/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100816.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, August 16, 2010, Vol. 14, No. 226 Headlines 1800HOTELS4U LLC: Royal Bank of Scotland Units Seek Probe ALBRIGHT TRAILER: Case Summary & 20 Largest Unsecured Creditors ALL AMERICAN: Issues New Warrant to H.I.G. All American ALL YOU: Asks for Court Okay to Use Cash Collateral AMERICAN HOUSING: Trustee Files Plan to Liquidate Assets ALTAGAS LTD: S&P Assigns 'BB+' Rating on Preferred Shares AMH HOLDINGS: Posts $19.78 Million Net Income for July 3 Quarter ARIZONA HEART: Wants to Sell All of Assets for $6.05 Million ARROW AIR: To Auction Business Operations on August 25 ARROW AIR: Files Schedules of Assets and Liabilities ASSOCIATED MATERIALS: Posts $20.78 Mil. Net Income for July 3 Qtr ATLANTIC BANC: Amends 2009 Report to Include Revised Disclosures AUGUSTA APARTMENTS: Robert Johns Appointed as Chapter 11 Trustee AXESSTEL INC: $5.3 Million Past Due to Primary Manufacturer BRANDON J. ENTERPRISES: Voluntary Chapter 11 Case Summary BROWN PUBLISHING: Wants Continued Access to PNC Bank's Cash CAPITAL GROWTH: Selling Assets Under Plan; Lenders Bid $30MM CAPRI I: Taps Marquis & Aurbach to Handle Reorganization Case CARDIMA INC: Posts $3.8 Million Net Loss in Q2 Ended June 30 CARDTRONICS INC: Moody's Raises Corporate Famiy Rating to 'B1' CARDTRONICS INC: S&P Puts 'BB-' Rating on $200 Mil. Senior Notes CARIBBEAN PETROLEUM: Case Summary & 30 Largest Unsecured Creditors CARROLL PROPERTIES: Case Summary & 3 Largest Unsecured Creditors CEDARLAKE VILLAGE: BofA Questions Feasibility of Exit Plan CEDARS SUMMIT: Case Summary & 4 Largest Unsecured Creditors CHAPARRAL ENERGY: Posts $24 Million Net Income for June 30 Quarter CHEM RX: Creditors' Proofs of Claim Due By Sept. 13, 2010 CHEMTURA CORP: Court OKs Amended Plan Support Agreement CHEMTURA CORP: Gets Court's Nod to Prefund $1 Bil. Exit Facility CHEMTURA CORP: Proposes Contract Interest Rate Procedures CHEMTURA CORP: Wins Nod for 2nd Amendment to $450MM DIP Facility CHRISTENSEN REALTY: Voluntary Chapter 11 Case Summary CINEMARK INC: Bank Debt Trades at 2% Off in Secondary Market CIT GROUP: S&P Assigns 'BB' Rating on $3 Bil. Senior Loan CLEAR CHANNEL: Bank Debt Trades at 20% Off in Secondary Market COMSTOCK MINING: Enters Mining Lease with New Daney CONTRACTORS' CAPITAL: Case Summary & 20 Largest Unsec. Creditors DANNY PLANAVSKY: Discovery Failure Bars Second Tax Lawsuit DEAN FOODS: Bank Debt Trades at 6% Off in Secondary Market DECISIONPOINT SYSTEMS: June 30 Balance Sheet Upside-Down by $5MM DEX MEDIA EAST: Bank Debt Trades at 20% Off in Secondary Market EASTON-BELL: Posts $20.1MM Operating Income for July 3 Quarter ELAN FINANCE: S&P Assigns 'B' Rating on $200 Mil. Senior Notes ELIMINATOR CUSTOM: Case Summary & 20 Largest Unsecured Creditors EMPIRE RESORT: Terminates 40-Year Contract with Concord FAIRMOUNT MINERALS: S&P Assigns 'BB-' Corporate, Stable Outlook FGIC CORP: Files Chapter 11 Plan; Up to 3% Recovery for Unsecureds FNB UNITED: Posts $24.9 Million Net Loss in Q2 Ended June 30 FORD MOTOR: Bank Debt Trades at 3% Off in Secondary Market FOURTH QUARTER: Section 341(a) Meeting Scheduled for Sept. 2 FOURTH QUARTER: Taps Stone & Baxter as Bankruptcy Counsel GARY CLARK: Case Summary & 20 Largest Unsecured Creditors GENERAL GROWTH: S&P Withdraws 'D' Corporate Credit Rating GEORGE W. PARK: Assets to Go on Auction Block August 23 GOODYEAR TIRE: Fitch Assigns 'B/RR5' Rating on New Senior Notes GREENWOOD ESTATES: Gets Interim Okay to Use Cash Collateral HAWKER BEECHCRAFT: Bank Debt Trades at 20% Off in Secondary Market HCA INC: June 30 Balance Sheet Upside-Down by $10.52 Billion HEALTHSOUTH CORP: Bank Debt Trades at 2% Off in Secondary Market HOLIDAY 360: Has Access to Hall Lenders' Cash Until September 30 I-10 BARKER: Asks for Court Okay to Use Cash Collateral I-10 BARKER: Section 341(a) Meeting Scheduled for Sept. 2 I-10 BARKER: Taps James Jameson as Bankruptcy Counsel IMAGEWARE SYSTEMS: Amends Promissory Note Issued to BET Funding INFERX CORPORATION: Posts $691,740 Net Loss in Q1 Ended March 31 IRIS ENTERPRISES: Case Summary & 4 Largest Unsecured Creditors IRVINE SENSORS: June 30 Balance Sheet Upside Down by $7.86MM ISE CORP: Financial Woes Prompt Chapter 11 Bankruptcy Filing ISE CORP: Case Summary & 20 Largest Unsecured Creditors JACK LAIRD: Case Summary & Largest Unsecured Creditor JANICE BECKER: Voluntary Chapter 11 Case Summary JOHN LEMKE: Case Summary & 3 Largest Unsecured Creditors JOSEPH DANENZA: Voluntary Chapter 11 Case Summary JUAN EXPOSITO: Case Summary & 20 Largest Unsecured Creditors KENTUCKIANA HEALTHCARE: Case Summary & 6 Largest Unsec Creditors LAKE SHADOW: Case Summary & 17 Largest Unsecured Creditors LAS VEGAS SANDS: Bank Debt Trades at 8% Off in Secondary Market LAUREATE EDUCATION: Bank Debt Trades at 9% Off in Secondary Market LEED CORP: Wants Access to Lenders' Cash Collateral LEED CORP: Wants to Borrow $750,000 to Finish Project LEXINGTON PRECISION: Aurora Paid $60-Million for 75% Stake LYONDELL CHEMICAL: Asks Court to Block Highland Suit MANTIFF ALTOONA: Case Summary & 20 Largest Unsecured Creditors MCCLATCHY COMPANY: Files Form 10-Q; Earns $7.28 Million in Q2 2010 MEDICAL CARD: Moody's Assigns 'B2' Rating on Senior Secured Debt METRO-GOLDWYN-MAYER: Debt Trades at 58% Off in Secondary Market MEXICANA AIRLINES: Needs $100MM to Keep Flying, Says CEO MEXICANA AIRLINES: To Reduce Flights, Stop Paying Staff MICHAELS STORES: Bank Debt Trades at 6% Off in Secondary Market MEDICAL CONNECTIONS: Posts $2.0 Million Net Loss in Q2 2010 MELISSA MILLER: Case Summary & 4 Largest Unsecured Creditors MICHAEL DITMORE: Case Summary & 12 Largest Unsecured Creditors MIDWEST BANC: Delays Form 10-Q as Bank Seized Last May MONEYGRAM INTERNATIONAL: Files Form 10Q; Earns $6.8MM in Q2 2010 MT VERNON MONETARY: Court Okays Auction of NowCash Unit NASPP, INC: Case Summary & 20 Largest Unsecured Creditors NATIONAL COAL: Swings to $249,000 Net Income in Q2 2010 NIELSEN COMPANY: Bank Debt Trades at 3% Off in Secondary Market NORTH BAY: To Present Chapter 11 Plan for Confirmation on Sept. 16 NORTHERN 120: Hearing on Plan Outline Continued Until Sept. 14 NORTHLAND INVESTMENTS: Settles Hawthorn Bank's Dismissal Motion NOVASTAR FINANCIAL: June 30 Balance Sheet Upside Down by $102MM OPTI CANADA: To Offer US$400-Mil. in Notes in Private Placement OSI RESTAURANT: Bank Debt Trades at 13% Off in Secondary Market PALOS BANK AND TRUST: Closed; First Midwest Bank Assumes Deposits PARADIGM HOLDINGS: June 30 Balance Sheet Upside-Down by $1.8MM PARAMOUNT HEALTHCARE: Case Summary & Largest Unsecured Creditor PINNACLE FOODS: Bank Debt Trades at 5% Off in Secondary Market POSTROCK ENERGY: Posts $9.6 Million Net Loss in Q2 Ended June 30 REAL MEX: Posts $770,000 Net Loss for June 27 Quarter RBC DEVELOPMENT: Case Summary & 4 Largest Unsecured Creditors REDCO DEV'T: Files List of 10 Largest Unsecured Creditors REDCO DEV'T: Section 341(a) Meeting Scheduled for Sept. 7 REGAL ENTERTAINMENT: Prices Offering for $275-Mil. of Senior Notes REGENCY ENERGY: Zephyr Deal Modestly Positive for Credit Profile RESPONSE GENETICS: June 30 Balance Sheet Upside-Down by $1.7MM RESPONSE BIOMEDICAL: Posts C$1.87 Million Net Loss in Q2 2010 RICHARD NAHIGIAN: Case Summary & 8 Largest Unsecured Creditors RITE AID: Bank Debt Trades at 11% Off in Secondary Market RIVER ROAD: Court Grants FDIC's Bid to Intervene Bankruptcy Case ROBERT POULIOT: Case Summary & 20 Largest Unsecured Creditors RUFFIN ROAD: Case Summary & 2 Largest Unsecured Creditors RYAN PERRY: Case Summary & 20 Largest Unsecured Creditors SANLUIS CORPORACION: Fitch Cuts Issuer Default Ratings to 'RD' SBARRO INC: June 30 Balance Sheet Upside-Down by $10.8 Million SEA ISLAND: Case Summary & 30 Largest Unsecured Creditors SHANE CO: Files Plan, Offers to Repay Nearly 100% of Claims SHAWN MCBRIDE: Case Summary & 20 Largest Unsecured Creditors SHELDRAKE LOFTS: Case Summary & 17 Largest Unsecured Creditors SPA AT SUNSET: Case Summary & 10 Largest Unsecured Creditors SPX CORPORATION: Moody's Upgrades Ratings on Senior Notes to 'Ba1' SS QUALITY: Voluntary Chapter 11 Case Summary STATION CASINOS: Fertitta Is Winning Bidder for Opco Assets STATION CASINOS: Fertitta, et al., Back Chapter 11 Plan STATION CASINOS: Reaches Deal With Committee on Lawsuits STEVE WALKER, III: Voluntary Chapter 11 Case Summary STONE*WALL FARM: Sues Fifth Third et al. to Recover Property STONE*WALL FARM: Case Summary & 20 Largest Unsecured Creditors SUMMIT HOTEL: Inks Agreement And Plan of Merger With New Partner SUN-TIMES MEDIA: PBGC Assumes 7 Pension Liabilities SUPERCONDUCTOR TECH: Posts $3.1 Million Net Loss in Q2 2010 TERRACE POINTE: Has Until August 20 to Use Bank of America's Cash TATOU SUPPER: Case Summary & 20 Largest Unsecured Creditors THREE SISTERS: Case Summary & 20 Largest Unsecured Creditors TOR MINERALS: Earns $470,000 in Second Quarter of 2010 TOWNSEDGE TELLURIDE: Case Summary & 6 Largest Unsecured Creditors TOYS "R" US: Fitch Assigns 'B-/RR5' Ratings on New Term Loan TOYS "R" US: S&P Assigns 'BB-' Rating on Secured Term Loan TRAILS EDGE: Case Summary & 2 Largest Unsecured Creditors TRAVELPORT LLC: Moody's Affirms 'B2' Corporate Family Rating TRAVELPORT LLC: S&P Assigns 'CCC+' Rating on $250 Mil. Notes TRIBUNE CO: Bank Debt Trades at 37% Off in Secondary Market TRICO MARINE: Hires AlixPartners' John Castellano as CRO TRICO MARINE: Likely to Default on Covenants; Delays 10-Q Report TYCOON DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors UAL CORP: Bank Debt Trades at 10% Off in Secondary Market UAL CORP: Extends Travelport Distribution Pact UAL CORP: Four D&Os Disclose Ownership of Common Stock US FOODSERVICE: Bank Debt Trades at 11% Off in Secondary Market VALLEY RIVER: Case Summary & Largest Unsecured Creditor VBK SANTOSHI: Case Summary & 4 Largest Unsecured Creditors VENETIAN MACAU: Bank Debt Trades at 2% Off in Secondary Market VIEW SYSTEMS: Earns $199,703 in Q2 Ended June 30 VILLAGE AT CAMP: Court Extends Filing of Schedules Until Aug. 26 VILLAGE AT CAMP: Section 341(a) Meeting Scheduled for Sept. 3 VILLAGEEDOCS INC: Voluntarily Deregisters Common Stock WARREN STANSBERRY: Case Summary & 5 Largest Unsecured Creditors WEST CORP: 2013 Bank Debt Trades at 5% Off in Secondary Market WEST CORP: 2016 Bank Debt Trades at 2% Off in Secondary Market WINDHAM INVESTMENTS: Voluntary Chapter 11 Case Summary WISE METALS: Posts $2.3 Million Net Loss for June 30 Quarter WOODBRIDGE APARTMENTS: Voluntary Chapter 11 Case Summary WOODS OF NORTHLAND: Case Summary & 7 Largest Unsecured Creditors XM SATELLITE: Earns $35.68 Million in Q2 Ended June 30 * 258 Car Dealerships Closed Doors in First Half 2010 * Tribal Casinos Struggling with Debt Amid Downturn * BOND PRICING -- For the Week From August 9 to 13, 2010 ******** 1800HOTELS4U LLC: Royal Bank of Scotland Units Seek Probe --------------------------------------------------------- Dow Jones' DBR Small Cap reports that two Royal Bank of Scotland Group PLC banks want to probe 1800Hotels to determine the whereabouts of the more than $10 million they advanced to book those rooms. The U.K. bank group's retail branches, Ulster Bank in Ireland and National Westminster Bank in England, are urging the U.S. Bankruptcy Court in Tampa to allow them to launch an investigation into the books and records of the Web site's operator, 1800Hotels4U LLC. 1800Hotels4U, which operates out of Florida and has an Irish affiliate, sought Chapter 11 protection last month as the hotels its customers booked online began to cancel those reservations because the company never turned over customers' payments for the rooms. About 1800Hotels4U Based in Tampa, Florida, 1800Hotels4U, LLC, dba 1800Hotels.com, for Chapter 11 on July 13 (Bankr. M.D. Fla. Case No. 10-16648). Judge Caryl E. Delano presides over the case. Steven M. Berman, Esq., and Hugo S. de Beaubien, Esq., at Shumaker, Loop & Kendrick, LLP, in Tampa, Florida, represent the Debtors. 1800Hotels4U estimated $1 million to $10 million in total assets, and $100,000 to $500,000 in total debts in its Chapter 11 petition. Parent Happy Duck Limited filed on July 12 (Bankr. M.D. Fla. Case No. 10-16655). Happy Duck estimated $1 million to $10 million in total assets and debts. ALBRIGHT TRAILER: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Albright Trailer Manufacturing, LLC 601 Briskin Lane Lebanon, TN 37087 Bankruptcy Case No.: 10-08435 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Marian F. Harrison Debtor's Counsel: Roy C. Desha, Jr., Esq. DESHA WATSON PLLC 1106 18th Ave. South Nashville, TN 37212 Tel: (615) 369-9600 Fax: (615) 369-9613 E-mail: bknotice@deshalaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tnmb10-08435.pdf The petition was signed by Stephen Todd Albright, managing member. ALL AMERICAN: Issues New Warrant to H.I.G. All American ------------------------------------------------------- All American LLC issued on Aug. 5, 2010, a new warrant to H.I.G. All American LLC in connection with the exercise by H.I.G. of warrants to purchase 20,483,865 common shares the Company. The New Warrant is exercisable for the number of shares necessary to maintain H.I.G.'s percentage ownership of All American's common shares if it issues, on a fully diluted basis, more than 36,887,274 common shares. The New Warrant was issued pursuant to anti-dilution provisions contained in the Loan Agreement dated October 27, 2009, among H.I.G., the company and its subsidiaries, as amended, and related documents. About All American Group Elkhart, Indiana-based All American Group, Inc., formerly Coachmen Industries, Inc., (OTC:COHM.PK) says it is one of America's premier systems-built construction companies under the ALL AMERICAN BUILDING SYSTEMS(R), ALL AMERICAN HOMES(R), and MOD-U- KRAF(R) brands, as well as a manufacturer of specialty vehicles. At March 31, 2010, the Company had total assets of $86.574 million, total liabilities of $45.832 million, and a shareholders' equity of $40.742 million. * * * McGladrey & Pullen LLP, in Elkhart, Indiana, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2009 results. The auditors noted that Coachmen has suffered recurring losses from operations and continues to operate in an industry where economic recovery has been very slow. ALL YOU: Asks for Court Okay to Use Cash Collateral --------------------------------------------------- All You, LLC, asks for authorization from the U.S. Bankruptcy Court for the Western District of Arkansas to use cash securing its obligations to its prepetition lenders. The Debtor proposes to account monthly for the collection and expenditure of the cash collateral via the required monthly operating report pursuant to the regulations of the Office of the U.S. Trustee. Don Brady, Jr., Esq., at Blair and Brady, says that the Debtor will account for all rents and revenues received and proposes to use the cash collateral in this manner: a) The Debtor has no employee wages or other such expense. Therefore, no money will be used for that purpose; b) The Debtor will continue to pay the utilities and upkeep on the property which the Debtor estimates to be $4,000.00 per month, more or less; c) The Debtor will retain in the debtor-in-possession account sufficient monthly revenue to pay and keep current the taxes and insurance due on the properties; d) The Debtor will pay over to First Security Bank all remaining revenues up to the ongoing monthly debt obligation. Any money not used will accumulate in a debtor in possession operational account and distributed as directed by a confirmed plan. Fayetteville, Arkansas-based All You, LLC, filed for Chapter 11 bankruptcy protection on August 2, 2010 (Bankr. W.D. Ark. Case No. 10-74049). Donald A. Brady, Jr., Esq., at Blair & Brady Attorneys At Law, assists the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $10,983,200 in total assets and $5,513,647 in total liabilities as of the Petition Date. AMERICAN HOUSING: Trustee Files Plan to Liquidate Assets -------------------------------------------------------- Kevin Welch at Amarillo.com reports that Walter O'Cheskey, the Chapter 11 U.S. trustee of American Housing Foundation filed a plan that outlines the liquidation of the Company's assets. According to the report, the Plan includes stabilizing 1,675 apartment and duplex units, including 324 in Amarillo, to sell them within two years and walking away from direct or indirect ownership of 10,609 units, 1,431 of them in Amarillo. The Plan intends to pay off about $104.6 million in claims. Other funds will come from the sale of apartments complexes, $24 million in life insurance benefits and other sources. Secured creditors owed $19.1 million, according to the report, would either get their collateral back or the proceeds of selling the property and all others likely will not get anything under the plan. The Plan does not address bondholders owed about $250 million who gave no legal recourse against the Company. About American Housing Founded as a Texas 501(c)(3) non-profit corporation in 1989, American Housing Foundation owns and operates over 12,500 residential units, making AHF one of the nation's largest entities primarily dedicated to the workforce housing market. Residents in AHF properties benefit from significantly below market rental rates. AHF filed for Chapter 11 on June 11, 2009 (Bankr. N.D. Tex. Case No. 09-20373). Judge Robert L. Jones handles the case. Robert Yaquinto, Jr., Esq., at Sherman & Yaquinto, LLP, represents the Debtor in its restructuring efforts. At the time of the filing, AHF estimated it had assets and debts of $100 million to $500 million. Nine creditors had filed an involuntary petition to send AHF to Chapter 11 in April 2009. Robert L. Templeton, who asserts a $5.1 million claim on account of an investment, has the largest claim among the petitioners, which are being represented by David R. Langston, Esq., at Mullin, Hoard & Brown, in Lubbock, Texas. Walter O'Cheskey, as Chapter 11 trustee is now managing the Chapter 11 case of AHF. Focus Management Group serves as adviser to the trustee. ALTAGAS LTD: S&P Assigns 'BB+' Rating on Preferred Shares --------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'BB+' global scale and 'P-3 (High)' Canada scale preferred share ratings to Alberta-based AltaGas Ltd.'s C$200 million cumulative five-year rate reset preferred shares, series A. "The rating on the preferred shares reflects S&P's methodology on hybrid instruments and the credit rating of AltaGas," said Standard & Poor's credit analyst Bato Kacarevic. The dividend on the preferred shares will be reset every five years and will initially be 5% per year, payable quarterly. In addition, S&P will provide 50% equity treatment to the shares because they have no fixed maturity date, they are subordinate to the senior debt, and dividends can be deferred. The company will use the proceeds to reduce bank debt and fund project construction AltaGas is an integrated energy company that operates primarily in five business segments, which provide diversification and reduce business risk: field gathering and processing, extraction and transmission, power generation, regulated gas distribution and energy services. S&P expects the power segment to represent approximately half of the company's fiscal 2010 operating income. Total consolidated, unadjusted debt outstanding as of Dec. 31, 2009, was approximately C$1 billion. The 'BBB' corporate credit rating on AltaGas reflects Standard & Poor's assessment of the company's operations in fee-based gas and power infrastructure, prudent financial practices, and effective strategy execution. Ratings List AltaGas Ltd. Corporate credit rating BBB/Stable/-- Rating Assigned C$200 mil. five-year rate-reset preferred shares Global scale BB+ Canada scale P-3 (High) AMH HOLDINGS: Posts $19.78 Million Net Income for July 3 Quarter ---------------------------------------------------------------- AMH Holdings LLC filed its quarterly report on Form 10-Q, reporting a net income of $19.78 million on $328.32 million of net sales for the quarter ended July 3, 2010, compared with a net income of $9.33 million on $274.96 million of net sales for the quarter ended July 4, 2009. The Company's balance sheet at July 3, 2010, showed $847.90 million in total assets, $231.69 million in total current liabilities, $39.94 million in deferred income taxes, $59.95 million in other liabilities, $643.67 million in long-term debt, and a $127.36 million members' deficit. A copy of the Form 10-Q filed with the Securities and Exchange Commission is available for free at: http://researcharchives.com/t/s?68ee About AMH Holdings AMH Holdings, LLC, formerly AMH Holdings Inc., has no material assets or operations other than its 100% ownership of Associated Materials Holdings, LLC, which in turn has no material assets or operations other than its 100% ownership of Associated Materials, LLC. Associated Materials is a manufacturer and distributor of exterior residential building products in the United States and Canada. Associated Materials' core products include vinyl windows, vinyl siding, aluminum trim coil, and aluminum and steel siding and accessories. Because most of the Company's building products are intended for exterior use, the Company's sales and operating profits tend to be lower during periods of inclement weather. * * * According to Troubled Company Reporter on May 26, 2010, Standard & Poor's Ratings Services raised its corporate credit ratings on Cuyahoga Falls, Ohio-based AMH Holdings LLC and its operating subsidiary, Associated Materials LLC, to 'B-' from 'CCC+'. At the same time, S&P raised the issue-level rating on AMI's senior secured second-lien notes due 2016 to 'B' (one notch above the corporate credit rating) from 'CCC'. ARIZONA HEART: Wants to Sell All of Assets for $6.05 Million ------------------------------------------------------------ Arizona Heart Institute, Ltd., asks for authorization from the U.S. Bankruptcy Court for the District of Arizona to sell substantially all of its assets free and clear of all liens, claims and encumbrances. On July 30, 2010, the Debtor entered into an Asset Purchase Agreement with Hospital Development Company Number I, Inc. (the Proposed Buyer). Under the APA, the Proposed Buyer will acquire the assets for $6,050,000, plus (i) the Debtor's net cost of certain unopened, unexpired, undamaged and non-sample medical supplies and inventory; less, (i) the net book value as of the Closing Date of the Debtor's debtor-in-possession, bridge loan or similar financing or indebtedness related to the bankruptcy case, and any long-term indebtedness or capital leases assumed by Proposed Buyer at Closing (anticipated to occur on September 15, 2010); (ii) accrued vacation and other payable time off assumed by the Proposed Buyer, together with estimated taxes thereon; and (iii) the agreed upon value of any other liabilities that Proposed Buyer agrees to assume. Hospital Development will assume these liabilities: (i) post- closing obligations under executory agreements; and (ii) certain accrued wages, salaries and employee benefits related to employees retained by the Proposed Buyer post-closing. In the event that the Debtor receives bids other than that of Hospital Development's, the APA contemplates that the Court schedule an auction two business days prior to the date of the Sale Hearing. The APA also contemplates that, if the Court so orders, the Auction may be conducted by the Court at the Sale Hearing. The sale hearing will be held the day after the Debtor files a summary of the auction. Competing bids must be submitted by 5:00 p.m. (MST) seven days before the Sale Hearing. The bid must, among other things, provide all-cash consideration in an amount of at least $6,550,000. The Proposed Buyer and any other qualified bidder may increase their respective bids as many times as they choose, provided that each subsequent bid must exceed the prior bid by at least $100,000. In the event that Hospital Development isn't the winning bidder, it will be entitled to a Break-up Fee equal to 4% of the eventual sale price approved by the Court plus reasonable out-of-pocket legal and other fees and expenses not to exceed $250,000 as well as the return of the $500,000 good faith deposit, which is already included in the Purchase Price. About American Heart Phoenix, Arizona-based Arizona Heart Institute, Ltd., is a specialty outpatient clinic dedicated to the prevention, detection and treatment of cardiovascular diseases. It was founded by Edward B. Diethrich, M.D., in 1971, and at its height operated numerous offices across the Phoenix metropolitan area. 