/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100716.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, July 16, 2010, Vol. 14, No. 195 Headlines 1800HOTELS4U, LLC: Files for Chapter 11 Bankruptcy Protection 1800HOTELS4U, LLC: Voluntary Chapter 11 Case Summary 1ST FINANCIAL: Voluntary Chapter 11 Case Summary ADVANCED MICRO: FMR LLC Discloses 11.368% Equity Stake AAER INC: Initial CCAA Stay Period Extended Until Aug. 11 ALTEGRITY INC: Moody's Affirms Corporate Family Rating at 'B3' AMELIA PLANTATION: Court Sets Noble-Led Auction for Aug. 23 AMERICAN APPAREL: FMR LLC No Longer Holds Shares AMERICAN APPAREL: Ron Burkle Pays $5.9 Million for 6% Stake AMERICAN INT'L: Said to Weigh Giving Stake in Rescue Vehicles AMERICAN MEDIA: Reaches Debt-to-Equity Agreement with Bondholders AMR CORP: Nears British Airways Alliance as EU Backs Deal ARROW AIR: Has Cash Use Approval for Liquidation AVENTINE RENEWABLE: Distributes Stock as Part of Plan AXIA INC: Sets Conversion to Chapter 7 Effective Aug. 1 BLACK CROW: Has Until November 8 to File Reorganization Plan BOSTON PROPERTIES: Fitch Affirms Preferred Stock Rating at 'BB+' BROWN PUBLISHING: Creditors Sue to Block Lenders' Credit Bid BUILDERS FINANCIAL: Case Summary & 17 Largest Unsecured Creditors BULK PETROLEUM: Convenience Stores Acquires 63 Stations for $11MM CAPITOL INVESTMENTS: CEO Indicted for $880 Million Ponzi Scheme CARACO PHARMACEUTICAL: Receives NYSE Amex Notice of Non-Compliance CARMEL INVESTMENTS: Case Summary & 20 Largest Unsecured Creditors CARMELO A. GONZALEZ - ALPHA: Case Summary & Creditors List CARMELO A. GONZALEZ - BRAVO: Case Summary & Creditors List CELEBRITY RESORTS: Exclusivity Extended; Meyers Files Lawsuit CENTAUR LLC: Committee Finds Defects in Lender Collateral CHARLES DIETZ: Voluntary Chapter 11 Case Summary CHEMTURA CORP: Equity Committee Contemplates Alternative Plan CHEMTURA CORP: Seeks to Solicit Votes for Amended Plan CHEMTURA CORP: Files 2009 Report for Employee Savings Plan CHEMTURA CORP: Wins Court Okay to Settle Rebate Spat with Exxon CHRYSLER LLC: Arbitration with Auto Dealers Nears End CHRYSLER LLC: Dispute Arises on Placement of Comma CHRYSLER LLC: Idles Toledo, Ohio Assembly Plant CITIGROUP INC: To Release Second Quarter Earnings Today CITIGROUP INC: Admits Misclassifying Short-Term Trades CLINTON ADAMS: Case Summary & 8 Largest Unsecured Creditors COSI, INC: Gets Nasdaq Notice of Minimum Bid Price Non-Compliance DANIEL BRADFORD: Case Summary & 20 Largest Unsecured Creditors DBO HOLDINGS: S&P Affirms Corporate Credit Rating at 'B' DUN & BRADSTREET: CEO Dumps 6,948 Shares for Tax Purposes EMMIS COMMUNICATIONS: Director Bayh Reports Sale of Shares EMMIS COMMUNICATIONS: Third Point Raises Preferreds Stake to 11% EVERYCALL COMMUNICATIONS: Voluntary Chapter 11 Case Summary EXPRO HOLDINGS: Moody's Downgrades Corporate Family Rating to 'B3' EXTREME REALTY: Voluntary Chapter 11 Case Summary FIRST BANCORP: NYSE Notes of Stock Trading Under $1 for 30 Days FLOYD AND BEASLEY: To Shut Down for Good; 120 to Lose Jobs FRASER PAPERS: Generates Negative EBITDA of $0.8 Million GEMMA CALLISTE: Case Summary & 16 Largest Unsecured Creditors GENERAL GROWTH: Files Registration for Exchangeable Notes GENERAL GROWTH: Proposes Epiq as Plan Voting Agent GENERAL GROWTH: Seeking Approval of Disclosure Statement GENERAL MOTORS: Arbitration With Auto Dealers Nears End GENERAL MOTORS: Edmunds CEO Questions Rush to Have IPO GENERAL NUTRITION: Moody's Gives Pos. Outlook, Affirms 'B3' Rating GLOUCESTER ENGINEERING: Davis-Standard Wants Court to Block Sale GPX INTERNATIONAL: Customs Opposes Chapter 11 Liquidation Plan GRAY TELEVISION: Capital World Investors Reports 10.2% Stake GRAY TELEVISION: Offers to Exchange Unregistered 10-1/2% Notes GREEKTOWN HOLDINGS: Plan Takes Effect; Litigation Trust Formed GSI GROUP: Nets 80% from Rights Offering; July 23 Emergence Seen GULF FREEWAY: Wants Access to 1st International's Cash Collateral HEALTHCARE PROVIDERS: Organizational Meeting Set for July 23 HENRY YOUN: Case Summary & 12 Largest Unsecured Creditors HOTELS UNION SQUARE: To Be Sold to Host Venture JERMAX INC: Files for Chapter 11 Bankruptcy Protection JETBLUE AIRWAYS: Federated Investors Holds 3.8% of Shares JOEL HARDEN: Voluntary Chapter 11 Case Summary JUMPING BEAN: Case Summary & 20 Largest Unsecured Creditors LAKEVIEW AT CAROLINA: Court Denies Lender's Plea for Dismissal LAKEVIEW AT CAROLINA: Receivers Continues Management of Property LEHMAN BROTHERS: Suit Against JPMorgan Trial Date Set For 2012 LEHMAN BROTHERS: Examiner Discharged, May Still Give Assistance LEHMAN BROTHERS: Lawsuit vs. JPMorgan Set for Trial in 2012 LESLIE CONTROLS: Organizational Meeting to Form Panel on July 22 LINCOLNSHIRE CAMPUS: Official Residents' Committee Appointed LINCOLNSHIRE CAMPUS: Redwood Complains of Excessive Break-up Fee LINCOLNSHIRE CAMPUS: Wants BMC Group as Claims & Balloting Agent LOCATEPLUS HOLDINGS: Appoints Slaughter as Director of Operations LOCATEPLUS HOLDINGS: Taps Kaiser as Exec. VP & Chief Risk Officer MAJESTIC LIQUOR: Focus Management Appointed as Financial Advisor MEG ENERGY: Moody's Reviews 'B2' Rating on Senior Secured Loan MERUELO MADDUX: U.S. Trustee Adds 3 Members to Creditors Committee METRO-GOLDWYN-MAYER: Lenders Extend Waiver Until Sept. 15 METRO-GOLDWYN-MAYER: Lions Gate Said to Approach Creditors NEVADA STAR: Creditors Committee Taps Lewis R. Landau as Counsel NEXCEN BRANDS: Proposed Asset Sale Recommended by 2 Advisory Firms NEXITY FIN'L: Pursues Prepackaged Chapter 11 NEXTWAVE WIRELESS: April 3 Balance Sheet Upside-Down by $277.3MM NICHOLAS DAGNONE: Voluntary Chapter 11 Case Summary NORTEL NETWORKS: Avaya Not Challenging Terms of Sale NORTEL NETWORKS: Court OKs Fees for November to January NORTEL NETWORKS: Ernst & Young to Provide Additional Services NORTEL NETWORKS: U.S. Trustee Opposes Retiree Benefits Termination PARAMOUNT RESOURCES: Moody's Upgrades Corp. Family Rating to 'B3' PECAN HILLS: Case Summary & 6 Largest Unsecured Creditors PETER GETZ: Case Summary & 19 Largest Unsecured Creditors PARAMOUNT RESOURCES: Moody's Upgrades Corp. Family Rating to 'B3' POINT BLANK: Creditors Committee Seeks Trustee or Examiner PROLIANCE INTERNATIONAL: Cases Converted to Chapter 7 RICHWAL LLC: Case Summary & 15 Largest Unsecured Creditors RIMROD CORPORATION: Case Summary & 12 Largest Unsecured Creditors RODNEY JESSEN: Voluntary Chapter 11 Case Summary RONNY ST. LOUIS: Case Summary & 20 Largest Unsecured Creditors SABRE HOLDINGS: S&P Affirms 'B' Rating; Outlook Now Positive SALANDER-O'REILLY: Proprietor Faces State Jail Term SAVVIS INC: Moody's Assigns Corporate Family Rating at 'B1' SEDGEBROOK INC: U.S. Trustee Seeks Hearing on Ombudsman SEDONA DEVELOPMENT: U.S. Trustee Unable to Form Creditors Panel SEDONA DEVELOPMENT: Files Schedules of Assets and Liabilities SEQUA CORPORATION: Moody's Affirms 'Caa1'; Outlook Now Positive SHORES PROPERTIES: Case Summary & 20 Largest Unsecured Creditors SMITHFIELD FOODS: S&P Assigns 'B-' Rating on Senior Unsec. Debt SOUND WORLDWIDE: Significant Operating Loss Cue Going Concern SPHERIS INC: Receives Approval of Disclosure Statement STATION CASINOS: Can Send Plan to Creditors for Voting SUNWEST MANAGEMENT: District Court Confirms Reorganization Plan SYNERGY TRANSPORT: Case Summary & 15 Largest Unsecured Creditors TERESA GIUDICE: Faces Ch. 7 Trustee Suit for Hiding Assets TEXAS RANGERS: Now Has Ryan Group-Led Auction on August 4 TRIBUNE CO: Seeks to Limit LBO Debate During Plan Hearing TRUMP ENTERTAINMENT: New Owners Plan to Sell Casino WEYERHAEUSER COMPANY: Moody's Affirms Ba1 Corporate Family Rating WHITE ENERGY: Files Third Amended Chapter 11 Plan * June Bankruptcy Filings By Multi-Million Dollar Companies * Blockbuster Leads Companies Nearing Chapter 11 * Claims Trading Activity Declines in June, Says SecondMarket * Colony Capital Wins Bid for $1.85-Bil. in CRE Loans * FDIC OKs New Examination Authority in Wake of WaMu Failure * Regulators to Assist Fin'l Institutions Hit by Oil Spill * Alejandro Landa Joins Chadbourne & Parke Mexico City Office * Focus Management Names Robert Starzyk as Managing Director * Siller Wilk LLP to Change Name to Wilk Auslander LLP * BOOK REVIEW: The Executive Guide to Corporate Bankruptcy ********* 1800HOTELS4U, LLC: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------------- 1800Hotels4U, LLC, doing business as 1800Hotels.com, filed for Chapter 11 on July 13, 2010 (Bankr. M.D. Fla. Case No. 10-16648). Margaret Cashill and Michael Hinman, staff writers at Tampa Bay Business Journal, reports that 1800Hotels4U is seeking an injunction from the bankruptcy court in Tampa against some of its wholesalers, contending they have stopped supplying hotel rooms for 1800Hotels' customers. Affiliate Happy Duck Limited has filed a lawsuit against wholesalers. 1800Hotels4U estimated assets between $1,000,000 and $10,000,000 and liabilities are between $100,001 and $500,000. 1800HOTELS4U, LLC: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: 1800Hotels4U, LLC dba 1800Hotels.com 215 N. Howard Street, Suite 200 Tampa, FL 33606 Bankruptcy Case No.: 10-16648 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Judge: Caryl E. Delano Debtor's Counsel: Steven M. Berman, Esq. Tel: (813) 229-7600 Fax: (813) 229-1660 E-mail: sberman@slk-law.com Hugo S. de Beaubien, Esq. Tel: (813) 221-7425 E-mail: bdebeaubien@slk-law.com Shumaker, Loop & Kendrick, LLP 101 E. Kennedy Boulevard, Suite 2800 Tampa, FL 33602 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,001 to $500,000 The Company did not file a list of creditors together with its petition. The petition was signed by Graham J. Peakin, managing director. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Happy Duck Limited 10-16655 07/12/10 Assets: $1,000,001 to $10,000,000 Debts: $1,000,001 to $10,000,000 1ST FINANCIAL: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: 1st Financial Services,LLC 400 S. Colorado Blvd., Suite 820 Denver, CO 80246-1240 Bankruptcy Case No.: 10-27284 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Michael E. Romero Debtor's Counsel: Robert Padjen, Esq. 5290 DTC Parkway, Suite 150 Englewood, CO 80111 Tel: (303) 830-3173 E-mail: rp@jlrplaw.com Scheduled Assets: $1,490,000 Scheduled Debts: $3,515,247 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Jeffry C. Eisnaugle, owner/member. ADVANCED MICRO: FMR LLC Discloses 11.368% Equity Stake ------------------------------------------------------ Boston, Massachusetts-based FMR LLC and Edward C. Johnson 3d disclosed holding 77,229,219 shares or roughly 11.368% of the common stock of Advanced Micro Devices Incorporated as of June 30, 2010. Fidelity Management & Research Company, a wholly owned subsidiary of FMR LLC and an investment adviser registered under Section 203 of the Investment Advisers Act of 1940, is the beneficial owner of 33,796,418 shares or 4.975% of AMD common stock outstanding as a result of acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940. The number of AMD shares owned by the investment companies at June 30, 2010, included: -- 1,923,788 shares of Common Stock resulting from the assumed conversion of $54,020,000 principal amount of ADVANCED MICRO CV 6% 5/15 (35.6125 shares of Common Stock for each $1,000 principal amount of debenture); -- 3,104,163 shares of Common Stock resulting from the assumed conversion of $87,165,000 principal amount of ADVANCED MICRO CV 6% 5/15 (35.6125 shares of Common Stock for each $1,000 principal amount of debenture); -- 125,733 shares of Common Stock resulting from the assumed conversion of $2,531,000 principal amount of ADVANCED MICRO CONV 5.75% 8/12 (49.6771 shares of Common Stock for each $1,000 principal amount of debenture). 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. AAER INC: Initial CCAA Stay Period Extended Until Aug. 11 --------------------------------------------------------- AAER Inc. disclosed that pursuant to an order of the Quebec Superior Court issued on July 7, 2010, the initial order granted under the Companies' Creditors Arrangement Act (Canada) in favour of AAER on April 8, 2010, as subsequently extended from time to time by the court, has now been further extended until August 11, 2010 to allow for the filing of a plan of arrangement and for the holding of a creditors' meeting pursuant to the CCAA. Subject to certain conditions, 7549032 Canada Inc., a wholly-owned subsidiary of Pioneer Power Solutions Inc., has agreed to sponsor a plan of arrangement for the continuation of AAER. Upon approval of the Plan by AAER's creditors, Pioneer will contribute an amount of $450,000 to be used to fund the Plan and the filing of articles of reorganization. Under the Plan, Pioneer will subscribe to the new AAER equity and will become the Corporation's sole shareholder. Pursuant to the July 7 Order, Samson Belair / Deloitte Touche, in its capacity as monitor for AAER, will send to each creditor of the Corporation a notice of the creditors' meeting, a copy of the Plan and a proxy form for the creditors' meeting to be held on August 9, 2010 in Bromont, Quebec, for the purposes of considering and, if deemed advisable, approving the Plan. About AAER Inc. AAER Inc. -- http://www.aaer.ca-- is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 MW or more wind turbines principally for the North American market. Its strategy is to progressively build its products' components to provide a high level of reliability and competitive pricing to its customers. AAER uses a portfolio of proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange. ALTEGRITY INC: Moody's Affirms Corporate Family Rating at 'B3' -------------------------------------------------------------- Moody's Investors Service affirmed all existing ratings of Altegrity, Inc., including the B3 Corporate Family Rating. At the same time, Moody's assigned a B1 rating to Altegrity's proposed $550 million term loan and a Caa2 rating to $210 million in proposed senior unsecured notes. The outlook was raised to positive from stable. On June 6, 2010, Altegrity entered into a definitive agreement to acquire Kroll, Inc., a subsidiary of Marsh & McLennan Companies, Inc. (Baa2, stable), at a transaction valued at $1.13 billion plus fees and expenses. The acquisition is being financed by a new $550 million term loan, $210 million of privately placed senior unsecured notes, and approximately $450 million of new capital from the financial sponsor (Providence Equity Partners) consisting of $400 million in equity and $50 million of zero coupon junior subordinated notes. The transaction is anticipated to close in the third quarter. Moody's views the proposed transaction favorably as the large equity infusion reduces financial leverage by about 1.5 turns and materially improves cushion under financial covenants, which had become tight. The acquisition enhances the combined company's product diversity through the addition of Kroll's Ontrack brand for electronic data discovery and reduces Altegrity's reliance on Office of Personnel Management contracts. Additionally, potential synergies and scale may be realized in the screening and consulting segments, which are complementary businesses. While the Kroll acquisition is substantially larger than any of Altegrity's previous acquisitions and inherent integration risks exist in a transaction of this size, Moody's views such risks to be partially mitigated by the familiarity of Altegrity's management team with the Kroll business. Nonetheless, Altegrity's B3 CFR continues to be constrained by high financial leverage, minimal external liquidity, and the upcoming maturity of the OPM contracts. Pro forma for the transaction and reflecting Moody's standard adjustments, financial leverage is estimated at 6.8 times as of March 31, 2010 and is not expected to fall below 6 times in the near term. Altegrity's existing $90 million revolver has just $2 million available after consideration of letters of credit and is not being upsized as part of the transaction. However, liquidity is expected to be supported by modest cash flow generation over the next several quarters and a post-transaction cash balance of about $75 million. Altegrity's contracts with the OPM are scheduled to expire in 2011 and represent about 27% of the combined company's pro forma revenues. While Altegrity is reportedly the largest external provider of background investigative services to the US government and has long standing relationships with the OPM, both pricing and volumes could come under pressure through the recompete process. The positive outlook reflects the potential for earnings growth if the Kroll acquisition is successfully integrated and anticipated synergies are realized. Additionally, an improvement in macroeconomic conditions, such as employment trends and merger and acquisition activity, could lead to a rebound in demand for commercial pre-employment screening services and consulting services. Moody's assigned these ratings to the proposed new instruments: -- $550 million first lien term loan due 2015, B1 (LGD3, 31%) -- $210 million senior unsecured notes due 2015, Caa2 (LGD5, 81%) Moody's affirmed these ratings: -- Corporate Family Rating, B3 -- Probability of Default Rating, B3 -- $90 million first lien revolver due 2013, B1 (LGD3, 31%) -- $806 million first lien term loans due 2015 -- $290 million senior unsecured notes due 2015, Caa2 (LGD5, 81%) -- $150 million senior subordinated notes due 2016, Caa2 (LGD6, 94%) The ratings are subject to the conclusion of the proposed transaction and Moody's review of final documentation. The previous rating action on Altegrity occurred on January 5, 2009, when Moody's affirmed the ratings. The last issuer comment was released on June 8, 2010 after Altegrity's announcement of the Kroll acquisition. Altegrity, Inc, is a global screening and security solutions company headquartered in Falls Church, Virginia. Kroll, Inc., is a leading risk consulting company based in New York. On a pro forma basis, revenue for the twelve months ended March 31, 2010, was approximately $1.5 billion. AMELIA PLANTATION: Court Sets Noble-Led Auction for Aug. 23 ----------------------------------------------------------- CityBiz Real Estate says the U.S. Bankruptcy Court for the Middle District of Florida set an Aug. 23, 2010 auction for Amelia Island Plantation's assets. According to the report, the Company has tapped The Plasencia Group Inc. to conduct the auction. Noble Hospitality Fund Acquisitions LLC has emerged as the stalking horse bidder at $47.4 million. The deadline to prequalify as a bidder is July 22. Amelia Island Plantation owns a 1,350-acre resort on Amelia Island in Florida. The resort has 249 rooms and three golf courses. The property owes $28.4 million on a first mortgage held by an affiliate of Prudential Retirement Insurance & Annuity Co. The collateral is said by the resort to be worth $46 million. Amelia Island filed for Chapter 11 on Nov. 13, 2009 (Bankr. M.D. Fla. Case No. 09-09601). The petition says assets and debt both exceed $50 million. AMERICAN APPAREL: FMR LLC No Longer Holds Shares ------------------------------------------------ FMR LLC and Edward C. Johnson 3d disclosed that they no longer hold shares of American Apparel Inc. as of July 9, 2010. American Apparel, Inc. (NYSE Amex: APP) is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. The Company operated 280 retail store locations as of March 31, 2010. It has operations in several countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. American Apparel also operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce Web site at http://www.americanapparel.com/ American Apparel, Inc., on June 23, 2010, entered into a Third Amendment to its Credit Agreement, dated as of March 13, 2009, among the Company, in its capacity as borrower, certain subsidiaries of the Company, in their capacity as facility guarantors, Wilmington Trust FSB, in its capacity as administrative agent and collateral agent, Lion Capital (Americas) Inc., as a lender, Lion/Hollywood L.L.C., as a lender, and other lenders from time to time party thereto. The Third Amendment amends the Lion Credit Agreement to, among other things, replace the Total Debt to Consolidated EBITDA financial covenant with a minimum Consolidated EBITDA financial covenant, tested on a quarterly basis. In May, American Apparel informed the Securities and Exchange Commission it would delay the filing of its quarterly report on Form 10-Q for the period ended March 31, 2010. American Apparel said it needs additional time to complete certain reviews and analyses with respect to the financial statements and related disclosures to be included in its Form 10-Q. AMERICAN APPAREL: Ron Burkle Pays $5.9 Million for 6% Stake ----------------------------------------------------------- Ronald W. Burkle, managing member of The Yucaipa Companies LLC, disclosed acquiring 4,310,300 shares of American Apparel Inc. Common Stock in various transactions in June. The number of shares represents approximately 6.0% of American Apparel Common Stock. He may be deemed the direct beneficial owner of the shares. The shares were bought between June 10 and 21. The total amount of funds required to acquire the Common Stock was $5,929,547.45, net of commissions. All funds were personal funds. Mr. Burkle currently holds his shares of Common Stock for investment purposes. However, Mr. Burkle intends to closely monitor the Company's performance and may modify his plans in the future depending on his evaluation of various factors, including the investment potential of the Common Stock, the Company's business prospects and financial position, other developments concerning the Company and its competitors, opportunities that may be available to the Company, the price level and availability of the Common Stock, available opportunities to acquire or dispose of the Common Stock, realize trading profits or minimize trading losses, conditions in the securities markets and general economic and industry conditions, reinvestment opportunities, developments relating to the business of Mr. Burkle and other factors deemed relevant by Mr. Burkle. Mr. Burkle may communicate with, and express his views to, other persons regarding the Company, including, without limitation, the board of directors and management of the Company, other shareholders of the Company and potential strategic or financing partners. Mr. Burkle may in the future exercise any and all of his rights as shareholders of the Company in a manner consistent with his equity interests. Mr. Burkle may take such actions with respect to his holdings in the Company as he deem appropriate in light of circumstances existing from time to time. In addition, Mr. Burkle may from time to time enter into or unwind hedging or other derivative transactions with respect to the Common Stock. About American Apparel American Apparel, Inc. (NYSE Amex: APP) is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. The Company operated 280 retail store locations as of March 31, 2010. It has operations in several countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. American Apparel also operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce Web site at http://www.americanapparel.com/ American Apparel, Inc., on June 23, 2010, entered into a Third Amendment to its Credit Agreement, dated as of March 13, 2009, among the Company, in its capacity as borrower, certain subsidiaries of the Company, in their capacity as facility guarantors, Wilmington Trust FSB, in its capacity as administrative agent and collateral agent, Lion Capital (Americas) Inc., as a lender, Lion/Hollywood L.L.C., as a lender, and other lenders from time to time party thereto. The Third Amendment amends the Lion Credit Agreement to, among other things, replace the Total Debt to Consolidated EBITDA financial covenant with a minimum Consolidated EBITDA financial covenant, tested on a quarterly basis. In May, American Apparel informed the Securities and Exchange Commission it would delay the filing of its quarterly report on Form 10-Q for the period ended March 31, 2010. American Apparel said it needs additional time to complete certain reviews and analyses with respect to the financial statements and related disclosures to be included in its Form 10-Q. AMERICAN INT'L: Said to Weigh Giving Stake in Rescue Vehicles ------------------------------------------------------------- American International Group Inc. is considering repaying part of its U.S. bailout by handing over stakes in mortgage-linked bonds that pushed the insurer to the brink of collapse, Bloomberg News reported, citing three people with knowledge of the plan. According to the report, the assets are contained in Maiden Lane II and Maiden Lane III, entities created in 2008 as part of the U.S. effort to remove toxic securities from the New York-based insurer. AIG's proposal reflects the firm's confidence in the rebound in value of these holdings, said the unidentified people. About AIG Inc. Based in New York, American International Group, Inc., is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies provide life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. In September 2008, the Federal Reserve Bank created an $85 billion credit facility to enable AIG to meet increased collateral obligations consequent to the ratings downgrade, in exchange for the issuance of a stock warrant to the Fed for 79.9% of the equity of AIG. The credit facility was eventually increased to as much as $182.5 billion. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. AMERICAN MEDIA: Reaches Debt-to-Equity Agreement with Bondholders ----------------------------------------------------------------- American Media, Inc., said early this month that it has reached an agreement with 90% of its bondholders for them to exchange AMI's bonds for shares of AMI common stock. After the transaction, AMI's debt will be reduced by $200 million and its leverage reduced from 7.2x to 5.1x. The transaction gives AMI significant flexibility, with $50 million of free cash flow on a pro forma basis. The Company plans on launching a debt-for-equity exchange in July and anticipates it will be concluded in August. Moelis & Company served as AMI's financial advisor in the transaction. AMI Chairman, President and CEO David J. Pecker said, "I am very grateful to our bondholders for having the confidence and faith in AMI to consummate this transaction." AMI meanwhile said July 12 that it has made available at its corporate Web site certain information, including the average estimated monthly circulation of certain key magazine titles during the period July 2009 through June 2010, as well as the recent levels of the Company's Revolving Credit Facility and cash balances. The information is available at http://www.americanmediainc.com/bankinfo/ About American Media, Inc. American Media, Inc. is the leading publisher of celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company. In June 2010, Standard & Poor's Ratings Services lowered its rating on Boca Raton, Fla.-based American Media Inc. to 'D' from 'CCC.' The ratings downgrade reflects American Media's ongoing deferral of its May 1, 2010 interest payment on the 14% notes. The Company stated that 75% of noteholders consented that the May 1, 2010 interest payment be deferred until June 21, 2010. AMR CORP: Nears British Airways Alliance as EU Backs Deal --------------------------------------------------------- Bloomberg News reports that AMR Corp.'s American Airlines moved a step closer to completing a trans-Atlantic alliance wit British Airways Plc that will control almost 50% of flights at London's Heathrow Airport. According to the report, the American-British Airways plan recently won European Union antitrust approval and awaits clearance from the U.S. Transportation Department. The venture would give the carriers equal footing with other alliances that coordinate pricing, flights and marketing across the Atlantic. "This is very, very important for the way BA and AMR operate and gives them some significant advantages, which competitors such as Air France and Lufthansa have already been benefiting from," said Gert Zonneveld, an analyst at Panmure Gordon in London who rates British Airways as "hold." About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. At March 31, 2010, the Company had total assets of $25.525 billion against total current liabilities of $8.241 billion, long-term debt, less current maturities of $9.861 billion, obligations under capital leases, less current obligations of $559 million, pension and postretirement benefits of $7.531 billion, and other liabilities, deferred gains and deferred credits of $3.225 billion, resulting in stockholder's deficit of $3.892 billion. * * * AMR carries a 'CCC' issuer default rating from Fitch Ratings. It has 'Caa1' corporate family and probability of default ratings from Moody's. It has 'B-' corporate credit rating, on watch negative, from Standard & Poor's. ARROW AIR: Has Cash Use Approval for Liquidation ------------------------------------------------ Bill Rochelle at Bloomberg News reports that Arrow Air Inc. won interim approval to use cash representing collateral for secured lenders' claims. Cash may only be used in accordance with an approved budget. The final hearing on the cash use is set for July 22. The report notes that the cash collateral order allows the official committee of unsecured creditors to spend $50,000 investigating whether the lenders' liens are valid. Otherwise, the committee can't spend any of the lenders' cash collateral to sue secured creditors. Miami, Florida-based Arrow Air, Inc., provides scheduled and charter cargo logistics services between the United States, Central and South America, and the Caribbean. The Company is a wholly owned subsidiary of Arrow Air Holdings Corp., which is 95% owned by an affiliate of MatlinPatterson Global Opportunities Partners III. Arrow Air, Inc., dba Arrow Cargo, filed for Chapter 11 bankruptcy protection on June 30, 2010 (Bankr. S.D. Fla. Case No. 10-28831). Jordi Guso, Esq., who has an office in Miami, Florida, represents the Debtor in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. The Chapter 11 case is Arrow's third. Arrow halted operations the day before the Chapter 11 filing. Arrow Air intends to liquidate under Chapter 1. AVENTINE RENEWABLE: Distributes Stock as Part of Plan ----------------------------------------------------- Aventine Renewable Energy Holdings, Inc., has made a pro rata quarterly distribution of shares of the company's common stock to holders of the company's former 10% senior unsecured notes due 2017, or the old notes, and to holders of allowed general unsecured claims against the bankruptcy estate of the company. In connection with the quarterly distribution of shares, 599,947 shares of common stock are being distributed to holders of old notes and 43,425 shares are being distributed to holders of allowed general unsecured claims. The shares are being distributed pursuant to the terms of the Debtors' First Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code Dated as of January 13, 2010, confirmed by the U.S. Bankruptcy Court for the District of Delaware on February 24, 2010, under which the company emerged from Chapter 11 bankruptcy protection on March 15, 2010. Including this quarterly distribution the company will have issued approximately 7.4 million shares of common stock, with approximately 1.2 million shares left for further distributions. As of July 14, 2010, approximately 20 claims of recovery from the company's bankruptcy case remain disputed, although the claims continue to be reduced by virtue of the ongoing claims reconciliation process. The CUSIP number of the shares of common stock of the company is 05356X700. About Aventine Renewable Pekin, Illinois-based Aventine Renewable Energy Holdings, Inc. (Pink Sheets: AVRN) -- http://www.aventinerei.com/-- is a producer and marketer of ethanol to many leading energy companies in the United States. In addition to ethanol, Aventine also produces distillers grains, corn gluten meal, corn gluten feed, corn germ and brewers' yeast. Morgan Stanley Capital Partners IV bought Aventine in May 2003 from Williams Cos. Aventine had a public offering in May 2006. The Morgan Stanley group retained 28% of the stock at year's end. The Company and its affiliates filed for Chapter 11 on April 7, 2009 (Bankr. D. Del. Lead Case No. 09-11214). Joel A. Waite, Esq., and Ryan M. Bartley, Esq., at Young, Conaway, Stargatt & Taylor, serves as bankruptcy counsel to the Debtors. Davis Polk & Wardwell is special tax counsel and Houlihan, Lokey, Howard & Zukin, Inc., is the financial advisor. Garden City Group, Inc., has been engaged as claims agent. Scott D. Cousins, Esq., and Donald J. Detweiler, Esq., at Greenberg Traurig, LLP, serve as counsel to the official committee of unsecured creditors. When it filed for bankruptcy protection from its creditors, Aventine Renewable listed between $100 million and $500 million each in assets and debts. The Court confirmed on February 24, 2010, the Company's plan of reorganization. The Company emerged from Chapter 11 on March 15, 2010. AXIA INC: Sets Conversion to Chapter 7 Effective Aug. 1 ------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Axia Inc. is now seeking approval for conversion of its Chapter 11 case to Chapter 7 effective Aug. 1. Axis, now formally named ATT011 Inc., doesn't have enough cash to pay creditors whose claims must be paid in full in a Chapter 11 plan. Axia, according to the report, completed the sale of its business in March to a group including existing lenders and shareholders. The purchasers paid for the business with a $9 million note payable to the senior term loan lenders and 21.5% of the equity earmarked for the subordinated secured term loan. About Axia Inc. Axia Inc. and Ames Taping manufacture automatic taping and drywall finishing tools. Ames' principal business is the rental and service of its fleet of over 220,000 ATF tools under its flagship Bazooka(R) brand name through its network of over 200 Company- owned stores, franchised locations, field vans, and rental stations located throughout the U.S. and Canada. Ames also sells ATF tools in the U.S. and Canada under the broadly recognized brand name TapeTech(R) through a network of over 200 independent dealers, and internationally, under the brand name Premier International(R). The Companies are controlled by Aurora Equity Partners. Axia Inc. and three affiliates filed for Chapter 11 on Dec. 14, 2009 (In re Ames Holding Corp., Bankr. D. Del. Case No. 09-14406). Assets at Oct. 30, 2009, were $178 million. Liabilities include $69.2 million on a senior secured term loan and a $91.8 million subordinated secured term loan. Attorneys at Richards, Layton & Finger, P.A., represents the Debtors. BLACK CROW: Has Until November 8 to File Reorganization Plan ------------------------------------------------------------ Radio-Info.com relates that a bankruptcy court gave Black Crow until Nov. 8, 2010, to create and file a Chapter 11 plan of reorganization. The Company convinced the court that it business has stabilized and the interests of lender GE Capital are now adequately protected. The Company, the report says, found a new lender that agreed to offer up to $1.5 million. The court required the Company to provide updates to GE Capital about pacing for ad sales, collections and disbursement on a weekly basis. About Black Crow Daytona Beach, Florida-based Black Crow Media Group, LLC, owns and operates 17 FM and 5 AM radio stations in Daytona Beach, Live Oak, Valdosta, Huntsville, Alabama, and Jackson, Tennessee. The Company filed for Chapter 11 bankruptcy protection on January 11, 2010 (Bankr. M.D. Fla. Case No. 10-00172). The Company's affiliates -- Black Crow Media, LLC, et al. -- also filed separate Chapter 11 petitions. Mariane L. Dorris, Esq., and R Scott Shuker, Esq., at Latham Shuker Eden & Beaudine LLP, assist 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. BOSTON PROPERTIES: Fitch Affirms Preferred Stock Rating at 'BB+' ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings on Boston Properties Inc. and Boston Properties L.P.: -- Issuer Default Rating at 'BBB'; -- Unsecured revolving credit facility at 'BBB'; -- Senior unsecured notes at 'BBB'; -- Exchangeable senior unsecured notes at 'BBB'; -- Preferred Stock (indicative) at 'BB+'. The Rating Outlook is Stable. The rating affirmation is supported by a strong management track record, a high quality portfolio of assets, manageable lease expirations, a good liquidity position, sizable pool of unencumbered assets, reasonable leverage, and good access to a range of capital sources. The ratings are balanced by challenging market fundamentals, a projected decline in fixed charge coverage in 2010, and sizable exposure to tenants in the legal community. The company also maintains a fairly concentrated operational footprint with some asset concentration, which provides some additional inherent risk. The company's CBD properties compete for the highest profile tenants in the regions in which they operate and many of these properties serve as flagship locations for the largest tenants. The occupancy rates on high quality properties tend to remain above prevailing market occupancies throughout cycles, as some tenants look to take advantage of relatively weak market conditions to improve the quality of their office space. BXP's in-service portfolio was 92.9% leased at March 31, 2010. Additionally, the company's revenue is supported by