/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100701.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, July 1, 2010, Vol. 14, No. 180 Headlines 155 EAST TROPICANA: John Blakely Resigns as Director ABITIBIBOWATER INC: Court Approves Backstop Commitment Pact ABITIBIBOWATER INC: Court OKs Consent No. 9 to Credit Pact ABITIBIBOWATER INC: Proposes Work Fee Letter With Exit Arrangers ADVANCED MICRO: Unveils Exchange Offer for 8.125% Senior Notes ADVANCED MICRO: Unveils Exchange Offer for 8.125% Senior Notes ALL-AMERICAN SPORTPARK: Posts $150,848 Net Loss in Q1 2010 AMBAC FINANCIAL: Enters Into Add'l Debt for Equity Exchanges AMERICAN CAPITAL: Reports Removal of 'Going Concern' Doubt AMERICAN CAPITAL: S&P Raises Counterparty Credit Rating to 'B-' ANGEL ACQUISITION: Reports Earnings of $113,500 for Q1 2010 AVICENA GROUP: Caturano & Company Resigns as Accountant AYALA FAMILY: Voluntary Chapter 11 Case Summary BACCHUS DEVELOPMENT: Expects to Emerge From Bankruptcy on July 1 BANKRATE INC: Deal Upsizing Won't Affect S&P's 'B' Note Rating BARBARA MAJOR: Case Summary & 20 Largest Unsecured Creditors BEAR STEARNS: Judge Pares Liquidators' Suit Against Deloitte BROWN PUBLISHING: Parties Have Until July 22 to Competing Bids BUCYRUS COMMUNITY: Wants Until November 16 to File Chapter 11 Plan BUILDERS FIRSTSOURCE: JLL & Warburg Pincus Hold 50.5% of Shares CAROLINA PARK: Chapter 11 Reorganization Case Dismissed CENTAUR LLC: Wants Plan Solicitation Exclusivity Until Sept. 30 CENTRAL DELAWARE: Section 341(a) Meeting Scheduled for July 23 CENTRAL DELAWARE: Taps Pinckney Harris as Bankruptcy Counsel CHELSEA HEIGHTS: Section 341(a) Meeting Scheduled for July 22 CINEMARK USA: S&P Raises Rating on Secured Debt to 'BB-' CIRCUIT CITY: Plan Confirmation Hearing Continued to July 22 CIRCUIT CITY: Wants Quebecor World's Claim Reclassified CKE RESTAURANTS: Stockholders OK Merger Deal With Apollo Units COLONIAL BANCGROUP: Has Until August 20 to Propose Chapter 11 Plan COMMSCOPE INC: Moody's Gives Positive Outlook, Keeps 'Ba3' Rating COMMUNICATION INTELLIGENCE: Inks Financing Deal to Eliminate Debt CORUS BANKSHARES: Claims Ownership of $257-Mil. Tax Refunds DELTA AIR: Fitch Affirms Issuer Default Rating at 'B-' DOLLAR THRIFTY: Files 2009 Annual Report for Retirement Plan DOLLAR THRIFTY: Future Remains Uncertain for Tulsa Operations DOLLAR THRIFTY: Opens 12th 'Customer-Choice' Location DONNIE CROSS: Case Summary & 7 Largest Unsecured Creditors DRAGON PHARMA: Shareholders to Vote on Datong Merger on July 20 DSG INTERNATIONAL: Moody's Raises Senior Unsecured Rating to 'Ba3' DUNE ENERGY: Withdraws Common Stock From NYSE AMEX DYNAMIC BUILDERS: Proofs of Claim Due August 20 DYNAMIC BUILDERS: Wants to File Reorganization Plan Until Nov. 26 DYNCORP INTERNATIONAL: Stockholders OK Merger With Cerberus ECOSPHERE TECHNOLOGIES: Posts $23.1 Million Net Loss in Q1 2010 EDISON MISSION: Moody's Cuts Ratings on Senior Notes to 'B3' EIGEN INC: Consensual Deal Allows Kazi Purchase; Plan in the Works FAIRPOINT COMMS: Vermont Public Service Board Rejects Plan FIRST INDUSTRIAL: Fitch Downgrades Issuer Default Rating to 'B+' FLYING J: Faces Criticism Over Environmental Liabilities FONTAINEBLEAU LV: Fidelity Proposes Rule 2004 Exams Notice Filing FONTAINEBLEAU LV: $40.6 Mil. in Claims Change Hands for May FONTAINEBLEAU LV: Icahn Pulls $1.2 Bil. Permits for Casino FORD MOTOR: To Reduce Debt by More Than $4 Billion FRANKLIN TOWERS: Posts $316,000 Net Loss in Q1 2010 FRASER PAPERS: To Seek Court OK to Sell New Hampshire Paper Mill FREDDIE MAC: Terminates Employment of Ex. VP Michael Perlman FREDDIE MAC: Approves 2010 Incentive Scorecards FREDDIE MAC: Files May 2010 Monthly Volume Summary FREEPORT-MCMORAN COPPER: Moody's Reviews 'Ba1' Corp. Family Rating FRONTIER DRILLING: Noble Expected to Repay Frontier ASA Debt GARY R MCLEAN: Can Sell Sun Valley Condominium to Pendleton King GENERAL GROWTH: To File Holdings' Reorganization Plan by July 9 GENERAL MOTORS: In Talks With Lenders to Partner for Car Loans GENERAL MOTORS: U.S. Carmakers Leading Job Creation, Says AAPC GENERAL MOTORS: Buyer Demand Keeps Most U.S. Plants Open in Summer GENERAL MOTORS: Hosts 1st Global Business Conference GENERAL MOTORS: Court OKs Sale of Wilmington Plant to Fisker GENTIVA HEALTH: S&P Assigns 'BB+' Rating on $200 Mil. Loan GIGOPTIX INC: Gets Okay from NYSE Amex to File Listing Application GLEBE, INC: Files for Chapter 11 to Restructure Debt GLEBE, INC: Case Summary & 20 Largest Unsecured Creditors GLENN MANIGAULT: Case Summary & 20 Largest Unsecured Creditors GLOUCESTER ENGINEERING: Case Converted to Voluntary Chapter 11 GLOUCESTER ENGINEERING: Sec. 341(a) Meeting Scheduled for July 27 GREAT ATLANTIC: Files 2009 Annual Report for Savings Plan GREAT CANADIAN: Moody's Affirms 'Ba3' Corporate Family Rating GREEKTOWN HOLDINGS: Mackenzie Bills $0.89MM for March-May Work GRUBB & ELLIS: Posts $24.1 Million Net Loss for Q1 2010 GRUBB & ELLIS: Sells Add'l $1.5MM of Its 7.95% Convertible Notes HCA INC: Hercules OKs Increase in Authorized Shares HELIX WIND: Reports Earnings of $18.3 Million for Q1 2010 HOST HOTELS: Moody's Affirms 'Ba1' Senior Unsecured Debt Rating HUGHES COMMUNICATIONS: S&P Affirms 'B' Corporate Credit Rating INDEPENDENCE TAX II: March 31 Balance Sheet Upside-Down by $44.3MM ISLE OF CAPRI: Equity Offering Won't Affect Moody's 'B2' Rating HARBOUR EAST: 7935 NBV Wants Reorganization Case Dismissed LEHMAN BROTHERS: Wins Nod to Buy 2008-09 D&O Policy Tail Extension LEHMAN BROTHERS: Wins Nod to Invest $255MM in 237 Park Ave. Tower LEHMAN BROTHERS: Wins Approval to Send Contracts to Aurora LEHMAN BROTHERS: Receives Consent to Transfer $262MM to Rosslyn LEHMAN BROTHERS: LCPI Settlement With State Street Approved LEHMAN BROTHERS: Submits Term Sheet for Archstone Credit Facility LEHMAN BROTHERS: Wins OK to Allow Delivery of Acceleration Notices LIVE CURRENT: Reports Earnings of $74,345 for First Quarter LYONDELL CHEMICAL: Clifford Seeks $4.8M for Work as Counsel MAYSVILLE INC: Foreclosure Prompts Bankruptcy Filing MAYSVILLE INC: Case Summary & 6 Largest Unsecured Creditors MCALPINE-PROVIDENCE: Case Summary & 5 Largest Unsecured Creditors MGM RESORTS: Fitch Affirms Issuer Default Rating at 'CCC' MMFX INTERNATIONAL: Has Until September 20 to File Plan Outline MONEYGRAM INTERNATIONAL: Fitch Affirms B+ Issuer Default Rating NETWORK COMMUNICATIONS: Filing of Annual Report Will be Delayed NUMOBILE INC: Posts $1.2 Million Net Loss in Q1 2010 NORTEL NETWORKS: Proposes to File Plan Ahead of Disc. Statement NORTEL NETWORKS: NN CALA Wants Exclusivity Until January 2011 NORTEL NETWORKS: Proposes to Terminate Retiree Plans NORTEL NETWORKS: Disputes Avaya's Purchase Price Calculation ORANGE GROVE: Wants Access to Secured Creditors' Cash Until Oct. 1 ORLEANS HOMEBUILDERS: Lenders Support Short-Term Incentive Plan PAETEC HOLDING: Exchange Offer for 8-7/8% Notes Expires July 23 PALM INC: Stockholders Approve Merger Plan & Agreement PRIUM TUMWATER: Section 341(a) Meeting Scheduled for July 22 PRIUM TUMWATER: Taps Ryan Swanson as General Bankruptcy Counsel RAMSEY INDUSTRIES: Court Approves Chapter 11 Reorganization Plan REFCO INC: Ex-Lawyer Collins Settles SEC Fraud Action RICHARDSON HOSPITAL: S&P Raises Ratings on Bonds to 'BBB-' RITE AID: Stockholders Approve Adoption of 2010 Plan RITE AID: Stockholders Elect Nine Nominees to Board of Directors RITE AID: Promotes Kenneth Martindale as Chief Operating Officer RMA REAL ESTATE: Involuntary Chapter 11 Case Summary ROBERT MARSHALL: Case Summary & 20 Largest Unsecured Creditors RUMSEY LAND: Court Extends Plan Outline Filing Until July 29 SAINT VINCENTS: Stonehenge Buys Sixth Avenue Bldg. for $67.3MM SINCLAIR BROADCAST: CFO Amy Unloads 30,000 Shares SINCLAIR BROADCAST: Files 2009 Annual Report for 401(k) Plan SMURFIT-STONE: Completes Financial Restructuring SOFTLAYER TECHNOLOGIES: S&P Assigns 'B' Corporate Credit Rating SONICBLUE INC: Creditors Add MoFo to Malpractice Claims Suit STRATEGIC LABOR: Files for Chapter 11 Bankruptcy Protection TACO DEL MAR: Has Until September 20 to File a Chapter 11 Plan TENET HEALTHCARE: Names Ronald Rittenmeyer as New Director TEXAS RANGERS: MLB Balks at Request for Information on Bids THOMAS WILLIAMS: Case Summary & 20 Largest Unsecured Creditors TRICO SHIPPING: Moody's Junks Rating on Senior Secured Notes TRIDENT RESOURCES: Emerges from Bankruptcy in Canada & U.S. URS CORPORATION: Scott Wilson Deal Won't Move Moody's 'Ba1' Rating VANGUARD HEALTH: Moody's Affirms 'B2' Corporate Family Rating VERNON MAXWELL: Case Summary & 13 Largest Unsecured Creditors WALLACE THEATER: S&P Gives Negative Outlook; Affirms 'B-' Rating WEEMS RESORTS: Case Summary & 7 Largest Unsecured Creditors XERIUM TECHNOLOGIES: Posts $30.2 Million Net Loss in Q1 2010 XERIUM TECHNOLOGIES: To Close Stowe Woodward Plant in Ontario YRC WORLDWIDE: Reaches Acquisition Deal With Austin Ventures * Legislator Wants Guns Exempted From Creditors' Claims * Levene, Neale, Bender, Rankin & Brill Elects New Partner * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* 155 EAST TROPICANA: John Blakely Resigns as Director ---------------------------------------------------- John T. Blakely, a member of both the management board of 155 East Tropicana, LLC and the board of directors of 155 East Tropicana Finance Corp., tendered his resignation from both boards, effective immediately, in order to pursue other interests. About 155 East Tropicana Las Vegas, Nev.-based 155 East Tropicana, LLC, was formed in June 2004 to acquire the Hotel San Remo Casino and Resort, a casino hotel located in Las Vegas, Nevada, from Eastern & Western Hotel Corporation. The Hotel San Remo was renovated and re- branded and is now known as Hooters Casino Hotel. * * * According to the TCR on April 22, 2010, Moody's Investors Service has withdrawn the ratings of 155 East Tropicana LLC for business reasons. These ratings withdrawn include the 'Ca' Corporate family rating. The Company's balance sheet at March 31, 2010, showed $122.7 million in total assets and $171.8 million in total liabilities, for a stockholder's deficit of $49.0 million. ABITIBIBOWATER INC: Court Approves Backstop Commitment Pact ----------------------------------------------------------- Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware has approved the Backstop Commitment Agreement that AbitibiBowater Inc. and its debtor affiliates secured with investors Fairfax Financial Holdings Limited, Avenue Capital Management and certain prepetition noteholders to backstop a rights offering that will allow the Debtors to raise up to $500 million through the issuance of notes. Under the Rights Offering, AbitibiBowater would offer new convertible notes with a seven-year maturity from the date of closing to eligible unsecured creditors. Upon the effective date of the Debtors' Chapter 11 Plan, the notes would be obtained upon exercise of the rights and convertible into common stock of the emerged company. The Bankruptcy Court previously approved certain revisions made to the Bid Procedures governing the Rights Offering, with respect to the release provisions on Fairfax, as Backstop Investor that pledged to provide substantial new capital to the Company through the Commitment Agreement. The Revised Release Provisions were agreed among the Debtors, Fairfax and the Official Committee of Unsecured Creditors. The Honorable Mr. Justice Clement Gascon, J.S.C., of the Superior Court Commercial Division for the District of Montreal in Quebec, Montreal, Canada also entered an order on June 10, 2010, authorizing the applicants under the Companies' Creditors Arrangement Act in Canada to implement the Bid Procedures. In approving the Backstop Commitment Agreement, Judge Carey permits the Debtors to pay all amounts due, including "aggregate commitment payments" as the term is defined under the Agreement. The Bankruptcy Court also authorizes the Debtors to pay amounts arising from the implementation and effectuation of transactions contemplated under the Commitment Agreement, including the payment of fees and expenses of an escrow agent pursuant to an escrow agreement among the Debtors, the Escrow Agent and the Creditors' Committee. The Bankruptcy Court's Backstop Commitment Agreement Approval Order is consistent with a proposed order submitted by the Debtors. Judge Carey specifically noted, however, that "the Termination Payment, if payable, pursuant to the Backstop Commitment Agreement, will be an administrative claim against each of the Debtors, other than Bowater Canada Finance Corporation, pursuant to Section 503 of the Bankruptcy Code." The Termination Payment refers to the aggregate payment to be paid by AbitibiBowater to all Investors upon the earlier to occur of (i) the effective date of the Chapter 11 Plan; or (ii) the effective date of any alternative transaction or other plan, if the Commitment Agreement is terminated, in amounts set forth in the Agreement. The Bankruptcy Court also authorizes the Debtors to make, execute and deliver one or more non-material amendments, waivers or supplements to the Commitment Agreement in a form agreed by the parties that is consistent with the Debtors' Chapter 11 Plan, as amended, with the consent of the Creditors' Committee. In line with this, Judge Carey directs the Debtors to send any non- material amendments, waivers or supplements to: * the counsel for the Monitor overseeing the Canadian Debtors' CCAA proceedings in Canada; * the counsel for the Creditors' Committee; * the Office of the United States Trustee; * counsel to Wilmington Trust Company, in its capacity as indenture trustee for the 7.95% Notes issued by Bowater Canada Finance Corporation; and * counsel to Aurelius Capital Management, LP; and * Contrarian Capital Management, LLC. Approval of the Bankruptcy Court will be required for any material amendments, waivers or supplements to the Commitment Agreement, including, without limitation, extension of the Outside Date, amendments to the terms of the Aggregate Commitment Payments or imposition of material conditions precedent. Subject to entry of an order approving the Disclosure Statement, Judge Carey authorizes the Debtors to execute, and deliver all instruments and take any other actions to implement and effectuate the transactions contemplated by the Plan Support Agreement, as defined in the Commitment Agreement, and any other documents relating to the Commitment Agreement. "For the avoidance of doubt, the failure of BCFC to support the Plan, in and of itself, [will] not constitute a breach of the Plan Support Agreement," Judge Carey ruled. "We are pleased with [the Bankruptcy] Court approval which supports our exit financing efforts. This is another important step forward as we look ahead to the Company's ultimate emergence from credit protection scheduled for early this Fall," AbitibiBowater President and Chief Executive Officer David J. Paterson said in an official statement. "The Company expects to emerge with a significantly improved financial position, resulting from its efforts to reduce costs, lower debt and mitigate the impact of ongoing market and currency fluctuations," Mr. Paterson said. Full-text copies of the Bankruptcy Court's Order and the Court- approved Backstop Commitment Agreement are available for free at: http://bankrupt.com/misc/ABH_ORDCommitmentPact.pdf http://bankrupt.com/misc/ABH_BackstopCommitmentPact.pdf 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: Court OKs Consent No. 9 to Credit Pact ---------------------------------------------------------- Bankruptcy Judge Kevin Carey authorized AbitibiBowater Inc. and its units to enter into "Consent No. 9" to the 2009 Credit Agreement they are a party to with Law Debenture Trust Company of New York, as administrative agent, and certain lender parties. The Ninth Consent to the DIP Facility provides for the consent of the DIP Agent and the Lenders to Bowater Inc.'s intent to pay for the fees and expenses of (1) APS Services, LLC and (2) Togut, Segal & Segal LLP, on behalf of Bowater Canada Finance Corporation, a wholly owned subsidiary of Bowater Inc., organized as an unlimited liability company under Nova Scotia law. BCFC issued notes in the principal amount of $600 million pursuant to an October 2001 indenture for 7.95% notes due 2011; whereby Bowater serves as guarantor and the Bank of New York serves a trustee. The Debtors sought to retain APS Services and the Togut Firm on the premise that in the event of a winding up of BCFC, BCFC may have potential claims against Bowater in relation to the BCFC notes pursuant to Section 135 of the Companies Act (Nova Scotia). Specifically, BCFC is seeking to retain APS Services as its special advisor, Lisa Donahue to serve as its vice president for restructuring, and the Togut Firm as its conflicts counsel. BCFC requires the services of the Firms to pursue a review of the potential claims and to represent its interests in relation to the potential claims. 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 Work Fee Letter With Exit Arrangers ---------------------------------------------------------------- The consummation of the AbitibiBowater's Chapter 11 Plan of Reorganization, as well as the CCAA Plan of Arrangement and Compromise in Canada, depend, among other things, on obtaining exit financing sufficient to meet the Company's cash obligations under the Plans and to provide the reorganized Company with appropriate working capital after emergence. The Company presently anticipates that it will need more than $2.3 billion in total capital to fund its emergence from bankruptcy. To facilitate the process of locating the necessary exit financing, the Company obtained the services of J.P. Morgan Securities Inc., Barclays Capital and Citigroup Global Markets, Inc., as arrangers, to (i) provide capital structuring services regarding Exit Financing proposals; (ii) make proposals for potential Exit Financing facilities; and (iii) perform necessary due diligence of the Company. By this motion, the Debtors seek permission from Judge Carey to enter into a work fee letter with the Arrangers as part of the Debtors' exit financing process, pay certain fees and expenses, and furnish certain indemnities. According to Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, the Work Fee Letter essentially contemplates that the Arrangers will provide capital structuring services in relation to the Exit Financing. In exchange, AbitibiBowater has agreed that it will: * pay the Arrangers an aggregate work fee of $1.2 million; * reimburse reasonable and documented fees and expenses of the Arrangers, and make an advanced payment of $300,000; and * indemnify the Arrangers, their affiliates and officers, employees, agents, directors, and advisors against any expenses, losses, claims, or liabilities that may occur in connection with proposed Exit Financing or evaluations under the Work Fee Letter, except to the extent that the expenses, losses, claims, or liabilities resulted from gross negligence or willful misconduct of the Arrangers. The Debtors further propose that all amounts payable to the Arrangers under the Work Fee Letter may be credited or applied to any subsequent amounts that may be earned by the Arrangers should they agree later to provide the Exit Financing Facilities. The Debtors specifically propose that if the Arrangers subsequently agree to provide or participate in any Exit Financing Facilities, the work fee earned by each Arranger can be credited against any financing fees payable to them. Similarly, the Debtors add, any unused portion of the advanced payment for reimbursable expenses can be applied against expense reimbursement that may become owed to the Arrangers in connection with the Exit Financing Facilities. Mr. Greecher asserts that the fees, expenses and indemnities to be provided to the Arrangers under the Work Fee Letter appropriately constitute "actual necessary costs and expenses of preserving the estates" under Section 503(b)(1)(A) of the Bankruptcy Code. In this light, the Debtors seek that the payment of fees and expenses to the Arrangers be deemed as allowed administrative expenses. "The Work Fee Letter is not a commitment or agreement by any Arranger to arrange or participate in any Exit Financing transaction, and the Company will separately seek the Court's authority to enter into one or more commitment letters, indentures, credit agreements or other financing documents with respect to the Exit Financing Facilities at the appropriate time," Mr. Greecher clarifies. A full-text copy of the Proposed Work Fee Letter is available for free at http://bankrupt.com/misc/ABH_ProposedWorkFeeLetter.pdf Rule 6004(h) of the Federal Rules of Bankruptcy Procedure provides that "[a]n order authorizing the use, sale or lease of property other than cash collateral is stayed until the expiration of 14 days after the entry of the order, unless the court orders otherwise." However, the Debtors' current request is essential for the Exit Financing process and any delay with respect to the Arrangers' services could be detrimental to that process, Mr. Greecher says. Accordingly, the Debtors aver that cause exists to justify a waiver of the stay imposed by Bankruptcy Rule 6004(h). The Court will convene a hearing to consider the Debtors' request on July 15, 2010. Objections are due on July 8. 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 MICRO: Unveils Exchange Offer for 8.125% Senior Notes -------------------------------------------------------------- Advanced Micro Devices, Inc., filed with the Securities and Exchange Commission a prospectus in connection with an offer to exchange $500,000,000 principal amount of its 8.125% Senior Notes due 2017 which have been registered under the Securities Act, for any and all of its outstanding 8.125% Senior Notes due 2017. The exchange offer expires at 5:00 p.m., New York City time, on July 22, 2010, unless extended. AMD will exchange all outstanding notes that are validly tendered and not validly withdrawn for an equal principal amount of a new series of notes that are registered under the Securities Act. The exchange offer is not subject to any conditions other than that it not violate applicable law or any applicable interpretation of the staff of the SEC. The exchange of notes will not be a taxable event for U.S. federal income tax purposes. AMD will not receive any proceeds from the exchange offer. The terms of the new series of notes are substantially identical to the terms of the outstanding notes, except for transfer restrictions and registration rights relating to the outstanding notes. Holders may tender outstanding notes only in denominations of $2,000 and integral multiples of $1,000. AMD's affiliates may not participate in the exchange offer. Each broker-dealer that receives new notes for its own account pursuant to the exchange offer must acknowledge that it will deliver a prospectus in connection with any resale of such new notes. A full-text copy of the prospectus is available at no charge at http://ResearchArchives.com/t/s?659c About Advanced Micro Devices Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative processing solutions in the computing, graphics and consumer electronics markets. * * * Advanced Micro carries a 'B-' corporate credit rating from Standard & Poor's and a 'Ba3' corporate family rating from Moody's. Standard & Poor's Ratings Services said it placed its 'B-' corporate credit and senior unsecured ratings on Sunnyvale, Calif.-based graphics and microprocessor designer Advanced Micro Devices Inc. on CreditWatch with positive implications. ADVANCED MICRO: Unveils Exchange Offer for 8.125% Senior Notes -------------------------------------------------------------- Kristina Doss at Dow Jones Daily Bankruptcy Review reports that Judge Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware has authorized Beazer Homes USA Inc. subsidiary -- Beazer Homes Holdings Corp. -- to purchase 232 undeveloped lots for $27,800 each -- for a total of $6.4 million -- from DBSI Inc. The lots, which make up a property known as Surprise Farms, are located in the Phoenix suburbs approximately 25 miles northwest of downtown Phoenix. According to the report, Judge Walsh said proceeds from the sale can be used to pay the commission for Westland Properties Group, which helped market the property. He also said the net proceeds from the sale can be used to pay what DBSI owes DBSI 2006 Notes Corp. According to the report, Chapter 11 Trustee James R. Zazzali, who oversees DBSI during its bankruptcy case, said in court papers that the company borrowed money from DBSI 2006 Notes to acquire and develop Surprise Farms and purportedly owes $10.5 million. About DBSI Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates were engaged in numerous commercial real estate and non-real estate projects and businesses. On November 10, 2008, and other subsequent dates, DBSI and 180 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 08-12687). Lawyers at Young Conaway Stargatt & Taylor LLP represent the Debtors as counsel. The Official Committee of Unsecured Creditors tapped Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' notice claims and balloting agent. When the Debtors sought protection from their creditors, they estimated assets and debts between $100 million and $500 million. Joshua Hochberg, a former head of the Justice Department fraud unit, served as an Examiner and called the seller and servicer of fractional interests in commercial real estate an "elaborate shell game" that "consistently operated at a loss" in his report released in Oct. 2009. On Sept. 11, 2009, the Honorable Peter J. Walsh entered an Order appointing James R. Zazzali as Chapter 11 trustee for the Debtors' estates. ALL-AMERICAN SPORTPARK: Posts $150,848 Net Loss in Q1 2010 ---------------------------------------------------------- All-American SportPark, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $150,848 on $558,571 of revenue for the three months ended March 31, 2010, compared with a net loss of of $184,774 on $550,019 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $1,499,302 in assets and $11,227,900 of liabilities, for a stockholders' deficit of $9,728,598. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6592 Las Vegas, Nev.-based All-American SportPark, Inc., manages and operates the Callaway Golf Center (CGC). The CGC includes a par 3 golf course fully lighted for night golf, a 110-tee two-tiered driving range, and a 20,000 square foot clubhouse, which includes the Callaway Golf fitting center, Saint Andrews Golf Shop exclusively carrying Callaway Golf products, and Back 9 Bar and Grill. AMBAC FINANCIAL: Enters Into Add'l Debt for Equity Exchanges ------------------------------------------------------------ Ambac Financial Group, Inc. has entered into a series of additional debt for equity exchanges with certain holders of Ambac's 9a...oe% debentures, due August 2011. Under the terms of the exchange agreements, the Company issued 8,602,414 shares of Ambac's common stock to the bondholders in exchange for approximately $11.8 million in aggregate principal amount of debt. Following the issuance of the shares there will be 302,022,750 common shares outstanding. Since early June Ambac has issued an aggregate of 13,638,482 shares of its common stock in exchange for $20.3 million in aggregate principal amount of its 9a...oe% debentures, due August 2011. About Ambac Financial Headquartered in New York, Ambac Financial Group, Inc., through its subsidiaries, provided financial guarantees and financial services to clients in both the public and private sectors around the world. The Company's balance sheet as of December 31, 2009, showed $18.886 billion in assets and $20.520 billion in debts, resulting in a stockholders' deficit of $1.634 billion. KPMG LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the significant deterioration of the guaranteed portfolio coupled with the inability to write new financial guarantees has adversely impacted the business, results of operations and financial condition of the Company's operating subsidiary. KPMG also noted that of the Company's limited liquidity. AMERICAN CAPITAL: Reports Removal of 'Going Concern' Doubt ---------------------------------------------------------- American Capital Ltd. disclosed that following the restructuring of its unsecured revolving line of credit facility and acceptance and closing of private exchange offers for its public and private notes completed on June 28, 2010, its independent registered public accounting firm has updated its audit report to remove the "going concern" paragraph related to the Company's financial statements as of and for fiscal year ended December 31, 2009. This revised opinion thereon was filed with the Securities and Exchange Commission on a Form 8-K on June 30, 2010. Also, the Company clarified certain statements made on its June 28, 2010 conference call regarding the provisions of its new credit agreement and note indenture related to the payment of dividends by the Company. As indicated during the call, under these agreements, the Company is currently limited to paying only those dividends necessary for the Company to maintain its status as a regulated investment company under the Internal Revenue Code and those dividends must be paid with the capital stock of the company to the extent permitted by applicable law. However, these agreements also provide that there will be no limitations on the Company's ability to pay dividends, in cash or otherwise, if certain conditions are met in the future, including that the Company satisfies the 200% asset coverage requirement set forth in the Investment Company Act of 1940, as amended, the Company is in pro forma compliance with certain financial covenants, there are no defaults under the agreements and the amount of debt outstanding under the agreements is less than $1.4 billion. About American Capital American Capital -- http://www.AmericanCapital.com/-- is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $14 billion in capital resources under management and eight offices in the U.S., Europe and Asia. American Capital and its affiliates will consider investment opportunities from $5 million to $100 million. This concludes the Troubled Company Reporter's coverage of American Capital until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. AMERICAN CAPITAL: S&P Raises Counterparty Credit Rating to 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its long- term counterparty credit rating on American Capital Ltd. to 'B-' from 'SD'. At the same time, S&P raised its issue-level rating on ACAS's senior unsecured notes to 'B-' from 'D'. The outlook is negative. "The rating action follows the company's June 28, 2010, announcement that it has consummated the exchange of its $2.350 billion outstanding unsecured debt with $1.03 billion in cash and issuance of $1.31 billion of new secured notes and loans with a maturity of Dec. 31, 2013," said Standard & Poor's credit analyst Sebnem Caglayan. At the same time, the company received 100% consent of the lenders under the unsecured revolving credit facility to restructure the credit agreement. Because the exchange offer includes issuing new secured notes that extend the original maturity of certain unsecured debt obligations, S&P had viewed it as a distressed exchange under S&P's published criteria, and had lowered the counterparty credit rating to 'SD' upon the consummation of the exchange. The 'B-' rating reflects the significant reduction in total debt as a result of the exchange, but also S&P's concern that the firm pro forma for the exchange will still have leverage and interest coverage metrics that are weak relative to peers'. In addition, the firm is likely to realize losses on investments that have been written down. The $1.03 billion reduction in total debt and the extended maturity of the unsecured portion of total debt to Dec. 31, 2013, should enable ACAS to avoid a covenant violation in the near term. Nevertheless, given the high level of nonaccruing assets and the increased interest rate on the new secured debt (compared to the interest rate of the existing unsecured debt at issue), S&P believes that interest coverage metrics may remain under pressure. Pro forma for the $1.032 billion up-front cash payment and the recent $295 million equity offering, S&P estimate that the company's debt-to-equity ratio will improve to 1.06x from 1.59x, the debt-to-EBITDA ratio (excluding unrealized and realized gains and losses and PIK accruals) will improve to 10.9x from 14.6x, and the EBIT interest coverage (excluding PIK income and unrealized and realized gains and losses) will improve to 1.92x from 1.09x. These metrics are better, but still weak compared to ACAS's business-development company peers. The negative outlook reflects S&P's expectation that ACAS's interest-coverage metrics will remain under pressure pro forma for the exchange. Although the firm does not face mandatory amortization payments on its debt until December 2012, S&P expects management to reduce leverage further over an extended period. S&P could revise the outlook to stable if the firm improves its leverage and interest-coverage metrics, maintains adequate liquidity, and stabilizes its portfolio performance. ANGEL ACQUISITION: Reports Earnings of $113,500 for Q1 2010 ----------------------------------------------------------- Angel Acquisition Corp. filed its quarterly report on Form 10-Q, reporting net income of $113,468 on $29,030 of revenue for the three months ended March 31, 2010, compared with net income of $1,140,615 on $48,512 of revenue for the same period of 2009. Loss from operations for the three months ended March 31, 2010, was $106,192, as compared to a loss from operations of $283,749 for the three months ended March 31, 2009. At March 31, 2010, the Company's balance sheet showed $1,767,604 in total assets and $3,414,840 in total liabilities, for a shareholders' deficit of $1,647,236. The Company has been unable to generate sufficient operating revenues and has incurred operating losses. Gruber & Company, LLC, in Lake Saint Louis, Mo., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that the Company is dependent upon the available cash on hand and either future sales of securities or upon its current management or advances or loans from controlling shareholders or corporate officers to provide sufficient working capital. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6367 Carson City, Nev.-based Angel Acquisition Corp. was incorporated under the laws of the state of Nevada on March 10, 1999, under the name Palomar Enterprises, Inc. The Company assists private companies in the process of going public as well as being a licensed mortgage broker and developer. AVICENA GROUP: Caturano & Company Resigns as Accountant ------------------------------------------------------- Caturano and Company P.C., Avicena Group Inc.'s independent registered public accounting firm, notified the Company that it is resigning as the Company's independent registered public accounting firm, effective immediately. The reports of Caturano & Company on the financial statements of the Company for each of the two most recent fiscal years ended December 31, 2007 and December 31, 2006, did not contain an adverse opinion or disclaimer of opinion and were not qualified as to uncertainty, audit scope or accounting principles for the two most recent fiscal years and the one subsequent interim period for 2008, except as noted by Caturano and Company P.C.'s opinion in its report dated April 15, 2008 on the Company's financial statements as of December 31, 2007 and 2006, which report expressed substantial doubt with respect to the Company's ability to continue as a going concern and that the financial statements did not include any adjustments that might result from the outcome of this uncertainty. During the two most recent fiscal years ended December 31, 2007 and December 31, 2006 and the subsequent period through the date of resignation, there were no disagreements between the Company and Caturano and Company P.C. on any matters of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which, if not resolved to the satisfaction of Caturano and Company P.C. would have caused it to make reference to the subject matter of the disagreement in connection with its reports on the financial statements for those periods. About Avicena Group Headquartered in Palo Alto, Calif., Avicena Group Inc. (OTC BB: AVGO.OB) -- http://www.avicenagroup.com/ -- is a late-stage biotechnology company that develops central nervous system therapeutics for neurodegenerative diseases. The company's core technologies have broad applications in both pharmaceuticals and dermaceuticals. Avicena's pharmaceutical program centers on rare neurological disorders. Unlike traditional biotechnology companies, Avicena's clinical programs are largely funded by government and non-profit organizations. Avicena presently derives revenue from the sale of proprietary dermaceutical ingredients to skin care manufacturers. Avicena Group's unaudited balance sheet as at March 31, 2008, showed total assets of $832,553, total liabilities of $11,774,635, convertible preferred stock of $3,621,463, resulting to a $14,563,545 stockholders' deficit. AYALA FAMILY: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Ayala Family, LLC 3501 14th Street, NW Washington, DC 20010 Bankruptcy Case No.: 10-00632 Chapter 11 Petition Date: June 28, 2010 Court: U.S. Bankruptcy Court District of Columbia (Washington, D.C.) Judge: S. Martin Teel, Jr. Debtor's Counsel: Richard H. Gins, Esq. The Law Office of Richard H. Gins LLC 3 Bethesda Metro Center, Suite 430 Bethesda, MD 20814 Tel: (301) 718-1078 Fax: (301) 718-8659 E-mail: Richard@ginslaw.com Estimated Assets: Not Stated Estimated Debts: $1,000,001 to $10,000,000 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Nelson Ayala, managing member. BACCHUS DEVELOPMENT: Expects to Emerge From Bankruptcy on July 1 ---------------------------------------------------------------- Kristen Schott at OCMetro reports that a bankruptcy judge in California confirmed a Chapter 11 plan of reorganization of Bacchus Development. The Company said it expects to emerge from bankruptcy on July 1, 2010. Irvine, California-based Bacchus Development filed for Chapter 11 on September 4, 2009 (Bankr. C.D. Calif. Case No. 09-19457). The Company's affiliates, Bacchus Investment Group, LLC, and Bacchus Commercial, LLC, also filed for bankruptcy protection. Marc J. Winthrop, Esq., who has an office in Newport Beach, California, assists Bacchus Development in its restructuring efforts. The Company listed $1,000,001 to $10,000,000 in assets and $500,001 to $1,000,000 in liabilities. BANKRATE INC: Deal Upsizing Won't Affect S&P's 'B' Note Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Bankrate Inc.'s senior secured notes due 2015 remain unchanged following the company's upsizing of the deal to $300 million from $280 million. The notes are rated preliminary 'B', and S&P expects to assign them a recovery rating of '4' upon the transaction's closing. The company plans to use net proceeds to help fund the acquisition of NetQuote Inc. and CreditCards.com for $205 million and $145 million, respectively. S&P also expect to assign the company a 'B' corporate credit rating with a stable outlook once the transaction closes. Ratings List Bankrate Inc. Corporate Credit Rating (expected) B/Stable/-- $300M sr secd nts due 2015 B (prelim) Recovery Rating (expected) 4 BARBARA MAJOR: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Barbara C. Major P.O. Box 50403 Henderson, NV 89016 Bankruptcy Case No.: 10-22035 Chapter 11 Petition Date: June 28, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Christopher T. Smith Law Offices of Christopher T. Smith 501 South Rancho Drive, Suite I-62 Las Vegas, NV 89106 Tel: (702) 560-8206 Fax: (702) 537-5736 E-mail: ctsmith@attorneyctsmith.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/nvb10-22035.pdf The petition was signed by Debtor. BEAR STEARNS: Judge Pares Liquidators' Suit Against Deloitte ------------------------------------------------------------ Bankruptcy Law360 reports that a federal judge has trimmed a suit accusing accounting firm Deloitte & Touche LLP of professional malpractice in connection with the 2007 collapse of two Bear Stearns Cos. hedge funds that made risky bets in the subprime mortgage market. Law360 says Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York on Friday dismissed a claim by liquidators of two Bear Stearns hedge funds. About Bear Stearns New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- was a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The investment bank collapsed in 2008 and was sold in a distressed sale to JPMorgan Chase in a transaction backed by the U.S. government. Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. were open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On August 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. BROWN PUBLISHING: Parties Have Until July 22 to Competing Bids -------------------------------------------------------------- Ben Sutherly, staff writer of Dayton Daily News, reports that interested purchasers for the assets of Brown Publishing Co. have until July 16, 2010, at 2:00 p.m., to submit their offers. Brown Publishing has selected Brown Media Corporation, a company formed by insiders, as the stalking horse bidder. The Debtors have entered into an Asset Purchase Agreement dated May 4, 2010, with Brown Media, which provides for the sale of the assets, subject to any higher and better offers that might be submitted for the sale of the assets to the party or parties that submit the highest and best bid. Under the APA, Brown Media will purchase the assets at $15,300,000. An auction will take place 10 a.m. Monday, July 19, in New York, New York, through the U.S. Bankruptcy Court if a bid in addition to Brown Media's is submitted by July 16. A sale hearing is set for July 22, 2020, if an auction is necessary. Objections to the sale are due July 20, 2010. About Brown Publishing Company Headquartered in Cincinnati, Ohio, The Brown Publishing Company owns business publications in Ohio, Utah, Texas, South Carolina, New York, and Iowa. Brown publishes 15 daily, 32 weekly, 11 business and 41 free publications. There are also 51 websites. Seventy-eight of the publications are in Ohio. Brown publishes Dan's Papers, the weekly newspaper with the largest circulation in the area of eastern Long Island, New York, known as the Hamptons. Brown also publishes the Montauk Pioneer, which it calls the official newspaper of Montauk, New York. The Company filed for Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. E.D.N.Y. Case No. 10-73295). Edward M. Fox, Esq., at K&L Gates LLP, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. BUCYRUS COMMUNITY: Wants Until November 16 to File Chapter 11 Plan ------------------------------------------------------------------ Bucyrus Community Hospital, Inc., asks the U.S. Bankruptcy Court for the Northern District of Ohio to extend its exclusive period to file a Chapter 11 Plan from July 19, 2010, until November 16; and (b) its exclusive period to solicit acceptance of the proposed Plan from September 15, until January 13. Bucyrus, Ohio-based Bucyrus Community Hospital, Inc., filed for Chapter 11 bankruptcy protection on March 19, 2010 (Bankr. N.D. Ohio Case No. 10-61078). Melissa Asbrock, Esq., and Shawn M. Riley, Esq., at McDonald Hopkins LLC, assist the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. The Company's affiliate, Bucyrus Community Physicians, Inc., filed a separate Chapter 11 petition (Case No. 10-61081) on March 19, 2010, estimating its assets and debts at $500,000 to $1 million. BUILDERS FIRSTSOURCE: JLL & Warburg Pincus Hold 50.5% of Shares --------------------------------------------------------------- Entities affiliated with Warburg Pincus and entities affiliated with JLL Partners, Inc., in the aggregate may be deemed to beneficially own 48,792,009 shares, representing 50.5% of all of the outstanding shares of Common Stock of Builders FirstSource, Inc. Effective on June 22, 2010, Building Products, LLC, and JWP LLC, of which JLL Fund V and Warburg Pincus Fund IX were the only members, were dissolved. As a result of the Building Products Dissolution and the JWP Dissolution, JLL Holdings directly owns 24,344,584 shares of Builders FirstSource Common Stock and Warburg Pincus Fund IX directly owns 24,447,425 Builders FirstSource shares. JLL Holdings is the direct owner of, and may be deemed the beneficial owner of, 24,344,584 shares of the Company's Common Stock, which represents 25.2% of the outstanding shares of the Company's Common Stock. Warburg Pincus Fund IX may be deemed to be the beneficial owner of 24,447,425 shares of the Company's Common Stock, which represent 25.3% of the outstanding shares of the Company's Common Stock. On June 22, 2010, JLL Holdings and Warburg Pincus Fund IX entered into a stockholders' agreement, pursuant to which JLL Holdings and Warburg Pincus Fund IX agreed to vote the shares of the Company's Common Stock held by them and their affiliates in favor of the election to the board of directors of the Company of designees of each of JLL Holdings and Warburg Pincus Fund IX. As a result of the voting arrangements set forth in the Stockholders' Agreement, JLL Holdings and Warburg Pincus Fund IX may be deemed to have formed a group for purposes of Sections 13(d) and 13(g) of the Securities Exchange Act of 1934, as amended. About Builders FirstSource Headquartered in Dallas, Texas, Builders FirstSource Inc. -- http://www.bldr.com/-- is a supplier and manufacturer of structural and related building products for residential new construction. The company operates in 9 states, principally in the southern and eastern United States, and has 55 distribution centers and 51 manufacturing facilities, many of which are located on the same premises as its distribution facilities. The Company's balance sheet at March 31, 2010, showed $491.0 million in total assets and $282.4 million in total liabilities, for a $218.6 million stockholders' equity. * * * According to the Troubled Company Reporter on Jan. 28, 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Dallas-based Builders FirstSource Inc., a manufacturer and supplier of building products for new residential construction, to 'CCC+' from 'SD'. The outlook is positive. CAROLINA PARK: Chapter 11 Reorganization Case Dismissed ------------------------------------------------------- The Hon. David R. Duncan of the U.S. Bankruptcy Court for the District of South Carolina to dismissed Carolina Park Associates, LLC's bankruptcy case. Palmetto Debt Holding Group, LLC, a secured creditor, was joined by The Town of Mount Pleasant, a creditor, in its motion to dismiss the Debtor's case. The Court ruled that David L. Peter did not have the requisite authority to file a bankruptcy petition on behalf of the Debtor. Fairfax, Virginia-based Carolina Park Associates, LLC, a Delaware LLC, filed for Chapter 11 bankruptcy protection on May 17, 2010 (Bankr. D. S.C. Case No. 10-03524). The Company listed $100,000,001 to $500,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. CENTAUR LLC: Wants Plan Solicitation Exclusivity Until Sept. 30 --------------------------------------------------------------- Centaur, LLC, et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive period to solicit acceptances for the proposed Chapter 11 Plan until September 30, 2010. The Debtors said that the extension will provide necessary time to complete the mediation, to focus on continuing negotiations, and to proceed toward a consensual or non-consensual plan that will enable a global reorganization of the Debtor's operations. The Debtors propose a hearing on their exclusivity extension on July 28, at 11:00 a.m. (ET). Objections, if any, are due on July 21, at 4:00 p.m. (ET). Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana, LLC -- http://www.centaurgaming.net/-- is an company involved in the development and operation of entertainment venues focused on horse racing and gaming. The Company filed for Chapter 11 bankruptcy protection on March 6, 2010 (Bankr. D. Delaware Case No. 10-10799). Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, assists the Company in its restructuring effort. The Company estimated its assets and debts at $500,000,001 to $1,000,000,000 as of the Petition Date. CENTRAL DELAWARE: Section 341(a) Meeting Scheduled for July 23 -------------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of Central Delaware Materials, LLC's creditors on July 23, 2010, at 9:30 a.m. The meeting will be held at J. Caleb Boggs Federal Building, 2nd Floor, Room 2112, Wilmington, Delaware 19801. 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. Smyrna, Delaware-based Central Delaware Materials, LLC, filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Del. Case No. 10-11981). Adam Hiller, Esq., at Pinckney, Harris & Weidinger, LLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $1,000,001 to $100,000,000. CENTRAL DELAWARE: Taps Pinckney Harris as Bankruptcy Counsel ------------------------------------------------------------ Central Delaware Materials, LLC, has asked for authorization from the U.S. Bankruptcy Court for the District of Delaware to employ Pinckney, Harris & Weidinger, LLC as bankruptcy counsel, nunc pro tunc to the Petition Date. Pinckney Harris will, among other things: a. assist the Debtor in maximizing the value of assets for the benefit of creditors and other parties in interest, as applicable; b. commence and prosecute any and all necessary and appropriate actions and/or proceedings on behalf of the Debtor and its estate, to the extent mutually acceptable terms of agreement are reached between the Debtor and Pinckney Harris; c. prepare applications, motions, answers, orders, reports and other legal papers necessary in this bankruptcy proceeding; and d. appear in Court to represent and protect the interests of the Debtor and its estate. The Debtor and Pinckney Harris didn't disclose how Pinckney Harris will be compensated for its services. To the best of the Debtor's knowledge, Pinckney Harris is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. Smyrna, Delaware-based Central Delaware Materials, LLC, filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Del. Case No. 10-11981). The Company estimated its assets and debts at $1,000,001 to $100,000,000. CHELSEA HEIGHTS: Section 341(a) Meeting Scheduled for July 22 ------------------------------------------------------------- The U.S. Trustee for Region 18 will convene a meeting of Chelsea Heights LLC's creditors on July 22, 2010, at 1:30 p.m. The meeting will be held at Courtroom J, Union Station, 1717 Pacific Avenue, Tacoma, WA 98402. 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. Tacoma, Washington-based Chelsea Heights LLC filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. W.D. Wash. Case No. 10-44959). Timothy W. Dore, Esq., at Ryan Swanson & Cleveland PLLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. CINEMARK USA: S&P Raises Rating on Secured Debt to 'BB-' -------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on Cinemark USA Inc.'s secured debt to '2', indicating its expectation of substantial (70% to 90%) recovery for secured lenders in the event of a payment default, from '3'. S&P raised the issue-level rating on this debt to 'BB-' (one notch higher than the 'B+' corporate credit rating on holding company parent Cinemark Holdings Inc.) from 'B+', in accordance with S&P's notching criteria for a '2' recovery rating. At the same time, S&P affirmed all other ratings, including the 'B+' corporate credit rating on Cinemark Holdings Inc. The revision of the recovery rating reflects an increase in S&P's estimate of enterprise value and a lowering of S&P's estimate of secured debt balances at the time of the simulated default within its recovery analysis of Cinemark. Standard & Poor's Ratings Services' 'B+' rating on Cinemark Holdings Inc. reflects S&P's expectation that over the near term, leverage could increase as a result of box-office declines due to difficult comparisons with 2009. S&P also expect that discretionary cash flow will likely be consumed by higher capital spending in 2010. Cinemark is subject to the fluctuating popularity of Hollywood films, the mature and highly competitive nature of the U.S. motion picture exhibition industry, competition from other exhibitors and alternative entertainment sources, and high lease-adjusted leverage. The company was able to reduce its leverage to 5.0x because of the standout box-office results in 2009 and the first quarter of 2010. Cinemark, the third-largest movie exhibitor in the U.S, owns and operates 423 theaters and 4,884 screens in the U.S. and Latin America as of March 31, 2010, and is the second-largest movie exhibitor worldwide. Unlike other exhibitors, the company has significant presence outside the U.S. in 13 countries, with international operations primarily in Latin America. Cinemark's box office has been outperforming over the past several quarters. The company has had success in selecting sites and building appropriately sized theaters. CIRCUIT CITY: Plan Confirmation Hearing Continued to July 22 ------------------------------------------------------------ Judge Kevin R. Huennekens of the U.S. Bankruptcy Court for the Eastern District of Virginia has ordered Circuit City Stores, Inc. and its debtor-affiliates and the Official Committee of Unsecured Creditors to commence and complete mediation of any remaining dispute between them relating to the Debtors' First Amended Joint Plan of Liquidation within 30 days. Accordingly, the status hearing on the confirmation of the Debtors' Liquidation Plan has been continued to July 22, 2010, at 10:00 a.m. The Court told the parties to be prepared to discuss the results of mediation at the July 22 status conference, and to make sure "the decision makers" attend the mediation. "I'm disappointed [the two sides] were not able to resolve this without mediation," the Richmond Times-Dispatch quoted Judge Huennekens as saying. As previously reported, Judge Huennekens gave the parties until June 24, 2010, to work out their differences with respect to the Joint Plan. The Debtors and the Creditors Committee are at odds about the details in the bylaws and the makeup of a committee that will oversee a liquidating trust set up to hand out any remaining funds from the sale of the company's assets. According to the report, lawyers for Circuit City and the Creditors Committee said that an all-out effort to reach a compromise had fallen short and they needed outside help. "We have run out of time," the Times-Dispatch quoted Gregg M. Galardi, Esq., Circuit City's lead counsel, as saying at the June 24 hearing. "We are still very close, but we're not there." Robert J. Feinstein, Esq., counsel for the Creditors Committee, explained that the parties worked until the "wee hours of the night" trying to reach a compromise but added that they "just have differences." Louis Llovio of the Richmond Times-Dispatch said the mediation should begin in the next couple of weeks. If mediation doesn't work, the Debtors' and the Committee's competing plans would be considered by the court. Circuit City and the committee jointly filed a liquidating plan last August, with the explanatory disclosure statement approved in September. They were never able to agree on who would control the liquidating trust to be created under the plan. On June 1, 2010, the Creditors Committee filed its proposed Plan of Liquidation. The Joint Plan and the Committee Plan both provide for the liquidation of the Debtors' remaining assets and distributions to creditors through a liquidating trust. About Circuit City Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for reorganization relief under Chapter 11 of the Bankruptcy Code on November 10 (Bankr. E.D. Va. Lead Case No. 08-35653). InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of August 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases. In May 2009, Systemax Inc., a multi-channel retailer of computers, electronics, and industrial products, acquired certain assets, including the name Circuit City, from the Debtors through a Court- approved auction. Bankruptcy Creditors' Service, Inc., publishes Circuit City Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Circuit City Stores Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). CIRCUIT CITY: Wants Quebecor World's Claim Reclassified ------------------------------------------------------- Circuit City Stores Inc. and its units ask the Court to reclassify Quebecor World (USA) Inc.'s Claim No. 1283 to a general unsecured, non-priority claim. Circuit City Stores, Inc. and Quebecor are parties to a printing agreement, dated September 1, 2003, as amended. As part of the Printing Agreement, the parties entered into a rider pursuant to which they agreed that the Debtors would purchase paper separately and provide it to Quebecor. Quebecor also agreed to print promotional materials on the paper provided by the Debtors and to prepare those materials for mailing and delivery to newspaper distributors throughout the United States. Eleets delivered the Newspaper Inserts to the Newspaper Distributors. Federal Express delivered a small portion of the Newspaper Inserts to Newspaper Distributors. Eleets and Circuit City entered into an agreement, dated September 7, 2007, for the transportation of Newspaper Inserts between points in the U.S. Under the Transportation Agreement, Eleets performed services for Circuit City as an "independent contractor." Quebecor filed Claim No. 1283, pursuant to Section 503(b)(9) of the Bankruptcy Code, for $722,441 based on certain Printing Services allegedly rendered during the 20-day period before the Petition Date. Quebecor contends that the Printing Services are "goods" that were "received" by Circuit City during the 20-day period. After reviewing the Claim and its supporting documentation, the Debtors have determined that the Claim does not satisfy the requirements of Section 503(b)(9). Specifically, Quebecor failed to meet its burden under Section 503(b)(9) to demonstrate that the Printing Services are "goods" that were "received" by the Debtors during the 20-day period before the Petition Date. In addition, the Debtors have determined that the amount asserted in the Claim is overstated and should be reduced to $675,232. In a separate filing, the Debtors ask the Court for leave to file the Agreements under seal. About Circuit City Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for reorganization relief under Chapter 11 of the Bankruptcy Code on November 10 (Bankr. E.D. Va. Lead Case No. 08-35653). InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of August 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases. In May 2009, Systemax Inc., a multi-channel retailer of computers, electronics, and industrial products, acquired certain assets, including the name Circuit City, from the Debtors through a Court- approved auction. Bankruptcy Creditors' Service, Inc., publishes Circuit City Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Circuit City Stores Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). CKE RESTAURANTS: Stockholders OK Merger Deal With Apollo Units -------------------------------------------------------------- CKE Restaurants, Inc.'s stockholders approved the proposal to adopt the merger agreement providing for its acquisition by entities created by certain affiliates of Apollo Management VII, L.P. The affirmative vote of the holders of a majority of the outstanding shares of common stock of CKE was required to approve the proposal to adopt the merger agreement. According to the final tally of shares voted, approximately 76% of the outstanding shares of common stock of CKE as of the close of business on May 10, 2010, the record date, were voted to approve the proposal to adopt the merger agreement. Of the shares that were voted at the meeting, approximately 99% were voted to approve the proposal to adopt the merger agreement. All approvals, consents or consultations required to consummate the merger under U.S. antitrust laws have been obtained or made, and accordingly, the related condition to the consummation of the merger set forth in the merger agreement has been fully satisfied. The consummation of the merger remains subject to the satisfaction or waiver of certain other closing conditions set forth in the merger agreement and discussed in detail in the Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission by CKE on June 3, 2010. About CKE Restaurants Carpinteria, Calif.-based CKE Restaurants, Inc., through its wholly-owned subsidiaries, owns, operates, franchises and licenses the Carl's Jr., Hardee's, Green Burrito and Red Burrito concepts. * * * As reported by the Troubled Company Reporter on June 22, 2010, Standard & Poor's Ratings Services said that its 'BB-' corporate credit rating on the Carpinteria, Calif.-based CKE Restaurants Inc. remains on CreditWatch, where it was placed with negative implications on Feb. 26, 2010. If the proposed acquisition by Apollo is approved by shareholders and completed, S&P expects to lower its corporate credit rating on CKE to 'B' from 'BB-', and assign a stable rating outlook. The stable outlook would reflect S&P's expectation that CKE could maintain credit ratios appropriate for the rating category, despite likely weaker profitability as a result of sales declines. COLONIAL BANCGROUP: Has Until August 20 to Propose Chapter 11 Plan ------------------------------------------------------------------ The Hon. Dwight H. Williams, Jr., of the U.S. Bankruptcy Coiurt for the Middle District of Alabama extended The Colonial BancGroup, Inc.'s exclusive periods to file and solicit acceptances for a Chapter 11 plan until August 20, 2010, and October 29, respectively. 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. COMMSCOPE INC: Moody's Gives Positive Outlook, Keeps 'Ba3' Rating ----------------------------------------------------------------- Moody's Investors Service revised CommScope Inc.'s ratings outlook to positive from stable and affirmed its Ba3 corporate family rating. The change in outlook is driven by CommScope's significant deleveraging since the December 2007 acquisition of Andrew Corp. a leading provider of hardware for wireless carriers and improved overall credit metrics. The company continued to generate strong levels of cash flow despite the economic downturn which heavily impacted revenues. Moody's expect the business to recover in the near to medium term although weakness may continue over the next few quarters. CommScope has paid down over $1.1 billion in debt since closing the Andrew acquisition and reduced leverage from just under 5.0x to 3.0x for the quarter ended March 31, 2010 (on a Moody's adjusted basis). The company paid down debt from a combination of free cash flow and issuance of common equity. Through the downturn management took the necessary steps including reducing the cost structure of the business as well as improving the capital structure by the issuance of additional common equity and convertible debt. Despite the downturn, management improved EBITDA margins from 14.9% in 2008 to 18.3% for the last twelve months ended March 31, 2010 as the integration of Andrew was completed. Credit metrics including free cash flow to debt of 26% and cash/debt of 38% are very strong and more reflective of strong Ba or higher rated specialty manufacturing companies. Nonetheless, the company faces challenges in its ACCG business unit, its largest segment and producer of antennae and related products for the wireless industry, which continues to be impacted by a slowdown in wireless infrastructure spending in key international markets. Year-over-year declines in the ACCG business contributed to overall CommScope revenue declines in the March 2010 quarter. Wireless infrastructure spending is expected to recover as increased bandwidth demand in developed markets spur carrier spending and the build outs of developing markets resume, however, timing remains uncertain and revenues likely not return to the strong 2008 levels in the near term. The ratings could be upgraded if the company is able to stabilize revenues while maintaining operating margins and market share in its key businesses, particularly its wireless components business. These ratings were affirmed: * Corporate family rating: Ba3 * Probability of Default: Ba3 * $400 million Senior Secured Revolving Credit Facility due 2013 - - Ba2, LGD3, 40% * $753 million Senior Secured Term Loan (originally $1.35 billion) due 2014 -- Ba2, LGD3, 40% * $358 million Senior Secured Term Loan (originally $750 million) due 2013 -- Ba2, LGD3, 40% * Ratings Outlook: Positive Moody's most recent communication on CommScope was June 17, 2009, when Moody's revised CommScope's ratings outlook to stable from negative. CommScope Inc., headquartered in Hickory, North Carolina, is a leading global provider of wired and wireless connectivity solutions targeted towards cable and telecom service providers as well as the enterprise market. The company had 2009 sales of approximately $3.0 billion. COMMUNICATION INTELLIGENCE: Inks Financing Deal to Eliminate Debt ----------------------------------------------------------------- Communication Intelligence Corporation has entered into definitive agreements with Phoenix Venture Fund LLC, as lead investor, and others to provide additional working capital to the Company while also eliminating all existing indebtedness for borrowed money. Pursuant to the agreements, holders of CIC's senior secured indebtedness have agreed to exchange the Notes, which are expected to total approximately $6.4 million, including up to $1 million being issued under Amendment No. 2 to the Credit Agreement, dated May 4, 2010, into shares of Series B Participating Convertible Preferred Stock and CIC will issue up to $2 million of Series B Preferred. The Recapitalization and Offering will significantly improve CIC's balance sheet and net worth with additional liquidity. The Recapitalization and Offering are expected to close promptly after the Company's shareholder meeting scheduled for late July or early August 2010. Phoenix and its CEO, Philip Sassower, have been the primary source of financial backing for CIC for over a decade. The first wave was in the emerging handwriting recognition market where Phoenix provided both capital and active involvement with Philip Sassower serving as the Company's Chairman and CEO. Phoenix has also been the primary source of financing for CIC's successful efforts to achieve a leadership position in the emerging electronic signature market. Under the agreements, concurrent with the new financing, Philip Sassower will rejoin the Company as its Chairman and CEO thus allowing CIC's current Chairman and CEO, Guido DiGregorio, to focus on operations and growing the business as President and COO. "After a chaotic 2008 and 2009, financial institutions are on a more solid footing and are beginning to increase their IT budgets," stated Mr. Sassower. "There are also indications that banks and insurance companies are demonstrating a greater willingness to invest in more efficient and cost-effective solutions, such as CIC's market leading electronic signature products. The Recapitalization and Offering are aimed at strengthening CIC's balance sheet and its position in a market that we believe is accelerating. Phoenix looks forward to working with CIC and its seasoned management team, at this exciting inflexion point for the Company." "The Phoenix series of investments over the last decade reflects confidence in CIC and acknowledges the progress achieved and opportunity available to CIC and its investors in the electronic signature market," stated Mr. DiGregorio. "I welcome Phil's renewed active involvement in the business and I look forward to working with Phoenix in the pursuit of achieving sustainable and profitable revenue growth. Our objective continues to focus on building customer loyalty by delivering exceptional value and I welcome the opportunity to focus my energy fulltime on that objective and on, once again, obtaining the shareholder value we seek." The Series B Preferred issued will rank senior to all outstanding shares of CIC capital stock in terms of dividends, liquidation preferences and other voting and special rights. In addition, so long as 20% of the shares of Series B Preferred originally issued remain outstanding, Phoenix will be entitled to nominate and elect two individuals to CIC's five-member Board of Directors and the holders of a majority of the outstanding shares of Series B Preferred will be entitled to nominate and elect one individual to the Board. The Series B Preferred will be convertible into the Company's common stock at an initial conversion price of $0.06 per share. The Recapitalization and Offering are conditioned upon, among other things, the approval by the Company's stockholders of amendments to CIC's certificate of incorporation and the satisfaction of customary closing conditions. If the Recapitalization and Offering are consummated, it is anticipated that Phoenix will beneficially own approximately 41% of the Company's common stock on a fully diluted basis. About Communication Intelligence Headquartered in Redwood Shores, California, Communication Intelligence Corporation and its joint venture is a supplier of electronic signature solutions for business process automation in the financial industry as well as the recognized leader in biometric signature verification. The Company's auditors -- GHP Horwath, P.C. in Denver, Colorado -- have expressed substantial doubt about its ability to continue as a going concern. The Company's balance sheet at March 31, 2010, showed $5.0 million in total assets and $5.9 million in total liabilities, for a $909,000 total stockholders' deficit. CORUS BANKSHARES: Claims Ownership of $257-Mil. Tax Refunds ----------------------------------------------------------- Peg Brickley at Dow Jones Daily Bankruptcy Review reports that Corus Bankshares Inc., the parent of Chicago's Corus Bank, has asked the U.S. Bankruptcy Court for the Northern District of Illinois to declare more than $257 million in expected tax refunds stemming from the bank's collapse, property of its bankruptcy estate. According to Ms. Brickley, such a declaration would force the Federal Deposit Insurance Corp. to stand in line with the company's other unsecured creditors, waiting for payment. The FDIC is serving as receiver for the bank, which was packed with loans to condominium development projects when the housing market crumbled. She notes the FDIC is likely to lay claim to the tax refunds as it tries to find money to pay bank creditors. A spokesman for the FDIC could not immediately be reached for comment Tuesday. According to Ms. Brickley, the money is coming back because losses tracked to Corus Bank's failure and seizure will be counted against years of taxes paid when the lender profited from the building boom. Corus Bankshares listed debts of nearly $533 million when it filed for bankruptcy protection. More than $416 million of the parent company's debt load is principal and interest owed to subordinated bondholders, court papers say. About Corus Bankshares Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding company. Its lone operating unit, Corus Bank, N.A., closed September 11, 2009, by regulators and the Federal Deposit Insurance Corporation was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank. The Company filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Ill. Case No. 10-26881). David R. Seligman, Esq., at Kirkland & Ellis LLP, assists the Company in its restructuring effort. Kinetic Advisors is the Company's restructuring advisor. Plante & Moran is the Company's auditor and accountant. 4 As of June 15, 2010, the Company listed $314,145,828 in assets and $532,938,418 in liabilities. DELTA AIR: Fitch Affirms Issuer Default Rating at 'B-' ------------------------------------------------------ Fitch Ratings has affirmed the debt ratings of Delta Air Lines, Inc.: -- Issuer Default Rating at 'B-'; -- First lien senior secured bank credit facilities (Delta Exit Facility) at 'BB-/RR1'; -- Second lien secured term loan (Delta Exit Facility) at 'B- /RR4'. Fitch has also assigned ratings to DAL's other secured bank facilities and notes: -- Senior secured bank credit facilities due 2013 'BB-/RR1'; -- First lien secured notes due 2014 'BB-/RR1'; -- Second lien secured notes due 2015 'B-/RR4'. The Rating Outlook for DAL has been revised to Stable from Negative. The ratings apply to approximately $4.5 billion of committed bank facilities and secured notes. Following the full merger of the Northwest Airlines, Inc. subsidiary into DAL at the end of 2009, Northwest no longer exists as a separately-rated entity. The revision of DAL's Rating Outlook follows a turnaround in free cash flow generation witnessed since the beginning of 2010 and the clear upturn in industry revenue performance that should support a meaningful reduction in DAL's debt balances through the remainder of the year. Following a period of extreme operating stress during 2008 and 2009, balance sheet repair will require sustained improvements in cash flow generation and significant leverage reduction over the next several quarters. Management's focus on the importance of positive FCF generation and de-levering the balance sheet suggests that improvements in DAL's credit profile are now more likely in a period of premium air travel demand recovery supported by modest though still uneven economic growth. The 'B-' IDR captures DAL's still high lease-adjusted leverage, its heavy fixed financing obligations over the next several years, and the airline industry's unique vulnerability to external demand and fuel price shocks. Scheduled debt maturities of over $6 billion between now and the end of 2012, together with substantial cash pension funding requirements, will consume most of the carrier's expected operating cash flow. While DAL's good relative liquidity position (approximately $6 billion of unrestricted cash, investments and revolver availability) opens the door for an extended period of debt reduction, steady progress toward balance sheet repair will depend greatly on a continuation of favorable revenue trends and a relatively benign fuel price environment (jet fuel prices averaging less than $2.50 per gallon). DAL noted on June 15, 2010, that it expects second quarter passenger revenue per available seat mile (RASM) to increase by 20% as strong growth in business bookings and yields continues into early summer. While RASM comparisons will become more difficult late in the year, the rapid strengthening of premium travel demand should support solid profitability through the remainder of 2010. Assuming jet fuel prices remain near current levels in the second half of the year, Fitch believes that the company's recent forecast of $2 billion in full year FCF is achievable. With unrestricted liquidity now representing approximately 20% of annual revenues, most available cash flow is likely to be directed toward debt reduction. Management has targeted approximately $2 billion of expected net debt reduction this year, with a three-year target of almost $7 billion by the end of 2012. Stronger unit revenue performance is likely to be supported by capacity constraint at Delta and across the entire U.S. airline industry as carriers focus on the need for better returns linked to passenger yield strength. Management expects essentially flat system capacity for the full year, and DAL has no fleet commitments beyond 2010. Industry capacity is unlikely to grow significantly in 2011, given the absence of large aircraft orders and potential capacity rationalization resulting from the proposed merger of United Airlines and Continental Airlines. Reduction of DAL's total fleet size by a net 91 aircraft this year reflects management's focus on better asset utilization and labor productivity that will help offset other expense pressures to keep unit costs stable on flat available seat mile (ASM) capacity. Non-fuel unit costs are expected to remain flat in 2010 as higher- cost aircraft are removed from the fleet and active aircraft are deployed more efficiently to match demand across the route network. Stable unit costs will allow DAL to maintain a material cost per available seat mile advantage over its legacy carrier competitors. Fuel prices, while moving higher in recent weeks, remain well below the 2008 levels that drove large losses when crude oil prices spiked to over $140 per barrel. Price volatility, however, remains a major concern, and DAL has built a substantial book of hedges to help protect the carrier from rapid increases in jet fuel costs. As of mid-June, DAL had hedged approximately 49% of projected 2010 fuel consumption, with additional protection purchased for 2011. The average crude oil call option cap is at $82 per barrel for 3Q'10 and $83 per barrel for 4Q'10. DAL is now using call options more extensively to limit liquidity pressure in a declining fuel price scenario. Jet Fuel and crude oil swaps and collars comprise approximately 50% of outstanding hedges, with call options accounting for the remainder. Although reduced fleet-related capital spending will boost FCF through the cycle, DAL faces a large unfunded defined benefit pension liability that will likely pressure operating cash flow generation over the next few years. The carrier met its 2010 required contribution level of $665 million through cash funding in the first four months of the year. Should plan asset returns mirror the weak performance of the broader markets this year, DAL will have difficulty meeting its expected return assumption of 9% for 2010. This could lead to rising cash funding levels in future years as the carrier seeks to cut the unfunded liability ($9.4 billion at year-end 2009) on its frozen plans. DAL's launch this week of $450 million in 2010-1 pass-through certificates to refinance the remaining aircraft collateralizing the 2000-1 certificates reflects the carrier's strengthened access to the capital markets and its ability to extend maturities on secured obligations. Sustained capital markets openness should allow DAL to reduce its average borrowing costs as higher-coupon debt is refinanced or paid down. In light of the turnaround in the revenue environment and FCF generation, leverage reduction could proceed at a rapid pace over the next few quarters. If DAL's operating results track closely to the plan laid out by management, lease-adjusted leverage could fall below 4 times during 2011. This de-leveraging scenario, combined with consistent FCF generation and a favorable fuel and macroeconomic backdrop, would likely support an IDR in the mid to high single 'B' range. Accordingly, a revision of the Rating Outlook to Positive or an upgrade of the IDR to 'B' could follow if steady improvements in DAL's margins drive the type of solidly positive FCF generation recently projected by management. Fitch will focus on the airline's ability to improve its RASM performance relative to other U.S. airlines, as well as DAL's ability to maintain essentially flat non-fuel unit costs. A negative rating action, while unlikely in the current macroeconomic context, could result from a steep increase in fuel prices or an air travel demand shock that depresses passenger yields and RASM. DOLLAR THRIFTY: Files 2009 Annual Report for Retirement Plan ------------------------------------------------------------ Dollar Thrifty Automotive Group, Inc., filed with the Securities and Exchange Commission an annual report on Form 11-K for the Dollar Thrifty Automotive Group, Inc. Retirement Savings Plan for the fiscal year ended December 31, 2009. As of December 31, 2009, Net Assets Available for Benefits under the Plan total $88,863,907. Total investment income for the year ended December 31, 2009, is $18,718,598. A full-text copy of the Form 11-K report is available at no charge at http://ResearchArchives.com/t/s?659d About Dollar Thrifty Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa, Oklahoma. Driven by the mission "Value Every Time," the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value- conscious travelers in over 70 countries. Dollar and Thrifty have over 600 corporate and franchised locations in the United States and Canada, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 6,400 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. At March 31, 2010, the Company had total assets of $2,470,879,000 against total liabilities of $2,047,769,000, resulting in stockholders' equity of $423,110,000. As reported by the Troubled Company Reporter on April 27, 2010, Hertz and Dollar Thrifty signed a definitive agreement providing for Hertz to acquire Dollar Thrifty for a purchase price of $41.00 per share, in a mix of cash and Hertz common stock. The deal is valued at $1.27 billion. Barclays Capital acted as lead financial advisor to Hertz and Bank of America Merrill Lynch also provided advice. Hertz also worked with the law firms Debevoise & Plimpton LLP and Jones Day. Dollar Thrifty was advised by J.P. Morgan and Goldman, Sachs & Co. and the law firm of Cleary Gottlieb Steen & Hamilton LLP. Rival Avis Budget Group, Inc., on May 3 indicated to Dollar Thrifty's Board of Directors it would like to make a substantially higher offer to acquire Dollar Thrifty. Avis Budget has hired Citigroup as financial advisor and Kirkland & Ellis LLP as legal counsel to advise on a possible deal with Dollar Thrifty. * * * As reported by the Troubled Company Reporter on May 5, 2010, Dominion Bond Rating Service placed the ratings of Dollar Thrifty Automotive Group, Inc., including its Issuer Rating of B (high), Under Review with Positive Implications. This ratings action follows the announcement that the Company has reached a definitive agreement to be acquired by the higher-rated Hertz Corporation. DBRS rates Hertz BB, at the issuer level. In November 2009, Standard & Poor's Ratings Services raised its corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in light of the Company's improved operating and financial performance that began in mid-2009. Moody's Investors Service also upgraded Dollar Thrifty's Probability of Default Rating to 'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3'. DOLLAR THRIFTY: Future Remains Uncertain for Tulsa Operations ------------------------------------------------------------- Scott Thompson, Chief Executive Officer and President of Dollar Thrifty Automotive Group, Inc., told employees on June 28, 2010, that Hertz Corp.'s CEO Mark Frissora confirmed he would like to reduce the uncertainty that the DTAG Tulsa workforce -- which includes employees in Tahlequah -- is experiencing regarding the proposed merger transaction between the two companies. Mr. Thompson says Mr. Frissora plans to maintain the Tulsa workforce for a minimum of three months post-transaction close. His letter also confirms they will for a period of time maintain base wages and bonus opportunities as well as DTAG's existing severance plan on substantially the same terms provided by DTAG. "This is all designed to give you and Hertz time to figure out what the future will look like. It is my understanding that no longer term decision has been made on Tulsa as an operating location," Mr. Thompson said in his e-mail to employees. Early in June, DTG told its employees Hertz has agreed to honor current wages for DTG employees that continue with the company and are not covered by a collective bargaining agreement, for the first year following the completion of the acquisition. In his letter to Mr. Thompson, Mr. Frissora said: "I write to confirm our response regarding your request to maintain the Tulsa workforce intact for a minimum of three months after the transaction closes. I understand the uncertainty that this transaction has created for your employees, and we are aligned with you in our desire to respond to that uncertainty. First, the merger agreement requires Hertz to maintain base wages, bonus and other benefits including severance on substantially the same terms as existed prior to the closing for one year following the closing date. In that regard, I want to confirm that the existing severance plan will be maintained not only for a one year period following the transaction close, but for employees in the Tulsa headquarters, we will extend this an additional three months (for a total of fifteen months following the closing.) This ensures the status quo for your employees while we work through the integration process and financial protection for those who leave the organization. Second, please treat this message as confirmation by Hertz of its intent to maintain the employment of all Tulsa based employees (excluding those employees covered by change in control protections) for a period of not less than three months after the date on which the transaction closes. I hope that this commitment helps to alleviate some of the employee concerns. Hertz will work with you prior to closing and will continue immediately after the closing to give the Tulsa workforce as much information as possible regarding the transaction and plans for the combined workforces of our two companies. We have mapped detailed plans for moving quickly to resolve these issues and respond to employee concerns. It goes without saying that we believe Dollar Thrifty is a well run operation, which is why we are pursuing this transaction. I am very attuned to the importance of your employees in delivering the results that your company has seen. They are an important part of the transaction." On June 9, Hertz Global Holdings, Inc., said Hertz Vehicle Financing LLC, a special purpose limited liability company of which The Hertz Corporation -- a wholly owned subsidiary of the Company -- is the sole member, intends to make a private offering of Series 2009-2 Rental Car Asset Backed Notes, Class B. The notes are to be offered only to qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A of the Securities Act of 1933, as amended, and may also be offered to investors outside the United States pursuant to Regulation S under the Securities Act. The net proceeds of the offering will be used to purchase vehicles under Hertz' ABS program, used to pay other ABS indebtedness or, to the extent permitted, distributed to The Hertz Corporation and used for general purposes. As reported by the Troubled Company Reporter on April 27, 2010, Hertz and Dollar Thrifty signed a definitive agreement providing for Hertz to acquire Dollar Thrifty for a purchase price of $41.00 per share, in a mix of cash and Hertz common stock. The deal is valued at $1.27 billion. Barclays Capital acted as lead financial advisor to Hertz and Bank of America Merrill Lynch also provided advice. Hertz also worked with the law firms Debevoise & Plimpton LLP and Jones Day. Dollar Thrifty was advised by J.P. Morgan and Goldman, Sachs & Co. and the law firm of Cleary Gottlieb Steen & Hamilton LLP. Rival Avis Budget Group, Inc., on May 3 indicated to Dollar Thrifty's Board of Directors it would like to make a substantially higher offer to acquire Dollar Thrifty. Avis Budget has hired Citigroup as financial advisor and Kirkland & Ellis LLP as legal counsel to advise on a possible deal with Dollar Thrifty. About Dollar Thrifty Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa, Oklahoma. Driven by the mission "Value Every Time," the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value- conscious travelers in over 70 countries. Dollar and Thrifty have over 600 corporate and franchised locations in the United States and Canada, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 6,400 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. At March 31, 2010, the Company had total assets of $2,470,879,000 against total liabilities of $2,047,769,000, resulting in stockholders' equity of $423,110,000. * * * As reported by the Troubled Company Reporter on May 5, 2010, Dominion Bond Rating Service placed the ratings of Dollar Thrifty Automotive Group, Inc., including its Issuer Rating of B (high), Under Review