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. In its schedules, the Debtor disclosed $16,925,342 in assets and $8,115,541 in debts. ARROW AIR: To Auction Business Operations on August 25 ------------------------------------------------------ A. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida authorized Arrow Air, Inc., and Arrow Air Holdings Corp. to auction their assets and authorities comprising their business operations. The Debtors scheduled an auction on August 25, 2010, at 10:00 a.m., prevailing Eastern Time at the offices of Berger Singerman. Bids are due on August 23, at 5:00 p.m. MP Arrow III, LLC, the Debtors' primary secured lender may exercise its right to credit bid at the auction all or a portion of its indebtedness without the need to submit a bid proposal or deposit. The Court will consider the sale of the assets to the winning bidder at a hearing on August 26, at 2:00 p.m. The Debtors are represented by: Jordi Guso, Esq. Berger Singerman, P.A. 200 S. Biscayne Blvd., Suite 1000 Miami, FL 33131 Tel: (305) 755-9500 Fax: (305) 714-4340 About Arrow Air, Inc. Miami, Florida-based Arrow Air, Inc., provides scheduled and charter cargo logistics services between the United States, Central and South America, and the Caribbean. The Company is a wholly owned subsidiary of Arrow Air Holdings Corp., which is 95% owned by an affiliate of MatlinPatterson Global Opportunities Partners III. Arrow Air, Inc., dba Arrow Cargo, filed for Chapter 11 bankruptcy protection on June 30, 2010 (Bankr. S.D. Fla. Case No. 10-28831). Jordi Guso, Esq., who has an office in Miami, Florida, represents the Debtor in its restructuring effort. The Company disclosed $40,246,024 in total assets and $87,212,942 in total liabilities as of the Petition Date. The Chapter 11 case is Arrow's third. Arrow halted operations the day before the Chapter 11 filing. Arrow Air intends to liquidate under Chapter 1. ARROW AIR: Files Schedules of Assets and Liabilities ---------------------------------------------------- Arrow Air, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $40,246,024 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $54,280,859 E. Creditors Holding Unsecured Priority Claims $64,470 F. Creditors Holding Unsecured Non-priority Claims $32,867,613 ----------- ----------- TOTAL $40,246,024 $87,212,942 A debtor-affiliate, Arrow Air Holdings Corp., scheduled total assets of $0 and total liabilities of $62,074,528. Miami, Florida-based Arrow Air, Inc., provides scheduled and charter cargo logistics services between the United States, Central and South America, and the Caribbean. The Company is a wholly owned subsidiary of Arrow Air Holdings Corp., which is 95% owned by an affiliate of MatlinPatterson Global Opportunities Partners III. Arrow Air, Inc., dba Arrow Cargo, filed for Chapter 11 bankruptcy protection on June 30, 2010 (Bankr. S.D. Fla. Case No. 10-28831). Jordi Guso, Esq., in Miami, Florida, represents the Debtor in its restructuring effort. The Chapter 11 case is Arrow's third. Arrow halted operations the day before the Chapter 11 filing. Arrow Air intends to liquidate under Chapter 11. ASSOCIATED MATERIALS: Posts $20.78 Mil. Net Income for July 3 Qtr ----------------------------------------------------------------- Associated Materials LLC filed its quarterly report on Form 10-Q, reporting net income of $20.78 million on $328.32 million of net sales for the quarter ended July 3, 2010, compared with net income of $10.07 million on $274.96 million of net sales for the quarter ended July 4, 2009. Associated Materials and its subsidiaries' consolidated balance sheet at July 3, 2010, showed $849.49 million in total assets, $232.23 million in total current liabilities, $48.27 million in deferred income taxes, $59.96 million in other liabilities, $212.68 million in long-term debt, and a $296.34 million members' equity. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68e1 About Associated Materials Based in Cuyahoga Falls, Ohio, Associated Materials LLC fka Associated Materials Inc. -- http://www.associatedmaterials.com/ -- is a manufacturer of exterior residential building products, which are distributed through company-owned distribution centers and independent distributors across North America. AMI produces a broad range of vinyl windows, vinyl siding, aluminum trim coil, aluminum and steel siding and accessories, as well as vinyl fencing and railing. AMI is a privately held, wholly owned subsidiary of Associated Materials Holdings Inc., which is a wholly-owned subsidiary of AMH, which is a wholly owned subsidiary of AMH II, which is controlled by affiliates of Investcorp S.A. and Harvest Partners Inc. * * * The Troubled Company Reporter reported on April 21, 2010, that Standard & Poor's Ratings Services placed its 'CCC+' corporate credit and issue-level ratings on Associated Materials LLC and its parent company, AMH Holdings LLC, on CreditWatch with positive implications. ATLANTIC BANC: Amends 2009 Report to Include Revised Disclosures ---------------------------------------------------------------- Atlantic BancGroup, Inc., in response to comments received from the Securities and Exchange Commission's staff, has amended its annual report for the fiscal year ended December 31, 2009, to include revised disclosures concerning its loan classifications, allowance for loan and lease losses, loans and nonperforming assets identified by the Federal Deposit Insurance Corporation in its November 2008 examination, and the tracking of FDIC-identified loans and nonperforming assets as required under the Consent Order executed January 7, 2010. Specifically, the revised disclosures in the Amendment: -- Identified the composition of assets classified by the FDIC in its November 2008 exam and the issues identified by the FDIC that gave rise to their classifications. -- Address how the required reductions in the classified assets are expected to affect the Company's losses. -- More clearly describe how the regulatory requirement to reduce these balances was considered in developing the Company's allowance for loan losses at December 31, 2009, and for interim periods in 2010. The Company also revised its references to conform to the recent Accounting Standards Codification for the following: -- ASC 450-20 (formerly SFAS No. 5, Accounting for Contingencies) -- ASC 310-10-35 (formerly SFAS No. 114, Accounting by Creditors for Impairment of a Loan) No other information in the original report, other than the filing of the revised disclosures, is amended. A full-text copy of the Amendment is available for free at: http://researcharchives.com/t/s?68b9 Jacksonville Beach, Fla.-based Atlantic BancGroup, Inc. (NasdaqCM: ATBC) is a publicly traded bank holding company. The Company is the parent company of Oceanside Bank, with four locations in the Jacksonville Beaches and East Jacksonville, Florida. As reported in the Troubled Company Reporter on April 21, 2010, the Company reported a net loss of $7.2 million for 2009, compared with a net loss of $1.9 million for 2008. The Company's balance sheet as of December 31, 2009, showed $297.4 million in total assets, $287.7 million in total liabilities, and stockholders' equity of $9.7 million. Mauldin & Jenkins, CPA's, LLC, in Albany, Ga., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered significant losses from operations and capital has been significantly depleted due to the economic downturn. AUGUSTA APARTMENTS: Robert Johns Appointed as Chapter 11 Trustee ---------------------------------------------------------------- The Hon. Patrick M. Flatney of the U.S. Bankruptcy Court for the Northern District of West Virginia approved the appointment of Robert L. Johns as Chapter 11 trustee in the reorganization cases of Augusta Apartments, LLC, et al. First United Bank and Trust, a secured creditor, and W. Clarkson McDow, Jr., the U.S. Trustee for Region 4, sought for the appointment of a trustee for each of the Debtors' cases, explaining that, among other things: -- the Plan of Reorganization in McCoy 6, LLC, does not appear to be feasible; -- prepetition, the management used the funds from the Augusta Apartments and Grand Central to pay the debts of other Warner entities and family members; and -- Donald Dempsey, the on site manager for the Augusta Apartments, testified that he has received inquiries from perspective purchasers for the Augusta Apartments assets. About Augusta Apartments, LLC Morgantown, West Virginia-based Augusta Apartments, LLC, filed for Chapter 11 bankruptcy protection on February 19, 2010 (Bankr. N.D. W.Va. Case No. 10-00303). Robert O. Lampl, Esq., at Robert O Lampl Law Office, assists the Company in its restructuring efforts. The Company estimated its assets and debts at $10,000,001 to $50,000,000 as of the Petition Date. AXESSTEL INC: $5.3 Million Past Due to Primary Manufacturer ----------------------------------------------------------- Axesstel Inc. filed its quarterly report on Form 10-Q with the Securities and Exchange Commission. As reported in the Troubled Company Reporter on Aug. 13, 2010, the Company reported a net loss of $1.4 million on revenue of $11.2 million in the second quarter of 2010. The Company reported a net loss of $1.4 million on $11.9 million of revenue in the second quarter of 2009. The Company's balance sheet at June 30, 2010, showed $11.81 million in total assets, $21.07 million in total current liabilities, and a $9.25 million stockholders' deficit. The Company stated in the Form 10-Q, "We are working with a number of lenders and anticipate that we will be able to continue to secure financing in the upcoming quarters. If, however, our customers cannot secure their payment obligations to us through letters of credit, credit insurance or other collateral, we may not be able to accept orders. Similarly, any restrictive change in open credit terms from our contract manufacturers, as a result of credit restrictions imposed by their lenders or otherwise, may disrupt our ability to accept and fulfill purchase orders and negatively impact our results of operations. "At June 30, 2010, we owed our primary manufacturer $9.7 million, of which $5.3 million was past due under the terms of our credit arrangement. Although we expect to further reduce the past due amounts in the second half of 2010, our primary manufacturer has imposed shipment delays and manufacturing delays in the past when our account has been significantly past due. Any change in open credit terms from our contract manufacturers, as a result of credit restrictions imposed by their lenders or otherwise, may disrupt our ability to accept and fulfill purchase orders and negatively impact our results of operations," the Company added. "Poor operating results since the beginning of 2009 have greatly reduced our working capital position from $241,000 at December 31, 2008 to a deficit of $9.9 million at June 30, 2010. While we have diversified our product and customer base, we expect that we will continue to face significant fluctuations in quarterly operating results over the next year. Because of our limited cash position, a temporary reduction in cash flow from operations could have a significant impact on our ability to fund operations." A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?68b3 A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68de About Axesstel, Inc. San Diego, Calif.-based Axesstel, Inc. (OTC BB: AXST) -- http://www.axesstel.com/-- is a provider of fixed wireless voice and broadband access solutions for the worldwide telecommunications market. * * * As reported in the Troubled Company Reporter on March 29, 2010, Gumbiner Savett Inc., in Santa Monica, Calif., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that the Company has historically incurred substantial losses from operations, and the Company may not have sufficient working capital or outside financing available to meet its planned operating activities over the next 12 months. At March 31, 2010, the Company owed its primary manufacturer $9.7 million, of which $6.1 million was past due under the terms of its credit arrangement. BRANDON J. ENTERPRISES: Voluntary Chapter 11 Case Summary --------------------------------------------------------- Debtor: Brandon J. Enterprises, LLC 935 Derbigny Street Gretna, LA 70053 Bankruptcy Case No.: 10-12918 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Eastern District of Louisiana (New Orleans) Judge: Elizabeth W. Magner Debtor's Counsel: Thomas E. Schafer, III, Esq. 328 Lafayette Street New Orleans, LA 70130 Tel: (504) 522-0203 Fax: (504) 523-2795 E-mail: tomschafer37@bellsouth.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Brandon J. Hidalgo, sole member and manager. BROWN PUBLISHING: Wants Continued Access to PNC Bank's Cash ----------------------------------------------------------- Brown Publishing Company and its units ask the U.S. Bankruptcy Court for the Eastern District of New York to extend their access to PNC Bank, N.A.'s cash collateral until August 29, 2010. The Debtors relate that they need access to the cash collateral because they were not able to close on the asset sale transaction to the stalking horse bidder, Brown Media Corporation. The Debtors will use the cash collateral to, among other things (a) pay their employees and vendors; and (b) satisfy any administrative expenses incurred in connection with the Chapter 11 cases. PNC Bank, N.A., as agent for itself and certain other lenders indicated that they would be unwilling to extend financing beyond the termination date. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders replacement liens, and superpriority administrative claims status. About Brown Publishing Company Headquartered in Cincinnati, Ohio, The Brown Publishing Company owns business publications in Ohio, Utah, Texas, South Carolina, New York, and Iowa. Brown publishes 15 daily, 32 weekly, 11 business and 41 free publications. There are also 51 websites. Seventy-eight of the publications are in Ohio. Brown publishes Dan's Papers, the weekly newspaper with the largest circulation in the area of eastern Long Island, New York, known as the Hamptons. Brown also publishes the Montauk Pioneer, which it calls the official newspaper of Montauk, New York. The Company filed for Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. E.D.N.Y. Case No. 10-73295). Edward M. Fox, Esq., at K&L Gates LLP, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. CAPITAL GROWTH: Selling Assets Under Plan; Lenders Bid $30MM ------------------------------------------------------------ Dow Jones DBR Small Cap reports that Global Capacity Group Inc. is seeking to sell itself to some of its bondholders and bankruptcy lenders for about $30 million, subject to higher bids at auction. According to Dow Jones, the proposed sale forms the backbone of Global Capacity's Chapter 11 plan of reorganization, which court papers show the company filed Wednesday. Buyers will have their choice of bidding for substantially all of Global Capacity's assets or all of the new equity in the restructured company. Dow Jones says Global Acquisition Newco Corp., an entity formed by several of Global Capacity's bondholders and bankruptcy lenders, is offering approximately $30 million for the company's assets. Two of the bid's several components include $27 million in debt forgiveness and a pledge to pay in cash any amounts owed to Downtown Capital under the $3 million bankruptcy loan it's providing. Downtown Capital Partners' Downtown CP-CGSY, LLC, is the Tranche A Lender and DIP Lender. The Debtors' DIP Lenders may be reached at: Gary Katz DOWNTOWN CP-CGSY, LLC c/o DOWNTOWN CAPITAL PARTNERS, LLC One Barker Avenue, Suite 260 White Plains, New York 10601 Email: gkatz@downtownlp.com - and - Richard Gammill BLACK RIVER GLOBAL EQUITY FUND LTD. 12700 Whitewater Drive Minnetonka, Minnesota 55343 Facsimile: 952-404-6107 The DIP Lenders are represented by: Jeffrey M. Wolf, Esq. GREENBERG TRAURIG, LLP One International Place Boston, Massachusetts 02110 Facsimile: (617) 310-6001 E-mail: wolfje@gtlaw.com - and - Adam H. Friedman, Esq. OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY, LLP Park Avenue Tower 65 East 55th Street New York, New York Facsimile: 212-451-2222 Email: afriedman@olshanlaw.com About Capital Growth Systems Headquartered in Chicago, Illinois, Capital Growth Systems, Inc., known as Global Capacity, and its subsidiaries operate in one reportable segment as a single source telecom logistics provider in North America and the European Union. The Company helps customers improve efficiency, reduce cost, and simplify operations of their complex global networks -- with a particular focus on access networks. Capital Growth Systems and its affiliates filed for Chapter 11 protection on. The lead debtor is Global Capacity Holdco LLC (Bankr. D. Del. Case No. 10-12302). Global Capacity Group Inc. estimated $10 million to $50 million in assets and debts in its petition. Douglas S. Draper, Esq., at Heller, Draper, Hayden, Patrick & Horn, L.L.C., and Francis A. Monaco, Jr., Esq., at Womble Carlyle Sandridge & Rice. CAPRI I: Taps Marquis & Aurbach to Handle Reorganization Case ------------------------------------------------------------- Capri I, LLC, asks the U.S. Bankruptcy Court for the District of Nevada for permission to employ Marquis & Aurbach as counsel. Marquis & Aurbach will, among other things: -- advise the Debtor of its rights and obligations and performance of its duties during the administration of the Chapter 11 case; -- represent the Debtor in all proceedings before the Court or other courts with jurisdiction over the Chapter 11 case; and -- assist the Debtor in the performance of its duties. David A. Colvin, Esq., an attorney at the firm, tells the Court that Marquis & Aurbach received a $25,000 prepetition retainer. The hourly rates of Marquis & Aurbach's personnel are: Attorney $425 Law Clerk/Paralegal $155 Legal Assistants $70 Mr. Colvin assures the Court that Marquis & Aurbach is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Colvin can be reached at: Marquis & Aurbach David A. Colvin, Esq. 10001 Park Run Drive Las Vegas, NV 89145 Tel: (702) 382-0711 E-mail: dcolvin@marquisaurbach.com The Debtor proposes a hearing on the approval of Marquis & Aurbach's employment on September 1, 2010, at 9:30 a.m. About Capri I, LLC Las Vegas, Nevada-based Capri I, LLC, filed for Chapter 11 bankruptcy protection on June 30, 2010 (Bankr. D. Nev. Case No. 10-22206). David A. Colvin, Esq., at Marquis & Aurbach, assists the Company in its restructuring effort. The Company estimated $50 million to $100 million in assets and $10 million to $50 million in liabilities. CARDIMA INC: Posts $3.8 Million Net Loss in Q2 Ended June 30 ------------------------------------------------------------ Cardima, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.8 million on $1.1 million of revenue for the three months ended June 30, 2010, compared with a net loss of $3.0 million on $415,000 of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $5.1 million in total assets, $1.5 million in total liabilities, and a stockholders' equity of $3.6 million. As reported in the Troubled Company Reporter on April 1, 2010, PMB Helin Donovan, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's recurring losses from operations and net capital deficiency. In the Company's latest 10-Q, the Company says that it has approximately $1.7 million of cash on hand as of June 30, 2010, and had working capital of $2.2 million. It has incurred losses since inception and it incurred losses in the three and six months ended June 30, 2010, and for the year ended December 31, 2009. These matters raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?68e8 Fremont, Calif.-based Cardima, Inc. (OTC BB: CADMD) -- http://Cardima.com/-- is a medical device company focused on the diagnosis and treatment of cardiac arrhythmias. CARDTRONICS INC: Moody's Raises Corporate Famiy Rating to 'B1' -------------------------------------------------------------- Moody's Investors Service raised Cardtronics, Inc.'s Corporate Family and Probability of Default Ratings to B1 from B2, and assigned a B2 rating to Cardtronics' proposed $200 million of senior subordinated notes offering, the proceeds from which will be used to refinance the Company's existing senior subordinated indebtedness. The ratings outlook was changed to stable from positive. The upgrade considers Cardtronics' steady deleveraging through improved profitability and repayment of debt, and the Company's enhanced free cash flow generation. Cardtronics' revenue and EBITDA increased driven by growth in Allpoint surcharge-free network and bank branded ATMs as well as the cost efficiencies implemented in 2009. Cardtronics' debt-to-EBITDA leverage has improved to 2.9x (Moody's adjusted, LTM 2Q 2010) and its free cash flow, while modest in size, has increased to 16% of adjusted debt, which are relatively strong for the B1 rating category and offset the modest asset coverage due to a low proportion of fixed assets comprising the Company's assets. The upgrade incorporates Moody's view that the Company will sustain its leverage at around 2.0x to 2.5x and its free cash flow will continue to improve with EBITDA growth and stable capital expenditures. The B1 Corporate Family Rating reflects Cardtronics' moderate levels of financial risk, good liquidity with no material debt maturities over the next five years, and good free cash flow generation relative to its scale. Cardtronics' rating benefits from the growth and scalability of its surcharge-free network under the Allpoint brand, which provides enhanced value to small and mid-sized financial institutions and regional banks by substantially augmenting their retail presence through access to 37,000 participating ATMs. The rating is further supported by Cardtronics' market position as the world's largest non-bank owner of ATMs, the stability of its recurring revenues from long term service contracts, which partially mitigates its large customer concentration, and the favorable credit profile of its large customers in the financial services and retail industries. However, Cardtronics' rating is constrained by its modest operating scale, the secular shift away from cash towards electronic forms of payments such as debt and credit cards, and the highly competitive ATM industry. The rating is also tempered by the uncertainty stemming from the potential for regulatory changes affecting the ATM interchange and surcharge rates in various jurisdictions where the Company operates, and Cardtronics' dependence on the interchange transaction rates set by other electronic funds transfer networks, which affect a portion of its interchange revenues. Nonetheless, in Moody's opinion, the Company has been steadily reducing the exposure to interchange rates (which have been generally trending downward) by growing bank branding service revenues and through increase in transaction volumes on its Allpoint network, which the Company operates and for which it sets the interchange rates with participating financial institutions. The stable outlook reflects Moody's view that Cardtronics' revenue and EBITDA will continue to grow at about mid single-digit rates, and it will be able to offset potential pressures on interchange revenues through increase in transaction volumes, growth in higher margin bank branding and outsourcing revenues, and changes in pricing strategies. These ratings were upgraded: Issuer: Cardtronics, Inc. * Corporate family rating, to B1 from B2 * Probability of default rating, to B1 from B2 * Existing senior subordinated notes due 2013, to B2 LGD5 (75%) from B3 LGD4 (69%), to be withdrawn upon completion of the proposed transaction and subsequent repayment of the notes These ratings were assigned: Issuer: Cardtronics, Inc. * Proposed $200 million senior subordinated notes due 2018 rating -- B2, LGD5, 75% (The rating is contingent upon Moody's satisfactory review of final documentation.) * Multiple Seniority Shelf -- (P)B2 * Outlook -- Changed To Stable From Positive The last rating action was on November 13, 2009, when Moody's raised Cardtronics' Corporate Family Rating to B2 from B3 and changed the outlook to positive. Headquartered in Houston, TX, Cardtronics is the world's largest non-bank owner of ATMs. The Company operates over 33,700 ATMs in the U.S., the U.K. and Mexico. The Company generated revenues of $514 million in the LTM 2Q 2010 period. CARDTRONICS INC: S&P Puts 'BB-' Rating on $200 Mil. Senior Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned a 'BB-' issue- level rating and '4' recovery rating to Houston-based Cardtronics Inc.'s proposed $200 million senior subordinated notes due 2018. The company will use the notes to refinance its existing $200 million senior subordinated notes?