TCR_Public/100812.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

            Thursday, August 12, 2010, Vol. 14, No. 222

                            Headlines


101 CHARLES: Case Summary & 20 Largest Unsecured Creditors
ACUMENT GLOBAL: S&P Raises Corporate Credit Rating to 'B'
AES CORPORATION: Moody's Assigns 'Ba1' Rating on $800 Mil. Notes
ALMATIS B.V.: Beefs Up Proposed Reorganization Plan
ALMATIS B.V.: Disclosure Statement Hearing on August 23

ALMATIS B.V.: Seeks Approval of Oaktree Capital Settlement
AMBAC FINANCIAL: Posts $57MM Q2 Loss, Planning Prepack Bankruptcy
AMERICAN CONSOLIDATED: Lender Not Equitably Subordinated
ANCHOR BANCORP: Posts $12.2-Mil. Net Loss in Qtr. Ended June 30
ANGELO RODRIGUEZ: Section 341(a) Meeting Scheduled for Sept. 2

ANGELO RODRIGUEZ: Taps Geoffrey S. Aaronson as Bankruptcy Counsel
ANGIOTECH PHARMACEUTICALS: Hikes Net Loss to $14MM in Q2 2010
ANGIOTECH PHARMACEUTICALS: S&P Cuts Corp. Credit Rating to 'CC'
ANTIGENICS INC: June 30 Balance Sheet Upside-Down by $19.7MM
APPLETON PAPER: Posts $15.73 Million Net Loss for June 30 Quarter

APPLETON PAPERS: Updates Stock Purchase Agreement with NEX
ARIZONA HEART: Files Schedules of Assets & Liabilities
ARIZONA HEART: Gets OK to Hire Stinson Morrison as Bankr. Counsel
ARIZONA HEART: Section 341(a) Meeting Scheduled for Aug. 31
ARLINGTON JUPITER: Voluntary Chapter 11 Case Summary

BANK OF GRANITE: Posts $7.5 Million Net Loss in Q2 Ended June 30
BERNARD MADOFF: Investors Appeal Phony Profits Ruling to 2nd Cir.
BRISTOL DEVELOPMENT: Taps Brown Law Office as Bankruptcy Counsel
BRISTOL DEVELOPMENT: U.S. Trustee Unable to Form Creditors Panel
CALIFORNIA COASTAL: PBGC Objects to Firm's Chapter 11 Plan

CANAL CORP: PricewaterhouseCoopers Gave 'Tainted' Tax Advice
CANO PETROLEUM: Lenders' Forbearance Mull Sale or Merger
CARRIAGE SERVICES: Moody's Retains 'B2' Corporate Family Rating
CATHOLIC CHURCH: Wilmington to File Plan if Mediation Fails
CHEMTURA CORP: Completes Sale of Oxidized Petrolatum Product Lines

CHEMTURA CORP: Proposes HFM Diacetyl Claims Settlement
CHEMTURA CORP: Wins Further Nod to Expand Deloitte Work
CHESAPEAKE ENERGY: S&P Assigns 'BB' Rating on $2 Bil. Senior Notes
CINCINNATI BELL: Reports $9.6-Mil. Net Income for 2nd Quarter
CITADEL BROADCASTING: S&P Assigns 'BB-' Corporate Credit Rating

CITIGROUP INC: Gets Subpoeana Over Health Care Credit Cards
CLEAR CHANNEL: Stock Purchase Program May Have Neg. Implications
CLOVERLEAF ENTERPRISE: Antitrust and Contract Lawsuits Dismissed
COLONIAL BANCGROUP: Awaiting Court Ruling on FDIC-Receiver Motions
COLUMBIA LABORATORIES: June 30 Balance Sheet Upside-Down by $30MM

COMMERCIAL VEHICLE: June 30 Balance Sheet Upside-Down by $10.37MM
COMPUTER HORIZONS: Discloses Fourth Liquidating Distribution
COTT CORP: Cliffstar Deal Cues S&P to Keep B Corp. Credit Rating
DANIEL CHANG: Chapter 11 Reorganization Case Dismissed
DECRANE AEROSPACE: Moody's Downgrades Default Rating to 'Caa3'

DELTA PETROLEUM: Posts $152MM Q2 Net Loss; Non-Core Assets Sold
DEVELOPERS DIVERSIFIED: Fitch Puts 'BB' Rating on $300 Mil. Notes
DEVELOPERS DIVERSIFIED: S&P Assigns 'BB' Rating on $300 Mil. Notes
DISH NETWORK: June 30 Balance Sheet Upside-Down by $1.58 Billion
DOUGLAS ANDERSON: Case Summary & 5 Largest Unsecured Creditors

DREIER LLP: Trustee Seeks $28 Million from Amaranth
EATON AUTOMOTIVE: Case Summary & 20 Largest Unsecured Creditors
ECONOMETRIC MANAGEMENT: Voluntary Chapter 11 Case Summary
FAIRPOINT COMMS: Asks Vermont Board to Reverse Plan Rejection
FAIRPOINT COMMS: To Submit More Docs to Persuade Vt. Regulators

FAIRPOINT COMMS: Proposes 2010 Labor MOU With NNE Unions
FAIRPOINT COMMS: Reports $36.57-Mil. Net Loss for Second Quarter
FANNIE MAE: Conservator Seeks $1.5-Bil. Funding From Treasury
FREDDIE MAC: Has $4.7BB Q2 Loss, Asks for Add'l $1.8BB from Govt
GARLOCK SEALING: Asbestos Panel Has OK for Hamilton as Co-Counsel

GARLOCK SEALING: Sec. 341 Meeting Held on August 4
GARLOCK SEALING: Wants Plan Filing Exclusivity Until April 1
GENERAL GROWTH: Brookfield Aims to Re-Energize GGP After Bankr.
GENERAL GROWTH: Estimation Motion for Hughes Heirs Claims Denied
GENERAL GROWTH: Pershing Square Keeps 7.5% Stake in GGP

GENERAL MOTORS: New GM Has Added 6,900 to Payrolls
GENERAL MOTORS: $104 Million in Claims Change Hands in July
GENERAL MOTORS: Citigroup Acquires $46MM Debt Convertible to Stock
GENERAL MOTORS: New GM Can Enforce Sale Order to Halt Lawsuits
GENERAL MOTORS: Wins Nod of IAM & Teamsters Benefit Pacts

GOODYEAR TIRE: Moody's Assigns 'B1' Rating on $750 Mil. Notes
GOODYEAR TIRE: S&P Assigns 'B+' Rating on $750 Mil. Senior Notes
GREENSHIFT CORP: 1-for-10 Reverse Stock Split Takes Effect
GREYSTONE HEALTHCARE: Case Summary & 7 Largest Unsecured Creditors
GREYSTONE STAFFING: Case Summary & 16 Largest Unsecured Creditors

HALOZYME THERAPEUTICS: June 30 Balance Sheet Upside-Down by $14MM
IGI LABORATORIES: Granted NYSE Amex Listing Extension
ISTA PHARMA: June 30 Balance Sheet Upside-Down by $49.4MM
INNOVATIVE COMPANIES: Plan Offers 3% Recovery for Unsecureds
INSITE VISION: June 30 Balance Sheet Upside-Down by $38.2MM

JOHNSON MEMORIAL: Judge Confirms Reorganization Plan
KDMJ REALTY: Voluntary Chapter 11 Case Summary
LBI MEDIA: Moody's Changes Outlook to Stable, Keeps 'Caa1' Rating
LEHMAN BROTHERS: Christie's to Auction Artworks on September 29
LENDINGCLUB CORP: June 30 Balance Sheet Upside-Down by $28.7MM

LEXINGTON PRECISION: Aurora Capital Buys Majority Ownership
MARK SCHWARTZ: Voluntary Chapter 11 Case Summary
MAUI LAND: Stephen Case Owns 62.8% of Common Stock
MCKAMY DEVELOPMENT: Case Summary & 10 Largest Unsecured Creditors
MERCURY COMPANIES: Plan Promises 70% Recovery for Unsec. Creditors

METRO-GOLDWYN-MAYER: Prepackaged Bankruptcy Seen in Mid-September
MEXICANA AIRLINES: Offers Unions a Stake in Holding Company
MGM RESORTS: Posts $883 Million Net Loss for June 30 Quarter
MIDDLETOWN & NEW JERSEY: Files for Bankruptcy in New York
MIDDLETOWN AND NEW JERSEY: Voluntary Chapter 11 Case Summary

MIDWEST BANC: Gets Default Notice Under $10-Mil. Debenture
MMRGLOBAL INC: Registers 60,000,000 Shares for Resale by Dutchess
MMRGLOBAL INC: Increases Shares Issuable Under Equity Plan by 15MM
MORGANS HOTEL: June 30 Balance Sheet Upside-Down by $4.2-Mil.
MPG OFFICE: Posts $53 Million Net Loss for June 30 Quarter

MOMENTIVE PERFORMANCE: Posts $1 Million Net Loss for June 30 Qtr.
NEW ENTERPRISE: Moody's Assigns 'B2' Corporate Family Rating
NEW ENTERPRISE: S&P Assigns Corporate Credit Rating at 'B+'
OCHOA AGRO: Case Summary & 20 Largest Unsecured Creditors
OOLMAN DAIRY: Case Summary & 4 Largest Unsecured Creditors

OWENS CORNING: Court Closes Lead Bankruptcy Case
PAUL STEADMAN: Files New Schedules of Assets and Liabilities
PERPETUA HOLDINGS: Seeks Oct. 15 Extension of Plan Exclusivity
PETROQUEST ENERGY: S&P Raises Corporate Credit Rating to 'B'
PINNACLE FOODS: Moody's Upgrades Corporate Family Rating to 'B2'

PINNACLE FOODS: S&P Assigns 'B+' Rating on $442 Mil. Senior Notes
POINT BLANK: Equity Committee Taps Morrison Cohen as Co-Counsel
POINT BLANK: Equity Committee Taps Bayard, P.A., as Co-Counsel
PRM DEVELOPMENT: Voluntary Chapter 11 Case Summary
QUIKSILVER INC: S&P Puts 'B-' Rating on CreditWatch Positive

REGAL ENTERTAINMENT: Moody's Puts 'B3' Rating on $275 Mil. Notes
REGAL ENTERTAINMENT: S&P Assigns 'B-' Rating on $275 Mil. Notes
REITTER CORPORATION: Case Summary & 20 Largest Unsecured Creditors
REXNORD LLC: S&P Affirms 'B' Corporate Credit Rating
RITE AID: Plans $650 Million First-Lien Notes Offering

RITE AID: Fitch Assigns 'BB-/RR1' Ratings on $650 Mil. Notes
SCO GROUP: Trustee Seeks to Sell SCO Software Business
SEA ISLAND: Files for Chapter 11 to Sell to Oaktree/AveCap
SEITEL INC: Files Form 10-Q; Posts $22.4MM Net Loss in Q2 2010
SHOREBANK CORP: May Face Closure Absent More Bail-Out Funds

SKILLED HEALTHCARE: Westfield Capital Owns 16.63% of Common Stock
SPHERIS INC: Seeks Nod of Compromise With MedQuist, CBay
SPONGETECH DELIVERY: Two Execs Plead Not Guilty in Fraud Case
SPX CORPORATION: Fitch Assigns 'BB+' Rating on Senior Notes
SPX CORPORATION: Moody's Assigns 'Ba2' Rating on $350 Mil. Notes

SPX CORP: S&P Assigns 'BB+' Rating on $350 Mil. Senior Notes
SSI INVESTMENTS: Moody's Assigns Junk Rating on $310 Mil. Notes
SUPPLIES & SERVICES: Case Summary & 23 Largest Unsecured Creditors
TARGA RESOURCES: Moody's Assigns 'B1' Rating on $250 Mil. Notes
TACTICAL AIR: Inv. Chapter 7 Petition Dismissed by Bankr. Court

TAYLOR BEAN: Committee Wants Key Documents from Deloitte
TELKONET INC: Raises $1.3 Million From Private Placement Offering
TERRESTAR CORP: Warns of Bankruptcy; Posts $68.6M Q2 Loss
TISHMAN SPEYER: Stuyvesant Town Suit Against MetLife May Proceed
TOPS HOLDING: Moody's Reviews 'B3' Corporate Family Rating

TRANT MANOR: City National Tries to Block Cash Collateral Use
TRANT MANOR: Section 341(a) Meeting Scheduled for Sept. 7
UAL CORP: Reports July 2010 Operational Performance
UNIGENE LABORATORIES: Posts $3.64 Million Net Loss for June 30 Qtr
US CONCRETE: Posts $14.8 Million Net Loss in Q2 Ended June 30

VERENIUM CORP: Posts $4.5 Million Net Loss in Q2 Ended June 30
VITESSE SEMICONDUCTOR: Posts $33 Mil. Net Income for June 30 Qtr
WASHINGTON MUTUAL: Settles ERISA Claims for $49 Million
WELCOME MISSIONARY: Case Summary & 7 Largest Unsecured Creditors
WELLCARE HEALTH: S&P Gives Stable Outlook, Affirms 'B' Rating

WEST VIEW: U.S. Trustee Unable to Form Creditors Committee
WESTMORELAND COAL: Posts $706,000 Net Income for June 30 Quarter
W.R. GRACE: Settles Gerling Insurance Coverage Disputes
W.R. GRACE: Wins Nod of Wasau Insurance Coverage Settlement
YRC WORLDWIDE: Lowers Net Loss to $9.47MM in Second Qtr. 2010

* Laura Marcero Joins Huron Consulting Group
* 6 Mintz Levin Bankr. Attys. Part of "Best Lawyers in America"

* Chapter 11 Cases With Assets & Liabilities Below $1,000,000


                            ********


101 CHARLES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: 101 Charles Street LLC
        5550 Sterrett Place, Suite 312
        Columbia, MD 21044

Bankruptcy Case No.: 10-27966

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       District of Maryland (Baltimore)

Judge: Nancy V. Alquist

Debtor's Counsel: James A. Vidmar, Jr., Esq.
                  LOGAN, YUMKAS, VIDMAR & SWEENEY LLC
                  2530 Riva Road, Suite 400
                  Annapolis, MD 21401
                  Tel: (443) 569-5977
                  Fax: (410) 571-2798
                  E-mail: jvidmar@loganyumkas.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $10,000,001 to $50,000,000

A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-27966.pdf

The petition was signed by Annie Kim, for 101 Charles Street
Management, LLC, Debtor's managign member.


ACUMENT GLOBAL: S&P Raises Corporate Credit Rating to 'B'
---------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
corporate credit rating on Troy, Mich.-based Acument Global
Technologies Inc. to 'B' from 'B-' and removed the rating from
CreditWatch with positive implications.  At the same time, S&P
withdrew the issue-level rating on Acument's senior secured debt.
The outlook is stable.

"The upgrade reflects the company's improved financial risk
profile following the sale of its Avdel and GEC business units,"
said Standard & Poor's credit analyst Sarah Wyeth.  "The company
has minimal debt outstanding after the paydown of its $325 million
senior secured term.  This meaningful debt reduction improves
Acument's financial leverage metrics and reduces the likelihood
that the company could have difficulty meeting financial covenants
in 2011."

The rating on Acument reflects its vulnerable business profile and
aggressive financial risk profile.  The company manufactures
mechanical fastening systems.  After selling Avdel and GEC,
Acument is left with limited end market diversity, primarily
serving the automotive and, to a small extent, aerospace and
industrial markets.  The highly competitive and cyclical character
of the automotive end market combined with below-average
profitability limit the company's ability to mitigate adverse
business, financial, or economic conditions.  Customer
concentration is high, with the largest customer representing more
than 10% of sales.  However, the company's operations are
geographically balanced and recent restructuring activities could
support high-single-digit operating margins.  While S&P expects
European automotive markets to remain weak during 2010, the
outlook for demand in some light-vehicle markets, notably North
America, is slightly more positive.

The outlook is stable.  "While the financial risk profile has
improved with the meaningful debt and financial leverage
reduction, S&P recognizes the likelihood that the company could
pursue strategic options that would result in additional leverage
and the return to financial metrics consistent with a 'B'
corporate credit rating.  If the company announces a large debt-
funded acquisition or a dividend that results in debt to EBITDA
exceeding 5x, S&P could lower the rating.  The business risk
profile limits the possibility of raising the rating," Ms. Wyeth
added.


AES CORPORATION: Moody's Assigns 'Ba1' Rating on $800 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to The AES
Corporation's $800 million senior secured revolving credit
facility due January 29, 2015.  Concurrent with this rating
assignment, Moody's affirmed all of AES' ratings, including its
Corporate Family Rating and Probability of Default Rating at B1,
the Ba1 rating on a $200 million senior secured term loan due
August 10, 2011, the Ba3 rating on $290 million second priority
senior secured notes, the B1 rating on approximately $4.1 billion
senior unsecured notes, the B3 rating on $517 million trust
preferred securities and the speculative grade liquidity rating at
SGL-2.  AES' rating outlook is stable.

AES' B1 CFR reflects the company's high leverage and the
structural subordination of its recourse debt at the parent level
to the significant amount of non-recourse debt in its consolidated
capital structure at the operating subsidiaries' level.
Structural constraints are somewhat mitigated by the
diversification provided by AES' large number of subsidiaries,
their wide geographic distribution and balanced fuel mix, and the
significant proportion of the subsidiary's cash flows that are
subject to stable regulation or long-term contracts.  AES'
financial performance is expected to remain in a range that is
consistent with its current rating level.

Moody's calculates AES' adjusted parent operating cash flow (POCF,
which is aggregate subsidiary distributions net of parent level
interest expense, parent overhead expenses, income taxes and
development charges) to parent level debt at approximately 9% in
2009, and the ratio of adjusted parent operating cash flow
interest coverage of approximately 2 times.

Upstream distributions to AES and its resulting financial metrics,
however, are expected to decline modestly in 2010.  The primary
driver for the expected near-term decrease in distributions is AES
Eastern Energy, L.P. (AES Eastern: Ba1, negative outlook),
historically one of AES' top providers of distributions.  Weak
energy market conditions coupled with a sharp decline in natural
gas prices have materially impacted AES Eastern's financial
profile.  As a result, distributions to AES from AES Eastern are
expected to decline dramatically and AES' key standalone financial
metrics for 2010 are expected to weaken modestly to approximately
7% and 1.8 times, respectively.  The expected commercial operation
in 2011 of certain generating stations under construction in Chile
and Bulgaria are expected to support increased subsidiary
distributions in 2011 and beyond.

Going forward, AES' businesses in Latin America are expected to
become a larger source of cash flow while distributions from North
America based businesses are expected to decline.  Furthermore,
there will be more reliance on distributions from subsidiaries
operating in emerging market economies, such as Argentina, the
Dominican Republic, Nigeria and the Philippines.  Overall, Moody's
are the opinion that the increased reliance by AES on its Latin
American-based businesses and reduced visibility of its North
American businesses moderately increases the company's business
risk profile.

The rating action also took into consideration AES' recently
announced $500 million stock repurchase program and while sizable,
the stock repurchase program appears balanced by initiatives
completed by AES earlier this year that significantly improved the
company's financial flexibility and liquidity profile.  Those
initiatives included a transaction completed in March with a
subsidiary of the China Investment Corporation that brought in
$1.58 billion of new equity capital and AES' voluntary redemption
in May of $400 million of second priority notes.

The affirmation of AES' speculative grade liquidity rating at SGL-
2 reflects the company's improved liquidity position offset in
part by an expected weakening of covenant protection in early 2011
due primarily to the roll-off, for covenant calculation purposes,
of non-recurring distributions which occurred during the first
quarter of 2010.  Improvement, however, is expected in the second
half of 2011 with the commercial operation of generating stations
currently under construction.

AES' parent-only cash at June 30, 2010, totaled approximately
$1.8 billion.  The company's liquidity position has been further
enhanced by the recent amendment to its revolving credit facility
which resulted in a increase in commitments to $800 million from
$605 million and the extension of its termination date to January
2015 from July 2011.

The stable rating outlook considers AES' improved liquidity
profile and expected near-term moderation of financial metrics
that remain appropriate for its rating level.

The last rating action on AES occurred on March 31, 2009 when
Moody's affirmed the company's ratings, including its B1 Corporate
Family Rating.

Assignments:

  -- $800 million Senior Secured Bank Credit Facility due
     January 29, 2015, Assigned Ba1, LGD1, 4%

Withdrawals:

  -- $605 million Senior Secured Bank Credit Facility due July 5,
     2011, Withdrawn, previously rated Ba1, LGD1, 2%

LGD Point Estimate Changes:

  -- Senior Secured Credit Facilities, to LGD1, 4% from LGD1, 2%;

  -- Senior Secured Second Priority Notes, to LGD3, 37% from LGD3,
     38%.

The AES Corporation is a global power company with generation and
distribution assets in Europe, Asia, Latin America, Africa and the
United States.


ALMATIS B.V.: Beefs Up Proposed Reorganization Plan
---------------------------------------------------
Almatis B.V. and its affiliated debtors filed with the U.S.
Bankruptcy Court for the Southern District of New York on
August 6, 2010, a revised restructuring plan that would fully
repay their senior lenders and enhance recoveries for junior
lenders.

Almatis' owner, Dubai International Capital LLC, arranged the
revised restructuring proposal after obtaining debt financing
from a consortium composed by JP Morgan, Bank of America Merrill,
GSO Capital Partners LP, GoldenTree Asset Management LP and
Sankaty Credit Opportunities IV LP.

Funding for the Revised Plan will also come from a $100 million
equity contribution that DIC has already escrowed with JP Morgan.

Almatis earlier withdrew the prepackaged restructuring plan
proposed by Oaktree Capital Management L.P., the company's
largest senior lender.  The prepackaged plan was previously
rejected by mezzanine and second-lien lenders and was opposed by
DIC as it threatened to wipe out the objectors' debt claims
against and equity stake in Almatis.

Oaktree Capital, which owns 46% of Almatis' senior debt, has
already agreed to support the Revised Plan and has proposed a
settlement to the company.

"All stakeholders now support a smooth refinancing process, which
benefits all parties and the focus of attention will once more be
Almatis' customers, employees and suppliers," DIC Chief Executive
Anand Krishnan related in a statement.

                   Terms of the Revised Plan

Almatis and its affiliated debtors are currently saddled with too
much debt, which was a result of their acquisition by the Dutch
Co-op, an entity in which DIC is the primary shareholder.  The
buyout left the Debtors with more than $1 billion in debt owed to
senior lenders, second lien lenders, mezzanine lenders and junior
mezzanine lenders.

In light of this, the Revised Plan was arranged to effect a
financial reorganization of the lender claims against the
Debtors.  In connection with consummation of the Revised Plan,
the Debtors' capital structure will be rationalized.

Under the Revised Plan, senior lenders will be paid in full while
second lien lenders will receive EUR52.1 million worth of senior
paid-in-kind unsecured notes to be issued by Almatis Topco 2, a
private limited liability company to be formed on or before the
effective date of the Revised Plan and to be wholly owned by
Almatis Topco 1.

Moreover, indirect ownership of the reorganized companies will be
transferred on the effective date to Almatis Topco 1, a newly
formed Dutch corporation that will indirectly hold 100% stake in
reorganized DIC Almatis Holdco B.V. and all of its subsidiaries.
Almatis Topco 1 will be owned 60% by a DIC investor and 40% by
the mezzanine and the junior mezzanine lenders on the Plan
effective date.

The DIC investor will be an entity owned, managed or advised by
DIC to hold the ordinary shares in Almatis Topco 1; the so-called
"senior preference shares" and "permitted transferees."

Full-text copies of Almatis' First Amended Plan and Disclosure
Statement are available for free at:

     http://bankrupt.com/misc/Almatis_1stAmendedPlan.pdf
     http://bankrupt.com/misc/Almatis_1stDS.pdf

                 Implementation of Restructuring

The Revised Plan provides for the infusion of $100 million in new
equity by DIC in exchange for the DIC investor receiving
beneficial ownership of the Euro equivalent of $50 million of
senior preference shares and 60% of the ordinary equity in
Almatis Topco 1; and for borrowings of about $564,000 million
from GSO Capital, GoldenTree, Sankaty and other investors who may
purchase senior secured notes.  This funding would help fully
repay the claims of the Debtors' senior lenders.

The Revised Plan also provides for resolution of the claims by
second lien lenders through issuance of the senior paid-in-kind
unsecured notes by Almatis Topco 2.

The mezzanine and the junior mezzanine lenders will receive
beneficial ownership of junior preference shares to be issued by
Almatis Topco 1 with a liquidation preference of $16.7 million.
The mezzanine lenders and the junior mezzanine lenders will also
receive 35.08% and 4.92%, respectively, of the ordinary shares of
Almatis Topco 1.

A detailed description of the implementation procedures and
mechanics to effect the Debtors' restructuring is contained in an
implementation memorandum, a copy of which is available for free
at http://bankrupt.com/misc/Almatis_ImplementationMemo.pdf

             Management of Restructured Companies

The managing board of Almatis Topco 1 will be responsible for
managing the company.  Boards of directors or managers will be
appointed with respect to each of Almatis Topco 1's subsidiaries.

The managing board will consist of up to 11 directors.  It will
be composed of three directors nominated by the DIC investor; two
directors nominated by the mezzanine creditors; two directors
nominated by the majority holders of the senior secured notes;
two independent directors that will be selected by the other
members of the managing board; the chief executive officer and
the chief financial officer of Almatis Topco 1.

                   Revolving Credit Facility,
                     Senior Secured Notes

On the Plan Effective Date, the reorganized Debtors will be
provided a revolving credit facility of up to $50 million by JP
Morgan and Bank of America Merrill for working capital and
general corporate purposes.  The Revolver Credit Facility will
have a maturity date that is five years after the effective date.

Almatis Holdings 9 B.V. will also issue on the Plan Effective
Date senior secured notes consisting of $400 million of dollar
denominated notes and EUR110 million of Euro denominated notes,
with an option to issue up to an additional $20 million in dollar
notes.  The notes will be structurally senior to the senior paid-
in-kind unsecured notes.

Under the terms of the senior secured notes facility, Almatis
Holdings 9 B.V. and certain reorganized Debtors will be required
to comply with financial covenants relating to leverage and
capital expenditure, among other things.

                      Liquidation Analysis

Moelis & Company LLC, the Debtors' investment banker, has
prepared a liquidation analysis, showing that holders of claims
in Classes 2(a)-(k) through 4(a)-(k) and Classes 7(a)-(k) under
the revised restructuring plan will recover more value as a
result of a confirmation of the reorganization plan than through
a hypothetical chapter 7 liquidation.

To determine whether the Revised Plan satisfies the feasibility
standard, the Debtors prepared financial projections to show that
the restructured companies will have sufficient cash flow and
loan availability to pay their debt and fund their operations.

Under the Revised Plan, the restructured companies are
contemplated to emerge from Chapter 11 with about $549.1 million
of net debt.  According to the projections, this net debt will
remain relatively unchanged at $550.1 million by December 31,
2015, while EBITDA will increase from $96.3 million in the year
ending December 31, 2010, to $113.2 million in the year ending
December 31, 2015.

The restructured companies are contemplated to emerge from
Chapter 11 with about $35 million of cash on hand, in addition to
about $41 million in undrawn commitments pursuant to the
Revolving Credit Facility.

Moreover, at any time through the projection period, the
restructured companies will have available headroom in unused
commitments under the Revolving Credit Facility and will have
more than $20 million of cash on hand, resulting in a minimum
liquidity position of more than $44 million throughout the
period.

The cash flows in the projections include $40 million of capital
expenditures in China to build a new calcine facility, in
addition to necessary capital expenditures for continued
operation of the restructured companies' businesses.

Full-text copies of the documents detailing the liquidation
analysis and the financial projections are available without
charge at:

  http://bankrupt.com/misc/Almatis_LiquidationAnalysis.pdf
  http://bankrupt.com/misc/Almatis_Projections.pdf

                     Treatment of Claims

The revised restructuring plan filed by Almatis B.V. and its
debtor affiliates on August 6, 2010, as sponsored by Dubai
International Capital LLC provides that (i) administrative
expense claims and professional compensation claims will be paid
in full in cash, while (ii) holders of priority tax claims will
be treated in accordance with the terms stated in Section
1129(a)(9)(C) of the Bankruptcy Code, or at the Debtors'
election.

The Revised Plan also proposes these classification and treatment
of claims against and interests in the Debtors:

                                                       Projected
Class/Designation         Treatment                    Recovery
---------------           -------------                ---------
1(a)-(m)                 Unimpaired. Payment of            100%
Other Priority Claims    each allowed claim in
                          full in cash.

2(c)-(m)                 Unimpaired. Payment of each       100%
Senior Lender Claims     allowed claim in full in
                          cash and in the currency in
                          which it is denominated
                          under applicable agreements.

3(c)-(m)                 Impaired. In exchange for       0%-90%
Second Lien Claims       transferring its claim to a
                          newly formed intermediate
                          holding company, Almatis
                          Topco 2, each holder of an
                          allowed claim will receive
                          its pro rata share of the
                          Class 3 distribution which
                          consists of EUR52,100,000
                          worth of senior paid-in-kind,
                          unsecured notes (PIK Notes)
                          issued by Almatis Topco 2.

4(c)-(m)                 Impaired. In exchange for       0%-26%
Mezzanine Claims         transferring its claim to
                          Almatis Topco 1, the holder
                          of an allowed claim will
                          receive 35.08%, subject to
                          dilution, of ordinary
                          shares, and Junior
                          Preference Shares in the
                          company with a liquidation
                          preference of about
                          $14.65 million plus accrued
                          interest.

5(b)-(f)                 Impaired.  In exchange for       0%-9%
Junior Mezzanine Claims  transferring its claim to
                          Almatis Topco 1, the holder
                          of an allowed claim will
                          receive 4.92%, subject to
                          dilution, of ordinary shares
                          in the company, and Junior
                          Preference Shares with a
                          liquidation preference of
                          about $2.05 million plus
                          accrued interest.

6(a)-(m)                 Unimpaired. Except to the         100%
Other Secured Claims     extent that the holder of
                          an allowed claim agrees to
                          a less favorable treatment,
                          each allowed claim will be
                          reinstated or otherwise
                          rendered unimpaired. Each
                          allowed claim will be
                          deemed to be in a separate
                          class.

7(a)-(m)                 Unimpaired. Except to the        100%
General Unsecured        extent that a holder of an
Claims                   allowed general unsecured
                          claim agrees to a less
                          favorable treatment, each
                          claim will be reinstated,
                          paid in full or otherwise
                          rendered unimpaired and
                          the applicable reorganized
                          debtor will remain liable
                          for that claim.

                          If a claim arises based on
                          liabilities incurred in or
                          to be paid in the ordinary
                          course of business, or
                          pursuant to an executory
                          contract and unexpired lease,
                          the holder of that claim
                          will be paid in cash by the
                          applicable debtor pursuant
                          to the terms of a particular
                          deal or agreement giving
                          rise to the claim.

Classes 8(a)-(m)         Impaired.  Claims will be
Intercompany Claims      reinstated as of the
                          effective date of the
                          restructuring plan,
                          except as provided in the
                          Implementation Memorandum.

Classes 9(a)             Unimpaired. Except to the         100%
Subordinated Claims      extent that a holder of an
against DIC Almatis      allowed claim agrees to a
Holdco B.V.              less favorable treatment or
                          has been paid prior to the
                          effective date, each claim
                          will be reinstated, paid in
                          full or otherwise rendered
                          unimpaired and DIC Almatis
                          Holdco B.V. will remain
                          liable for that allowed
                          claim.

9(b)-(m)                 Impaired. Each allowed claim       0%
Other Subordinated       will be cancelled and
Claims                   discharged and the holder of
                          the claim will not receive
                          any distribution under the
                          revised plan.

10(a)                    Unimpaired. In exchange for a      N/A
Interests in DIC         payment of EUR1, the holder of
Almatis Holdco           the interests will transfer
B.V.                     those interests to Almatis
                          Topco 2 on the effective date
                          in accordance with the
                          Implementation Memorandum.

10(b)-(m)                Unimpaired. To preserve the        N/A
Other Interests          Debtors' corporate structure
                          for the benefit of holders of
                          allowed second lien claims,
                          allowed mezzanine claims, and
                          allowed junior mezzanine
                          claims, the interests in each
                          of classes 10(b)-(m) will be
                          reinstated.

Only holders of impaired claims are entitled to vote on the
Revised Plan.

                       About Almatis Group

Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion as of the bankruptcy filing.

Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  Linklaters LLP
is the special English and German counsel and De Brauw Blackstone
Westbroek N.V. is Dutch counsel.  Epiq Bankruptcy Solutions, LLC,
serves as claims and notice agent.

Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding and
ancillary foreign proceedings undertaken by Almatis B.V., and its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


ALMATIS B.V.: Disclosure Statement Hearing on August 23
-------------------------------------------------------
Almatis B.V. and its affiliated debtors ask the U.S. Bankruptcy
Court for the Southern District of New York to approve the
disclosure statement describing the revised restructuring plan
they filed on August 6, 2010.

Michael Rosenthal, Esq., at Gibson Dunn & Crutcher LLP, in New
York, asserts that the Disclosure Statement contains sufficient
information for creditors to decide on whether to support the
Revised Plan.

The 184-page Disclosure Statement contains a summary of the
Revised Plan, including a detailed description of the
classification and treatment of claims against and interests in
the Debtors as well as a summary of the Debtors' debt before and
after their bankruptcy filing, Mr. Rosenthal relates.

Events leading to the bankruptcy filing, the risk factors
affecting the Revised Plan, tax consequences, the administration
of the Debtors' business both during the bankruptcy cases and
post-emergence are also discussed in the Disclosure Statement.
Also contained in the disclosure document is a liquidation
analysis of the value of the Debtors' assets in a hypothetical
Chapter 7 liquidation, and projections relating to the Debtors'
anticipated future business performance.

"The Debtors believe that the disclosure statement contains
adequate information as the phrase is defined in section
1125(a)(1) of the Bankruptcy Code," Mr. Rosenthal says in court
papers.

Judge Martin Glenn will consider approval of the Disclosure
Statement at a hearing scheduled for August 23, 2010.  Deadline
for filing objections is August 16, 2010.

                     Solicitation Procedures

The Debtors also seek permission from Judge Glen to implement a
uniform process for the solicitation of votes in connection with
their revised restructuring plan.

In accordance with bankruptcy law, the Debtors propose to send a
solicitation package by first class mail to creditors entitled to
vote on the Revised Plan dated August 6, 2010.

The solicitation package will contain a written notice of the
confirmation hearing, a copy of the Revised Plan and Disclosure
Statement, a ballot and other documents as the Court may direct
or approve.

The Debtors propose that the date by which the Court issues an
order approving the Disclosure Statement be set as the record
date to determine creditors who may be entitled to receive a
solicitation package and to vote on the Revised Plan.

The Debtors intend to send to each impaired creditor entitled to
vote on the Revised Plan only the solicitation package
appropriate for the classes applicable to that creditor, and only
one solicitation package even if the creditor has claims against
more than one Debtor.

Holders of unclassified and unimpaired claims as well as those
who are deemed to reject the Revised Plan will not receive a
solicitation package.  Instead, a notice containing a list of
non-voting classes and other pertinent information will be
published in the global edition of The Wall Street Journal no
later than August 31, 2010.

Non-voting creditors can also obtain a copy of the Revised Plan
and Disclosure Statement, free of charge at a webpage created by
Epiq Bankruptcy Solutions, the Debtors' notice and balloting
agent, related to the bankruptcy cases.

Epiq will be permitted to inspect, monitor and supervise the
solicitation process, to tabulate the ballots and to certify to
the Court the results of the balloting.

The Debtors also seek approval of the forms of ballots and a
process for ballot distribution to creditors.  The proposed forms
are based upon Official Form No. 14, but have been modified to
meet the particular requirements of the Debtors' bankruptcy cases
and their Revised Plan.

The Debtors further propose that creditors entitled to vote be
required to submit their ballots on or before September 10, 2010.
Ballots must be delivered through any of these means:

  * If by first class mail:

     Epiq Bankruptcy Solutions, LLC
     Attn: Almatis B.V. Ballot Processing Center
     FDR Station, P.O. Box 5014
     New York, NY 10153-5014

  * If by overnight courier or hand delivery:

     Epiq Bankruptcy Solutions, LLC
     Attn: Almatis B.V. Ballot Processing Center
     757 Third Avenue, Third Floor
     New York, NY 10017

  * If by electronic mail:

     tabulation@epiqsystems.com
     Subject Line: Attn: Almatis B.V Ballot Processing

Ballots sent through facsimile will not be counted unless
approved in advance by the Debtors in writing.

Aside from the solicitation procedures, the Debtors also intend
to implement a process for tabulating the ballots, subject to
Court approval.

The Debtors ask the Court to set September 15, 2010, as the
hearing date to consider confirmation of their Revised Plan and
September 10, 2010, as the deadline for creditors to file their
objections to the confirmation.

The Court will consider approval of the proposed solicitation and
vote tabulation procedures at a hearing scheduled for August 23,
2010.  Deadline for filing objections is August 16, 2010.

                       About Almatis Group

Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion as of the bankruptcy filing.

Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  Linklaters LLP
is the special English and German counsel and De Brauw Blackstone
Westbroek N.V. is Dutch counsel.  Epiq Bankruptcy Solutions, LLC,
serves as claims and notice agent.

Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding and
ancillary foreign proceedings undertaken by Almatis B.V., and its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


ALMATIS B.V.: Seeks Approval of Oaktree Capital Settlement
----------------------------------------------------------
Almatis B.V. and its affiliated debtors ask Judge Martin Glenn to
approve a settlement of claims with their largest senior lender,
Oaktree Capital Management L.P.

The Oaktree deal was hammered out to "remove potential obstacles"
to the quick confirmation of Almatis' revised restructuring plan,
according to Michael Rosenthal, Esq., at Gibson Dunn & Crutcher
LLP, in New York.

Oaktree Capital, which owns 46% of Almatis' senior debt, earlier
opposed the Revised Plan and considered revising its own
prepackaged restructuring proposal for the company by offering
junior lenders some immediate recovery of their debt.  The senior
lender eventually dropped its objection and proposed a settlement
to Almatis.

Under the settlement deal, Almatis agreed to make full payment of
its senior debt to Oaktree Capital on the effective date of the
Revised Plan.

Almatis also agreed to pay up to $5.25 million as an allowed
administrative expense claim to settle Oaktree Capital's claims
for fees, expenses and other charges.  The company, however, is
not required to make the payment if the effective date of the
Revised Plan does not occur.

Oaktree Capital, meanwhile, agreed to waive any potential
argument that payment of its senior secured claims should be made
in U.S. dollars.  The senior lender is required under the deal to
waive any objection to the Revised Plan, and to support any
request by Almatis for the Plan's confirmation and Almatis'
continued use of cash collateral.

The deal also requires Almatis and Oaktree Capital to exchange
mutual releases from all claims or lawsuits.

The Almatis/Oaktree Settlement is formalized in a 9-page
agreement, a full-text copy of which is available for free at:

  http://bankrupt.com/misc/Almatis_SettlementOaktree.pdf

Judge Glenn will consider approval of the Settlement at the
hearing scheduled for August 23, 2010.  Deadline for filing
objections is August 16, 2010.

                       About Almatis Group

Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion as of the bankruptcy filing.

Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  Linklaters LLP
is the special English and German counsel and De Brauw Blackstone
Westbroek N.V. is Dutch counsel.  Epiq Bankruptcy Solutions, LLC,
serves as claims and notice agent.

Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding and
ancillary foreign proceedings undertaken by Almatis B.V., and its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


AMBAC FINANCIAL: Posts $57MM Q2 Loss, Planning Prepack Bankruptcy
-----------------------------------------------------------------
Ambac Financial Group Inc. filed its quarterly report on Form
10-Q, again reporting a net loss and disclosing that it is
pursuing a prepackaged bankruptcy in order to restructure its
debt.

Ambac Financial incurred a net loss of $57.55 million on $381.17
million of total revenue for the three months ended June 30, 2010,
compared with a net loss of $2.36 billion on $476.88 million of
total revenue for the same period a year earlier.

The Company's balance sheet at June 30, 2010, showed
$30.05 billion in total assets, $31.47 billion in total
liabilities, and $1.42 billion in total stockholders' deficit.
Stockholders' deficit was at $1.634 billion as of Dec. 31, 2009.

Ambac Financial noted that its liquidity and solvency, both on a
near-term basis and a long-term basis, are largely dependent on
dividends principal financial guarantee operating subsidiary,
Ambac Assurance Corporation, and on the value of the subsidiary.
Ambac's principal uses of liquidity are for the payment of
principal (including maturing principal in the amount of $122.2
million on its 9.375% senior notes due August 2011) and interest
on its debt (including annual interest expense of approximately
$86.8 million, after taking into account the deferral of interest
on the DISCs), and its operating expenses.  Further, other
contingencies (e.g., an unfavorable outcome in the outstanding
class action lawsuits against Ambac) could cause additional strain
on its capital and liquidity.  "It is highly unlikely that Ambac
Assurance will be able to make dividend payments to Ambac for the
foreseeable future," the Company admitted.

Ambac Financial further stated in the Form 10-Q, "While management
believes that Ambac will have sufficient liquidity to satisfy its
needs into the second quarter of 2011, no guarantee can be given
that it will be able to pay all of its operating expenses and debt
service obligations, and its liquidity may run out prior to the
second quarter of 2011.  Ambac is currently pursuing raising
additional capital and is also pursuing a restructuring of its
outstanding debt through a prepackaged bankruptcy proceeding.
There can be no assurance that any definitive agreement will be
reached.  If Ambac is unable to effectuate one of these strategic
alternatives in the near term, then Ambac would likely need to
seek relief under Chapter 11 of the United States Bankruptcy Code
without agreement with major creditor groups concerning a plan of
reorganization.  Ambac may decide not to pay interest on its debt
prior to filing a prepackaged bankruptcy or seeking other relief
under the bankruptcy Code."

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6877

                       About Ambac Financial

Headquartered in New York, Ambac Financial Group, Inc., through
its subsidiaries, provided financial guarantees and financial
services to clients in both the public and private sectors around
the world.

KPMG LLP, in New York, expressed substantial doubt about the
Company's ability to continue as a going concern, following the
Company's 2009 financial results.  The independent auditors noted
of the significant deterioration of Ambac's guaranteed portfolio
coupled with the inability to write new financial guarantees has
adversely impacted the business, results of operations and
financial condition of the Company's operating subsidiary.  KPMG
also noted of the Company's limited liquidity.


AMERICAN CONSOLIDATED: Lender Not Equitably Subordinated
--------------------------------------------------------
WestLaw reports that American Consolidated Transportation
Companies, Inc., and its debtor-affiliates, in asserting a claim
for equitable subordination under the Bankruptcy Code, did not
allege that their primary lender exercised sufficient control over
them to become their fiduciary.  The Debtors asserted that the
lender forced them to enter into a forbearance agreement after it
declared them in default, and to take steps toward selling their
businesses pursuant to the forbearance agreement, even though they
wanted to remain in business.  None of these alleged actions,
however, usurped the managerial control from the Debtors' officers
and directors, and the Debtors could have allowed the lender to
foreclose on its security interest rather than entering into the
forbearance agreement and granting the lender additional
collateral at its request.  In re American Consol. Transp. Cos.,
Inc., --- B.R. ----, 2010 WL 2817196 (Bankr. N.D. Ill.)
(Schmetterer, J.).

A copy of the Court's Opinion is available at:

http://www.leagle.com/unsecure/page.htm?shortname=inbco20100715730

In this adversary proceeding, the Debtors are represented by:

         Sarah E. Lorber, Esq.
         William J. Factor, Esq.
         THE LAW OFFICE OF WILLIAM J. FACTOR, LTD.
         1363 Shermer Road, Suite 224
         Northbrook, IL  60062
         Telephone: (847) 239-7248
         E-mail: slorber@wfactorlaw.com
                 wfactor@wfactorlaw.com

and RBS Citizens, N.A., the Lender, is represented by:

         Jeffrey D. Ganz, Esq.
         RIEMER & BRAUNSTEIN, LLP
         Three Center Plaza, 6th Floor
         Boston, MA 02108
         Telephone: (617) 523-9000
         E-mail: jganz@riemerlaw.com

              - and -

         Thomas M. Lombardo, Esq.
         RIEMER & BRAUNSTEIN, LLP
         71 South Wacker Drive, Suite 3515
         Chicago, IL 60606
         Telephone: (312) 780-1200
         E-mail: tlombardo@riemerlaw.com

American Consolidated Transportation Companies, Inc., and nine bus
and travel company affiliates sought chapter 11 protection (Bankr.
N.D. Ill. Case No. 09-26062) on July 18, 2009.  Joel A. Schechter,
Esq., in Chicago, represents the Debtors.  At the time of the
filing, the Debtor estimated their debts at less than $10 million.
A copy of the Debtor's petition and a list of its 20 largest
unsecured creditors is available at
http://bankrupt.com/misc/ilnb09-26062.pdfat no charge.


ANCHOR BANCORP: Posts $12.2-Mil. Net Loss in Qtr. Ended June 30
---------------------------------------------------------------
Anchor Bancorp Wisconsin Inc. filed its quarterly report on Form
10-Q, reporting a net loss of $12.2 million for the three months
ended June 30, 2010, compared with a net loss of $65.1 million for
the same period of 2009.

The decrease in net loss for the three-month period compared to
the same period last year was largely due to a decrease in
provision for loan losses of $61.5 million and a decrease in non-
interest expense of $3.6 million, which were partially offset by a
decrease in net interest income of $6.1 million and a decrease in
non-interest income of $6.0 million.

The Company's balance sheet as of June 30, 2010, showed
$3.999 billion in total assets, $3.975 billion in total
liabilities, and stockholders' equity of $24.3 million.

On June 26, 2009, the Corporation and AnchorBank fsb each
consented to the issuance of an Order to Cease and Desist by the
Office of Thrift Supervision.  "While the Corporation's management
continues to exert maximum effort to attract new capital,
significant operating losses in fiscal 2008, 2009 and 2010,
significant levels of criticized assets and low levels of capital
raise substantial doubt as to the Corporation's ability to
continue as a going concern," the Company said in its Form 10-Q.

The Corporation is also in default of the Credit Agreement with
various lenders (owed $116.3 million) as a result of failure to
make a principal payment on March 2, 2009.  Notwithstanding the
agreement to forbear (until May 31, 2011), the Agent may at any
time, in its sole discretion, take any action reasonably necessary
to preserve or protect its interest in the stock of the Bank, the
Corporation's non-banking subsidiary Investment Directions, Inc.
or any other collateral securing any of the obligations against
the actions of the Corporation or any third party without notice
to or the consent of any party.

A full-text copy of the Quarterly Report is available for free at:

               http://researcharchives.com/t/s?6890

                         About Anchor Bancorp

Headquartered in Madison, Wisconsin, Anchor Bancorp Wisconsin Inc.
(NASDAQ: ABCW) is a registered savings and loan holding company
incorporated under the laws of the State of Wisconsin.  The
Company is engaged in the savings and loan business through its
wholly owned banking subsidiary, AnchorBank, fsb.

AnchorBank, fsb was organized in 1919 as a Wisconsin chartered
savings institution and converted to a federally chartered savings
institution in July 2000.  AnchorBank, fsb is the third largest
depository institution headquartered in the state of Wisconsin and
its largest thrift in terms of assets.

As reported in the Troubled Company Reporter on July 5, 2010,
McGladrey & Pullen, LLP, in Madison, Wisconsin, expressed
substantial doubt about the Company's ability to continue as a
going concern.  The independent auditors noted that at March 31,
2010, all of the subsidiary bank's regulatory capital amounts and
ratios are below the required levels and the bank is considered
"undercapitalized" under the regulatory framework for prompt
corrective action.  The subsidiary bank has also suffered
recurring losses from operations.  Failure to meet the capital
requirements exposes the Company's to regulatory sanctions that
may include restrictions on operations and growth, mandatory asset
dispositions, and seizure of the subsidiary bank.


ANGELO RODRIGUEZ: Section 341(a) Meeting Scheduled for Sept. 2
--------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Angelo
Rodriguez and Yamilet Rodriguez's creditors on September 2, 2010,
at 2:30 p.m.  The meeting will be held at Claude Pepper Federal
Bldg, 51 SW First Ave Room 1021, Miami, FL 33130.

