ----- ----------- Partners $650 to $950 Counsel $525 to $625 Associates $325 to $675 Para-professionals/Law clerks $250 to $325 The highest billing rate that will be charged by any Jones Day attorney for services rendered to Bowater will be $925 per hour. The Firm will also be reimbursed for out-of-pocket expenses. Paul D. Leake, Esq., a partner at Jones Day, in New York, assures Judge Carey that his Firm is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ADVANCED MEDICAL: Posts $4.2MM Net Loss in Q2 Ended December 31 --------------------------------------------------------------- Advanced Medical Institute Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $4.2 million on $6.4 million of revenue for the three months ended December 31, 2009, compared with net income of $386,933 on $13.2 million of revenue for the three months ended December 31, 2008. The Company's balance sheet at December 31, 2009, showed $47.5 million in assets, $31.4 million of liabilities, and $16.1 million of stockholders' equity. Kabani & Company, Inc., in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended June 30, 3009. The independent auditors noted that the Company has accumulated deficit of $7.0 million as of June 30, 2009, and a net loss of $9.3 million for the year ended June 30, 2009. The Company had an accumulated deficit of $10.5 million as of December 31, 2009. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6581 Headquartered in Sydney, NSW, Australia, Advanced Medical Institute Inc. was originally incorporated under the name of Hawksdale Financial Visions, Inc. on December 6, 1996, under the laws of the State of Nevada. The Company is a service provider company that arranges for patients with sexual dysfunction and prostate problems in Australia, New Zealand and the United Kingdom to be provided with medical services, pharmaceuticals and associated clinical support services. AES CORPORATION: Fitch Affirms Issuer Default Rating at 'B+' ------------------------------------------------------------ Fitch Ratings affirms the Issuer Default Rating of The AES Corporation at 'B+'. The Outlook is Stable. The ratings of AES reflect the diversity of subsidiary distributions, the stability of cash flows from contracted generation and distribution utilities, the high level of corporate debt, which is subordinate to its non-recourse project debt, the event risk associated with investments in developing markets, and the declining contribution from investments in mature markets, which will increase future cash flow volatility. Going forward, Fitch expects an increase in distributions from recently completed projects and projects to be completed in coming years that are currently either under development or in construction. The potential for further weakening of global economies is also a credit concern. The Stable Outlook reflects improved liquidity and operations. Liquidity has improved mainly due to the equity issuance to China Investment Corporation; consequently AES will be able to fund its capital investments with free cash flow, proceeds from the sale of projects, and cash on hand over the next several years. CIC's recent investment in AES should have a neutral to positive impact on AES' credit quality. If the cash is invested in acquisitions of developed properties that provide strong dividends in the near term, then debt leverage (as measured by parent debt relative to parent operating cash flow) will improve; conversely if the proceeds are invested in longer lead-time development, debt leverage will show limited improvement or remain the same. Fitch anticipates that debt covenant measures based on adjusted parent level cash flows will improve over the next several years as more projects currently under construction reach completion, improved operations result in higher availability of cash for distributions at the subsidiary level, and demand for electricity rises as economies grow. Fitch estimates that the ratio of Adjusted Parent Operating Cash Flow to debt, a non-GAAP financial ratio used by Fitch, will increase from estimated 18% in 2009 to approximately 20% by 2014 and interest coverage from an estimated 2.2 times in 2009 to approximately 2.4x in 2014. Debt maturities through 2014 appear manageable, but will require capital market access. Fitch's recovery valuation for AES is based on a stress case with reduced subsidiary distributions to develop a default scenario. The default case assumed that current cash balances are fully depleted and bank facilities are fully drawn. Under the recovery analysis, there is adequate asset value to maintain Recovery Ratings at 'RR1' for AES' senior secured and unsecured lenders. Instruments accorded Fitch's 'RR1' Recovery Rating has recovery prospects of over 90%. The recovery rating of the trust preferred stock, issued by AES Trust III, is 'RR4' based on the residual cash value of the assets after satisfying the claims of structurally superior debt. The 'RR4' Recovery Rating indicates there are 31%-50% recovery prospects. The Trust preferred stock rating of 'B+' is unchanged. Fitch affirms following ratings of AES Corporation with Stable Outlook: -- IDR at 'B+'; -- Short-term IDR at 'B'; -- Senior Secured at 'BB+/RR1'; -- Senior Unsecured at 'BB/RR1'. AES Trust III -- Trust Preferred at 'B+/RR4'. AFFINIA GROUP: Moody's Gives Stable Outlook; Affirms 'B2' Rating ---------------------------------------------------------------- Moody's Investors Service revised the outlook of Affinia Group Inc. to stable from negative. In a related action, Moody's affirmed all of Affinia's ratings, including: the Corporate Family and Probability of Default Ratings at B2, the senior secured note rating at B1, and the subordinated note rating at B3. The Speculative Grade Liquidity Rating also was affirmed at SGL-2. The stable outlook incorporates Moody's expectation that Affinia's operating performance over the intermediate-term will support the assigned rating as economic conditions in the U.S. stabilize. Consumer spending on automotive maintenance, which was postponed during the recent economic downturn, is expected to increase. In addition, indications of improving trends in passenger miles driven should result in additional wear and tear and drive automotive aftermarket purchases. The company's operating performance also has benefited from restructuring actions through 2009, including the company's shift to lower cost sourcing and the sale of its Quinton Hazell operations. The affirmation of the B2 Corporate Family Rating reflects the company's high leverage and interest coverage consistent with the assigned rating. While Affinia's operating performance has improved over the recent quarters, the company's end markets continue to be pressured by risks associated with high customer concentrations, a competitive pricing environment, and raw material cost pressures. The automotive aftermarket parts sector benefits from a growing number of registered vehicles. In addition, Affinia's product offerings are largely consumables such as filtration and brake products with demand generally correlated more with normal maintenance and wear requirements rather than overall economic conditions. The company's products also benefit from leading market positions. For the LTM period ending March 31, 2010, Affinia's EBIT/Interest and Debt/EBITDA (including Moody's adjustments) approximated 1.6x, and 5.2x, respectively. On June 25, 2010, Affinia Group Holdings Inc. (the ultimate parent of Affinia) filed an S-1 registration statement with the SEC to raise up to $230 million in an initial public offering of common stock. While the statement indicated that net proceeds would be used to repay certain of the company's indebtedness, details were not provided. Moody's will assess the impact on the debt structure resulting from the proposed issuance of common stock, and the resulting credit metrics and financial flexibility afforded to the company following the transaction as information becomes available. The Speculative Grade Liquidity Rating of SGL-2 reflects a good liquidity profile for the company over the next twelve months. As of March 31, 2010, the company maintained $45 million of unrestricted cash and cash equivalents. Liquidity also is supported by a $315 million asset based revolving credit facility which had $168 million of availability, subject to a borrowing base, after $100 million of borrowings and $17 million of letters of credit. The facility contains a springing fixed charge coverage covenant once availability falls below the greater of 15% of the total revolving loan commitments and $47.25 million. However, Moody's does not expect this threshold to be met over the near-term. Alternate forms of liquidity are limited as the company's credit facilities are secured by substantially all of the company's assets. Affinia's is expected to generate positive free cash flow over the next 12 months and economic conditions supporting its end markets continue to stabilize. Rating Affirmed: -- B2, Corporate Family Rating -- B2, Probability of Default -- B1 (LGD3, 36%) for the $225 million senior secured notes -- B3 (LGD5, 71%) for the $267 million subordinated notes -- B3, Senior Unsecured Issuer Rating -- Speculative Grade Liquidity Rating of SGL-2 The last rating action for Affinia was on August 25, 2009, when the B1 rating was assigned to the senior secured notes. Affinia Group Inc., headquartered in Ann Arbor, MI, is a designer, manufacturer and distributor of aftermarket components for passenger cars, sport utility vehicles, light, medium and heavy trucks and off-highway vehicles. The company's product range addresses filtration, brake and chassis markets in North and South America, Europe and Asia. In 2009, the company reported revenues of approximately $1.8 billion. ALTAYA VENTURES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Altaya Ventures, Inc. P.O. Box 61237 Palo Alto, CA 94306 Bankruptcy Case No.: 10-56588 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Arthur S. Weissbrodt Debtor's Counsel: Charles B. Greene, Esq. Law Offices of Charles B. Greene 84 W Santa Clara Street #770 San Jose, CA 95113 Tel: (408) 279-3518 E-mail: cbgattyecf@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 The Debtor did not file a list of creditors together with its petition. The petition was signed by Joelle Osias, president. AMBRILIA BIOPHARMA: Appoints Faraj Nakhleh to Board of Directors ---------------------------------------------------------------- Ambrilia Biopharma Inc. has appointed of Faraj Nakhleh, Eng., ICD,.D, to its Board of Directors, effective immediately. Mr. Frederic Porte, the Chairman of the Board of Ambrilia stated: "I am very happy to welcome Mr. Faraj Nakhleh as an independent member of the Board of Ambrilia. Faraj is an experienced senior executive and company director who knows Ambrilia very well, since for more than six years he acted as an observer of the Board representing Investissement Quebec". About Faraj Nakhleh Mr. Nakhleh is currently President & CEO of TrakMaps, a best-in- class designer, developer, producer and vendor of Cartography and GIS Products. He holds a bachelor's degree in Electrical Engineering from Robert College, has completed the course requirements for M. Eng. in Electrical Engineering at McGill University and has a Diploma in Strategic Marketing from the Harvard Business School. He has completed the Directors' Education Program on Corporate Governance at McGill University, in partnership with the Institute of Corporate Directors and earned the Director's Certification in 2007. Ambrilia has been operating under the protection of the Companies' Creditors Arrangement Act (Canada) ("CCAA") since July 31, 2009. Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia proceedings under the CCAA. About Ambrilia Biopharma Ambrilia Biopharma Inc. is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office is located in Montreal. The Company is currently subject to court protection under the CCAA. AMERICAN CAPITAL: Now 'RD' by Fitch After 'Coercive Debt Exchange' ----------------------------------------------------------------- Fitch Ratings has downgraded American Capital, Ltd.'s Issuer Default and senior unsecured debt ratings to 'RD' following ACAS' completed exchange of its unsecured public and private debt. Fitch views this development as a coercive debt exchange given the explicit bankruptcy threat had the exchange not been approved by bondholders. The exchange offer is part of a comprehensive restructuring of ACAS' unsecured indebtedness and is intended to address non- compliance with certain financial covenants and defaults relating to unsecured debt. A rating of 'RD' indicates an issuer has experienced an uncured payment default on a material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased business. The debt exchange and restructure terms include issuance of new notes and loans totaling $1.3 billion, a pledge of substantially all of ACAS' assets as collateral, an up-front principal payment of just over $1 billion and subsequent amortization payments totaling $690 million and revision of financial covenants and various maturity dates to Dec. 31, 2013. Based on the terms of the transaction and the evaluation of the prospects of ACAS post-restructure, Fitch assigns these ratings to ACAS: -- IDR 'B+'; -- Senior Secured debt 'BB/RR2'. -- Senior Unsecured Debt 'B-'/RR6' The Rating Outlook is Stable. A major rating factor is ACAS' limited access to capital markets and ability to raise equity capital. Currently, liquidity is largely generated via interest and dividend income, principal repayment of debt investments and sale of portfolio investments. The rating also implicitly reflects a potential need to sell portfolio assets to meet future debt amortization payments. Furthermore, given the limited access to capital and higher funding costs, Fitch thinks ACAS' strategic position within the sector remains relatively weak this point in time. Asset coverage equalled 1.63 times at March 31, 2010. Due to repayment and via the continued amortization of debt, the company will likely marginally satisfy the coverage requirement sometime this year unless asset values deteriorate. Fitch expects asset coverage will continue to benefit from the gradual amortization of overall debt. However, absent further equity issuance or a significant increase in portfolio's fair market value, the company's ability to issue incremental new debt will likely be fairly limited over the next year. Furthermore, as a BDC, ACAS is not able to issue and sell common stock at a price below net asset value without prior approval of a majority of shareholders, or in connection with a rights offering to existing shareholders. Based on a pro forma net asset value including a recent equity issuance of almost $300 million, ACAS' stock price to net asset value ratio stood at 0.65x. These restrictions curtail ACAS' ability to grow until these metrics expand significantly above their regulatory or associated floors. Additionally, portfolio asset quality remains weak and is worse than historical peaks. Persistent weakness or further deterioration in portfolio asset quality and asset values would generate negative rating momentum. Fitch recognizes that ACAS does have some flexibility in generating cash required to meet future principal amortization requirements under the proposed restructure terms as $120 million is not due until Dec. 31, 2012. Fitch also believes the renegotiated covenants provide ACAS with sufficient operating flexibility, barring recognition of significant unrealized depreciation. Based on a 'RR2' Recovery Rating, notching of the senior secured debt rating remains above that of the IDR and continues to reflect Fitch's belief that collateral available to creditors, even on a stressed basis, provides superior recovery prospects given default. Notching of the unsecured debt rating below the IDR and the Recovery Rating reflects subordination of unsecured debt to newly secured debt. AMERICAN CAPITAL: S&P Cuts Counterparty Credit Rating to 'SD' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its counterparty credit rating for American Capital Ltd. to 'SD' (selective default) from 'CC'. At the same time, S&P lowered its issue-level rating on the senior unsecured notes to 'D' from 'CC'. S&P removed both ratings from Credit Watch, where S&P had placed them with negative implications on May 7, 2010. The rating actions followed the company's announcement the same day that it had completed the exchange of its $2.35 billion outstanding unsecured debt with $1.03 billion in cash and issuance of $1.31 billion in new secured notes and loans with a maturity of Dec. 31, 2013. ACAS announced on June 28 that it had received a sufficient number of tenders to complete its offer to exchange outstanding unsecured public and private notes for cash payments and secured notes. At the same time, the company received 100% consent of the lenders under the unsecured revolving credit facility to participate in the restructuring of the credit agreement. "Because the exchange offer includes the issuance of new secured notes that extend the original maturity of certain unsecured debt obligations, S&P continue to view the transaction as a distressed exchange," said Standard & Poor's credit analyst Sebnem Caglayan. "S&P is therefore lowering the counterparty rating to 'SD' upon the consummation of the exchange, based on S&P's published criteria." With the recent amendment of the exchange offer on June 15, 2010, the holders of the company's unsecured debt had the option to choose whether to receive consideration all in cash or all in the previously offered secured amortizing notes. Based on results of the votes ACAS announced, the company has made a cash payment of $1.03 billion with the consummation of the exchange offer. AMERICAN HOSPITALITY: Foreclosure Back on Track ----------------------------------------------- Matt Glynn at News Business Reporter says a foreclosure action involving the Holiday Inn Resort and Conference Center on Grand Island is back on track, likely leading to an auction of the property. American Hospitality Group bought the hotel in 2004. Grand Island, New York-based American Hospitality Group, LLC, dba Grand Island Holiday Inn, filed for Chapter 11 bankruptcy protection on May 6, 2010 (Bankr. W.D.N.Y. Case No. 10-11887). Arthur G. Baumeister Jr., Esq., at Amigone, Sanchez, et al., assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000 as of the Petition Date. AMTRUST FINANCIAL: Objects to JDJ Reno's Arbitration Stay Bid ------------------------------------------------------------- Bankruptcy Law360 reports that AmFin Financial Corp. has objected to JDJ Reno Co. LLC's bid to lift the automatic bankruptcy stay to arbitrate a dispute over operating agreements and management of several multimillion-dollar shopping mall joint ventures. Law360 says AmFin filed an objection Monday in the U.S. Bankruptcy Court for the Northern District of Ohio, arguing that JDJR and JDJ Front Range Co. are attempting to undermine the bankruptcy. About AmTrust Financial AmTrust Financial Corp. (PINK: AFNL), now known as AmFin Financial Corp., was the owner of the AmTrust Bank. AmTrust was the seventh-largest holder of deposits in South Florida, with $4.7 billion in deposits and 21 branches. In November 2008, the Office of Thrift Supervision issued a cease and desist order requiring AmTrust to improve its capital ratios. AmTrust Financial, together with affiliates that include AmTrust Management Inc., filed for Chapter 11 bankruptcy protection on November 30, 2009 (Bankr. N.D. Ohio Case No. 09-21323). G. Christopher Meyer, Esq., and Sherri Lynn Dahl, Esq., at Squire Sanders & Dempsey L.L.P., assist the Debtors in their restructuring effort. Kurtzman Carson Consultants serves as claims and notice agent. Attorneys at Hahn Loeser & Parks LLP serve as counsel to the Official Committee of Unsecured Creditors. AmTrust Management listed $100,000,001 to $500,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. AmTrust Bank is not part of the Chapter 11 filings. On December 4, 2009, AmTrust Bank was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with New York Community Bank, Westbury, New York, to assume all of the deposits of AmTrust Bank. ASHRAY CORPORATION: Case Summary & 15 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Ashray Corporation dba Ojaswi Restaurant Canterbury Inn 1900 Canterbury Road Sacramento, CA 95815 Bankruptcy Case No.: 10-36666 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Christopher M. Klein Debtor's Counsel: Robert N. Kitay, Esq. 3410 Industrial Boulevard #100 West Sacramento, CA 95691 Tel: (916) 266-0188 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-36666.pdf The petition was signed by Ajay Patil, manager/authorized agent. ATHENS INVESTORS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Athens Investors, LLC dba Baymont Inn & Suites- Athens Lodging First 4900 Blazer Parkway Dublin, OH 43017 Bankruptcy Case No.: 10-57646 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Southern District of Ohio (Columbus) Judge: C. Kathryn Preston Debtor's Counsel: Robert J. Morje, Esq. P.O. Box 6545 600 South Pearl Street Columbus, OH 43206 Tel: (614) 224-8000 Fax: (614) 588-8826 E-mail: rmorje.attorney@gmail.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/ohsb10-57646.pdf The petition was signed by Peter Coratola, managing member. AVINCI MEDIA: Posts $255,600 Net Loss for Q1 of 2010 ---------------------------------------------------- aVinci Media Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $255,633 on $528,573 of revenue for the three months ended March 31, 2010, compared with a net loss of $1,464,900 on $124,517 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $1,180,647 in assets and $1,810,804 of liabilities, for a stockholders' deficit of $630,157. As of March 31, 2010, the Company has negative working capital of $547,373 compared with negative working capital of $799,334 at December 31, 2009. Tanner LC, in Salt Lake City, 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 the Company has incurred negative cash flows from operating activities, losses from operations, expects to incur additional losses, and had a working capital deficit as of December 31, 2009. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?657a About aVinci Media Based in Draper, Utah, aVinci Media Corporation -- http://www.avincistudio.com/-- has developed and deployed a proprietary technology that employs 'Automated Multimedia Object Models," the Company's patent-pending way of turning consumer captured images, video, and audio into complete digital productions in the form of full-motion movies, DVD's, photo books, posters and streaming media files. All of the Company's patent applications are pending and have not, as yet, been granted. BAY FRONT: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Bay Front Marina and Yacht Basin, LLC 96 Bryant Road Waretown, NJ 08758 Bankruptcy Case No.: 10-29342 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Michael B. Kaplan Debtor's Counsel: Barry W. Frost, Esq. Teich Groh 691 State Highway 33 Trenton, NJ 08619-4407 Tel: (609) 890-1500 E-mail: bfrost@teichgroh.com Scheduled Assets: $1,800,200 Scheduled Debts: $1,206,615 A list of the Company's 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-29342.pdf The petition was signed by Keith Boyce, company's president. BEAR ISLAND: Plan Exclusivity Extended Until October 1 ------------------------------------------------------ The Hon. Douglas O. Tice, Jr., of the U.S. Bankruptcy Court for the Eastern District of Virginia extended Bear Island Paper Company, L.L.C.'s exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan until October 1, 2010, and December 1, respectively. About Bear Island White Birch is the second-largest newsprint producer in North America. As of December 31, 2009, the WB Group held a 12% share of the North American newsprint market and employed roughly 1,300 individuals (the majority of which reside in Canada). Additionally, for the 12 months ended December 31, 2009, the WB Group maintained an annual production capacity of roughly 1.3 million metric tons of newsprint and directory paper, up to 50% of which consists of recycled content, and achieved net sales of roughly $667 million. Bear Island's assets are almost exclusively located in the U.S. Bear Island Paper Company, L.L.C., filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Virginia on February 24, 2010. The company's parent, White Birch Paper Company, filed for bankruptcy protection under Canada's Companies' Creditors Arrangement Act, before the Superior Court for the Province of Quebec, Commercial Division, Judicial District of Montreal, Canada. White Birch and five other affiliates -- F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners, Limited Partnership; Papier Masson Ltee; Stadacona Limited Partnership; and Stadacona General Partner, Inc. -- also sought bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code. Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia Beach, Virginia; and Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, serve as counsel to White Birch, as Foreign Representative. Kirkland & Ellis and Troutman Sanders also serve as Chapter 11 counsel to Bear Island. AlixPartnes LLP serves as financial/restructuring advisor to Bear Island, and Lazard Freres & Co., serves as investment banker. Chief Judge Douglas O. Tice, Jr., handles the Chapter 11 and Chapter 15 cases. BELLALILLY, LLC: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Bellalilly, LLC, a Nevada Limited Liability Company 4421 Ponca Avenue Toluca Lake, CA 91602 Bankruptcy Case No.: 10-17606 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: Darvy M. Cohan, Esq. Darvy Mack Cohan Attorney at Law 7855 Ivanhoe Avenue, Suite 400 La Jolla, CA 92037 Tel: (858) 459-4432 Fax: (858) 454-3548 E-mail: dmc@cohanlaw.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 creditors together with its petition. The petition was signed by Michael Walker, managing member. BIGLER LP: Amegy Bank Buying Most Assets With Credit Bid -------------------------------------------------------- Bill Rochelle at Bloomberg News reports that most of the business of Bigler LP will be purchased by the secured lender Amegy Bank NA under a Chapter 11 reorganization plan. Amegy had the high bid for the terminals and petrochemicals business. The bank will purchase the assets in exchange for $38 million of secured debt. Amegy decided to have the sale approved and carried out through confirmation of a Chapter 11 plan. No buyers were under contract before Houston-based Bigler began the auction process. As reported by the TCR on June 29, Bigler has received approval to to sell substantially all of their land assets to Intercontinental Terminals Company, LLC. ITC is buying 180 acres of land for $20.5 million. Vopak Terminals North America, Inc., emerged as the second highest bidder at the June 16 auction. About Bigler LP Houston-based Bigler LP is a diversified petrochemical producer. Bigler has production and storage facilities on 271 acres on the Houston Ship Channel. Bigler filed for Chapter 11 reorganization on Oct. 30 in Houston (Bankr S.D. Tex. Case No. 09-38188). The petition listed assets of $233 million against debt totaling $151 million. Liabilities include $67 million owed to secured lender Amegy Bank NA, which has a lien on all assets. Secured lender Amegy Bank is represented by Porter & Hedges LLP. BIOVEST INTERNATIONAL: Names CPA Edmund King as Director -------------------------------------------------------- On June 23, 2010, Edmund C. King, CPA, was appointed to the Board to serve as a Director to fill the vacancy occasioned by the resignation of Biovest International, Inc.'s designated Financial Expert/Director in November 2008. Mr. King will serve as a Director commencing immediately and for the remainder of the term of that Director position and until his successor is duly elected and qualified. The Board has determined that Mr. King is to serve as the designated Financial Expert of the Board and meets the applicable requirements of "independence" so as to allow the Company to comply, as and when necessary, with the requirements of the Sarbanes-Oxley Act. Edmund C. King, CPA has served as a director of our parent company, Accentia Biopharmaceuticals, Inc. since October 2006. Mr. King was a partner in Ernst & Young, an international accounting and consulting firm. While at Ernst & Young, Mr. King was that firm's southern California senior healthcare partner and prior to that directed the southern California healthcare practice for Arthur Young & Company, one of the predecessor firms of Ernst & Young. During his 30 years with Ernst & Young, Mr. King counseled clients in structuring acquisitions and divestitures; advised on the development of strategic plans; directed the preparation of feasibility studies; assisted with operational and financial restructuring; directed and supervised audits of client financial statements; and provided expert witness testimony and technical SEC consultation. Commencing in 1999, Mr. King became a financial consultant to SmartGate, L.C. Mr. King has served as Chief Financial Officer and Director of Invisa, Inc. since November 2000 and Chief Financial Officer and Acting President since 2009. From January 1992, Mr. King has been a general partner of Trouver, an investment banking and financial consulting partnership. Mr. King is also a member of the Board of Directors of LTC Properties, Inc., NYSE listed real estate investment trust. Mr. King is a graduate of Brigham Young University having served on the National Advisory Council of that school's Marriott School of Management, and has completed a Harvard University management course sponsored by Ernst & Young. Mr. King also has served as Chairman of the MPMA's Long-Term Care Committee (Los Angeles Chapter) and is a past member of the National Association of Corporate Directors. He also holds a CPA certificate in the state of California. About Biovest International Based in Tampa, Florida, Biovest International Inc. (Other OTC: BVTI) -- http://www.biovest.com/-- is a pioneer in the development of advanced individualized immunotherapies for life- threatening cancers of the blood system. Biovest is a majority- owned subsidiary of Accentia Biopharmaceuticals Inc., with its remaining shares publicly traded. Biovest filed for Chapter 11 bankruptcy protection on November 10, 2008 (Bankr. M.D. Fla. Case No. 08-17796). BLACK GAMING: Court Confirms Amended and Final Reorganization Plan ------------------------------------------------------------------ Black Gaming, LLC, Mesquite's largest gaming company, on June 28 obtained confirmation of its Plan of Reorganization, paving the way for the Company to emerge from Chapter 11 protection. "We are extremely pleased with the court's decision, which clears the way for us to complete our debt restructuring," said Robert R. Black, Sr., CEO of Black Gaming, according to a company statement released on Business Wire on June 28. Mr. Black continued, "The Plan confirmed today allows us to reduce our debt by more than $143 million and emerge with a more manageable capital structure. Many other gaming companies who have found themselves in similar situations to that of Black Gaming continue to work toward what we have achieved today. It is a testament to the work of our employees, advisors, partners and creditors' hard work and commitment during this process. Through their collective efforts, Black Gaming will become a stronger organization better positioned to provide our guest the best entertainment value for their dollar." The Hon. Bruce A. Markell, of the U.S. Bankruptcy Court for the District of Nevada, confirmed the Plan at a hearing June 28. More than 98% of the creditors who cast ballots voted in favor of confirmation. The key terms of the Plan include: * The Company's senior credit facility with Wells Fargo Foothill will be paid in full. * The Company's senior secured noteholders will exchange their notes and claims thereunder for a new credit facility of $62,500,000. * The Company's senior subordinated noteholders will receive warrants to purchase equity interests in reorganized Black Gaming in exchange for their notes and claims. * To the extent permitted under the Bankruptcy Code, general unsecured claims, including vendors, will be paid in cash. * Anthony Toti, Newport Global Advisors or one of its affiliates, Robert R. Black, Sr. and one or more parties to be designated by Michael Gaughan will contribute cash in excess of $18,250,000 in exchange for 100% of the new equity interests in reorganized Black Gaming. * Robert R. Black, Sr. will remain C.E.O. Anthony Toti will remain C.O.O., and Sean P. McKay will remain C.F.O. About Black Gaming Headquartered in Las Vegas, Nev., Black Gaming, LLC, is a holding company and is an owner and operator of three gaming entertainment properties located in Mesquite, Nevada. The Company filed for Chapter 11 bankruptcy protection on March 1, 2010 (Bankr. D. Nev. Case No. 10-13301). Gregory E. Garman, Esq., and Talitha B. Gray, Esq., at Gordon & Silver, Ltd., assist the Company in its restructuring effort. Kurtzman Carson Consultants is the Company's claims and notice agent. In its petition, the Company listed $10,000,001 to $50,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. The Company's affiliates -- B&BB, Inc.; R. Black, Inc.; Casablanca Resorts, LLC; Casablanca Resorts, LLC; Oasis Interval Ownership, LLC; Oasis Interval Management, LLC; Oasis Recreational Properties, Inc.; RBG, LLC; and Virgin River Casino Corporation -- filed separate Chapter 11 petitions. BLOCKBUSTER INC: Presents Accomplishments to Shareholders --------------------------------------------------------- Blockbuster Inc. reported its financial accomplishments during the annual meeting of stockholders: * Refinancing Completed two successful refinancing actions during an extremely challenging credit market: -- $250 million amended revolving credit facility in May 2009; and -- $675 million 11.75% senior secured notes offering, reducing 2010 amortization payments by over $300 million and extending debt maturities. * Eliminated LC Eliminated final $24 million in letters of Related to Viacom credit related to Viacom. In total, released approximately $70 million in restricted cash from LCs to enhance liquidity. * Operational Reduced G&A by $306 million for the full Efficiencies year of 2009 Maintained capital expenditures at $30 million per year Continued to aggressively manage working capital * Studio Cooperation -- Revenue share -- Improved credit terms A full-text copy of the Company's annual presentation is available for free at http://ResearchArchives.com/t/s?6585 About Blockbuster Inc. Blockbuster Inc. is a leading global provider of rental and retail movie and game entertainment. The company provides customers with convenient access to media entertainment anywhere, any way they want it -- whether in-store, by-mail, through vending kiosks or digitally to their homes and mobile devices. With a highly recognized brand and a library of more than 125,000 movie and game titles, Blockbuster leverages its multichannel presence to serve nearly 47 million global customers annually. The company may be accessed worldwide at http://www.blockbuster.com/ Blockbuster's quarterly report on Form 10-Q showed a net loss of $65.4 million on $939.4 million of revenue for the thirteen weeks ended April 4, 2010, compared with net income of $27.7 million on $1.086 billion of revenue for the thirteen weeks ended April 5, 2009. The Company's balance sheet as of April 4, 2010, showed $1.319 billion in assets and $1.693 billion of liabilities, for a stockholders' deficit of $374.2 million. PricewaterhouseCoopers LLP, in Dallas, expressed substantial doubt about the Company's ability to continue as a going concern following Blockbuster's 2009 results. BRIDGE ASSOCIATES: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Bridge Associates of West 89th Street, LLC P.O. Box 177 Woodmere, NY 11598 Bankruptcy Case No.: 10-74891 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Alan S. Trust Debtor's Counsel: Roy J. Lester, Esq. 600 Old Country Road, Suite 229 Garden City, NY 11530 Tel: (516) 357-9191 Fax: (516) 357-9281 E-mail: rlester@rlesterlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 5 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nyeb10-74891.pdf The petition was signed by Alan Luckner, managing agent. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Bridge Associates of Brodheadsville, LLC 10-74215 06/02/10 Bridge Associates of PA, LLC 10-74718 06/17/10 Bridge Associates of Pocono Township, LP 10-74195 06/01/10 Bridge Associates of Tannersville, LLC 10-74541 06/14/10 BRIER CREEK: Wants Case Dismissed to Pay Prepetition Claims ----------------------------------------------------------- Brier Creek FC, LLC, asks the U.S. Bankruptcy Court for the Southern District of Indiana to dismiss its Chapter 11 case. The Debtor relates that it reached an agreement with Fund X EBC NH L.L.C., the lender, and Fund X EBC Raleigh, L.L.C., the buyer, which provides, among other things, that upon dismissal of the Bankruptcy Case, the Debtor will sell the real property securing the note to the buyer, and in exchange, the buyer will make a payment to the Debtor to be used to: (i) make full payment of prepetition claims and administrative expense claims of all undisputed non-insider creditors other than the lender, and (ii) make partial payment to insider creditors of the Debtor. Indianapolis, Indiana-based Brier Creek FC, LLC, dba The Exchange at Brier Creek, filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. S.D. Ind. Case No. 10-05645). The Company estimated its assets and debts at $10,000,001 to $50,000,000. BRIER CREEK: Can Use Fund X's Cash Collateral Until July 30 ----------------------------------------------------------- The Hon. Anthony J. Metz, III, of the U.S. Bankruptcy Court for the Southern District of Indiana approved a stipulation extending Brier Creek FC, LLC's access to the cash collateral until July 30, 2010. A stipulation was between the Debtor and Fund X EBC NH L.L.C., as purchaser of the note previously held by First Horizon Home Loans, a division of First Tennessee Bank National Association. Indianapolis, Indiana-based Brier Creek FC, LLC, dba The Exchange at Brier Creek, filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. S.D. Ind. Case No. 10-05645). The Company estimated its assets and debts at $10,000,001 to $50,000,000. BRIER CREEK: Files Schedules of Assets and Liabilities ------------------------------------------------------ Brier Creek FC, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Indiana its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $26,940,000 B. Personal Property $218,680 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $24,800,000 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $5,533,323 ----------- ----------- TOTAL $27,158,680 $30,333,323 Indianapolis, Indiana-based Brier Creek FC, LLC, dba The Exchange at Brier Creek, filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. S.D. Ind. Case No. 10-05645). The Company estimated its assets and debts at $10,000,001 to $50,000,000. CALIFORNIA COASTAL: Submits Third Iteration of Reorganization Plan ------------------------------------------------------------------ BankruptcyData.com reports that California Coastal Communities filed with the US Bankruptcy Court a Third Amended Joint Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "The Joint Plan Proponents believe that (i) the Joint Plan will afford the Debtors the opportunity and ability to continue in business as a viable going concern and preserve ongoing employment for the Debtors' employees and (ii) through the Joint Plan, creditors and equity interest holders will obtain a greater recovery from the Debtors' estates than would be available if the Debtors' assets were liquidated under chapter 7 of the Bankruptcy Code." About California Coastal Irvine, Calif.-based California Coastal Communities, Inc. -- http://www.californiacoastalcommunities.com/-- is a residential land development and homebuilding company with properties owned or controlled primarily in Orange County, California, and also in Lancaster in Los Angeles county. The Company's primary asset is a 356-home luxury coastal community known as Brightwater in Huntington Beach, California. California Coastal Communities, Inc. and certain of its direct and indirect wholly-owned subsidiaries filed for Chapter 11 bankruptcy protection on October 27, 2009 (Bankr. C.D. Calif. Case No. 09- 21712). Joshua M. Mester, Esq., who has an office in Los Angeles, California, assists the Debtors in their restructuring efforts. In their petition, the Debtors listed between $100 million and $500 million in assets and between $100 million and $500 million of debts. On March 26, 2010, the Company filed a proposed disclosure statement and proposed joint plan of reorganization with the Bankruptcy Court, neither of which has been approved. The proposed joint plan provides for the extension of the Revolving Loan and the Term Loan to enable the Company to complete construction and sale of the homes at its Brightwater project. A majority of the Company's lenders are opposed to the plan as filed. At March 31, 2010, the Company's balance sheet showed $249.0 million in assets, $218.0 million of liabilities, and $31.0 million of stockholders' equity. CALYPTE MEDICAL: Posts $549,000 Net Loss for March 31 Quarter ------------------------------------------------------------- Calypte Biomedical Corporation filed its quarterly report on Form 10-Q, reporting a $549,000 net loss on $136,000 of products sales for the three months ended March 31, 2010, compared with a $1.2 million net loss on $176,000 of product sales during the same period a year ago. The Company's balance sheet at March 31, 2010, showed $5.2 million in total assets and $20.4 million in total liabilities, for a $15.1 million total stockholders' deficit. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?6586 About Calypte Biomedical Portland, Ore.-based Calypte Biomedical Corporation develops, manufactures, and distributes in vitro diagnostic tests, primarily for the diagnosis of Human Immunodeficiency Virus infection. Odenberg, Ullakko, Muranishi & Co. LLP, in San Francisco, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has defaulted on $6.3 million of 8% Convertible Promissory Notes and related Interest Notes and $5.2 million of 7% Promissory Notes, has suffered recurring operating losses and negative cash flows from operations, and management believes that the Company's cash resources will not be sufficient to sustain its operations through 2010 without additional financing. CANE RIDGE: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Cane Ridge Farms, LLC 1418 Kensington Square Court Building A Murfreesboro, TN 37130 Bankruptcy Case No.: 10-06637 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Keith M. Lundin Debtor's Counsel: William L. Norton, III, Esq. Bradley Arant Boult Cummings LLP P.O. Box 340025 Nashville, TN 37203 Tel: (615) 252-2397 Fax: (615) 252-6397 E-mail: bnorton@babc.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 Mark Thomason, chief manager. CATHOLIC CHURCH: Catholic Mutual Seeks Arbitration -------------------------------------------------- The Catholic Mutual Relief Society of America asks Judge MacDonald to compel arbitration and stay further proceedings, which are related to certain claims at issue in the adversary proceeding against various insurers, pending arbitration. Specifically, Catholic Mutual asks the Bankruptcy Court to: (1) enter an order compelling the Diocese/Trustee to submit all disputes regarding claims based on acts of sexual abuse, which are alleged to have occurred on or after July 1, 1990, to arbitration, as set forth in the General Conditions of the Certificate Number 8550, issued by Catholic Mutual to the Diocese for the period from July 1, 2008, through July 1, 2009; and (2) stay the adversary proceeding as it relates to post-1990 abuse claims pending the arbitration. John C. Wendlandt, Esq., at Sedor, Wendlandt, Evans & Filippi, LLC, in Anchorage, Alaska, contends that each of the Plaintiff's claims relates to the "coverages, defenses, or interpretations of Certificate language" under the 2008-2009 Certificate and CBNA's rights thereunder and is, therefore, subject to a determination in accordance with the Dispute Resolution provisions to which CBNA and Catholic Mutual agreed. He points out that Catholic Mutual's arbitral rights are subject to mandatory enforcement under federal law and are as binding on the Trustee as CBNA. Mr. Wendlandt tells Judge MacDonald that Catholic Mutual disputes that it has breached any provision of the 2008-2009 Certificate. On the contrary, he notes, Catholic Mutual asserts that numerous provisions of the Diocese's Plan of Reorganization, including the assignment, release and arbitration provisions provided, constitute material breaches of CBNA's obligations under the 2008- 2009 Certificate, which vitiate coverage. Catholic Mutual insists that the arbitrable disputes include, but are not limited to: -- Whether Catholic Mutual's response to the Creditors Committee's October 21, 2009 settlement demand constitutes a breach of its express or implied obligations under the 2008-2009 Certificate; -- Whether there are six or seven post-1990 abuse claims, as well as the identity of those claims; -- Whether CBNA has committed material breaches of its obligations, which vitiate coverage under the 2008-2009 Certificate; and -- Whether the release from liability that CBNA received pursuant to the Plan extinguishes Catholic Mutual's defense and indemnity obligations under the 2008-2009 Certificate. About the Diocese of Fairbanks The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka The Diocese of Fairbanks, aka CBNA -- http://www.cbna.info/-- filed for Chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady LLP represents the Debtor in its restructuring efforts. Michael R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's local counsel and Cook, Schuhmann & Groseclose Inc. as its special counsel. Judge Donald MacDonald, IV, of the United States Bankruptcy Court for the District of Alaska presides over Fairbanks' Chapter 11 case. The Debtor's schedules show total assets of $13,316,864 and total liabilities of $1,838,719. The church's plans to file its bankruptcy plan and disclosure statement on July 15, 2008. Its exclusive plan filing period expires on January 15, 2009. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CC MEDIA: Mark Mays to Transition as Chairman --------------------------------------------- CC Media Holdings Inc. said that Mark P. Mays will transition from his role as the Company's Chief Executive Officer to the Company's Chairman. The effective date for Mr. Mays' transition will occur upon the hiring of a new Chief Executive Officer for the Company. Mr. Mays will remain a director and employee of the Company. In connection with this transition, on June 23, 2010, the Company, Clear Channel Communications, Inc. and Mr. Mays entered into an amended and restated employment agreement. 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's Corporate Family Rating to 'Caa2' from 'Caa3'. The upgrade 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. CENTER FOR RENAL: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Center for Renal Care at Shadyside, Ltd. 438 South Fairmount Street Pittsburgh, PA 15232 Bankruptcy Case No.: 10-05238 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Middle District of Pennsylvania (Harrisburg) Judge: Robert N. Opel II Debtor's Counsel: Robert E. Chernicoff, Esq. Cunningham and Chernicoff PC 2320 North Second Street Harrisburg, PA 17110 Tel: (717) 238-6570 Fax: 717 238-4809 E-mail: rec@cclawpc.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 J. Gregory Cauterucci, Sr., company's president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Residence for Renal Care 10-05235 06/24/2010 at Shadyside, Ltd. CHAD EICHTEN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Chad Alan Eichten P.O. Box 47570 Plymouth, MN 55447 Bankruptcy Case No.: 10-60783 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court District of Minnesota (Fergus Falls) Judge: Dennis D O'Brien Debtor's Counsel: Steven B. Nosek, Esq. 2855 Anthony Ln S Ste 201 St Anthony, MN 55418 Tel: (612) 335-9171 Fax: (612) 789-2109 E-mail: snosek@visi.com Scheduled Assets: $2,408,253 Scheduled Debts: $9,296,470 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mnb10-60783.pdf The petition was signed by Chad Alan Eichten. CHARLESTON ASSOCIATES: Meeting to Form Creditors Committee July 1 ----------------------------------------------------------------- Roberta A. DeAngelis, Acting United States Trustee for Region 3, will hold an organizational meeting on July 1, 2010, at 2:00 p.m. in the bankruptcy case of Charleston Associates, LLC. The meeting will be held at J. Caleb Boggs Federal Building, 844 King Street, Room 5209, Wilmington, DE 19801. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Las Vegas, Nevada-based Charleston Associates, LLC -- fdba Boca Fashion Village Syndications Group, LLC, and Boca Fashion Village, LLC -- filed for Chapter 11 bankruptcy protection on June 17, 2010 (Bankr. D. Del. Case No. 10-11970). Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. CHINO HILLS: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Chino Hills Podiatry, Inc. 5827 Pine Avenue Building 12, Suite A Chino Hills, CA 91709 Bankruptcy Case No.: 10-29561 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Central District of California (Riverside) Judge: Thomas B. Donovan Debtor's Counsel: Andrew K. Mauthe, Esq. P.O. Box 51147 Irvine, CA 92619-1147 Tel: (949) 788-2902 Fax: (949) 788-2903 E-mail: mauthelaw@attglobal.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of creditors together with its petition. The petition was signed by Vanessa Taylor, CEO. COLONIAL BANCGROUP: FDIC to Seek Dismissal of Tax Refund Lawsuit ---------------------------------------------------------------- American Bankruptcy Institute reports that the Federal Deposit Insurance Corp. said it will ask a federal judge to throw out a lawsuit filed by the former parent company of Colonial Bank, which was seized by federal regulators last year, over the rights to millions of dollars in tax refunds. About Colonial BancGroup Headquartered in Montgomery, Alabama, The Colonial BancGroup, Inc. (NYSE: CNB) was holding company to Colonial Bank, N.A, its banking subsidiary. Colonial bank -- http://www.colonialbank.com/ -- operated 354 branches in Florida, Alabama, Georgia, Nevada and Texas with over $26 billion in assets. On August 14, 2009, Colonial Bank was seized by regulators and the Federal Deposit Insurance Corporation was named receiver. The FDIC sold most of the assets to Branch Banking and Trust, Winston-Salem, North Carolina. BB&T acquired $22 billion in assets and assumed $20 billion in deposits of the Bank. The Colonial BancGroup filed for Chapter 11 bankruptcy protection on August 25, 2009 (Bankr. M.D. Ala. Case No. 09-32303). W. Clark Watson, Esq., at Balch & Bingham LLP and Rufus T. Dorsey IV, Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Company in its restructuring effort. The Company listed $45,000,000 in assets and $380,000,000 in debts in its bankruptcy filing. COOPER TIRE: S&P Raises Corporate Credit Rating to 'BB-' -------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its corporate credit rating and other debt ratings on tire maker Cooper Tire & Rubber Co. to 'BB-' from 'B'. At the same time, S&P removed the ratings from CreditWatch, where S&P had placed them with positive implications on March 31, 2010. The outlook is stable. "The upgrade is based on significantly improved credit measures that S&P believes are sustainable because of higher sales, greater manufacturing efficiencies, and tighter cost controls," said Standard & Poor's credit analyst Lawrence Orlowski. "As a result, S&P believes the company's credit measures justify a higher rating." Although Standard & Poor's is cautious about a rebound in North American demand for replacement tires, the company has reduced its overall cost structure. This has helped stabilize its financial position and laid the foundation for higher profitability as replacement tire demand returns to more normal levels. "Although raw material prices remain volatile and future tire demand may be weaker than expected, S&P believes the improvement in credit measures is substantial enough to support the 'BB-' rating," Mr. Orlowski added. CRISTAL INORGANIC: Moody's Moves Outlook on 'B3' to 'Stable' ------------------------------------------------------------ Moody's Investors Service moved the rating outlook for Cristal Inorganic Chemicals Ltd. to stable from negative and affirmed its B3 Corporate Family Rating. The stable outlook is a result of improved operating performance and better titanium dioxide (TiO2) industry fundamentals. CIC's operating performance and credit metrics are expected to benefit from the current tight TiO2 market supply conditions. Idled or shut plants, inventory de-stocking by both producers and customers over the past two years, and growth in demand (which still remains below peak pre-economic crisis levels) has led to a tighter supply-demand balance, which should provide producers with pricing power. (CIC's Le Havre, France plant has been shut and its Hawkins Point, Maryland plant is idle.) CIC, as well as numerous other producers, have announced price increases that will take effect in the second half of 2010. While the TiO2 industry has experienced difficulty in increasing prices over the past three years, often realizing only part and sometimes none of announced price increases, Moody's expect TiO2 market prices will rise in the second half of 2010, directly increasing producers' profits. The company is currently selling virtually all the product it can make. The move to higher utilization rates and cost reduction initiatives since 2009 are resulting in expanding margins and increased profits. The stable outlook reflects the company's improved liquidity position and expectations for improved financial results in 2010. The company's improved earnings and positive free cash flow in the second half of 2009 provided a greater cushion under its financial covenants and allowed it to reduce borrowings under its revolving credit facility. The company had over $43 million of availability under the revolver as of March 31, 2010. The additional flexibility is allowing the company to pursue capital improvement projects, in addition to the normal maintenance capital expenditures ($25-40 million p.a.) and closure/remediation costs for the former Le Havre plant. Such capital expenditures may result in the company generating minimal free cash flow in 2010. The improved performance has increased the headroom under the financial covenants of CIC's revolving credit facility. These summarizes the ratings: Cristal Inorganic Chemicals Ltd. * Corporate Family Rating - B3 * Probability of Default Rating - B3 * $100 million First Lien Revolving Credit Facility due 2012, B1 (LGD2, 29%) from B1 (LGD2, 27%) * $550 million First Lien Term Loan due 2014, B1 (LGD2, 29%) from B1 (LGD2, 27%) * $230 million Second Lien Term Loan due 2014, Caa1(LGD5, 73%) from Caa1 (LGD4, 68%) Moody's last rating action concerning CIC was on May 21, 2009. At that time Moody's lowered the company's CFR to B3 and moved the outlook to negative due to concerns over the company's ability to meet its financial covenants under its credit facility. Cristal Inorganic Chemicals, headquartered in Hunt Valley, Maryland, is the world's second largest producer of titanium dioxide. The company is also a producer of performance chemicals, including TiCl4 and ultrafine TiO2. Revenues were approximately $1.4 billion for the twelve months ended March 31, 2010. CIC is a wholly owned subsidiary of The National Titanium Dioxide Company Limited, which operates a large, low-cost, TiO2 facility in Yanbu, Saudi Arabia. DOUBLE G: Files Schedules of Assets and Liabilities --------------------------------------------------- Double G Ranch, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Michigan its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $750,000 B. Personal Property $1,395,016 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $9,747 E. Creditors Holding Unsecured Priority Claims $6,328 F. Creditors Holding Unsecured Non-priority Claims $10,400,692 ----------- ----------- TOTAL $2,145,016 $10,416,767 Scottsdale, Arizona-based Double G. Ranch, LLC, filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. E.D. Mich. Case No. 10-53029). Matthew Wilkins, Esq., who has an office in Birmingham, Michigan, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. DOUBLE G: U.S. Trustee Forms 6-Member Creditors Committee --------------------------------------------------------- Daniel M. McDermott, the U.S. Trustee for Region 9, appointed six members to the official committee of unsecured creditors in the Chapter 11 cases of Double G Ranch, LLC. The Creditors Committee members are: 1. Radom Group III Group (Tom Radom) 41000 Woodward Ave. Bloomfield Hills, MI 48304 E-mail: Radom@butzel.com Tel: (248) 258-1413 Fax: (248) 258-1439 2. Dallas Rhodes & Donice Breza Attn: John Breza 310 N. Connecticut Royal Oak, MI 48067 E-mail: jbreza@gmail.com Tel: (248) 417-6960 Fax: (586) 731-9274 3. Michael Waterman Profit Sharing 165 Vorn Lane Bloomfield Township, MI 48301 E-mail: mwaterman@om-group.com Tel: (248) 561-7777 Fax: (248) 362-2643 4. Robert and Diane Drost 13720 Freindly Dr. Wolverine, MI 49799 E-mail: bobdrost@drostlandscape.com Tel: (231) 525-8587 5. Paul Cefai 31746 Edgeworth Madison Heights, MI 48071 E-mail: pcefai08@comcast.net Tel: (248) 583-0124 6. Corinne Smorra Kesteloot 2156 Bordeaux West Bloomfield, MI 48302 E-mail: corinne@smorra-kesteloot.com Tel: (707) 815-0374 Fax: (248) 538-9841 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. Scottsdale, Arizona-based Double G. Ranch, LLC, filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. E.D. Mich. Case No. 10-53029). Matthew Wilkins, Esq., who has an office in Birmingham, Michigan, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. DOYLE HEATON: Wins Confirmation of Chapter 11 Plan -------------------------------------------------- Bill Rochelle at Bloomberg News reports that Doyle Heaton has received confirmation of his Chapter 11 plan. Mr. Heaton estimates having potential unsecured liabilities that aggregate nearly $120 million. He believes the pool of unsecured claims asserted against the estate will be significantly reduced by virtue of value recovered from the assets of the development entities, but deficiencies are likely to remain. Under the Plan, he projects that the unsecured creditor pool can be reduced to $12 million. The Plan also incorporates and implements a settlement with Wells Fargo Bank, N.A. The disclosure statement said that unsecured creditors could expect a 27.5% recovery. Payments to unsecured creditors are expected to come from Mr. Heaton's 30% interest in a project expected to be worth $3.1 million, less a 20% success fee Heaton would receive. About Doyle and Mary Heaton Doyle Heaton is a real estate developer in the Bay Area around San Francisco, California. Pleasant Hill, California-based Doyle D. Heaton and Mary K. Heaton filed for Chapter 11 protection on January 11, 2010 (Bankr. N.D. Calif. Case No. 10-40297). Maxim B. Litvak, Esq., at Pachulski, Stang, Ziehl and Jones, assists the Debtors in their restructuring efforts. DR HORTON: S&P Changes Outlook to Stable; Affirms 'BB-' Rating -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Fort Worth, Texas-based D.R. Horton Inc. to stable from negative. At the same time, S&P affirmed its 'BB-' corporate credit, 'BB-' senior unsecured note, and 'B' senior subordinated note ratings on the company. "The outlook revision reflects S&P's expectation that the company will return to profitability in its fiscal year ending Sept. 30, 2010," said credit analyst James Fielding. "S&P's ratings on D.R. Horton continue to reflect risks associated with the company's aggressively leveraged financial profile as well as S&P's expectation that the nation's housing market recovery will be more protracted and uneven than S&P previously anticipated. That being said, S&P believes that D.R. Horton's currently adequate liquidity position will enable the company to grow its market share at the expense of more capital-constrained peers while it continues to modestly reduce long-term indebtedness." D.R. Horton's significantly improved new order trends support S&P's stable outlook on the company, as these trends should contribute to solid top and bottom line improvement in the near term. S&P would lower its ratings if a return to consistent profitability proves elusive or if cash balances fell below $800 million. Conversely, S&P would raise its ratings if the company maintains cash at the higher end of its expectations and continues to profitably grow its business such that key credit measures are more comfortably and consistently in line with similarly rated industrial peers. DUKE'S EARTH: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Duke's Earth Services, Inc. aka DESI Environmental Services 510 South Park Drive Mooresville, IN 46158 Bankruptcy Case No.: 10-09582 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: James K. Coachys Debtor's Counsel: Courtney Elaine Chilcote, Esq. E-mail: cec@hostetler-kowalik.com Gary Lynn Hostetler, Esq. E-mail: glh@hostetler-kowalik.com Mark Alan Drummond, Esq. E-mail: mad@hostetler-kowalik.com Hostetler & Kowalik, P.C. 101 West Ohio Street, Suite 2100 Indianapolis, IN 46204 Tel: (317) 262-1001 Fax: (317) 262-1010 Estimated Assets: %500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $790,452 while debts total $2,105,880. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/insb10-09582.pdf The petition was signed by David L. Brown, president. ENERGY PARTNERS: Completes Refinancing, Recovers Cash Collateral ---------------------------------------------------------------- Energy Partners, Ltd. completed two previously announced events including its refinancing and the return of $8.9 million of cash previously collateralizing surety bond obligations. Additionally, it announced its inclusion in the Russell 2000 Index last Friday. On June 28, 2010, the amendment of EPL's $125 million Senior Secured Credit Facility with General Electric Capital Corporation became effective, and EPL redeemed its outstanding Senior Subordinated PIK Notes due 2014. Using funds available under the Credit Facility coupled with cash on hand, a redemption payment was made totaling $70.9 million of principal and accrued interest in connection with the redemption of the Notes. The Credit Facility was resized and provides for an initial $70 million borrowing base that supports a new $25 million term loan and a three-year revolving credit facility with $45 million of availability, which was undrawn following the redemption of the Notes. The Company expects to end the second quarter 2010 with cash in excess of debt. EPL also reported that it has received $8.9 million of cash collateral previously held in escrow accounts supporting supplemental and other ordinary course surety bonding obligations as anticipated during the second quarter. As previously announced, the Company regained its supplemental waiver status with the federal agency formerly known as the Minerals Management Service, which, when coupled with EPL's greatly improved financial position since its reorganization in 2009, led to the return of all collateral held by surety companies for surety bonding obligations. Gary C. Hanna, EPL's CEO stated, "As announced previously, this refinancing of our subordinated debt to reduce our cost of capital was a top priority in 2010 and we are pleased to report it has been completed on schedule in the second quarter. We expect to end the quarter with net cash and in excess of $70 million of liquidity, a solid balance sheet and substantial go-forward financial flexibility." The Company also announced that its common shares are now included in the Russell 2000 Index, which was reconstituted by Russell Investments (http:///www.russell.com/)on June 25, 2010. Membership in the Russell 2000 Index, which will remain in place for one year, means automatic inclusion in the appropriate Russell Investments growth and value style indexes. Russell Investments determines membership for its equity indexes primarily by objective, market capitalization rankings and investment style attributes. About Energy Partners Founded in 1998, Energy Partners, Ltd. -- http://www.eplweb.com -- is an independent oil and natural gas exploration and production company based in New Orleans, LA and Houston. The company's operations are primarily located in the Gulf of Mexico shelf. Energy Partners, Ltd., and its affiliates filed for Chapter 11 on May 1, 2009 (Bankr. S.D. Tex. Lead Case No. 09-32957). Paul E. Heath, Esq., at Vinson & Elkins LLP represents the Debtors in their restructuring effort. The Debtors also tapped Parkman Whaling LLC as financial advisor. The Debtors' financial condition as of December 31, 2008, showed total assets of $770,445,000 and total debts of $708,370,000. Energy Partners' reorganization plan became effective September 21, 2009. EROSION SERVICE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Erosion Service & Supply, L.L.C. P.O. Box 2980 Auburn, AL 36831 Bankruptcy Case No.: 10-31672 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Middle District of Alabama (Montgomery) Judge: William R. Sawyer Debtor's Counsel: Michael A. Fritz, Sr., Esq. Fritz & Hughes, LLC 7020 Fain Park Drive, Suite 1 Montgomery, AL 36117 Tel: (334) 215-4422 Fax: (334) 215-4424 E-mail: bankruptcy@fritzandhughes.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/almb10-31672.pdf The petition was signed by E. Robert Segars, member. FAIRPOINT COMMS: Vermont Regulators Reject Bankruptcy Plan ---------------------------------------------------------- Bankruptcy Law360 reports that Vermont utility regulators on Monday rejected FairPoint Communications Inc.'s bid to delay broadband deployments and avoid penalties for providing poor service to customers in the state, potentially stalling the company's exit from Chapter 11. FairPoint -- currently in bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of New York -- is reviewing the decision, Law360 relates, citing a company spokeswoman. About FairPoint Communications FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- is an industry-leading provider of communications services to communities across the country. FairPoint owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009 (Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is claims and notice agent. As of June 30, 2009, FairPoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in total stockholders' equity. Bankruptcy Creditors' Service, Inc., publishes FairPoint Communications Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of FairPoint Communications Inc. and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FIRST INDUSTRIAL: Fitch Puts Low-B Ratings on Negative Watch ------------------------------------------------------------ Fitch Ratings has placed these credit ratings of First Industrial Realty Trust, Inc., and its operating partnership, First Industrial, L.P., on Rating Watch Negative: First Industrial Realty Trust, Inc. -- Issuer Default Rating 'BB-'; -- $275 million preferred stock 'B'. First Industrial, L.P. -- IDR 'BB-'; -- $500 million unsecured revolving credit facility 'BB-'; -- $775.4 million senior unsecured notes 'BB-'; -- $145.2 million senior unsecured exchangeable notes 'BB-'. Fitch will issue an updated and more detailed rating analysis of First Industrial upon reviewing further information from the company. FISHERMAN'S WHARF: Taps Bush Ross as General Bankruptcy Counsel --------------------------------------------------------------- The Hon. Caryl E. Delano of the U.S. Bankruptcy Court for the Middle District of Florida authorized Fisherman's Wharf of Venice, Inc., to employ Bush Ross, P.A. as general bankruptcy counsel. Bush Ross will represent the Debtor in the Chapter 11 proceeding. To the best of the Debtor's knowledge, Bush Ross is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Venice, Florida-based Fisherman's Wharf of Venice, Inc., filed for Chapter 11 on May 4, 2010 (Bankr. M.D. Fla. Case No. 10-10694). H. Bradley Staggs, Esq. at Bush Ross, P.A., assists the Debtor in its restructuring effort. In its petition, it listed assets and debts both ranging from $10,000,001 to $50,000,000. FISHERMAN'S WHARF: Files Schedules of Assets and Liabilities ------------------------------------------------------------ Fisherman's Wharf of Venice, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $15,820,000 B. Personal Property $150,000 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $8,035,192 E. Creditors Holding Unsecured Priority Claims $533,449 F. Creditors Holding Unsecured Non-priority Claims $5,473,220 ----------- ----------- TOTAL $15,970,000 $14,041,861 Venice, Florida-based Fisherman's Wharf of Venice, Inc. filed for Chapter 11 on May 4, 2010 (Bankr. M.D. Fla. Case No. 10-10694.) H. Bradley Staggs, Esq. at Bush Ross, P.A., assists the Debtor in its restructuring effort. In its petition, it listed assets and debts both ranging from $10,000,001 to $50,000,000. FLYING J: Plaintiff Says Plan Improperly Releases Hot Fuel Claims ----------------------------------------------------------------- James Graham objects to the Joint Plan of Reorganization of Flying J Inc. and its debtor-affiliates. Mr. Graham contends that the Plan contains impermissible release of so-called Hot Fuel Claims that originally was hidden in the court order approving the sale of Flying J equity interests and other assets to Pilot Travel Centers LLC. Mr. Graham and other plaintiffs commenced 25 putative class actions in 20 states against Flying J and other motor fuel retailers. The complaints allege that the defendants shortchanged retail purchasers of gasoline and diesel products by selling them motor fuels at temperatures higher than the industry-standard temperatures of 60 degrees Fahrenheit. The sale of hot fuel is significant because motor fuel takes up more volume -- and has correspondingly less energy -- at a higher temperature. As a result, a trucker or consumer purchasing fuel at a temperature above the standard receives less fuel than had the fuel been sold at 60 degrees. The case is In re Motor Fuel Temperature Sales Practice Litigation (MDL 1840; Case No. 07-MD-1840-KHV-JPO). The Hot Fuel Litigation has been consolidated for pretrial purposes in the U.S. District Court for the District of Kansas. The Hot Fuel Litigation seeks damages and injunctive relief based on breach of contract, unjust enrichment, civil conspiracy, breach of warranty, deceptive trade practice statutes and consumer protection statutes of various states. The plaintiffs seek total damages estimated to be as much as $300 million from Flying J. The defendants, which include Flying J, Pilot, COP, and BP Products North America, Inc., failed in their bids to dismiss the complaints. Litigation has been stayed with respect to Flying J following its bankruptcy. Mr. Graham also points out that under the parties' contribution agreement, Pilot presumably agreed to assume liability for the Hot Fuel Claims. However the Plan proposes to take that away by releasing Pilot from liability on the Hot Fuel Claims that it purportedly assumed. Mr. Graham also note the Plan's releases are broad enough to apply not only to the Hot Fuel Claims but also to any other hot fuel claims against Pilot and other defendants who are included in the Plan releases. "If the Debtors truly want to confirm a nonrepairment plan, then the rights of the Hot Fuel Claims must ride through this bankruptcy unaltered," Mr. Graham says. Flying J's plan proposes to repay all creditors in full from the proceeds of the sale of its 250 travel plazas to Pilot, for a combination of cash and stock valued at $1.6 billion. The Plan provides that lenders and creditors will be paid in cash. All Equity interests are unaltered. Judge Mary F. Walrath of the U.S. Bankruptcy Court in Wilmington, Del., has scheduled a hearing to consider confirmation of the plan for July 6. Mr. Graham is represented in Flying J's bankruptcy cases by: Thomas G. Macauley, Esq. ZUCKERMAN SPAEDER LLP 919 Market Street, Suite 990 Wilmington, DE 19801 Telephone: (302) 427-0400 Facsimile: (302) 427-8242 - and -- Graeme W. Bush, Esq. ZUCKERMAN SPAEDER LLP 1800 M. Street, NW, Suite 1000 Washington, DC 20036 Telephone: (202) 778-1800 Facsimile: (202) 822-8106 FORUM HEALTH: Hearing on Sale of Assets Continued Until August 10 ----------------------------------------------------------------- The Hon. Kay Woods of the U.S. Bankruptcy Court for the Northern District of Ohio has continued until August 10, 2010, at 9:30 a.m., prevailing Eastern Time, the approval of the sale of Forum Health's assets to Ardent Health Services Inc. The hearing will be held at the Nathanial R. Jones Federal Building and U.S. Courthouse, 10 East Commerce Street, Youngstown, Ohio. Objections, if any, are due no later than 8:00 a.m., on August 9. Objections to the assumption and assignment motions, including cure costs will be filed with this Court no later than 4:00 p.m., on July 21, 2010. As reported in the Troubled Company Reporter on June 25, 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, Tennessee, 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. 