long-term leases in place. Over the next several years, between 5% and 8% of rents are scheduled to expire annually, ensuring that the company is not overly exposed to leasing risk at any given time, absent tenant bankruptcies. The company maintains a good liquidity position. Pro forma for the company's $700 million senior unsecured notes offering in April 2010 and assuming the refinancing of 80% of pro rata JV secured debt, for the period April 1, 2010 through Dec. 31, 2011, the company's sources of liquidity (unrestricted cash, availability under the company's credit facilities and expected retained cash flows from operating activities after dividends) divided by uses of liquidity (debt maturities, recurring capital expenditures and development costs) result in a liquidity coverage ratio of 1.4 times, assuming BXP's unsecured revolving credit facility with a final maturity date in August 2011 is reduced by one-third. The company maintains a sizable unencumbered asset pool that includes properties from across the portfolio to support its unsecured borrowings. As of March 31, 2010, there were 100 assets in the company's unencumbered pool. Capitalizing 2010 annualized cash NOI generated by the unencumbered pool at a stressed capitalization rate of 8% yielded unencumbered asset coverage of approximately 1.7x at March 31, 2010. On a net unsecured debt basis, which subtracts the company's excess cash from its unsecured debt, the ratio improves to 2.3x. The company's leverage is in a range that is reasonable for the ratings. Using trailing 12 months recurring operating EBITDA on a GAAP basis, Fitch calculated the company's net debt to recurring operating EBITDA to be 5.9x. However, Fitch projects that this ratio will increase to between 6.0x and 7.0x in 2011 as recurring operating EBITDA declines over the next 18 months. Fitch anticipates that this ratio will decline to closer to 6.0x in 2012 as newly developed space is placed in service. The company has continued to demonstrate its ability to raise capital in size. Since June 2008, BXP has raised approximately $5.5 billion of debt and equity capital for its own account and on behalf of its joint ventures, demonstrating strong interest from both lenders and equity investors. While the company has elevated unsecured debt maturities in 2013 when 22.1% of its pro rata share of debt matures, the maturity schedule is manageable. While showing some improvement in late 2009 and the first half of 2010, office market fundamentals generally remain fairly challenging and these conditions have pressured the terms of both new and renewal leases. This is illustrated in the level of free rent as well as tenant improvement and leasing commission costs that the company is providing to tenants. Fitch projects that BXP's 2010 capital expenditures, which are disproportionately driven by leasing-related costs and are affected by the length of the lease term, to roughly double as a percentage of recurring operating EBITDA over 2009 levels. The combination of high capital expenditures, a sizable level of leased space remaining under free rent periods in 2010, and increased interest expense from newly issued debt is expected to pressure Fitch-defined fixed charge coverage (defined as recurring EBITDA less the sum of capital expenditures and straight line rents divided by total interest incurred) ratios in 2010. Fitch projects that this ratio will be approximately 1.6x in 2010, before rising to 1.9x in 2011 and 2.2x in 2012 as free rent, capital expenditures, and cash interest expense decline, while newly developed space is added to the portfolio. Continued pressure on this metric beyond 2010 could signal potential negative rating momentum. The company also has a fairly high proportion of legal tenants in its portfolio. As of March 31, 2010, tenants in this segment represented approximately 27% of total portfolio square footage. While many of the company's largest tenants are high profile firms, employment within these firms has generally declined over the past two years, increasing the risk that they could seek to reduce their space footprints when leases expire. Notably, the company is also exposed to asset concentration risk. The company generates over 40% of its pro rata cash NOI from eight assets in New York, including four wholly owned assets and four assets that are held in joint ventures in which the company holds a 60% interest. These large assets expose the company to performance issues at individual assets. These factors may have a positive impact on the ratings and/or Outlook: -- Fitch-defined fixed charge coverage sustaining above 2.5x (coverage was 2.1x and 1.2x for the trailing 12 months and quarter ended March 31, 2010, respectively); -- Net debt to recurring operating EBITDA sustaining below 5.3x (leverage was 5.9x as of ended March 31, 2010); -- A meaningful increase in the size and asset diversity of the portfolio. These factors may have a negative impact on the ratings and/or Outlook: -- Fitch-defined fixed charge coverage sustaining below 1.7x; -- Net debt to recurring operating EBITDA sustaining above 7.0x; -- A liquidity shortfall. BROWN PUBLISHING: Creditors Sue to Block Lenders' Credit Bid ------------------------------------------------------------ The Official Committee of Unsecured Creditors appointed in the bankruptcy cases of The Brown Publishing Company and its affiliates asked the U.S. Bankruptcy Court for the Eastern District of New York to prohibit Brown Publishing's first lien lender bank group from credit bidding its debt in an auction for the Debtors' assets, netDockets Blog reports. The first lien lenders are owed roughly $72.7 million as of the bankruptcy filing. According to netDockets, the Debtors have received authority to conduct an auction on July 19, with initial bids due on July 16. The Bankruptcy Court will consider approval of the results of the auction on July 22. The Creditors Committee, the report notes, is seeking to prohibit the debtors' first lien lenders from utilizing a credit bid of their secured debt to participate in the process, alleging that the lenders' liens and claims asserted against some of the subsidiary debtors "were fraudulent transfers that can be avoided and thus the Bank Group's liens and claims are subject to a bona fide dispute -- indeed they are in serious doubt." Specifically, the report says, the Creditors Committee asserts that Brown Media Holdings Company and its five subsidiaries were created after the other debtors entered into the first lien credit facility and received the proceeds thereof. The Committee, the report relates, said that the six Brown Media entities were created to "acquire and hold various business publications in New York, Ohio, Iowa and Texas," but those acquisitions were financed by "a new $33 million loan from a new lending group. netDockets Blog discloses that therefore, the motion claims that "Media and its subsidiaries received no value - much less reasonably equivalent value - for becoming direct obligors on the approximately $75 million of pre-existing debt of [Brown Publishing Co.] and pledging their newly acquired assets as security for the debt of [Brown Publishing Co.] - and were either insolvent when they entered into the September 2007 [agreements whereby they became co-borrowers and guarantors of the pre- existing first lien debt] or, undoubtedly, rendered them insolvent by the assumption of the debt of [Brown Publishing Co.]." While the Creditors Committee has not yet formally challenged the first lien lenders' claims and liens, it has until August 23, to do so pursuant to the terms of the bankruptcy court's order approving the Debtors' DIP financing facility, the report notes. The Committee acknowledges that it is still "in the process investigating the Bank Group's alleged liens and security interests." 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. BUILDERS FINANCIAL: Case Summary & 17 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Builders Financial Corporation 225 W. Wacker Drive, Suite 2000 Chicago, IL 60606 Bankruptcy Case No.: 10-31180 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Bruce W. Black Debtor's Counsel: David K. Welch, Esq. Crane Heyman Simon Welch & Clar 135 S Lasalle Street, Suite 3705 Chicago, IL 60603 Tel: (312) 641-6777 Fax: (312) 641-7114 E-mail: dwelch@craneheyman.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Company's list of 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-31180.pdf The petition was signed by Mitchell Saywitz, president. BULK PETROLEUM: Convenience Stores Acquires 63 Stations for $11MM ----------------------------------------------------------------- CSP.net, citing court document, reports that Convenience Stores Leasing & Management LLC purchased a group of 63 Bulk Petroleum Corp. gas station sites for $11 million. According to the report, the 63 sites purchased include 24 stores in Kentucky, 15 stores in Iowa, 15 stores in Indiana, seven stores in Michigan and one store each in Illinois and Missouri. Bulk Petroleum is expected to continue to supply gasoline to a majority of the sold sites. Other buyers approved by the court include: * KMT Inc., which bought one store in Evansville, Ind., for $668,729. * PSR Petro Mart Inc., which bought a store in Rock Island, Ill., for $425,000. * Star Fuels LLC, which bought one store in Paducah, Ky., for $817,216. * T. Minimart Inc., which bought one store in Evansville, Ind., for $792,332. * VIP Petroleum Inc., which bought one store in Edinburgh, Ind., for $710,000. About Bulk Petroleum Mequon, Wisonsin-based Bulk Petroleum Corp. supplies gasoline to over 200 gas stations throughout the Midwest. It buys gasoline from oil companies and then sells it to individual gas stations. The company filed for Chapter 11 bankruptcy protection on February 18, 2009 (Bankr. E.D. Wis. Case No. 09-21782). Jerome R. Kerkman, Esq., at Kerkman & Dunn assists the company in its restructuring effort. The company listed $50 million to $100 million in assets and $50 million to $100 million in debts. Bulk Petroleum's debtor-affiliates that filed separate Chapter 11 petitions include Charanjeet Illinois Stations No. 6, Inc., Darshan's Wisconsin Stations Eight, LLC, Gurpal Wisconsin Stations, LLC, Interstate Petroleum Products, Inc., Rakhra Wisconsin E-Z Go Stations Three, Inc., and Sartaj"s Illinois Nine, LLC. CAPITOL INVESTMENTS: CEO Indicted for $880 Million Ponzi Scheme --------------------------------------------------------------- A federal grand jury indicted Nevin Shapiro, former owner and Chief Executive Officer of Capitol Investments USA Inc., for allegedly overseeing a $880 million Ponzi scheme linked to his purported wholesale grocery distribution business, U.S. Attorney Paul J. Fishman announced. The indictment charges Shapiro, 41, of Miami Beach, Fla., with using Capitol to solicit hundreds of millions of dollars from individuals who believed they were investing in Shapiro's grocery distribution business. The indictment alleges that Capitol had no active wholesale grocery business during the relevant time period, and that Shapiro used new investor funds to make principal and interest payments to existing investors, as well as to fund his own lavish lifestyle. Shapiro was previously charged by complaint and surrendered to special agents of the FBI and the Internal Revenue Service (IRS) on April 21, 2010, in Newark. He has been in federal custody since that time. The complaint charged Shapiro with one count each of securities fraud and money laundering; the indictment adds one count of conspiracy to commit securities and wire fraud, two counts of wire fraud and one count of money laundering. The indictment also seeks forfeiture of any money or property identified as proceeds from the offenses. According to the indictment and other documents filed in this case in federal court in Newark, from January 2005 through November 2009, Shapiro solicited investors from New Jersey and throughout the United States through Capitol, telling them that he would use their money to fund his wholesale grocery distribution business. To induce those investors, Shapiro directed others to create and show to the investors documents fraudulently touting Capitol's profitability. Those documents included: financial statements profit and loss figures that fraudulently represented that Capitol's wholesale grocery business was generating tens of millions of dollars in annual sales; personal and business tax returns for Shapiro and Capitol that also fraudulently reflected those sales; and numerous invoices fraudulently reflecting transactions between Capitol and other companies in the wholesale grocery business. As a result of these solicitations, more than 60 victim investors, including some from New Jersey, sent more than $880 million to Shapiro and Capitol during this time period. Beginning in January 2009, Shapiro and Capitol failed to make required principal and interest payments to investors. At the time, Shapiro told investors, among other things, that the payments were not being made because Capitol's vendors were late in making payments, that Capitol was suffering from cash flow problems and that Shapiro's accountant was on vacation. Shapiro misappropriated approximately $35 million in investor funds for his personal use, including paying millions of dollars in debts resulting from illegal gambling on sporting events. Using investor money, he also spent more than $400,000 for floor seats to watch the Miami Heat professional basketball team; approximately $26,000 per month for mortgage payments on his residence in Miami Beach, recently appraised at approximately $5.3 million; approximately $7,250 per month for payments on a $1.5 million dollar Riviera yacht; and approximately $4,700 per month for the lease of a Mercedes-Benz automobile. Shapiro also used stolen funds to purchase a pair of diamond- studded handcuffs, which he gave as a gift to a prominent professional athlete, as well as to make $150,000 in donations to the athletic program of a university in the Miami area. As a result of a 10-year gift to the university, the Nevin Shapiro Student-Athlete Lounge at the university was named for the defendant. Shapiro and Capitol were forced into bankruptcy in November 2009. At that time, they owed more than $100 million to victim investors. If convicted, Shapiro faces the following maximum potential penalties per count of the indictment: Charge Maximum Potential Penalty Per Count Count One - conspiracy to commit securities fraud and wire fraud: Five years in prison; fine of $250,000 or twice the gross gain or loss from the offense Count Two - securities fraud: 20 years in prison; fine of $5 million Counts Three and Four - wire fraud: 20 years in prison; fine of $250,000 or twice the gross gain or loss from the offense Counts Five and Six - money laundering: 10 years in prison; fine of $250,000 or twice the gross gain or loss from the offense U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, and special agents of the IRS - Criminal Investigation Division, under the direction of Special Agent in Charge William P. Offord, for the continuing investigation which led to the indictment. Fishman also thanked the U.S. Securities and Exchange Commission's Miami Regional Office, under the direction of Eric Bustillo. The government is represented by Assistant U.S. Attorneys Justin W. Arnold and Jacob T. Elberg of the U.S. Attorney's Office, Criminal Division in Newark. This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. The charges and allegations made in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty. CARACO PHARMACEUTICAL: Receives NYSE Amex Notice of Non-Compliance ------------------------------------------------------------------ Caraco Pharmaceutical Laboratories, Ltd., disclosed that on July 12, 2010, NYSE Amex notified the Company that it was not in compliance with the requirement under its continued listing standards that its audit committee be comprised of three independent members. On July 9, 2010, the Company informed NYSE Amex of its non-compliance with Section 803(B)(2)(a) of NYSE Amex Company Guide following the resignation of Mr. Madhava Reddy as a director of the Company on July 6, 2010, leaving two independent directors on the Company's audit committee. Additionally, the Company notified NYSE Amex that it intends, in conformance with NYSE Amex rules, to add another independent director to the audit committee within 180 days of the resignation. Detroit-based Caraco Pharmaceutical Laboratories, Ltd., develops, manufactures, markets and distributes generic pharmaceuticals to the nation's largest wholesalers, distributors, drugstore chains and managed care providers. CARMEL INVESTMENTS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Carmel Investments and Development, Inc. 14220 SW 136 Street # J Miami, FL 33186 Bankruptcy Case No.: 10-29883 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: A. Jay Cristol Debtor's Counsel: D. Jean Ryan, Esq. P.O. Box 561507 Miami, FL 33256 Tel: (305) 275-2733 E-mail: ryandunncourtmail@ryan-dunn.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb10-29883.pdf The petition was signed by Carmelo A. Gonzalez, president. CARMELO A. GONZALEZ - ALPHA: Case Summary & Creditors List ---------------------------------------------------------- Debtor: Carmelo A. Gonzalez Revocable Family Trust - Alpha c/o Carmelo Gonzalez 14220 SW 136 Street Miami, FL 33186 Bankruptcy Case No.: 10-29878 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: Laurel M. Isicoff Debtor's Counsel: D. Jean Ryan, Esq. P.O. Box 561507 Miami, FL 33256 Tel: (305) 275-2733 E-mail: ryandunncourtmail@ryan-dunn.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb10-29878.pdf The petition was signed by Carmelo A. Gonzalez, trustee. CARMELO A. GONZALEZ - BRAVO: Case Summary & Creditors List ---------------------------------------------------------- Debtor: Carmelo A. Gonzalez Revocable Family Trust - Bravo c/o Carmelo A. Gonzalez 14220 SW 136 Street Miami, FL 33186 Bankruptcy Case No.: 10-29879 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: Robert A. Mark Debtor's Counsel: D. Jean Ryan, Esq. P.O. Box 561507 Miami, FL 33256 Tel: (305) 275-2733 E-mail: ryandunncourtmail@ryan-dunn.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb10-29879.pdf The petition was signed by Carmelo A. Gonzalez, trustee. CELEBRITY RESORTS: Exclusivity Extended; Meyers Files Lawsuit ------------------------------------------------------------- Judge Arthur Briskman of the U.S. Bankruptcy Court for the Middle District of Florida held a hearing on July 8 in connection with the Chapter 11 case of Celebrity Resorts LLC. As reported in the Troubled Company Reporter on April 26, 2010, secured creditor, Farmington Bank, sought for the dismissal or, conversion of the case, citing "no reasonable likelihood of rehabilitation" of the Debtor. Another party, Neil Meyers, sought for the dismissal of the case, citing that it was filed by Jared Meyers without proper authority. netDockets Blog reports that a scheduling conference on the motion filed by Farmington Bank, will be held on July 21, 2010. Previously, the July 21st hearing had been scheduled to be an evidentiary hearing. As reported by netDockets, the Neil Meyer's motion to dismiss was withdrawn without prejudice. netDockets says that the motion to determine whether the Chapter 11 cases were filed without proper authority by Jared Meyers is now apparently going to be addressed instead in a newly-filed adversary proceeding. An adversary complaint filed by Neil Meyers asks the bankruptcy court to (1) enter a declaratory judgment that Neil Meyers is the owner of Celebrity Resorts and the other debtors and (2) issue an injunction prohibiting Jared Meyers from exercising control over the Debtors. The report relates that the complaint alleges that Jared Meyers "created a confusing array of business entities" and "claims to have transferred certain membership interests and assets to other entities over which he claims to exercise ownership and control," but that his attempted transfers were ineffective for at least four reasons. The court's proceeding memo from the hearing states that the Debtors have 10 days to file an answer to the complaint and that the court will set an initial evidentiary hearing in approximately 60 days. NetDockets also reported that the bankruptcy court granted Celebrity Resorts' request for an extension of the exclusive periods to file and solicit acceptances of a plan, overruling an objection filed by Textron Financial Corporation. The exclusive period to propose a Chapter 11 plan is extended to August 6, 2010. As to Celebrity Resorts' application to employ Joseph R. Panzl as special counsel, the bankruptcy court appears to have taken this application under advisement after admitting the Debtor's hearing exhibit. Orlando, Florida-based Celebrity Resorts, LLC, filed for Chapter 11 bankruptcy protection on March 5, 2010 (Bankr. M.D. Fla. Case No. 10-03550). R Scott Shuker, at Latham Shuker Eden & Beaudine LLP, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. CENTAUR LLC: Committee Finds Defects in Lender Collateral --------------------------------------------------------- Bill Rochelle at Bloomberg News reports that the Official Committee of Unsecured Creditors for Centaur LLC is seeking permission to sue secured creditors to question the validity of their liens. The Creditors Committee believes there are defects in the security interests on $192 million in collateral claimed by the first-and second-lien lenders. The Committee also believes that guarantees of secured debt given by subsidiaries are fraudulent transfers that may be voided in bankruptcy. A hearing is scheduled July 21. According to the report, Centaur will also seek approval at a hearing on July 28 for auction and sales procedures pertaining to the Fortune Valley Hotel & Casino 40 miles west of Denver. The initial bid will come from Luna Gaming Central City LLC. The price is $7.5 million cash plus a $2.5 million note, less adjustments. Centaur wants other bids five days before an auction on Aug. 23. About Centaur LLC 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 and 12 affiliates 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. Subsidiaries Centaur PA Land LP and Valley View Downs LP filed for bankruptcy reorganization in October 2009 to keep alive a project to develop a racetrack in Pennsylvania. CHARLES DIETZ: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Charles D. Dietz dba Residential Appraisal Group fdba Cucina Latella, USA dba Dietz Design Group Frutta Bellissimo 45744 Appian Way Indian Wells, CA 92210 Bankruptcy Case No.: 10-31667 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Central District of California (Riverside) Judge: Catherine E. Bauer Debtor's Counsel: Daniel C. Sever, Esq. 41750 Rancho Las Palmas, Suite N-2 Rancho Mirage, CA 92270 Tel: (760) 773-0720 Fax: (760) 773-0732 E-mail: dansever@severlegal.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of creditors together with its petition. The petition was signed by the Debtor. CHEMTURA CORP: Equity Committee Contemplates Alternative Plan ------------------------------------------------------------- The Official Committee of Equity Holders for Chemtura Corp. asks Judge Gerber to terminate the Debtors' exclusive periods to file a Chapter 11 plan and solicit acceptances for that plan. The current version of Chemtura's Chapter 11 Plan, the Equity Committee complains, is unconfirmable despite the length of time afforded to the Debtors through multiple extensions of the Exclusive Periods. For this reason, the Equity Committee seeks the termination of the Exclusive Periods so that it can file an alternative plan. Jay M. Goffman, Esq., at Skadden Arps Slate Meagher & Flom LLP, in New York, reveals that the Equity Committee has been working on an alternative plan for the Debtors. He tells Judge Gerber that the Equity Committee's Alternative Plan is substantially better than the one proposed by the Debtors because (1) it is fully funded; (2) pays all creditors in full; and (3) provides substantially more value to the current equity holders. Mr. Goffman further discloses that the Alternative Plan maximizes value for all stakeholders, and is supported by: (i) commitments from existing stockholders by at least $470,000,000 in a new equity investment, and (ii) a letter from UBS Securities LLC, indicating its confidence of being able to raise the debt financing called for by the Alternative Plan. The Equity Committee complains that the Debtors' Plan is fatally flawed because it sells short current equity holders by providing them only a 5% ownership stake in the Reorganized Debtors if the Equity Committee votes in favor of the Plan. "That 5% is not enough because the Debtors currently acknowledge in their Chapter 11 Plan of Reorganization that there is value for equity based on persistent efforts of a robust Equity Committee," Mr. Goffman emphasizes. As the Debtors acknowledge that the equity holders are the fulcrum security, whose interests therefore should be paramount, they should be faithfully executing their fiduciary duties by actively supporting and sponsoring the superior Equity Committee Plan, Mr. Goffman insists. "Instead," he laments, "the Debtors have chosen to align themselves with their creditors, whose support they procured by proposing a plan that would distribute to creditors more value than the amount of their properly allowed claims -- and this improper largesse is proposed to be paid out of the equity holders' pockets." The Equity Committee further contends that the Debtors' Plan is tailored to hit management's "comfort zone" rather than maximize value. Thus, in order to lower the Company's leverage, the Debtors propose transferring substantial value out of the equity holder's pockets in order to make unnecessary up front settlement payments to creditors whose claims clearly should ride through bankruptcy or be reinstated, Mr. Goffmann argues. Mr. Goffman further argues that continued Exclusivity serves no purpose in the Debtors' Chapter 11 Cases except to pressure the Equity Committee and its constituency into accepting the Debtors' Plan. He reasons that equity holders who are the rightful owners of Chemtura should not be marginalized when there are superior plan structures available. "Courts terminate exclusivity when a debtor uses it as a sword, forcing stakeholders to accept its view of an appropriate plan instead of taking the time to negotiate a consensual plan," Mr. Goffman says. Along with its Exclusivity Termination Motion, the Equity Committee attached copies of an Alternative Plan Term Sheet and the UBS Letter, full-text copies of which are available for free at: http://bankrupt.com/misc/ChemAltPlnTrmSht.pdf http://bankrupt.com/misc/ChemUBSLttr.pdf The Equity Committee summarized the salient terms of its Alternative Plan. They include: * Infusion of $470 million in new equity; * Provision of more of the reorganized equity to current stockholders, even absent participation in the contemplated rights offering under the Equity Committee Plan; * Reinstatement of the 2016 Notes, thereby eliminating a $50 million "make whole" settlement, and preserving a valuation asset of the estate; * Elimination of $20 million in full payment with respect of the 2026 Notes since the holders of this low coupon debt will receive a benefit from repayment and thus have no valid claim to damages; * Emergence with a sustainable amount of leverage at $1.3 billion (consisting of $800 million in new debt and reinstating $500 million of the 2016 Notes), which provides existing stockholders with a greater recovery than the 9% under the Debtors' current Plan; * Reinstatement of diacetyl claims and payment of those claims in the ordinary course; * Foregoing $50 million in contributions to the Debtors' U.S. pension plans (which were only proposed to pacify the PBGC -- a member of the UCC), which is neither required by law nor likely to result in a forced termination if not paid; and * Grant to existing stockholders of the opportunity to invest $135 million more in a rights offering than is contemplated by the Debtors' current Plan. In a separate filing, the Equity Committee asked the Court to shorten the time for notice of the hearing on its Exclusivity Termination Motion so that a hearing can be held on July 21, 2010, at 9:00 a.m. Eastern Daylight Time, with objections due no later than Friday, July 16, 2010, at 4:00 p.m. Eastern Daylight Time. It is necessary for the Court to consider the Termination Motion no later than the time set for a consideration of the adequacy of the Debtors' Disclosure Statement, the Equity Committee asserted. The Equity Committee held that if the Court grants the Termination Motion, it will proceed to file a plan and disclosure statement and in that case, it can work with the Debtors to coordinate solicitation of acceptances of each plan at minimal cost to the Debtors' estates. On the other hand, the Equity Committee said if the Court does not shorten time, then its ability to coordinate solicitation with the Debtors of its Alternative Plan will be strained and costs of solicitation will increase. Court Shortens Notice Period Upon review, Judge Gerber grants the Equity Committee's request for a shortened notice period. Accordingly, the Court is set to convene a hearing on July 21 to consider the Equity Committee's Termination Motion. However, the Court is setting July 19, at 9:00 a.m. Eastern Daylight Time as the deadline to file objections to the Termination Motion instead of the July 16 date asked by the Equity Committee. The Equity Committee's counsel is given until 9:00 a.m. on July 20 to file and serve a response to any objection asserted. About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHEMTURA CORP: Seeks to Solicit Votes for Amended Plan ------------------------------------------------------ In connection with the filing of their amended Chapter 11 Plan and Disclosure Statement, Chemtura Corporation and its debtor affiliates seek the establishment of uniform procedures to govern the solicitation and tabulation of votes on the Plan. The Debtors specifically ask Judge Gerber to approve: a. a timeline for the solicitation of votes on the Plan; b. proposed procedures for soliciting and tabulating votes on the Plan; c. the materials to be included in the solicitation packages, including the appropriate form of ballot with respect to classes entitled to vote on the Plan; d. procedures to govern the contemplated rights offering under the Plan and the corresponding form of the rights exercise; and e. forms of notices and objection procedures that will be used in connection with confirmation of the Plan. The Debtors urge the Court to set July 21, 2010 -- also the day of the Disclosure Statement hearing -- as the record date or the date for determining (i) holders of claims and interests entitled to receive solicitation packages; (ii) holders of claims and interests entitled to vote on the Plan; and (iii) whether claims have been properly transferred to an assignee pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedure so that the assignee can vote. The Debtors ask the Court to require all holders of Claims and Interests entitled to vote on the Plan to complete, execute and return their Ballots so that they are actually received by the Voting and Claims Agent or the Securities Voting Agent, on or before September 9, 2010. The Debtors propose to set September 16, 2010, as the date for the hearing at which the Court will consider confirmation of the Plan. Objections to the confirmation of the Plan are due no later than September 9. The Amended Plan Chemtura on July 9 filed a revised Plan of Reorganization. Chemtura says that, as with the June version of the Plan, the revised Plan provides the potential to satisfy all creditors' claims in full, as well as offering value to equity holders. The revised Plan provides that in order to resolve certain asserted diacetyl liabilities, Chemtura's Canadian subsidiary, Chemtura Canada Co./Cie, will be filing for protection along with the current U.S. Debtors under Chapter 11 of the Bankruptcy Code, together with a recognition proceeding in Canada under the Companies' Creditors Arrangement Act. Chemtura maintains that it remains on track to emerge from Chapter 11 protection in the coming months. Under the Amended Plan, the New Chemtura Total Enterprise Value consists of $2.05 billion plus, total cash available to satisfy allowed unsecured claims, plus the amount of cash to be retained after the Effective Date, which is expected to be approximately $125 million. Redlined copies of the Chemtura Amended Plan and Disclosure Statement is available for free at: http://bankrupt.com/misc/ChemAmPlanRed.pdf http://bankrupt.com/misc/ChemAmDSRed.pdf About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHEMTURA CORP: Files 2009 Report for Employee Savings Plan ---------------------------------------------------------- Chemtura Corporation filed an annual report for its Employee Savings Plan annual report for the year ended December 31, 2009, with the U.S. Securities and Exchange Commission on June 24, 2010. The Employee Savings Plan sponsored by Chemtura is a defined contribution plan covering eligible employees of the Company and its participating subsidiaries. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974. The plan administrator of the Savings Plan is the Chemtura Corporation Employee Benefits Committee. Fidelity Investments is the trustee and record keeper of the Plan. The investments of the Plan are held in a trust arrangement. Although the Employee Savings Plan was established with the intention that it will continue indefinitely, Chemtura retains the right to discontinue its contributions at any time or to terminate the Plan, subject to the provisions of ERISA. A full-text copy of Chemtura's 2009 Employee Savings Plan Report, filed on Form 11-K with the U.S. Securities and Exchange Commission Report, is available for free at: http://researcharchives.com/t/s?6656 Chemtura Corporation Chemtura Corporation Employee Savings Plan Statements of Net Assets Available for Plan Benefits December 31 ---------------------------- 2009 2008 ------------ ------------ Cash $2,228,997 $112,760 Investment, at fair value: Common collective trusts 62,278,045 91,193,720 Mutual funds 228,030,909 177,053,950 Common stock 8,677,339 5,509,489 Participant loans 5,927,360 6,550,120 ------------ ------------ Total investments 304,913,653 280,307,279 ------------ ------------ Net assets available for plan 307,142,650 280,420,039 benefits at fair value Adjustment from fair to contract 782,467 2,994,421 value for interest in collective trusts relating to fully benefit responsive investment contracts ------------ ------------ Net assets available for plan $307,925,117 $283,414,460 benefits ============ ============ Chemtura Corporation Chemtura Corporation Employee Savings Plan Statements of Changes in Net Assets Available for Plan Benefits For the year ended December 31, 2009 Additions: Participant contributions $10,761,736 Rollover contributions 439,457 Employer contributions 7,080,287 Net appreciation in fair value 57,302,463 of investments Dividend and interest income 6,080,793 ------------- Total additions $81,664,736 Deductions: Distributions to participants 56,768,640 Administrative fees 385,439 ------------- Total deductions 57,154,079 ------------- Net increase 24,510,657 Net assets available for plan benefits, beg. 283,414,460 ------------- Net assets available for plan benefits, end $307,925,117 ============= About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHEMTURA CORP: Wins Court Okay to Settle Rebate Spat with Exxon --------------------------------------------------------------- Chemtura Corp. has won court approval to bury the hatchet with creditor Exxon Mobil Corp. over prepetition claims Chemtura owed the oil giant under a rebate program in which it participated before it became insolvent, according to Bankruptcy Law360. Law360 says Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York signed off on the parties' settlement stipulation Tuesday. About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: Arbitration with Auto Dealers Nears End ----------------------------------------------------- Dee-Ann Durbin at The Associated Press reports that all of the General Motors and Chrysler dealers threatened with closure as part of the companies' bankruptcy proceedings will soon know their fate. The AP says federally appointed arbitrators are down to just 35 cases out of nearly 1,600 dealers who appealed the closures, according to India Johnson, senior vice president of the American Arbitration Association, the dispute resolution service that handled the cases. The AP relates hearings are set to wrap up Wednesday, with the final decisions due by the end of next week. According to the AP, of the cases that remained before arbitrators, judgments have been mixed. The AP relates Chrysler spokesman Mike Palese said 56 cases had been decided in the company's favor, while dealers have prevailed in 21 cases. GM won't release numbers until the arbitration process has ended. About Chrysler Group Based in Auburn Hills, Michigan, Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep, Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars brand vehicles and products. Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: Dispute Arises on Placement of Comma -------------------------------------------------- Joseph Checkler at Dow Jones Daily Bankruptcy Review reports that two lawyers in Chrysler LLC's bankruptcy disputed the placement of some commas at a hearing Thursday. At stake is $16,000 and an additional $124,894 in legal fees, the terms of a lemon law case settlement between Chrysler and California resident Bradley E. Wolff just days before Chrysler filed for bankruptcy in April 2009. According to Dow Jones, Mr. Wolff's lawyer, Larry R. Hoddick, Esq., at Caronna, Johnson & Hoddick LLP, says that post- bankruptcy, Chrysler agreed it was liable for lemon law claims, "including but not limited to cases resolved pre-petition, or in the future, on vehicles manufactured by the Debtors in the five years prior to the Closing." Mr. Wolff's 2004 Dodge Ram was made more than five years before the bankruptcy filing. Steven L. Holley, Esq., at Sullivan & Cromwell, a lawyer for Chrysler, told Chief Judge Arthur J. Gonzalez at the hearing that the wording is clear: Chrysler is only liable for lemon law damages on cars less than five years old, for cases resolved both pre-petition and in the future (No comma after after "pre- petition"). Mr. Holley said in court, "Under normal rules of English grammar [the comma] refers to everything that precedes it." According to Dow Jones, Mr. Hoddick's argument is that the lack of a comma is a "sleight of hand" that absolves Chrysler from paying some claims settled before the bankruptcy filing, including Mr. Wolff's. Mr. Hoddick contends that if the clause, "in the future," were set off by commas, Chrysler would be liable to pay settlements like Mr. Wolff's made before the bankruptcy filing. "They cannot just remove a comma and then say they don't have to pay all the cases pre-petition," said Mr. Hoddick, speaking to the court on the phone from California, Dow Jones reports. About Chrysler Group Based in Auburn Hills, Michigan, Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep, Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars brand vehicles and products. Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: Idles Toledo, Ohio Assembly Plant ----------------------------------------------- Dow Jones Newswires' Jeff Bennett reports that Chrysler Group LLC temporarily idled its Toledo, Ohio, assembly plant Thursday after part shipments were delayed from a hurricane-damaged area in northeast Mexico. Chrysler said production will resume Friday. The plant makes the Jeep Wrangler and employs about 1,300 workers. About Chrysler Group Based in Auburn Hills, Michigan, Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep, Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars brand vehicles and products. Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CITIGROUP INC: To Release Second Quarter Earnings Today ------------------------------------------------------- Citigroup Inc. will issue its second quarter results via press release at approximately 8:00 AM on July 16, 2010. At 11:00 AM (EDT), results will be reviewed via live webcast and teleconference. The press release, webcast and presentation materials will be available at http://www.citigroup.com/citi/fin A replay of the webcast will be available at http://www.citigroup.com/citi/fin/pres.htm To dial-in to the live teleconference, please call (877) 700-4194 (for U.S. and Canada callers) or (706) 679-8401 (for international callers). Conference code: 78856010 Meanwhile, John Gerspach, Chief Financial Officer, and Eric Aboaf, Treasurer, will conduct a second quarter 2010 Fixed Income Investor Review at 8:30 AM (EDT) on July 22, 2010. The review will be available live via webcast and teleconference. The webcast and presentation materials will be available at http://www.citigroup.com/citi/fin A replay of the webcast will be available at http://www.citigroup.com/citi/fin/pres.htm To dial-in to the live teleconference, please dial: US & Canada: (800) 309-5794 International Callers: (706) 902-3256 Conference code: 80154837 Telephone lines will open at 8:15 AM (EDT). About Citigroup Inc. Based in New York, Citigroup Inc. (NYSE: C) -- is a global diversified financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has roughly 200 million customer accounts and does business in more than 140 countries. Citigroup's businesses are aligned in three reporting segments: (i) Citicorp, which consists of Regional Consumer Banking (in North America, EMEA, Asia, and Latin America) and the Institutional Clients Group (Securities and Banking, including the Private Bank, and Transaction Services); (ii) Citi Holdings, which consists of Brokerage and Asset Management, Local Consumer Lending, and a Special Asset Pool; and (iii) Corporate/Other. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughly $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received $45 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is selling assets to repay the bailout funds. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. CITIGROUP INC: Admits Misclassifying Short-Term Trades ------------------------------------------------------ Michael Rapoport at Dow Jones Daily Bankruptcy Review reports that Citigroup Inc. for the first time has publicly detailed one way it dressed up its balance sheet and incorrectly hid risk from the public. In a filing made public Thursday, Citigroup explained how it made an accounting mistake that hid billions of dollars in debt from investors by misclassifying certain short-term trades as "sales" when they should have been classified as borrowings. Dow Jones recalls Citi had acknowledged in a securities filing in May that it had misclassified as much as $9.2 billion of short- term repurchase agreements, or "repos," at times over the past three years, but it had provided few details. According to Dow Jones, the Citi letter -- dated April 13, 2010, but made public Thursday -- said the improperly-accounted-for trades were structured to help some of its overseas trading units meet balance-sheet limits set by the bank. Citi says it should have booked the trades as borrowings because the bank demanded additional collateral from trading partners when it wasn't supposed to. According to Dow Jones, Citi said in a statement that "a very limited number of our business units used this type of transaction in very small amounts. The impact of these transactions was never large enough to have a material impact on Citigroup's financial statements or our published regulatory capital ratios, including our leverage ratios." Citi said it had designed some repo trades, primarily in the U.K. and Japan, to be accounted for as sales instead of secured borrowings to assist those trading desks "in complying with internal limits" on the amount of the bank's balance sheet made available to the global trading desks. Because of internal changes at the bank, Citi said in the letter, it inadvertently collected collateral on some U.K. repo trades when it wasn't allowed to, thus voiding the sale treatment. The bank now classifies all such transactions as borrowings. Repos are short-term financing arrangements that allow banks to take bigger risks on securities trades. Classifying the transactions as sales instead of borrowings allows a bank to take assets off its balance sheet and thus reduce its reported leverage, or assets as a multiple of equity capital. About Citigroup Inc. Based in New York, Citigroup Inc. (NYSE: C) -- is a global diversified financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has roughly 200 million customer accounts and does business in more than 140 countries. Citigroup's businesses are aligned in three reporting segments: (i) Citicorp, which consists of Regional Consumer Banking (in North America, EMEA, Asia, and Latin America) and the Institutional Clients Group (Securities and Banking, including the Private Bank, and Transaction Services); (ii) Citi Holdings, which consists of Brokerage and Asset Management, Local Consumer Lending, and a Special Asset Pool; and (iii) Corporate/Other. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughly $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received $45 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is selling assets to repay the bailout funds. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. CLINTON ADAMS: Case Summary & 8 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Clinton Adams 14410 Woodmore Oaks Court Bowie, MD 20721 Bankruptcy Case No.: 10-25688 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court District of Maryland (Greenbelt) Judge: Thomas J. Catliota Debtor's Counsel: Donald L. Bell, Esq. The Law Office of Donald L. Bell, LLC 9701 Apollo Drive, Suite 481 Upper Marlboro, MD 20774 Tel: (301) 773-8631 Fax: (301) 773-8634 E-mail: donbellaw@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 8 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-25688.pdf The petition was signed by the Debtor. COSI, INC: Gets Nasdaq Notice of Minimum Bid Price Non-Compliance ----------------------------------------------------------------- Cosi, Inc., had received notice from the Listing Qualifications Department of the Nasdaq Stock Market indicating that, for the last 30 consecutive business days, the bid price for the Company's common stock had closed below the minimum $1.00 per share required for continued inclusion on the Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1). The notification letter states that the Company will be afforded 180 calendar days, or until January 4, 2011, to regain compliance with the minimum bid price requirement. In order to regain compliance, shares of the Company's common stock must maintain a minimum bid closing price of at least $1.00 per share for a minimum of ten consecutive business days. The notification letter has no effect at this time on the listing of the Company's common stock on the Nasdaq Global Market. Cosi's common stock will continue to trade on the Nasdaq Global Market under the symbol "COSI." If the Company does not regain compliance by January 4, 2011, Nasdaq will provide written notification to the Company that the Company's common stock will be delisted. At that time, the Company may appeal Nasdaq's delisting determination to a Nasdaq Listing Qualifications Panel. Alternatively, the Company may be eligible for an additional grace period if it satisfies all of the requirements, other than the minimum bid price requirement, for initial listing on the Nasdaq Capital Market set forth in Nasdaq Listing Rule 5505. To avail itself of this alternative, the Company would need to submit an application to transfer its securities to the Nasdaq Capital Market. The Company intends to actively monitor the bid price for its common stock between now and January 4, 2011, and will consider all available options to resolve the deficiency and regain compliance with the Nasdaq minimum bid price requirement. About Cosi, Inc. Cosi, Inc. is a national premium convenience restaurant chain that has developed featured foods built around a secret, generations- old recipe for crackly crust flatbread. This artisan bread is freshly baked in front of customers throughout the day in open flame stone hearth ovens prominently located in each of the restaurants. Cosi's warm and urbane atmosphere is geared towards its sophisticated, upscale, urban and suburban guests. There are currently 86 Company-owned and 58 franchise restaurants operating in eighteen states, the District of Columbia and the United Arab Emirates. The Cosi(R) vision is to become America's favorite premium convenience restaurant by providing customers authentic, innovative, savory food while remaining an affordable luxury. DANIEL BRADFORD: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Daniel J. Bradford 330 E. Warm Springs Las Vegas, NV 89119 Bankruptcy Case No.: 10-22920 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Terry V. Leavitt, Esq. 601 S. 6th Street Las Vegas, NV 89101 Tel: (702) 385-7444 Fax: (702) 385-1178 E-mail: terry@leavittbk.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-22920.pdf The petition was signed by the Debtor. DBO HOLDINGS: S&P Affirms Corporate Credit Rating at 'B' -------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its ratings on Beachwood, Ohio-based tubular products manufacturer DBO Holdings Inc., including its 'B' corporate credit rating. S&P also removed all ratings from CreditWatch with negative implications, where they were placed on April 15, 2010, because of expected weakness in cushion relative to covenants. The outlook is positive. The 'B' corporate credit rating on DBO Holdings reflects the company's weak business risk profile and aggressive financial risk profile. This is evidenced by the cyclical nature of the company's end markets, exposure to volatile steel prices, a significant reliance on nonresidential construction spending, and high debt leverage. "S&P's rating and outlook are based on its expectation that DBO Holdings will likely be able to maintain compliance with the 5.5x net debt leverage covenant governing its credit facility in the near term, after cushion relative to that covenant declined to around 6.5% as of March 31, 2010," said Standard & Poor's credit analyst Sherwin Brandford. S&P's rating and outlook also incorporate its expectation that credit measures will improve over the next several quarters as a result of the weaker quarters rolling off of the rolling-12-month calculations and future RTM EBITDA remaining at a level that supports debt leverage being maintained in line with the 'B' corporate credit rating. DUN & BRADSTREET: CEO Dumps 6,948 Shares for Tax Purposes --------------------------------------------------------- Mathew Sara, Chairman, President and CEO at The Dun & Bradstreet Corp., disclosed disposing of 6,948 company shares on July 12, 2010. The transaction involved the withholding of shares to pay taxes due on restricted stock awards. Mr. Sara directly holds 40,970.2827 after the transaction. Mr. Sara also indirectly holds 378.453 common shares held in the Company's 401(k) plan as of June 30, 2010. The stake includes 2.149 shares acquired under the 401(k) plan since the date of Mr. Sara's last ownership report. Mr. Sara also indirectly holds 3,218.0014 common shares held in the Company's employee stock purchase plan as of July 13, 2010, and includes 15.2914 shares acquired under the ESPP since the date of Mr. Sara's last ownership report. Short Hills, N.J.-based The Dun & Bradstreet Corporation (NYSE: DNB) -- http://www.dnb.com/-- is a provider of credit information on businesses and corporations. D&B's global commercial database contains more than 150 million business records. The Company's balance sheet at March 31, 2010, showed $1.700 billion in assets and $2.478 billion of liabilities, for a shareholders' deficit of $778.3 million. EMMIS COMMUNICATIONS: Director Bayh Reports Sale of Shares ---------------------------------------------------------- Susan B. Bayh, a director at Emmis Communications Corp., disclosed selling company shares in several transactions in October 2009. According to a Form 4 document Ms. Bayh filed Wednesday with the Securities and Exchange Commission, she sold off 6,585 shares of the Company's Class A common stock for between $1.30 and $1.36 on October 21, 2009. The transactions pared her stake to 59,200 shares. About Emmis Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates radio stations and magazine publications in the U.S. and in Europe. At February 28, 2010, the Company had $498,168,000 in total assets; $487,246,000 in total liabilities and $140,459,000 in Series A Cumulative Convertible Preferred Stock; and shareholders' deficit of $178,959,000. At February 28, 2010, the Company had non-controlling interests of $49,422,000 and total deficit of $129,537,000. As of April 15, 2010, the Company had not paid the Preferred Stock dividend for six consecutive quarterly periods. * * * In April 2009, Moody's cut its corporate family rating on the Company to 'Caa2'. In May 2009, S&P raised its corporate credit rating on the Company to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating at the Company's request. EMMIS COMMUNICATIONS: Third Point Raises Preferreds Stake to 11% ---------------------------------------------------------------- New York-based Third Point LLC bought 105,057 shares of Emmis Communications Corporation's 6.25% Series A Cumulative Convertible Preferred Stock on July 9, 2010. The Third Point Funds expended an aggregate of $2,284,821.66 of their own investment capital to make their most recent acquisition of the Preferred Stock held by them, which Preferred Stock is convertible into Class A Common Stock. The Third Point Funds also used their own investment capital to make all prior acquisitions of the Preferred Stock held by them. New York-based Third Point and its CEO Daniel S. Loeb disclosed that as of July 9, 2010, they may be deemed to beneficially own 321,057 shares of the Preferred Stock, which are convertible into 783,379 shares of Class A common stock. Accordingly, Third Point holds 11.4% of the outstanding Preferred Stock -- and may be deemed to hold 2.3% of Class A shares. Third Point serves as investment manager or adviser to a variety of hedge funds and managed accounts, and controls the investing and trading in securities of the Funds. On July 9, 2010, Double Diamond Partners LLC, Zazove Aggressive Growth Fund, L.P., R2 Investments, LDC, DJD Group LLC, Third Point LLC, the Radoff Family Foundation, Bradley L. Radoff, and LKCM Private Discipline Master Fund, SPC -- the Locked-Up Holders -- entered into a written lock-up agreement pursuant to which, among other things, each of them agreed, subject to certain exceptions, to (1) vote or cause to be voted any and all of its Preferred Stock against the Proposed Amendments; (2) restrict dispositions of Preferred Stock; (3) not enter into any agreement, arrangement or understanding with any person for the purpose of holding, voting or disposing of any securities of the Company, or derivative instruments with respect to securities of the Company; (4) consult with each other prior to making any public announcement concerning the Company; and (5) share certain expenses incurred in connection with their investment in the Preferred Stock, in each case during the term of the Lock-Up Agreement. As a result of the Lock-Up Agreement, the Locked-Up Holders may be deemed to have formed a group within the meaning of Rule 13d-5(b) under the Act. On May 25, 2010, Emmis executed an agreement and plan of merger, that if consummated would result in the Company being taken private by Mr. Smulyan. The Merger Agreement provides for a series of transactions, including (a) a cash tender offer for the Company's Class A Common Stock, (b) an offer to exchange all outstanding Preferred Shares for new 12% PIK Senior Subordinated Notes due 2017, and (c) a solicitation of proxies to amend certain terms of the Preferred Shares. Adoption of the Proposed Amendments described in the Merger Agreement requires the affirmative vote of holders of at least 2/3 of the outstanding Preferred Shares, voting as a separate class. About Emmis Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates radio stations and magazine publications in the U.S. and in Europe. At February 28, 2010, the Company had $498,168,000 in total assets; $487,246,000 in total liabilities and $140,459,000 in Series A Cumulative Convertible Preferred Stock; and shareholders' deficit of $178,959,000. At February 28, 2010, the Company had non-controlling interests of $49,422,000 and total deficit of $129,537,000. As of April 15, 2010, the Company had not paid the Preferred Stock dividend for six consecutive quarterly periods. * * * In April 2009, Moody's cut its corporate family rating on the Company to 'Caa2'. In May 2009, S&P raised its corporate credit rating on the Company to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating at the Company's request. EVERYCALL COMMUNICATIONS: Voluntary Chapter 11 Case Summary ----------------------------------------------------------- Debtor: EveryCall Communications, Inc. dba All American Home Phone dba Local USA 4315 Bluebonnet Blvd., Suite A Baton Rouge, LA 70809 Bankruptcy Case No.: 10-11054 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Middle District of Louisiana (Baton Rouge) Debtor's Counsel: Brandon A. Brown, Esq. Stewart Robbins & Brown, LLC 247 Florida Street P.O. Box 66498 Baton Rouge, LA 70896 Tel: (225) 231-9998 Fax: (225) 709-9467 E-mail: bbrown@stewartrobbins.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by John H. Brydels, Jr., Debtor's chief financial officer, director. EXPRO HOLDINGS: Moody's Downgrades Corporate Family Rating to 'B3' ------------------------------------------------------------------ Moody's Investors Service downgraded the corporate family rating and the probability of default rating of Expro Holdings UK 3 Limited to B3 from B2. It also downgraded the rating of the senior secured US$1.4 billion notes due 2016 to B2 from B1. The rating outlook is negative. The downgrades reflect Expro's somewhat weak performance for the year ending March 2010, with revenue and Ebitda below Moody's expectations, and net leverage (as adjusted by Moody's) being higher than expected at 7.3x. It also incorporates Moody's view that the company's near-term market outlook remains uncertain, and the expectation that Expro will now generate negative free cash flow at least in 2010/11. Revenue for 2009/10 of US$1.02 billion was 19% below the previous year. Much of this decline may be attributed to ongoing weak global economic conditions, along with the fact that the average crude price of US$70/bbl was lower than expected by the company. Expro's order backlog has also reduced materially over the past year, although the company believes that it now sees evidence of market recovery through increased customer enquiries and bids. Whereas Moody's had previously anticipated that Expro would generate positive free cash flow in 2010/11, this no longer appears likely. The continuing rollup of a material portion of interest on the mezzanine facility (balance of US$802 million at March 31, 2010) will also further increase the company's indebtedness. Although Expro improved its working capital in 2009/10, the anticipated negative free cash flow also weakens the company's liquidity profile. Expro reported cash of US$193 million at March 31, 2010, and it has about US$70 million available on its US$100 million bank revolver. There is no debt amortization or refinancing requirement until the revolver matures in December 2014. Covenant compliance is currently acceptable. The consequences of the Macondo oil spill in the Gulf of Mexico on the deepwater oil industry also remain uncertain. Although Expro's direct activities in the Gulf of Mexico are limited, both the near-term and longer-term implications for the oil exploration industry are unclear. Moody's acknowledges that over time demand for Expro's services may increase as a result of increased industry focus on safety and regulation; but this may follow a period of reduced exploration activity as the oil industry adjusts to the post-Macondo world. The negative outlook reflects the fact that the credit is weakly positioned in the B3 rating category, given the combination of high leverage and negative anticipated free cash flow. The last credit rating announcement for Expro was on December 3, 2009, when a B2 CFR was assigned with a stable outlook, and a (P)B1 rating was assigned to the senior secured notes. Headquartered in the United Kingdom, Expro is a leading provider of services and products to the upstream oil and gas industry. About 25% of revenue is from onshore markets and about 75% from offshore markets. In July 2008, the company was bought by a private equity consortium led by Candover and GS Capital Partners VI Fund, L.P. For the year ending March 2010, the Expro group reported revenue of about US$1.02 billion. EXTREME REALTY: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Extreme Realty, LLC P.O. Box 269 West Chatham, MA 02669 Bankruptcy Case No.: 10-17554 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: William C. Hillman Debtor's Counsel: Norman Novinsky, Esq. Novinsky & Associates 1350 Belmont Street, Suite 105 Brockton, MA 02301 Tel: (508) 559-1616 Fax: (508) 588-9306 E-mail: nnovinsky@msn.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 According to the schedules, the Company says that assets total $1,100,000 while debts total $952,400. The Company's list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Douglas Meservey, president. FIRST BANCORP: NYSE Notes of Stock Trading Under $1 for 30 Days --------------------------------------------------------------- First BanCorp disclsoed that on July 9, 2010, it received notice from the New York Stock Exchange that the Corporation has fallen below the NYSE's continued listing standard regarding price criteria for its common stock, as a result of the Corporation's common shares having an average closing price of less than $1.00 per share over a consecutive 30 trading-day period. The Corporation will inform the NYSE in writing of its intent to seek to cure the deficiency. The Corporation has six months from the date of the NYSE notice to have a closing share price and a 30 trading-day average share price of at least $1.00 in order to avoid the delisting of its shares. If the Corporation fails to become compliant, the NYSE may delist its common stock. The Corporation's business operations and Securities and Exchange Commission reporting requirements are unaffected by this notice. About First BanCorp First BanCorp -- http://www.firstbankpr.com-- is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp and FirstBank Puerto Rico operate under U.S. banking laws and regulations. The Corporation operates a total of 176 branches, stand-alone offices and in-branch service centers throughout Puerto Rico, the U.S. and British Virgin Islands, and Florida. Among the subsidiaries of FirstBank Puerto Rico are First Federal Finance Corp., a small loan company; FirstBank Puerto Rico Securities, a broker-dealer subsidiary; First Management of Puerto Rico; and FirstMortgage, Inc., a mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Insurance VI, an insurance agency, and First Express, a small loan company. First BanCorp's common and publicly-held preferred shares trade on the New York Stock Exchange under the symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE. FLOYD AND BEASLEY: To Shut Down for Good; 120 to Lose Jobs ---------------------------------------------------------- Matt Quillen at The Daily Home reports that Floyd and Beasley Transfer Company's president Jeff Floyd said the company will shut down for good this week, leaving about 120 employees jobless. The Company, which offers truck loading services, has been struggling financially. Floyd and Beasley Transfer Company, Inc. is a family owned transportation company located in Sycamore, Alabama. FRASER PAPERS: Generates Negative EBITDA of $0.8 Million -------------------------------------------------------- Fraser Papers Inc. reported financial results for the first quarter ended April 10, 2010. As a result of the sale of the Company's specialty papers assets to Twin Rivers Paper Company Inc. and the sale of the Company's pulp mill in Thurso, Quebec in April 2010, the Company has classified its specialty papers business and Thurso pulp mill as "held for sale" as at December 31, 2009 and April 10, 2010. The operating results of these operations have been disclosed as "discontinued operations" in the Statements of Operations. The Company generated an EBITDA loss of C$0.8 million from continuing operations in the first quarter of 2010 compared to positive EBITDA of C$2.4 million in first quarter of 2009. Net loss for the first quarter amounted to C$13.1 million or C$0.26 per share compared to a loss of C$16.7 million or $0.33 per share in the first quarter of 2009. During the first quarter of 2010, the Company recorded an impairment charge related to its paper mill in Gorham, New Hampshire of C$7.5 million or C$0.15 per share. Fraser Papers has filed its first quarter 2010 financial statements, including the related management discussion and analysis, on SEDAR at http://www.sedar.com As a result, the Company is now in compliance with its continuous disclosure obligations. On June 18, 2009, citing continued operating losses, weak markets for its products, impending debt repayments and significant pension funding obligations, the Company and its subsidiaries filed for creditor protection under the Companies' Creditors Arrangement Act in Canada and Chapter 15 of the U.S. Bankruptcy Code. In December 2009, Fraser Papers submitted a restructuring proposal to the courts that has provided for an early exit from creditor protection for its core specialty papers business and should provide for the maximum recovery of value for creditors. The proposal involved a two-stage process that created a stand-alone business out of the Company's specialty papers assets to be followed by the subsequent divestiture of the remaining assets by way of separate transactions. The proceeds from the sale of the specialty papers assets to Twin Rivers, plus additional proceeds from the sale of the remaining assets in Fraser Papers, will be used to settle the remaining secured claims against the Company, prior to distributing any remaining proceeds to its unsecured creditors. The remaining assets include a paper mill in Gorham, New Hampshire and two lumbermills in northern Maine. The Company completed the sale to Twin Rivers on April 28, and the sale of the pulp mill in Thurso, Quebec on April 30, 2010. The ultimate recovery for the creditors of Fraser Papers, if any, will not be determined until a final determination of all the claims against the Company and a distribution of the net proceeds. 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. GEMMA CALLISTE: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Gemma Calliste 11016 Lake Victoria Lane Bowie, MD 20720 Bankruptcy Case No.: 10-00685 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court District of Columbia (Washington, D.C.) Judge: S. Martin Teel, Jr. Debtor's Counsel: Jeffrey M. Sherman, Esq. Jackson & Campbell 1120 20th Street, NW, Suite 300 South Washington, DC 20036 Tel: (202) 457-1613 Fax: (202) 457-1678 E-mail: jsherman@jackscamp.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 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/dcb10-00685.pdf The petition was signed by the Debtor. GENERAL GROWTH: Files Registration for Exchangeable Notes --------------------------------------------------------- General Growth Properties, Inc.'s New GGP, Inc., has filed a registration statement on Form S-11 with the Securities and Exchange Commission relating to a proposed offering of up to $2.15 billion aggregate principal amount of mandatorily exchangeable notes. The notes will be exchangeable for shares of the Issuer's common stock, subject to certain conditions, including the consummation of GGP's proposed plan of reorganization, which was filed on July 13, 2010, with the United States Bankruptcy Court for the Southern District of New York. Proceeds of the offering, which is subject to Bankruptcy Court approval, would be used to replace a portion of the previously announced commitments to fund GGP's plan of reorganization from affiliates of The Fairholme Fund, Pershing Square Capital Management and Teacher Retirement System of Texas. This offering will be made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The registration statement on Form S-11 may be accessed through the Securities and Exchange Commission's website at http://www.sec.gov About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Proposes Epiq as Plan Voting Agent -------------------------------------------------- General Growth Properties Inc. and its units seek Court's permission to employ Epiq Bankruptcy Solutions LLC as their voting and solicitation agent in connection with the Joint Plan of Reorganization. As the Plan Debtors' voting agent, Epiq will: (a) provide advice to the Debtors and their counsel regarding all aspects of the Plan vote, including timing issues, voting and tabulation procedures, or treatment election, and related documents; (b) review the relevant portions of the Disclosure Statement, ballots, election forms and other documents particularly as they may relate to beneficial owners of securities held in Street name; (c) work with General Growth Properties, Inc. to request appropriate information with respect to the debt and equity securities from The Depository Trust Company, the transfer agent of the equity, the indenture trustee for the relevant debt securities, or other agent; (d) mail voting documents to any registered record holders of equity, and, if requested, bank debt or other parties entitled to vote; (e) coordinate the distribution of any election documents to Street name holders of debt securities by forwarding the appropriate documents to the reorganization departments of the banks and brokerage firms holding the securities, who in turn will forward it to the beneficial owners for action; (f) distribute copies of the master ballots to the appropriate nominees after the initial mailing, so that firms may cast votes on behalf of beneficial owners of equity; (g) prepare certificates of service for filing with the Court; (h) handle requests for documents from parties in interest, including brokerage firm and bank back-offices and institutional holders; (i) respond to telephone inquiries from security holders, nominees, and voting parties regarding the Disclosure Statement and the voting and election procedures. Epiq will restrict its answers to the information contained in the Plan documents. Epiq will seek assistance from the company or its counsel on any questions that fall outside of the voting and election documents; (j) if requested to do so, Epiq will make telephone calls to voting parties to confirm receipt of Plan documents and respond to questions about the voting procedures; (k) receive and examine all ballots and master ballots cast by holders of equity. Epiq will date-stamp the originals of all those ballots and master ballots upon receipt; (l) tabulate all ballots and master ballots received before the voting deadline in accordance with established procedures, and prepare a vote certification for filing with the court; (m) in connection with any treatment election, Epiq would act as ATOP agent and coordinate the transaction with DTC; and (n) undertake other duties as may be agreed upon by the Debtors and Epiq. The Plan Debtors relate that their proposed employment of Epiq will not affect the Debtors' previous employment of Kurtzman Carson Consultants LLC as claims agent. The Plan Debtors have coordinated with Epiq and KCC and the two will work together rather than duplicate efforts. The Debtors will also pay Epiq's professionals customary hourly rates: Title Rate per Hour ----- ------------- Executive vice president $369 Vice President $324 Senior Consultant $270 Senior Case Manager $203 to $248 Case Manager Level 2 $167 to $198 IT Programming Consultant $126 to $162 Case Manager Level 1 $113 to $158 Clerical $36 to $54 In connection with Epiq's services, Epiq has sought a retainer of $25,000 to fund out-of-pocket and other charges on a rolling basis. Epiq will apply the retainer to the final bill and refund any difference at the end of the engagement. The Plan Debtors will reimburse Epiq for expenses incurred. A schedule of Epiq's rates for certain services is available for free at http://bankrupt.com/misc/ggp_EpiqPricingSched.pdf Jane Sullivan, executive vice president of Epiq -- jsullivan@epiqsystems.com -- relates that as of January 1, 2010, Financial Balloting Group combined with, and does business as, Epiq. She further notes that Epiq continue to maintain appropriate ethical walls to ensure that the firm's professionals supporting Epiq's role as information agent to the Official Committee of Unsecured Creditors are screened completely from Epiq professionals responsible for Epiq's role as voting agent for the Plan Debtors, she assures the Court. Ms. Sullivan maintains that Epiq is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Seeking Approval of Disclosure Statement -------------------------------------------------------- General Growth Properties, Inc., and about 126 debtor affiliates ask Judge Allan L. Gropper of the U.S. Bankruptcy Court to approve the Disclosure Statement explaining their Joint Plan of Reorganization dated July 12, 2010, as containing "adequate information" pursuant to Section 1125(a) of the Bankruptcy Code. The Court will convene a hearing on August 19, 2010, to consider approval of the Disclosure Statement. Objections, if any, to the Disclosure Statement must be in writing and received no later than August 11. The Debtors also seek the Court's permission to commence solicitation of the Joint Plan of Reorganization in accordance with proposed solicitation schedule and protocol. The Plan Debtors' proposed solicitation timetable is: Event Deadline ----- -------- Deadline for Plan Debtors to July 14, 2010 Serve Notice of Disclosure Statement Hearing Disclosure Statement Objection August 11, 2010 Deadline Disclosure Statement Hearing August 19, 2010 Voting Record Date August 19, 2010 Solicitation Deadline: Five business days after the date of entry of an order approving the Disclosure Statement Voting and Elections Deadline October 7, 2010 Confirmation Objection Deadline October 7, 2010 Voting Certification Deadline October 14, 2010 Confirmation Hearing: To be scheduled The Debtors ask the Court to fix August 19, 2010, as the record date for determining: (a) the holders of Claims entitled to receive a Solicitation Package; (b) the holders of Claims entitled to vote to accept or reject the Plan; and (c) whether Claims have been properly transferred to an assignee pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedure so that the assignee can vote as the holder of that Claim. The Chapter 11 Plan General Growth Properties, Inc., and about 126 debtor affiliates delivered to Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York their Joint Plan of Reorganization and accompanying Disclosure Statement on July 12, 2010. The Plan Debtors tell the Court that the Plan provides for their emergence from bankruptcy, which they expect to occur in October 2010. "Under the Plan, GGP will satisfy its debt and other Claims in full, provide a substantial recovery for equity holders, and implement a recapitalization with $7 to $8.5 billion of new capital," counsel to the Plan Debtors, Marcia L. Goldstein, Esq., at Weil, Gotshal & Manges LLP, in New York, relates. At emergence, GGP will split itself into two publicly-traded companies namely "New GGP" and "Spinco" and current shareholders will receive common stock in both companies. The Plan is based on the Investment Agreements with REP Investments LLC, an affiliate of Brookfield Asset Management, Inc.; The Fairholme Fund and Fairholme Focused Income Fund, each a series of Fairholme Funds, Inc., and Pershing Square II, L.P., which include commitments to fund $8.55 billion of capital: * $6.3 billion of new equity capital at $10.00 per share of New GGP; * $250 million backstop equity commitment for a rights offering by Spinco at $5.00 per share; * $1.5 billion backstop debt commitment for a New GGP credit facility; and * $500 million backstop equity commitment by REP and Pershing Square for a rights offering by New GGP. GGP has also executed an agreement with Teacher Retirement System of Texas for Texas Teachers' investment of $500 million for shares of New GGP Common Stock at $10.25 per share. The Texas Teachers Investment is subject to a separate motion for approval by the Bankruptcy Court. Full-text copies of the July 12, 2010 Plan and Disclosure Statement are available for free at: http://bankrupt.com/misc/ggp_Jul12Plan.pdf http://bankrupt.com/misc/ggp_Jul12DS.pdf The Court will consider approval of the Disclosure Statement on August 19, 2010, according to GGP's public statement dated July 12, 2010. 