This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

Florida-based Angelo Rodriguez and Yamilet Rodriguez filed for
Chapter 11 protection on July 30, 2010 (Bankr. S.D. Fla. Case No.
10-32099).  Geoffrey S. Aaronson, Esq., at Geoffrey S. Aaronson,
P.A., in Miami, Florida, serves as counsel to the Debtors.  The
Joint Debtors estimated their assets and debts at $10 million to
$50 million as of the Petition Date.

An affiliate, Marbella Food LLC (Case No. 10-32094), filed a
separate Chapter 11 petition on July 29, 2010.


ANGELO RODRIGUEZ: Taps Geoffrey S. Aaronson as Bankruptcy Counsel
-----------------------------------------------------------------
Angelo Rodriguez and Yamilet Rodriguez ask the U.S. Bankruptcy
Court for the Southern District of Florida for permission to
employ Geoffrey S. Aaronson, P.A., as bankruptcy counsel.

The firm will, among other things:

     a. give advice to the Debtors with respect to their powers
        and duties as debtors-in-possession and the continued
        management of their business operations;

     b. prepare motions, pleadings, orders, applications,
        adversary proceedings, and other legal documents necessary
        in the administration of the Debtors' bankruptcy case;

     c. protect the interest of the Debtors in all matters pending
        before the Court; and

     d. represent the Debtors in the negotiation with their
        creditors in the preparation of a plan and disclosure
        statement.

Neither the Firm nor the Debtors have disclosed how the Firm will
be compensated for its services.

Geoffrey S. Aaronson, Esq., who is employed by the Firm, assures
the Court that the Firm is "disinterested" as that term is defined
in Section 101(14) of the Bankruptcy Code.

Florida-based Angelo Rodriguez and Yamilet Rodriguez filed for
Chapter 11 on July 30, 2010 (Bankr. S.D. Fla. Case No. 10-32099).
The Joint Debtors estimated their assets and debts at $10 million
to $50 million as of the Petition Date.

An affiliate, Marbella Food LLC (Case No. 10-32094), filed a
separate Chapter 11 petition on July 29, 2010.


ANGIOTECH PHARMACEUTICALS: Hikes Net Loss to $14MM in Q2 2010
-------------------------------------------------------------
Angiotech Pharmaceuticals Inc. filed its quarterly report on Form
10-Q with the Securities and Exchange Commission.

The Company incurred a net loss of $14.07 million on
$52.95 million of revenue for three months ended June 30, 2010,
compared with a net loss of $11.87 million on $47.18 million of
revenue during the comparable period in 2009.

The Company's balance sheet at June 30, 2010, showed
$110.6 million in total assets, $51.8 million in total current
liabilities, $622.2 million total non-current liabilities, and
$339.7 million in stockholders' deficit.

At June 30, 2010, the Company had working capital of $58.8 million
and cash resources of $29.7 million, consisting of cash and cash
equivalents.  The Company also maintains a senior secured
revolving credit facility with Wells Fargo with the potential to
borrow up to $25.0 million, with $10.4 in finaning available as of
June 30, 2010.

The Company stated, "Our cash resources and any borrowings
available under the revolving credit facility, in addition to cash
generated from operations or cash available per commitments of
certain of our creditors, are used to support our continuing sales
and marketing initiatives, working capital requirements, debt
servicing requirements, clinical studies, research and development
initiatives and for general corporate purposes.  We may also use
our cash resources to fund acquisitions of, or investments in,
businesses, products or technologies that expand, complement or
are otherwise related to our business.  Our ability to use cash
resources for such acquisitions and investments is severely
constrained by our current lack of liquidity."

A full-text copy of the Earnings Release is available for free at
http://ResearchArchives.com/t/s?677f

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?688e

                  About Angiotech Pharmaceuticals

Vancouver, Canada-based Angiotech Pharmaceuticals, Inc. (NASDAQ:
ANPI, TSX: ANP) -- http://www.angiotech.com/-- is a global
specialty pharmaceutical and medical device company.  Angiotech
discovers, develops and markets innovative treatment solutions for
diseases or complications associated with medical device implants,
surgical interventions and acute injury.

                           *     *     *

Angiotech Pharmaceuticals carries a 'CC' corporate credit rating
from Standard & Poor's.  S&P downgraded Angiotech's credit rating
from 'CCC' to 'CC' in August 2010, following the Company's second
quarter 2010 results.  "The downgrade reflects S&P's view that
Angiotech's weakened liquidity position and operating performance
have resulted in a higher risk of default," said Standard & Poor's
credit analyst Lori Harris.  "The company's operating cash flow
remains constrained by what S&P considers its heavy debt burden
and poor operating results.


ANGIOTECH PHARMACEUTICALS: S&P Cuts Corp. Credit Rating to 'CC'
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Vancouver-based Angiotech
Pharmaceuticals Inc. by two notches to 'CC' from 'CCC'.  The
outlook is negative.

At the same time, S&P lowered its rating on the company's
US$325 million senior unsecured notes two notches to 'CC' (the
same as the corporate credit rating on Angiotech) from 'CCC'.  The
recovery rating on the unsecured notes is unchanged at '4',
indicating S&P's expectation of average (30%-50%) recovery in a
default scenario.  S&P also lowered its rating on the company's
US$250 million senior subordinated notes to 'C' (one notch below
the corporate credit rating on the company) from 'CC'.  The
recovery rating on the subordinated notes is unchanged at '6',
indicating S&P's expectation of negligible (0%-10%) recovery in a
default scenario.

"The downgrade reflects S&P's view that Angiotech's weakened
liquidity position and operating performance have resulted in a
higher risk of default," said Standard & Poor's credit analyst
Lori Harris.  "The company's operating cash flow remains
constrained by what S&P considers its heavy debt burden and poor
operating results.  With negative free cash flow, Angiotech might
need outside cash injections, divestiture proceeds, or a financial
restructuring to support the business," Ms. Harris added.

The ratings on Angiotech reflect Standard & Poor's view of the
company's weak liquidity and operating performance, highly
leveraged capital structure, and uncertainty regarding the timing
and extent of revenue growth from new products.

Angiotech is a specialty pharmaceutical company whose core
strength is adding pharmaceutical compounds to medical devices
used by surgeons.  The company's business is largely broken down
into two segments: medical products and pharmaceutical
technologies.

The negative outlook reflects Standard & Poor's expectation that
Angiotech's liquidity, operating performance, and credit ratios
will remain weak in 2009, driven by soft EBITDA and high debt.
S&P would lower the ratings if the company defaults on its debt
obligations.  Currently, S&P does not expect to raise the ratings
in the near term unless Angiotech meaningfully strengthens its
liquidity position.


ANTIGENICS INC: June 30 Balance Sheet Upside-Down by $19.7MM
------------------------------------------------------------
Antigenics Inc. reported total assets of $42,106,303, total
current liabilities of $4,846,721, convertible senior notes of
$49,193,038, deferred revenue of $2,725,042, derivative liability
of $3,176,836, other long-term liabilities of $1,907,869, and
stockholders' deficit of $19,743,203 as of June 30, 2010.

The Company posted a net loss of $4,971,762 for the three months
ended June 30, 2010, from a net loss of $12,087,793 for the same
period in 2009.  It posted a net loss of $13,782,802 for the six
months ended June 30, 2010, from a net loss of $21,564,211 for the
same period a year ago.

Total revenues were $805,171 for the three months ended June 30,
2010, from $1,269,836 for the same period in 2009.  Total revenues
were $1,741,599 for the first half of 2010 from $1,891,190 for the
same period in 2009.

A full-text copy of the Company's Form 10-Q report is available at
no charge at http://ResearchArchives.com/t/s?6879

Based in Lexington, Massachusetts, Antigenics Inc. is a
biotechnology company focused on developing and commercializing
technologies to treat cancers and infectious diseases, primarily
based on immunological approaches.  Its most advanced product,
Oncophage(R) (vitespen), is a patient-specific therapeutic cancer
vaccine registered for use in Russia.  The Company explores
potential opportunities to seek product approval in other
jurisdictions.


APPLETON PAPER: Posts $15.73 Million Net Loss for June 30 Quarter
-----------------------------------------------------------------
Appleton Paper Inc. said its second quarter 2010 net sales of
$220.8 million increased 12.7% compared to second quarter 2009 due
to stronger shipment volumes and increased market share.  Appleton
reported a second quarter 2010 net loss from continuing operations
of $17.0 million compared to $6.5 million of income from
continuing operations in second quarter 2009.

Second quarter 2010 results were negatively impacted by
unfavorable price and mix and increasing raw materials prices.
Selling, general and administrative expenses and interest expense
increased $5.5 million and $3.9 million, respectively, compared to
the second quarter 2009. Second quarter 2009 results included an
$8.0 million alternative fuels tax credit as a reduction to cost
of sales and a $0.8 million gain recorded for the recovery of a
note receivable associated with the 2008 sale of a subsidiary.

Appleton's net sales for the first six months of 2010 were $430.8
million, an increase of 10.0 percent compared to net sales for
first half 2009.  Appleton reported a loss from continuing
operations of $26.0 million for the six months ended July 4, 2010,
compared to income from continuing operations of $7.4 million for
the same period last year.  This $33.4 million swing was caused by
unfavorable price and mix and higher raw material and utility
costs in 2010, and by an $8.0 million alternative fuels tax
credits recorded as a reduction to cost of sales in 2009.
Moreover, during the first six months of 2010, $5.5 million of
debt extinguishment expenses were recorded as a result of the
February 2010 voluntary refinancing.  This compares to $5.4
million of debt extinguishment income recorded during the first
six months of 2009.  These items were partially offset by stronger
shipment volumes, reduced manufacturing costs and an $8.2 million
environmental insurance recovery recorded during the first half
2010.

"Our shipment volumes and revenue grew across all our product
lines through a combination of increased demand and market share
gains," said Mark Richards, Appleton's chairman, president and
chief executive officer.

"The response to our new Superior carbonless sheet product has
been excellent, driving volume growth. Our thermal paper volumes
continue to grow much faster than the market, both domestically
and internationally, as we leverage the world-class capabilities
of our new thermal coater.  Our Encapsys microencapsulation unit
continues to grow at an exceptional pace; shipment volumes were up
47% in the quarter compared to the same period last year,"
Richards said.

"Our second quarter results were consistent with the outlook we
provided after the first quarter," said Richards.  The Company
successfully responded to some considerable, but expected
challenges.  "We implemented numerous price increases during the
first half of the year to offset the impact of rapidly rising pulp
prices," said Richards.  "While the benefits of these increases
will become more apparent in the second half of the year, we
anticipated that they would have little impact in the second
quarter."  He added that the Company's ongoing focus on lean
manufacturing and waste reduction did enable it to continue to
reduce controllable operating costs.

                          Paper Business

Second quarter 2010 net sales of $215.2 million within the
Company's paper business were $29.3 million, or 15.8 percent,
higher than second quarter 2009 due to a nearly 22 percent
increase in shipment volumes.  Carbonless net sales increased
$12.6 million, or 10.9 percent, compared to second quarter 2009,
primarily due to increased international demand and to the launch
of the Company's new Superior carbonless sheet product.  Net sales
of thermal papers increased $16.7 million, or 23.7 percent,
compared to the prior year quarter, due to increased shipment
volumes of approximately 31 percent.

Second quarter 2010 operating income of $2.1 million decreased
$16.0 million from second quarter 2009 due to unfavorable price
and mix (-$11.2 million), inflation of raw materials and utilities
(-$8.2 million), alternative fuels tax credit recorded in 2009 (-
$8.0 million) and higher distribution costs and other expenses  (-
$3.0 million) offset by higher shipment volumes (+$5.8 million),
reduced manufacturing costs (+$3.6 million), reductions in mill
curtailments to match customer demand (+$2.5 million), and reduced
start-up costs of the thermal coater at the West Carrollton, Ohio
paper mill (+$2.5 million).

First half 2010 paper business net sales of $420.0 million were
$48.6 million, or 13.1 percent, higher than first half 2009 due to
a nearly 21 percent increase in shipment volumes.  Carbonless net
sales increased $16.7 million, or 7.1 percent, compared to first
half 2009, primarily due to increased international demand as well
as the launch of the Company's new Superior carbonless sheet
product.  Net sales of thermal papers increased $31.9 million, or
23.5 percent, compared to the prior year, due to increased
shipment volumes of approximately 33 percent.

First half 2010 paper business operating income of $8.4 million
decreased $17.8 million from that of first half 2009 due to
unfavorable price and mix (-$29.3 million), inflation of raw
materials and utilities (-$10.6 million), alternative fuels tax
credit recorded in 2009 (-$8.0 million) and higher distribution
costs and other  (-$3.4 million) offset by reduced manufacturing
costs (+$12.5 million), higher shipment volumes (+$9.3 million),
reductions in mill curtailments to match customer demand (+$6.3
million), and reduced start-up costs of the thermal coater at the
West Carrollton, Ohio paper mill (+$5.4 million).

                             Encapsys

Encapsys second quarter 2010 net sales of $11.9 million were $2.4
million, or 25.0 percent, higher than second quarter 2009.  Second
quarter 2010 volumes were approximately 47 percent higher than the
prior year quarter.  This increase in net sales contributed to a
$0.8 million quarter-over-quarter increase in operating income.

During the first half of 2010, Encapsys net sales totaled $23.4
million which was $4.6 million, or 24.8% higher than first half
2009.  Year-to-date 2010 operating income was $3.1 million
compared to $1.2 million for the first six months of 2009.

                       Performance Packaging

On July 2, 2010, Appleton entered into a stock purchase agreement
with NEX Performance Films Inc., an entity affiliated with Mason
Wells Buyout Fund II, Limited Partnership, whereby Appleton agreed
to sell all of the outstanding capital stock of American Plastics
Company, Inc. and New England Extrusion Inc. for a cash purchase
price of $58 million.  This transaction closed on July 22, 2010,
with Appleton receiving $56 million at the time of closing and $2
million held in escrow, on behalf of Appleton, for the next 12
months to satisfy potential claims under the stock purchase
agreement with Films.

The operating results of APC and NEX have been reclassified and
are now reported as discontinued operations for all periods
presented.  APC and NEX comprised the performance packaging
business segment following the sale of C&H Packaging Company, Inc.
in December 2009.

                         Other (Unallocated)

Other (unallocated) includes costs associated with new business
development activities and unallocated corporate expenses. Current
quarter costs increased $0.8 million from second quarter 2009.
Year-to-date 2010 expense was $6.3 million lower than 2009 due to
the recording of the $8.2 million Fox River insurance recovery
during first quarter 2010.

                            Balance Sheet

At the end of second quarter 2010, the Company held cash balances
totaling $3.9 million compared to cash balances of $10.0 million
at year-end 2009.  At July 4, 2010, total debt increased to $603.3
million compared to $550.1 million at year-end 2009.  Debt rose as
a result of increased business activity and strategic purchases of
raw material inventories to reduce the impact of announced price
increases.  During the first six months of 2010, the Company used
$29.1 million of cash in operations largely as the result of a
$33.2 million increase in working capital.  Higher net sales and
increased international sales, which carry longer payment terms,
caused a $31.1 million increase in accounts receivable.  At the
end of the second quarter, the Company had approximately $31.5
million of liquidity.  Liquidity will increase significantly as a
result of the July sale of the Performance Packaging operations.
Appleton invested $6.8 million on capital projects and used $14.5
million of cash for other financing activities, including
mandatory repayments of debt and net redemption of common stock.

                              Outlook

Richards said the market gains the Company achieved in the first
half of the year provide a strong foundation on which to build
improved profitability in the second half of the year.  "We are
growing our market-leading positions in carbonless and thermal,
have a strong portfolio of products and a focused, cost-effective
manufacturing network to serve our customers," said Mr. Richards.

"Recent media attention highlighting the fact that Appleton is the
only thermal paper producer not using BPA in any of its products
has spiked demand for our receipt paper.  As a result, I expect
demand will remain elevated for the thermal business during the
second half of the year.  I expect our carbonless product mix to
improve during the second half as we focus more on domestic
opportunities arising from the popularity and performance of our
new Superior carbonless sheet product," Mr. Richards stated.

The Encapsys unit is expected to continue its rapid growth in the
specialty chemical and delivery solutions market and exceed its
strong first half performance.

The Company's paper mill in West Carrollton, Ohio, returned to
full operation in early August following the July collapse of a
coal silo that disrupted production at the mill.  The Company
believes that this incident will not adversely affect its
consolidated financial statements due to the rapid response of all
Appleton employees and comprehensive insurance coverage.

Richards stated that the Company will continue its disciplined
approach to improving operational efficiencies, reducing waste,
controlling spending and increasing cash flow.  "During the second
half of the year we expect some relief from rising raw material
prices and to realize benefit from the price increases we
implemented earlier this year," said Mr. Richards.  "We expect to
see stable sales volumes, and profit margins continue to recover."

A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6875

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6876

                        About Appleton Papers

Appleton Papers Inc. is a 100%-owned subsidiary of Paperweight
Development Corp.  Appleton Papers Inc. --
http://www.appletonideas.com/-- headquartered in Appleton,
Wisconsin, produces carbonless, thermal, security and performance
packaging products.  Appleton has manufacturing operations in
Wisconsin, Ohio, Pennsylvania, and Massachusetts, employs
approximately 2,200 people and is 100% employee-owned.

The Company's balance sheet at June 30, 2010, showed
$780.89 million in total assets, $165.17 million in total current
liabilities, $582.02 million in long-term debt, $50.58 million in
postretirement benefits other than pension, $103.31 million in
accrued pension, $5.74 million in other long-term liabilities, and
$114.378 million in redeemable common stock.

Appleton Papers carries a 'B' corporate credit rating from
Standard & Poor's.


APPLETON PAPERS: Updates Stock Purchase Agreement with NEX
----------------------------------------------------------
Appleton Papers Inc. said in a filing with the Securities and
Exchange Commission this month that it made a formatting
correction of the Stock Purchase Agreement dated July 2, 2010,
with NEX Performance Films Inc.  The deal outlines the sale of
outstanding capital stock of American Plastics Company Inc. and
New England Extrusion Inc. to NEX Performance.

The company said, except for the reformatted Stock Purchase
Agreement, its amended report does not otherwise update any other
information or disclosures in the agreement.

A full-text copy of the Stock Purchase Agreement is available for
free at http://ResearchArchives.com/t/s?6874

                        About Appleton Papers

Appleton Papers Inc. is a 100%-owned subsidiary of Paperweight
Development Corp.  Appleton Papers Inc. --
http://www.appletonideas.com/-- headquartered in Appleton,
Wisconsin, produces carbonless, thermal, security and performance
packaging products.  Appleton has manufacturing operations in
Wisconsin, Ohio, Pennsylvania, and Massachusetts, employs
approximately 2,200 people and is 100% employee-owned.

The Company's balance sheet at June 30, 2010, showed
$780.89 million in total assets, $165.17 million in total current
liabilities, $582.02 million in long-term debt, $50.58 million in
postretirement benefits other than pension, $103.31 million in
accrued pension, $5.74 million in other long-term liabilities, and
$114.378 million in redeemable common stock.

Appleton Papers carries a 'B' corporate credit rating from
Standard & Poor's.


ARIZONA HEART: Files Schedules of Assets & Liabilities
------------------------------------------------------
Arizona Heart Institute, Ltd., has 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                            $0
B. Personal Property               $16,925,342
C. Property Claimed as
   Exempt
D. Creditors Holding
   Secured Claims                                       $3,373,962
E. Creditors Holding
   Unsecured Priority
   Claims                                                 $531,413
F. Creditors Holding
   Unsecured Non-priority
   Claims                                               $4,210,166
                                   -----------         -----------
      TOTAL                        $16,925,342          $8,115,541

Based in Phoenix, Arizona, Arizona Heart Institute Ltd. is a
physician-owned group founded by cardiovascular surgeon Edward
Diethrich in 1971.

Arizona Heart filed for Chapter 11 bankruptcy protection on
July 30, 2010 (Bankr. D. Ariz. Case No. 10-24062).  C. Taylor
Ashworth, Esq., and Christopher Graver, Esq., at Stinson Morrison
Hecker LLP, assist the Debtor in its restructuring effort.


ARIZONA HEART: Gets OK to Hire Stinson Morrison as Bankr. Counsel
-----------------------------------------------------------------
Arizona Heart Institute, Ltd., sought and obtained authorization
from the Hon. George B. Nielsen, Jr., of the U.S. Bankruptcy Court
for the District of Arizona to employ Stinson Morrison Hecker LLP
as bankruptcy counsel, capacities, effective July 30, 2010, the
Petition Date.

SMH will, among other things:

     a. assist the Debtor with the sale of its assets;

     b. assist the Debtor in the formulation, preparation and
        implementation of a plan of reorganization and related
        disclosure statement, as well as such agreement(s), if
        any, as may be necessary or proper to implement such plan;

     c. assist the Debtor in conducting litigation and any other
        matters related to the administration of Debtor's Chapter
        11 case; and

     d. assist the Debtor in reviewing claims asserted against it
        and in negotiating with claimants asserting the claims.

SMH will be paid based on the hourly rates of its personnel:

        Attorneys                 $190-$650
        Paralegals                 $95-$225
        Other legal Assistants     $95-$225

C. Taylor Ashworth, a member at SMH, assures the Court that the
firm is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.

Based in Phoenix, Arizona, Arizona Heart Institute Ltd. is a
physician-owned group founded by cardiovascular surgeon Edward
Diethrich in 1971.

Arizona Heart filed for Chapter 11 bankruptcy protection on
July 30, 2010 (Bankr. D. Ariz. Case No. 10-24062).  The Debtor
scheduled $16,925,342 in assets and $8,115,541 in debts as of the
Petition Date.


ARIZONA HEART: Section 341(a) Meeting Scheduled for Aug. 31
-----------------------------------------------------------
The U.S. Trustee for Region 14 will convene a meeting of Arizona
Heart Institute, Ltd.'s creditors on August 31, 2010, at 2:00 p.m.
The meeting will be held at the US Trustee Meeting Room, 230 N.
First Avenue, Suite 102, Phoenix, AZ (341-PHX).

This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

Based in Phoenix, Arizona, Arizona Heart Institute Ltd. is a
physician-owned group founded by cardiovascular surgeon Edward
Diethrich in 1971.

Arizona Heart filed for Chapter 11 bankruptcy protection on
July 30, 2010 (Bankr. D. Ariz. Case No. 10-24062).  The Debtor
scheduled $16,925,342 in assets and $8,115,541 in debts as of the
Petition Date.


ARLINGTON JUPITER: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Arlington Jupiter FLP
        11664 National Blvd. #372
        Los Angeles, CA 90064

Bankruptcy Case No.: 10-53757

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Northern District of Ohio (Akron)

Judge: Marilyn Shea-Stonum

Debtor's Counsel: Dennis J. Kaselak, Esq.
                  PETERSEN & IBOLD
                  Village Station, 401 South Street
                  Chardon, OH 44024
                  Tel: (440) 285-3511
                  Fax: (440) 285-3363
                  E-mail: dkaselak@peteribold.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $500,001 to $1,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Nicholas Gervay, president of general
partner Galaxy Holdings Management LLC.


BANK OF GRANITE: Posts $7.5 Million Net Loss in Q2 Ended June 30
----------------------------------------------------------------
Bank of Granite Corporation filed its quarterly report on Form
10-Q, reporting a net loss of $7.5 million for the three months
ended June 30, 2010, compared with a net loss of $4.5 million for
the same period of 2009.

Net interest income of $8.0 million for the second quarter of 2010
was down 4.6% from the first quarter of 2010 and is reflective of
the contracting loan portfolio (down $122.0 million or 15.8% since
December 2009) and lower yields available on investment
securities.  Net interest income was $7.5 million for the second
quarter of 2009.

The Company's balance sheet as of June 30, 2010, showed
$987.9 million in total assets, $953.4 million in total
liabilities, and stockholders' equity of $34.5 million.

The Corporation's banking subsidiary Bank of Granite is currently
operating under an Order to Cease and Desist issued by the Federal
Deposit Insurance Corporation and the North Carolina Commissioner
of Banks, dated August 27, 2009.  The Bank has not achieved the
required capital levels mandated by the Order.  The operating loss
in the six months and quarter ended June 30, 2010, and the
continuing level of problem loans have further eroded capital
levels from December 31, 2009.  Non-compliance with the capital
requirements of the Order and the continued erosion of capital in
the six months ended June 30, 2010, may cause the Bank to be
subject to further enforcement actions by the FDIC or the
Commissioner.

These events and circumstances create a substantial doubt about
the Corporation's ability to continue as a going concern.

A full-text copy of the Quarterly Report is available for free at:

               http://researcharchives.com/t/s?6885

Granite Falls, N.C.-based Bank of Granite Corporation is a
Delaware corporation that was organized June 1, 1987, as a bank
holding company.  The Company's only businesses are the ownership
and operation of Bank of Granite, a state bank chartered under the
laws of North Carolina on August 2, 1906, and Granite Mortgage,
Inc., a mortgage bank chartered under the laws of North Carolina
on June 24, 1985.  Granite Mortgage discontinued its origination
activities during 2009.

The Company conducts its community banking business operations
from 20 full-service offices located in Burke, Caldwell, Catawba,
Forsyth, Iredell, Mecklenburg, Watauga, and Wilkes counties in
North Carolina.


BERNARD MADOFF: Investors Appeal Phony Profits Ruling to 2nd Cir.
-----------------------------------------------------------------
Dow Jones Newswires' Chad Bray reports that more than 100
investors with Bernard Madoff's firm on Monday asked the U.S.
Second Circuit Court of Appeals to overturn a March 2010 decision
by U.S. Bankruptcy Judge Burton Lifland on the method proposed by
Madoff trustee Irving Picard for determining who should be
eligible to recover funds from the fraud.

The report relates the investor group told the Appellate Court
they are entitled to a recovery despite withdrawing more than they
originally invested.  The group of so-called "net winners" said
the bankruptcy judge erred when he affirmed Mr. Picard's view that
they aren't entitled to a recovery.

According to Dow Jones, the investors said in appellate-court
briefs that they are entitled to as much as $500,000 in recoveries
under the Securities Investor Protection Act, even if actual
securities were never purchased by Mr. Madoff's firm.

Helen Davis Chaitman, Esq., is representing dozens of investors.
Ms. Chaitman said in court papers many of the appellants are in
their 70s, 80s and 90s, and their assets, other than their homes,
were invested with Mr. Madoff.  "They are often struggling with
serious medical issues," she said.

Dow Jones notes that New York Mets principal owner Fred Wilpon and
his real-estate investment firm, Sterling Equities Associates,
also have filed separate briefs challenging Mr. Picard's method
for calculating who should be able to seek recoveries from the
Madoff estate.

Mr. Picard is seeking to recover assets on behalf of Mr. Madoff's
victims.  He recently told The Wall Street Journal that he is
preparing a new wave of lawsuits against individual investors who
withdrew more from Mr. Madoff's firm than the principal they had
invested.

Mr. Picard has gathered about $1.5 billion for Madoff victims. Dow
Jones relates that a lawyer for Mr. Picard has said the trustee
might be able to recover as much as $10 billion for investors.
Mr. Madoff claimed to have as much as $65 billion in assets as of
the end of November 2008, but federal prosecutors claim it was
much less.

As reported by the Troubled Company Reporter on March 3, 2010,
Judge Lifland entered a ruling granting a request by Mr. Picard to
disregard fake profits in computing claims of investors defrauded
by Mr. Madoff.

The statutory framework for the satisfaction of customer claims in
a SIPA liquidation proceeding provides that customers share pro
rata in customer property to the extent of their net equities, as
defined in SIPA section 78lll(11).  If the fund of customer
property is insufficient to make customers whole, the trustee is
entitled to an advance from the Securities Investor Protection
Corporation to pay each customer the amount by which his Net
Equity exceeds his ratable share of customer property, subject to
a cap of $500,000 for securities claims.

Mr. Picard defined Net Equity as the amount of cash deposited by
the customer into his BLMIS customer account less any amounts
already withdrawn by him.  Thousands of customers, however,
objected, arguing the amounts on Madoff's final account statements
should be used.

The Court, however, acknowledged that rather than engaging in
legitimate trading activity, Mr. Madoff used customer funds to
support operations and fulfill other investors' requests for
distributions of profits to perpetuate his Ponzi scheme.  Thus,
any payment of "profit" to a BLMIS customer came from another
BLMIS customer's initial investment.

"It would be simply absurd to credit the fraud and legitimize the
phantom world created by Madoff when determining Net Equity,"
Judge Lifland ruled.

"Upon a thorough and comprehensive analysis of the plain meaning
and legislative history of the statute, controlling Second Circuit
precedent, and considerations of equity and practicality, the
Court endorses the trustee's net investment method," Judge Lifland
said in the 53-page ruling.

A copy of the court ruling is available for free at:

         http://bankrupt.com/misc/MadoffCourtRuling.pdf

Dow Jones notes that a spokesman for Mr. Picard didn't immediately
respond to a request for comment late Monday.

                    About Bernard L. Madoff

Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.

On December 15, 2008, the Honorable Louis A. Stanton of the U.S.
District Court for the Southern District of New York granted the
application of the Securities Investor Protection Corporation for
a decree adjudicating that the customers of BLMIS are in need of
the protection afforded by the Securities Investor Protection Act
of 1970.  The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).

On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893).  The case is before Hon. Burton Lifland.  The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.

On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).

The Chapter 15 case was later transferred to Manhattan.  In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.

Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.)


BRISTOL DEVELOPMENT: Taps Brown Law Office as Bankruptcy Counsel
----------------------------------------------------------------
Bristol Development Group, LLC, asks the U.S. Bankruptcy Court for
the Western District of Missouri for permission to employ Brown
Law Office LC as counsel.

BLO will:

   a. represent the Debtor in all phases of the bankruptcy
      proceedings; and

   b. perform all other legal services for and on the Debtor's
      behalf which may be necessary or appropriate in association
      with the administration of this case and the reorganization
      of the bankruptcy estate.

The Debtor relates that BLO has not received retainer or payment
in connection with the case.  The hourly rates of BLO personnel
range from $225 - $275.

To the best of the Debtor's knowledge, BLO is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

The firm can be reached at:

     Brown Law Office LC
     1714 Brandeis Ct., Suite A
     Columbia, MO 65203

               About Bristol Development Group, LLC

Columbia, Missouri-based Bristol Development Group, LLC, filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. W.D.
Mo. Case No. 10-20914).  David G. Brown, Esq., who has an office
in Columbia, Missouri, assists the Company in its restructuring
effort.  The Company estimated its assets and debts at $10 million
to $50 million, as of the bankruptcy filing.


BRISTOL DEVELOPMENT: U.S. Trustee Unable to Form Creditors Panel
----------------------------------------------------------------
The Office of the U.S. Trustee for Region 13 notified the U.S.
Bankruptcy Court for the Western District of Missouri that it was
unable to appoint an official committee of unsecured creditors in
the Chapter 11 case of Bristol Development Group, LLC.

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.

               About Bristol Development Group, LLC

Columbia, Missouri-based Bristol Development Group, LLC, filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. W.D.
Mo. Case No. 10-20914).  David G. Brown, Esq., who has an office
in Columbia, Missouri, assists the Company in its restructuring
effort.  The Company estimated its assets and debts at $10 million
to $50 million, as of the bankruptcy filing.


CALIFORNIA COASTAL: PBGC Objects to Firm's Chapter 11 Plan
----------------------------------------------------------
The Pension Benefit Guaranty Corp. has objected to California
Coastal Communities' reorganization plan, arguing that it
conflicts with the homebuilder's disclosure statement by failing
to mention whether the Debtor's pension plan will be continued
after reorganization, according to Bankruptcy Law360.

On March 26, 2010, the Company filed a proposed disclosure
statement and proposed joint plan of reorganization with the
Bankruptcy Court.  The proposed joint plan provides for the
extension of the Revolving Loan and the Term Loan to enable the
Company to complete construction and sale of the homes at its
Brightwater project.

California Coastal disclosed at the end of July that it will file
an amendment to the Chapter 11 plan, which would provide for,
among other things, the Company to raise $15 million of additional
capital in the form of (i) indebtedness that would be subordinated
to the $184 million of exit financing; (ii) equity; or (iii) a
combination of subordinated debt and equity.  This is to enhance
its liquidity after emerging from its current Chapter 11
bankruptcy proceedings and to satisfy a closing condition mutually
agreed to by the Company and Luxor Capital Group, LP, during the
course of negotiating definitive documentation of the previously
announced $184 million of exit financing.

California Coastal earlier reached a settlement with its
prepetition secured lenders, waiving more than $6 million in
default interest claims, and providing for payment to secured
lenders in cash.  The Plan pays unsecured creditors in full,
without interest, over two years.

                    About California Coastal

Irvine, Calif.-based California Coastal Communities, Inc.
-- http://www.californiacoastalcommunities.com/-- is a
residential land development and homebuilding company with
properties owned or controlled primarily in Orange County,
California, and also in Lancaster in Los Angeles county.  The
Company's primary asset is a 356-home luxury coastal community
known as Brightwater in Huntington Beach, California.

California Coastal Communities, Inc. and certain of its direct and
indirect wholly-owned subsidiaries filed for Chapter 11 bankruptcy
protection on October 27, 2009 (Bankr. C.D. Calif. Case No. 09-
21712).  Joshua M. Mester, Esq., in Los Angeles, California,
serves as counsel to the Debtors.  The Company's financial advisor
is Imperial Capital, LLC.  California Coastal estimated $100
million to $500 million in assets and debts in its Chapter 11
petition.

At March 31, 2010, the Company's balance sheet showed
$249.0 million in assets, $218.0 million of liabilities, and
$31.0 million of stockholders' equity.


CANAL CORP: PricewaterhouseCoopers Gave 'Tainted' Tax Advice
------------------------------------------------------------
Bloomberg News reports that the U.S. Tax Court upheld a
$37 million penalty imposed on Canal Corp., formerly Chesapeake
Corp., by the Internal Revenue Service for using a tax-avoidance
technique, ruling the company relied on a "haphazard" and
"tainted" legal opinion from PricewaterhouseCoopers LLP to
structure a transaction.

According to the report, Judge Diane Kroupa, in a 38-page decision
published Aug. 5, ruled that Canal improperly avoided capital
gains taxes in 1999 when it sold stock in a tissue paper
subsidiary to Georgia-Pacific LLC, now owned by Koch Industries
Inc.  The judge said Canal owed the penalty because the advice
provided by David Miller, the PricewaterhouseCoopers lawyer who
said the transaction would pass muster with the IRS, was "tainted
by an inherent conflict of interest" as he also helped structure
the transaction.

The case is Canal Corp. and Subsidiaries, Formerly Chesapeake
Corp. and Subsidiaries v. Commissioner of Internal Revenue,
14090-06, 135 R.C. No. 9 (Aug. 5, 2010).

                         About Canal Corp.

Headquartered in Richmond, Virginia, Canal Corp., formerly
Chesapeake Corporation, supplies specialty paperboard packaging
products in Europe and an international supplier of plastic
packaging products to niche end-use markets.  The Company has 44
locations in Europe, North America, Africa and Asia.

Chesapeake and 18 affiliates filed Chapter 11 petitions (Bankr.
E.D. Va. Lead Case No. 08-336642) on Dec. 29, 2008.  Lawyers at
Hunton & Williams LLP represent the Debtors.  Chesapeake tapped
Alvarez and Marsal North America LLC, and Goldman Sachs & Co. as
financial advisors.  Tavenner & Beran PLC serves as conflicts
counsel and Hammonds LLP as special counsel.  Kurtzman Carson
Consultants LLC serves as claims agent.  The United States Trustee
for Region 4 appointed seven creditors to serve on an Official
Committee of Unsecured Creditors for the Debtors' Chapter 11
cases.  Lawyers at Greenberg Traurig LLP represent the Committee.

In its petition, Chesapeake listed $936,600,000 in total assets
and $937,100,000 in total debts as of September 28, 2008.

In May 2009, the Debtors completed the sale of all the assets of
its operating business to a group of investors including units of
Irving Place Capital Management and Oaktree Capital Management for
$485 million.  The Company's name was changed to Canal following
the sale.


CANO PETROLEUM: Lenders' Forbearance Mull Sale or Merger
--------------------------------------------------------
Cano Petroleum, Inc., and its subsidiaries on August 5, 2010,
executed:

     -- a Consent and Forbearance Agreement with Natixis and Union
        Bank, N.A., formerly known as Union Bank of California,
        N.A., relating to existing defaults under the Amended and
        Restated Credit Agreement dated December 17, 2008 among
        Cano, Natixis and Union Bank, and

     -- a Consent and Forbearance Agreement, with UnionBanCal
        Equities, Inc., relating to existing defaults under the
        Subordinated Credit Agreement dated December 17, 2008
        between Cano and UnionBanCal.

Pursuant to the Forbearance Agreements, Natixis, Union Bank and
UnionBanCal agreed to forbear from exercising certain rights and
remedies under the Credit Agreements arising as a result of these
defaults:

     -- Cano's failure to pay the amendment fees required by
        Amendment No. 2 to each of the Credit Agreements;

     -- Cano's failure to provide an Internal Engineering Report
        and accompanying officer's certificate on or before
        March 30, 2010, as required by the Credit Agreements;

     -- Cano's potentially prohibited cash payments with respect
        to its shares of Series D Convertible Preferred Stock on
        June 29, 2010 and June 30, 2010; and

     -- Cano's failure to comply with certain financial covenants
        contained in the Credit Agreements for the quarter ended
        June 30, 2010 and potential failure to comply with such
        covenants for the quarter ended September 30, 2010.

The Forbearance Agreements also contain these material terms:

     -- Natixis, Union Bank and UnionBanCal consent to Cano's
        termination of certain natural gas hedge contracts.

     -- Cano may not make any indirect or direct cash payment,
        cash dividend or cash distribution in respect of its
        shares of Series D Convertible Preferred Stock.

     -- Natixis, Union Bank and UnionBanCal agree to forbear from
        exercising certain rights and remedies under the Credit
        Agreements arising as a result of Cano's potential failure
        to pay interest upon receipt of a default notice on the
        unpaid principal amount of each advance under the
        Subordinated Credit Agreement on September 30, 2010.

     -- Cano must establish, on or before August 10, 2010, an
        electronic data room with information available to persons
        that may be interested in consummating an asset purchase,
        merger, combination, refinancing, recapitalization or
        other similar transaction with Cano -- each, a
        "Prospective Transaction".

     -- Cano must execute, on or before September 15, 2010, a
        letter of intent evidencing the parties intent to
        consummate a Prospective Transaction that will close on or
        before October 29, 2010 -- "Definitive Transaction".

     -- Cano must execute definitive documentation providing for
        the Definitive Transaction on or before September 30,
        2010.

     -- Cano must close the Definitive Transaction on or before
        October 29, 2010.

     -- Cano must deliver to Union Bank and UnionBanCal a weekly
        written report of the parties visiting the electronic data
        room and a summary of progress and correspondence with
        respect to any Prospective Transaction.

     -- Cano must pay a forbearance fee in an amount equal to 1%
        of the aggregate principal amount of the advances
        outstanding under the Credit Agreements as of August 5,
        2010 and the amendment fees required by Amendment No. 2 to
        each of the Credit Agreements upon receipt of proceeds
        from a Definitive Transaction.

     -- The aggregate commitments of Natixis and Union Bank to
        lend to Cano pursuant to the Amended and Restated Credit
        Agreement are permanently reduced to $51.45 million.

     -- Union Bank and UnionBanCal shall not redetermine Cano's
        borrowing bases under the Credit Agreements at any time
        prior to the termination of the Forbearance Agreements.

The Forbearance Agreements will terminate on the earlier of
October 29, 2010, the date of Cano's failure to comply with any of
the terms described, and the date of the occurrence or existence
of any default under either Credit Agreement, other than the
Designated Defaults.

Union Bank has, through its counsel, retained a financial advisor,
Opportune LLP.

Based in Forth Worth, Texas, Cano Petroleum, Inc., is an
independent oil and natural gas company.  Cano's assets are
located onshore in the United States in Texas, New Mexico and
Oklahoma.


CARRIAGE SERVICES: Moody's Retains 'B2' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service raised the speculative grade liquidity
rating of Carriage Services, Inc., to SGL-2 from SGL-3.  The SGL-2
rating indicates Moody's view that the company's liquidity profile
should remain good over the near-term given expectations of
orderly access to its long-term revolving credit facility,
adequate cushion under its financial covenants, and the absence of
volatility in cash flows.

These ratings remain unchanged:

* Corporate family rating at B2;

* Probability-of-default rating at B2;

* $130 million 7.875% senior unsecured notes due 2015 at B1 (LGD3,
  37%).

The ratings outlook remains stable.

The last rating action was on March 17, 2009, when Moody's
downgraded the speculative grade liquidity rating of Carriage to
SGL-3 from SGL-2.

Headquartered in Houston, Texas, Carriage Services, Inc., is a
provider of death care services in the United States.  The company
operates two businesses: funeral homes and cemeteries, which
currently account for approximately 75% and 25% of sales,
respectively.  The company reported sales of approximately
$179 million for the twelve months ended June 30, 2010.


CATHOLIC CHURCH: Wilmington to File Plan if Mediation Fails
-----------------------------------------------------------
Dow Jones' DBR Small Cap reports that the Roman Catholic Diocese
of Wilmington is gearing up to file its own reorganization plan
next month if its next round of mediation fails to produce a
consensual restructuring strategy alongside creditors.  In papers
filed Monday, the diocese revealed that it intends to file a
Chapter 11 plan by Sept. 24 should its upcoming mediation sessions
with unsecured creditors and alleged victims of clergy abuse --
currently set for Aug. 31 and Sept. 1 -- prove unfruitful.

"Based on the tenor of the pleadings and positions of the
creditors' committee and the abuse plaintiffs, the debtor believes
that, if the upcoming mediation does not put this case on track
for a consensual plan, further mediation with the creditors'
committee and the abuse plaintiffs may be pointless," the diocese
said, according to Dow Jones.  The report adds that the diocese is
toning down its request to extend a stay protecting its parishes
from upcoming state court trials over alleged sexual abuse by
priests.

As reported by the Troubled Company Reporter on July 21, 2010, the
Wilmington Diocese asked the Bankruptcy Court to extend its
exclusive periods to:

     (a) file a Chapter 11 plan of reorganization through and
         including October 28, 2010; and

     (b) solicit acceptances of that plan through and including
         December 30, 2010, without prejudice to ask for further
         extensions.

The Court has extended the Debtor's exclusive plan filing period
until October 1 and its exclusive solicitation period until
December 3.

                   About the Diocese of Wilmington

The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics.  The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse.  Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.

The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19.  There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.

The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del.
Case No. 09-13560).  Attorneys at Young Conaway Stargatt & Taylor,
LLP, serve as counsel to the Diocese.  The Ramaekers Group, LLC is
the financial advisor.  The petition says assets range $50,000,001
to $100,000,000 while debts are between $100,000,001 to
$500,000,000. (Catholic Church Bankruptcy News; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


CHEMTURA CORP: Completes Sale of Oxidized Petrolatum Product Lines
------------------------------------------------------------------
Chemtura Corporation reported on July 30, 2010, that it has
completed the sale of the natural sodium sulfonates and oxidized
petrolatum product lines of its Petroleum Additives business to
Sonneborn Inc., an affiliate of private investment firm Sun
Capital Partners, Inc.

The sale includes certain assets and the assumption of certain
liabilities.  Assets include the Petronate(TM) sodium sulfonate
detergent and Oxpet(TM) oxidized petrolatum corrosion inhibitor
brands, customer information, and working capital.  Petronate(TM)
emulsifiers are additives that are designed to provide
emulsification for mineral oil and water based lubricant systems.
Oxpet(TM) oxidized petrolatum corrosion inhibitors provide rust
protection in formulating industrial metal protective compounds.

The transaction was recently approved by Judge Gerber of the U.S.
Bankruptcy Court for the Southern District of New York.
Sonneborn acquires Chemtura's Sulfonates and Petrolatums Business
for $5,000,000 cash and certain other conditions, free and clear
of all claims and encumbrances.

Chemtura, with 2009 sales of $2.3 billion, is a global
manufacturer and marketer of specialty chemicals, agrochemicals,
and pool, spa and home care products.

Sonneborn is a world leader in the manufacture and supply of
high-purity specialty hydrocarbons.  Its primary products are
white oils, plastics oils, petrolatums, microcrystalline waxes,
wax blends, refrigeration oils, cable filling compounds,
compressor lubricants, ink oils, and petroleum distillates.

Sun Capital Partners, Inc., is a leading private investment firm
focused on leveraged buyouts, equity, debt, and other investments
in companies that can benefit from its in-house operating
professionals and experience. Sun Capital affiliates have
invested in more than 225 companies worldwide with combined sales
in excess of $40 billion since Sun Capital's inception in 1995.
Sun Capital has offices in Boca Raton, Los Angeles, and New York,
as well as affiliates with offices in London, Paris, Frankfurt,
Luxembourg, Shanghai and Shenzhen.

                       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: Proposes HFM Diacetyl Claims Settlement
------------------------------------------------------
Chemtura Corp. and its units ask the Bankruptcy Court for
authority to enter into a settlement and release agreement with
Chemtura Canada Co./CIE and Humphrey Farrington & McClain P.C., on
behalf of the firm's diacetyl-related clients.

The Chemtura-HFM Agreement resolves:

  (i) 15 pending lawsuits brought against the Debtors and
      Chemtura Canada by plaintiffs represented by the Humphrey
      Farrington Firm who alleged injuries related to exposure
      to the chemical, diacetyl; and

(ii) 347 diacetyl-related proofs of claim filed by the HFM
      Diacetyl Claimants in response to the Debtors'
      comprehensive noticing of the October 30, 2009 Bar Date.

Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York,
reveals that the Agreement eliminates claims against the Debtors'
estates that, based on expert analysis, pose a risk of liability
that could exceed $150,000,000, not including defense costs,
while allowing the Debtors to focus their attention and resources
on confirming their proposed plan of reorganization and emerging
from Chapter 11.  He adds that the Agreement will also
substantially reduce the value of the diacetyl claims asserted by
corporate entities for indemnification and contribution by
operation of various state joint "tortfeasor statutes" because
the claims are based in substantial part on claims brought by the
HFM Diacetyl Claimants.

The Agreement calls for a total payment of $50,000,000, of which
a portion is expected to be reimbursed by insurance, in order to
resolve liabilities that could be several times greater than the
settlement amount.

The salient terms of the Agreement are:

  a. Settlement Effective Date:  The Agreement will be effective
     upon the satisfaction of several conditions precedent,
     including (i) that each of the HFM Diacetyl Claimants has
     approved and accepted the Agreement, and (ii) that the
     Debtors' plan of reorganization has been confirmed by the
     Bankruptcy Court and has become effective.

  b. Payment of the Settlement Amount:  Within 10 days after the
     Settlement Effective Date, Chemtura Corp. or Chemtura
     Canada will pay the settlement amount -- tagged at
     $50,000,000 if all of the HFM Diacetyl Claimants accept the
     settlement and execute the requisite release agreement --
     into an escrow account designated by the Humphrey
     Farrington Firm, which will be administered by a trustee
     appointed by the Firm.

  c. Settlement Criteria:  Before any portion of the settlement
     amount is paid to an Accepting HFM Diacetyl Claimant, the
     Accepting HFM Diacetyl Claimant must provide these
     information to a trustee appointed by the Humphrey
     Farrington Firm to administer the liquidation of the HFM
     Diacetyl Claims:

        -- An affidavit signed by the HFM Diacetyl Claimant
           indicating the places at which and time periods
           during which that Claimant alleges exposure to
           Diacetyl or any product, including butter flavoring,
           that contains Diacetyl manufactured, distributed, or
           sold by Chemtura Corp. or Chemtura Canada, and the
           employment positions held by that Claimant for each
           time period;

        -- Evidence that Diacetyl manufactured, distributed, or
           sold by Chemtura Corp. or Chemtura Canada was used or
           present at one or more of the places during the time
           periods identified by a HFM Diacetyl Claimant in
           the affidavit prepared; and

        -- A medical affidavit from a licensed physician
           including, at a minimum, these conclusions:

              * the FEV1 score for the HFM Diacetyl Claimant;

              * the lung capacity of the HFM Diacetyl Claimant
                is impaired; and

              * the HFM Diacetyl Claimant's exposure to Diacetyl
                caused or contributed to the HFM Diacetyl
                Claimant's lung capacity impairment.

  d. Liquidation of the HFM Diacetyl Claims:  The HFM Diacetyl
     Claims will be resolved and liquidated in accordance with a
     liquidation matrix set under the Agreement.  The HFM
     Trustee will administer the processing of the HFM Diacetyl
     Claims, evaluate the settlement criteria submitted by the
     HFM Diacetyl Claimants, and make pro rata distributions to
     each HFM Diacetyl Claimant from the escrow.

  e. Release:  The Humphrey Farrington Firm agrees on behalf of
     itself and of each Accepting HFM Diacetyl Claimant that
     payment of the Settlement Amount fully satisfies and
     resolves the HFM Diacetyl Claims held by the Accepting HFM
     Diacetyl Claimants and any Derivative Diacetyl Claims that
     are derivative of the HFM Diacetyl Claims held by the
     Accepting HFM Diacetyl Claimants.  In addition, before
     making a pro rata distribution of the settlement amount to
     an Accepting HFM Diacetyl Claimant, the Humphrey Farrington
     Firm will obtain a separate release and indemnity agreement
     from that Accepting HFM Diacetyl Claimant and submit that
     release and indemnity agreement to Chemtura and the Chartis
     Insurers.

  f. Resolution of Litigation and Certain Bankruptcy
     Proceedings:  Within two business days after the Humphrey
     Farrington Firm provides written certification that the
     terms of Section 4.1(a) and 4.1(b) of the Agreement, have
     been satisfied, the Debtors will use commercially
     reasonable efforts to obtain a stay from the Bankruptcy
     Court of the portion of the estimation hearing proceedings
     that pertains to the HFM Diacetyl Claims held by the
     Accepting HFM Diacetyl Claimants.  Within two business days
     after the Settlement Amount is paid, the Accepting HFM
     Diacetyl Claimants will file in the pending HFM Diacetyl
     Lawsuits the required notices, stipulations, or motions to
     dismiss with prejudice any of their HFM Diacetyl Claims
     against the Chemtura-Protected Parties.

  g. Plan Support and Voting:  Effective immediately upon entry
     of the Approval Order, the HFM Diacetyl Claims of the
     Accepting HFM Diacetyl Claimants will be temporarily
     allowed solely for purposes of voting to accept or reject
     the Plan in the amounts set forth in the Liquidation Matrix
     as of the date of the Approval Order.  In addition, each of
     the Accepting HFM Diacetyl Claimants agrees not to oppose
     confirmation of the Plan.