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 FRONTIER COMMS: Highlights New Wins in Commercial Business Sector ----------------------------------------------------------------- Frontier Communications Corporation's focus on the commercial market is delivering industry-leading products and services to its national customer base. According to Pete Hayes, Frontier's Executive Vice President, Commercial Sales and Support, "Our commercial business is positioned for increased growth and profitability as Enterprise, Public Sector, Medium and Small Businesses customers seek cost- effective end-to-end solutions." He added that the planned completion of the company's transformational transaction with Verizon Communications on July 1st will increase Frontier's service capabilities, geographic coverage and customer demand. "Our Commercial segment has great market potential, an outstanding group of existing and potential customers and a solid business pipeline." Hayes noted these highlights: -- Penn Foster, based in Pennsylvania, selected Frontier to deploy Multiprotocol Label Switching (MPLS) for 63 sites. MPLS directs and carries data from one network node to the next, making it easy to create "virtual links" between distant nodes. Penn Foster, which offers programs of study via distance learning, chose Frontier for its responsiveness and the effectiveness of its design. In a separate project, Frontier upgraded Penn Foster's communications systems to VoIP networking and application software. The company cited Frontier's committed relationship, system design/deployment, and financial flexibility as critical to its selection. -- First Columbia Bank in Pennsylvania chose Frontier to deploy MPLS for a nine-site network. It switched to Frontier based on the company's responsiveness, design plans and value positioning. -- AICUP (Association of Independent Colleges and Universities of PA) contracted with Frontier for Internet Access and a Wide Area Network (WAN) consortium of 13 institutions of higher education in northeast and southeast Pennsylvania. The relationship has significant technological and financial benefits for the parties. Frontier was selected after an 18- month review process and the company's cooperation with AICUP's mission, the relationship between the parties and the creativity of design and funding were decisive factors. -- In Georgia, the Bulloch County School District awarded Frontier a contract to install a VoIP communications system for a network of 22 schools. The contract award took into account Frontier's responsiveness, creativity of design and relationship with the district. -- The Fairmont School District in Minnesota sought to increase its capabilities while adhering to a budget. Frontier met its needs with a high-quality design that was an upgrade of Centrex to District Wide Communications to Premise Based VoIP. -- Consulted about 911 upgrades in New York's Fulton and Montgomery counties, Frontier installed a shared 911 system that enhances communications capabilities, reduces costs and pre-positions the customers for advanced offerings. The system's geo-diversity provides critical redundancy: an outage at one 911 center means calls will be seamlessly and expeditiously picked up by the other center. -- In Arizona, Frontier worked closely with local police and emergency centers to install call processing solutions that put new PBXs at Public Safety Answering Points, bringing the latest call traffic and statistical reporting within the centers. -- Frontier installed seven Mitel 3300 PBXs for the Kingman, Arizona Unified School District, enabling 4-digit dialing throughout a district serving 7,200 students. The school district's purchase was based upon a strong relationship with Frontier's local account manager and its local operations, advanced technology and responsiveness. -- The Sunrise Ski Resort in Arizona's White Mountains, owned and operated by the White Mountain Apache Tribe, now has a Mitel 3300 phone system installed by Frontier that seamlessly links the resort's lodge and hotel. -- Frontier has agreements in place to deploy fiber-optic based Dense Wavelength Division Multiplexing (DWDM) to several enterprise-level accounts in its Rochester, New York market that will generate more than $10 million in revenue over the next few years. DWDM technology provides highly reliable solutions in support of significant bandwidth requirements by placing data from different sources together on an optical fiber, with each signal carried at the same time on its own separate light wavelength. -- Many Frontier customers run mission-critical applications in the company's SAS 70 Secure Cyber Center in Rochester, New York. This 10,000 square foot, state-of-the-art facility offers premier data center security and storage applications, a self-healing SONET network, scalable Internet connectivity through Frontier's core network infrastructure, and redundant IP backbone. A tour of the center is available at http://www.frontier.com/cybercenter/tour/flash_content/index.html "Frontier offers its Commercial customers a robust end-to-end network, equipment and management platform for mission-critical applications, communications and services," said Hayes. "We offer high-touch customer support and dedicated account managers who know how to design custom solutions to meet our customers' desktop, IT and communication needs." About Frontier Communications Frontier Communications Corporation, headquartered in Stamford, Connecticut, is the fifth largest wireline telecommunications company in the U.S., serving more than 7 million access lines in primarily rural areas and small- and medium-sized cities. * * * As reported in the Troubled Company Reporter on June 29, 2010, Fitch Ratings has upgraded Frontier Communications Corporation's Issuer Default Rating to 'BB+' from 'BB' in anticipation of the July 1, 2010 closing of the acquisition of certain access lines from Verizon Communications, Inc. To complete the transaction, New Communications Holdings Inc., a subsidiary of Verizon Communications Inc., will merge with and into Frontier. FRONTIER DRILLING: Moody's Puts Junk Rating Under Review -------------------------------------------------------- Moody's Investors Service affirmed Noble Corporation's Baa1 senior unsecured rating following the announcement that it has acquired privately held FDR Holdings Limited, owner of Frontier Drilling ASA for $2.16 billion. Moody's also placed Frontier's Caa3 rating under review for possible upgrade. The rating outlook is stable. Noble's Baa1 senior unsecured rating is supported by its leading market position in the offshore market and relatively strong asset quality, its drilling backlog that provides high visibility to the company's earnings and cash flows, and its low financial leverage. The Baa1 rating also considers the relatively high proportion of jackup rigs in Noble's fleet and the cyclical nature of the contract drilling industry, which is tied to the level of capital spending by oil and gas producers. Noble continues to benefit from strong demand for offshore drilling rigs. Prior to the transaction Noble's rig fleet was well diversified geographically and by rig type. This transaction enhances its position. Noble acquires a high quality asset base: six floating rigs (four of which are deepwater-capable and three of which are arctic-capable); two newly built Bully-class rigs under construction with a 50% joint venture with Shell; and a 6,500 foot dynamically positioned FPSO. Concurrent with the acquisition, Noble entered into an agreement with Shell that enhances and adds to the Frontier and Shell relationship, which strengthens contracted backlog. The Frontier acquisition adds $2 billion to Noble's backlog, of which, 99% is with Shell. As a result of the acquisition of Frontier, the added agreement with Shell, and Noble's current firm backlog position, after the close of the Frontier acquisition firm backlog increases to $14.1 billion. The rating outlook is stable and reflects Moody's expectation that management will continue to exercise operational and fiscal conservatism. The $2.16 billion acquisition increases Noble's leverage from below 1.0x to approximately 1.8 x, on a net basis leverage is 1.5x. Moody's expects Noble will quickly reduce its total leverage as the $14.1 billion backlog converts into cash. The last rating action for Noble was on May 23, 2006, when Moody's assigned a Baa1 rating. The last rating action on Frontier was April 21, 2010, when Moody's downgraded Frontier's Corporate Family Rating to Caa2 from Caa1, the Probability of Default Rating to Caa3 from Caa2, and the second lien term loan to Caa3 from Caa2. Moody's affirmed the ratings for the senior first secured credit facility at B1. The ratings remained under review for further downgrade. Noble Corporation based in Zug, Switzerland. Frontier Drilling ASA, incorporated in Norway with an administrative office in Houston, Texas, is a subsidiary of privately owned FDR Holdings Ltd., an offshore contract drilling company. FRONTIER DRILLING: S&P Shifts Watch on 'CCC' Rating to Positive --------------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch implications on Frontier Drilling ASA, including on the 'CCC' corporate credit rating, to positive from developing. The revision in CreditWatch implications follows the announcement that Noble Corp. (A-/Stable/--) will acquire FDR Holdings Ltd.. S&P rates Frontier Drilling ASA, an entity of FDR. The agreement is subject to customary closing conditions, including regulatory approval. Under the terms of the agreement, Noble will acquire FDR in a $2.16 billion cash transaction (including assumption of $637 million in Frontier's long-term debt). The combination will provide Noble with an additional $2 billion backlog. At the same time, Noble is signing a master agreement with Royal Dutch Shell PLC (Shell) that will increase Noble's backlog by an additional $4 billion. This master agreement is contingent upon Noble's closing of the Frontier acquisition. Key elements in resolving the CreditWatch will be Frontier's credit profile and its strategic importance to Noble and whether Noble will provide a guarantee, integrate Frontier into the company, or leave it as a stand-alone subsidiary. S&P expects to comment on any notching implications upon or near the close of the transaction. FURNITURE FACTORY: Court OKs Planned to Manage GOB Sales -------------------------------------------------------- Business Journal of San Antonio reports that the U.S. Bankruptcy Court for the Northern District of Texas authorized Planned Furniture Promotions Inc. to manage the going-out-of-business liquidation sales of all the stores of Furniture Factory Warehouse. Planned Furniture agreed to allow up to 100% of the deposits made by the Company's customers to be applied to merchandise sales during the bankruptcy liquidation sale, according to the report. Based in Dallas, Furniture Factory Warehouse is a furnishings retailer. It filed for bankruptcy protection on May 28, 2010. GARDEN WAY: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Garden Way Apartments, LLC aka Garden Villa Apartments, LLC 2671 Fairfield Street Sacramento, CA 95815 Bankruptcy Case No.: 10-36720 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Ronald H. Sargis Debtor's Counsel: Oxana V. Kozlov, Esq. 649 Dunholme Way Sunnyvale, CA 94087 Tel: (408) 431-4543 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 creditors together with its petition. The petition was signed by Irene Anokhin, managing member. Debtor-affiliates filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Irene Anokhin 10-04049 03/15/10 GARY MCLEAN: Ex-Wife Wants Case Dismissed or Converted to Ch. 7 --------------------------------------------------------------- Kathleen Ann McLean, ex-wife Gary McLean, and creditor, asks the U.S. Bankruptcy Court for the Western District of Washington to dismiss or convert the Chapter 11 case of Gary R. McLean to one under Chapter 7 of the Bankruptcy Code. Ms. McLean related that Mr. McLean was in default on his support obligation since November 2009. Mr. McLean is obligated to pay $26,000 per month in spousal maintenance. A total of $39,000 in maintenance was due since the bankruptcy filing, with $13,000 of that amount due on the date of filing, April 20. An additional $13,000 was due on June 5. Seattle, Washington-based Gary R. McLean filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. W.D. Wash. Case No. 10-14407). Jeffrey L. Smoot, Esq., at Lasher Holzapfel Sperry & Ebberson PLLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. GARY MCLEAN: Files Schedules of Assets and Liabilities ------------------------------------------------------ Gary R. McLean filed with the U.S. Bankruptcy Court for the Western District of Washington its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $3,340,000 B. Personal Property $27,202,095 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $19,372,612 E. Creditors Holding Unsecured Priority Claims $74,601 F. Creditors Holding Unsecured Non-priority Claims $100,484 ----------- ----------- TOTAL $30,542,095 $19,547,697 Seattle, Washington-based Gary R. McLean filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. W.D. Wash. Case No. 10-14407). Jeffrey L. Smoot, Esq., at Lasher Holzapfel Sperry & Ebberson PLLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. GARY MCLEAN: Taps Lasher Holzapfel as Bankruptcy Counsel -------------------------------------------------------- The Hon. Thomas T. Glover of the U.S. Bankruptcy Court for the Western District of Washington authorized Gary R. McLean to employ Lasher Holzapfel Sperry & Ebberson, P.L.L.C., as counsel. LHSE is expected to represent Debtor in all proceedings before this court and to perform other legal services as required by the Debtor. To the best of the Debtor's knowledge, LHSE is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Seattle, Washington-based Gary R. McLean filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. W.D. Wash. Case No. 10-14407). Jeffrey L. Smoot, Esq., at Lasher Holzapfel Sperry & Ebberson PLLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. GARY MCLEAN: U.S. Trustee Unable to Form Creditors Committee ------------------------------------------------------------ The Office of the U.S. Trustee for Region 18 notified the U.S. Bankruptcy Court for the Western District of Washington that it was unable to appoint an official committee of unsecured creditors in the Chapter 11 case of Gary R. McLean. The U.S. Trustee explained that there were insufficient indications of willingness from the unsecured creditors to serve in the committee. Seattle, Washington-based Gary R. McLean filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. W.D. Wash. Case No. 10-14407). Jeffrey L. Smoot, Esq., at Lasher Holzapfel Sperry & Ebberson PLLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. GARY REYNOLDS: Case Summary & 6 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Gary Lawrence Reynolds Marie Hazel Reynolds P.O. Box 1602 Everett, WA 98206 Bankruptcy Case No.: 10-17289 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Samuel J. Steiner Debtor's Counsel: Dallas W. Jolley, Esq. 4707 S Junett St Ste B Tacoma, WA 98409 Tel: (253) 761-8970 E-mail: jolleypatricia@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 6 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb10-17289.pdf The petition was signed by Gary Lawrence Reynolds. GENELINK INC: March 31 Balance Sheet Upside-Down by $1 Million -------------------------------------------------------------- Genelink, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $518,927 on $2,221,111 of revenue for the three months ended March 31, 2010, compared with a net loss of $560,229 on $1,972,038 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $1,823,379 in assets and $2,829,931 of liabilities, for a stockholders' deficit of $1,006,552. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6588 Longwood, Florida-based GeneLink, Inc. (OTC BB: GNLK.OB) -- http://www.genelinkbio.com/-- is a genetics-based, personal healthcare and wellness firm that has developed DNA tests that determine an individual's likelihood of developing adverse health conditions (heart, bone, etc.) and susceptibility to accelerated aging over their lifetime. These pre-dispositions to aging and adverse health conditions are determined by measuring DNA variations in each human, called SNPs (snips). GeneLink scientists then formulate products to address these susceptibilities to help decrease the likelihood of the onset of developing adverse health conditions and to help extend their healthy, active lifetimes. GENERAL MOTORS: In Talks With China to Raise SAIC Stake to 44% -------------------------------------------------------------- In hopes of expanding its stake in the Chinese market, General Motors is holding discussions with Southern China's Guangxi Regional Government, with the intent to raise its stake in the SAIC-GM-Wuling minivan joint venture from 34% to 44%, Gasgoo Automotive News reported. SAIC Motor Corp., China's largest local car manufacturer and partner of General Motors Co. and Volkswagen AG, plans to raise 10 million yuan or $1.47 billion in a private placement to increase its world auto market share by building 180,000 vehicles carrying its own brands this year, Bloomberg News reported. SAIC aims to sell 900 million yuan-dominated A shares, and parent, Shanghai Automotive Industry Corp. will buy at least 10% of SAIC shares for 1 billion yuan or more, Bloomberg related. According to Bloomberg, SAIC projects 3,000,000 vehicles sales for 2010, to increase its revenues to 245 billion yuan, from a 2009 income of 140 billion yuan. "Fundraising is of great importance to SAIC right now as it needs to develop next-generation models for its Roewe and MG brands," John Zeng, a Shanghai-based analyst with IHS Global Insight, told Bloomberg. The joint venture, whose presence in the Chinese market is felt better than Shanghai GM, intends to raise its car production capacity and launch a new automotive brand. Shanghai GM is GM's major auto enterprise in China. According to Gasgoo, the mini-vehicle is the fastest selling vehicle in China in 2009, with total sales of 1.1 million units. This is 66% above the preceding year's sales figure. The venture's mini-vehicle sales own more than 50% of GM's total sales in China in 2009, including exports to Brazil under the name of Chevrolet. GM expects to sell over two million units in China this year, Gasgoo said. In a related development, GM China has reported a record sales of 196,004 vehicles for the month of May 2010, overtaking GM U.S.' sales of 167,325 units, 4wheelsnews.com said. The Chinese market has a currently compelling demand for the Buick and Chevrolet, as well as the other GM trademarks. This big slice of market share for GM's products is the main factor that boosted GM's vehicle sales which has reached 1,032,665 for the period from January to May 2010, a 54% increase for the same period last year. The U.S. sales from January to May for the current year was only 882,277, 4wheelsnew.com related. 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: Industry Rebounding, Says UAW President ------------------------------------------------------- "There is strong evidence that the worst is behind us and the industry has clearly rebounded," said outgoing UAW president Ron Gettelfinger during his June 14, 2010 farewell speech at UAW's constitutional convention in Detroit, Michigan, Bloomberg News reported. Gettelfinger, 65, who, has opted to retire after two four-year terms as UAW's topman, has steered UAW when it went to the brink of shrinking due to the economic recession that compelled the major U.S. automakers to offer payouts to their workers in order to survive. He is also behind one of the forces that persuaded the Obama administration to decide to bail GM and Chrysler out of bankruptcy last year, Bloomberg said. Bob King, 63, has been chosen by the UAW's administration caucus to replace Mr. Gettelfinger. Mr. King heads UAW's bargaining with Ford Motors Corp. In a statement given to Bloomberg, Mr. Gettelfinger said that "anti-union forces" and "right-wing conservatives" sought to discredit UAW and the U.S. auto industry when the bailout issue was debated a year ago. "The contempt for the UAW was so deep that some of them were willing to let the industry collapse in hopes that they could destroy us," he said. "We are leaner, yes, but stronger, wiser and more determined." Mr. Gettelfinger credits the Obama administration for the positive outcome of the government's financial intercession of the bankrupt U.S. automakers' plight. According to Bloomberg, Mr. Gettelfinger urged UAW delegates to support Obama and Democrats in the midterm elections in November, saying "We must stand with those who stood with us." 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: Withdraws All Applications for Opel Guarantees -------------------------------------------------------------- General Motors and Opel/Vauxhall have decided to withdraw all applications for government loan guarantees across Europe. In an official statement dated June 16, 2010, Opel noted that there have been no material alterations in the funding requirements of Opel/Vauxhall as set out in the Viability Plan announced seven months ago. The validity and reasons for requesting government guarantees have also not changed, but the process has proven to be much more complex and longer than anticipated and the results are still not finalized or certain. In these circumstances, and given the need to progress the plan quickly, it has been decided to fund the requirements internally. GM's recently improved financial strength has also been a catalyst for making this decision. "We appreciate the support indicated by certain governments, especially the UK and Spain, but we need to move on," said Nick Reilly, President of GM Europe and Chairman of the Management Board of Opel/Vauxhall. "The decision of the German government last week was disappointing and means that the conclusion of these guarantees is again likely to be months away. GM clarified that its funding needs have not changed, and "we were led to believe that loan guarantees made available to other European companies under the EU program to help offset the impact of the global economic crisis, would be equally available to Opel/Vauxhall." But, after a very long process defined by governments, this has turned out not to be the case, Mr. Reilly said. "We are grateful for the decision and support of our parent company, which will allow us to move forward with confidence in this very competitive industry. We cannot afford to have uncertain funding plans and new time-consuming complex negotiations at this time when we need to keep investing in new products and technologies. With these new products and the impact of restructuring, we expect to return to profitability shortly," Mr. Reilly added. As part of a European-wide request, the UK government had committed guarantees for EUR330 million of bank loans and a similar amount had been indicated from Spain. The total amount requested from all European governments had been in the order of EUR1.8 billion. The German federal states have expressed a willingness last week to enter into new negotiations. Two weeks ago, Opel/Vauxhall had signed agreements with its European employee representatives for restructuring the company, labor cost savings and for commitments to product investments. These agreements are not tied to government guarantees. Following its announcement, Opel/Vauxhall will be able to fully concentrate on the implementation of its growth plan, in particular the EUR11 billion investment plan into future products that was announced in February 2010. Opel/Vauxhall products continue to be highly successful in the marketplace, with sales volume consistently beating internal expectations. The new Astra 5-Door version which was introduced at the end of last year, already registered more than 160,000 orders within 6 months -- just 20,000 orders shy of the full-year target of 180,000. For the new Meriva, Opel/Vauxhall received 30,000 orders within just a few weeks. The company continues to be on track for the launch of seven new products this year and another five next year, including the revolutionary new Opel/Vauxhall Ampera. 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) GENTIVA HEALTH: Moody's Confirms 'Ba3' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service confirmed the Ba3 Corporate Family Rating of Gentiva Health Services, Inc. Concurrently Moody's assigned a Ba2 rating to the proposed $925 million credit facility including a revolver, Term Loan A and Term Loan B. Moody's also assigned a B2 rating to the proposed issuance of unsecured notes. Moody's affirmed the Ba3 rating on the existing credit facility and expect to withdraw this rating at the close of the transaction, when the existing facility will be repaid and terminated. This concludes the rating review initiated on May 25, 2010, following the announcement of the acquisition of Odyssey HealthCare Inc. for approximately $1 billion. The outlook for the ratings is stable. The confirmation of the ratings is supported by the favorable scale, geographic diversity and market leadership in both the home health and hospice markets that Gentiva will have post- acquisition. The ratings are also supported by the strong long- term fundamentals in the hospice and home health industries which Moody's believe will support growth and free cash flow generation. While pro forma leverage is high for the Ba3 rating, the rating prospectively incorporates the belief that the company will deleverage meaningfully over the next several years. The ratings are constrained by the considerable increase in financial leverage being taken on for the acquisition of Odyssey as well as ongoing reimbursement and regulatory concerns in both the home health and hospice industries. Due to the change in capital structure that now includes unsecured debt, the Probability of Default Rating is raised to Ba3 from B1, reflecting the assumption of a 50% family recovery rate. Ratings confirmed: * Corporate Family Rating, Ba3 Ratings assigned: * $125 million senior secured revolver due 2015, Ba2, LGD3, 34% * $200 million senior secured term loan A due 2015, Ba2, LGD3, 34% * $600 million senior secured term loan B due 2016, Ba2, LGD3, 34% * $305 million unsecured notes due 2018, B2, LGD5, 88% Ratings upgraded: * Probability of Default Rating, to Ba3 from B1 Ratings affirmed: * $80 million (face value) Senior Secured Revolver, due 2012, Ba3, LGD3, 31% * $370 million (face value) Senior Secured Term Loan B, due 2013, Ba3, LGD3, 31% The Speculative Grade Liquidity Rating is SGL-1. The rating outlook is stable. The last rating action was on May 25, 2010, when Moody's placed the Corporate Family Rating under review for possible downgrade. Gentiva's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record of tolerance for risk. These attributes were compared against other issuers both within and outside of Gentiva's core industry and Gentiva's ratings are believed to be comparable to those other issuers of similar credit risk. Gentiva is a leading provider of home health and hospice services in the US. The company offers direct home nursing and therapies, including specialty programs, as well as hospice care. Gentiva reported revenues of over $1 billion for the twelve months ended April 4, 2010. Odyssey is one of the largest providers of hospice care in the U.S. Hospice services are designed to provide a wide range of care and services to terminally ill patients and their families. At the end of 2009 Odyssey operated 90 Medicare certified hospice programs in 29 states. The company reported revenues of nearly $700 million for the twelve months ended March 31, 2010. GOOD HOME: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Good Home, LLC 293 Debra Court Vineland, NJ 08361 Bankruptcy Case No.: 10-24531 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Jeffrey T. Morris, Esq. Morris, Jobe & Cook, LLC 310 Grant Street, Suite 1412 Pittsburgh, PA 15219 Tel: (412) 281-6181 Fax: (412) 281-6174 E-mail: jmorris@thecooklawgroup.com Scheduled Assets: $1,000,001 to $10,000,000 Scheduled 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 Churungchai Leodwaphan. GREAT LAKES: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Great Lakes AG, LLC 1290 N. Shoop Avenue, Suite 140 Wauseon, OH 43567 Bankruptcy Case No.: 10-09519 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Anthony J. Metz III Debtor's Counsel: Jeffrey M. Hester, Esq. Tucker Hester, LLC 429 N Pennsylvania Street, Suite 100 Indianapolis, IN 46204-1816 Tel: (317) 833-3030 Fax: (317) 833-3031 E-mail: jeff@tucker-hester.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $2,761,016 while debts total $7,925,409. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/insb10-09519.pdf The petition was signed by Willy van Bakel, president. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Union - Go Dairy Leasing, LLC 10-01703 02/17/10 GREEKTOWN HOLDINGS: Faces Obstacles to June 30 Finish Line ---------------------------------------------------------- With WG-Michigan LLC backing out from a management agreement, Greektown Holdings LLC and its debtor affiliates only have a few days left to find a new firm to provide them management services upon the Company's emergence from Chapter 11. The Bankruptcy Court for the District of Michigan has given Greektown Casino up to June 30, 2010, to put everything in order before exiting bankruptcy protection. WG-Michigan, an affiliate of Warner Gaming LLC, withdrew its management and consulting agreement with Greektown Casino last June 7, 2010. Under the deal, WG-Michigan was supposed to provide reorganized Greektown with a new general manager and vice president. Greektown Casino related in a June 10 filing with the U.S. Securities and Exchange Commission that it expects to enter into a management agreement with a substitute manager or to supplement its existing management team after the Effective Date of its Chapter 11 Plan. Any substitute manager or supplement to the existing management team would be subject to the approval of the Michigan Gaming Control Board and any additional applicable regulatory approvals. Until a substitute manager or supplement to the management team is identified and requisite regulatory approvals are obtained, Greektown Casino will continue to be managed solely by its internal management team led by Clifford J. Vallier. WG-Michigan's withdrawal is not the only issue Greektown Casino is facing before exiting bankruptcy. Among other issues, the Company also needs the MGCB to approve (i) gaming licenses, which are needed for the board of directors and new owners of the Company having more than 5% ownership; and (ii) the overall financing plan, Crain's Detroit Business reports. The overall financing plan includes a $30 million revolver loan facility, $385 million in senior notes and a $200 million rights offering, Crain's Detroit Business cites. The MGCB has fixed June 28, 2010, as the date to consider approval of Greektown Casino's application to effectuate the Plan. Another possible complication is an assertion from U.S. Representative Bart Stupak, D-Menominee, who seeks to clarify who is the rightful owner of the land the Sault Ste. Marie Tribe of Chippewa Indians used for the casino. Rep. Stupak raised a concern on whether the Tribe has the right to transfer property that may belong to the U.S. government. Mr. Stupak's queries, however, have been quickly shot down by Allan S. Brilliant, Esq., of Dechert LLP, the Noteholder Plan Proponents' main counsel. Mr. Brilliant pointed out that the Tribe never raised the issue when it had the chance to object to Greektown Casino's Plan of Reorganization and as a result, the issue regarding property transfer was waived. Mr. Brilliant also believes that the U.S. government "view land used for tribal purposes differently than the land used by a tribe to operate a business," Crain's Detroit Business relates. Despite a myriad of obstacles and a dwindling amount of time, Greektown Casino maintains a positive outlook. "We are entering what we hope to be, what we believe to be, the final stretch of the Greektown bankruptcy," said Charles Moore, senior managing director Conway MacKenzie Inc., the Company's lead restructuring adviser, in a interview with Crain's Detroit Business. Upon consummation of the Plan, Greektown Casino will be owned and operated by a new holding entity, Greektown Superholdings, Inc. The Sault Ste. Marie Tribe will no longer have any stake in reorganized company. A new board of directors will also be instituted to oversee the daily activities of the reorganized Greektown. About Greektown Casino Based in Detroit, Michigan, Greektown Holdings, LLC, and its affiliates -- http://www.greektowncasino.com/-- operate world- class casino gaming facilities located in Detroit's historic Greektown district featuring more than 75,000 square feet of casino gaming space with more than 2,400 slot machines, over 70 tables games, a 12,500-square foot salon dedicated to high limit gaming and the largest live poker room in the metropolitan Detroit gaming market. Greektown Casino employs approximately 1,971 employees, and estimates that it attracts over 15,800 patrons each day, many of whom make regular visits to its casino complex and related properties. In 2007, Greektown Casino achieved a 25.6% market share of the metropolitan Detroit gaming market. Greektown Casino has also been rated as the "Best Casino in Michigan" and "Best Casino in Detroit" numerous times in annual readers' polls in Detroit's two largest newspapers. The Company and seven of its affiliates filed for Chapter 11 protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No. 08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the Debtors in their restructuring efforts. Judy B. Calton, Esq., at Honigman Miller Schwartz and Cohn LLP, represents the Debtors as their special counsel. The Debtors chose Conway MacKenzie & Dunleavy as their financial advisor, and Kurtzman Carson Consultants LLC as claims, noticing, and balloting agent. Clark Hill PLC serves as counsel to the Official Committee of Unsecured Creditors. Greektown Holdings listed assets and debts of $100 million to $500 million in its bankruptcy petition. Bankruptcy Creditors' Service, Inc., publishes Greektown Casino Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Greektown Casino and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GREEKTOWN HOLDINGS: Noteholders Win OK for Plan Related Documents ----------------------------------------------------------------- The Noteholder Plan Proponents for Greektown Holdings LLC, including the Official Committee of Unsecured Creditors and Deutsche Bank Trust Company Americas, as indenture trustee for senior notes issued by the Debtors, sought and obtained an order from the Bankruptcy Court in aid of the consummation of the confirmed Noteholder 11 Plan of Reorganization for the Debtors' estates. Among the Plan Proponents are bondholders and holders of prepetition credit agreement claims. They include the John Hancock Strategic Income Fund and certain affiliates, Manulife Global Fund U.S. Bond Fund and certain affiliates, Oppenheimer Champion Income Fund and certain affiliates, Brigade Capital Management, Sola Ltd., and Solus Core Opportunities Master Fund Ltd.; and are referred to the Put Parties. The items the Plan Proponents sought clarification on relate to (1) a settlement agreement with the city of Detroit, (2) provisions for an exit facility, (3) management agreement with Warner Gaming LLC, and (4) the initial officers and directors for Reorganized Greektown, among others. The Debtors, the Noteholder Plan Proponents, and the city of Detroit are parties to a settlement agreement dated February 2010 for the resolution of certain matters, including a development agreement with the City. The Settlement was approved by the Detroit City Council and was subsequently approved by the Bankruptcy Court. Allan S. Brilliant, Esq., at Dechert LLP, in New York, tells Judge Shapero that since the Plan's confirmation in January 2010, the Noteholder Plan Proponents have been working diligently towards consummation of the Plan in anticipation of the June 30, 2010 closing milestone. He notes that the Put Parties have been in frequent communication with the city of Detroit and the staff of the Michigan Gaming Control Board regarding obtaining the requisite approvals to close the transactions contemplated under the Plan. The Plan contemplates an exit financing facility for Reorganized Greektown. Specifically, Reorganized Greektown will have debt financing consisting of a $30 million new Revolving Credit Facility and approximately $385 million in new Senior Secured Notes, in addition to a new equity financing. The Exit Revolver Facility will be entered into on the Plan Effective Date by Reorganized Greektown with all subsidiaries as guarantors and will be secured by a first lien on all assets of Reorganized Greektown. At the time of the Plan's confirmation, the documentation for the Exit Facility was not complete, although detailed terms were contained in the Disclosure Statement and Plan. Mr. Brilliant reveals that the Put Parties have substantially finalized the Exit Facility Documents and have submitted certain of the documents to the MGCB for consideration. In this light and out of an abundance of caution, the Noteholder Plan Proponents seek the Court's approval of the forms of the Exit Facility Documents as consistent with all of the requirements of the Plan, the Confirmation Order, and any other applicable documents. Copies of the Exit Facility Documents are available for free at: http://bankrupt.com/misc/GrktnExitFacDocs.pdf The Put Parties have chosen Warner Gaming LLC to serve as the initial management company of Reorganized Greektown. To the extent the Warner Gaming application has not been approved by the MGCB as of the anticipated June 30, 2010 Plan Effective Date, or if for any reason the Management Agreement with Warner Gaming is not implemented, the Noteholder Plan Proponents seek an order from the Bankruptcy Court of the consummation of the Plan on the Anticipated Effective Date without a third party Management Entity and without a Management Agreement, subject to all applicable regulatory approvals. Moreover, the individuals chosen by the Put Parties in consultation with the other Plan Proponents to serve as initial officers and directors of Reorganized Greektown also await the requisite approvals from the MGCB. They are Freman Hendrix, Michael E. Duggan, Joel I. Ferguson, Benjamin C. Duster IV, John I. Bitove, George Boyer and Yvette E. Landau. To the extent that fewer than all of the potential officers or directors of Reorganized Greektown have received approval from the MGCB on the Anticipated Effective Date, the Noteholder Plan Proponents ask Judge Shapero to approve consummation of the Plan with the number of Potential Directors and Potential Officers that receive required MGCB approvals by the Anticipated Effective Date. Finally, the