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: Arbitration With Auto Dealers Nears End ------------------------------------------------------- Dee-Ann Durbin at The Associated Press reports that all of the General Motors and Chrysler dealers threatened with closure as part of the companies' bankruptcy proceedings will soon know their fate. The AP says federally appointed arbitrators are down to just 35 cases out of nearly 1,600 dealers who appealed the closures, according to India Johnson, senior vice president of the American Arbitration Association, the dispute resolution service that handled the cases. The AP relates hearings are set to wrap up Wednesday, with the final decisions due by the end of next week. According to the AP, of the cases that remained before arbitrators, judgments have been mixed. The AP relates Chrysler spokesman Mike Palese said 56 cases had been decided in the company's favor, while dealers have prevailed in 21 cases. GM won't release numbers until the arbitration process has ended. 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: Edmunds CEO Questions Rush to Have IPO ------------------------------------------------------ July 10, 2010, marked the one-year anniversary of General Motors' emergence from bankruptcy. The company has come a long way, and is moving quickly down the road to create an initial public offering (IPO) for its new stock. Edmunds.com, the premier online resource for automotive information, recognizes the progress that has been made but questions the rush to have an IPO. "This is certainly not the economic climate in which I'd want to have an IPO since it is likely to reduce the initial valuation of the stock. Negativity about the economy continues to swirl about and the psychological effect is putting a damper on all things it touches; what may be the most significant IPO in history will not be immune," stated Edmunds.com CEO Jeremy Anwyl. "One can't help but wonder: what is the rush?" In a report on AutoObserver.com, Senior Editor Bill Visnic and Edmunds.com analysts explore the following possibilities: -- Is there pressure from current shareholders like the government and the UAW VEBA trust who are anxious to liquidate their shares? -- Is GM trying to go public while the company has a fair amount of positive momentum in anticipation that the future may not be quite as positive? -- Is the timing political, targeted to happen before the next election so that the current administration can take credit for seeing the process from start to finish? "Regardless of whether any of these possibilities hold any weight, GM executives must have reasons for expediting the IPO," stated Anwyl. "The company would benefit from clarifying its reasoning publicly and openly in order to build trust and credibility and to resolve public curiosity." "When GM stock is offered, the US government can sell all or a portion of its 60.8% stake in the 'new' GM. This would free up TARP funds that could be applied to something else, like unemployment benefits which may provide a measurable boost to the economy," Edmunds.com Senior Economist Rebecca Braeu, PhD told AutoObserver.com. "The big question is whether the government will receive payback of its $49.5 billion investment in GM." About Edmunds Inc. Headquartered in Santa Monica, California, Edmunds Inc. -- http://www.edmunds.com/help/about/-- publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value(R), is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car- Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. 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 NUTRITION: Moody's Gives Pos. Outlook, Affirms 'B3' Rating ------------------------------------------------------------------ Moody's Investors Service changed General Nutrition Centers, Inc.'s rating outlook to positive from stable and upgraded the Speculative Grade Liquidity Rating to SGL-2 from SGL-3. All other ratings, including its B3 Corporate Family Rating, are affirmed. "The change in outlook to positive reflects GNC's improvement in credit metrics, notably despite the weak economy, and Moody's expectation that its earnings will continue to grow," said Moody's Senior Analyst Maggie Taylor. The upgrade of the Speculative Grade Liquidity Rating to SGL-2 primarily reflects the higher cash balances and Moody's expectation that the company will generate sufficient free cash flow over the next twelve months to fund its working capital and capital expenditure requirements. While the company is not reliant on the revolver, the revolver size is relatively small and it expires in March 2012. GNC's B3 Corporate Family Rating reflects the company's substantial level of debt which results in high leverage. Although Moody's expects earnings and leverage to improve, Moody's believe GNC will likely remain highly leveraged over the next twelve to eighteen months. Another key consideration of the rating is the high risk of adverse publicity and product liability claims associated with the vitamins, minerals, and nutritional supplements industry. However, the VMS industry has performed well through the economic downturn -- a significant credit positive. Positive ratings consideration is also given to GNC's international diversification and well recognized brand name. This was upgraded: * Speculative Grade Liquidity rating to SGL-2 from SGL-3. These ratings were affirmed: * Corporate family rating at B3; * Probability-of-default rating at B3; * $704 million senior secured credit facility at B1 (LGD 2, 27%); * $300 million senior notes at Caa1 (LGD 5, 77%); and * $110 million senior subordinated notes at Caa2 (LGD 6, 95%). The last rating action on GNC was on February 28, 2007, when the B3 Corporate Family Rating was assigned. General Nutrition Centers, Inc., headquartered in Pittsburgh, Pennsylvania, manufactures and retails vitamins, minerals, and nutritional supplements domestically and internationally. About 74% of the company's revenues are generated by approximately 2,800 company-owned stores and website. It also has over 2,200 retail franchises located in the U.S. and 49 countries that generate about 15% of its revenue and its wholesale operation (which includes sales to drugstore.com and the store within a store concept at over 1,900 Rite Aid stores) generates about 11% of revenue. Total revenues are $1.7 billion. GLOUCESTER ENGINEERING: Davis-Standard Wants Court to Block Sale ---------------------------------------------------------------- Patrick Anderson at Gloucester Times reports that Davis-Standard asked a federal court judge to prevent Gloucester Engineering's lender Blue Wolf Capital Management from acquiring all of the company. David-Standard said it had been making overtures to buy the company since January 2010, but had not received any response to its offer, Mr. Anderson relates. Davis-Standard said its main focus now is getting enough information about the company in order to make an intelligent offer, he notes. About Gloucester Engineering 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). GPX INTERNATIONAL: Customs Opposes Chapter 11 Liquidation Plan -------------------------------------------------------------- Bankruptcy Law360 reports that U.S. Customs and Border Protection is opposing GPX International Tire Corp.'s Chapter 11 plan of liquidation, claiming the plan impermissibly discharges GPX from liability for duties at the center of a case in the U.S. Court of International Trade. Customs' objection, filed Monday in the U.S. Bankruptcy Court for the District of Massachusetts, claimed that GPX owes it $268,469 in addition to "numerous unliquidated amounts" that can't be determined, according to Law360. About GPX International GPX International Tire Corporation was one of the largest independent global providers of specialty "off-the-road" tires for the agricultural, construction, materials handling and transportation industries. GPX is a worldwide company, headquartered in Malden, Massachusetts, with operations in NorthAmerica, China, Canada, and Germany. A third generation family-owned business, GPX and its predecessor companies have been in business since 1922. GPX International filed for Chapter 11 on Oct. 26, 2009 (Bankr. D. Mass. Case No. 09-20170). GPX is represented in U.S. Bankruptcy Court by attorneys Harry Murphy of Hanify & King, P.C., and Peggy Farrell of Hinckley Allen & Snyder LLP as corporate counsel. TM Capital Corp. serves as investment banker to GPX in connection with these transactions and Argus Management Corporation serves as restructuring advisor to GPX. The petition says assets and debts range from $100 million to $500 million. GRAY TELEVISION: Capital World Investors Reports 10.2% Stake ------------------------------------------------------------ Capital World Investors, a division of Capital Research and Management Company, is deemed to be the beneficial owner of 5,261,981 shares or 10.2% of the 51,381,084 shares of Gray Television, Inc. Common Stock believed to be outstanding as a result of CRMC acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940. Class A Common Stock and Common Stock vote together as a singled class of shares. Class A Common Stock has 10 votes per shares. About Gray Television Gray Television, Inc. (NYSE: GTN) -- http://www.gray.tv/-- is a television broadcast company headquartered in Atlanta, Georgia. Gray currently operates 36 television stations serving 30 markets. Each of the stations are affiliated with either CBS (17 stations), NBC (10 stations), ABC (8 stations) or FOX (1 station). In addition, Gray currently operates 39 digital second channels including 1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal Sports Network affiliates and 7 local news/weather channels in certain of its existing markets. As of March 31, 2010, the Company had total assets of $1.235 billion against total liabilities of $1.053 billion and preferred stock of $93.687 million, resulting in stockholders' equity of $88.140 million. * * * As reported by the Troubled Company Reporter on May 5, 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Gray to 'B-' from 'CCC'. S&P removed the rating from CreditWatch, where it was placed with positive implications on April 20, 2010. The rating outlook is stable. The TCR on April 22, 2010, reported that Moody's Investors Service assigned a Caa2 rating to the proposed $365 million issuance of guaranteed senior secured second lien notes due 2015 by Gray Television. At the same time, Moody's upgraded its Probability of Default Rating and Speculative Grade Liquidity Rating for the company, to Caa1 from Caa2 and to SGL-2 from SGL-4, respectively. Gray's Caa1 Corporate Family Rating remains unchanged. GRAY TELEVISION: Offers to Exchange Unregistered 10-1/2% Notes -------------------------------------------------------------- Gray Television, Inc., is offering to exchange up to $365,000,000 aggregate principal amount of newly issued 10-1/2% Senior Secured Second Lien Notes due 2015 for a like principal amount of outstanding restricted 10-1/2% Senior Secured Second Lien Notes due 2015 issued April 2010. On April 29, 2010, Gray issued $365.0 million aggregate principal amount of restricted 10-1/2% Senior Secured Second Lien Notes due 2015 in a private placement exempt from the registration requirements under the Securities Act of 1933. The terms of the exchange notes are substantially identical to the terms of the original notes, except that the exchange notes will be issued in a transaction registered under the Securities Act, and the transfer restrictions and registration rights and related special interest provisions applicable to the original notes will not apply to the exchange notes. The exchange notes will be exchanged for original notes in denominations of $2,000 and integral multiples of $1,000 in excess thereof. Gray will not receive any proceeds from the issuance of exchange notes in the exchange offer. The exchange offer expires at 9:00 a.m., New York City time, on August 6, 2010, unless extended. Gray does not intend to list the exchange notes on any national securities exchange or to seek approval through any automated quotation system, and no active public market for the exchange notes is anticipated. A full-text copy of the prospectus is available at no charge at http://ResearchArchives.com/t/s?6676 About Gray Television Gray Television, Inc. (NYSE: GTN) -- http://www.gray.tv/-- is a television broadcast company headquartered in Atlanta, Georgia. Gray currently operates 36 television stations serving 30 markets. Each of the stations are affiliated with either CBS (17 stations), NBC (10 stations), ABC (8 stations) or FOX (1 station). In addition, Gray currently operates 39 digital second channels including 1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal Sports Network affiliates and 7 local news/weather channels in certain of its existing markets. As of March 31, 2010, the Company had total assets of $1.235 billion against total liabilities of $1.053 billion and preferred stock of $93.687 million, resulting in stockholders' equity of $88.140 million. * * * As reported by the Troubled Company Reporter on May 5, 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Gray to 'B-' from 'CCC'. S&P removed the rating from CreditWatch, where it was placed with positive implications on April 20, 2010. The rating outlook is stable. The TCR on April 22, 2010, reported that Moody's Investors Service assigned a Caa2 rating to the proposed $365 million issuance of guaranteed senior secured second lien notes due 2015 by Gray Television. At the same time, Moody's upgraded its Probability of Default Rating and Speculative Grade Liquidity Rating for the company, to Caa1 from Caa2 and to SGL-2 from SGL-4, respectively. Gray's Caa1 Corporate Family Rating remains unchanged. GREEKTOWN HOLDINGS: Plan Takes Effect; Litigation Trust Formed -------------------------------------------------------------- The Second Amended Joint Plans of Reorganization for Greektown Holdings LLC, et al., became effective on June 30, 2010. Pursuant to the Plan, the Greektown Litigation Trust was formed for the benefit of the unsecured creditors of Greektown Holdings LLC and Greektown Casino LLC. Buchwald Capital Advisors LLC was appointed as trustee. A copy of the disclosure statement and Plan is available at: http://www.kccllc.com/kcc/documents/0853104/0853104091208000000000 011.pdf A copy of the confirmation order is available at: http://www.kccllc.com/kcc/documents/0853104/0853104100122000000000 003.pdf The First Amended Plan Supplement is available at: http://www.kccllc.net/documents/0853104/0853104100629000000000003. pdf The Trust, which will take over from the Creditors' Committee following the Effective Date of the Plan, is seeking to avoid and recover approximately $177 million in certain transfers made by Greektown Holdings LLC in December 2005 for the benefit of the defendants, including Dimitrios (Jim) Pappas and Viola Papas, Ted Gatzaros and Maria Gatzaros, Barden Development, Inc., Barden Nevada Gaming, LLC, Lac Vieux Desert Band of Lake Superior Chippewa Indians and Sault Ste. Marie Tribe of Chippewa Indians, Kewadin Casinos Gaming Authority. Prosecuting this lawsuit was the main purpose for establishing the Litigation Trust. Mark N. Parry of Moses & Singer LLP represented the Indenture Trustee, Deutsche Bank Trust Company Americas, in the Chapter 11 proceedings and was instrumental in identifying the causes of action set forth in the complaint. Buchwald Capital can be reached at: Lee E. Buchwald President Buchwald Capital Advisors LLC 380 Lexington Avenue 17th Floor New York, NY 10168-1799 Tel: (212) 551-1040 Fax: (212) 656-1578 E-mail: lbuchwald@buchwaldcapital.com URL: http://www.buchwaldcapital.com Moses & Singer can be reached at: Mark N. Parry, Esq. Moses & Singer LLP 405 Lexington Avenue New York, NY 10174-1299 Tel: (212) 554-7876 E-mail: Mparry@mosessinger.com 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. 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. The Joint Plan of Reorganization for Greektown Holdings LLC and five of its debtor affiliates proposed by certain noteholder entities, the Official Committee of Unsecured Creditors of the Debtors, and Deutsche Bank Trust Company Americas, as indenture trustee, has been declared effective on June 30, 2010. Greektown Casino Hotel clinched its way to the June 30 finish line when it obtained a unanimous approval from the Michigan Gaming Control Board on June 28, 2010, of the transfer of the Company's ownership from the Sault Ste. Marie Tribe of Chippewa Indian to new investors. 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) GSI GROUP: Nets 80% from Rights Offering; July 23 Emergence Seen ---------------------------------------------------------------- GSI Group Inc. disclosed that the subscription period for its rights offering expired on July 7, 2010, bringing in irrevocable subscriptions for about 80% of the total number of shares offered. As such, 37,756,069 shares of the reorganized Company were subscribed for a total subscription price of $67,960,924. The Rights Offering was conducted pursuant to the Final Fourth Modified Joint Chapter 11 Plan of Reorganization of the Company and certain of its subsidiaries, as confirmed by the United States Bankruptcy Court for the District of Delaware on May 27, 2010. Pursuant to the Plan, the Company offered to sell to holders of its common shares and vested rights to shares up to a maximum of $85 million of New Common Shares upon emergence from bankruptcy at a purchase price per share of $1.80. Of the total New Common Shares subscribed for in the Rights Offering, $64,889,486 were subscribed for by payment in cash and $3,071,438 were subscribed for by exchange of GSI Group Corporation's 11% Senior Notes due 2013 in the principal amount of $210 million. Also pursuant to the Plan, and subject to the terms and conditions of a Backstop Commitment Agreement, certain holders of the Senior Notes agreed to backstop the entire Rights Offering. Regardless of the number of shares purchased in the Rights Offering, the Backstop Investors agreed to purchase a minimum of $20 million of New Common Shares by exchanging the principal amount of Senior Notes for New Common Shares at the Price Per Share. Because the difference between the total amount of the shares offered and the shares subscribed for in the Rights Offering is less than $20 million, 11,111,111 New Common Shares for a total of the backstop commitment amount of $20 million will be issued pursuant to the backstop commitment. The Rights Offering will be consummated upon the Company's emergence from bankruptcy, which is subject to numerous closing conditions. The Company currently expects the emergence to occur on or about July 23, 2010, and the New Common Shares subscribed for in the Rights Offering and to be issued pursuant to the backstop commitment will be issued on such date. The Cash Proceeds will be held in escrow and released on the Effective Date and will, as provided in the Plan, be used to pay down the Senior Notes. As a result of the Rights Offering and the shares to be issued pursuant to the backstop commitment, the Existing Holders, including those holders who may also be noteholders, will receive approximately 86.0 million New Common Shares or 86.1% of Reorganized Company's post-reorganization outstanding shares (subject to the distribution of the New Common Shares placed in reserve pending resolution of certain litigation matters unrelated to the Chapter 11 Cases); the holders of Senior Notes, including the Backstop Investors, will receive approximately 13.89 million New Common Shares or 13.9% of Reorganized Company's post- reorganization outstanding shares; and GSI Group Corporation would issue new debt in the form of new 12.25% Senior Secured PIK Election Notes in the principal amount of approximately $107.04 million pursuant to the Plan. About GSI Group GSI Group Inc. supplies precision technology to the global medical, electronics, and industrial markets and semiconductor systems. GSI Group Inc.'s common shares are quoted on Pink Sheets OTC Markets Inc. (GSIGQ). The Company and two of its affiliates filed for Chapter 11 protection on Nov. 20, 2009 (Bankr. D. Del. Lead Case No. 09- 14110). William R. Baldiga, Esq., at Brown Rudnick LLP, represents the Debtors as lead counsel. Mark Minuti, Esq., at Saul Ewing LLP, as its local counsel. The Debtors selected Garden City Group Inc. as their claims and notice agent. In their petition, the Debtors posted $555,000,000 in total assets and $370,000,000 in total liabilities as of Nov. 6, 2009. GULF FREEWAY: Wants Access to 1st International's Cash Collateral ----------------------------------------------------------------- Gulf Freeway Plaza LLC asks the U.S. Bankruptcy Court for the Southern District of Texas for authorization to use cash collateral. The Debtor owed 1st International Bank approximately $6.5 million under all of the promissory notes which were secured by receivables, rents, and proceeds generated by Gulf Freeway Plaza LLC's operations. In addition, the Debtor owed a related party, Gil Ramirez Homes, Inc., $360,000 pursuant to a secured loan. The Debtor will use the cash collateral to operate its business, postpetition. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the bank postpetition liens in its collateral and the postpetition receivables generated by its collateral postpetition. The Debtor adds that a status conference is set for August 5, 2010, at 10:00 a.m. regarding documents filed and any questions regarding the collateral. About Gulf Freeway Plaza LLC Houston, Texas-based Gulf Freeway Plaza LLC, fdba La Hacienda Business Park LLC, filed for Chapter 11 bankruptcy protection on May 27, 2010 (Bankr. S.D. Tex. Case No. 10-34332). John L. Green, Esq., who has an office in Houston, Texas, assists the Company in its restructuring effort. The Company listed $12,700,000 in assets and $6,180,532 in liabilities. HEALTHCARE PROVIDERS: Organizational Meeting Set for July 23 ------------------------------------------------------------ Roberta A. DeAngelis, Acting United States Trustee for Region 3, will hold an organizational meeting on July 23, 2010, at 11:00 a.m. in the bankruptcy case of Healthcare Providers Direct, a Delaware Corporation, and Healthcare Providers Direct, a Nevada Corporation. The meeting will be held at United States Trustee's Hearing Room, Bridge View, 800-840 Cooper Street, Suite 102, Camden, NJ 08102. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Stone Harbor, New Jersey-based Healthcare Providers Direct, Inc., a Delaware corporation, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. D.N.J. Case No. 10-31072). Jeffrey Kurtzman, Esq., at Klehr Harrison Harvey Branzbug LLP, assists the Company in its restructuring effort. The Company listed $100,001 to $500,000 in assets and $1,000,001 to $10,000,000 in liabilities. The Company's affiliate, Healthcare Providers Direct, Inc., a Nevada corporation, filed a separate Chapter 11 petition on July 9, 2010 (Case No. 10-31077). The Company listed $100,001 to $500,000 in assets and $1,000,001 to $10,000,000 in liabilities. HENRY YOUN: Case Summary & 12 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Henry H. Youn dba Arlington Motor Inn Chung Im Youn 7002 78th Ave. S.E. Mercer Island, WA 98040 Bankruptcy Case No.: 10-18041 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Samuel J. Steiner Debtor's Counsel: James C Dudley, Esq. 9057 Washington Ave NW P.O. Box 9 Silverdale, WA 98383 Tel: (360) 373-5476 E-mail: jcdudley38@hotmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb10-18041.pdf The petition was signed by the Joint Debtors. HOTELS UNION SQUARE: To Be Sold to Host Venture ----------------------------------------------- Bloomberg News reports that The W New York Union Square will be sold to a partnership led by Host Hotels & Resorts Inc. as part of the settlement to bankruptcy proceedings. The venture also includes Istithmar World PJSC as a minority partner, according to the statement from LEM, an affiliate of Lubert-Adler Real Estate Funds. Istithmar World is a unit of Dubai World, the sovereign wealth fund that defaulted last year on debt incurred buying the hotel in 2006. LEM controls an entity that held junior debt on the luxury hotel overlooking Manhattan's Union Square. The parties filed a joint liquidation plan today in U.S. Bankruptcy Court in Delaware. About Hotels Union Philadelphia, Pennsylvania-based Hotels Union owns the W New York Union Square hotel, located on Park Avenue South. Hotels Union is controlled by an affiliate of Lubert-Adler Real Estate Funds known as LEM. Hotels Union Square Mezz 1 LLC, dba Istithmar Hotels Union Square Mezz 1 LLC, filed for Chapter 11 bankruptcy protection on March 23, 2010 (Bankr. D. Del. Case No. 10-10971). The company estimated its assets and debts at $50,000,001 to $100,000,000. Hotels Union Square Mezz 2 LLC, dba Istithmar Hotels Union Square Mezz 2 LLC, filed for Chapter 11 bankruptcy protection on March 25, 2010 (Bankr. D. Del. Case No. 10-11001). The company estimated its assets and debts at $10,000,001 to $50,000,000. Steven M. Yoder, Esq., at Potter Anderson & Corroon LLP, assists the Debtors in their restructuring efforts. JERMAX INC: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------ According to AMM, Jermax Inc. has recently filed for bankruptcy and expects to approach the court about financing this week. Jermax's parent companies Gulf & Northern Trading Corp., Philadelphia Stainless Inc. and Amerinox Processing Inc. filed for Chapter 11 bankruptcy reorganization on June 24. Jermax primarily distributes stainless steel products. JETBLUE AIRWAYS: Federated Investors Holds 3.8% of Shares --------------------------------------------------------- Federated Investors, Inc., disclosed holding 11,112,395 shares or roughly 3.8% of the common stock of JetBlue Airways Corporation common stock as of June 30, 2010. JetBlue Airways Corp., based in Forest Hills, New York, operates a low-cost, point-to-point airline from a hub in New York. JetBlue serves 60 cities with 600 daily non-stop flights. The Company reported $6.55 billion in total assets, $1.16 billion in total current liabilities, $2.92 billion long-term debt and capital lease obligations, $529 million construction obligation, $397 million deferred taxes and others resulting to a $1.53 billion stockholders' equity, as of Dec. 31, 2009. * * * According to the Troubled Company Reporter on Jan. 28, 2010, Moody's Investors Service raised its ratings of JetBlue Airways, Corp.; corporate family and probability of default ratings each to Caa1 from Caa2. Moody's also raised by one notch, its debt ratings on the 3.75% Senior Unsecured Convertible Notes due 2035 to Caa3 from Ca, the respective Class G tranches of the Enhanced Equipment Trust Certificates Series 2004-2 to B1 from B2, and the Spare Parts EETC to Ba1 from Ba2, the Class B tranche of the Spare Parts EETC to B2 from B3 and the senior unsecured industrial revenue bonds to Caa3 from Ca. Moody's also affirmed the SGL-3 Speculative Grade Liquidity rating and changed the outlook to positive from stable. The TCR reported on March 9, 2010, that Fitch Ratings affirmed the Issuer Default Rating for JetBlue Airways at 'B-' and the senior unsecured rating, which applies to approximately $470 million of convertible notes, at 'CC' with a Recovery Rating of 'RR6'. The airline's Rating Outlook has been revised to Stable from Negative. JOEL HARDEN: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Joel A. Harden 430 Berwyn Baptist Road Berwyn, PA 19312 Bankruptcy Case No.: 10-15669 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Magdeline D. Coleman Debtor's Counsel: Lee M. Herman, Esq. 426-428 East Baltimore Pike P.O. Box 2090 Media, PA 19063 Tel: (610) 891-6500 E-mail: lherman@lmhlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Mr. Harden. JUMPING BEAN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: The Jumping Bean, Inc. dba Java Jones 631 9th Avenue San Diego, CA 92101 Bankruptcy Case No.: 10-12305 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: John L. Smaha, Esq. Smaha Law Group, APC 7860 Mission Center Court, Suite 100 San Diego, CA 92108 Tel: (619) 688-1557 Fax: (619) 688-1558 E-mail: jsmaha@smaha.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $127,414 while debts total $1,234,264. A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/casb10-12305.pdf The petition was signed by Brett Winslow, CEO. LAKEVIEW AT CAROLINA: Court Denies Lender's Plea for Dismissal -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas has denied First Bank, N.A.'s motion for the dismissal of Lakeview at Carolina Beach, LLC's Chapter 11 bankruptcy case. First Bank is the present owner and holder of the indebtedness represented by that certain Promissory Note as of February 3, 2006, in the original principal amount of $9,500,000, which is secured by a Deed of Trust executed by the Debtor dated February 3, 2006. The Deed of Trust covers certain real property which consists of a condominium development which currently has 20 condominiums owned by the Debtor and which is subject to the liens of First Bank. As of May 27, 2010, the balance due and owing on the Note was $6,547,920.64. First Bank claimed that the Debtor's bankruptcy case was filed in the wrong venue. First Bank asked the Court to dismiss the case, or, in the alternative, transfer the venue of the case to the U.S. Bankruptcy Court for the Eastern District of North Carolina for the convenience of the parties and in the interest of justice. According to First Bank, the Debtor is a North Carolina limited liability company, and is even not registered to do business in Texas. "Thus, it is undisputed that the Debtor's residence is North Carolina. Furthermore, the Debtor's principal place of business is not located in Texas. On information and belief, all decisions regarding the operations of the Debtor are made by the sister of the principal from a condominium located on the Property (the Property Manager). The Property Manager is Ludilla West, and for at least the last three months, Ms. West has been paid by Movant. It is unclear who is actually employing Ms. West," First Bank states. First Bank is represented by Cox Smith Matthews Incorporated. Dallas, Texas-based Lakeview at Carolina Beach, LLC, filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. N.D. Tex. Case No. 10-34542). Eric A. Liepins, Esq., who has an office in Dallas, Texas, assists the Company in its restructuring effort. The Company listed $10,902,000 in assets and $9,486,585 in liabilities. LAKEVIEW AT CAROLINA: Receivers Continues Management of Property ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas has authorized T & S Rentals, LLC, d/b/a Century 21 Sweyer Rentals, the receiver for Lakeview at Carolina Beach, LLC, to continue the day-to-day management and operations of the 20 residential condominium units in the Debtor's complex in Carolina Beach, North Carolina, including entering into new leases, collection of rents generated from the Property, use of the Rents for payment of expenses necessary to operate and maintain the Property, and any other authorized actions. Prior to the filing, the Debtor's first lien holder First Bank, N.A., has taken control of the Debtor's rents. Additionally, First Bank had T & S appointed as receiver, ex parte, who has notified the Debtor's tenants to pay rent over them, and has taken possession of the Debtor's leases and keys to the Property. The Debtor has made demand upon First Bank and the Receiver to turn over the funds and property to the estate. The Debtor claimed that the funds are property of the estate which the Debtor can use in its reorganization. The leases and keys are also property of the estate, the Debtor said. The Court has excused the Receiver from compliance with section 543(a) and (b) of the U.S. Bankruptcy Code, which states that "a custodian with knowledge of the commencement of a case under this title concerning the debtor may not make any disbursement from, or take any action in the administration of, property of the debtor, proceeds, product, offspring, rents, or profits of such property, or property of the estate, in the possession, custody, or control of such custodian, except such action as is necessary to preserve such property". No less than twice each month, the Receiver will provide an accurate ledger or similar accounting to the Debtor, First Bank and their respective counsel, detailing all receipts by and all disbursements made by the Receiver. The Receiver, being a "custodian", will be entitled to compensation in the amount of $3,500 per month to be paid from the Rents. Any security deposits actually received by the Receiver will be held in a segregated account (the Security Deposit Account). To the extent the Receiver collects Rents in excess of the property expenses, the Receiver will account for the excess funds but will not disburse the funds to First Bank or the Debtor without further order of the Court. Funds collected and held by the Receiver will not constitute monthly payments otherwise required under section 362(d)(3)(B) of the Bankruptcy Code. The Receiver will allow Lloydella "Dee" Paczkowski to remain in the unit where she currently resides until July 31, 2010, and Ms. Paczkowski will not be required to pay rent for any time prior to July 31, 2010, provided that Ms. Paczkowski will vacate the condominium unit and turnover to the Receiver no later than 11:59 p.m., prevailing Eastern Time, on July 31, 2010, all books and records stored on the Property and all keys, pass codes, keycards and other security items or information relating to the Property. First Bank is represented by Cox Smith Matthews Incorporated. Dallas, Texas-based Lakeview at Carolina Beach, LLC, filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. N.D. Tex. Case No. 10-34542). Eric A. Liepins, Esq., who has an office in Dallas, Texas, assists the Company in its restructuring effort. The Company listed $10,902,000 in assets and $9,486,585 in liabilities. LEHMAN BROTHERS: Suit Against JPMorgan Trial Date Set For 2012 -------------------------------------------------------------- Ensuring that court battles may rage for years to come in the Lehman Brothers Holdings Inc. bankruptcy, a judge has agreed to a tentative April 30, 2012, trial date in the company's $8.6 billion case against JPMorgan Chase Bank NA, according to Bankruptcy Law360. Law360 relates that Judge James M. Peck joked with lawyers that his calendar is likely free on that date when he consented to the schedule during a brief conference Wednesday. 