Mr. Cieri relates that because the HFM Diacetyl Claims represent
more than 90% of the total number of Diacetyl Claims, the
settlement of the HFM Diacetyl Claims will free up substantial
amounts of the Debtors' time, money, and attention currently
devoted to resolving the Diacetyl Claims and Lawsuits and may
facilitate the consensual resolution of the remaining Diacetyl
Claims on the same terms.

A full-text copy of the Chemtura-HFM Diacetyl Claims Settlement
is available for free at:

            http://bankrupt.com/misc/ChemHFMAgrmt.pdf

Moreover, the Debtors inform the Court that they have recently
reached an agreement in principle with certain Chartis Insurers,
subject to internal approvals, documentation, and approval by the
Court, that will resolve their disputes over the availability of
insurance coverage for diacetyl-related claims.  The Debtors
anticipates filing a motion for approval for the Chartis Insurers
Settlement after the agreement is finalized.  The settlement in
principle contemplates, among other things, that the Chartis
Insurers will reimburse Chemtura for a percentage of the
settlement amount to be paid to the HFM Diacetyl Claimants under
the Agreement, Mr. Cieri reveals.

The Chartis Insurers include:

  * AIU Insurance Company,
  * American Home Assurance Company,
  * Chartis Specialty Insurance Company f/k/a American
    International Specialty Lines Insurance Company,
  * Granite State Insurance Company,
  * Illinois National Insurance Company,
  * The Insurance Company of the State of Pennsylvania,
  * Lexington Insurance Company, and
  * National Union Fire Insurance Company of Pittsburgh, PA, and
    their parents, subsidiaries, and affiliates.

                       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 Further Nod to Expand Deloitte Work
-------------------------------------------------------
Chemtura Corp. and its units have sought and obtained another
expansion of Deloitte Tax LLP's employment.

The recent expansion of Deloitte Tax's service includes:

  (a) assisting the Debtors in the preparation of the various
      tax returns for 2010;

  (b) providing the Debtors with copies of the separate company
      federal pro-forma returns and the "provision to return"
      reconciliation; and

  (c) reviewing certain international forms.

The Debtors will pay Deloitte Tax a $250,000 fixed fee for the
Additional Tax Compliance Services.

Rick F. Oricchio, a partner at Deloitte Tax, discloses that a
portion of the Additional Tax Compliance Services will be
performed by personnel employed by Deloitte Tax's indirect wholly
owned subsidiary, Deloitte Tax India Private Limited.  He
explains that a specifically assigned team of personnel from
Deloitte Tax India will assist in the preparation of tax returns
under the supervision, and with the input, of personnel of
Deloitte Tax LLP.

The time of the personnel of Deloitte Tax India will be included
in the fee applications filed by Deloitte Tax LLP.

Mr. Oricchio says that in connection with his original
declaration, Deloitte Tax previously conducted a conflicts check
with respect to its affiliates, including Deloitte Tax India, in
connection with the Debtors' Chapter 11 cases.  He adds that
engagements of Deloitte Tax India for Deloitte Tax are included
in the conflicts checking process conducted by Deloitte Tax LLP.

                       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)


CHESAPEAKE ENERGY: S&P Assigns 'BB' Rating on $2 Bil. Senior Notes
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue-level
rating and '3' recovery rating to oil and gas exploration and
production company Chesapeake Energy Corp.'s proposed $2.0 billion
of senior unsecured notes due 2018 and 2020.  Chesapeake plans to
use proceeds mainly to finance the pending tender offer for three
existing notes with principal outstanding totaling $1.5 billion.
S&P has also affirmed its existing ratings on Chesapeake,
including the 'BB' corporate credit rating.  The rating outlook
remains stable.

"The ratings on Chesapeake Energy reflect its aggressive growth
strategy, leveraged financial profile, the highly capital-
intensive and cyclical nature of the oil and gas E&P sector, as
well as S&P's expectation that natural gas prices could remain
weak for an extended period," said Standard & Poor's credit
analyst Scott Sprinzen.  Ratings also reflect the company's large
and attractive reserve base, multiyear drilling inventory, and
relatively strong funding flexibility.

Chesapeake's satisfactory business risk profile enables it to
maintain relatively higher debt leverage levels than most of its
'BB' rated industry peers.  The company ranks among the largest
independent E&P operators in North America with more than 15.5
trillion cubic feet equivalent of proved reserves and 2.8 billion
cubic feet equivalent of daily production.  Operations are
geographically well diversified within North America, and the
company has good production growth prospects across a number of
unconventional natural gas and oil resource plays.  Chesapeake is,
however, highly levered to natural gas where supply/demand
fundamentals are less favorable than for crude oil.  Natural gas
constitutes 89% of current production and 95% of the reserve base,
which is a highly disproportionate reliance on natural gas
compared to peers.  Chesapeake has recently emphasized liquids-
rich plays rather than natural gas plays in its drilling
activities, but the shift in its production mix will be gradual:
about 25% of production is likely to be in the form of liquids by
the end of 2015, based on management's recent guidance.

S&P believes that Chesapeake's efforts to moderate capital
investment levels, work toward a more balanced natural gas/oil
product mix, and reduce debt should help to solidify the rating at
the current level.  However, the company has historically
demonstrated an aggressive financial policy and for S&P to
consider any positive rating actions, the company would need to
demonstrate over an extended period a willingness to adhere to a
more conservative financial policy, consistent with a higher
rating.  In this regard, maintaining adjusted debt-leverage below
50% on a consistent basis is an important benchmark, in S&P's
view.   Any review of the credit would be viewed in light of
prevailing industry conditions and S&P's outlook on the industry.
Thus, if natural gas pricing were significantly worse than S&P's
published assumptions (Henry Hub natural gas pricing of $5.00 per
mcf in 2011 and $5.50 per mcf thereafter) such that Chesapeake's
continued compliance with financial covenants under its borrowing
agreements were in question, then S&P would consider a downgrade.


CINCINNATI BELL: Reports $9.6-Mil. Net Income for 2nd Quarter
-------------------------------------------------------------
Cincinnati Bell Inc. filed its quarterly report on Form 10-Q with
the Securities and Exchange Commission.

The Company's balance sheet at June 30, 2010, showed $2.60 billion
in total assets, $3.22 billion in total liabilities, and $642.90
million total stockholders' deficit.

The Company reported net income of $9.6 million on total revenue
of $338.6 million for the three months ended June 30, 2010,
compared with net income of $26.3 million on $327.6 million of
revenue during the same period in 2009.

A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67fa

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6872

                      About Cincinnati Bell

Cincinnati Bell Inc., with headquarters in Cincinnati, Ohio,
provides telecommunications products and services to residential
and business customers in Ohio, Kentucky and Indiana.

                          *     *     *

As reported by the Troubled Company Reporter on June 21, 2010,
Fitch Ratings downgraded Cincinnati Bell's Issuer Default Rating
to 'B' from 'B+'.  The downgrade reflects the increase in
financial and business risk caused by Cincinnati Bell's acquistion
of privately held data center operator CyrusOne Networks, LLC, as
well as a potentially more aggressive strategy on the part of CBB
to expand its data center business.

The Company carries a 'B+' corporate credit rating from Standard &
Poor's.


CITADEL BROADCASTING: S&P Assigns 'BB-' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Las Vegas-based radio broadcaster Citadel
Broadcasting Corp.  The rating outlook is stable.

At the same time, S&P assigned its issue-level and recovery
ratings to the company's exit facility, consisting of a
$762.5 million term loan due June 3, 2015.  S&P rated this debt
'BB+' (two notches higher than the 'BB-' corporate credit rating)
with a recovery of '1', indicating S&P's expectation of strong
(90% to 100%) recovery for debtholders in the event of a payment
default.

S&P believes a refinancing of this credit facility is highly
probable in the near future.  The rating incorporates S&P's
expectation that a potential refinancing will not increase debt
leverage and will have similar financial covenants; any deviations
from this expectation could have negative implications for the
rating.

"The 'BB-' rating and stable outlook reflects S&P's opinion of
Citadel's improved financial flexibility following its
bankruptcy," said Standard & Poor's credit analyst Michael
Altberg.  "The elimination of roughly 65% of its debt load should
allow the company to generate healthy discretionary cash flow and
maintain adequate liquidity despite the potential for longer-term
secular declines in radio."

S&P expects Citadel to generate EBITDA growth in the high-teens to
low-20s percentage area in 2010 because of a cyclical advertising
rebound and cost-cutting actions taken during the economic
downturn.  Based on this expectation, S&P believes pro forma
lease-adjusted debt to EBITDA of about 4.1x as of March 31, 2010
could improve to the mid-3x area in 2010.  S&P's stable rating
outlook incorporates S&P's expectation that Citadel will maintain
adequate leverage and liquidity to support the 'BB-' rating over
the next 12 to 18 months.  However, S&P remains uncertain about
the growth prospects for radio broadcasting beyond 2011 and
whether radio growth will continue to significantly lag GDP
growth.  The industry still faces competition from alternative
media, depressed ad rates, and challenges in increasing digital
revenue to become a significant contributor.  These factors figure
prominently in S&P's view that Citadel has a weak business
profile.  The company's good geographic diversity and competitive
position in midsize and large markets, high EBITDA margins, and
good conversion of EBITDA to discretionary cash flow do not offset
these risks.

Citadel is the third-largest radio operator in terms of revenues,
with 166 FM and 58 AM radio stations in 50 markets as of March 19,
2010, ranking from 1 to 279 in terms of market revenue.  The
company generally has leading positions in its small and midsize
markets, while it faces fierce competition in its large markets,
where its stations tend to lag competitors in audience and revenue
share.


CITIGROUP INC: Gets Subpoeana Over Health Care Credit Cards
-----------------------------------------------------------
American Bankruptcy Institute New York Attorney General Andrew
Cuomo said Citigroup Inc. has been subpoenaed as part of an
investigation into alleged predatory-lending practices involving
health care credit cards.  JPMorgan Chase & Co. has also been
subpoeanaed.


                       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.


CLEAR CHANNEL: Stock Purchase Program May Have Neg. Implications
----------------------------------------------------------------
Moody's Investor Service stated that Clear Channel Communications,
Inc.'s (Caa2 CFR) announced stock purchase program may have
negative credit implications if executed.  CCC announced that its
board of directors has approved a stock purchase program under
which CCC or its subsidiaries may purchase up to an aggregate of
$100 million of the Class A common stock of its indirect
subsidiary, Clear Channel Outdoor Holdings, Inc. (not rated,
although its wholly-owned intermediate holdco subsidiary, Clear
Channel Worldwide Holdings, Inc. has a B2 CFR), and/or its
indirect parent, CC Media Holdings, Inc. (not rated).

In Moody's view, the repurchase program and its relatively modest
size are not by themselves unusual.  However, the weakness of CCC
given its huge debt and leverage burden make any use of cash other
than for debt reduction a concern from a credit risk perspective,
despite the benefits from the recent advertising rebound.  "In
Moody's opinion, to make such purchases of stock, management would
need to believe that the company and creditors would benefit from
such a speculative use of cash," stated Neil Begley, a Moody's
Senior Vice President.  "This might include purchasing stock in
Clear Channel Outdoor or CC Media at prices that it expects to be
below either of their intrinsic values and hoping to eventually
realize a higher value at a later date," added Begley.  Moody's
does not believe that there is underlying equity value at CC
Media.  In Moody's estimation, debt currently exceeds and will
likely continue to exceed the value of CCC's assets until a
restructuring occurs that reduces debt considerably.  Therefore,
repurchase of those shares would be highly imprudent in Moody's
view.  With regard to purchasing shares in Clear Channel Outdoor,
the valuations appear to be below some of the company's pure play
peers/competitors, but this discount may be reasonable given the
overlying concern regarding its highly leveraged parent and the
ongoing cash flowing to CCC in accordance with the Corporate
Services Agreement between the two entities.  Stock purchases, if
any, are expected to be funded from available cash on hand, and
would also reduce the company's liquidity slightly.

Moody's last rating action For Clear Channel Communications was on
February 12, 2010, when Moody's upgraded the company's CFR to Caa2
from Caa3.  The last rating action for Clear Channel Worldwide
Holdings was on December 18, 2009 when Moody's lowered the
company's new notes rating to B2 from B1 when the company upsized
the amount of notes being issued.

CCW's ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (i) business risk and competitive position compared
with others within the industry; (iii) capital structure and
financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk.  Moody's compared these attributes against
other issuers both within and outside CCW's core industry and
believes CCW's ratings are comparable to those of other issuers
with similar credit risk.

Clear Channel Communications, Inc., with its headquarters in San
Antonio, Texas, is a global media and entertainment company
specializing in mobile and on-demand entertainment and information
services for local communities and premiere opportunities for
advertisers.  The company's businesses include radio and outdoor
displays (via the company's 89% ownership of Clear Channel Outdoor
Holdings Inc.).  Clear Channel's revenues for the year ended
September 30, 2009 was approximately $5.6 billion.

Clear Channel Outdoor Holdings, Inc., with its headquarters in San
Antonio, Texas, is a leading global outdoor advertising company
that operates in 54 countries and generates annual revenues of
approximately $2.7 billion.


CLOVERLEAF ENTERPRISE: Antitrust and Contract Lawsuits Dismissed
----------------------------------------------------------------
Bankruptcy Law360 reports that several claims in an antitrust and
contract lawsuit brought by Cloverleaf Enterprises Inc., which
alleged a competitor conspired to put it out of business, have
survived a motion to dismiss.  Law360 says Judge Richard Bennett
of the U.S. District Court for the District of Maryland issued the
ruling Friday, dismissing a breach of contract claim against the
Maryland Thoroughbred Horsemen's Association.

Fort Washington, Maryland-based Cloverleaf Enterprises Inc. --
http://www.rosecroft.com/-- owns the Rosecroft Raceway, a harness
track.  The Company filed for Chapter 11 bankruptcy protection on
June 3, 2009 (Bankr. D. Md. Case No. 09-20056).  The Company
estimated $10 million to $50 million in assets and $1 million to
$10 million in debts in its Chapter 11 petition.


COLONIAL BANCGROUP: Awaiting Court Ruling on FDIC-Receiver Motions
------------------------------------------------------------------
The Colonial BancGroup, Inc., asks the U.S. Bankruptcy Court for
the Middle District of Alabama, to extend its exclusive periods to
file and solicit acceptances for the proposed plan of
reorganization until November 18, 2010, and January 27, 2011.

The Debtor said extension is necessary as the Bankruptcy Court has
not decided on the motions of the Federal Deposit Insurance
Corporation, the appointed receiver for Colonial Bank.

The FDIC-Receiver, asserts a right of offset with respect to the
BB&T Bank Accounts and filed a motion for relief from stay to
preserve its purported offset rights.  In addition, the FDIC-
Receiver asserts entitlement to a priority claim under Section
507(a)(9) of the Bankruptcy Code and has filed a motion to compel
an immediate assumption by the Debtor of an alleged prepetition
commitment to maintain the capital of Colonial Bank.

The Debtor also says that its has prepared preliminary drafts of a
Plan and disclosure statement.

                   About The Colonial BancGroup

Headquartered in Montgomery, Alabama, The Colonial BancGroup,
Inc., (NYSE: CNB) was holding company to Colonial Bank, N.A, its
banking subsidiary.  Colonial bank -- http://www.colonialbank.com/
-- operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets.  On August 14, 2009,
Colonial Bank was seized by regulators and the Federal Deposit
Insurance Corporation was named receiver.  The FDIC sold most of
the assets to Branch Banking and Trust, Winston-Salem, North
Carolina.  BB&T acquired $22 billion in assets and assumed
$20 billion in deposits of the Bank.

The Colonial BancGroup filed for Chapter 11 bankruptcy protection
on August 25, 2009 (Bankr. M.D. Ala. Case No. 09-32303).  W. Clark
Watson, Esq., at Balch & Bingham LLP and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Debtor in
its restructuring effort.  The Company listed $45 million in
assets and $380 million in debts in its bankruptcy filing.


COLUMBIA LABORATORIES: June 30 Balance Sheet Upside-Down by $30MM
-----------------------------------------------------------------
Columbia Laboratories, Inc., reported total assets of $50,879,208
against total liabilities of $80,380,561 and Contingently
Redeemable Series C Preferred Stock of $600,000, resulting in
shareholders' deficit of $30,101,353 as of June 30, 2010.

The Company recorded a net loss of $4,227,352 for the three months
ended June 30, 2010, from a net loss of $5,240,661 for the same
period a year ago.  The Company reported a net loss of $17,472,878
for the six months ended June 30, 2010, from a net loss of
$10,574,228 for the same period a year ago.

Net revenues were $9,449,085 for the three months ended June 30,
2010, from $8,423,704 for the same period in 2009.  Net revenues
were $16,621,984 for the six months ended June 30, 2010, from
$15,744,891 for the same period a year ago.

A full-text copy of the Company's Form 10-Q report is available at
no charge at http://ResearchArchives.com/t/s?6893

                    About Columbia Laboratories

Columbia Laboratories, Inc. -- http://www.columbialabs.com/--
is a specialty pharmaceutical company focused on developing and
commercializing products for the women's healthcare and
endocrinology markets that use its novel bioadhesive drug delivery
technology.  Columbia's U.S. sales organization markets CRINONE(R)
8% (progesterone gel) in the United States for progesterone
supplementation as part of an Assisted Reproductive Technology
treatment for infertile women with progesterone deficiency and
STRIANT(R) (testosterone buccal system) for the treatment of
hypogonadism in men.  The Company's partners market CRINONE(R) 8%,
STRIANT(R) and one other product to additional foreign and U.S.
markets.


COMMERCIAL VEHICLE: June 30 Balance Sheet Upside-Down by $10.37MM
-----------------------------------------------------------------
Commercial Vehicle Group Inc. filed its quarterly report on Form
10-Q with the Securities and Exchange Commission.

The Company's balance sheet at June 30, 2010, showed $276.90
million in total assets, $287.28 million in total liabilities, and
$10.37 million total stockholders' deficit.

As reported in the Troubled Company Reporter on Aug. 10, 2010, the
Company said in an earnings release that it posted revenues of
$142.3 million for the second quarter of 2010, compared to
revenues of $103.5 million for the second quarter of 2009.
Net income was $693,000 during the second quarter of 2010,
compared with a net loss of $22.5 million during the same period
in 2009.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?688c

A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6825

                  About Commercial Vehicle Group

New Albany, Ohio-based Commercial Vehicle Group, Inc., (Nasdaq:
CVGI) supplies fully integrated system solutions for the global
commercial vehicle market, including the heavy-duty truck market,
the construction and agricultural markets, and the specialty and
military transportation markets.  The products include static and
suspension seat systems, electronic wire harness assemblies,
controls and switches, cab structures and components, interior
trim systems (including instrument panels, door panels,
headliners, cabinetry and floor systems), mirrors and wiper
systems specifically designed for applications in commercial
vehicles.  The Company has facilities located in the United States
in Arizona, Indiana, Illinois, Iowa, North Carolina, Ohio, Oregon,
Tennessee, Virginia and Washington and outside of the United
States in Australia, Belgium, China, Czech Republic, Mexico,
Ukraine and the United Kingdom.

                          *     *     *

Commercial Vehicle carries a 'Caa2' Corporate Family Rating and
'Caa2/LD' Probability of Default Rating from Moody's.  It has
'CCC+' issuer credit ratings from Standard & Poor's.


COMPUTER HORIZONS: Discloses Fourth Liquidating Distribution
------------------------------------------------------------
Computer Horizons Corp.'s Board of Directors has declared a
liquidating distribution of $0.07 per share to its common
shareholders.  The distribution will be payable September 10, 2010
to shareholders of record as of the close of business on
August 23, 2010.  The liquidating distribution announced today is
the fourth in a series of liquidating distributions pursuant to
the plan of liquidation and dissolution approved by the Company's
shareholders on February 14, 2007.

The liquidating distribution represents a partial distribution to
shareholders of funds of the Company remaining after the initial
liquidating distribution made by the Company in March 2007 and the
second and third liquidating distributions made by the Company in
February 2008 and April 2009.  "We expect to make additional
liquidating distributions as the Company's remaining contingent
liabilities and post-closing obligations are discharged," said
Dennis Conroy, President and CEO of the Company.  Other factors
that will affect the amount and timing of additional liquidating
distributions include the payment or provision for the payment of
debts, expenses, taxes and other liabilities of the Company and
the timing and cost of liquidating and winding up the Company's
business affairs.

For tax purposes, the distribution is a "liquidating
distribution".  Each liquidating distribution should be allocated
proportionately to each share of stock owned by a shareholder.  A
shareholder's gain or loss will be computed on a "per share" basis
so that gain or loss is calculated separately for blocks of stock
acquired at different dates and different prices.  Gain will be
recognized in any taxable year in connection with a liquidating
distribution only to the extent that the aggregate value of all
liquidating distributions received by a shareholder with respect
to a share exceeds such shareholder's tax basis for that share.
If the amount of the distributions is less than the shareholder's
basis in his or her shares of common stock, the shareholder will
generally recognize a loss only in the year the final distribution
is received by the shareholder.  The Company recommends that
shareholders consult their own tax advisors regarding the tax
consequences to them of the liquidation and dissolution.

The Company will, at the close of each taxable year, provide
shareholders and the IRS with a statement of the amount of cash
and the Company's best estimate of the fair market value of any
property distributed to the shareholders during that year as
determined by the Company, at such time and in such manner as
required by the Treasury Regulations.

                      About Computer Horizons

Computer Horizons Corp. provided IT staffing and project-based
solutions services at client's sites and at company development
centers in the United States, Montreal, Canada, and Chennai,
India.


COTT CORP: Cliffstar Deal Cues S&P to Keep B Corp. Credit Rating
----------------------------------------------------------------
Mississauga, Ont.-based Cott Corp., signed a definitive agreement
on July 7, 2010, to acquire privately held Dunkirk, N.Y.-based
Cliffstar Corp., the leading North American private label
manufacturer of shelf stable juices for US$569 million.  Standard
& Poor's Ratings Services said it affirmed its 'B' long-term
corporate credit rating on Cott.

At the same time, Standard & Poor's assigned its 'B' issue-level
rating (the same as the corporate credit rating on Cott) to the
company's wholly owned U.S. subsidiary Cott Beverages Inc.'s
proposed US$375 million senior unsecured notes due 2018.  S&P also
assigned a '4' recovery rating to the notes, indicating S&P's
expectation of an average (30%-50%) recovery in the event of a
payment default.  The company intends to use the net proceeds of
the proposed notes, as well as the issuance of common equity and a
drawdown of the revolving credit facility, to finance the
Cliffstar transaction.

S&P also affirmed the existing 'B' debt rating on Cott's wholly
owned U.S. subsidiary Cott Beverages' senior unsecured notes and
removed it from CreditWatch with negative implications, where it
had been placed July 9.  The removal of the rating from
CreditWatch followed S&P's analysis of the proposed capital
structure.  The '4' recovery rating on this debt is unchanged.

The US$569 million purchase price comprises US$500 million cash
due at closing; up to an additional US$55 million based on the
achievement of certain performance measures in 2011, as well as
the completion of expansion projects in 2010; and US$14 million of
deferred consideration to be paid over three years.  S&P expects
the US$500 million to be financed with US$375 million in new
senior unsecured notes, as well as the issuance of common equity
and a drawdown of the revolving credit facility.  S&P expects
closing shortly upon certain approvals and financing.

"The ratings on Cott reflect what S&P considers the company's
vulnerable business risk profile stemming from customer
concentration, its small size in a sector dominated by companies
with substantially greater financial resources and market
presence, and integration risks related to the Cliffstar
acquisition," said Standard & Poor's credit analyst Lori Harris.
In addition, a significant reduction in business with Cott's key
customer, Wal-Mart Stores Inc. (AA/Stable/A-1+), could result in a
material weakening of credit protection measures.

S&P believes these factors are partially offset by Cott's improved
operating performance; broader product offering and good market
position in shelf stable juices with the addition of Cliffstar;
and solid market position as the leading private label
manufacturer and marketer of take-home carbonated soft drinks in
the U.S., the U.K., and Canada.  The acquisition of Cliffstar
gives Cott immediate entrance into the North American shelf stable
juice industry, while providing for some cost-saving
opportunities.  Moreover, the firm should benefit from cross-
selling opportunities over the two companies' distribution
networks.  Cliffstar is the leading North American supplier of
private label shelf stable apple juice, grape juice, cranberry
juice, and juice blends.

The stable outlook reflects Standard & Poor's expectation that
Cott will sustain the improvement in its operating performance,
that Cliffstar will be successfully integrated, and that credit
ratios will remain in line with S&P's expectations in the medium
term.  S&P could consider raising the ratings if Cott is able to
demonstrate continued strengthening of its operating performance
despite the potential for increased competitive activity or a
decline in its business with Wal-Mart.  Alternatively, S&P could
lower the ratings if the company's operating performance falls
below S&P's expectations or if Cott's financial flexibility
weakens.


DANIEL CHANG: Chapter 11 Reorganization Case Dismissed
------------------------------------------------------
The Hon. Neil P. Olack of the U.S. Bankruptcy Court for the
Southern District of Mississippi dismissed the Chapter 11 case of
Daniel K. Chang and Julia W. Chang.

As reported in the Troubled Company Reporter on June 11, 2010,
secured lender, Trustmark National Bank, sought for the dismissal
of the Debtors' or, in the alternative, to bifucate Palm Court,
LLC, and First Corporate Center, LLC, into their own separate
Chapter 11 cases.

Trustmark explained that (i) the Changs lacked of good faith in
filing the petition; (ii) the Changs attempted to manipulate
Mississippi LLC law to effect an impermissible offensive
substantive consolidation; and (iii) Palm Court and First
Corporate Center are eligible for filing as individual LLC
entities.

                       About Daniel K. Chang

Gautier, Massachusetts-based Daniel K. Chang and Julia W. Chang --
dba Avery Investments, LLC; Brendan Cee & Company, LLC; First
Corporate Center, LLC; Hilltop Investments, LLC; J.D. Brash, LLC;
Magnolia Professional Center, LLC; Old Spanish Farm, LLC; and Palm
Court, LLC -- filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. S.D. Miss. Case No. 10-51012).  Nicholas
Van Wiser, Esq., who has an office in Biloxi, Massachusetts,
assisted the Debtor in its restructuring effort.  The Company
estimated $50 million to $100 million in assets and $10 million to
$50 million in debts in its petition.


DECRANE AEROSPACE: Moody's Downgrades Default Rating to 'Caa3'
--------------------------------------------------------------
Moody's Investors Service has lowered both the probability of
default and the second lien term loan ratings of DeCrane Aerospace
Inc. to Caa3 from Caa1.  The corporate family rating of Caa1 and
the first lien debt rating of B2 remain unchanged.

This action follows the reported sale agreement between Goodrich
Corporation (Baa2/stable) and DeCrane Holdings Co.  Goodrich plans
to purchase DeCrane's cabin business assets for $281 million cash.
A sale close of August 2010 has been cited, subject to government
approvals.

Based on the reported sale price, DeCrane's first and second lien
debt amounts, and terms of each credit agreement related to asset
sale proceeds, Moody's anticipate that the sale will likely result
in a second lien term loan distressed exchange, which Moody's
would view as a limited default.  Although the lowered second lien
debt rating reflects increased chances for a distressed exchange
to occur on the term loan, it also encompasses Moody's view that
recovery prospects have improved from Moody's thought they would
be in a default scenario.

The first lien debt rating remains unchanged because expected sale
proceeds would well exceed the first lien debt amount with any
asset sale proceeds first dedicated to the facility per terms of
the loan agreement.

The ratings are:

* Corporate family, Caa1

* Probability of default, to Caa3 from Caa1

* $30 million gtd first lien revolving credit facility due 2013,
  B2 LGD2, 29%

* $195 million gtd first lien term loan due 2013, B2 LGD2, 29%

* $150 million gtd second lien term loan due 2014, to Caa3 LGD3,
  33% from Caa2 LGD5, 81%

Moody's last rating action on DeCrane occurred June 24, 2009, when
Caal rating was confirmed and the outlook was changed to negative
from stable.

DeCrane Aerospace, Inc., headquartered in Wichita, KS, is a
leading provider of aircraft cabin interior systems and components
(including cabin interior furnishings, veneer, cabin management
systems, seating and composite components), mostly for business
jets.


DELTA PETROLEUM: Posts $152MM Q2 Net Loss; Non-Core Assets Sold
---------------------------------------------------------------
Delta Petroleum Corporation filed its quarterly report on Form
10-Q, reporting a net loss of $152.48 million on $36.02 million of
total revenue for the three months ended June 30, 2010, compared
with a net loss of $180.48 million on $20.86 million of total
revenue for the same period a year ago.

The Company experienced a net loss attributable to Delta common
stockholders of $162.5 million for the six months ended June 30,
2010, and as of June 30, 2010 had a working capital deficiency of
$109.0 million, including $119.5 million outstanding under Delta's
Second Amended and Restated Credit Agreement which is due on
January 15, 2011 and $73.6 million outstanding under the credit
agreement of DHS Drilling Company, the Company's 49.8% subsidiary.
In addition, the holders of the Company's $115.0 million principal
amount of 33/4% Senior Convertible Notes due 2037 have the right
to require the Company to purchase all or a portion of such notes
on May 1, 2012.  The ongoing losses, near term credit maturities,
and working capital deficiency raise substantial doubt about the
Company's ability to continue as a going concern.

Based on the Company's development plan for the remainder of 2010,
the Company does not expect to have the liquidity necessary to
repay the borrowings under its credit facility when due on January
15, 2011 unless it completes a refinancing of the existing credit
facility prior to that date.

                          Sale of Assets

In November 2009, the Company retained Morgan Stanley and Evercore
Partners to evaluate and advise the Board of Directors on
strategic alternatives to enhance shareholder value, including but
not limited to the sale of some or all of the Company's assets,
entering into partnerships or joint ventures, or the sale of the
entire Company.

On July 23, 2010, the Company entered into a definitive Purchase
and Sale Agreement with Wapiti Oil & Gas, L.L.C. to sell various
non-core assets for cash proceeds of $130.0 million.  Also on
July 23, the Company and its credit facility banks agreed to the
Fourth Amendment to the Second Amended and Restated Credit
Agreement whereby the requisite banks consented to the Wapiti
Transaction, subject to specified terms and conditions, including,
among other amendments, that the net proceeds from the transaction
be used to pay down the balance outstanding under the credit
facility and that the borrowing base be reduced to $35.0 million
upon consummation of the Wapiti Transaction.

The Wapiti Transaction closed on July 30, 2010 with approximately
$108.5 million used to reduce amounts outstanding under the credit
facility, $3.7 million used to pay transaction related costs, and
$17.8 million paid into escrow pending the receipt of third party
consents required to transfer ownership of certain properties
involved in the Wapiti Transaction.  Upon receipt of these
consents which are normal and customary in the industry and
expected to be received during the third quarter of 2010, the
funds in escrow are required to be used to further reduce amounts
outstanding under the Company's credit facility.  The proceeds
from the Wapiti Transaction allow the Company to substantially
reduce its outstanding debt and when combined with the post Wapiti
Transaction borrowing base, provide the liquidity necessary to
fund the Company's third and fourth quarter 2010 development plan.

Under the credit facility there are no further scheduled or
special borrowing base redeterminations before the maturity of the
facility in January 2011, and thus, we anticipate having adequate
liquidity to fund operations until such time that we refinance the
existing credit facility.

A copy of the Form 10-Q is available for free at:

               http://researcharchives.com/t/s?6896

                      About Delta Petroleum

Delta Petroleum Corporation (NASDAQ Global Market: DPTR)
-- http://www.deltapetro.com/-- is an oil and gas exploration and
development company based in Denver, Colorado.  The Company's core
areas of operations are the Rocky Mountain and Gulf Coast Regions,
which comprise the majority of its proved reserves, production and
long-term growth prospects.

The Company's balance sheet at June 30, 2010, showed $1.24 billion
in total assets, $347.06 million in total current liabilities,
$358.47 million in total long-term liabilities, and stockholders'
equity of $535.53 million.

                          *     *     *

As reported in the Troubled Company Reporter on March 15, 2010,
KPMG LLP, in Denver, expressed substantial doubt about the
Company's ability to continue as a going concern after auditing
the Company's financial statements for the year ended December 31,
2009.  The independent auditors noted that of the Company's
ongoing losses and working capital deficiency, and that in
addition, outstanding borrowings under the Company's credit
facility are due January 15, 2011.

In July 2010, Standard & Poor's Ratings Services revised its
outlook on Delta Petroleum Corp. to negative from developing.  At
the same time, S&P affirmed its ratings on the company, including
the 'CCC' corporate credit rating.


DEVELOPERS DIVERSIFIED: Fitch Puts 'BB' Rating on $300 Mil. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to the $300 million par
value 7.875% senior unsecured notes due September 2020 issued by
Developers Diversified Realty Corporation.  Net proceeds from the
offering, which was priced at 99.139% of principal amount to yield
8% (518 basis points over the benchmark treasury rate), are
expected to be used to repay existing debt.  DDR's Issuer Default
Rating is 'BB' and the Rating Outlook is Stable.

DDR's credit strengths include increased stabilization of the
company's retail property portfolio, the company's demonstrated
access to capital, a large pool of unencumbered assets, limited
development risk, and geographically diverse portfolio with a
varied tenant roster.  Offsetting factors include leverage and
fixed charge coverage ratios that are more consistent with a 'BB'
IDR, a liquidity profile that will continue to depend on access to
the capital markets, and significant debt maturities in 2012.

DDR's leasing velocity continued to improve during the quarter
ended June 30, 2010, with the core portfolio leased rate
increasing to 91.6% as of June 30, 2010 from 91.3% and 91.2% as of
March 31, 2010 and Dec. 31, 2009, respectively.  In addition,
spreads on new leases during second quarter 2010 (2Q'10) increased
by 7.0% and spreads on renewals increased by 3.2%, while 2Q'10
same-store year-over-year net operating income grew by 1.5%.
Fitch expects that same-store sales of retailers will continue to
show improvement and that DDR's net operating income will remain
relatively flat through 2010 in the face of a fragile economic
recovery.  That being said, DDR has signed numerous leases since
1Q'09 on space vacated by bankrupt tenants, and some of that space
will begin to cash flow later in 2010 into 2011, indicating
longer-term upside prospects.

DDR's access to the capital markets continues to allow the company
to manage debt maturities.  The recently consummated $300 million
senior unsecured notes issuance extends the duration of the
company's debt maturity schedule, and additionally, the company
maintains a large pool of unencumbered properties that enable
financial flexibility.

DDR's portfolio exhibits geographical diversification that
provides downside protection against regional demand drivers, as
the company owns and manages retail operating and development
properties in 42 states, Brazil, Canada and Puerto Rico totaling
more than 137 million square feet.  Aside from Wal-Mart Stores,
Inc. (IDR of 'AA', with a Stable Outlook by Fitch), which
comprised 4.5% of total base rent as of June 30, 2010, no other
tenant contributed more than 2% of total base rents.

DDR's leverage ratio remains consistent with a 'BB' IDR, with net
debt-to-recurring operating EBITDA at 10 times as of June 30, 2010
(9.8x when adjusted for non-cash general and administrative
expenses), compared with 11.4x as of Dec. 31, 2009 (11.0x as of
Dec. 31, 2009, when adjusted for non-cash general and
administrative expenses).  Leverage sustaining below 9.0x may have
a positive impact on DDR's ratings and/or Outlook, while leverage
sustaining above 10.0x may have a negative impact.

DDR's fixed charge coverage ratio (defined as recurring operating
EBITDA less recurring capital expenditures less straight-line rent
adjustments, divided by cash interest expense, capitalized
interest and preferred dividends) was 1.5x for the trailing 12
months ended June 30, 2010, compared with 1.5x for fiscal year
2009 (1.6x for fiscal year 2009 when adjusted for non-cash general
and administrative expenses).  Fixed charge coverage sustaining
above 1.6x may have a positive impact on DDR's ratings and/or
Outlook, while coverage sustaining below 1.4x may have a negative
impact.

DDR's liquidity position is commensurate with the 'BB' IDR.  The
company's sources of liquidity (unrestricted cash pro forma for
the senior unsecured notes offering, availability under unsecured
revolving credit facilities pro forma for a 33% reduction in the
overall commitment size, projected retained cash flows from
operating activities after dividends and distributions) divided by
uses of liquidity (pro rata share of debt maturities and projected
recurring capital expenditures) for July 1, 2010 through Dec. 31,
2011 result in a liquidity coverage ratio of 0.6x.

In addition, DDR has sizable debt maturities in 2012, when 29.5%
of pro rata consolidated debt matures, which is a concern in the
event that conditions in the commercial real estate debt capital
markets become more challenging.


DEVELOPERS DIVERSIFIED: S&P Assigns 'BB' Rating on $300 Mil. Notes
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' rating to
Developers Diversified Realty Corp.'s new $300 million 7.875%
senior unsecured notes due September 2020.  At the same time, S&P
assigned a '3' recovery rating to the new issue, reflecting S&P's
expectation for a meaningful recovery (50%-70%) in the event of
default.  The company intends to use net proceeds from the
offering to repay debt.

DDR has aggressively leased space to improve core occupancy (91.6%
as of June 30, 2010), and the company's exposure to development is
receding.  Market rents have fallen due to the above-average
national vacancy in the wake of retailer closings, and
unemployment remains stubbornly high, stretching consumers.
However, S&P believes the sector may be near a trough.  DDR's
recent second-quarter operating results featured positive leasing
spreads (up 3.9%) and positive same-store net operating income
growth (up 1.5%) for the first time in over two years.  Fixed-
charge coverage continues to hover at 1.5x (S&P's minimum
threshold for the current rating), as DDR's income growth is
currently offset by higher interest expense (from more costly
longer-term debt).

DDR has accessed many sources of capital so far this year,
including equity, raising roughly $400 million of common equity,
which has increased liquidity and reduced debt.  The company's
leverage as of June 30 was 60% (on a book-value basis), down from
64% as of year-end 2009 and 68% as of year-end 2008.  S&P does not
expect this new debt issuance -- essentially a debt-for-debt
financing -- to have a meaningful impact on DDR's leverage.  S&P
believes DDR's fixed-charge coverage will remain at current levels
because the higher cost on this new debt is offset by eventual net
operating income from signed leases that have yet to fully
contribute to income.  This 10-year debt issuance modestly extends
the company's historically short weighted average debt maturity to
nearly four years (from three years).  S&P considers DDR's
liquidity position (pro forma for this offering) to remain
adequate to meet its upcoming debt maturities within the next 12
months.

S&P's current negative outlook reflects its belief that, despite
DDR's recent common equity raises, the company may face challenges
stabilizing its debt coverage measures as it seeks to meaningfully
improve its liquidity position and continue to deleverage before
large debt maturities in 2011 and 2012.

                         Recovery Analysis

Standard & Poor's maintains a '3' recovery rating on DDR's
unsecured senior notes.  The '3' recovery rating indicates S&P's
expectation for a meaningful (50%-70%) recovery for unsecured
senior noteholders in the event of a payment default.

                           Ratings List

       Developers Diversified Realty Corp.   Rating
       -----------------------------------   ------
       Corporate credit                      BB/Negative/--

                         Ratings Assigned

    Developers Diversified Realty Corp.                   Rating
    -----------------------------------                   ------
    $300 mil. 7.875% sr unsecured nts due September 2020  BB
      Recovery rating                                     3


DISH NETWORK: June 30 Balance Sheet Upside-Down by $1.58 Billion
----------------------------------------------------------------
DISH Network Corp. filed its quarterly report on Form 10-Q,
reporting net income of $256.99 million on $3.16 billion of total
revenue for the three months ended June 30, 2010, compared with
net income of $63.42 million on $2.90 billion total revenue for
the same period a year earlier.

The Company's balance sheet at June 30, 2010, showed $9.03 billion
in total assets and $10.61 billion in total liabilities, and
stockholders' deficit of $1.58 billion.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6871

                       About DISH Network

DISH Network Corporation is the third largest pay television
provider in the United States with 14.1 million subscribers as of
Dec. 31, 2009.  Annual revenues approximate $11.6 billion.

                          *     *     *

Dish Network carries a 'Ba3' corporate family rating, with "stable
outlook", from Moody's.

In March 2010, Moody's said the ratings are not affected by the
announcement that a U.S. appeals court upheld a lower court's
ruling that despite changes made by Dish to its DVR software, the
company was still infringing on TiVo Inc.'s patents.  Dish and
TiVo have been in litigation since 2004 over TiVo's patent
infringement claim.  As a result of the ruling, the Company owes
approximately $300 million in damages through July 2009 and
potentially additional charges should the company be required to
pay for patent infringements since July 2009.  Dish announced that
it will be seeking a further review of the court's latest decision
by the full Federal Circuit.


DOUGLAS ANDERSON: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Douglas Charles Anderson
        5327 140th Ave. NE
        Bellevue, WA 98006

Bankruptcy Case No.: 10-19266

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Western District of Washington (Seattle)

Judge: Marc Barreca

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

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A list of the Debtor's five largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/wawb10-19266.pdf


DREIER LLP: Trustee Seeks $28 Million from Amaranth
---------------------------------------------------
The Chapter 11 trustee for Marc Dreier's former law firm, Dreier
LLP, has commenced an adversary proceeding against Amaranth LLC to
recover over $28 million that was allegedly transferred to the
hedge fund in the last throes of Dreier's Ponzi scheme, Bankruptcy
Law360 reports.  The complaint, filed by court-appointed trustee
Sheila Gowan, revolves around fraudulent promissory notes with
excessive interest rates, Law360 says.

The lawsuit claims that Amaranth took profits from Mr. Dreier's
note fraud scheme despite being aware it was illegitimate and
fraudulent.

                         About Dreier LLP

Marc Dreier founded New York-based law firm Dreier LLP --
http://www.dreierllp.com/-- in 1996.

On December 8, 2008, the U.S. Securities and Exchange Commission
filed a suit, alleging that Mr. Dreier made fraudulent offers and
sales of securities in several cities, selling fake promissory
notes to hedge and other private investment funds.  The SEC
asserted that Mr. Dreier also distributed phony financial
statements and audit opinions, and recruited accomplices in
connection with that scheme.  Mr. Dreier has been charged by the
U.S. government for conspiracy, securities fraud and wire fraud
(S.D.N.Y. Case No. 09-cr-00085-JSR).

Dreier LLP sought chapter 11 protection (Bankr. S.D.N.Y. Case No.
08-15051) on Dec. 16, 2008.  Stephen J. Shimshak, Esq., at Paul,
Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel.
The Debtor estimated assets of $100 million to $500 million, and
debts between $10 million and $50 million in its Chapter 11
petition.

Wachovia Bank National Association, Sheila M. Gowan as trustee for
Dreier LLP's Chapter 11 Estate, and Steven J. Reisman as post-
confirmation representative of the bankruptcy estate of
360networks (USA) Inc. signed a petition that put Mr. Dreier into
bankruptcy under Chapter 7 on January 26, 2009 (Bankr. S.D.N.Y.
Case No. 09-10371).

Mr. Dreier, 60, pleaded guilty to fraud and other charges in May
2009.  The scheme to sell $700 million in fake notes unraveled in
late 2008.  Mr. Dreier is serving a 20-year sentence in a federal
prison in Minneapolis.


EATON AUTOMOTIVE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Eaton Automotive Group, Inc.
          dba Kenneth Eaton Ford Mercury
        P.O. Box 250
        Tullahoma, TN 37388

Bankruptcy Case No.: 10-14584

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Eastern District of Tennessee (Winchester)

Judge: Shelley D. Rucker

Debtor's Counsel: Steven L. Lefkovitz, Esq.
                  LEFKOVITZ & LEFKOVITZ
                  Suite 410, 618 Church Street
                  Nashville, TN 37219
                  Tel: (615) 256-8300
                  Fax: (615) 255-4516
                  E-mail: slefkovitz@lefkovitz.com

Scheduled Assets: $2,451,376

Scheduled Debts: $7,234,756

A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/tneb10-14584.pdf

The petition was signed by Kenneth Eaton, president.


ECONOMETRIC MANAGEMENT: Voluntary Chapter 11 Case Summary
---------------------------------------------------------
Debtor: Econometric Management, Inc.
        13C Estate Linbergh Bay
        St. Thomas, USVI, TX 00802

Bankruptcy Case No.: 10-35551

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Northern District of Texas (Dallas)

Judge: Stacey G. Jernigan

Debtor's Counsel: Julie Ann Linares, Esq.
                  THE LINARES LAW FIRM, PLLC
                  2199 Turtle Creek Blvd., Suite 300
                  Dallas, TX 75219
                  Tel: (214) 523-9006
                  Fax: (214) 602-2885
                  E-mail: jlinares@linareslawfirm.com

Estimated Assets: $10,000,001 to $50,000,000

Estimated Debts: $1,000,001 to $10,000,000

The petition was signed by Bruce Tizes, president.

The Debtor did not file its list of largest unsecured creditors
when it filed its petition.

Debtor-affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
PRM Development, LLC                   10-35547    08/06/10


FAIRPOINT COMMS: Asks Vermont Board to Reverse Plan Rejection
-------------------------------------------------------------
FairPoint Communications is planning to re-negotiate with Vermont
regulators for a reversal of the agency's rejection of the
Company's bankruptcy plan, the Associated Press reports, citing
Michael Smith as FairPoint's president for Vermont.

The Company will be submitting more information relevant to its
case to get Vermont's nod on the bankruptcy plan, according to
the report.

This latest development is contrary to earlier reports that
FairPoint may ask the U.S. Bankruptcy Court for the Southern
District of New York to overrule Vermont's rejection of its plan.

                 About FairPoint Communications

FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services.  FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.

FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335).  Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel.  BMC Group is claims and notice agent.

As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
stockholders' equity.

Bankruptcy Creditors' Service, Inc., publishes FairPoint
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by FairPoint Communications Inc. and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


FAIRPOINT COMMS: To Submit More Docs to Persuade Vt. Regulators
---------------------------------------------------------------
The Associated Press reports that FairPoint Communications says it
will submit more information to Vermont regulators in hopes of
getting them to reverse their disapproval of the company's plan to
emerge from bankruptcy.

FairPoint had been considering trying to get a federal bankruptcy
court effectively to overturn the June 28 decision of the Public
Service Board.  But Michael Smith, FairPoint's Vermont president,
tells The Associated Press the Company has decided to go back to
the Vermont board first.