Noteholder Plan Proponents seek authority to permit Reorganized Greektown to draw on the New Revolving Credit Facility at closing in the event they determine, in consultation with the Debtors, that the draw is necessary and beneficial to Reorganized Greektown. The Noteholder Plan Proponents assert that their requests are consistent with the Plan, are approved by the Confirmation Order and do not constitute modifications of the Plan. Mr. Brilliant avers that the Noteholder Plan Proponents seek approval of their Requests out of an abundance of caution and to advise the Court of the current status of efforts to consummate the Plan consistent with the settlement with the City of Detroit. Mr. Brilliant reports that the Noteholder Plan Proponents have been advised by the Mayor's Office for the City of Detroit that it approves of the Debtors' Requests so long as: -- to the extent Warner Gaming is not the initial management company, a new management company must be proposed to the City for approval by the Mayor and City Council on or before the date that is six months from the Plan Effective Date; and -- until a time as a director from Detroit is appointed to the board of directors, Freman Hendrix will serve as the ombudsman pursuant to the Settlement Agreement. The Mayor's Office has also advised that it intends to submit the relevant matters for the approval of the Detroit City Council prior to the hearing on the Debtors' Request, Mr. Brilliant further reveals. Given that the changes regarding the Management Entity and the Management Agreement are consistent with the Plan and the Mayor's Office has already given its approval, the Noteholder Plan Proponents anticipate that the City Council will also approve those matters prior to the hearing on their Motion. * * * Allan S. Brilliant, Esq., at Dechert LLP, in New York, certified to the Court that no responses or objections were asserted as of June 14, 2010, of the Noteholder Plan Proponents' request to clarify certain items relating to (1) the Debtors' settlement agreement with the city of Detroit, (2) provisions for an exit facility, (3) the management agreement with Warner Gaming LLC, and (4) the identification of initial officers and directors for Reorganized Greektown, among others. Accordingly, Judge Shapero granted the Noteholder Plan Proponents' request and ruled that the Exit Facility Documents are approved as consistent with the Plan, the Confirmation Order, and all other applicable documents. The Court permits the Noteholder Plan Proponents to make any necessary or appropriate modifications or amendments to the Exit Facility Documents consistent with the Plan and Confirmation Order and other applicable documents and agreements. For the avoidance of doubt, Judge Shapero clarifies that any modification or amendment that is consented to by the Noteholder Plan Proponents will be deemed consistent with the Plan, the Confirmation Order, and all other applicable documents and agreements. Reorganized Greektown is authorized by the Court to enter into the Exit Facility Documents, which may be further modified or amended by the Noteholder Plan Proponents consistent with the Plan, the Confirmation Order, and other applicable documents and agreements. The Noteholder Plan Proponents and all other parties necessary for the consummation of the Plan are authorized and directed by the Court to take all actions necessary to consummate the Plan on or prior to June 30, 2010, regardless of whether the Noteholder Plan Proponents determine, based on the Michigan Gaming Control Board's approvals or lack of it, to consummate the Plan (i) with Warner Gaming as the management entity, or (ii) with no third party management entity and no management agreement in place on the Anticipated Effective Date, in which case the current management of the Debtors will manage Reorganized Greektown as of the Effective Date. The Noteholder Plan Proponents and all other parties necessary for the consummation of the Plan are also authorized and directed to take all actions necessary to consummate the Plan regardless of whether the Noteholder Plan Proponents determine, based on MGCB approvals or lack of it, to consummate the Plan (i) with all of the Potential Officers and Potential Directors identified to the Court at the Confirmation Hearing and approved by the Court in the Confirmation Order, or (ii) with fewer than all of the Potential Officers or Potential Directors identified to the Court at the Confirmation Hearing, in which case the Potential Directors that receive MGCB approval will serve as the initial board of directors of Reorganized Greektown and the Potential Officers that receive MGCB approval will serve as the initial officers of Reorganized Greektown. The Noteholder Plan Proponents are authorized to draw on the New Revolving Credit Facility at closing on the Effective Date in the event they deem it necessary, in consultation with the Debtors. About Greektown Casino Based in Detroit, Michigan, Greektown Holdings, LLC, and its affiliates -- http://www.greektowncasino.com/-- operate world- class casino gaming facilities located in Detroit's historic Greektown district featuring more than 75,000 square feet of casino gaming space with more than 2,400 slot machines, over 70 tables games, a 12,500-square foot salon dedicated to high limit gaming and the largest live poker room in the metropolitan Detroit gaming market. Greektown Casino employs approximately 1,971 employees, and estimates that it attracts over 15,800 patrons each day, many of whom make regular visits to its casino complex and related properties. In 2007, Greektown Casino achieved a 25.6% market share of the metropolitan Detroit gaming market. Greektown Casino has also been rated as the "Best Casino in Michigan" and "Best Casino in Detroit" numerous times in annual readers' polls in Detroit's two largest newspapers. The Company and seven of its affiliates filed for Chapter 11 protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No. 08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the Debtors in their restructuring efforts. Judy B. Calton, Esq., at Honigman Miller Schwartz and Cohn LLP, represents the Debtors as their special counsel. The Debtors chose Conway MacKenzie & Dunleavy as their financial advisor, and Kurtzman Carson Consultants LLC as claims, noticing, and balloting agent. Clark Hill PLC serves as counsel to the Official Committee of Unsecured Creditors. Greektown Holdings listed assets and debts of $100 million to $500 million in its bankruptcy petition. Bankruptcy Creditors' Service, Inc., publishes Greektown Casino Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Greektown Casino and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GREEKTOWN HOLDINGS: Plan Tax Effects Determination Approved ----------------------------------------------------------- The John Hancock Strategic Income Fund and certain affiliates; Manulife Global Fund U.S. Bond Fund and certain affiliates; Oppenheimer Champion Income Fund and certain affiliates; Brigade Capital Management; Sola Ltd.; Solus Core Opportunities Master Fund Ltd.; the Official Committee of Unsecured Creditors; and Deutsche Bank Trust Company Americas as indenture trustee for senior notes issued by the Debtors sought and obtained authority from the Bankruptcy Court to allow them or Reorganized Greektown to seek a determination from the Michigan Department of Treasury of the tax effects, under Section 346 of the Bankruptcy Code and the Michigan Business Tax Act, of the confirmed Chapter 11 Plan of Reorganization. John Hancock, Manulife, Sola, Solus and Brigade are holders of bond claims and prepetition credit agreement claims against the Debtors. They are referred to as the Put Parties. The Put Parties, together with Creditors Committee and the Indenture Trustee are the proponents of the Chapter 11 Plan confirmed by the Court on January 22, 2010. The confirmed Plan has yet to be declared effective. Allan S. Brilliant, Esq., at Dechert LLP, in New York, notes that certain conditions precedent must be satisfied for the effective date of the Plan to occur, including: -- all authorizations, consents and regulatory approvals required for the Plan's effectiveness will have been obtained and not revoked, including required City of Detroit or required Michigan Gaming Control Board regulatory approvals and consents; -- as required, Reorganized Greektown's ownership structure, capitalization and management will have been approved by the MGCB and the City of Detroit; -- the Tax Rollback will have become effective; and -- either the Debtors' assumption of the current development agreement with the City of Detroit, or the Debtors' entry into a revised development agreement with the City of Detroit acceptable to the Put Parties that complies with Michigan Law, will have been approved by a final order. Mr. Brilliant relates that the Noteholder Plan Proponents are working diligently to consummate the Plan as soon as possible and have already satisfied certain of the conditions, one of which is the Court's approval of the settlement with the City of Detroit, and the MGCB's approval of the Tax Rollback. However, certain regulatory approvals remain outstanding, he notes. In the event of an actual controversy regarding any determination as may be made pursuant to a request as authorized by the Noteholder Plan Proponents' Request, the Noteholder Plan Proponents or Reorganized Greektown assert that they will be authorized to seek a declaration from the Bankruptcy Court of the tax effects of the Plan after the times set forth in Section 1146(b) of the Bankruptcy Code. Section 1146(b) provides that the court may authorize the proponent of a plan to request a determination, limited to questions of law, by a State or local governmental unit charged with responsibility for collection or determination of a tax on or measured by income, of the tax effects, under Section 346 of the Bankruptcy Code and under the law imposing the tax, of the plan. In the event of an actual controversy, the court may declare the effects after the earlier of: * the date on which the governmental unit responds to the request; or * 270 days after the request. About Greektown Casino Based in Detroit, Michigan, Greektown Holdings, LLC, and its affiliates -- http://www.greektowncasino.com/-- operate world- class casino gaming facilities located in Detroit's historic Greektown district featuring more than 75,000 square feet of casino gaming space with more than 2,400 slot machines, over 70 tables games, a 12,500-square foot salon dedicated to high limit gaming and the largest live poker room in the metropolitan Detroit gaming market. Greektown Casino employs approximately 1,971 employees, and estimates that it attracts over 15,800 patrons each day, many of whom make regular visits to its casino complex and related properties. In 2007, Greektown Casino achieved a 25.6% market share of the metropolitan Detroit gaming market. Greektown Casino has also been rated as the "Best Casino in Michigan" and "Best Casino in Detroit" numerous times in annual readers' polls in Detroit's two largest newspapers. The Company and seven of its affiliates filed for Chapter 11 protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No. 08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the Debtors in their restructuring efforts. Judy B. Calton, Esq., at Honigman Miller Schwartz and Cohn LLP, represents the Debtors as their special counsel. The Debtors chose Conway MacKenzie & Dunleavy as their financial advisor, and Kurtzman Carson Consultants LLC as claims, noticing, and balloting agent. Clark Hill PLC serves as counsel to the Official Committee of Unsecured Creditors. Greektown Holdings listed assets and debts of $100 million to $500 million in its bankruptcy petition. Bankruptcy Creditors' Service, Inc., publishes Greektown Casino Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Greektown Casino and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) HARVEY KALMENSON: Case Summary & 9 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Harvey Kalmenson Catherine R. Kalmenson 4700 Balboa Boulevard Encino, CA 91316 Bankruptcy Case No.: 10-17601 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Geraldine Mund Debtor's Counsel: Joon M. Khang, Esq. Khang & Khang LLP 1901 Avenue of the Stars 2nd FL Los Angeles, CA 90067 Tel: (310) 461-1342 Fax: (310) 461-1343 E-mail: joon@khanglaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Joint Debtors' list of 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-17601.pdf The petition was signed by the Joint Debtors. HMSC CORP: S&P Affirms 'B-' Counterparty Credit Rating ------------------------------------------------------ Standard & Poor's Ratings Services said that it affirmed its ratings on HMSC Corp., including the 'B-' counterparty credit rating. Standard & Poor's also said that the outlook on HMSC remains stable. HMSC is the intermediate holding company of insurance broker Swett & Crawford Group Inc. "The affirmation reflects S&P's belief that Swett & Crawford's financial profile will not materially change, notwithstanding the potential outcome of advanced discussions with Cooper Gay to combine under a new holding company," noted Standard & Poor's credit analyst Polina Chernyak. Swett & Crawford is the third- largest wholesale insurance broker in the U.S., according to Business Insurance's 2009 ranking. London-based Cooper Gay is the fourth-largest reinsurance broker. If at any point it appears that Swett & Crawford is underperforming relative to S&P's coverage metrics, cash flow, and covenant expectations, S&P likely will lower the rating. If, on the other hand, Swett & Crawford improves its competitive profile, debt-servicing capabilities, and earnings over the medium to long term, S&P could consider raising the rating. INAYAT BERGUM: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Inayat Unissa Bergum 3929 West Fifth Street Santa Ana, CA 92703 Bankruptcy Case No.: 10-18608 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: Steven Karlton Kop, Esq. Law Offices of Steven Karlton Kop 1880 Century Park E, Suite 820 Los Angeles, CA 90067 Tel: (310) 721-8557 Fax: (310) 496-2666 E-mail: bluejaylaw@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $3,531,190 while debts total $5,169,837. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-18608.pdf The petition was signed by the Debtor. INDEPENDENCE TAX: Trien Rosenberg Raises Going Concern Doubt ------------------------------------------------------------ Independence Tax Credit Plus L.P. filed its Form 10-K, reporting a net loss of $17.9 million on $7.0 million of total revenue for the year ended March 31, 2010, compared with a net loss of $5.8 million on $6.7 million of total revenue during the same period a year ago. Trien Rosenberg Weinberg Ciullo & Fazzari LLP expressed substantial doubt about Independence Tax's ability as a going concern. The auditor notes that Company's three subsidiary partnerships' net losses aggregated $10,504,227 for 2009 Fiscal Year and $551,341 for 2008 Fiscal Year, and their assets aggregated $6,189,416 and $23,400,218 at March 31, 2010 and 2009, respectively. The Partnership's balance sheet showed $23.1 million in total assets and $42.7 million in total liabilities as of March 31, 2010, for a stockholder's deficit of $19.6 million. A full-text copy of the Partnership's annual report Form 10-K is available for free at http://ResearchArchives.com/t/s?6576 About Independence Tax Based in New York, Independence Tax Credit Plus L.P. is a limited partnership which was formed under the laws of the State of Delaware on November 7, 1990. The general partner of the partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of the General Partner is Related Independence Associates Inc., a Delaware corporation. The ultimate parent of the General Partner is Centerline Holding Company. The partnership was formed to invest as a limited partner in other partnerships that own apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The partnership's investment in each local partnership represents from 98% to 98.99% of the partnership's interests in the local partnership. The partnership originally held ownership interests in twenty-eight local partnerships. The partnership does not intend to acquire additional properties. During the nine months ended December 31, 2009, one local partnership sold its property and related assets and liabilities. As of December 31, 2009, the partnership has sold its limited partnership interest in twelve local partnerships, the property and the related assets and liabilities of four local partnerships and has transferred the deed to the property and the related assets and liabilities of one local partnership. In addition, as of December 31, 2009, two local partnerships are actively being marketed for sale. INSIGHT COMMUNICATIONS: Moody's Pus 'B1' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service assigned a B1 Corporate Family Rating and B1 Probability of Default Rating for Insight Communications Company, Inc., and withdrew the former B1 CFR and B2 PDR for its indirect wholly owned subsidiary, Insight Midwest Holdings, LLC. Additionally, Moody's assigned a B3 rating to Insight's proposed new $400 million issuance of senior unsecured notes and upgraded Insight Midwest's existing senior secured bank credit facility ratings to Ba3 from B1. The rating outlook is Stable, notwithstanding the leveraging and shareholder-friendly nature of the pending transaction, which had previously been incorporated when the outlook was revised to Stable from Positive on May 27, 2010. Assignments: Issuer: Insight Communications Company, Inc. ("Insight") -- Corporate Family Rating, Assigned B1 -- Probability of Default Rating, Assigned B1 -- $400 Million (proposed at launch) of Senior Unsecured Notes due 2018, Assigned B3, LGD6 - 91% Upgrades: Issuer: Insight Midwest Holdings, LLC ("Insight Midwest") -- $250 Million (proforma amount, reduced from $260 Million initially) Senior Secured (stock only) Revolving Credit Facility due 2014 (extended from 2012), Upgraded to Ba3, LGD3 -- 39% from B1, LGD3 -- 30% -- $385 Million ($215 Million remaining; est. $145 Million proforma remaining) Senior Secured (stock only) Term Loan A due 2013, Upgraded to Ba3, LGD3 - 39% from B1, LGD3 -- 30% -- $1.8 Billion ($1.215 Billion remaining) Senior Secured (stock only) Term Loan B due 2014, Upgraded to Ba3, LGD3 -- 39% from B1, LGD3 -- 30% Withdrawals: Issuer: Insight Midwest Holdings, LLC -- Corporate Family Rating, Withdrawn, previously rated B1 -- Probability of Default Rating, Withdrawn, previously rated B2 The rating outlook is stable. Proceeds from the new bond offering will be used to pay a one-time $300 million dividend to shareholders and to repay Revolver and/or Term Loan A indebtedness. The upgrade of the Insight Midwest bank credit facility ratings to Ba3 follows application of Moody's Loss Given Default Methodology, specifically in consideration of the now junior-ranking capital in the form of the new senior unsecured debt being raised at the ultimate parent company, which affords debt cushion for secured creditors in an event of default scenario. The bank credit facility ranks senior to the new notes and benefits from the enhanced loss absorption afforded by a larger amount of unsecured debt that now exists beneath it, as reflected in the lower LGD and expected loss rates, and higher ratings, for the Insight Midwest debt relative to the junior- ranking senior unsecured notes of Insight. The B3 rating for the senior unsecured notes reflects their effective and structural subordination to the secured debt and their junior-ranking position in the capital structure, behind the senior secured credit facility and all current and potential subsidiary claims. The B1 CFR continues to broadly reflect high financial leverage, comparatively low margins and an increasingly competitive operating environment, all of which are exacerbated by the company's relatively small scale. The relative stability of the pay TV distribution business model, generally solid operating performance and correspondingly strong deemed underlying enterprise value associated with the company's well-clustered cable systems, however, along with the a deemed good liquidity profile serve, all serve to support the B1 CFR. Given Moody's expectation that leverage will remain elevated over the intermediate term, particularly in consideration of the now public shareholder distribution plan, the likelihood of an upgrade of the CFR to Ba3 (relative to when the rating outlook was Positive prior to reverting to Stable in May 2010) has reduced. Nevertheless, Moody's believes that Insight's fundamental strengths, including its well-clustered customer population and upgraded systems, should allow the company to remain solidly positioned in the B1 rating category. Proforma debt-to-EBITDA leverage approximating 6x (as of 3/31/2010, incorporating Moody's standard adjustments) is high for the rating and a company of this size, but Moody's expect leverage will drop to a more moderate level in the low-5.0x range in 2011 as EBITDA grows with continued RGU growth. The Stable rating outlook incorporates Moody's expectation that Insight will continue to generate good levels of free cash flow and will reduce and sustain debt-to-EBITDA leverage under 5.5x, as mid-to-high single-digit growth rates of revenue are realized and EBITDA continues to grow. The outlook also assumes that the company will maintain a good liquidity profile and refrain from any further large debt-financed shareholder distributions. The last rating action was on May 27, 2010 when Moody's affirmed its ratings for Insight Midwest and revised the rating outlook to Stable from Positive. Insight is a domestic cable TV multiple system operator serving approximately 785 thousand customers (including almost 723 thousand basic video subscribers), mainly in Kentucky and in parts of Indiana and Ohio. Insight Midwest Holdings, LLC ("Insight Midwest") is a wholly owned indirect operating subsidiary of Insight. The company generated revenue of approximately $1 billion for the twelve-month period ended March 31, 2010. INSIGHT COMMUNICATIONS: S&P Puts 'B-' Rating on $400 Mil. Notes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned New York City-based cable TV operator Insight Communications Co. Inc.'s $400 million senior notes due in 2018 its issue-level rating of 'B-' (two notches lower than the 'B+' corporate credit rating on the company). The notes will be issued under Rule 144A without registration rights. The recovery rating on this debt is '6', indicating S&P's expectation of negligible (0% to 10%) recovery for noteholders in the event of a payment default. The company plans to use note proceeds to pay a $300 million special dividend to its private shareholders and to pay down bank debt. Contingent upon the sale of the $400 million notes, the $260 million revolving credit facility of subsidiary Insight Midwest Holdings LLC will be downsized to $250 million, with a maturity extension from 2012 to 2014. S&P's corporate credit rating on Insight is 'B+' and the rating outlook is stable. The rating reflects the company's aggressive financial profile, loss of scale economies following the 2008 dissolution of its partnership with Comcast Corp., and a mature video subscriber base. Tempering rating factors include Insight's position as the still-leading pay-TV supplier in most of its markets and recent favorable operating results. The stable rating outlook recognizes good revenue visibility and adequate liquidity, but private-equity ownership constrains upgrade potential. Ratings List Insight Communications Co. Inc. Corporate credit rating B+/Stable/-- New Rating Insight Communications Co. Inc. $400M Rule 144A unsecured notes B- Recovery Rating 6 INTERNATIONAL TOBACCO: Case Summary & 7 Largest Unsec Creditors --------------------------------------------------------------- Debtor: International Tobacco Partners, Ltd. 1010 Northern Boulevard, Suite 240 Great Neck, NY 11021 Bankruptcy Case No.: 10-74894 Chapter 11 Petition Date: June 25,2010 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Alan S. Trust Debtor's Counsel: Gary B. Sachs, Esq. Sachs & Associates, PLLC East Tower 15th Floor 1425 RXR Plaza Uniondale, NY 11556-1425 Tel: (516) 280-3666 Fax: (516) 663-6785 E-mail: gsachs43@gmail.com Scheduled Assets: $975,000 Scheduled Debts: $4,274,650 A list of the Company's 7 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nyeb10-74894.pdf The petition was signed by Jeffrey Avo Uvezian, company's president. INTERNET BUSINESS: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Internet Business Systems, Inc. dba IBS Safeworld (In Australia Only) 18900 Teller Avenue Irvine, CA 92612 Bankruptcy Case No.: 10-18592 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Robert N. Kwan Debtor's Counsel: Paul S. Nash, Esq. 38 Technology Drive, Suite 250 Irvine, CA 92618-2301 Tel: (949) 727-9041 Fax: (949) 727-9040 E-mail: paulsnash@sbcglobal.net Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of creditors together with its petition. The petition was signed by Alan Metcalfe, president. JEFFREY BAKER: Case Summary & 9 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Jeffery J. Baker 435 140th Ave. NE Bellevue, WA 98005 Bankruptcy Case No.: 10-17259 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Karen A. Overstreet Debtor's Counsel: Larry B. Feinstein, Esq. Vortman & Feinstein 500 Union St Ste 500 Seattle, WA 98101 Tel: (206) 223-9595 E-mail: feinstein2010@gmail.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 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb10-17259.pdf The petition was signed by Jeffery J. Baker. JERMAX INC: Case Summary & 14 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Jermax, Inc. dba Gulf & Northern Trading Corporation dba Philadelphia Stainless 2201 Mt. Ephraim Ave. Bldg 90 Camden, NJ 08104 Bankruptcy Case No.: 10-29397 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court District of New Jersey (Camden) Judge: Gloria M. Burns Debtor's Counsel: Arthur Abramowitz, Esq. Cozen O'Connor 457 Haddonfield Road Libertyview Building, Suite 300 Cherry Hill, NJ 08002 Tel:(856) 910-5000 E-mail: aabramowitz@cozen.com Scheduled Assets: $5,862,575 Scheduled Debts: $7,652,693 A list of the Company's 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-29397.pdf The petition was signed by Robert P. Carter, company's chief financial officer. JESUP & LAMONT: To Cut Staff After FINRA Halts Trading Operations ----------------------------------------------------------------- Dow Jones Newswires' John Kell reports that Jesup & Lamont Inc. announced it would terminate all non-essential personnel and stop paying nearly all salaries about a week after the small investment bank and brokerage firm received a notice to stop making trades. Dow Jones relates the Financial Industry Regulatory Authority last week ordered Jesup & Lamont to stop trading, except for liquidations, because of its securities subsidiary's capital deficiency. Jesup & Lamont said it was taking steps to regain permission to restart transactions. "But the company's announcement on Tuesday seemed to suggest those efforts were so far unsuccessful," according to Mr. Kell. He says Jesup & Lamont did note that it "continues to engage in dialogue with Finra with respect to compliance with the net capital rules." Except for the continuation of salaries to a limited staff, according to Dow Jones, Jesup & Lamont said all salaries and draws have been terminated. All remaining officers will report directly to the company's audit committee. According to the report: -- Chief Executive Alan Weichselbaum will remain at the company, while former Executive Chairman Steven Rabinovici will remain as a non-executive chairman of the board; Both will remain at the company on a non-salaried basis; -- Chief Financial Officer William Holub will oversee the financial affairs of the parent; -- Mark Wilton has resigned from the board for health reasons while Donald Wojnowski resigned for personal reasons. Founded in 1877, Jesup & Lamont began as a partnership formed by two financiers -- James Jesup and Lansing Lamont. The Rockefeller Center complex in New York was constructed with funds partially underwritten by the firm. The firm most recently had 125 brokers and 200 total employees. JIT MANN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Joint Debtors: Jit R. Mann Nirmal Mann 1417 Misty Moat St. Las Vegas, NV 89117 Bankruptcy Case No.: 10-21782 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Arun Gupta, Esq. 800 N. Rainbow Blvd, #208 Las Vegas, NV 89107 Tel: (702) 493-1059 Fax: (702) 543-3937 E-mail: attorney@theguptalawfirm.com Scheduled Assets: $555,937 Scheduled Debts: $1,104,290 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-21782.pdf The petition was signed by Jit R. Mann and Nirmal Mann. KENAN ADVANTAGE: Moody's Assigns 'Ba3' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service assigned ratings to Kenan Advantage Group, Inc.; corporate family rating of Ba3 and probability of default rating of B1. Moody's also assigned a rating of Ba3 to the planned of $450 million Senior Secured Credit Facility. The outlook is stable. These are first time ratings of Kenan Advantage. The credit facility comprises a $250 million term loan due 2016, a $125 million delayed draw term loan also due 2016, and a $75 million revolving credit that expires 2015. Both the revolving credit and delayed draw term loan will be un-drawn on close. Proceeds from the $250 million term loan will be used, in combination with approximately $470 million of equity, to fund the purchase of Kenan Advantage by private equity sponsors Goldman Sachs Capital Partners and Centerbridge Partners. The rating considers Kenan Advantage's leading position as a provider of liquid bulk transportation services and logistics to the fuels, chemical and food markets with nationwide service, and the relative stability of earnings and cash flow that the company has experienced throughout the economic cycle. The B1 probability of default rating also takes into account a sizeable, but manageable amount of debt that the company carries resulting from the acquisition by GSCP and Centerbridge. With $250 million of funded debt on close, Moody's estimates pro forma leverage (based on LTM March 2010 operating results) of under 4 times, which is somewhat strong for this rating, but an EBIT/Interest coverage metric of under 1.5 times, which is weak for the rating. It is expected that both these metrics will improve through the year to levels more consistently supportive of the current rating, as slow demand growth is anticipated for the company's fuel and chemical distribution businesses. However, ratings are also negatively impacted by the company's acquisitive nature. The company has grown in size and geographic breadth over the past few years primarily through the purchase of other operators. Although Kenan has demonstrated the capability to integrate smaller regional operations that it had acquired in the past, this growth model will continue to add an element of risk to the company's credit profile going forward. Moreover, Moody's views the $125 million of delayed-draw term loan available to Kenan as an indication that the company intends to pursue potentially sizeable acquisitions going forward, and will likely make use of additional debt to partially fund such acquisitions. Leveraged acquisitions may impede the improvement of credit metrics over time, although Moody's does not expect that such activity will move these metrics materially out of the range associated with the company's current ratings. The senior secured credit facility is rated Ba3, the same as the corporate family rating, both of which are rated one notch above Kenan's B1 Probability of Default Rating. This difference is due to the assignment of a 65% family recovery rate to the secured bank facilities as the only debt in Kenan's debt structure. Kenan's liquidity position is viewed as good over the coming 12 month period. The company is expected to maintain relatively strong cash balances. With capital investment requirements that are modest in comparison to the trucking sector in general, Kenan is expected to generate positive free cash flow over the near term. Internal sources of liquidity are supplemented by the company's new $75 million revolving credit facility, due 2015. Moody's does not expect the company to be reliant on this facility over the near term, although it may be utilized from time to time to cover fleet investment requirements. This facility contains financial covenants, most notably maximum leverage and minimum fixed charge coverage requirements. Moody's anticipates that the company will be comfortably compliant with these covenants over the near term. The stable outlook reflects Moody's expectations that Kenan Advantage's credit metrics will improve as the company integrates recent acquisitions and freight demand steadily grows through 2010. The stable outlook also assumes that, to the extent the company does make use of the delayed draw term loan for acquisitions, such purchases represent companies or assets that can quickly be integrated into the company's operations and contribute cash flow and operating income at approximately the same rate as the current businesses, without material deterioration in Kenan's credit metrics. Ratings or their outlook could be revised downward if market conditions were to unexpectedly deteriorate in 2010, or if the company were to undertake a large leveraged acquisition involving an undue level of additional debt. Ratings could be lowered if Debt to EBITDA were to exceed 4 times, if EBIT to Interest were remain below 2 times, or if availability under the revolving credit facility were to diminish due to high usage or covenant restrictions. Ratings could be adjusted upward if, after taking into account acquisitions, the company could demonstrate improving margins and reduction of debt through use of free cash flow. EBIT to Interest would need to exceed 3 times with Debt to EBITDA sustained below 3.5 times to warrant an upgrade to a PDR of Ba3. Assignments: Issuer: Kenan Advantage Group, Inc. -- Probability of Default Rating, Assigned B1 -- Corporate Family Rating, Assigned Ba3 -- Senior Secured Bank Credit Facility, Ba3 (LGD3, 35%) Kenan Advantage's ratings were assigned by evaluating factors Moody's believes are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) Moody's projections of the company's performance over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Kenan Advantage's core industry and Kenan Advantage's ratings are believed to be comparable to those of other issuers of similar credit risk. Kenan Advantage Group, Inc., headquartered in North Canton, OH, is provider of liquid bulk transportation services and logistics to the fuels, chemical and food markets. KRISPY KREME: Shareholders Elect 3 Director Nominees ---------------------------------------------------- Krispy Kreme Doughnuts Inc.'s shareholders elected each of the director nominees nominated by the Company's Board of Directors as Class II directors with terms expiring in 2013. The nominees were: * Charles A. Blixt * Lynn Crump-Caine * Robert S. McCoy, Jr. The Securities and Exchange Commission filing also said that the shareholders ratified the appointment of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for the fiscal year ending January 30, 2011. About Krispy Kreme Based in Winston-Salem, North Carolina, Krispy Kreme Doughnuts Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/-- is a retailer and wholesaler of doughnuts. The company's principal business, which began in 1937, is owning and franchising Krispy Kreme doughnut stores where over 20 varieties of doughnuts are made, sold and distributed and where a broad array of coffees and other beverages are offered. Kremeworks, LLC, which is 25%-owned by KKDI, has failed to comply with certain financial covenants related to its indebtedness, a portion of which matured, by its terms, in January 2009. Kremeworks has requested that the lender waive the loan defaults resulting from the covenant violations and refinance the maturing indebtedness. In the event the lender is unwilling to do so and declares the entire indebtedness immediately due and payable, the Company could be required to perform under its guarantee. Krispy Kreme Doughnuts said Kremeworks could have insufficient cash flows from its business to service the indebtedness even if it is refinanced, which might require capital contributions to Kremeworks by the Company and the majority owner of Kremeworks -- which has guarantees of the Kremeworks indebtedness roughly proportionate to those of the Company -- for Kremeworks to comply with the terms of the any new loan agreement. * * * As reported by the Troubled Company Reporter on September 30, 2009, Standard & Poor's Ratings Services revised its ratings outlook on Krispy Kreme Doughnuts to stable from negative. The outlook revision incorporates S&P's expectation that the company will have adequate liquidity in the near term based on S&P's expectation of its performance in the near term, its current cash position, and covenant cushion. S&P affirmed the 'B-' corporate credit rating. While the sales pressure will continue, S&P expects the declines to decelerate and profitability to somewhat stabilize or, at the very least, allow the company to remain covenant compliant in the current and next fiscal year. L3 LLC: Voluntary Chapter 11 Case Summary ----------------------------------------- Debtor: L3,LLC 750 Bloomfield Ave West Caldwell, NJ 07006 Bankruptcy Case No.: 10-29456 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Rosemary Gambardella Debtor's Counsel: Ira S. Kornstein, Esq. 24 Park Avenue West Orange, NJ 07052 Tel: (973) 736-4007 Fax: (973) 736-4033 E-mail: iskesq@aol.com Estimated Assets: $0 to $50,000 Estimated Debts: $500,001 to $1,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Shayne Michaelis, managing partner. LEHMAN BROTHERS: Asks for Nod of Deal With Silver Lake, et al. -------------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors seek court approval of a settlement agreement that would authorize LBHI to sell its stake in Silver Lake Credit Fund LP. Under the deal, SL Credit's general partner, Silver Lake Financial Associates LP or a third party buyer will pay LBHI 92.5% of its capital account. In return, SL Financial will drop its claim against LBHI. SL Financial's claim stemmed from LBHI's guarantee obligations to SL Credit, which resulted from the obligations of the company's foreign affiliate, Lehman Brothers International (Europe), to SL Credit. LBHI's capital account is being maintained by SL Financial for the company's capital contribution as limited partner of SL Credit. The account is valued at $127,529,417 as of April 30, 2010. Lori Fife, Esq., at Weil Gotshal & Manges LLP, in New York, says the settlement allows LBHI to get near full recovery of its capital account while avoiding the costs and delay that may result from challenging the terms of its partnership agreement with SL Credit through a judicial proceeding. The settlement is formalized in a 22-page agreement, a copy of which is available at: http://bankrupt.com/misc/LBHI_AgreementSilverLake.pdf The Court will consider the proposed settlement at the July 14, 2010 hearing. Deadline for filing objections is July 7, 2010. 