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: Examiner Discharged, May Still Give Assistance --------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Anton R. Valukas, the examiner who wrote a 2,209-page report about the downfall of Lehman Brothers Holdings Inc., was officially discharged July 13. The bankruptcy judge though, according to the report, created a process where he can continue assisting parties in the case on request. Mr. Valukas can provide assistance to Lehman, the creditors' committee, government agencies and the U.S. Trustee, with his fees paid by Lehman. Third parties, Mr. Rochelle relates, also can request Valukas's assistance. In the case of third-party requests, there must be notice and an opportunity for other parties to object. If there isn't resolution, the bankruptcy court can resolve the dispute. The examiner's fees must paid by third-parties who need his help. 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: Lawsuit vs. JPMorgan Set for Trial in 2012 ----------------------------------------------------------- Reuters reports that Lehman Brothers Holdings Inc's lawsuit accusing JPMorgan Chase & Co of siphoning billions of dollars and hastening its record bankruptcy is unlikely to be ready for trial before April 30, 2012, under a timetable recently approved by U.S. Bankruptcy Judge James Peck in Manhattan. According to Reuters, at a Wednesday hearing, Lehman's lawyer John Quinn of Quinn Emanuel Urquhart & Sullivan LLP said each company expects to depose 50 witnesses from the opposing side. Depositions and fact-finding may not be completed until June 30, 2011. The May 26 lawsuit accused JPMorgan of using its "unparalleled" knowledge of Lehman's distress, as the main "clearing" bank for Lehman transactions with other parties, to extract $8.6 billion of collateral in the four business days ahead of Lehman's September 15, 2008 bankruptcy. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LESLIE CONTROLS: Organizational Meeting to Form Panel on July 22 ---------------------------------------------------------------- Roberta A. DeAngelis, Acting United States Trustee for Region 3, will hold an organizational meeting on July 22, 2010, at 11:00 a.m. in the bankruptcy case of Leslie Controls, Inc. The meeting will be held at J. Caleb Boggs Federal Building, 844 King Street, Room 5209, Wilmington, DE 19801. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Based in Tampa, Florida, Leslie Controls is a manufacturer of process control valves, severe service control valves, on-off valves, regulators, steam water heaters, actuators and controls. Leslie is a unit of CIRCOR International, Inc. The Company filed for Chapter 11 bankruptcy protection on July 12, 2010 (Bankr. D. Del. Case No. 10-12199). Marion M. Quirk, Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman & Leonard, 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. LINCOLNSHIRE CAMPUS: Official Residents' Committee Appointed ------------------------------------------------------------ Pursuant to Section 1102(a)(1) of the Bankruptcy Code, William T. Neary, the United States Trustee for Region 6, appointed on July 9, 2010, nine individuals to serve as members of the Official Committee of Residents in the Chapter 11 cases of Lincolnshire Campus, LLC, and its three debtor-affiliates: (1) Paul Goldstein 820 Audubon Way, PT-210 Lincolnshire, IL 60069 Tel: (847) 793-0202 E-mail: laup60@aol.com (2) Robert Estabrooks 2004 Audubon Avenue, MC-429 Naperville, IL 60563 Tel: (630) 357-7614 E-mail: bobesta@aol.com (3) Sarah Martin 2004 Audubon Avenue, MC-129 Naperville, IL 60563 Tel: (630) 355-6550 E-mail: sjmar@msn.com (4) Roy Larson 2004 Audubon Avenue, BT-T03 Naperville, IL 60563 Tel: (630) 355-2433 E-mail: drlarson29@att.net (5) Carol Hedtcke 2004 Audubon Avenue, BT-402 Naperville, IL 60563 Tel: (630) 355-8663 E-mail: cshedtcke@att.net (6) Sally Hering 840 Audubon Way, HG-109 Lincolnshire, IL 60069 Tel: (847) 793-0575 E-mail: salhering@aol.com (7) Ed Matthei 890 Audubon Way, BW-502 Lincolnshire, IL 60069 Tel: (847) 793-0939 E-mail: ematthei@sbcglobal.net (8) Lou Sherman 830 Audubon Way, HG-408 Lincolnshire, IL 60069 Tel: (847) 821-1471 E-mail: shirlou05@aol.com (9) Charles VanWiggeren 810 Audubon Way, HP-416 Lincolnshire, IL 60069 Tel: (847) 478-8728 E-mail: ctvan471@sbcglobal.net About the Debtors Lincolnshire Campus filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P. Slusher, Esq., at DLA Piper LLP US, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc. also filed for Chapter 11 on June 15, 2010. The Lincolnshire Debtors and the NFP Debtors are affiliates of Erickson Retirement Communities LLC. Baltimore, Maryland-based Erickson Retirement Communities LLC, along with affiliates, filed for Chapter 11 on Oct. 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves as claims and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also serving as investment and financial consultant. Alvarez & Marsal is serving as restructuring adviser. Judge Stacey G.C. Jernigan confirmed Erickson's Plan of Reorganization on April 16, 2010. The confirmed Chapter 11 Plan is premised on the $365 million sale of substantially all of the Erickson Retirement assets to Redwood Capital Investments LLC and its affiliates. The Plan became effective on April 30, 2010. Erickson own 20 continuing care retirement communities in 11 states. Among Erickson's 20 communities, eight are completed, 11 are open although in construction, and one is in development. They have 23,000 residents in total. Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Erickson Retirement Communities LLC and Lincolnshire Campus. (http://bankrupt.com/newsstand/or 215/945-7000) LINCOLNSHIRE CAMPUS: Redwood Complains of Excessive Break-up Fee ---------------------------------------------------------------- To recall, Lincolnshire Campus, LLC, and its debtor affiliates seek permission from the U.S. Bankruptcy Court for the Northern District of Texas to sell substantially all of their assets, free and clear of all liens, to Senior Care Development, LLC, for $43,270,000, subject to higher and better bids. The Lincolnshire Debtors and SCD executed an asset purchase agreement, contemplating the sale of all assets of Debtors Monarch Landing, Inc., and Sedgebrook, Inc., for $43,270,000. The Lincolnshire Debtors also seek permission to entitle bid protections to SCD as the proposed stalking horse bidder, including a break-up fee of $1,500,000, of which amount includes a expense reimbursement component of up to $350,000. Erickson Living Holdings, LLC, and Redwood Capital Investments, LLC, complain that the Lincolnshire Debtors seek approval of bidding procedures that include an excessive break-up fee that will chill bidding and not maximize the value of the Lincolnshire Debtors' estates. "It is clear after the purchase of assets of Erickson Retirement Communities, LLC, that Redwood would submit a bid for the assets of the Lincolnshire Debtors," Kerry C. Peterson, Esq., at Miller, Egan, Molter & Nelson LLP, in Dallas, Texas -- kerrypeterson@milleregan.com -- counsel to and Redwood tells the Court. She reveals that before the submission of Senior Care Development, LLC's bid, Redwood submitted a bid consisting of a higher purchase price, a $1 million lower break-up fee and on substantially the same terms as the proposed stalking horse bid for the Lincolnshire Debtors' assets. Ms. Peterson contends that the Lincolnshire Debtors have not stated any corresponding benefit a $1.5 million break-up fee will have on their estates. She adds that as evidenced by Redwood's higher and better, the $1.5 million Break-Up Fee provides no value to the Lincolnshire Debtors' estates. A large break-up fee is also not necessary to attract a bidder to make an initial offer for the Lincolnshire Debtors, Ms. Peterson continues. She stresses that the current proposed Break-Up Fee is excessive -- at greater than 10% of the Cash transaction value and about 15 times the break-up previously approved in the ERC Debtors' Chapter 11 cases. She adds that, among others, the assumption of the Special Tax Bonds should not be treated as a traditional assumption of debt for the purposes of the Break-Up Fee calculation. The Special Tax Bonds were established by local ordinance, secured by the payment of special property taxes, and do not contain standard debt financing terms, she explains. About the Debtors Lincolnshire Campus filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P. Slusher, Esq., at DLA Piper LLP US, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc. also filed for Chapter 11 on June 15, 2010. The Lincolnshire Debtors and the NFP Debtors are affiliates of Erickson Retirement Communities LLC. Baltimore, Maryland-based Erickson Retirement Communities LLC, along with affiliates, filed for Chapter 11 on Oct. 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves as claims and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also serving as investment and financial consultant. Alvarez & Marsal is serving as restructuring adviser. Judge Stacey G.C. Jernigan confirmed Erickson's Plan of Reorganization on April 16, 2010. The confirmed Chapter 11 Plan is premised on the $365 million sale of substantially all of the Erickson Retirement assets to Redwood Capital Investments LLC and its affiliates. The Plan became effective on April 30, 2010. Erickson own 20 continuing care retirement communities in 11 states. Among Erickson's 20 communities, eight are completed, 11 are open although in construction, and one is in development. They have 23,000 residents in total. Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Erickson Retirement Communities LLC and Lincolnshire Campus. (http://bankrupt.com/newsstand/or 215/945-7000) LINCOLNSHIRE CAMPUS: Wants BMC Group as Claims & Balloting Agent ---------------------------------------------------------------- Lincolnshire Campus LLC and its affiliates seek the Court's permission to employ BMC Group, Inc., as their noticing, claims and balloting agent, nunc pro tunc to the Petition Date. As the Lincolnshire Debtors' claims agent, BMC is expected to: (a) assist the Lincolnshire Debtors with the compilation, administration, evaluation and production of documents and information necessary to support a restructuring effort; and (b) at the direction of the Lincolnshire Debtors, their counsel, or the Clerk of Court, as applicable, and in accordance with any Court orders or rules in these Chapter 11 cases: -- prepare and serve those notices required in these bankruptcy cases; -- receive, record, and maintain copies of all proofs of claim and proofs of interest filed against the Lincolnshire Debtors; -- create and maintain the official claims registers; -- receive and record all transfers of claims pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedure; -- maintain an up-to-date mailing list for all entities who have filed proofs of claim or requests for notices in the Lincolnshire Debtors' Chapter 11 cases; -- assist the Lincolnshire Debtors and counsel with the administrative management, reconciliation, and resolution of claims; -- print, mail, and tabulate ballots for purposes of plan voting; -- assist with the preparation and maintenance of the Lincolnshire Debtors' schedules of assets and liabilities, statements of financial affairs, and other master lists and databases of creditors, assets and liabilities; -- assist with the production of reports, exhibits and schedules of information for use by the Lincolnshire Debtors or their counsel, or to be delivered to the Court, the Clerk of Court's Office, the Office of the U.S. Trustee for Region 6 or third parties; -- provide other technical and document management services of a similar nature requested by the Lincolnshire Debtors or the Clerk of Court's office; -- facilitate or perform distributions; and -- assist the Lincolnshire Debtors with all analyses and/or collections of avoidance and recovery actions under the Bankruptcy Code. BMC will also provide other noticing, claims processing, related administrative services and technology support as the Lincolnshire Debtors or the Clerk of Court may ask in accordance with the engagement agreement with the Lincolnshire Debtors. BMC will provide those services on an ala carte basis, and will only charge the Debtors for necessary or requested services. The Lincolnshire Debtors will pay for BMC's services, according to the firm's customary fees as set forth in a "Fee Schedule." No Fee Schedule was attached in the Debtors' court filing, engagement agreement and declaration. The Lincolnshire Debtors will also reimburse BMC for expenses incurred. Tinamarie Feil, president and co-founder of BMC, -- tfeil@bmcgroup.com -- relates that her firm neither holds nor represents an interest adverse to the Lincolnshire Debtors' estates nor has it a connection to the Lincolnshire Debtors, their creditors or their related parties with respect to any matter for which BMC will be employed. She maintains that BMC is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. About the Debtors Lincolnshire Campus filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P. Slusher, Esq., at DLA Piper LLP US, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc. also filed for Chapter 11 on June 15, 2010. The Lincolnshire Debtors and the NFP Debtors are affiliates of Erickson Retirement Communities LLC. Baltimore, Maryland-based Erickson Retirement Communities LLC, along with affiliates, filed for Chapter 11 on Oct. 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves as claims and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also serving as investment and financial consultant. Alvarez & Marsal is serving as restructuring adviser. Judge Stacey G.C. Jernigan confirmed Erickson's Plan of Reorganization on April 16, 2010. The confirmed Chapter 11 Plan is premised on the $365 million sale of substantially all of the Erickson Retirement assets to Redwood Capital Investments LLC and its affiliates. The Plan became effective on April 30, 2010. Erickson own 20 continuing care retirement communities in 11 states. Among Erickson's 20 communities, eight are completed, 11 are open although in construction, and one is in development. They have 23,000 residents in total. Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Erickson Retirement Communities LLC and Lincolnshire Campus. (http://bankrupt.com/newsstand/or 215/945-7000) LOCATEPLUS HOLDINGS: Appoints Slaughter as Director of Operations ----------------------------------------------------------------- LocatePLUS Holdings Corporation disclosed the appointment of Karen Slaughter as Director of Operations. Karen Slaughter's background includes 20 years of management experience, including the last 12 years in the background screening and record research industries. Karen has held progressively responsible positions with two company leaders in the background and data industries; Kroll and First Advantage Corporation. As both companies grew through acquisition, Karen provided hands-on leadership regarding the successful implementation of client migration to new operating platforms. Karen has led projects and been recognized for her outstanding achievements regarding the successful implementation of ISO 9001 compliance, training and development programs, off-shoring of operations, and meaningful business metrics. Karen is a true professional, strategic in her insights and focused in delivering results that bring out operationally- excellent solutions. Additional areas of expertise include process/data mapping, organizational/platform readiness, policy/procedure development, and business partner relationships. Karen earned an MBA from Belmont University in Nashville, TN and completed her undergraduate studies at Western Kentucky University. In addition, she is a Six Sigma Green Belt. "It is truly a new day at LocatePLUS. I couldn't be more excited to be part of the new management team. The Board of Directors has assembled a fresh and incredibly talented team including Ron Lifton, CEO; Ken Kaiser, Chief Risk Officer; Brian McHugh, CFO; and Larry Simkin, Director of Information Technology." "The operations team is currently focused on consolidating operations, eliminating redundant and streamlining operational process across all operations centers. In addition we are increasing staff production through a combination of process improvements and automation. We have also started the process of re-establishing solid relationships with our data vendors as well as creating and implementing meaningful metrics by which to manage the business and better serve our clients," stated Karen Slaughter. About LocatePLUS LocatePLUS is an industry-leading provider of investigative solutions currently used in homeland security, anti-terrorism, and crime fighting initiatives. The Company acquires and synthesizes public information in a cross-referenced, searchable database integrated in a proprietary manner that provides rapid and efficient access via Internet and other media to comprehensive personal and location characteristics on data subjects even when inquiry information is partial or incomplete. * * * As reported in the Troubled Company Reporter on June 15, 2010, LocatePLUS Holdings Corporation intends to seek market-maker sponsorship for re-listing with the Over the Counter Bulletin Board quotation service. While the company had missed filing deadlines under previous management, the last late filing occurred with the first quarter of 2009 as the newly elected Board and new management mobilized to stabilize the company and to insure accuracy in reporting. Since that time no filings have been late and the company is believed to be in compliance with the requirements of the OTC Bulletin Board quotation service. On January 5, 2010, LocatePLUS Holdings Corporation had successfully negotiated with a major creditor, Dutchess Private Equities Fund, Ltd., to convert over $1,800,000 of existing indebtedness plus a warrant to purchase 1,125,000 shares of its Common Stock into 72,000 shares of a new Series A Preferred Stock. LOCATEPLUS HOLDINGS: Taps Kaiser as Exec. VP & Chief Risk Officer ----------------------------------------------------------------- LocatePLUS Holdings Corporation appointed Kenneth W. Kaiser as its new Executive Vice President and Chief Risk Officer. Mr. Kaiser joins LocatePLUS Holdings Corporation after a distinguished 27 year career with the Federal Bureau of Investigations, retiring from the position of Assistant Director. As Assistant Director of the Inspection Division, Mr. Kaiser ensured compliance and facilitated performance by providing independent evaluations of all FBI divisions and programs both domestically and internationally. Ken directed the efforts of over 4900 special agent resources that provided strategic, operational, investigative and infrastructure support to all criminal programs for the Federal Bureau of Investigation. Some of Ken's accomplishments include: Managed FBI operations and administration of four New England states as the highest ranking official, Special Agent in Charge, of the Boston Division. Responsible for strategic planning and management of all programs including Counterterrorism, Counterintelligence, Cyber Crimes and Criminal matters. Served as Special Agent in Charge of the New Orleans Division with jurisdiction over the state of Louisiana. Strategic planning and management for all programs, personnel and outside agency personnel. On scene commander responsible for the command and control of all FBI tactical assets deployed to New Orleans in response to Hurricane Katrina. Designated by Department of Homeland Security as the Senior Law Enforcement Official in charge of Crisis management for the disaster site. Served on the Executive Law Enforcement Planning Committee for the Democratic National Convention. Served as the Principal Federal Official for the 2005 NFL Super Bowl and coordinated all security for federal entities. Led FBI security response during the 2002 Super Bowl in New Orleans. Led FBI recovery response of Space Shuttle Disaster in Louisiana. In addition to numerous awards, obtaining Top Secret/SCI Clearance, Ken graduated with a Bachelor of Arts in Economics/Accounting from Wheaton College, Wheaton, IL. In addition, Mr. Kaiser is a graduate of the National Executive Institute, Quantico, Virginia; the Harvard Kennedy School of Government and Scottish Police College, Edinburgh, Scotland, Leadership in Counterterrorism and the Kellogg Executive Program, Northwestern University, Kellogg School of Management, Leading Strategic Change. "I am proud to join the new management team assembled by the Board of Directors and Ronald Lifton, our new Chief Executive Officer, to restructure LocatePLUS Holdings Corporation. My years of experience in identifying, managing and mitigating risk will help me perform the same for LocatePLUS," stated Ken Kaiser. "My team and I have begun the process of breaking down every aspect of all of our subsidiaries, businesses and products across vendor relationships, provisioning, operations, IT, sales, marketing, accounting, finance, legal, HR, and SOX compliance with three simple goals -- identifying, managing and mitigating our risk." About LocatePLUS LocatePLUS is an industry-leading provider of investigative solutions currently used in homeland security, anti-terrorism, and crime fighting initiatives. The Company acquires and synthesizes public information in a cross-referenced, searchable database integrated in a proprietary manner that provides rapid and efficient access via Internet and other media to comprehensive personal and location characteristics on data subjects even when inquiry information is partial or incomplete. * * * As reported in the Troubled Company Reporter on June 15, 2010, LocatePLUS Holdings Corporation intends to seek market-maker sponsorship for re-listing with the Over the Counter Bulletin Board quotation service. While the company had missed filing deadlines under previous management, the last late filing occurred with the first quarter of 2009 as the newly elected Board and new management mobilized to stabilize the company and to insure accuracy in reporting. Since that time no filings have been late and the company is believed to be in compliance with the requirements of the OTC Bulletin Board quotation service. On January 5, 2010, LocatePLUS Holdings Corporation had successfully negotiated with a major creditor, Dutchess Private Equities Fund, Ltd., to convert over $1,800,000 of existing indebtedness plus a warrant to purchase 1,125,000 shares of its Common Stock into 72,000 shares of a new Series A Preferred Stock. MAJESTIC LIQUOR: Focus Management Appointed as Financial Advisor ---------------------------------------------------------------- Focus Management Group, a nationwide business restructuring firm, has been appointed as financial advisor to Majestic Liquor Stores, Inc., under an order entered by the United States Bankruptcy Court for the Northern District of Texas Fort Worth. Majestic recently voluntarily filed for Chapter 11 bankruptcy. Majestic Liquor Stores, Inc., is Tarrant County's oldest and largest chain of retail beverage stores. Founded in 1942, Majestic operates over 45 retail locations and carries a full inventory of fine wines, beer, spirits, cigars and accessories. Majestic was incorporated in Texas in 1955 and has posted yearly gross sales in excess of $150 million. Majestic intends to emerge from bankruptcy with a plan of reorganization that preserves Majestic's profitable operations. Focus Management Group is providing Majestic with advisory services in the planning of its Chapter 11 filing and is assisting the Company in the preparation of its Plan of Reorganization and the internal administration of its Chapter 11 case. Overseeing Majestic through the Chapter 11 process is Anthony Wolf, a Managing Director of Focus Management Group. Mr. Wolf is a Certified Turnaround Professional with over 30 years of leadership experience in Chapter 11 reorganizations, financial restructurings and operational turnarounds. Mr. Wolf is based out of the firm's Dallas office and can be reached at (214) 295-3062 or by E-mail at a.wolf@focusmg.com About Focus Management Group Focus Management Group -- http://www.focusmg.com/-- provides nationwide professional services in turnaround management, insolvency proceedings, business restructuring and operational improvement with a senior-level team of 130 professionals. Headquartered in Tampa, FL, with offices in Atlanta, Chicago, Cleveland, Columbus, Dallas, Los Angeles and Philadelphia, the firm provides a full portfolio of services to distressed companies and their stakeholders, including secured lenders and equity sponsors. About Majestic Liquor Fort Worth, Texas-based Majestic Liquor Stores, Inc. -- dba Double T Discount Beer & Wine No. 2, et al. -- was incorporated in 1955. It operates Texas retail stores for the sale of liquor, beer, wine and bar supplies. The Company operates 46 retail stores and three wholesale locations. Majestic Liquor together with its affiliates filed for Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. N.D. Tex. Case No. 10-43849). J. Robert Forshey, Esq., and Jeff P. Prostok, Esq., at Forshey & Prostok, LLP, assists the Company in its restructuring effort. Focus Management Group USA Inc. is the Company's financial advisor. The Company estimated its assets and debts at $10,000,001 to $50,000,000. MEG ENERGY: Moody's Reviews 'B2' Rating on Senior Secured Loan -------------------------------------------------------------- Moody's Investors Service placed MEG Energy Corp.'s B2 Corporate Family Rating, B2 senior first secured term loan and B2 first secured bank revolver under review for possible upgrade. The review for possible upgrade reflects i) the IPO now being marketed, the proceeds of which, combined with cash on hand and other available liquidity that are expected to provide sufficient funds to substantially construct, drill and complete horizontal well pairs and commission Phase 2b of the company's Christina Lake oil sands property, a 35,000 barrels per day expansion which has a preliminary estimated cost of $1.4 billion; and ii) the success to date of the ramp-up of Phases 1 and 2, where production averaged 13,398 bpd during the first quarter of 2010 and 24,500 bpd during the month of May 2010, with the Steam Oil Ratio improving from 3.1 to 2.4 over the two referenced periods. The review will consider the success of the IPO, the ability of MEG to substantially complete and ramp-up Phase 2B as contemplated, and the likelihood of continued successful operations at Phases 1 and 2. As of March 31, 2010, MEG had cash on hand of C$853 million with an additional C$73 million in a debt service reserve account. MEG also has a $185 million revolving credit facility, maturing January 31, 2013, of which $177 million was available as of June 30, 2010. On Review for Possible Upgrade: Issuer: MEG Energy Corp. -- Corporate Family Rating, Placed on Review for Possible Upgrade, currently B2 -- Senior Secured Bank Credit Facility, Placed on Review for Possible Upgrade, currently a range of B2, LGD3, 49% Outlook Actions: Issuer: MEG Energy Corp. -- Outlook, Changed To Rating Under Review From Stable MEG's ratings have been assigned by evaluating factors that Moody's believes are relevant to the company's risk profile, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside MEG's core industry; MEG's ratings are believed to be comparable to those of other issuers with similar credit risk. The last rating action was on December 4, 2009 when MEG's existing ratings were lowered to B2 and a stable outlook assigned. MEG is a Calgary, Alberta based privately-held oil sands operating and project development company. MERUELO MADDUX: U.S. Trustee Adds 3 Members to Creditors Committee ------------------------------------------------------------------ The U.S. Trustee for Region 16 amended the Official Committee of Unsecured Creditors in the Chapter 11 cases of Meruelo Maddux Properties, Inc., et al., to reflect the resignation of L.P. Carreras & Associates, Inc., and, the appointment of these creditors to the Committee: (1) Magnusson Klemencic Associates, Inc.; (2) D.B. Electric Co.; and (3) Fast Taco No. 3, Inc. The Committee now consists of: 1. EDI Architecture, Inc. Attn: Darcy Garneau 2800 Post Oak Blvd., No. 3800 Houston, TX 77056 Tel: (713) 375-2130 2. Complete Terminal Services, Inc. Attn: William L. Clements 11105 Knott Ave., Suite E Cypress, CA 90630 Tel: (714) 891-2265 3. GeoDesign, Inc. Attn: Chris Zadoorian 2121 Town Center Place, Suite 130 Anaheim, CA 92806 Tel: (714) 634-3701 4. Magnusson Klemencic Associates, Inc. Attn: Bill Christopher 1301 Fifth Avenue, Suite 3200 Seattle, WA 98101 Tel: (206) 215-8269 5. Kirman Plumbing Company Attn: Sam J. DeFelice 794 Merchant Street Los Angeles, CA 90021 Tel: (213) 627-5456 6. D.B. Electric Co. Attn: Dominic Borra 20952 Hemmingway Street Canoga Park, CA 91304 Tel: (818) 347-3117 7. Fast Taco No. 3, Inc. Attn: Larry E. Wasserman 12800 Riverside Drive, Third Floor Studio City, CA 91607 Tel: (818) 760-3107 About Meruelo Maddux Meruelo Maddux and its affiliates filed for Chapter 11 protection on March 26, 2009 (Bankr. C. D. Calif. Lead Case No. 09-13356). Aaron De Leest, Esq., John J. Bingham, Jr., Esq., and John N. Tedford, Esq., at Danning Gill Diamond & Kollitz, represent the Debtors in their restructuring efforts. Asa S. Hami, Esq., Tamar Kouyoumjian, Esq., and Victor A. Sahn, Esq., at SulmeyerKupetz, A Prof Corp, represent the official committee of unsecured creditors as counsel. The Debtors' financial condition as of December 31, 2008, showed $681,769,000 in assets and $342,022,000 of debts. METRO-GOLDWYN-MAYER: Lenders Extend Waiver Until Sept. 15 --------------------------------------------------------- Kathy Shwiff at Dow Jones Newswires reports that Metro-Goldwyn- Mayer Inc. said its lenders agreed to give the film studio until Sept. 15 to repay interest and principal due on its bank debt. According to Dow Jones, MGM said the lenders, which previously extended the latest in a series of moratoriums on interest payments until Wednesday, "took this action in support of the company's ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders." MGM has been struggling to avoid bankruptcy after running up nearly $4 billion in debt. Lions Gate Entertainment Inc. has been holding talks with MGM about a possible merger, a person familiar with the situation has told Dow Jones, though Lions Gate faces the threat of a proxy fight from billionaire investor Carl Icahn. About Metro-Goldwyn-Mayer Metro-Goldwyn-Mayer, Inc., is an independent, privately held motion picture, television, home video, and theatrical production and Distribution Company. The Company owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming. An investor consortium, comprised of Providence Equity Partners, TPG Capital, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group, owns MGM. In May 2010, MGM's lenders agreed to let the studio skip interest and principal payments until July 14, 2010. MGM tried to sell itself in March but received low bids. MGM has hired investment bank Moelis & Company and the law firm Skadden, Arps, Slate, Meagher & Flom. In August 2009, it hired the restructuring expert Stephen F. Cooper to help lead the company. METRO-GOLDWYN-MAYER: Lions Gate Said to Approach Creditors ---------------------------------------------------------- Ronald Grover and Michael White at Bloomberg News report that Lions Gate Entertainment Corp., the independent film and TV producer, has approached creditors of ailing Metro-Goldwyn-Mayer Inc. to help shape a plan to acquire the studio. Bloomberg, citing two people aware of the private discussions, said that Lions Gate Vice Chairman Michael Burns has been meeting in New York with investors who hold some of MGM's $3.7 billion debt. Any agreement to buy Los Angeles-based MGM, which has won another loan reprieve from creditors, would have to be approved by Carl Icahn, Lions Gate's largest shareholder. He took a 10-day break from efforts to gain control of Vancouver-based Lions Gate's board so the company could make a case for certain acquisitions. About Metro-Goldwyn-Mayer Metro-Goldwyn-Mayer, Inc., is an independent, privately held motion picture, television, home video, and theatrical production and Distribution Company. The Company owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming. MGM is co- owner of the James Bond franchise. An investor consortium, comprised of Providence Equity Partners, TPG Capital, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group, owns MGM. MGM's lenders have inked agreements to let the studio skip interest and principal payments. MGM tried to sell itself in March but received low bids. MGM has hired investment bank Moelis & Company and the law firm Skadden, Arps, Slate, Meagher & Flom. In August 2009, it hired the restructuring expert Stephen F. Cooper to help lead the company. NEVADA STAR: Creditors Committee Taps Lewis R. Landau as Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 case of Nevada Star, LLC, asks the U.S. Bankruptcy Court for the Central District of California for permission to employ Lewis R. Landau, Attorney at Law, as its general bankruptcy counsel. Mr. Landau will represent the Committee in the Chapter 11 proceedings. The Committee relates that Mr. Landau's hourly rate is $450 per hour. To the best of the Committee's knowledge, Mr. Landau is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Landau can be reached at: Lewis R. Landau, Esq. 23564 Calabasas Road, Suite 104 Calabasas, CA 91302 Telefax: (888)822-4340 About Nevada Star, LLC Beverly Hills, California-based Nevada Star, LLC, filed for Chapter 11 bankruptcy protection on April 26, 2010 (Bankr. C.D. Calif. Case No. 10-26188). Michael Jay Berger, Esq., who has an office in Beverly Hills, California, assists the Company in its restructuring effort. The Company estimated it assets and debts at $10,000,001 to $50,000,000. NEXCEN BRANDS: Proposed Asset Sale Recommended by 2 Advisory Firms ------------------------------------------------------------------ NexCen Brands, Inc., disclosed that both of the nation's leading independent proxy advisory firms, Glass Lewis & Co. and ISS Proxy Advisory Services, recommend that NexCen Brands' shareholders vote "FOR" the sale of its franchise business to an affiliate of Levine Leichtman Capital Partners, as well as "FOR" the additional proposals in the Company's June 11, 2010 proxy statement. The analyses and recommendations of ISS and Glass Lewis & Co are relied upon by hundreds of major institutional investment firms, mutual funds and fiduciaries. David S. Oros, Chairman of Board of Directors of NexCen Brands, Inc., stated, "We are extremely pleased that, in addition to ISS' recommendation, Glass Lewis also has issued a recommendation in favor of the items outlined in our 2010 proxy. The support of these highly respected firms independently validates that the proposed sale of our business to an affiliate of LLCP represent the most favorable option for all of our stakeholders. As such, we continue to urge NexCen Brands' shareholders to vote "FOR" all four of the proposals." In recommending that NexCen shareholders vote "FOR" the proposed asset sale and dissolution, Glass Lewis stated: -- The NexCen "board conducted a thorough evaluation of strategic alternatives that involved multiple interested parties prior to entering into the [asset sale] agreement." -- "If the asset sale is not completed, it appears that shareholders may receive little or no value at all from any remaining alternatives, such as bankruptcy protection." -- "While it is never ideal for shareholders to be forced to undergo a liquidation/dissolution event, in light of the Company's limited alternatives and the anticipated cash distribution to shareholders, we believe the proposed asset sale and dissolution are in the best interest of shareholders."* Last week, ISS recommended its client vote "FOR" the asset sale and other proposals on the agenda. In its analysis, ISS concluded by stating that "non-approval of the liquidation transaction would likely result in foreclosure of NexCen's assets by its creditors or bankruptcy, both of which would wipe out shareholder value. Therefore, the asset sale and liquidation transaction is preferable."