-series A due 2013. The '4' recovery rating indicates S&P's expectations for average (30%- 50%) recovery in the event of a payment default, and means the notes receive an issue-level rating of 'BB-', the same as the company's corporate credit rating. The 'BB-' corporate credit rating on the company remains unchanged and the outlook is stable. The ratings on Cardtronics, including its 'BB-' corporate credit rating, reflect Standard & Poor's view that modest mid-single- digit revenue growth and consistent adjusted EBITDA margins in the low-20% area will result in modest improvement in credit metrics over the next year. S&P also expect cash from operations to moderately exceed estimated capital spending of about $45 million in 2010. "If this discretionary cash flow is applied to debt reduction, and debt to EBITDA declines to around 2x from the current mid-2x area, S&P could consider raising its ratings on the company," said Standard & Poor's credit analyst Alfred Bonfantini. With annual revenues of about $493 million for full year 2009, Cardtronics is the largest independent ATM provider in the U.S, with a network of about 33,700 ATMs, primarily in non-banking sites such as convenience stores, grocery stores, drugstores, and retailers. S&P views the business profile as weak. Ratings List Cardtronics Inc. Corporate Credit Rating BB-/Stable Ratings Assigned Cardtronics Inc. $200 mil senior subordinated notes due 2018 BB- Recovery Rating 4 CARIBBEAN PETROLEUM: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Caribbean Petroleum Corporation aka CAPECO P.O. Box 361988 San Juan, PR 00936 Bankruptcy Case No.: 10-12553 Chapter 11 Petition Date: August 12, 2010 About the Debtor: Carribean Petroleum owns and operates certain facilities in Bayomon, Puerto Rico for the import, offloading, storage and distribution of petroleum products. Court: U.S. Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: Jason M. Madron, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square P.O. Box 551 Wilmington, DE 19899 Tel: (302) 651-7595 Fax: (302) 651-7701 E-mail: madron@rlf.com Debtor's Co-Counsel: CADWALADER, WICKERSHAM & TAFT LLP Debtor's Financial Advisors: FTI CONSULTING INC. Debtor's Chief Restructuring Officer: Kevin Lavin of FTI CONSULTING INC. Debtor's Restructuring Officer: Roy Messing of FTI CONSULTING INC. Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $500,000,001 to $1,000,000,000 The petition was signed by Nicol s L�pez Pe�a, chief financial officer. Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Caribbean Petroleum Refining, L.P. 10-12554 08/12/10 Gulf Petroleum Refining (Puerto Rico) Corporation 10-12555 08/12/10 Carribean Petroleum Corp.'s List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ AOT Limited Arbitration Award $63,643,202 aka Astra Oil 301 Main Street, Suite 201 Huntington Beach, CA 92648 Secretario de Hacienda Taxes $20,293,120 P.O. Box 9024140 Oficina 400A San Juan, PR 00902-4140 National Response Corp. Environmental $6,000,000 3500 Sunrise Highway, Suite 103 Great River, NY 111739 Credit Suisse AG Loan $2,600,000 Eggbuhlstrasse 21-23 CH-8070 Zurich, Switzerland Centro de Recaudacione de Property Tax $2,300,000 Ingresos Municipales (CRIM) P.O. Box 195387 San Juan, PR 00919-5387 William Morales Case Legal Case $2,190,000 Llorens Settlement USDC 11807 Edificio Esquire, Suite 402 Calle Vela #2 San Juan, PR 00918-3622 United States Coast Guard Environmental $2,126,952 P.O. Box 70959 Charlotte, NC 28272-0959 Gobierno Municipal de Bayamon Municipal $1,530,325 P.O. Box 1588 Licensing Fee Bayamon, PR 00960-1588 Jesus F. Trillas Case Legal Case $790,000 Mayoral Settlement 206 Tetuan, Suite 702 San Juan, PR 00902 Chevron Texaco Trademark $600,000 6001 Bollinger Canyon Road San Ramon, CA 94583-2324 Landron & Vera, LLP Professional $500,000 100 Carr 165, Suite 203 Services Guaynabo, PR 00968-8048 Chemical Cleaning Engineering Environmental $361,623 Specialists Inc. P.O. Box 457 Toa Baja, PR 00951-0457 Constructora Rodriguez Sevilla Dock Loading $197,361 Arm Installation Caleb Brett USA, Inc. Laboratory $181,701 Services McConnell Valdes Legal Services $150,000 Industrial Hydrovac Services Refinery Maintenance $142,974 Contractor Las Americas Petroleum Service Environmental $116,790 Services at Service Stations Kevane, Soto, Pasarell, Grant & Auditors $104,505 Thorton El Dorado Tech Services Refinery $101,549 Rehabilitation G4 Security Services, Inc. Security Services $72,277 Geva Engineering Group Corp. Pipeline Painting $65,765 Services Inversiones Caribe Delta Rent for Service $64,308 Stations Test Environmental, Inc. Environmental $53,330 Services at Stations PDCM Associates, S.E. Rent for Service $43,304 Stations Purvin & Gertz, Inc. Refinery Appraisal $39,500 Camioneros Cooperativa de Product $32,830 Transporte Transportation Miguel A Berrios, Inc. Professional $32,400 Services Anderson, Mulholland & Associates Professional $28,193 Services U.S. Trustee Payment Center Professional $27,950 Comite de Energia de Puerto Rico Membership Fees $24,000 y El Caribo Inc. CARROLL PROPERTIES: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Carroll Properties at Cheap Hill, LLC 2901 Highway 12 North Chapmansboro, TN 37035 Bankruptcy Case No.: 10-08408 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: George C. Paine II Debtor's Counsel: Samuel K. Crocker, Esq. 611 Commerce St., Suite 2720 Nashville, TN 37203 Tel: (615) 726-3322 Fax: (615) 726-6330 E-mail: SKCTRUSTEE@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tnmb10-08408.pdf The petition was signed by Charles R. Carroll, sole member. CEDARLAKE VILLAGE: BofA Questions Feasibility of Exit Plan ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that Cedarlake Village Senior Living Community is defending its restructuring plan against Bank of America's claim that the plan is neither fair nor feasible. BofA is the only creditor to oppose the Illinois senior-citizen housing development's Chapter 11 plan of reorganization. Bofa said the plan fails to provide assurance that its $30.2 million secured claim is paid. According to Dow Jones, Cedarlake Village, however, said its plan is fair because it sets benchmarks to ensure that the principal and interest owed Bank of America is paid in full over time. The bank is protected by a provision that allows it to foreclose on the development should Cedarlake Village miss any of those benchmarks. The not-for-profit organization said that not only will its Chapter 11 plan put it on stronger footing to weather the economic downturn, but it also protects its charitable mission and the welfare of its residents. CEDARS SUMMIT: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Cedars Summit Investments LLC 16393 Sun Summit Drive Riverside, CA 92503 Bankruptcy Case No.: 10-35346 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Central District of California (Riverside) Debtor's Counsel: Julian K. Bach, Esq. LAW OFFICE OF JULIAN BACH 17011 Beach Boulevard, Suite 300 Huntington Beach, CA 92647 Tel: (714) 848-5085 Fax: (714) 848-5086 E-mail: Julian@Jbachlaw.com Scheduled Assets: $1,600,500 Scheduled Debts: $1,523,951 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-35346.pdf The petition was signed by Gaby El-khoury, managing member. CHAPARRAL ENERGY: Posts $24 Million Net Income for June 30 Quarter ------------------------------------------------------------------ Chaparral Energy Inc. filed its quarterly report on Form 10-Q, showing a $24.87 million net income on $89.43 million of total revenues for the three months ended June 30, 2010, compared with a $17.72 million net loss on $75.91 million of total revenues for the three months ended June 30, 2009. The Company's balance sheet at June 30, 2010, revealed $1.3 billion in total assets, $109.36 million in total current liabilities, $188.14 million long-term debt, $647.98 million in senior notes, $2.33 million in derivative instruments, $947,000 asset retirement obligations, $38.56 million in commitment and obligations, and a $367.28 million stockholders' equity. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68e4 Headquartered in Oklahoma City, Chaparral Energy, Inc. -- http://www.chaparralenergy.com/-- is an independent oil and natural gas company engaged in the production, exploitation, and acquisition of oil and natural gas properties. The Company's core areas of operation include the Mid-Continent and Permian Basin with additional operations in the Gulf Coast, Ark-La-Tex, North Texas, and the Rocky Mountains. * * * Chaparral Energy carries a 'B' issuer credit rating, with "stable" outlook, from Standard & Poor's. It has 'B3' corporate and probability of default ratings from Moody's Investors Service. CHEM RX: Creditors' Proofs of Claim Due By Sept. 13, 2010 --------------------------------------------------------- With limited exceptions, the Honorably Mary F. Walrath directs that creditors must file their proofs of claim against Chem RX Corporation no later than 4:00 p.m., prevailing Pacific Time, on Sept. 13, 2010. Claim forms and additional information are available from the Debtor's claims agent: Chem Rx Claims Processing Center c/o Kurtzman Carson Consultants LLC 2335 Alaska Avenue El Segundo, CA 90245 Telephone: 866-381-9100 Long Beach, N.Y.-based Chem RX Corporation, aka Paramount Acquisition Corp. -- http://www.chemrx.net/-- is a major institutional pharmacy serving the New York City metropolitan area, as well as parts of New Jersey, upstate New York, Pennsylvania and Florida. Chem Rx's client base includes skilled nursing facilities and a wide range of other long-term care facilities. Chem Rx annually provides more than six million prescriptions to more than 69,000 residents of more than 400 institutional facilities. The Company and five affiliates sought Chapter 11 protection (Bankr. D. Del. Case No. 10-11567) on May 11, 2010. Dennis A. Meloro, Esq., and Scott D. Cousins, Esq., at Greenberg Traurig, LLP, represents the Company in its restructuring. Cypress Holdings, LLC, is the Company's financial advisor. RSR Consulting, LLC, is the Company's chief restructuring officer. Brunswick Group LLP is the Company's public relations consultant. Grant Thornton LLP is the Company's independent auditor. Lazard Middle Market LLC is the Company's investment banker. Eichen & Dimeglio PC is the Company's tax advisor. Kurtzman Carson Consultants is the Company's claims and notice agent. The Company disclosed $169,690,868 in assets and $178,281,128 in debts as of February 28, 2010. CHEMTURA CORP: Court OKs Amended Plan Support Agreement ------------------------------------------------------- U.S. Bankruptcy Judge Robert Gerber authorizes Chemtura Corp. and its units to enter into an amended plan support agreement with the Official Committee of Unsecured Creditors and certain holders of the Debtors' 2009 Notes, 2016 Notes and 2026 Debentures. The Court granted the Debtors' request subject to certain comments made on the record at the hearing. Under the PSA, the Creditors Committee, the Ad Hoc Bondholders Committee and certain other debt holders agree to support the Debtors' Plan and each Consenting Holder agree to vote in favor of the Plan. The Debtors related in an August 2, 2010 court filing that the PSA has been amended to clarify that the Ad Hoc Bondholders Committee's professionals will subject payment of their fees and expenses to approval by the Court before confirmation of the plan: (i) either in the form of a fee application that the Debtors and the Creditors' Committee agree not to oppose; or (ii) if required by the Court, in the form of an application for reimbursement of fees and expenses under Section 502(b)(3)(D) on the ground they made a substantial contribution to the Chapter 11 cases. If an application under Section 503(b)(3)(D) is required, the Amended PSA provides that the Debtors and the Creditors' Committee will (i) stipulate the Ad Hoc Bondholder Committee did, in fact, make a substantial contribution, and (ii) not oppose the application. The Amended PSA also specifies that the Ad Hoc Committee Fee Cap refers to the larger of (i) the aggregate amount of $7 million, or (ii) an amount larger than $7 million as agreed upon by the Debtors and the Creditors' Committee. In this respect, the Debtors asserted, the Amended PSA is entirely consistent with the Bankruptcy Code's requirements for obtaining Court approval of an ad hoc committee's professional fees. A full-text copy of the Amended PSA is available for free at: http://bankrupt.com/misc/ChemAmPSA-Aug12.pdf About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHEMTURA CORP: Gets Court's Nod to Prefund $1 Bil. Exit Facility ---------------------------------------------------------------- Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York authorized Chemtura Corporation and its debtor affiliates to enter into financing commitment agreements that will enable the Debtors to fund their exit from bankruptcy with $1.025 billion in new debt. The contemplated Exit Facility consists of a $275 million asset- based revolver facility and up to $750 million in term loans and senior notes issuance. Bank of America, N.A., is contemplated to be the administrative agent for the exit loans, with Bank of America Securities LLC, Wells Fargo Securities LLC and Citigroup Global Markets Inc. as joint arrangers. Bloomberg News' Emre Peker related in an August 11 report that the term loan agents and arrangers are arranging the six-year $300 million exit term loan with an interest rate of 4 percentage points more than London Interbank Offered Rate according to a source familiar with the negotiations. On the same day the Court entered its ruling, the Debtors released a statement noting that they plan to offer $450 million in aggregate principal amount of unsecured senior notes due 2018. The Debtors are also permitted to enter into escrow agreements to hold pre-closing proceeds of the Term Loans and Senior Notes. Consequently, the Debtors are authorized, but not required, to cause the formation of an escrow corporation. They may take any action that may be required or appropriate to effectuate the special mandatory redemption of the Senior Notes or to have the proceeds released from escrow in the event certain conditions are not satisfied. The Official Committee of Equity Security Holders is afforded the right to review any further draft of the Exit Financing Agreements with the same frequency and at the same time with the Official Committee of Unsecured Creditors and the Ad Hoc Bondholders' Committee. However, the right to review the Exit Finance Agreements will be limited to a right of consultation and will not be a right of consent, the Court clarified. Judge Gerber also permits the Debtors to incur and pay all of their pre-closing obligations set forth under in the Exit Financing Agreements. Those Obligations consist of $23.1 million to $34.3 million in fees and approximately $32.5 million in additional breakage fees, to the extent of termination, and interest on account of the period between entry into the Exit Financing Agreements and termination of the same Agreements. The Pre-Closing Exit Financing Obligations will be treated as allowed administrative expenses under Section 503(b) of the Bankruptcy Code and may be paid without further order of the Court. In relation to the Pre-Closing Exit Financing Obligations, the Debtors are authorized to transfer their own assets into escrow. Once in escrow, none of the assets nor the applicable rights of any Debtor or non-Debtor affiliate in the escrow agreement will constitute property of the Debtors' estates, provided that any distributions from the Escrow to the Escrow Entity will be returned to the Debtors' estates. Until the Escrow Release Conditions are satisfied, none of the proceeds of the Term Loan or the Senior Notes will constitute property of the Debtors' estates and none of the Debtors will be obligated to repay the Term Loan or the Senior Notes. Judge Gerber clarifies that his order, issued on August 9, 2010, is not deemed to constitute approval of the Exit Financing, which approval will be sought in connection with confirmation of the Debtors' Chapter 11 Plan, subject to the rights of all parties- in-interest to object that approval on any basis. Judge Gerber further specified that his Order authorizes the pre- closing of the Exit Financing into escrow. "Other than causing the redemption of the Exit Financing and the unwind of the escrows, and the payment of associated fees and interest as approved, the Debtors will not be obligated under the Exit Financing Agreements absent approval of the Exit Financing by the Bankruptcy Court in connection with the confirmation of the Plan," he elaborated. Anticipated Emergence According to an August 10 Reuters report, Chemtura expects to emerge from bankruptcy by September 30, 2010. The report notes that the Company also expects to have about $754 million in total debt and about $125 million of cash and cash equivalents upon its exit from Chapter 11. The hearing for the confirmation of the Company's bankruptcy plan is currently scheduled for September 16, at 9:45 a.m. Eastern Daylight Time. Chemtura's Statement Chemtura Corporation announced August 9 that it is planning to offer, subject to market and other conditions, $450 million in aggregate principal amount of unsecured senior notes due 2018. Chemtura is offering the notes as part of its exit financing package pursuant to its Chapter 11 plan of reorganization, if the plan is confirmed. Chemtura is also planning to arrange a senior term loan facility in the principal amount of $300 million and enter into a $275 million senior asset-based revolving credit facility for working capital and general corporate purposes. The net proceeds of the notes offering and term loan will be deposited into a segregated escrow account until the plan of reorganization is confirmed by the Bankruptcy Court and certain other conditions are satisfied. Upon satisfaction of the escrow conditions, including confirmation of its plan of reorganization, Chemtura intends to use the net proceeds, together with cash on hand, to make payments contemplated under the plan and to fund Chemtura's emergence from chapter 11. The notes will be unsecured senior obligations of Chemtura and will be guaranteed by each of its current and future domestic subsidiaries, other than certain excluded subsidiaries. The notes will bear interest at a fixed rate. The notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. 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 Contract Interest Rate Procedures --------------------------------------------------------- Chemtura Corporation and its debtor affiliates ask the Court to approve uniform contract interest rate procedures to be implemented in connection with their Chapter 11 Plan of Reorganization. Section 3.3(n)(i) of the Plan provides that: "to the extent that the Plan provides for payment of interest to holders of Allowed Unsecured Claims, such interest shall be paid in the same form of consideration as the underlying Allowed Unsecured Claim, and the amount of Allowed interest shall be calculated between the later of the date such Allowed Claim (A) became due in the ordinary course of business or (B) was invoiced to the applicable Debtor, on the one hand, and the Effective Date, on the other hand, with such interest to be payable at the federal judgment rate as of the Petition Date or at the contract rate to the extent allowable under applicable law and in accordance with the Contract Interest Rate Procedures." Section 1.1.38 of the Plan defines the Contract Interest Rate Procedures as "certain procedures by which any holder of an Unsecured Claim may substantiate the existence of any existing contract that specifies the payment of interest, in substantially the form approved by the Bankruptcy Court before the Confirmation Hearing." Proposed Contract Interest Rate Procedures The Debtors intend to mail a notice describing the Notice of Contract Interest Rate Procedures to all holders of General Unsecured Claims and Convenience Claims entitled to payment of postpetition interest and to which the Contract Interest Rate Procedures apply under the terms of the Plan. Any holder of a General Unsecured Claim or Convenience Claim entitled to payment of interest under the Plan who wishes to substantiate the existence of an existing contract, invoice or other agreement that specifies the payment of interest must submit a "Notice of Contract Rate of Interest" to the Debtors' Voting and Claims Agent by no later than September 9, 2010. Any Notice of Contract Rate of Interest must: (a) identify the Claim and the contractual rate of interest applicable to the Claim; (b) attach a copy of the contract, invoice or agreement relating to the Claim; and (c) be signed by the holder of the Claim or its authorized representative under penalty of perjury. A Notice of Contract Rate Interest does not need to be filed with the Bankruptcy Court, but it must be received by the Debtors' voting and claims agent at: Chemtura Balloting Center c/o Kurtzman Carson Consultants LLC 2335 Alaska Ave. El Segundo, California 90245 Failure by a holder of a General Unsecured Claim, Convenience Claim or its authorized representative to timely submit a response will be deemed an admission that no contract rate of interest exists with respect to the holder's General Unsecured Claim or Convenience Claim, and the holder of the General Unsecured Claim or Convenience Claim will receive interest at the federal judgment rate as of the Petition Date. The Contract Interest Rate Procedures also describe the extent to which the Debtors, the Official Committee of Unsecured Creditors or the Official Committee of Equity Security Holders may contest a claimant's assertion of a contract rate of interest any time before the Plan's effective date; and that upon an objection the claimant has until 60 days after the Effective Date to request a hearing to resolve the dispute concerning the amount of postpetition interest due to the particular claimant. A copy of the Proposed Contract Interest Rate Procedures is available for free at: http://bankrupt.com/misc/ChemCIRProc.pdf Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York, contends that the proposed Contract Interest Rate Procedures are necessary to implement the Plan by facilitating the calculation of distributions, bringing certainty with respect to the amount of postpetition interest due individual creditors and result in fewer disputes after the Effective Date concerning the calculation of interest. 