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) LEHMAN BROTHERS: Has Paid $830,576,000 to Firms as of May 31 ------------------------------------------------------------ Lehman Brothers Holdings Inc. disclosed these cash receipts and disbursements of the company, its affiliated debtors and other controlled entities for the month ended May 31, 2010: Beginning Cash & Investments (05/01/10) $17,376,000,000 Total Sources of Cash 1,640,000,000 Total Uses of Cash (620,000,000) FX Fluctuation (38,000,000) --------------- Ending Cash & Investments (05/31/10) $18,359,000,000 LBHI reported $2.4 billion in cash as of May 1, 2010, and $2.344 billion in cash as of May 31, 2010. The monthly operating report also showed that from September 15, 2008 to May 31, 2010, a total of $830,576,000 had been paid to professionals, including ordinary course professionals employed by the Debtors, the Official Committee of Unsecured Creditors, the Chapter 11 examiner and the Fee Examiner. Of the amount, Alvarez & Marsal LLC, the Debtors' turnaround manager, raked in $296,010,000, while Weil Gotshal & Manges LLP, the Debtors' lead bankruptcy counsel, earned $190,746,000. A full-text copy of the May 2010 Operating Report is available for free at http://bankrupt.com/misc/LehmanMORMay2010.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Proposes to Transfer Servicing Rights to Aurora ---------------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors seek court approval to transfer to Aurora Bank FSB the company's servicing rights to a portfolio of loans sponsored by Fannie Mae. LBHI services about 40,000 residential mortgage loans with an outstanding principal amount of about $8.8 billion. The proposed transfer is part of a settlement made earlier by LBHI and Aurora Bank to support the latter's business plan to conduct mortgage loan origination, purchase and sale. The settlement was reached after the Office of Thrift Supervision, Aurora Bank's primary regulator, issued a directive imposing serious restrictions on the bank's sources of funding and origination of new loans because of its diminishing capital level. LBHI has equity interest in Aurora Bank with a reported value of about $642 million, which it is trying to protect. As part of the transfer of the servicing rights, Fannie Mae will not require assumption of responsibility by the assignee for the obligations of LBHI as seller with respect to the underlying loans. Fannie Mae will also approve Aurora Bank and Aurora Loan Services LLC, the bank's subsidiary, as its seller or servicer. This may include approval of Aurora Bank as seller for retail originations immediately upon the transfer of the servicing rights, and approval of the bank as seller for correspondent originations in case the settlement is completed. LBHI's attorney, Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in Houston, Texas, says the transfer of the mortgage servicing rights without the ongoing exposure for seller obligations will improve the marketability of the servicing rights to third parties. "Fannie Mae's approval of the bank for retail and correspondent originations will achieve an important goal of the bank's business plan and will increase the value of the bank's business that would flow to LBHI for the benefit of its creditors," Mr. Perez says in court papers. After the transfer of the mortgage servicing rights to Aurora Bank is completed before the August 1, 2010 deadline, the bank will sell the acquired servicing rights to Fannie Mae for about $26 million. The Court will consider the proposed transfer at the July 14, 2010 hearing. Deadline for filing objections is July 7, 2010. 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) LEHMAN BROTHERS: Seeks to Sell New Silk Stake to Berkeley --------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors ask the U.S. Bankruptcy Court for the Southern District of New York to approve an agreement authorizing the sale of LBHI's stake in a private-equity fund to Berkeley Investment Ltd. Under the deal, LBHI will sell its limited partnership interest in New Silk Route PE Asia Fund LP in return for payment of $441,226 from Berkeley, which will also assume the company's outstanding and future obligations to contribute capital to the equity fund. Meanwhile, the fund's general partner, New Silk Route PE Associates L.P., will drop its claim against LBHI, which stemmed from the company's failure to contribute capital to NSRP Asia. LBHI decided to sell its stake because of its failure to provide capital to NSRP Asia, which made a series of capital calls to its investors since October 2008. Under an April 27, 2007, partnership agreement between NSRP Associates and LBHI, NSRP Asia is entitled to sell LBHI's stake on its behalf if the company defaults on a capital call. As of September 15, 2008, the unpaid portion of LBHI's commitment was $97 million. "If LBHI does not enter into the agreement, it will likely not recover any amount on account of its interest and, indeed, will face a significant claim," says LBHI's attorney, Lori Fife, Esq., at Weil Gotshal & Manges LLP, in New York. The deal is formalized in a 22-page agreement, a copy of which is available at http://bankrupt.com/misc/LBHI_AgreementNewSilk.pdf The Court will consider approval of the agreement at the July 14, 2010 hearing. Deadline for filing objections is July 2, 2010. 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) LEHMAN BROTHERS: Proposes Settlement With Heritage Fields --------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated ask the U.S. Bankruptcy Court for the Southern District of New York to approve a settlement with Heritage Fields El Toro LLC. Under the deal, LBHI will receive payment of about $125 million from Heritage in return for assigning to State Street Bank and Trust Company its debt interest in the Heritage Fields project, a 3,723-acre masterplan development in California owned by Heritage. LBHI will also be granted a cash flow participation equal to 10% of all residual cash flow after Heritage's equity holders receive a return of their stake in the project. The deal also requires LBHI to exchange releases with respect to the claims of LBREM REIT Holdings LLC and El Toro LLC, and the lawsuit brought against the company by State Street Bank. LBREM REIT's and El Toro's claims stemmed from the conversion of a $650 million participation into a corporate loan, with LBHI serving as the lender. The corporate loan is secured by LBREM REIT's membership interests in El Toro. The $650 million was part of the $775 million mortgage loan that El Toro provided to Heritage that was participated to Lehman ALI Inc. About $200 million of the $650 million participation was eventually sold to State Street Bank. A copy of the term sheet outlining the terms of the settlement is available at http://bankrupt.com/misc/LBHI_TermSheetHeritage.pdf LBHI's attorney, Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in Houston, Texas, says the settlement provides LBHI with a "significant recovery" on account of its debt interest in the project while retention of the interest could result otherwise. "The project continues to have substantial costs associated with it which need to be funded," Mr. Perez says in court papers. "In order to realize any profit on account of its investment, LBHI would have to continue to fund these costs which would amount to a significant investment." Mr. Perez further said that it would take years before LBHI could recover any profit from its debt investment even if it continues to provide funding for the project. In connection with the settlement, LBHI also seeks court approval to provide interim financing to the Heritage Fields project by purchasing up to $32 million of participation in the $775 million mortgage loan from El Toro, to be repaid in full upon the closing of the settlement. The $32 million will be used to fund the costs of the Heritage Fields project, which must be paid prior to the closing of the settlement, according to Mr. Perez. Mr. Perez points out that LBHI chose to structure the funding of those costs through the acquisition of the $32 million participation because it would provide the company and its creditors with the most security. He says the participation is secured by a "first priority security interest" in the Heritage Fields project and will be paid off prior to substantially any other interest in the project. The Court will consider the proposed settlement at the July 14, 2010 hearing. Deadline for filing objections is July 7, 2010. 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) LEHMAN BROTHERS: Wants to Enforce Stay on Greenbrier Minerals ------------------------------------------------------------- In December 2005, Lehman Commercial Paper Inc. and Greenbrier Minerals LLC entered into a credit agreement whereby LCPI provided Greenbrier with an initial credit commitment of $10 million. The parties entered into an amendment to that Credit Agreement in which LCPI provided Greenbrier with an initial credit commitment of $94 million. The members of Greenbrier, including LCPI, entered into an Amended and Restated Operating Agreement under which LCPI was given 49,000 Class D Units in Greenbrier and 49% of the voting and sharing ratios of Greenbrier. As a result of its Membership Interests, LCPI has the right to appoint one manager to Greenbrier's board of manager. Corinne Ball, Esq., at Jones Day, in New York, relates that in December 2009 and in connection with a negotiation of a joint sale and sharing agreement, William Karis, a member of the Board, alleged that a result of LCPI's bankruptcy filing, LCPI was no longer member of Greenbrier. In May 2010, the Board decided by a majority of votes to terminate Joseph Turley III as Greenbrier's chief executive officer. This decision was made because Mr. Turley notified LCPI and the Board that Midland Trail Resources, LLC, would not participate in continued negotiations for a joint sale of Greenbrier and Midland, according to Ms. Ball. On May 29, 2010, Greenbrier asserted that LCPI's Membership Interests in the company ceased under the Delaware LLC Act upon LCPI's bankruptcy filing and, as a result of the loss of the Membership Interests, the Board did not have proper authority to act on behalf of the company because it no longer had a proper voting quorum to conduct company business, Ms. Ball discloses. "Tellingly, Greenbrier asserted this position only after the Board decided to terminate the CEO and after a break-down of negotiations between Greenbrier and LCPI, in its capacity as the sole secured creditor of Greenbrier regarding the potential sale of the company," Ms. Ball stresses. Greenbrier's misguided negotiating tactic however not only misinterprets Delaware law and the Operating Agreement but also prevents the Board from taking actions that may become necessary to ensure the safety of company employees and the proper operation of its coal mines, she contends. Ms. Ball emphasizes that the Operating Agreement expressly provides that Greenbrier may purchase the interests of a debtor- member and membership interests are not automatically terminated upon the member's bankruptcy. Greenbrier did not purchase LCPI's Membership Interests, she says. Since LCPI's Membership Interests and related rights, including the right for LCPI's votes to be counted to permit the Board to conduct company business, are property of LCPI's bankruptcy estate, Greenbrier's unauthorized acts are violations of LCPI's automatic stay, she argues. For those reasons, LCPI asks the Court to direct Greenbrier to comply with the automatic stay by: (i) honoring all previously taken and future Board actions as permitted under the Operating Agreement; and (ii) ceasing any further efforts to deny LCPI of its Membership Interests or any related rights, including voting rights. 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) LEHMAN BROTHERS: Wants to Establish Asset Disposal Procedures ------------------------------------------------------------- Lehman Brothers Holdings Inc. and its debtor affiliates sought and obtained the Court's authority, pursuant to Sections 105(a) and 363(b) of the Bankruptcy Code and Rules 6004(h) and 9019(a) of the Federal Rules of Bankruptcy Procedure: -- to establish procedures pursuant to which they may sell, transfer, assign, convey, spin-off, grant a lien upon, encumber, charge or otherwise dispose of certain assets, including real property owned by the Debtors, and other real estate assets, in connection with existing commercial mortgage loans, commercial mezzanine loans, residential mortgage loans, repurchase facilities and other loans and similar facilities either owned by the Debtors or in which the Debtors have a direct or indirect debt or equity investment or other interest; and -- to modify the reporting requirements set forth in the order establishing procedures to: * restructure; * make new or additional debt or equity investments in; and * enter into settlements and compromises in connection with existing real estate investments, dated November 23, 2009. As is customary in the real estate industry, the Debtors, in their capacity as lenders or equity holders, may determine that circumstances warrant disposing all or a portion of certain Real Estate Investments through various means, including selling either for cash or for other consideration, or otherwise transferring, assigning, or spinning-off an investment, pledging an interest in an investment to secure new obligations, or entering into partnerships, joint ventures or similar arrangements with respect to certain investments. As part of those Dispositions, the Debtors may determine that circumstances warrant entering into settlements and compromises with borrowers, guarantors, sponsors, lenders, investors, business partners, joint ventures, brokers and any other person with an interest in, or in the proceeds of, a Real Estate Investment or its equity interests, including the forgiveness of debt and conveyance of direct or indirect interests in real property, which includes the release of collateral, borrowers, guarantors and sponsors. Shai Waisman, Esq., at Weil Gotshal & Manges LLP, in New York, asserts that Real Estate Disposition Transactions, where appropriate, are intended to generate a greater likelihood of maximum recovery on the original investment and, concomitantly, recoveries for the Debtors' bankruptcy estates and creditors. As the Debtors are currently in the process of liquidating their estates, Mr. Shai contends that entering into Real Estate Disposition Transactions can be an effective manner in which to opportunistically monetize certain assets to realize a gain in value, or protect against asset loss and value deterioration. Prior to the Petition Date, the Debtors undertook Real Estate Disposition Transactions in the ordinary course of their business. The Debtors propose to continue to undertake these activities with respect to Real Estate Investments in a manner substantially consistent with their prepetition practices, subject to the proposed procedures, and without the need for obtaining Court approval of each transaction. The Debtors believe that seeking specific Court approval to each Real Estate Disposition Transaction is expensive, time-consuming, cumbersome and highly inefficient. Accordingly, the Debtors sought permission to implement these procedures: (a) The Debtors may enter into and consummate a Real Estate Disposition Transaction involving a Real Estate Investment having an aggregate estimated recovery amount of up to and including $25 million without further Court order or approval of or notice to any other party, provided that the Debtors will provide notice to the Official Committee of Unsecured Creditors of the Real Estate Disposition Transactions to which a Debtor is a party as soon as practicable but in no event later than promptly following the closing of the transactions; (b) If a Real Estate Disposition Transaction to which a Debtor is a party involves a Real Estate Investment having an aggregate Estimated Recovery Amount of greater than $25 million but less than or equal to $100 million, the Debtors will provide to the Creditors Committee a summary of the proposed transaction, identifying the salient terms of the transaction. The Creditors Committee will have 10 business days to object to the transaction, provided that if the Creditors Committee seeks additional information regarding the transaction, its objection period will be suspended until the requested information has been provided; (c) If a Real Estate Disposition Transaction involves a Real Estate Investment having an aggregate Estimated Recovery Amount of greater than $100 million, the Debtors will be required to file a motion with the Court seeking approval of that transaction; and (d) The ability of the Debtors to carry out the actions set forth in the proposed procedures will not override any applicable notice, consent or other rights that any third parties may have pursuant to agreements with the Debtors. As part of the procedures, the Debtors will file with the Court, on a quarterly basis, a report identifying: -- the number of Real Estate Disposition Transactions during the prior three calendar months; -- the aggregate Estimated Recovery Amount of all Real Estate Investments subject to the Real Estate Disposition Transactions; and -- with respect to Real Estate Disposition Transactions having an aggregate Estimated Recovery Amount of greater than $25 million but less than or equal to $100 million: * the city in which the asset related to the Real Estate Disposition Transaction is located; * to the extent the consideration received by the Debtors for a Real Estate Disposition Transaction is cash, the dollar amount of consideration; and * to the extent the consideration received by the Debtors for Real Estate Disposition Transaction is not cash, the nature of the consideration received as "other." 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) LEXI DEVELOPMENT: Filing Could Result to $8MM Loss for Bank ----------------------------------------------------------- Lexi Development Company, Inc., developer of the Lexi Bayview, filed for Chapter 11 on June 23, 2010 (Bankr. S.D. Fla. Case No. 10-27573). It said that assets and debts range from $10,000,001 to $50,000,000. Paul Brinkmann at Business Journal at South Florida reports that the Chapter 11 filing could result in an $8 million loss for its unsecured creditor Great Florida Bank that financed a $56 million construction loan to the Company. The filing came after a foreclosure by secured noteholder Lexi North Bay, an affiliate of RAM Realty. The remaining secured debt to RAM is $10.1 million, according to Business Journal. Peter Russin, Esq., at Mellan Russin & Budwick, represents the Company in its restructuring effort. LOUISIANA SYSTEM: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Louisiana System Build Homes, LLC P.O. Box 79 St. Martinville, LA 70582 Bankruptcy Case No.: 10-50971 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Western District of Louisiana (Lafayette/Opelousas) Judge: Robert Summerhays Debtor's Counsel: William C. Vidrine, Esq. 711 W. Pinhook Road Lafayette, LA 70503 Tel: (337) 233-5195 Fax: (337) 233-3897 E-mail: williamv@vidrinelaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Aubrey G. Shoemake, Sr., company's president, director. MAJESTIC STAR: Court Extends Ch. 11 Plan Filing Until August 20 --------------------------------------------------------------- The Majestic Star Casino, LLC, et al., have asked the U.S. Bankruptcy Court for the District of Delaware to extend the Debtors' exclusive periods to file a Chapter 11 plan of reorganization and solicit votes thereon by 60 days, or until August 20. The Court previously extended the Debtors' exclusive period to propose a Chapter 11 plan until June 21. The Debtors and their key creditors are actively and cooperatively working to address outstanding legal and business issues with the shared goal of filing a viable plan by mid-August, before the expiration of the 60-day extension of exclusivity sought herein. The Debtors' key constituencies, the official committee of unsecured creditors, the Bank of New York Trust Company, N.A., as indenture trustee for holders of the Debtors' 9 '/2% senior secured notes due 2010, and Wells Fargo Foothill, Inc., as administrative agent under the Loan and Security Agreement dated as of October 7, 2003, have informed the Debtors they consent to the extension requested by the Debtor. About Majestic Star The Majestic Star Casino, LLC -- aka Majestic Star Casino, aka Majestic Star -- is based in Las Vegas, Nevada. It is a wholly owned subsidiary of Majestic Holdco, LLC, which is a wholly owned subsidiary of Barden Development, Inc. The Company was formed on December 8, 1993, as an Indiana limited liability company to provide gaming and related entertainment to the public. The Company commenced gaming operations in the City of Gary at Buffington Harbor, located in Lake County, Indiana on June 7, 1996. The Company is a multi-jurisdictional gaming company with operations in three states -- Indiana, Mississippi and Colorado. The Company filed for Chapter 11 bankruptcy protection on November 23, 2009 (Bankr. D. Del. Case No. 09-14136). The Company's affiliates -- The Majestic Star Casino II, Inc., The Majestic Star Casino Capital Corp., Majestic Star Casino Capital Corp. II, Barden Mississippi Gaming, LLC, Barden Colorado Gaming, LLC, Majestic Holdco, LLC, and Majestic Star Holdco, Inc. -- also filed separate Chapter 11 petitions. Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. James E. O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP are the Debtors' Delaware counsel. Xroads Solutions Group, LLC, is the Debtors' financial advisor, while EPIQ Bankruptcy Solutions LLC are the Debtors' claims and notice agent. The Majestic Star Casino, LLC's balance sheet at June 30, 2009, showed total assets of $406.42 million and total liabilities of $749.55 million. When it filed for bankruptcy, the Company listed up to $500 million in assets and up to $1 billion in debts. MALIBU ASSOCIATES: Court Extends Plan Filing Period Until Sept. 3 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California extended, at the behest of Malibu Associates, LLC, the exclusive period to file a Chapter 11 plan until September 3, 2010. The Debtor's exclusive period to solicit acceptances to the Plan is extended to November 3, 2010. The Court previously extended the exclusive period to file and solicit acceptances of the proposed Chapter 11 Plan until June 3, 2010; and August 3, 2010, respectively. Malibu, California-based Malibu Associates, LLC, dba Malibu Country Club and Malibu Country Club filed for Chapter 11 on November 3, 2009 (Bankr. C.D. Calif. Case No. No. 09-24625). Ashleigh A. Danker, Esq., at Kaye Scholer LLP represents the Debtor in its restructuring effort. According to the schedules, the Company has assets of $42,853,592, and total debts of $35,758,538 as of the petition date. MARDI INVESTMENTS: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Mardi Investments #2, LLC 12808 Fernbank Lane Jacksonville, FL 32223 Bankruptcy Case No.: 10-05524 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Jacksonville) Judge: Paul M. Glenn Debtor's Counsel: Kevin B. Paysinger, Esq. Bankruptcy Law Firm of Lansing J. Roy P.O. Box 10399 Jacksonville, FL 32247 Tel: (904) 391-0030 Fax: (904) 391-0031 E-mail: court@jacksonvillebankruptcy.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 creditors together with its petition. The petition was signed by Jeffrey Buchanan, managing member. MARK BRUNELL: Personal Guarantees on Biz Loans Add to Woes ---------------------------------------------------------- Eric Morath, writing for Dow Jones Daily Bankruptcy Review, reports that personal guarantees of numerous business loans contributed to National Football League quarterback Mark Brunell's Chapter 11 filing: -- Mr. Brunell owes a more than $5 million guarantee of a loan to JWB Owner LLC and more than $4 million in personal loan guarantees to his defunct Champion LLC business. Both companies were involved in real-estate investments. -- Mr. Brunell and his wife also owe nearly $2.9 million on their home in Ponte Vedra Beach, Fla. -- Among the Brunell's monthly expenses are a $5,627 monthly mortgage payment, $1,292 in food expenses for his family of six, and a tithe to his church that "will vary as it is 10% of gross income." Mr. Brunell earned more than $50 million in his NFL career, including $1.6 million last year. According to Mr. Morath, it is not clear if Mr. Brunell intends to sell off any of his assets as part of that plan, but he did list some of his most valuable possessions in court papers. His assets include his Super Bowl ring won in February, rings from his three appearances in the Rose Bowl as a member of the Washington Huskies and his National Championship ring. Mr. Brunell also listed a small collection of guns, including a 12-gauge Remington shotgun and a Winchester 45, and three vehicles, the most valuable of which is a 2008 Ford F-250 pickup truck. Mr. Brunell and his wife each listed a $5,000 monthly salary from Mark Brunell Enterprises Inc. as their primary source of income. The company operates youth football camps. Mr. Brunell, 39, is not currently on an NFL roster. Ponte Vedra Beach, Florida-based Mark Brunell filed for Chapter 11 on June 25, 2010 (Bankr. M.D. Fla. Case No. 10-05550). In court papers, he listed $5.5 million in assets and debts of $24.7 million. MARK BRUNELL: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Mark A. Brunell P.O. Box 1264 Ponte Vedra Beach, FL 32004 Bankruptcy Case No.: 10-05550 About the Debtor: Mr. Brunell was a quarterback for the Jacksonville Jaguars in the National Football League and earned more than $50 million playing football. Mr. Brunell is involved with a real estate project that is being foreclosed upon in Jacksonville Beach and other failed investments in Michigan. Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Robert D. Wilcox, Esq. Wilcox Law Firm Enterprise Park 4190 Belfort Road, Suite 315 Jacksonville, FL 32216 Tel: (904) 281-0700 Fax: (904) 513-9201 E-mail: rwilcox@wilcoxlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 According to the schedules, the Debtor says that assets total $5,519,000 while debts total $24,729,766. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-05550.pdf The petition was signed by the Debtor. MARTIN CADILLAC: Files for Chapter 11 in New Jersey --------------------------------------------------- Martin Cadillac LLC filed for Chapter 11 protection on June 25 in Newark, New Jersey (Bankr. D. N.J. Case No. 10-29520). Bill Rochelle at Bloomberg News reports that the petition was submitted to halt collection actions on guarantees to cover debt of a failed affiliate. Martin Cadillac is the operator of a Cadillac dealership in Englewood Cliffs, New Jersey. Martin had a sister dealership in Yonkers, New York, that went out of business in April. Revenue of $72.6 million in 2008 declined to $60.8 million in 2009. Bloomberg notes that some of the Yonkers dealership's creditors have guarantees issued by the New Jersey dealership. The Chapter 11 petition is designed to stop lawsuits and test the validity of the guarantees. Road to Bankruptcy Jacqueline Palank at Dow Jones Daily Bankruptcy Review, citing a report by The Record in N.J., says Martin Cadillac filed for Chapter 11 after struggling with such challenges as a heavy debt load, legal battles with creditors and a dispute with lender GMAC Financial Services, now known as Ally Financial. Dow Jones says the economy's nosedive sent sales plummeting (gross sales last year totaled $60.8 million, down from $72.6 million in 2008) and the dispute with GMAC took its toll. The lender in April confirmed to the Record that it was reclaiming some of the vehicles it helped Martin purchase, a step the dealer said GMAC took because it had too much inventory on hand. Around the same time, Martin Cadillac closed its Yonkers, N.Y., dealership after GMAC liquidated the inventory. Bankruptcy Sale of Assets According to Dow Jones, Martin Cadillac aims to sell its interest in the dealership as well as the lease on the facility. The Debtor is seeking court permission to take various steps to ensure its continued operations, including continuing selling and servicing vehicles. It doesn't yet have a commitment from GMAC to provide post-bankruptcy financing to allow it purchase new Cadillacs; however, Martin Cadillac said it aims to pursue such a commitment and is "reasonably optimistic" that it will be able to secure the funding. Assets & Debts The Debtor reported $18.4 million in assets and about $23.4 million in debts. Richard Newman at The Record says Edgewater-based Mariner's Bank and Farrell Family Ventures of New York City are the largest unsecured creditors; each are owed about $2.6 million. General Motors LLC is owed $1.9 million and Farrell's Leasing Co. in New York City is owed $323,187, court documents show. Mariner's Bank filed suit in Bergen County on June 17 seeking a $2.6 million judgment against Martin Cadillac to recover a loan. The Record also reports trustees of an employee benefit trust fund last week filed suit in federal court in New Jersey against Martin Cadillac alleging the dealership failed to make more than $6,800 in required contributions to a dental and optical plan between February and May. Separately, Park Avenue Bank filed suit late last year in New York City alleging Martin Cadillac owed the bank more than $9 million. Park Avenue Bank was taken over by federal regulators on March 12 and sold to Valley National Bancorp in Wayne. MARTIN CADILLAC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Martin Cadillac, LLC 374 Route 9W (Sylvan Avenue) P.O. Box 1504 Englewood Cliffs, NJ 07632 Tel: (201) 568-2750 Bankruptcy Case No.: 10-29520 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Rosemary Gambardella Debtor's Counsel: Gregory S. Kinoian, Esq. E-mail: gkinoian@ohdlaw.com Paul S. Hollander, Esq. E-mail: phollander@ohdlaw.com Okin, Hollander & DeLuca, LLP One Parker Plaza Fort Lee, NJ 07024 Tel: (201) 947-7500 Fax: (201) 947-2663 Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Timothy F. Martin, sole member and manager. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Mariner's Bank $2,600,000 935 River Road Edgewater, NJ 07020 Farrell Family Ventures, LLC $2,573,403 430 East 92nd Street New York, NY 10128 General Motors LLC $1,935,000 300 Renaisaance Center Detroit, MI 48265 Foresight Capital $525,000 Management LLC 1511 John Street Fort Lee, NJ 07024 Farrell's Leasing Company $323,187 430 East 92nd Street New York, NY 10128 Bergen County Auto Group $300,000 60 Railroad Avenue, Suite 301 Hasbrouck Heights, NJ 07604 Riderwood Group, Inc. $90,000 American Express $75,762 Cole Scholtz Meisel Forman & $60,761 Leonard, PA Martin Cadillac Fuel & Prep $45,838 Congers Auto Sales Inc. $40,000 Giblin & Giblin $40,000 Mitchell's Auto Body Group, $38,991 Inc. Enterprise Rent-A-Car $36,214 Horizon Blue Cross/Blue $31,755 Shield Chase Bank $26,125 Graf, Repetti & Co, LLP $23,481 Clear Channel Broadcasting $20,360 Mironov, Sloan & Parziale, LLC $17,985 Cobalt Group, The $16,294 MEDIA SERVICES: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Media Services Acquisition Corporation Inc. 5 East 17th Street, 8th FL New York, NY 10003 Bankruptcy Case No.: 10-13396 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Robert M. Fox, Esq. 630 3rd Avenue New York, NY 10017 Tel: (212) 867-9595 Fax: (212) 949-1857 E-mail: robert@rfoxlaw.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 Adam Cohen, chief executive officer. MEDICAL CONNECTIONS: Posts $2.5 Million Net Loss for Q1 2010 ------------------------------------------------------------ Medical Connections Holdings, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2,501,876 on $1,428,591 of revenue for the three months ended March 31, 2010, compared with a net loss of $1,480,328 on $1,529,648 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $2,263,885 in assets, $284,463 of liabilities, and $1,979,422 of stockholders' equity. As reported in the Troubled Company Reporter on April 7, 2010, De Meo, Young, McGrath, CPA, in Fort Lauderdale, Fla., 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 of the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses from operations. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6583 Boca Raton, Fla.-based Medical Connections Holdings, Inc. provides medical recruitment and staffing services. MERIT MINING: Closes Second Tranche of $15.5MM Private Placement ---------------------------------------------------------------- Merit Mining Corp. has closed the second tranche of a previously announced private placement by the Company to Hong Kong Huakan Investment Co., Limited. The second tranche is comprised of 8,955,223 common shares, priced at $0.67 per share, for gross proceeds of $6,000,000. A finder's fee, comprised of a cash payment of $120,000 and 89,552 common shares of the Company, has been paid. In addition, a finder's warrant has been issued for 447,761 common shares, exercisable on or before June 29, 2011, at an exercise price of $0.67 per share. All securities issued pursuant to the second tranche of the private placement are subject to a four month hold period until October 30, 2010. Proceeds of the second tranche will be used to advance the Greenwood Gold project, located near Greenwood, BC and the J&L project, located near Revelstoke, BC, and for general corporate purposes. At the Annual General Meeting of Shareholders of Merit to be held on June 30, 2010, a third nominee of Huakan will be proposed for election to the board of directors. The Company also reported that, in connection with its previously announced proposal under the Bankruptcy and Insolvency Act (Canada), Abakhan & Associates Ltd., the Trustee under the proposal, has issued a Certificate of Full Performance of Proposal to the Company, confirming that the proposal has been fully performed. MOVIE GALLERY: Sales of Inventory Generate $18 Million ------------------------------------------------------ Bill Rochelle at Bloomberg News reports that Movie Gallery Inc. received approval from the bankruptcy judge for two sales of inventory in the Nashville, Tennessee, distribution center that will generate more than $8 million. VPD IV Inc. is buying some 1.2 million Blu-ray and DVD movies for $5.06 million. COKeM International Ltd. is taking over video games and related accessories for $3.03 million. 