* As previously announced, under the terms of the sale agreement, LLCP's affiliate, Global Franchise Group, LLC, will acquire the subsidiaries of NexCen Brands that own the franchise business assets, the Company's franchise management operations in Norcross, Georgia, and its manufacturing facility in Atlanta, Georgia. As set forth in the Company's proxy statement, NexCen estimates that, assuming that the asset sale is completed on its current terms and the Company is dissolved, the cash proceeds ultimately available for distribution to the holders of NexCen common stock will be between $0.12 and $0.16 per share of common stock; however, NexCen is unable to predict the exact amount, nature and timing of any distributions to its shareholders. Closing of the sale is subject to various conditions, including approval of the shareholders of NexCen Brands. The transaction is expected to close promptly following the receipt of shareholder approval. Shareholders of record as of the close of business on June 4, 2010 are entitled to vote at the Company's July 29, 2010 Special Meeting of Stockholders. NexCen urges shareholders to follow the ISS and Glass Lewis recommendations by voting "FOR" each of the proposals on the Company's proxy card. Shareholders who have questions about the asset sale or that need assistance voting their shares should contact the Company's proxy solicitor, Innisfree M&A Incorporated, toll-free at (877) 456-3488. About NexCen Brands Based in New York, NexCen Brands, Inc. (PINK SHEETS: NEXC.PK) is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF(TM) and Shoebox New York(R) as well as five quick service restaurant franchise concepts: Great American Cookies(R), MaggieMoo's(R), Marble Slab Creamery(R), Pretzelmaker(R) and Pretzel Time(R). The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands. At September 30, 2009, the Company had total assets of=20 $103,027,000 against total liabilities of $151,536,000, resulting in stockholders' deficit of $48,509,000. At September 30, 2009, the Company's accumulated deficit was $2,732,199,000. In its financial report on Form 10-Q for the quarter ended September 30, 2009, the Company said its "financial condition and liquidity raise substantial doubt about our ability to continue as a going concern." According to the Company, "We are highly leveraged; we have no additional borrowing capacity under our credit facility; and the [Credit Facility with BTMU Capital Corporation] imposes restrictions on our ability to freely access the capital markets. In addition, the BTMUCC Credit Facility imposes various restrictions on our use of cash generated by operations." NEXITY FIN'L: Pursues Prepackaged Chapter 11 -------------------------------------------- Nexity Financial Corporation has been working diligently over the past 18 months on a debt restructuring and recapitalization effort intended to return the company to its traditionally solid financial footing. As a part of its overall restructuring initiative, Nexity Financial has been working with certain of its creditors in an effort to restructure approximately $36 million worth of existing obligations. While a significant majority of these creditors (representing over 88% of the outstanding debt) agreed to an out-of-court market- based settlement, unfortunately the remaining 12% were not willing to agree. As a result, Nexity Financial will pursue a pre-packaged chapter 11 filing to effectuate its restructuring and recapitalization. This filing will not have a direct impact on the day-to-day operations or creditors of Nexity Bank, and depositors will remain insured up to the applicable limits offered by the FDIC. The planned chapter 11 filing is part of an overall financial restructuring effort for Nexity Financial, Nexity Bank and their affiliates, which includes a private placement currently being conducted of approximately $175 million of Nexity Financial common stock. While the past 18 months have been difficult, it is encouraging to be on the doorstep of a restructuring and recapitalization that will enhance Nexity Financial's ability to support the small to medium sized business community and its correspondent bank customers. The recapitalization will allow Nexity Financial to emerge from its significant financial difficulties and be in full compliance with the capital provisions of the Cease and Desist Orders that have been put in place by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the State of Alabama Banking Department. Nexity Financial, Nexity Bank and Nexity Financial's management team remain positive about the future of the enterprise and their ability to provide excellent service and advice to Nexity Financial's clients. The planned restructuring and recapitalization will ensure that Nexity Financial is a viable and vibrant company well into the future. Nexity Financial's focus has always been and will continue to be on the small to medium sized businesses and banks that have made our nation great. NEXTWAVE WIRELESS: April 3 Balance Sheet Upside-Down by $277.3MM ---------------------------------------------------------------- NextWave Wireless Inc. filed its quarterly report on Form 10-Q, reporting a net loss attributable to NextWave of $3.4 million on $17.9 million of revenue for the three months ended April 3, 2010, compared with a net loss attributable to NextWave of $82.2 million on $16.9 million revenue for the three months ended March 28, 2009. The Company's balance sheet at April 3, 2010, showed $586.4 million in assets and $863.6 million of liabilities, for a stockholders' deficit of $277.3 million. The Company has an accumulated deficit of $1.2 billion at April 3, 2010. The Company's net income from continuing operations of $274,000 for the three months ended April 3, 2010, includes a $38.0 million non-cash gain on extinguishment of debt resulting from the debt modification of the Company's Third Lien Subordinated Secured Convertible Notes due 2011 in March 2010, which was treated as an extinguishment of debt for accounting purposes. Without this gain, the Company would have reported a loss from continuing operations of $37.7 million for the three months ended April 3, 2010. The Company used cash from operating activities of continuing operations of $7.3 million and $31.7 million during the three months ended April 3, 2010. and March 28, 2009, respectively. The Company's total unrestricted cash and cash equivalents held by continuing operations at April 3, 2010, totaled $7.9 million. The Company had a net working capital deficit of $2.8 million at April 3, 2010. At April 3, 2010, the Company's Senior Notes, having an aggregate principal amount of $178.4 million will mature in July 2011, and its Second Lien Notes, having an aggregate principal amount of approximately $149.4 million will mature in November 2011. In addition, its Third Lien Notes, having an aggregate principal amount of $548.5 million at April 3, 2010, will mature in December 2011. The increase in payment in-kind interest rates on the Notes effective March 16, 2010, will increase the principal amount of this debt upon retirement. Its current cash reserves and cash generated from operations will not be sufficient to meet these payment obligations. The Company must consummate sales of its wireless spectrum assets yielding proceeds that are sufficient to retire this indebtedness. If the Company is unable to pay its debt at maturity, the holders of its notes could proceed against the assets pledged to secure these obligations, which include the Company's spectrum assets and the capital stock of the Company's material subsidiaries, which would impair the Company's ability to continue as a going concern. Insufficient capital to repay its debt at maturity would significantly restrict the Company's ability to operate and could cause it to seek relief through a filing in the United States Bankruptcy Court. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?666d San Diego, Calif.-based NextWave Wireless Inc. is a wireless technology company that develops, produces and markets mobile multimedia and consumer electronic connectivity products including device-embedded software for mobile handsets, client-server media platforms, media sharing software for consumer electronics and pocket-sized mobile broadcast receivers. The Company also manages and maintains worldwide wireless spectrum licenses. NICHOLAS DAGNONE: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Nicholas Dagnone dba Putnam Fitness & Racquet Club 111 Old Route 6 Carmel, NY 10512 Bankruptcy Case No.: 10-37119 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Southern District of New York (Poughkeepsie) Judge: Cecelia G. Morris Debtor's Counsel: Andrea B. Malin, Esq. Genova & Malin, Attorneys The Hampton Center 1136 Route 9 Wappingers Falls, NY 12590-4332 Tel: (845) 298-1600 Fax: (845) 298-1265 E-mail: genmallaw@optonline.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by the Debtor. NORTEL NETWORKS: Avaya Not Challenging Terms of Sale ---------------------------------------------------- Avaya Inc. has clarified that it is not challenging the terms of its sale agreement with Nortel Networks Inc. contrary to the company's assertion. In a court filing, Avaya's attorney, Michael Custer, Esq., at Pepper Hamilton LLP, in Wilmington, Delaware, says that Avaya merely seeks an explanation on how Nortel and its affiliated debtors arrived at the higher values for "excess and obsolete inventory in the absence of the documented mitigation plans." Documentation supporting Nortel's mitigation plans regarding the inventory initially identified as being excess or obsolete that was required to be kept by the company has not been provided to Avaya, according to Mr. Custer. Mr. Custer said that in light of Nortel's unwillingness or inability to substantiate its mitigation plans, Avaya made an investigation and found out that the value attributable to the disputed excess and obsolete inventory falls short of Nortel's assertion by about $7.2 million. The $7.2 million represents a downward adjustment in Nortel's favor of about $14.9 million from the amount initially stated in Avaya's notice that was delivered to the company on April 19, 2010, Mr. Custer elaborates. Accordingly, Avaya served the notice asserting that the inventory value must be further decreased by about $25.5 million. Of the $25.5 million amount, approximately $22.1 million of the requisite downward adjustment was due to the lack of adequate substantiation by Nortel with respect to the mitigation plans, according to Mr. Custer. Mr. Custer said that Avaya has already agreed to release from escrow about $10.6 million representing undisputed amounts. Avaya, however, will oppose the release of any additional disputed escrow fund until an accounting arbitrator makes a determination on the disputed purchase price adjustments, according to Mr. Custer. In a related development, Nortel Networks Corp. and its four Canadian affiliates asked the Ontario Superior Court of Justice to direct the release of $19,184,300 plus accumulated interest held in escrow by Wells Fargo Bank N.A. 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: Court OKs Fees for November to January ------------------------------------------------------- Bankruptcy Judge Gross issued an order allowing the interim payment of fees and reimbursement of expenses of 18 professionals covering the fee period from November 2009 to January 2010. Of the 18 professionals, 12 are retained by the Debtors while six are retained by the Creditors Committee. Among the Debtors' professionals are Cleary Gottlieb Stein & Hamilton LLP, Crowell & Moring LLP, Ernst & Young LLP, Huron Consulting Group, Jackson Lewis LLP, John Ray, Lazard Freres & Co., Mercer (US) Inc., Morris Nichols Arsht & Tunnell LLP, Palisades Capital Advisors LLC, Punter Southall LLC and Shearman & Sterling LLP. The total amount of fees and expenses allowed for the Debtors' professionals for the period November 2009 to January 2010 is $30,375,413. The allowed amount includes Lazard's "minority transaction fee." The minority transaction fee is for the services rendered by Lazard in connection with the sale of Nortel's code division multiple access (CDMA) business, and the sale of the company's Enterprise Solutions business in Asia, North America, Caribbean and Latin America. A copy of the table summarizing the Debtors' professionals and their corresponding approved fees and expenses for the November 2009 to January 2010 interim period is available for free at: http://researcharchives.com/t/s?662a Among the Creditors' Committee's professionals are Akin Gump Strauss Hauer & Feld LLP, Ashurst LLP, Capstone Advisory Group LLC, Fraser Milner Casgrain LLP, Jefferies & Company Inc., and Richards Layton & Finger P.A. The total amount of fees and expenses allowed for the Creditors Committee's professionals for the period November 2009 to January 2010 is $5,424,844, GBP208,675 and C$1,098,188. A copy of the table summarizing the Creditors Committee's professionals and their corresponding approved fees and expenses for the November 2009 to January 2010 interim period is available for free at http://researcharchives.com/t/s?662b 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: Ernst & Young to Provide Additional Services ------------------------------------------------------------- James Scott, Esq., a partner at Ernst & Young LLP, in Raleigh, North Carolina, filed a supplemental affidavit, disclosing that E&Y LLP and the Debtors agreed to a new statement of work for the firm to provide tax compliance services in Puerto Rico. E&Y LLP will subcontract the services of Ernst & Young Puerto Rico LLC, another member firm of Ernst & Young Global Ltd., to provide the services, Mr. Scott related. E&Y LLP will collect from the Debtors all fees and expenses payable to Ernst & Young Puerto Rico for its services, he added. E&Y LLP will charge the Debtors a fixed fee of $12,700, consisting of $9,500 for work related to Nortel CALA Inc. and $3,200 for work related to Nortel Networks Inc., according to Mr. Scott. He further said that the Debtors will also reimburse E&Y LLP for its expenses. 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: U.S. Trustee Opposes Retiree Benefits Termination ------------------------------------------------------------------ Nortel Networks Inc. and its affiliates received criticisms anew after seeking Court approval to terminate their benefit plans for retirees and employees with long-term disability. In a statement, Kevin Callahan, attorney for Roberta DeAngelis, U.S. Trustee for Region 3, demanded that Nortel provide evidence at trial to support its decision to terminate the benefit plans. "This is particularly true in this case wherein the Debtors previously sought and were granted authority to pay well in excess of $50 million dollars to members of their senior management and now claim they are unable to afford $2 million dollars per month for the cost of these plans," Mr. Callahan said. Mr. Callahan also demanded that Nortel file documents describing the benefit plans and provide the affected employees with copies of those documents. He pointed out that Nortel made "summary references to provisions allegedly in the plans without attaching copies of the plans." "The Court should not rule on the motion unless and until parties have a reasonable opportunity to examine the documents referenced but not included in the motion," Mr. Callahan said. Moreover, the U.S. Trustee asked the Bankruptcy Court to issue an order for the appointment of a committee to represent the former employees and to adjourn the hearing on the proposed termination to no earlier than August 31, 2010, to provide enough time for the formation of a retirees committee. The U.S Trustee's statement came after the Bankruptcy Court was flooded with letters and responses from retirees and employees with long-term disability opposing the termination of the benefit plans. Frankie Proctor, one of the Nortel retirees, appealed to the Bankruptcy Court to compel Nortel to honor its contracts with the retirees. "We appeal to the court to rule in favor of the many hundreds of similar retirees in our situation, who will be left destitute and in the same situation as ourselves," Mr. Proctor said in a June 30 letter. "Without our pension each month, we will be left destitute and unable to pay our mortgage and other sundry bills." Mr. Proctor also called for the establishment of a court-approved trust fund to guarantee future retirement benefits. Carol Raymond, a former Nortel employee who has been receiving LTD and health benefits, complained over how the notification of the proposed termination was handled, pointing out that she was not given enough time to file a formal objection. Ms. Raymond also questioned the absence of a committee to represent retirees and employees with long-term disability. "An employee committee should be part of this inquiry before any final ruling on the cancellation of benefits. I stress that we, employees were not aware of or given any warning that this decision was coming," Ms. Raymond said in court papers. The proposed termination of the benefit also drew flak from a committee of Nortel's retired executives. The group, which calls itself the Nortel US Retirement Protection Committee, said the benefit plans are protected under a bankruptcy law, which imposes "procedural and substantive requirements " before those plans for retirees and the disabled can be terminated during a bankruptcy case. It said Nortel did not comply with the requirements. Nortel proposed the termination of the benefit plans in a bid to reduce its costs as part of its restructuring. The company expects to save as much as $8 million for the remainder of 2010 alone if the benefits plans are terminated. The proposed termination is supported by the Official Committee of Unsecured Creditors. Earlier, Nortel 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. The company also proposed that the retirees be permitted to file claims under its medical plan until December 31, 2010, for medical claims incurred before August 31, 2010. The Bankruptcy Court will consider the proposed benefit plan termination at a August 4, 2010 hearing. 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) PARAMOUNT RESOURCES: Moody's Upgrades Corp. Family Rating to 'B3' ----------------------------------------------------------------- Moody's Investors Service upgraded Paramount Resources Ltd.'s Corporate Family Rating to B3, and raised its senior secured notes rating to B3. The rating outlook is stable. The upgrade reflects Paramount's demonstrated ability to navigate challenging industry and capital market conditions and maintain a base level of production through prudent capital and liquidity management. The company repurchased approximately US$123 million of its U.S. dollar denominated notes in 2007 and 2008, issued C$92 million of equity in 2009, and scaled back capital spending to maintain sufficient liquidity throughout the downturn in 2008 and 2009. The upgrade also reflects Paramount's substantial alternate liquidity through the value in its equity investments. The combined book value of Paramount's investment portfolio was approximately C$245 million at March 31, 2010 with market value currently significantly above book value. While bank lenders have a first fixed and floating charge over the assets of Paramount (excluding approximately 12.8 million Trilogy Energy Corp. shares), the current market value of these investments is substantially in excess of this secured debt and represents a solid alternative pool of liquidity to Paramount. Paramount's operating environment, however, will remain challenging given the company's very high F&D and operating cost profile. Average net daily production declined significantly over the past 24 months -- to 10,500 boe/d in Q1, 2010 from 12,200 boe/d in Q1,2008. Although Moody's anticipate Paramount's net production to grow by roughly 10 percent (to ~11,500 boe/d) in 2010 relative to depressed 2009 levels, overall volume will still lag 2007 production by more than 10 percent. The key risk to Paramount's production performance in the next 12 to 18 months will be persistent weak natural gas prices due to ongoing supply- demand imbalance and continued rapid growth in shale gas production in North America. Any significant production decline would be viewed negatively for the rating. Overall liquidity is expected to remain supportive despite the recent acquisition of Redcliffe Exploration Inc. for C$46 million. Prior to the acquisition, at March 31, 2010, Paramount had approximately C$56 million of cash and C$109 million of availability (after excluding C$16 million LCs outstanding) under its C$125 million 364-day borrowing-base revolving credit facility. Internally generated cash flow and available borrowing capacity under the revolving credit facility should cover interest, taxes and capital expenditures over the next 12 to 15 months. Paramount's B3 CFR is supported by the company's favorable leverage on a debt to average daily production (~US$17,000) and debt to proved reserves (US$10.80) basis, supportive liquidity, and more than 50 percent management ownership. The rating is constrained by the company's small production (~11,500 boe/d) and reserves base (19.2 million boe total proved) and high full-cycle costs (US$75/boe) that have limited organic reserves replacement and hindered meaningful production growth. Upgrades: Issuer: Paramount Resources LTD -- Probability of Default Rating, Upgraded to B3 from Caa1 -- Corporate Family Rating, Upgraded to B3 from Caa1 -- Senior Secured Regular Bond/Debenture, Upgraded to B3, LGD3, 49% from Caa1, LGD4, 56% The last rating action on Paramount was in October 2007 when Moody's upgraded the company's senior secured notes to Caa1 from Caa2 . Paramount Resources Ltd. is a Calgary, Alberta based exploration and production company that produced approximately 10,500 barrels of oil equivalent per day (net) in the first quarter of 2010. The company is predominantly a natural gas producer (74% in Q1,2010) with principal properties in Alberta, the Northwest Territories, British Columbia, Montana, and North Dakota. PECAN HILLS: Case Summary & 6 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Pecan Hills Subdivision, LLC. 267 John Know Road, Suite 100 Tallahassee, FL 32303 Bankruptcy Case No.: 10-40663 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Northern District of Florida (Tallahassee) Debtor's Counsel: Robert C. Bruner, Esq. 215 Delta Court Tallahassee, FL 32303 Tel: (850) 385-0342 Fax: (850) 385-0977 E-mail: RobertCBruner@hotmail.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 6 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flnb10-40663.pdf The petition was signed by Gene Wilcox, managing member. PETER GETZ: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Peter Mark Getz Jennifer Dawn Getz 29362 Via Milagro Valencia, CA 91354 Bankruptcy Case No.: 10-38673 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Sheri Bluebond Debtor's Counsel: Louis J. Esbin, Esq. 27201 Tourney Road, Suite 122 Valencia, CA 91355-1804 Tel: (661) 254-5050 Fax: (661) 254-5252 E-mail: Esbinlaw@sbcglobal.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtors say that assets total $612,374 while debts total $1,376,530. A copy of the Joint Debtors' list of 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-38673.pdf The petition was signed by the Joint Debtors. PARAMOUNT RESOURCES: Moody's Upgrades Corp. Family Rating to 'B3' ----------------------------------------------------------------- Moody's Investors Service upgraded Paramount Resources Ltd.'s Corporate Family Rating to B3, and raised its senior secured notes rating to B3. The rating outlook is stable. The upgrade reflects Paramount's demonstrated ability to navigate challenging industry and capital market conditions and maintain a base level of production through prudent capital and liquidity management. The company repurchased approximately US$123 million of its U.S. dollar denominated notes in 2007 and 2008, issued C$92 million of equity in 2009, and scaled back capital spending to maintain sufficient liquidity throughout the downturn in 2008 and 2009. The upgrade also reflects Paramount's substantial alternate liquidity through the value in its equity investments. The combined book value of Paramount's investment portfolio was approximately C$245 million at March 31, 2010 with market value currently significantly above book value. While bank lenders have a first fixed and floating charge over the assets of Paramount (excluding approximately 12.8 million Trilogy Energy Corp. shares), the current market value of these investments is substantially in excess of this secured debt and represents a solid alternative pool of liquidity to Paramount. Paramount's operating environment, however, will remain challenging given the company's very high F&D and operating cost profile. Average net daily production declined significantly over the past 24 months -- to 10,500 boe/d in Q1, 2010 from 12,200 boe/d in Q1,2008. Although Moody's anticipate Paramount's net production to grow by roughly 10 percent (to ~11,500 boe/d) in 2010 relative to depressed 2009 levels, overall volume will still lag 2007 production by more than 10 percent. The key risk to Paramount's production performance in the next 12 to 18 months will be persistent weak natural gas prices due to ongoing supply- demand imbalance and continued rapid growth in shale gas production in North America. Any significant production decline would be viewed negatively for the rating. Overall liquidity is expected to remain supportive despite the recent acquisition of Redcliffe Exploration Inc. for C$46 million. Prior to the acquisition, at March 31, 2010, Paramount had approximately C$56 million of cash and C$109 million of availability (after excluding C$16 million LCs outstanding) under its C$125 million 364-day borrowing-base revolving credit facility. Internally generated cash flow and available borrowing capacity under the revolving credit facility should cover interest, taxes and capital expenditures over the next 12 to 15 months. Paramount's B3 CFR is supported by the company's favorable leverage on a debt to average daily production (~US$17,000) and debt to proved reserves (US$10.80) basis, supportive liquidity, and more than 50 percent management ownership. The rating is constrained by the company's small production (~11,500 boe/d) and reserves base (19.2 million boe total proved) and high full-cycle costs (US$75/boe) that have limited organic reserves replacement and hindered meaningful production growth. Upgrades: Issuer: Paramount Resources LTD -- Probability of Default Rating, Upgraded to B3 from Caa1 -- Corporate Family Rating, Upgraded to B3 from Caa1 -- Senior Secured Regular Bond/Debenture, Upgraded to B3, LGD3, 49% from Caa1, LGD4, 56% The last rating action on Paramount was in October 2007 when Moody's upgraded the company's senior secured notes to Caa1 from Caa2 . Paramount Resources Ltd. is a Calgary, Alberta based exploration and production company that produced approximately 10,500 barrels of oil equivalent per day (net) in the first quarter of 2010. The company is predominantly a natural gas producer (74% in Q1,2010) with principal properties in Alberta, the Northwest Territories, British Columbia, Montana, and North Dakota. POINT BLANK: Creditors Committee Seeks Trustee or Examiner ---------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the chapter 11 cases of Point Blank Solutions Inc. and its affiliates asked the U.S. Bankruptcy Court for the District of Delaware to appoint a Chapter 11 trustee, netDockets Blog reports. Reuters reports that the Creditors Committee is asking for a Chapter 11 trustee or an examiner. The panel is asking for the appointment of a neutral and independent fiduciary to oversee the estates and manage their restructuring process. According to netDockets, the Creditors Committee claims that a "neutral and independent fiduciary" is necessary because "the Debtors have placed the interests of insiders above maximizing value of these estates" and the Creditors' Committee "has lost all confidence in the Debtors." The report relates that the Committee asserts that Point Blank has been too slow to take action toward a reorganization in the bankruptcy cases. In addition, it is questioning Point Blank's decision, announced last week, to "consider strategic alternatives, including a sale process - without even retaining an investment banker or identifying a stalking horse bidder." According to Reuters, Point Blank, which has also been investigated by the Securities and Exchange Commission, is the subject of a shareholder lawsuit, and spends about $600,000 a month on legal fees. About Point Blank Pompano Beach, Fla.-based Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, well as select international markets. The Company is recognized as the largest producer of soft body armor in the U.S. The Company maintains facilities in Pompano Beach, Florida and Jacksboro, Tennessee. Point Blank Solutions filed for Chapter 11 on April 14, 2010 (Bankr. D. Del. Case No. 10-11255). The Company's bankruptcy counsel is Pachulski Stang Ziehl & Jones LLP. PROLIANCE INTERNATIONAL: Cases Converted to Chapter 7 ----------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered an order converting the chapter 11 cases of Proliance International, Inc. and its affiliates to chapter 7 cases, effective on July 22, 2010, netDockets Blog reports. According to the report, the Debtors sought the conversion. No objections were filed to the request. About Proliance International Based in New Haven, Connecticut, Proliance International, Inc. -- http://www.pliii.com/-- aka Godan makes automobile parts. The Company and its affiliates filed for Chapter 11 on July 2, 2009 (Bankr. D. Del. Lead Case No. 09-12278). Christopher M. Samis, Esq., and Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger PA, represent the Debtors in their restructuring efforts. The Debtors' financial condition as of June 22, 2009, showed total assets of $160.3 million and total debts of $133.5 million. The sale of Proliance's North American assets to Centrum Equities XV, LLC, was consummated under the provisions of Section 363 of the Bankruptcy Code on August 14, 2009. RICHWAL LLC: Case Summary & 15 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Richwal, LLC 147 Windsor Avenue Bardstown, KY 40004 Bankruptcy Case No.: 10-33613 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Western District of Kentucky (Louisville) Debtor's Counsel: Lisa Koch Bryant, Esq. Foley Bryant & Holloway 500 West Jefferson Street, Suite 2450 Louisville, KY 40202 Tel: 569-7550 Fax: 561-0025 E-mail: courtmail@fbhlaw.net Scheduled Assets: $2,240,072 Scheduled Debts: $3,348,893 A list of the Company's 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/kywb10-33613.pdf The petition was signed by Ralph Buckley, member/manager. RIMROD CORPORATION: Case Summary & 12 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Rimrod Corporation 94 Breezy Point The Woodlands, TX 77381 Bankruptcy Case No.: 10-35908 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Jeff Bohm Debtor's Counsel: George A. Canon, Esq. 94 Breezy Point Place The Woodlands, TX 77380 Tel: (832) 813-0618 Fax: (281) 362-0713 E-mail: canlaw@wt.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb10-35908.pdf The petition was signed by Frank G. Woodside, president. RODNEY JESSEN: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Rodney Eric Jessen 924 Sunset Way Bellevue, WA 98004 Bankruptcy Case No.: 10-18052 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Karen A. Overstreet Debtor's Counsel: Larry B. Feinstein, Esq. Vortman & Feinstein 500 Union St, Suite 500 Seattle, WA 98101 Tel: (206) 223-9595 E-mail: feinstein2010@gmail.com Scheduled Assets: $268,987 Scheduled Debts: $1,263,485 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Mr. Jessen. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Electro Serve LLC 09-____ __/__/09 Plumb Serve LLC 09-____ __/__/09 Home Service Industries, LLC 09-____ __/__/09 CDS Inc. 10-____ __/__/10 RONNY ST. LOUIS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Ronny R. St. Louis Juli M. St. Louis P.O. Box 1465 Georgetown, TX 78627 Bankruptcy Case No.: 10-11933 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: Craig A. Gargotta Debtor's Counsel: Stephen W. Sather, Esq. Barron & Newburger, P.C. 1212 Guadalupe, Suite 104 Austin, TX 78701 Tel: (512) 476-9103 Ext. 220 Fax: (512) 476-9253 E-mail: ssather@bnpclaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb10-11933.pdf The petition was signed by the Joint Debtors. SABRE HOLDINGS: S&P Affirms 'B' Rating; Outlook Now Positive ------------------------------------------------------------ Standard & Poor's Ratings Services revised its rating outlook on Southlake, Texas-based Sabre Holdings Corp. to positive from negative. At the same time, S&P affirmed all of its ratings on the company, including the 'B' corporate credit rating. "The outlook revision is based on Sabre's strengthening operating performance," said Standard & Poor's credit analyst Andy Liu. "The company experienced healthy revenue and EBITDA increases over the December 2009 and March 31, 2010 quarters, year over year. While S&P expects that growth could moderate somewhat in the June quarter as a result of the Euro debt crisis and volcano-related travel disruption, the growth rate should remain healthy, in S&P's view. Sabre is not as exposed to the European travel market as many of its peers." The 'B' corporate credit rating is supported by Sabre's leading position in the travel distribution market and the free cash flow that its fixed-cost structure permits. The company's businesses include global distribution systems that travel agents use, software solutions for travel providers, and Travelocity, an online travel agency. Since its 2007 acquisition by Silver Lake Partners and Texas Pacific Group, Sabre has not publicly disclosed its financial results. In the first quarter of 2010, revenue and EBITDA grew at a healthy pace. S&P currently expects that the second-quarter growth rate could moderate somewhat due to European macroeconomic trends and the Iceland volcanic eruption, but will remain healthy. For the 12 months ended March 31, 2010, Sabre's lease-adjusted EBITDA coverage of interest was moderately above 2x, and lease- adjusted total debt to EBITDA was around 7x. At the end of 2008, the corresponding ratios were 1.7x and close to 9.0x, respectively. S&P expects that credit ratios will continue to improve in 2010 from a combination of debt reduction and EBITDA growth. Sabre's operations tend to generate discretionary cash flow, which it has used to fund share repurchases, acquisitions, capital spending, and debt reduction in the past. The recession significantly reduced discretionary cash flow in 2007 and 2008. Discretionary cash flow began to improve in the second half of 2009, and S&P believes the momentum will continue through 2010 as higher revenue growth and lower cash restructuring expenses translate into higher discretionary cash flow. Capital spending could rise slightly this year. SALANDER-O'REILLY: Proprietor Faces State Jail Term --------------------------------------------------- Philip Boroff at Bloomberg News reports Lawrence Salander is scheduled to be sentenced for his multimillion-dollar fraud on Aug. 3 -- seven years after his Upper East Side gallery was named the world?s No. 1 by the Robb Report, a luxury chronicler. New York State Judge Michael Obus said he may sentence the 61-year-old to as much as 18 years in a state prison. William Maher, a state court judge in Peekskill, New York, said in a telephone interview with Bloomberg that white-collar criminals in the know prefer to do time in federal prisons. If Salander is indeed sentenced to six to 18 years, he'd have to serve six before being eligible for parole. About Salander-O'Reilly Established in 1976, New York-based Salander-O'Reilly Galleries LLC -- http://www.salander.com/-- exhibited and managed fine art from renaissance to contemporary. On Nov. 1, 2007, three creditors filed an involuntary chapter 7 petition against the gallery (Bankr. S.D.N.Y. Case Number 07-13476). The petitioners, Carol F. Cohen of Two Swans Farm, Cavallon Family LP, and Richard Ellenberg, disclosed total claims of more than $5 million. Amos Alter, Esq., at Troutman Sanders LLP and John Koegel, Esq., at The Koegel Group LLP represent the petitioners. On Nov. 9, 2007, the Debtor's case was converted to a chapter 11 proceeding (Bankr. S.D.N.Y. Case No. 07-30005). Alan D. Halperin, Esq., at Halperin Battaglia Raicht, LLP, represents the gallery. Salander-O'Reilly Galleries was owned by Lawrence B. Salander and his wife, Julie D. Salander, of Millbrook, New York. The couple also had membership interests in galleries including non-debtor entities, Renaissance Art Investors and Salander Decorative Arts LLC. The couple filed for chapter 11 protection on Nov. 2, 2007 (Bankr. S.D.N.Y. Case No. 07-36735). Douglas E. Spelfogel, Esq., and Richard J. Bernard, Esq. at Baker & Hostetler LLP and Susan P. Persichilli, Esq., at Buchanan Ingersoll PC represent the Debtors in their restructuring efforts. When they filed for bankruptcy, Mr. and Mrs. Salander listed assets and debts between $50 million and $100 million. Prior to bankruptcy, Mr. Salander resigned as Salander-O'Reilly Galleries' manager and turned over the control to Triax Capital Advisors LLC, an independent turnaround firm. The U.S. Bankruptcy Judge in Poughkeepsie, New York, converted the Chapter 11 case of Salander and his wife to a liquidation in Chapter 7 in May 2008, automatically bringing the appointment of a trustee. SAVVIS INC: Moody's Assigns Corporate Family Rating at 'B1' ----------------------------------------------------------- Moody's Investors Service assigned a B1 corporate family rating and a B1 probability of default rating to Savvis, Inc., a US-based provider of network neutral, global interconnection, and colocation data center services. Moody's also assigned B1 (LGD3, 44%) ratings to the senior secured credit facilities, consisting of a $550 million term loan and a $75 million revolving credit facility, being arranged for Savvis Communications Corporation, a wholly-owned subsidiary of Savvis. Savvis will guarantee the senior secured credit facility obligations. The company plans to use the borrowings to refinance existing debt, which Moody's does not rate, as well as for general corporate purposes. Finally, Moody's assigned a SGL-1 speculative grade liquidity rating for the company, indicating very good deemed liquidity over the forward twelve-month liquidity rating horizon. The rating