FairPoint declared bankruptcy last October and its plan to rework
its finances and emerge from bankruptcy by the end of this summer
has been approved in the 17 other states where it operates.
Vermont is the sole exception.

As reported by the Troubled Company Reporter on August 6, 2010,
John Dillon of Vermont Public Radio said FairPoint may ask the
bankruptcy court to overrule the rejection of the Vermont
regulatory agency of its plan of reorganization.

The Vermont Public Service Board issued a decision in late June
2010 denying approval of FairPoint's bankruptcy plan.  The Vermont
Board held that FairPoint has failed to demonstrate that it has
the financial capability to meet its obligations under Vermont law
and its license as a telecommunications carrier.

The Vermont regulatory approval was the last hurdle for FairPoint
as regulators in Maine and New Hampshire have given the Company
the "go" signal in implementing its bankruptcy plan.

Mr. Smith told the Vermont Public Radio in an interview that the
Vermont Board rejection halted their progress just "30 days or so"
of their anticipated emergence from bankruptcy.

FairPoint sent the Vermont Board a letter in July, urging the
regulator to keep the proceedings open.  The Company may try to
strike a new deal with the Vermont Board, or ask the Bankruptcy
Court to overrule the Vermont Board ruling and approve its
bankruptcy plan.

Mr. Smith said the reorganization plan "was carefully
choreographed and involved multiple players, including the unions
and the other states where FairPoint does business, so any change
to accommodate Vermont could affect other moving parts of the
bankruptcy reorganization plan, that could end up delaying the
process."

The Bankruptcy Court has adjourned the second and final phase of
the plan confirmation hearing to an undetermined date.

                 About FairPoint Communications

FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- provides communications services to
communities across the country.  FairPoint owns and operates local
exchange companies in 18 states offering advanced communications
with a personal touch, including local and long distance voice,
data, Internet, television and broadband services.

FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335).  Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel.  BMC Group is claims and notice agent.

As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.

Bankruptcy Creditors' Service, Inc., publishes FairPoint
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by FairPoint Communications Inc. and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


FAIRPOINT COMMS: Proposes 2010 Labor MOU With NNE Unions
--------------------------------------------------------
FairPoint Communications, Inc., and its debtor affiliates seek
permission from the Court to enter into and implement a "Labor
Memorandum of Understanding" pursuant to Sections 105 and
363(b)(1) of the Bankruptcy Code and Rule 9019 of the Federal
Rules of Bankruptcy Procedure.

Northern New England Telephone Operations LLC and Telephone
Operating Company of Vermont LLC, d/b/a FairPoint Communications,
are parties to two collective bargaining agreements with the
International Brotherhood of Electrical Workers and the
Communications Workers of America.

The Debtors initiated discussions with the NNE Unions in 2009 to
advise the Unions of the financial issues confronting them and to
seek the Unions' support and cooperation in making adjustments to
the CBAs to assist them in addressing those financial issues,
James T. Grogan, Esq., at Paul Hastings Janofsky & Walker LLP, in
New York, relates.  Those discussions continued after the
Petition Date, concluding in a 2010 Memorandum of Understanding
executed by the parties on February 1, 2010, he reveals.  The
Labor MOU was ratified by the NNE Unions on March 1, 2010.

The salient terms of the 2010 Labor MOU are:

   (A) Term: The term of the CBAs will be extended to August 2,
       2014.

   (B) Wages: Certain wage increases previously scheduled to
       begin in August 2010 under the CBAs will be replaced by
       wage increases that will begin in August 2011.

   (C) Profit Sharing: The minimum payment under the corporate
       profit sharing program will be eliminated and will be
       replaced by a methodology that provides for a greater
       level of profit sharing if the Company meets or exceeds
       its financial objectives and a lower level of or no
       profit sharing if the Company fails to do so.

   (D) Labor Management Committee: The Parties will create a
       joint labor-management committee -- the Joint Committee
       on Operational Effectiveness -- which will work with
       professional facilitators to identify opportunities to
       achieve a goal of $25 million per year reduction in the
       Company's operating costs on an ongoing basis.

   (E) 401(K) Plan: FairPoint will be authorized to pay matching
       contributions under its 401(K) plan in stock rather than
       in cash.

   (F) Effective Date: The Labor MOU is subject to the Bankruptcy
       Court's approval and will become effective on the date
       that the order of the Court approving the Labor MOU
       becomes final.

   (G) Section 1113 Relief:  On the Effective Date, the Debtors
       will unconditionally waive any right to seek relief in
       any form pursuant to Section 1113 of the Bankruptcy Code
       and acknowledge that the Labor MOU provides those
       necessary modifications in employee benefits and
       protections that are necessary to permit the Company's
       reorganization.

   (H) Release: As of the Effective Date, the Parties will
       mutually release each other from any and all claims
       arising before the Effective Date and will take all
       actions necessary to withdraw, discontinue, or dismiss
       any civil proceedings, which have arisen before the
       Effective Date.  However, those releases will not be
       deemed to waive any grievances or arbitrations filed
       before the signing of the Labor MOU, which are pending
       pursuant to the existing CBAs.

A full-text copy of the Labor MOU is available for free at:

          http://bankrupt.com/misc/FairPt_LaborMOU.pdf

The Labor MOU is incorporated in the Debtors' Modified Second
Amended Joint Plan of Reorganization dated March 10, 2010.  As
proposed by the Debtors, confirmation of the Plan was to be
conducted in a two-phase process.  In the first phase, the Court
held a hearing that would overrule all objections to the Plan
other than with respect to (i) certain regulatory settlements,
and (ii) certain issues raised by Verizon Communications Inc.
The Court entered an order on May 14, 2010, reflecting rulings
made at the Phase I hearing.

A continued hearing for the Phase II Confirmation Issues has not
occurred as quickly as initially anticipated because of the
pending resolution of issues which have arisen with respect to
one of the regulatory settlements to which the Debtors are
parties to.  Thus, the Debtors are seeking approval of the Labor
MOU through a separate formal motion rather than pursuant to the
Plan.

"The Labor MOU is necessary, in FairPoint's judgment, to its
successful reorganization under Chapter 11," Mr. Grogan asserts.

Absent Court approval of the Labor MOU, the Parties would likely
require judicial intervention to resolve any dispute between them
relating to the CBAs, Mr. Grogan points out.  He contends that
even if the Debtors are to prevail on those issues, they have to
consider the possibility that the judicial intervention under
Section 1113 could lead to a strike or other form of work
disruption, which could be disruptive to its business.  "In any
event, that litigation would be costly, time consuming and
distracting to FairPoint's management and employees.  In
contrast, approval of the Labor MOU would eliminate the risks and
distractions associated with litigation," Mr. Grogan says.

The Court will consider approval of the Labor MOU on Sept. 29,
2010.  Objections are due no later than Sept. 22.

                 About FairPoint Communications

FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services.  FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.

FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335).  Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel.  BMC Group is claims and notice agent.

As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
stockholders' equity.

Bankruptcy Creditors' Service, Inc., publishes FairPoint
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by FairPoint Communications Inc. and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


FAIRPOINT COMMS: Reports $36.57-Mil. Net Loss for Second Quarter
----------------------------------------------------------------
FairPoint Communications, Inc., filed with the U.S. Securities
and Exchange Commission on August 5, 2010, its second quarter
financial results report for the period ended June 30, 2010.

FairPoint Executive Vice President and Chief Financial Officer
Ajay Sabherwal discloses that the Company's revenues decreased
$10.7 million to $274.1 million in the second quarter of 2010
compared to 2009.

Mr. Sabherwal attributes FairPoint's decreased revenues for the
second quarter of 2010 to certain main factors, which are:

  * Local calling services revenues decreased $8.5 million to
    $106.2 million during the second quarter of 2010 compared to
    the same period in 2009.  This decrease is primarily due to
    an 11.6% decline in total voice access lines in service at
    June 30, 2010 compared to June 30, 2009.  The revenue
    decline was mainly driven by the effects of competition and
    technology substitution;

  * Access revenues increased $2.4 million to $97.3 million
    during the second quarter of 2010 compared to the same
    period in 2009.  Of this increase, $5.8 million is
    attributable to an increase in interstate access revenues,
    partially offset by a $3.4 million decrease in intrastate
    access revenues.  Interstate access revenues have increased
    due to an increase in minutes of use associated with
    switched access revenues;

  * Long distance services revenues decreased $5.4 million to
    $30.3 million in the second quarter of 2010 compared to the
    same period in 2009.  The decrease was primarily
    attributable to a decrease in the number of subscriber lines
    from June 30, 2009 to June 30, 2010;

  * Data and Internet services revenues increased $0.7 million
    to $29 million in the second quarter of 2010 compared to
    the same period in 2009.  Data access lines increased during
    the quarter ended June 30, 2010;

  * Other services revenues increased $0.1 million to
    $11.3 million in the second quarter of 2010 compared to the
    same period in 2009;

  * Cost of services and sales decreased $11.8 million to
    $112 million in the second quarter of 2010 compared to the
    same period in 2009.  This decrease is mainly attributable to
    a $2.5 million decrease of deferred activation fee costs, a
    $2.2 million decrease in access expenses and reductions in
    certain employee expenses;

  * Selling, general and administrative expenses increased
    $2.4 million to $101 million in the second quarter of 2010
    compared to the same period in 2009.  The increase is
    primarily attributable to an increase in certain employee
    expenses, a $3.1 million increase in professional fees
    related to the Amendments to FairPoint's 2009 quarterly
    filings on Form 10-Q/A as well as increased audit work due
    to the material weaknesses, and a $1.4 million increase in
    other operating taxes offset by a $1.9 million reduction in
    bad debt expense; and

  * Depreciation and amortization expense increased $1.7 million
    to $70.6 million in the second quarter of 2010 compared to
    the same period in 2009, due primarily to higher gross plant
    asset balances, including capitalized software placed into
    service upon termination of the Transition Services
    Agreement between Verizon Communications Inc. and Northern
    New England Telephone Operations Inc.

Fairpoint also reported a net loss for the quarter ended June 30,
2010, of $36.6 million compared to net loss of $28.2 million for
the same period in 2009.

As of July 30, 2010, about 89,989,144 shares of FairPoint's
common stock are outstanding.

A full-text copy of FairPoint Communications' 2010 Second Quarter
Results is available for free at the SEC:

              http://ResearchArchives.com/t/s?681a

       FairPoint Communications, Inc., and Subsidiaries
            Consolidated Unaudited Balance Sheet
                    As of June 30, 2010

Assets:
Current Assets
Cash                                              $112,329,000
Restricted Cash                                      2,249,000
Accounts receivable, net                           148,519,000
Materials and Supplies                              27,819,000
Other                                               29,012,000
Deferred income tax, net                            60,224,000
                                              -----------------
Total current assets                                380,152,000

Property, plant and equipment, net                1,921,923,000
Intangible assets, net                              200,533,000
Prepaid pension, asset                                9,643,000
Debt issue costs, net                                   293,000
Restricted cash                                       1,328,000
Other assets                                         19,926,000
Goodwill                                            595,120,000
                                              -----------------
Total Assets                                     $3,128,918,000
                                              =================

Liabilities and Stockholders' Deficit:
Liabilities not subject to compromise:
Current portion of capital lease obligations          $522,000
Accounts payable                                    84,775,000
Accrued interest payable                                 3,000
Other accrued liabilities                           61,682,000
                                              -----------------
Total current liabilities                           146,982,000

Accrued pension obligation                          55,763,000
Employee benefit obligation                        275,421,000
Deferred income taxes                               95,170,000
Unamortized investment tax credits                   4,534,000
Other long-term liabilities                         13,400,000
                                              -----------------
Total long-term liabilities                         444,288,000
Total liabilities not subject to compromise         591,270,000
Liabilities subject to compromise                 2,864,571,000
                                              -----------------
Total liabilities                                 3,455,841,000

Stockholders' equity (deficit):
Common stock                                           900,000
Additional paid-in capital                         725,969,000
Retained earnings (deficit)                       (931,872,000)
Accumulated other comprehensive loss              (121,920,000)
                                              -----------------
Total stockholders' equity (deficit)               (326,923,000)
                                              -----------------
Total liabilities and stockholders' equity       $3,128,918,000
                                              =================

      FairPoint Communications, Inc., and Subsidiaries
       Consolidated Unaudited Statement of Operations
          For the Three Months Ended June 30, 2010

Revenues                                           $274,099,000

Operating Expenses:
Cost of services and sales, excluding
depreciation and amortization                      112,041,000
Selling general and administrative expense,
including depreciation and amortization            101,000,000
Depreciation and amortization                       70,559,000
                                              -----------------
Total operating expenses                            283,600,000
                                              -----------------
Income (loss) from Operations                        (9,501,000)
                                              -----------------
Other income (expense):
Interest expense                                   (35,721,000)
Gain (loss) on derivative instruments                        -
Gain on early retirement of debt                             -
Other                                               (3,138,000)
                                              -----------------
Total other expense                                 (38,859,000)
                                              -----------------
Income (loss) before reorg items, income taxes      (48,360,000)
Reorganization items                                  1,549,000
                                              -----------------
Loss before income tax                              (46,811,000)
Income tax (expense) benefit                         10,245,000
                                              -----------------
Net Income (Loss)                                  ($36,566,000)
                                              =================

         FairPoint Communications, Inc., and Subsidiaries
          Consolidated Unaudited Statement of Cash Flows
             For the six months ended June 30, 2010

Cash flows from operating activities:
Net (loss) income                                ($112,157,000)
                                              -----------------
Adjustments to reconcile net income to net cash
provided by operating activities excluding
impact of acquisitions:
Deferred income taxes                               (6,753,000)
Provision for uncollectible revenue                 17,427,000
Depreciation and amortization                      140,904,000
Post-retirement accruals                            18,567,000
Gain on derivative instruments                               -
Gain of early retirement of debt                             -
Non-cash reorganization costs                      (20,001,000)
Other non cash items                                 9,694,000
Changes in assets and liabilities
arising from operations:
Accounts receivable                                 (7,506,000)
Prepaid other assets                               (13,905,000)
Accounts payable and accrued liabilities            27,054,000
Accrued interest payable                            67,959,000
Other assets and liabilities, net                   (7,622,000)
                                              -----------------
Total adjustments                                  225,818,000
                                              -----------------
Net cash provided by operating activities          113,661,000

Cash flows from investing activities:
Net capital additions                             (114,594,000)
Net proceeds from sales of investments
and other assets                                        79,000
                                              -----------------
Net cash used in investing activities             (114,515,000)

Cash flows from financing activities:
Loan origination costs                              (1,100,000)
Proceeds from issuance of long-term debt             5,513,000
Repayments of long-term debt                                 -
Restricted cash                                        458,000
Repayment of capital lease obligations              (1,043,000)
Dividends paid to stockholders                               -
                                              -----------------
Net cash provided by financing activities            3,828,000
                                              -----------------
Net increase in cash                                 2,974,000

Cash beginning of period                           109,355,000
                                              -----------------
Cash, end of period                               $112,329,000
                                              =================

                 About FairPoint Communications

FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services.  FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.

FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335).  Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel.  BMC Group is claims and notice agent.

As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.

Bankruptcy Creditors' Service, Inc., publishes FairPoint
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by FairPoint Communications Inc. and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


FANNIE MAE: Conservator Seeks $1.5-Bil. Funding From Treasury
-------------------------------------------------------------
Federal National Mortgage Association has received a total of
$83.6 billion as of June 30, 2010, from the U.S. Treasury pursuant
to the parties' senior preferred stock purchase agreement,
according to a regulatory filing by the Company with the
Securities and Exchange Commission.  Fannie Mae said the funds
allowed it to eliminate its net worth deficits as of the end of
each of the six prior quarters.

In August 2010, the Acting Director of the Federal Housing Finance
Agency, which acts as conservator for Fannie Mae, submitted a
request for $1.5 billion from Treasury under the senior preferred
stock purchase agreement to eliminate Fannie Mae's net worth
deficit as of June 30, 2010, and requested receipt of those funds
on or prior to September 30, 2010.  Upon receipt of the requested
funds, the aggregate liquidation preference of the senior
preferred stock, including the initial aggregate liquidation
preference of $1.0 billion, will equal $86.1 billion.

Fannie Mae said due to the continued weakness in the housing and
mortgage markets and its dividend obligation under the senior
preferred stock purchase agreement, it continues to expect to have
a net worth deficit in future periods, and therefore will be
required to obtain additional funding from Treasury pursuant to
the senior preferred stock purchase agreement.  Treasury's maximum
funding commitment to Fannie Mae prior to a December 2009
amendment of the senior preferred stock purchase agreement was
$200 billion.

The amendment to the agreement stipulates that the cap on
Treasury's funding commitment to Fannie Mae under the senior
preferred stock purchase agreement will increase as necessary to
accommodate any net worth deficits for calendar quarters in 2010
through 2012.

For any net worth deficits as of December 31, 2012, Treasury's
remaining funding commitment will be $124.8 billion ($200 billion
less $75.2 billion cumulatively drawn through March 31, 2010) less
any positive net worth as of December 31, 2012.

As reported by the Troubled Company Reporter on August 10, 2010,
Fannie Mae reported a net loss of $1.2 billion in the second
quarter of 2010, compared to a net loss of $11.5 billion in the
first quarter of the year.

As of June 30, 2010, Fannie Mae had total assets of
$3.256 trillion against total liabilities of $3.257 trillion and
non-controlling interest of $71 million, resulting in total
deficit of $1.411 billion.

                        About Fannie Mae

Federal National Mortgage Association, aka Fannie Mae, is a
government-sponsored enterprise that was chartered by U.S.
Congress in 1938 to support liquidity, stability and affordability
in the secondary mortgage market, where existing mortgage-related
assets are purchased and sold.

Fannie Mae has been under conservatorship, with the Federal
Housing Finance Agency acting as conservator, since September 6,
2008.  As conservator, FHFA succeeded to all rights, titles,
powers and privileges of the company, and of any shareholder,
officer or director of the company with respect to the company and
its assets.  The conservator has since delegated specified
authorities to Fannie Mae's Board of Directors and has delegated
to management the authority to conduct day-to-day operations.

The U.S. Department of the Treasury owns Fannie Mae's senior
preferred stock and a warrant to purchase 79.9% of its common
stock, and Treasury has made a commitment under a senior preferred
stock purchase agreement to provide Fannie with funds under
specified conditions to maintain a positive net worth.


FREDDIE MAC: Has $4.7BB Q2 Loss, Asks for Add'l $1.8BB from Govt
----------------------------------------------------------------
Freddie Mac reported a net loss of $4.7 billion for the quarter
ended June 30, 2010, compared to a net loss of $6.7 billion for
the quarter ended March 31, 2010.  After the dividend payment of
$1.3 billion on its senior preferred stock to the U.S. Department
of the Treasury, Freddie Mac reported a net loss attributable to
common stockholders of $6.0 billion, or $1.85 per diluted common
share, for the second quarter of 2010, compared to a net loss
attributable to common stockholders of $8.0 billion, or $2.45 per
diluted common share, for the first quarter of 2010.

The Company's balance sheet at June 30, 2010, showed
$2.343 trillion in total assets, $2.345 trillion in total
liabilities, and $1.738 billion in total deficit.

The company had a net worth deficit of $1.7 billion at June 30,
2010, compared to a net worth deficit of $10.5 billion at March
31, 2010.  The second quarter net worth deficit was primarily
driven by a total comprehensive loss attributable to Freddie Mac
of $0.4 billion and the dividend payment of $1.3 billion to
Treasury on the senior preferred stock.  The second quarter total
comprehensive loss attributable to Freddie Mac includes the
quarterly net loss of $4.7 billion, partially offset by a $4.3
billion improvement in accumulated other comprehensive income.

The Federal Housing Finance Agency, as Conservator, will submit a
request on the company's behalf to Treasury for a draw of $1.8
billion under the Senior Preferred Stock Purchase Agreement.

"Freddie Mac continues to support the still-fragile housing market
by providing America's families with access to affordable home
financing and foreclosure alternatives," said Freddie Mac Chief
Executive Officer Charles E. Haldeman, Jr. "We helped more than
150,000 struggling borrowers avoid foreclosure and provided
funding that enabled more than 865,000 American families to buy or
rent a home in the first half of 2010 - during which the GSEs
again supplied the majority of all the liquidity to the U.S.
mortgage market.

"At the same time, we are promoting sustainable homeownership by
helping families buy homes that they can afford and keep for the
long term," said Haldeman.  "We recognize that high unemployment
and other factors still pose very real challenges for the housing
market, and with that in mind, we continue to focus on the quality
of the new business we are adding to our book to be responsible
stewards of taxpayer funds as we support the nation's housing
market."

Non-interest income (loss) for the second quarter of 2010 was a
loss of $3.6 billion, compared to a loss of $4.9 billion in the
first quarter of 2010. Included in non-interest income (loss) for
the second quarter of 2010 were derivative losses of $3.8 billion,
compared to first quarter 2010 derivative losses of $4.7 billion.
The second quarter derivative losses reflected the effect on the
company's net pay-fixed derivative portfolio of a flattening yield
curve as longer-term swap interest rates declined.

Non-interest expense was $0.5 billion for the second quarter of
2010, compared to $0.7 billion for the first quarter of 2010.
Included in non-interest expense for the second quarter of 2010
was REO operations income of $40 million, compared to REO
operations expense of $159 million in the first quarter of 2010,
reflecting the recovery of prior period write-downs due to
improved REO fair values during the second quarter.

                          Credit Quality

The company's single-family credit guarantee portfolio continues
to experience significant credit losses, most of which are
attributable to loans acquired from 2005 through 2008.  The
company's management believes that the credit quality of the
single-family loans the company acquired in the first half of 2010
is strong as compared to loans acquired from 2005 through 2008, as
measured by original loan-to-value ratios, FICO scores, and income
documentation standards.

At June 30, 2010, approximately 30% of the company's single-family
credit guarantee portfolio consisted of mortgage loans originated
in 2009 and the first half of 2010.  These loans have experienced
significantly better delinquency trends at this stage in their
lifecycle than loans acquired from 2006 through 2008. Excluding
refinance loans purchased pursuant to the Home Affordable
Refinance Program, the company believes this improvement reflects
recent changes in underwriting standards.  During the second
quarter of 2010, the revenue from the mortgage loans originated in
2009 and the first half of 2010 exceeded the credit expenses
related to these loans.

A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6887

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6888

                        About Freddie Mac

Based in McLean, Virginia, Freddie Mac (NYSE: FRE)
-- http://www.FreddieMac.com/-- was established by Congress in
1970 to provide liquidity, stability and affordability to the
nation's residential mortgage markets.  Freddie Mac supports
communities across the nation by providing mortgage capital to
lenders.  Over the years, Freddie Mac has made home possible for
one in six homebuyers and more than five million renters.

Freddie Mac is under conservatorship and is dependent upon the
continued support of Treasury and FHFA to continue operating its
business.  The Company received $6.1 billion and $30.8 billion in
June 2009 and March 2009, respectively, pursuant to draw requests
that FHFA submitted to Treasury on the Company's behalf to address
the deficits in the Company's net worth as of March 31, 2009, and
December 31, 2008, respectively.  As a result of funding of the
draw requests, the aggregate liquidation preference on the senior
preferred stock owned by Treasury increased from $14.8 billion as
of December 31, 2008, to $51.7 billion on December 31, 2009.


GARLOCK SEALING: Asbestos Panel Has OK for Hamilton as Co-Counsel
-----------------------------------------------------------------
The Official Committee of Asbestos Personal Injury Claimants for
Garlock Sealing Technologies LLC received the U.S. Bankruptcy
Court for the Western District of North Carolina's permission to
retain Hamilton, Moon, Stephens, Steele & Martin, PLLC, as their
co-counsel, nunc pro tunc to July 6, 2010.

As the Asbestos Claimants Committee's co-counsel, Hamilton Moon
will render these services, including:

  (a) assisting and advising the Asbestos Claimants Committee in
      its consultations with the Debtors and other committees
      relative to the overall administration of the Debtors'
      estates;

  (b) representing the Asbestos Claimants Committee at hearings
      to be held before the Bankruptcy Court or Federal District
      Court or any appellate courts and communicating with the
      Asbestos Claimants Committee regarding the matters heard
      and issues raised as well as the decisions and
      considerations of the Bankruptcy Court and any other
      courts;

  (c) assisting and advising the Asbestos Claimants Committee in
      its examination and analysis of the Debtors' conduct and
      financial affairs;

  (d) reviewing and analyzing all applications, orders,
      operating reports, schedules and statements of affairs
      filed and to be filed with the Bankruptcy Court by the
      Debtors or other interested parties in these Chapter 11
      cases; advising the Asbestos Claimants Committee as to the
      necessity and propriety of those pleadings and their
      impact upon the rights of asbestos-related claimants, and
      upon the Debtors' Chapter 11 cases; and after consultation
      with and approval of the Asbestos Claimants Committee or
      its designee, consenting to appropriate orders on its
      behalf or otherwise objecting to it;

  (e) assisting the Asbestos Claimants Committee in preparing
      appropriate legal pleadings and proposed orders as may be
      required in support of positions taken by the Asbestos
      Claimants Committee and preparing witnesses and reviewing
      relevant documents;

  (f) coordinating the receipt and dissemination of information
      prepared by and received from the Debtors' independent
      certified accountants or other professionals retained by
      it as well as other information as may be received from
      independent professionals engaged by the Asbestos
      Claimants Committee and other committees, as applicable;

  (g) assisting the Asbestos Claimants Committee in the
      solicitation and filing with the Bankruptcy Court of
      acceptances or rejections of any proposed plan or plans of
      reorganization;

  (h) assisting and advising the Asbestos Claimants Committee
      with regard to communications to the asbestos-related
      claimants regarding its efforts, progress and
      recommendation with respect to matters arising in the
      Debtors' Chapter 11 cases as well as any proposed plan of
      reorganization;

  (i) assisting the Asbestos Claimants Committee generally by
      providing other services as may be in the best interest of
      the creditors represented by the Asbestos Claimants
      Committee; and

  (j) assisting and advising the Asbestos Claimants Committee
      with regard to the local rules and practice of the
      Bankruptcy Court and the U.S. District Court for the
      Western District of North Carolina.

The Debtors will pay Hamilton Moon's professionals according to
their customary hourly rates:

          Name                   Rate per Hour
          ----                   -------------
          T. Jonathan Adams           $315
          Brooke Bishop                $95
          L. Stanley Brown            $450
          Rebecca K. Cheney           $295
          Adrianne Chillemi           $285
          Tracey A. Farrar            $125
          David B. Hamilton           $400
          Adam L. Horner              $265
          Andrew T. Houston           $265
          Mark R. Kufny               $300
          Heide R. Larkin             $140
          Michael Aaron Lay           $225
          Debbie Mankus               $135
          Bentford E. Martin          $350
          Keith J. Merritt            $350
          Travis W. Moon              $575
          Amy Morris                  $135
          Shannon Myers               $155
          Allison C. Pauls            $275
          Erik M. Rosenwood           $325
          George W. Sistrunk, III     $300
          Jackson N. Steele           $450
          Robert C. Stephens          $400
          Glenn C. Thompson           $275
          Allen L. West               $315
          Reba R. Whaley              $125
          Richard S. Wright           $350

The Debtors will reimburse Hamilton Moon for expenses incurred.

Travis W. Moon, Esq., -- tmoon@lawhms.com -- a member of Hamilton
Moon assures the Court that his firm is a "disinterested person"
as the term is defined under Section 101(14) of the Bankruptcy
Code.

                      About Garlock Sealing

Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO).  For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.

On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W.D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code.  The Debtor
estimated $500 million to $1 billion in assets and up to
$500 million in debts as of the Petition Date.  Affiliates The
Anchor Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.

The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas.  Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.

Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtors in theirChapter 11 effort.  Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.

Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News.  The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


GARLOCK SEALING: Sec. 341 Meeting Held on August 4
--------------------------------------------------
Linda W. Simpson, U.S. Bankruptcy Administrator for the Western
District of North Carolina, held the meeting of the creditors of
Garlock Sealing Technologies LLC and its debtor affiliates on
August 4, 2010.

Don Pomeroy, vice president and chief financial officer of the
Debtors, was the sworn representative of the Debtors, according to
a proceedings memo filed with the Court dated August 6, 2010.

At the meeting, Mr. Pomeroy said Garlock will amend continuation
sheets for schedules "F" and "G" of its Schedules of Assets and
Liabilities to add plaintiffs' names, explaining that the
previously filed Schedules only included the law firms.

Mr. Pomeroy also cited the names of Garlock's officers:

   Name                         Title
   ----                         -----
   Dale Herold                  President
   Daniel Grgurich              Vice President and Treasurer
   Christopher Drake            Vice President and Secretary
   David Fold                   Assistant Treasurer

Mr. Pomeroy related that earlier this year and last year, Garlock
implemented layoffs due to economic conditions and were unrelated
to bankruptcy.

Mr. Pomeroy cited asbestos claims as one of the factors to
Garlock's bankruptcy filing.  He also pointed out that Garlock'
assets are insured and that Garlock is aware of quarterly fee
requirements in compliance with the Court's orders, he noted.

In formulating its reorganization plan, Garlock intends to
determine the amount of asbestos claims and to pay them, Mr.
Pomeroy disclosed.  Garlock hopes to file that plan within the
exclusive period, Mr. Pomeroy added.

The Official Committee of Asbestos Personal Injury Claimants also
attended the meeting.

A full-text copy of the August 6 Proceeding Memo is available for
free at http://bankrupt.com/misc/Garlock_Sec341ProcMemo.pdf

                      About Garlock Sealing

Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO).  For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.

On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W.D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code.  The Debtor
estimated $500 million to $1 billion in assets and up to
$500 million in debts as of the Petition Date.  Affiliates The
Anchor Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.

The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas.  Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.

Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtors in theirChapter 11 effort.  Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.

Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News.  The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


GARLOCK SEALING: Wants Plan Filing Exclusivity Until April 1
------------------------------------------------------------
Section 1121(b) of the Bankruptcy Code provides for an initial
period of 120 days after the commencement of a Chapter 11 case
wherein a debtor has the exclusive right to propose and file a
Chapter 11 plan.  Section 1121(c)(3) provides that if a debtor
files a plan within the 120-day Plan Period, it has a period of
180 days after the Petition Date to obtain acceptance of that
plan, during which time competing plans may not be filed.

Garlock Sealing Technologies LLC and its debtor affiliates'
exclusive plan filing period expires on October 3, 2010, and
exclusive solicitation period on December 2, 2010.

By this motion, the Debtors ask the U.S. Bankruptcy Court for the
Western District of North Carolina to extend their:

  (i) Exclusive Plan Filing Period to April 1, 2011; and

(ii) Exclusive Solicitation Period to May 31, 2011.

Ashley K. Neal, Esq., at Rayburn Cooper & Durham, P.A., in
Charlotte, North Carolina, tells the Court that the Debtors have
made significant progress in resolving issues facing their
estates.  Specifically:

  (1) Since the Petition Date, the Debtors have focused on
      ensuring an orderly transition into Chapter 11, which has
      included, among others, obtaining debtor-in-possession
      financing, completion of the requisite schedules of assets
      and liabilities and statements of financial affairs, and
      communication with parties-in-interest, including the
      Official Committee of Asbestos Personal Injury Claimants.

  (2) The Debtors have been diligent in discharging their duties
      as debtors-in-possession and are making progress toward a
      consensual Chapter 11 plan.  During the initial period of
      the Chapter 11 cases, the Debtors have focused on
      maintaining profitable business operations as they made
      the transition into Chapter 11 and laying the groundwork
      to achieve the principal purpose of the Chapter 11 cases
      -- a permanent resolution of mass asbestos litigation
      plaguing an otherwise healthy company.  In the two months
      since the Petition Date, the Debtors have made good
      progress toward this central goal.

  (3) After the Petition Date, the Debtors moved quickly to
      maximize the prospect for a consensual plan by initiating
      a dialogue with key representatives of holders of asbestos
      claims.  On June 10, 2010, the Debtors hosted a conference
      in New York attended by law firms representing the
      majority of individuals who have asserted pending asbestos
      cancer claims against the Debtors.  Most of the law firms
      that the Court subsequently appointed to the Official
      Committee of Asbestos Personal Injury Claimants were
      present, as well as Caplin & Drysdale, Chartered, which is
      the Asbestos Claimant Committee's counsel.  The content of
      the parties' discussions is subject to settlement
      negotiations privilege.  The purpose and effect of the
      conference, however, was to open a pathway toward
      an expeditious consensual plan of reorganization.

  (4) The Debtors also have moved to define the pathway for
      resolution of their asbestos litigation through
      litigation, if necessary.  They have secured the
      appointment of professionals that will represent and
      advise them, whether through settlement or litigation,
      toward defining the Debtors' responsibility for asbestos
      claims and developing a mechanism for payment of any valid
      claims or settled claims.  To protect the reorganization
      process and preserve the Debtors' shared insurance with
      Coltec Industries Inc., which represents one of Garlock's
      most significant assets, the Debtors moved for and
      obtained a preliminary injunction enjoining asbestos-
      related actions against Coltec and other affiliates.  The
      Debtors will file a motion for entry of case management
      order to (1) establish a bar date for asbestos claims; (2)
      approve claim forms; (3) approve a notice program; and (4)
      estimate the Debtors' liability for asbestos claims.

Implementing a case management order will establish a schedule to
resolve common issues related to asbestos claims and ultimately,
to estimate the Debtors' liability for asbestos claims, Ms. Neal
explains.  Until entry of the case management order, however,
there is no timetable for the asbestos claims resolution process,
she points out.  Similarly, until the Debtors' responsibility for
Asbestos Claims is defined through claims resolution and
estimation processes, it will not be possible for holders of
asbestos claims to vote on any Chapter 11 plan or for the Court
and parties to meaningfully evaluate confirmation of any Chapter
11 plan proposed by the Debtors, she says.

According to Ms. Neal, the Debtors will propose a Chapter 11 plan
whereby Garlock will create a post-confirmation trust to process
and resolve all legitimate asbestos claims.  Garlock will fund
that trust with assets equal in value to an amount estimated by
the Court necessary to pay claims in full, she notes.  In
conjunction with the plan, Garlock will seek issuance of a
channeling injunction by the district court: (a) channeling all
asbestos claims to the post-confirmation trust for claims
resolution and remedies; and (b) enjoining all asbestos claimants
from pursuing remedies from Garlock, its affiliates, and other
protected persons, she elaborates.  This process will fully,
fairly, and finally resolve Garlock's responsibility for asbestos
claims, she adds.

Ms. Neal further asserts that the Debtors' Chapter 11 cases are
not only large, but also complex.  This complexity is primarily a
function of the more than 100,000 claims pending against the
Debtors as of the Petition Date, she emphasizes.  The Debtors
also believe that the proposed extension is relatively brief and
will not harm creditors.  In fact, the extension would allow
additional time for the Debtors to negotiate with the Asbestos
Claimants Committee to formulate a plan that is acceptable to all
parties-in-interest, she assures the Court.  In light of the
complexity of the Debtors' Chapter 11 cases and the issues that
must be resolved before a plan can be proposed, it is unlikely
that any other party-in-interest is in a position to propose a
plan prior to April 1, 2011, she stresses.  At best, the Debtors
want to submit a proposed plan as soon as possible in order to
expedite emergence from Chapter 11, she tells the Court.

In a related request, the Debtors ask the Court to shorten the
notice period with respect to the Exclusivity Motion so that a
hearing will be held on August 26, 2010.

                      About Garlock Sealing

Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO).  For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.

On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code.  The Debtor
estimated $500 million to $1 billion in assets and up to
$500 million in debts as of the Petition Date.  Affiliates The
Anchor Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.

The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas.  Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.

Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtors in theirChapter 11 effort.  Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.

Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News.  The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


GENERAL GROWTH: Brookfield Aims to Re-Energize GGP After Bankr.
---------------------------------------------------------------
Brookfield Asset Management Inc. said in an Aug. 6 letter to
shareholders that it expects General Growth Properties Inc. to
emerge from bankruptcy "in the fall of this year," and also said
its investor group will own about 30% of the retail-space owner at
that time.

"As we see it, GGP has one of the few great retail franchises in
the United States.  The company has 175 major regional shopping
malls -- approximately 20% of the regional malls in the U.S., of
which at least 100 are extremely high quality, and at least 25
among the very best.  As with all companies, there are also some
properties which are underperforming.  Some have been disposed of
as part of the bankruptcy process, the balance we will work to
re-establish in the retail marketplace," Brookfield said.

Brookfield added that its goal for GGP over the next 10 years is
to achieve these:

  (1) Stabilize the operations and re-energize GGP as the finest
      operating platform for retail shopping malls in the U.S.;

  (2) Dispose of non-core assets when opportunities arise to
      maximize value from these assets as the retail markets
      recover;

  (3) Introduce institutional clients into partial direct
      interests in assets, in order to leverage our returns; and

  (4) Utilize excess cash to reduce debt levels over time, while
      retaining the balance of the cash to reinvest into
      redeveloping and intensifying assets, repurchasing shares,
      and expanding the franchise internationally.

Brookfield said that a number of shareholders have asked about two
main issues regarding GGP: (i) the leverage level of GGP, and (ii)
the free float of shares traded in the market after GGP emerges
from bankruptcy.

"On leverage, we believe that this bankruptcy process has
established an exceptional capital structure, providing all the
benefits of appropriate leverage, but with substantially
diminished risk that is typically associated with financial
leverage," Brookfield said.  It added that the cost of GGP's debt
averages only 5.4%, which is readily serviceable by the 175
regional malls that will remain in GGP.

"With respect to free float, there will be a substantial number of
shares in the marketplace to be purchased by investors.  At
regularized trading multiples of similar companies, the traded
value of the company will be $15 billion and the float in the
range of $8 billion, larger than most of the REITS in the United
States.  We believe that this entity will be highly attractive for
investors who wish exposure to the retail shopping mall industry,
and we think it will find a spot in the capital market portfolios
of many investors," Brookfield said.

                         About Brookfield

Brookfield Asset Management Inc. -- http://www.brookfield.com/--
is focused on property, renewable power and infrastructure assets,
and has over $100 billion of assets under management.  It is
co-listed on the New York and Toronto Stock Exchanges under the
symbol BAM and on NYSE Euronext under the symbol BAMA.

Brookfield also acquired, through a bankruptcy process, a 65%
interest in a large multi-family operating business called
Fairfield Residential.  Fairfield acquires, entitles, develops and
manages multi-family apartments in the U.S.  Fairfield currently
manages approximately 55,000 apartment units, and Brookfield
intends to utilize this platform to expand these operations with a
number of our clients who are interested in owning these types of
assets, which traditionally have earned stable long-term returns.

                       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, serve 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: Estimation Motion for Hughes Heirs Claims Denied
----------------------------------------------------------------
U.S. Bankruptcy Judge Allan Gropper issued a formal order denying
General Growth Properties Inc.'s estimation motion with respect to
all claims of former investors of Hughes Corp., other than with
respect to the Final Valuation Date Payment, asserted by
beneficiaries under a 1996 Contingent Stock Agreement executed by
General Growth Properties, Inc., as successor to The Rouse
Company.

With respect to the Final Valuation Date Payment, Judge Gropper
adjourned the Estimation Motion until further order of the Court
or renewal of the Estimation Motion by the Debtors.

Judge Gropper also directed the parties to proceed with the
selection of a neutral third appraiser as provided for in the CSA
and to proceed with an expedited appraisal process complying (i)
closely as possible with the terms of the CSA and (ii) with the
directions of the Court on the record at a July 22, 2010 hearing.
The parties will endeavor to remain within the timelines for the
appraisal process described in the CSA, subject to the parties'
agreement to alter that timeline.

Judge Gropper authorized the Official Committee of Equity Security
Holders to participate in the appraisal process and to communicate
with the neutral appraiser with the consent of the neutral
appraiser.  Judge Gropper averred that nothing in this order is
intended to invalidate or alter the appraisal process as provided
for in the CSA, except to the extent that the parties have so
agreed or as the Court may order.

Judge Gropper also issued a formal order denying the Lift Stay
Motion filed by Platt W. Davis III, David G. Elkins and David R.
Lummis, as representatives under the Contingent Stock Agreement
with respect to all claims set forth in the Hughes Heirs' Claims
other than with respect to the Final Valuation Date Payment.  As
to the Final Valuation Date Payment, Judge Gropper granted the
Lift Stay Motion.  To the extent the Lift Stay Motion sought
arbitration of any issue, that relief is denied, Judge Gropper
averred.

                     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, serve 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: Pershing Square Keeps 7.5% Stake in GGP
-------------------------------------------------------
In a Schedule 13-D/A filed with the Securities and Exchange
Commission on August 4, 2010, Pershing Square Capital Management,
L.P., disclosed that it beneficially owns 23,953,782 shares of
General Growth Properties, Inc.'s common stock, which represents
7.5% of the 317,324,875 outstanding shares of common stock as of
May 5, 2010.

Each of Pershing Square Capital and PS Management GP, LLC, has
shared power to vote or dispose of 23,953,782 shares of GGP's
common stock.

Pershing Square GP, LLC, beneficially owns 8,601,425 shares of
GGP's common stock and has shared power to vote or dispose of
8,601,425 shares of GGP's common stock.

William A. Ackman, managing member of the Pershing Square
Entities, beneficially owns 23,953,782 shares of GGP's common
stock and has shared power to vote and dispose of 23,953,782
shares of GGP's common stock.

As of August 4, 2010, the Pershing Square Entities beneficially
owned an aggregate of 23,953,782 shares of GGP's common stock,
representing about 7.5% of the outstanding shares of GGP's common
stock.  The Pershinq Square Entities also have additional
economic exposure to about 54,907,669 shares of GGP's common
stock under certain cash-settled total return swaps, bringing
their total aggregate economic exposure to 78,861,451 shares of
GGP's common stock.

As previously reported, Pershing Square entered into an Amended
and Restated Stock Purchase Agreement with GGP on August 2, 2010.
On the same date, Pershing Square executed a purchase agreement
with Blackstone Real Estate Partners VI L.P., a full-text of which
is accessible for free at:

             http://ResearchArchives.com/t/s?67e6

                     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, serve 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: New GM Has Added 6,900 to Payrolls
--------------------------------------------------
Tom Walsh, a business columnist at Detroit Free Press, said that
according to New General Motors Vice Chairman Steve Girsky, the
automaker has added or recalled 6,900 workers in the United States
since taking over the business from General Motors Corp. when it
succumbed to Chapter 11.  About, 1,100 of the jobs are in
Michigan, GM said.

According to Mr. Walsh, Mr. Girsky also said he expects that
"people will be encouraged" by GM's second-quarter financial
report, due out later this month.  GM posted an $865-million
profit for the first quarter ended March 31.

                       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 205,000 people in every major region of
the world and does business in some 157 countries.  GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling.  GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

General Motors Co. is 60.8% owned by the U.S. Government.  It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing.  The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co.  Old GM remains
subject to 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).  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.

The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims.  Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee.  Attorneys at Butzel Long serve as counsel regarding
supplier contract matters.  FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee.  Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee.  Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.

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: $104 Million in Claims Change Hands in July
-----------------------------------------------------------
The Clerk of the Bankruptcy Court recorded for the transfers of
these proofs of claims against General Motors Corp. and its
affiliates totaling $104,814,792 for month of July 2010:

  Transferor         Transferee          Claim No.   Claim Amount
  ---------          ----------          ---------   ------------
Frank William        Stone Lion            43321      $75,000,000
Pereira              Portfolio, L.P.

Brencourt Credit     Knighthead Master     49548        8,557,154
Opportunities        Fund, L.P.
Master, Ltd.

DTE Moraine, LLC     Contrarian Funds,      2106        6,142,731
                    LLC

DTE Pontiac          Contrarian Funds,     21349        5,153,121
North, LLC           LLC

Dale Earnhardt       The Seaport Group     46880        3,031,180
Inc.                 LLC

Dale Earnhardt       The Seaport Group     70343        3,031,180
Inc.                 LLC

Citigroup Global     SG Aurora Master      66312        1,826,707
Markets Inc.         Fund, L.P.

Goldman Sachs        General Foods         70212        1,600,000
Lending Partners     Credit Investors
LLC                  No. 2

Brencourt Credit     LMA SPC               49548          453,529
Opportunities
Master, Ltd.

Maumee Valley        Debt Recovery V,          -            9,707
Vending Co.          LP

Goddard              Debt Recovery V,          -            9,483
Contractors, Inc.    LP

The Court Clerk also recorded that three claims totaling
GBP6,685,315 changed hands during the month:

Citigroup Global     Knighthead Master     69552     GBP5,685,000
Markets Inc.         Fund, LP

Citigroup Global     SG Aurora Master      69552     GBP1,000,000
Markets Inc.         Fund, LP

Citigroup Global     LMA SPC               66312       GBP315,000
Markets Inc.

                       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 205,000 people in every major region of
the world and does business in some 157 countries.  GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling.  GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

General Motors Co. is 60.8% owned by the U.S. Government.  It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing.  The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co.  Old GM remains
subject to 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).  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.

The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims.  Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee.  Attorneys at Butzel Long serve as counsel regarding
supplier contract matters.  FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee.  Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee.  Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.

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: Citigroup Acquires $46MM Debt Convertible to Stock
------------------------------------------------------------------
Dow Jones Daily Bankruptcy Review reports that a Citigroup Inc.
affiliate acquired $46.1 million in unsecured claims against
General Motors' bankruptcy estate.  The debt is slated to convert
to a small portion of equity in the auto maker.

                       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 205,000 people in every major region of
the world and does business in some 157 countries.  GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling.  GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

General Motors Co. is 60.8% owned by the U.S. Government.  It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing.  The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co.  Old GM remains
subject to 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).  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.

The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims.  Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee.  Attorneys at Butzel Long serve as counsel regarding
supplier contract matters.  FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee.  Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee.  Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.

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: New GM Can Enforce Sale Order to Halt Lawsuits
--------------------------------------------------------------
U.S. Bankruptcy Judge Robert Gerber authorized General Motors,
LLC, or "New GM," to enforce the Sale Order entered on July 5,
2009, pursuant to Section 363 of the Bankruptcy Code, with respect
to certain lawsuits filed by accident plaintiffs in different
jurisdictions in the United States to which New GM is a defendant.
The Lawsuits assert product liability claims based on accidents or
incidents that occurred prior to the closing of the sale
transaction on July 10, 2009.

According to New GM, the Accident Plaintiffs refused to dismiss
the civil actions.  The Amended and Restated Master Sale and
Purchase Agreement, dated June 26, 2009, and the 363 Sale Order,
expressly provides, among others, that New GM would not assume any
claims with respect to Product Liabilities of the Debtors, except
those arising from accidents or other discrete incidents arising
from the operation of General Motors vehicles occurring subsequent
to the closing of the 363 Transaction on July 10, 2009.   The MSPA
and the 363 Sale Order provided that all other Product Liability
Claims would be retained by the Debtors and not transferred to New
GM under any circumstances whatsoever.

Judge Gerber directed these Accident Plaintiffs to immediately
dismiss New GM, with prejudice, from these Civil Actions:

  Accident Plaintiff         Lawsuit
  ------------------         -------
  Leslie Griffin             Civil Action styled Griffin v.
                             General Motors Co., pending at Clay
                             Circuit Court in Kentucky

  Brian Korotka              Civil Action styled Korotka v.
  and Sharon Korotka         Braeger Chevrolet, Inc. et al.,
                             pending at Milwaukee County Circuit
                             Court in Wisconsin

  RJ Burne Cadillac          Civil Action styled McDade v. RJ
                             Burne Cadillac v. General Motors
                             Corp. et al., pending at Lackawanna
                             County Court of Common Pleas,
                             Pennsylvania

The Accident Plaintiffs must file with the Clerk of this Court
evidence of the Dismissal, the Court said.

Judge Gerber also enjoined and estopped the Accident Plaintiffs
from any further prosecution of their Accident Plaintiffs' Civil
Actions as against New GM, or from otherwise pursuing any claim
asserted against New GM in any other action, forum or proceeding.

The Court further ruled that Accident Plaintiffs (i) Terrie
Sizemore and (ii) Shane J. Robley are enjoined and estopped from
taking or pursuing any further action against New GM in connection
with their Accident Plaintiff Civil Actions pending final
disposition of the appeal currently pending in the United States
Court of Appeals for the Second Circuit, styled Campbell v. Motors
Liquidation Co. et al.