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). NETWORK COMMS: Will Not Pay $9.4 Million Interest on Sr. Notes -------------------------------------------------------------- Network Communications Inc. said, as a result of continued challenges in the markets that it serves, the lack of a rebound in revenue and the inability to secure a new revolving loan facility to replace the current commitment that expires in November 2010, it elected not to make the June 1, 2010 interest payment of approximately $9.4 million on its 10 3/4 Senior Note due 2013. As a result of missing this payment, the Company's senior secured lenders accelerated all amounts outstanding under the Company's revolving and term loan credit agreements, which in turn triggered an event of default under the Senior Notes indenture and the senior subordinated credit agreement. The Company's total debt outstanding is approximately $296 million. The Company is unable to pay the outstanding debt if it is called. The Company obtained an agreement from its secured lenders dated June 1, 2010, permitting it to have continued access to and use of its cash as it works with its stakeholders to restructure its balance sheet. On June 18, 2010, the Company and its parent, Gallarus Media Holdings, Inc., entered into an amendment to agreement, dated June 18, 2010, by and among the Company, the lenders party thereto, Toronto Dominion (Texas) LLC, as Administrative Agent under the Company's revolving credit agreement and under the Company's senior term loan agreement and as Collateral Agent for the lenders thereunder, and certain other parties thereto to amend the agreement dated June 1, 2010 such that the definition of "Transaction Event" therein was changed from June 20, 2010 to July 12, 2010. All other terms remain the same. The Company expects to have sufficient cash on hand to fund normal course operations as restructuring negotiations progress. About Network Communications Network Communications, Inc. is a publisher of information for the local real estate market in North America. Through its network of online and print distribution points, the Company provides local information to consumers involved in buying, leasing and renovating a home. The Company's reader base selects its print and online publications for advertisements. The Company's advertisers include agents, property management companies, new home builders and home renovation products and service providers. The Company operates in approximately 550 targeted markets, which may overlap geographically across the United States and Canada, and have a monthly print and online reach of approximately 13 million potential consumers seeking to buy, rent or renovate their homes. The Company had a $3.8 million net loss for the quarter ended Dec. 6 on sales of $33.8 million. For nine months ended Dec. 6, the net loss was $10.5 million on sales of $105.2 million. Assets were on the books for $362 million on Dec. 6, with total liabilities of $330 million. Standard & Poor's Ratings Services lowered its corporate credit rating on Lawrenceville, Ga.-based Network Communications Inc. to 'D' from 'CCC' because of the company's failure to make its interest payment due on June 1, 2010, on its 10.75% senior notes due 2013. At the same time, S&P lowered its issue-level ratings on the company's senior secured debt to 'D' from 'CCC', and the rating on the company's senior unsecured notes to 'D' from 'CC'. NCI had $293.9 million total debt outstanding at Dec. 6, 2009. NICOLAS MARSCH: Wants Extension of Exclusive Period to File Plan ---------------------------------------------------------------- Nicolas Marsch III has asked the U.S. Bankruptcy Court for the Southern District of California to extend the time within which the Debtor has the exclusive right to file a plan through and including August 27, 2010, and extend the time within which the Debtor has the exclusive right to solicit and obtain acceptances of such a plan through and including October 26, 2010. The Debtor's case presents the unique situation where successful reorganization is literally hinging on the outcome of one unresolved contingency -- Briarwood Capital, LLC's claims in the Bridges Action. The Debtor is confident the contingency in this case will be resolved in favor of Briarwood and that such a result will result in more than adequate funding to pay all of the Debtor's creditors in full. In August 1997, Mr. Marsch formed HCC Investors, LLC, with Lennar for the purpose of developing a 540-acre parcel located in Rancho Santa Fe, California commonly known as The Bridges. Mr. Marsch had purchased The Bridges property more than 20 years ago. Marsch's 50% interest in HCC was assigned to Briarwood Capital, LLC in 1998. The Bridges was ultimately developed into an exclusive residential community and private country club. In the midst of the overwhelming success of The Bridges, Mr. Marsch discovered significant irregularities in Lennar's accounting for the project. In particular, Lennar was reporting a substantial negative net cash flow in project accountings, allegedly due to increased project costs, all of which are controlled by Lennar. The result was that Lennar projected zero profits to Briarwood for its 50% membership interest and substantial contributions to HCC, despite over $500 million in revenues. In 2006, however, after Lennar had failed to provide an accurate accounting for the project, Briarwood commenced suit in San Diego Superior Court. During the course of the litigation, Briarwood and Mr. Marsch experienced significant cash flow difficulties and were forced to continue to borrow funds to finance the considerable expense of the Bridges Action. In February 2010, Briarwood filed for Chapter 11 bankruptcy protection for the purpose of, among other things, preventing creditors from disposing of its assets and to obtain the breathing spell necessary to obtain a judgment in the Bridges Action. For identical reasons, Mr. Marsch also commenced a Chapter 11 case in February 2010. The Debtor said that its disputes with Lennar found their way into the bankruptcy court as Lennar attempted to continue its prosecution of the Florida Action despite the automatic stay. In addition, Lennar has continued to withhold property of the Briarwood estate post-petition -- approximately $3 million in fees due to Briarwood under the HCC Operating Agreement -- thus forcing the Briarwood to seek an order of the Court for turnover of those funds (the Turnover Adversary). The Debtor has also participated in the continued prosecution of the Bridges Action during the case for the benefit of his estate. After almost 12 months of trial in the Bridges Action, on June 17, 2010, Briarwood and Lennar submitted proposed tentative statements of decision to the court for a ruling on the first of four phases of trial. The parties anticipate the court will issue a ruling with respect to Phase One by approximately July 15, 2010. A favorable ruling will allow Briarwood to explore avenues for financing a plan of reorganization and will shed considerable light on the validity of the various sizeable claims made against the Debtor and Briarwood by Lennar in various pending state court proceedings. The Debtor asks the Court that it be afforded an opportunity to propose a plan of reorganization once the decision in the Bridges Action becomes clear. The Debtor submits that the imminent ruling of the Superior Court on Phase One of the Bridges Action will clarify exactly what can and should be accomplished in Briarwood's case and, thus, what will be distributed to the Debtor. The Debtor says that its case is not complex in terms of business operations, but the issues in the Debtor's case are fairly complex in that the Debtor and Briarwood have been embroiled in litigation with Lennar and with certain of its other creditors. About Nicolas Marsch Rancho Santa Fe, California-based Nicolas Marsch, III, filed for Chapter 11 bankruptcy protection on February 25, 2010 (Bankr. S.D. Calif. Case No. 10-02939). Jeffry A. Davis, Esq., at Mintz Levin Cohn Ferris Glovsky & Popeo, assists the Company in its restructuring effort. The Company listed $100,000,001 to $500,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. NORTH GENERAL HOSPITAL: To File for Bankruptcy on Friday -------------------------------------------------------- The Wall Street Journal's Suzanne Sataline reports that North General Hospital in Harlem plans to seek Chapter 11 protection on Friday and cease admitting patients to its emergency and acute care centers by then, according to the Rev. Calvin O. Butts III, chairman of the hospital's board. The Journal reports that a hospital spokeswoman said, as the hospital shuts down various departments, it will lay off its 1,000 employees. A spokeswoman for 1199 SEIU United Healthcare Workers East, which represents 900 workers, said they had been told positions would be "phased out." According to the report, North General struggled to meet its operating expenses through the year. Mr. Butts said North General has wrestled with debt since the creation of the 190-patient bed hospital. It borrowed money create a medical center on the former site of the Hospital for Joint Diseases. The hospital owes about $200 million, Mr. Butts said. The hospital owes $117 million in state bonds issued in 1989 and is delinquent by $39 million in principal and interest, according to the Dormitory Authority of the State of New York, a public corporation that finances construction projects. The hospital has been late on past payments and used state loans to meet its debt service so bondholders would receive payment, said Paul Williams Jr., the authority's president. According to the Journal, state officials sought to cast North General's future in a sunny light. Gov. David Paterson's office announced that the Institute for Family Health, a large health clinic organization, will lease space on the North General site. Neil Calman, the president and CEO of the institute, couldn't be reached for comment. According to the Journal, the Health and Hospitals Corp., which runs the city's public hospitals, plans to lease space from North General and in about 18 months to transfer 200 long-term acute- care beds from the 1,000 beds at Coler-Goldwater Memorial Hospital on Roosevelt Island. HHC plans to buy North General's parking lot and build a skilled nursing home, Mr. Williams said. The city will finance about $250 million of this on behalf of HHC, said a spokesman for Mayor Michael Bloomberg. Mr. Williams acknowledged that a bankruptcy judge would have to approve any future plans for the hospital. North General Hospital is the second acute-care hospital to fold in New York City in less than two months. St. Vincent's Hospital, the last Catholic hospital in the city, closed in April and filed for bankruptcy. NORTH GLYNN: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------- Debtor: North Glynn United Methodist Church, Inc. 940 Harry Driggers Boulevard Brunswick, GA 31525 Bankruptcy Case No.: 10-20825 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Southern District of Georgia (Brunswick) Debtor's Counsel: C. James McCallar, Jr. McCallar Law Firm P.O. Box 9026 Savannah, GA 31412 Tel: (912) 234-1215 Fax: (912) 236-7549 E-mail: mccallar@mccallarlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 5 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/gasb10-20825.pdf The petition was signed by Tony Caldwell, CEO. NUTRACEA: Files Joint Plan of Reorganization With Creditors ----------------------------------------------------------- NutraCea and its Official Committee of Unsecured Creditors filed with the Bankruptcy Court a proposed Plan of Reorganization and related Disclosure Statement in accordance with the Bankruptcy Code. The Plan represents a major step forward in the Company's efforts to emerge from Chapter 11. NutraCea filed a voluntary petition for reorganization under Chapter 11 protection on November 10, 2009. None of the Company's subsidiaries were included in the bankruptcy filing. W. John Short, NutraCea Chairman and CEO, said "We are pleased to co-sponsor this plan with the Official Unsecured Creditors Committee and thank them for working with us to get it on file in the Court. In addition, we want to thank our customers, vendors, bankers, advisors, attorneys and employees for their ongoing commitment to NutraCea during our reorganization process. Their support has been instrumental in getting our Company to this significant milestone. "Management committed considerable time to the preparation and negotiation of the Plan; we can now redirect our management team's full attention to increasing profitable sales and completing the asset monetization programs that will allow us to repay our creditors. "We look forward to Plan confirmation and our emergence from Chapter 11 later this year as a stronger more focused Company." About NutraCea NutraCea is a world leader in production and utilization of stabilized rice bran. NutraCea holds many patents for stabilized rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally a waste by-product of standard rice processing. Phoenix, Arizona-based Nutracea, a California corporation, filed for Chapter 11 bankruptcy protection on November 10, 2009 (Bankr. D. Ariz. Case No. 09-28817). S. Cary Forrester, Esq., at Forrester & Worth, PLLC, assists the Company in its restructuring effort. The Company listed $50,000,001 to $100,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. ORANGE GROVE: Files Schedules of Assets and Liabilities ------------------------------------------------------- Orange Grove Service, Inc., filed with the U.S. Bankruptcy Court for the Central District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $11,708,077 B. Personal Property $295,659 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $11,131,123 E. Creditors Holding Unsecured Priority Claims $106,200 F. Creditors Holding Unsecured Non-priority Claims $374,014 ----------- ----------- TOTAL $12,003,736 $11,611,337 La Verne, California-based Orange Grove Service, Inc., filed for Chapter 11 bankruptcy protection on March 25, 2010 (Bankr. C.D. Calif. Case No. 10-21336). Ori S. Blumenfeld, Esq., at Wilson & Associates LLP, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. OSCIENT PHARMACEUTICALS: RBS Citizens Objects to Amended Plan ------------------------------------------------------------- BankruptcyData.com reports that RBS Citizens, National Association filed with the U.S. Bankruptcy Court an objection to Oscient Pharmaceuticals' First Amended Chapter 11 Plan of Reorganization. The objection asserts, "While RBS does not object to confirmation of the Plan, in an abundance of caution, RBS files this limited objection in the event the Plan can be read to require the transfer of certain funds in the Collateral Accounts to the Oscient Trustee on the Effective Date of the Plan prior to the Cash Management System being terminated and full allowance of the secured claim of RBS." About Oscient Pharmaceuticals Based in Waltham, Massachusetts, Oscient Pharmaceuticals Corporation -- http://www.antararx.com/and http://www.factive.com/-- and its wholly owned subsidiary, Guardian II Acquisition Corporation, sell two products, ANTARA (fenofibrate) capsules, which is a cardiovascular product indicated for the adjunct treatment of hypercholesterolemia (high blood cholesterol) and hypertriglyceridemia (high triglycerides) in combination with diet, and FACTIVE (gemifloxacin mesylate) tablets, which is a fluoroquinolone antibiotic indicated for the treatment of acute bacterial exacerbations of chronic bronchitis and community-acquired pneumonia of mild to moderate severity. As of December 31, 2008, the Debtors' audited consolidated financial statements reflected total assets of $174.0 million and total liabilities of $255.2 million. Oscient Pharmaceuticals Corporation together with an affiliate filed for Chapter 11 on July 13, 2009 (Bankr. D. Mass. Case No. 09-16576). Judge Henry J. Boroff presides over the case. Charles A. Dale III, Esq., at K&L Gates LLP, represents the Debtors. The Debtors also hired Ropes & Gray LLP as special litigation counsel, and Broadpoint Capital Inc. as financial advisor. PACIFIC ETHANOL: Ca. Superior Court Approves Settlement Agreement ----------------------------------------------------------------- The Superior Court of the State of California for the County of Los Angeles entered an order approving stipulation for settlement of claim in the matter entitled Socius CG II, Ltd. v. Pacific Ethanol, Inc. The Order provides for the full and final settlement of Socius GC II, Ltd.'s $5,000,000 claim against the company. Socius purchased the Claim from Lyles United, LLC, a creditor of Pacific Ethanol, Inc., pursuant to the terms of a Purchase Agreement dated effective as of June 16, 2010 between Socius and Lyles United. The Claim consists of the right to receive $5,000,000 of principal amount of and under a loan made by Lyles United to the company pursuant to the terms of an Amended and Restated Promissory Note dated November 7, 2008 in the original principal amount of $30,000,000. Pursuant to the terms of the Order, on June 21, 2010, we issued and delivered to Socius 7,735,000 shares of the company's common stock, subject to adjustment as set forth in the Order. The Settlement Shares represent approximately 9.90% of the total number of shares of the company's common stock outstanding immediately following the issuance of the Settlement Shares. The total number of shares of the company's common stock to be issued to Socius or its designee in connection with the Order will be adjusted on the 21st trading day following the date on which the Settlement Shares are issued, as follows: i) if the number of VWAP Shares exceeds the number of Settlement Shares initially issued, then the company will issue to Socius or its designee additional shares of the company's common stock equal to the difference between the number of VWAP Shares and the number of Settlement Shares, and ii) if the number of VWAP Shares is less than the number of Settlement Shares, then Socius or its designee will return to the company for cancellation that number of shares as equals the difference between the number of VWAP Shares and the number of Settlement Shares. The number of VWAP Shares is equal to: i) $5,000,000 divided by 80% of the volume weighted average price as reported by Bloomberg LP of the company's common stock over the 20-day trading period immediately following the date on which the Settlement Shares were delivered to Socius, plus ii) $11,949 for Socius' legal fees, expenses and costs incurred through April 30, 2010, plus an amount equal to Socius' reasonable legal fees, expenses and costs incurred after April 30, 2010, with the total divided by the VWAP of the company's common stock over the 20-day trading period immediately following the date on which the Settlement Shares were delivered to Socius. In no event will the number of shares of the company's common stock issued to Socius or its designee in connection with the settlement of the Claim, aggregated with all shares of the company's common stock then owned or beneficially owned or controlled by, collectively, Socius and its affiliates, at any time exceed (x) 9.99% of the total number of shares of the company's common stock then outstanding , or (y) without the company's prior written consent, that number of shares of the company's common stock that would trigger a new limitation under Internal Revenue Code Section 382. About Pacific Ethanol Pacific Ethanol Holding Co. LLC and four affiliates filed for Chapter 11 on May 17, 2009 (Bankr. D. Del. Case No. 09-11713). Judge Kevin Gross handles the case. Attorneys at Cooley Godward Kronish LLP represent the Debtors as counsel. Attorneys at Potter Anderson & Corroon LLP are co-counsel. Epiq Bankruptcy Solutions LLC is the claims agent. Pacific Ethanol Holding disclosed $50 million to $100 million in assets and $100 million to $500 million in debts in its petition. Pacific Ethanol Inc. and its marketing subsidiaries, Kinergy Marketing LLC, and Pacific Ag. Products, LLC, have not filed for Chapter 11 bankruptcy protection. The Company is expected to continue to manage the Plant Subsidiaries under an Asset Management Agreement and Kinergy and PAP are expected to continue to market and sell the Plant Subsidiaries' ethanol and feed production under existing Marketing Agreements. PACIFIC ETHANOL: Subsidiaries Exit Bankruptcy --------------------------------------------- Pacific Ethanol, Inc., disclosed the emergence from bankruptcy of Pacific Ethanol Holding Co. LLC and PEH's four wholly-owned ethanol production facility subsidiaries, effective today, June 29, 2010. The Plant Subsidiaries, which are now owned by a newly formed holding company, will continue to be staffed, managed and operated by the Company under a fee and profit-sharing arrangement negotiated with the owners of New PEHC. In addition, the Company, through its marketing subsidiary Kinergy Marketing, will continue to market ethanol for the Plant Subsidiaries. The Company has eliminated approximately $290 million in debt and other liabilities from its balance sheet. The bankruptcy did not affect the Company's ownership structure and the Company continues to be owned by its existing common and preferred stockholders. The Company has an exclusive option to purchase up to a 25% equity interest in New PEHC for up to $30 million in cash, which is exercisable for a period of 90 days from today. "Thanks to the dedicated work of our employees and the cooperation of our lenders we have achieved this important and positive outcome," said Neil Koehler, the Company's President and Chief Executive Officer. "We believe that our business is well positioned for growth. With the California plants capable of producing the lowest carbon ethanol in the United States, we are now focused on a plan to restart these facilities to provide much needed ethanol to meet California's Low Carbon Fuel Standard." Additional information concerning the Plan of Reorganization of PEH and the Plant Subsidiaries will be reported on Form 8-K, to be filed with the Securities and Exchange Commission. About Pacific Ethanol Pacific Ethanol Holding Co. LLC and four affiliates filed for Chapter 11 on May 17, 2009 (Bankr. D. Del. Case No. 09-11713). Judge Kevin Gross handles the case. Attorneys at Cooley Godward Kronish LLP represent the Debtors as counsel. Attorneys at Potter Anderson & Corroon LLP are co-counsel. Epiq Bankruptcy Solutions LLC is the claims agent. Pacific Ethanol Holding disclosed $50 million to $100 million in assets and $100 million to $500 million in debts in its petition. Pacific Ethanol Inc. and its marketing subsidiaries, Kinergy Marketing LLC, and Pacific Ag. Products, LLC, have not filed for Chapter 11 bankruptcy protection. The Company is expected to continue to manage the Plant Subsidiaries under an Asset Management Agreement and Kinergy and PAP are expected to continue to market and sell the Plant Subsidiaries' ethanol and feed production under existing Marketing Agreements. PARKSIDE PARTNERS: Case Summary & 9 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Parkside Partners, Inc. 17818 Statesville Road Cornelius, NC 28031 Bankruptcy Case No.: 10-31822 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Western District of North Carolina (Charlotte) Judge: J. Craig Whitley Debtor's Counsel: John Wesley Moore, Esq. Law Offices of J. Wesley Moore 1100 Metropolitan Avenue, Suite 206 Charlotte, NC 28204 Tel: (704) 898-4938 Fax: (704) 973-9698 E-mail: wes.moore@jwesleymoorelaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb10-31822.pdf The petition was signed by Phil M. Gandy, Jr. PEACHTREE RESTAURANT: Files for Chapter 11 Bankruptcy Protection ---------------------------------------------------------------- Joyce Smith at The Kansas City Star reports that Peachtree Restaurant filed for Chapter 11 bankruptcy protection, listing assets of $3,275 and liabilities of $372,960 including $203,360 owed to landlord the Cordish Co. and $87,077 to the Internal Revenue Service. Peachtree Restaurant operates a restaurant known for its soul food, traditional Southern cuisine and comfort food. PERRY ELLIS: S&P Assigns 'B-' Senior Unsecured Debt Rating ---------------------------------------------------------- On June 25, 2010, Standard & Poor's Ratings Services assigned its preliminary 'B-' senior unsecured debt rating (two notches lower than the corporate credit rating on Perry Ellis), preliminary 'B-' subordinated debt rating, and preliminary 'CCC+' preferred stock rating (three notches lower than the corporate credit rating) to Perry Ellis International Inc.'s (B+/Negative/--) universal shelf filing. The shelf is a renewal on an existing shelf and also has a $200 million maximum aggregate offering amount. The number of debt securities is currently indeterminate. As of May 1, 2010, Perry Ellis had about $155 million of reported debt. Subsequently, in June 2010, the company retired $25 million of its senior subordinated notes due 2013 in the open market. The preliminary shelf ratings assume that additional indebtedness issued at the senior unsecured level would likely result in the company's current subordinated debt rating being lowered. However, if the company were to issue additional secured debt, S&P would re-evaluate all existing and preliminary issue level ratings. Ratings List Ratings Assigned Perry Ellis International Inc. Senior unsecured debt rating B- (preliminary) Subordinated debt rating B- (preliminary) Preferred stock rating CCC+ (preliminary) Related Rating Corporate credit rating B+/Negative/-- PLAYBOY ENTERPRISES: Downsizes Organizational Structure ------------------------------------------------------- Playboy Enterprises, Inc., is downsizing its organizational structure and expects to record a restructuring charge of approximately $3.0 million in the 2010 second quarter as a result. PEI's Chief Executive Officer Scott Flanders said: "Our goal is to transition Playboy to a brand management company and, in so doing, to more cost-effectively monetize our powerful brand and assets. As we proceed through this transformation, we are aggressively looking for opportunities to streamline our operations, consolidate functions and reduce overhead expense. The downsizing is not a reflection of our employees' talents and work ethic, but rather due to the overall change in the company's strategic direction." The company said it expects the second quarter restructuring will result in cost savings of more than $3.0 million annually. PEI plans to release second quarter earnings on August 5, 2010. About Playboy Enterprises Playboy is one of the most recognized and popular consumer brands in the world. Playboy Enterprises, Inc. is a media and lifestyle company that markets the brand through a wide range of media properties and licensing initiatives. The company publishes Playboy magazine in the United States and abroad and creates content for distribution via television networks, websites, mobile platforms and radio. Through licensing agreements, the Playboy brand appears on a wide range of consumer products in more than 150 countries as well as retail stores and entertainment venues. POWER EFFICIENCY: Closes Private Placement of Series D Stock ------------------------------------------------------------ Power Efficiency Corporation said it consummated a closing of a private placement offering of an aggregate of 313,752 units, each Unit consisting of one share of the Company's Series D Preferred Stock, par value $.0001 per share, and a warrant to purchase 50 shares of the Company's common stock, receiving aggregate consideration of $5,020,000, which included $3,601,200 of cash, the conversion of $1,336,050 of Senior Secured Notes and related accrued interest which the Company issued in May and June of 2010, and $82,750 of deferred compensation. Many of the purchasers of Units were either officers, directors, affiliates or pre-existing stockholders of the Company. The Series D Preferred Stock and Warrants issued in the Offering are initially convertible or exercisable, as applicable, into an aggregate of up to 47,062,800 shares of the Company's common stock. Each share of Series D Preferred Stock is initially convertible into 100 shares of the Company's common stock. The Series D Preferred Stock is convertible at the option of the holder at any time. The Series D Preferred Stock is also subject to mandatory conversion in the event the average closing price of the Company's common stock for any ten day period equals or exceeds $0.50 per share, with average daily volume of at least 50,000 shares, such conversion to be effective on the trading day immediately following such ten day period. The Series D Preferred Stock has an 8% dividend, payable annually in cash or stock, at the discretion of the Company's board of directors. Each Warrant is initially exercisable for up to 50 shares of the Company's common stock at an exercise price of $0.19 per share. About Power Efficiency Las Vegas, Nev.-based Power Efficiency Corporation (OTC BB: PEFF) -- http://www.powerefficiency.com/-- is a clean technology company focused on efficiency technologies for electric motors. On February 18, 2010, Power Efficiency signed a global supply agreement with one of the largest manufacturers and service providers of elevators and escalators. The OEM tested and evaluated the Company's product for over a year. The OEM intends to include the Company's products as one of the standard motor control options for new escalators and to offer it as an energy efficiency retrofit upgrade for existing escalators. The OEM produces thousands of new escalators per year out of factories in Europe and Asia and has service contracts for tens of thousands of escalators throughout the world. The Company's balance sheet at March 31, 2010, showed $2.5 million in total assets and $1.7 million in total liabilities, for a $758,466 million total stockholders' deficit. Sobel & Co., LLC, in Livingston, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations, and the Company has experienced a deficiency of cash from operations. REFCO INC: Claims Objection Deadline Extended to Dec. 7 ------------------------------------------------------- At the behest of the Plan Administrators of Refco, Inc., and its affiliates, Bankruptcy Judge Robert Drain further extended the deadline within which they may file objections to general prepetition and administrative claims, through and including December 7, 2010. The Claims Objection Deadline expired on June 7, 2010. The Plan Administrators aver that they continue to reconcile the remaining outstanding claims filed against their respective chapter 11 estates, and anticipate filing additional claims objections or resolving the outstanding claims over the coming months. Representing the Plan Administrators, Steven Wilamowsky, Esq., at Bingham McCutchen LLP, in New York, relates that since the Petition Date, approximately 14,700 claims, asserting $150 billion in the aggregate, have been filed against the estates. As for the estate of Refco F/X Associates LLC, the Plan Administrators have reconciled approximately 8,300 unfiled claims, resulting in a total claims pool of approximately 23,000 claims. Over the course of the Refco's Chapter 11 cases, approximately 22,900 filed and unfiled claims have been resolved by Court order or by consent of the parties. The Plan Administrators currently have on file pending objections to approximately 60 claims. Mr. Wilamowsky says that as of May 18, 2010, the Plan Administrators are aware of only four claims outstanding for resolution. The four claims remain outstanding pending (i) the Litigation Trust's analysis of potential avoidance issues and coordination with the Plan Administrators; (ii) current ongoing or proposed settlement discussions even without the filing of an objection; and (iii) current ongoing arbitration proceedings. The Plan Administrators believe that all administrative claims have been resolved. However, in an abundance of caution, the Plan Administrators seek to further extend the Administrative Claims Objection Deadline in the event not all administrative claims have been fully resolved, according to Mr. Wilamowksy. The Plan Administrators insist that the requested December 7 Claims Objection Extension will allow the Litigation Trust sufficient time to analyze potential avoidance issues; work on the completion of pending or proposed settlement discussions; and to avoid inadvertent allowance of an invalid claim or administrative expense by lapse of time. It will ensure that all objectionable claims and administrative claims filed have been identified and addressed appropriately, Mr. Wilamowsky tells Judge Drain. The requested Objection Deadlines Extension will complete the claims reconciliation process and to help ensure that all non- meritorious claims are appropriately challenged, he adds. Cantor Objects Cantor Fitzgerald Securities LLC contends that the Plan Administrators have not established "cause" to extend the Claims Objection Deadline as to Cantor's proof of claim for $11,193,466. Francis X. Riley, Esq., at Saul Ewing, LLP, in Princeton, New Jersey, relates that the Cantor Claim springs from a U.S. Dollar Fixed Income Transaction Fee Agreement dated April 1, 2004, as amended, pursuant to a series of related agreements pursuant to which Cantor provided Refco certain services with respect to various financial transactions. Under the Transaction Fee Agreement, Cantor provided to Refco essential financial services with respect to electronic trading and purchase or sale transactions for certain notes, bonds, and treasury swaps. In return, Refco was obligated to pay Cantor certain fees. In July 2005, however, Refco breached the Transaction Fee Agreement by failing to make the required payments, according to Mr. Riley. As a result, Cantor filed the Claim in October 2006. However, Cantor still has not yet received any distribution on it, and neither have the Debtors filed an objection, Mr. Riley tells the Court. The Plan Administrator has represented that the Cantor Claim cannot be adjudicated until an underlying arbitration award involving non-debtor Refco Securities, LLC is determined. However, the proceeding relating to Cantor's Award against Refco Securities will be resolved conclusively in a matter of weeks, according to Mr. Riley. The Cantor Claim has remained unresolved due to the actions of a non-debtor, Refco Securities, and the entity charged with winding down Refco Securities business, Capstone Advisory Group. Capstone, through Refco Securities, has essentially exercised absolute control over when the Debtors can file an objection to the Cantor Claim, let alone resolve the Cantor Claim, Mr. Riley says. "Whether the Cantor Claim is allowed or disallowed should rest within the control of the Debtor, not an interested third party. Capstone, through Refco Securities, continued interference with the Debtors ability to determine and analyze the Cantor Claim should not be countenanced," Mr. Riley asserts. Cantor cites that once the Award is confirmed, the Plan Administrators will be in a position to allow its Claims far before the December 7, 2010 extension date sought. Hence, the extension request as to the Cantor Claim should be denied, Mr. Riley contends. Plan Administrators Respond The Plan Administrators aver that Cantor's opposition to the requested Claims Objection is meritless and should be denied. Cantor's position -- that until the New York State Action is resolved, the Cantor Claim remains disputed -- is irrelevant, says Christopher P. Johnson, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York. Moreover, Mr. Johnson says, Cantor cannot argue that it will be prejudiced by the requested extension of the Claims Objection Deadline. About Refco Inc. Headquartered in New York, Refco Inc. -- http://www.refco.com/-- was a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries were members of principal U.S. and international exchanges, and were among the most active members of futures exchanges in Chicago, New York, London and Singapore. Refco was also a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco was one of the largest global clearing firms for derivatives. The Company had operations in Bermuda. The Company and 23 of its affiliates filed for Chapter 11 protection on October 17, 2005 (Bankr. S.D.N.Y. Case No. 05- 60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Milbank, Tweed, Hadley & McCloy LLP, represented the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its Direct and Indirect Subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates, LLC, on December 15, 2006. That Plan became effective on Dec. 26, 2006. Pursuant to the plan, RJM, LLC, was named plan administrator to reorganized Refco, Inc. and its affiliates, and Marc S. Kirschner as plan administrator to Refco Capital Markets, Ltd. Bankruptcy Creditors' Service, Inc., publishes Refco Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Refco Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: Fraud Victims Reap $135 Million From Executives ---------------------------------------------------------- Preet Bharara, the United States Attorney for the Southern District of New York, announced the distribution of over $135 million plus interest in forfeited property traceable to proceeds of the fraud at the defunct former Manhattan-based financial services company Refco to victims of that fraud. The funds were forfeited in criminal actions, as part of the sentence imposed on individuals convicted of perpetrating the fraud, and pursuant to settlement agreements with former Refco insiders who received proceeds of the fraud. The distribution was made on the recommendation of U.S. Attorney General Bharara, pursuant to the Attorney General's discretionary authority under 18 U.S.C. Section 981(e)(6) to grant petitions for remission. The Attorney General granted petitions for remission submitted on behalf of the victims of the Refco fraud and authorized the transfer of the proceeds of the assets forfeited in this action and related civil actions, plus accrued interest. As alleged in notices of distribution filed on May 26, 2010, previously filed Indictments, and consent orders of forfeiture, and as demonstrated by the proof admitted at various criminal trials: Phillip R. Bennett, Tone N. Grant, Santo C. Maggio, Robert C. Trosten and others were involved in hiding customer trading losses, concealing the firm's proprietary trading activities, fraudulently shifting expenses off the books of Refco, and artificially padding Refco's revenues in order to achieve, through fraud, the 2004 leveraged buyout ("LBO") of Refco and the 2005 initial public offering ("IPO") of the company's stock. From as early as the mid-1990s, Refco sustained hundreds of millions of dollars of losses through, among other things, its customers' trading. In order to hide the existence of the losses, MR. Bennett and others