outlook is stable. Moody's has taken these rating actions: Assignments: Issuer: Savvis, Inc. -- Corporate Family Rating, Assigned B1 -- Probability of Default Rating, Assigned B1 -- Speculative Grade Liquidity Rating, Assigned SGL-1 Issuer: Savvis Communications Corporation -- $75 million Senior Secured Revolving Credit Facility, Assigned B1 (LGD3, 44%) -- $550 million Senior Secured Term Loan, Assigned B1 (LGD3, 44%) -- Rating Outlook: Stable Savvis' B1 Corporate Family Rating reflects the underlying business risks associated with the data center management industry, including intensifying competition as capacity catches up to rising demand, the high capital intensity inherent in the company's business plans, and the ongoing expansion which is expected to consume cash resources in the near term. In addition, Moody's notes that the company derives 30% of its revenues from network services, a business that faces the secular pressure of declining pricing. Mitigating these overarching risks are the company's position as a leading global independent operator of managed services, highly specialized data center colocation facilities to large enterprises, as well as providing access to its nationwide fiber optic IP network for these customers. Moody's also recognizes the favorable near-term trends for data center services across the world, as the still-rapidly growing Internet usage, ongoing migration of corporate information technology to IP standards and increasing use of these applications are driving the rise in demand for outsourced technology services that are catching up to the data center and hosting capacity that was over built in the previous decade during the dot.com bubble. The company's very good liquidity lends further support to the rating. The stable outlook reflects Moody's view that Savvis will maintain sales growth in its colocation and managed services businesses that will outpace declines in the network business. Moody's also expects the company to retain a disciplined capital structure and a rational expansion path, such that adjusted debt/EBITDA leverage will decline to the mid- to high-3.0x range by the end of 2011. Moody's expects Savvis will have "very good" liquidity over the next twelve months, as proforma for the proposed credit facilities and following the closing of the Fusepoint acquisition, Moody's projects Savvis to have about $120 million in cash or equivalents, with nearly full access to its $75 million revolver (net of about $12 million in LC outstandings), to backstop its projected free cash flow deficits that stem from plans to build out new colocation space. Additionally, Moody's believes that the majority of the projected capital spending is success-based and could be scaled down if the company's liquidity comes under pressure. This is the first time that Moody's has rated Savvis. Savvis, located St. Louis, MO, is a provider of managed services, colocation, and network services in its 28 data centers across the world. The company generated about $870 million in revenues for the trailing twelve months ending March 31, 2010. SEDGEBROOK INC: U.S. Trustee Seeks Hearing on Ombudsman ------------------------------------------------------- Debtor Sedgebrook, Inc., operates a skilled nursing and assisted living facility, which qualifies it as a health care business as defined under Section 101(27) of the Bankruptcy Code, George F. McElreath, assistant U.S. Trustee for Region 6, points out on behalf of Region 6 U.S. Trustee William T. Neary. Section 333 of the Bankruptcy Code provides that if a debtor is a health care business, the court will order, not later than 30 days after the Petition Date, the appointment of an ombudsman to monitor the quality of patient care and represent the interests of the patients of the health care business unless the court finds that the appointment of that ombudsman is not necessary for the protection of patients under the specific facts of the case. By this motion, the U.S. Trustee asks Judge Jernigan to direct Sedgebrook to show cause why a patient care ombudsman should not be appointed in its Chapter 11 case. It is important, Mr. McElreath asserts, that the Debtor demonstrate why the appointment of a patient care ombudsman is not necessary under the facts of its Chapter 11 case for the protection of the residents who receive healthcare services at the Debtor's facility. * * * Judge Jernigan has set a hearing for August 4, 2010, to determine the issue of whether or not a patient care ombudsman will be appointed in Sedgebrook's Chapter 11 case. The Lincolnshire Debtors are directed to immediately serve notice of the Court's order via overnight courier and facsimile or e- mail to the governmental regulatory authority, which regulates their business. To provide the governmental regulatory authority the ability to readily identify the Lincolnshire Debtors' files, the Lincolnshire Debtors are directed to furnish certain information to the governmental regulatory authority at the time of service of the Court's Order: (a) All license numbers or other regulatory identification numbers; (b) All doing business as or trade names under which the Lincolnshire Debtors operate; and (c) The location of all of the Lincolnshire Debtors' operating facilities, including street and P.O. Box addresses. A courtesy copy of the Court's Order and the information will also be sent to the Office of the Texas Attorney General. The Court makes clear that service on the Texas Attorney General will not constitute service on the governmental regulatory agency unless or until the Office of the Attorney General has filed a formal entry of appearance on behalf of the regulatory agency. About the Debtors Lincolnshire Campus filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P. Slusher, Esq., at DLA Piper LLP US, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc. also filed for Chapter 11 on June 15, 2010. The Lincolnshire Debtors and the NFP Debtors are affiliates of Erickson Retirement Communities LLC. Baltimore, Maryland-based Erickson Retirement Communities LLC, along with affiliates, filed for Chapter 11 on Oct. 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves as claims and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also serving as investment and financial consultant. Alvarez & Marsal is serving as restructuring adviser. Judge Stacey G.C. Jernigan confirmed Erickson's Plan of Reorganization on April 16, 2010. The confirmed Chapter 11 Plan is premised on the $365 million sale of substantially all of the Erickson Retirement assets to Redwood Capital Investments LLC and its affiliates. The Plan became effective on April 30, 2010. Erickson own 20 continuing care retirement communities in 11 states. Among Erickson's 20 communities, eight are completed, 11 are open although in construction, and one is in development. They have 23,000 residents in total. Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Erickson Retirement Communities LLC and Lincolnshire Campus. (http://bankrupt.com/newsstand/or 215/945-7000) SEDONA DEVELOPMENT: U.S. Trustee Unable to Form Creditors Panel --------------------------------------------------------------- The Office of the U.S. Trustee for Region 14 notified the U.S. Bankruptcy Court for the District of Arizona that it was unable to appoint and official committee of unsecured creditors in the Chapter 11 case of Sedona Development Partners. The U.S. Trustee explained that there were insufficient indications of willingness from the unsecured creditors to serve in the committee. The U.S. Trustee reserves the right to appoint a committee if interest develop among the creditors. Sedona Development Partners filed for Chapter 11 bankruptcy protection on May 27, 2010 (Bankr. D. Ariz. Case No. 10-16711). The Club At Seven Canyons filed a separate Chapter 11 petition (Bankr. D. Ariz. Case No. 10-16714). John J. Hebert, Esq., Philip R. Rudd, Esq., and Wesley D. Ray, Esq., at Polsinelli Shughart PC, serve as the Debtor's bankruptcy counsel. Lender Specialty Trust is represented by Joseph E. Cotterman, Esq., and Nathan W. Blackburn, Esq., at Gallagher & Kennedy, P.A. Sedona listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. SEDONA DEVELOPMENT: Files Schedules of Assets and Liabilities ------------------------------------------------------------- Sedona Development Partners filed with the U.S. Bankruptcy Court for the District of Arizona its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property Unknown B. Personal Property $29,171,168 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $69,558,867 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $52,121,127 ----------- ----------- TOTAL $29,171,168* $121,679,994 *Excluding real property whose value is currently undetermined. Sedona Development Partners filed for Chapter 11 bankruptcy protection on May 27, 2010 (Bankr. D. Ariz. Case No. 10-16711). The Club At Seven Canyons filed a separate Chapter 11 petition (Bankr. D. Ariz. Case No. 10-16714). John J. Hebert, Esq., Philip R. Rudd, Esq., and Wesley D. Ray, Esq., at Polsinelli Shughart PC, serve as the Debtor's bankruptcy counsel. Lender Specialty Trust is represented by Joseph E. Cotterman, Esq., and Nathan W. Blackburn, Esq., at Gallagher & Kennedy, P.A. Sedona listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. SEQUA CORPORATION: Moody's Affirms 'Caa1'; Outlook Now Positive --------------------------------------------------------------- Moody's Investors Service changed Sequa Corporation's rating outlook to positive from negative and affirmed the existing ratings, including the Caa1 Corporate Family Rating and Probability of Default Rating. The change in the outlook to positive reflects the recent revenue stabilization, improvement in margin and operating cash flow generation following the sharp declines of last year in all three of its business segments. While a return to pre-decline revenue levels is not expected in the 12 to 18 month ratings' outlook time frame, Moody's believe that the implemented operational restructurings and cost-cutting activities position the company for potential rating improvement over the next year. Sequa's Caa1 CFR was affirmed as it continues to reflect the high leverage and weak interest coverage following the 2007 leveraged buyout by The Carlyle Group, combined with the impact of the subsequent economic slowdown and weak end-market demand in all of its products segments: aerospace, automotive and pre-coat metals (used for commercial building construction). Moody's anticipate increased revenue and cash flow generation going forward over the next several quarters, absent this, with leveraged at nearly 8x (inclusive of Moody's standard adjustments) and debt over 100% of revenue, the leveraged capital structure could pose renewed credit challenges as refinancing needs look beginning in 2013. However, the rating does recognize the company's long, well- established market position in its niche segments, most significantly with Chromalloy Gas Turbine where it is a major player in commercial aviation engine maintenance, repair and overhaul. Moreover, the rating and outlook recognize the adequate liquidity profile supported by balance sheet cash on hand and expected continued access to a largely undrawn revolving credit facility and a receivables purchase facility with no near-term debt maturities and adequate covenant cushion. These ratings/assessments have been affirmed: -- Corporate Family Rating at Caa1; -- Probability of Default Rating at Caa1; -- $150 million senior secured revolver due December 2, 2013, at B2 (LGD2, 27%); -- $954 million (originally $1,200 million) senior secured term loan due December 3, 2014 at B2 (LGD2, 27%); -- $500 million 11.75% senior unsecured notes due December 1, 2015 at Caa2 (LGD5, 81%); -- $258 million 13.50% (originally $211.4 million; was PIK through December 1, 2009) senior unsecured notes due December 1, 2015 at Caa2 (LGD5, 81%). The rating outlook was changed to positive from negative. The last rating action was on October 8, 2009, when the CFR was confirmed at Caa1 and the rating outlook was changed to negative. Sequa Corporation, headquartered in Tampa, FL, is a diversified industrial company operating in three business segments: aerospace through Chromalloy Gas Turbine, automotive through ARC Automotive and Casco Products and metal coating through Precoat Metals. SHORES PROPERTIES: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Shores Properties, L.P. 11512 El Camino Real, Suite 120 San Diego, CA 92130 Bankruptcy Case No.: 10-34904 Chapter 11 Petition Date: July 12, 2010 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: Joyce W. Lindauer, Esq. 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb10-34904.pdf The petition was signed by Jeff Silverstein, president. SMITHFIELD FOODS: S&P Assigns 'B-' Rating on Senior Unsec. Debt --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B-' senior unsecured debt rating and preliminary 'CCC' subordinated unsecured debt rating to Smithfield, Va.-based Smithfield Foods Inc.'s (B-/Negative/--) Rule 415 shelf registration. The new shelf has an indeterminate aggregate initial offering amount and number of debt securities. The company has indicated that it will use the net proceeds from the debt issuance for capital expenditures and general corporate purposes. The preliminary shelf ratings assume that additional indebtedness at the senior secured level would not meaningfully impact the senior unsecured debt rating. However, if the company were to issue additional secured debt, S&P would re-evaluate all existing and preliminary issue-level ratings.The ratings on Smithfield Foods Inc. reflect the continued weak operating performance in its hog production segment, the volatility of feed costs, the cyclicality of the swine industry, and the company's very high debt leverage. Ratings List Smithfield Foods Inc. Corporate credit rating B-/Negative/-- New Ratings Senior unsecured debt rating B- (preliminary) Subordinate unsecured debt rating CCC (preliminary) SOUND WORLDWIDE: Significant Operating Loss Cue Going Concern ------------------------------------------------------------- Sound Worldwide Holdings, Inc., filed on July 13, 2010, its annual report on Form 10-K for the year ended March 31, 2010. Dominic K.F. Chan & Co, in Hong Kong, 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 March 31, 2010. The independent auditors noted that the Company has incurred significant operating loss and has ceased operation during the year. "The Group's major operating subsidiary, Asian Point Investment Limited ("APIL"), has sold out all its plant and equipment at a loss of $1,108,946 resulting to a net financial loss of $2,370,460 during the year. APIL has ceased operation during the year." The Company reported a net loss of $2,370,460 on $2,280,608 of revenue for the year ended March 31, 2010, compared with a net loss of $380,290 on $4,227,552 of revenue for the year ended March 31, 2009. The Company's balance sheet at March 31, 2010, showed $1,035,646 in assets, $242,494 of liabilities, and $793,152 of stockholders' equity. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6680 Based in Hong Kong, China, Sound Worldwide Holdings, Inc., and its subsidiaries are principally engaged in manufacturing and trading of denim fabrics and garments. The Group owns production plants in Hong Kong and the People's Republic of China and its customers are mainly in the United States, Europe and Japan. The Group's business operations were conducted through its wholly-owned subsidiary, Sound Worldwide Limited, or SWL, a British Virgin Islands corporation, and its subsidiaries. At the fiscal year ended, March 31, 2010, SWL had one subsidiary, Asian Point Investment Limited, or Asian Point. SWL is holding company. Asian Point Investment Limited ceased operations in 2010. SPHERIS INC: Receives Approval of Disclosure Statement ------------------------------------------------------ Spheris Inc. has now secured court approval from Judge Kevin Gross in Delaware of the disclosure statement for its Chapter 11 liquidation plan, according to Bankruptcy Law360. As reported by yesterday's TCR, Spheris Inc. fine-tuned the disclosure statement in advance of a July 13 hearing for approval of the disclosure statement explaining the liquidating Chapter 11 plan. The revised disclosure statement says that unsecured creditors and holders of senior subordinated notes can expect a recovery of almost 23%. Bill Rochelle at Bloomberg News reports that should Spheris fail in its effort at eliminating a $21.3 million disputed claim asserted by MedQuist Inc., the return to creditors will be lower, according to the disclosure statement. According to the revised Disclosure Statement, non-priority tax claims and other secured claims have a 100% estimate recovery. General unsecured claims and senior subordinated note claims have a 22.85% estimated recovery. Subordinated claims' estimated recovery is not available, and equity interests have a 0% estimated recovery. About Spheris Inc. Headquartered in Franklin, Tennessee, Spheris Inc. -- http://www.spheris.com/-- is a global provider of clinical documentation technology and services. Spheris Inc., along with five affiliates, filed for Chapter 11 on Feb. 3, 2010 (Bankr. D. Del. Case No. 10-10352). Attorneys at Young Conaway Stargatt & Taylor, LLP, and Willkie Farr & Gallagher LLP represent the Debtors in their Chapter 11 effort. Jefferies & Company serve as financial advisors to the Debtors. Attorneys at Schulte Roth & Zabel LLP and Landis Rath & Cobb LLP serve as counsel to the prepetition and DIP lenders. Garden City Group Inc. is claims and notice agent. The petition says that assets range from $50,000,001 to $100,000,000 while debts range from $100,000,001 to $500,000,000. The estate of Spheris Inc. is now formally named SP Wind Down Inc. after it sold the business in April. CBay Inc.'s MedQuist Inc. purchased the domestic business of Spheris for $98.8 million. STATION CASINOS: Can Send Plan to Creditors for Voting ------------------------------------------------------ Station Casinos, Inc., and its debtor affiliates can now send their reorganization plan for voting after they received approval of the explanatory disclosure statement, Bloomberg News reported Under the Plan, Station Casinos would be broken into two parts, both of which would be taken over and reassembled by a partnership led by company Chairman Frank Fertitta and his brother, Vice Chairman Lorenzo Fertitta. According to Bloomberg, the company is negotiating with lower- ranking creditors to win their support before voting begins in the next few days, company attorney Thomas Kreller told Judge Zive. "It is possible that a deal could come before solicitation starts," Mr. Kreller said. The creditors must vote on the plan by Aug. 20. Judge Zive will take that tally into consideration when he decides whether to approve the plan at a court hearing scheduled to begin Aug. 27. Prior to the hearing, the Debtors, on July 13, 2010, filed a revised version of their 1st Amended joint Chapter 11 plan of reorganization dated June 15, 2010. The changes address certain comments and corrections based upon the input of various creditor constituents, as well as certain issues raised in connection with objections to the Disclosure Statement. A redlined copy of the Revised 1st Amended Plan is available for free at http://bankrupt.com/misc/SCI_Revised1stAmPlanRed.pdf A clean copy of the Revised 1st Amended Plan is available for free at http://bankrupt.com/misc/SCI_Revised1stAmendedPlan.pdf The Debtors also filed with the Court amended exhibits to the Disclosure Statement accompanying the Plan to include list of Debtors, Opco Group Sellers and a Schematic of Restructuring Transactions. A full-text copy of a Schematic of Restructuring Transactions is available for free at: http://bankrupt.com/misc/SCI_SchematicTransact.pdf About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. The Company owns and operates Red Rock Casino Resort Spa, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel in North Las Vegas, Nevada, and Sunset Station Hotel & Casino, Fiesta Henderson Casino Hotel, Wildfire Boulder, Gold Rush Casino and Lake Mead Casino in Henderson, Nevada. Station also owns a 50% interest in Green Valley Ranch Station Casino, Aliante Station Casino and Hotel, Barley's Casino & Brewing Company, The Greens and Wildfire Lanes in Henderson, Nevada and a 6.7% interest in the joint venture that owns the Palms Casino Resort in Las Vegas, Nevada. In addition, the Company manages Thunder Valley Casino near Sacramento, California on behalf of the United Auburn Indian Community. Station Casinos Inc., together with its affiliates, filed for Chapter 11 on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Station Casinos has hired Milbank, Tweed, Hadley & McCloy LLP as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP as local counsel. The Debtor is also hiring Lazard Freres & Co. LLC as investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) SUNWEST MANAGEMENT: District Court Confirms Reorganization Plan --------------------------------------------------------------- U.S. District Court Judge Michael Hogan confirmed the plan of reorganization in the Chapter 11 proceedings of Stayton SW Assisted Living, an Oregon-based senior living provider formerly known as Sunwest Management. The plan provides for the sale of up to 149 senior living facilities to a joint venture formed by Blackstone Real Estate Advisors VI L.P., Emeritus Senior Living and Columbia Pacific Advisors. The Blackstone / Emeritus joint venture will acquire the properties in exchange for cash, securities and debt valued at $1.3 billion in cash. The court found that the plan was feasible and that it would maximize value for the estate's creditors and investors. Existing Sunwest investors are permitted to receive either cash or securities in the new company, with a choice between Class A preferred interests paying six percent, or up to 49 percent in common interests in the joint venture. "I'm very pleased," said chief restructuring officer Clyde Hamstreet. "Our team has been working day and night to finalize loan modification agreements with secured lenders. They did an outstanding job to reach the point where nearly all secured lenders support the plan. Now, we can focus our attention on closing the Blackstone transaction. Over the next two weeks we will finalize the outstanding loan documents, complete preparations for the real estate and licensing transfers, and determine which claimants have chosen to invest in the new company through the Sunwest rollover member. We intend to be ready for closing by August 1." The reorganization plan also provides for the creation of a Trustco entity to hold certain non-senior living assets, such as apartments, office buildings and bare land. Receiver Michael Grassmueck will oversee Trustco and liquidate its assets over time for the benefit of the estate's investors and creditors. Properties that are not sold to the Blackstone / Emeritus joint venture or transferred into Trustco will be returned to lenders after the effective date of the plan, which will coincide with closing of the Blackstone transaction. About Stayton SW Assisted Living Formerly known as Sunwest Management, Stayton SW Assisted Living was founded in Oregon in 1991. One of the largest private senior living providers in the country and a significant Oregon employer, the company engaged Clyde Hamstreet of Hamstreet & Associates in late November 2008 to serve as chief restructuring officer. After the SEC filed suit against the company, the U.S. District Court in Eugene, Ore., entered an order on March 10, 2009, establishing a federal receivership and appointing Michael Grassmueck of The Grassmueck Group as receiver. Subsequently Stayton SW Assisted Living has been reorganizing in Chapter 11 under the supervision of the court, the receiver and the CRO. For more information, please visit http://www.sunwestmanagement.com/ To learn more about Hamstreet & Associates please visit http://www.hamstreetandassociates.com/, and visit http://www.grassmueckgroup.com/for additional information about The Grassmueck Group. About The Blackstone Group Blackstone is one of the world's leading investment and advisory firms. Its alternative asset management businesses include the management of private equity funds, real estate funds, hedge funds, credit-oriented funds, collateralized loan obligation vehicles and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory, and fund placement services. Further information is available at http://www.blackstone.com About Emeritus Senior Living Emeritus Corporation (NYSE:ESC) is a national provider of assisted living as well as Alzheimer's and related dementia care services to seniors. Emeritus is a publicly traded company that currently operates 316 communities in 36 states representing capacity for approximately 27,500 units and approximately 32,800 residents. For more information, visit http://www.emeritus.com About Sunwest Management Founded in Oregon in 1991, Sunwest Management -- http://www.sunwestmanagement.com/-- remains one of the largest private senior living providers in the country and is a significant Oregon employer. In 2008, the company engaged Hamstreet & Associates and Alvarez & Marsal to serve as financial advisors. Clyde Hamstreet is founder and principal of Hamstreet & Associates, a Portland-based, nationally recognized turnaround firm that is leading the effort to provide quality care, preserve value, and help Sunwest meet its obligations to creditors and investors. Michael Grassmueck is the founder and principal of Grassmueck Group, a national firm that specializes in fiduciary and insolvency services, which is based in Portland, Ore. He has served as a trustee in bankruptcy and as fiduciary in the state and federal courts in thousands of cases for more than 25 years. In March 2009, U.S. District Judge Michael Hogan appointed Michael Grassmueck as receiver after the Securities and Exchange Commission filed suit against Sunwest and former CEO Jon Harder, alleging securities fraud. The Company engaged Clyde Hamstreet as chief restructuring officer in late November 2008 to serve as CRO, an appointment continued in March by the U.S. District Court after the SEC lawsuit was filed. Sunwest Management has put 10 assisted living centers -- two in Oregon -- into Chapter 11 bankruptcy. Briarwood Retirement and Assisted Living Community LLC, which owns a retirement center in Springfield, and Century Fields Retirement and Assisted Living Community LLC, which owns a center in Lebanon, filed for Chapter 11 on Aug. 19, 2008. On Aug. 17, 2008, eight Sunwest-affiliated LLCs filed for Chapter 11 bankruptcy protection from creditors in Tennessee. SYNERGY TRANSPORT: Case Summary & 15 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Synergy Transport, Inc. P.O. Box 2088 Dade City, FL 33525 Bankruptcy Case No.: 10-16651 Chapter 11 Petition Date: July 13, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Judge: Michael G. Williamson Debtor's Counsel: Buddy D. Ford, Esq. 115 N. MacDill Avenue Tampa, FL 33609-1521 Tel: (813) 877-4669 Fax: (813) 877-5543 E-mail: Buddy@tampaesq.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $455,045 while debts total $1,164,987. A copy of the Company's list of 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-16651.pdf The petition was signed by Sanjiv Jain, president. TERESA GIUDICE: Faces Ch. 7 Trustee Suit for Hiding Assets ---------------------------------------------------------- Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports that court papers show Teresa Giudice, actor in the "The Real Housewives of New Jersey," and her husband, who filed for bankruptcy protection last fall, are facing a lawsuit to prevent them from taking advantage of the debt discharge available to individuals under the Bankruptcy Code. According to Chapter 7 trustee John Sywilok, tasked with rounding up the couple's assets and distributing the proceeds to creditors, the Giudices allegedly concealed key documents about their finances and business transactions. Mr. Sywilok also accuses the couple of making false statements under oath about their assets, income and expenses. According to Dow Jones, the assets the Giudices are alleged to have concealed include interests in a pizza parlor, laundromat, Teresa's TG Fabulicious clothing and accessories company and the "Skinny Italian" cookbook she authored (which promises to teach readers how to eat spaghetti and still fit into their skinny jeans). The Giudices' bankruptcy attorney wasn't immediately available for comment Thursday. Mr. Sywilok is aiming to hold a public auction on August 22 of the contents filling the family's newly built Towaco, N.J. mansion. Items for sale include home furnishings, accessories, tools and a boat. TEXAS RANGERS: Now Has Ryan Group-Led Auction on August 4 --------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Texas Rangers Baseball Partners proposed new procedures selling its Texas Rangers baseball team where a group led by current team President Nolan Ryan and sports lawyer Chuck Greenberg would continue to be the stalking horse bidder. Under the new sale procedures approved by the Bankruptcy Court, the Debtor will hold an auction on Aug. 4, if competing bids are submitted by Aug. 3. The Ryan-Greenberg originally signed prepetition a contract to purchase the club for about $304 million cash. The group has now agreed to modify the original contract by raising the price to $306.7 million. In addition, they sweetened the offer by lowering an escrow holdback from $30 million to $10 million and by not forcing other purchasers to take over the lease for the team airplane. According to the report, William K. Snyder, the chief restructuring officer for the partnerships that own the team, told the judge at the June 13 hearing that an auction on Aug. 4 wouldn't give other bidders enough time. The team wanted the auction July 22. Bloomberg continues that the judge at first took sides with the team on having an auction in July and then came down with the Aug. 4 date to compromise the positions by the team and the restructuring officer. If the Ryan-Greenberg group is outbid, they would receive a $15 million breakup fee. In return for the fee, the stalking-horse agreed to waive exclusivity provisions in the May contract. Before the auction, other bidders must be approved by Major League Baseball. 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. TRIBUNE CO: Seeks to Limit LBO Debate During Plan Hearing --------------------------------------------------------- Steven Church at Bloomberg News reports that Tribune Co. is seeking to limit debate over the legality of its 2007 buyout when it goes to court next month to try to win approval to exit bankruptcy. Lawyers for Tribune and its lenders have asked the bankruptcy judge to keep discussion about the buyout to a minimum. "We're trying to prevent a mess," company attorney James Conlan said in court today. If the confirmation hearing turns into a trial about the buyout, then the company's reorganization plan "doesn't work," Mr. Conlan said. Lower-ranking creditors claim the buyout violated bankruptcy law and are preparing to present evidence in support of their allegations during the confirmation hearing. The confirmation hearing on Tribune's reorganization plan is scheduled to start Aug. 30. The Plan built on a settlement of the buyout claims among some lower ranking creditors, lenders, including JPMorgan Chase & Co., and Tribune managers. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRUMP ENTERTAINMENT: New Owners Plan to Sell Casino --------------------------------------------------- Trump Entertainment Resorts Inc. is in talks to sell the Trump Marina Hotel Casino, Beth Jinks at Bloomberg News reported, citing a leading bondholder taking over the company. Discussions are under way with interested buyers, Marc Lasry, chief executive officer of New York-based Avenue Capital Group, told the New Jersey Casino Control Commission this week in Atlantic City. Mr. Lasry and Avenue Capital, which will own 22% of Trump Entertainment once it exits bankruptcy, gained interim licensing approval from the panel. According to Bloomberg, Mr. Lasry, along with other bondholders and company founder Donald J. Trump, won control of Trump Entertainment in April when a bankruptcy judge ruled their bid was better for creditors than a competing offer by investor Carl Icahn. Bloomberg relates that the licensing and plan approvals will pave the way for Trump Entertainment's three Atlantic City casinos to exit bankruptcy for a third time. About Trump Entertainment Based in Atlantic City, New Jersey, Trump Entertainment Resorts Inc. (NASDAQ: TRMP) -- http://www.trumpcasinos.com/-- owns and operates three casino hotel properties in Atlantic City, New Jersey, which include Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino. The Company conducts gaming activities and provides customers with casino resort and entertainment. Donald Trump is a shareholder of the Company and, as its non- executive Chairman, is not involved in the daily operations of the Company. The Company is separate and distinct from Mr. Trump's privately held real estate and other holdings. Trump Entertainment Resorts, TCI 2 Holdings, LLC, and other affiliates filed for Chapter 11 on February 17, 2009 (Bankr. D. N.J., Lead Case No. 09-13654). The Company has tapped Charles A. Stanziale, Jr., Esq., at McCarter & English, LLP, as lead counsel, and Weil Gotshal & Manges as co-counsel. Ernst & Young LLP is the Company's auditor and accountant and Lazard Freres & Co. LLC is the financial advisor. Garden City Group is the claims agent. The Company disclosed assets of $2,055,555,000 and debts of $1,737,726,000 as of December 31, 2008. Trump Hotels & Casino Resorts, Inc., filed for Chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J. Case No. 04-46898 through 04-46925). Trump Hotels' obtained the Court's confirmation of its Chapter 11 plan on April 5, 2005, and in May 2005, it exited from bankruptcy under the name Trump Entertainment Resorts Inc. WEYERHAEUSER COMPANY: Moody's Affirms Ba1 Corporate Family Rating ----------------------------------------------------------------- Moody's Investors Service affirmed Weyerhaeuser Company's Ba1 corporate family, Ba1 senior unsecured rating, SGL-1 liquidity rating and revised the outlook to stable from developing. The action follows Monday's announcement by Weyerhaeuser that its board of directors has declared a special dividend of $5.6 billion in connection with the company's plan to convert to a real estate investment trust of which $560 million will be in cash. The stable outlook reflects Moody's expectations that Weyerhaeuser has the liquidity to weather the current industry conditions and that the company's financial performance will gradually improve to generate credit protection metrics in line with its Ba1 rating. The company has not provided guidance on its post-REIT dividend and Moody's assumes that Weyerhaeuser will set its dividend at a sustainable level. Weyerhaeuser's Ba1 corporate family rating is primarily driven by the company's extensive timberland holdings, very strong liquidity by way of cash, committed term bank lines and timber assets which could be sold for additional liquidity, as well as Moody's view that Weyerhaeuser's operating performance will continue to improve, albeit slowly, as the US economy, particularly US housing starts, improves over the next 2-3 years. The company's credit metrics are weak for the Ba1 rating, but Moody's anticipates gradual longer term improvements as demand returns and actions taken to reduce costs translate into improved financial performance. The company's SGL-1 liquidity rating indicates that Weyerhaeuser has strong liquidity supported by over $1 billion of cash (after the recent $548 million debt tender and pro-forma for the $560 million REIT-related special cash dividend), an unused committed term bank line of $1 billion and unencumbered timber assets, which Moody's estimates are be worth approximately $10 billion. These liquid resources are expected to be sufficient to fund cash short falls in the near term following implementation of an ongoing dividend post-REIT and prior to expected further improvements in operating performance. Weyerhaeuser has minimal near term debt maturities and Moody's does not expect near term covenant compliance to be problematic. Outlook Actions: Issuer: MacMillan Bloedel Limited -- Outlook, Changed To Stable From Developing Issuer: Weyerhaeuser Company -- Outlook, Changed To Stable From Developing Issuer: Willamette Industries, Inc. -- Outlook, Changed To Stable From Developing Moody's last rating action on Weyerhaeuser was on December 15, 2009, when the company's Ba1 corporate family rating was affirmed and the company's outlook was changed to developing. Headquartered in Federal Way, Washington, Weyerhaeuser Company is one of the world's largest integrated forest products companies with operations in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. WHITE ENERGY: Files Third Amended Chapter 11 Plan ------------------------------------------------- Bankruptcy Law360 reports that White Energy Inc. has filed a third amended Chapter 11 plan of reorganization, resolving several objections the U.S. trustee lodged over distributions and releases regarding unsecured creditors. Headquartered in Dallas, Texas, White Energy, Inc. -- http://www.white-energy.com/-- owns three ethanol plants. White Energy's plants have a combined capacity of producing 240 million gallons of ethanol a year, making it one of the 10 largest ethanol producers in the U.S. and the second-largest gluten maker. Two plants are in Texas with the third in Kansas. White spent $323 million building the plants in Texas. The Company and its debtor-affiliates filed for Chapter 11 on May 7, 2009 (Bankr. D. Del. Lead Case No. 09-11601). Michael R. Lastowski, Esq., at Duane Morris LLP, represents the Debtors in their restructuring efforts. The Debtors tapped The Garden City Group Inc. as claims agent. On the petition date, White Energy disclosed assets and debts ranging from $100 million to $500 million. * June Bankruptcy Filings By Multi-Million Dollar Companies ----------------------------------------------------------- For the fourth straight month, no company with more than a billion dollar in assets filed for Chapter 11 bankruptcy. The month of June saw five companies with assets exceeding $100 million filing for bankruptcy: -- Garlock Sealing Technologies LLC; -- The Newark Group; -- NEC Holdings Corp; -- Corus Bankshares, Inc.; and -- Lincolnshire Campus, LLC Only one Debtor -- Garlock Sealing -- reported assets exceeding $500 million. Two other Debtors exceeded the $100 million mark -- British Virgin Islands-based Fairfield Sentry Ltd., which filed for chapter 15; and Piedmont, S.C.