with Positive Implications. This ratings action follows the announcement that the Company has reached a definitive agreement to be acquired by the higher-rated Hertz Corporation. DBRS rates Hertz BB, at the issuer level. In November 2009, Standard & Poor's Ratings Services raised its corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in light of the Company's improved operating and financial performance that began in mid-2009. Moody's Investors Service also upgraded Dollar Thrifty's Probability of Default Rating to 'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3'. DOLLAR THRIFTY: Opens 12th 'Customer-Choice' Location ----------------------------------------------------- Dollar Thrifty Automotive Group, Inc. is now offering customers its customer-choice rental service at the San Jose International Airport (SJC). San Jose marks the Company's 12th operation to offer this customer-friendly and efficient service, and the Company plans to convert at least another 10 cities by the end of the year. Dollar Thrifty's well-received customer-choice offering gives customers the ability to reserve a vehicle class and size, and then select their own vehicle from those available on the lot at the time of arrival. This option provides customers with flexibility, while at the same time enhances efficiency by streamlining the rental process. Customer feedback has shown that it is an excellent added value at no additional cost. "Not only does this service streamline our internal operations, it significantly transforms our customers' car rental experience," said Scott Thompson, president and CEO of Dollar Thrifty Automotive Group, Inc. "It puts customers in the driver's seat when selecting the vehicle that's right for them in terms of their tastes and needs. They have responded quite favorably to being given more flexibility in the rental process, and we are pleased with the initial results." The service presently operates in Atlanta, Los Angeles, Oakland, Ontario (Calif.), Las Vegas, Orlando, Phoenix, Denver, Houston Intercontinental, Washington, D.C. (Dulles Airport) and Houston Hobby Airport. Because of overwhelmingly positive customer feedback and its initial success at these locations, the Company plans to rollout out the customer-choice service in a number of major cities including Miami, Cleveland, Dallas Love Field and Baltimore, as well as other new locations that are operationally able to participate. The conversion will take place over the summer months through year end. To learn more information about the service, receive updates on cities as they offer the customer-choice option, and learn about special promotions, visit the Travel Center on the Company's brands' Web sites at www.thrifty.com and www.dollar.com and click on Travel Tools. About Dollar Thrifty Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa, Oklahoma. Driven by the mission "Value Every Time," the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value- conscious travelers in over 70 countries. Dollar and Thrifty have over 600 corporate and franchised locations in the United States and Canada, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 6,400 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. The Company's balance sheet at Dec. 31, 2009, showed $2.64 billion in total assets and $2.25 billion in total liabilities. I November 2009, Standard & Poor's Ratings Services raised its corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in light of the Company's improved operating and financial performance that began in mid-2009. Moody's Investors Service also upgraded Dollar Thrifty's Probability of Default Rating to 'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3' DONNIE CROSS: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Donnie L. Cross 4803 Towson Avenue Fort Smith, AR 72901 Bankruptcy Case No.: 10-73340 Chapter 11 Petition Date: June 28, 2010 Court: U.S. Bankruptcy Court Western District of Arkansas (Fort Smith) Debtor's Counsel: Thomas E. Robertson, Jr., Esq. Pryor Robertson Beasley & Smith, PLLC P.O. Drawer 848 Fort Smith, AR 72902-0848 Tel: (479) 782-8813 E-mail: trobertson@prbslaw.com Estimated Assets: $500,001 to $1,000,000 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/arwb10-73340.pdf The petition was signed by the Debtor. DRAGON PHARMA: Shareholders to Vote on Datong Merger on July 20 --------------------------------------------------------------- Dragon Pharmaceutical Inc. announced Monday that its Special Meeting of Shareholders will be held on Tuesday, July 20, 2010, at 10:30 a.m., Pacific Time at the Company's corporate office located at Suite 310, 650 West Georgia Street, Vancouver, British Columbia, Canada V6B 4N9. Only shareholders of record as of May 28, 2010, will be entitled to vote upon the proposed Agreement and Plan of Merger by and among Dragon, Chief Respect Limited, a Hong Kong corporation, Datong Investment Inc., a Florida corporation and subsidiary of Chief Respect Limited, and Mr. Yanlin Han, pursuant to which Datong Investment Inc. will merge with and into Dragon and each holder of Dragon shares of common stock, excluding Mr. Han, will receive $0.82 per share. In connection with the proposed merger, the Company has filed with the Securities and Exchange Commission a Schedule 13E-3, and a definitive proxy statement for the meeting of stockholders of the Company to be convened to approve the merger. A full-text copy of the Schedule 13E-3 is available for free at: http://researcharchives.com/t/s?658b A full-text copy of the definitive proxy statement is available for free at http://researcharchives.com/t/s?658c About Dragon Pharmaceutical Headquartered in Vancouver, Canada, Dragon Pharmaceutical Inc. (TSX: DDD; OTC BB: DRUG) - http://www.dragonpharma.com/- is a manufacturer and distributor of a broad line of high-quality antibiotic products including Clavulanic Acid, an API to combine with Amoxicillin to fight resistance, and 7-ACA, a key intermediate to produce cephalosporin antibiotics, and formulated cephalosporin antibiotic drugs. The Company's balance sheet as of March 31, 2010, showed $200.1 million in assets, $132.9 million of liabilities, and $67.2 million of stockholders' equity. * * * As reported in the Troubled Company Reporter on April 5, 2010, Chang Lee LLP, in Vancouver, Canada, said that the Company's recurring working capital deficiency raises substantial doubt about its ability to continue as a going concern. DSG INTERNATIONAL: Moody's Raises Senior Unsecured Rating to 'Ba3' ------------------------------------------------------------------ Moody's Investors Service has changed the outlook on the ratings of DSG International plc to stable from negative. Concurrently, Moody's has upgraded the long-term senior unsecured rating of the GBP300 million outstanding bond to Ba3 (LGD4, 56%) from B1 (LGD5, 81%). "The change in outlook to stable reflects Moody's positive assessment of (1) the successful execution so far of DSGi's Renewal and Transformation Plan initiated in May 2008; (2) the enhanced underlying performance which resulted in improved credit metrics for FY 2009/10; and (3) the stronger financial structure and liquidity position," says Yasmina Serghini-Douvin, lead analyst for DSGi. Moody's recognises that the company has made progress with its Renewal and Transformation Plan, which includes the ongoing revamp of its UK-based stores, as well as the opening of megastores and 2-in-1 stores which continue to post strong profit uplift compared to the rest of the chain. Moody's also views favorably DSGi's closure or sale of certain underperforming units, and the reduction in the losses reported by some of its overseas units last year, in particular Italy, which have weighed on the group's profits in recent years. Even though the electronics and electrical industry has continued to face challenges across Europe, DSGi's like-for-like sales growth improved to +2% in its financial year ending 1 May 2010 (+6% in the second half of the year), albeit against weak comparables in FY 2008/09 when like-for-like sales were down 9%. Moody's estimated DSGi's adjusted EBITA margin to be around 3.8% last year, as a result of cost savings that contributed to higher profits in the UK (+20% to GBP71 million), a robust sales performance in the Nordics where the company pursued an aggressive pricing policy to weaken competition and reduced losses from Continental European businesses, as discussed above. As a result of these positive developments, the credit metrics of the company improved in FY2009/10. Based on DSGi's preliminary results announcement, Moody's estimates that the Retained-Cash- Flow-to-Net-Debt ratio increased to approximately 11.5% and the Debt-to-EBITDA ratio (adjusted for pensions and leases) was around 5.8x, still high but getting closer to the 5.5x threshold that Moody's considers as more appropriate for the rating category. Furthermore, Moody's notes that in May 2010 DSGi signed a new revolving credit facility of GBP360 million to replace the existing GBP400 million negotiated in April 2009. Moody's understands that, as part of the new agreement, bank lenders will only benefit from guarantees from the UK and Irish companies, such that the guarantee structure is now closely aligned with that of the outstanding 2012 bond. In Moody's view, this will position bondholders more favorably within the overall debt structure. The rating agency has therefore removed the notching for the bond which had previously been in place. Moody's continues to believe, however, that (i) although more stable, the operating environment remains subdued which brings a degree of uncertainty on future top line evolution, and that (ii) leverage is still high for the rating category and finally that (iii) free cash flow generation will be constrained this year reflecting the capital expenditure required by the company's ongoing Renewal and Transformation Plan. DSGi's liquidity profile is currently supported by access to a GBP400 million revolving credit facility (of which GBP300 million was available at 1 May 2010), which includes three financial covenants and cash balances (excluding restricted funds) of around GBP210 million. Moreover, Moody's notes that, apart from the drawings under the credit facility, DSGi's most significant debt maturity is the outstanding GBP300 million bond which will mature in November 2012. The current ratings and outlook assume that DSGi will refinance this instrument in a timely manner to prevent any liquidity concerns. The rating outlook is stable. Although Moody's does not expect the consumer environment to ease over the next three quarters, the rating agency believes that DSGi is building a better operational platform with which to face competition and reap the benefits of a pick-up in demand as and when European economies recover. The present stable outlook also assumes that DSGi will further improve its leverage ratio to below 5.5x and maintain adequate financial flexibility and covenant leeway. Moody's previous rating action on DSGi was implemented on 6 May 2009, when the rating agency confirmed DSGi's Ba3 corporate family rating and downgraded the long-term senior unsecured rating to B1, with a negative outlook. Headquartered in Hemel Hempstead, England, DSG International plc is one of Europe's leading specialist consumer electrical retailers. It posted revenues of GBP8.5 billion for the fiscal year ending on 1 May 2010. DUNE ENERGY: Withdraws Common Stock From NYSE AMEX -------------------------------------------------- Dune Energy Inc. notified NYSE AMEX of the Company's intent to voluntarily withdraw its common stock from listing on the Exchange, par value $0.001 per share, from the Exchange by filing a Form 25 with the Securities and Exchange Commission on or about July 6, 2010, with an anticipated effective date on or about July 16, 2010. After such withdrawal, the Company intends for the Common Stock to be quoted on the OTC Bulletin Board and has requested that Lazard Capital Market LLC make the necessary regulatory filings to enable it to publish bids and offers for the Company's equity securities on the OTC Bulletin Board. The OTC Bulletin Board is an electronic quotation system maintained by Financial Industry Regulatory Authority that displays real-time quotes, last sale prices and volume information for many over-the counter securities that are not listed on a national securities exchange. In the absence of any quotation on the OTC Bulletin Board by the anticipated effective date for delisting on the Exchange, the Common Stock will trade and be accessible to investors on the Pink OTC Markets, an electronic quotation system maintained by Pink OTC Markets Inc., a privately owned company not registered with the SEC. The Company intends to remain an SEC reporting company and for the Common Stock to remain a registered class of securities under Section 12(b) of the Securities Exchange Act of 1934, as amended. The Company had been subject to delisting by the Exchange since June 15, 2010 when it failed to regain compliance with the Exchange's continued listing requirements consistent with, and within the timeframe allotted by, its plan of compliance previously submitted and accepted by the Exchange. As formerly disclosed, the Exchange first notified the Company in December 2009 that it was not in compliance with Section 1003(a) of the Exchange's continuing listing requirements as a result of inadequate market value of the Company's stockholders' equity, losses from continued operations and recurring net losses in recent fiscal years. About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. The Company's balance sheet at March 31, 2010, showed $369.1 million in total assets, $188.6 million redeemable convertible preferred stock, and $376.5 million in total liabilities, for a $196.1 million stockholders' deficit. Standard & Poor's Ratings Services revised its recovery rating on Dune Energy Inc.'s $300 million second-lien notes upon updated reserve information. S&P has revised the rating to '4', indicating its expectation for average (30%-50%) recovery in the event of a payment default, from '3'. The issue-level rating of 'CCC-' on these notes remains unchanged. DYNAMIC BUILDERS: Proofs of Claim Due August 20 ----------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has set 60 calendar days after the service of notice as the last day for any individual or entity to file proofs of claim against Dynamic Builders, Inc. The order was issued on June 21, 2010. Los Angeles, California-based Dynamic Builders Inc. owns a commercial real estate. The Company filed for Chapter 11 bankruptcy protection on March 31, 2010 (Bankr. C.D. Calif. Case No. 10-14151). Nanette D Sanders, Esq., at Ringstad & Sanders, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. DYNAMIC BUILDERS: Wants to File Reorganization Plan Until Nov. 26 ----------------------------------------------------------------- Dynamic Builders, Inc., asks the U.S. Bankruptcy Court for the Central District of California to extend its exclusive periods to file and solicit acceptances for the proposed Plan of Reorganization until November 26, 2010, and January 25, 2011, respectively. Absent the extension, the Debtor's exclusive right to file a Plan will expire on July 29. The Debtor needs additional time to proceed with the sale of certain real property assets, and continue efforts to formulate and negotiate a Reorganization Plan. The Debtor proposes a hearing on its exclusivity extensions on July 14, at 10:00 a.m. before the Hon. Theodor C. Albert. The hearing will be held at Courtroom 5B, Ronald Reagan Federal Building and U.S. Courthouse, 411 West Fourth Street, Santa Ana, California. About Dynamic Builders, Inc. Los Angeles, California-based Dynamic Builders, Inc. owns a commercial real estate. The Company filed for Chapter 11 bankruptcy protection on March 31, 2010 (Bankr. C.D. Calif. Case No. 10-14151). Nanette D Sanders, Esq., at Ringstad & Sanders, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. DYNCORP INTERNATIONAL: Stockholders OK Merger With Cerberus ----------------------------------------------------------- DynCorp International Inc's stockholders approved the proposal to adopt the Company's merger agreement with certain affiliates of Cerberus Capital Management, L.P., a private investment firm ("Cerberus"). The affirmative vote of the holders of a majority of the outstanding shares of Class A common stock, par value $0.01 per share, of the Company, was required to approve the proposal to adopt the merger agreement. According to the final tally of shares of Common Stock voted, approximately 88% of the outstanding shares of Common Stock of the Company as of the close of business on May 24, 2010 voted to approve the proposal to adopt the merger agreement. As a result of the merger contemplated by the merger agreement, the Company will become a wholly-owned subsidiary of an entity formed on behalf of certain affiliates of Cerberus. Subject to the satisfaction or waiver of certain conditions set forth in the merger agreement and discussed in detail in the Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission by the Company on May 17, 2010, the Company expects to close the merger on July 7, 2010. About DynCorp International DynCorp International Inc., through its wholly-owned subsidiary DynCorp International LLC, is a global government services provider in support of U.S. national security and foreign policy objectives, delivering support solutions for defense, diplomacy, and international development. DynCorp International operates major programs in logistics, platform support, contingency operations, and training and mentoring to reinforce security, community stability, and the rule of law. ECOSPHERE TECHNOLOGIES: Posts $23.1 Million Net Loss in Q1 2010 --------------------------------------------------------------- Ecosphere Technologies, Inc., filed its quarterly report on Form 10-Q, reporting a net loss applicable to common stock of $23,132,206 on $2,100,867 of revenue for the three months ended March 31, 2010, compared with net income of $3,072,838 on $194,268 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $9,918,916 in assets, $30,981,656 of liabilities, $1,144,119 of redeemable convertible cumulative preferred stock series A, and $2,713,177 of redeemable convertible cumulative preferred stock series B, for a stockholders' deficit of $24,920,036. As reported in the Troubled Company Reporter on April 6, 2010, Salberg & Company, P.A., in Boca Raton, 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 of the Company's net loss for 2009, and working capital, stockholders' and accumulated deficits at December 31, 2009. During the three months ended March 31, 2010, the Company incurred a loss from operations of $1,450,713, and used cash in operations of $945,206. At March 31, 2010, the Company had a working capital deficiency of $27,664,554, a stockholders' deficit of $24,920,036 and had outstanding convertible preferred stock that is redeemable under limited circumstances for $3,857,296 (including accrued dividends). The Company has not attained a level of revenues sufficient to support recurring expenses, and the Company does not presently have the resources to settle previously incurred obligations. "These factors, among others, raise doubt about the Company's ability to continue as a going concern." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?658a Stuart, Fla.-based Ecosphere Technologies, Inc. is a diversified engineering, technology development, and manufacturing company that provides clean technologies and services for use in various applications in the industrial waste market in the United States. EDISON MISSION: Moody's Cuts Ratings on Senior Notes to 'B3' ------------------------------------------------------------ Moody's Investors Service downgraded the long-term ratings of Edison Mission Energy and its subsidiary, Midwest Generation Company, LLC, including EME's senior unsecured notes to B3 from B2, and EME's Corporate Family Rating and Probability of Default Rating to B2 from B1. Moody's also affirmed EME's speculative grade liquidity rating at SGL-3. This rating action concludes the review for possible downgrade that commenced on April 6, 2010. The rating outlook for EME and MWG is negative. The downgrade reflects Moody's belief that EME's cash flow credit metrics will decline in future years due to continued high leverage and lower future sustainable cash flow generation due to weaker operating margins driven principally by low energy and capacity prices. While the company's electric generation output has remained fairly constant during the recession, operating margins have weakened and are expected to remain soft given the impact that the recession continues to have on wholesale electric demand in the Midwest and in PJM coupled with low natural gas prices. Also, EME's open, unhedged commercial strategy leaves the company's operating margin and related cash flows more exposed to the softer on-peak and off-peak power prices that exist which are likely to remain for the foreseeable future. The downgrade also reflects the substantial degree of uncertainty that persists concerning the manner in which EME will satisfy significant state and federal environmental requirements across its generation fleet, particularly given a more active US Environmental Protection Agency. These environmental challenges represent a large overhang issue for EME and MWG's credit quality as the possible outcomes are quite varied, with some potentially becoming quite adverse for the company. Moody's acknowledges that the company's recent financial results and expected outlook for the rest of 2010 are indicative of a higher rating than the company's current B2 CFR. A driving force behind the recent financial performance is the fairly successful execution of its growth strategy principally centered around wind- generation development. Importantly, this strategy has benefited EME's near-term cash flows through the receipt of tax benefits and tax grants from the federal government derived from these wind investments. Also, EME's business strategy continues to benefit from a fairly receptive bank project finance market which Moody's calculate has provided approximately $342 million of permanent debt financing for EME's wind generation projects which in most cases has resulted in a return of capital for EME and an accompanying enhancement to liquidity. Maintaining access to this specialized bank market is an important element of the company's current financing plans. Notwithstanding these material near-term benefits from this strategy as well as the longer-term source of equity that may surface from some form of portfolio monetization, Moody's question the sustainability of this strategy in light of the potential environmental challenges and the weakened commodity environment that exists for the majority of the company's generation fleet. The downgrade also acknowledges the relationship that EME has with its parent, Edison International (Baa2 senior unsecured; stable), and the parent's clear position of not providing any direct credit support for EME and its subsidiaries. Moody's views EIX's position as negative to EME's credit quality since it limits the prospect of any third party equity being available for EME which increases the likelihood that future capital requirements will be largely debt financed adding further to the company's high leverage. Notwithstanding EIX management's view towards providing direct support at EME, Moody's believe that EIX views EME as an important holding that is critical to its broader diversified business strategy particularly given the tax benefits that EME's wind investments have provided to the consolidated corporation. That said, the rating action, which results in a very wide (6- notch) rating differential between EIX's senior unsecured rating and EME's CFR, further substantiates the degree of separateness that Moody's believe exists between EIX and EME. Moody's downgrade at MWG is prompted by the close interrelationship that exists between EME and MWG through the Powerton and Joliet sale leaseback agreement and by MWG's dominant position as the primary source of earnings and cash flow for EME. EME's speculative grade liquidity rating of SGL-3 reflects Moody's expectation for the maintenance of an adequate liquidity position for the next four quarters. The SGL-3 reflects Moody's view that the approximate $1 billion of balance sheet cash at March 31, 2010, will fund any negative free cash flow generated by EME. At March 31, 2010, EME had $465 million of availability under its $564 million revolving credit facility (reflects a $36 million reduction related to a Lehman commitment), and Midwest Generation had $497 million of availability under its $500 million revolving credit facility. Both facilities do not mature until June 2012 while EME's next bullet bond maturity of $500 million occurs in June 2013. Extension of these bank credit facilities are important milestones for EME. Both credit facilities have financial covenants which EME and MWG should be able to maintain over the next twelve months. The EME revolver requires recourse debt to total capitalization not exceed 75% and requires interest coverage (as defined in the credit agreement) be greater than 1.20x. At March 31, 2010, EME's recourse debt to total capitalization was 53% and its interest coverage ratio was 1.99x. The MWG revolver requires debt to total capitalization not to exceed 60%. At March 31, 2010, MWG's total debt to total capitalization was 16%. In addition to the covenants described above, there is a distribution test in the financing documents for the Homer City lease which can prohibit distributions from being paid to EME. Specifically, in order for EME Homer City to pay the equity portion of the lease rent, EME Homer City is required to meet historical and projected senior rent service coverage ratios of 1.70x. At 12/31/09 and 03/31/10, the senior rent service coverage ratio was 2.96x and 3.10x, respectively. To the extent that cash is trapped at EME Homer City, covenant compliance under the above-referenced EME revolver will become tighter. Moody's observes that many of the company's assets are pledged to creditors limiting the near-term potential for additional liquidity from asset sales. The negative rating outlook for EME and MWG reflects Moody's belief that weaker future cash flow generation and the likelihood that under most reasonable scenarios, existing high leverage is likely to further increase placing downward pressure on financial metrics going forward. The negative outlook also acknowledges the uncertainty surrounding the environmental challenges for the company. Even in the best case scenario, where EME elects to fund environmental requirements from internal sources with lower capital cost alternatives, Moody's believe debt levels are still likely to increase on a consolidated basis to fund wind related growth investments. The last rating action on EME and MWG occurred on April 6, 2010, when EME and MWG's ratings were placed under review for possible downgrade. Downgrades: Issuer: Edison Mission Energy -- Probability of Default Rating, Downgraded to B2 from B1 -- Corporate Family Rating, Downgraded to B2 from B1 -- Senior Secured Bank Credit Facility, Downgraded to B2 from B1 -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3 from B2 Issuer: Midwest Generation, LLC -- Senior Secured Bank Credit Facility, Downgraded to Ba2 from Ba1 -- Senior Secured Pass-Through, Downgraded to Ba2 from Ba1 Upgrades: Issuer: Midwest Generation, LLC -- Senior Secured Pass-Through, Upgraded to LGD2, 12% from LGD2, 13% Outlook Actions: Issuer: Edison Mission Energy -- Outlook, Changed To Negative From Rating Under Review Issuer: Midwest Generation, LLC -- Outlook, Changed To Negative From Rating Under Review Headquartered in Irvine, California, EME is an unregulated generation company and an indirect wholly-owned subsidiary of EIX. At December 31, 2009, EME had an ownership or leased interests of 10,072 megawatts (MW) of electric capacity, of which MWG owned 5,776 MW of base load and mid-merit coal-fired assets and oil/gas peaking assets in the Midwest and EME Homer City, had a leasehold interest in the Homer City Generation Station, a 1,884 MW coal- fired base load plant in Western PA. EIGEN INC: Consensual Deal Allows Kazi Purchase; Plan in the Works ------------------------------------------------------------------ Jacqueline Palank, writing for Dow Jones Daily Bankruptcy Review, reports that Judge Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware on Monday approved Kazi Management VI LLC's offer to forgive $1 million of claims of more than $20 million in exchange for substantially all of the assets of Eigen Inc. The official committee of unsecured creditors had raised "substantial concerns" regarding the sale but was hopeful that negotiations with Eigen and KMVI would yield a consensual deal. According to Ms. Palank, the committee's attorney, Richard M. Beck, Esq., said on Tuesday the committee's hopes were realized. "We advised the court [on Monday] that an agreement has been reached with Kazi that resulted in the withdrawal of the committee's objection," Mr. Beck said in an interview, according to Ms. Palank. "The agreement will result in the filing of a consensual plan of liquidation that is being drafted." Citing an earlier report by Ms. Palank, the Troubled Company Reporter on June 25 said the creditors committee was suing Kazi for allegedly driving Eigen deep into financial distress in a bid to seize control. The creditors committee sued Kazi and its owner Zubair Kazi accusing them of loading up Eigen with millions of dollars in debt they knew it couldn't repay to take control of the company. The committee asked the Court to declare the $20 million-plus claim KMVI says it holds as equity and to wipe out the liens allegedly securing that claim. According to Ms. Palank, Mr. Beck said the plan will also resolve the lawsuit that the committee filed against Kazi, though he declined to specify how. About Eigen Grass Valley, California-based Eigen, Inc., a.k.a. Eigen, LLC, develops tools for healthcare professionals. The Company filed for Chapter 11 bankruptcy protection on March 30, 2010 (Bankr. D. Del. Case No. 10-11061). Christopher A. Ward, Esq., at Polsinelli Shughart PC, assists the Company in its restructuring effort. In its petition, the Company estimated its assets and debts at $10,000,001 to $50 million. FAIRPOINT COMMS: Vermont Public Service Board Rejects Plan ---------------------------------------------------------- Dave Gram at The Associated Press reports that the Public Service Board of the state of Vermont rejected a plan by FairPoint Communications to work itself out of bankruptcy leaving the Company's path unclear. The Vermont board said it could not find that FairPoint has demonstrated the financial capability to meet its obligations under Vermont law and its state license as a telecommunications carrier. FairPoint has provided virtually no explanation as to why its projections are reasonable, according to the report. The report relates that according the board, the projections are based upon the assumption that FairPoint's losses in local revenue due to competition will be less than the Company has experienced recently, that it can increase revenues from broadband services and special access services faster than it has recently, and that operating costs will trend downwards relative to recent experience. 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. FIRST INDUSTRIAL: Fitch Downgrades Issuer Default Rating to 'B+' ---------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating and revised the issue ratings of First Industrial Realty Trust, Inc., and its operating partnership, First Industrial, L.P.: First Industrial Realty Trust, Inc. -- IDR to 'B+' from 'BB-'; -- $275 million preferred stock to 'CCC/RR6' from 'B'. First Industrial, L.P. -- IDR to 'B+' from 'BB-'; -- $500 million unsecured revolving credit facility to 'BB/RR1' from 'BB-'; -- $775.4 million senior unsecured notes to 'BB-/RR3' from 'BB-'; -- $145.2 million senior unsecured exchangeable notes to 'BB- /RR3' from 'BB-'. In addition, the ratings remain on Rating Watch Negative. The IDR downgrades center on Fitch's view that First Industrial's fixed charge coverage ratio, which is expected to experience continued pressure over the next 12-24 months, coupled with its limited financial flexibility and liquidity, are more consistent with a 'B+' IDR. The company's financial condition continues to weaken, and the ability to meet certain unsecured debt covenants is limited. In addition, the risk that the company could defer its preferred stock dividends indicates that financial flexibility is constrained; material default risk of the company's corporate obligations is present, but a limited margin of safety remains. The 'B+' IDR takes into account certain credit strengths, including First Industrial's geographically diversified industrial property portfolio, granular tenant roster, reasonable leverage for the 'B+' IDR, and unencumbered asset coverage that provides value to unsecured lenders. The Rating Watch Negative status reflects the company's proximity to certain of its covenant compliance levels as well as uncertainty as to whether it would suspend a preferred stock dividend. The company has stated that if it is not required to pay preferred stock dividends to maintain REIT status, it may elect to suspend some or all preferred stock dividends for one or more fiscal quarters, which would aid compliance with the fixed charge coverage covenant under its existing line of credit. The Negative Rating Watch may be resolved in the event that the company definitively addresses its covenant compliance. First Industrial's industrial real estate operating portfolio remains under pressure, with tenant retention declining to 67.4% on average for the trailing 12 months ended March 31, 2010 from 78.4% for the 12 months ended March 31, 2009. In addition, in- service occupancy decreased to 81.4% as of March 31, 2010 from 86% as of March 31, 2009. Total occupancy declined to 81.1% as of March 31, 2010 from 82.4% as of March 31, 2009. Cash same-store net operating income declined by 3.5% in 2009 and accelerated in the first quarter of 2010, declining by 7.2%, and Fitch anticipates further same-store industrial NOI declines in 2010 and into 2011. First Industrial's fixed charge coverage ratio (defined as recurring operating EBITDA less recurring capital expenditures and straight-line rental income divided by interest incurred and preferred stock dividends) was 1.1 times for the 12 months ended March 31, 2010, down from 1.2x in 2009. When adjusted for non- cash restricted stock amortization in general and administrative expenses, fixed charge coverage declined to 1.2x for the 12 months ended March 31, 2010, from 1.3x in 2009. In addition, overall transaction volumes have contracted, impacting First Industrial's earnings power and ability to sell weaker-performing assets. Absent significant deleveraging transactions, Fitch anticipates that fixed charge coverage will remain relatively unchanged over the next 12-24 months, as the company will likely experience rental rate roll downs, offset by modest cash retention. The 'B+' IDR also reflects First Industrial's limited financial flexibility. As of March 31, 2010, $497.2 million was drawn from the company's $500 million revolving credit facility. In addition, the company is in compliance relative to the fixed charge coverage and unsecured leverage covenants in its line of credit agreement by thin margins. Even if the company's level of compliance were to improve, Fitch believes that the company's overall liquidity could remain under stress. Fitch calculates that the company's sources of liquidity (unrestricted cash, availability under the company's revolving credit facility, and projected retained cash flows from operating activities after dividends and distributions) divided by uses of liquidity (debt maturities pro forma for the redemption of 2011 notes during April 2010 and projected recurring capital expenditures) result in a liquidity coverage ratio of 0.7x from April 1, 2010 to Dec. 31, 2011. In the event that the company extinguished its pro rata share of joint venture debt and the company continues to refinance mortgage debt through new financings, liquidity coverage would be 1.1x. The 'B+' IDR takes into account First Industrial's geographically diversified industrial property portfolio, which includes 781 properties located in 28 states in the United States and one province in Canada. The company's largest markets are Detroit and Chicago, comprising 7.5% and 7.1% of rental income respectively, and no other market comprised more than 7% of rental income as of March 31, 2010. While this diversification insulates First Industrial from regional trends, several of the company's other large markets, including Dallas/Ft. Worth (6.3%), Minneapolis/St. Paul (6.3%), Central Pennsylvania (5.4%), and Atlanta (4.7%) have occupancy rates of below 80%. The company has a granular tenant roster across industries, and its largest tenant comprises only 2.3% of total rent. The company's net debt-to-recurring operating EBITDA was 9.0x as of March 31, 2010, down from 12.4x as of Dec. 31, 2008. When adjusted for non-cash restricted stock amortization charges, net debt-to-recurring operating EBITDA was 8.7x as of March 31, 2010, down from 10.7x as of Dec. 31, 2008 The company's portfolio was 77% unencumbered as of March 31, 2010, and unencumbered asset coverage ratio (defined as 77% of real estate assets divided by unsecured debt) was 1.7x. Unencumbered asset coverage of unsecured debt is lower when utilizing a range of capitalization rates against unencumbered NOI. In accordance with Fitch's Recovery Rating methodology, Fitch has assigned RRs because of the IDR downgrade to 'B+'. While aspects of Fitch's RR methodology are considered for all companies, explicit Recovery Ratings are assigned only to those companies with an IDR of 'B+' or below. At the lower IDR levels, Fitch believes there is greater probability of default, so the impact of potential recovery prospects on issue specific ratings becomes more meaningful and is more explicitly reflected in the ratings dispersion relative to the IDR. The 'BB/RR1' ratings on First Industrial's senior unsecured revolving credit facility reflect the view that recoveries would be superior for the lenders under the line of credit in the event of a default. The 'BB-/RR3' ratings on the senior unsecured notes and senior unsecured exchangeable notes reflect that due to the presence of an unencumbered pool, recoveries would be above- average for bondholders but would be weaker than bank recoveries given adverse selection risk. The 'CCC/RR6' ratings on First Industrial's preferred stock reflect Fitch's view that recovery prospects for preferred stock would be minimal given default. These factors may result in positive momentum on the ratings: -- If the Fitch fixed-charge coverage ratio sustains above 1.2x (for the 12 months ended March 31, 2010, fixed-charge coverage was 1.1x); -- If the company's unencumbered asset coverage of unsecured debt and preferred stock sustains above 1.8x (as of March 31, 2010, the company's unencumbered asset coverage ratio was 1.7x but weaker when utilizing a range of capitalization rates on unencumbered NOI); -- A liquidity surplus. These factors may result in negative momentum on the ratings: -- If the Fitch fixed-charge coverage ratio sustains at 1.0x or lower; -- If the company's unencumbered asset coverage of unsecured debt and preferred stock sustains below 1.6x; -- A covenant violation; -- A suspension of the company's preferred stock dividend. FLYING J: Faces Criticism Over Environmental Liabilities -------------------------------------------------------- Flying J Inc.'s Chapter 11 reorganization plan is facing criticism from Montana's environmental regulator, which claims the plan whitewashes the oil company's environmental liabilities to the state, Bankruptcy Law360 reports. Law360 says the Montana Department of Environmental Quality urged Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware on Monday to reject Flying J's reorganization plan. About Flying J Inc. Based in Ogden, Utah, Flying J Inc. -- http://www.flyingj.com/-- is among the 20 largest private companies in America, with 2007 sales exceeding $16 billion. The fully integrated oil company employs approximately 14,700 people in the U.S. and Canada through its interstate operations, transportation, refining and supply, exploration and production, as well as its financial services and communications, divisions. Flying J and six of its affiliates filed for bankruptcy on December 22, 2008 (Bankr. D. Del. Lead Case No. 08-13384). Flying J sought Chapter 11 protections after a precipitous drop in oil prices and disruption in the credit markets brought to bear significant short-term pressure on the company's liquidity position. Attorneys at Young Conaway Stargatt & Taylor LLP, and Kirkland & Ellis LLP, represent the Debtors in their Chapter 11 effort. Blackstone Advisory Services L.P. is the Debtors' investment banker and financial advisor. Epiq Bankruptcy Solutions LLC is the Debtors' notice, claims and balloting agent. In its formal schedules submitted to the Bankruptcy Court, Flying J listed assets of $1,433,724,226 and debts of $640,958,656. An official committee of unsecured creditors has been appointed in the case. Pachulski Stang Ziehl & Jones LLP has been tapped as counsel for the creditors' panel. FONTAINEBLEAU LV: Fidelity Proposes Rule 2004 Exams Notice Filing ----------------------------------------------------------------- Fidelity National Title Insurance Company and its affiliates, and First American Title Insurance Company ask the U.S. Bankruptcy Court for the Southern District of Florida to require parties-in- interest in the Chapter 7 cases of Fontainebleau Las Vegas Holdings LLC and its debtor-affiliates to file with the Court the parties' pending and future notices of examinations under Rule 2004 of the Federal Rules of Bankruptcy Procedure, as well as any written responses or objections to those notices. Fidelity and First American filed proofs of claims in the Debtors' bankruptcy cases in connection with insurance policies they issued to certain Debtors. David M. Levine, Esq., at Levine Kellogg Lehman Schneider + Grossman, LLP, in Miami, Florida -- dml@tewlaw.com -- contends that by filing the Rule 2004 Notices, creditors like Fidelity and First American will be made aware through the Court's electronic filing and service system of requests for information and documents, and any objections or responses, that may be of significance to them and other creditors with claims against the Debtors' estates. Substantive issues remain for determination by the Court in the bankruptcy cases relating to claims objections, valuation of assets and allocation of proceeds of the sale of the Debtors' assets to Icahn Nevada Gaming Acquisition LLC, Mr. Levine reminds the Court. He asserts that these issues are factually intensive and may require extensive discovery in the form of Rule 2004 examinations and document production. He points out that creditors need to be aware of those document requests for the information produced may impact their claims against the estates. Fidelity and First American assures the Court that Soneet R. Kapila, the Debtors' Chapter 7 Trustee, has no objection to the relief requested, as long as he continues to be served with Rule 2004 requests in the ordinary course pursuant to Rule 2004-1(A) of the Local Rules of the United States Bankruptcy Court for the Southern District of Florida. * * * Judge Cristol granted the request and directed the Debtors and parties-in-interest to: -- file with the Court Notices of Rule 2004 Examinations that have already been served but not filed, future Notices, and all written responses or objections to those Notices; and -- continue to serve the Notices on the Chapter 7 Trustee, the Debtors, the Debtors' counsel and the party to be examined, pursuant to Local Rule 2004-1. Term Lenders File Notice Pursuant to the order requiring filing of Notices, the Term Lender Steering Group notifies the Court and parties-in-interest that it has served these pending Notices: (1) Subpoena and Rule 2004 Document Production Request to Fontainebleau Resorts, LLC; (2) Subpoena and Rule 2004 Document Production Request to Turnberry Residential Limited Partner, L.P.; and (3) Subpoena and Rule 2004 Document Production Request to Turnberry West Construction, Inc. The Term Lender Steering Group also tells the Court that the only written response or objection it received in connection with the pending requests is from Fontainebleau, which was filed on April 19, 2010. http://bankrupt.com/misc/FB_RetailMezzanineMOR042010.pdf About Fontainebleau Las Vegas Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- is constructing a luxury resort, Fontainebleu Las Vegas, on the northern end of the Las Vegas Strip. Fontainebleau Las Vegas Holdings, LLC and its units filed for Chapter 11 protection on June 9, 2009 (Bankr. S.D. Fla. Lead Case No. 09-21481). Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, represented the Debtors in their restructuring effort. The Debtors' claims agent is Kurtzman Carson Consulting LLC. Attorneys at Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP, represent the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC listed more than $1 billion in debt and a similar amount in assets, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings, LLC, listed less than $50,000 in assets and more than $1 billion in debts. In February 2010, Icahn Enterprises L.P. acquired from Fontainebleau Las Vegas and certain affiliated entities, the Fontainebleau property and improvements thereon located in Las Vegas, Nevada, for an aggregate purchase price of approximately $150 million. Bankruptcy Creditors' Service, Inc., publishes Fontainebleau Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Fontainebleau Las Vegas Holdings, LLC, and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FONTAINEBLEAU LV: $40.6 Mil. in Claims Change Hands for May ----------------------------------------------------------- The Clerk of the Bankruptcy Court recorded the transfer of six claims totaling $40,645,199 from May 1 - May 31, 2010, to Brigade Leveraged Capital Structures Fund, Ltd.: Transferor Claim No. Claim Amount ---------- --------- ------------ Blue Ridge Investments LLC 254 $11,548,399 Blue Ridge Investments LLC 260 11,548,399 Blue Ridge Investments LLC -- 11,548,399 Morgan Stanley Senior Funding 945 2,000,000 Morgan Stanley Senior Funding 946 2,000,000 Morgan Stanley Senior Funding 793 2,000,000 For the period November 1, 2009, to April 12, 2010, the Clerk of the Bankruptcy Court recorded the transfer of 74 claims totaling $202,432,701. About Fontainebleau Las Vegas Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- is constructing a luxury resort, Fontainebleu Las Vegas, on the northern end of the Las Vegas Strip. Fontainebleau Las Vegas Holdings, LLC and its units filed for Chapter 11 protection on June 9, 2009 (Bankr. S.D. Fla. Lead Case No. 09-21481). Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, represented the Debtors in their restructuring effort. The Debtors' claims agent is Kurtzman Carson Consulting LLC. Attorneys at Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP, represent the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC listed more than $1 billion in debt and a similar amount in assets, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings, LLC, listed less than $50,000 in assets and more than $1 billion in debts. In February 2010, Icahn Enterprises L.P. acquired from Fontainebleau Las Vegas and certain affiliated entities, the Fontainebleau property and improvements thereon located in Las Vegas, Nevada, for an aggregate purchase price of approximately $150 million. Bankruptcy Creditors' Service, Inc., publishes Fontainebleau Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Fontainebleau Las Vegas Holdings, LLC, and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FONTAINEBLEAU LV: Icahn Pulls $1.2 Bil. Permits for Casino ---------------------------------------------------------- Construction permits exceeding $1.2 billion in value were pulled for the Fontainebleau casino resort in the Las Vegas Strip, Las Vegas Sun reports. Richard N. Velotta of the Las Vegas Sun says that the Clark County Development Services, which tracks the issuance of building permits, has reported that Icahn Nevada Gaming Acquisition LLC pulled 47 permits for projects at the development's 2777 Las Vegas Boulevard South address. As previously reported, Judge Cristol approved the Debtors' request to sell the bankrupt and unfinished Fontainebleau Las Vegas casino resort for $156.1 million to Icahn Nevada. Work on the Project has yet to resume. The 47 permits, which listed Taylor International Corp. as contractor, include casino, hotel and restaurant remodelings, miscellaneous commercial structure work and parking structure modifications, the Las Vegas Sun reports. About Fontainebleau Las Vegas Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- is constructing a luxury resort, Fontainebleu Las Vegas, on the northern end of the Las Vegas Strip. Fontainebleau Las Vegas Holdings, LLC and its units filed for Chapter 11 protection on June 9, 2009 (Bankr. S.D. Fla. Lead Case No. 09-21481). Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, represented the Debtors in their restructuring effort. The Debtors' claims agent is Kurtzman Carson Consulting LLC. Attorneys at Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP, represent the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC listed more than $1 billion in debt and a similar amount in assets, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings, LLC, listed less than $50,000 in assets and more than $1 billion in debts. In February 2010, Icahn Enterprises L.P. acquired from Fontainebleau Las Vegas and certain affiliated entities, the Fontainebleau property and improvements thereon located in Las Vegas, Nevada, for an aggregate purchase price of approximately $150 million. Bankruptcy Creditors' Service, Inc., publishes Fontainebleau Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Fontainebleau Las Vegas Holdings, LLC, and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FORD MOTOR: To Reduce Debt by More Than $4 Billion -------------------------------------------------- Ford Motor Company is reducing its debt by more than $4 billion -- primarily by retiring debt owed to the UAW Retiree Medical Benefits Trust ahead of schedule. The company said it is taking the action to further strengthen its balance sheet as it gains momentum on its One Ford plan and remains on track to deliver solid profits and positive Automotive operating-related cash flow this year. Ford is making scheduled payments in cash totaling about $860 million on Notes A and B held by the UAW Retiree Medical Benefits Trust -- including about $250 million due under Note A, and $610 million due under Note B. Ford had the option to pay Note B with cash or Ford stock but agreed to pay with cash. In addition, Ford and its subsidiary, Ford Motor Credit Company, are paying a combined $2.9 billion to retire the remaining obligation on Note A at an agreed upon discount of 2%. Separately, Ford is making a $255 million cash payment to bring current previously deferred quarterly distributions on the 6.50% Cumulative Trust Preferred Securities of Ford Motor Company Capital Trust II. With Wednesday's payments and an April payment of $3 billion on its 2013 revolving credit facility, Ford will have reduced its debt by more than $7 billion in the second quarter. The second quarter debt reduction will save Ford more than $470 million in annual interest expense. "Our One Ford plan to profitably grow our business is working, and we are increasingly confident about the future," said Ford President and CEO Alan Mulally. "We expect to continue to improve our balance sheet as we deliver on our plan. Importantly, our business results make it possible to take these actions while still accelerating the investments we are making in our business to serve our customers with the very best cars and trucks. "We are pleased to make these payments ahead of schedule for the benefit of Ford and our UAW-Ford retirees who count on the Trust for their health care benefits," Mr. Mulally said. The second quarter debt reductions are in addition to a series of actions Ford has taken since early 2009 to improve its balance sheet. These include completing transactions in spring 2009 that reduced Ford's Automotive debt obligations by $10.1 billion, and raising more than $5.7 billion since the second quarter of 2009 through several equity and equity-linked offerings. VEBA Trust Note Obligations Pursuant to a March 2008 settlement agreement, the UAW Retiree Medical Benefits Trust was created to assume responsibility for providing retiree health care benefits to eligible Ford-UAW employees and their dependants, the cost of which would be funded with assets contributed by Ford. The settlement was amended in March 2009 to create Notes A and B, which smoothed Ford's payment obligations and gave Ford the option to use Ford stock to make payments under Note B. On Dec. 31, 2009, Ford completed the transfer of assets, including Notes A and B, to the UAW Retiree Medical Benefits Trust, and the trust assumed the retiree health care liabilities. June 2010 Agreement The payments made Wednesday result from an agreement last week between Ford and the UAW Retiree Medical Benefits Trust that includes: * Ford making the scheduled payments on Notes A and B in cash totaling about $860 million. * Ford and Ford Credit purchasing for cash the remaining $2.96 billion outstanding principal amount of Note A at a price of 98%, or $2.9 billion, of which $1.6 billion is being paid by Ford and $1.3 billion is being paid by Ford Credit. Ford Credit intends to deliver to Ford the portion of Note A that it is purchasing from the UAW Retiree Medical Benefits Trust to satisfy existing intercompany tax liabilities it owes to Ford. * Subject to regulatory approval, the UAW Retiree Medical Benefits Trust is providing Ford a three-year right beginning in July 2010 whereby Ford has the flexibility to pre-pay for cash, periodically during each year, all or a portion of the remaining $3.6 billion outstanding principal amount of Note B at a 5% discount for purchases made prior to 2012 and at a 4% discount for purchases made after 2011. Previously, Ford could pre-pay Note B once a year at par. "We are very pleased with this transaction, which continues the process of diversifying the Trust's assets at very attractive values and assists the thousands of Ford retired employees, their families and survivors and others who look to the Trust to fund their retiree health benefits," said Samuel W. Halpern, president of Independent Fiduciary Services, Inc., the independent fiduciary and investment manager for the UAW Retiree Medical Benefits Trust. Repayment and Reinstatement of Distributions on TruPS Ford also said it is paying in cash to the trustee all accrued distributions previously deferred totaling $255 million on the Trust Preferred Securities, and that it intends to resume making quarterly distribution payments starting with the payment due on July 15, 2010. The accrued distributions will be paid by the trustee on July 15, 2010, to the holders of record of the Trust Preferred Securities on June 30, 2010. Distributions on the Trust Preferred Securities had been deferred in accordance with their terms since April 15, 2009. Ford said its liquidity and ability to generate positive cash flow are sufficient to warrant reinstatement of the distributions on the Trust Preferred Securities. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The Company provides financial services through Ford Motor Credit Company. At March 31, 2010, the Company had $191.968 billion in total assets against $197.405 billion in total liabilities. As reported by the Troubled Company Reporter on June 7, 2010, Moody's released an Issuer Comment stating that the ratings and outlook of Ford Motor Company are being maintained following the company's announcement that it will end production of Mercury vehicles during the fourth quarter of this year. Ford's ratings include: B1 Corporate Family Rating and Probability of Default Rating; Ba1 secured rating; B2 unsecured rating; and SGL-2 Speculative Grade Liquidity Rating. The rating outlook is stable. The last rating action on Ford was an upgrade of the company's Corporate Family Rating to B1 on May 18, 2010. FRANKLIN TOWERS: Posts $316,000 Net Loss in Q1 2010 --------------------------------------------------- Franklin Towers Enterprises, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $316,082 on $712,511 of revenue for the three months ended March 31, 2010, compared with a net loss of $326,546 on $398,371 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $6,413,162 in assets and $9,774,294 of liabilities, for a stockholders' deficit of $3,361,132. The Company started its test production at the end of June 2007 and commenced its manufacturing operations during the third quarter of 2007. The Company has incurred a net loss of $316,082 and $326,546, for the three months ended March 31, 2010, and 2009, respectively. The Company has an accumulated deficit of $22,031,352 at March 31, 2010. Substantial portions of the losses are attributable to common stock issued for consulting services, amortization of debt discount, deferred finance costs and beneficial conversion feature, and accrued interest and penalties in connection with the default of the Convertible Notes. The Company had a working capital deficiency of $5,107,408 and $4,837,392 as of March 31, 2010, and December 31, 2009, respectively. Furthermore, as of July 12, 2008, the Company was in default on its Convertible Notes payments due July 12, 2008. The Notes provide that, at the option of the holder, an event of default shall make all sums of principal and interest then remaining unpaid and all other amounts payable immediately due and payable upon demand. As of March 31, 2010, the unpaid convertible notes payable balance is $2,792,175; unpaid accrued interest is $554,153; and unpaid accrued liquidated damages penalty and default penalty are $2,379,770. The Company is currently continuing to negotiate with investors and is seeking ways to resolve the default issue with all investors. "These factors raise substantial doubt concerning the Company's ability to continue as a going concern." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?658f Chongqing, China-based Franklin Towers Enterprises, Inc.. was incorporated on March 23, 2006, under the laws of the State of Nevada. The Company is focused on the production and sale of silk and silk products. The Company started its test production at the end of June 2007 and commenced operations from the third quarter of 2007. FRASER PAPERS: To Seek Court OK to Sell New Hampshire Paper Mill ---------------------------------------------------------------- Fraser Papers Inc. will seek court approval of the transaction to sell its paper mill in Gorham, New Hampshire. Approval will be sought from the Ontario Superior Court of Justice at a hearing scheduled for July 7, 2010 and from the United States Bankruptcy Court for the District of Delaware at a hearing scheduled for July 14, 2010. Fraser Papers and the purchaser have agreed to extend the closing date to August 31, 2010 as they continue to make positive progress toward finalizing terms of the transaction. The paper mill in Gorham, New Hampshire currently operates three paper machines and produced 80,000 tons of uncoated freesheet papers and 37,000 tons of towel products in 2009. In conjunction with the proposed sale of the of the Gorham mill, Fraser Papers announced that it has provided notice to the employees of the Gorham mill under the Worker Adjustment and Retraining Notification Act. In the event that the Company cannot complete the transaction before August 31, 2010, the Company is reserving its rights with respect to continuing operations at the Gorham mill. Fraser Papers remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act, with its stay of proceedings having been extended by the court to July 9, 2010. At the hearing scheduled for July 7, 2010, the Company expects to, among other things, request an extension of the stay of proceedings. About Fraser Papers Fraser Papers -- http://www.fraserpapers.com/-- is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The Company has operations in New Brunswick, Maine, New Hampshire and Quebec. On June 18, 2009, citing continued operating losses, weak markets for pulp and lumber, impending debt repayments and significant pension funding obligations, the Company and its subsidiaries filed for protection under the Companies Creditors Arrangement Act (Ont. Super. Ct. J. Ct. File No. CV-09-8241-00CL) in Toronto and Chapter 15 (Bankr. D. Del. Case No. 09-12123) of the U.S. Bankruptcy Code. Fraser is represented by Michael Barrack, Esq., Robert I. Thornton, Esq., and D.J. Miller, Esq., at ThorntonGroutFinnigan LLP, in Toronto, and Derek C. Abbott, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Del. With adequate financing to support continuing operations, Fraser says it is developing a restructuring plan to present to its creditors -- hopefully by Oct. 16, 2009 -- with the objective of emerging with a sustainable and profitable specialty papers business. FREDDIE MAC: Terminates Employment of Ex. VP Michael Perlman ------------------------------------------------------------ Michael Perlman was terminated from his position and responsibilities as Executive Vice President - Operations & Technology of Freddie Mac, effective immediately. Mr. Perlman will remain an employee of the company until August 2, 2010. Payment of termination benefits to Mr. Perlman is yet to be determined, and is subject to approval by the Federal Housing Finance Agency. About Freddie Mac Based in McLean, Virginia, Freddie Mac (NYSE: FRE) -- http://www.FreddieMac.com/-- was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. The Company's participation in the secondary mortgage market includes providing its credit guarantee for residential mortgages originated by mortgage lenders and investing in mortgage loans and mortgage- related securities. The Company earns management and guarantee fees for providing its guarantee and performing management activities (such as ongoing trustee services, administration of pass-through amounts, paying agent services, tax reporting and other required services) with respect to issued PCs and Structured Securities. Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and FHFA to continue operating its business. The Company received $6.1 billion and $30.8 billion in June 2009 and March 2009, respectively, pursuant to draw requests that FHFA submitted to Treasury on the Company's behalf to address the deficits in the Company's net worth as of March 31, 2009, and December 31, 2008, respectively. As a result of funding of the draw requests, the aggregate liquidation preference on the senior preferred stock owned by Treasury increased from $14.8 billion as of December 31, 2008, to $51.7 billion on December 31, 2009. FREDDIE MAC: Approves 2010 Incentive Scorecards ----------------------------------------------- Federal Housing Finance Agency approved Freddie Mac's 2010 Short- Term Incentive and Long-Term Incentive Scorecards, which establish: i) corporate performance objectives under the Company's 2010 short-term incentive program for vice presidents and non- officer employees and ii) performance objectives under the Company's 2010 long-term incentive program for vice presidents and non-officer employees. The STI and LTI programs noted above apply only to Freddie Mac employees at the level of vice president and below. However, under the terms of Freddie Mac's Executive Management Compensation Program, the funding levels that are approved under the STI and LTI programs are principal determinants, along with other relevant internal and external considerations, of the Deferred Base Salary and Target Incentive Opportunity components, respectively, of compensation for Covered Officers. Covered Officers include the chief executive officer, chief operating officer, chief financial officer, executive vice presidents and senior vice presidents. About Freddie Mac Based in McLean, Virginia, Freddie Mac (NYSE: FRE) -- http://www.FreddieMac.com/-- was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. The Company's participation in the secondary mortgage market includes providing its credit guarantee for residential mortgages originated by mortgage lenders and investing in mortgage loans and mortgage- related securities. The Company earns management and guarantee fees for providing its guarantee and performing management activities (such as ongoing trustee services, administration of pass-through amounts, paying agent services, tax reporting and other required services) with respect to issued PCs and Structured Securities. Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and FHFA to continue operating its business. The Company received $6.1 billion and $30.8 billion in June 2009 and March 2009, respectively, pursuant to draw requests that FHFA submitted to Treasury on the Company's behalf to address the deficits in the Company's net worth as of March 31, 2009, and December 31, 2008, respectively. As a result of funding of the draw requests, the aggregate liquidation preference on the senior preferred stock owned by Treasury increased from $14.8 billion as of December 31, 2008, to $51.7 billion on December 31, 2009. FREDDIE MAC: Files May 2010 Monthly Volume Summary -------------------------------------------------- Freddie Mac issued its May 2010 Monthly Volume Summary with the Securities and Exchange Commission. A full-text copy of the Monthly Volume Summary is available for free at: http://ResearchArchives.com/t/s?65a0 About Freddie Mac Based in McLean, Virginia, Freddie Mac (NYSE: FRE) -- http://www.FreddieMac.com/-- was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. The Company's participation in the secondary mortgage market includes providing its credit guarantee for residential mortgages originated by mortgage lenders and investing in mortgage loans and mortgage- related securities. The Company earns management and guarantee fees for providing its guarantee and performing management activities (such as ongoing trustee services, administration of pass-through amounts, paying agent services, tax reporting and other required services) with respect to issued PCs and Structured Securities. Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and FHFA to continue operating its business. The Company received $6.1 billion and $30.8 billion in June 2009 and March 2009, respectively, pursuant to draw requests that FHFA submitted to Treasury on the Company's behalf to address the deficits in the Company's net worth as of March 31, 2009, and December 31, 2008, respectively. As a result of funding of the draw requests, the aggregate liquidation preference on the senior preferred stock owned by Treasury increased from $14.8 billion as of December 31, 2008, to $51.7 billion on December 31, 2009. FREEPORT-MCMORAN COPPER: Moody's Reviews 'Ba1' Corp. Family Rating ------------------------------------------------------------------ Moody's Investors Service placed Freeport-McMoRan Copper & Gold's Ba1 corporate family and probability of default ratings under review for possible upgrade. At the same time, Moody's placed the Ba2 senior unsecured ratings of FCX under review for possible upgrade. In a related rating action, Moody's affirmed FCX's Baa1 senior secured bank credit facility ratings and the Baa2 ratings on Phelps Dodge's senior unsecured guaranteed notes. To the extent the security and guarantees for the bank facilities and Phelps Dodge notes falls away under any collateral fallaway provisions in existing documents, in the event FCX's ratings are upgraded, these ratings could be downgraded. The review reflects FCX's improved financial profile as recovery in copper markets has contributed to strengthened earnings and cash flow generation and is prompted by the reduced level of debt in the capital structure following various debt repayments made in 2010 to date. The review will focus on the debt protection and leverage metrics of the company under a scenario whereby the level of contribution from the company's Indonesian operations is not as dominant as is currently the case. The review will assess the ability of FCX's operations outside of Indonesia to contribute to metrics that would provide acceptable debt protection measures for an investment grade rating. Incorporated in the review will be an analysis of the guarantee and security structure of the debt instruments within the company and the level of secured or guaranteed debt that would be in the capital structure going forward. The review will also focus on the company's growth capital expenditure investments and the ability to support from internally generated sources, including existing cash, as well as the company's financial management philosophy as it relates to liquidity, the use of debt in the capital structure, and shareholder returns. On Review for Possible Upgrade: Issuer: Freeport-McMoRan Copper & Gold Inc. -- Probability of Default Rating, Placed on Review for Possible Upgrade, currently Ba1 -- Corporate Family Rating, Placed on Review for Possible Upgrade, currently Ba1 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Upgrade, currently Ba2 Outlook Actions: Issuer: Freeport-McMoRan Copper & Gold Inc. -- Outlook, Changed To Rating Under Review From Stable Moody's last rating action on FCX was February 19, 2008, when the company's ratings were upgraded (corporate family rating to Ba1 from Ba2). Headquartered in Phoenix, Arizona, FCX is the second largest global copper producer with significant production in gold and molybdenum. The company's operations are based in the U.S., Indonesia, Chile, Peru and Africa. FCX had revenue of $15 billion in 2009. FRONTIER DRILLING: Noble Expected to Repay Frontier ASA Debt ------------------------------------------------------------ Standard & Poor's Ratings Services' published press release on June 28, 2010, is being republished to clarify its expectation regarding Noble Corp.'s repayment of Frontier ASA's existing debt. A corrected version is: S&P 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 rate 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. It is S&P's expectation that Noble will repay Frontier ASA's existing 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. GARY R MCLEAN: Can Sell Sun Valley Condominium to Pendleton King ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Washington authorized Gary R. McLean to sell its real property located at 120 N. 2nd Ave., Unit 301, Ketchum, Idaho, commonly known as the Sun Valley Condominium, to Pendleton King for $1,800,000. The Debtor is also authorized to pay from the sale price: -- 3% real estate broker's commission; and -- $25,000 hold back from the sale proceeds to cover potential punch list items and litigation expenses pursuant to the provisions of the sale agreement. The remainder of the sale proceeds will be distributed from escrow as: 1. $56,000 will be distributed to Kathleen Ann McLean as reimbursement of reduced spousal maintenance; 2. $42,439 will be distributed to the Debtor, Mr. McLean, as claimed reimbursement of the Debtor's share of expenses related to maintenance and upkeep of the property; 3. 75% of the remaining sale proceeds will be distributed to Ms. McLean as her percentage share of the sale proceeds; 4. the remaining 25% of sale proceeds will be distributed to Mr. McLean as his percentage share of the sale proceeds; and 5. the balance of the $25,000 hold back remaining after notice of completion of the litigation will be distributed 75% to Ms. McLean and 25% to the Debtor. The Debtor is represented by: Kevin P. Hanchett, Esq. Jeffrey L. Smoot, Esq. Lasher Holzapfel Sperry & Ebberson, P.L.L.C. 601 Union Street, Suite 2600 Seattle, WA 98101-4000 Tel: (206) 624-1230 About Gary R. McLean 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. GENERAL GROWTH: To File Holdings' Reorganization Plan by July 9 --------------------------------------------------------------- General Growth Properties, Inc. expects to file its Chapter 11 Plan of Reorganization and accompanying disclosure statement on or around July 9, 2010. Concurrent with this announcement, GGP has filed a motion with the United States Bankruptcy Court for the Southern District of New York requesting an extension of its exclusive period in which to file the Chapter 11 Plan of Reorganization through October 18, 2010, and its exclusive period to solicit acceptances of any Plan of Reorganization through December 16, 2010. The current exclusivity periods are scheduled to expire on July 15, 2010, and September 15, 2010, respectively. While GGP expects to file its plan within the current exclusivity period, the requested extension is integral to GGP's strategy to maximize value upon emergence. The extension would allow GGP to continue to explore all financing emergence options available to it and to complement or replace existing financing commitments on an exclusive basis. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: In Talks With Lenders to Partner for Car Loans -------------------------------------------------------------- Giant carmaker General Motors Co. is negotiating with financial institutions in an effort to find a partner that will provide auto loans to its customers, the Wall Street Journal reported. After letting go of its control over General Motors GMAC LLC three years ago, GM has had difficulty providing loans to its consumers. GMAC is GM's finance arm that the automaker gave up to the U.S. for a $16.3 billion government funding. Without an in-house lender, GM is will have difficulty to recover the market share it once held, however, the automaker is setting aside for now the possibility of acquiring its own lending arm, people familiar with the situation told the Journal. GM wants to reconnect with GMAC, which has changed its name to Ally Financial Co., but the automaker wants to look for lenders who are willing to grant loans like subprime lending and leasing; an undertaking that GMAC hasn't been too willing to venture into, the Journal related. Sources told the Journal that this step reduces the possibility that GM will open its own lending arm, or regain control of GMAC's auto lending business, however, GMAC or Ally is not signifying interest about GM's plans. GM's dealers reported that the absence of an in-house lender will often force them to turn away customers because of a failure to tap financing. 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: U.S. Carmakers Leading Job Creation, Says AAPC -------------------------------------------------------------- American automakers -- Chrysler Group LLC, Ford Motor Company and General Motors Company -- outperformed import automakers in J.D. Power's 2010 Initial Quality Survey. GM, Ford and Chrysler's consistent focus on building the highest quality product is paying off. Over the last 10 years, the companies' initial quality has improved over 50%. "Our companies' quality performance has consistently improved throughout the last decade and this is one more piece of evidence that shows we make the world's best cars," American Automotive Policy Council President Stephen Collins said. Equally encouraging, the auto industry created over 29,000 jobs so far this year. Last month alone, the industry added nearly one- quarter of total private sector jobs created in the United States. "With auto production and jobs now ramping up, Chrysler, Ford and GM are a leading force in pulling the country out of the recession," AAPC President Collins said. The American Automotive Policy Council, Inc. (AAPC) -- http://www.americanautocouncil.org-- is a Washington, D.C. association that represents the common public policy interests of its member companies Chrysler Group LLC, Ford Motor Company and General Motors Company. 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: Buyer Demand Keeps Most U.S. Plants Open in Summer ------------------------------------------------------------------ Most General Motors U.S. plants will forego traditional summer shutdowns to help meet buyer demand for popular Chevrolet, Buick, GMC, and Cadillac cars, crossovers, and trucks. Nine of the 11 assembly plants will continue to operate during the traditional shut-down period from June 28 to July 9. Most of GM's U.S. stamping and powertrain plants will also work to support assembly operations. The decision is expected to generate up to 56,000 additional vehicles. "This move will help buyers waiting for high-demand products such as the Buick LaCrosse, Chevrolet Traverse, and GMC Acadia," said Mark Reuss, president of GM North America. "Our manufacturing teams are taking creative approaches to increase production and reduce the wait times for our dealers and customers." Historically, the summer shut-down was used by the automakers to complete the annual model changeover. Over the last 20 years, the two-week shut-down evolved, allowing the domestic auto industry to support maintenance operations and enabling employees to use their vacation weeks without interrupting overall productivity. New language in the UAW-GM national agreement allows the company to "flex" when down weeks will be taken. In some circumstances, it will be possible to designate those weeks as mandatory vacation time. In other circumstances, when no downtime is possible due to market demand, the plants can hire temporary employees to provide vacation coverage. The temporary employees receive training in safety and quality to ensure they are capable of supporting production at a high level. "We've added shifts to plants, run significant overtime, and optimized line speeds to get more products to our customers," said Diana Tremblay, GM vice president of Manufacturing and Labor. "Our UAW-GM workforce has contributed to our ability to make these changes while continuing to meet our business targets." * * * Assembly plants working through the traditional summer shut- down are Arlington, TX; Bowling Green, KY; Detroit Hamtramck, MI; Fairfax, KS; Flint, MI; Fort Wayne, IN; Lansing Delta Township, MI; Lansing Grand River, MI; and Wentzville, MO. 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: Hosts 1st Global Business Conference ---------------------------------------------------- The new General Motors on Tuesday hosted a group of approximately 200 members of the financial community and other stakeholders at its first annual Global Business Conference at GM's Technical Center in Warren, Michigan. The event was the first of its kind since the launch of the new company in July 2009. The conference featured an in-depth review of GM's global business, with updates by Chairman and CEO Ed Whitacre, Vice Chairman Steve Girsky, Vice Chairman and CFO, Chris Liddell, and GM's regional presidents. Vice Chairman of Global Product Operations Tom Stephens provided a review of GM's global product portfolio, and an early preview of some upcoming products, including the next generations of the popular Opel Insignia, Chevrolet Malibu, and Cadillac CTS. Mr. Whitacre kicked off the conference by sharing his perspective on how he sees the company today, the progress it has made, and the opportunities ahead for GM. "We're not reintroducing GM today, we're introducing a new GM, because we are a new and much different company than we were 12 months ago," Mr. Whitacre said. "We're creating a new GM - one that truly is different. We have a simplified focus on designing, building, and selling the world's best vehicles. We're producing first-rate cars and trucks that customers are buying around the world. We have a new management team that `gets it' and is executing well." Tim Lee, president of GM's International Operations; Jamie Ardila, president of GM South America; Nick Reilly, president of GM Europe and chairman of the management board of Opel/Vauxhall; Vice President and CFO of Opel/Vauxhall Europe, Mark James; and Mark Reuss, president of GM North America, gave a market-by-market assessment of the company's progress. By closely managing the business at the regional level, with specific focus on the trends in local markets, and by leveraging GM's global capability, the company is well positioned to take advantage of anticipated growth in the global auto market. A highlight of the day was an extensive ride-and-drive for the guests, which featured virtually all of GM's current U.S. models from its Chevrolet, Buick, GMC, and Cadillac brands, including the all-new Chevrolet Cruze and the Chevrolet Volt extended-range electric vehicle. Mr. Girsky shared his perspectives on how GM is operating differently today, and what global market challenges still lie ahead, including further market fragmentation and new vehicle market volatility, and outlined how GM is addressing these challenges and aligning the company to take full advantage of opportunities ahead. Mr. Liddell concluded the day by summarizing the importance of GM's global resources and financial strength in stabilizing and growing the business. He reinforced GM's commitment to communicating in an open and consistent manner, and to keeping the focus on the key factors that are important to the business and its stakeholders. "Today's event gave us a unique opportunity to highlight the fundamental changes we're making at GM. With global growth potential in both mature and emerging markets, a dramatically lower break-even level in North America, actions underway to restructure Europe, and a much stronger balance sheet, we are making the changes needed for long-term success," Mr. Liddell said. An audio replay and accompanying presentation charts are available on GM's Investor Relations Web site at: http://www.gm.com/corporate/investor_information/cal_events 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: Court OKs Sale of Wilmington Plant to Fisker ------------------------------------------------------------ Sharon Terlep at The Wall Street Journal reports that U.S. Bankruptcy Judge Robert E. Gerber in New York on Tuesday approved the sale of a former GM plant in Wilmington, Del., to Fisker Automotive for $20 million. Fisker, a start-up company based in Irvine, Calif., plans to assemble a plug-in hybrid electric vehicle in the plant. According to Ms. Terlep, the sale was orchestrated by Motors Liquidation Co., the "Old GM" charged with disposing of the assets GM left behind in its reorganization. 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: S&P Assigns 'BB+' Rating on $200 Mil. Loan ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its rating of 'B+' on Atlanta-based home health services provider Gentiva Health Services Inc. At the same time, S&P assigned a 'BB-' issue-level rating on the company's proposed $200 million and $600 million term loans that will mature in 2015 and 2016, respectively, and the $125 million revolving facility maturing in 2015. The recovery rating on these debt issues is '2', indicating S&P's expectation for substantial (70%-90%) recovery in the event of payment default. In addition, S&P assigned a 'B-' issue-level rating to the company's proposed $305 million senior unsecured notes that will mature in 2018. The recovery rating on the notes is '6', indicating S&P's expectation for negligible (0%-10%) recovery in the event of a payment default. Upon completion of the new debt transaction, S&P expects the existing debt to be repaid and the ratings withdrawn." The ratings on Gentiva continue to reflect its weak business risk profile as a result of the company's significant reliance on Medicare and its acquisitive growth strategy. Despite the company's position as a leading provider in a highly fragmented industry, ability to grow organically, and strong liquidity position, the rating also incorporates prospects for health reform-related rate cuts over the next few years and Gentiva's demonstrated interest in aggressively broadening its operating base by way of debt financing. The planned acquisition of hospice provider Odyssey HealthCare for approximately $1 billion would diversify Gentiva's business operations by reducing its existing 90% plus concentration in home health services to approximately 60%. The acquisition would also make Gentiva a leading provider of hospice services and add close to $700 million of annual revenues. However, its existing payor concentration with Medicare, which generates about 73% of the company's total revenues, would be magnified with Odyssey's dependence upon Medicare for over 90% of its revenues. This would increase Gentiva's exposure to the vagaries of potential Medicare regulatory and reimbursement changes to hospice services. However, it will lessen the intensity of the impact of future rate cuts affecting the home health sector by diversifying the type of Medicare payments received between hospice and home health. In particular, recent health reform legislation imposes an annual 1% market-basket reduction for the next three years, eliminates the 2010 benefit of changes in the outlier payment on the base rate for home health care providers beginning in 2011 and mandates significant change in the payment methodology beginning in 2014. The total effect on the home health industry over 10 years from these changes is estimated by the Congressional Budget Office to be near $40 billion. In addition, regulators recently increased their scrutiny of the way in which home health providers previously billed for services, which potentially could adversely affect future Medicare reimbursement. GIGOPTIX INC: Gets Okay from NYSE Amex to File Listing Application ------------------------------------------------------------------ GigOptix, Inc., has announced that it has received clearance from the NYSE Amex stock exchange to file an application for listing of its common stock. Approval of the application is subject to certain enumerated conditions, including among others the completion of the pending underwritten public offering and GigOptix' continued compliance with other listing requirements of the exchange, including specifically, maintenance of the common stock at or above the minimum price requirement of $3.00 per share. GigOptix has reserved the ticker symbol "GIG" for trading on the NYSE Amex. GigOptix common shares will continue to trade on the Over-the-Counter Bulletin Board under the symbol "GGOX" until all of the conditions to trading on the NYSE Amex have been satisfied and the shares begin officially trading on the NYSE Amex, after which GigOptix common shares will no longer be traded on the Over- the-Counter Bulletin Board. Commenting on the conditional listing approval, Chairman of the Board and Chief Executive Officer, Dr. Avi Katz stated, "We are pleased to reach this significant milestone as part of the Company's development and future growth initiatives. We believe that GigOptix listing on the NYSE Amex exchange will prove to be highly beneficial to our existing shareholders by increasing GigOptix' visibility, liquidity and suitability for a broader group of institutional investors." This approval is contingent upon GigOptix being in compliance with all applicable listing standards on the date that it begins trading on the NYSE Amex exchange and may be rescinded if GigOptix is not in compliance with such standards or if any of the standards outside of its control are not satisfied. About GigOptix, Inc. Based in Palo Alto, Calif., GigOptix, Inc. (OTC BB: GGOX) - http://www.GigOptix.com/- is a fabless manufacturer of high performance electronic and electro-optic semiconductor products that enable high speed telecommunications and data-communications networks. The Company offers a broad portfolio of high speed electronic devices including polymer electro-optic modulators, modulator drivers, laser drivers and TIAs for telecom, datacom, Infiniband and consumer optical systems, covering serial and parallel communication technologies from 1G to 100G. GigOptix now also offers the widest range of mixed-signal and RF ASIC solutions in the market including Standard Cell, Hybrid and Structured ASICs targeting the Consumer, Industrial, Defense & Avionics industries. * * * The Company has incurred significant losses since inception, attributable to its efforts to design and commercialize its products. For the three months ended April 4, 2010, and the year ended December 31, 2009, the Company incurred net losses of $2.2 million and $10.4 million, respectively, and cash outflows from operations of $2.0 million and $4.1 million, respectively. As of April 4, 2010, and December 31, 2009, the Company had an accumulated deficit of $71.2 million and $69.0 million, respectively. The Company's significant recent operating losses and negative cash flows, among other factors, raise substantial doubt as to its ability to continue as a going concern. GLEBE, INC: Files for Chapter 11 to Restructure Debt ---------------------------------------------------- Daleville, Virginia-based The Glebe, Inc., filed for Chapter 11 on June 28 in Roanoke (Bankr. W.D. Va. Case No. 10-71553). Rex Bowman at The Roanoke Times reports that Glebe attributed its financial trouble to construction delays, the recession and a weak housing market. The Company, according to the report, said it has received a financing commitment to help it make a fresh start. Glebe Inc. is a retirement community with 196 residents. The Company listed $57 million in assets and $80 million in liabilities. GLEBE, INC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: The Glebe, Inc. 200 The Glebe Blvd. Daleville, VA 24083 Bankruptcy Case No.: 10-71553 Chapter 11 Petition Date: June 28, 2010 Court: United States Bankruptcy Court Western District of Virginia (Roanoke) Judge: Ross W. Krumm Debtor's Counsel: Michael E. Hastings, Esq. Leclair Ryan, A Professional Corporation 1800 Wachovia Tower Drawer 1200 Roanoke, VA 24006 Tel: (540) 777-3065 Fax: (540) 510-3050 E-mail: michael.hastings@leclairryan.