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 Nod for 2nd Amendment to $450MM DIP Facility ---------------------------------------------------------------- Chemtura Corp. won approval of a second amendment to the Replacement DIP Credit Agreement, in connection with their request to obtain exit financing. Under the Amended and Restated Debtor-in-Possession Credit Agreement with Citibank, N.A., with Bank of America N.A., Barclays Bank PLC and Wells Fargo Foothill LLC and other lenders parties to the new DIP facility, the Debtors were given access to a $450 million DIP facility consists of (i) $300 million of Term Loans, and (ii) a 150 million Revolving Facility, including a Letter of Credit subfacility in the aggregate amount of up to $50 million. Chemtura used the DIP Facility to refinance its existing $400 million DIP facility with Citibank and certain lenders. The $1 billion exit financing contemplated to be entered into by the Debtors consists of an asset-based credit facility, a term loan facility, and the issuance of senior notes. Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York, relates that the Second Amendment: -- permits the Debtors to enter into the Exit Financing Agreements, including paying related fees and expenses and funding the senior notes and the term loan into escrow before confirmation of their bankruptcy plan; and -- authorizes the Debtors, to the extent it is determined to be necessary under the circumstances, to create a wholly owned, special purpose subsidiary of Chemtura for the purpose of issuing debt in respect of notes or term loan contemplated under the Exit Financing Agreements. Moreover, the Second Amendment inserted new definitions related to a prospective approval of the Debtors' request for Court approval of an exit financing. A full-text of the Second Amendment to the Replacement DIP Facility is available for free at: http://bankrupt.com/misc/ChemAmDIPAgrmt2.pdf About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRISTENSEN REALTY: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Christensen Realty & Investment, LLC dba 9th & Bannock Garage c/o Gary Christensen P.O. Box 2781 Boise, ID 83701-2781 Bankruptcy Case No.: 10-41789 Chapter 11 Petition Date: 10-02537 Court: United States Bankruptcy Court District of Idaho (Boise) Judge: Jim D. Pappas Debtor's Counsel: D. Blair Clark, Esq. LAW OFFICES OF D. BLAIR CLARK PLLC 1513 Tyrell Lane, Suite 130 Boise, ID 83706 Tel: (208) 475-2050 Fax: (208) 475-2055 E-mail: dbc@dbclarklaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Gary Christensen, managing member. The Debtor did not file its list of largest unsecured creditors when it filed its petition. CINEMARK INC: Bank Debt Trades at 2% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which Cinemark, Inc., is a borrower traded in the secondary market at 98.29 cents-on-the- dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.86 percentage points from the previous week, The Journal relates. The Company pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on April 30 , 2016, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on April 28, 2010, Moody's affirmed Cinemark, Inc.'s ratings, including its B1 corporate family and probability of default ratings, and SGL-1 speculative grade liquidity rating. The existing Ba3 senior secured bank debt and B3 senior unsecured bond ratings for Cinemark USA, Inc., were also affirmed. The rating outlook remains positive. Cinemark Holdings, Inc., which owns Cinemark, Inc., and (indirectly) Cinemark USA, Inc. and is headquartered in Plano, Texas, is the United States' third largest motion picture exhibitor with 294 theaters and 3,830 screens in 39 states, and internationally (in 13 countries), mainly in Mexico, South and Central America, with a further 130 theaters and 1,066 screens. CIT GROUP: S&P Assigns 'BB' Rating on $3 Bil. Senior Loan --------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BB' debt rating to CIT Group Inc.'s (B+/Positive/B) $3 billion first- lien senior secured term loan (Tranche 3), indicating S&P's high confidence of full recovery of principal. This transaction refinances CIT's existing first-lien debt (Tranches 1 and 2). Another $1 billion of Tranche 1 and 2 debt was prepaid in cash as part of the refinancing transaction, leaving none outstanding at the close. The refinancing transaction is a continuation of CIT's efforts to reduce the high cost of its liability structure. In S&P's view, the refinancing transaction will offer incremental benefits to profitability, while extending debt maturities. However, this view is balanced by the considerable challenges CIT still faces in developing a more cost-effective and stable funding platform, with a significant contribution from bank deposits. Ratings List CIT Group Counterparty Credit Rating B+/Positive/B New Rating CIT Group $3 Bil. 1st-Lien Sr. Sec. Term Loan Due Aug. 2015 BB CLEAR CHANNEL: Bank Debt Trades at 20% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Clear Channel Communications, Inc., is a borrower traded in the secondary market at 79.53 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.17 percentage points from the previous week, The Journal relates. The Company pays 365 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 30, 2016, and carries Moody's Caa1 rating and Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Clear Channel Communications, Inc. -- http://www.clearchannel.com/ -- is a diversified media company with three primary business segments: radio broadcasting, outdoor advertising and live entertainment. Clear Channel Communications is the operating subsidiary of San Antonio, Texas-based CC Media Holdings, Inc. COMSTOCK MINING: Enters Mining Lease with New Daney --------------------------------------------------- Comstock Mining Inc. has entered into a Mineral Exploration and Mining Lease Agreement with New Daney Company, Inc., and now controls seven key unpatented lode claims situated in Spring Valley, at the extreme southern end of the Comstock trend. In Spring Valley, the main group of mineralized structures have laid mostly concealed beneath a layer of pediment gravels. These additional Spring Valley claims are adjacent to the Company's Dondero property, where the Company's 2009, exploration drilling discovered significant mineralization beneath the gravel. "The acquisition of these rights expands our control of the most southerly part of the Comstock, beyond our recent Dayton properties acquisition, to encompass an additional, contiguous and relatively unexplored, mile-long segment of the Silver City Branch of the Comstock Lode," stated Corrado DeGasperis, Comstock Mining's Chief Executive Officer. In April 2009, the Company announced the results from six drill holes in Spring Valley on the Dondero property, and suggested that additional exploration work was planned for the area to better define the mineral potential. The Agreement included the acquisition of a wealth of data from previous exploration in Spring Valley. It includes data from approximately 60 reverse circulation holes drilled in Spring Valley during the 1980's, as well as seven core holes that were drilled in 1997 and 2000. Comstock Mining is currently incorporating and evaluating the results into their planning for further exploration. "We have been working toward the acquisition of these Spring Valley claims since 2009, when we realized that the mineralization model we had created for the Lucerne resource area also fit the mineralization in this area," stated Larry Martin, Comstock Mining's Chief Geologist. "Ongoing geological assessments indicate that the Silver City Branch extends southward through our Dayton property, into Spring Valley, and through our Dondero and these new claims," Mr. Martin continued. "Recent geological and geophysical work, in conjunction with our broader interpretations of the Comstock, have demonstrated that the mineralized intercepts in holes SV09-04, 05, and 06 were contained within the extension of the Silver City fault zone; the remaining three holes encountered mineralization along one or more intersecting structures. The historic holes that we acquired also appear to be drilled on structures that projected to cross the Silver City fault zone. That makes the intersection of these structures a very exciting target for future drilling," concluded Mr. Martin. About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. f/k/a Goldspring, Inc. (OTC BB: LODE) is a North American precious metals mining company, focused in Nevada, with extensive, contiguous property in the Comstock Lode District. The Company began acquiring properties in the Comstock in 2003. Since then, the Company has consolidated a significant portion of the Comstock Lode District, amassed the single largest known repository of historical and current geological data on the Comstock Lode region, secured permits, built an infrastructure and brought the exploration project into test mining production. On July 21, 2010, the Company changed its name from "GoldSpring, Inc." to "Comstock Mining Inc.," by way of a merger with a wholly owned subsidiary of Comstock Mining Inc. that was formed solely for the purpose of changing the Company's name. As reported in the Troubled Company Reporter on April 15, 2010, Jewett, Schwartz, Wolfe & Associates expressed substantial doubt about Goldspring, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that the Company has operating and liquidity concerns and has incurred historical net losses approximating $55.0 million as of December 31, 2009. The Company also used cash in operating activities of $3.6 million in 2009. CONTRACTORS' CAPITAL: Case Summary & 20 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Contractors' Capital Corporation 10640 N. 28th Drive, Suite B-201 Phoenix, AZ 85029 Bankruptcy Case No.: 10-25253 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum, Sr. Debtor's Counsel: Benjamin Loren Dodge, Esq. DODGE & VEGA, PLC 4824 E. Baseline Road, Suite 124 Mesa, AZ 85206 Tel: (480) 656-8333 Fax: (480) 656-8334 E-mail: ben@dodgevegalaw.com Estimated Assets: $0 to $50,000 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/azb10-25253.pdf The petition was signed by Steven Welker, president/CEO. DANNY PLANAVSKY: Discovery Failure Bars Second Tax Lawsuit ---------------------------------------------------------- WestLaw reports that res judicata barred the Chapter 11 debtor- taxpayer's turnover proceeding against a county with respect to monies that he allegedly had paid pursuant to a prepetition installment tax agreement. The debtor's prior adversary proceeding, including the cause of action in which he alleged that the amounts due under the installment agreement had been paid, had been dismissed, the bankruptcy court reasoned, and the debtor's current turnover action could certainly have been brought at that time. In re Planavsky, 2010 WL 1849401 (Bankr. N.D.N.Y.) (Davis, J.). The Debtor's first adversary proceeding was dismissed because he failed to obey a discovery order. The Honorable Diane Davis says that dismissal constituted a final judgment on the merits, and so res judicata barred relitigation of Mr. Planavsky's causes of action. Accordingly, Judge Davis dismissed Mr. Planavsky's second adversary proceeding. Danny R. Planavsky filed a voluntary chapter 11 petition (Bankr. N.D.N.Y. Case No. 01-63125) on May 16, 2001. DEAN FOODS: Bank Debt Trades at 6% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Dean Foods Company is a borrower traded in the secondary market at 94.15 cents-on- the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.61 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on March 22, 2014, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on May 20, 2010, Moody's lowered the speculative grade liquidity rating for Dean Foods to SGL-3 from SGL-2. The company's corporate family rating remains Ba3 with a stable outlook. The SGL rating downgrade reflects the very weak first quarter which saw a 61% drop in cash from continuing operations (from $185 million in 2009 to $71 million in 2010) and an increase in leverage to 4.43 times (as defined by credit agreements) as compared with 4.16 times at the end of the year. Moody's believes that there may be little or no cushion under the bank leverage covenant under the existing facilities by year end 2010 when it steps down from 5.0 times to 4.5 times. On May 19, The TCR reported that Standard & Poor's revised its outlook on Dean Foods Company and its wholly owned subsidiary Dean Holding Co. to negative from stable. "At the same time, we affirmed the ratings on the company, including the 'BB-' corporate credit rating. Dean Foods had about $4.2 billion of funded debt outstanding as of March 31, 2010." "The outlook revision to negative reflects our concerns about the company's near-term operating performance and the possibility for the company's leverage covenant to become very tight by fiscal year end 2010," said Standard & Poor's credit analyst Christopher Johnson. Dean Foods Company is the largest processor and distributor of milk and various other dairy products in the United States, with dairy operations accounting for around 79% of its net sales in FY2008. The company also markets and sells a variety of branded dairy and dairy-related products including, Silk soymilk and cultured soy products, Horizon Organic dairy products, International Delight coffee creamers and LAND O'LAKES creamers and fluid dairy products. Headquartered in Dallas, Texas, Dean Foods had sales in the last twelve months ending March 31, 2009, of approximately $12.1 billion. DECISIONPOINT SYSTEMS: June 30 Balance Sheet Upside-Down by $5MM ---------------------------------------------------------------- DecisionPoint Systems, Inc., balance sheet at June 30, 2010, showed total assets of $21,641,566, total liabilities of $26,606,372, and a stockholders' deficit of $4,964,806, according to the Company's latest Form 10-Q filed with the Securities and Exchange Commission. As of June 30, the Company had cash and cash equivalents of $500,000 compared to $100,000 as of December 31. The Company had used, and plans to use, the cash for general corporate purposes, including working capital. As of June 30, 2010, the Company had negative working capital of $10,100,000. Included in current liabilities is unearned revenue of $7,500,000. Included in current assets are deferred costs of $4,500,000 which reflect costs paid for third party extended maintenance services that were amortized over their respective service periods. The net change in the unearned revenue, offset by the deferred costs, will provide a benefit in future periods as the amounts convert to realized revenue. The Company reported a net loss of $838,957 on $13,288,041 of net sales for three months ended June 30, 2010, compared with a net loss of $34,518 on net sales of $12,033,956 during the comparable period in 2009. For the six months ended June 30, 2010, net loss was $2,081,089 compared with a net loss of $441,873 during the same period in 2009. Revenues were $24,360,304 for the six months ended June 30, compared to $23,698,382 for the six months ended June 30, 2009, an increase of $695,072 or 2.8%. The Company said that the improvement is due to the increased emphasis on its marketing and sales efforts. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68c4 About DecisionPoint Systems DecisionPoint Systems, Inc., formerly known as Canusa Capital Corp., is an enterprise mobility systems integrator that designs, sells, installs and services voice and data communications products and systems for private networks and wireless broadband systems to a range of enterprise markets, including retail, transportation and logistics, manufacturing, wholesale and distribution, well as other commercial customers. DEX MEDIA EAST: Bank Debt Trades at 20% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East, LLC, is a borrower traded in the secondary market at 80.48 cents- on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.52 percentage points from the previous week, The Journal relates. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014. The debt is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc. and Local Launch, Inc. are the company's only direct wholly owned subsidiaries. Dex Media East, LLC, is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. (Qwest) in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09- 11833 through 09-11852), after missing a $55 million interest payment on its senior unsecured notes due April 15. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. Bankruptcy Creditors' Service, Inc., publishes R.H. Donnelley Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of R.H. Donnelley Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) EASTON-BELL: Posts $20.1MM Operating Income for July 3 Quarter -------------------------------------------------------------- Easton-Bell Sports Inc. reported net sales of $202.8 million for the second quarter ended July 3, 2010, an increase of 8.3% as compared to $187.3 million of net sales in the second quarter of fiscal 2009. The Company generated operating income of $20.1 million for the second quarter of fiscal 2010, an increase of 36.0% as compared to $14.8 million of operating income in the second quarter of fiscal 2009. "Overall we are pleased with our results. The increase in second quarter sales at higher margins combined to increase our operating leverage and allowed us to fund investments in new product introductions," said Paul Harrington, President and Chief Executive Officer. "With consumer spending still uncertain in the near to mid-term these investments will be critical to growing future market share." The Company's gross margin for the second quarter of fiscal 2010 was 34.0%, as compared to 32.2% for the second quarter of fiscal 2009. The margin improvement related primarily to better sales mix, improved manufacturing efficiencies and gains in foreign currency exchange rates. Easton-Bell Sports' balance sheet at July 3, 2010, showed $969.96 million in total assets, $601.65 million in total liabilities, and a $368.30 million stockholder's equity. The Company had substantial borrowing capacity and liquidity as of July 3, 2010, with $125.9 million of additional borrowing ability under the revolving credit facility and liquidity of $161.3 million when including the $35.4 million of cash. A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?68e5 About Easton-Bell Sports Easton-Bell Sports, Inc. -- http://www.eastonbellsports.com/-- designs, develops and markets innovative sports equipment, protective products and related accessories under authentic brands. The Company markets and licenses products under such well-known brands as Easton, Bell, Riddell, Giro and Blackburn. Headquartered in Van Nuys, California, the Company has 29 facilities worldwide. The Company's balance sheet at April 3, 2010, revealed $969.0 million in total assets, $602.6 million in total liabilities, and a stockholder's equity of $366.3 million. * * * Easton Bell has 'B3' corporate family and probability of default ratings, with "positive" outlook, from Moody's Investors Service. It has 'B-' issuer credit ratings, with "positive" outlook, from Standard & Poor's. ELAN FINANCE: S&P Assigns 'B' Rating on $200 Mil. Senior Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned Elan Finance PLC's $200 million 8.75% senior unsecured notes due 2016, privately placed under Rule 144A, its issue-level rating of 'B' with a recovery rating of '3', indicating S&P's expectation of meaningful (50% to 70%) recovery for noteholders in the event of a payment default. The 'B' issue-level rating is at the same level as S&P's 'B' corporate credit rating on parent company Elan Corp. PLC, in accordance with S&P's notching criteria for a '3' recovery rating. These notes are in lieu of a previously announced add-on to the company's existing 8.75% notes, as market conditions were not favorable for the add-on. Proceeds from the notes, along with cash on hand, will be used to repay senior floating-rate notes due November 2011. S&P's corporate credit rating on parent Elan Corp. PLC is 'B' and the rating outlook is positive. The 'B' rating primarily reflects the company's critical dependence on sales of its multiple sclerosis treatment, Tysabri. Elan's fundamental reliance on this one drug is key to S&P's assessment of its business risk profile as "weak." The company has adequate liquidity following last year's sale of its Alzheimer's new drug program and subsequent senior unsecured note issuance. That note issuance, together with the proposed debt issuance, extended near-term debt maturities. Assuming the proposed debt issuance closes and Elan uses proceeds, along with some cash, to repay the $300 million of senior floating-rate notes due November 2011, its next maturity is not until 2013. At June 30, 2010, the company had almost $900 million of cash on hand and has now generated positive free cash flow in three of the past four quarters. Ratings List Elan Corp. PLC Corporate Credit Rating B/Positive/-- New Rating Elan Finance PLC $200M Rule 144A 8.75% sr unsecd nts due 2016 B Recovery Rating 3 ELIMINATOR CUSTOM: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Eliminator Custom Boats, Inc. 24312 Daytona Cove Perris, CA 92570 Bankruptcy Case No.: 10-35393 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Central District of California (Riverside) Judge: Deborah J. Saltzman Debtor's Counsel: Robert B. Rosenstein, Esq. ROSENSTEIN & HITZEMAN 28600 Mercedes Street, Suite 100 Temecula, CA 92590 Tel: (951) 296-3888 Fax: (951) 296-3889 E-mail: robert@rosenhitz.com Estimated Assets: $0 to $50,000 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/cacb10-35393.pdf The petition was signed by Robert Leach, president. EMPIRE RESORT: Terminates 40-Year Contract with Concord ------------------------------------------------------- Empire Resorts Inc. sent on August 5, 2010, a notice of termination to Concord Associates, L.P. terminating that certain agreement, dated as of March 23, 2009, between Concord and the Company pursuant to which the Company was to be retained by Concord Empire Raceway Corp., a subsidiary of Concord, to provide advice and general managerial oversight with respect to the operations at the harness track to be constructed at that certain parcel of land located in the Town of Thompson, New York and commonly known as the Concord Hotel and Resort. The Agreement had a term of 40 years. The Agreement had provided that commencing upon the commencement of operations at the Concord Gaming Facilities and for the duration of the Term, the Company was to receive an annual management fee in the amount of $2,000,000, such management fee to be increased by 5% on each five-year anniversary of the Operations Date. Concord agreed that the Empire Management Fee to be paid to the Company would be senior to payments due in connection with to the Financing. In addition to the Empire Management Fee, the Agreement provided that commencing on the Operations Date and for the duration of the Term, the Company was to be paid an annual fee in the amount of two percent of the total revenue wagered with respect to video gaming machines and other alternative gaming located at the Concord Property after payout for prizes, less certain fees payable to the State of New York State, the Monticello Harness Horsemen's Association, Inc. and the New York State Horse Breeding Fund. Commencing upon the Operations Date and for the duration of the