transferred many of the losses to appear as a debt owed to Refco by Refco Group Holdings, Inc. ("RGHI") -- the holding company that controlled Refco and was, in turn, controlled by Mr. Bennett, Mr. Grant, and at certain times, Thomas Dittmer. Mr. Bennett and others directed a series of transactions every year from 1999 through 2005 (and quarterly starting in 2004) to hide the RGHI receivable from, among others, Refco's auditors, by temporarily paying down the receivable from RGHI over Refco's fiscal year-end (and, after February 2004, Refco's quarter-ends) and replacing it with a receivable from one or more other entities not related to RGHI. Thus, at every fiscal year-end and, later, at every fiscal quarter-end, Mr. Bennett and others directed transactions that turned the debt owed to Refco from RGHI into a debt owed to Refco by a Refco customer. Shortly after each fiscal year-or quarter-end, these transactions were unwound, returning the debt to RGHI. In August 2004, Thomas H. Lee Partners, L.P., purchased a majority interest in Refco for approximately $1.9 billion through an LBO. In connection with that transaction, Refco sold approximately $600 million of bonds to the public and borrowed approximately $800 million from a syndicate of banks. A year later, in August 2005, Refco conducted an IPO of its stock, raising approximately $583 million from the public. Refco's stock was then listed on the New York Stock Exchange. On October 10, 2005, Refco issued a press release announcing, in substance, that it had discovered that it was owed a debt of approximately $430 million by an entity controlled by Mr. Bennett. Following release of this information, the market price of Refco stock plummeted, and Refco's stock was subsequently delisted by the New York Stock Exchange. Refco, Inc., and many of its subsidiaries filed petitions in bankruptcy on October 17, 2005. Proceeds of Refco's fraudulent LBO were distributed to Messrs. Bennett, Grant, Maggio and Trosten, as well as certain other former Refco insiders, including Stephen Grady, Dennis Klenja, Joseph Murphy, Thomas Dittmer, and Frank Mutterer. On July 3, 2008, Mr. Bennett, 61, of Gladstone, New Jersey, was sentenced to 16 years in prison and ordered to pay a $2.4 billion forfeiture money judgment by United States District Judge Naomi Reice Buchwald. Mr. Bennett had previously pleaded guilty on February 15, 2008, to all twenty charges filed against him. Approximately $92,748,348.52 plus interest of the funds in This distribution to victims of the Refco fraud were forfeited from Mr. Bennett pursuant to the forfeiture order entered against him as part of his sentence. On December 19, 2007, Mr. Maggio, 58, of Naples, Florida, -- a former Executive Vice President of Refco and the former President and Chief Executive Officer of Refco Securities LLC, a Refco subsidiary -- pleaded guilty before United States Magistrate Judge Ronald L. Ellis to a four-count Information. He awaits sentencing. Approximately $14,398,788.74 plus interest of the funds in this distribution to victims of the Refco fraud were forfeited from Mr. Maggio pursuant to the forfeiture orders entered against him. On February 20, 2008, Mr. Trosten, 40, of Sarasota, Florida -- the former Chief Financial Officer of Refco -- pleaded guilty before Judge Buchwald to five counts charged in the Indictment against him. He awaits sentencing. Approximately $6,160,278.69 plus interest of the funds in this distribution to victims of the Refco fraud were forfeited from Mr. Trosten pursuant to the forfeiture orders entered against him. On April 7, 2008, Mr. Grant, 66, of Chicago, Illinois -- one of the former owners of Refco -- was sentenced to 10 years in prison by Judge Buchwald after a jury found him guilty on all give counts in the Indictment against him. Mr. Grant was also ordered to pay a $2.4 billion forfeiture money judgment. Approximately $7,863,566.45 plus interest of the funds in this distribution to victims of the Refco fraud were forfeited from Mr. Grant pursuant to the forfeiture order entered against him as part of his sentence. In addition to money forfeited in criminal actions, the distribution to victims of the Refco fraud includes approximately $13,974,426.07 plus interest of funds forfeited pursuant to consent orders of forfeiture entered into by various former Refco insiders who have not been criminally charged in the Southern District of New York in connection with the Refco fraud. More specifically, under the terms of these consent orders of forfeiture, the Government obtained $1,000,000 from Stephen Grady; $1,250,000 from Dennis Klenja; $5,000,000 from Joseph Murphy; approximately $6,541.666.62 from Thomas Dittmer who has agreed to forfeit a total of $18,000,000; and approximately $182,759.45 from Frank Mutterer who has agreed to forfeit a total of $950,000. The U.S. Attorney General's office also forfeited over $437 million from BAWAG P.S.K., formally known as Bank Fur Arbeit Und Wirtschaft Und Osterreichische Postparkasse Aktiengesellschaft, and the Austrian Trade Unions Association, formally known as Osterreichischer Gewerkschaftsbund (OGB), which owns BAWAG, as part of an agreement not to prosecute the Bank or the OGB for their role in assisting Mr. Bennett in his fraudulent scheme. These forfeited funds were distributed to victims of the Refco fraud in 2006 and 2007. The Government anticipates forfeiting additional property in the Refco action and making additional distributions of funds to representatives of victims of the Refco fraud. * * * U.S. Attorney Preet Bharara stated: "More than just prosecuting criminals who engage in fraud, this Office strives to return as much as possible to their victims. Justice has been rightly served for the victims of the Refco fraud, where over $135 million was distributed and restored, in addition to the $437 million previously distributed. With the hard work of our law enforcement partners and our own Asset Forfeiture Unit, the Southern District of New York will continue to recover as much money as possible on behalf of the victims of crime." The case was investigated by the Criminal Investigators of the Securities and Commodities Fraud Task Force of the United States Attorney's Office for the Southern District of New York, along with the United States Postal Inspection Service. Mr. Bharara praised the work of those investigators and thanked the United States Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance in the case. These forfeiture actions are being handled by the Asset Forfeiture Unit. Assistant United States Attorneys Jeffrey Alberts, Rua Kelly, Amy Lester, and Sharon Cohen Levin are in charge of the cases. The case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. About Refco Inc. Headquartered in New York, Refco Inc. -- http://www.refco.com/-- was a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries were members of principal U.S. and international exchanges, and were among the most active members of futures exchanges in Chicago, New York, London and Singapore. Refco was also a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco was one of the largest global clearing firms for derivatives. The Company had operations in Bermuda. The Company and 23 of its affiliates filed for Chapter 11 protection on October 17, 2005 (Bankr. S.D.N.Y. Case No. 05- 60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Milbank, Tweed, Hadley & McCloy LLP, represented the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its Direct and Indirect Subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates, LLC, on December 15, 2006. That Plan became effective on Dec. 26, 2006. Pursuant to the plan, RJM, LLC, was named plan administrator to reorganized Refco, Inc. and its affiliates, and Marc S. Kirschner as plan administrator to Refco Capital Markets, Ltd. Bankruptcy Creditors' Service, Inc., publishes Refco Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Refco Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: Litigation Trustee Makes $65MM Distribution ------------------------------------------------------ Marc S. Kirschner, as trustee of the Refco Litigation Trust and the Refco Private Actions Trust, said on May 18, 2010, that he is making initial distributions to the beneficiaries of the Trusts in the aggregate amount of $65,000,000. On behalf of Mr. Kirschner, Dennis C. O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, relates that each of the Trusts was established, effective December 26, 2006, under the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its subsidiaries. The Refco Litigation Trust was specifically established under the Plan as a Grantor Trust. Estate claims and actions against various former officers, lawyers, accountants, and numerous other third parties were transferred to the Refco Litigation Trust. The Refco Private Actions Trust was also established under the Plan as a Grantor Trust. Claims and actions against various former officers, lawyers, accountants, and numerous other third parties were "assigned" to the Refco Private Actions Trust by certain electing creditors and shareholders. Interests in each Trust were distributed on August 24, 2007, to holders of Allowed Claims in the specified creditor classes or who had made the Private Actions Trust Election based on the holders of record at the time. These creditor classes under the Plan have Tranche A Litigation Trust or Private Actions Trust Interests in the Trusts: * Class 5(a) -- Contributing Debtors General Unsecured Claims * Class 5(a) -- FXA General Unsecured Claims * Class 3 -- RCM FX/Unsecured Claims * Class 4 -- RCM Securities Customer Claims Under the Plan, holders of Allowed Old Equity Interests who made the Private Actions Trust Election in connection with a settlement entered into with the Equity Committee hold Tranche B Litigation Trust Interests in the Refco Litigation Trust and Tranche B Private Actions Trust Interests in the Refco Private Actions Trust, which interests entitle the holders thereof to 3% of the first $500 million of Combined Recoveries, 7.5% of the Combined Recoveries greater than $500 million and 15% of the Combined Recoveries greater than $1 billion, Mr. O'Donnell explains. Initial Distribution The Litigation Trustee's initial distribution of $65 million is comprised of the proceeds of various claim settlements and the disgorgement of funds paid to the Trusts by the United States government, after deduction for: (i) all accrued fees and expenses; (ii) repayment of the advances to the Trusts provided for under the Plan; and (iii) appropriate reserves for ongoing administrative expenses, including fees and expenses of all professionals retained by the Trusts. The settlement and disgorgement funds derive from the release or resolution of claims involving both Trusts. Pursuant to the applicable provisions of the Trust Agreements, the proceeds of the settlements and the disgorgement funds have been divided equally between the Trusts. Hence, $32,500,000 is being distributed among the holders of interests in each Trust. Distributions are being made pro rata, based on the number of Litigation Trust Interests or Private Actions Trust Interests held by each Trust Beneficiary, with (i) 97% of the distribution from each Trust being made to holders of Tranche A Litigation Trust or Private Action Trust Interests; and (ii) 3% of the distribution from each Trust is being made to holders of Tranche B Litigation Trust or Private Actions Trust Interests. After reserving for Disputed Claims, the Refco Litigation Trust is making a distribution of: (i) 1.408% of Allowed Class 5(a) Contributing Debtors General Unsecured Claims, Class 5a FXA General Unsecured Claims, and Class 3 RCM FX/Unsecured Claims; and (ii) 0.365% of Allowed Class 4 RCM Securities Customer Claims -- a 1.408% distribution on account of Class 4 RCM Securities Customer Claims' Implied Deficiency Claim, as defined in the Plan. After reserving for Disputed Claims, the Refco Private Actions Trust is making a distribution of: (i) 1.589% of Allowed Class 5(a) Contributing Debtors General Unsecured Claims, Class 5a FXA General Unsecured Claims, and Class 3 RCM FX/Unsecured Claims; and (ii) 0.412% of Allowed Class 4 RCM Securities Customer Claims -- a 1.589% distribution on account of Class 4 RCM Securities Customer Claims' Implied Deficiency Claim. Notwithstanding any contract or agreement any Trust Beneficiary may have subsequently entered into regarding its economic rights to recoveries with respect to its Allowed Claim or Interest, the Trust continues to reflect only the holders of record on the applicable record date. Therefore, a Trust Beneficiary may have an obligation to turn over amounts it receives from this distribution to any party it may have contracted with, says Mr. O'Donnell. The Trustee of each Trust is continuing to pursue other claims and actions against various parties on behalf of the Trusts. In addition, the Refco Plan Administrator and the RCM Plan Administrator continue to review and resolve other claims. Additional funds may become available for distribution to beneficiaries of the Trusts and therefore, the Refco Litigation Trustee and the Refco Private Actions Trustee may make additional distributions from time to time on account of Allowed Claims and Old Equity Interests, Mr. O'Donnell tells Judge Drain. About Refco Inc. Headquartered in New York, Refco Inc. -- http://www.refco.com/-- was a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries were members of principal U.S. and international exchanges, and were among the most active members of futures exchanges in Chicago, New York, London and Singapore. Refco was also a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco was one of the largest global clearing firms for derivatives. The Company had operations in Bermuda. The Company and 23 of its affiliates filed for Chapter 11 protection on October 17, 2005 (Bankr. S.D.N.Y. Case No. 05- 60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Milbank, Tweed, Hadley & McCloy LLP, represented the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its Direct and Indirect Subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates, LLC, on December 15, 2006. That Plan became effective on Dec. 26, 2006. Pursuant to the plan, RJM, LLC, was named plan administrator to reorganized Refco, Inc. and its affiliates, and Marc S. Kirschner as plan administrator to Refco Capital Markets, Ltd. Bankruptcy Creditors' Service, Inc., publishes Refco Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Refco Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) RESIDENCE FOR RENAL: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Residence for Renal Care at Shadyside, Ltd. 438 South Fairmount Street Pittsburgh, PA 15232 Bankruptcy Case No.: 10-05235 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Middle District of Pennsylvania (Harrisburg) Judge: Mary D. France Debtor's Counsel: Robert E. Chernicoff, Esq. Cunningham and Chernicoff PC 2320 North Second Street Harrisburg, PA 17110 Tel: (717) 238-6570 Fax: (717) 238-4809 E-mail: rec@cclawpc.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 J. Gregory Cauterucci, Sr., company president. RHYNE'S ANTIQUES: Case Summary & 6 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Rhyne's Antiques, LLC aka Rhyne's Antiques 2, LLC 523 South Elm Street Greensboro, NC 27406 Bankruptcy Case No.: 10-11165 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Middle District of North Carolina (Greensboro) Debtor's Counsel: Rayford K. Adams, III, Esq. 101 W. Friendly Ave., Suite 500 P.O. Box 20570 Greensboro, NC 27420 Tel: (336) 273-1600 E-mail: RKAdams@greensborolaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $0 to $50,000,000 A list of the Company's 6 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncmb10-11165.pdf The petition was signed by Richard W. Rhyne, member/manager. RHYNESTONE INC: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Rhynestone, Inc. 110 Fisher Park Circle Greensboro, NC 27401 Bankruptcy Case No.: 10-11164 Chapter 11 Petition Date: June 24, 2010 Court: United States Bankruptcy Court Middle District of North Carolina (Greensboro) Debtor's Counsel: Rayford K. Adams, III, Esq. 101 W. Friendly Ave., Suite 500 P.O. Box 20570 Greensboro, NC 27420 Tel: (336) 273-1600 E-mail: RKAdams@greensborolaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,001 to $500,000 A list of the Company's 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncmb10-11164.pdf The petition was signed by Richard W. Rhyne, company's president. RICHARD HOUNG: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Richard Yin-Ching Houng aka Richard Houng 20 Early Light Irvine, CA 92620 Bankruptcy Case No.: 10-18712 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Leonard M. Shulman, Esq. Shulman Hodges & Bastian LLP 26632 Towne Ctr Drive, Suite 300 Foothill Ranch, CA 92610 Tel: (949) 340-3400 Fax: (949) 340-3000 E-mail: lshulman@shbllp.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Debtor's list of 4 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-18712.pdf The petition was signed by the Debtor. Debtor-affiliates filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Nexis, Inc., a California corporation -- 06/25/10 SAC II: Files Schedules of Assets and Liabilities ------------------------------------------------- SAC II filed with the U.S. Bankruptcy Court for the District of Nevada its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $40,955,000 B. Personal Property $0 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $75,430,979 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $31,915 ----------- ----------- TOTAL $40,955,000 $75,462,894 Reno, Nevada-based SAC II filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. D. Nev. Case No. 10-51440). Sallie B. Armstrong, Esq., who has an office in Reno, Nevada, 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. These affiliates filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Specialty Trust, Inc. 10-51432 04/20/10 Assets: $100 mil. to $500 mil. Debts: $50 mil. to $100 mil. Specialty Acquisition Corp. 10-51437 04/20/10 Assets: $10 mil. to $50 mil. Debts: $10 mil. to $50 mil. SECURITY BENEFIT: S&P Keeps 'BB+' Counterparty Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said that it is keeping its 'BB+' counterparty credit and financial strength ratings on Security Benefit Life Insurance Co. and its affiliate, First Security Benefit Life Insurance and Annuity Co. of New York, on CreditWatch with positive implications. S&P initially placed the ratings on CreditWatch positive on Feb. 16, 2010. "S&P is keeping its ratings on SBLIC and FSBLIC-NY on CreditWatch positive following the announcement that more than 90% of Security Benefit Mutual Holding Co.'s members approved the demutualization and dissolution plan," said Standard & Poor's credit analyst Jeremy Rosenbaum. "This paves the way for GP to purchase SBC." S&P raised its ratings on SBLIC and its affiliate by one notch on Feb. 26 to reflect SBLIC's announcement that a group of investors, led by Guggenheim Partners, indirectly contributed $175 million of capital to SBLIC. The contribution followed a Feb. 16 announcement that GP had entered into a definitive agreement to purchase SBC, SBLIC's parent company. Although all the terms of the transaction were not disclosed, Standard & Poor's believes that this transaction will ultimately remedy a capital deficiency at SBLIC and give SBC access to additional financial resources through GP. Limited capital constrained SBLIC's sales in 2009. But, in 2010, S&P expects that SBLIC, with fresh capital, will be able to execute on its growth strategy in core 403(b) markets, a traditional stronghold of the company. S&P likely will resolve the CreditWatch upon the completion of the transaction, which is expected to occur in the third quarter of 2010. "S&P expects that if SBLIC replenishes its capital to historically high levels after the transaction is completed, S&P could raise its ratings on the company by up to three notches," said Mr. Rosenbaum. S&P also expects that GP will inject about $175 million of capital into SBLC once the transaction closes. "The approval of both the Kansas Insurance Department and Security Benefit Mutual Holding Co.'s members leads us to believe that it is extremely likely that the transaction between SBLIC and GP will occur," said Mr. Rosenbaum. "However, if for some reason it is not completed, S&P could lower its ratings on SBLIC, most likely by two notches." SOURCEGAS LLC: Moody's Affirms 'Ba2' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service affirmed SourceGas LLC's Ba2 Corporate Family Rating and Ba1 senior unsecured debt rating and changed the rating outlook of SourceGas LLC to positive from stable. "The change in SourceGas' outlook to positive reflects Moody's expectation for continued improvement in the company's operating performance and related key financial metrics" said Natividad Martel. "The action also considered SourceGas' recent disposal of its international operations and a renewed focus on its US-based regulated businesses" added Martel. The gradual improvement of SourceGas' consolidated financial performance (including Holdings' debt) has been driven by the 2008 Colorado rate hike and the successful integration of Arkansas Western Gas, coupled with several expense reduction initiatives. Specifically, during 2009, SourceGas' CFO pre-W/C to debt and CFO pre-W/C interest coverage was about 13% and 3.5x, respectively, an improvement over previous years. However, Moody's also observe that 2007-2009 average metrics remain indicative of a Ba rating; specifically, SourceGas' 2007-2009 ratio of CFO pre-W/C to debt and CFO pre-W/C interest coverage averaged 5.3% and 2x, respectively, and its ratio of consolidated debt to total capitalization exceeded 65%. Further improvement in key metrics is expected to be driven by supportive rate case outcomes in Wyoming and Colorado, particularly, in terms of the rate design. That being said, SourceGas' ratings remain constrained by its leverage profile, acquisitive nature and a below average regulatory environment in Nebraska. Furthermore, while the $9 million of proceeds from the sale of its international assets were distributed to its sponsors in the form of a dividend, the positive outlook incorporates the belief that future acquisitions will be focused on assets within SourceGas's current business segments and financing for those transactions will be credit neutral. Moody's will continue to monitor the outcome of the ongoing and planned rate cases as well as the pending court decision in the litigated Nebraska rate case, the company's corporate strategy, liquidity and its ability to sustain its credit metrics in considering any further rating actions. Moody's last rating action on SourceGas occurred June 26, 2008, when the senior unsecured debt rating of SourceGas was downgraded to Ba1 and a CFR of Ba2 was assigned. Headquartered in Lakewood, Colorado, SourceGas is an intermediate holding company, whose operating subsidiaries provide retail natural gas distribution services, and operate intrastate transmission pipelines as well as storage facilities in Arkansas, Colorado, Nebraska and Wyoming. Furthermore, SourceGas's wholly owned subsidiary Rocky Mountain Natural Gas LLC offers regulated wholesale natural gas services mainly to affiliate SourceGas Distribution LLC, and natural gas liquid sales processed through two natural gas processing plants. RMNG owns 40% of one of the processing plants, while the second one is wholly owned by SourceGas Energy Services, another SourceGas subsidiary. SGES comprises the group's non-regulated operations (about 8% of the consolidated gross margin) that consist mainly of unbundled natural gas (under the Choice Program) to retail customers in Wyoming and Nebraska. SOUTHERN CYPRESS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Southern Cypress And Lumber, Inc. P.O. Box 576 5201 Bowden Street Frisco City, AL 36445 Bankruptcy Case No.: 10-02910 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Southern District of Alabama (Mobile) Debtor's Counsel: Marion E. Wynne, Jr., Esq. P.O. BOX 1367 Fairhope, AL 36532-1367 Tel: (251) 928-1915 Fax: (251) 928-1967 E-mail: twynne@wbbwlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $2,898,043 while debts total $2,718,366. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/alsb10-02910.pdf The petition was signed by Jeff Baggett, president. SPECIALTY ACQUISITION: Files Schedules of Assets and Liabilities ---------------------------------------------------------------- Specialty Acquisition Corp. filed with the U.S. Bankruptcy Court for the District of Nevada its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $3,780,000 B. Personal Property $10,635,390 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $5,562,457 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $52,577,940 ----------- ----------- TOTAL $14,415,390 $58,140,397 Reno, Nevada-based Specialty Acquisition Corp. filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. D. Nev. Case No. 10-51437). Sallie B. Armstrong, Esq., at Downey Brand, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. These affiliates filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Specialty Trust, Inc. 10-51432 04/20/10 Assets: $100 mil. to $500 mil. Debts: $50 mil. to $100 mil. SAC II 10-51440 04/20/10 Assets: $10 mil. to $50 mil. Debts: $1 mil. to $10 mil. SPECIALTY TRUST: Files Schedules of Assets and Liabilities ---------------------------------------------------------- Specialty Trust, Inc., filed with the U.S. Bankruptcy Court for the District of Nevada its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $5,497,728 B. Personal Property $191,454,727 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $66,171,977 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $42,724,659 ----------- ----------- TOTAL $195,952,455 $108,896,636 Reno, Nevada-based Specialty Trust, Inc., filed for Chapter 11 bankruptcy protection on April 20, 2010 (Bankr. D. Nev. Case No. 10-51432). Sallie B. Armstrong, Esq., at Downey Brand, assists the Company in its restructuring effort. The Company listed $100,000,001 to $500,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. These affiliates filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Specialty Acquisition Corp. 10-51437 04/20/10 Assets: $10 mil. to $50 mil. Debts: $10 mil. to $50 mil. SAC II 10-51440 04/20/10 Assets: $10 mil. to $50 mil. Debts: $1 mil. to $10 mil. SPRINGBOK SERVICES: Section 341(a) Meeting Scheduled for July 26 ---------------------------------------------------------------- The U.S. Trustee for Region 19 will convene a meeting of Springbok Services, Inc.'s creditors on July 26, 2010, at 1:00 p.m. The meeting will be held at U.S. Custom House, 721 19th Street, Room 104, Denver, CO 80202. 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. Englewood, Colorado-based Springbok Services, Inc., fka The Best Present Company, Inc.; and fdba Springbok Card Processing Services, fka Springbok Card Processing Services, Inc., filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Colo. Case No. 10-25285). Duncan E. Barber, Esq., who has an office in Denver, Colorado, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. SPRINGBOK SERVICES: Taps Bieging Shapiro as Bankruptcy Counsel -------------------------------------------------------------- Springbok Services, Inc., has asked for authorization from the U.S. Bankruptcy Court for the District of Colorado to employ Bieging Shapiro & Burrus LLP as bankruptcy counsel. Bieging Shapiro will, among other things: a. aid the Debtor in the development of a plan of reorganization under Chapter 11; b. file petitions, schedules, pleadings, reports, and actions which may be required in the continued administration of the Debtor's property under Chapter 11 and in the course of the Debtor's Chapter 11 proceedings; c. take necessary actions to enjoin and stay until final decree herein continuation of pending proceedings and to enjoin and stay until final decree herein commencement of lien foreclosure proceedings; and d. analyze claims and causes of action of the Debtor and to object to claims and commence and prosecute adversary proceedings as necessary in the administration of the case. Bieging Shapiro will be paid based on the hourly rates of its personnel: Duncan E. Barber $350 Steven T. Mulligan $285 Duncan E. Barber, a partner at Bieging Shapiro, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Englewood, Colorado-based Springbok Services, Inc., fka The Best Present Company, Inc.; and fdba Springbok Card Processing Services, fka Springbok Card Processing Services, Inc., filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Colo. Case No. 10-25285). The Company estimated its assets and debts at $10,000,001 to $50,000,000. SPRINGBOK SERVICES: Wants to Hire JAS as Restructuring Advisor -------------------------------------------------------------- Springbok Services, Inc., has asked for authorization from the U.S. Bankruptcy Court for the District of Colorado to employ JAS Services, LLC, and its principal, James A. Skelton as restructuring advisor for the Debtor. JAS will, among other things, provide these services: a. full operational and financial control and management of the Company; b. direct the current managers, officers and employees as to the operations of the Company; c. serve as the principal contact with the Debtor's Lenders and creditors, and provide assistance in discussions with other creditors and stakeholders with respect to the Company's financial and operational matters, including the Company's actual versus budgeted performance for any cash budget that may have been developed by the Company and approved by the Lenders; and d. request advances from the Lenders on financial terms determined to be appropriate by JAS. JAS will be compensated based on its restructuring advisory engagement with the Debtor, a copy of which is available for free at http://ResearchArchives.com/t/s?6587 James A. Skelton, managing member of JAS, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Englewood, Colorado-based Springbok Services, Inc., fka The Best Present Company, Inc.; and fdba Springbok Card Processing Services, fka Springbok Card Processing Services, Inc., filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Colo. Case No. 10-25285). Duncan E. Barber, Esq., who has an office in Denver, Colorado, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. SPRINGBOK SERVICES: Wants to Hire Epiq as Claims & Noticing Agent ----------------------------------------------------------------- Springbok Services, Inc., has sought permission from the U.S. Bankruptcy Court for the District of Colorado to employ Epiq Bankruptcy Solutions, LLC, as claims, noticing and balloting agent. Epiq will, among other things: a. maintain the creditor matrix; b. serve required notices; c. update the Agent's claim database to reflect undeliverable or changed addresses; and d. maintain a copy of the schedule of assets and liabilities and statement of financial affairs that the Debtor filed with the Court, listing the Debtor's known creditors and the amounts owed thereto and provide assistance in preparing the same if requested by the Debtor. Epiq will be compensated based on its services agreement with the Debtor. A copy of the agreement is available for free at: http://bankrupt.com/misc/SPRINGBOK_claimsagentservicepact.pdf Daniel McElhinney, the executive director of Epiq, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Englewood, Colorado-based Springbok Services, Inc., fka The Best Present Company, Inc.; and fdba Springbok Card Processing Services, fka Springbok Card Processing Services, Inc., filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Colo. Case No. 10-25285). Duncan E. Barber, Esq., who has an office in Denver, Colorado, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. STARKEY CHEMICAL: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Starkey Chemical Process Company 9600 West Ogden Avenue La Grange, IL 60525-2534 Bankruptcy Case No.: 10-28520 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jack B. Schmetterer Debtor's Counsel: Ariane Holtschlag, Esq. E-mail: lawyers@ggl-law.com David P Lloyd, Esq. E-mail: dlloyd@ggl-law.com Grochocinski, Grochocinski & Lloyd, Ltd. 1900 Ravinia Place Orland Park, IL 60462 Tel: (708) 226-2700 Fax: (708) 226-9030 Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $472,254 while debts total $1,451,054. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-28520.pdf The petition was signed by Linda K. Yates, president. STERLING ESTATES: Court Fixes August 16 as Claims Bar Date ---------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois established August 16, 2010, as the last day for any individual or entity to file proofs of claim against Sterling Estates (Delaware) LLC. Proofs of claim must be filed with: Clerk of the U.S. Bankruptcy Court 219 S. Dearborn St., Room 713 Chicago, IL 60604 All objections to the filed claims are due on September 30. Chicago, Illinois-based Sterling Estates (Delaware), LLC, a Delaware Limited Liability Company, dba Sterling Estates Manufactured Home Community, filed for Chapter 11 bankruptcy protection on May 17, 2010 (Bankr. N.D. Ill. Case No. 10-22319). Eugene Crane, Esq., at Crane Heyman Simon Welch & Clar, assists the Company in its restructuring effort. The Company listed $50,000,001 to $100,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. STERLING ESTATES: Has Access to Wells Fargo's Cash Until July 30 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois approved a stipulation authorizing Sterling Estates (Delaware) LLC, to access the cash collateral until 11:59 p.m. on July 30, 2010. A hearing to consider the Debtor's continued cash collateral use will be held on July 29, at 1:00 p.m. Objections, if any, are due on July 29. Wells Fargo Bank, N.A., as Trustee for the registered holders of Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-2, by and through its special servicer ORIX Capital Markets LLC, asserts an interest in the proceeds from the collection of rents, prepetition accounts and other cash collateral. As of the petition date, the trust asserts that the Debtor owed, under the prepetition loan documents, $36,700,731 plus unpaid interest, costs, expenses and other charges. The Debtor will use the cash collateral to fund its Chapter 11 case, pay suppliers and other parties. As reported in the Troubled Company Reporter on June 9, in exchange for using the cash collateral: (i) Wells Fargo will be allowed to permit the lender to inspect the Debtor's books and records; (ii) the Debtor will maintain and pay premiums for insurance to cover its assets from fire, theft and water damage; (iii) the Debtor will make available to the lender evidence of that which constitutes its collateral or proceeds; and (iv) the Debtor will property maintain its assets in good repair and properly manage assets. About Sterling Estates Chicago, Illinois-based Sterling Estates (Delaware), LLC, a Delaware Limited Liability Company, dba Sterling Estates Manufactured Home Community, filed for Chapter 11 bankruptcy protection on May 17, 2010 (Bankr. N.D. Ill. Case No. 10-22319). Eugene Crane, Esq., at Crane Heyman Simon Welch & Clar, assists the Company in its restructuring effort. The Company listed $50,000,001 to $100,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. STERLING ESTATES: Files Schedules of Assets and Liabilities ----------------------------------------------------------- Sterling Estates (Delaware) LLC filed with the U.S. Bankruptcy Court for the Northern District of Illinois its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $62,000,000 B. Personal Property $585,126 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $36,406,887 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $620,901 ----------- ----------- TOTAL $62,585,126 $37,027,788 Chicago, Illinois-based Sterling Estates (Delaware), LLC, a Delaware Limited Liability Company, dba Sterling Estates Manufactured Home Community, filed for Chapter 11 bankruptcy protection on May 17, 2010 (Bankr. N.D. Ill. Case No. 10-22319). Eugene Crane, Esq., at Crane Heyman Simon Welch & Clar, assists the Company in its restructuring effort. The Company listed $50,000,001 to $100,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. STEVEN BATES: Case Summary & 15 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: Steven J. Bates Victoria Bates 105 Audubon Place Hailey, ID 83333 Bankruptcy Case No.: 10-41137 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court District of Idaho (Twin Falls) Debtor's Counsel: Erin J. Wynne, Esq. Wynne Law PLLC P.O. Box 1771 950 W Bannock Street, Suite 900 Boise, ID 83701 Tel: (208) 991-0791 Fax: (208) 473-2043 E-mail: wynnelawidaho@gmail.