Under certain conditions, New GM may ask the Court to require
Messrs.  Sizemore and Robley to dismiss New GM from the Sizemore
Civil Action and the Robley Civil Action, with prejudice, and to
continue to enjoin and estop them from any further prosecution of
the Actions against New GM.

                       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 205,000 people in every major region of
the world and does business in some 157 countries.  GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling.  GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

General Motors Co. is 60.8% owned by the U.S. Government.  It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing.  The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co.  Old GM remains
subject to 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).  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.

The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims.  Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee.  Attorneys at Butzel Long serve as counsel regarding
supplier contract matters.  FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee.  Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee.  Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.

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: Wins Nod of IAM & Teamsters Benefit Pacts
---------------------------------------------------------
Prior to the Petition Date, Motors Liquidation Co., formerly known
as General Motors Corporation, agreed to provide certain retiree
medical and life insurance benefits in various collectively
bargained agreements to certain labor unions, including the
International Association of Machinists and Aerospace Workers,
MLC, and the International Brotherhood of Teamsters.

Pursuant to a union settlement agreement, approved by Judge Robert
Gerber of the U.S. Bankruptcy Court for the Southern District of
New York in November 2009, Motors Liquidation and General Motors,
LLC or New GM agreed to provide certain ongoing medical benefits
at a reduced level to participating union retirees and surviving
spouses who are not eligible for Medicare benefits.  The companies
also agreed to provide certain life insurance benefits to
participating retirees, regardless of Medicare eligibility, at a
reduced cost.

The Union Settlement Agreement provided that, with respect to
those retirees who are eligible for Medicare, Motors Liquidation
will grant to the Participating Splinter Unions which agree to the
applicable terms of, and agree to participate in the Union
Settlement Agreement, a prepetition, general unsecured claim in
the Debtors' Chapter 11 cases in an amount equal to that Union's
"percentage share" of the aggregate amount of $1 billion.

The $1 billion Allowed Claim is in full settlement, satisfaction
and discharge of all claims that the Participating Splinter
Unions, as authorized representatives under Section 1114 and 1113
of the Bankruptcy Code, have or may have against the Debtors and
their affiliates arising out of collective bargaining agreements
relating to retiree healthcare benefits, life insurance benefits
and all other benefits and claims, Harvey R. Miller, Esq., at
Weil, Gotshal & Manges LLP, in New York, explains.

The Union Percentage Shares consist of:

  Union                                         Percentage Share
  -----                                         ----------------
  International Union of Electronic,
  Electrical, Salaried, Machine
  and Furniture Workers - Communications
  Workers of America                                79.39%

  United Steel Workers                              14.73%

  International Association
   of Machinists and Aerospace Workers               4.32%

  International Brotherhood
  of Electrical Workers                              0.42%

  Michigan Regional Council of Carpenters,
  Local 687 and Interior Systems, Local 1045         0.29%

  International Brotherhood of Painters
  & Allied Trades of the U.S. and Canada,
  Sign & Display Union Local 59                      0.09%

  International Brotherhood
  of Teamsters                                       0.25%

  International Brotherhood
  of Boilermakers                                    0.10%

  International Union
  of Operating Engineers                             0.18%

  United Catering Restaurant
  Bar & Hotel Workers                                0.23%

All of the Unions -- other than the IAMAW, the Teamsters and the
International Brotherhood of Boilermakers -- had agreed to be
Participating Splinter Unions and to participate in the Union
Settlement Agreement.  The Union Settlement Agreement contemplates
that the Unions which were not parties to the Union Settlement
Agreement may agree to participate in the Agreement and their
Percentage Share of the Allowed Claim at any point in time prior
to the Debtors making any distributions to prepetition unsecured
creditors pursuant to a confirmed Chapter 11 plan, Mr. Miller
relates.

Accordingly, the Debtors sought and obtained approval from U.S.
Bankruptcy Judge Robert Gerber of:

  (1) a supplemental agreement to the existing Newco-IAMAW
      Settlement Agreement regarding retiree health care and
      life insurance between the IAMAW and General Motors, LLC;
      and

  (2) a settlement agreement regarding retiree health care and
      life insurance by and among the Teamsters Local 743, MLC,
      and General Motors, LLC.

The IAMAW and the Teamsters, as additional participating unions,
have agreed to become Participating Splinter Unions and to
participate in their Percentage Shares of the Allowed Claim, Mr.
Miller tells the Court.

Pursuant to Section 1114 of the Bankruptcy Code, Motors
Liquidation is continuing to pay certain of the Retiree Benefit
Obligations, subject to its rights to modify or terminate those
obligations.

In connection with the payment of those Benefits, Motors
Liquidation has also has reserved all of its rights under the
Settlement Agreement in the class action entitled IUE-CWA et al.
v. General Motors Corp., litigated in the Eastern District of
Michigan.  Specifically, the Debtor reserves its right in its
position that the Retiree Benefit Obligations are vested only
through September 14, 2011, and thereafter could be terminated
unilaterally, without regard to the provisions of Section 1114 of
the Bankruptcy Code, Mr. Miller clarifies.

Mr. Miller avers that the Settlement Agreements resolve issues
relating to the covered retirees' employment relationship with
Motors Liquidation and provides for full releases of all related
claims.  Accordingly, the Agreements facilitate the orderly and
expeditious administration of the Chapter 11 cases, he says.

                       About General Motors

With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers.  GM employs 205,000 people in every major region of
the world and does business in some 157 countries.  GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling.  GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

General Motors Co. is 60.8% owned by the U.S. Government.  It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing.  The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co.  Old GM remains
subject to 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).  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.

The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims.  Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee.  Attorneys at Butzel Long serve as counsel regarding
supplier contract matters.  FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee.  Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee.  Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.

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).


GOODYEAR TIRE: Moody's Assigns 'B1' Rating on $750 Mil. Notes
-------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to the Goodyear
Tire & Rubber Company's new $750 million guaranteed senior
unsecured notes.  In a related action Moody's affirmed Goodyear's
other ratings, including: the Corporate Family and Probability of
Default ratings at Ba3; existing senior secured debt, guaranteed
senior debt, and unguaranteed senior debt at Baa3, B1, and B2,
respectively.  The Speculative Grade Liquidity Rating was raised
to SGL-2 from SGL-3.  The rating outlook was changed to stable
from negative.

The net proceeds from the $750 million of new guaranteed senior
unsecured notes, together with cash and cash equivalents and
availability under the senior secured credit facilities, will be
used to: redeem the $388 million 7.857% Notes due August 15, 2011,
redeem the $325 million 8.625% Senior Notes due December 1, 2011,
pay certain make whole amounts and redemption premiums under the
respective notes and related fees and expenses, and for general
corporate purposes.

Goodyear's stable rating outlook reflects Moody's expectation that
global tire volumes will continue to benefit from a recovery in
2010 from 2009 levels driven by higher replacement and original
equipment tire demand.  In addition Moody's expect Goodyear's
operating performance over the near-term to continue to benefit
from restructuring actions taken in 2009, improving product mix,
and recent pricing actions.  Recent monthly passenger miles driven
in the U.S. have demonstrated year-over-year improvement and
appear to be on a path to surpass 2009 comparable figures.
Further, higher levels of passenger car original equipment tire
demand in North America, Asia, and South America, will benefit
fixed cost absorption across Goodyear's business.  As a result,
improved year-over-year tire shipments experienced by Goodyear in
the first half of 2010 are expected to be sustained over the near-
term.  While Moody's continues to expect Goodyear's credit metrics
over the next two quarters will be negatively affected by higher
raw material costs, the company's lower than expected cash burn
for the first half of 2010 has positioned the company with a good
liquidity profile to manage through the second half of 2010 and
into 2011.  Goodyear's credit metrics should improve to levels
consistent with the assigned rating over the intermediate term.

The stable outlook also incorporates a successful offering of the
new $750 million senior unsecured notes which will refinance debt
maturities coming due in 2011.  With the 2011 maturities
addressed, Moody's expects Goodyear's good liquidity profile to
provide operating flexibility while managing likely raw material
cost pressures over the intermediate term.  Goodyear's
demonstrated ability to manage through a difficult operating
environment has supported access to the capital markets in late
2009 and early 2010.

The affirmation of Goodyear's Ba3 Corporate Family Rating reflects
the company's competitive position within the global tire
industry.  The company's scale, position as one of three global
automotive tire manufacturers, and global diversification with
significant brand name presence continue to be a strength.  For
the LTM period ending June 30, 2010, Goodyear's EBIT/Interest
(including Moody's standard adjustments) was approximately 1.8x
and Free Cash Flow/Debt was approximately 10.6%.  These metrics
reflect the company's progress in achieving cost savings and the
lower raw material costs in 2009, and recovering industry volumes
in the first half to 2010.  Yet, Moody's expects Goodyear's credit
metrics in the second half of 2010 will be pressured by higher raw
material cost and a lagging recovery in Europe.  Pricing actions
initiated by the company should partially mitigate the impact of
rising raw material cost.

The Speculative Grade Liquidity upgrade to SGL-2 from SGL-3
incorporates a lower than expected cash burn in the first half of
2010 which better positions the company to maintain a good
liquidity profile over the next twelve months.  In addition, the
announced unsecured note offering is anticipated to address
Goodyear's 2011 debt maturities.  Global cash on hand at June 30,
2010, was $1.7 billion which includes about $157 million in
Venezuela.  In addition the company maintained borrowing base
availability of $931 million under the $1.5 billion U.S. revolving
credit after LCs of $485 million.  The EUR505 million revolving
credit was undrawn as of June 30, 2010.  The company's cash and
revolver availability are expected to be sufficient to preserve
operating flexibility over the near-term.  The securitization
facility was fully utilized, with EUR328 million outstanding.
Moody's expects higher raw material pricing to pressure free cash
flow generation in the second half of 2010 resulting in the
potential for a more modest reliance on the revolving credit
facilities over the near-term.  There is a coverage ratio covenant
test under the $1.5 billion revolver which comes into effect only
when availability under the revolver, plus cash balances, goes
below $150 million, which is unlikely to be activated in the near-
term.  Goodyear has the capacity under the indentures for its
unsecured obligations to pledge additional assets (subject to the
terms, limitations and exclusions provided in the respective
indentures).  Should the permissible basket of liens exceed the
prescribed amount, Goodyear would be required to ratably secure
the unsecured notes and bonds issued under the indentures.

Upward rating migration is unlikely over the intermediate term as
Goodyear's credit metrics are expected to be at the low end of the
Ba3 rating range.  The company's credit metrics are expected to
reflect a gradual recovering global economy somewhat offset by raw
material cost pressure.  However, a positive rating outlook or
rating change could result from a de-leveraging of Goodyear's
balance sheet, or if global economic conditions improve
sufficiently to positively impact demand in the company's global
markets resulting in EBIT/interest being sustained above 2.0
times, and debt/EBITDA falling below 4 times while maintaining
adequate liquidity.

A lower rating or outlook could develop if replacement tire demand
in North America and abroad does not rebound as expected over the
intermediate-term with an inability by Goodyear to offset this
pressure through additional restructuring savings.  Ratings
pressure could also arise from the inability of the company to
sufficiently offset increases in raw material costs, or a
substantial decrease in its liquidity profile.

Ratings assigned:

* B1 (LGD4, 65%), $750 million of guaranteed senior unsecured
  notes;

* (P)B1, guaranteed senior unsecured shelf

Ratings raised:

* Speculative Grade Liquidity rating, to SGL-2 from SGL-3

Ratings affirmed:

Goodyear Tire & Rubber Company

* Corporate Family Rating, Ba3;

* Probability of Default Rating, Ba3;

* $1.5 billion first lien revolving credit facility due 2013, Baa3
  (LGD-1, 6%);

* $1.2 billion second lien term loan due 2014, Ba1 (LGD-2, 17%);

* 9% senior unsecured notes due 2015, B1 (LGD-4, 65%);

* 10.5% discounted unsecured notes due 2016, B1 (LGD-4, 65%);

* 8 5/8 % senior unsecured notes due 2011, B1 (LGD-4, 65%) --
  rating will be withdrawn upon repayment;

* 8.75% senior unsecured guaranteed notes due 2020, B1 (LGD-4,
  65%);

* 7 6/7% senior notes due 2011, B2 (LGD-6, 96%) -- rating will be
  withdrawn upon repayment;

* 7% senior notes due 2028, B2 (LGD-6, 96%)

Goodyear Dunlop Tires Europe B.V. and certain subsidiaries

* EUR505 million of first lien revolving credit facilities due
  2012, Baa3 (LGD-1, 6%)

The last rating action for Goodyear was on February 22, 2010, when
ratings were assigned to new unsecured notes and the Corporate
Family Rating was affirmed.

Goodyear Tire & Rubber Company, based in Akron, OH, is one of the
world's largest tire companies with 57 manufacturing facilities in
23 countries around the world.  Revenues in 2009 were
approximately $16.3 billion.


GOODYEAR TIRE: S&P Assigns 'B+' Rating on $750 Mil. Senior Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has assigned its 'B+'
issue-level rating to The Goodyear Tire & Rubber Co.'s proposed
issuance of $750 million in senior unsecured notes due 2020.  At
the same time, S&P assigned its recovery rating of '5', indicating
S&P's expectation that lenders would receive modest recovery (10%
to 30%) in the event of a payment default.

Proceeds of this offering, together with current cash and unused
availability under existing credit facilities, will be used to
repay the company's outstanding balance of $325 million, 8.625%
senior notes due Dec. 1, 2011, at 104.313% of the principal
amount, plus accrued and unpaid interest.  Moreover, Goodyear
intends to repay about $388 million in principal amount of its
7.857% notes outstanding due Aug. 15, 2011, at a make-whole
amount, plus accrued and unpaid interest.  The company intends to
use any remaining proceeds for general corporate purposes,
including repaying other debt.

The proposed notes will be senior unsecured obligations of
Goodyear Tire and the guarantors, ranking equal in right of
payment with other unsubordinated debt.  The proposed notes will
also be effectively subordinated to all existing and future
secured debt of the company and subsidiary guarantors to the
extent of the collateral securing the debt.

The rating on Akron, Ohio-based Goodyear reflects the company's
high leverage and the substantial competition in both the
replacement and original equipment tire markets.

                           Ratings List

                 Goodyear Tire & Rubber Co. (The)

     Corporate credit rating                 BB-/Negative/--

                            New Rating

                 Goodyear Tire & Rubber Co. (The)

                         Senior Unsecured

            US$750 mil. sr. nts due 08/15/2020     B+
             Recovery Rating                       5


GREENSHIFT CORP: 1-for-10 Reverse Stock Split Takes Effect
----------------------------------------------------------
GreenShift Corporation said in a regulatory filing that it
submitted to the Secretary of State of the State of Delaware a
certificate of amendment to the Company's certificate of
incorporation to give effect to a 1-for-10 reverse stock split
effective at close of business on Aug. 2, 2010.  The Reverse Split
was to take effect at the open of business on Aug. 10, 2010,
according to the filing.  The Company's stock symbol will remain
the same but will have a "D" appended to the symbol and will be
listed with the symbol "GERSD" for 30 days.

                    About Greenshift Corporation

Headquartered in New York, GreenShift Corporation develops and
commercializes clean technologies designed to integrate into and
leverage established production and distribution infrastructure to
address the financial and environmental needs of its clients by
decreasing raw material needs, facilitating co-product reuse, and
reducing waste and emissions.


The Company's balance sheet at March 31, 2010, showed
$19.2 million in total assets and $42.6 million in total
liabilities, for a stockholders' deficit of $65.6 million.

Rosenberg Rich Baker Berman & Company expressed substantial doubt
about the Company's ability to continue as a going concern
following the Company's 2009 results.  The independent auditors
noted that the Company has suffered losses from operations and has
a working capital deficiency as of December 31, 2009.


GREYSTONE HEALTHCARE: Case Summary & 7 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: GreyStone Healthcare Staffing of NY, LLC
        6175 Sunrise Highway
        Massapequa, NY 11758

Bankruptcy Case No.: 10-76215

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Eastern District of New York (Central Islip)

Judge: Alan S. Trust

Debtor's Counsel: Kenneth Reynolds, Esq.
                  MCBREEN & KOPKO
                  500 North Broadway
                  Jericho, NY 11753
                  Tel: (516) 364-1095
                  Fax: (516) 364-0612
                  E-mail: kreynolds@mklawnyc.com

Scheduled Assets: $168,550

Scheduled Debts: $1,324,293

A list of the Company's seven largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nyeb10-76215.pdf

The petition was signed by Philip Missirlian, CEO.

Debtor-affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
GreyStone Healthcare Staffing
of NY, LLC                             09-71719    03/16/09


GREYSTONE STAFFING: Case Summary & 16 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: GreyStone Staffing, Inc.
        6175 Sunrise Highway
        Massapequa, NY 11758

Bankruptcy Case No.: 10-76213

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Eastern District of New York (Central Islip)

Judge: Robert E. Grossman

Debtor's Counsel: Kenneth Reynolds, Esq.
                  MCBREEN & KOPKO
                  500 North Broadway
                  Jericho, NY 11753
                  Tel: (516) 364-1095
                  Fax: (516) 364-0612
                  E-mail: kreynolds@mklawnyc.com

Scheduled Assets: $2,817,370

Scheduled Debts: $5,175,540

A list of the Company's 16 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nyeb10-76213.pdf

The petition was signed by Philip Missirlian, CEO.

Debtor-affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
GreyStone Staffing, Inc.               09-71715    03/16/09


HALOZYME THERAPEUTICS: June 30 Balance Sheet Upside-Down by $14MM
-----------------------------------------------------------------
Halozyme Therapeutics, Inc., had total assets of $51,485,851
against total current liabilities of $11,061,745, deferred
revenue, net of current portion of $53,857,056, deferred rent, net
of current portion, of $684,315, and stockholders' deficit of
$14,117,265 as of June 30, 2010.

The Company reported a net loss of $12,150,923 for the three
months ended June 30, 2010, from a net loss of $17,060,025 for the
same period in 2009.  The Company posted a net loss of $23,938,400
for the six months ended June 30, 2010, from a net loss of
$31,785,389 for the same period a year ago.

Total revenues were $3,213,353 for the second quarter of 2010,
from $1,426,156 for the second quarter 2009.  Total revenues were
$6,655,084 for the first half of 2010, from $4,198,527 for the
first half of 2009.

A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?6889

Based in San Diego, Calif. Halozyme Therapeutics, Inc., is a
biopharmaceutical company dedicated to the development and
commercialization of products targeting the extracellular matrix
for the endocrinology, oncology, dermatology and drug delivery
markets.  The Company's existing products and products under
development are based primarily on intellectual property covering
the family of human enzymes known as hyaluronidases.


IGI LABORATORIES: Granted NYSE Amex Listing Extension
-----------------------------------------------------
IGI Laboratories, Inc. received notice from the NYSE Amex staff
indicating that the company is below certain of the Exchange's
continued listing standards due to losses in five of its most
recent fiscal years with equity below $6 million, as set forth in
Section 1003(a) (iii) of the NYSE Amex Company Guide.  The Company
was afforded the opportunity to submit a plan of compliance to the
exchange and on June 24, 2010 presented its plan to the Exchange.
On August 6, 2010 the Exchange notified IGI that it accepted the
Company's plan of compliance and granted IGI an extension until
February 25, 2011 to regain compliance with the continued listing
standards.  IGI will be subject to periodic review by Exchange
Staff during the extension period.  Failure to make progress
consistent with the plan or to regain compliance with the
continued listing standards by the end of the extension period
could result in IGI being delisted from the NYSE AMEX LLC.

                   About IGI Laboratories

IGI Laboratories is focused in the development and
commercialization of products for the dermatology market.


ISTA PHARMA: June 30 Balance Sheet Upside-Down by $49.4MM
---------------------------------------------------------
ISTA Pharmaceuticals, Inc., had total assets of $92,433,000, total
liabilities of $141,902,000, and stockholders' deficit of
$49,469,000 as of June 30, 2010.

The Company posted net income of $26,167,000 for the three months
ended June 30, 2010, from a net loss of $36,646,000 for the same
period in 2009.  The Company recorded net income of $26,643,000
for the six months ended June 30, 2010, from a net loss of
$56,257,000 for the same period in 2009.

Total revenues were $35,068,000 for the three months ended June
30, 2010, from $23,953,000 for the same period a year ago.  Total
revenues were $63,373,000 for the six months ended June 30, 2010,
from $44,367,000 for the same period in 2009.

A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?688b

Based in Irvine, California, ISTA Pharmaceuticals, Inc., is a
rapidly growing commercial stage, multi-specialty pharmaceutical
company developing, marketing and selling its own products in the
U.S. and Puerto Rico.  It has the fourth largest branded
prescription eye care business and an emerging allergy drug
franchise.


INNOVATIVE COMPANIES: Plan Offers 3% Recovery for Unsecureds
------------------------------------------------------------
The Innovative Companies LLC, now known as OLD TIC LLC, and its
affiliates filed with the U.S. Bankruptcy Court for the Eastern
District of New York a proposed Plan of Reorganization and an
explanatory Disclosure Statement.

The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.

Under the Plan, utilizing cash on hand well as the proceeds of the
various sales and other liquidations, the Debtors will within
seven business days of the effective date effectuate these
transfers in order to provide for implementation and consummation
of the Plan:

   a) fund the initial payment of $375,000 pursuant to the
      Unsecured Creditor Distribution Agreement into the Unsecured
      Creditor Distribution Account to provide for the
      Distributions to the Unsecured Creditors;

   b) fund a payment in the amount of $190,000 representing the
      Plan Administrator Initial Account Funding into the Plan
      Administrator Operating Fund;

   c) transfer an amount into the Plan Administrator Reserve
      Account equal to the (i) sum of estimated Allowed
      Administrative Expense Claims; (ii) $250,000 to fund the
      Priority Claim Reserve to address the estimated Allowed
      Priority Claims; (iii) well as any payments that may become
      due from the Office of the United States Trustee; and (iv)
      an amount sufficient to cover any Secured Equipment Finance
      Claims which have not yet been Allowed;

   d) transfer any amounts to be paid to Allowed Secured Equipment
      Finance Claims pursuant to Article V of the Plan; and

   e) remit all remaining funds to Woodside on account of its
      Secured Claim.

After the foregoing transfers have been effectuated, the Plan
Administrator, on behalf of the liquidating estates, will make
payments due Claimants.

Holders of claims against, and interests in, OTIC will be treated
as follows:

      Class 1.  Secured Claims - on the effective date, each
         holder of the allowed claim will be paid until the time
         as claims is paid in full.

      Class 2.  Holders of Citibank Claim will receive no
         distribution.

      Class 3.  Holders of secured equipment finance claims will
         either have all legal and equitable rights left unaltered
         or will retain the collateral securing the claim.

      Class 4.  Holders of priority claims will receive cash equal
         to the amount of the allowed claim.  The estimated
         percentage recovery for this class is 100%.

      Class 5.  General unsecured creditors will share the cash
         deposited into the unsecured creditor distribution
         account, including a distribution soon as practicable
         after the effective date.  The estimated percentage
         recovery for this class is 3%.

      Class 6.  No property will be distributed to or retained by
         the holders of allowed equity interests on account of the
         interests.

A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/InnovativeCompanies_DS.pdf

The Debtors are represented by:

     Leslie A. Berkoff, Esq.
     Robert S. Cohen, Esq.
     Moritt Hock Hamroff & Horowitz LLP
     400 Garden City Plaza
     Garden City, NY 11530
     Tel: (516) 873-2000

                 About The Innovative Companies LLC

Headquartered in Hauppauge, New York, The Innovative Companies LLC
and its affiliates filed for Chapter 11 protection on April 17,
2009 (Bankr. E.D.N.Y. Lead Case No. 09-72669).  Leslie A. Berkoff,
Esq., at Moritt Hock Hamroff Horowitz LLP, represents the Debtors
in their restructuring efforts.  David M. Banker, Esq., at
Lowenstein Sandler PC, serves as counsel to the Official Committee
of Unsecured Creditors.  In its petition, the Company estimated
between $10 million and $50 million each in assets and debts.


INSITE VISION: June 30 Balance Sheet Upside-Down by $38.2MM
-----------------------------------------------------------
InSite Vision Incorporated said total assets were $26.925 million
against accounts payable and accrued expenses of $1.716 million,
accrued interest of $3.391 million, deferred revenue of
$75 million, long-term secured notes payable of $60 million, and
stockholders' deficit of $38.257 million as of June 30, 2010.

Revenues in the second quarter ended June 30, 2010, were
$2.5 million compared to $1.9 million for the second quarter of
2009.

Net loss for the quarter ended June 30, 2010 was $2.5 million, or
$0.03 per share, compared to a net loss of $3.7 million, or $0.04
per share, in the same quarter of 2009.

InSite Vision had cash, cash equivalents and short-term
investments of $20.2 million at June 30, 2010.

A full-text copy of the Company's earnings release is available at
no charge at http://ResearchArchives.com/t/s?688d

Based in Alameda, California, InSite Vision Incorporated (OTCBB:
INSV) -- http://www.insitevision.com/-- is committed to advancing
new and superior ophthalmologic products for unmet eye care needs.
The company's product portfolio utilizes InSite Vision's proven
DuraSite(R) bioadhesive polymer core technology, an platform that
extends the duration of drug retention on the surface of the eye,
thereby reducing frequency of treatment and improving the efficacy
of topically delivered drugs.


JOHNSON MEMORIAL: Judge Confirms Reorganization Plan
----------------------------------------------------
American Bankruptcy Institute that bankruptcy Judge Albert S.
Dabrowski confirmed the nursing home and hospital operator Johnson
Memorial Corp.'s reorganization plan.

Stafford Springs, Connecticut-based Johnson Memorial Hospital,
Inc., filed for Chapter 11 bankruptcy protection on November 4,
2008 (Bankr. D. Conn. Case No. 08-22187) after its affiliates,
Johnson Memorial Corporation Connecticut and The Johnson Evergreen
Corp. Connecticut, filed for bankruptcy protection on October 31,
2008.  Eric A. Henzy, Esq., at Reid and Riege, P.C., assists
Johnson Memorial Hospital in its restructuring efforts.  Johnson
Memorial Hospital estimated up to $50,000 in assets and
$10,000,000 to $50,000,000 in debts in its Chapter 11 petition.


KDMJ REALTY: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: KDMJ Realty, Inc.
        556 West 22nd Street
        New York, NY 10011

Bankruptcy Case No.: 10-14268

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Judge: Allan L. Gropper

Debtor's Counsel: Richard Engman, Esq.
                  JONES DAY
                  222 E. 41st St.
                  New York, NY 10017
                  Tel: (212) 326-3939
                  Fax: (212) 755-7306
                  E-mail: rengman@jonesday.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $10,000,001 to $50,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Dorothea Keeser, president of KDMJ
Realty, Inc.

Debtor-affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
556 Holding LLC                        10-14267    8/06/10
  Assets: $10,000,001 to $50,000,000
  Debts: $10,000,001 to $50,000,000


LBI MEDIA: Moody's Changes Outlook to Stable, Keeps 'Caa1' Rating
-----------------------------------------------------------------
Moody's Investors Service changed the rating outlook for LBI
Media, Inc., to stable from negative based on Moody's expectation
that leverage will decline over the next year and LBI will
generate positive free cash flow in 2011, supported primarily by
growth in the television segment.  Moody's also affirmed LBI's
Caa1 corporate family and probability of default ratings, as well
as its B1 senior secured bank debt and Caa2 senior subordinated
bond ratings, as outlined below.

Strong Nielsen ratings and expanded coverage for LBI's Estrella TV
network, combined with continued favorable growth trends in the
U.S. Hispanic population and advertising targeting this
demographic, will likely drive revenue and cash flow growth and
enhance the value of LBI, in Moody's opinion.

LBI's high leverage (approximately 12 times debt-to-EBITDA for the
trailing twelve months ended March 31, 2010) and negative free
cash flow pose challenges for managing a business reliant on
cyclical advertising spend, especially given the March 2012
maturity of LBI's bank debt, and the Caa1 corporate family rating
incorporates these risks.  The later maturity of a meaningful
amount of junior capital (approximately $275 million of bonds
junior to approximately $160 million of bank debt as of March 31,
2010) improves LBI's prospects for access to the loan market, but
the cost of debt will likely rise significantly with a
refinancing.  LBI's modest scale and its geographic concentration
also constrain the company's ratings.  Favorable growth prospects
driven by LBI's strong position in its target market of U.S.
Hispanics and good short term liquidity from its $150 million
revolver support ratings.  EBITDA margins have eroded somewhat due
to revenue weakness and investments in programming, and Moody's
expect continued pressure from further investment and incremental
costs related to Nielsen ratings, but LBI's margins remain in line
with or above many broadcast peers and very high relative to other
Caa1 rated issuers.

The stable rating outlook assumes EBITDA growth will enable LBI to
generate positive free cash flow and reduce leverage to less than
10 times debt-to-EBITDA by the end of 2011.

LBI Media, Inc.

  -- Outlook, Changed to Stable From Negative

  -- Affirmed Caa1 Corporate Family Rating

  -- Affirmed Caa1 Probability of Default Rating

  -- Affirmed Caa2 rating on Senior Subordinated Bonds, LGD5, 74%

  -- Affirmed B1 rating on Senior Secured Bank Credit Facility,
     LGD2, 22%

Moody's most recent rating action concerning LBI occurred May 1,
2009.  At that time, Moody's lowered the corporate family rating
to Caa1 from B2.

A Spanish language broadcasting company headquartered in Burbank,
California, LBI Media Holdings, Inc., owns and operates 7
television stations and 21 radio stations in Los Angeles, New
York, Houston, Dallas-Fort Worth, Phoenix, San Diego, and Salt
Lake City.  The company also has affiliation agreements with 23
television stations.  Its annual revenue for the twelve months
ended March 31, 2010, was approximately $105 million.


LEHMAN BROTHERS: Christie's to Auction Artworks on September 29
---------------------------------------------------------------
Christie's announce the auction of Lehman Brothers: Artwork
and Ephemera which will take place at South Kensington on
September 29, 2010, offering artworks and selected items of
interest which once adorned the walls and offices of the British
and European arms of the former banking powerhouse Lehman
Brothers.

This auction is taking place under the direction of the joint
administrators of Lehman Brothers Limited and of Lehmans Brothers
International (Europe) who are partners at PricewaterhouseCoopers
LLP.  The Joint Administrators were appointed on September 15,
2008, to wind down LBL and LBIE in as orderly a way as possible,
and to achieve the maximum value from the companies for the return
to creditors.  This auction forms part of the Administrators'
strategy in realizing the assets held in the companies for the
maximum value.

From works of art by Lucian Freud and Gary Hume to beautiful
porcelain objects d'art and the sign which adorned the company's
offices in Canary Wharf, London, the auction will offer a diverse
selection of items and works of art including Post-War and
Contemporary pieces, maritime pictures and sporting works of art.
Individual estimates start at GBP250 with all works estimated
under GBP1,000 being offered without reserve.  The collection
being offered at Christies South Kensington on September 29, 2010,
is expected to realize in the region of GBP2 million.  New York
Mercantile Exchange, 1991, by Andreas Gursky will be offered from
the same collection at the Post-War and Contemporary Evening
Auction at Christie's, King Street, on October 14, 2010
(estimate:GBP100,000 to GBP150,000).

Barry Gilbertson, partner at PricewaterhouseCoopers LLP,
responsible for releasing value from the real estate and other
fixed assets, commented, "The brothers Lehman collected artwork
which adorned their offices since the 19th century.  Over the
subsequent years, of course, as the business expanded and the
leadership changed, so did their corporate taste in art.  We are
excited to be working with Christies to offer the art collection
owned by the companies in Administration.  The auction date was
selected to approximately coincide with the second anniversary of
the Administrations."

"We think that there are many people around the world who would
like to acquire some art with a Lehman connection, and we have
therefore timed the sale to ensure that potential buyers can view
and bid efficiently online.  As with the Enron auction, some seven
years ago, when we had bids from 43 countries, we expect internet
bidding to be fast and furious -- having the capacity to cope with
a large volume of global bidding was one of the key reasons why we
chose Christie's."

Benjamin Clark, Director of Corporate Collections & Museum
Services at Christie's London: "Christie's is pleased to have been
selected by the Administrators from PricewaterhouseCoopers LLP as
their partner in offering and releasing the maximum possible value
from the Lehman Brothers property.  The international Corporate
Collection team at Christie's guides corporate clients on an
international, national, and regional level through all aspects of
collecting, from valuations, insurance and curatorial advice to
acquisitions and sales.  We look forward to presenting what is a
fascinating glimpse into the history of what was a giant of the
financial world, and to welcoming both new and established
international collectors to the auction in London in September."

Selected contents of the collection:

  -- Modern art includes Madonna by Gary Hume (b.1962) (estimate:
     GBP70,000 to GBP100,000) (illustrated left); Head of Bruce
     Bernard, a signed etching by Lucian Freud (B. 1922)
     (estimate: GBP8,000 to GBP12,000) and The White Hyacinth by
     Mary Fedden (b.1915) (estimate: GBP7,000 to GBP10,000), as
     well as works by Wim Wenders and Sean Scully.

  -- Old masters include The ship Frankfield off Table Bay by
     Samuel Walters (1811-1882) (estimate: GBP15,000 to
     GBP25,000); The Mare Dolly with jockey; a race beyond by the
     celebrated sporting artist Francis Sartorius (1734-1804)
     (estimate: GBP7,000 to GBP10,000); and A frigate in 3
     positions off the Dover Coast by Thomas Luny (1759-1837)
     (estimate: GBP10,000 to GBP15,000).

  -- Other assorted highlights include the sign which adorned the
     company's offices in Canary Wharf (estimate: GBP2,000 to
     GBP3,000) and the commemorative plaque from those offices
     from their opening by the Rt. Hon. Gordon Brown M.P. in 2004
     as he served as Chancellor of the Exchequer
     (estimate:GBP1,000 to GBP1,500); as well as tea caddies,
     cigar boxes, books and Chinese ceramics.

  -- New York Mercantile Exchange, 1991, by Andreas Gursky will be
     offered from this collection at the Post-War and Contemporary
     Evening Auction at Christie's, King Street, on October 14,
     2010 (estimate: GBP100,000 to GBP150,000).

                      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)


LENDINGCLUB CORP: June 30 Balance Sheet Upside-Down by $28.7MM
--------------------------------------------------------------
LendingClub Corporation reported total assets of $108,930,926,
total liabilities of $84,797,402, preferred stock of $52,850,391,
and stockholder's deficit of $28,716,867 as of June 30, 2010.

LendingClub posted a net loss of $2,525,235 for the fiscal first
quarter ended June 30, 2010, from a net loss of $2,860,947 for the
same period in 2009.

LendingClub has incurred operating losses since our inception.
LendingClub noted in its Form 10-Q report for June that for the
three months ended June 30, 2010 and 2009, it had negative cash
flows from operations of $2,476,212 and $2,225,148, respectively.
Additionally, it has an accumulated deficit of $32,679,744 as of
June 30, 2010.

"Since our inception, we have financed our operations through debt
and equity financing from various sources.  We are dependent upon
raising additional capital or seeking additional debt financing to
fund our current operating plans.  Failure to obtain sufficient
debt and equity financing and, ultimately, to achieve profitable
operations and positive cash flows from operations could adversely
affect our ability to achieve our business objectives and continue
as a going concern.  Further, there can be no assurance as to the
availability or terms upon which any required financing and
capital might be available, if at all," the Company said.

During the three months ended June 30, 2010, LendingClub issued
15,621,609 shares of Series C convertible preferred stock for
aggregate cash consideration of $24,489,996.  In connection with
its private placement of Series C convertible preferred stock,
LendingClub incurred transaction expenses, recorded as an offset
to gross proceeds, of $102,051.

A full-text copy of the Company's Form 10-Q report is available at
no charge at http://ResearchArchives.com/t/s?6886

Based in Redwood City, California, LendingClub Corporation is an
online financial platform that enables its borrower members to
borrow money and investors to purchase Member Payment Dependent
Notes, the proceeds of which fund loans made to individual
borrower members.


LEXINGTON PRECISION: Aurora Capital Buys Majority Ownership
-----------------------------------------------------------
An affiliate of Aurora Capital Group has successfully reorganized
and acquired a majority ownership position in Lexington Precision
Corporation.

Lexington manufactures tight-tolerance rubber components for use
in medical, automotive, and industrial applications. Medical
products include injection sites for intravenous feeding systems,
plunger tips for syringes, and seals for minimally-invasive
surgical instruments.  Automotive products include seals for
wiring systems and insulators for original-equipment and
aftermarket ignition-wire-sets.  The Company's cutting-edge
tooling technology and automated production processes support
high-quality, low-cost manufacturing.

Steve Martinez, Managing Director of Aurora Resurgence, commented,
"We are pleased to partner with Lexington's management team to
capitalize on the Company's exceptional engineering, manufacturing
and materials-formulation capabilities."

Michael Lubin, Chief Executive Officer of Lexington, noted, "For
many years, Lexington has been a company with great competitive
strengths, but with an overly burdensome level of debt.  The
Aurora team recognized this and helped the Company utilize the
reorganization process to create a strong balance sheet and
substantial liquidity.  We are now looking forward to working with
Aurora to expand our business as we progress forward."

Lexington emerged from Chapter 11 of the United States Bankruptcy
Code on July 30, 2010.  As part of Lexington's successful
reorganization effort, Aurora purchased public debt of the Company
and then converted those securities into equity. Aurora also made
a direct cash investment in Lexington to help fund the Company's
reorganization plan.  Aurora is now the majority owner of the
newly reorganized company.

                      About Aurora Capital

Aurora Capital Group is a Los Angeles-based private equity firm
managing over $2.0 billion with two distinct investment
strategies.  Aurora Resurgence invests in debt and equity
securities of middle-market companies and targets complex
situations that are created by operational or financial challenges
either within a company or a broader industry.  Aurora Equity
focuses principally on control-investments in middle-market
industrial, manufacturing and selected service oriented
businesses.

                     About Lexington Precision

Headquartered in New York, Lexington Precision Corp. --
http://www.lexingtonprecision.com/-- manufactures tight-tolerance
rubber and metal components for use in medical, automotive, and
industrial applications.  As of February 29, 2008, the Company
employed about 651 regular and 22 temporary personnel.

The Company and its affiliate, Lexington Rubber Group Inc., filed
for Chapter 11 protection on April 1, 2008 (Bankr. S.D.N.Y. Lead
Case No.08-11153).  Christopher J. Marcus, Esq., and Victoria
Vron, Esq., at Weil, Gotshal & Manges, represent the Debtors in
their restructuring efforts.  The Debtors selected Epiq Systems -
Bankruptcy Solutions LLC as claims agent.  The U.S. Trustee for
Region 2 appointed six creditors to serve on an official committee
of unsecured creditors.  Paul N. Silverstein, Esq., and Jonathan
Levine, Esq., at Andrews Kurth LLP, represent the Committee as
counsel.

On July 21, 2010, the Bankruptcy Court confirmed the Debtors'
Fourth Amended Chapter 11 Plan, dated May 26, 2010.  The effective
date of the Plan occurred on July 30, 2010.


MARK SCHWARTZ: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Mark Schwartz
        34 West Azalea Lane
        Mt. Laurel, NJ 08054

Bankruptcy Case No.: 10-34324

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       District of New Jersey (Camden)

Judge: Judith H. Wizmur

Debtor's Counsel: Jeffrey B. Saper, Esq.
                  LAW OFFICES OF JEFFREY B. SAPER, PC
                  The Lexington Building
                  180 Tuckerton Road
                  Medford, NJ 08055
                  Tel: (856) 985-9770
                  E-mail: jbsaperlaw@comcast.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.


MAUI LAND: Stephen Case Owns 62.8% of Common Stock
--------------------------------------------------
Stephen M. Case disclosed in a regulatory filing Wednesday that as
of August 2, 2010, he may be deemed to beneficially own
11,825,065, representing 62.8% of Maui Land & Pineapple Company,
Inc.'s common stock.  Mr. Case has the sole power to vote and
dispose of the 11,814,012 shares of Maui Land's common stock held
by the Stephen M. Case Revocable Trust and the 11,053 shares of
Common Stock held by Mr. Case directly.

On June 30, 2010, Maui Land announced a rights offering of
subscription rights to purchase up to 10,389,610 shares of common
stock, no par value of Maui Land.  The percentage of shares is
based on 18,824,726 shares of common stock issued and outstanding
following the rights offering.

Mr. Case is Chairman and Chief Executive Officer of Revolution
LLC, which is the indirect majority owner of Exclusive Resorts
LLC, and Mr. Case is also Chairman of the Case Foundation, both
based in Washington D.C.  Exclusive Resorts owns a 15% interest in
Kapalua Bay Holdings, LLC, a limited liability company formed as a
joint venture among the Company, Marriott International Inc. and
Exclusive Resorts.  Maui Land has a 51% interest in, and is the
managing member of, Kapalua Bay Holdings.

A full-text copy of Stephen M. Case's amended Schedule 13D is
available for free at http://researcharchives.com/t/s?686f

               About Maui Land & Pineapple Company

Maui Land & Pineapple Company, Inc. (NYSE: MLP)
-- http://mauiland.com/-- organized in 1909, is a landholding,
real estate development and asset management company headquartered
in Maui, Hawaii.  The Company owns 24,000 acres of land on Maui,
including its principal development, the Kapalua Resort, a 1,650
acre master-planned, destination resort community.

The Company's balance sheet as of June 30, 2010, showed
$119.4 million in total assets, $202.7 million in total
liabilities, and stockholders' deficit of $83.3 million.

As reported in the Troubled Company Reporter on April 5, 2010,
Deloitte & Touche LLP, in Honolulu, Hawaii, expressed substantial
doubt about the Company's ability to continue as a going concern
following the Company's 2009 results.  The independent auditors
noted of the Company's recurring losses and negative cash flows
from operations and deficiency in stockholders' equity at
December 31, 2009.


MCKAMY DEVELOPMENT: Case Summary & 10 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: McKamy Development Company, Ltd.
        25 Highland Park Village #342
        Dallas, TX 75205

Bankruptcy Case No.: 10-35572

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Northern District of Texas (Dallas)

Judge: Barbara J. Houser

Debtor's Counsel: Gregory Alan Whittmore, Esq.
                  5910 N. Central Expressway, Suite 1010
                  Dallas, TX 75206
                  Tel: (214) 891-6277
                  E-mail: kearsage@msn.com

Scheduled Assets: $1,389,039

Scheduled Debts: $3,602,614

A list of the Company's 10 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/txnb10-35572.pdf

The petition was signed by John F. Skelton, president of Skelton
Investments LLC, Debtor's general partner.


MERCURY COMPANIES: Plan Promises 70% Recovery for Unsec. Creditors
------------------------------------------------------------------
Mercury Companies, Inc., and its debtor-affiliates submitted to
the U.S. Bankruptcy Court for the District of Colorado a proposed
Plan of Reorganization and an explanatory Disclosure Statement.

The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.

According to the Disclosure Statement, Mercury made significant
progress in liquidating assets, generating cash, and resolving
disputes.  Upon the effective date of the Plan, Mercury will set
$25 million cash aside in a fund for distribution to general
unsecured creditors.

The fund will not be burdened with any future administrative or
operational costs.  Distributions from the fund will be made
quickly as possible pro rata to undisputed claims appearing on the
claims register as of that time, subject to hold backs with
respect to disputed claims.  Meanwhile, Mercury will continue the
process of resolution of disputed claims so that money from the
fund will be distributed only to creditors whose claims are
properly allowed.

Mercury estimates that at the conclusion of the claims resolution
process the total allowed general unsecured claims will be
approximately $35 million.  The initial $25 million must be
sufficient to pay unsecured creditors approximately 70% of their
claims (although it will not be paid all at once because of the
need to reserve for disputed claims).  Mercury's remaining
activities will generate more cash so that eventually creditors
must receive greater distributions.

                        Treatment of Claims

     Class                             Estimated Distribution
     -----                             ----------------------
    1- Priority Claims                        100%
    2- Secured Claims                         100%
    3- General Unsecured Claims               70+%
    4- Equity Interests                        0+%

A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/MERCURYCOS_DS.pdf

The Debtors are represented by:

     Michael J. Pankow, Esq.
     Daniel J. Garfield, Esq.
     BROWNSTEIN HYATT FARBER SCHRECK, LLP
     410 17th Street, Suite 2200
     Denver, Colorado 80202
     Tel: (303) 223-1100
     Fax: (303) 223-1111

                    About Mercury Companies Inc.

Denver, Colorado-based Mercury Companies Inc. is a holding company
primarily for subsidiaries that until recently were involved in
the settlement services industry, including title services, escrow
services, real estate services, mortgage services, mortgage
document preparation, and settlement services software
development.  Mercury has since wound down or sold its operations.

Mercury Companies filed for Chapter 11 protection on August 28,
2008.  Two months later, six subsidiaries, namely Arizona Title
Agency, Inc., Financial Title Company, Lenders Choice Title
Company, Lenders First Choice Agency, Inc., Texas United Title,
Inc., dba United Title of Texas and Title Guaranty Agency of
Arizona, Inc., also filed voluntary Chapter 11 petitions.  The
units' cases are jointly administered with Mercury's (Bankr. D.
Colo. Lead Case No. 08-23125).  Lars H. Fuller, Esq., at Baker
Hostetler, serves as the official committee of unsecured
creditors' counsel.

In its schedules, Mercury Companies disclosed $21,820,135 in total
assets and $63,553,229 in total liabilities as of the Petition
Date.


METRO-GOLDWYN-MAYER: Prepackaged Bankruptcy Seen in Mid-September
-----------------------------------------------------------------
Sources told The Wall Street Journal that Metro-Goldwyn-Mayer Inc.
hopes to file a "prepackaged" bankruptcy sometime in mid-
September, when its latest waiver on debt payments expires.  J.P.
Morgan Chase & Co., a major MGM creditor, is working on providing
between $150 million and $200 million in debtor-in-possession
financing to steer the studio through bankruptcy, one of the
sources said.

The Journal's Mike Spector and Lauren A.E. Schuker report that
people familiar with the matter said Spyglass Entertainment is
nearing a deal to run MGM once it finishes restructuring roughly
$4 billion in debt load later this summer.  The Spyglass deal
could be announced this week, sources said.

The sources also told the Journal MGM's creditors have hammered
out financial details with Spyglass co-heads Gary Barber and Roger
Birnbaum and the two sides have been negotiating the makeup of
MGM's new board.  Messrs. Barber and Birnbaum would run MGM as
co-CEOS when the studio exits a streamlined bankruptcy later this
year under the plan.  A group of hedge funds that now control
MGM's fate have identified the pair as their best choice for
reversing MGM's fortunes.

According to the Journal, under the plan, Spyglass would merge
older parts of its film library with the MGM library.  The
Spyglass founders would receive a 4% ownership stake in the
reorganized MGM and creditors would forgive all of MGM's debt for
the bulk of the restructured studio's new equity.

MGM plans to peg the value of the reorganized company at
$1.9 billion.

Once in bankruptcy, the Journal continues, MGM could entertain
other deals under an obligation to maximize its value for all
creditors.  MGM's creditors have left open pairing with other
studio rivals, including Summit Entertainment and Lions Gate
Entertainment Corp.  Both have made recent overtures, the people
said.

The Journal says Spyglass executives are negotiating a "break-up"
fee should the creditors choose another partner, suggesting a deal
is imminent.

The Journal notes MGM, Summit and Lions Gate declined to comment.
Spyglass couldn't be reached for comment.

                    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.


MEXICANA AIRLINES: Offers Unions a Stake in Holding Company
-----------------------------------------------------------
Jonathan Roeder at Bloomberg News reports that Compania Mexicana
de Aviacion aka Mexicana Airlines' controlling company Grupo
Mexicana de Aviacion SA is offering a stake to its pilots and
flight attendants in exchange for new labor terms.

According to the report, Grupo Mexicana said it is inviting a
group of "complementary investors" and that current stakeholders
are willing to dilute their participation in the company.  The
pilots union is interested in buying a stake and would modify its
contract to secure a deal, Fernando Perfecto, the group's head,
told the news agency in an interview.

The airline, the report says, wants to pare pilots' and flight
attendants' pay to compete with low-cost carriers.

Talks between Grupo Mexicana and the pilots and flight attendants
unions have progressed in the past 10 days, according to the
statement obtained by the news agency.