Term, in the event that the Adjusted Gross Gaming Revenue Payment paid to the Company was $2 million per annum, Concord guaranteed to pay to the Company the difference between $2 million and the Adjusted Gross Gaming Revenue Payment distributed to the Company with respect to such calendar year. Upon a sale or other voluntary transfer of the Concord Gaming Facilities to any person or entity who is not an affiliate of Concord, Raceway Corp. was permitted to terminate the Agreement upon payment to the Company of $25,000,000.00; provided, that the Buyer shall have entered into an agreement with the Company whereby the Buyer shall have agreed to pay the greater of: i) the Adjusted Gross Gaming Revenue Payment and ii) $2,000,000 per annum to the Company for the duration of the Term of the Agreement. The closing of the transactions contemplated by the Agreement were to have taken place on the date that Concord or its subsidiary secured and closed on financing in the minimum aggregate amount of $500 million from certain third-party lenders in connection with the development of the Track and certain gaming facilities on the Concord Property. The Company and Concord were each permitted to terminate the Agreement by written notice in the event that the Closing Date had not occurred on or before July 31, 2010. Louis Cappelli, a stockholder that beneficially owns more than 5% of the Company's common stock and is a member of the Company's board of directors, is the managing member of Convention Hotels, LLC, Concord's general partner. Mr. Cappelli is also the managing member of Cappelli Resorts and Cappelli Resorts II, LLC. Through his ownership interest in Cappelli Resorts and Cappelli Resorts II, LLC, Mr. Cappelli owns a controlling interest in Concord. About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- currently owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. The Company's balance sheet at March 31, 2010, showed $86.8 million in total assets, $72.3 million in total current liabilities, and a $14.4 million stockholders' equity. Auditor Friedman LLP, in New York, after auditing the Company's 2009 results, said Empire Resorts' ability to continue as a going concern depends on the Company's ability to fulfill its obligations with respect to its $65 million of 5-1/2% senior convertible notes. Friedman also noted of the Company's continuing net losses and negative cash flows from operating activities. As reported by the Troubled Company Reporter, Empire Resorts on April 8, 2010, received the Decision, Order and Judgment from the Supreme Court of the State of New York in Sullivan County granting defendants', The Bank of New York Mellon Corporation and The Depository Trust Company, motion for summary judgment in the action captioned Empire Resorts, Inc. v. The Bank of New York Mellon Corporation and The Depository Trust Company. The Decision provides that the Court has determined that the Defendants properly exercised the option requiring the Company to repurchase $65 million of 5-1/2% senior convertible notes issued by the Company in July 2004, that the Company is in default under the Notes with respect to its failure to repurchase the Notes on July 31, 2009, and that the Company must now repurchase the Notes. The TCR said the Company is working with its financial advisor, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and its legal counsel to consider its available financial and legal alternatives in response to the Decision. FAIRMOUNT MINERALS: S&P Assigns 'BB-' Corporate, Stable Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BB-' corporate credit rating to U.S.-based frac sand producer Fairmount Minerals Ltd. The rating outlook is stable. At the same time, S&P assigned a 'BB' issue-level rating (one notch above the corporate credit rating) and '2' recovery rating to the company's $775 million senior secured credit facility. The '2' recovery rating indicates S&P's expectation of substantial (70%-90%) recovery in the event of a payment default. The facility consists of a $75 million senior secured revolving credit facility due 2015, a $150 million senior secured term loan due 2015, and a $550 million senior secured term loan due 2016. The rating assignments follow S&P's previous assignment of preliminary ratings on July 16, 2010. "The 'BB-' corporate credit rating reflects the combination of Fairmount's fair business risk profile and aggressive financial risk profile as indicated by its modest size and scope, exposure to cyclical end markets, significant customer concentration, and relatively aggressive capital structure," said Standard & Poor's credit analyst Sherwin Brandford. "The company's relatively good margins and good competitive position within the frac sand market partially offset these negative factors." S&P's rating and outlook incorporate its expectation that Fairmount will generate around $200 million in EBITDA this year, reflecting solid frac sand demand due to fairly robust drilling activity. This level of earnings will support pro forma credit metrics in-line with a 'BB-' rating given the capital structure, with debt leverage of less than 4x and funds from operations to total debt of around 20%. FGIC CORP: Files Chapter 11 Plan; Up to 3% Recovery for Unsecureds ------------------------------------------------------------------ FGIC Corp. has filed a plan of reorganization and disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York. Under the Plan, FGIC Corp.'s unsecured creditors, which include holders of outstanding debt under FGIC Corp.'s prepetition revolving credit facility and holders of FGIC Corp.'s 6% Senior Notes due 2034, will receive distributions of cash and common stock in reorganized FGIC Corp. on account of their claims. Existing equity interests will be cancelled pursuant to the Plan. The Plan negotiated between FGIC Corp. and its key creditors and shareholders will allow the FGIC Corp. to cancel debt obligations in the aggregate amount of $391.5 million. In addition, the Plan provides that holders of general unsecured claims against FGIC Corp. will receive substantially all of its $11.5 million in cash and the common stock in Reorganized FGIC Corp. The three largest common shareholders of FGIC Corp., representing over 90% of its common stock, have agreed to the cancellation of their equity interests pursuant to the Plan and have agreed to waive general unsecured claims against the estate in the aggregate amount of $7.2 million. As agreed upon with FGIC Corp.'s major creditors, Reorganized FGIC Corp. will be capitalized with no more than $400,000 to fund its business needs and will continue to operate as an insurance holding company after the Effective Date of the Plan. Copies of the Plan and disclosure statement are available for free at: http://bankrupt.com/misc/FGIC_CORP_plan.pdf http://bankrupt.com/misc/FGIC_CORP_ds.pdf Treatment of Claims With respect to classified claims: Class Claim Status Recovery 1 Priority Non-Tax Claims Unimpaired 100% 2 Secured Tax Claims Unimpaired 100% 3 Other Secured Claims Unimpaired 100% 4 Intercompany Claims Unimpaired 100% 5 Convenience Claims Unimpaired 100% 6 General Unsecured Claims Impaired 2% to 3% 7 Equity Interests Impaired 0% 8 Section 510(b) Claims Impaired 0% The Debtor proposes this Plan confirmation schedule: Disclosure Statement Hearing September 16, 2010 Record Date September 16, 2010 Solicitation Deadline September 23, 2010 Deadline to Publish Confirmation Hearing Notice September 23, 2010 Voting Resolution Event Deadline October 11, 2010 Plan Supplement Filing Date October 14, 2010 Voting Deadline October 18, 2010 Plan Objection Deadline October 21, 2010 Voting Report Deadline October 21, 2010 Deadline to Reply to Confirmation Objections October 27, 2010 Confirmation Hearing October 28, 2010 New York-based FGIC Corporation is a privately held insurance holding company. FGIC Corp's main business interest lies in the holdings of the bond insurer Financial Guaranty Insurance Company -- http://www.fgic.com-- and it depends on dividend payments by FGIC for sustaining its operations. FGIC filed for Chapter 11 bankruptcy protection on August 3, 2010 (Bankr. S.D.N.Y. Case No. 10-14215). Brian S. Lennon, Esq., at Kirkland & Ellis LLP, serves as counsel to the Debtor. Garden City Group, Inc., is the Debtor's claims and notice agent. In its schedules, the Debtor disclosed $11,539,834 in total assets and $391,555,568 in total liabilities as of the Petition Date. FNB UNITED: Posts $24.9 Million Net Loss in Q2 Ended June 30 ------------------------------------------------------------ FNB United Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $24.9 million for the three months ended June 30, 2010, compared with a net loss of $403,000 for the same period of 2009. Net interest income before the provision for loan losses totaled $14.0 million for the three-month period ended June 30, 2010, compared with $15.2 million for the same period in 2009. Provision for loan losses totaled $27.4 million compared to $5.5 million in 2009. The Company's balance sheet as of June 30, 2010, showed $2.022 billion in total assets, $1.950 billion in total liabilities, and a stockholders' equity of $72.5 million. The Company incurred significant net losses in 2009, primarily from the higher provisions for loan losses due to the significant level of nonperforming assets and the write-off of goodwill. On July 22, 2010, the Bank consented and agreed to the issuance of a Consent Order by the OCC. In the Consent Order, the Bank and the OCC agreed as to areas of the Bank's operations that warrant improvement and a plan for making those improvements. These matters 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?68d6 Asheboro, N.C.-based FNB United Corp. (Nasdaq:FNBN) is the bank holding company for CommunityOne Bank, N.A., and the bank's subsidiary, Dover Mortgage Company. Opened in 1907, CommunityOne Bank -- http://www.MyYesBank.com/-- operates 45 offices in 38 communities throughout central, southern and western North Carolina. Through these subsidiaries, FNB United offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services. FORD MOTOR: Bank Debt Trades at 3% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Ford Motor Co. is a borrower traded in the secondary market at 96.66 cents-on-the- dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.50 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Dec. 15, 2013, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The Company provides financial services through Ford Motor Credit Company. Ford Motor's balance sheet at June 30, 2010, showed $179.75 billion in total assets, $183.29 billion in total liabilities, and a $3.54 billion stockholders' deficit. * * * In August 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Ford Motor Co. and FordMotor Credit Co. LLC to 'B+' from 'B-'. "The upgrade reflects S&P's reassessment of Ford's business risk profile to weak from vulnerable, and its financial risk profile to aggressive from highly leveraged," said Standard & Poor's credit analyst Robert Schulz. S&P believes Ford is making progress in stabilizing, and perhaps improving, its U.S. market shares Still, S&P believes underlying business risks remain high. Ford Motor and its unit, Ford Motor Credit, carry 'BB-' issuer default ratings from Fitch Ratings. In August 2010, when Fitch raised the rating from 'B', it said, Ford's ratings reflect its continued strong financial performance and the substantial debt reduction accomplished in the second quarter." Ford Motor has a 'B1' corporate family rating from Moody's. FOURTH QUARTER: Section 341(a) Meeting Scheduled for Sept. 2 ------------------------------------------------------------ The U.S. Trustee for Region 21 will convene a meeting of Fourth Quarter Properties 166, LLC's creditors on September 2, 2010, at 2:00 p.m. The meeting will be held at Third Floor - Room 368, Russell Federal Building, 75 Spring Street SW, Atlanta, GA 30303. 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. Newnan, Georgia-based Fourth Quarter Properties 166, LLC, filed for Chapter 11 protection on August 3, 2010 (Bankr. N.D. Ga. Case No. 10-12920). Austin E. Carter, Esq., at Stone & Baxter, LLC, assists the Debtor in its restructuring effort. The Debtor estimated assets at $10 million to $50 million and debts at $50 million to $100 million in its Chapter 11 petition. The Debtor's affiliates -- Fourth Quarter Properties 118, LLC (Case No. 09-13960), Fourth Quarter Properties 140, LLC (Case No. 09-13961), Fourth Quarter Properties 161, LP (Case No. 09-13962), Fourth Quarter Properties 162, LP (Case No. 09-13963), and Fourth Quarter Properties XLVII, LLC (Case No. 09-13959) -- filed separate Chapter 11 petitions on November 2, 2009. FOURTH QUARTER: Taps Stone & Baxter as Bankruptcy Counsel --------------------------------------------------------- Fourth Quarter Properties 166, LLC, asks for authorization from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Stone & Baxter, LLP, as bankruptcy counsel. Fourth Quarter will, among other things: a. prepare applications, motions, answers, reports and other legal papers; b. continue existing litigation to which the Debtor may be a party and conduct examinations incidental to the administration of the Debtor's estate; c. take any and all necessary action instant to the proper preservation and administration of the estate; and d. assist the Debtor with the preparation and filing of a statement of financial affairs and schedules and lists as are appropriate. Stone & Baxter will be paid based on the hourly rates of its personnel: Attorney $185-$350 Research Assistants $100 Paralegals $100 Austin E. Carter, Esq., a partner at Stone & Baxter, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Newnan, Georgia-based Fourth Quarter Properties 166, LLC, filed for Chapter 11 protection on August 3, 2010 (Bankr. N.D. Ga. Case No. 10-12920). The Debtor estimated assets at $10 million to $50 million and debts at $50 million to $100 million in its Chapter 11 petition. The Debtor's affiliates -- Fourth Quarter Properties 118, LLC (Case No. 09-13960), Fourth Quarter Properties 140, LLC (Case No. 09-13961), Fourth Quarter Properties 161, LP (Case No. 09-13962), Fourth Quarter Properties 162, LP (Case No. 09-13963), and Fourth Quarter Properties XLVII, LLC (Case No. 09-13959) -- filed separate Chapter 11 petitions on November 2, 2009. GARY CLARK: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Gary N. Clark Valarie J. Clark 3786 S. Coach House Drive Gilbert, AZ 85297 Bankruptcy Case No.: 10-25252 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtors' Counsel: Blake D. Gunn, Esq. P.O. Box 22146 Mesa, AZ 85277-2146 Tel: (480) 710-8677 E-mail: bgunn@gunnfirm.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-25252.pdf GENERAL GROWTH: S&P Withdraws 'D' Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services revised to '1' from '3' its recovery ratings on the senior unsecured debt issued by General Growth Properties Inc. and its subsidiary, The Rouse Co. Concurrently, S&P withdrew its 'D' corporate credit, 'D' issue, and '1' recovery ratings on the companies. General Growth, a public real estate investment trust and one of the largest owners and operators of regional malls, filed for Chapter 11 bankruptcy protection on April 16, 2009. Under the company's proposed plan of reorganization, as filed on July 13, 2010, and amended on Aug. 2, 2010, holders of rated unsecured issues will receive full recovery, either in the form of a cash payment, or, in the case of $1.3 billion of bonds issued by General Growth's affiliate, The Rouse Co., through reinstatement. In the case of these reinstated bonds, S&P believes the value received by bondholders would still constitute full or near full recovery, depending on market trading prices. General Growth has entered into investment agreements with affiliates of Brookfield Asset Management, Fairholme Capital Management, and Pershing Square Capital Management (the sponsors), under which these firms have committed to provide up to $8.55 billion of capital to General Growth in connection with the company's plan for emergence from Chapter 11. (Teacher Retirement System of Texas, a public pension plan, recently agreed to invest $500 million in the form of common stock. This will replace $500 million of the other equity investors' commitments.) S&P views these capital commitments as firm. Moreover, S&P believes the remaining obstacles for General Growth to overcome to complete its reorganization are relatively minor. These factors lead us to the conclusion that General Growth's currently proposed bankruptcy reorganization plan is likely to be approved in close to its existing form. S&P currently expects to reassess General Growth's credit quality near the time of its emergence from Chapter 11, which S&P now anticipate will occur within the next few months. General Growth Properties Corporate Credit Rating D/-- Recovery Rating Revised General Growth Properties/The Rouse Co. Rating ------ To From -- ---- Sr unsecured D Recovery Rating 1 3 Ratings Withdrawn General Growth Properties Rating ------ To From -- ---- Corporate Credit Rating NR D Sr Unsecured NR D Recovery Rating NR 1 The Rouse Co. Rating ------ To From -- ---- Sr Unsecured NR D Recovery Rating NR 1 GEORGE W. PARK: Assets to Go on Auction Block August 23 ------------------------------------------------------- Garden Center Magazine, citing Multichannel Merchant, reports that an auction scheduled for Aug. 23 will determine the collective fate of George W. Park Seed Co.'s horticultural catalogers Jackson & Perkins Co. and Park Seed. According to Garden City, the court granted substantive consolidation for George W. Park and four the Chapter 11 filing on July 22. This allows for the transfer of funds among the entities and the debtors to meet deadlines placed on the production of the holiday catalog. Based in Greenwood, South Carolina, George W. Park Seed Co. Inc., along with four affiliates, filed for Chapter 11 protection on April 2, 2010 (Bankr. D. S.C. Lead Case No. 10-02431). R. Geoffrey Levy, Esq., represents the Company in its restructuring effort. The Company listed $8.33 million in assets and $44.79 million in liabilities. GOODYEAR TIRE: Fitch Assigns 'B/RR5' Rating on New Senior Notes --------------------------------------------------------------- Fitch Ratings has assigned a rating of 'B/RR5' to the new senior unsecured notes issued by The Goodyear Tire & Rubber Company. The 8.25% notes have a face amount of $900 million and mature on Aug. 15, 2020. Proceeds from the new notes will be used to redeem GT's remaining $388 million of outstanding 7.857% notes due in August 2011 and $325 million of outstanding 8.625% notes due December 2011, with remaining proceeds used for general corporate purposes. The new notes are guaranteed by each of GT's U.S. and Canadian subsidiaries which also guarantee the company's senior secured credit facilities and senior unsecured notes, as well as any restricted subsidiaries to the extent that those subsidiaries guarantee any debt of GT or one of its guarantor subsidiaries. The Issuer Default Rating for GT is 'B+' with a Stable Rating Outlook. GT's ratings reflect the tire manufacturer's strong competitive position in the global original equipment (OE) and aftermarket tire segments and stabilization in the company's end markets, set against a relatively high debt load, weak free cash flow and substantial underfunded pension obligations. Leverage has declined over the past six months as better automotive market conditions have resulted in increased EBITDA, although total debt at June 30, 2010, was slightly above the year-end 2009 level. Profitability is expected to improve in 2010, but free cash flow is likely to remain weak or negative. Liquidity remains adequate, however, and the company's progress on restructuring its debt over the past six months has reduced the very high maturities it otherwise would have faced next year. As of June 30, 2010, GT continued to have a strong liquidity position, although lower than year-end 2009, with cash and cash equivalents of $1.7 billion, augmented by a total of $1.5 billion of unused availability under the company's primary credit facilities. At the end of 2009, cash and cash equivalents stood at $1.9 billion, and the company had $1.6 billion available on its primary credit facilities. The company has stated that it requires a minimum of about $1 billion to operate its business. It is notable that over 50% of GT's cash holdings are outside the U.S., and the decline in cash and cash equivalents in the first half of 2010 was largely due to a $185 million remeasurement loss on the company's cash held in Venezuela. GT's $1.5 billion U.S. secured revolving credit facility is subject to a borrowing base which decreased its availability by $84 million at June 30. In addition, the facility had $485 million of letters of credit issued against it (versus an LOC limit of $800 million). The EUR505 million first-lien credit facilities of GT's Goodyear Dunlop Tires Europe B.V. subsidiary due 2012 were fully available less EUR10 million ($12 million) of LOCs issued against it. Near-term debt maturities are relatively low, with current maturities of only $132 million at June 30, 2010. Once the redemption of the remaining 2011 notes is complete, debt maturities next year will be light, as the company will have removed a total of $975 million of 2011 note maturities over the course of this year. A tender offer completed in March of this year reduced 2011 debt maturities by $262 million. Leverage (total debt/EBITDA) stood at 3.1 times at June 30, down from 5.3x at year-end 2009, although the improvement was driven entirely by increased EBITDA, as total debt rose slightly to $4.6 billion from $4.5 billion at the end of last year. Fitch's calculation of EBITDA over the last 12 months was $1.5 billion at June 30, up from $857 million at year-end 2009. Fitch estimates that GT will have negative free cash flow in 2010 due to increased capital expenditures, material pension contributions and working capital usage as the company rebuilds its inventory. Capital expenditures are likely to be in the range of $1 billion to $1.1 billion, up from $746 million in 2009, driven by the company's investments in low-cost manufacturing, including the construction of a new plant in China and a facility expansion in Chile. Working capital is expected to increase at least $200 million after the company reduced its inventory by $1.1 billion last year. Additional cash uses in 2010 include cash interest expense of between $325 million and $350 million and cash charges related to restructuring, which Fitch estimates at over $100 million. Pension contributions will continue to be a significant use of cash at GT in 2010, as the company's global defined benefit (DB) pension funds remain deeply underfunded. As of Dec. 31, 2009, GT's DB plans were $2.72 billion underfunded, with a funded status of 66.3%. Although this was an improvement from an underfunded position of $2.75 billion and a funded status of 61.7% at year-end 2008, it nonetheless is likely to require substantial cash contributions over the medium term. GT contributed $371 million to its global pension plans last year, but this amount would have been greater without the short-term funding relief provided by the U.S. Internal Revenue Service (IRS). GT estimates that pension contributions in 2010 will be lower than last year, in the $275 million to $325 million range. Pension contributions next year could have spiked to as much as $575 million absent the recently-enacted pension funding relief. The company has indicated that it expects to take advantage of this legislation to bring down cash contributions to the plans in 2011 and 2012. Over the longer term, though, the underfunded position of GT's DB plans could require