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Randall Robinson, company's president and chief executive officer. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lakewood Manor Intercompany $3,600,859 Retirement Community, Payable Inc. 1900 Lauderdale Drive Richmond, VA 23238 Virginia Baptist Homes Intercompany $1,613,949 Foundation Payable 2828 Emerywood Parkway Richmond, VA 23294-3718 Lorna Baker Refundable Entrance $389,589 Attn: Tammy Yarter Fee & Life Care P.O. Box 2867 Obligation Roanoke, VA 24001-2867 Leon and Jane Jennings Refundable Entrance $344,627 200 The Glebe Blvd. Fee & Life Care Apt.#3000 Obligation Daleville, VA 24083 Curtis and Carolyn Refundable Entrance $326,767 Humphris Fee & Life Care 195 Fincastle Court Obligation Daleville, VA 24083 Clyde and Karen Carter Refundable Entrance $276,981 Attn: Lynanne Newman Fee & Life Care P.O. Box 5228 Obligation Martinsville, VA 24115 M. Caldwell and Jane Refundable Entrance $269,129 Butler Fee & Life Care 200 The Glebe Blvd. Obligation Apt.#1024 Daleville, VA 24083 Joy McNabb Refundable Entrance $255,323 205 Fincastle Court Fee & Life Care Daleville, VA 24083 Obligation Robert and Dora Refundable Entrance $234,607 Harshbarger Fee & Life Care 200 The Glebe Blvd. Obligation Apt.#3036 Daleville, VA 24083 Vernon and Jane Daniel Refundable Entrance $225,493 200 The Glebe Blvd. Fee & Life Care Apt.#3028 Obligation Daleville, VA 24083 Richard and Lu Note Payable $210,054 Shirley Coar 42727 Afton Lane Roanoke, VA 24012 Thomas and Carolyn Refundable Entrance $204,729 Harrison Fee & Life Care 85 Fincastle Court Obligation Daleville, VA 24083 Malcolm and Lorra Refundable Entrance $200,749 Doolittle Fee & Life Care 609 Dunberry Drive Obligation Arnold, MD 21012 Max and Nancy Bertholf Refundable Entrance $199,720 200 The Glebe Blvd. Fee & Life Care Apt/#3010 Obligation Daleville, VA 24083 Daniel and Wilma Todd Refundable Entrance $193,565 Fee & Life Care Obligation Charles Felts Refundable Entrance $187,882 Fee & Life Care Obligation Carole Edwards Life Care Obligation $181,992 Cecil and Marlene Short Life Care Obligation $181,622 Joseph and Bonita Lucas Refundable Entrance $187,596 Fee & Life Care Obligation U.S. Bank National Deficiency Unknown Association GLENN MANIGAULT: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Glenn L. Manigault, Jr. Angela D. Manigault aka Angela D. Simpson-Manigault Angela D. Simpson 8 Woodbine Drive Highland Mills, NY 10930 Bankruptcy Case No.: 10-36936 Chapter 11 Petition Date: June 26, 2010 Court: U.S. Bankruptcy Court Southern District of New York (Poughkeepsie) Judge: Cecelia G. Morris Debtor's Counsel: Anne J. Penachio, Esq. Penachio Malara LLP 235 Main Street, Sixth Floor White Plains, NY 10601 Tel: (914) 946-2889 Fax: (914) 946-2882 E-mail: apenachio@pmlawllp.com penachio.anne@gmail.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by the Joint Debtors. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ American Home Mtg Srv Single Family $5,625,972 4600 Regent Boulevard Home Irving, TX 75063 American Home Mtg Srv Single Family $2,701,261 4600 Regent Boulevard Home Irving, TX 75063 Washington Mutual Single Family $797,434 Mortgage/ Chase Home Attention: Bankruptcy Department JAXA 2035 7255 Bay Meadows Way Jacksonville, FL 32256 Washington Mutual Single Family $508,504 Mortgage/ Chase Home Attention: Bankruptcy Department JAXA 2035 7255 Bay Meadows Way Jacksonville, FL 32256 Town of Fairfield Real Property $80,000 Tax Collector Tax Bank Of America Credit Card $47,984 Gmac Automotive Bank 2010 Chevey $47,977 Avalanche Chase Credit Card $34,793 Amex Credit Card $6,627 All American Landcape -- $6,000 Hendricks Furnature Group Furnature $3,500 Hsbc Bank Check Credit $1,690 Or Line of Credit Chubb and Son -- $1,187 Td Bank N.a. Check Credit $934 Or Line of Credit American Express Credit Card $851 Td Bank N.a. Check Credit $723 Or Line of Credit Greeenleaf Services -- $557 American Express Credit Card $504 Eastern Account System Collection $445 Attorney Norwalk Radiology Consultant United Illuminating Agriculture $435 GLOUCESTER ENGINEERING: Case Converted to Voluntary Chapter 11 -------------------------------------------------------------- The Hon. Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts to convert Gloucester Engineering Co., Inc.'s involuntary Chapter 7 proceeding to Chapter 11. According to the Debtor, two of the three original petitioning creditors subsequently withdrew their petitions. On March 23, 2010, Plastifar, S.A., Ranor, Inc., and HUB Technologies, Inc., filed an involuntary Chapter 7 bankruptcy petition against the Debtor. The Debtor did not answer the involuntary petition. On April 23, 2010, Plastifar and HUB Technologies filed a motion to dismiss the bankruptcy case, which motion was denied by this Court by order dated June 3, 2010. The Court also entered on June 3 an order establishing June 18, 2010, as the deadline for additional creditors to join as petition creditors. On June 18, 2010, Insco Corporation, CENSCO, LLC, Minuteman Controls Co., Inc., and Bacon Felt Co., Inc., joined or moved to join Ranor, Inc.'s involuntary petition. Conversion of the Chapter 7 case to Chapter 11 allows the Debtor to implement a restructuring which will maximize the value of its estate for the benefit of its creditors. Since its inception in 1961, Gloucester Engineering Company has been a global leader in advancing quality and production limits in the plastics extrusion and converting market. GEC offers a range of innovative system and component solutions, for both new lines and retrofits, that provide customers a competitive edge in applications that include bag making, foam and sheet extrusion, blown and cast film extrusion, and extrusion coating. GEC manufactures its equipment from its headquarters in Gloucester, MA, USA and through its joint-venture company in Damman, India, Kabra Gloucester Engineering. GLOUCESTER ENGINEERING: Sec. 341(a) Meeting Scheduled for July 27 ----------------------------------------------------------------- The U.S. Trustee for Region 1 will convene a meeting of Gloucester Engineering Co., Inc.'s creditors on July 27, 2010, at 1:15 p.m. The meeting will be held at Suite 1055, U.S. Trustee Office, J.W. McCormack Post Office & Court House, 5 Post Office Sq., 10th Fl, Suite 1000, Boston, MA 02109. 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. Since its inception in 1961, Gloucester Engineering Company has been a global leader in advancing quality and production limits in the plastics extrusion and converting market. GEC offers a range of innovative system and component solutions, for both new lines and retrofits, that provide customers a competitive edge in applications that include bag making, foam and sheet extrusion, blown and cast film extrusion, and extrusion coating. GEC manufactures its equipment from its headquarters in Gloucester, MA, USA and through its joint-venture company in Damman, India, Kabra Gloucester Engineering. Gloucester Engineering's Chapter 7 case -- filed on March 23, 2010 -- was converted to Chapter 11 bankruptcy protection on June 25, 2010 (Bankr. D. Mass. Case No. 10-12967). GREAT ATLANTIC: Files 2009 Annual Report for Savings Plan --------------------------------------------------------- The Great Atlantic & Pacific Tea Company, Inc., filed with the Securities and Exchange Commission an annual report on Form 11-K for the Great Atlantic & Pacific Tea Company, Inc. Savings Plan for the year ended December 31, 2009. At December 31, 2009, Net assets available for benefits total $481,856,819. A full-text copy of the Form 11-K is available at no charge at http://ResearchArchives.com/t/s?65a1 About A&P Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP), founded in 1859, is one of the nation's first supermarket chains. The Company operates 429 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a- Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. At February 27, 2010, the Company had total assets of $2,827,217,000 against total liabilities of $3,223,663,000 and Series A redeemable preferred stock of $132,757,000, resulting in stockholders' deficit of $529,203,000. GREAT CANADIAN: Moody's Affirms 'Ba3' Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service affirmed all ratings of Great Canadian Gaming Corporation, including its Ba3 Corporate Family Rating and Probability of Default Rating, Ba2 rating of the senior secured credit facilities and B2 rating of the senior subordinated notes due 2015. The rating outlook is stable. "The rating affirmation reflects that Great Canadian's performance remains in line with Moody's expectation despite the continued topline pressure due to weakened gaming demand in Canada," commented Moody's analyst John Zhao. The ratings continue to consider the company's leading market position, eligibility for capital spending reimbursement programs in British Columbia (B.C.) and Nova Scotia, and substantial barriers to entry in the regulated Canadian gaming markets. The rating also incorporates Great Canadian's small size and limited diversification: over 50% of its consolidated cash flow currently comes from two casinos in B.C. While the company has not been immune to the economic downturn, the revenue decline was relatively modest (5% in 2009)in part due to modest addition of gaming facilities. More importantly, the company timely responded by cutting costs effectively and deferring capital spending to have more than offset the impact from weaker revenue, resulting in expanded EBITDA and notable debt reduction through the repayment of revolver borrowings. As of March 31, 2010, Great Canadian's debt/EBITDA of 3.2x and (EBITDA-Capex)/Interest of 2.2x on the last twelve month basis, solidly positioned the company at Ba3 rating category. While the near-term topline pressure remains, Moody's stable outlook anticipates EBITDA to remain resistant and credit measures to stay consistent with the rating category. Further, the stable outlook assumes that the company will likely generate healthy free cash flow in the next 12-18 months as the development capital spending moderates and financial policy with respect to acquisition and share buyback would be managed prudently per Moody's expectation. These ratings were affirmed: * Corporate Family Rating -- Ba3 * Probability of Default Rating -- Ba3 * C$200 million senior secured revolving credit facility due 2012 -- Ba2 (LGD2, 28%) * US$ 170 million senior secured term loan due 2014 -- Ba2 (LGD2, 28%) * US$170 million senior subordinated notes due 2015 -- B2 (LGD5, 83%) * Rating outlook: stable Moody's last rating action occurred on January 19, 2007, when the Ba3 CFR was assigned. Great Canadian Gaming Corporation, a TSX-listed company headquartered in Richmond, British Columbia, is a multi- jurisdictional gaming and entertainment operator in Canada with operations in British Columbia, Ontario and Nova Scotia. The company also operates four card rooms in the State of Washington. Ross McLeod, Chairman and Chief Executive Officer, is the largest single shareholder and controls the voting rights of approximately 29% of the outstanding shares. Revenue for the last twelve months ended March 31, 2010, was approximately C$379 million. GREEKTOWN HOLDINGS: Mackenzie Bills $0.89MM for March-May Work -------------------------------------------------------------- Professionals retained in connection with Greektown Casinos' bankruptcy cases filed applications for payment of fees and reimbursement of expenses for these periods: Professional Applicable Period Fees Expenses ------------ ----------------- -------- -------- Conway Mackenzie, 03/01/10-05/31/10 $891,454 $4,696 Inc. Ernst & Young LLP 03/01/10-05/31/10 792,516 5,061 Schafer and Weiner 03/01/10-05/31/10 264,278 17,015 PLLC Clark Hill PLC 03/01/10-05/31/10 40,614 204 XRoads Solutions 03/01/10-05/31/10 28,712 490 Group LLC Jackier Gould PC 03/01/10-05/31/10 16,157 751 Honigman Miller 04/08/10-06/08/10 470,574 9,668 Schwartz and Cohn LLP Osipov Bigelman 05/27/10-05/31/10 3,156 0 P.C. * * * The Court has approved XRoads Solutions' interim fee application for the December 2009 to February 2010 period. 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) GRUBB & ELLIS: Posts $24.1 Million Net Loss for Q1 2010 ------------------------------------------------------- Grubb & Ellis Company filed its quarterly report on Form 10-Q, reporting a net loss of $24.1 million on $132.5 million of revenue for the three months ended March 31, 2010, compared with a net loss of $43.3 million on $122.2 million of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $346.0 million in assets, $263.4 million of liabilities, and $90.1 million of 12% cumulative participating perpetual convertible preferred stock, for a stockholders' deficit of $7.5 million. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6591 Grubb & Ellis Company (NYSE: GBE) -- http://www.grubb-ellis.com/- - is one of the largest commercial real estate services and investment companies in the world. The Company is headquartered in Santa Ana, California. GRUBB & ELLIS: Sells Add'l $1.5MM of Its 7.95% Convertible Notes ---------------------------------------------------------------- Grubb & Ellis Company has sold an additional $1.5 million of its 7.95% unsecured convertible notes due in 2015 pursuant to the exercise of the over-allotment option granted to the initial purchaser in connection with the Company's private note offering of $30 million that closed on May 7, 2010. The Company intends to use the net proceeds of approximately $29.4 million from the sale of the aggregate of $31.5 million of notes to fund growth initiatives, short-term working capital and general corporate purposes. The notes are convertible into the Company's common stock at an initial conversion rate of 445.583 shares per $1,000 principal amount of notes, subject to the Indenture governing the notes dated as of May 7, 2010. All of the notes in the private offering were sold to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. The notes and the underlying common stock issuable upon conversion have not been registered under the Securities Act or applicable state securities laws. In connection with the private note offering, the Company has filed with the Securities and Exchange Commission a shelf registration statement on Form S-3 registering, on behalf of the purchasers of the notes, the resale of the notes and the shares of common stock issuable upon conversion of the notes. A full-text copy of the Form S-3 is available at no charge at: http://researcharchives.com/t/s?6590 Grubb & Ellis Company (NYSE: GBE) - http://www.grubb-ellis.com/- is one of the largest commercial real estate services and investment companies in the world. The Company is headquartered in Santa Ana, California. * * * At March 31, 2010, the Company had $346.0 million in assets, $263.4 million of liabilities, and $90.1 million of 12% cumulative participating perpetual convertible preferred stock, for a stockholders' deficit of $7.5 million. HCA INC: Hercules OKs Increase in Authorized Shares --------------------------------------------------- Hercules Holding II LLC, the holder of 91,845,692 shares, or approximately 97%, of the issued and outstanding shares of capital stock of HCA Inc., executed a written consent approving: 1) the Company's Amended and Restated Certificate of Incorporation, 2) an increase in the number of authorized shares of the Company's common stock from 125,000,000 to 1,800,000,000, as reflected in the Company's Amended and Restated Certificate of Incorporation and 3) the adoption of the 2006 Stock Incentive Plan for Key Employees of HCA Inc. and its Affiliates, as Amended and Restated. The consent will become effective on or about July 12, 2010. The written consent contemplates that the Amended and Restated Certificate of Incorporation and the Stock Incentive Plan will become effective immediately prior to and subject to the effectiveness of the registration statement relating to the anticipated initial public offering of the Company's common stock. A notice of the foregoing stockholder action has been sent to the holders of record of the Company's issued and outstanding capital stock as of the close of business on the record date, June 16, 2010. About HCA Inc. Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company with 162 hospitals and 106 freestanding surgery centers (including eight hospitals and eight freestanding surgery centers that are accounted for using the equity method) as of March 31, 2010. For the twelve months ended March 31, 2010, the company recognized revenue in excess of $30 billion. According to the Troubled Company Reporter on May 11, 2010, Standard & Poor's placed its 'B+' corporate credit rating on hospital giant HCA Inc. and S&P's ratings on its secured and unsecured debt on CreditWatch with positive implications. "The speculative-grade rating on HCA continues to reflect S&P's view that the largest U.S. owner and operator of acute health care facilities is particularly sensitive to reduced capacity utilization and pricing," said Standard & Poor's credit analyst David Peknay, "by virtue of the significant debt leverage assumed in its November 2006 leveraged buyout." Moody's Investors Service placed the ratings of HCA, Inc., including the B2 Corporate Family and Probability of Default Ratings, under review for possible upgrade. This rating action follows the announcement that the company has filed a Form S-1 in contemplation of an initial public offering. HELIX WIND: Reports Earnings of $18.3 Million for Q1 2010 --------------------------------------------------------- Helix Wind, Corp., filed its quarterly report on Form 10-Q, reporting net income of $18,291,327 on $5,637 of revenue for the three months ended March 31, 2010, compared with a net loss of $29,686,766 on $401,377 of revenue for the same period of 2009. The Company had other income (expenses) for the three months ended March 31, 2010, and 2009, of $18,992,414 and $(19,759,171) respectively. The increase primarily resulted from decrease in interest expense recorded for the convertible and non-convertible notes of approximately $505,260, decrease in loss from debt extinguishment of approximately $12,038,781, decrease in the change in fair value of derivative liability of approximately $28,361,087 offset by the loss recorded on the termination of the Abundant Renewable Energy acquisition of approximately $2,158,591. The Company's balance sheet at March 31, 2010, showed $1,285,843 in assets and $7,280,656 of liabilities, for a stockholders' deficit of $5,994,813. The Company has a working capital deficit of $1,921,404 excluding the derivative liability of $4,518,519, an accumulated deficit of approximately $37,617,958 at March 31, 2010, recurring losses from operations and negative cash flow from operating activities of $415,097 for the three months ended March 31, 2010. "These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern." During 2009 and the first quarter of 2010, the Company raised funds through the issuance of convertible notes payable to investors and through a private placement of the Company's securities to investors to provide additional working capital. The Company plans to obtain additional financing through the sale of debt or equity securities. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?658d Helix Wind is a small wind solutions company focused on the renewable alternative energy market. Helix Wind's headquarters are located in San Diego, California. HOST HOTELS: Moody's Affirms 'Ba1' Senior Unsecured Debt Rating --------------------------------------------------------------- Moody's Investors Service affirmed Host Hotels & Resorts' Ba1 senior unsecured debt rating and revised the outlook to stable from negative. The stable outlook reflects the nascent lodging recovery and Moody's expectation that Host Hotels' RevPAR trends will continue to improve throughout 2010. Host Hotels has demonstrated its access to the capital markets by raising approximately $1.7 billion in debt and equity capital since the beginning of 2009. The REIT has made material progress in shoring up its balance sheet in the face of substantial earnings declines as Host Hotels repaid or repurchased approximately $1.4 billion in debt over the same period. Book leverage (debt plus preferred as a percentage of gross assets) decreased to 33.1% at 1Q10 from 37.2% at 1Q09. The REIT's net debt to recurring EBITDA was 4.9X for the trailing 12 months ending 1Q10, higher than 4.0X TTM1Q09, but in line with Moody's expectation of the volatility of earnings associated with its business. Moody's expects this metric to stabilize in 2010. The Ba1 senior unsecured debt rating reflects the REIT's strong asset quality, ample liquidity, a large unencumbered asset pool and moderate leverage (4.9X at 1Q10, defined as net debt to TTM EBITDA). These positive aspects are offset by the cyclicality and high fixed costs associated with the lodging industry, as well as the resulting cash flow and profit volatility. Moody's indicated that an upgrade would be predicated upon sustainable fixed charge coverage in excess of 2.5X (inclusive of recurring capex), net debt to TTM EBITDA at or below 4.0X, and a reduction in top operator concentration. The ratings would be downgraded should fixed charge coverage slip below 1.5X, net debt to TTM EBITDA exceed 6.0X on a sustained basis, or debt covenant cushion deteriorate materially. These ratings were affirmed with a stable outlook: * Host Hotels and Resorts, Inc. -- senior unsecured debt at Ba1, with these rated bonds being obligations of Host Hotels & Resorts, L.P.; industrial revenue bonds at Ba1, with these bonds being obligations of Host Hotels & Resorts, L.P.; preferred stock at Ba2. * Host Hotels & Resorts, L.P. -- senior unsecured debt at Ba1. Moody's last rating action with respect to Host Hotels & Resorts, Inc. was on August 12, 2009, when Moody's affirmed the ratings of Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. (senior debt at Ba1), with a negative outlook. Host Hotels and Resorts, Inc., is a REIT headquartered in Bethesda, Maryland, USA, that owns upscale and luxury full-service hotels and resorts operated primarily under premium brands, such as Marriott, Starwood, Ritz-Carlton and Hyatt. The REIT, the largest in the lodging REIT sector, owns or holds controlling interest in approximately 120 lodging properties. HUGHES COMMUNICATIONS: S&P Affirms 'B' Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Germantown, Md.-based Hughes Communications Inc. to positive from stable. Ratings on the company, including the 'B' corporate credit rating, were affirmed. "The outlook change is due to strong, double-digit EBITDA growth, which has resulted in adjusted leverage improving to 4.7x (from 5.4x as of the June 2009 quarter), with S&P's expectations for further improvement to about 4x by the end of 2010," said Standard & Poor's credit analyst Naveen Sarma. Since SPACEWAY-3 was placed into service in 2008, Hughes' EBITDA has grown by 45% and, more importantly, EBITDA margins have improved by over 500 basis points. This improvement resulted from a combination of new subscriber growth in the consumer and small business segment and operating leverage from using its own satellite versus leasing transponders from third-party satellite operators. The ratings on Hughes, a satellite network services company, reflect an aggressive financial profile; expectations for negative free cash flow over the intermediate term because of significant capital expenditure requirements for the construction of its new Jupiter satellite; and uncertain long-term penetration levels for the company's consumer and small and midsize business broadband service. This consumer and SMB broadband service provides data speeds that, on average, are slower than most cable high speed data services, which could limit growth as those competitors expand their service coverage. Longer term, as subscriber growth slows, Hughes could also see significant competitive pressure from fellow satellite broadband operator, ViaSat Inc. through its WildBlue service. Tempering factors include Hughes' leading position in the very small aperture terminal industry and a degree of revenue stability with sizable revenue backlog from three- to five-year contracts with large enterprise customers. INDEPENDENCE TAX II: March 31 Balance Sheet Upside-Down by $44.3MM ------------------------------------------------------------------ Independence Tax Credit Plus L.P. II filed its annual report on Form 10-K, reporting a net loss of $23.7 million on $10.9 million of revenue for the year ended March 31, 2010, compared with a net loss of $5.3 million on $10.4 million of revenue for the same period of 2009. The Partnership's balance sheet at March 31, 2010, showed $39.1 million in assets and $83.4 million of liabilities, for a partners' deficit of $44.3 million. The consolidated financial statements include the financial statements of two subsidiary partnerships with significant uncertainties. The financial statements of these subsidiary partnerships were prepared assuming that they will continue as going concerns. These subsidiary partnership's net losses aggregated $466,043 (2009 Fiscal Year) and $841,207 (2008 Fiscal Year), and their assets aggregated $464,755 and $4,748,430 at March 31, 2010 and 2009, respectively. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?6598 Headquartered in New York, Independence Tax Credit Plus L.P. II is a limited partnership which was formed under the laws of the State of Delaware on February 11, 1992. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest as a limited partner in other partnerships owning 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. As of March 31, 2010, the Partnership has sold its limited partnership interests in two Local Partnerships. ISLE OF CAPRI: Equity Offering Won't Affect Moody's 'B2' Rating --------------------------------------------------------------- Moody's Investors Service said that Isle of Capri's planned equity offering will not have an immediate impact on the company's ratings. Isle has a B2 Corporate Family Rating and negative rating outlook. The last rating action for Isle was on February 19, 2010, when Moody's commented that the company's ratings were unaffected by the amendment to its bank loan. Isle owns and operates fifteen casino gaming facilities in the U.S. The company generates consolidated annual net revenues of about $1.0 billion. HARBOUR EAST: 7935 NBV Wants Reorganization Case Dismissed ---------------------------------------------------------- 7935 NBV LLC, a secured creditor, asks the U.S. Bankruptcy Court for the Southern District of Florida to dismiss the Chapter 11 case of Harbour East Development, Ltd., or, in the alternative, grant NBV relief from the automatic stay. NBV explains that the Debtor filed its petition in bad faith, on the eve of a state court hearing to appoint a receiver for the property, solely to delay and frustrate NBV's legitimate efforts in the underlying state court foreclosure action. North Bay Villae, Florida-based Harbour East Development, Ltd., filed for Chapter 11 bankruptcy protection on April 22, 2010 (Bankr. S.D. Fla. Case No. 10-20733). Michael L Schuster, Esq., who has an office in Miami, Florida, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. LEHMAN BROTHERS: Wins Nod to Buy 2008-09 D&O Policy Tail Extension ------------------------------------------------------------------ Lehman Brothers Holdings Inc. and its affiliated debtors received court approval to purchase a one-year tail extension on their 2008-2009 directors and officers insurance policy for $11.9 million. If approved by the Court, the period during which claims may be asserted against the 2008-2009 D&O Policy would be extended from May 16, 2010 to May 16, 2011. The Debtors purchased the 2008-2009 D&O Policy to cover claims for "wrongful acts" against their directors, officers and employees. The policy, together with a previously purchased extension, provides coverage in the sum of $250 million for new claims asserted during the policy period May 16, 2008 to May 16, 2010. Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York, says that there has been much analysis and discussion regarding potential claims that may be covered by the 2008-2009 D&O Policy since the filing of the examiner's report. "Unless the policy period is extended, if and when such claims are asserted, the 2008-2009 D&O Policy proceeds will not be available to satisfy any judgments or settlements that may become payable to the Debtors' estates," Mr. Krasnow says in court papers. Less than $200,000 of proceeds has been paid out of that policy although some claims have been asserted against the 2008-2009 D&O Policy, according to Mr. Krasnow. "The Debtors seek authorization to purchase the tail extension to preserve the opportunity to recover the proceeds of the 2008-2009 D&O Policy for any claims that may be covered by the policy," he says. He adds that the tail extension must be purchased by June 25, 2010, to prevent a lapse of the 2008-2009 D&O Policy. 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: Wins Nod to Invest $255MM in 237 Park Ave. Tower ----------------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors received approval from Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York to invest up to $255 million in a 21-storey building at 237 Park Avenue in New York. The $255 million will be used to buy a portion of Broadway Partners' $1.23 billion loan that was sold as a note to PRII 237 Park LLC. Broadway availed of the loan from LBHI to finance its acquisition of the building in 2007. LBHI believed that Broadway Partners was going to default on the note and began talks with PRII 237 on a possible restructuring in August 2009. Since then, PRII 237 has started marketing the note. LBHI expects an expedited sale after the June 18, 2010 deadline for potential buyers to submit their bids for the note. Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in Houston, Texas, says the new investment "represents the best means" of protecting LBHI's current investment in the property of about $437 million, which could potentially be wiped out if a party other than LBHI acquires and pursues a foreclosure of the note. "Acquisition of the [note] at an attractive per square foot basis could yield significant recoveries to the estate," Mr. Perez says in court papers. * * * The Court approved a revised proposed order the Debtors submitted prior to the hearing on the Motion. The revised proposed order adds these languages: (a) to the extent it is ultimately determined that a Debtor or non-debtor affiliate, other than Lehman Brothers Holdings, Inc., is the beneficial owner of the notes issued by SASCO C2-2008, that entity will be responsible for the purchase price, if any, of the B Note; and (b) nothing contained in the Motion will be deemed to be a waiver or the relinquishment of any rights, claims, interests, obligations, benefits, or remedies of LBHI, Lehman Commercial Paper Inc., or any of the Debtors or their non-debtor affiliates except as otherwise expressly provided in the Motion, that any of the Debtors or non debtor affiliates may have or choose to assert on behalf of their estates under any provision of the Bankruptcy Code or any applicable non-bankruptcy law, including against each other or third parties. 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: Wins Approval to Send Contracts to Aurora ---------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors received approval of the U.S. Bankruptcy Court for the Southern District of New York to assume and assign contracts to Aurora Bank FSB. The Debtors say the contracts are not needed for the administration of their estates since they do not relate to their business operations. Aurora Bank agreed to pay so-called "cure amounts," if any, as part of the assumption and assignment of the contracts. A list of the contracts is available without charge at http://bankrupt.com/misc/LBHI_AssignedContractsAurora.pdf The contracts were previously designated for assumption and assignment to Barclays Capital Inc. as part of the sale of the Debtors' North American broker-dealer business. The Debtors, however, did not push through with the assumption and assignment of the contracts after determining that they are not related to the assets that Barclays purchased. 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: Receives Consent to Transfer $262MM to Rosslyn --------------------------------------------------------------- Lehman Brothers Holdings Inc. won court approval to direct Lehman Commercial Paper Inc. to transfer about $262.5 million to Rosslyn LB Syndication Partner LLC. LBHI intends to use the fund to pay Rosslyn LB's portion of the capital call that will be issued by a joint venture in order to get funds for repayment of mortgage loans that are set to mature next month. The mortgage loans encumber properties in which LBHI and LCPI hold stake. The fund may also be used to pay the share of the capital call of Rosslyn LB's partners in the joint venture, which may not have enough funds to pay their shares. Some special purpose securitization vehicles, including Restructured Asset Securities with Enhanced Returns Series 2007-A Trust and 2007-7-MM Trust, assert rights on the fund which is currently held by LPCI. The Official Committee of Unsecured Creditors filed a statement with respect to Lehman Brothers Holdings Inc. and Lehman Commercial Paper Inc.'s Motion to Transfer Funds to Rosslyn LB Syndication Partner LLC. The document is not accessible in the Court's public dockets. Prior to the entry of the Order, the Debtors filed a second supplement to their motion to transfer certain funds to Rosslyn. Since the filing of the request, the Debtors tell the Court that they have had ongoing discussions with the other partners, and based on these discussions believe that the other partners will meet certain of their obligations under the Capital Call. Hence, the Debtors believe that the maximum amount of any potential partner loan with respect to the Capital Call will be less than $20 million. In another filing, the Debtors notify the Court and parties-in- interest of the filing of the revised proposed order on their Motion to Transfer. To recall, LBHI sought the Court's authority to transfer about $262.5 million to repay mortgage loans encumbering property in which the company and LCPI hold stake. The mortgage loans are set to mature in July 2010. The revised order reflects the terms of any potential partner loan under the agreements. Under the order, LBHI is authorized and empowered, but not directed, to execute, deliver, implement, and perform any and all obligations, and to take corporate and other actions that may be necessary or appropriate to direct or cause LCPI to transfer to Rosslyn LB a portion of the RACERS Funds, if necessary, to pay the Rosslyn JV's other partners' share of the Capital Call, as a partner loan, in accordance with the provisions of the agreement governing the Rosslyn JV, which include: -- Interest Rate: 15% per annum; -- Collateral: the other partners' partnership interests; and -- Priority: first in, first out. All funds otherwise distributable to the applicable other partners will be paid toward the balance of the partner loan, until the loan, plus all accrued and unpaid interest, is repaid in full. A copy of the revised order can be obtained for free at: http://bankrupt.com/misc/LBHI_Rosslyn_PropOrder_060410.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: LCPI Settlement With State Street Approved ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved an agreement between Lehman Paper Commercial Inc. and State Street Bank and Trust Company. LCPI entered into the agreement to settle State Street's lawsuit against the company. The lawsuit seeks declaration concerning the bank's rights under a May 1, 2007 master repurchase agreement to ownership of a $31.2 million loan related to a property in New York City. Prior to the entry of the order, the Debtors submitted to the Court a revised form of the Settlement Agreement. Clean and blacklined copy of the revised agreement is available for free at http://bankrupt.com/misc/LBHI_StateStBank_Pact_06092010.pdf Under the settlement agreement, State Street Bank agreed for a dismissal of the lawsuit in exchange for payment from LCPI, which represents 50% of all payments of interest, charges, proceeds of any so-called "equity kickers" or participations in proceeds of the sale of the collateral securing the loan or the sale of the property. In connection with the settlement, LBHI and State Street Bank will execute a participation agreement, which provides for the terms and conditions of their respective ownership interests in the loan. The agreement requires LBHI to assign to State Street an undivided 50% participation interest in the loan effective as of September 17, 2008. Pursuant to the participation agreement, LBHI's and State Street Bank's interests in the loan will be pari passu and of equal priority with each other in proportion to their respective percentage interests in the loan. 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: Submits Term Sheet for Archstone Credit Facility ----------------------------------------------------------------- To recall, Bankruptcy Judge James Peck has allowed Lehman Brothers Holdings Inc. to enter into a $5.2 billion restructuring deal for struggling apartment investment firm Archstone-Smith Trust, in which Lehman acquired a stake through a 2007 leveraged buyout, according to Bankruptcy Law360. The Debtors recently submitted submit the "Term Sheet" and note that the parties continue to negotiate a restructuring and, therefore, the terms set in the Term Sheet have not been agreed to and are subject to agreement by Barclays and Bank of America and the execution of definitive documentation. A full-text copy of the Term Sheet is available for free at: http://bankrupt.com/misc/LehmnArchSTermSht.pdf In a separate filing, Jeffrey Fitts, a managing director with Alvarez & Marsal Real Estate Advisory Services, says that through the Debtors' non-Debtor affiliates, they currently hold approximately 47% of common equity interests in Archstone. Mr. Fitts adds that affiliates of Barclays Capital Real Estate Inc. and affiliates of Bank of America, N.A collectively hold approximately 52% of the interests. LCPI currently holds an interest of approximately $2.7 billion in the secured financing provided to Archstone. In light of general economic conditions, the state of the real estate market, and related challenges faced by Archstone, the Debtors propose to effectuate a more comprehensive restructuring of the Acquisition Financing and the Priority Financing to improve Archstone's cash flow and liquidity on a long term basis as set in the Term Sheet. The key terms of the Restructuring involve (i) the conversion of approximately $5.2 billion of the Acquisition Financing to preferred equity, (ii) the conversion of the Priority Financing to a new revolving credit facility with an extended maturity date, (iii) extensions of the maturity dates of the portions of the Acquisition Financing that are not converted to preferred equity. 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: Wins OK to Allow Delivery of Acceleration Notices ------------------------------------------------------------------ Lehman Brothers Holdings Inc. and its affiliated debtors received a court order authorizing holders of notes issued by Lehman Brothers Treasury Co. B.V. to deliver notices of acceleration concerning those notes. The Debtors made the move in light of the March 22, 2010 decision handed down by the U.S. Bankruptcy Court for the Southern District of New York. The ruling authorized Merrill Lynch International to deliver a notice of acceleration to LBHI concerning the notes that LBT issued under LBHI's Euro Medium- Term Note Program used to issue unsecured notes governed by English laws and distributed in non-U.S. markets. Merrill Lynch sought approval to serve the notice to accelerate its claims against LBT, a Netherlands-based Lehman unit which was declared bankrupt by a Dutch court in October 2008. Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York, says that given the permission granted by the Court to Merrill, it would only be fair that other noteholders be allowed to deliver the notices to accelerate their claims. 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) LIVE CURRENT: Reports Earnings of $74,345 for First Quarter ----------------------------------------------------------- Live Current Media Inc. filed its quarterly report on Form 10-Q, reporting net income of $74,345 on $908,234 of revenue for the three months ended March 31, 2010, compared with a net loss of $916,408 on $1,752,382 of revenue for the same period of 2009. The significant decrease in revenue was almost entirely driven by the decrease in sales at Perfume.com. Perfume.com revenues decreased to $873,959 in Q1 of 2010, which is just over half the revenues earned of $1,720,167 in Q1 of 2009. The Company's balance sheet at March 31, 2010, showed $2,220,623 in assets, $1,970,924 of liabilities, and $249,699 of stockholders' equity. As reported in the Troubled Company Reporter on April 1, 2010, Ernst & Young LLP, in Vancouver, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that of the Company's recurring net losses. During the quarter ended March 31, 2010, the Company generated a consolidated net income of $74,345 (Q1 of 2009 - consolidated net loss of $916,408) and realized a negative cash flow from operating activities of $335,164 (Q1 of 2009 - $1,903,550). At March 31, 2010, there is an accumulated deficit of $16,703,130 (December 31, 2009 - $16,787,208) and a working capital deficiency of $938,772 (December 31, 2009 - $1,216,325). "The Company's ability to continue as a going-concern is in substantial doubt as it is dependent on the continued financial support from its investors, the ability of the Company to obtain financing (whether through debt or equity), the ability of the Company to use its common stock to pay for liabilities as it has in certain instances in the past, and the attainment of profitable operations." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6593 Based in Vancouver, Canada, Live Current Media Inc. (OTC BB: LIVC) -- http://www.livecurrent.com/-- through its subsidiary, Domain Holdings Inc., owns more than 900 domain names. The Company intends to build consumer internet experiences based on the generic domains within its portfolio of domain names, by developing a portfolio of operating businesses either by itself or by entering into arrangements with businesses that operate in the product or service categories that are described by the domain name assets the Company owns. These domain names span several consumer and business-to-business categories including health and beauty (such as Perfume.com), and sports and recreation (such as Karate.com and Boxing.com). The Company also owns a number of .cn (China) domain names. The Company alsos has a number of non-core "bound.com" domain names that it may choose to develop that cover expansive categories of interest such as shoppingbound.com, pharmacybound.com and vietnambound.com. LYONDELL CHEMICAL: Clifford Seeks $4.8M for Work as Counsel ----------------------------------------------------------- Bankruptcy Law360 reports that applications for fees and expenses racked up by the professionals who worked on Lyondell Chemical Co.'s bankruptcy are continuing to roll in, including a request from debtor's counsel Clifford Chance LLP for about $4.8 million. The filings in the U.S. Bankruptcy Court for the Southern District of New York - including Clifford Chance's application on Monday - come after Judge Robert E. Gerber last month, according to Law360. About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. It is the global leader in polyolefins technology, production and marketing; a pioneer in propylene oxide and derivatives; and a significant producer of fuels and refined products, including biofuels. Through research and development, LyondellBasell develops innovative materials and technologies that deliver exceptional customer value and products that improve quality of life for people around the world. Headquartered in The Netherlands, LyondellBasell -- http://www.lyondellbasell.com/-- is privately owned by Access Industries. Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. On January 6, 2009, LyondellBasell Industries' U.S. operations and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities, including Equistar Chemicals, LP, Lyondell Chemical Company, Millennium Chemicals Inc., and Wyatt Industries, Inc. filed for Chapter 11. In May 2009, one of the cases was dismissed -- Case No. 09-10068 -- because it is duplicative of Case No. 09- 10040 relating to Debtor Glidden Latin America Holdings. The Hon. Robert E. Gerber presides over the case. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, serves as the Debtors' bankruptcy counsel. Evercore Partners serves as financial advisors, and Alix Partners and its subsidiary AP Services LLC, serves as restructuring advisors. AlixPartners' Kevin M. McShea acts as the Debtors' Chief Restructuring Officer. Clifford Chance LLP serves as restructuring advisors to the European entities. Lyondell Chemical estimated that consolidated assets total US$27.12 billion and debts total US$19.34 billion as of the bankruptcy filing date. Lyondell has obtained approximately US$8 billion in DIP financing to fund continuing operations. The DIP financing includes two credit agreements: a US$6.5 billion term loan, which comprises a US$3.25 billion in new loans and a US$3.25 billion roll-up of existing loans; and a US$1.57 billion asset-backed lending facility. LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 on April 24, 2009, in order to seek protection against claims by certain financial and U.S. trade creditors. On May 8, 2009, LyondellBasell Industries added 13 non-operating entities to Lyondell Chemical Company's reorganization filing under Chapter 11 of the U.S. Bankruptcy Code. All of the entities are U.S. companies and were added to the original Chapter 11 filing for administrative purposes. Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lyondell Chemical Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MAYSVILLE INC: Foreclosure Prompts Bankruptcy Filing ---------------------------------------------------- Maysville Inc. filed for bankruptcy under Chapter 11 in Miami, Florida (Bankr. S.D. Fla. Case No. 10-28244). Paul Brinkmann at Business Journal of South Florida reports that the filing was made as the Company is facing a foreclosure action by Mellon United National Bank against the 22-story Platinum condominium. According to the report, the foreclosure targeted 25 unsold units in the 119-unit project, at 480 N.E. 30th St., plus a neighboring 39-unit apartment building near Biscayne Bay. Maysville Inc. is the developer of Platinum condominium in Miami. The Company listed $24.7 million in assets and $20.2 million in liabilities including a $19 million claim by Mellon United National Bank, and $771,000 in taxes owed to Miami-Dade County. MAYSVILLE INC: Case Summary & 6 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Maysville, Inc. 711 NE 29th St., Suite 36 Miami, FL 33137 Bankruptcy Case No.: 10-28244 Chapter 11 Petition Date: June 28, 2010 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Laurel M. Isicoff Debtor's Counsel: Stan Riskin, Esq. 950 S Pine Island Rd #A-150 Plantation, FL 33324 Tel: (954) 727-8271 Fax: (954) 727-8274 E-mail: slriskin@aol.com Scheduled Assets: $24,690,000 Scheduled Debts: $20,225,364 The petition was signed by Alex Redondo, the Company's president. Debtor's List of 6 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kamany Realty & Property other $400,000 Management, Inc 480 NE 30th St., #101 Miami, FL 33137 Murai Wald Biondo & other $22,685 Moreno, P.A. 1200 Ponce De Leon Blvd. Coral Gables, FL 33134 Ehrenstein Charbonneau. other $11,423 Calderin, P.A 501 Brickell Key Dr., Suite 300 Miami, FL 33131 Tew Cardenas, LLP other $10,574 Greenberg Traurig other $7,742 Centrelix/Otis Trade debt $2,416 Elevator Co MCALPINE-PROVIDENCE: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: McAlpine-Providence Road West, LLC 1329 E Morehead Street, Suite 200 Charlotte, NC 28204 Bankruptcy Case No.: 10-31841 Chapter 11 Petition Date: June 28, 2010 Court: U.S. Bankruptcy Court Western District of North Carolina (Charlotte) Judge: J. Craig Whitley Debtor's Counsel: James H. Henderson, Esq. James H. Henderson, P.C. 1201 Harding Place Charlotte, NC 28204-2248 Tel: (704) 333-3444 Fax: (704) 333-5003 E-mail: henderson@title11.com Estimated Assets: $0 to $50,000 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/ncwb10-31841.pdf The petition was signed by Shane Seagle, owner of McApline-Seagle Developement Company, LLC, its manager. MGM RESORTS: Fitch Affirms Issuer Default Rating at 'CCC' --------------------------------------------------------- Fitch Ratings has taken these rating actions for MGM Resorts International: -- Issuer Default Rating affirmed at 'CCC'; -- Senior secured notes due 2013, 2014, and 2017 affirmed at 'B+/RR1' (91%-100% recovery band); -- Senior secured notes due 2020 rated 'B+/RR1' (91%-100%); -- Senior credit facility affirmed at 'B-/RR3' (51%-70%); -- Senior unsecured notes affirmed at 'CCC/RR4' (31%-50%); -- Convertible senior notes due 2015 rated 'CCC/RR4' (31%-50%); -- Senior subordinated notes affirmed at 'C/RR6' (0%-10%). The affirmation of the 'CCC' IDR reflects MGM's high sensitivity to an uninterrupted recovery in the Las Vegas market, heavy reliance on a favorable refinancing and capital markets environment, and a weak near-term free cash profile. These concerns are offset by enough current liquidity and additional sources of capital to meet debt obligations over roughly the next 15-18 months, as well as MGM's attractive asset portfolio, market position, and demonstrated access to capital even in an unfavorable environment. Fitch does not assign a Rating Outlook to the IDR due to the agency's view that an Outlook at the 'CCC' rating level would be superfluous for MGM, given the dynamic nature of upcoming credit factors. There is not yet enough evidence of sufficient momentum to support a Positive Outlook, but refinancing efforts by the company have provided some time to allow for an acceleration of a Las Vegas recovery. Las Vegas Operating Trends Remain Soft: Although Fitch expects Las Vegas Strip trends to improve in the second half of 2010 (2H'10) and 2011, its base case incorporates a muted recovery over the next 12-18 months. In Fitch's view, continued improvement in corporate/convention/group demand is a critical aspect of recovery for MGM's Las Vegas Strip performance since improved yields on midweek room demand will generate significant positive operating leverage. Although the market should begin to see the benefit of this mix shift later this year and into 2011, Fitch believes that the operating trend acceleration will be more pronounced later in 2011 and into 2012. With the expected opening of the 3,000-room Cosmopolitan in December 2010, Fitch believes supply growth will continue to pressure the market for the next 18 months, albeit at a decelerating pace. Following the CityCenter opening in December 2009, Fitch previously indicated that it expected a 'push-down' effect of the supply increase on mid- and lower-scale properties. The impact has been even greater than expected, which has benefited companies focused at the high-end (i.e. Wynn and Las Vegas Sands) compared to companies with broader exposure (i.e. MGM and Harrah's). In the first quarter of 2010 (1Q'10), comparable Las Vegas Strip adjusted property EBITDA for MGM and Harrah's declined 24.4% and 11.6%, respectively, while Wynn and LVS realized increases of 37.5% and 17.3%, respectively. Medium-term Liquidity Profile Remains a Concern: With wholly owned debt leverage of around 11 times and wholly owned interest coverage of only 1.1x, MGM's ratings continue to be focused heavily on its liquidity profile. Although MGM has supplemented its liquidity significantly in the past 12-18 months, its medium-term liquidity profile is still a concern, so it remains to be seen if the company is past the hump or if refinancing efforts so far have just been kicking the can down the road. MGM has been able to access the capital markets in order to push out near-term maturities and reduce the sizable credit facility balance, while gaining additional financial flexibility by amending/extending the terms of its bank agreement. The $7 billion credit facility was fully drawn in February 2009 and Fitch calculates there is roughly $3 billion outstanding as of the end of 1Q'10 and pro forma for more recent transactions. However, MGM's free cash flow profile has eroded with the repricing of its debt with new issuance over the last 18-24 months, and although the debt maturity schedule has improved, it remains heavy. Free Cash Flow Profile Has Deteriorated: With CityCenter completed in December 2009, MGM has no major capital projects on the horizon. However, the company's liquidity crunch that was driven by the funding shortfall at the CityCenter project amid the onset of the recession and the refinancing of MGM's heavy debt maturity schedule has resulted in substantially higher interest costs, dampening the company's free cash flow (FCF) outlook in the near-to-medium term. Based on wholly owned adjusted EBITDA (i.e. adjusted wholly owned property EBITDA after corporate expense, excluding stock compensation expense) of $1.05 billion-$1.25 billion, pro forma cash interest expense of roughly $1 billion, and annual maintenance capex of $200 million-$250 million, MGM's near term, wholly owned free cash flow profile is weak. However, Fitch believes the company will be able to extract capital from its unconsolidated joint ventures to reduce debt at the parent company and ease the interest burden, providing some additional recovery time for the Las Vegas Strip market and a greater FCF cushion. That said, Fitch believes MGM is currently under-investing in its properties, which could have negative implications for asset quality and potentially affect the longer-term viability of the credit. Near-term Liquidity Profile is OK: Fitch calculates MGM's available liquidity is roughly $2.2 billion. That consists of $1.37 billion of cash and $1.48 billion of revolver availability (as of 1Q'10 and pro forma for the convertible issuance and tax proceeds received in 2Q'10), which is offset by $350 million that is required to remain available under the amended credit facility provision, $160 million in estimated cage cash, and $113 million of a Nevada Gaming Control Board payroll liquidity requirement. As a result, MGM has nearly enough liquidity to meet the $2.3 billion of debt coming due in 2010 and 2011. Aside from roughly $950 million outstanding on the 2011 credit facility on a pro forma basis, the upcoming maturities include $782 million of 8.5% senior unsecured notes maturing in September 2010, $400 million of 8.375% senior subordinated notes maturing in February 2010 and $129 million of 6.375% senior unsecured notes maturing in December 2011. Fitch believes that MGM can address its 2010 and 2011 maturities with existing liquidity and additional sources of capital from its unconsolidated JVs. Potential sources of additional capital include the expected sale of MGM's 50% share in the Borgata JV and the anticipated Hong Kong IPO of its Macau JV. Fitch currently estimates that MGM can realize $225 million-$450 million from the sale of its share in Borgata and around $300 million -$400 million from Macau IPO proceeds. However, potential additional uses of cash include any payments related to the $491 million Perini lawsuit and CityCenter construction cost overruns, which MGM estimates could be as much as $300 million. Significant Refinancing Risk Remains: Refinance risk for MGM has improved over the last 12-18 months as the company raised capital to refinance near-term maturities and largely addressed its biggest refinancing hurdle, the $7 billion credit facility, as noted above. Although MGM's maturity schedule has improved, it remains heavy and presents considerable refinancing risk for the foreseeable future. That said, outside of a double-dip recession scenario, Fitch believes that there is a path to improved credit quality and higher ratings or positive rating actions. Positive ratings momentum hinges on a sustained Las Vegas recovery and the ability of the market to absorb the additional capacity amid a fragile and likely slow-growth broader economic recovery. Another significant capital raise would likely generate enough additional liquidity to firmly get past the nearly $2.3 billion of debt coming due in 2010-2011 and possibly the $545 million due in 2012, which is the lightest debt maturity year through 2017. About half, or roughly $6.6 billion of the company's $13.3 billion of debt (pro forma for transactions) is scheduled to mature in 2013-2015, which includes $2.1 billion of bank debt in 2014, $1.3 billion of secured notes, $3 billion of unsecured debt (including convertibles), and $153 million of subordinated debt. Bank debt lenders have shown a willingness to amend/extend terms while MGM has tapped the capital markets to try to create a more viable capital structure, so extending the facility outside of another recession appears reasonable. Refinancing of the secured notes should be achievable due to the collateral support, although there is risk to changing collateral values. Therefore, the biggest maturity refinancing risk in 2013-2015 is the $3.15 billion of unsecured and subordinate debt, with the biggest wall in 2015 when roughly $2 billion of that amount matures. MGM's primary debt financial covenant is a minimum EBITDA covenant that was initially instituted in the May 2009 amendment, which now requires the company to maintain a latest 12 months EBITDA (as defined) above $1 billion in 2010, stepping up periodically to $1.2 billion by the end of 2011, $1.35 billion by the end of 2012, and $1.5 billion by the end of 2013. Fitch estimates that covenant EBITDA was roughly $1.2 billion for the LTM March 31, 2010 and believes the company could have trouble meeting the minimum EBITDA covenant in 2011. There is substantial refinancing risk within MGM's unconsolidated JV portfolio. The $1.8 billion CityCenter JV credit facility and $143 million of Silver Legacy JV mortgage notes mature in 2012 and Fitch believes that both may need to be recapitalized, or the terms amended in the case of the CityCenter credit facility. Given the importance of CityCenter to Las Vegas trends overall, and MGM specifically, the outcome of a CityCenter refinancing may have a material impact on MGM's credit quality. Guidelines for Further Rating Actions: Fitch's rating system does not have + or - indicators in the 'CCC' rating category, so positive or negative rating actions with respect to the IDR would reflect MGM's credit quality migrating toward the 'B' or 'CC' categories. Key rating triggers could include: -- A meaningful revision to Fitch's current base case operating outlook for MGM. Currently, Fitch's base case incorporates wholly owned, adjusted EBITDA (after corporate expense, excluding stock compensation expense) of $1.05 billion in 2010, $1.15 billion in 2011, and $1.35 billion in 2012. -- A parent company equity issuance with proceeds used for debt reduction. -- Proceeds to MGM from its share of a potential IPO of the Macau JV outside a range of $300 million-$400 million. -- Proceeds to MGM from the sale of its interest in the Borgata JV outside a range of $225 million-$450 million. -- CityCenter related issues, including (1) the terms of a refinancing of the CityCenter credit facility, which matures in 2012; (2) the progress (or lack thereof) of CityCenter residential sales; (3) resolution of the $491 million lawsuit with Perini; and (4) CityCenter cost overruns outside a range of $300 million-$400 million. -- If Mississippi, Michigan, or Illinois were to reconsider the suitability of MGM's JV partner in Macau, following New Jersey's recent decision and report. That said, Fitch believes it is highly unlikely that Nevada would reconsider its approval of Pansy Ho's suitability as a partner for MGM. Recovery Ratings Affirmed: Although MGM may have enough liquidity and additional sources of capital to address 2011 debt obligations, MGM's ability to meet 2011-2012 debt obligations could become questionable if the overall economic environment deteriorates materially, the capital markets/refinancing environment becomes unfavorable, or Las Vegas operating trends remain pressured longer than Fitch's current expectations. As a result, Fitch's Recovery Analysis reflects a scenario where a restructuring occurs prior to the October 2011 maturity of the non-extended portion of the credit facility. Given MGM's current liquidity position and restrictions on the use of funds, debt maturing prior to that time frame is assumed to be paid off in full. Fitch continues to estimate that all of the secured notes would achieve full recovery as reflected in the 'B+/RR1' rating, although the 2013 secured notes have the strongest collateral package. The credit facility is largely unsecured, but bank debt lenders were able to extract a degree of collateral through credit agreement amendments over the past 12-18 months that contributes to good recovery prospects (51%-70%) for credit facility lenders. Fitch estimates that senior unsecured debt holders, which would have the largest claim in a restructuring, have average (31%-50%) recovery prospects. The remaining subordinated debt holders have minimal recovery prospects (0%-10%), but Fitch does assume the near-dated subordinated debt holders ($400 million of 8.375% sub notes due in February 2011) will be paid in full. MMFX INTERNATIONAL: Has Until September 20 to File Plan Outline --------------------------------------------------------------- The Hon. Robert N. Kwan of the U.S. Bankruptcy Court for the Central District of California directed MMFX International Holdings, Inc., and MMFX Canadian Holdings, Inc., to file their Disclosure Statement explaining the proposed Chapter 11 by September 20, 2010. Irvine, California-based MMFX International Holdings, Inc., and MMFX Canadian Holdings, Inc., filed for Chapter 11 on January 5, 2010 (Bankr. C.D. Calif. Case Nos. 10-10085 and 10-10083). Margaret M. Mann, Esq., at Sheppard Mullin Richter & Hampton LLP assists the Debtors in their restructuring efforts. In their petition, the Debtors listed assets and debts both ranging from $50,000,001 to $100,000,000. MONEYGRAM INTERNATIONAL: Fitch Affirms B+ Issuer Default Rating --------------------------------------------------------------- Fitch Ratings has affirmed the Issuer Default Ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc., at 'B+'. Fitch has also affirmed these ratings for Worldwide: -- Senior secured first lien credit facility at 'BB+/RR1'; -- Senior secured second lien notes at 'B+/RR4'. The Rating Outlook has been revised to Stable from Negative. The ratings and Stable Outlook reflect Fitch's considerations and estimates of MoneyGram: -- Modest revenue and EBITDA growth in 2010 as the global economic outlook continues to pressure expectations for remittance volume growth. Continued remittance market share gains should enable MoneyGram to grow faster than the overall market, partially offset by customary price compression. -- Modest positive free cash flow in 2010 with the primary use of cash being to pay down its senior secured term loans. Since the company's recapitalization in early 2008, MoneyGram has paid down over $210 million in debt. -- Leverage (total debt / total operating EBITDA) to remain at or near 3.0 times, excluding preferred equity shares in the calculation of total debt, with interest coverage remaining above 2.0x. Fitch estimates leverage currently at 3.4x and cash interest coverage at 2.2x. Fitch estimates leverage when including preferred equity shares is currently 7.3x. -- MoneyGram will continue to limit risk in its investment portfolio consistent with covenants which currently restrict new investments to cash, cash equivalents and securities issued by U.S. government agencies with a maturity of 13 months or less. The Outlook revision to Stable from Negative reflects demonstrated stability in profitability at the company's Global Funds Transfer segment during the recent economic downturn as well as greater stability and confidence in the outlook for the company's Financial Paper Products segment. Fitch believes positive rating action could occur if greater confidence and visibility on the potential conversion of preferred shares to common shares is achieved. Terms of the preferred shares allow holders to convert to common at a price of approximately $2.50 which is below the current market price for the common shares. However, upon conversion, the preferred shares would represent approximately 82% of total shares outstanding. MoneyGram has historically paid a 12.5% stock dividend on the preferred shares but does have an option of paying a 10% cash dividend. The ratings could be negatively impacted by further declines in remittance volumes driven by macro economic factors or decreases in migrant labor populations worldwide. While Fitch believes that the long-term secular trends for international remittances are strong, a multi-year decline in remittances is a possibility and could be severe enough to substantially pressure MoneyGram's cash flow. Additionally, the potential loss of Walmart as a remittance agent, which represented 32% of MoneyGram's Global Funds Transfer revenue in 2009, could negatively impact the ratings. MoneyGram's contract with Walmart expires in January 2013. Credit strengths include the solid market position of MoneyGram as the second largest global provider of international money transfers as well as Fitch's expectation for the long-term growth and stability of the money transfer industry. In addition, the remittance model has a largely variable cost structure which should help MoneyGram sustain its profit levels during the economic downturn. Rating concerns include: -- MoneyGram's ability to renew existing and attract new agent relationships given its highly levered balance sheet; -- A significant reliance on Walmart as a remittance agent, with Walmart accounting for 32% of GFT revenue in 2009 (29% of total revenue); -- The company's potentially limited ability to invest in new remittance technologies, such as mobile phone payments, which pose a long-term competitive threat given the company's current capital structure and modest free cash flow. Fitch estimates MoneyGram's total debt as of March 31, 2010, to be $798 million and includes $298 million outstanding under secured term loans included in the revolving credit facility which mature in March 2013 and $500 million of 13.25% senior secured second lien notes which mature in March 2018. In addition, the company has $897 million in 10% series B preferred outstanding. All debt is currently issued out of Worldwide which is a wholly owned subsidiary of MoneyGram. Fitch estimates liquidity to be adequate and includes $235 million available under the company's senior secured revolving credit facility which expires March 2013 and $324 million in unrestricted assets. MoneyGram historically has categorized its entire cash balance as substantially restricted due to the liquidity requirements of its Payment Systems business. In April 2010, MoneyGram repaid $30 million of its senior secured term debt from unrestricted cash. The Recovery Ratings for MoneyGram reflect Fitch's recovery expectations under a distressed scenario, as well as Fitch's expectation that the enterprise value of MoneyGram, and hence recovery rates for its creditors, will be maximized in a restructuring scenario (as a going concern) rather than a liquidation scenario. In deriving a distressed enterprise value, Fitch estimates a distressed EBITDA value of $146 million, representing a 37% discount to MoneyGram's estimated pro forma operating EBITDA of approximately $231 million, which is roughly equivalent to the level of EBITDA necessary for MoneyGram to cover its Fitch estimated fixed charges (cash interest expense and maintenance capital expenditures). Fitch then applies a 6x distressed EBITDA multiple, which considers comparable current and historical market multiples, as well as the assumption that a stress event would likely lead to multiple contraction relative to historical levels. As is standard with Fitch's recovery analysis, the revolver is fully drawn and cash balances fully depleted to reflect a stress event. Fitch also adjusts MoneyGram's distressed enterprise value for liquidity requirements to cover any estimated shortfall in restricted asset coverage for a stress scenario. The 'RR1' for MoneyGram's senior secured first lien bank facility reflects Fitch's belief that 91%-100% recovery is realistic. The 'RR4' for MoneyGram's senior secured second lien reflects Fitch's belief that 31%-50% recovery is realistic. NETWORK COMMUNICATIONS: Filing of Annual Report Will be Delayed --------------------------------------------------------------- In a regulatory filing Monday, Network Communications, Inc. disclosed that it will not be able to file its annual report on Form 10-K for the year ended March 28, 2010, within the prescribed time period without unreasonable effort and expense. "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 November 2010 and as previously reported on Form 8-K filed on June 7, 2010, the Company and its parent, Gallarus Media Holdings, Inc. ("Holdings"), entered into a forbearance agreement on June 1, 2010, pursuant to which the lenders under the Company's revolving credit agreement and under the Company's senior term loan agreement agreed to, among other things, forbear from exercising certain of the lenders' rights and remedies in respect of or arising out of certain specified defaults that had occurred on June 1, 2010, as a result of the Company not making the interest payment of $9.4 million on its 10 _% Senior Note due 2013. The Agreement was to expire on June 20, 2010. Effective June 18, 2010, Holdings entered into an amendment of the Agreement, pursuant to which the lenders under the Senior Revolving Loan Agreement and the Senior Term Loan Agreement agreed to extend the expiration date of the Agreement to July 12, 2010. In addition, the Company has determined that it has a goodwill impairment loss as of March 28, 2010. The Company is in the process of completing the annual assessment of goodwill to quantify the amount of the impairment for the fiscal year ended March 28, 2010. There can be no assurance that the Company can restructure its debts or obtain a new amendment on its forbearance agreement after July 12, 2010." The Company says its management has expended considerable time and effort engaging in discussions with its lenders to evaluate various strategic and restructuring alternatives in addition to the required efforts to complete its assessment of goodwill impairment. Additional time is required to complete the goodwill impairment analysis and the debt classification and disclosures to give effect to the impact of the Agreement and related amendment. The goodwill impairment loss for the fiscal year ended March 28, 2010 may be significantly different from the amount of the impairment loss recorded for the fiscal year ended March 29, 2009. "A new amendment may limit our ability to fund our operations. If a new amendment is not reached, the senior lenders could require the Company to immediately repay all amounts outstanding under the senior credit facility. In addition, there would be defaults under the Company's senior secured notes and senior subordinated notes. This would have a material adverse effect on the business, financial condition, liquidity and operations of the Company and raise substantial doubt about our ability to continue as a going concern." Lawrenceville, Ga.-based Network Communications, Inc., is a leading local media company providing lead generation, advertising and internet marketing services to the housing industry. The Company's leading brands are Apartment Finder, The Real Estate Book, DigitalSherpa, Unique Homes, New England Home and Atlanta Homes & Lifestyles. The Company's balance sheet at December 6, 2009, showed $362.4 million in assets, $330.3 million of liabilities, and $32.1 million of stockholders' equity. NUMOBILE INC: Posts $1.2 Million Net Loss in Q1 2010 ---------------------------------------------------- NuMobile, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1,222,056 on $88,840 of revenue for the three months ended March 31, 2010, compared with a net loss of $82,485 on $809 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $4,799,562 in assets and $9,410,161 of liabilities, for a stockholders' deficit of $4,610,599. As reported in the Troubled Company Reporter on April 12, 2010, Gruber and Company, LLC, 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 Company has incurred a net loss of $1,222,056, used cash for operations of $58,910 for the three months ended March 31, 2010, has an accumulated deficit of $10,825,026 as of March 31, 2010, and has a working capital deficit of $9,219,017 as of March 31, 2010. "These conditions raise substantial doubt as to the Company's ability to continue as a going concern." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?658e Louisville, Ky.-based NuMobile, Inc. (OTC BB: NUBL) currently conducts its operations through its subsidiaries Enhance Network Communications, Inc. and Stonewall Networks, Inc. NuMobile's plan and focus is to strategically acquire corporations that focus on four major vertical markets. The first of these markets is applications providing for smart phones and mobile computing trending to cloud network support and scaling. The second is infrastructure, architect design and management for wireless and land based networking. The third is the creation of mobile framework and applications for healthcare services and products. The fourth and last is providing infrastructure and support to the hospitality and gaming sectors with emphasis on mobile monitoring of fleet management, infrastructure security and communication for security detailing. The Company has no current arrangements or agreements for any specific acquisitions. Enhance provides a wide variety of services from infrastructure architect to software as a service supplier. Stonewall Networks has built the Cornerstone Security Policy Manager. Cornerstone, a centralized IT security policy manager, is an engine for security policy modeling, implementation, monitoring, enforcement, and auditing. NORTEL NETWORKS: Proposes to File Plan Ahead of Disc. Statement --------------------------------------------------------------- Nortel Networks Inc. and its debtor affiliates ask the U.S. Bankruptcy Court for the District of Delaware to give them until September 3, 2010, to file a disclosure statement in connection a Chapter 11 plan they are currently putting together. A disclosure statement provides a detailed description of the major provisions of a Chapter 11 plan and other information that would enable creditors to make an informed judgment concerning the plan. The Debtors inform Judge Gross that they are set to file a joint plan of reorganization on or before the July 14, 2010 exclusive plan filing deadline under Section 1121(b) of the Bankruptcy Code. "Allowing the Debtors more time to file the disclosure statement will facilitate the preparation of a draft and the ongoing discussions with the Debtors' creditor constituents with respect to the various issues that must be resolved in connection with the confirmation of [a bankruptcy] plan," says the Debtors' attorney, Alissa Gazze, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, Delaware. The Debtors aver that given the complexity of their bankruptcy cases, they do not expect any other party would be able to construct a disclosure statement or propose a competing plan during the requested extension period. The Court will consider the proposed extension at a hearing scheduled for July 7, 2010. Parties-in-interest have until June 30 to file responses or objections to the extension request. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for the Company's customers. The Company's next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate the barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of US$11.6 billion and consolidated liabilities of US$11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about US$9 billion and liabilities of US$3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about US$4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) NORTEL NETWORKS: NN CALA Wants Exclusivity Until January 2011 ------------------------------------------------------------- Nortel Networks Inc. and its units ask Judge Gross to give Debtor Nortel Networks (CALA) Inc. at least until next year to file and solicit votes for its Chapter 11 plan. Pursuant to Section 1121(d) of the Bankruptcy Code, the Debtors specifically seeks that NN CALA's exclusive plan filing deadline is extended through January 13, 2011, and that NN CALA's exclusive plan solicitation period is extended through March 13, 2011. NN CALA is a direct subsidiary of the Debtors' and is one of the Nortel units that operate in the Caribbean and Latin American region. It filed for bankruptcy protection on July 14, 2009, in the U.S. Bankruptcy Court for the District of Delaware. Ann Cordo, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, Delaware, says NN CALA intends to use the additional time to pursue the monetization of its remaining assets, review claims asserted against it, and hold negotiations in a bid to develop a plan of reorganization. The Court will consider the proposed extension at a hearing scheduled for July 7, 2010. Deadline for filing objections to the extension request is June 30, 2010. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for the Company's customers. The Company's next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate the barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of US$11.6 billion and consolidated liabilities of US$11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about US$9 billion and liabilities of US$3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about US$4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) NORTEL NETWORKS: Proposes to Terminate Retiree Plans ---------------------------------------------------- Nortel Networks Inc. and its units seek the Bankruptcy Court's authority to terminate three of their benefit plans for retirees and employees with long-term disability effective as of August 31, 2010. The benefit plans include Nortel Networks Inc.'s medical plan and life insurance plan for retirees. About 4,019 individuals are participants under the plans, consisting of 2,592 retirees and 1,490 of their spouses and children. NNI also maintains a benefit plan for 280 employees with long-term disability. The Benefit Plans have no assets and are funded on a pay-as-you- go basis. The current projected cost of providing benefits under the three Benefit Plans is approximately $1 million per month, according to the Debtors. NNI's attorney, Alissa Gazze, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, Delaware, says that the proposed termination will achieve a cumulative cash savings of $8 million to the Debtors for the remainder of 2010 alone. "Providing the benefits [under the benefit plans] is a significant financial burden that does not provide any concomitant benefit to the Debtors' estates because the individuals currently receiving the benefits of such expenditures are not providing services to the Debtors," Ms. Gazze says. Accordingly, upon further review, the Debtors have determined that it is necessary to terminate the Benefit Plans at this stage in their restructuring. To provide a smooth transition for retirees, the Debtors negotiated arrangements with external providers to arrange for individual medical insurance coverage in which retirees may elect to participate at their own cost without any reimbursement, credit or contribution from the Debtors, Ms Gazze relates. The Debtors have made an arrangement with the UnitedHealthcare Insurance Company to provide the retirees and its current employees who will retire before December 31, 2011, with medical coverage options; and with Towers Watson Pennsylvania Inc. to assist in implementing the new coverage. Under the new coverage, all of the Debtors' retirees aged 65 and above and about 95% of the retirees below 65 years old, who live in states where UnitedHealthcare or its affiliates offer under-65 medical coverage, will have the right to purchase the coverage. The approximately 100 retirees who live in states not covered by UnitedHealthcare or who live outside of the U.S. will receive guidance as to available options and assistance in securing coverage from a different provider. In connection with the proposed termination of the Nortel Retiree Medical Plan, the Debtors seek propose that retirees be permitted to submit claims under the Medical Plan until December 31, 2010 for medical claims incurred before August 31, 2010. The Court will consider the proposed benefit plan termination at a hearing scheduled for July 16, 2010. Deadline for filing objections is July 6, 2010. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for the Company's customers. The Company's next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate the barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of US$11.6 billion and consolidated liabilities of US$11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about US$9 billion and liabilities of US$3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about US$4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) NORTEL NETWORKS: Disputes Avaya's Purchase Price Calculation ------------------------------------------------------------ Nortel Networks Inc. and its units seek a Bankruptcy Court ruling compelling Avaya Inc. to comply with the terms of their agreement governing the sale of their Enterprise Solutions business. The Debtors made the move after Avaya, the buyer of Nortel's Enterprise Solutions business, disputed their calculation of the purchase price adjustment required under the deal. Avaya demanded a downward adjustment of the purchase price by about $22 million based on its claim that the Debtors' management of some excess inventory has not been proven to be reasonable. Avaya said Nortel lacked "reasonable" mitigation plans, or plans for dealing with losses due to a build-up of obsolete and excess inventory, according to a June 28, 2010 report by The Wall Street Journal. Andrew Remming, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, Delaware, asserts that Avaya's purported dispute regarding the Debtors' calculation of the inventory value contravenes the sale agreement. He says the sale agreement provides "discrete and clear standards" for calculating purchase price adjustments and provides the methods to value excess inventory delivered to Avaya. The Debtors also ask the Court to direct the release of $19,184,300 plus accumulated interest held in escrow by Wells Fargo Bank N.A. Avaya allegedly refused to release this portion of the sale proceeds based largely on its claim. Avaya emerged as the winning bidder in a bankruptcy auction for Nortel's Enterprise Solutions business held in September 2009. It offered to acquire the business for $900 million and provide an additional $15 million reserved for a Nortel employee retention program. The sale was completed two months after the auction was held. The Court will convene a hearing on July 16, 2010 to consider the Debtors' request. Deadline for filing objections is July 9, 2010. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for the Company's customers. The Company's next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate the barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of US$11.6 billion and consolidated liabilities of US$11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about US$9 billion and liabilities of US$3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about US$4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) ORANGE GROVE: Wants Access to Secured Creditors' Cash Until Oct. 1 ------------------------------------------------------------------ Orange Grove Service, Inc., asks the U.S. Bankruptcy Court for the Central District of California for authorization to access the cash securing repayment of obligations with Signal Walnut Partnership, LP, and American Continental Bank until October 1, 2010. The Debtor's indebtedness consists of: -- SWP - $7,161,450; -- ACB - $3,388,363; and -- Phoebe Chen Huang and Nelson L. Huang - $308,000. The Debtor's loan is secured by the rental income of two operating strip shopping centers located at 308-388 Lemon Ave., Walnut, California, and 2120-2150 Alhambra, California. The Debtor said that Huang's claim is fully unsecured. The Debtor would use the cash collateral to operate its business postpetition. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will: a) continue to maintain adequate causality and liability insurance coverage on Lemon Creek and Fremont that the properties are insured against potential losses to the limits recommended by the Debtor's insurance representative; b) adequate protection and interest payments to the secured creditors; c) only expend cash collateral pursuant to the Budget subject to reasonable deviations, not to exceed a total of 5%; d) pay postpetition real estate taxes when due for the year 2010; and e) maintain Lemon Creek and Fremont in good condition and repair. The Debtor is represented by: Oris S. Blumenfeld, Esq. Wilson & Associates LLP 10940 Wilshire Blvd., Suite 1600 Los Angeles, CA 90024 Tel: (310) 220-4900 Fax: (310) 443-4296 E-mail: oblumenfeld@wilsonassocllp.com About Orange Grove Service 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. ORLEANS HOMEBUILDERS: Lenders Support Short-Term Incentive Plan --------------------------------------------------------------- Orleans Homebuilders Inc. said it received a letter from a group of its senior lenders collectively holding in excess of 80% of the amount of debt outstanding under the Debtors' Debtor-in-Possession Loan Agreement and under the Company's Second Amended and Restated Revolving Credit Loan Agreement, each as amended, expressing their support for a proposed Short-Term Incentive Plan for certain members of the Company's management team. Under the terms of the proposed Short-Term Incentive Plan, certain members of management and employees the Company believes are critical to the Company's ability to maintain operations during the Chapter 11 Cases and to emerge successfully from bankruptcy would be eligible to receive a specified bonus payment. Some of the Short-Term Incentive Plan beneficiaries would be entitled to receive the full amount of the specified bonus payment as of the effective date of a Chapter 11 plan of reorganization for the Debtors if the beneficiary is employed by the Company on the Effective Date or was terminated without cause prior to the Effective Date. Certain other beneficiaries would be entitled to receive 50% of the specified bonus payment upon the Effective Date and the remainder 180 days after the Effective Date, if the beneficiary remained employed by the Company on each date or was terminated without cause prior to either date. The total amount of these bonuses is approximately $3.4 million and approximately 42 employees would be eligible to receive the bonuses, including discretionary bonuses to Jeffrey P. Orleans, Chairman, Chief Executive Officer and President, and Benjamin D. Goldman, Vice Chairman, receipt of which is subject, among other things, to the approval of a majority of the revolving lenders under the DIP Loan Agreement. The Company intends to include the proposed Short-Term Incentive Plan in its Chapter 11 Plan the Debtors anticipate filing with the Bankruptcy Court and anticipates that the Short-Term Incentive Plan will not be effective unless a Chapter 11 Plan is confirmed. Any such Chapter 11 Plan will be subject to confirmation in Bankruptcy Court proceedings and there is no guarantee that the Debtors will be successful in their attempts to obtain approval of any Chapter 11 Plan. In their June 18, 2010 letter, the Lender Group stated that it will support approval of the Short-Term Incentive Plan described above in connection with confirmation of a Chapter 11 Plan and will take such actions as will be reasonably necessary or appropriate to incorporate the terms of the Short-Term Incentive Plan into the Chapter 11 Plan and to obtain approval thereof. The Lender Group further stated that if, for any reason, a Chapter 11 Plan is confirmed and the Short-Term Incentive Plan is not approved in connection with such a Chapter 11 Plan and the Lender Group directly or indirectly owns the reorganized Company, the Lender Group will cause the reorganized Company to pay the amounts as contemplated by the Short-Term Incentive Plan. About Orleans Homebuilders Orleans Homebuilders, Inc. -- aka FPA Corporation, OHB, Parker & Lancaster, Masterpiece Homes, Realen Homes and Orleans -- develops, builds and markets high-quality single-family homes, townhouses and condominiums. From its headquarters in suburban Philadelphia, the Company serves a broad customer base including first-time, move-up, luxury, empty-nester and active adult homebuyers. The Company currently operates in these 11 distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina. Orleans Homebuilders employs approximately 300 people. The Company filed for Chapter 11 bankruptcy protection on March 1, 2010 (Bankr. D. Del. Case No. 10-10684). Cahill Gordon & Reindell LLP is the Debtor's bankruptcy and restructuring counsel. Curtis S. Miller, Esq., and Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, are the Debtor's Delaware and restructuring counsel. Blank Rome LLP is the Debtor's special corporate counsel. Garden City Group Inc. is the Debtor's claims and notice agent. The Company estimated assets and debts at $100,000,001 to $500,000,000. PAETEC HOLDING: Exchange Offer for 8-7/8% Notes Expires July 23 --------------------------------------------------------------- PAETEC Holding Corp. filed with the Securities and Exchange Commission AMENDMENT NO. 1 TO FORM S-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 in connection with its offer to exchange up to $300,000,000 of 8-7/8% Senior Secured Notes due 2017, which have been registered under the Securities Act of 1933, for any and all outstanding 8-7/8% Senior Secured Notes due 2017, which have not been registered under the Securities Act of 1933. The Company will exchange all original notes that are validly tendered and not withdrawn prior to the expiration of the exchange offer for an equal principal amount of exchange notes. The exchange offer will expire at 5:00 p.m., New York City time, on July 23, 2010, unless extended by the Company. The notes offered by the prospectus, or "exchange notes," have been registered under the Securities Act of 1933, as amended, and are being offered in exchange for the outstanding, unregistered notes, or "original notes," that the Company originally issued on January 12, 2010. The exchange of outstanding original notes for exchange notes pursuant to the exchange offer generally will not be a taxable event for U.S. federal income tax purposes. The Company will not receive any proceeds from the exchange offer. A full-text copy of the prospectus is available at no charge at http://ResearchArchives.com/t/s?659f About PAETEC Holding PAETEC Holding Corp., through its subsidiaries, provides integrated communications services, including local and long distance voice, data, and broadband Internet access services, primarily to business and institutional customers. On February 8, 2008, PAETEC Holding completed its combination by merger with McLeodUSA Incorporated, which became a wholly owned subsidiary of PAETEC Holding upon completion of the merger. The Company's balance sheet at March 31, 2010, showed $1.4 billion in total assets and $1.2 billion in total liabilities, for a total stockholders' equity of $191.9 million. Effective on June 1, 2009, the Company entered into a Second Amendment and Waiver to its Credit Agreement with its lenders which amends the Credit Agreement, dated as of February 28, 2007, and amended as of June 27, 2007. The Amendment grants the Company the right, at its option and subject to specified conditions, voluntarily to prepay term loans outstanding under its term loan facilities at any time and from time to time during a period beginning on the effective date of the Amendment and ending 18 months after such effective date. The total cash payments to be made by the Company in connection with such voluntary prepayments may not exceed $100,000,000, excluding amounts applied to the payment of accrued and unpaid interest and fees. The Amendment also modifies some of the restrictive covenants in the Credit Agreement primarily to permit the Company to issue senior secured notes and to allow the Company and its subsidiaries to incur indebtedness and related obligations under such notes if specified conditions are satisfied. * * * As reported by the Troubled Company Reporter on June 18, 2009, Standard & Poor's Ratings Services assigned PAETEC Holding's proposed senior secured notes due 2017 an issue-level rating of 'B' (the same as the corporate credit rating) with a recovery rating of '3', indicating expectations for meaningful (50%-70%) recovery in the event of payment default. At the same time, S&P affirmed all other ratings on PAETEC, including the 'B' corporate credit rating. The outlook is stable. Moody's Investors Service assigned a B1 rating to the senior secured note issuance. Moody's affirmed all other ratings, including the SGL-1 liquidity rating. The rating outlook remains stable. PALM INC: Stockholders Approve Merger Plan & Agreement ------------------------------------------------------ The stockholders of Palm Inc. approved the Agreement and Plan of Merger dated April 28, 2010 among Palm, District Acquisition Corporation and Hewlett-Packard Company. The approval occurred by way of the affirmative vote of a majority of the: i) holders of the outstanding shares of Palm common stock, Series B preferred stock and Series C preferred stock at the close of business on the record date, May 24, 2010, voting together as a single class on an as-converted basis, and ii) holders of the outstanding shares of Palm common stock not beneficially owned by Elevation Partners, L.P., or its affiliates. The transaction is expected to close on Wednesday, July 1, 2010. HP Merger As reported by the Troubled Company Reporter on April 30, Hewlett- Packard Company, Inc., and Palm have entered into a definitive agreement under which HP will purchase Palm at a price of $5.70 per share of Palm common stock in cash or an enterprise value of approximately $1.2 billion. The transaction has been approved by the HP and Palm boards of directors. Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger. The holders of Palm's Series C Preferred Stock will receive the Common Stock Consideration on an as-converted basis. The holders of Palm's Series B Preferred Stock will receive aggregate cash consideration of $328.3 million, without interest, based on the existing liquidation preference of the Series B Preferred Stock. Each outstanding warrant will be converted into the right to receive $2.45 in cash, without interest, for each share of Palm's common stock subject to the warrant. About Palm Inc. Sunnyvale, California-based Palm, Inc. (NASDAQ: PALM) creates intuitive and powerful mobile experiences that enable consumers and businesses to connect to their information in more useful and usable ways. Palm products are sold through select Internet, retail, reseller and wireless operator channels, and at the Palm online store at http://www.palm.com/store At February 28, 2010, Palm had total assets of $1,007,237,000 against total current liabilities of $601,133,000; long-term debt of $387,000,000; non-current deferred revenues of $19,001,000; non-current tax liabilities of $6,286,000; Series B redeemable convertible preferred stock of $272,961,000; and Series C redeemable convertible preferred stock of $18,782,000; resulting in stockholders' deficit of $297,926,000. At May 31, 2009, stockholders' deficit was $406,568,000. * * * As reported by the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services affirmed its 'CCC+' corporate credit rating and other ratings on Palm Inc. and revised the ratings outlook to negative from positive. "The action reflects the company's announcement that revenues in the February 2010 quarter and fiscal year ending May 2010 will be well below earlier expectations," said Standard & Poor's credit analyst Bruce Hyman. PRIUM TUMWATER: Section 341(a) Meeting Scheduled for July 22 ------------------------------------------------------------ The U.S. Trustee for Region 18 will convene a meeting of Prium Tumwater Buildings LLC's creditors on July 22, 2010, at 2:30 p.m. The meeting will be held at Courtroom J, Union Station, 1717 Pacific Avenue, Tacoma, WA 98402. 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. Tacoma, Washington-based Prium Tumwater Buildings LLC filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. W.D. Wash. Case No. 10-44962). Timothy W. Dore, Esq., at Ryan Swanson & Cleveland PLLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. PRIUM TUMWATER: Taps Ryan Swanson as General Bankruptcy Counsel --------------------------------------------------------------- Prium Tumwater Buildings LLC has sought permission from the U.S. Bankruptcy Court for the Western District of Washington to employ Ryan, Swanson & Cleveland, PLLC, as general bankruptcy counsel. RSC will represent the Debtor in its Chapter 11 bankruptcy case. The Debtor paid a $25,000 advance fee deposit to RSC for services in this bankruptcy case about June 17, 2010. To the best of the Debtor's knowledge, RSC is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Tacoma, Washington-based Prium Tumwater Buildings LLC filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. W.D. Wash. Case No. 10-44962). The Company estimated its assets and debts at $10,000,001 to $50,000,000. RAMSEY INDUSTRIES: Court Approves Chapter 11 Reorganization Plan ---------------------------------------------------------------- Kyle Arnold at Tulsa World reports that the U.S. Bankruptcy Court in Tulsa approved the Chapter 11 plan of reorganization of Ramsey Industries Inc., which intends to save the Company and keeps its 140 local employees. Ramsey Industries Inc. filed for bankruptcy protection in December 2009, listing debts of more than $100 million. REFCO INC: Ex-Lawyer Collins Settles SEC Fraud Action ----------------------------------------------------- The U.S. Securities and Exchange Commission related that on June 11, 2010, a settled final judgment was entered by the U.S. District Court for the Southern District of New York against Joseph P. Collins, a former partner with the law firm Mayer Brown LLP. The SEC's complaint in U.S. Securities and Exchange Commission v. Joseph P. Collins, 07 CV 11343 (JSR) (S.D.N.Y. filed Dec. 18, 2007), alleged that Mr. Collins aided and abetted a financial fraud by substantially assisting Refco Group Ltd. and its corporate successor Refco Inc. in their failure to disclose hundreds of millions of dollars in related party indebtedness. As alleged in the complaint, Mr. Collins, in the course of representing Refco, learned that an entity owned and controlled by Refco's chairman and chief executive officer owed Refco hundreds of millions of dollars. Mr. Collins also worked on, and oversaw other attorneys' work on, short-term related party transactions that occurred repeatedly at the end of Refco fiscal periods and temporarily shifted the related party indebtedness to unrelated third parties. The transactions were reversed shortly after the fiscal periods ended. The complaint further alleged that, notwithstanding his knowledge and awareness of the related party indebtedness and transactions, Mr. Collins reviewed and revised Refco disclosure documents that failed to mention these facts to potential investors. The final judgment against Mr. Collins, to which he consented without admitting or denying the SEC's allegations, enjoins him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b 5 thereunder. Mr. Collins was convicted in a related federal criminal prosecution of conspiracy, securities fraud, and wire fraud. In January 2010, Mr. Collins was sentenced to 7 years in prison. The SEC acknowledges the assistance and cooperation of the Office of the United States Attorney for the Southern District of New York. No Monetary Penalty under Collins Settlement Mr. Collins' deal with the SEC doesn't involve monetary penalties. He is only barred from violating the securities laws' anti-fraud provisions in the future. He also was allowed to settlement the SEC lawsuit without admitting or denying the SEC's allegations, "an absurd formality considering he's already been found guilty of a crime," Jonathan Weil noted in a Bloomberg News commentary column. A Manhattan jury's conviction of fraud for Mr. Collins, handed down in July 2009, also doesn't translate to any monetary recovery for Refco creditors, Bloomberg News points out. The conviction only included a $500 fine, according to the report. The presiding judge over the case denied a request for a forfeiture order, "under which Mr. Collins' assets could have been used to compensate victims for Refco's fraud," Mr. Weil relates. Mr. Collins and Mayer Brown were also acquitted from civil lawsuit led by Pacific Investment Management Company LLC and RH Capital Associates LLC. The acquittal was issued by Judge Gerard Lynch, as affirmed by the 2nd Circuit Court of Appeals in late April 2010. However, Mr. Collins is still facing a separate lawsuit by three funds associated with Thomas H. Lee Partners LP, over representations Mr. Collins made to the equity firm that led the firm to purchase a majority stake in Refco in 2004, Bloomberg News cites. Mayer Brown billed Refco more than $40 million in fees from 1007 through 2005, Bloomberg notes, citing court records. "True justice for investors duped by Refco would include the opportunity to seize everything Mr. Collins owns," Bloomberg's Jonathan Weil commented. 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) RICHARDSON HOSPITAL: S&P Raises Ratings on Bonds to 'BBB-' ---------------------------------------------------------- Standard & Poor's Ratings Services's media release, originally published June 25, 2010, incorrectly stated the obligor's name in the headline and the name of a newly created entity that is a party to a lease agreement with the obligor in the text. A corrected version is: S&P raised its rating to 'BBB-' from 'BB+' on Richardson Hospital Authority, Texas' $73.227 million series 2004 bonds and $32.355 million series 1998 bonds, issued for Richardson Regional Medical Center. The rating outlook remains developing. The higher rating reflects Standard & Poor's view of RHA's affiliation and long-term 20-year lease agreement with Methodist Hospital of Dallas (doing business as Methodist Health System or MHS), which has contributed to improved operating results, partly due to the benefit of more favorable managed-care contracting through MHS, but also due to general revenue and cost efficiencies gained through affiliating with a stronger system. In March 2009, RHA announced it signed a memorandum of understanding to affiliate with MHS and effective June 1, 2009, RHA entered into a long-term lease agreement with Methodist Richardson Medical Center, a newly created affiliate organization of MHS, to lease the assets of RRMC. As such, RRMC is now doing business as MRMC. In S&P's opinion, offsetting credit factors include some weaknesses in the lease structure such as special termination rights by either party and a lease term that expires approximately six years (unless terminated earlier) before the final bond maturity date in 2035. Added credit concerns are MMRC's location in a competitive marketplace, with sizeable system-affiliated competitors surrounding its primary service area, which has led to some pressure on business volumes over the past two to three years and constrained balance sheet metrics for RHA. The developing outlook reflects the continuing progression of the affiliation with MHS under the current lease agreement. MRMC has shown operational improvement and has met the initial forecasted operating results for the interim period ending April 2010. If MRMC current financial trend continues, S&P believes there is a good chance they will meet the required operational targets set forth in the lease agreement, which would trigger a full sale to MHS over the next 12 to 24 months. Furthermore, both parties could accelerate a full sale to MHS in advance of meeting the triggers if they so choose. "If a full sale were to occur, the rating would likely be raised to reflect the higher rating of MHS, assuming the debt becomes a guaranty of MHS or is on parity with MHS's existing debt," said Standard & Poor's credit analyst Stephen Infranco. "However, given some of the structural weaknesses of the lease agreement, specifically the termination provisions, there is still a chance that the affiliation could dissolve and the medical center be returned to RHA, which would likely result in a lower rating as the same financial difficulties that plagued RRMC before the affiliation could return," said Mr. Infranco. RITE AID: Stockholders Approve Adoption of 2010 Plan ---------------------------------------------------- The stockholders of Rite Aid Corporation approved the adoption of the 2010 Plan, which was previously approved by Rite Aid's Compensation Committee and Board of Directors. The 2010 Plan provides for the issuance of a maximum of 35 million shares of Common Stock in connection with the grant of stock options, stock appreciation rights, restricted stock, phantom units, stock bonus awards, and other equity-based awards valued in whole or in part by reference to, or otherwise based on, Rite Aid's Common Stock. About Rite Aid Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The Company operates more than 4,900 stores in 31 states and the District of Columbia. The Company had total assets of $8.049 billion against total liabilities of $9.723 billion, resulting in stockholders' deficit of $1.673 billion as of February 27, 2010. As reported by the Troubled Company Reporter on Oct. 21, 2009, Moody's affirmed Rite Aid's 'Caa2' corporate family and probability of default ratings. Standard & Poor's also affirmed the 'B-' corporate credit rating, and the outlook is stable. RITE AID: Stockholders Elect Nine Nominees to Board of Directors ---------------------------------------------------------------- According to a regulatory filing, stockholders elected Rite Aid Corporation's nominees to the Board of Directors. The persons elected to Rite Aid's Board of Directors are: * Joseph B. Anderson * Andre Belzile * Michel Coutu * James L. Donald * David R. Jessick * Mary F. Sammons * Philip G. Satre * John T. Standley * Marcy Syms The stockholders also ratified the appointment of Deloitte & Touche LLP as Rite Aid's independent registered public accounting firm. About Rite Aid Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The Company operates more than 4,900 stores in 31 states and the District of Columbia. The Company had total assets of $8.049 billion against total liabilities of $9.723 billion, resulting in stockholders' deficit of $1.673 billion as of February 27, 2010. As reported by the Troubled Company Reporter on Oct. 21, 2009, Moody's affirmed Rite Aid's 'Caa2' corporate family and probability of default ratings. Standard & Poor's also affirmed the 'B-' corporate credit rating, and the outlook is stable. RITE AID: Promotes Kenneth Martindale as Chief Operating Officer ---------------------------------------------------------------- Rite Aid Corporation said that Kenneth Martindale, formerly Senior Executive Vice President of Merchandising, Marketing and Logistics, had been promoted to Chief Operating Officer. He assumes the position from John Standley, who, as previously announced, was promoted from President and Chief Operating Officer to President and Chief Executive Officer following the company's annual meeting on June 23. Information about Mr. Martindale, including his prior experience, can be found in our definitive proxy statement for our 2010 Annual Meeting Stockholders, as filed with the Securities and Exchange Commission on May 21, 2010, under the heading "Executive Officers." In his new role as Chief Operating Officer, Mr. Martindale will be entitled to receive an annual base salary in the amount of $750,000 and will have the opportunity to receive a target bonus in the amount of 125% of his base salary. In addition, in connection with his promotion, Mr. Martindale was granted an option to purchase 1.4 million shares of Rite Aid common stock, $1.00 par value per share pursuant to the Rite Aid Corporation 2010 Omnibus Equity Plan. Additionally, pursuant to Rite Aid's fiscal year 2011 long term incentive program, Mr. Martindale was granted an option to purchase 589,300 shares of Common Stock, 192,800 restricted shares of Common Stock and cash performance units in the amount of $288,800, all under the Rite Aid Corporation 2004 Omnibus Equity Plan. About Rite Aid Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The Company operates more than 4,900 stores in 31 states and the District of Columbia. The Company had total assets of $8.049 billion against total liabilities of $9.723 billion, resulting in stockholders' deficit of $1.673 billion as of February 27, 2010. As reported by the Troubled Company Reporter on Oct. 21, 2009, Moody's affirmed Rite Aid's 'Caa2' corporate family and probability of default ratings. Standard & Poor's also affirmed the 'B-' corporate credit rating, and the outlook is stable. RMA REAL ESTATE: Involuntary Chapter 11 Case Summary ---------------------------------------------------- Alleged Debtor: RMA Real Estate Holdings, L.L.C. 20702 Crescent Point Place Ashburn, VA 20147 Bankruptcy Case No.: 10-15244 Involuntary Chapter 11 Petition Date: June 22, 2010 Court: U.S. Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Stephen S. Mitchell Debtor's Counsel: Pro Se Petitioners' Counsel: John P. Forest, II, Esq. StahlZelloe, P.C. 11350 Random Hills Road, Suite 700 Fairfax, VA 22030 Tel: (703) 691-4940 Creditors who signed the Chapter 11 petition: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Roger Amendola Member Not Stated 20702 Crescent Pointe Place Ashburn, VA 20147 Brett Anthony Amendola Member Not Stated 43605 Solheim Cup Terrace Ashburn, VA 20147 Janet Amendola Member Not Stated 43605 Solheim Cup Terrace Ashburn, VA 20147 ROBERT MARSHALL: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Robert J. Marshall dba Wilmar Properties, LTD 1180 Wadsworth Road Medina, OH 44256 Bankruptcy Case No.: 10-53062 Chapter 11 Petition Date: June 27, 2010 Court: U.S. Bankruptcy Court Northern District of Ohio (Akron) Judge: Marilyn Shea-Stonum Debtor's Counsel: David A. Mucklow, Esq. 4882 Mayfair Road North Canton, OH 44720 Tel: (330) 896-8190 Fax: (330)896-8201 E-mail: davidamucklow@yahoo.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 $6,283,560 while debts total $7,679,578. 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/ohnb10-53062.pdf The petition was signed by the Debtor. RUMSEY LAND: Court Extends Plan Outline Filing Until July 29 ------------------------------------------------------------ The Hon. Howard R. Tallman of the U.S. Bankruptcy Court for the District of Colorado extended Rumsey Land Co., LLC's exclusive period to file its Disclosure Statement until July 29, 2010. The Debtors have already filed a proposed Chapter 11 Plan of Reorganization. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the explanatory Disclosure Statement. Denver, Colorado-based Rumsey Land Co., LLC, filed for Chapter 11 bankruptcy protection on January 15, 2010 (Bankr. D. Colo. Case No. 10-10691). Aaron A. Garber, Esq., who has an office in Denver, Colorado, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. SAINT VINCENTS: Stonehenge Buys Sixth Avenue Bldg. for $67.3MM -------------------------------------------------------------- Rachel Feintzeig at Dow Jones Daily Bankruptcy Review reports that an auction for the Greenwich Village staff house of St. Vincent's Hospital drove the purchase price for the Sixth Avenue building to $67.3 million. Dow Jones reports that an entity affiliated with New York real-estate company Stonehenge Partners Inc. emerged as winner in the bidding for the building, which has housed the now- defunct hospital's medical residents for years. A hearing to consider approval of the sale is set for Thursday. Dow Jones says real-estate investment firm Taconic Investment Partners was slated to kick off bidding for the building with an offer of $48 million and was promised a break-up fee of $870,000 if it didn't emerge as the winning bidder. Dow Jones notes the winning bidder is a unit of Stonehenge Fund III Limited Partnership, an investment vehicle focused on investing equity in commercial, residential and retail real estate in Manhattan, according to court papers. The fund's major institutional investors are Caisse de Depot et Placement du Quebec and the Public Sector Pension Investment Board, both of Canada. Its general partner is controlled by Stonehenge's managing members, Ofer Yardeni and Joel Seiden. According to the report, St. Vincent's said it intends to close the sale of the staff house by July 15, pending Court approval of the deal. About Saint Vincent Catholic Medical Centers Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/-- is anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Its behavioral health services also provide supportive housing programs for people with mental illness throughout the Metropolitan area. Saint Vincent's is the designated provider for the New York and New Jersey region of the US Family Health Plan sponsored by the US Department of Defense. Saint Vincent's serves as the academic medical center of New York Medical College in New York City. The healthcare organization is sponsored by the Roman Catholic Bishop of Brooklyn and the president of the Sisters of Charity of New York. Saint Vincent Catholic Medical Centers of New York and six of its affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed the Debtors' Chapter 11 cases. On September 12, 2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over representing the Debtors in their restructuring efforts. Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the Official Committee of Unsecured Creditors. As of April 30, 2005, the Debtors listed $972 million in total assets and $1 billion in total debts. The Court confirmed the Debtors' Chapter 11 plan on July 27, 2007. St. Vincent Catholic Medical Centers and its affiliates returned to the bankruptcy court by filing another Chapter 11 petition on April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed assets of $348 million against debt totaling $1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors in their restructuring efforts. The Debtors' special counsel is Garfunkel Wild, P.C., while their Crisis Management Team is led by Grant Thornton LLP. The Debtors' Chief Restructuring Officer is Mark E. Toney. SINCLAIR BROADCAST: CFO Amy Unloads 30,000 Shares ------------------------------------------------- David B. Amy, Sinclair Broadcast Group, Inc.'s executive vice president and chief financial officer, sold 30,000 shares of the Company's class A common stock in separate transactions on June 25 and 28, 2010. The range of prices for the sale was $6.81 to $6.84. Mr. Amy is left with 47,013 shares. He may be deemed to beneficially owns (i) 36,400 shares of Class A Common Stock, (ii) 72,610 shares of Class A Common Stock issued as Restricted Stock, and (iii) 6,419.071096 shares of common stock held in a 401k Plan. About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. At March 31, 2010, the Company had total assets of $1,576,554,000 against total liabilities of $1,764,321,000 and non-controlling interests of $9,202,000, resulting in total deficit of $187,767,000. * * * According to the Troubled Company Reporter on May 28, 2010. Standard & Poor's Ratings Services placed its 'B' corporate credit rating for Hunt Valley, Md.-based TV broadcaster Sinclair Broadcast Group Inc., as well as all related issue-level ratings on the company's debt, on CreditWatch with positive implications. SINCLAIR BROADCAST: Files 2009 Annual Report for 401(k) Plan ------------------------------------------------------------ Sinclair Broadcast Group, Inc., filed with the Securities and Exchange Commission an annual report on Form 11-K for the Sinclair Broadcast Group, Inc. 401(k) Retirement Savings Plan for the fiscal year ended December 31, 2009. At December 31, 2009, net assets available for benefits total $76,997,489. Net investment income for year 2009 was $17,557,502. A full-text copy of the Form 11-K is available at no charge at http://ResearchArchives.com/t/s?659e About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. At March 31, 2010, the Company had total assets of $1,576,554,000 against total liabilities of $1,764,321,000 and non-controlling interests of $9,202,000, resulting in total deficit of $187,767,000. * * * According to the Troubled Company Reporter on May 28, 2010. Standard & Poor's Ratings Services placed its 'B' corporate credit rating for Hunt Valley, Md.-based TV broadcaster Sinclair Broadcast Group Inc., as well as all related issue-level ratings on the company's debt, on CreditWatch with positive implications. SMURFIT-STONE: Completes Financial Restructuring ------------------------------------------------ Smurfit-Stone Container Corporation has successfully completed its financial restructuring and has officially emerged from Chapter 11 as a newly reorganized, publicly traded company that will begin trading on the New York Stock Exchange under the symbol SSCC effective July 1, 2010. The company's Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court on June 21, 2010, and recognized by a Canadian court order, has become effective. All outstanding closing conditions have been satisfied or waived. "This is an exciting day for Smurfit-Stone. We have successfully completed our financial restructuring in just 17 months and we exit Chapter 11 as a well-positioned industry leader with a healthier balance sheet and improved cost structure," said Patrick J. Moore, chief executive officer. "We are re-energized, committed to serving the needs of our customers and achieving long-term profitable growth for our shareholders." Continued Moore, "I appreciate the hard work and dedication of our employees who worked tirelessly during the reorganization process and remained focused on providing outstanding value to our customers." In conjunction with the company's completion of its financial restructuring, the company announced a new board of directors, including Ralph F. Hake, who has been appointed non-executive chairman of the Smurfit-Stone board of directors. Hake is the former chairman and CEO of Maytag Corporation. Additional board members include: Timothy J. Bernlohr, former president and CEO of RBX Industries, Inc. Terrell K. Crews, former EVP and chief financial officer of Monsanto Eugene I. Davis, chairman, CEO and chief restructuring officer for Pirinate Consulting Group, LLC Michael E. Ducey, former president and CEO of Compass Minerals International, Inc. Jonathan F. Foster, managing director, Current Capital LLC Ernst A. Haberli, former president, commercial operations, international, Gillette Company Arthur W. Huge, former president and CEO of Menasha Corporation Steven J. Klinger, president and COO, Smurfit-Stone Patrick J. Moore, CEO, Smurfit-Stone James J. O'Connor, former chairman and CEO of Unicom Corporation and the former Smurfit-Stone lead independent director As previously announced, in accordance with the terms of the Plan, Smurfit-Stone's previous common stock and preferred stock have been cancelled. However, the Plan provides that 2.25 percent of the New Smurfit-Stone Common Stock Pool will be distributed pro rata to the company's previous preferred stockholders and 2.25 percent of the New Smurfit-Stone Common Stock Pool will be distributed pro rata to the company's previous common stockholders. Upon completion of all distributions to former creditors under the Plan, the company will have approximately 100 million shares of common stock issued and outstanding. About Smurfit-Stone Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/-- is one of the leading integrated manufacturers of paperboard and paper-based packaging in North America and one of the world's largest paper recyclers. The Company operates 162 manufacturing facilities that are primarily located in the United States and Canada. The Company also owns roughly one million acres of timberland in Canada and operates wood harvesting facilities in Canada and the United States. The Company employs roughly 21,250 employees, 17,400 of which are based in the United States. For the quarterly period ended September 30, 2008, the Company reported roughly US$7.450 billion in total assets and US$5.582 billion in total liabilities on a consolidated basis. Smurfit-Stone and its U.S. and Canadian subsidiaries filed for Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead Case No. 09-10235). Certain of the company's affiliates, including Smurfit-Stone Container Canada Inc., a wholly owned subsidiary of SSCE, and certain of its affiliates, filed to reorganize under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada. Smurfit-Stone joined pulp- and paper-related bankruptcies as rising Internet use hurts magazines and newspapers. Corporacion Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy in October. Quebecor World Inc., a magazine printer and Pope & Talbot Inc., a pulp-mill operator, also sought cross-border bankruptcies for their operations in the U.S. and Canada. James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M. Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers LLC, serves as the Debtors' financial and investment consultants. Lazard Freres & Co. LLC acts as the Debtors' investment bankers. Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and claims agent. Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Smurfit-Stone Container Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) SOFTLAYER TECHNOLOGIES: S&P Assigns 'B' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating and stable rating outlook to privately-held Plano, Texas-based hosting and managed service provider Softlayer Technologies Inc. At the same time, S&P assigned its 'B' issue rating and '3' recovery rating to the company's $20 million revolving credit facility due 2015, and a 'B' issue rating and '3' recovery rating to its $190 million term loan B and $20 million delayed draw term loan, both due in 2016. Proceeds will be used, along with approximately $190 million of new private common equity, to fund GI Partners' purchase of a majority controlling interest in Softlayer, as well as repay $74.6 million of existing debt and for transaction costs. "S&P's ratings reflect the highly competitive, fragmented nature of the hosting and managed services sector, which is served in great part by companies with more market diversity and larger scale than Softlayer," said Standard & Poor's credit analyst Catherine Cosentino. In addition, the company customer base consists, in part, of customers with limited operating histories that are largely in the start-up phase of operations. These factors challenge the company's longer-term ability to sustain the double-digit growth levels it has experienced over the past few years, including revenue growth of 60% for 2009. Softlayer leases physical space and purchases bandwidth and power in data centers throughout the U.S. It also buys servers and networking gear to provide customers tailored on-demand hosting services as an alternative to their managing their own IT infrastructure. Its main differentiator has been its proprietary technology platform, which provides customers a high degree of service customization. Current favorable demand characteristics are driven by increasing internet traffic and on-line commerce and applications, which provide good growth for all the competitors serving these market segments, including co-location providers, telecommunications carriers, and large scale system integrators. In fact, profit measures for companies in this space are fairly healthy, and Softlayer itself has an EBITDA margin of around the mid 40% area. SONICBLUE INC: Creditors Add MoFo to Malpractice Claims Suit ------------------------------------------------------------ SonicBlue Inc.'s tumultuous bankruptcy continues to stir up trouble, giving rise to accusations that Morrison & Foerster LLP has smothered misconduct claims against Pillsbury Winthrop Shaw Pittman LLP because the firms co-own the insurer on the hook for a bankruptcy-related $10 million malpractice settlement, according to Bankruptcy Law360. On Friday a group of SonicBlue claim holders brought MoFo into the fracas in the U.S. District Court for the Northern District of California, Law360 says. SONICblue Inc. and its debtor-affiliates filed for chapter 11 bankruptcy on March 21, 2003, before the U.S. Bankruptcy Court for the Northern District of California (Lead Case No. 03-51775). The Debtors employed Pillsbury Winthrop Shaw Pittman LLP formerly Pillsbury Winthrop LLP as their bankruptcy counsel. Houlihan Lokey Howard & Zukin Capital served as their financial advisors. Early into the case, the U.S. Trustee appointed an official Creditors' committee in the case. On Oct. 4, 2007, the Bankruptcy Court directed the U.S. Trustee to reconstitute the Initial Creditors' Committee. The Initial Creditors' Committee retained Levene, Neale, Bender, Rankin & Brill LLP as bankruptcy counsel; and Alliant Partners, as financial advisors. On March 26, 2007, the Bankruptcy Court disqualified Pillsbury as the Debtors' bankruptcy counsel and ordered the appointment of a chapter 11 trustee for the Debtors. On April 17, 2007, the Court granted the U.S. Trustee's request to appoint Dennis J. Connolly, Esq., as the Chapter 11 Trustee. The U.S. Trustee appointed on October 23, 2007, a reconstituted Creditors' Committee -- comprised of Korea Export Insurance Corporation, Riverside Contracting LLC & Riverside Claims LLC, Synnex K.K., TLI Holdings, Inc., Michelle Miller, and York Capital Opportunity Fund. York Capital Opportunity Fund was later appointed Chair of the Reconstituted Creditors' Committee and Synnex K.K. subsequently resigned as a member. Grant T. Stein, Esq., at Alston & Bird LLP in Atlanta, Georgia; and Cecily A. Dumas, Esq., at Friedman Dumas & Springwater LLP in San Francisco, California, represent the Chapter 11 Trustee. Grobstein Horwath serves as accountants to the Chapter 11 Trustee. Aron M. Oliner, Esq., Mikel R. Bistrow, Esq., and Geoffrey A. Heaton, Esq., at Duane Morris LLP, in San Francisco, represent the Reconstituted Creditors' Committee. The Troubled Company Reporter on October 27, 2008, reported the Bankruptcy Court entered an order confirming SonicBlue's liquidating plan. STRATEGIC LABOR: Files for Chapter 11 Bankruptcy Protection ----------------------------------------------------------- Kyle Alspach at Business Journal of Boston reports that Strategic Labor Inc. filed for bankruptcy under Chapter 11, listing liabilities of between $500,000 and $1 million, and assets of between $100,000 and $500,000. Strategic Labor Inc. operates a workforce scheduling software firm. The Company listed its largest creditors as New York-based Pershing LLC, owed $280,956, and New Jersey-based Ledgewood Properties Inc., owed $257,529. Stephen Gordon of Gordon Law Firm LLP represents the Company in its Chapter 11 effort. TACO DEL MAR: Has Until September 20 to File a Chapter 11 Plan -------------------------------------------------------------- The Hon. Thomas T. Glover of the U.S. Bankruptcy Court for the Western District of Washington extended Taco Del Mar Franchising Corp.'s exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan until September 20, 2010, and November 18, respectively. The Official Committee of Secured Creditors is granted co-equal rights with the Debtor for filing a Chapter 11 Plan until September 20. Founded in Seattle, Washington, in 1992 by brothers James and John Schmidt, Taco Del Mar is a quick-service casual restaurant chain inspired by southern Baja, Mexico, and coastal beach shacks known for serving some of the tastiest burritos and tacos. Today, Taco Del Mar operates in more than 225 locations throughout the U.S., Canada and Guam. Taco Del Mar Franchising Corp. filed for Chapter 11 bankruptcy protection on January 22, 2010 (Bankr. W.D. Wash. Case No. 10- 10528). Andrew J Liese, Esq., and George S. Treperinas, Esq., at Karr Tuttle Campbell, 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. The Company's affiliate, Conrad & Barry Investments Inc., filed a separate Chapter 11 petition. TENET HEALTHCARE: Names Ronald Rittenmeyer as New Director ---------------------------------------------------------- Tenet Healthcare Corporation said Ronald A. Rittenmeyer, former chairman, president and chief executive officer of Electronic Data Systems Corporation, has been named to its board of directors. Mr. Rittenmeyer joins the board as an independent director. He fills a vacancy created in May 2010 through the retirement of former Tenet board member Don Williams. Mr. Rittenmeyer will serve on the audit and compensation committees. Mr. Rittenmeyer, 63, served at EDS from 2005 to 2008. He has also held senior leadership positions across multiple industries, including managing director of The Cypress Group, a private equity firm; chairman, CEO and president of Safety-Kleen, Inc.; CEO and president of AmeriServe Food Distribution; chairman, CEO and president of RailTex, Inc.; president and COO of Ryder TRS, Inc.; president and COO of Merisel; COO of Burlington Northern Railroad; and a variety of senior management roles with PepsiCo's Frito Lay and PepsiCo's Foods International Divisions. In April 2010, the Department of Treasury appointed Mr. Rittenmeyer to serve as an independent director of American International Group, Inc. "We're pleased to have Ron join our board. He brings a valuable perspective on leadership and operations across a multitude of industries and economic environments," said Tenet's non-executive Chairman Edward A. Kangas. "Ron's track record as a CEO is outstanding, and I look forward to the many contributions he will make to Tenet and to our board," said Tenet's president and CEO Trevor Fetter. About Tenet Healthcare Dallas, Texas-based Tenet Healthcare Corporation (NYSE: THC) -- http://www.tenethealth.com/-- is a health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers and diagnostic imaging centers. * * * Tenet Healthcare Corporation raised its Outlook for 2010 Adjusted EBITDA by $50 million to a new range of $1.035 billion to $1.100 billion. The Company's prior Outlook range was $985 million to $1.050 billion. The corresponding revised Outlook range for net income attributable to Tenet shareholders is $135 million to $204 million and the revised Outlook range for diluted earnings per share is $0.27 to $0.40 per share. Moody's Investors Service upgraded the Corporate Family and Probability of Default Ratings of Tenet Healthcare Corporation to B2 from B3. Moody's also upgraded the rating on Tenet's senior secured revolver to Ba2 (LGD1, 3%) from Ba3 (LGD1, 3%), senior secured notes to B1 (LGD3, 37%) from B2 (LGD3, 35%) and senior unsecured notes to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%). The ratings outlook is stable. TEXAS RANGERS: MLB Balks at Request for Information on Bids ----------------------------------------------------------- American Bankruptcy Institute reports that Major League Baseball's commissioner is balking at a request from lenders to the owner of the Texas Rangers to supply documents related to potential rival offers for the franchise. 