                      About Mexicana Airlines

Compania Mexicana de Aviacion or Mexicana Airlines --
http://www.mexicana.com/-- is a privately held airline and a
subsidiary of Nuevo Grupo Aeronautico.  Founded in 1921, Mexicana
is the oldest commercial carrier in North America.  Charles
Lindbergh piloted the first trip for Mexicana between Brownsville,
Texas, and Mexico City.

Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two
other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and
Mexicana Inter S.A. de C.V. (Mexicana Link).

Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010.  In the U.S., the company filed in the U.S.
Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection
(case no. 10-14182), and in Mexico, it filed for the equivalent of
Chapter 11.

Maru E. Johansen, foreign representative of Compania Mexicana,
estimated in the Chapter 15 petition that the company has assets
of US$500 million to US$1 billion and debts of more than US$1
billion. William C. Heuer, Esq., at Duane Morris LLP, serves as
counsel to Ms. Johansen.

Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings


MGM RESORTS: Posts $883 Million Net Loss for June 30 Quarter
------------------------------------------------------------
MGM Resorts International filed its quarterly report on Form 10-Q,
reporting $883.47 million net loss on $1.53 billion revenues for
the three months ended June 30, 2010, compared $212.57 million net
loss on $1.49 billion revenue for the same period a year earlier.

The Company's balance sheet at June 30, 2010, showed $19.98
billion in total assets, $1.19 billion in total current
liabilities, $2.65 billion in deferred income taxes,
$13.04 billion in long-term debt $243.29 million in other long-
term obligations, and $2.85 billion in total stockholders' equity.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6883

                         About MGM Resort

MGM Resorts International (NYSE: MGM) --
http://www.mgmresorts.com/-- has significant holdings in gaming,
hospitality and entertainment, owns and operates 15 properties
located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, Illinois and
Macau.

                           *     *     *

As reported by the Troubled Company Reporter on July 1, 2010,
Fitch Ratings affirmed these ratings for MGM Resorts: Issuer
Default Rating affirmed at 'CCC'; Senior secured notes due 2013,
2014, and 2017 affirmed at 'B+/RR1' (91%-100% recovery band);
Senior secured notes due 2020 rated 'B+/RR1' (91%-100%); Senior
credit facility affirmed at 'B-/RR3' (51%-70%); Senior unsecured
notes affirmed at 'CCC/RR4' (31%-50%); Convertible senior notes
due 2015 rated 'CCC/RR4' (31%-50%); Senior subordinated notes
affirmed at 'C/RR6' (0%-10%).


MIDDLETOWN & NEW JERSEY: Files for Bankruptcy in New York
---------------------------------------------------------
Middletown & New Jersey RR Co. filed for Chapter 11 bankruptcy
protection from creditors on Aug. 6 in Manhattan (Bankr. S.D.N.Y.
Case No. 10-37378).

Middletown is a railroad company.  It estimated assets of up to
$500,000 and debts of $1 million to $10 million in its Chapter 11
petition.  The Company owes $1.47 million to a secured creditor.


MIDDLETOWN AND NEW JERSEY: Voluntary Chapter 11 Case Summary
------------------------------------------------------------
Debtor: Middletown and New Jersey RR Company, Inc.
        140 East Main Street
        Middletown, NY 10940

Bankruptcy Case No.: 10-37378

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Southern District of New York (Poughkeepsie)

Judge: Cecelia G. Morris

Debtor's Counsel: Brian Guillorn, Esq.
                  461 Park Avenue South, 4th Floor
                  New York, NY 10016
                  Tel: (212) 683-4400
                  Fax: (212) 685-0011
                  E-mail: bguillorn@aol.com

Scheduled Assets: $374,000

Scheduled Debts: $1,469,479

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Imre Eszenyi, chairman.


MIDWEST BANC: Gets Default Notice Under $10-Mil. Debenture
----------------------------------------------------------
Midwest Banc Holdings, Inc. is obligated under an indenture, dated
as of December 19, 2003, for $10.0 million of junior subordinated
debt securities due 2033.  On August 2, 2010, the Company received
from Wilmington Trust Company, as trustee under the Indenture, a
notice of event of default under the terms of the Company's Debt
Securities and related trust preferred securities of MBHI Capital
Trust IV, an unconsolidated subsidiary of the Company.

The Notice asserts that the previously reported naming of the
Federal Deposit Insurance Corporation as receiver of the Company's
wholly-owned subsidiary, Midwest Bank, and the assumption of all
of the deposits of the Bank and the assumption of its banking
operation constitutes a default under the Indenture.  The Company
does not believe that these events in and of themselves constitute
a default.

Upon the occurrence of an event of default under the Indenture,
subject to any applicable cure period, the entire principal,
premium and any accrued unpaid interest may be declared
immediately due and payable by either the trustee or the holders
of the Debt Securities.

WTC has informed the Company that it will take no further action
under the Indenture, except in its sole and absolute discretion,
unless it receives written direction and indemnity satisfactory to
WTC from the holders of the Debt Securities.

                          Junior Notes

The Company is obligated under an indenture, dated as of
December 19, 2003, for $9.0 million of junior subordinated debt
securities due 2033. On August 2, 2010, the Company received from
Bank of New York Mellon, N.A., as trustee on behalf of Trapeza CDC
V, Ltd., a notice declaring the Notes issued to MBHI Capital Trust
III, an unconsolidated subsidiary of the Company, to be
immediately due and payable.  The Notice asserts that the events
of default under the Notes occurred on July 14, 2009 and May 14,
2010, thereby permitting BNYM to declare the Notes immediately due
and payable. However, the Notice does not specify what events
occurred on July 14, 2009 and May 14, 2010 that constituted events
of default under the Notes.  The Company does not believe that
events of default have occurred under the Notes.

                        About Midwest Banc

Midwest Banc Holdings, Inc. is a community-based bank holding
company headquartered in Melrose Park, Illinois.  Through its
wholly owned subsidiaries, the Company provides a wide range of
services, including traditional banking services, personal and
corporate trust services, and insurance brokerage and retail
securities brokerage services.  The Company's principal operating
subsidiary is Midwest Bank and Trust Company, an Illinois state
bank that operates 26 banking centers in the Chicago metropolitan
area.

The Company's balance sheet as of March 31, 2010, showed
$3.182 billion in assets and $3.232 billion of liabilities, for a
stockholders' deficit of $49.5 million.

                           *     *     *

As reported in the Troubled Company Reporter on April 6, 2010,
PricewaterhouseCoopers LLP, in Chicago, expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has experienced
significant net losses during 2008 and 2009, is undercapitalized
at December 31, 2009, does not have sufficient liquidity to meet
the potential demand for all amounts due under certain lending
arrangements with its primary lender upon expiration of a related
forbearance agreement that expires on March 31, 2010, and its
ability to raise sufficient new equity capital in a timely manner
is uncertain.


MMRGLOBAL INC: Registers 60,000,000 Shares for Resale by Dutchess
-----------------------------------------------------------------
MMRGlobal, Inc., formerly known as MMR Information Systems, Inc.,
filed a prospectus with the Securities and Exchange Commission
relating to the offer and resale of up to 60,000,000 shares of th
Company's common stock, par value $0.001 per share, by Dutchess
Equity Fund, L.P.   The Company said that of those shares, (i)
Dutchess has agreed to purchase 60,000,000 pursuant to the
investment agreement dated September 15, 2009, as amended May 7,
2010, between Dutchess and the Company, and (ii) 230,800 shares
were issued to Dutchess in partial consideration for the
preparation of the documents for its investment.  Subject to the
terms and conditions of such investment agreement, the Company has
the right to put up to $10.0 million in shares of its common stock
to Dutchess.  This arrangement is sometimes referred to as an
"Equity Line."

The Company will not receive any proceeds from the resale of the
shares of common stock offered by Dutchess.  The Company will,
however, receive proceeds from the sale of shares to Dutchess
pursuant to the Equity Line.

"When we put an amount of shares to Dutchess, the per share
purchase price that Dutchess will pay to us in respect of such put
will be determined in accordance with a formula set forth in the
Investment Agreement.  Generally, in respect of each put, Dutchess
will pay us a per share purchase price equal to 94% of the average
of two lowest daily volume weighted average price -- VWAP -- of
the Company's common stock during the five consecutive trading day
period beginning on the trading day immediately following the date
of delivery of the applicable put notice," the Company said.

Dutchess may sell the shares of common stock from time to time at
the prevailing market price on the Over-the Counter Bulletin
Board, or on an exchange if our shares of common stock become
listed for trading on such an exchange, or in negotiated
transactions.  Dutchess is an "underwriter" within the meaning of
the Securities Act of 1933, as amended  in connection with the
resale of the common stock under the Equity Line.

The Company's common stock is quoted on the OTC Bulletin Board
under the symbol "MMRF".  The sale price of the common stock on
the OTC Bulletin Board on August 3, 2010 was $0.14 per share.

The Company will not be required to pay any underwriters'
discounts or commissions relating to the securities covered by the
registration statement.

A full-text copy of the Company's registration statement is
available at no charge at http://ResearchArchives.com/t/s?6880

                          About MMRGlobal

Based in Beverly Hills, Calif., MMRGlobal, Inc., formerly known as
MMR Information Systems, Inc., provides secure and easy-to-use
online Personal Health Records and electronic safe deposit box
storage solutions, serving consumers, healthcare professionals,
employers, insurance companies, unions and professional
organizations and affinity groups.

As of March 31, 2010, the Company had total assets of
$1.952 million against, total liabilities of $10.383 million, and
stockholder's deficit of $8.430 million.  As of March 31, 2010,
the Company's current liabilities, of which $3.9 million represent
non-cash derivative liabilities, exceeded its current assets by
$8.9 million. Furthermore, during the quarter ended March 31,
2010, the Company incurred losses of $6.5 million.

At March 31, 2010 and December 31, 2009, the Company had $878,442
and $487,776, respectively, in cash and cash equivalents.
Historically, the Company issued capital stock, sold debt and
equity securities and received funds from The RHL Group, Inc. -- a
significant shareholder, wholly owned by the Company's Chairman
and Chief Executive Officer -- to operate its business.  Although,
the Company received additional funding from The RHL Group
pursuant to a Third Amended and Restated Note dated April 29,
2009, it nevertheless will still be required to obtain additional
financing to meet installment payment obligations resulting from
settlement payments with various creditors and the previously
existing obligations under the subordinated secured indebtedness
to The RHL Group, which note payable had a balance of $1,473,934
at March 31, 2010.  As a result, there is uncertainty about the
Company's ability to continue as a going concern.

Management's plan is to continue to utilize its available line of
credit with The RHL Group, if necessary.  At March 31, 2010, there
was $1.500 million available under The RHL Group line of credit.
Additionally, the Company plans to continue to sell additional
debt and equity securities, continue to settle its existing
liabilities through issuance of equity securities, explore other
debt financing arrangements, continue to increase its existing
subscriber and affiliate customer base and sell MMR Pro products
to obtain additional cash flow over the next 12 months.  There can
be no assurance that funds from these sources will be available
when needed or, if available, will be on terms favorable to the
Company or to its stockholders.  If additional funds are raised by
issuing equity securities, the percentage ownership of the
Company's stockholders will be reduced, stockholders may
experience additional dilution or such equity securities may
provide for rights, preferences or privileges senior to those of
the holders of the Company's common stock.

If the Company is unable to utilize its available line of credit
with The RHL Group, or obtain suitable alternative debt financing,
it may adversely affect the Company's ability to execute its
business plan and continue as a going concern.


MMRGLOBAL INC: Increases Shares Issuable Under Equity Plan by 15MM
------------------------------------------------------------------
MMRGlobal, Inc., filed with the Securities and Exchange Commission
a Form S-8 Registration Statement under the Securities Act of 1933
to increase to 15,000,000 shares -- or an increase from 12,000,000
shares to 27,000,000 shares -- of common stock reserved for
issuance under the Company's 2001 Equity Incentive Plan, as
amended.  The increase was approved by the Company's board of
directors on January 21, 2010 and subsequently approved by
stockholders at the Annual Meeting of Stockholders held June 15,
2010.  The Company said 10,498,457 of the common stock have
previously been registered for issuance under the Plan pursuant to
Registration Statements on Form S-8 filed with the Securities and
Exchange Commission on December 19, 2007 (File No. 333-148164),
March 28, 2006 (File No. 333-132755), and February 14, 2005 (File
No. 333-122825) respectively.

A full-text copy of the Form S-8 is available at no charge
at http://ResearchArchives.com/t/s?6881

                          About MMRGlobal

Based in Beverly Hills, Calif., MMRGlobal, Inc., formerly known as
MMR Information Systems, Inc., provides secure and easy-to-use
online Personal Health Records and electronic safe deposit box
storage solutions, serving consumers, healthcare professionals,
employers, insurance companies, unions and professional
organizations and affinity groups.

As of March 31, 2010, the Company had total assets of
$1.952 million, total liabilities of $10.383 million, and
stockholder's deficit of $8.430 million.  As of March 31, 2010,
the Company's current liabilities, of which $3.9 million represent
non-cash derivative liabilities, exceeded its current assets by
$8.9 million. Furthermore, during the quarter ended March 31,
2010, the Company incurred losses of $6.5 million.

At March 31, 2010 and December 31, 2009, the Company had $878,442
and $487,776, respectively, in cash and cash equivalents.
Historically, the Company issued capital stock, sold debt and
equity securities and received funds from The RHL Group, Inc. -- a
significant shareholder, wholly owned by the Company's Chairman
and Chief Executive Officer -- to operate its business.  Although,
the Company received additional funding from The RHL Group
pursuant to a Third Amended and Restated Note dated April 29,
2009, it nevertheless will still be required to obtain additional
financing to meet installment payment obligations resulting from
settlement payments with various creditors and the previously
existing obligations under the subordinated secured indebtedness
to The RHL Group, which note payable had a balance of $1,473,934
at March 31, 2010.  As a result, there is uncertainty about the
Company's ability to continue as a going concern.

Management's plan is to continue to utilize its available line of
credit with The RHL Group, if necessary.  At March 31, 2010, there
was $1.500 million available under The RHL Group line of credit.
Additionally, the Company plans to continue to sell additional
debt and equity securities, continue to settle its existing
liabilities through issuance of equity securities, explore other
debt financing arrangements, continue to increase its existing
subscriber and affiliate customer base and sell MMR Pro products
to obtain additional cash flow over the next 12 months.  There can
be no assurance that funds from these sources will be available
when needed or, if available, will be on terms favorable to the
Company or to its stockholders.  If additional funds are raised by
issuing equity securities, the percentage ownership of the
Company's stockholders will be reduced, stockholders may
experience additional dilution or such equity securities may
provide for rights, preferences or privileges senior to those of
the holders of the Company's common stock.

If the Company is unable to utilize its available line of credit
with The RHL Group, or obtain suitable alternative debt financing,
it may adversely affect the Company's ability to execute its
business plan and continue as a going concern.


MORGANS HOTEL: June 30 Balance Sheet Upside-Down by $4.2-Mil.
-------------------------------------------------------------
MedClean Technologies, Inc., is registering 180,000,000 shares of
common stock -- Put Shares -- that it will put to Southridge
Partners II, LP, pursuant to a private equity credit agreement
between Southridge as selling security holder and the Company
effective on August 5, 2010.

Following the offering, Southridge will own 3,000,000 shares for a
less than 1% stake in the Company.

According to MedClean, the Equity Credit Agreement with Southridge
provides that Southridge is committed to purchase up to
$15,000,000 of common stock.  MedClean may draw on the facility
from time to time, as and when it determines appropriate in
accordance with the terms and conditions of the Equity Credit
Agreement.

Southridge is an "underwriter" within the meaning of the
Securities Act in connection with the resale of common stock under
the Equity Credit Agreement.  No other underwriter or person has
been engaged to facilitate the sale of shares of common stock in
this offering.  This offering will terminate 36 months after the
registration statement to which the prospectus is made a part is
declared effective by the SEC.  Southridge will pay MedClean 95%
of the average of the lowest closing bid price of the common stock
reported by Bloomberg, LP in any two trading days, consecutive or
inconsecutive, of the five consecutive trading day period
commencing the date a put notice is delivered.

MedClean will not receive any proceeds from the sale of shares of
common stock offered by the Selling Security Holders.  However,
MedClean will receive proceeds from the sale of Put Shares under
the Equity Credit Agreement.  The proceeds will be used for
working capital or general corporate purposes.  MedClean will bear
all costs associated with this registration.

MedClean common stock is quoted on the OTC Bulletin Board under
the symbol "MCLN.OB."  On August 4, 2010, the closing bid price of
MedClean common stock was $0.0166 per share.  These prices will
fluctuate based on the demand for the common stock.

A full-text copy of the registration statement is available at no
charge at http://ResearchArchives.com/t/s?6884

Based in Bethel, Connecticut, MedClean Technologies, Inc.,
provides solutions for managing medical waste on site including
designing, selling, installing and servicing on site (i.e. "in-
situ") turnkey systems to treat regulated medical waste.

The Company's balance sheet at March 31, 2010, showed $1,785,501
in total assets, $2,122,063 in total liabilities, and
stockholders' deficit of $336,562.

As reported in the Troubled Company Reporter on March 8, 2010,
Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the year ended December 31, 2009.  The independent auditors
noted that of the Company's substantial recurring losses.


MPG OFFICE: Posts $53 Million Net Loss for June 30 Quarter
----------------------------------------------------------
MPG Office Trust Inc. reported a net loss available to common
stockholders of $53.5 million for the quarter ended June 30, 2010,
compared to a net loss available to common stockholders of $380.5
million for the quarter ended June 30, 2009.

The Company said, "Our earnings in the second quarter of 2010 were
negatively impacted by impairment charges totaling $17.5 million
recorded in connection with the writedown of 207 Goode to its
estimated fair value and the disposition of 17885 Von Karman.  Our
earnings in the second quarter of 2009 were negatively impacted by
impairment charges totaling $384.7 million recorded in connection
with the writedown of the Properties in Default and City Parkway
to their estimated fair value, and the writeoff of certain assets
related to our investment in DH Von Karman Maguire, LLC.
Additionally, our 2009 earnings were negatively impacted by $8.3
million due to an impairment charge recorded by our Maguire
Macquarie joint venture in connection with the Quintana Campus in
Irvine."

The Company's balance sheet at June 30, 2010, showed $3.37 billion
in total assets, $4.26 billion in total liabilities, and
$778.95 million in total stockholders' deficit.

As of June 30, 2010, the Company's office portfolio was comprised
of whole or partial interests in 27 office properties totaling
approximately 16 million net rentable square feet, one 350-room
hotel with 266,000 square feet, and on- and off-site structured
parking plus surface parking totaling approximately 10 million
square feet, which accommodates approximately 33,000 vehicles.

The Company said, "We have one recently completed development
project that totals approximately 188,000 square feet of office
space.  We also own undeveloped land that we believe can support
up to approximately 5 million square feet of office and mixed-use
development and approximately 5 million square feet of structured
parking, excluding development sites that are encumbered by the
mortgage loans on our Pacific Arts Plaza and 2600 Michelson
properties, which are in default."

A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6882

A copy of the Form 10-Q filed with the Securities and Exchange
Commission is available for free at:

            http://researcharchives.com/t/s?6899

                      About MPG Office Trust

MPG Office Trust Inc. is a self-administered and self-managed real
estate investment trust.  It is the largest owner and operator of
Class A office properties in the Los Angeles Central Business
District and are primarily focused on owning and operating high-
quality office properties in the high-barrier-to-entry Southern
California market.


MOMENTIVE PERFORMANCE: Posts $1 Million Net Loss for June 30 Qtr.
-----------------------------------------------------------------
Momentive Performance Materials Inc. reported its consolidated
results for the fiscal three-month period ended June 27, 2010.

Highlights include:

   * Net sales of $651.4 million compared to $490.0 million in the
     fiscal three-month period ended June 28, 2009, an increase of
     32.9%.

   * Adjusted EBITDA of $134.3 million compared to Adjusted EBITDA
     of $64.0 million in the fiscal three-month period ended June
     28, 2009, an increase of 110%.

   * Operating income of $71.6 million versus operating income of
     $3.6 million in the fiscal three-month period ended June 28,
     2009.

   * Net loss attributable to Momentive of $1.0 million compared
     to net income attributable to Momentive of $102.8 million in
     the fiscal three-month period ended June 28, 2009.

The Company's balance sheet at June 27, 2010, showed $3.19 billion
in total assets, $3.73 billion in total liabilities, and
$539.13 million in total stockholders' deficit.

Net income attributable to Momentive in the fiscal three-month
period ended June 28, 2009 included a gain on exchange of debt of
$178.7 million in connection with the Company's debt exchange
consummated on June 15, 2009.

"We are pleased to report very strong second quarter results, with
Adjusted EBITDA, both in absolute dollars and as a percentage of
sales, coming in at an all-time high. With solid volume increases
from last year, our operating leverage improved considerably,
benefiting from our cost reduction efforts during the recession,"
said Jonathan Rich, President and CEO.  He added, "While
inflationary pressures and typical seasonality in our business
will make the third quarter a more challenging operating
environment, we continue to remain focused on increasing our sales
of specialty products, generating free cash flow and containing
costs."

A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?687d

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?687e

                     About Momentive Performance

Momentive Performance Materials, Inc., is a producer of silicones
and silicone derivatives, and is engaged in the development and
manufacture of products derived from quartz and specialty
ceramics.  As of Dec. 31, 2008, the Company had 25 production
sites located worldwide, which allows it to produce the majority
of its products locally in the Americas, Europe and Asia.
Momentive's customers include companies in industries, such as
Procter & Gamble, 3M, Goodyear, Unilever, Saint Gobain, Motorola,
L'Oreal, BASF, The Home Depot and Lowe's.

Momentive Performance carries a 'Caa1' corporate family rating
from Moody's Investors Service.  In May 2010, Moody's changed the
outlook to "stable" from "negative" reflecting the substantial
improvement in performance in the first quarter of 2010 and the
expectation that profits will remain elevated.

Momentive carries a 'CCC-' corporate credit rating from Standard &
Poor's ratings Services.


NEW ENTERPRISE: Moody's Assigns 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
and a B2 probability of default rating to New Enterprise Stone &
Lime Co., Inc., and a Caa1 rating to the company's senior
unsecured notes maturing 2018.  The rating outlook is stable.

The B2 corporate family rating balances the company's modest
scale, seasonality, limited geographic diversification, and
reliance on Pennsylvania DOT for over half of its revenues,
against the company's resilience through various economic cycles,
multi-generational family stewardship, and prudent acquisition and
growth strategy.

The stable outlook presumes that the company will carefully
balance its leverage and other credit metrics with its acquisition
strategy, primarily focusing on modestly sized tuck-in
acquisitions that build upon its core strengths.  The stable
outlook presumes that adjusted debt-to-EBITDA remains below 6x and
EBIT-to-Interest remains above 1.2x.  Larger debt-financed
acquisitions or declining infrastructure and roadway spending in
Pennsylvania may result in negative rating pressure.

These ratings were affected by this action:

  -- Corporate Family Rating B2;
  -- Probability of Default Rating B2;
  -- $250 million senior unsecured notes Caa1, LGD-5, 81%.

This is a newly initiated rating and is Moody's first press
release on this issuer.

New Enterprise Stone & Lime Co., Inc., headquartered in New
Enterprise, PA, is a producer of building aggregates and
materials, highway safety products, and a heavy / highway
construction contractor.  Revenues for the twelve months through
February 28, 2010, totaled approximately $737 million.


NEW ENTERPRISE: S&P Assigns Corporate Credit Rating at 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B+'
corporate credit rating to New Enterprise, Pa.-based New
Enterprise Stone & Lime Co. Inc.  The rating outlook is stable.

At the same time, S&P assigned a preliminary issue-level rating of
'B+' (the same as the corporate credit rating on the company) to
NESL's planned $250 million senior unsecured bond based on
preliminary terms and conditions.  S&P assigned the notes a
preliminary recovery rating of '4', indicating S&P's expectation
of average (30%-50%) recovery for lenders in the event of a
payment default.  These securities are expected to be sold
pursuant to Rule 144A of the Securities Act of 1933 with
registration rights.

The company intends to use the proceeds of the notes to pay off
its existing $85 million second-lien term loan and to reduce
outstanding borrowings on its $135 million revolving credit
facility due in January 2013.  The company also intends to reduce
the balances on its bank term loans A and B due in January 2014.

"The 'B+' corporate credit rating on NESL reflects the company's
weak business risk profile, given its limited geographic
diversity, small size and scale of operations, and highly
competitive end markets," said Standard & Poor's credit analyst
Tobias Crabtree.  "These factors are partially offset by the
attractive, long-term fundamentals in the company's aggregates,
asphalt, heavy/highway construction and paving businesses, and its
traffic safety services and equipment business."

The ratings also reflect NESL's aggressive financial risk profile
given S&P's expectations for the company's leverage to be about 5x
by the end of its fiscal 2011 ended Feb. 28, 2011.  As a result,
S&P think the company will likely maintain at least a 10% cushion
with regard to its covenants that tighten beginning in fiscal
2012.


OCHOA AGRO: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Ochoa Agro Extra, Inc.
        HC 6 Box 76215
        Caguas, PR 00725

Bankruptcy Case No.: 10-07187

Chapter 11 Petition Date: August 8, 2010

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Debtor's Counsel: Teresa M. Lube Capo, Esq.
                  LUBE & SOTO LAW OFFICES PSC
                  1130 Ave. Fd. Roosevelt
                  San Juan, PR 00920-2906
                  Tel: (787) 722-0909
                  Fax: (787) 977-1709
                  E-mail: lubeysoto@gmail.com

Estimated Assets: $50,001 to $100,000

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/prb10-07187.pdf

The petition was signed by Armando Ochoa Villavisanis, president.


OOLMAN DAIRY: Case Summary & 4 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Oolman Dairy Leasing, LLC
        1290 Shoop Ave., Suite 140
        Wauseon, OH 43567

Bankruptcy Case No.: 10-11889

Chapter 11 Petition Date: August 8, 2010

Court: United States Bankruptcy Court
       Southern District of Indiana (Indianapolis)

Judge: Basil H. Lorch III

Debtor's Counsel: KC Cohen
                  151 N Delaware St., Suite 1104
                  Indianapolis, IN 46204
                  Tel: (317) 715-1845
                  Fax: (317) 916-0406
                  E-mail: kc@esoft-legal.com

Estimated Assets: $0 to $50,000

Estimated Debts: $10,000,001 to $50,000,000

A list of the Company's four largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/insb10-11889.pdf

The petition was signed by Willy van Bakel, manager.


OWENS CORNING: Court Closes Lead Bankruptcy Case
------------------------------------------------
Judge Judith Fitzgerald of the U.S. Bankruptcy Court for the
District of Delaware entered a final decree, effectively closing
the Chapter 11 case of Owens Corning Sales LLC fka Owens Corning,
Case No. 00-03837, as of August 9, 2010.

The Owens Corning case has been fully administered based on the
six factors set forth in the Advisory Committee Note pursuant to
Rule 3022 of the Federal Rules of Bankruptcy Procedure.

Owens Corning filed for bankruptcy protection in October 2000 and
engaged in an almost six-year proceeding before the Company got
confirmation and affirmation of its Plan of Reorganization from
the Bankruptcy Court and the U.S. District Court for the District
of Delaware in September 2006.  The Owens Corning Plan was
subsequently declared effective on October 31, 2006.

Judge Fitzgerald previously closed the Chapter 11 cases of the 17
Owens Subsidiary Debtors on August 29, 2008.

With the recent closing of the lead Owens Corning case, the Court
ruled that the Clerk of the Court will accept annual reports from
the Owens Corning/Fibreboard Asbestos Personal Injury Trust for
filing on the docket of the within Chapter 11 case without the
requirement that any party-in-interest file a request to re-open
the Owens Corning case.

Robert L. Berger & Associates, LLC, now known as Omni Management
Group LLC, is relieved of all of its duties and obligations as
noticing, claims and balloting agent for the Clerk of the Court.

Berger is directed to return all original files in its possession,
including all proofs of claim, to the Clerk of the Court.

Owens Corning is further directed to file its post-confirmation
report for the second quarter of 2010 no later than September 8,
2010.  The Clerk of the Court will accept that report for filing
on the docket of the within Chapter 11 case without requiring any
party-in-interest to file a request to re-open the case.

The Bankruptcy Court will retain jurisdiction to hear and
determine any matters or disputes arising in or related to the
Debtors' cases, including any matter related to the effect of the
discharge and/or injunction provisions contained in the Plan and
Confirmation Order.

Judge Fitzgerald's ruling is without prejudice to any parties'
right to seek to re-open any of the Debtors' cases.

                      About Owens Corning

Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning
(Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/--
is a producer of residential and commercial building materials and
glass fiber reinforcements, and other similar materials for
composite systems.  The company has operations in 26 countries.

The Company filed for Chapter 11 protection on October 5, 2000
(Bankr. D. Del. Case. No. 00-03837).  Norman L. Pernick, Esq., at
Saul Ewing LLP, represented the Debtors.  Elihu Inselbuch, Esq.,
at Caplin & Drysdale, Chartered, represented the Official
Committee of Asbestos Creditors.  James J. McMonagle served as the
Legal Representative for Future Claimants until June 20, 2007.
Mr. McMonagle was replaced by Michael J. Crames.  Mr. Crames
served as Mr. McMonagle's counsel until July 2005, when he retired
from the law firm Kaye Scholer LLP.

On September 28, 2006, the Honorable John P. Fullam, Sr., of the
U.S. District Court for the Eastern District of Pennsylvania
affirmed the order of Honorable Judith Fitzgerald of the U.S.
Bankruptcy Court for the District of Delaware confirming Owens
Corning's Sixth Amended Plan of Reorganization.  The Plan took
effect on October 31, 2006, marking the company's emergence from
Chapter 11.

Reorganized Owens sought on July 25, 2008, from the Delaware
Bankruptcy Court a final decree closing the Chapter 11 cases of 17
of its affiliates.  Only the Chapter 11 case of Owens Corning
Sales, LLC, formerly known as Owens Corning, under Case No.
00-03837 will remain open.

(Owens Corning Bankruptcy News; Bankruptcy Creditors' Service
Inc.; http://bankrupt.com/newsstand/or 215/945-7000)

                          *     *     *

Reorganized Owens Corning carries a 'Ba1' corporate family rating
from Moody's.


PAUL STEADMAN: Files New Schedules of Assets and Liabilities
------------------------------------------------------------
Paul R. Steadman filed with the U.S. Bankruptcy Court for the
District of South Carolina schedules of assets and liabilities, as
amended, disclosing:

  Name of Schedule                     Assets         Liabilities
  ----------------                     ------         -----------
A. Real Property                   $18,697,975
B. Personal Property                  $598,304
C. Property Claimed as
   Exempt
D. Creditors Holding
   Secured Claims                                      $14,763,833
E. Creditors Holding
   Unsecured Priority
   Claims                                                 $156,675
F. Creditors Holding
   Unsecured Non-priority
   Claims                                               $1,284,216
                                   -----------         -----------
      TOTAL                        $19,296,279         $16,204,724

Fort Mill, South Carolina-based Paul R. Steadman filed for Chapter
11 bankruptcy protection on April 30, 2010 (Bankr. D. S.C. Case
No. 10-03145).  Nancy E. Johnson, Esq., at the Law Office of Nancy
E. Johnson, LLC, assists the Debtor in its restructuring effort.


PERPETUA HOLDINGS: Seeks Oct. 15 Extension of Plan Exclusivity
--------------------------------------------------------------
Dow Jones' DBR Small Cap reports that Perpetua Inc. is asking the
Bankruptcy Court to extend its exclusive right to file a Chapter
11 plan through October 15.  The Debtor also wants until December
14 to obtain creditors' support for the document.  Perpetua's
current deadline to file the plan and get creditors' support is
August 27 and October 26, respectively.

Dow Jones relates Perpetua said that it needs more time to craft a
creditor-repayment plan because it had to spend a "significant
amount of time" trying to deal with objections to and obtain
bankruptcy-court approval for a settlement agreement with its
insurance companies.  Under the settlement agreement, insurance
companies have agreed to hand over millions of dollars to help
settle claims that were asserted against Burr Oak.

                          About Perpetua

Perpetua is the owner of Burr Oak Cemetery, an Illinois burial
ground that was embroiled in a grave-desecration scandal in 2009.

Perpetua Holdings of Illinois, Inc., together with affiliates
Perpetua-Burr Oak Holdings of Illinois, L.L.C., and Perpetua,
Inc., filed for Chapter 11 on September 14, 2009 (Bankr. N.D. Ill.
Case No. 09-34022).  Judge Pamela S. Hollis presides over the
cases. Attorneys at Shaw Gussis Fishman Glantz Wolfson & Tow
represent the Debtors in their Chapter 11 effort.  Perpetua
Holdings estimated $1 million to $10 million in total assets and
debts in its petition.


PETROQUEST ENERGY: S&P Raises Corporate Credit Rating to 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating to 'B' from 'B-'.  S&P removed the rating from CreditWatch,
where it was placed with positive implications on May 28, 2010.
S&P has assigned a 'B' rating to the company's proposed
$150 million senior notes.  The outlook is stable.

S&P's rating on PetroQuest's senior unsecured rating remains 'B',
the same as the corporate credit rating.  S&P has removed the
rating from CreditWatch with developing implications.  The
recovery rating on the company's unsecured obligations was revised
to '3', indicating expectations of meaningful (50% to 70%)
recovery in the event of a payment default, from 2.

At the same time Standard & Poor's assigned its 'B' senior
unsecured rating to PetroQuest's proposed $150 million senior
notes due 2017.

The corporate credit rating upgrade reflects the significant
improvement in the company's liquidity following its joint venture
with NextEra Energy Resources LLC, and S&P's expectations that
PetroQuest will maintain moderate financial policies, including
keeping capital spending within operating cash flows.
Additionally, S&P believes the additional liquidity resulting from
the JV should allow PetroQuest to resume and potentially
accelerate growth of both reserves and production after 2009's
restrained capital spending hindered results.

Nevertheless, further positive rating actions are unlikely in the
near term due to PetroQuest's limited scale and exposure to
natural gas prices given its lack of hedges in 2011.  Although the
company maintains the strong credit metrics that are typical for
exploration and production companies with operations in the Gulf
of Mexico, its very short proved developed reserve life, about 3.5
years, requires high reinvestment rates that are only partially
offset in the near term by the NextEra JV.

The revised recovery rating reflects both the lower reserve level
resulting from the NextEra JV, about 14% of proved reserves were
sold, as well as a $0.50 reduction in Standard & Poor's long-term
natural gas price assumption since the last recovery review in
late 2009.

The rating on PetroQuest Energy Inc. reflects the company's
limited reserves; short reserve life; high reinvestment of
capital, exposure to the capital-intensive, higher-risk Gulf of
Mexico region; and a high cost structure.  Other factors include a
good reserve replacement history, growing onshore production and
reserves, and solid financial measures for the rating.  Estimated
proved reserves as of Dec. 31, 2009, pro forma for the NextEra JV,
were 154 billion cubic feet equivalent, around 90% was natural gas
and about 70% was developed.

The stable outlook reflects S&P's expectation that PetroQuest will
maintain solid financial measures and sufficient liquidity to fund
fixed costs and capital spending over the next 12 to 18 months,
during a continued period of uncertain natural gas prices.  S&P
could lower ratings if liquidity were to fall below $50 million,
or if the company pursued a more aggressive financial policy such
that adjusted debt leverage exceeded 3x.  S&P does not currently
expect to take any positive rating actions given the company's
limited scale, short reserve life, and exposure to natural gas
prices in 2011.


PINNACLE FOODS: Moody's Upgrades Corporate Family Rating to 'B2'
----------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family and
Probability of Default Ratings of Pinnacle Foods Finance, LLC, to
B2 from B3 and assigned a rating of B3 to $400 million of senior
unsecured notes and a rating of Ba3 to approximately $442 million
of senior secured bank debt, both being offered.  The rating
outlook is stable.

The new $400 million unsecured notes are being offered in a
private placement under Rule 144A of the Securities Act of 1933.
Concurrent with the notes offering, Pinnacle plans to enter into a
new senior secured bank term loan D, under its current bank credit
agreement.  The proceeds from both debt instruments will be used
to retire its existing $842 million Term Loan C in its entirety,
after which Moody's will withdraw the rating on this debt tranche.

The upgrade of the Corporate Family Rating to B2, reflects Moody's
belief that Pinnacle's execution of the Birds Eye integration will
remain reasonably close to plan, and that in spite of intensifying
promotional pricing pressures in some key product segments,
including frozen vegetables and baking mixes, Pinnacle will be
able to partially offset gross margin pressure with ongoing cost
reductions and by exiting lower-margin businesses.  As a result,
Moody's expect that Pinnacle should be able to generate stable
earnings generation and free cash flow that will sustain
Debt/EBITDA below 6.5 times within six to twelve months.

"Price competition clearly has slowed the momentum Moody's saw
earlier in the year, but Moody's believe that there are enough
achievable cost savings remaining in the Birds Eye integration to
support relatively stable earnings growth and modest debt
reduction," said Brian Weddington, Moody's senior credit officer.

Ratings Revised:

Pinnacle Foods Finance LLC:

* Corporate Family Rating to B2 from B3;

* Probability of Default Rating to B2 from B3;

* $150 million Senior Secured Bank Revolving Credit Facility due
  April 2013 to Ba3 from B2;

* $1,199 million Senior Secured Bank Term Loan B Credit Facility
  due April 2014 to Ba3 from B2;

* $842 million Senior Secured Bank Term Loan C Credit Facility due
  April 2014 to Ba3 from B2 (to be withdrawn);

* $625 million of 9.25% Senior Unsecured Notes due April 2015 to
  B3 from Caa2.

* $199 million of 10.625% Senior Subordinated Notes due April 2017
  to Caa1 from Caa2;

Ratings Assigned:

* $442 million of Term Loan D, due April 2014 at Ba3;
* $400 million of new senior unsecured notes due 2017 at B3.

SGL Rating Affirmed:

* Speculative Grade Liquidity Rating at SGL-2.

LGD Rates Revised:

* LGD Senior Secured Bank Credit Facilities (Domestic) to LGD2-
  28% from LGD3 - 35%;

* LGD Senior Unsecured Debt (Domestic) to LGD5 - 77% from LGD5 -
  85%;

* LGD Senior Subordinated Debt (Domestic) to LGD6 - 95% from LGD6
  - 96%.

Pinnacle's B2 rating reflects primarily the high leverage that
resulted from the leveraged acquisition of Birds Eye Foods in
2009.  The rating also reflects the strong brand equity of Bird's
Eye that contributed stronger profit margins and greater scale
efficiencies in frozen foods.  Moody's estimate that the Birds Eye
frozen foods portfolio lends itself to a relatively
straightforward integration process that should generate material
cost savings from its combination with Pinnacle's frozen
operations, and the planned elimination of unprofitable product
lines.  The rating also reflects the high concentration in the
highly competitive frozen foods business.

The last rating action was on December 4, 2009, when Moody's
confirmed the B3 Corporate Family Rating, the debt instrument
ratings, and Speculative Grade Liquidity assessments of Pinnacle
Foods Finance, LLC and assigned (P)B2 to its proposed senior
secured bank facilities and (P)Caa2 to its proposed senior
unsecured debt.  This rating action concluded the review for
possible downgrade that began on November 19, 2009 following
Pinnacle's announcement that its wholly-owned subsidiary, Pinnacle
Foods Group, had signed a definitive agreement to acquire Birds
Eye Foods, Inc., in a transaction valued at $1.3 billion.

Headquartered in Mountain Lakes, New Jersey, Pinnacle Foods
Finance LLC-through its wholly-owned operating company, Pinnacle
Foods Group-manufactures and markets branded convenience food
products in the US and Canada.  Its brands include Birds Eye,
Voila, Hungry-Man and Swanson frozen dinners, Vlasic pickles, Mrs.
Paul's and Van de Kamp's frozen prepared sea food, Aunt Jemima
frozen breakfasts, Log Cabin and Mrs.  Butterworth's syrup and
Duncan Hines cake mixes.  Proforma the Birds Eye acquisition,
annual net sales approximate $2.5 billion.  Substantially all of
the capital stock of Pinnacle Foods Finance LLC is owned by
investment funds associated with or designated by The Blackstone
Group.


PINNACLE FOODS: S&P Assigns 'B+' Rating on $442 Mil. Senior Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its has assigned
issue-level and recovery ratings to Mountain Lakes, N.J.-based
Pinnacle Foods Group LLC's proposed $442 million senior secured
Term loan D due 2014 and $400 million senior unsecured notes due
2017.  The issue-level rating on the proposed secured Term Loan D
is 'B+' (one notch higher than the corporate credit rating) with a
recovery rating of '2', indicating S&P's expectation for
substantial (70% to 90%) recovery in the event of a payment
default.

The issue-level rating on the proposed senior unsecured notes is
'CCC+' (two notches lower than the corporate credit rating) with a
recovery of '6', indicating S&P's expectation for negligible (0%
to 10%) recovery in the event of a payment default.

At the same time, S&P raised the issue-level rating on the
company's existing senior secured debt (including a $150 million
revolving credit facility due 2013 and $1.25 billion Term loan B
due 2014 with an outstanding balance of about $1.2 billion as of
June 30, 2010) to 'B+' from 'B' (one notch higher than the
corporate credit rating).  S&P revised the recovery rating to '2',
indicating S&P's expectation for substantial (70% to 90%) recovery
in the event of a payment default, from '3'.

Pinnacle Foods has indicated that it will use proceeds from the
proposed new term loan and unsecured debt issue to repay its
entire senior secured term loan C due 2014.  S&P will withdraw the
issue-level and recovery ratings on the company's existing
$850 million Term Loan C at the close of the transaction.  The
senior secured issue-level upgrade reflects S&P's opinion that
recovery prospects for senior secured lenders will improve with
the proposed transaction because a portion of the company's
outstanding senior secured debt, which ranks above unsecured debt
in right of payment, will be partially refinanced with senior
unsecured debt.

The ratings on Pinnacle Foods Group LLC reflect its highly
leveraged capital structure and participation in the very
competitive, although somewhat recession resistant, packaged foods
industry.  Additional rating factors include the increased scale
of the business following the company's December 2009 acquisition
of the Birds Eye business and Standard & Poor's belief that
ongoing opportunities for operating synergies and continued
manufacturing efficiencies exist.

                           Ratings List

                     Pinnacle Foods Group LLC

      Corporate credit rating                   B/Stable/--

                            New Ratings

           $442 mil sr secd Term loan D due 2014     B+
              Recovery rating                        2
           $400 mil sr unsecd notes due 2017         CCC+
              Recovery rating                        6

                             Upgraded

                      Senior secured rating

                                               To          From
                                               --          ----
     $150 mil revolv credit facility due 2013  B+          B
        Recovery rating                        2           3
     $1.25 bil Term loan B due 2014            B+          B
        Recovery rating                        2           3


POINT BLANK: Equity Committee Taps Morrison Cohen as Co-Counsel
---------------------------------------------------------------
The Official Committee of Equity Security Holders for Point Blank
Solutions Inc. is seeking permission to retain Morrison Cohen LLP,
as co-counsel.

Morrison Cohen will, among other things:

   -- advise the Committee on all corporate and securities issues
      relating to the Debtors;

   -- provide legal advice with respect to its powers and duties
      as the Equity Committee; and

   -- assist in the investigation of the acts, conduct, assets,
      liabilities and financial condition of the Debtors, the
      operation of the Debtors' businesses, and any other matter
      relevant to the cases or to the formulation of a plan or
      plans of reorganization or liquidation or in connection with
      any potential sale of the Debtors' assets.

In a separate motion, the Equity Committee is also seeking
approval to employ Bayard, P.A., as co-counsel.  The Equity
Committee says that MC and Bayard will allocate their delivery of
services to avoid any unnecessary duplication of services.

Joseph T. Moldovan, a partner and the chairman of the Bankruptcy
and Restructuring Practice at MC, tells the Court that MC has not
received any retainer from the Debtors, the Equity Committee, or
any other entity in the Chapter 11 cases.

The hourly rates of MC's personnel are:

    Partners                         $460 - $745
    Senior Counsel                   $410 - $475
    Associates                       $335 - $440
    Paraprofessional                 $160 - $250

The primary attorneys and paralegals expected to represent the
Equity Committee, and their hourly rates are:

     Mr. Moldovan                       $650
     Jack Levy                          $595
     Michael R. Dal Lago                $460
     Mariola Wiatrak, paralegal         $200

Mr. Moldovan assures the Court that MC is a "disinterested person"
as that term is defined in Section 101(14) of the Bankruptcy Code.

Mr. Moldovan can be reached at:

     Morrison Cohen LLP
     909 Third Avenue
     New York, NY 10022
     Tel: (212) 735-8603
     Mobile: (917) 693-9682
     Fax: (917) 522-3103
     E-mail: jmoldovan@morrisoncohen.com

                        About Point Blank

Headquartered in Pompano Beach, Florida, 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).  Laura Davis Jones, Esq., and
Timothy P. Cairns, Esq., serve as bankruptcy counsel to the
Debtor.  Olshan Grundman Frome Rosenweig & Wolosky LLP serves as
corporate counsel.  T. Scott Avila at CRG Partners Group LLC is
the restructuring officer.


POINT BLANK: Equity Committee Taps Bayard, P.A., as Co-Counsel
--------------------------------------------------------------
The Official Committee of Equity Security Holders for Point Blank
Solutions Inc. is seeking permission to retain Bayard, P.A., as
co-counsel.

Bayard, will among things:

   -- prepare on behalf of the Equity Committee necessary
      applications, motions, complaints, answers, orders,
      agreement and other legal papers;

   -- review, analyze and respond to all pleadings and to
      otherwise protect the interest of the Equity Committee; and

   -- consult with the Debtors, the creditors committee and the
      U.S. Trustee concerning the administration of the Debtor's
      estate.

In a separate application, the Equity Committee is also seeking
approval to retain Morrison Cohen LLP as co-counsel.  The Equity
Committee says that the efficient allocation of responsibility for
legals matters between Bayard and MC will reduce the cost of
monitoring, well as the time and expense associated with travel by
MC with respect to matters that can be handled by Bayard.

Neil B. Glassman, a director of Bayard, tells the Court that
Bayard has not received any retainer from the Debtors, the Equity
Committee, or any other entity in the Chapter 11 cases.

Bayard's personnel hourly rates are:

     Directors                            $475 - $840
     Associates/Senior Counsel            $275 - $550
     Paraprofessionals                    $175 - $275

The primary attorneys and paralegal expected to represent the
Equity Committee and their hourly rates are:

     Mr. Glassman                            $840
     Colin R. Robinson                       $475
     Justin R. Alberto                       $285
     Tiffany Matthews, paralegal             $275

Mr. Glassman assures the Court that Bayard is s "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

Mr. Glassman can be reached at:

     Bayard, P.A.
     222 Delaware Avenue, Suite 900
     Wilmington, DE 19801
     Tel: (302) 429-4224
     Fax: (302) 658-6395
     E-mail: nglassman@bayardlaw.com

                        About Point Blank

Headquartered in Pompano Beach, Florida, 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).  Laura Davis Jones, Esq., and
Timothy P. Cairns, Esq., serve as bankruptcy counsel to the
Debtor.  Olshan Grundman Frome Rosenweig & Wolosky LLP serves as
corporate counsel.  T. Scott Avila at CRG Partners Group LLC is
the restructuring officer.


PRM DEVELOPMENT: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: PRM Development, LLC
        c/o PRM Realty Group, LLC
        118 N. Clinton St., Suite LL366
        Chicago, IL 60661

Bankruptcy Case No.: 10-35547

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Northern District of Texas (Dallas)

Judge: Harlin DeWayne Hale

Debtor's Counsel: Gerrit M. Pronske, Esq.
                  PRONSKE & PATEL, P.C.
                  2200 Ross Avenue, Suite 5350
                  Dallas, TX 75201
                  Tel: (214) 658-6500
                  Fax: (214) 658-6509
                  E-mail: gpronske@pronskepatel.com

Estimated Assets: $10,000,001 to $50,000,000

Estimated Debts: $1,000,001 to $10,000,000

The petition was signed by Peter R. Morris, president.

The Debtor did not file its list of largest unsecured creditors
when it filed its petition.