the company to make substantial cash contributions beyond 2012, absent either a significant increase in the plans' asset values or a steep rise in long-term interest rates. Fitch's forecasts for GT project higher revenues and modestly higher margins in 2010, as the benefits of the company's cost- reduction programs should help offset expected raw materials pressures in the second half of the year. GT has targeted $1 billion of cost savings between 2010 and 2012, mainly driven by a reduction of high-cost capacity, lower unabsorbed fixed costs and increased low-cost sourcing after completing a four-year $2.5 billion four-point cost savings program in 2009. However, higher EBITDA in 2010 likely will be less than full-year interest payments and capital expenditures, and GT will not benefit in 2010 from the significant working capital-related benefit that it received in 2009. GT's new senior unsecured notes have been assigned a Recovery Rating of 'RR5' representing an 11% to 30% recovery in a distressed scenario. The Recovery Rating is based, in part, on most of GT's assets serving as collateral backing the company's domestic first-lien and second-lien bank facilities, as well as the GDTE senior secured credit facilities. This reduces the estimated enterprise value that could be allocated to unsecured creditors in a distressed scenario. GREENWOOD ESTATES: Gets Interim Okay to Use Cash Collateral ----------------------------------------------------------- Greenwood Estates MHC, LLC, sought and obtained interim authorization from the Hon. Susan Pierson Sonderby of the U.S. Bankruptcy Court for the Northern District of Illinois to use the cash collateral of Capmark Finance, Inc., during the period August 4, 2010, through August 31, 2010. The Debtor's manufactured home community in Greenwood, Indiana (the Property), is subject to a purported first mortgage in favor of Capmark purportedly securing a claim in the approximate amount of $25 million. Eugene Crane, Esq., at Crane, Heyman, Simon, Welch & Clar, explains that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtors will use the collateral pursuant to a budget, a copy of which is available for free at http://bankrupt.com/misc/GREENWOOD_ESTATES_budget.pdf In exchange for using the cash collateral, the Debtors will maintain and pay premiums for insurance to cover all of its assets from fire, theft and water damage. The Debtor will, upon reasonable request, make available to Capmark evidence of that which constitutes its collateral or proceeds. The Debtor will properly maintain its assets in good repair and properly manage the Property. As adequate protection for use of the rents, income and any other revenues generated from the Property on and after the Petition Date, the Debtor will grant Capmark replacement liens upon post-petition rents and property that the Debtor acquires after the Petition Date. Any income or revenue generated by the Debtor subsequent to the Petition Date which remains after the payment of the expenses will be segregated by depositing that cash in a newly opened bank account which will contain only the excess cash and won't be comingled with any other funds. The Debtor will deliver to Capmark by August 30, 2010, at 8:00 a.m. a report which sets forth the actual expenses incurred by the Debtor during the interim period, through and including August 29, 2010. Capmark objects to the Debtor's use of cash collateral. Capmark wants the Court to limit and condition the Debtor's proposed use of cash collateral, and deny the payroll motion to the extent it seeks to pay prepetition amounts owed by the Debtor to one or more third parties. The Court has set an interim hearing for August 31, 2010, at 10:30 a.m., on the Debtor's request to be allowed to use the cash collateral. Capmark is represented by Barnes & Thornburg LLP. About Greenwood Estates Chicago, Illinois-based Greenwood Estates MHC, LLC, filed for Chapter 11 bankruptcy protection on July 30, 2010 (Bankr. N.D. Ill. Case No. 10-33988). Eugene Crane, Esq., at Crane Heyman Simon Welch & Clar, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million. HAWKER BEECHCRAFT: Bank Debt Trades at 20% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hawker Beechcraft is a borrower traded in the secondary market at 79.58 cents-on- the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.88 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on March 26, 2014, and carries Moody's Caa1 rating and Standard & Poor's CCC+ rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, is a leading manufacturer of business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. Hawker Beechcraft Acquisition Company LLC reported a net loss of $63.4 million on $568.2 million of total sales for the three months ended March 28, 2010, compared with net income of $53.1 million on $537.6 million of sales for the three months ended March 29, 2009. The Company's balance sheet at March 28, 2010, showed $3.41 billion in total assets and $3.36 billion in total liabilities for a stockholders' equity $56.5 million. HCA INC: June 30 Balance Sheet Upside-Down by $10.52 Billion ------------------------------------------------------------ HCA Inc. filed its quarterly report on Form 10-Q with the Securities and Exchange Commission. HCA's balance sheet at June 30, 2010, showed $23.24 billion in total assets, $4.40 billion in total current liabilities, $25.77 billion in long-term debt, $1.03 billion in professional liability risks, $1.59 billion in income taxes, $144 million in equity securities with contingent redemption rights, and a stockholder's deficit $10.52 billion. As reported in the Troubled Company Reporter on Aug. 3, 2010, the Company said in an earnings release that for the second quarter ended June 30, 2010: * Revenues increased 3.7% to $7.756 billion, compared to $7.483 billion in the second quarter of 2009. Charity care and uninsured discounts, which reduce our reported revenues, increased to $1.670 billion in the second quarter compared to $1.190 billion in the prior year's second quarter. * Net income attributable to HCA Inc. increased 3.4% to $293 million, compared to $282 million in the prior year's second quarter. * Adjusted EBITDA increased 6.5% to $1.490 billion, compared to $1.399 billion in the second quarter of 2009. * Provision for doubtful accounts declined to $788 million, from $866 million in the prior year. * Interest expense increased to $530 million, from $506 million in the second quarter of 2009. * Same facility equivalent admissions increased 1.6%, and same facility admissions declined 0.3% in the second quarter compared to the second quarter of 2009. * Same facility revenue per equivalent admission increased 2.2% and reflects the impact of the increased charity care and uninsured discounts. Same facility cash revenue per equivalent admission increased 3.7% in the quarter compared to the prior year. * Total surgeries, on a same facility basis, declined 1.4% from the previous year's second quarter. A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?6775 A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68e2 About HCA Inc. Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company with 162 hospitals and 106 freestanding surgery centers. HCA Inc. carries "B2" corporate family and probability of default ratings, under review for possible upgrade, from Moody's Investors Service. It has a 'B+' corporate credit rating from Standard & Poor's. In May 2010, Standard & Poor's placed its 'B+' corporate credit rating on hospital giant HCA, Inc., and S&P's ratings on its secured and unsecured debt on CreditWatch with positive implications. "The speculative-grade rating on HCA continues to reflect S&P's view that the largest U.S. owner and operator of acute health care facilities is particularly sensitive to reduced capacity utilization and pricing," said Standard & Poor's credit analyst David Peknay, "by virtue of the significant debt leverage assumed in its November 2006 leveraged buyout." HEALTHSOUTH CORP: Bank Debt Trades at 2% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which HealthSouth Corporation is a borrower traded in the secondary market at 97.65 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.77 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on March 10, 2013, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About HealthSouth Corp. Birmingham, Alabama-based HealthSouth Corporation (NYSE: HLS) -- http://www.healthsouth.com/-- is the nation's largest provider of inpatient rehabilitative healthcare services. Operating in 26 states across the country and in Puerto Rico, HealthSouth serves patients through its network of inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient rehabilitation satellites, and home health agencies. The Company's balance sheet at June 30, 2010, showed $1.7 billion in total assets, $2.1 billion in total liabilities, and shareholders' deficit of $817.3 million. HealthSouth continues to carry a "B2" corporate family rating, with "stable" outlook, from Moody's. It has "B" foreign and local issuer credit ratings, with "positive" outlook, from Standard & Poor's. HOLIDAY 360: Has Access to Hall Lenders' Cash Until September 30 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized Holiday 360, LTD., et al., to use the cash collateral of Hall Stay 190-Holiday DFW LLC and Hall Element DFW, LLC, until September 30, 2010. The Debtors may use the cash collateral to fund their Chapter 11 case, pay suppliers and other parties. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the Hall Lenders valid, perfected, and enforceable replacement security interests in and liens and mortgages upon all categories of property of the Debtors and their estates. Additionally, the Debtors will pay to the Hall Lenders adequate protection payments in the amount of the net cash flow generated by the property of the Debtor. About Holiday 360 Ltd. Irving, Texas-based Holiday 360 Ltd. is a single asset real estate. It filed for Chapter 11 bankruptcy protection on April 5, 2010 (Bankr. N.D. Tex. Case No. 10-42412). The Company estimated its assets and debts at $10 million to $50 million as of the Petition Date. Affiliates Hotel 635 Beltline, LP and Stay 190, Ltd., filed for separate Chapter 11 petitions on April 5. John C. Leininger, Esq., at Bryan Cave LLP, assist the Debtors in their restructuring efforts. I-10 BARKER: Asks for Court Okay to Use Cash Collateral ------------------------------------------------------- I-10 Barker Cypress, Ltd., seeks authorization from the U.S. Bankruptcy Court for the Southern District of Texas to use cash collateral of Compass Bank. The Debtor owes roughly $17,300,000 to Compass Bank. The Debtor contends that the real property that secures its debt to Compass Bank is valued at approximately $24 million thus providing an equity cushion for Compass Bank. James B. Jameson, Esq., at James Jameson & Associates, explains that the Debtor needs to use the cash collateral to fund its Chapter 11 case, pay suppliers and other parties. The Debtor will use the collateral pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/I-10_BARKER_budget.pdf In exchange for using the cash collateral, the Debtors propose to grant a replacement security interest in, and lien upon, all of the Debtor's right, title and interest in, to and under all property whether acquired by the Debtor prior or subsequent to the Petition Date. To the extent that the adequate protection of the interests of the Lender in the cash collateral is insufficient, the Debtor proposes that the Lender have an allowed claim under Section 507(b) of the U.S. Bankruptcy Code in the amount of any such insufficiency. About I-10 Barker I-10 Barker Cypress, Ltd., is a Texas limited partnership with its principal place of business in Houston, Harris County, Texas and with offices in Houston, Harris County, Texas. I-10 Baker owns an 83,000 square foot shopping center on 17.2 acres of commercial land located in Houston, Texas. Houston, Texas-based I-10 Barker Cypress, Ltd., filed for Chapter 11 bankruptcy protection on August 2, 2010 (Bankr. S.D. Tex. Case No. 10-36582). James B. Jameson, Esq., at James Jameson & Associates, serves as counsel to the Debtor. In its schedules, the Debtor disclosed $24,991,061 in total assets and $17,737,313 in total liabilities as of the Petition Date. I-10 BARKER: Section 341(a) Meeting Scheduled for Sept. 2 --------------------------------------------------------- The U.S. Trustee for Region 7 will convene a meeting of I-10 Barker Cypress, Ltd.'s creditors on September 2, 2010, at 11:00 a.m. The meeting will be held at Suite 3401, 515 Rusk Ave, Houston, TX 77002. 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. Houston, Texas-based I-10 Barker Cypress, Ltd., filed for Chapter 11 bankruptcy protection on August 2, 2010 (Bankr. S.D. Tex. Case No. 10-36582). James B. Jameson, Esq., at James Jameson & Associates, serves as counsel to the Debtor. In its schedules, the Debtor disclosed $24,991,061 in total assets and $17,737,313 in total liabilities as of the Petition Date. I-10 BARKER: Taps James Jameson as Bankruptcy Counsel ----------------------------------------------------- I-10 Barker Cypress, Ltd., asks for authorization from the U.S. Bankruptcy Court for the Southern District of Texas to employ James Jameson & Associates as bankruptcy counsel, nunc pro tunc to the Petition Date. The firm will, among other things: a. take all necessary actions to protect and preserve the estate of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; b. prepare on behalf of the Debtor all necessary motions, applications, answers, orders, reports, and papers in connection with the administration and prosecution of the Debtor's Chapter 11 case; c. assist the Debtor in connection with any proposed sale of assets; and d. advise the Debtor in respect of bankruptcy or other services as requested. The firm will be paid based on the hourly rates of its personnel: James B. Jameson $350 Associates $150-$250 Paralegal $110 James B. Jameson, Esq., an attorney at the firm, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. I-10 Barker Cypress, Ltd., is a Texas limited partnership with its principal place of business in Houston, Harris County, Texas and with offices in Houston, Harris County, Texas. I-10 Baker owns an 83,000 square foot shopping center on 17.2 acres of commercial land located in Houston, Texas. I-10 Baker filed for Chapter 11 bankruptcy protection on August 2, 2010 (Bankr. S.D. Tex. Case No. 10-36582). In its schedules, the Debtor disclosed $24,991,061 in total assets and $17,737,313 in total liabilities as of the Petition Date. IMAGEWARE SYSTEMS: Amends Promissory Note Issued to BET Funding --------------------------------------------------------------- ImageWare Systems Inc. entered on August 5, 2010, into an amendment to the secured promissory note dated February 12, 2009 with BET Funding LLC, a Delaware limited liability company. The amendment to the Note changed the maturity date to September 15, 2010 from June 30, 2010. The Note was further amended to allow the Company a 60 day grace period beyond September 15, 2010 if, prior to September 15, 2010, the Company can deliver a customer contract sufficient to generate aggregate revenue of not less than $25 million. In conjunction with the amendment to the Note, the Company agreed to pay a $50,000 amendment fee. The Company also agreed to amend the clause in the Note requiring the Company to pay additional interest on the Note of the greater of $400,000 or an amount equal to 2,200,000 times the average of the five highest closing prices for the Company's common stock from February 12, 2009 to the maturity date of the Note. The additional interest will, however, not exceed $2,200,000. Prior to the amendment this payment was based upon the average of the 10 daily closing prices immediately preceding the date of payment and had no upper limit. About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc. is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. * * * ImageWare Systems has not timely filed its financial reports with the Securities and Exchange Commission. The latest balance sheet, which is as of June 30, 2009, showed total assets of $5,400,000, total liabilities of $8,149,000, and a shareholders' deficit of $2,749,000. INFERX CORPORATION: Posts $691,740 Net Loss in Q1 Ended March 31 ---------------------------------------------------------------- InferX Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $691,740 on $1.39 million of revenue for the three months ended March 31, 2010, compared with net income of $1,949 on $1.44 million of revenue for the same period of 2009. Revenues derived from federal government contracts accounted for 91% of the Company's revenues since fiscal 2008. The Company expects that government contracts will continue to be a significant source of its revenues for the foreseeable future. The Company's balance sheet as of June 30, 2010, showed $1.13 million in total assets, $4.61 million in total liabilities, and a stockholders' deficit of $3.48 million. The Company has incurred a loss of $691,740 and income of $1,949 for the three months ended March 31, 2010, and 2009, respectively, and has a working capital deficiency of $3.22 million as of March 31, 2010. The Company expects the negative cash flow from operations to continue its trend through the next six months. These factors raise significant doubt about the ability of the Company to continue as a going concern, the Company said in the Form 10-Q. A full-text copy of the Quarterly Report is available for free at: http://researcharchives.com/t/s?68d3 Sterling, Va.-basec InferX Corporation specializes in next generation distributed predictive analytics ("PA") enterprise software solutions. The Company is targeting its solution towards select sub-subsectors in the healthcare, financial services and public sectors to address significant ROI opportunities. PA enterprise software solutions direct decision making by applying a combination of advanced analytics and decision optimization to an organization's enterprise data, with the objective of improving business processes to meet specific organization goals. It accomplishes this through the application of algorithms that process historical data, "learn" what has happened in the past and create models that can be applied to make decisions about current or future cases. IRIS ENTERPRISES: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Iris Enterprises, Inc. 6512 Six Forks Road, Suite 202 Raleigh, NC 27615 Bankruptcy Case No.: 10-06403 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Debtor's Counsel: Eileen M. Bornstein, Esq. THE BREWER LAW FIRM 311 East Edenton Street P.O. Box 27567 Raleigh, NC 27611-7567 Tel: (919) 832-2288 Fax: (919) 834-2011 E-mail: ebornstein@williambrewer.com Scheduled Assets: $1,750,085 Scheduled Debts: $1,015,220 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb10-06403.pdf The petition was signed by Massoumeh "Azy" Valanejad, president. IRVINE SENSORS: June 30 Balance Sheet Upside Down by $7.86MM ------------------------------------------------------------ Irvine Sensors Corp. filed its quarterly report on Form 10-Q, reporting a $2.62 million net loss on $3.57 million of total revenues for the 13 weeks ended June 27, 2010, compared with a $2.54 million net loss on $2.77 million of revenues for the 13 weeks ended June 28, 2009. The Company's balance sheet at June 27, 2010, showed $6.86 million in total assets and $14.73 million in total liabilities, and a stockholders' deficit of $7.86 million. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68dd About Irvine Sensors Irvine Sensors Corporation -- http://www.irvine-sensors.com/-- headquartered in Costa Mesa, California, is a vision systems company engaged in the development and sale of miniaturized infrared and electro-optical cameras, image processors and stacked chip assemblies and sale of higher level systems incorporating such products and research and development related to high density electronics, miniaturized sensors, optical interconnection technology, high speed network security, image processing and low- power analog and mixed-signal integrated circuits for diverse systems applications. Optex Systems, Inc., a Texas corporation and a wholly owned subsidiary of Irvine Sensors, on September 21, 2009, filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code in the United States Bankruptcy Court in California. ISE CORP: Financial Woes Prompt Chapter 11 Bankruptcy Filing ------------------------------------------------------------ ISE Corporation filed for Chapter 11 protection on August 10, 2010 (Bankr. S.D. Calif. Case No. 10-14198). Mike Freeman at the Union Tribune reports that ISE Corp. filed for a Chapter 11 petition after failing to find more financing. According to the report, the Company laid off 45 of 70 employees last month. The company said it struggled to make profit, posting losses of $17.8 million in 2009, and $25.6 million in 2008. The Union Tribune report relates the Company raised C$20.7 million in an initial public offering on the Toronto Stock Exchange in February 2010. The Company needed more capital when cash-strapped government transit agencies delayed orders. Efforts to raise money through a debt or equity placement or sale of assets were unsuccessful. ISE Corp. is the operating subsidiary of Ise Limited. ISE Corp -- http://www.isecorp.com/-- makes drive train systems for hybrid gasoline/electric buses. Established in 1995, ISE is headquartered in San Diego, California. ISE CORP: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: ISE Corporation, a California corporation fka ISE Research Corporation 12302 Kerran Street Poway, CA 92064 Bankruptcy Case No.: 10-14198 Chapter 11 Petition Date: August 10, 2010 About the Debtor: ISE Corp. is the operating subsidiary of Ise Limited. ISE Corp -- http://www.isecorp.com/-- makes drive train systems for hybrid gasoline/electric buses. Established in 1995, ISE is headquartered in San Diego, California. Court: U.S. Bankruptcy Court Southern District of California (San Diego) Judge: Margaret M. Mann Debtor's Counsel: Marc J. Winthrop, Esq. WINTHROP COUCHOT PROFESSIONAL CORP 660 Newport Center Drive, 4th Floor Newport Beach, CA 92660 Tel: (949) 720-4100 Fax: (949) 720-4111 E-mail: pj@winthropcouchot.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Richard J. Sander, president and CEO. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Suntron Corporation -- $1,152,719 2401 W. Grandview Road Phoenix, AZ 85023 Ballard Power Systems Inc. -- $617,243 4343 North Fraser Way Burnaby V5J 5J9 BC Canada KPMG, LLP -- $382,340 4747 Executive Drive, #600 San Diego, CA 92121 Siemens Industry, Inc. -- $336,993 90 Kent Avenue Elk Grove, IL 60007 Goodwin Procter LLP -- $263,151 53 State Street Boston, MA 02109 R. R. Donnelley Receivables Inc. -- $254,924 P.O. Box 100112 Pasadena, CA 91189-0001 Wrightbus Ltd. -- $135,213 Second Star Inc. -- $87,848 Fasken Martincau Dumoulin LLP -- $80,500 Target CW -- $79,461 Cobasys -- $63,416 DMR Electronics, Inc. -- $60,637 Millbrook Proving Ground Ltd -- $54,206 Ernst & Young LLP -- $52,000 Foley & Lardner LLP -- $50,023 Proskauer Rose LLP -- $46,384 Concert Groups Logistics -- $46,346 Blue Shield of California -- $45,963 Seico -- $43,925 Blum & Clark Accountancy Group -- $40,557 JACK LAIRD: Case Summary & Largest Unsecured Creditor ----------------------------------------------------- Debtor: Jack S. Laird, LLC P.O. Box 1208 Nevada City, CA 95959 Bankruptcy Case No.: 10-25069 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Michael C. Van, Esq. SHUMWAY VAN & HANSEN, CHTD 8985 S. Eastern Ave., #100 Las Vegas, NV 89123 Tel: (702) 478-7770 Fax: (702) 478-4779 E-mail: michael@shumwayvan.