-based Connector 2000 Association, which filed for Chapter 9. The last time a billion-dollar company filed for Chapter 11 bankruptcy was in February -- with Movie Gallery; Aleris Deutschland Holding GmbH, a unit of Aleris International; and ESA P Portfolio TXNC GP L.L.C., an affiliate of Extended Stay Inc. June had the least number of mega-filers, so far, this year. This is in stark contrast to June last year, when 18 mega-filers commenced Chapter 11; five of which -- General Motors, Fontainebleau Las Vegas, Crescent Resources, Six Flags and Extended Stay -- exceeded the $1 billion mark in terms of assets. The Newark Group is the lone prepackaged case in June. For the year, a total of 22 prepacks/pre-arranged cases have been filed. 2010 Large Chapter 11 Cases $100MM $500MM Month - $500MM $1BB > $1BB Prepacks Total ----- -------- ------ ------ -------- ----- January 14 2 1 8 17 February 6 1 3 3 15 March 9 3 - 5 12 April 7 1 - 3 8 May 12 - - 2 12 June 4 1 - 1 5 Garlock Sealing was launched into a Case Specifics Newsletter. Of the June 2010 Chapter 11 mega-filers, only one case went to Delaware, bring the year's total to 25. None went to Manhattan. So far this year, nine mega-cases were commenced in Manhattan. In 2009, 79 mega-cases went to Delaware while 32 cases went to Manhattan. The top 13 filers for the year by total assets, thus far, are: Case Total Assets Court Petition Date ---- ------------ ----- ------------- Movie Gallery, Inc. More than $1BB VAEB 2-Feb Aleris Deutschland More than $1BB Del 5-Feb (affiliate of Aleris Int'l) Capmark Investments More than $1BB Del 15-Jan (affiliate of Capmark Financial) ESA P Portfolio More than $1BB Del 18-Feb TXNC GP L.L.C. (affiliates of Extended Stay) Mesa Air Group Inc. $975,487,000 SDNY 5-Jan Alamtis B.V. $500MM - $1BB CASB 30-Apr Centaur, LLC $500MM - $1BB Del 6-Mar Penton Media $500MM - $1BB SDNY 10-Feb Sargent Ranch LLC $500MM - $1BB CASB 4-Jan South Bay Expressway $500MM - $1BB CASB 22-Mar Garlock Sealing $500MM - $1BB CASB 22-Mar Xerium Technologies $693,511,000 Del 30-Mar Orleans Homebuilders $591,463,000 Del 1-Mar Lehman Brothers Holding Corp. remains the biggest corporate bust in history. Lehman, which filed in 2008, had $639 billion in total assets and $613 billion in total debts at that time of its filing. JUNE 2010 MEGA CASES (A) Garlock Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is a global leader in fluid-sealing products. It is a wholly owned subsidiary of EnPro Industries, Inc. (NYSE: NPO). Garlock filed for bankruptcy to address asbestos-related personal injury claims against the company. On June 5, Garlock filed a voluntary petition in the U.S. Bankruptcy Court for the Western District of North Carolina in Charlotte. It aims to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. Garlock has processed more than 900,000 asbestos claims to conclusion (including judgments, settlements and dismissals) and, together with its insurers, has paid over $1.4 billion in settlements and judgments and over $400 million in fees and expenses. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtors in their Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Two creditors group have been formed in the case -- one for unsecured creditors and another for asbestos claimants. (B) The Newark Group With headquarters in Cranford, New Jersey, The Newark Group, Inc. is an integrated global producer of 100% recycled paperboard and paperboard products with significant manufacturing and marketing operations in North America and Europe. The Newark Group Inc. filed a Chapter 11 petition on June 9 in Newark, New Jersey, with a prepackaged Chapter 11 plan. In early May, the Company solicited votes on the plan. Holders of impaired classes of claims and stock have voted in favor of the Plan. The terms of the Plan are: * $175 million in 9.75% unsecured subordinated notes will be converted into 96.5% of the new equity. Holders of these notes are expected to recover 75.4%. * Trade suppliers and unsecured creditors owed $57 million are unimpaired (will be paid in full). * Pursuant to a settlement, Frederick G. von Zuben will receive partial payment for his unsecured note claim. * Holders of 84% of the existing stock will receive 1.5% of the stock of the reorganized company plus warrants to acquire an additional 15% of the new stock. The new stock provided to existing shareholders is worth $2.4 million * The Company's employee stock ownership plan trust, which currently owns 16% of the equity will receive 2% of the new common stock. The ESOP will have stock worth $3.1 million. The Debtor will seek approval of the explanatory disclosure statement and confirmation of the Plan at a combined hearing on July 30. (C) NEC Holdings Corp Uniondale, NY based National Envelope Corporation is the largest manufacturer of envelopes in the world with 14 manufacturing facilities and 2 distribution centers and approximately 3,500 employees in the U.S. and Canada. National Envelope filed for Chapter 11 after failing to land a buyer quickly enough to suit the secured lenders. The Company blamed its financial problems on the "global recession" and rising postal rates that reduced mail volume. NEC also said more consumers are paying bills electronically. On July 15, the TCR, citing Bill Rochelle at Bloomberg News, reported that National Envelope has signed a contract to sell its business for $134.5 million to Gores Group LLC, absent higher and better offers. Gores is also offering to pay the cost of curing defaults in contracts and will assume accrued liabilities to workers and on employee benefit programs. NEC will return to the bankruptcy court on July 22 to seek approval of bidding procedures. NEC also has drawn interest from Cenveo Corp., which calls itself a "major player in the envelope business." Cenveo previously filed papers in bankruptcy court saying it had been "systematically excluded" from the sale process. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 on June 10, 2010. Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the Debtors' claims and notice agent. (D) Corus Bankshares, Inc. Corus Bankshares Inc. filed for bankruptcy protection (Bankr. N.D. Ill. Case No. 10-26881) on June 15, nine months after the Chicago- based company's banking subsidiary was placed in receivership by federal regulators. David R. Seligman, Esq., at Kirkland & Ellis LLP, represents the Debtor in its Chapter 11 effort. Corus said in March that Chapter 11 or liquidation were among the alternatives under consideration. Corus said at the time that it expects to have tax refund claims totaling $260 million. Corus promised to oppose efforts by the Federal Deposit Insurance Corp. to receive cash for the bank subsidiary's portion of the tax refunds. (E) Lincolnshire Campus, LLC Lincolnshire Campus is an affiliate of Erickson Retirement Communities. Erickson owns 20 continuing care retirement communities in 11 states. Erickson, along with affiliates, filed for Chapter 11 on Oct. 19, 2009 (Bankr. N.D. Tex. Case No. 09- 37010). As of September 30, 2009, on a book value basis, ERC had approximately $2.7 billion in assets, including $2.2 billion of property and equipment, and $3.0 billion in liabilities. The TCR reported on July 7 that Lincolnshire Campus, LLC, and its debtor affiliates are seeking permission from the U.S. Bankruptcy Court for the Northern District of Texas to sell substantially all of their assets, free and clear of all liens, to Senior Care Development, LLC, for $43,270,000, subject to higher and better bids. Bankruptcy Statistics Reuters' Chelsea Emery last month reported that U.S. corporate bankruptcies have fallen by more than half this year as loosening credit markets and an improving economy have brightened the outlook for beleaguered companies -- and brought stress to restructuring professionals. In the first six months of this year, 50 publicly traded companies filed for Chapter 11 or Chapter 7 bankruptcy in U.S. courts. That's down from 118 a year earlier, Reuters reported, citing BankruptcyData.com. "There are a lot of hungry bankruptcy professionals, restructuring firms and financial advisers," Reuters quoted Mark Jacobs, a partner at Pryor Cashman LLP, as saying. "Everyone out there is trolling for new business." The lull comes as the economy picks up steam, hedge funds become more aggressive about keeping their investments out of court, and companies benefit from the 2009 shakeout of weaker rivals. "We're on the backside of the implosion of 2008," when financial markets cratered, said Mr. Jacobs. "The cases that were going to file in the wake of the Great Recession have pretty much filed." * Blockbuster Leads Companies Nearing Chapter 11 ------------------------------------------------ Blockbuster Inc. leads a short list of large companies that may require in-court restructuring due to debt burden and liquidity issues. Some of the companies have sought forbearance or waivers from lenders due to missed payments or defaults. Blockbuster has deferred payments due on the $630 million senior secured notes on July 1, constituting a $23.9 million amortization payment. Blockbuster has entered into a forbearance agreement that expires August 13, 2010. Blockbuster said it is negotiating a "balance sheet recapitalization." Boca Raton, Fla.-based American Media Inc. deferred its May 1, 2010 interest payment on its 14% senior subordinated notes. Standard & Poor's, which lowered its rating on American Media to 'D' from 'CCC' in June, has pointed out that the Company has "high leverage, weak interest coverage, adverse secular trends in newspaper and magazine publishing, thin margin of compliance with its financial covenants, and limited liquidity." American Media however said early this month that it has reached an agreement with 90% of its bondholders for them to exchange AMI's bonds for shares of AMI common stock. After the transaction, AMI's debt will be reduced by $200 million and its leverage reduced from 7.2x to 5.1x. The Company plans on launching a debt-for-equity exchange in July and anticipates it will be concluded in August. Moelis & Company served as AMI's financial advisor in the transaction. RCLC Inc., formerly Ronson Corp., has a forbearance agreement from Wells Fargo that expires July 16. The agreement requires RCLC to consummate the sale of a unit's assets to Hawthorne TTN Holdings, LLC, or to another party. Molecular Insight Pharmaceuticals, a clinical-stage biopharmaceutical company, early this month received from lenders a fourth waiver agreement that expires July 16. The Company said it is in discussions with bondholders over a deleveraging through a debt for equity exchange. The Company has warned that if its debt obligations are accelerated or are not restructured on acceptable terms, it may seek protection under the U.S. Bankruptcy Code. Network Communications Inc. elected not to make the June 1, 2010 interest payment of approximately $9.4 million on its 10-3/4 Senior Note due 2013. The missed payment triggered an event of default for debt totaling $296 million. The Company is a publisher of information for the local real estate market in North America. The Company has obtained a second agreement from its secured lenders permitting it to have continued access to and use of its cash -- until July 300 -- as it works with its stakeholders to restructure its balance sheet. American Safety Razor Company, LLC said it has received a refinancing proposal from a major financial institution working in conjunction with a large group of its second lien lenders. The transaction involves only the Company's U.S. and Puerto Rican operations. Lenders have extended covenant waiver agreements that would allow the Company to pursue the refinancing. The Company is also reviewing a backup proposal from its first lien lenders should the second lien proposal not be consummated. American Safety Razor, which also does business as Personna American Safety Razor, is a leading maker of shaving razors and blades. Standard & Poor's Ratings Services said it lowered its corporate credit rating on Verona, Va.-based American Safety Razor to 'CC' from 'CCC+'. The outlook is negative. Skilled Healthcare Group, Inc. (NYSE: SKH) on July 7 reported that a jury in Humboldt County, California, returned a verdict against the Company related to a complaint filed more than four years ago. In the first phase of deliberations, the jury awarded the plaintiffs $613 million in statutory damages and $58 million in restitutionary damages. The Company's primary professional liability insurance coverage has been exhausted for the policy year applicable to this case. Skilled Healthcare Group, based in Foothill Ranch, California, is a holding company with subsidiary healthcare services companies, which in the aggregate had consolidated annual revenues of nearly $760 million and approximately 14,000 employees as of March 31, 2010. Direct marketer Oriental Trading Co. Inc. has waivers and amendments to its first-lien credit agreement expiring on August 18. Standard & Poor's Ratings Services, which this month lowered the corporate credit rating to 'CC' from 'CCC', said it believes Oriental will not be able to service its existing debt and will restructure its balance sheet. S&P believes the Company will have to negotiate covenant relief for fiscal 2011, secure alternative financing, or reorganize its existing capital structure. Standard & Poor's Ratings Services recently lowered its corporate credit rating on direct marketer Oriental Trading Co. Inc. to 'D' from 'CC'. Moody's also notes that the Company's capital structure is unsustainable in its current form, and it believes that any refinancing of its debt will likely result in some impairment to lenders. Centro NP LLC has hired advisers to work on a restructuring plan. Its parent faces over $3.2 billion of debt maturities in 2010. Centro NP's parent, Super LLC, is highly levered and as a result, has transferred properties to Residual JV over time, weakening Centro NP's financial profile and the position of bondholders. Fitch Ratings recently has affirmed the IDR of Centro NP LLC at 'CCC'. Centro NP is a real estate company focusing on the ownership, management and development of community and neighborhood shopping centers with total assets of $3.3 billion at March 31, 2010. The New York Racing Association is facing financial insolvency in 2011 if revenues from the video lottery terminal (VLT) racino at Aqueduct Race Track fail to materialize and expenses are not curtailed, according to an audit released July 12 by State Comptroller Thomas P. DiNapoli. After emerging from bankruptcy in 2008, NYRA continued spending more than it was taking in rather than restructuring its operations. NYRA incurred an operating deficit of $8.9 million in 2009 and is projecting a $19 million deficit in 2010. Based in Jamaica, New York, The New York Racing Association Inc. operates racing tracks in Aqueduct, Belmont Park and Saratoga. Loehmann's Inc., which emerged from bankruptcy in 2010, has recently hired three financial advisory firms with experience in turnarounds. The firms are AlixPartners LLP, Perella Weinberg Partners and Clear Thinking Group LLC, according to Bloomberg News. Loehmann's Inc. is a discount retailer with more than 60 stores. List of companies that may have to seek bankruptcy protection are: (in millions) Company Assets Trigger Event ------- ------ ------------- Ambac Fin'l $20,520MM Issued Bankruptcy Warning Blockbuster Inc. $1,319MM In Ch. 11 Talks with Lenders Trico Marine $1,010MM In Talks for Ch. 11 Financing Network Comms. $362MM Missed June 1 Interest Payment Nord Resources $37MM Defaulted on Secured Notes Liberty Star $1MM Defaulted on Secured Notes Forterra Environmental -- "No Longer Going Concern" -- NEW THIS MONTH -- American Media $900MM Missed Payments RCLC Inc. -- Forbearance Expires July 16 Molecular Insight -- Forbearance Expires July 16 American Safety -- In Talks for Refinancing Oriental Trading -- Waivers Expire Aug. 18 New York Racing Assoc. -- Facing Insolvency in 2011 Centro NP -- Working on Restructuring American Capital, with $6,757,000,000 in total assets, has escaped the need to file Chapter 11 after it received a sufficient number of tenders to complete its private offers to exchange outstanding unsecured public and private notes for cash payments and new secured notes and the related consent solicitation of its outstanding public notes. * Claims Trading Activity Declines in June, Says SecondMarket ------------------------------------------------------------- According to Bloomberg News, a report from SecondMarket Inc. said that there were $2.146 billion in claim trades in June, the second fewest this year. In amount, traded claims in June were one-third fewer than May. SecondMarket, according to Bloomberg, said that Lehman Brothers Holdings Inc., with $1.9123 billion in face amount of traded claims, was responsible for the bulk of activity. Flying J Inc. came in second place with $84.8 million in traded claims. Flying J, a vertically integrated oil producer, refiner, and marketer, had its Chapter 11 plan confirmed July 9. In number of trades, Lehman as usual led the pack with 224 trades. Smurfit-Stone Container Corp., with 114 trades, came in second, after implementing its Chapter 11 plan in June. In June claims were traded in 64 separate bankruptcy cases, compared with 47 cases in May, SecondMarket said in its report. * Colony Capital Wins Bid for $1.85-Bil. in CRE Loans ----------------------------------------------------- The Federal Deposit Insurance Corporation has closed on a sale of 40% equity interest in a limited liability company created to hold assets with an unpaid principal balance of approximately $1.85 billion from 22 failed bank receiverships. The winning bidder of the Multibank Structured Transaction is Colony Capital Acquisitions, LLC, Los Angeles, CA with a price of approximately 59% of the unpaid principal balance. The Cogsville Group, LLC, New York, NY, a minority-owned investor, was Colony's junior equity partner. As an equity participant, the FDIC will retain a 60% stake in the LLC and share in the returns on the assets. The FDIC offered 1:1 leverage financing and has agreed to guarantee Purchase Money Notes issued by the LLC in the original principal amount of $545 million. The sale was conducted on a competitive basis, with the FDIC receiving a total of 6 bids from 4 bidders on either a 40% leveraged ownership interest or a 20% unleveraged ownership interest in the newly formed LLC. Lingling Wei at Dow Jones Newswires reports that the FDIC retained the remaining 60% and offered seven-year, zero-interest financing to the Colony-Cogsville group, which reduces the venture's upfront cash input to $218 million. Dow Jones notes the deal is the first public-private setup in which a minority-owned firm has taken a stake, albeit a small one, during this economic downturn. Cogsville, an African-American- owned firm, contributed $16 million to the $218 million investment, for a 7% stake in the portfolio. "The FDIC is encouraging partnerships between large and small firms," Dow Jones quotes Don Cogsville, a former player on the U.S. national soccer team in 1988 who had worked as a lawyer and an investment banker before forming his own firm in 2007, as saying. "We see it as a major opportunity." Barclays Capital advised the FDIC on the auction, according to Dow Jones. The FDIC as receiver for the failed banks will convey to the LLC a portfolio of approximately 1,660 distressed commercial real estate loans, of which approximately 50% are delinquent. Collectively, the loans have an unpaid principal balance of $1.85 billion. Seventy-three percent of the collateral in the portfolio is located in Nevada, California, Colorado, Arizona and Georgia. As the LLC's managing equity owner, Colony will manage, service and ultimately dispose of the LLC's assets. The bid received from Colony was determined to be the offer that resulted in the greatest return to the participating receiverships. All of the loans were from banks that failed during the past 23 months. The FDIC, through its Minority and Women Outreach Program, conducts Asset Purchaser, Investor and MDI Outreach Seminars across the country to facilitate participation by firms such as Cogsville in its ongoing asset and structured sales. Congress created the Federal Deposit Insurance Corporation -- http://www.fdic.gov/-- in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,932 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars -- insured financial institutions fund its operations. * FDIC OKs New Examination Authority in Wake of WaMu Failure ------------------------------------------------------------ Phil Mattingly at Bloomberg News reports that the Federal Deposit Insurance Corp., moving to address regulatory failures that led to the collapse of Washington Mutual Inc., approved a proposal to bolster its ability to examine banks whose health is in question. "The past financial crisis provided us with a strong and sobering reminder that the activities of large banks are often complex and opaque," FDIC Chairman Sheila Bair said at a board meeting this week in Washington. "The FDIC needs to have a more active on-site presence and a greater degree of access to information in order to fully evaluate the risks to the deposit insurance fund on an ongoing basis." According to Bloomberg, the FDIC, the Federal Reserve, the Office of the Comptroller of Currency and the Office of Thrift Supervision developed the proposal, which is designed to streamline backup examinations of U.S.-insured banks. * Regulators to Assist Fin'l Institutions Hit by Oil Spill ---------------------------------------------------------- The federal financial regulatory agencies and the Conference of State Bank Supervisors issued a statement Wednesday to assist financial institutions and their customers affected by the Deepwater Horizon Mobile Offshore Drilling Unit explosion and oil spill in the Gulf of Mexico. The regulators' statement emphasizes that financial institutions are encouraged to work with their customers and consider measures to assist creditworthy borrowers affected by the Gulf oil spill. Such measures can help customers recover financially and be better positioned to honor their obligations. In the affected areas, these efforts can also contribute to the health of local communities and the long-term interests of institutions and their customers. Consistent with the regulators' longstanding practice of assessing the financial condition of institutions directly affected by natural and other disasters, examiners will consider the unusual circumstances of banks and credit unions in affected areas in determining the appropriate supervisory response to safety-and- soundness issues. The regulators are committed to working with the industry to respond to issues that arise in the aftermath of the Gulf oil spill and to minimize disruption and the burden on banks and credit unions in affected areas. * Alejandro Landa Joins Chadbourne & Parke Mexico City Office ------------------------------------------------------------- The international law firm of Chadbourne & Parke LLP announced today that Alejandro Landa has joined the firm as counsel in the Mexico City office. Mr. Landa has advised Mexican and foreign companies and financial institutions on the corporate finance components of public bids, mergers and acquisitions, joint ventures, and domestic and cross- border asset-backed securitizations. His experience includes knowledge of regulatory procedures and preparation of filings with the Mexico Ministry of Finance, the National Banking and Securities Commission, PEMEX and other federal and local government entities. He also advises on general corporate matters and transactions related to infrastructure and oil and gas projects. Mr. Landa was most recently with Thompson & Knight Abogados, S.C. in Mexico City. "We are pleased to welcome Alejandro to our Mexico City office," said Chadbourne Managing Partner Charles K. O'Neill. "We continue to aggressively add attorneys to our Latin America practice, and Alejandro will provide additional support to our clients in Mexico on a range of matters." "Alejandro brings the right mix of corporate legal expertise that we and our clients need in Mexico," added Boris Otto, Managing Partner of Chadbourne's Mexico City office. Mr. Landa earned an Industrial and Systems Engineer Degree (B.S.) from Instituto Tecnologico y de Estudios Superiores de Monterrey in 2002; a law degree (J.D. equivalent) with honors from the Instituto Tecnologico Autonomo de Mexico in 2004; and a Master in Financial Law (LL.M.) degree from Columbia University Law School in 2008. He has written articles in a range of publications on such topics as infrastructure, the global financial crisis and cross-border financing. Mr. Landa is also a member of the Association of International Petroleum Negotiators. About the Mexico City Office The Mexico City office opened in 1999. The office has one of the largest corporate practices in Mexico and the largest international and domestic litigation/arbitration practice within a non-boutique litigation law firm in Mexico. The expansion into Latin America reflected the firm's strong practices in energy, project finance, corporate finance, securitizations, cross-border mergers & acquisitions and international litigation/arbitration as well as Chadbourne's solid client relationships in the region. Lawyers in the corporate and project finance groups of the Mexico City office have extensive experience in corporate finance (including structured loans, equity offerings, debt offerings, leveraged leasing and acquisition and leveraged financing), securitizations, public finance (including securitizations, structured loans, regulatory and debt restructurings), private equity, mergers and acquisitions, infrastructure, energy, real estate and privatizations. About Chadbourne & Parke LLP Chadbourne & Parke LLP -- http://www.chadbourne.com-- an international law firm headquartered in New York City, provides a full range of legal services, including mergers and acquisitions, securities, project finance, private funds, corporate finance, venture capital and emerging companies, energy/renewable energy, communications and technology, commercial and products liability litigation, arbitration/IDR, securities litigation and regulatory enforcement, special investigations and litigation, intellectual property, antitrust, domestic and international tax, insurance and reinsurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. Major geographical areas of concentration include Russia, Central and Eastern Europe, the Middle East and Latin America. The Firm has offices in New York, Washington, DC, Los Angeles, Mexico City, London, Moscow, St. Petersburg, Warsaw, Kyiv, Almaty, Dubai and Beijing. * Focus Management Names Robert Starzyk as Managing Director ------------------------------------------------------------ Focus Management Group continued the expansion of its senior management team with the addition of Robert Starzyk as Managing Director. Mr. Starzyk will be based out of the firm's Dallas office and will serve its clients nationwide. His addition is part of Focus Management Group's nationwide growth strategy to add several senior executives to its leadership team in response to the continuing increase in demand for the firm's corporate restructuring services. "Bob is an excellent addition to the Focus team and will play a significant role in enabling us to expand our delivery of turnaround services to our nationwide clientele," said J. Tim Pruban, President of Focus Management Group. "He has an expansive knowledge of the marketplace, and his expertise in advising clients and their stakeholders will solidify our firm's restructuring solutions to a wide variety of sectors." Mr. Starzyk has more than twenty-five years of corporate restructuring and executive management experience and has served as Chief Operating Officer, Chief Restructuring Officer, Executive Vice President, and Financial Advisor for businesses ranging in size from $50 million to $2 billion. He is particularly adept in the areas of cost containment, margin enhancement, operating improvement, creditor restructuring and financing -- including debt restructures and equity infusions. Prior to joining Focus Management Group, Mr. Starzyk led the turnaround and interim management practice of a leading financial advisory firm. His engagements included successfully managing and advising businesses in a wide range of industries, including manufacturing, distribution, transportation, hi-tech, oil and gas, metals fabrication, heavy equipment, retail and printing. Mr. Starzyk, a Certified Turnaround Professional, was awarded his BS Degree in Accountancy from the University of Illinois. He is a member and past President and Board member of the Southeast Chapter of the Turnaround Management Association. He can be reached at (214) 295-3062 or via e-mail at b.starzyk@focusmg.com About Focus Management Group Focus Management Group -- http://www.focusmg.com/-- provides nationwide professional services in turnaround management, insolvency proceedings, business restructuring and operational improvement with a senior-level team of 130 professionals. Headquartered in Tampa, FL, with offices in Atlanta, Chicago, Cleveland, Columbus, Dallas, Los Angeles and Philadelphia, the firm provides a full portfolio of services to distressed companies and their stakeholders, including secured lenders and equity sponsors. * Siller Wilk LLP to Change Name to Wilk Auslander LLP ------------------------------------------------------ Siller Wilk LLP disclosed the name of the firm would be changed to Wilk Auslander LLP effective August 1, 2010. Partners Jack Wilk and Jay Auslander said that the 40-lawyer firm, which has a diverse practice, including litigation, real estate, corporate, bankruptcy, tax, trusts and estates and intellectual property practices, has experienced significant growth throughout its 23 year history and is now poised for additional expansion. The name change follows the departure of Stephen Siller. "We all wish Steve Siller well," said Wilk, who co-founded the firm in 1987 and is serving as Managing Partner and a member of the firm's management committee. "We are changing our name but otherwise remain the same firm our clients have trusted and relied on throughout our history. The strong growth we have experienced over the past several years is continuing and we are very enthusiastic about the future." Auslander, whose practice focuses on complex corporate and commercial litigation, including matters before the SEC and FINRA, noted that: "Our firm has grown over the years despite the challenging economic environment. Unlike many other firms, we have not had to reduce our ranks during the recession. The last few years have been our strongest ever and we look forward to continued growth and success." The firm's clients include hedge funds, investment banks, institutional investors, senior secured and mezzanine lenders, venture capital firms, real estate developers and operators, and companies in the public and private domestic and multinational industrial, service, media, energy, biotech, health care and technology sectors. The firm's engagements cover a wide range of general and transactional work, including mergers and acquisitions, real estate leasing, lending and conveyance transactions, commercial lending, licensing, securities offerings, tax, joint ventures, venture capital, e-commerce, estate planning, ERISA, creditors' and debtors' rights and workouts. Its litigation department has significant experience in a broad range of corporate and governmental investigations and complex corporate, commercial, securities, intellectual property, professional liability and real estate matters. In addition to its New York office, the firm has an office in Geneva, from which it services its European clients. * BOOK REVIEW: The Executive Guide to Corporate Bankruptcy ---------------------------------------------------------- Authors: Thomas J. Salerno; Craig D. Hansen; Jordan A. Kroop Publisher: Beard Books Hardcover: 728 pages List Price: $174.95 The newly revised edition of The Executive Guide To Corporate Bankruptcy is perfectly timed. As the global economy continues to deteriorate, more and more companies are sinking into insolvency with executives at their helm who need a crash course in bankruptcy realities. This excellent book will quickly get both the seasoned executive and the uninitiated lawyer up to speed on the bankruptcy process. Salerno, Kroop and Hansen understand that the reorganization process can be intimidating, puzzling, and generally unpleasant. They penetrate the opaque gloom that some lawyers tend to perpetuate. Each chapter of this book addresses a different aspect of the reorganization process, beginning with an overview of the origins and purpose of US bankruptcy laws and ending with a debunking of common myths about reorganization. In between, they discuss each chapter of the bankruptcy code; discussing the gamut from liquidations through Chapter 11 sales and full-blown reorganizations. The authors' ability to distill the bankruptcy code's complex language into comprehensible and manageable blocks of information makes the book extremely readable. The Executive Guide is full of pragmatic advice. After laying out the essential elements and key players in the restructuring process, the authors get down to the nitty gritty of navigating a distressed company through reorganization. They realistically assess the challenges that an executive should expect to face in Chapter 11. They discuss how to assuage and balance the concerns of employees and key vendors, address the inevitable creditor dissatisfaction with executive compensation, deal with members of their professional team and work effectively as an executive whose actions will be constantly scrutinized and second-guessed. The authors also provide the cautionary note that "executives preparing to embark on a reorganization are usually too preoccupied with business emergencies to think about the personal toll that the process will exact." One common flaw in books that try to be accessible while dealing with technical topics is that they fall short in providing the reader with a substantive understanding of the subject matter. The Executive Guide to Corporate Bankruptcy avoids this pitfall. The book's fourth and fifth chapters provide in-depth analysis of the strategic decisions and steps that should be taken during the restructuring process. The authors explain the importance that venue can have a case, the intricacies of first day motions and how to prepare for confirmation. There is a detailed discussion of the sale of assets during the course of a Chapter 11 restructuring and the importance of making sure that major constituencies are a part of the decision-making process. They also walk the reader through the specifics of a plan of a reorganization, explaining the dynamics of the negotiation process, especially how to understand and appreciate the needs of your constituents and how to get a plan confirmed. The icing on the cake for this book is the excellent appendix. The final section of the book includes a user-friendly glossary of commonly used bankruptcy terms and a reorganization timeline. It also includes sample documents such as debtor-in-possession (DIP) financing agreements, operating reports, first day motions and orders, management severance agreements, and more. The summary of management incentive stock plans implemented in recent restructuring transactions is particularly informative. This is a terrific book. While geared to the non-lawyer executive, it will also be a useful resource for any lawyer who wants to gain practical familiarity with the bankruptcy process. This should be a best seller in today's environment, though it may need to be delivered to most executives in a brown paper wrapper. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***