Debtor-affiliates that filed separate Chapter 11 petitions:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
Bon Secour Partners, LLC               09-37580   11/03/09
PRS II, LLC                            09-31436   03/06/09
PRM Realty Group, LLC                  10-30241   01/06/10
PMP II, LLC                            10-30252   01/07/10
Maluhia Development Group, LLC         10-30475   01/21/10
Maluhia One, LLC                       10-30987   02/08/10
Maluhia Eight, LLC                     10-30986   02/08/10
Maluhia Nine, LLC                      10-30988   02/08/10
Long Bay Partners, LLC                 10-35124   07/27/10


QUIKSILVER INC: S&P Puts 'B-' Rating on CreditWatch Positive
------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'B-'
corporate credit rating and other ratings on Quiksilver Inc. on
CreditWatch with positive implications.  Standard & Poor's could
either raise or affirm the ratings when it resolves the
CreditWatch listing.

"The CreditWatch placement follows Quiksilver's announcement that
it has completed a debt for equity exchange of $140 million in
outstanding principal of its Rhone Capital senior secured term
loans for approximately 31.1 million shares of its common stock at
an exchange price of $4.50 per share," said Standard & Poor's
credit analyst Jacqueline Hui."  This could lower adjusted
leverage to 4.8x from 5.4x as of April 30, 2010.  As of April 30,
2010, S&P estimates Quiksilver had about $878 million of reported
debt outstanding, of which $159.4 million outstanding is the Rhone
Capital term loan.  As of Aug. 9, 2010, the outstanding balance of
the Rhone senior secured term loans and associated accrued
interest was approximately $165 million.  The company expects to
secure new term loan financing for the remaining principal amount
of the Rhone term loans and amend and extend its asset based line
of credit agreement in the Americas region.

The CreditWatch listing reflects S&P's expectation of decreased
debt levels and strengthened credit measures associated with the
transaction.  S&P could raise the ratings if the debt for equity
exchange transaction results in material improvement in the
company's credit measures and covenant cushion levels remain above
10%.  Alternatively, S&P could affirm the rating if the company's
credit measures remain in line with 'B-' rating medians.


REGAL ENTERTAINMENT: Moody's Puts 'B3' Rating on $275 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Regal
Entertainment Group's proposed new $275 million senior unsecured
note issuance.  Regal is the publicly traded parent holding
company of Regal Cinemas Corporation's.  Proceeds from the new
issue will be used to retire Regal's $200 million of 6.25%
convertible notes due 2011 and repay the $52 million residual from
a former $200 million 9.3875% senior subordinated notes offering
by Regal Cinemas, with the remainder used to pay fees and expenses
and for general corporate purposes.  Consequently, when viewed on
a consolidated basis, the issue merely substitutes debt for debt
(and junior-ranking capital for like-kind junior-ranking capital)
and is deemed neutral to Regal's overall credit profile as
represented by the B1 corporate family rating, B1 probability of
default rating, stable rating outlook and SGL-1 speculative grade
liquidity rating (indicating very good liquidity).  Loss Given
Default Assessments and specific point estimates have been updated
to reflect the change in capital mix.

Regal operates in an industry that has solid fundamentals; cinema
operation is characterized by relatively stable demand and the
business model is recession-tested.  These dynamics allow ratings
for industry participants to tolerate more financial leverage than
would otherwise be the case.  Regal's ratings reflect the
company's otherwise relatively high leverage.  Ratings also
reflect the advantages of Regal's industry-leading scale and
significant geographic diversity.  However, the company has low
growth prospects and short-term results are sensitive to product
variability from movie studios.  Regal's recent performance has
been fairly consistent; however, the company has not generated
more than nominal free cash flow.  And with growth rates of United
States-based cinema operators likely to be at a discount to the
rate of general economic expansion - which, in turn, is also
likely to be relatively modest - free cash flow expansion in
future periods is likely to be challenging.

Assignments:

Issuer: Regal Entertainment Group

  -- Senior Unsecured Regular Bond/Debenture, Assigned B3, LGD6,
     94%

Outlook Actions:

Issuer: Regal Entertainment Group

  -- Outlook, Changed To Stable From Rating Withdrawn

Moody's most recent rating action concerning Regal was taken on
May 6, 2010, at which time, among other things, the company's bank
credit facility was rated Ba3.

Applying Moody's Loss Given Default Methodology to the capital
structure on a pro forma basis and as of the most recent financial
statement date suggests that a Ba2 rating may be appropriate for
the bank credit facility; however, modest changes in the capital
structure, such as even partial use of the $200 million accordion
feature, would immediately imply a Ba3 rating.  The Ba3 facility
rating consequently considers Moody's assessment of the likelihood
of such prospective future changes in capital mix.  Similarly, the
senior unsecured notes are on the cusp of being rated B2 and B3,
and Moody's have opted to rate the senior unsecured notes B2,
noting the aforementioned risk of potential downgrade should
additional senior secured debt be introduced into the consolidated
capital structure.  Ratings for these instruments remain
unchanged.

Upon completion of the refinancing transaction, as per usual
practice, Moody's will relocate the CFR, PDR, outlook and SGL
rating to Regal from Regal Cinemas.  As well, Moody's database
will be updated to account for the company's May $200 million add-
on notes issue not being completed as was then planned.

Regal's ratings were assigned by evaluating factors Moody's
believes are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of Regal's core industry and Regal's ratings are believed
to be comparable to those of other issuers of similar credit risk.

Regal Entertainment Group is the parent company of Regal
Entertainment Holdings, Inc., which is the parent company of Regal
Cinemas Corporation and its subsidiaries.  The Company operates a
theatre circuit in the United States, consisting of 6,777 screens
in 547 theatres in 38 states and the District of Columbia.  Regal
develops, acquires and operates multi-screen theatres primarily in
mid-sized metropolitan markets and suburban growth areas of larger
metropolitan markets throughout the United States.


REGAL ENTERTAINMENT: S&P Assigns 'B-' Rating on $275 Mil. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned Regal Entertainment
Group's proposed $275 million senior unsecured notes due 2018 its
issue-level rating of 'B-' (two notches lower than S&P's 'B+'
corporate credit rating on the company).  S&P also assigned this
debt a recovery rating of '6', indicating its expectation of
negligible (0% to 10%) recovery for noteholders in the event of
payment default.

S&P expects the company to use net proceeds from these borrowings
to repay or repurchase $200 million of convertible senior notes
due 2011 at Regal Entertainment Group and roughly $51.5 million of
senior subordinated notes due 2012 at Regal Cinemas Corp., as well
as to add to cash balances.

At the same time, S&P affirmed its 'B+' corporate credit rating on
the company, as well as all other existing related ratings.  The
rating outlook is stable.

Standard & Poor's analyzes Regal Entertainment Group and
subsidiary Regal Cinemas Corp. on a consolidated basis.

"The 'B+' rating reflects S&P's expectation that Regal's
aggressive financial policies, along with tough comparisons
against the 2009 holiday season box office, will likely cause
leverage to remain elevated in the high-5x range over the
intermediate term," noted Standard & Poor's credit analyst Jeanne
Shoesmith.  "Revenue and EBITDA trends are highly dependant on the
performance of the U.S. box office.  Other factors include the
company's participation in the mature and highly competitive U.S.
movie exhibition industry, exposure to the fluctuating popularity
of Hollywood films, and the risk of increased competition from the
proliferation of entertainment alternatives."

Regal is the largest motion picture exhibitor in the U.S. based on
the number of screens; the company has 6, 777 screens in 547
theaters in 38 states and the District of Columbia as of July 1,
2010.  Regal has a modern theater circuit relative to other major
theater chains, and its operations are geographically diversified
in the U.S. The company's aggressive cost management and cost
advantages related to its large size are the main reasons its
profit margin compares well with those of its rivals.  Its EBITDA
margin, at approximately 19%, is better than most peers' and has
shown good stability.  However, Regal's participation in a highly
competitive business with high fixed costs and substantial
variable costs, as well as its exposure to the fluctuating
popularity of films, make the company's discretionary cash flow
sensitive to swings in EBITDA.  For these reasons, S&P regard
Regal's business risk profile as weak.


REITTER CORPORATION: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Reitter Corporation
        MSC 250, Ave Wiston Chuchchill 138
        San Juan, PR 00926

Bankruptcy Case No.: 10-07152

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Debtor's Counsel: Alexis Fuentes Hernandez, Esq.
                  FUENTES LAW OFFICES
                  P.O. Box 9022726
                  San Juan, PR 00902-2726
                  Tel: (787) 722-5216
                  Fax: (787) 722-5206
                  E-mail: alex@fuentes-law.com

Estimated Assets: $10,000,001 to $50,000,000

Estimated Debts: $10,000,001 to $50,000,000

The petition was signed by Dr. Jorge A. Valdesuso, president.

Debtor's List of 20 Largest Unsecured Creditors:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
Department of Treasury    taxes, interest &      $2,242,386
of PR                     penalties
P.O. Box 9022501
San Juan, PR 00902-2501

Internal Revenue Service  taxes, interest &      $1,887,946
P.O. Box 21126            penalties
Philadelphia,
PA 19114-0326

Autoridad de Energia      utility bills          $579,879
Electrica
P.O. Box 363508
San Juan, PR 00936

State Insurance Fund      worksmens compensation $547,620
P.O. Box 365028           insurance
San Juan, PR 00936-5028

GMS Medical Group, PSC    professional services  $331,793
PMS 99, Box 2500
Trujillo Alto, PR 00977

Department of Labor       SUTA                   $251,030
of PR
P.O. Box 1020
San Juan, PR 00919-1020

Medintek, Corp.           medical equipment      $205,000
PMB 42
382 San Claudio Ave.
San Juan, PR 00926-9910

Prestige Medical Group,   medical services       $197,978
LJC

AON Risk Services         insurance              $129,150
of PR, Inc.

Info Medika Inc.          lease of software      $120,682

Munoz, Boneta,            legal services         $112,094
Peralta PSC

Irma Vargas Ramos, MD     professional services  $60,040

DP & G General Contractor construction services  $57,507

Borinquen Anesthesiology  professional services  $53,857

Rafael Diaz Gautier       professional services  $48,848

Drogueria Castillo        medical supplies       $46,070

Javier Castillo           professional services  $45,100

Interboro Systems Corp.   payroll software       $33,926

Puerto Rico Sales &       medical equipment      $29,023
Med. Serv.

Ballester Hermanos        supplies               $16,288


REXNORD LLC: S&P Affirms 'B' Corporate Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
ratings, including the 'B' corporate credit rating, on Rexnord
LLC.  At the same time, S&P revised the outlook to stable from
negative.

"The outlook revision reflects S&P's expectation that Rexnord is
likely to continue to improve credit measures this year despite
mixed end-market conditions," said Standard & Poor's credit
analyst Dan Picciotto.  "While Rexnord remains highly leveraged,
the company made progress on extending its debt maturity profile
earlier this year through a $1.145 billion senior unsecured note
offering and has maintained adequate liquidity.  S&P expects
somewhat difficult conditions for the company's water management
platform to be offset by a better environment for its process and
motion control platform.  S&P expects this to result in modest
revenue and EBITDA growth in fiscal 2011, and for the company to
generate free cash flow in excess of $70 million."

The ratings on Rexnord reflect the company's highly leveraged
financial risk profile which is partly mitigated by its fair
business risk profile, which is itself characterized by the firm's
leading market positions and fair product and end-market
diversity.  The company reported about $1.55 billion in sales
during the 12 months ended July 3, 2010.

The outlook is stable.  The ratings primarily reflect Rexnord's
highly leveraged financial risk profile.  S&P could lower the
ratings if continued weakness in the company's operating
performance limits improvement in credit measures.  For instance,
if the company appears unlikely to maintain FFO to total debt of
more than 5% or if S&P expects it to be unable to generate
positive free cash flow, S&P could lower the ratings.  "S&P could
raise the ratings if S&P expects operating performance to improve
so that FFO to total debt appears likely to exceed 10%.  This
could occur if, for example, Rexnord reduces debt by about
$300 million (possibly through excess cash balances and free
operating cash flow generation) and FFO rebounds to levels
comparable with 2008 with further improvement anticipated," Mr.
Picciotto added.


RITE AID: Plans $650 Million First-Lien Notes Offering
------------------------------------------------------
Rite Aid Corporation announced its intention to offer $650 million
aggregate principal amount of senior secured notes due 2020.  The
notes will be unsecured, unsubordinated obligations of Rite Aid
Corporation and will be guaranteed by substantially all of Rite
Aid's subsidiaries.  The guarantees will be secured on a senior
lien basis.

The proceeds of the offering will be used, together with available
cash, to repay and retire Rite Aid's $648.0 million Tranche 4 Term
Loan due 2015 under its senior secured credit facility, and to
fund related fees and expenses.

Rite Aid also announced its intention to amend or replace its
$1.175 billion existing revolving credit facility due 2012 with a
new $1.175 billion revolving credit facility due 2015, for which
Rite Aid had obtained $1.115 billion in commitments as of August
6, 2010.  The new revolving credit facility is expected to have
reduced pricing and a five-year maturity, although the maturity
shall be April 18, 2014 in the event that Rite Aid does not repay,
refinance or otherwise extend the remaining term loans under its
senior credit facility prior to that time and meets certain other
conditions.  Rite Aid is also seeking amendments to provide more
flexibility under certain covenants in its senior credit facility.

The notes offering is not subject to the entry into the new
revolving credit facility or the related credit facility
amendments.  The entry into the new revolving credit facility and
the related amendments will be contingent upon the consummation of
the notes offering.

The notes and the related subsidiary guarantees will be offered in
the United States to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended and outside
the United States pursuant to Regulation S under the Securities
Act.  The notes and the related subsidiary guarantees have not
been registered under the Securities Act and may not be offered
or sold in the United States without registration or an applicable
exemption from the registration requirements.

                          About Rite Aid

Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation
(NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore
chain on the East Coast and the third largest drugstore chain in
the U.S.  The Company operates more than 4,900 stores in 31 states
and the District of Columbia.

                           *     *     *

According to the Troubled Company Reporter on Aug. 11, 2010,
Moody's Investors Service assigned a B3 rating to Rite Aid
Corporation's proposed $650 million senior secured first lien
notes due 2020.  All other ratings including the company's Caa2
Corporate Family Rating, Caa2 Probability of Default Rating, and
SGL-3 Speculative Grade Liquidity rating were affirmed.  The
rating outlook is stable.

Standard & Poor's Ratings Services in August also said it assigned
its 'B+' issue rating and '1' recovery rating to Harrisburg, Pa.-
based Rite Aid Corp.'s proposed $650 million senior secured notes.
The '1' recovery rating indicates S&P's expectation for very high
(90- 100%) recovery in the event of a payment default.  At the
same time, S&P affirmed all ratings on the company, ncluding the
'B-' corporate credit rating. The outlook is stable.


RITE AID: Fitch Assigns 'BB-/RR1' Ratings on $650 Mil. Notes
------------------------------------------------------------
Fitch Ratings has assigned 'BB-/RR1' ratings to Rite Aid
Corporation's $650 million 8% senior first lien secured notes due
2020.  The Rating Outlook is Stable.  Proceeds from the offering
will be used to retire Rite Aid's $648 million Tranche 4 Term Loan
due June 2015.  The refinancing will help stagger and extend the
debt maturity profile with $191 million due in 2013 and
$3.4 billion (or 54% of total pro forma debt of $6.27 billion) due
between 2014 and 2016 rather than the $4.2 billion due previously.

In addition, Rite Aid is also seeking to amend and extend its
$1.175 billion revolving credit facility due Sept. 30, 2012, with
a new $1.175 billion revolving credit facility due 2015.  Rite
Aid had obtained $1.115 billion in commitments as of Aug. 6, 2010.
The new revolving credit facility is expected to have reduced
pricing and a five-year maturity, although the maturity will be
April 18, 2014, in the event that Rite Aid does not repay,
refinance or otherwise extend the remaining term loans
($1,079 million Tranche 2 Term Loan and $343 million Tranche 3
Term Loan due June 1, 2014) under its senior credit facility prior
to that time and meets certain other conditions.  Rite Aid is also
seeking amendments to provide more flexibility under certain
covenants in its senior credit facility.

The rating reflect Rite Aid's significant high leverage and
limited capital for investment and operating statistics that
significantly trail its two major competitors.  The rating also
reflect Rite Aid's strong market share position as the third
largest U.S. drug retailer and management's concerted efforts to
improve the productivity of its store base and manage liquidity
through working capital reductions and other cost cutting
initiatives.

In the near term, anemic pharmacy same-store sales and a decline
in higher margin front-end same-store sales are pressuring gross
margins.  For the latest 12-month period ended May 29, 2010,
adjusted FIFO gross margin declined 70 basis points year over year
with an average front-end same store decline of approximately 3%
and EBITDA (adjusted for non-cash and one time items) declined
approximately $50 million to $925 million.  Adjusted debt/EBITDAR
stood at 7.4 times and EBITDAR/interest + rent stood at 1.25x.
Free cash flow is expected to be in the $50-$100 million range in
FY2011 and as a result, credit metrics are expected to remain at
or be slightly weaker than current levels.  Rite Aid's ability to
appropriately invest in its stores given its current free cash
flow levels and indebtedness remains a concern, as Fitch views the
projected $250 million in capital spending for fiscal 2011 below
levels required to remain competitive.

The issue ratings for the new $650 million notes are derived from
the Issuer Default Rating and the relevant Recovery Rating.  The
revolving credit facility, term loans, the $410 million senior
secured notes due June 2016 and the new bonds have a first lien on
the company's cash, accounts receivable, investment property,
inventory and scrip lists, and are guaranteed by Rite Aid's
subsidiaries giving them an outstanding recovery (91%-100%).
Fitch's recovery analysis assumes a liquidation value under a
distressed scenario of approximately $6 billion on inventory,
receivables, owned real estate and prescription files.


SCO GROUP: Trustee Seeks to Sell SCO Software Business
------------------------------------------------------
The trustee in charge of SCO Group Inc.'s estate has asked a
bankruptcy court for permission to auction off its software
business in the wake of the company's loss in a copyright suit
against Novell Inc., Bankruptcy Law360 reports.

The SCO Group (SCOXQ.PK) -- http://www.sco.com/-- is a provider
of UNIX software technology.  Headquartered in Lindon, Utah, SCO
has a worldwide network of resellers and developers.

The Company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on September 14, 2007 (Bankr. D. Del. Lead
Case No. 07-11337).  Paul Steven Singerman, Esq., and Arthur
Spector, Esq., at Berger Singerman P.A., represent the Debtors in
their restructuring efforts.  James O'Neill, Esq., and Laura Davis
Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, are the
Debtors' Delaware and conflicts counsel.  Epiq Bankruptcy
Solutions LLC acts as the Debtors' claims and noticing agent.
The United States Trustee failed to form an Official Committee of
Unsecured Creditors in the Debtors' cases due to insufficient
response from creditors.

As of January 31, 2009, the Company had $8.78 million in total
Assets, $13.30 million in total liabilities, and $4.52 million in
stockholders' deficit.


SEA ISLAND: Files for Chapter 11 to Sell to Oaktree/AveCap
----------------------------------------------------------
Sea Island Company has reached an agreement to sell substantially
all of its assets to Sea Island Acquisition LP, a limited
partnership formed by investment funds managed by the global
investment firms Oaktree Capital Management, L.P. and Avenue
Capital Group.  The sale agreement follows a robust process -
begun late last year - in which Sea Island Company reviewed all of
its strategic alternatives and determined that this agreement is
the best possible outcome for the Company and its stakeholders.
Under the terms of the agreement, the Company's businesses will
remain intact and retain their core values and culture.  After the
sale, the businesses will continue under the leadership of Bill
Jones III, Chairman and Chief Executive Officer, and David
Bansmer, President and Chief Operating Officer.

To facilitate the sale, Sea Island Company, Sea Island Coastal
Properties, LLC and their subsidiaries filed voluntary petitions
for relief under Chapter 11 of the United States Bankruptcy Code.
The Chapter 11 cases and sale enjoy the support of all of the
Company's secured lenders and are expected to be completed by
year-end.  In the interim, the Company has secured a debtor-in-
possession loan from certain of its secured bank lenders,
providing access to additional liquidity should it be required
during this period.

The action, filed in the Southern District of Georgia in
Brunswick, allows the Company's businesses to continue normal
operations.  All of Sea Island Company's operations, including The
Lodge, The Cloister, The Cloister Spa and Fitness Center, The Sea
Island Club, the Ocean Forest Golf Club, The Sea Island Beach
Club, as well as the golf facilities, are open and business will
continue without any disruptions to the superior service provided
to members and guests.  All reservations will be honored and
guests will enjoy all of the facilities and experiences they
booked at the time of their reservation.

In conjunction with its Chapter 11 filing, Sea Island Company
today filed a Plan providing for the sale of substantially all of
its assets free of its approximately $600 million of existing
secured debt. SIA will own and operate the resort and golf courses
without any interruption in services.  All obligations owed by Sea
Island Company to its trade vendors will be assumed by SIA.  All
existing employees of Sea Island Company will be offered
employment by SIA.  All club members will be offered the
opportunity to continue to enjoy the same benefits and services at
their respective clubs and receive full credit for their deposits
paid.

The Board of Directors of Sea Island Company has approved the
Asset Purchase Agreement, which is subject to a court-supervised
auction process.  The agreement was filed with the Court today,
along with the DIP financing commitment and a variety of "First
Day" motions that will allow the Company to continue to conduct
its business as usual.

"We are very pleased to have reached an agreement with an
investment group that has come to know Sea Island well and
appreciate what made us special from the start," stated Bill Jones
III, Chairman and Chief Executive Officer of Sea Island Company.
"Our commitments to our members, employees, guests and community
were carefully considered throughout our review of strategic
alternatives and we believe this is the best outcome.  The
purchasers have seen first-hand the value of what we have built -
the finest collection of resort assets in the world with the
highest accolades and best service. The additional financial
strength gained through the transaction provides an ideal
foundation for our future."

Sea Island Company President and Chief Operating Officer David
Bansmer added, "The actions are the culmination of a comprehensive
process initiated by Sea Island Company's management and Board of
Directors to put our financial challenges definitively in the past
and secure a more certain future for our businesses.  After
completing the Chapter 11 process and the related asset purchase
agreement, our businesses will be financially strong - with the
same superior service and southern hospitality."

Sea Island Company's financial advisors are FTI Consulting and
Goldman Sachs & Co., and its legal advisor is King & Spalding LLP.

                      Road to Bankruptcy

Carrick Mollenkamp and Lingling Wei, writing for The Wall Street
Journal, report that Sea Island hit a financial wall when it
couldn't repay debt taken on by Bill Jones III, the company's CEO
and the fourth generation of his family to lead Sea Island, as
part of a $395 million renovation and expansion in 2006 and 2007.

The Journal relates that Sea Island's sale and bankruptcy will
cause a group of creditors including Bank of America Corp., the
Bank of Scotland unit of U.K. bank Lloyds Banking Group and
Synovus Financial Corp., a regional bank based in Columbus, Ga.,
to relinquish $340 million in loans.  The lenders approved the
sale Friday, and a federal bankruptcy-court judge in Brunswick,
Ga., is expected to decide how they will divide the $197.5 million
in cash proceeds from the sale.

According to the Journal, it is possible that the bankruptcy case
will trigger an auction of Sea Island, but the odds that the sale
to Oaktree and Avenue will be torpedoed are seen as slim.
Spokespeople at Bank of America, Lloyds and Synovus declined to
comment.

Sea Island Co. is a genteel resort for wealthy vacationers.  The
84-year-old resort is famed for its Cloister hotel, four golf
courses, exclusive clubs, a private development called Ocean
Forest Golf Club, and hosting a Group of Eight summit in 2004.

                  About Oaktree Capital Management

Headquartered in Los Angeles, Oaktree Capital Management L.P. is
an international investment manager headquartered in Los Angeles
with approximately $75 billion in assets under management as of
June 30, 2010.  The firm emphasizes an opportunistic, value-
oriented and risk-controlled approach to investments in fixed
income, private equity and real estate.  Oaktree's clients include
primarily institutional investors, including pension plans,
foundations and sovereign funds, and high net worth individuals.
Oaktree was founded in 1995 by a group of principals who have
worked together since the mid-1980s.

                   About Avenue Capital Group

Avenue Capital Group is a global investment firm focused on
undervalued opportunities in the private and public debt, equity
and real estate in the U.S., Asia and Europe.  The firm is
headquartered in New York, with offices in London, Luxembourg and
Munich, and eight offices throughout Asia.  Avenue oversees
approximately $18.2 billion of assets under management as of June
30, 2010 on behalf of a sophisticated global base of institutional
investors, the majority of which is pension funds, and also
includes family offices, foundations, insurance companies and
sovereign wealth funds.  Avenue was founded in 1995 and draws on
the skills and experience of more than 300 employees worldwide.

                         About Sea Island

Sea Island -- http://www.seaisland.com/-- is a private resort and
real estate development company founded in 1926, Sea Island
Company owns and operates Sea Island Resorts, featuring two of the
world's most exceptional destinations: the Forbes Five-Star
Cloister at Sea Island and The Lodge at Sea Island Golf Club, a
Forbes Five-Star and AAA Five-Diamond property.  Sea Island
Resorts encompasses The Golf Learning Center, two championship
golf courses, the Forbes Five-Star Georgian Room restaurant, Sea
Island Beach Club, Camp Cloister, the Tennis Club, Yacht Club,
Shooting School and Forbes Five-Star Cloister Spa.  A recent
transformation of the resort has married the company's storied
history with unparalleled 21st century amenities.


SEITEL INC: Files Form 10-Q; Posts $22.4MM Net Loss in Q2 2010
--------------------------------------------------------------
Seitel, Inc., filed its quarterly report on Form 10-Q, reporting a
net loss of $22.6 million on $33.0 million of revenue for the
three months ended June 30, 2010, compared with a net loss of
$28.0 million on $22.4 million of revenue for the same period of
2009.

The Company's balance sheet at March 31, 2010, showed
$477.6 million in total assets, $475.3 million in total
liabilities, and stockholders' equity of $2.3 million.

As of June 30, 2010, the Company had $41.3 million in consolidated
cash, cash equivalents and short-term investments.  Included in
this balance is restricted cash of $177,000.

Cash flows provided by operating activities were $32.6 million and
$22.3 million for the six months ended June 30, 2010, and 2009,
respectively.  Operating cash flows for 2010 increased from 2009
primarily due to an increase in cash resales and the related cash
collections.

A full-text copy of the Quarterly Report is available for free at:

              http://researcharchives.com/t/s?6870

                       About Seitel, Inc.

Based in Houston, Seitel, Inc. -- http://www.seitel-com/--  is a
provider of seismic data to the oil and gas industry in North
America.  Seitel's data products and services are critical for the
exploration for, and development and management of, oil and gas
reserves by oil and gas companies.  Seitel has ownership in an
extensive library of proprietary onshore and offshore seismic data
that it has accumulated since 1982 and that it licenses to a wide
range of oil and gas companies.

                         *     *     *

Seitel Inc. carries a 'CCC' corporate credit rating from Standard
& Poor's Ratings Services.  In March 2010, S&P affirmed the 'CCC'
corporate credit and revised the outlook to "developing" from
"negative."  S&P said it could raise the rating if financial
performance continues to improve on terms similar to fourth-
quarter 2009 results and the company is able to maintain adequate
liquidity to fund its August 2010 interest payment.  However, S&P
also remains highly concerned about the possibility of a decline
in natural gas drilling activity later this year and into 2011,
which could quickly lead to liquidity problems for the company.


SHOREBANK CORP: May Face Closure Absent More Bail-Out Funds
-----------------------------------------------------------
ShoreBank Corp. may be forced out of business after failing to win
$75 million of federal bailout funds, James Sterngold and Robert
Schmidt at Bloomberg News reports, citing three people with direct
knowledge of the matter.

Bloomberg relates that ShoreBank raised more than $145 million in
May 2010 from General Electric Co. and banks including JPMorgan
Chase & Co. and Goldman Sachs Group Inc.  That money was
contingent on more federal funding that is now unlikely to be
released, the people said, speaking anonymously because the matter
is private, according to Bloomberg.

"It looks like they are just out of options," said Gerard Cassidy,
a bank analyst at RBC Capital Markets in Portland, Maine,
according to Bloomberg.  He added, "Without a lot of private
equity, their hands may be tied and the only option might be
putting it in receivership."

                      About ShoreBank Corp.

Founded in 1973, ShoreBank Corp. has built a reputation on lending
to low-and-moderate income borrowers.  The holding company's
subsidiary banks and not-for-profits help fund homeowners,
investors, small businesses, and faith-based and not-for-profit
organizations in diverse communities in the Midwest and Pacific
Northwest.  Northern Initiatives, ShoreBank Neighborhood
Institute, ShoreBank Enterprise Cascadia, and ShoreBank Enterprise
in Cleveland and Detroit offer small business loans, business
development assistance, and employment services.  ShoreBank has
also taken its message overseas with ShoreBank International and
ShoreCap Exchange, both of which offer microfinance and other
services.

ShoreBank posted a $119 million loss in 2009 and a $39.6 million
loss in the first half of this year, according to Federal Deposit
Insurance Corp. figures.  It had a net loss of $9.3 million in
2008.

Bloomberg notes that the community bank, with assets of about
$2.2 billion, is under a March order from the FDIC to boost
capital within 60 days.  Tier 1 capital shrank to $4.1 million at
the end of June from $26.3 million as of March 31 and $43.5
million at the end of last year, according to the FDIC.


SKILLED HEALTHCARE: Westfield Capital Owns 16.63% of Common Stock
-----------------------------------------------------------------
Westfield Capital Management Company, LP, disclosed in a
regulatory filing Monday that as of July 31, 2010, it may be
deemed to beneficially own 3,453,048 of Skilled Healthcare Group
Inc.'s common stock, representing 16.63% of the Company's common
stock.

The shares of the security listed in this Schedule 13G are owned
of record by clients of Westfield Capital Management Company,
L.P., in its capacity as investment adviser.  Westfield Capital's
clients have the right to receive, or the power to direct the
receipt of, dividends or proceeds from the sale of the shares.  To
the best of Westfield Capital's knowledge, no client has such
right or power with respect to more than five percent of this
class of security.

A full-text copy of Wesfield Capital's amended Schedule 13G is
available for free at http://researcharchives.com/t/s?687f

                About Skilled Healthcare Group

Skilled Healthcare Group, Inc. --
http://www.skilledhealthcaregroup.com/-- based in Foothill Ranch,
California, operates long-term care facilities and provides a
variety of post-acute care services.  The Company operates skilled
nursing facilities, assisted living facilities, hospice and home
health locations.  Further, the company provides ancillary
services such as physical, occupational and speech therapy in its
facilities and unaffiliated facilities and is a member of a joint
venture providing institutional pharmacy services in Texas.
Skilled Healthcare recognized revenues of approximately
$761 million for the trailing 12-month period ended March 31,
2010.

On July 7, 2010, the company announced that a jury in Humboldt
County, California returned a verdict against the company with
initial damages awarded to plaintiffs amounting to $671 million.
Reportedly, the $671 million is composed of $613 million in
statutory damages and $58 million in restitutionary damages.  The
case related to a California statute that requires nursing homes
to maintain 3.2 nursing hours per patient per day.  The total
damages were assessed at a rate of $500 per-patient per-day that
the 22 nursing facilities involved in the suit were in violation
of the law.

Following the verdict, S&P lowered the Company's corporate credit
rating to 'CCC' from 'B+'.  The Company carries a 'B2' corporate
family rating, under review for downgrade, from Moody's Investors
Service.


SPHERIS INC: Seeks Nod of Compromise With MedQuist, CBay
--------------------------------------------------------
Carla Main at Bloomberg News reports Spheris Inc., now known as SP
Wind Down Inc., is asking the Bankruptcy Court to approve a
compromise it has reached with MedQuist Inc. and CBay Inc.

According to the report, the compromise arises from the sale of
the Spheris assets, which included the stock of non-debtor unit
Spheris India Private Ltd. under an April 15 stock purchase
agreement with MedQuist and CBay.  After the sale closed April 22,
"various disputes" arose between Spheris and MedQuist relating to
the payment of COBRA medical insurance costs.  Spheris claimed it
was not liable for COBRA costs under the stock purchase agreement.
MedQuist filed a proof of claim for $21.3 million on the estimated
COBRA claim, which Spheris disputed.

Th report relates that the parties, following negotiations,
reached as settlement under which MedQuist will be allowed an
administrative claim of $750,000.  It agreed to give MedQuist and
CBay until Aug. 25 to raise objections to the plan of
reorganization, by which time the settlement will have been
approved.

                        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 serves 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.


SPONGETECH DELIVERY: Two Execs Plead Not Guilty in Fraud Case
-------------------------------------------------------------
Two top executives of Spongetech Delivery Systems Inc. have denied
any wrongdoing in a criminal case alleging securities fraud and
other claims, Bankruptcy Law360 reports citing an unnamed source.

Spongetech's former CEO Michael Metter and Chief Financial Officer
Steven Moskowitz pled not guilty in the U.S. District Court for
the Eastern District of New York on Tuesday, according to Law360.

As reported in the Troubled Company Reporter on Aug. 10, 2010,
Dow Jones' DBR Small Cap said former top executives of Spongetech
Delivery Systems Inc. -- Michael Metter, the former chief
executive, and Steven Moskowitz, the chief financial officer
-- were charged in a six-count indictment with for allegedly
defrauding investors by reporting falsely and grossly overstated
sales figures.  The former executives were originally arrested in
the matter in May.

                     About Spongetech Delivery

New York-based Spongetech Delivery Systems Inc. distributes a line
of hydrophilic polyurethane and polyurethane sponge cleaning and
waxing products.  Spongetech filed for Chapter 11 bankruptcy
protection on July 9, 2010 (Bankr. S.D.N.Y. Case No. 10-13647).
The Company estimated $10 million to $50 million in total assets
and $1 million to $10 million in total liabilities.  An affiliate,
Dicon Technologies, LLC, filed a separate Chapter 11 petition on
June 24, 2010 (Bankr. S.D.N.Y. Case No. 10-41275).

The Hon. Stuart M. Bernstein in July 2010 authorized Tracy Hope
Davis, the Acting U.S. Trustee for Region 2, to appoint a Chapter
11 trustee for Spongetech Delivery Systems, Inc.  The U.S. Trustee
sought permission from Judge Bernstein to appoint a Chapter 11
trustee or, in the alternative, convert the Debtor's Chapter 11
bankruptcy case to Chapter 7.

Edward Neiger, Esq., at Neiger, LLP, and M. David Graubard, Esq.,
at Kera & Graubard, assist the Debtors in their restructuring
efforts.


SPX CORPORATION: Fitch Assigns 'BB+' Rating on Senior Notes
-----------------------------------------------------------
Fitch Ratings expects to assign a rating of 'BB+' to SPX
Corporation's planned private placement of $350 million of seven-
year senior unsecured notes.  SPX intends to use the proceeds to
pay down outstanding debt under senior secured credit facilities
together with termination costs for related interest rate swaps.

Fitch's ratings for SPX incorporate the company's financial
flexibility and consistent execution of its operating and
financial strategies.  As a result of weak conditions in some of
SPX's end-markets, leverage is currently above the range
anticipated by Fitch over the long term.  As a significant portion
of the company's revenue is in mid-to-late cycle businesses,
leverage could continue to be weak through 2010.  At July 3, 2010,
debt/EBITDA was approximately 2.5 times as calculated by Fitch.
Debt/EBITDA would be slightly below 2.4x when adjusted to include
joint venture earnings.  SPX targets gross debt/EBITDA of 1.5x to
2.0x as defined in its bank agreement.  The ratio, which stood at
2.2x at July 3, 2010, includes certain adjustments for non-
recurring or non-cash charges and is usually understated when
compared to Fitch's calculation.

Concerns about near-term pressure on SPX's metrics are mitigated
by the company's commitment to its leverage target and its ability
to generate positive free cash flow even at the bottom of its
business cycle.  Free cash flow in 2010 is expected to be around
$130 million-$170 million after dividends in 2010.  This level is
lower than strong levels reported in 2009 when the company
benefited from lower working capital requirements and income tax
payments.  An improvement in the company's credit metrics will
depend on an eventual recovery in its end-markets, particularly in
its transformer business where low demand reflects pressures in
the U.S. electrical transmission and distribution market.  Other
markets are recovering sooner such as the automotive market and
certain industrial businesses.  In addition, SPX's previous
restructuring is supporting margins in a difficult environment.
Other rating concerns include risks related to future acquisitions
and net pension liabilities which could potentially result in
higher contributions.  SPX plans to contribute $30 million to its
pension plans in 2010.

Liquidity at July 3, 2010, included cash balances of $408 million,
much of which is located overseas, and approximately $500 million
of net availability under secured bank credit facilities that
include domestic and foreign currency revolvers.  Liquidity was
offset by $174 million of debt due within one year.  The new debt
to be issued by SPX will help address the company's secured bank
facilities scheduled to mature in September 2012.  Most of SPX's
other debt consists of $500 million of 7.625% notes due in 2014.

Fitch currently rates SPX:

  -- Issuer Default Rating 'BB+';
  -- Senior secured bank facilities 'BB+';
  -- Senior unsecured debt 'BB+'.

The Rating Outlook is Stable.  The ratings cover nearly
$1.3 billion of outstanding debt as of July 3, 2010.


SPX CORPORATION: Moody's Assigns 'Ba2' Rating on $350 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to SPX
Corporation's proposed $350 million senior unsecured notes due
2017.  It is anticipated that net proceeds from the offering will
be used to pay down outstanding amounts under the company's senior
credit facilities.  In a related action, Moody's affirmed the
company's existing CFR and PDR rated Ba1, senior unsecured notes
rated Ba2, and it's SGL-1 rating.  The ratings outlook remains
stable.

The Ba2 rating on the company's new senior unsecured notes reflect
their unsecured nature and the priority of claim in the capital
structure.  The senior unsecured notes are junior to the term loan
and revolver and are rated below the CFR due to the amount of debt
that is senior in the capital structure.  The rating on the notes
could increase to the level of the CFR if there were there less
senior debt above them per Moody's loss given default methodology.

SPX's Ba1 corporate family rating reflects the company's low
leverage, good coverage metrics, and strong liquidity.  The rating
incorporates the expectation that the company's financials have
been stabilizing and that as the economy strengthens, SPX should
see improving credit metrics but that these metrics are unlikely
to improve outside the range of the Ba1 ratings category.
Moreover, as the proceeds of the contemplated transaction are to
be applied to repay debt, the company's leverage will not change
materially.  Furthermore, although its cost of capital is hurt by
the higher cost of the debt being issued compared to its term
loan, coverage ratios will not decrease materially.  These
strengths are balanced against the cyclicality of its end markets.
SPX must contend with weakened demand due to the weak U.S. and
Western European economies.  Constraining the ratings further is
SPX's strategy of partial growth through acquisition and a
historically active share repurchase program.

SPX's SGL-1 speculative grade liquidity rating continues to
reflect Moody's belief that the company will maintain a very good
liquidity profile over the next twelve months.  Moody's expects
that SPX's operating cash flow generation, availability under its
$600 million committed revolving credit and cash and equivalents
at the end of 2Q10 totaling $408 million to be sufficient to fund
the company's normal operating requirements and capital spending
needs.

The stable outlook reflects Moody's expectations that SPX's debt
protection measures and very good liquidity position the company
well to weather the economic downturn.  The stable outlook hinges
on the view that an improving economy in 2010 and into 2011 will
support an improvement in the company's revenues, backlog, and
overall credit metrics.  SPX's ability to weather the economic
cycle benefits from its large scale, scope, as well as product and
geographic diversity.  The ratings are unlikely to be upgraded
over the short term as some of its businesses remain weak and its
credit metrics are not expected to improve meaningfully in the
near term.  The ratings could be downgraded if debt/EBITDA were to
deteriorate meaningfully.

Assignments:

Issuer: SPX Corporation

  -- Senior Unsecured Regular Bond/Debenture, Assigned Ba2; LGD4,
     65%

Affirmations/assessment change:

Issuer: SPX Corporation

  -- Senior Unsecured Regular Bond/Debenture, affirmed at Ba2, LGD
     changed to LGD4, 65% from LGD5, 80%

The last rating action on SPX Corporation was on December 6, 2007,
at which time Moody's affirmed the company's Ba1 Corporate Family
Rating and stable outlook.

SPX Corporation is a global, multi-industrial manufacturer.
Operating in over 35 countries, the company provides a diverse
array of products and services within its three core business
segments: flow technology (approximately 34% of revenues); thermal
equipment and services (33%); and, test and measurement (17%).
The fourth business line, industrial products and services (16%)
includes industrial operations that are North American focused and
lack global scale.  SPX has indicated that some of the businesses
in this segment are not core to the company's growth strategy.
SPX derives approximately 60% of its revenues from infrastructure-
related products and service, including cooling systems, heat
exchangers, and power transformers.  SPX also provides pumps,
metering systems and valves for various global markets including
oil and gas, chemical and petrochemical exploration, and
refinement.  Revenues for the LTM period through July 3, 2010
totaled approximately $4.8 billion.


SPX CORP: S&P Assigns 'BB+' Rating on $350 Mil. Senior Notes
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB+' issue-level rating to Charlotte, N.C.-based SPX Corp.'s
offering of $350 million senior unsecured notes.  At the same
time, S&P raised the issue-level rating on SPX's existing
$500 million senior unsecured notes to 'BB+' from 'BB'.  The
ratings on both issues are the same as SPX's corporate credit
rating.  S&P revised the recovery rating on the existing
$500 million senior unsecured notes to '3' from '5' and assigned
a recovery rating of '3' to the new notes, indicating meaningful
(50% to 70%) recovery in a payment default scenario.

"The company intends to use the net proceeds from the $350 million
senior unsecured notes offering to redeem part of its unrated
senior secured term loan," said Standard & Poor's credit analyst
Sarah Wyeth.  "The ratings revision on the $500 million senior
unsecured notes reflects the expected decrease in the outstanding
amount of SPX's secured term loan, which improves the recovery
prospects on the unsecured debt," she continued.

The ratings on SPX reflect S&P's view of the company's fair
business risk profile and significant financial risk profile.  The
company serves a wide variety of industrial markets operating in
four segments: thermal equipment (about 33% of revenues in the
quarter ended July 3, 2010); test and measurement (19%); flow
technology (32%); and industrial (16%).

                           Ratings List

                         Ratings Assigned

                            SPX Corp.

            $350 million senior unsecured notes    BB+
             Recovery rating                       3

                          Ratings Raised

                                              To        From
                                              --        ----
      $500 million senior unsecured notes     BB+       BB
       Recovery report                        3         5

                            SPX Corp.

       Corp. credit rating                    BB+/Stable/--


SSI INVESTMENTS: Moody's Assigns Junk Rating on $310 Mil. Notes
---------------------------------------------------------------
Moody's Investors Service assigned a Caa1 rating to $310 million
of new senior notes issued by SSI Investments II Limited, an
indirect holding company which completed the acquisition of
SkillSoft PLC in May 2010.  The notes were issued in connection
with the acquisition of SkillSoft PLC and replaced the previously
contemplated $310 million of senior bridge loan facility, which
was never drawn.  As a result, Moody's has withdrawn the ratings
for the $310 million of unsecured bridge loan.  SSI's B2 Corporate
Family Rating and the ratings for the existing senior secured
credit facilities at its subsidiary, SkillSoft Corporation, did
not change.

Moody's has taken these rating actions:

Ratings Assigned:

Issuer -- SSI Investments II Limited

* $310 million senior unsecured notes due 2018 (SSI Co-Issuer LLC
  as co-issuer of the notes) -- Caa1, LGD5 -- 80%

Ratings Withdrawn:

Issuer -- SSI Investments II Limited

* $310 million senior unsecured bridge loans -- Caa1, LGD5 -- 80%

These ratings were affirmed:

Issuer -- SSI Investments II Limited

* Corporate family rating -- B2
* Probability-of-default rating -- B2

Issuer -- SkillSoft Corporation

* $40 million Senior Secured Revolving Credit Facility -- Ba3
  (LGD2, 24%)

* $325 million Senior Secured 1st lien Term Loan due 2017 -- Ba3
  (LGD2, 24%)

The last rating action for SSI Investments Limited was on May 3,
2010, when Moody's assigned a B2 Corporate Family Rating to SSI
Investments Limited in connection with the acquisition of
SkillSoft PLC.

SkillSoft is a SaaS provider of on-demand e-learning and
performance support solutions for global enterprises, government,
education and small to medium-sized businesses.  For the fiscal
year ended January 31, 2010, the company's revenues were
$315 million.


SUPPLIES & SERVICES: Case Summary & 23 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Supplies & Services, Inc.
        Centro de Distribucion Amelia
        Calle Diana Lote 17
        Guaynabo, PR 00968

Bankruptcy Case No.: 10-07157

Chapter 11 Petition Date: August 8, 2010

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Debtor's Counsel: Carmen D. Conde Torres, Esq.
                  C. CONDE & ASSOCIATES
                  254 San Jose Street, 5th Floor
                  San Juan, PR 00901-1523
                  Tel: (787) 729-2900
                  Fax: (787) 729-2203
                  E-mail: notices@condelaw.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $500,001 to $1,000,000

A list of the Company's 23 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/prb10-07157.pdf

The petition was signed by Ricardo Gonzalez, president.


TARGA RESOURCES: Moody's Assigns 'B1' Rating on $250 Mil. Notes
---------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Targa Resources
Partners LP proposed $250 million senior unsecured notes due 2018.
Moody's also upgraded the rating of TRP's senior notes due 2016
and 2017 to B1, and affirmed TRP's Corporate Family Rating of Ba3
and TRP's SGL-3 Speculative Grade Liquidity Rating.

In addition, Moody's affirmed the Targa Resources, Inc. B1
Corporate Family Rating, the B1 rating for TRI's senior secured
term loan, and TRI's SGL-2 Speculative Grade Liquidity Rating.
The outlook for TRP and TRI is stable.

The affirmations follow TRP's announcement that the partnership
plans to issue approximately $160 million of common units and
$250 million of senior unsecured notes, the proceeds of which will
be used to purchase the Versado System from TRI for approximately
$230 million.  The Versado System is comprised of TRI's 63%
interest in Versado Gas Processors, LLC.  The remaining 37%
interest of VGP is owned by Chevron U.S.A. Inc. and is not
affected by this transaction.  VGP's assets include three gas
processing plants along with their associated natural gas
gathering systems.  They are located in the Permian Basin and
extend from southeastern New Mexico into West Texas.  The
$230 million acquisition is viewed as a neutral event from a
credit standpoint based on the purchase price multiple of the
reported operating margin and the resulting leverage statistics.

TRP's Ba3 CFR reflects its scale and market position.  Relative to
its rating peers, TRP is larger than most as measured by total
assets and by adjusted EBITDA.  However, despite its diversified
earnings stream, TRP's rating is constrained by its exposure to
commodity prices and the resulting variability of cash flow, by
its leveraged balance sheet, and by its implicit distribution
policy as a master limited partnership.  The B1 rating for TRP's
proposed senior unsecured notes reflects both the overall
probability of default of TRP, to which Moody's assigned a Ba3
rating, and a loss given default of LGD 5 (79%).  The rating also
takes into account the higher percentage of senior unsecured debt
in the partnership's capital structure after completion of the
note offering.

Because the size of the planned equity and debt offerings is in
excess of the VGP purchase price, the partnership's liquidity
position will be marginally, but positively, impacted.  Upon the
closing of the financing transactions, and after the VGP
acquisition, Moody's estimates that TRP's liquidity will be
greater than $400 million likely in the form of availability under
the senior secured revolving credit facility.  This facility was
recently amended and restated in July.  The new terms include an
extension in the maturity to July 15, 2015 and revised financial
(maintenance) covenants: total leverage ratio no greater then
5.5x, senior leverage ratio of no greater than 4.0x, and an
interest coverage ratio of at least 2.25x.  These covenant levels
allow for a significant degradation in financial performance of
TRP prior to being triggered.  While positive from a liquidity
standpoint, this potential for degradation also factors into the
LGD determination and the notching of the bonds in relation to the
CFR.

TRI will use a portion of the VGP sales proceeds to reduce
borrowings under its existing senior secured term loan and for
other general corporate purposes.  The B1 CFR rating of TRI and B1
rating for the secured term loan take into account the company's
growing reliance on partnership distributions as the primary
source of cash flow and debt service.  The SGL-2 Speculative Grade
Liquidity Rating reflects the free cash flow after debt service
and credit availability for TRI.

The last rating action on TRP occurred on July 28, 2009, when its
CFR, PD and SGL were affirmed.  The last rating action on TRI
occurred on December 15, 2009, when Moody's assigned a rating to
TRI's senior secured debt and affirmed the CFR at B1.