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Wells Fargo Bank, N.A., Commercial property/ $10,280,000 Trustee Reg. Holders of buildings Morgan Stanley Capital I Inc. c/o Midland Loan Services 10851 Mastin, Suite 700 Overland Park, KS 66210 The petition was signed by Jack S. Laird, Trustee, managing member. JANICE BECKER: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Janice Marie Becker 90 East End Avenue, Apartment 8A New York, NY 10028 Bankruptcy Case No.: 10-14314 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: Stuart M. Bernstein Debtor's Counsel: Dana Patricia Brescia, Esq. ALTER, GOLDMAN & BRESCIA, LLP 550 Mamaroneck Avenue Harrison, NY 10528 Tel: (914) 670-0030 Fax: (914) 670-0031 E-mail: altergold@aol.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of creditors together with its petition. JOHN LEMKE: Case Summary & 3 Largest Unsecured Creditors -------------------------------------------------------- Debtor: John Robert Lemke P.O. Box 775 Fair Oaks, CA 95628 Bankruptcy Case No.: 10-41292 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Ronald H. Sargis Debtor's Counsel: C. Anthony Hughes, Esq. 1395 Garden Highway, Suite 150 Sacramento, CA 95833 Tel: (916) 440-6666 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-41292.pdf JOSEPH DANENZA: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Joseph Jerome Danenza 465 Ocean Drive, Apartment 1122 Miami Beach, FL 33139 Bankruptcy Case No.: 10-33736 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: Robert A. Mark Debtor's Counsel: Gregory S. Grossman, Esq 701 Brickell Avenue, 16th Floor Miami, FL 33131 Tel: (305) 372-8282 E-mail: ggrossman@astidavis.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. JUAN EXPOSITO: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: Juan Alberto Exposito Claudia Patricia Exposito 120 NW 7 Court Boca Raton, FL 33486 Bankruptcy Case No.: 10-33670 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Erik P. Kimball Debtors' Counsel: David L. Merrill, Esq. 7777 Glades Road, # 400 Boca Raton, FL 33434 Tel: (561) 477-7800 E-mail: dlmerrill@sbwlawfirm.com Scheduled Assets: $3,385,088 Scheduled Debts: $8,353,125 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb10-33670.pdf KENTUCKIANA HEALTHCARE: Case Summary & 6 Largest Unsec Creditors ---------------------------------------------------------------- Debtor: Kentuckiana Healthcare LLC dba Brownsberg Healthcare Center Castleton Healthcare Center Plainfield Healthcare Center 350 Evergreen Rd Louisville, KY 40243 Bankruptcy Case No.: 10-34230 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court Western District of Kentucky (Louisville) Debtor's Counsel: David M. Cantor, Esq. SEILLER WATERMAN LLC 462 S. 4th Street, Suite 2200 Louisville, KY 40202 Tel: 584-7400 E-mail: cantor@derbycitylaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/kywb10-34230.pdf The petition was signed by Frank Littriello Jr., member. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Paramount Healthcare Group Inc 10-34229 08/10/10 LAKE SHADOW: Case Summary & 17 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Lake Shadow Limited, LLC c/o Michael Hanks 275 Trace Ridge Road Birmingham, AL 35244 Bankruptcy Case No.: 10-23585 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Northern District of Georgia (Gainesville) Debtor's Counsel: Anna Mari Humnicky, Esq. Karen Fagin White, Esq. COHEN POLLOCK MERLIN & SMALL 3350 Riverwood Parkway, Suite 1600 Atlanta, GA 30339 Tel: (770) 857-4770 (770) 858-1288 E-mail: ahumnicky@cpmas.com kfwhite@cpmas.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb10-23585.pdf The petition was signed by Michael Hanks, manager. LAS VEGAS SANDS: Bank Debt Trades at 8% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Las Vegas Sands Corp. is a borrower traded in the secondary market at 92.04 cents- on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.77 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on May 1, 2014, and carries Moody's B3 rating and Standard & Poor's B- rating. Meanwhile, participations in a syndicated loan under which Venetian Macau US Finance Co. LLC is a borrower traded in the secondary market at 98.00 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.66 percentage points from the previous week, The Journal relates. The Company pays 550 basis points above LIBOR to borrow under the facility. The bank loan matures on May 25, 2011, and carries Moody's B3 rating and Standard & Poor's B- rating. The loans is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Venetian Macau US Finance Co., LLC (also known as VML US Finance LLC), and Venetian Macau Limited are wholly owned subsidiaries of Las Vegas Sands. Venetian Macau Limited owns the Sands Macau in the People's Republic of China Special Administrative Region of Macau and is also developing additional casino hotel resort properties in Macau. Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) -- http://www.lasvegassands.com/-- owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo and convention center. The company also owns and operates the Sands Macao, the first Las Vegas-style casino in Macao, China. Las Vegas Sands has a 'B-' corporate family rating from Standard & Poor's Ratings Services. As reported in the TCR on July 30, 2010, Standard & Poor's placed its 'B-' corporate credit rating on the Las Vegas Sands Corp. family of companies, as well as its issue- level ratings on the companies' debt, on CreditWatch with positive implications. "In addition to announcing strong performance across its portfolio of properties during the second quarter on its earning call, Las Vegas Sands also indicated that it will pursue an amend-and-extend transaction with lenders in its U.S. credit facilities," S&P pointed out. LAUREATE EDUCATION: Bank Debt Trades at 9% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Laureate Education, Inc., is a borrower traded in the secondary market at 91.05 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.55 percentage points from the previous week, The Journal relates. The Company pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on Aug. 17, 2014, and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Laureate Education, Inc., is based in Baltimore, Maryland, and operates a leading international network of accredited campus- based and online universities with 26 institutions in 15 countries, offering academic programs to about 311,000 students through 74 campuses and online delivery. Laureate offers a broad range of career-oriented undergraduate and graduate programs through campus-based universities located in Latin America, Europe, and Asia. Through online universities, Laureate offers the growing population of non-traditional, working-adult students the convenience and flexibility of distance learning to pursue undergraduate, master's and doctorate degree programs in major career fields including engineering, education, business, and healthcare. In July 2010, Moody's Investors Service revised Laureate Education, Inc's ratings outlook to stable from negative. Concurrently, Moody's affirmed the company's B2 corporate family rating, B2 probability-of-default rating, and its various debt ratings. "The outlook revision reflects the company's solid enrollment growth supported by the breadth of its presence in multiple geographies, many of which are growing." LEED CORP: Wants Access to Lenders' Cash Collateral --------------------------------------------------- The Leed Corporation asks the U.S. Bankruptcy Court for the District of Idaho for authorization to use the cash collateral of its prepetition lenders. The Debtor relates that these entities have alleged secured interests in its residential homes. a. OCWEN b. Premier Financial; c. 21st Mortgage; d. American Escrow Services; e. Robert and Kathi Meyers; f. Mitch Campbell; g. Rusty and Ann Parker; h. GMAC; i. Internal Revenue Service; j. Lon and Becky Montgomery; k. Idaho Mutual Trust; l. John Deere Landscapes; m. Bank of America; and n. Greentree Mortgage. The Debtor relates that it holds rents that have accrued in its property manager's trust account. The Debtor maintains that the majority of said rents is not subject to any applicable security interest properly perfected under state law, thus, the rents are not cash collateral. The Debtor notes that motion is filed out of an abundance of caution to afford the parties an opportunity to demonstrate that any alleged lien in rents has been properly perfected. The Debtor requires the use of cash collateral to pay its general operating expenses for its rental/lease operations. The Debtor adds that the prepetition lenders are adequately protected by the substantial equity cushion in the respective properties. The Debtor proposes a hearing on requested cash collateral use on August, 2010 at 1:30 p.m., at the U.S. Courtroom, Federal Building, 801 E. Sherman Ave., Pocatello, Idaho. The Debtor is represented by: Robert J. Maynes, Esq. P.O. Box 3005 Idaho Falls, ID 83405 Tel: (208) 552-6442 Fax: (208) 522-1334 E-mail: mayneslaw@hotmail.com About The Leed Corporation Twin Falls, Idaho-based The Leed Corporation -- dba Green Cut Sprinklers and Landscaping, Leed Corp., Quality Built Homes, Green Cut Construction, Shoshone Developers, Desert Green Sprinklers & Landscaping, Green Cut Lawn Care, and Desert Green -- is a real estate developer, including construction and land development, well as landscaping and related care and maintenance in southern Idaho, primarily based out of Shoshone, Idaho. The Company filed for Chapter 11 protection on April 29, 2010 (Bankr. D. Idaho Case No. 10-40743). Robert J. Maynes, Esq., who has an office in Idaho Falls, Idaho, assists the Debtor in its restructuring effort. The Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts in its Chapter 11 petition. LEED CORP: Wants to Borrow $750,000 to Finish Project ----------------------------------------------------- The Leed Corporation asks the U.S. Bankruptcy Court for the District of Idaho for authorization to incur secured credit from Granite Loan Funding, LLC, a Utah limited liability company, or some other provider. The Debtor is unable to obtain credit for its construction business operations for the forthcoming six months. Granite agreed to provide the Debtor a revolving loan not to exceed $750,000 to complete the construction on partially built new residential housing. The DIP loan will have an interest rate of 14% per annum. Additionally, the Debtor will pay these closing costs: 10 points (50,000), plus $10,000 to cover legal work on the closing documents, inspection fee and miscellaneous charges, 6-months pre-paid interest (44,800) resulting in a net loan amount of $500,000. The date of repayment is 6 months from initial disbursement date, or March 31, 2011. As adequate protection, the Debtor will grant Granite or some other provider a first lien hold position, security interest in Debtor's real property, which security interest will be superior to all other liens and encumbrances. About The Leed Corporation Twin Falls, Idaho-based The Leed Corporation -- dba Green Cut Sprinklers and Landscaping, Leed Corp., Quality Built Homes, Green Cut Construction, Shoshone Developers, Desert Green Sprinklers & Landscaping, Green Cut Lawn Care, and Desert Green -- is a real estate developer, including construction and land development, well as landscaping and related care and maintenance in southern Idaho, primarily based out of Shoshone, Idaho. The Company filed for Chapter 11 protection on April 29, 2010 (Bankr. D. Idaho Case No. 10-40743). Robert J. Maynes, Esq., who has an office in Idaho Falls, Idaho, assists the Debtor in its restructuring effort. The Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts in its Chapter 11 petition. LEXINGTON PRECISION: Aurora Paid $60-Million for 75% Stake ---------------------------------------------------------- Dow Jones DBR Small Cap reports that Aurora Capital Group has bought roughly 75% stake in Lexington Precision Corp. The deal is worth about $60 million, with debt and equity amounts evenly split, according to a person familiar with the matter. The source said management holds the remaining stake. Dow Jones also relates Lexington Precision Chief Executive Michael Lubin is continuing with the company. Aurora made the investment by purchasing Lexington Precision's public debt and then converting it into equity and by making an additional cash investment. The investment came out of Aurora Resurgence, a special situations arm of Aurora Capital. The division raised its debut fund, Aurora Resurgence Fund LP, which closed at $650 million, in 2008. Lexington emerged from Chapter 11 bankruptcy protection July 30, 2010. As part of Lexington's 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. About Aurora Capital Aurora Capital Group is a Los Angeles-based private equity firm managing more than $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, represented 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, represented the Committee as counsel. The Company disclosed $52,730,000 in total assets and $88,705,000, according to papers filed in Court on the Petition Date. 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. LYONDELL CHEMICAL: Asks Court to Block Highland Suit ---------------------------------------------------- Bankruptcy Law360 reports that Lyondell Chemical Co. has asked a bankruptcy judge to block a lawsuit Highland Capital Management LP filed in New York state court against Lyondell and UBS AG over an exit financing agreement, saying the suit violates Lyondell's recently confirmed Chapter 11 plan. Law360 says Lyondell said in its motion filed Tuesday that Highland's suit is "a transparent attempt to end-run around the court's confirmation order and multiple provisions of the plan." About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. Len Blavatnik's Access Industries owned the Company prior to its bankruptcy filing. On January 6, 2009, LyondellBasell Industries' U.S. operations, led by Lyondell Chemical Co., and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities filed for Chapter 11. Luxembourg-based LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 on April 24, 2009. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, served as the Debtors' bankruptcy counsel. Evercore Partners served as financial advisors, and Alix Partners and its subsidiary AP Services LLC, served as restructuring advisors. AlixPartners' Kevin M. McShea acted as the Debtors' Chief Restructuring Officer. Clifford Chance LLP served as restructuring advisors to the European entities. LyondellBasell emerged from Chapter 11 bankruptcy protection in May 2010, with a plan that provides the Company with $3 billion of opening liquidity. A new parent company, LyondellBasell Industries N.V., incorporated in the Netherlands, is the successor of the former parent company, LyondellBasell Industries AF S.C.A., a Luxembourg company that is no longer part of LyondellBasell. LyondellBasell Industries N.V. owns and operates substantially the same businesses as the previous parent company, including subsidiaries that were not involved in the bankruptcy cases. LyondellBasell's corporate seat is Rotterdam, Netherlands, with administrative offices in Houston and Rotterdam. MANTIFF ALTOONA: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Mantiff Altoona Hospitality, LLC P.O. Box 4321 Wayne, NJ 07474 Bankruptcy Case No.: 10-34608 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Morris Stern Debtor's Counsel: Joseph J. DiPasquale, Esq. TRENK, DIPASQUALE, WEBSTER, DELLA, FERA & SODONO, P.C. 347 Mt. Pleasant Avenue, Suite 300 West Orange, NJ 07052 Tel: (973) 243-8600 Fax: (973) 243-8677 E-mail: jdipasquale@trenklawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-34608.pdf The petition was signed by Falgun Dharia, member. MCCLATCHY COMPANY: Files Form 10-Q; Earns $7.28 Million in Q2 2010 ------------------------------------------------------------------ The McClatchy Company filed on August 6, 2010, its quarterly report on Form 10-Q, reporting net income of $7.28 million on $342.0 million of revenue for the three months ended June 27, 2010, compared with net income of $42.21 million on $365.34 million of revenue for the three months ended June 28, 2009. Advertising revenues were $260.54 million, down 8.2% from the second fiscal quarter of 2009, primarily reflecting the impact of the economic recession. Circulation revenues were $67.67 million in the second fiscal quarter of 2010, down 2.4% from the second fiscal quarter of 2009. Other revenues were $13.82 million in the second fiscal quarter of 2001, up 12.2% from the second fiscal quarter of 2009. Earnings in the second fiscal quarter of 2009 included, among other items, a pre-tax gain on the extinguishment of debt of $44.83 million relating to a private bond exchange offer for cash and 15.75% senior notes due July 15, 2014. The Company's balance sheet as of June 27, 2010, showed $3.201 billion in total assets, $3.020 billion in total liabilities, and a stockholders' equity of $181.53 million. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?68da Error on Interest Coverage Ratio The McClatchy Company corrected a typographical error on its Form 10-Q that inadvertently transposed the Company's consolidated interest coverage ratio and its consolidated leverage ratio as of June 27, 2010. This paragraph correctly reports these amounts: At June 27, 2010, the Company's consolidated interest coverage ratio was 3.0 to 1.00 and its consolidated leverage ratio was 4.4 to 1.00 and the Company was in compliance with all financial debt covenants. Over the course of 2010, the Company's interest coverage ratio is expected to decline-but remain within covenant levels-as a result of higher interest expense from the Amended and Restated Credit Agreement and issuance of the 2017 Notes. Because of the significance of the Company's outstanding debt, remaining in compliance with debt covenants is critical to the Company's operations. If revenue declines continue beyond those currently anticipated, the Company expects to continue to restructure operations and reduce debt to maintain compliance with its covenants. The company said there have been no changes from the original Form 10-Q other than as described above. About The McClatchy Company Sacramento, Calif.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is the third largest newspaper company in the United States, publishing 30 daily newspapers, 43 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh). * * * The Troubled Company Reporter said on Feb. 15, 2010, Moody's Investors Service upgraded The McClatchy Company's Corporate Family Rating to Caa1 from Caa2, Probability of Default Rating to Caa1 from Caa2, and senior unsecured and unguaranteed note ratings to Caa2 from Caa3, concluding the review for upgrade initiated on January 27, 2010. The upgrades reflect McClatchy's improved liquidity position and reduced near-term default risk following completion of the company's refinancing, and its ability to stabilize EBITDA performance through significant cost reductions. The rating outlook is stable. MEDICAL CARD: Moody's Assigns 'B2' Rating on Senior Secured Debt ---------------------------------------------------------------- Moody's Investors Service has assigned a B2 senior secured debt rating to Medical Card System, Inc.'s $175 million five-year bank term loan. The proceeds of the issuance will be used to fund a special dividend to stockholders, repay existing indebtedness, and for general corporate purposes. In the same rating action, Moody's has also assigned a B2 corporate family rating to MCS and a Ba2 insurance financial strength rating to MCS's regulated operating subsidiary, MCS Advantage, Inc. The outlook on the ratings is stable. MCS is a privately-owned company incorporated and headquartered in Puerto Rico. Through its three insurance operating subsidiaries, the company offers insurance coverage and products to the residents of Puerto Rico. MCS Advantage, Inc., the largest operating subsidiary, offers Medicare Advantage Plan and Prescription Drug Program insurance coverage pursuant to contracts with Centers for Medicare and Medicaid Services. The other operating subsidiaries provide comprehensive healthcare services under the Puerto Rico Health Reform Program (Medicaid) and group life and health insurance products for groups and individuals in the commercial market. During 2009, approximately 53% of MCS's premiums were generated from its Medicare Advantage business while 34% was from its Medicaid operations. Moody's stated that the Ba2 IFS and B2 senior debt ratings reflect the relatively small size of MCS and its geographic concentration, with 100% of its revenues being generated in Puerto Rico. The ratings also reflect the company's high concentration of business in a handful of government contracts (i.e. Medicare and Medicaid). The rating agency noted that the loss or impairment of one of these contracts would have a considerable impact on the revenues and earnings of the company. In addition, Moody's pointed out that MCS's business profile benefits from its leading market share in managed care in Puerto Rico, measured by premiums, and its number one or number two market position in each of its Medicare, Medicaid, and commercial business segments, based on both premiums and membership. The company also has one of the largest networks of physicians and facilities in Puerto Rico, having contracts with over 13,000 primary care physicians, specialty care physicians and ancillary physicians and 66 hospitals. The rating agency added that the ratings also reflect the negative impact on financial flexibility of the $175 million bank term loan, which will result in an expected debt to EBITDA ratio in a range between 1.6x and 2.0x and result in negative shareholders' equity as a majority of the proceeds will be used to pay a dividend to stockholders. While the company currently meets the regulatory capital requirements in Puerto Rico, MCS's consolidated capital adequacy on an NAIC risk-based capital ratio basis is considered by Moody's to be relatively weak at less than 100% of company action level. It should be noted that in 2014 the regulatory requirements in Puerto Rico will step up to the 100% CAL level. Somewhat offsetting these considerations, however, is the company's relatively solid after-tax profit margins, which have averaged 2.7% over the last three years. Moody's said its ratings are based on the expectation that there are no changes or impairments in MCS's Medicare Advantage contracts with the Centers for Medicare and Medicaid Services or Puerto Rico Health Reform Program contract with the Puerto Rico Health Insurance Administration. Moody's stated that the ratings could move up if the consolidated RBC ratio increases above 100% of company action level, if the debt to EBIT ratio is sustained below 2x, if net earnings margins were to be consistently in the 3% range, and if the company increased the percentage of its earnings derived from commercial business. However, if there were a loss of membership of 10% or more in any year, if the company's consolidated RBC ratio falls below 50% of company action level, if net margins fall below 1%, or if there is a loss or impairment of one of the government contracts, then Moody's said the ratings could be moved down. These ratings were assigned with a stable outlook: * Medical Card System, Inc. -- B2 senior secured debt rating; B2 corporate family rating; * MCS Advantage, Inc. -- Ba2 insurance financial strength rating. Medical Card System, Inc. is headquartered in San Juan, Puerto Rico. As of December 31, 2009 MCS, reported approximately $114 million in shareholders' equity on a GAAP basis and medical membership of approximately 693,000 (excluding Medicare Part D stand alone membership). For calendar year 2009 total revenues were approximately $1.6 billion. Moody's insurance financial strength ratings are opinions about the ability of insurance companies to punctually pay senior policyholder claims and obligations. METRO-GOLDWYN-MAYER: Debt Trades at 58% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Metro-Goldwyn- Mayer, Inc., is a borrower traded in the secondary market at 42.47 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.58 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility, which matures on April 8, 2012. The debt is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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. As reported by the Troubled Company Reporter on Sept. 30, 2009, The New York Post, citing multiple sources, said discussions between debt holders and equity owners on a restructuring of Metro-Goldwyn-Mayer's massive debt load have begun on a contentious note, with both sides threatening to force MGM into bankruptcy in order to gain leverage and extract better terms from the other. Bloomberg also said that MGM is in talks to skip interest payments and restructure $3.7 billion in bank loans. MGM asked creditors to waive $12 million monthly interest payments until Feb. 15, 2010. MEXICANA AIRLINES: Needs $100MM to Keep Flying, Says CEO -------------------------------------------------------- Mexicana Airlines' Chief Executive Manuel Borja said the airline needs a cash injection of at least $100 million to keep flying, according to a report by The Canadian Press. Mr. Borja said in an interview with Radio Formula that he and the unions representing the airline's pilots and flight attendants are negotiating with investors to raise between $100 million and $150 million, The Canadian Press reported. He said a cash injection coupled with a deal with the unions to take a stake in the company in exchange for new labor terms could help keep Mexicana Airlines in business, according to the report. 