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. THOMAS WILLIAMS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Thomas R. Williams dba Wilmar Properties, LTD 6551 River Styx Road Medina, OH 44256 Bankruptcy Case No.: 10-53063 Chapter 11 Petition Date: June 27, 2010 Court: U.S. Bankruptcy Court Northern District of Ohio (Akron) Judge: Marilyn Shea-Stonum Debtor's Counsel: David A. Mucklow, Esq. 4882 Mayfair Road North Canton, OH 44720 Tel: (330) 896-8190 Fax: (330)896-8201 E-mail: davidamucklow@yahoo.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 $6,176,348while debts total $7,181,767. 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/ohnb10-53063.pdf The petition was signed by the Debtor. TRICO SHIPPING: Moody's Junks Rating on Senior Secured Notes ------------------------------------------------------------ Moody's Investors Service downgraded the senior secured note rating for Trico Shipping AS from B3 (LGD2, 20%) to Caa2 (LGD3, 37%). Simultaneously Moody's affirmed Shipping's Caa3 Corporate Family Rating, Caa3 Probability of Default Rating and SGL-4 Speculative Grade Liquidity Rating. The outlook is developing. The downgrade of Shipping's note ratings reflects the lower likelihood of Shipping's involvement in the current restructuring plan and possible bankruptcy proceedings at Trico Marine Services, Inc., Shipping's parent. Previously Trico's debt was included in Moody's Loss Given Default liability waterfall assuming that any potential default/bankruptcy scenario at Trico would include Shipping and its related entities. Including this debt essentially acted as a cushion for Shipping's senior secured debt. The removal of Trico's debt from the LGD liability structure resulted in the two notch downgrade of the Shipping's senior secured notes. Affirmation of the Caa3 CFR reflects the probability of Shipping being excluded from a potential bankruptcy at Trico as well as Shipping's weak credit metrics. Shipping experienced softer than expected results in the fourth quarter of 2009 and the first quarter of 2010. Although Shipping was seeing a rebound in its business as the fundamentals improved, Moody's believes the deepwater sector outlook where the majority of Shipping's business is concentrated, has weakened in light of the Gulf of Mexico oil spill and current deep water drilling moratorium. On June 16, 2010, Trico announced that following the failure to make coupon payments on May 15, 2010 and that Shipping's senior secured notes holders have agreed to a standstill agreement for the period of 12 months or upon Trico exiting bankruptcy proceedings, whichever comes first. The standstill agreement will prevent the event of cross default on Shipping's senior secured notes unless in the event of an accelerated payment notice by the convertible debenture holders. Meanwhile Trico has secured a new lender providing Trico with a $25 million revolving credit facility (replacing the existing facility) expandable to $50 million DIP financing in case of entering bankruptcy proceedings. Trico is currently in discussion with its debenture holders with the likelihood of entering a pre- packaged bankruptcy proceedings. The SGL-4 rating reflects Shipping's weak liquidity standing for the next twelve months. Shipping is planning to raise as much as $50 million of new capital which will provide Shipping with approximately $30 million of additional liquidity following financing cost and $11 million reduction in size of current working capital revolving credit facility. Shipping plans to spend within cashflow or slightly over in the next twelve months, barring further business deterioration. The developing outlook considers management's success in obtaining sufficient additional liquidity at both Trico and Shipping and the outlook for the deepwater business sector and in particular Shipping's business outlook. The ratings could move further down, could be affirmed at current levels, or could be upgraded. The last rating action for Trico Shipping AS was on May 11, 2010, when Moody's downgraded the ratings for Trico Shipping AS. Trico Shipping is an indirectly owned subsidiary of Trico Marine Services, Inc., which is headquartered in The Woodlands, TX, and provides subsea services, subsea trenching and protection services, and towing and supply vessels to oil and gas exploration companies that operate in major producing regions around the world. TRIDENT RESOURCES: Emerges from Bankruptcy in Canada & U.S. ----------------------------------------------------------- Trident Resources Corp., Trident Exploration Corp. and affiliates disclosed a successful emergence from protection under the Company's Creditors Arrangement Act in Canada and Chapter 11 of the U.S. Bankruptcy Code. Trident emerges poised to continue growing its operated unconventional natural gas assets in North America. As a result of the restructuring, Trident has obtained a new equity investment of approximately $247 million from a group of pre-prepetition creditors including affiliates of Anchorage Advisors LLC, Chilton Investment Company, LLC and Jennison Associates LLC. The Company has reduced its long term debt and obligations from approximately US $1.9 billion as of September 8, 2009 case commencement to US $410 million at emergence. "This is a very important day for our company, stakeholders, employees and service companies," said Todd Dillabough, President, CEO & COO. "While we have grown both proven reserves and production during this time, the Company's lower debt load will enable it to better develop its greater than 10 year drilling inventory on its existing land holdings. Trident is well positioned to continue growing its operated unconventional natural gas assets in Western Canada that are among the lowest operating cost and finding and development cost fields in the oil and gas industry. "I want to give special thanks to the employees and the service companies who remained intensely focused on the day to day tasks at hand, allowing the Company to grow during the restructuring process," added Mr. Dillabough. About Trident Resources Calgary, Alberta-based Trident Resources Corp. operates a natural gas exploration and development company. The Company and its affiliates filed for Chapter 11 on September 8, 2009 (Bankr. D. Del. Case Nos. 09-13150 to 09-13154). Trident Exploration Corp. and certain of TEC's Canadian subsidiaries filed an application with the Court of Queen's Bench of Alberta, Judicial District of Calgary, under the Companies' Creditors Arrangement Act (Canada). Trident on December 3, 2009, obtained an extension from the Canadian Court of the "stay period" in its Canadian proceedings until January 15, 2010, to allow the Debtors to focus on their restructuring efforts. In their petition, the Debtors listed $10,000,001 to $50,000,000 in assets and $500,000,001 to $1,000,000,000 in debts. As of October 31, 2009, the Debtors had $374,484,559 in total assets against $612,233,705 in total liabilities. URS CORPORATION: Scott Wilson Deal Won't Move Moody's 'Ba1' Rating ------------------------------------------------------------------ Moody's Investors Service commented that there is no change to URS Corporation's ratings (Ba1 Corporate Family, Ba1 Probability of Default, Baa3 senior secured and SGL-1 speculative grade liquidity) or stable outlook related to its potential acquisition of Scott Wilson Group Plc., a UK-based integrated design and infrastructure consultancy. Moody's last rating action on URS Corporation was on December 15, 2009 at which time its Corporate Family Rating was upgraded to Ba1 with a stable outlook. URS Corporation, headquartered in San Francisco, California, is a leading engineering and construction firm and a major federal government contractor that provides a range of professional planning, design, engineering, construction, operations and maintenance, and decommissioning and closure services. Consolidated revenues for the trailing twelve months to April 2, 2010 were approximately $8.9 billion. VANGUARD HEALTH: Moody's Affirms 'B2' Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service affirmed the ratings of Vanguard Health Holding Company II, including the B2 Corporate Family and Probability of Default ratings, following the announcement that the company would be offering $225 million of senior unsecured notes due 2018. The outlook for the ratings is stable. Moody's understands that the proceeds of the notes will be used to pre-fund a portion of the planned acquisition of Detroit Medical Center (Ba3 long-term bond rating). The acquisition remains subject to regulatory review, which is expected to take approximately 75 to 90 days. The regulatory process, which includes state Attorney General, Department of Health and CON approval, was initiated on June 10, 2010. Based on Vanguard's current operations, Moody's estimates that the incremental debt will raise leverage to approximately 6.3 times. The affirmation of Vanguard's B2 CFR incorporates Moody's view that the company can effectively operate with this higher leverage until the DMC transaction is completed and potentially over the longer term if the deal is not completed for any reason. However, Moody's expect that Vanguard will be able to complete the transaction and benefit from the acquired cash flow and EBITDA. Moody's estimates that pro forma for the acquisition of DMC, adjusted debt to LTM EBITDA at March 31, 2010 would have been in the range of 5.2 times. It should be noted that Moody's calculation of adjusted leverage includes Moody's standard adjustment to capitalize operating leases as well as the estimated amount of DMC's pension liability. Vanguard's B2 Corporate Family Rating reflects the considerable financial leverage of the company and the risks involved in completing a transformational acquisition that entails entering a new and challenging market and will require a substantial investment in future periods. Additionally, while the DMC transaction will provide additional scale and decrease reliance on the San Antonio and Phoenix markets, geographic concentration in the Detroit market, in terms of total revenue contribution, will be even higher than the company's previous concentrations. The rating also reflects the expectation that the company will still maintain good liquidity over the near term, characterized by a continuation of the stable cash flow generation that has allowed for a portion of the DMC transaction to be funded out of available cash. These ratings were affirmed/LGD assessments revised: * $260 million senior secured revolving credit facility due 2015, to Ba2 (LGD2, 17%) from Ba2 (LGD2, 20%) * $815 million senior secured term loan due 2016, to Ba2 (LGD2, 17%) from Ba2 (LGD2, 20%) * $1,175 million (including the $225 million add on) senior unsecured notes due 2018, B3 (LGD5, 76%) * Speculative Grade Liquidity Rating, SGL-2 * Corporate Family Rating, B2 * Probability of Default Rating, B2 Moody's last rating action was on January 20, 2010, when Moody's assigned ratings to the company's recapitalized debt structure, including the current credit facility and unsecured bonds and also assigned a Speculative Grade Liquidity Rating of SGL-2. Headquartered in Nashville, Tennessee, Vanguard owns and operates acute care hospitals and complementary outpatient facilities principally located in urban and suburban markets. As of March 31, 2010, Vanguard operated 15 acute care hospitals in four states. For the twelve months ended March 31, 2010, the company generated approximately $3.4 billion in net revenue. VERNON MAXWELL: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: Vernon Leroy Maxwell Marie Latanya 3759 Center Avenue Norco, CA 9286 Bankruptcy Case No.: 10-29886 Chapter 11 Petition Date: June 28, 2010 Court: U.S. Bankruptcy Court Central District of California (Riverside) Judge: Deborah J. Saltzman Debtor's Counsel: Thomas P. Giordano, Esq. 500 State College Boulevard, Suite 530 Orange, CA 92868 Tel: (714) 912-7810 Fax: (714) 912-7860 E-mail: tohmahso@aol.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtors' list of 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-29886.pdf The petition was signed by the Joint Debtors. WALLACE THEATER: S&P Gives Negative Outlook; Affirms 'B-' Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Portland, Ore.-based Wallace Theater Holdings Inc. to negative from stable. Ratings on the company, including the 'B-' corporate credit rating, were affirmed. S&P rates Wallace on a consolidated basis with subsidiary Hollywood Theaters Inc. "S&P is concerned about Wallace's narrowing liquidity in light of the recent softness in the U.S. box office and tough comparisons against 2009, especially in the summer and upcoming winter holiday seasons," noted Standard & Poor's credit analyst Jeanne Shoesmith. S&P's 'B-' rating reflects Wallace's high leverage, concentrated cash flow, thin EBITDA coverage of interest, minimal discretionary cash flow, and limited liquidity. Other factors affecting the rating include the mature and highly competitive nature of the industry and its exposure to the fluctuating popularity of movies. The rating also reflects S&P's concern that proliferation of competing entertainment alternatives and shorter periods in theatrical release prior to home video and video-on-demand release could pressure U.S. movie exhibitors' attendance. Wallace operates in small-to-midsize markets, primarily in 15 states in the South Central, Midwestern, and Western U.S. It has upgraded its theater circuit over the past several years by closing poorly performing theaters and opening several new ones. Wallace's venues are relatively modern, and a large proportion of its screens have stadium seating. The proportion of its theaters with unfettered access to all films in release compares favorably with leading movie exhibitors'. The company's EBITDA margin, at around 15%, is toward the middle of its peer group. The limited appeal to competitors of Wallace's markets and the industry's currently low level of new-theater development provide a modest degree of protection. In the first quarter of 2010, the company's revenue increased 16% from the prior year. However, EBITDA declined 7.5% because of a 19% increase in theater operating expenses as a result of opening three new theaters in the past year. S&P expects comparisons to the record-breaking box office performance of 2009 to become more difficult and likely turn negative, potentially leading to lower revenue and EBITDA. Lease-adjusted leverage was very high, at roughly 8.1x as of March 31, 2010, up from 6.9x a year earlier as a result of declines in EBITDA and higher debt balances. EBITDA coverage of interest was very thin at 1.1x for the 12 months ended March 31, 2010. Discretionary cash flow was slightly positive for the 12 months ended March 31, 2010, with interest expense consuming the majority of the company's cash flow. S&P expects capital spending to moderate. Even so, discretionary cash flow could swing negative in 2010 if box-office revenues decline. WEEMS RESORTS: Case Summary & 7 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Weems Resorts, LLC dba Chattanooga South KOA Campgrounds P.O. Box 1156 Ringgold, GA 30736 Bankruptcy Case No.: 10-13657 Chapter 11 Petition Date: June 28, 2010 Court: United States Bankruptcy Court Eastern District of Tennessee (Chattanooga) Judge: Shelley D. Rucker Debtor's Counsel: Brent James, Esq. Harriss Hartmann Law Firm PC P.O. Drawer 220 Rossville, GA 30741 Tel: (706) 861-0203 Fax: (706) 861-6838 E-mail: bkcourts@harrisshartman.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 $4,946,800 while debts total $1,506,004. 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/tneb10-13657.pdf The petition was signed by Danny O. Weems, owner/member/manager. XERIUM TECHNOLOGIES: Posts $30.2 Million Net Loss in Q1 2010 ------------------------------------------------------------ Xerium Technologies, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $30.2 million on $135.0 million of revenue for the three months ended March 31, 2010, compared with a net loss of $9.4 million on $116.5 million of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $658.5 million in assets and $807.0 million in liabilities, for a stockholders' deficit of $148.5 million. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6595 About Xerium Technologies Based in Raleigh, North Carolina, Xerium Technologies, Inc. (NYSE: XRM) - http://www.xerium.com/- is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 32 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,300 employees. Xerium Technologies and certain subsidiaries filed for Chapter 11 on March 30, 2010 (Bankr. D. Del. Lead Case No. 10-11031). Judge Kevin J. Carey presides over the cases. John J. Rapisardi, Esq.; George A. Davis, Esq.; and Sharon J. Richardson, Esq., at Cadwalader, Wickersham & Taft LLP; and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Brian Fox, Michelle Campbell, and Michael Hartley at AlixPartners, LLC, serve as the Debtors' restructuring advisors. Stephen Ledoux and Daniel Gilligan at Rothschild Inc. serve as the Debtors' investment bankers. Garden City Group Inc. is the Debtors' claims agent. Xerium Technologies disclosed total assets of $693,511,000 and total debts of $813,168,000 in its petition. Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware confirmed the Prepackaged Chapter 11 Plan of Reorganization filed by Xerium Technologies, Inc., and its debtor affiliates on May 12, 2010, after determining that the Plan satisfies the requirements of Section 1129(a) of the Bankruptcy Code. On May 25, 2010, the Plan became effective and the Company and the debtor subsidiaries emerged from Chapter 11. XERIUM TECHNOLOGIES: To Close Stowe Woodward Plant in Ontario ------------------------------------------------------------- Xerium Technologies, Inc., announced Monday that it will implement a reorganization and consolidation that will result in the closing of its Stowe Woodward, North Bay, Ontario facility. It is expected that production will cease at this location by August 20, 2010. "The paper industry has been contracting in North America over the last several years. Many paper machines have been permanently shut down across North America" said Dave Pretty, President, Xerium North America and Europe, PMC. "The demand for our products has been significantly affected by these events. As a result, we are adjusting the way we do business and consolidating our roll cover operations in North America. By taking this action we can strengthen our focus on our customers' needs and continue to offer them the newest roll covering, bowed roll and mechanical service technology in the industry." Stowe Woodward says it will maintain its leadership position in the North American paper industry with state of the art facilities strategically located in Kelso, Washington, Neenah, Wisconsin, Middletown, Virginia, Charlotte, North Carolina, Griffin, Georgia, Ruston, Louisiana, Concord, New Hampshire and Queretaro, Mexico. About Xerium Technologies Based in Raleigh, North Carolina, Xerium Technologies, Inc. (NYSE: XRM) -- http://www.xerium.com/-- is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 32 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,300 employees. Xerium Technologies and certain subsidiaries filed for Chapter 11 on March 30, 2010 (Bankr. D. Del. Lead Case No. 10-11031). Judge Kevin J. Carey presides over the cases. John J. Rapisardi, Esq.; George A. Davis, Esq.; and Sharon J. Richardson, Esq., at Cadwalader, Wickersham & Taft LLP; and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Brian Fox, Michelle Campbell, and Michael Hartley at AlixPartners, LLC, serve as the Debtors' restructuring advisors. Stephen Ledoux and Daniel Gilligan at Rothschild Inc. serve as the Debtors' investment bankers. Garden City Group Inc. is the Debtors' claims agent. Xerium Technologies disclosed total assets of $693,511,000 and total debts of $813,168,000 in its petition. Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware confirmed the Prepackaged Chapter 11 Plan of Reorganization filed by Xerium Technologies, Inc., and its debtor affiliates on May 12, 2010, after determining that the Plan satisfies the requirements of Section 1129(a) of the Bankruptcy Code. On May 25, 2010, the Plan became effective and the Company and the debtor subsidiaries emerged from Chapter 11. * * * The Company's balance sheet at March 31, 2010, showed $658.5 million in assets and $807.0 million in liabilities, for a stockholders' deficit of $148.5 million. YRC WORLDWIDE: Reaches Acquisition Deal With Austin Ventures ------------------------------------------------------------ YRC Worldwide Inc. has entered into a definitive agreement to sell a portion of its YRC Logistics business to Austin Ventures, a strategic private equity investor. This logistics business will operate as a private company owned by Austin Ventures. The sale will form the basis for a new company specializing in international freight forwarding, customs brokerage, transportation management, truckload services, and dedicated warehouse and fulfillment services in North America, Latin America, Europe and Asia. "This transaction enables YRC Worldwide to focus on our core transportation capabilities while continuing to offer full global logistics solutions for our customers through a strong business relationship with the new company," says Bill Zollars, chairman, president and CEO, YRC Worldwide. "There will be no change in the way a customer's business is handled, and they will benefit from advancements in the delivery of comprehensive supply chain solutions by both companies. In addition, the incremental liquidity from the transaction will support YRC Worldwide business growth." YRC Worldwide will retain all of its China-based operations and the strategic partnership with Austin Ventures gives customers of the new logistics company ongoing access to these capabilities. "We are very pleased to partner with the management team of YRC Logistics. We see opportunities to invest in the company and position it for growth through expanded offerings and the continued expansion of its global network," says David Lack, partner, Austin Ventures. "This investment builds on Austin Ventures' commitment to work alongside talented executive teams in leading, high-growth supply chain services companies." "The current YRC Logistics management team remains in place and customers will experience the same expertise and accountability," adds John Carr, president-YRC Logistics. "The substantial equity infusion from Austin Ventures positions us to pursue new business development as well as growth through acquisition." The agreement between YRC Worldwide and Austin Ventures is for an acquisition price of $37 million, and incremental value will be realized by both parties through a comprehensive commercial services agreement. The transition to new ownership is expected to be complete within the next 30-45 days. About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. The Company's balance sheet as of March 31, 2010, showed $2.919 billion in assets and $3.024 billion of liabilities, for a stockholders' deficit of $104.9 million. * * * As reported in the Troubled Company Reporter on March 18, 2010, KPMG LLP, in Kansas City, Missouri, expressed substantial doubt about YRC Worldwide's ability to continue as a going concern in its report on the Company's consolidated financial statements as of and for the year ended December 31, 2009. The independent auditors noted that the Company has experienced significant declines in operations, cash flows, and liquidity. * Legislator Wants Guns Exempted From Creditors' Claims ------------------------------------------------------- Patrick Fitzgerald at Dow Jones Daily Bankruptcy Review reports that Rep. John Boccieri (D., Ohio) is pushing legislation, dubbed The Protecting Gun Owners in Bankruptcy Act of 2010, which would exempt firearms from the claims of creditors. "Specifically, the measure would permit firearms held primarily for the personal, family or household use of the debtor to be exempt from the claims of creditors under federal exemption law," Mr. Boccieri wrote in an April letter to colleagues, according to Dow Jones. * Levene, Neale, Bender, Rankin & Brill Elects New Partner ---------------------------------------------------------- Levene, Neale, Bender, Rankin & Brill L.L.P., the Los Angeles- based bankruptcy, insolvency and business reorganization specialist, has elected Timothy J. Yoo a name partner and announced that the firm has changed its name to Levene, Neale, Bender, Yoo and Brill L.L.P., effective immediately (http://www.lnbyb.com/). Yoo, who focuses primarily on commercial litigation and bankruptcy issues and is widely known for creative and efficient resolutions to complex issues, joined the firm in late 2009, following its merger with Robinson, Diamant & Wolkowitz, a bankruptcy boutique in Century City where he was a shareholder. Levene, Neale, Bender, Yoo & Brill was founded in July 1995, and has since forged a strong reputation for resolving complex bankruptcy cases for a diversity of prominent companies. It is based in Century City and also has offices in downtown Los Angeles. "Tim Yoo's comprehensive experience and knowledge of complex bankruptcy matters are recognized throughout the region. Having his name part of our identity reflects our excitement with the added dimension and capacity that Tim has brought to the firm," said David L. Neale and Ron Bender, co-managing partners and founders of the firm. Yoo has been practicing bankruptcy law since 1991, following his graduation from Loyola Law School. His wide range of cases since then has involved such companies as Winston Tires, Daewoo Motors, Small World Toys, Aoki Pacific Corp., Chorus Line Corp. and California Fashions. He also frequently writes for the Korea Times and California Continuing Education of the Bar. Levene, Neale, Bender, Yoo & Brill is at the forefront of the rescue and rehabilitation of companies in fiscal distress, and has represented debtors, creditors' and equity holders' committees, trustees, purchasers, principals and secured and unsecured creditors in bankruptcy cases and out-of-court workouts. The firm, now celebrating its 15th anniversary, was originally founded by David W. Levene, David L. Neale and Ron Bender. Martin J. Brill became a name partner in 2000. LNBYB represents clients in such industries as entertainment, healthcare, energy, food and beverage, manufacturing and distribution, real estate, retail, service, technology and communications. For details, please contact: Bernie Roswig BJR Public Relations Tel: 310-836-4381 E-mail: http://Bernie@bjrpr.com/ * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ------------------------------------------------------------- Recent Chapter 11 cases filed with assets and liabilities below $1,000,000: In Re Mexican Restaurant LLC Bankr. N.D. Ala. Case No. 10-03656 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/alnb10-03656p.pdf See http://bankrupt.com/misc/alnb10-03656c.pdf In Re The Lora Dean Gaddy Broberg Trust Bankr. W.D. Ark. Case No. 10-73142 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/arwb10-73142.pdf In Re Lizola Group LLC Bankr. C.D. Calif. Case No. 10-28695 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/cacb10-28695.pdf In Re Today Not Tomorrow Investments, Inc. aw Today Not Tomorrow Inc Bankr. C.D. Calif. Case No. 10-28733 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/cacb10-28733.pdf In Re Chester Marketing,Inc. Bankr. S.D. Calif. Case No. 10-10528 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/casb10-10528.pdf In Re A M E Investments, Inc. Bankr. N.D. Fla. Case No. 10-10325 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/flnb10-10325.pdf In Re Om Namah Laxmi, LLC Bankr. D. Idaho Case No. 10-01903 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/idb10-01903.pdf In Re Gateway Panel, Inc. Bankr. E.D. Mo. Case No. 10-46816 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/moeb10-46816.pdf In Re Hayden Picco, LLC Bankr. D. Nev. Case No. 10-21328 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/nvb10-21328.pdf In Re Columbia Organic Holdings LLC Bankr. S.D. N.Y. Case No. 10-13215 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/nysb10-13215.pdf In Re DES-R Properties 2, LLC fka DES-R Properties, L.L.C. Bankr. M.D. N.C. Case No. 10-11105 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/ncmb10-11105.pdf In Re Cafe Associates, LTD dba Waterfront Cafe fdba Cafe Europa Bankr. D. S.C. Case No. 10-04313 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/scb10-04313.pdf In Re Rossville Convenience and Gas, Inc. Bankr. E.D. Tenn. Case No. 10-13464 Chapter 11 Petition Filed June 17, 2010 See http://bankrupt.com/misc/tneb10-13464p.pdf See http://bankrupt.com/misc/tneb10-13464c.pdf In Re Kathleen Ann Mahn Bankr. E.D. Wis. Case No. 10-30108 Chapter 11 Petition Filed June 17, 2010 Filed As Pro Se In Re Arthur Crespin Perez dba APA Transportation Alma America Perez Bankr. C.D. Calif. Case No. 10-28922 Chapter 11 Petition Filed June 18, 2010 Filed As Pro Se In Re C-Shore International, Inc. Bankr. E.D. Calif. Case No. 10-16860 Chapter 11 Petition Filed June 18, 2010 See http://bankrupt.com/misc/caeb10-16860p.pdf See http://bankrupt.com/misc/caeb10-16860c.pdf In Re Justin L. Salerno Cynthia Salerno Bankr. E.D. Calif. Case No. 10-36135 Chapter 11 Petition Filed June 18, 2010 See http://bankrupt.com/misc/caeb10-36135.pdf In Re Eliot Circle Apartments, LLC Bankr. D. Colo. Case No. 10-25188 Chapter 11 Petition Filed June 18, 2010 Filed As Pro Se In Re The Peachtree Buffet, Inc., a Missouri Corporation Bankr. W.D. Mo. Case No. 10-43148 Chapter 11 Petition Filed June 18, 2010 See http://bankrupt.com/misc/mowb10-43148.pdf In Re Tiffany Properties, LLC Bankr. W.D. Mo. Case No. 10-21323 Chapter 11 Petition Filed June 18, 2010 See http://bankrupt.com/misc/mowb10-21323.pdf In Re Elite Home Care, Inc. Bankr. W.D. Pa. Case No. 10-24421 Chapter 11 Petition Filed June 18, 2010 See http://bankrupt.com/misc/pawb10-24421.pdf In Re Johnisee & Sons, Inc. dba AAMCO Transmissions Bankr. M.D. Tenn. Case No. 10-06365 Chapter 11 Petition Filed June 18, 2010 See http://bankrupt.com/misc/tnmb10-06365.pdf In Re Woodwinds Plus, Inc. Bankr. E.D. Va. Case No. 10-51140 Chapter 11 Petition Filed June 18, 2010 See http://bankrupt.com/misc/vaeb10-51140.pdf In Re J.D. Gibbs Grading, Inc. Bankr. N.D. Ga. Case No. 10-22775 Chapter 11 Petition Filed June 19, 2010 See http://bankrupt.com/misc/ganb10-22775.pdf In Re D & M Investments LLC Bankr. E.D. La. Case No. 10-12185 Chapter 11 Petition Filed June 19, 2010 See http://bankrupt.com/misc/laeb10-12185.pdf In Re Theresa Jacome, P.A. Bankr. S.D. Fla. Case No. 10-27286 Chapter 11 Petition Filed June 20, 2010 See http://bankrupt.com/misc/flsb10-27286p.pdf See http://bankrupt.com/misc/flsb10-27286c.pdf In Re Karin M. Frank fka Karin M. Cooper Bankr. E.D. Calif. Case No. 10-36150 Chapter 11 Petition Filed June 21, 2010 Filed As Pro Se In Re R and J Clubs Investment, LLC Bankr. M.D. Fla. Case No. 10-10884 Chapter 11 Petition Filed June 21, 2010 See http://bankrupt.com/misc/flmb10-10884.pdf In Re Fortune Positive LLC aka Fortune Positive LLC dba Zza's Trattoria Bankr. N.D. Calif. Case No. 10-47050 Chapter 11 Petition Filed June 21, 2010 Filed As Pro Se In Re AI & R Enterprises, LLC Bankr. M.D. Fla. Case No. 10-10883 Chapter 11 Petition Filed June 21, 2010 See http://bankrupt.com/misc/flmb10-10883.pdf In Re Curtis L. Alliston, III aka Curtis Lamar Alliston aka Curt Alliston aka Curtis L Alliston Denise L. Alliston aka Denise Linea Alliston Bankr. M.D. Fla. Case No. 10-14744 Chapter 11 Petition Filed June 21, 2010 See http://bankrupt.com/misc/flmb10-14744.pdf In Re Hi-Tech Window & Siding Installation, Inc. Bankr. D. Mass. Case No. 10-43149 Chapter 11 Petition Filed June 21, 2010 See http://bankrupt.com/misc/mab10-43149.pdf In Re West Broadway, LLC Bankr. D. Minn. Case No. 10-44649 Chapter 11 Petition Filed June 21, 2010 See http://bankrupt.com/misc/mnb10-44649.pdf In Re Capital Investment Enterprises Bankr. D. Nev. Case No. 10-21557 Chapter 11 Petition Filed June 21, 2010 See http://bankrupt.com/misc/nvb10-21557.pdf In Re Robert Bruce Gittelson Bankr. C.D. Calif. Case No. 10-17468 Chapter 11 Petition Filed June 22, 2010 Filed As Pro Se In Re Roger Guerra Bankr. S.D. Fla. Case No. 10-27449 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/flsb10-27449.pdf In Re A Brite Cleaning Inc. dba A Brite Carpet Cleaning aka A Brite Cleaning & Restoration Inc Bankr. N.D. Ill. Case No. 10-27985 Chapter 11 Petition Filed June 22, 2010 Filed As Pro Se In Re J & M Enterprises, LLC Bankr. S.D. Fla. Case No. 10-27427 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/flsb10-27427.pdf In Re James B. Columbia Bankr. N.D. Miss. Case No. 10-13023 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/msnb10-13023.pdf In Re The Peachtree Restaurant of KC, Inc., a Missouri Corporation Bankr. W.D. Mo. Case No. 10-43196 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/mowb10-43196.pdf In Re US Telcom Inc. Bankr. D. Nev. Case No. 10-21584 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/nvb10-21584.pdf In Re CRC6111 CORPORATION dba Covino's Ristorante Bankr. D. N.J. Case No. 10-29103 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/njb10-29103.pdf In Re Meto Services LLC Bankr. E.D. N.Y. Case No. 10-74792 Chapter 11 Petition Filed June 22, 2010 Filed As Pro Se See http://bankrupt.com/misc/nyeb10-74792.pdf In Re Clem Properties, Inc. Bankr. E.D. Pa. Case No. 10-15084 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/paeb10-15084.pdf In Re CS Auto Parts, Inc. Bankr. E.D. Pa. Case No. 10-15086 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/paeb10-15086.pdf In Re Plus Properties, Inc. Bankr. W.D. Tenn. Case No. 10-26611 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/tnwb10-26611.pdf In Re Hannah's Houses L.L.C. Bankr. E.D. Va. Case No. 10-15218 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/vaeb10-15218.pdf In Re Michael A. Meddaugh Jodi L. Meddaugh Bankr. W.D. Wis. Case No. 10-14756 Chapter 11 Petition Filed June 22, 2010 See http://bankrupt.com/misc/wiwb10-14756.pdf In Re Boone Gardiner Garden Center Inc. Bankr. W.D. Ky. Case No. 10-33290 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/kywb10-33290.pdf In Re LCCHC, L.L.C Bankr. E.D. La. Case No. 10-12223 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/laeb10-12223.pdf In Re Maison LaVande, L.L.C Bankr. E.D. La. Case No. 10-12222 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/laeb10-12222.pdf In Re Fynders, Inc. Bankr. D. Mass. Case No. 10-43170 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/mab10-43170p.pdf See http://bankrupt.com/misc/mab10-43170c.pdf In Re Keepers, Inc. Bankr. D. Mass. Case No. 10-43171 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/mab10-43171.pdf In Re Druid Development, LLC Bankr. D. N.J. Case No. 10-29195 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/njb10-29195.pdf In Re Satellite Donuts LLC Bankr. S.D. N.Y. Case No. 10-13333 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/nysb10-13333.pdf In Re Yochanan Waldman Rivkah Waldman Bankr. S.D. N.Y. Case No. 10-23283 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/nysb10-23283.pdf In Re Dwight J. Mitchell aka Dwight Jerome Mitchell dba Sun Valley Home For The Aged Bankr. M.D. Tenn. Case No. 10-06545 Chapter 11 Petition Filed June 23, 2010 Filed As Pro Se In Re Juan M. Garcia Bankr. W.D. Texas Case No. 10-31296 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/txwb10-31296.pdf In Re John P. Makolin Carol A. Makolin Bankr. D. Vt. Case No. 10-10861 Chapter 11 Petition Filed June 23, 2010 See http://bankrupt.com/misc/vtb10-10861p.pdf See http://bankrupt.com/misc/vtb10-10861c.pdf In Re Conduit Networks, Inc. Bankr. C.D. Calif. Case No. 10-29539 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/cacb10-29539.pdf In Re Robert S. Sage, Loretta Arnold Trust Bankr. C.D. Calif. Case No. 10-17587 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/cacb10-17587.pdf In Re John Gregory Arden aka Straddles Border Stop Bankr. E.D. Calif. Case No. 10-36518 Chapter 11 Petition Filed June 24, 2010 Filed As Pro Se In Re John P. McMahan, Sr. dba Mac's Tree and Hauling Service Bankr. M.D. Fla. Case No. 10-05478 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/flmb10-05478p.pdf See http://bankrupt.com/misc/flmb10-05478c.pdf In Re Montanos Roofing and Construction Inc. Bankr. N.D. Ill. Case No. 10-28356 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/ilnb10-28356.pdf In Re Novo, Inc. Bankr. D. Mass. Case No. 10-16861 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/mab10-16861.pdf In Re Desert Eagle Construction Inc. dba Casa Adame Custom Homes Bankr. D. Nev. Case No. 10-21779 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/nvb10-21779.pdf In Re Douglas Glenn Janette Glenn Bankr. D. Nev. Case No. 10-21780 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/nvb10-21780.pdf In Re Zona Rosa Corporation Bankr. E.D. N.Y. Case No. 10-45927 Chapter 11 Petition Filed June 24, 2010 Filed As Pro Se In Re Whitestone Capital, Inc. Bankr. S.D. Ohio Case No. 10-14305 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/ohsb10-14305.pdf In Re Rotating Equipment Company aka Rotating Equipment Services Bankr. W.D. Pa. Case No. 10-24540 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/pawb10-24540.pdf In Re Secret Protective Security Inc. Bankr. D. Puerto Rico Case No. 10-05588 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/prb10-05588.pdf In Re Amerigo Hospitality Builders, Inc. Bankr. W.D. Texas Case No. 10-60777 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/txwb10-60777.pdf In Re We're Here To There, LLC Bankr. W.D. Texas Case No. 10-11722 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/txwb10-11722.pdf In Re LaConner Fruit and Produce LLC Bankr. W.D. Wash. Case No. 10-17238 Chapter 11 Petition Filed June 24, 2010 See http://bankrupt.com/misc/wawb10-17238.pdf In Re David C. Davis Elouise Davis Bankr. C.D. Calif. Case No. 10-36108 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/cacb10-36108.pdf In Re 2010 Real Estate Foreclosure LLC Bankr. N.D. Ill. Case No. 10-28398 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/ilnb10-28398.pdf In Re Choate's Harbor Hill Marina, Inc. Bankr. W.D. Ky. Case No. 10-50781 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/kywb10-50781.pdf In Re Toby Lee Primeaux Bankr. W.D. La. Case No. 10-50989 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/lawb10-50989.pdf In Re Four Star Investment Group, LTD dba Marathon Express dba Total Express Bankr. E.D. Mich. Case No. 10-60608 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/mieb10-60608.pdf In Re Michael S. Mall M.D. Ltd dba New Image Advanced Laser Skin Center Bankr. D. Nev. Case No. 10-21848 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/nvb10-21848.pdf In Re Bayview Capital, Inc. Bankr. D. N.J. Case No. 10-29513 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/njb10-29513.pdf In Re Bromley Estates Phase III Condominium Association aka DBA Bromley Estates Condo Assn Inc - Phase 3 Bankr. D. N.J. Case No. 10-29593 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/njb10-29593.pdf In Re Hartex Ventures, Inc. Bankr. S.D. Texas Case No. 10-20519 Chapter 11 Petition Filed June 25, 2010 Filed As Pro Se In Re Adam R. Grossman Bankr. W.D. Wash. Case No. 10-17334 Chapter 11 Petition Filed June 25, 2010 Filed As Pro Se In Re Maison De Fraise, LLC Bankr. W.D. Wash. Case No. 10-17311 Chapter 11 Petition Filed June 25, 2010 See http://bankrupt.com/misc/wawb10-17311.pdf In Re Doris June McGuire Bankr. C.D. Calif. Case No. 10-36143 Chapter 11 Petition Filed June 26, 2010 See http://bankrupt.com/misc/cacb10-36143.pdf In Re Artemia M. Carrillo Bankr. D. Nev. Case No. 10-21930 Chapter 11 Petition Filed June 27, 2010 See http://bankrupt.com/misc/nvb10-21930.pdf In Re Bryn Mawr Wound Care & Vascular Center, LLC Bankr. E.D. Pa. Case No. 10-15216 Chapter 11 Petition Filed June 27, 2010 See http://bankrupt.com/misc/paeb10-15216.pdf In Re Royal Oak Condominium Association, Inc. Bankr. M.D. Fla. Case No. 10-11316 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/flmb10-11316.pdf In Re Innercity Community Development, LLC Bankr. N.D. Ill. Case No. 10-28756 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/ilnb10-28756.pdf In Re Innercity Community Development, LLC Bankr. N.D. Ill. Case No. 10-28758 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/ilnb10-28758.pdf In Re Innercity Community Development, LLC Bankr. N.D. Ill. Case No. 10-28760 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/ilnb10-28760.pdf In Re Strategic Labor, Inc. Bankr. D. Mass. Case No. 10-43245 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/mab10-43245p.pdf See http://bankrupt.com/misc/mab10-43245c.pdf In Re Twin Cities Entertainment, Inc. dba Aqua Bankr. D. Minn. Case No. 10-44801 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/mnb10-44801.pdf In Re Johnny Mike Davis aka Mike Davis dba The Davis Construction Company Bankr. W.D. Mo. Case No. 10-30733 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/mowb10-30733.pdf In Re Hoyt E. Lee aka Gene Lee Sandra L. Lee aka Sandra Lee Bankr. D. N.M. Case No. 10-13242 Chapter 11 Petition Filed June 28, 2010 See http://bankrupt.com/misc/nmb10-13242.pdf ********* 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 ***