Targa Resources Partners LP is headquartered in Houston, Texas.


TACTICAL AIR: Inv. Chapter 7 Petition Dismissed by Bankr. Court
---------------------------------------------------------------
Tactical Air Defense Services, Inc. disclosed that the frivolous
and improper Involuntary Chapter 7 Petition designed to harm TADF
has been Dismissed by the United States Bankruptcy Court.

On August 3, 2010, certain affiliates and business associates of
Mr. Daniels, the ex-CEO of TADF against whom TADF is currently
litigating in a separate action, filed an improper and frivolous
Involuntary Chapter 7 Petition against the Company in the United
States Bankruptcy Court for the Southern District of Florida, in
an effort to delay and circumvent the legitimate civil court
process, to harm and discredit TADF, and in direct violation of a
Court Order previously issued by Federal Bankruptcy Judge Paul
Hyman on March 14, 2010.

On August 11, 2010, at an Emergency Hearing to Dismiss the
Petition, the Federal Bankruptcy judge dismissed the Petition, as
had been anticipated and previously disclosed by TADF, and,
moreover, due to the improper actions of the Petitioners, reserved
the right of the US Federal Bankruptcy Court to:

a) impose Sanctions upon the Petitioners, and

b) impose Punitive Sanctions upon the Petitioners if it is
   determined that the actions of the Petitioners violated the
   Court Order previously issued by U.S. Federal Bankruptcy Court
   Judge Hyman.

Although no assurances can be given, TADF believes that Sanctions
will be imposed upon the Petitioners, and that it will be
determined that the Petitioners violated the Court Order issued by
Judge Hyman.

Alexis C. Korybut, Chief Executive Officer of TADF, stated, "I am
pleased that the U.S. Bankruptcy Court made the proper
determination by dismissing the frivolous Petition.  TADF intends
to request that Sanctions and Punitive Sanctions be imposed upon
the Petitioners and Mr. Daniels for yet another improper attempt
to damage TADF due to it having severed its relationship with the
Petitioners or their affiliates as a result of previous improper
or fraudulent actions or misconduct by the Petitioners or their
affiliates.  We hope that Judge Hyman will impose both Sanctions
and Punitive Sanctions against the Petitioners and Mr. Daniels in
order send the proper message to Mr. Daniels and his affiliates
that any attempt to damage or take unfair advantage of TADF will
not be tolerated.  TADF remains on a clear path to fulfill the
expectations of our shareholders."

                       About Tactical Air

Tactical Air Defense Services -- http://www.tads-usa.com/-- is a
leading provider of Tactical Aviation training and support
services to the United States and Allied Nations Worldwide.


TAYLOR BEAN: Committee Wants Key Documents from Deloitte
--------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
case of Taylor, Bean & Whitaker Mortgage Corp., et al., ask the
U.S. Bankruptcy Court for the Middle District of Florida to:

   -- authorize the Committee's examinations of Deloitte & Touche
      LLP and Deloitte LLP;

   -- review the documents produced pursuant to the Federal Rule
      of Bankruptcy Procedure 2004;

   -- be entitled to receive and review all documents produced by
      Deloitte & Touche LLP and Deloitte LLP pursuant to the 2004
      motion.

The Committee relates that:

   a) in 2009, the Court granted Deutsche Bank AG's motion for
      authority to obtain limited information discovery;

   b) Deloitte & Touche LLP or Deloitte LLP are in possession of
      information and documents regarding:

      1. the Debtor's Section 494, Florida Statutes mortgage
         lender license, submissions to the State of Florida,
         licenses issued by and maintained in other States, well
         as the Debtor's assets and liabilities for all times
         relevant to the events leading up to the Debtor's
         Chapter 11 filing;

      2. the double-pledging of Loans Held For Sale by the Debtor,
         LHFS are residential mortgage loans originated by the
         Debtor to consumers and underwritten in accordance with
         standards set forth by the institutional investor to whom
         the Debtor would sell the loans, i.e. Freddie Mac; and

      3. the evaluations of discrepancies in the Debtor's
         accounting records associated with LHFS, conflicting or
         missing evidential matter, and problematic or unusual
         relationships between Deloitte & Touche LLP's or Deloitte
         LLP's audit team and the Debtor's management team.

The loan proceeds were used for the purchase or refinance of the
property securing the loan.  Once the LHFS were closed by the
Debtor and the loan was purchased and delivered to the investor,
the loan must no longer have been carried on the Debtor's
accounting records and balance sheet.  In the event of double-
pledging, the LHFS could remain on the Debtor's balance sheet even
though the loans were already delivered to the investor as Freddie
Mac.

The LHFS line item was repeatedly the single largest asset on the
Debtor's consolidated balance sheet which was used to represent
the Debtor's economic health that the Debtor could maintain its
licenses to operate as a mortgage lender, servicer, seller and
issuer of mortgage-backed securities.

The Committee tells the Court that it will coordinate with the
Debtor in an effort to avoid duplication.

The Committee is represented by:

     Berger Singerman, P.A.
     200 South Biscayne Boulevard, Suite 1000
     Miami, Florida 33131
     Tel: (305) 755-9500
     Fax: (305) 714-4340

                         About Taylor Bean

Taylor, Bean & Whitaker Mortgage Corp. is a 27-year-old company
that grew from a small Ocala-based mortgage broker to become one
of the largest mortgage bankers in the United States.  In 2009,
Taylor Bean was the country's third largest direct-endorsement
lender of FHA-insured loans of the largest wholesale mortgage
lenders and issuer of mortgage backed securities.  It also managed
a combined mortgage servicing portfolio of approximately
$80 billion.  The company employed more that 2,000 people in
offices located throughout the United States.

Taylor Bean filed for Chapter 11 on August 24 (Bankr. M.D. Fla.
Case No. 09-07047).  Taylor Bean filed for Chapter 11 three weeks
after federal investigators searched its offices.  The day
following the search, the Federal Housing Administration, Ginnie
Mae and Freddie Mac prohibited the company from issuing new
mortgages and terminated servicing rights.

Taylor Bean has more than $1 billion in both assets and
liabilities, and between 1,000 and 5,000 creditors, according to
the bankruptcy petition.

Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain &
Prosser, PA, in Tampa, Florida, represents the Debtor.  Troutman
Sanders LLP is special counsel.  BMC Group, Inc., serves as claims
agent.


TELKONET INC: Raises $1.3 Million From Private Placement Offering
-----------------------------------------------------------------
Telkonet Inc. has closed the private placement made on August 6,
2010, raising $1.335 million in gross proceeds through the private
placement of the Company's Series B Convertible Redeemable
Preferred Stock and Warrants to purchase Common Stock.

The investors purchased an aggregate of 267 shares of the
Company's Series B Convertible Redeemable Preferred Stock, par
value $0.001 per share at a price per share of $5,000, and were
issued warrants to purchase an aggregate of 5,134,626  shares of
the Company's common stock, par value $0.001 per share.  Each
Series B share is convertible into approximately 38,461 shares of
Common Stock at a conversion price of $0.13 which is equal to the
closing bid price of a share of Common Stock on August 4. 2010.
The Warrants have an exercise price of $0.13, which is equal to
the closing bid price of a share of Common Stock on August 4.
2010.

Except as specifically provided or as otherwise required by law,
the Series B shares will vote together with the Common Stock and
the Company's Series A Convertible Redeemable Preferred Stock on
an as-if-converted basis and not as a separate class.  Each Series
B share will have a number of votes equal to the number of shares
of Common Stock then issuable upon conversion of such shares of
Series B.

Telkonet also entered into agreements with each of (i) Warren V.
Musser, (ii) Thomas C. Lynch, (iii) Seth Blumenfeld, (iv) Thomas
M. Hall and (v) Anthony J. Paoni pursuant to which each agreed to
convert outstanding indebtedness of the Company, owed to such
individual for service as a member of the Company's board of
directors, into shares of Common Stock of the Company.  By
entering into these agreements, Telkonet has eliminated $951,000
in balance sheet liabilities.

Additionally, as previously announced by the Company, Richard J.
Leimbach , the Company's Chief Financial Officer, will be leaving
the Company to pursue other opportunities.  In connection with Mr.
Leimbach's resignation from his position as Chief Financial
Officer, the Company and Mr. Leimbach entered into a Transition
Agreement and Release on August 4, 2010, which provides that,
among other things, Mr. Leimbach provided his services to the
Company as an employee until June 30, 2010 and on a transition
basis during the during the period July 1 through August 6, 2010.
Following August 6 and for the ensuing two month period, Mr.
Leimbach will be paid a severance benefit and a health care
reimbursement should he elect COBRA coverage.  Mr. Leimbach will
also receive an award of 333,333 shares of the Company's Common
Stock.

                          About Telkonet

Milwaukee, Wisconsin-based Telkonet, Inc. is a clean technology
company that develops and manufactures proprietary energy
efficiency and smart grid networking technology.

The Company's balance sheet at March 31, 2010, showing
$16.1 million in total assets, $6.2 million in total current
liabilities, $3.2 million in total long-term liabilities, and
$5.8 million in stockholders' equity.

RBSM LLP, in New York, expressed substantial doubt about the
Company's ability to continue as a going concern, following the
Company's 2009 results.  The independent auditors noted that of
the Company's significant operating losses in the current year and
in the past.


TERRESTAR CORP: Warns of Bankruptcy; Posts $68.6M Q2 Loss
---------------------------------------------------------
TerreStar Corporation filed its quarterly report on Form 10-Q,
reporting a net loss of $68.6 million for the three months ended
June 30, 2010, compared with a net loss of $58.5 million for the
same period of 2009.

During the three months ended June 30, 2010, the Company recorded
$3.2 million as revenue pursuant to its Spectrum Manager Lease
Agreement entered in September 2009, leasing the rights to use
certain 1.4GHz terrestrial spectrum to a related party.  The
Company had no revenue for the three or six months ended June 30,
2009.

The Company's balance sheet as of June 30, 2010, showed
$1.402 billion in total assets, $1.643 billion in total
liabilities, and stockholders' equity of $241.3 million.

           Going Concern/Possible Chapter 11 Filing

Based on the current plans, the Company has substantial doubt that
its cash, investments and available borrowing capacity as of
June 30, 2010, will be sufficient to cover the projected funding
needs for the third quarter of 2010.  The Company says it will
likely face a cash deficit in the third quarter of 2010 unless it
can obtain additional capital.

The Company has been exploring numerous strategic and financing
alternatives to address its liquidity position and the ability to
service its preferred stock and debt obligations, and it has
retained legal and financial advisors, both in the United States
and Canada, to assist it.  The Company has also commenced
restructuring discussions with certain holders of its 15% Secured
Notes and 6.5% Exchangeable Notes.  As of June 30, 2010,
discussions with these stakeholders were ongoing, and they remain
ongoing as of the filing of this report.  Additionally, the
Company has commenced discussions with some of its major contract
counterparties to address the liquidity requirements.

In the event that none of the various alternatives is consummated,
the Company may need to initiate proceedings for relief by making
a voluntary bankruptcy filing under Chapter 11 of Title 11 of the
United States Code to, among other things, reorganize its capital
structure.  These factors raise substantial doubt about the
Company's ability to continue as a going concern.

A full-text copy of the Quarterly Report is available for free at:

               http://researcharchives.com/t/s?6894

                      About TerreStar Corp

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)
-- http://www.terrestar.com/-- is in the mobile communications
business through its ownership of TerreStar Networks, its
principal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,
TerreStar Canada and TerreStar Solutions, majority-owned
subsidiaries of Trio 1 and 2 General Partnerships, plans to launch
an innovative wireless communications system to provide mobile
coverage throughout the United States and Canada using integrated
satellite-terrestrial smartphones and other devices.  This system
build out will be based on an integrated satellite and ground-
based technology intended to provide communication service in most
hard-to-reach areas and will provide a nationwide interoperable,
survivable and critical communications infrastructure.  The
Company intends to provide multiple communications applications,
including voice, data and video services.

As of June 30, 2010, the Company had four wholly-owned
subsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStar
Holdings Inc., and TerreStar New York Inc.  Motient Ventures
Holding Inc., a wholly-owned subsidiary of MVH Holdings Inc.,
directly holds approximately 89.3% and 86.5% interest in TerreStar
Networks and TerreStar Global, respectively.

Ernst & Young LLP, in McLean, Virginia, expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ended December 31, 2009.  The independent auditors noted that
Company has incurred recurring operating losses and will require
additional financing in 2010 to meet its obligations.


TISHMAN SPEYER: Stuyvesant Town Suit Against MetLife May Proceed
----------------------------------------------------------------
Bloomberg News reports that tenants of Stuyvesant Town and Peter
Cooper Village, Manhattan's largest apartment complex, can proceed
with a class-action lawsuit against MetLife Inc. seeking $215
million for improper rent overcharges, a judge ruled.

According to the report, Manhattan state Supreme Court Justice
Richard Lowe III ruled against a motion to dismiss the case
against MetLife, the complex's former owner.  MetLife argued that
a 2009 New York Court of Appeals decision in the case, that
apartments couldn't be luxury decontrolled while they received
certain tax benefits, shouldn't be applied retroactively,
according to court papers.

MetLife sold the property in 2006 to PCV ST Owner LP, another
defendant.  Tishman Speyer Properties LP, which bought the
development, also is a defendant.

The case is Amy L. Roberts v. Tishman Speyer Properties,
100956/2007, New York State Supreme Court (Manhattan).

                       About Tishman Speyer

Tishman Speyer Properties lays claim to two of the most famous
slices of the Big Apple -- New York City's Chrysler Building and
Rockefeller Center.  The property company invests in, develops,
and/or operates commercial real estate.  Other well known holdings
include Berlin's Q 205 project (the first post-reunification
development in the city's center) and Chicago's Franklin Center
(one of the city's largest office properties).  The company owns
or has developed more than 115 million sq. ft. in Asia, Europe,
South America, and the US since it was founded in 1978. The
company also has projects in India, China, and Brazil, and owns
some 92,000 residential units around the world.

Stuyvesant Town-Peter Cooper Village comprises 56 multi-story
buildings, situated on 80 acres, and includes a total of 11,227
apartments.  The loan sponsors, Tishman Speyer Properties, LP and
BlackRock Realty, acquired the property with the intent of
converting rent-stabilized units to market rents as tenants
vacated the property; however, the conversion of units has since
been determined to be illegal by the New York State Court of
Appeals.  In addition to the $3 billion securitized balance,
there is an additional $1.5 billion of mezzanine debt held
outside the trust.


TOPS HOLDING: Moody's Reviews 'B3' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service placed the B3 corporate family rating
and other long term debt ratings of Tops Holding and its
subsidiaries on review for possible downgrade.  The review is
triggered by Tops' news that it has made a return of capital to
its shareholders.  Moody's had previously noted that continued
demonstration of an aggressive financial policy could result in a
downgrade.

The review will focus on the company's financial policy and
financial objectives, revision of expected credit metrics
following the return of capital, consideration of the performance
of its core stores and newly acquired stores to date, and the
operational and financial implications of the disposition of 7
additional stores as required by the Federal Trade Commission's
decision of August 2010.

These ratings are placed on review for possible downgrade:

* Corporate Family Rating of B3;

* Probability of Default Rating of B3;

* $350 million senior secured notes maturing 2015 rating of B3
  (LGD3, 49%)

The last rating action for Tops was the confirmation of its
ratings on March 29, 2010, following the acquisition of Penn
Traffic assets.

Tops Holding Corp., headquartered in Williamsville, NY, is a
privately owned operator of supermarkets in northern and western
New York State.


TRANT MANOR: City National Tries to Block Cash Collateral Use
-------------------------------------------------------------
City National Bank, a national banking association, tells the Hon.
Margaret M. Mann of the U.S. Bankruptcy Court for the Southern
District of California that it doesn't consent to Trant Manor,
LLC's use of cash collateral.

City National is the successor in interest to 1st Pacific Bank of
California (the Bank), a secured creditor of the Debtor.

City National wants the Debtor to sequester and segregate all
proceeds from the use, rental, or lease of the Debtor's certain
assets (the property) or the collateral.  The cash collateral
includes any and all rents, receivables, and profits from the real
property commonly known as The 1906 Lodge at 1401 Ynez Place and
1054 Adella Avenue, Coronado, CA 92118.

City National is represented by Mulvaney, Kahan & Barry LLP.

Coronado, California-based Trant Manor, LLC, filed for Chapter 11
bankruptcy protection on July 31, 2010 (Bankr. S.D. Calif. Case
No. 10-13663).  Alan Vanderhoff, Esq., at Vanderhoff Law Group,
assists the Debtor in its restructuring effort.   In its
schedules, the Debtor disclosed $10,453,395 in assets and
$9,488,580 in debts as of the Petition Date.


TRANT MANOR: Section 341(a) Meeting Scheduled for Sept. 7
---------------------------------------------------------
The U.S. Trustee for Region 15 will convene a meeting of Trant
Manor, LLC's creditors on September 7, 2010, at 2:00 p.m.  The
meeting will be held at the Office of the U.S. Trustee, 402 W.
Broadway (use C Street Entrance), Suite 1360, Hearing Room B, San
Diego, CA 92101.

This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

Coronado, California-based Trant Manor, LLC, filed for Chapter 11
bankruptcy protection on July 31, 2010 (Bankr. S.D. Calif. Case
No. 10-13663).  Alan Vanderhoff, Esq., at Vanderhoff Law Group,
assists the Debtor in its restructuring effort.  In its schedules,
the Debtor disclosed $10,453,395 in assets and $9,488,580 in debts
as of the Petition Date.


UAL CORP: Reports July 2010 Operational Performance
---------------------------------------------------
United Airlines reported its preliminary consolidated traffic
results for July 2010.  Total consolidated revenue passenger miles
increased in July by 2.1% on an increase of 1.8% in available seat
miles compared with the same period in 2009.  This resulted in a
reported July consolidated passenger load factor of 87.2%, an
increase of 0.3 points compared to 2009.

United reported a U.S. Department of Transportation on-time
arrival rate of 82.9% in July.

For July 2010, consolidated passenger revenue per available seat
mile is estimated to have increased 22.0% to 23.0% year-over-year.
Consolidated PRASM is estimated to have increased 3.9% to 4.9% for
July 2010 compared to July 2008, 2.0 percentage points of which is
due to fees and other ancillary revenue.

Average July 2010 mainline fuel price, including gains or losses
on settled fuel hedges and excluding non-cash, mark-to-market fuel
hedge gains and losses, is estimated to be $2.31 per gallon.
Including non-cash, mark-to-market fuel hedge gains and losses,
the estimated fuel price is $2.33 per gallon for the month.

A full-text copy of the Company's July 2010 Traffic Results is
available for free at http://ResearchArchives.com/t/s?687c

                    About UAL Corporation

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest air
carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts.  Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors.  Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006.  The
Company emerged from bankruptcy on Feb. 1, 2006.

Reorganized UAL Corp. carries a 'Caa1' probability of default
rating from Moody's, 'B-' long term foreign issuer credit rating
from Standard & Poor's, and 'CCC' long term issuer default rating
from Fitch.

At June 30, 2010, UAL had $20.134 billion in total assets against
total current liabilities of $8.573 billion, long-term debt of
$6.281 billion, long-term obligations under capital leases of
$1.01 billion, other liabilities and deferred credits of
$7.022 billion, and stockholders' deficit of $2.756 billion.


UNIGENE LABORATORIES: Posts $3.64 Million Net Loss for June 30 Qtr
------------------------------------------------------------------
Unigene Laboratories Inc. has reported that revenue for the three
months ended June 30, 2010 was $3,028,000, compared to $4,297,000
for the three months ended June 30, 2009.  Revenue for both
periods primarily consisted of Fortical sales and royalties which
have declined since the launch of competitive products in December
2008.

Unigene's balance sheet at June 30, 2010, showed $27.60 million in
total assets, $60.32 million in total liabilities, and $32.72
million total stockholders' deficit. Cash at June 30, 2010 was
$10,583,000, an increase of $5,689,000 from December 31, 2009.

Net loss for the three months ended June 30, 2010 was $3,644,000,
or $.04 per share, compared to a net loss of $3,460,000, or $.04
per share, for the three months ended June 30, 2009.

A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6891

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6892

                           About Unigene

Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/
-- is a biopharmaceutical company focusing on the oral and nasal
delivery of large-market peptide drugs.

Grant Thornton LLP, in New York, expressed substantial doubt about
Unigene Laboratories' ability to continue as a going concern
following the Company's 2009 results.  The firm noted that the
Company has incurred a net loss of $13,400,000 during the year
ended December 31, 2009 and has an accumulated deficit of
approximately $143,000,000 as of December 31, 2009.  As of that
date, the Company's current liabilities exceeded its current
assets by $1,251,000 and its total liabilities exceeded total
assets by $30,442,000.


US CONCRETE: Posts $14.8 Million Net Loss in Q2 Ended June 30
-------------------------------------------------------------
U.S. Concrete, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $14.8 million on $144.0 million of revenue
for the three months ended June 30, 2010, compared with a net loss
of $4.8 million on $143.7 million of revenue for the same period
of 2009.

The Company's balance sheet as of June 30, 2010, showed
$403.2 million in total assets, $451.7 million in total
liabilities, and stockholders' deficit of $48.5 million.

Cash and cash equivalents were $5.8 million at June 30, 2010,
compared to $4.2 million at December 31, 2009, and $4.5 million at
June 30, 2009.

Net cash used in operating activities was $24.7 million for the
six months ended June 30, 2010, compared to net cash used in
operating activities of $2.0 million for the six months ended
June 30, 2009.  The change in the 2010 period was partially the
result of lower profitability and cash payments for professional
fees of approximately $5.0 million related to the Company's
restructuring.

A full-text copy of the Quarterly Report is available for free at:

               http://researcharchives.com/t/s?6873

                     About U.S. Concrete

Houston, Tex.-based U.S. Concrete, Inc. -- http://www.us-
concrete.com/ -- is a major producer of ready-mixed concrete,
precast concrete
products and concrete-related products in select markets in the
United States.  The Company has 125 fixed and 11 portable ready-
mixed concrete plants, seven precast concrete plants and seven
producing aggregates facilities.

The Company filed for Chapter 11 bankruptcy protection on
April 29, 2010 (Bankr. D. Del. Case No. 10-11407).  Patrick J.
Nash Jr., Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis
LLP, assist the Company in its restructuring effort as bankruptcy
counsel.  James E. O'Neill, Esq., Laura Davis Jones, Esq., and
Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, is
the Company's co-counsel.  Epiq Bankruptcy Solutions is the
Company's claims agent.

The Company scheduled assets of $389,160,000 and debts of
$399,351,000 as of the Petition Date.

The Debtor's affiliates, Alberta Investments, Inc., et al., filed
separate Chapter 11 petitions on April 29, 2010.

As reported in the Troubled Company Reporter on August 2, 2010,
the Bankruptcy Court has confirmed the Company's Plan of
Reorganization.  As previously announced, the Company's Plan
provides for the conversion of approximately $285 million of
principal amount of 8.375% Senior Subordinated Notes due 2014 into
equity of the reorganized company.  Trade creditors are currently
being paid in full in the ordinary course and are unaffected by
the restructuring.  The Company currently expects to emerge from
Chapter 11 by the end of August 2010.


VERENIUM CORP: Posts $4.5 Million Net Loss in Q2 Ended June 30
--------------------------------------------------------------
Verenium Corporation filed its quarterly report on Form 10-Q,
reporting a net loss attributable to Verenium Corporation of
$4.5 million for the three months ended June 30, 2010, compared
with a net loss attributable to Verenium Corporation of
$20.0 million for the same period of 2009.  Total revenues for the
second quarter ended June 30, 2010, were $20.0 million, compared
to $16.3 million for the same period in the prior year.

"This has been a transformational quarter for Verenium.  The
transaction we announced with BP around the sale of our cellulosic
biofuels business firmly positions us to focus our capital and
human resources on the continued development of a leading
industrial biotechnology and commercial enzymes business
addressing lucrative, growing markets," said Carlos A. Riva,
President and Chief Executive Officer of Verenium.  "I'm pleased
with the progress we've seen across the business over the last
quarter, notably, growing product revenues and continued
successful efforts to aggressively manage expenses."

"Verenium had an impressive second quarter with good growth in
total product revenues indicating that our newer enzyme products
continue to gain traction in their respective target markets,"
said James E. Levine, Executive Vice President and Chief Financial
Officer.  "We believe that following the close of the BP
transaction, Verenium will have an even greater opportunity to
maximize the potential of our existing commercial and development
portfolio by investing strategically in areas such as
manufacturing and R&D.  We also expect to have a greatly improved
financial position providing a significant opportunity to create
value for our shareholders."

The Company's balance sheet as of June 30, 2010, showed
$146.3 million in total assets, $136.1 million in total
liabilities, and stockholders' equity of $10.2 million.

The Company has incurred a net loss of $4.5 million for the three
month ended June 30, 2010, and has an accumulated deficit of
$642.4 million as of June 30, 2010.  Based on the Company's
current operating plan, its existing working capital will not be
sufficient to meet the cash requirements to fund the Company's
planned operating expenses, capital expenditures, required and
potential payments under the 2007 Notes, the 2008 Notes, and the
2009 Notes, and working capital requirements through December 31,
2010, without additional sources of cash and/or the deferral,
reduction or elimination of significant planned expenditures, or
until the closing of the acquisition under the Asset Purchase
Agreement with BP Biofuels North America LLC expected during the
third quarter of 2010.

These factors raise substantial doubt about the Company's ability
to continue as a going concern.

A full-text copy of the earnings release is available for free at:

               http://researcharchives.com/t/s?687a

A full-text copy of the Quarterly Report is available for free at:

               http://researcharchives.com/t/s?687b

Cambridge, Mass.-based Verenium Corporation (NASDAQ: VRNM) --
http://www.verenium.com/--  is a pioneer in the development and
commercialization of high-performance enzymes for use in
industrial processes.  Verenium currently sells enzymes developed
using its R&D capabilities to industrial customers globally for
use in markets including biofuels, animal health and oil seed
processing

As reported in the Troubled Company Reporter on March 19, 2010,
Ernst & Young LLP, in San Diego, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that of the Company's recurring
operating losses and accumulated deficit of $630.0 million at
December 31, 2009.


VITESSE SEMICONDUCTOR: Posts $33 Mil. Net Income for June 30 Qtr
----------------------------------------------------------------
Vitesse Semiconductor Corporation filed its quarterly report on
Form 10-Q, reporting net income of $33.02 million on
$37.53 million of net revenues for the three months ended June 30,
2010, compared with net income of $12.48 million on $44.60 million
of net revenues for the same period a year earlier.

The Company's balance sheet at June 30, 2010, showed
$94.02 million in total assets, $130.49 million in total
liabilities, and $36.46 million in total stockholder's deficit.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?688a

                          About Vitesse

Based in Camarillo, California, Vitesse Semiconductor Corporation
(Pink Sheets: VTSS.PK) -- http://www.vitesse.com/-- designs,
develops and markets a diverse portfolio of semiconductor
solutions for Carrier and Enterprise networks worldwide.

Vitesse had total assets of $87,633,000 against total debts of
$130,120,000 and Series B preferred stock of $1,113,000, resulting
in shareholders' deficit of $43,600,000 as of December 31, 2009.

Vitesse entered into debt restructuring agreements in October 2009
with its major creditors, which allow the Company to satisfy its
creditors by converting most of its debt into new common stock,
preferred stock and new convertible debentures.  Vitesse is
seeking stockholder approval to increase the number of authorized
shares of the Company's common stock from 500,000,000 to
5,000,000,000 in conjunction with the debt restructuring
agreements.  The Company has warned if stockholders do not approve
the proposal to authorize the Company to issue more shares by
February 15, 2010, it will face a 1.0% per month interest charge
on the New Debentures (at a cost of about $500,000 per month)
beginning on February 16, 2010 and continuing until the increase
in the authorized shares is approved.  In addition, the holders of
the New Debentures will have the right to demand repayment of the
principal amount of the debt, plus potentially certain make-whole
interest payments representing interest that would have been
earned if the bonds had not been converted early.  The Company
could potentially be forced to file for protection from creditors
under Chapter 11 of the U.S. Bankruptcy Code.


WASHINGTON MUTUAL: Settles ERISA Claims for $49 Million
-------------------------------------------------------
Bankruptcy Law360 reports that a judge has signed off on a
$49 million settlement of a class action claiming that Washington
Mutual Inc. mismanaged its retirement plan's assets by investing
in the failed bank's own stock.  Judge Marsha J. Pechman issued
preliminary approval of the deal in the U.S. District Court for
the Western District of Washington on Friday, according to Law360.

Meanwhile, Bankruptcy Law360 reports that a federal judge has
tossed a putative contract class action claiming the Federal
Deposit Insurance Corp. owed a group of investors for warrants
tied to a $356 million award for Dime Bancorp Inc., which was
bought in 2002 by Washington Mutual Inc.  Judge Paul L. Friedman
ruled Friday that plaintiff Edward Mintz's suit failed to state a
claim against the FDIC for potential liability as receiver for
Washington Mutual Bank, Law360 says.

                       About Washington Mutual

Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries.  The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.

Washington Mutual Bank was taken over September 25 by U.S.
government regulators.  The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively).  Wamu owns
100% of the equity in WMI Investment.  Weil Gotshal & Manges
represents the Debtors as counsel.  When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695.  WMI Investment estimated assets of
$500,000,000 to $1,000,000,000 with zero debts.

Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation.  Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the Chapter 11 case.

Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).


WELCOME MISSIONARY: Case Summary & 7 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Welcome Missionary Baptist Church of Detroit
        3730 Philip
        Detroit, MI 48215

Bankruptcy Case No.: 10-65040

Chapter 11 Petition Date: August 6, 2010

Court: United States Bankruptcy Court
       Eastern District of Michigan (Detroit)

Judge: Phillip J. Shefferly

Debtor's Counsel: Melonee Monson-Holley, Esq.
                  29777 Telegraph Rd., Suite 2500
                  Southfield, MI 48034
                  Tel: (248) 926-6448
                  E-mail: meloneemonson@yahoo.com

Estimated Assets: $500,001 to $1,000,000

Estimated Debts: $1,000,001 to $10,000,000

A list of the Company's seven largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mieb10-65040.pdf

The petition was signed by Kenneth Brock, administrator.


WELLCARE HEALTH: S&P Gives Stable Outlook, Affirms 'B' Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on WellCare Health Plans Inc. to stable from positive.

Standard & Poor's also said that it affirmed its 'B' counterparty
credit rating on the company.

WellCare has said that it has reached significant resolution in
its pending securities class action and civil lawsuits with
various government agencies.  Over the next several years, the
company will pay a total of $337.5 million.  In the second quarter
of 2010, the company made $54.6 million of accruals for the civil
lawsuit settlement (in 2009, an accrual of $83 million was made)
and $194 million for the securities class action suit.  "The
revision of the outlook to stable from positive reflects the
potential for reduced liquidity and financial flexibility as a
result of these expected payments," noted Standard & Poor's credit
analyst Hema Singh.  "S&P expects that WellCare will pay about
$87 million in 2010 and $70 million in 2011, mostly from
unregulated cash and expected dividends from its operating
subsidiaries."

The rating on WellCare continues to reflect its relatively stable
business profile, very good capitalization at its operating
subsidiaries, and stabilizing operating performance.  The rating
is also based on the company's revenue concentration in
government-sponsored programs in the Medicaid and Medicare
business segment and the risk of exposure to unfavorable
regulatory/legislative intervention.  Another weakness to the
rating is the company's geographic market concentrations in
Florida and Georgia, which constituted about 73% of Health Plan
Medicaid and Medicare (excluding Medicare Part D) revenue and 66%
of membership.

The stable outlook reflects S&P's expectation for sustained
business and operating performance, which could improve the
company's creditworthiness given the various resolutions related
to past accounting investigations.  In the longer term, S&P
expects improvement in the company's cash-flow generation and
operating margin profile (with an ROR of 3%-4%).  The key driver
in this improvement will be WellCare moderately reducing its
medical loss and administrative expenses ratio.

The stable outlook also reflects S&P's expectation that there will
be no additional material settlement development (appeals in
settlements or any additional settlements) that could affect the
rating.  If operating performance/cash flow were to deteriorate,
S&P could lower the rating by one or more notches in the next 12-
18 months.  Conversely, if WellCare's operating performance
continues to stabilize and improve and overall financial
flexibility/liquidity is maintained or improved, S&P could raise
the rating by one notch in the next 12-18 months.


WEST VIEW: U.S. Trustee Unable to Form Creditors Committee
----------------------------------------------------------
The Office of the U.S. Trustee for Region 21 notified the U.S.
Bankruptcy Court for the Southern District of Florida that until
further notice, it will not appoint a committee of creditors in
the Chapter 11 case of West View Apartments, Inc.

Hialeah, Florida-based West View Apartments, Inc., filed for
Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. S.D.
Fla. Case No. 10-21892).  Juan C. Zorrilla, Esq., who has an
office in Miami, Florida, assists the Company in its restructuring
effort.  In its schedules, the Debtor disclosed $20,522,427 in
total assets and $12,329,059 in total liabilities as of the
Petition Date.


WESTMORELAND COAL: Posts $706,000 Net Income for June 30 Quarter
----------------------------------------------------------------
Westmoreland Coal Company filed its quarterly report on Form 10-Q,
reporting $706,000 net income on $127.63 million revenues for the
three months ended June 30, 2010, compared with $9.9 million net
loss on $104.78 million revenues for the same period a year
earlier.

The company's balance sheet at June 30, 2010, showed $762.62
million in total assets, $903.47 million in total current
liabilities, and $140.84 million total stockholders' deficit.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?688f

                     About Westmoreland Coal

Based in Colorado Springs, Colorado, Westmoreland Coal Company
(NYSE Amex:WLB) -- http://www.westmoreland.com/-- is the oldest
independent coal company in the United States.  The Company's coal
operations include coal mining in the Powder River Basin in
Montana and lignite mining operations in Montana, North Dakota and
Texas.  Its power operations include ownership of the two-unit
Roanoke Valley coal-fired power plant in North Carolina.

                           *     *     *

Westmoreland Coal said there is substantial doubt about its
ability to continue as a going concern, citing its recurring
losses from operations, violation of a debt covenant by a
subsidiary, its working capital deficit, and its net capital
deficiency.

Westmoreland Resources, Inc., did not comply with its amended net
worth requirement contained in its Business Loan Agreement at
April 30, 2010, and does not expect to meet this requirement for
at least the next 12 months.  Westmoreland Coal has classified
WRI's $11.4 million term debt as a current liability.


W.R. GRACE: Settles Gerling Insurance Coverage Disputes
-------------------------------------------------------
W.R. Grace & Co. and HDI-Gerling Industrie Versicherung AG, as
successor to Gerling Konzern Allgemeine Versicherungs-
Aktiensgesellschaft, ask Judge Judith Fitzgerald to approve the
Amended and Restated Asbestos Settlement Agreement they entered
into to resolve issues relating to the policies that provide
insurance coverage to Grace.

Gerling issued policies of excess liability insurance that
provide, or are alleged to provide, insurance coverage to Grace
and certain other of the Debtors, which cover the policy periods
June 30, 1977 to June 30, 1984.  The Subject Insurance Policies
provided aggregate policy limits of $7 million for the products
liability hazard.  The lowest attachment point of the Subject
Insurance Policies is $15 million.

Grace has incurred and may incur in the future certain
liabilities, expenses and losses arising out of alleged bodily
injury arising out of exposure to asbestos or asbestos-containing
materials, for which Grace seeks coverage under the Subject
Insurance Policies.

Prior to the Petition Date, Grace and Gerling entered into an
Asbestos Settlement Agreement dated November 3, 1998, that
provided a mechanism for reimbursement by Gerling to Grace for
Defense Costs and Indemnity Payments with respect to certain
asbestos-related bodily injury claims that fall within the scope
of the products liability hazard of the Subject Insurance
Policies.  As of the Petition Date, $5,856,105 of aggregate policy
limits for products liability coverage remained available pursuant
to the 1998 Agreement.

Grace's Joint Chapter 11 Plan of Reorganization, as amended,
contemplates that (i) Asbestos Personal Injury Claims will be
enjoined and channeled to the Asbestos PI Trust, which, in turn,
will process and resolve Asbestos PI Claims pursuant to the
Asbestos PI Trust Distribution Procedures; and (ii) Asbestos
Insurance Rights, including the rights to proceeds under Asbestos
Insurance Reimbursement Agreements are to be transferred to the
Trust, to be used to fund payment of Asbestos PI Claims.

The Amended Agreement confers these principal benefits upon the
Debtors' estate, among others:

  (a) The benefit of the bargain negotiated by Grace and Gerling
      in the 1998 Agreement is made available to the Trust
      without the need for litigation to enforce either the
      transfer of the 1998 Agreement by Grace to the Trust or
      the specific terms of the 1998 Agreement.

  (b) The full unexhausted remaining limits of the Subject
      Insurance Policy subject to the 1998 Agreement --
      $5,856,105 -- are made available to reimburse the Trust
      for payments made to Asbestos PI Claimants with respect to
      Asbestos PI Claims.

  (c) The Amended Agreement amends and restates the 1998
      Agreement, enabling the processing and payment of claims
      by the Trust under the Asbestos PI Trust Distribution
      Procedures, to be compliant with the 1998 Agreement, as
      Amended and restated.

  (d) The Amended Agreement represents a compromise of defenses
      that Gerling might have with respect to any individual
      Asbestos PI Claim.

  (e) Neither the 1998 Agreement nor the Amended Agreement
      releases Gerling from claims that are not within the scope
      of the products liability hazard of the Subject Insurance
      Policies.

                         About W.R. Grace

Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally.

The Company and its debtor-affiliates filed for Chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring effort.  The Debtors
hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.  Stroock &
Stroock & Lavan, LLP, and Duane Morris, LLP, represent the
Official Committee of Unsecured Creditors.  The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice.  David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA.
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla
R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official
Committee of Asbestos Personal Injury Claimants.  The Asbestos
Committee of Property Damage Claimants tapped Scott Baena, Esq.,
and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod,
LLP, to represent it.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel, LLP, represents the Official Committee of
Equity Security Holders.

W.R. Grace and its debtor affiliates, with the support of the
Official Committee of Asbestos Personal Injury Claimants, the
Asbestos PI Future Claimants' Representative and the Official
Committee of Equity Security Holders, have submitted a proposed
Chapter 11 plan of reorganization.  The Chapter 11 plan is built
around an April 2008 settlement for all present and future
asbestos personal injury claims, and a subsequent settlement for
asbestos property damage claims.  The Plan confirmation hearing
wrapped up on January 25.

Bankruptcy Creditors' Service, Inc., publishes W.R. Grace
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


W.R. GRACE: Wins Nod of Wasau Insurance Coverage Settlement
-----------------------------------------------------------
Employers Mutual Liability Insurance Company of Wisconsin issued
three policies of excess liability insurance that provide, or are
alleged to provide, insurance coverage to Grace.  The Subject
Policies were issued for the period July 17, 1974 to June 30,
1977.

Each of the Subject Policies provides coverage in the amount of
$2 million part of a quota share layer of $50 million per
occurrence and in the aggregate for products and completed
operations hazards, all in excess of $100 million in underlying
limits.

Grace has incurred and may incur in the future certain
liabilities, expenses and losses arising out of asbestos-related
claims, for which Grace seeks coverage under the Subject Policies.
Disputes have arisen between Grace and Wausau regarding their
respective rights and obligations under the Subject Policies with
respect to coverage for asbestos-related claims.

The First Amended Joint Plan of Reorganization contemplates that
Asbestos Personal Injury Claims will be enjoined and channeled to
the Asbestos PI Trust.  If established as proposed, the Trust will
process and resolve Asbestos PI Claims pursuant to the Asbestos PI
Trust Distribution Procedures.  The Plan further contemplates that
Asbestos Insurance Rights, including rights to coverage under the
Subject Policies, are to be transferred to the Trust, to be used
to fund payment of Asbestos PI Claims.

To resolve the disputes, the Debtors, and Nationwide Indemnity
Company, solely in its capacity as claims administrator for Wausau
entered into a settlement agreement that confers these principal
benefits upon the Debtors' estate, among others:

  (a) The payment by Wausau to the Trust of $3,800,000 as a
      settlement amount within 30 days of the Trigger Date, as
      defined in the Agreement.

  (b) The payment of the Settlement Amount without need for
      litigation to enforce the assignment by Grace to the Trust
      of rights under the Subject Policies.

  (c) A compromise of defenses that Wausau might have with
      respect to coverage for any individual Asbestos PI Claim.

The Agreement also includes a complete, mutual release of all
claims under the Subject Policies and is structured as a sale of
property pursuant to Section 363 of the Bankruptcy Code.  The
Agreement further provides that if a Chapter 11 plan of
reorganization is confirmed in the Debtors' cases, the Trust, at
its own expense, will enforce the Asbestos PI Channeling
Injunction with respect to Asbestos PI Claims that are asserted
against Wausau and Nationwide Indemnity Company.

The Trust's obligation ceases after it has spent a sum equivalent
to the Settlement Amount.

The Parties accordingly sought and obtained approval from
Bankruptcy Judge Judith Fitzgerald of the Settlement Agreement.

                         About W.R. Grace

Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally.

The Company and its debtor-affiliates filed for Chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring effort.  The Debtors
hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.  Stroock &
Stroock & Lavan, LLP, and Duane Morris, LLP, represent the
Official Committee of Unsecured Creditors.  The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice.  David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA.
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla
R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official
Committee of Asbestos Personal Injury Claimants.  The Asbestos
Committee of Property Damage Claimants tapped Scott Baena, Esq.,
and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod,
LLP, to represent it.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel, LLP, represents the Official Committee of
Equity Security Holders.

W.R. Grace and its debtor affiliates, with the support of the
Official Committee of Asbestos Personal Injury Claimants, the
Asbestos PI Future Claimants' Representative and the Official
Committee of Equity Security Holders, have submitted a proposed
Chapter 11 plan of reorganization.  The Chapter 11 plan is built
around an April 2008 settlement for all present and future
asbestos personal injury claims, and a subsequent settlement for
asbestos property damage claims.  The Plan confirmation hearing
wrapped up on January 25.

Bankruptcy Creditors' Service, Inc., publishes W.R. Grace
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


YRC WORLDWIDE: Lowers Net Loss to $9.47MM in Second Qtr. 2010
-------------------------------------------------------------
YRC Worldwide Inc. filed its quarterly report on Form 10-Q,
reporting a net loss of $9.47 million on $1.11 billion operating
revenue for the three months 2010, compared with a net loss of
$309.03 million on $1.22 billion operating revenue for the three
months 2009.

The Company's balance sheet at June 30, 2010, showed $2.84 billion
in total assets, $1.14 billion in total current liabilities,
$913.47 million in long-term debt less current portion, $146.25
million in deferred income taxes, net, $352.63 million in pension
and postretirement, $359.24 million in claims and other
liabilities, $37,000 in noncurrent liabilities of discontinued
operations, and $77.25 million total stockholders' deficit.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6878

                        About YRC Worldwide

Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ:
YRCW) -- http://www.yrcw.com/-- is a holding company that through
wholly owned operating subsidiaries offers its customers a wide
range of transportation services.  These services include global,
national and regional transportation as well as logistics.

The company's balance sheet for June 30, 2010, showed $2.8 billion
in total assets, $1.1 billion in total current liabilities, $913.4
million in long term debt, $146.2 million deferred income taxes,
$352.6 million pension and post retirement, $359.2 million claims
and other liabilities, $37,000 noncurrent liabilities, and
$77.2 million in stockholders' deficit.

                          *     *     *

As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009.  The independent
auditors noted that the Company has experienced si gnificant
declines in operations, cash flows, and liquidity.


* Laura Marcero Joins Huron Consulting Group
--------------------------------------------
Huron Consulting Group (NASDAQ: HURN) announced that Laura A.
Marcero has joined the Company as a managing director in the
Restructuring & Turnaround practice.

"We are pleased to welcome Laura to Huron, where her extensive
automotive supplier experience will be a great complement to our
existing middle-market manufacturing and operational focus," said
James H. Roth, chief executive officer, Huron Consulting Group.
"Laura has advised a large number of companies in industries that
have been heavily impacted by prolonged economic downturns,
including those that have dealt successfully with federal
government involvement in the private sector.  She will be a
tremendous resource for our Restructuring & Turnaround clients
across industries."

Ms. Marcero has more than 15 years of restructuring, turnaround
and transaction expertise across an array of industries.  She is
well known for her work in the automotive sector and has advised
automotive and manufacturing companies through various development
stages.  Prior to joining Huron, Ms. Marcero was a partner in
Grant Thornton's Corporate Advisory & Restructuring Services
practice.  She also served as the automotive lead within their
restructuring and Detroit practice.  In addition to the automotive
and manufacturing sectors, Ms. Marcero has worked in private
equity, publishing, construction, steel, and investment banking
industries.

At Huron, Ms. Marcero will be helping expand the Company's
automotive and manufacturing service offerings as well as advising
clients on strategic decision-making throughout the growth cycle
and for companies in transition.  She has extensive experience
working with the automotive supplier community.  Ms. Marcero is a
Certified Public Accountant in Michigan as well as a member of the
American Bankruptcy Institute, Association of Insolvency and
Restructuring Advisors and the American Institute of Certified
Public Accountants. She will be based in Huron's Detroit office.

                    About Huron Consulting Group

Huron Consulting Group -- http://www.huronconsultinggroup.com--
helps clients in diverse industries improve performance, comply
with complex regulations, resolve disputes, recover from distress,
leverage technology, and stimulate growth.  The Company teams with
its clients to deliver sustainable and measurable results.  Huron
provides services to a wide variety of both financially sound and
distressed organizations, including leading academic institutions,
healthcare organizations, Fortune 500 companies, medium-sized
businesses, and the law firms that represent these various
organizations.


* 6 Mintz Levin Bankr. Attys. Part of "Best Lawyers in America"
---------------------------------------------------------------
Thirty-nine attorneys from Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C. were recently named in the 2011 edition of The Best
Lawyers in America, a referral guide of United States attorneys.

First published in 1983, The Best Lawyers in America is based on
an annual peer-review survey.  For the new U.S. edition, more than
50% of the lawyers listed in Best Lawyers cast more than 3.1
million votes on the legal abilities of other lawyers in the same
and related specialties.

Six Mintz Levin attorneys in the practice area of bankruptcy and
creditor-debtor rights law were among the 39:

  * Boston --  Daniel S. Bleck
               William W. Kannel
               Richard E. Mikels
               Paul J. Ricotta

   * New York -- Stuart Hirshfield

  *  San Diego -- Jeffry A. Davis


* Chapter 11 Cases With Assets & Liabilities Below $1,000,000
-------------------------------------------------------------
Recent Chapter 11 cases filed with assets and liabilities below
$1,000,000:

In Re 60 Pebble, LLC
   Bankr. D. Nev. Case No. 10-24578
      Chapter 11 Petition Filed August 2, 2010
         See http://bankrupt.com/misc/nvb10-24578.pdf

In Re Carpet City of Rahway, Inc.
   Bankr. D. N.J. Case No. 10-33778
      Chapter 11 Petition Filed August 2, 2010
         See http://bankrupt.com/misc/njb10-33778.pdf

In Re Curlew Company, LLC
   Bankr. D. S.C. Case No. 10-05541
      Chapter 11 Petition Filed August 2, 2010
         See http://bankrupt.com/misc/scb10-05541.pdf

In Re Forest Grove, LLC
   Bankr. D. S.C. Case No. 10-05542
      Chapter 11 Petition Filed August 2, 2010
         See http://bankrupt.com/misc/scb10-05542.pdf

In Re Beechnut & Highway 6, L.P.
        aka Beechnut Village Shopping Center
   Bankr. S.D. Texas Case No. 10-36535
      Chapter 11 Petition Filed August 2, 2010
         See http://bankrupt.com/misc/txsb10-36535.pdf

In Re Miam Enterprise, Ltd.
   Bankr. W.D. Texas Case No. 10-52943
     Chapter 11 Petition Filed August 2, 2010
         Filed As Pro Se

In Re Shamrock RV, LLC
   Bankr. W.D. Texas Case No. 10-52915
      Chapter 11 Petition Filed August 2, 2010
         See http://bankrupt.com/misc/txwb10-52915.pdf



                           *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR.  Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts.  The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

The Sunday TCR delivers securitization rating news from the week
then-ending.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                           *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.

Copyright 2010.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each.  For subscription information, contact Christopher
Beard at 240/629-3300.


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