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $1,205,084 while debts total $1,353,723. A copy of the Debtor's list of 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/idb10-41137.pdf The petition was signed by the Joint Debtors. STEVENSON TELO: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Stevenson Telo 118 Spring Hill Avenue Norwalk, CT 06850 Bankruptcy Case No.: 10-51472 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court District of Connecticut (Bridgeport) Judge: Alan H.W. Shiff Debtor's Counsel: Mark M. Kratter, Esq. Kratter & Gustafson, LLC 71 East Avenue, Suite O Norwalk, CT 06851 Tel: (203) 853-2312 E-mail: laws4ct@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $1,162,460 while debts total $1,624,000. A copy of the Debtor's list of 5 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ctb10-51472.pdf The petition was signed by the Debtor. SUMNER REGIONAL: Sale to LifePoint Formally Approved ---------------------------------------------------- Bill Rochelle at Bloomberg News reports that a bankruptcy judge in Nashville, Tennessee, entered an order approving the sale of Sumner Regional Health Systems' four acute-care hospitals for $154.1 million, despite objections by Sumner County. LifePoint Hospitals Inc., which already has 48 hospitals in 17 states, is the buyer of Sumner Regional's facility. The bankruptcy judge wrote an opinion explaining why the county's sale of the hospital in 1994 bestowed no power to block a sale now. Gallatin, Tennessee-based Sumner Regional Health Systems, Inc. -- dba Sumner Regional Medical Center, SRHS Professional Services, Sumner Station, Sumner In-Patient Rehabilitation Unit, Westmoreland Pharmacy, Imaging for Women at Sumner Station, Diagnostic Center at Sumner Station, Outpatient Rehab Services at Sumner Station, The Fitness Center at Sumner Station, Sumner Crossroads, and Executive House Apartments -- filed for Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. M.D. Tenn. Case No. 10-04766). Robert A. Guy, Esq., at Frost Brown Todd LLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. SUNDANCE SELF-STORAGE: Case Summary & Creditors List ---------------------------------------------------- Debtor: Sundance Self-Storage-El Dorado LP 117 Church Street Roseville, CA 95678 Bankruptcy Case No.: 10-36676 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Robert S. Bardwil Debtor's Counsel: C. Anthony Hughes, Esq. 1395 Garden Highway, Suite 150 Sacramento, CA 95833 Tel: (916) 440-6666 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $4,395,200 while debts total $6,427,757. A copy of the Debtor's list of 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-36676.pdf The petition was signed by Don Smith, manager of operations. SWIFT MASTER: Accounts Removal Won't Affect Moody's Ba3 Rating -------------------------------------------------------------- Moody's has reviewed documentation relating to a removal of accounts from SWIFT Master Auto Receivables Trust. Ally Financial, the sponsor of the trust, has removed 1,028 dealer accounts. As a result, Series 2007-2 issued by SWIFT will no longer have an interest in receivables from these accounts or related collateral security. Series 2007-2 will continue to have rights to the remaining 593 dealer accounts, their receivables and related collateral security in order to support the outstanding series. The other portfolio characteristics are substantially unchanged after giving effect to the removal of accounts. At this time, the removal of accounts will not, in and of itself, result in a reduction or withdrawal of the current ratings on the Series 2007-2 Class A Notes of Aa2, Class B Notes of A3, Class C Notes of Ba1, and Class D Notes of Ba3. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have significant effect on yield and/or other payments to investors. The affirmation of Moody's ratings should not be taken to imply that there will be no adverse consequences for investors since in some cases such consequences will not impact the rating. TANIA HUNTER: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Tania Lynn Hunter Harold Hunter, Jr. 309 Hunters Lane Hendersonville, TN 37075 Bankruptcy Case No.: 10-06618 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Debtor's Counsel: William Alan Alder, Esq. 1230 Second Avenue, South Nashville, TN 37210 Tel: (615) 244-2445 Fax: (615) 255-6037 E-mail: alanalder@thealderlawfirm.com Estimated Assets: $500,001 to $1,000,000 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/tnmb10-06618.pdf The petition was signed by Tania Lynn Hunter and Harold Hunter, Jr. TAYLOR BEAN: Committee Wants to Preserve D&O Policy --------------------------------------------------- Bill Rochelle at Bloomberg News reports that the official committee of unsecured creditors formed in the Chapter 11 case of Taylor Bean & Whitaker Mortgage Corp. is opposing a request by National Union Fire Insurance Co. of Pittsburgh, Pa., to make disbursements for defense costs from the $5 million policy providing directors' and officers' liability insurance coverage. Those who made claims for coverage include Lee Farkas, the former chairman of Taylor Bean. Mr. Farkas was indicted for concealing mortgage assets that were worthless or losing value and representing them as being securitized and sold into the secondary market. The Creditors Committee, according to the report, pointed out that the Company itself is an insured under the policy. Unlike situations were only directors and officers may draw on the policy, the committee believes the policy should be left intact so individuals don't deplete the policy before Taylor Bean can make its own claims. The hearing on the motion by National Union, a subsidiary of American International Group Inc., is set for July 2. About Taylor, Bean Taylor, Bean & Whitaker Mortgage Corp. is a 27-year-old company that grew from a small Ocala-based mortgage broker to become one of the largest mortgage bankers in the United States. In 2009, Taylor Bean was the country's third largest direct-endorsement lender of FHA-insured loans of the largest wholesale mortgage lenders and issuer of mortgage backed securities. It also managed a combined mortgage servicing portfolio of approximately $80 billion. The company employed more that 2,000 people in offices located throughout the United States. Taylor Bean filed for Chapter 11 on August 24 (Bankr. M.D. Fla. Case No. 09-07047). Taylor Bean filed under Chapter 11 three weeks after federal investigators searched its offices. The day following the search, the Federal Housing Administration, Ginnie Mae and Freddie Mac prohibited the company from issuing new mortgages and terminated servicing rights. Taylor Bean has more than $1 billion of both assets and liabilities, and between 1,000 and 5,000 creditors, according to the bankruptcy petition. TEREX CORPORATION: Moody's Affirms 'B2' Corporate Family Ratings ---------------------------------------------------------------- Moody's Investors Service upgraded Terex Corporation's Speculative Grade Liquidity Rating to SGL-2 from SGL-3 and affirmed the company's Corporate Family and Probability of Default Ratings at B2. Although Moody's affirmed the majority of the company's instrument ratings, the company's $300 million 7 3/8% subordinated notes were downgraded to B1 from Ba3. The ratings outlook remains stable. The upgrade of the company's SGL liquidity rating reflects the company's high cash position with over $1.7 billion of cash (and equivalents) as of March 31, 2010 versus $929 million at the end of 2009. The SGL also reflects the room under its covenants as its principal covenant is a $250 million minimum liquidity requirement until June 30, 2011. Terex's B2 CFR continues to reflect its high leverage and its weak profitability resulting from the poor demand environment for the company's products. However, it also incorporates the company's strong, well established position as a manufacturer of heavy equipment for the construction, infrastructure, and energy markets, as well as its good liquidity profile. The downgrade of the company's subordinated notes to B1 from Ba3 reflects the change in the company's capital structure per Moody's loss given default ratings methodology. The rating change reflects higher levels of senior debt above these notes. The stable outlook reflects the belief that the company should come close to realizing operating income break even in 2010 and that the company's strong cash position combined with its covenant recess under its bank credit agreement provides additional room for the company to manage through the difficult environment. These factors provide Terex with the financial flexibility to contend with the current economic downturn. Downgrades: Issuer: Terex Corporation -- Senior Subordinated Conv./Exch. Bond/Debenture, Downgraded to LGD5, 81% from LGD5, 80% -- Senior Subordinated Regular Bond/Debenture, Downgraded to B1, LGD5, 81% from Ba3, LGD5, 80% -- Senior Secured Bank Credit Facility, Downgraded to a range of LGD1, 09% to LGD1, 08% from LGD1, 06% -- Senior Unsecured Regular Bond/Debenture, Downgraded to LGD4, 51% from LGD3, 49% Upgrades: Issuer: Terex Corporation -- Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3 The last rating action was on May 28, 2009, at which time Moody's changed the company's outlook to stable. Terex Corporation, headquartered in Westport, CT, is a diversified global manufacturer supporting the construction, mining, utility and other end markets. Revenues for the last twelve months through March 31, 2010, totaled approximately $4.0 billion. TEXAS RANGERS: Judge Says Chapter 11 Plan May Fail -------------------------------------------------- Texas Rangers Baseball Partners is now scheduled to present its Chapter 11 plan for confirmation on July 9. To recall, U.S. Bankruptcy Judge Michael Lynn signed an order on June 24 directing the team and the secured lenders to participate in mediation to begin July 16. The mediation is intended to help the team, its creditors and Hicks's lenders reach a consensual bankruptcy-exit plan for the franchise. With the mediation, Judge Lynn moved the plan confirmation hearing back to July 22 from July 9. However, according to Bloomberg News, at a June 25 hearing, the buying group told the judge they didn't want the confirmation hearing delayed. Judge Lynn accommodated their request while warning the buyers, "If you don't get it confirmed, you guys -- not me, you guys -- decided to push for a decision on July 9, and you're going to live with whatever decision I reach." Judge Lynn said in a June 22 opinion that the plan couldn't be confirmed unless the limited and general partnerships that now own the team are allowed to vote again. Texas Rangers has received approval from the Bankruptcy Court of the Disclosure Statement explaining the proposed Prepackaged Reorganization Plan. The Plan provides for the sale of substantially all of the assets of TRBP -- including the Texas Rangers Major League Baseball Club -- to Rangers Baseball Express LLC, an entity controlled by Chuck Greenberg and Nolan Ryan, through the Prepackaged Plan. Although the lenders are owed $525 million in total, they receive only $75 million directly from the team because that's the limit of the secured debt the team itself guaranteed. About Texas Rangers Texas Rangers Baseball Partners owns and operates the Texas Rangers Major League Baseball Club, a professional baseball club in the Dallas/Fort Worth Metroplex. TRBP is a Texas general partnership, in which subsidiaries of HSG Sports Group LLC own a 100% stake. Controlled by Thomas O. Hicks, HSG also indirectly wholly-owns Dallas Stars, L.P., which owns and operates the Dallas Stars National Hockey League franchise. The Texas Rangers have had five owners since the club moved to Arlington in 1972. Mr. Hicks became the fifth owner in the history of the Texas Rangers on June 16, 1998. In its petition, Texas Rangers Baseball Partners said it had both assets and debt of less than $500 million. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtor. Forshey & Prostok LLP serves as conflicts counsel. Parella Weinberg Partners LP serves as financial advisor. Lenders to the Texas Rangers sought to force the baseball team's equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D. Tex. Case No. 10-43624 and 10-43625). The lenders, a group that includes investment funds Monarch Alternative Capital and Kingsland Capital Management, filed an involuntary bankruptcy petition on May 28 against the two companies. The two companies were not included in the May 24 Chapter 11 filing of TRBP. TEXAS RANGERS: MLB & Creditors Must Surrender Documents ------------------------------------------------------- Angela K. Brown at The Associated Press reports that a federal bankruptcy judge ordered Major League Baseball and Texas Rangers' creditors to hand over documents about actions and conversation that took place before Texas Rangers filed for bankruptcy. Each side has accused the other of withholding information related to the team's Chapter 11 bankruptcy filing. About Texas Rangers Texas Rangers Baseball Partners owns and operates the Texas Rangers Major League Baseball Club, a professional baseball club in the Dallas/Fort Worth Metroplex. TRBP is a Texas general partnership, in which subsidiaries of HSG Sports Group LLC own a 100% stake. Controlled by Thomas O. Hicks, HSG also indirectly wholly-owns Dallas Stars, L.P., which owns and operates the Dallas Stars National Hockey League franchise. The Texas Rangers have had five owners since the club moved to Arlington in 1972. Mr. Hicks became the fifth owner in the history of the Texas Rangers on June 16, 1998. In its petition, Texas Rangers Baseball Partners said it had both assets and debt of less than $500 million. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtor. Forshey & Prostok LLP serves as conflicts counsel. Parella Weinberg Partners LP serves as financial advisor. Lenders to the Texas Rangers sought to force the baseball team's equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D. Tex. Case No. 10-43624 and 10-43625). The lenders, a group that includes investment funds Monarch Alternative Capital and Kingsland Capital Management, filed an involuntary bankruptcy petition on May 28 against the two companies. The two companies were not included in the May 24 Chapter 11 filing of TRBP. TIMOTHY CREDE: Voluntary Chapter 11 Case Summary ------------------------------------------------ Joint Debtors: Timothy J. Crede aka Tim J. Crede Deborah K. Crede 39202 East Renick Road Oak Grove, MO 64075 Bankruptcy Case No.: 10-43293 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Western District of Missouri (Kansas City) Judge: Arthur B. Federman 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 Timothy J. Crede and Deborah K. Crede. TOMAS MARTINEZ: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Tomas Martinez dba Cucamonga Redwood Nursury Products 707 N. Cummings Street Los Angeles, CA 90033 Bankruptcy Case No.: 10-35693 Chapter 11 Petition Date: June 24, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Sheri Bluebond Debtor's Counsel: Anthony Egbase, Esq. Law Offices of Aanthony O Egbase & Assoc 350 S Figueroa Street, Suite 189 Los Angeles, CA 90071 Tel: (213) 620-7070 E-mail: info@anthonyegbaselaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 4 largest unsecured creditors filed together with the petition is available for free at The petition was signed by the Debtor. Debtor-affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Ana R. Manzo 10-22682 04/02/10 East LA Leonard LLC 10-32251 06/01/10 TWIN LAKES: Case Summary & 9 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Twin Lakes Apartments, LLC P.O. Box 22546 Oklahoma City, OK 73123 Bankruptcy Case No.: 10-13881 Chapter 11 Petition Date: June 25, 2010 Court: United States Bankruptcy Court Western District of Oklahoma (Oklahoma City) Judge: T.M. Weaver Debtor's Counsel: G. Rudy Hiersche, Jr., Esq. 105 North Hudson Hightower Building, Suite 300 Oklahoma City, OK 73102 Tel: (405) 235-3123 E-mail: rudy@hlfokc.com Scheduled Assets: $9,821,500 Scheduled Debts: $7,555,416 A list of the Company's 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/okwb10-13881.pdf The petition was signed by Lew McGinnis, president of Macco Properties, Inc., Debtor's managing member. UNIVERSAL HEALTH: Fitch Assigns 'BB' Rating on Senior Facility -------------------------------------------------------------- Fitch Ratings assigns a 'BB' rating to Universal Health Service's proposed senior secured bank credit facility, and places the rating on Rating Watch Negative. UHS's outstanding ratings, as listed below, remain on Rating Watch Negative: -- Issuer Default Rating 'BB'; -- Unsecured notes 'BB'; -- Unsecured bank facility 'BB'. The ratings apply to approximately $875 million of debt outstanding as of March 31, 2010. Fitch downgraded UHS's IDR and debt securities ratings to 'BB' from 'BBB' on May 18, 2010, following UHS's announcement that it agreed to acquire Psychiatric Solutions, Inc., for $3.1 billion including $2 billion in cash and the assumption of $1.1 billion of net debt of Psychiatric Solutions. Subject to regulatory approvals and Psychiatric Solutions shareholder approval, the transaction is expected to close in the fourth quarter of 2010. The transaction will be entirely debt funded through the proposed senior secured bank credit facility. The facility is expected to comprise of an $800 million revolving credit facility, $1 billion term loan A, $1.55 billion term loan B and a $250 million accounts receivables securitization facility. Fitch expects that a portion of the proceeds of the new facility will be used to retire $275 million in commitments outstanding under the company's current unsecured bank facility, and anticipates withdrawing the rating on the unsecured bank facility upon closing of the proposed secured bank facility. The company's $200 million unsecured notes due 2011 and $400 million unsecured notes due 2016 are expected to remain outstanding post closing of the acquisition. The unsecured note indenture requires that the notes become secured upon the occurrence of liens in excess of 10% of consolidated net tangible assets. Based on this, if the notes remain outstanding after closing of the proposed secured bank facility, Fitch expects they will become secured on a pari passu basis. If the 2011 and 2016 notes do not become secured, the rating on these securities will be downgraded, likely to a level two notches below the IDR, given the high level of secured debt in the pro forma capital structure through the proposed bank facility, which will prejudice recovery of subordinated debt classes. The company also anticipates issuing $400 million of unsecured notes to fund a portion of the acquisition. Similarly, Fitch expects to rate these notes at a level two notches below the IDR. There is the potential for UHS's secured debt -- including the proposed bank facility and potentially the 2011 and 2016 notes, to be rated one notch above the company's IDR, depending upon the quality of the security provided as collateral. If the collateral includes hard asset security, as opposed to solely capital stock, enhanced recovery potential may support notching the rating up relative to the IDR. The acquisition will significantly impact UHS's operating and credit metrics. Following the transaction, UHS will generate in the area of $1.1 billion of EBITDA annually, including about $330 million contributed by Psychiatric Solutions. Based on these expectations, debt is expected to equal between 3.5 times and 4.0x EBITDA. In contrast, based on its current capital structure UHS's debt-to-EBITDA equaled 1.2x as of March 31, 2010. As a result of the increase in pro forma debt leverage, Fitch downgraded UHS's IDR and debt securities ratings by three-notches to 'BB' and placed the ratings on Rating Watch Negative on May 18, 2010, upon the company's announcement of the acquisition. Maintenance of the ratings on Watch Negative at this time indicates that there is the potential for further ratings downgrades, and Fitch expects to resolve the Negative Watch prior to the close of the transaction. Any potential further downgrade to UHS's IDR is likely to be limited to one notch. Credit risk related to higher debt leverage to complete the transaction is partly offset by the anticipated benefits to UHS's operating profile. The acquisition will significantly expand the company's presence in the behavioral health sector. Prior to the transaction, UHS's behavioral health segment contributed about 25% of the company's revenues and about 35% of its EBITDA. Fitch estimates that post acquisition the contribution of the behavioral segment will increase to 45% of revenues and 55% of EBITDA. UHS's behavioral health segment provides operational diversification that is unique amongst for-profit hospital providers. In general, relative to the acute care hospital segment, behavioral health operations are more profitable, exhibit less volatility in patient volumes and revenues and are less vulnerable to certain challenges faced by the acute care segment, including high levels of uncompensated care. In addition, the acquisition will increase UHS's geographic diversity, ameliorating credit risk related to its high degree of exposure to the Las Vegas, NV market, which represented about 22% of revenues in 2009. USA COMMERCIAL: Contractor Agrees to Pay $5.5 Million to Trust -------------------------------------------------------------- A contractor who purportedly received millions of dollars in illegal transfers from two insiders at USA Commercial Mortgage Co. has agreed to pay $5.5 million to the trust charged with liquidating the fraud-ridden mortgage company's remaining assets, according to Bankruptcy Law360. Law360 says Judge Robert C. Jones of the U.S. District Court for the District of Nevada signed off on the agreed judgment on Wednesday. About USA Commercial Based in Las Vegas, Nevada, USA Commercial Mortgage Company, dba USA Capital -- http://www.usacapitalcorp.com/-- provides more than $1 billion in short-term and permanent financing to homebuilders, commercial developers, apartment owners and institutions nationwide. The Company and its debtor-affiliates filed for chapter 11 protection on April 13, 2006 (Bankr. D. Nev. Case Nos. 06-10725 to 06-10729). Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm, and Annette W. Jarvis, Esq., at Ray Quinney & Nebeker, P.C., represent the Debtors in their restructuring efforts. Thomas J. Allison, a senior managing director at Mesirow Financial Interim Management LLC, has been employed as Chief Restructuring Officer for the Debtors. Susan M. Freeman, Esq., and Rob Charles, Esq., at Lewis and Roca LLP represent the Official Committee of Unsecured Creditors of USA Commercial Mortgage Company. Edward M. Burr at Sierra Consulting Group, LLC, gives financial advice to the Creditors Committee of USA Mortgage. Marc A. Levinson, Esq., and Jeffery D. Hermann, Esq., at Orrick, Herrington & Sutcliffe LLP, and Bob L. Olson, Esq., and Anne M. Loraditch, Esq., at Beckley Singleton, Chartered, represent the Official Committee of Equity Security Holders of USA Capital Diversified Trust Deed Fund, LLC. FTI Consulting, Inc., gives financial advice to the Equity Committee of USA Diversified. Candace C. Carlyon, Esq., and Shawn w. Miller, Esq., at Shea & Carlyon, Ltd., and Jeffrey H. Davidson, Esq., Frank A. Merola, Esq., and Eve H. Karasik, Esq., at Stutman, Treister & Glatt, PC, represent the Official Committee of Equity Security Holders of USA Capital First Trust Deed Fund, LLC. Matthew A. Kvarda, at Alvarez & Marsal, LLC, gives financial advise to the Equity Committee of USA First. When the Debtors filed for protection from their creditors, they estimated assets of more than $100 million and debts between $10 million and $50 million. The Debtor's Chapter 11 plan of reorganization was confirmed on Jan. 8, 2007. VISTEON CORP: Expands Automotive Systems Manufacturing in China --------------------------------------------------------------- FAWER Visteon Climate Control System (FVCC), a joint venture between Visteon Corporation and FAWER Automotive Component Co., Ltd., has moved and expanded its manufacturing operation in Changchun, China, which supplies automotive climate products to vehicle manufacturers in China and export markets. Featuring world-class manufacturing equipment and processes, the new facility features an expanded climate product line and localized design services, and enhances the joint venture's overall manufacturing efficiency. The new plant will produce heating, ventilation and air conditioning systems (HVAC) and mechanically assembled aluminum radiators, in addition to the control atmosphere brazed aluminum radiators that FVCC currently produces. "The new facility's expanded capability includes localized design services that complement Visteon's offering in the Chinese climate control systems market," said Joy Greenway, Visteon product group president. "Visteon is fully committed to supporting FVCC's continued success as part of our overall growth strategy in China and the Asia Pacific region." Drawing on Visteon's advanced technology support and strategic partnerships, FVCC developed strong on-site research and development capability. In 2009, FVCC established a technical ollaboration with Japan Climate Systems (JCS), another Visteon joint venture, leading to the introduction of the HVAC product line. In addition, FVCC successfully localized the design of radiators to meet the needs of various vehicle manufacturers. Located in the Changchun Automotive Development Zone in northeast China, the highly automated, 23,000-square meter (248,000-square foot) facility has the capacity to produce 1.2 million brazed radiators, 250,000 mechanical radiators and 240,000 HVAC systems annually. "The expanded plant is a strong testimony to the strategic and successful partnership between Visteon and FAWER," said Ye Fan, general manager of FAWER Automotive Component Co., Ltd. "We are confident that the new plant positions us well to provide our customers with the highest quality products." Established in 1995, FVCC has grown into a leading automotive climate components supplier, renowned for its high-quality radiators. It serves a wide range of automakers, such as FAW- Volkswagen, First Car Company, FAW Jiefang, FAW Xiali, FAW Hainan, Shanghai Volkswagen, Chang'An Ford, Chery, Geely, and Great Wall. The plant has ISO/TS 16949 and ISO 14001 quality and environmental certification. 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) VISTEON CORP: Goldman, 3.90% Owner, Party to Plan Funding Deal -------------------------------------------------------------- In an amended 13D filing with the U.S. Securities and Exchange Commission dated June 21, 2010, The Goldman Sachs Group, Inc., and Goldman, Sachs & Co. disclosed that they recently entered into amendments of Plan Support Agreements with Visteon Corporation. Goldman Sachs is one of the investors Visteon entered an Equity Commitment Agreement into in relation to the Chapter 11 Plan and Disclosure Statement Visteon filed before the U.S. Bankruptcy Court for the District of District of Delaware. Goldman Sachs entered into separate amendments of the Plan Support Agreement and the Equity Commitment Agreement on June 15, 2010. The First Amendment to the Equity Commitment Agreement amends, among other things, (i) Section 7.2(b) of the ECA to extend the date by which Visteon has to use its commercially reasonable efforts to obtain an order confirming a plan of reorganization to October 4, 2010, and (ii) Section 10.1(c) of the ECA to extend the date by which the Equity Commitment Agreement and a disclosure statement must be approved by the Bankruptcy Court to June 20, 1010. Accordingly, the Bankruptcy Court approved on June 17 Visteon's entry into the ECA, as amended from time to time. The First Amendment to the Plan Support Agreement modifies the Plan Support Agreement to conform to the Fourth Amended Plan and Disclosure Statement filed by Visteon on June 14, 2010. Goldman Sachs Group, Inc., and Goldman, Sachs & Co. are beneficial ownership of 5,079,455 shares of Visteon Corporation common stock, representing 3.90% of the shares of outstanding Visteon stock. As of April 26, 2010, Visteon had 130,320,880 shares of common stock 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) VISTEON CORP: UBS, 0.12% Owner, Party to Plan Funding Deal ---------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission dated June 22, 2010, UBS AG disclosed that it is deemed to beneficially own 160,817 shares of Visteon Corporation. UBS' shares constitutes 0.12% of Visteon's 130,320,880 outstanding shares as of April 26, 2010. UBS is a major international banking and financial firm. It is a Swiss banking corporation, is publicly owned and its shares are listed on the Zurich and New York exchanges. UBS is one of the co-investors under a Plan Equity Commitment Agreement among Visteon and certain other investors. 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) WAYTRONX INC: Incurs $1.2 Million Net Loss in Q1 2010 ----------------------------------------------------- Waytronx, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.2 million on $7.7 million of revenue for the three months ended March 31, 2010, compared with a net loss of $1.3 million on $6.1 million of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $38.5 million in assets, $33.7 million of liabilities, and $4.8 million of stockholders' equity. As reported in the Troubled Company Reporter on April 6, 2010, Webb & Company, P.A., in Boynton Beach, Fla., 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 the Company has a net loss of $4.2 million and an accumulated deficit of $54.8 million at December 31, 2009. The Company had an accumulated deficit of $55.9 million as of March 31, 2010. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?62c7 Tualatin, Ore.-based Waytronx, Inc. (OTC BB: WYNX) -- http://www.waytronx.com/-- has pioneered and is developing innovative thermal management solutions capable of revolutionizing the semiconductor, solar and electronic packaging industries, among others, utilizing its patented WayCool(TM)/WayFast(TM) hybrid mesh architecture. WESTPARK PROMENADE: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Westpark Promenade, LLC P.O. Box 2394 Peachtree City, GA 30269 Bankruptcy Case No.: 10-12413 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Northern District of Georgia (Newnan) Debtor's Counsel: W. Kevin Snyder, Esq. Lacy & Snyder LLP P.O. Box 3709 Peachtree City, GA 30269 Tel: (770) 486-8445 Fax: (770) 486-8889 E-mail: kevin@lacysnyder.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 7 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb10-12413.pdf The petition was signed by Howard Guthrie, managing member. WON SHIN LEE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: Won Shin Lee Jamie H. Lee 11137 Abbotsford Place Belvidere, IL 61008 Bankruptcy Case No.: 10-73190 Chapter 11 Petition Date: June 25, 2010 Court: U.S. Bankruptcy Court Northern District of Illinois (Rockford) Judge: Manuel Barbosa Debtor's Counsel: George P. Hampilos, Esq. Schirger, Monteleone, Hampilos 308 West State Street, Suite 210 Rockford, IL 61101 Tel: (815) 962-0044 Fax: (815) 962-6250 E-mail: georgehamp@aol.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $365,713 while debts total $1,384,645. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-73190.pdf WORLDGATE COMMS: March 31 Balance Sheet Upside-Down by $1 Million ----------------------------------------------------------------- Worldgate Communications, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2,848,000 on $287,000 of revenue for the three months ended March 31, 2010, compared with net income of $2,265,000 on $1,238,000 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $6,252,000 in assets and $7,275,000 of liabilities, for a stockholders' deficit of $1,023,000 A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6589 Trevose, Pa.-based Worldgate Communications, Inc. is a provider of digital voice and video phone services and next generation video phones. The Company designs and develops digital video phones featuring real-time, two-way video. It also provides a turn-key digital voice and video communication services platform supplying complete back-end support services. YURI PLYAM: Precision, Castle Want Bankruptcy Case Dismissed ------------------------------------------------------------ Precision Development, LLC, and Castle Asset Management, LLC, have asked the U.S. Bankruptcy Court for the Central District of California to dismiss the Chapter 11 case of Yuri Plyam and Natalia Plyam. Precision Development and Castle Asset claimed that the Debtors' bankruptcy filing was made in bad faith and should be dismissed. Two court days before trial was to commence in Precision Development, LLC, et al v. Plyam, et al., BC 384285 (Los Angeles Sup. Ct, complaint filed January 25, 2008) (the State Court Case), the defendants there and Debtors here filed their Petition. There are three defendants in the State Court Case: Yuri and Natalia Plyam are Debtors in this petition, while Mikhail Plyam (Yuri's Father) is a Debtor in a concurrently filed Chapter 7 petition before Judge Mund of the San Fernando Valley Division. The parties had been locked in litigation for over two years over 27 separate development properties, have spent millions of dollars to pursue the matter, and have litigated dozens of motions and taken 52 days of depositions. Precision Development and Castle Asset are owned by Clare and Sara Bronfman. Yuri and Natalia Plyam, who were financial advisors to the Bronfmans, were managers and minority owners of Precision and Castle Asset. The Bronfmans were majority and passive owners. The Bronfmans contend that the Plyams embezzled millions of dollars from the venture to pursue an opulent and decadent lifestyle. The Bronfmans' unsecured claims against the Plyams consist of 98.8% of the entirety of all unsecured claims listed on the Plyams' list of top 20 unsecured creditors filed with the Petition. The other 1.2% claims on the Top 20 List consist largely of claims of the Plyams' lawyers and experts employed to defend the State Court Case. "There is no federal Bankruptcy Court interest in asserting control over what should be a state court dispute. This is a two-party dispute which should be returned to the state court," Precision Development and Castle Asset stated. Precision Development and Castle Asset said that they may be able to re-secure their trial date in the Superior Court if relief is quickly granted. Otherwise, with the financial difficulties of the state court system, resolution of this matter in state court could languish if it takes some time here to resolve the matter, Precision Development and Castle Asset claimed. Precision Development and Castle Asset are represented by Latham & Watkins LLP. Beverly Hills, California-based Yuri Plyam aka Yura Plyam and Natalia Plyam aka Natasha Plyam filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. C.D. Calif. Case No. 10- 34923). Michael Jay Berger, Esq., who has an office in Beverly Hills, California, assists the Company in its restructuring effort. The Debtors estimated their assets and debts at $10,000,001 to $50,000,000. YURI PLYAM: Section 341(a) Meeting Scheduled for July 27 -------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of Yuri Plyam's creditors on July 27, 2010, at 1:15 p.m. The meeting will be held at 725 S Figueroa Street, Room 2610, Los Angeles, CA 90017. 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. Beverly Hills, California-based Yuri Plyam aka Yura Plyam and Natalia Plyam aka Natasha Plyam filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. C.D. Calif. Case No. 10- 34923). Michael Jay Berger, Esq., who has an office in Beverly Hills, California, assists the Company in its restructuring effort. The Debtors estimated their assets and debts at $10,000,001 to $50,000,000. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 3, 2010 AMERICAN BANKRUPTCY INSTITUTE Atlanta Consumer Bankruptcy Skills Training Georgia State Bar Building, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 11-14, 2010 AMERICAN BANKRUPTCY INSTITUTE Hawai.i Bankruptcy Workshop The Fairmont Orchid, Big Island, Hawaii Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 14, 2010 AMERICAN BANKRUPTCY INSTITUTE ABI/NYIC Golf and Tennis Fundraiser Maplewood Golf Club, Maplewood, N.J. Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 20, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Fordham Law School, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 23-25, 2010 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 1, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE ABI/UMKC Midwestern Bankruptcy Institute Kansas City Marriott Downtown, Kansas City, Kan. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 6-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Oct. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Chicago Consumer Bankruptcy Conference Standard Club, Chicago, Ill. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 15, 2010 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Hilton New Orleans Riverside, New Orleans, La. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 29, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium The Savoy, London, England Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. __, 2010 AMERICAN BANKRUPTCY INSTITUTE Delaware Views from the Bench and Bankruptcy Bar Hotel du Pont, Wilmington, Del. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Hyatt Regency Dearborn, Dearborn, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29, 2010 RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP, INC. 17th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York City Contact: 1-903-595-3800; http://www.renaissanceamerican.com/ Dec. 9-11, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, a JW Marriott Resort & Spa, Scottsdale, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Jan. 20-21, 2011 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ January 26-28, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Distressed Investing Conference Aria Las Vegas Contact: http://www.turnaround.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 (tentative) AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Last Updated: June 15, 2010 ********* 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 ***