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 Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000) MEXICANA AIRLINES: To Reduce Flights, Stop Paying Staff ------------------------------------------------------- Mexicana Airlines is set to cancel certain flights in the next few days to optimize available resources and ensure that priority is given to homebound passengers. The company said in a statement that it is taking this measure because of its deteriorating financial situation brought about by "a series of events that have strangled its cash flows." Specifically, Mexicana Airlines cited IATA's decision to suspend the company's BSP sales channel, forcing it to suspend the sale and issuing of tickets indefinitely "with serious repercussions for MexicanaClick and MexicanaLink sales." Other sources of revenue have either dried up or are being retained by financial institutions after the filing of the insolvency proceedings, according to the company. "Although flights will be reduced to a minimum over coming days, the airline and its employees are determined to make an effort to continue operating out of concern for passengers," Mexicana Airlines said. "It is hoped an agreement will be reached with union leaders and that additional resources can be obtained to secure the financial viability of the carrier," the company said. While Mexicana Airlines is set to cancel certain flights, the company has resumed its services from both Gatwick and Madrid, according to an August 10, 2010 report by Daily Telegraph. Mexicana Chief Executive Officer Manuel Borja Chico also said the airline hopes to resume ticket sales in the "coming days", Carla Main at Bloomberg News reports. Updated information on route and flight changes over the next few days will be posted on cmainforma.com, the company's mexicana.com link and twitter @mexicanaair. Passengers can also contact the company through these call centers: * Mexico City: 5448-8634 or 5998-5998 * Elsewhere in Mexico: 01800-837-6150 or 01800-801-2010 * United States & Canada: 1-888-882-9994 or 1-877-801-2010 Meanwhile, Mexicana Airlines said it will stop paying its employees effective Tuesday so that funds may be used to defray the operating expenses related to passengers on return trips, according to an August 10 report by Latin American Herald Tribune. About 4,500 to 5,000 employees including pilots, flight attendants and ground workers will be affected by this move. The company intends to "optimize the use and allocation of resources," according to a company spokesperson. The company has already begun its negotiations with the Flight Attendants Union, known as ASSA, and the Airline Pilots Association, or ASPA. Mexicana Airlines is proposing slashing pilot and flight attendants' jobs by 40%, with those remaining pilots being asked to accept a reduction of annual pay from $216,127 to $127,000, and the remaining flight attendants to accept a salary reduction from $53,000 to $32,000, Herald Tribune reported. Earlier, ASPA agreed to offer the airline a six-month deferment on salary payments to pilots. The other union, meanwhile, plans to offer a two-month deferment on its members' salary payments and to cut their food allowance by half for two weeks, according to a report by The Canadian Press. SNTTTASS, the union that represents ground workers, said it agreed to 150 job cuts or 6% of the 2,500 ground worker positions at the airline. Of this, 120 will be voluntary cuts while the rest will be selected by the union, according to its leader Miguel Angel Yudico. Mr. Yudico said the agreement, however, requires the airline to rehire between 50 and 60 workers after several months. 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 Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000) MICHAELS STORES: Bank Debt Trades at 6% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Michaels Stores, Inc., is a borrower traded in the secondary market at 94.03 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.43 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 31, 2013, and carries Moody's B2 rating and Standard & Poor's b rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Irving, Texas, Michaels Stores, Inc., is the largest arts and crafts specialty retailer in North America. As of March 9, 2009, the Company operated 1,105 "Michaels" retail stores in the United States and Canada and 161 Aaron Brothers Stores. At May 1, 2010, the Company had total assets of $1.56 billion against total liabilities of $4.32 billion, resulting in stockholders' deficit of $2.76 billion. MEDICAL CONNECTIONS: Posts $2.0 Million Net Loss in Q2 2010 ----------------------------------------------------------- Medical Connections Holdings, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.0 million on $1.9 million of revenue for the three months ended June 30, 2010, compared with a net loss of $1.7 million on $1.6 million of revenue for the same period of 2009. The Company's balance sheet at June 30, 2010, showed $2.8 million in total assets, $400,852 in total liabilities, and a stockholders' equity of $2.4 million. As reported in the Troubled Company Reporter on April 7, 2010, De Meo, Young, McGrath, CPA, in Fort Lauderdale, Fla., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses from operations. The Company acknowledges in its latest 10-Q that it has sustained operating losses and its revenue stream is not sufficient to fund expenses at this time. The Company has issued stock to continue to fund operations. The Company's continued existence is dependent upon its ability to generate sufficient cash flows from equity financing and service revenues. In view of the foregoing, there is substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?68ed Boca Raton, Fla.-based Medical Connections Holdings, Inc. provides medical recruitment and staffing services. MELISSA MILLER: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Melissa Mosich Miller 20736 Sea Vista Drive Malibu, CA 90265 Bankruptcy Case No.: 10-19870 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: Jacqueline L. Rodriguez, Esq. 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 E-mail: jlr@lnbrb.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 Debtor's List of four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Master Card Citi Advantage Card -- $32,000 P.O Box 6000 The Lakes, NV 89163 Trent Hill Jones, Bell & Abbott 601 S. Figueroa Street, 27th Floor -- $17,640 Mountain Geology -- $11,000 5158 Cochran Street Simi Valley, CA 93063 Cal West Geotechnical -- $5,070 MICHAEL DITMORE: Case Summary & 12 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Michael C. Ditmore Rebecca P. Ditmore 211 Rametto Road Santa Barbara, CA 93108 Bankruptcy Case No.: 10-14172 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Barbara) Judge: Robin Riblet Debtors' Counsel: Debra C. Young, Esq. 610 Anacapa Street Santa Barbara, CA 93101 Tel: (805) 403-2213 Fax: (805) 845-3779 E-mail: DebraCYoung@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 12 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb10-14172.pdf MIDWEST BANC: Delays Form 10-Q as Bank Seized Last May ------------------------------------------------------ Midwest Banc Holdings Inc. said it could not timely file its quarterly report on Form 10-Q for the period ended June 30, 2010, with the Securities and Exchange Commission. On May 14, 2010, the Company's wholly-owned subsidiary, Midwest Bank and Trust Company, an Illinois chartered bank, was closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, and the Federal Deposit Insurance Corporation was appointed as receiver of the Bank. On the same date, the FDIC facilitated the acquisition of most of the assets and liabilities of the Bank by First MeritBank, N.A. The Bank records necessary for completion of the Form 10-Q are now under control of either the FDIC or First MeritBank, N.A. The Company is a non-operating holding company, whose principal asset and source of income was its investment in the Bank. The closure of the Bank has had a significant adverse affect on the Company's liquidity, capital resources and financial condition and, as a result, there is substantial doubt about the Company's ability to continue as a going concern. Since the closure of the Bank, the Company has been working diligently with its financial and professional advisers to consider its future options. However, the circumstances have prevented the Company from finalizing its financial statements on time to file the Form 10-Q within the prescribed time period without unreasonable effort and expense. 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 total assets, $3.232 billion in total liabilities, and 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. MONEYGRAM INTERNATIONAL: Files Form 10Q; Earns $6.8MM in Q2 2010 ---------------------------------------------------------------- MoneyGram International, Inc., filed on August 9, 2010, its quarterly report on Form 10-Q for the quarterly period ended June 30, 2010. The Company reported net income of $6.8 million on $163.2 million of total net revenue for the three months ended June 30, 2010, compared with a net loss of $3.3 million on $169.1 million of net revenue for the same period of 2009. Total expenses decreased $18.56 million, or 11%, in the second quarter of 2010 compared to 2009. The Company's balance sheet as of June 30, 2010, showed $5.461 billion in total assets, $5.450 billion in total liabilities, $929.2 million in total mezzanine equity, and a stockholders' deficit of $918.0 million. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?68dc MoneyGram International, Inc. (NYSE: MGI) -- http://www.moneygram.com/-- is a leading global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange listed company with 203,000 global money transfer agent locations in 191 countries and territories. * * * According to the Troubled Company Reporter on July 1, 2010, Fitch Ratings has affirmed the Issuer Default Ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc., at 'B+'. Outlook is stable. Fitch noted that the ratings could be negatively impacted by further declines in remittance volumes driven by macro economic factors or decreases in migrant labor populations worldwide. MT VERNON MONETARY: Court Okays Auction of NowCash Unit ------------------------------------------------------- Dow Jones DBR Small Cap reports that a bankruptcy judge authorized Mount Vernon Monetary Management Corp. to auction a unit that owns 600 automated teller machines in gas stations, grocery stores and convenience stores. Debtor NowCash Ltd., a unit of Mount Vernon Monetary Management Corp., sought approval of the sale and related bidding procedures in a motion filed July 16. Pursuant to the motion, the Debtors and Allen D. Applbaum, in his capacity as receiver for the assets of the Debtors, entered into an asset purchase agreement and an Interim ATM Services Agreements with buyer F.A.M. Capital, LLC. According to the Debtors' motion, FAM will acquire NowCash's assets for $900,000 in the aggregate. FAM will deposit $45,000 to be maintained in an interest bearing escrow account. The sale is on an "as is," "where is," and "with all faults" basis. According to the motion, the Debtors expect to conduct the auction on August 18, and have the sale hearing on August 19. They expect to close a deal on August 31. To provide an incentive and to compensate FAM for negotiating the Purchase Agreement, the Debtors have agreed to bid protections, comprised of a Break-up Fee equal to 4% of the Purchase Price -- $36,000 -- under FAM's Purchase Agreement, which includes any expense reimbursement for all reasonable expenses incurred by FAM in connection with the Purchase Agreement. FAM and its affiliates own, operate or manage roughly 3,000 ATMs in the New York City area and have in place vault cash, processing and armored car servicing agreements with qualified service providers. On February 15, 2010, the Debtors and FAM entered into the Services Agreement, including extensions thereof, pursuant to which FAM has continued and maintained the NowCash operations. About Mount Vernon Mount Vernon, New York-based Mount Vernon Monetary Management Corp. and its affiliates consist of 33 commonly owned entities engaged in the ownership and management of automated teller machines, check cashing, and armored car services, real estate entities and related businesses, many of which are operationally related. Mount Vernon Monetary Management and its affiliates filed for Chapter 11 bankruptcy protection on May 27, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-23053). Mount Vernon filed for Chapter 11 bankruptcy after their president Robert Egan and chief operating officer Bernard McGarry were arrested and charged with bank fraud. Allen D. Applbaum, a senior managing director with FTI Consulting, Inc., has been appointed by the court as Receiver and Sole Corporate Manager of the Debtors. Allen G. Kadish, Esq., at Greenberg Traurig, LLP, assists the Company in its restructuring effort. In an affidavit filed with the Bankruptcy Court on the Petition Date, Allen D. Applbaum said as of April 30, 2010, the Debtors had an aggregate total of $179.1 million in assets and $186 million in liabilities. NASPP, INC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: NASPP, Inc 884 N. Grand Avenue Nogales, AZ 85621 Bankruptcy Case No.: 10-25455 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Eric Slocum Sparks, Esq. ERIC SLOCUM SPARKS PC 110 S. Church Avenue, #2270 Tucson, AZ 85701 Tel: (520) 623-8330 Fax: (520) 623-9157 E-mail: eric@ericslocumsparkspc.com Scheduled Assets: $461,122 Scheduled Debts: $1,858,191 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/azb10-25455.pdf The petition was signed by Arun Patel, president. NATIONAL COAL: Swings to $249,000 Net Income in Q2 2010 ------------------------------------------------------- National Coal Corp. filed its quarterly report on Form 10-Q, reporting net income of $248,967 on $10.6 million of revenue for the three months ended June 30, 2010, compared with a net loss of $6.3 million on $22.6 million of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $38.2 million in total assets, $55.2 million in total liabilities, and a stockholders' deficit of $17.0 million. At June 30, 2010, the Company had cash and cash equivalents of approximately $5.3 million, negative working capital of approximately $41.0 million and a stockholders' deficit of $17.0 million. The Company has a history of substantial net losses. During the six months ended June 30, 2010, and 2009, the Company generated net losses from continuing operations of $5.5 million and $8.9 million, respectively. Net cash flow (used in) provided by operating activities from continuing operations was approximately $(4.3) million and $3.2 million during the six months ended June 30, 2010, and 2009, respectively. The Company expects to use $500,000 to $600,000 of cash from operations per month during the remainder of 2010. The Company must raise additional equity or refinance its senior secured debt before the December 15, 2010 maturity date. The foregoing 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?68ba Headquartered in Knoxville, Tenn., National Coal Corp. (Nasdaq: NCOCD) http://www.nationalcoal.com/-- through its wholly owned subsidiary, National Coal Corporation, is engaged in coal mining in East Tennessee. Currently, National Coal employs about 155 people. National Coal sells steam coal to electric utilities and industrial companies in the Southeastern United States. NIELSEN COMPANY: Bank Debt Trades at 3% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which The Nielsen Company B.V. is a borrower traded in the secondary market at 96.88 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.50 percentage points from the previous week, The Journal relates. The Company pays 375 basis points above LIBOR to borrow under the facility. The bank loan matures on May 1, 2013, and carries Moody's Ba3 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Active in approximately 100 countries, with headquarters in Haarlem, The Netherlands and New York, USA, The Nielsen Company B.V. is a global information and media company. Nielsen Company carries a 'B2' long term corporate family rating from Moody's, 'B' issuer credit rating from standard & Poor's, and 'B' issuer default rating from Fitch. NORTH BAY: To Present Chapter 11 Plan for Confirmation on Sept. 16 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Florida will consider on September 16, 2010, at 9:00 a.m., the confirmation of North Bay Village, LLC's Plan of Reorganization. The hearing will be held at Room 4-117, Courtroom E, United States Courthouse, 2100 Street, Fort Myers, Florida Objections, if any, are due on September 9. September 2 is fixed as the last day to file written acceptances or rejections to the Plan. As reported in the Troubled Company Reporter on June 18, according to the Disclosure Statement, the Plan provides that the Reorganized Debtor will continue to collect rent from its tenants. The Reorganized Debtor will also renew the leases which are set to expire during the life of the Plan. Further, the Reorganized Debtor will employ a marketing strategy to attract new tenants to currently vacant space, well as any space which may subsequently become vacant, at the property. All distributions made under the Plan will be funded from these operations. The Plan provides for these terms: * Class 3 - Secured Claim of Bank of America - the lender will receive payment in full, net on any of the postpetition payments. * Class 4 - General Unsecured Creditors will be paid in full through a series of distributions totaling 100% to be made on a quarterly basis, at a rate of 5% of their Allowed Claim per quarter, beginning on the effective date of this plan and continuing for a period of five years. * Class 5 - Lessee Depositors will have their leases assumed as of the effective date of the Plan through confirmation of the Plan and their lease deposits will be transferred into a post confirmation segregated account utilized solely to hold lease deposits. * Class 6 - Executory Contract Holders will have their contracts assumed or rejected prior to confirmation of the Plan. To the extent the contracts are assumed, the Debtor will provide for a prompt cure of any defaults. * Class 7 - Equity Security Holders will receive a distribution of membership interests in the Reorganized Debtor consistent with their current Equity Security holdings. No distributions of monies will be made to the Equity Security Holders in any month unless and until both (i) all periodic operating expenses and (ii) required distributions have been paid and are current as of the time a proposed distribution is to be made to any of the Equity Security Holders. A full-text copy of the Amended Disclosure Statement is available for free at http://bankrupt.com/misc/NORTHBAYVILLAGE_ADS.pdf About North Bay Village LLC Tampa, Florida-based North Bay Village LLC -- dba North Bay Village - MM, Inc., and Pelican Bay/Limetree, LLC -- filed for Chapter 11 bankruptcy protection on February 12, 2010 (Bankr. M.D. Fla. Case No. 10-03090). Steven M. Berman, Esq., at Shumaker, Loop & Kendrick, LLP, is the Debtor's bankruptcy counsel. The Company estimated assets and debts at $10 million to $50 million. NORTHERN 120: Hearing on Plan Outline Continued Until Sept. 14 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona has continued until September 14, 2010, at 11:00 a.m., the hearing on the adequacy of the Disclosure Statement explaining Northern 120, LLC's Plan of Reorganization, as amended. The hearing will be held at 230 N. First Ave., 7th Floor, Courtroom 702, Phoenix, Arizona. The Debtor will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. As reported in the Troubled Company Reporter on February 22, the Plan proposes to give secured creditors the opportunity to be paid in full on their allowed secured claims immediately, or to remain as investors under new notes, and with an opportunity to share in the potential upside of the development. In addition, the Plan will result in the unsecured creditors receiving a substantial payout. General unsecured claims will share pro rata from the sum of $200,000. The interest holders will arrange for the infusion of the $200,000 into the reserve account for the payment of this class. The Plan will be implemented by the retention of its existing management. This implementation will also include the management and disbursement of the funds infused by the interest holders. The interest holders, through a payment from their funding source made for their benefit, will place $200,000 in escrow in the trust account of the Debtor's bankruptcy counsel by within 15 days prior to the final hearing on confirmation of the Debtor's Plan. These funds will become a part of the estate and fund the obligations, including the Reserve Account, at confirmation. These funds will only be available to, and become a part of, the estate as of confirmation. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/NORTHERN120_AmendedDS.pdf About Northern 120 Phoenix, Arizona-based Northern 120, LLC, is a limited liability company engaged in the business of owning and developing real property in the State of Arizona. The Company filed for Chapter 11 bankruptcy protection on November 5, 2009 (Bankr. D. Ariz. Case No. 09-28417). Mark W. Roth, Esq., at Polsinelli Shughart P.C. assists the Company in its restructuring efforts. The Company estimated $10 million to $50 million in assets and debts in its Chapter 11 petition. NORTHLAND INVESTMENTS: Settles Hawthorn Bank's Dismissal Motion --------------------------------------------------------------- Northland Investments Co., Inc., asks the U.S. Bankruptcy Court for the Western District of Missouri to approve a stipulation resolving secured creditor, Hawthorn Bank's motion to dismiss its Chapter 11 case for bad faith filing. The Debtor owes Hawthorn Bank $8,303,082 secured by an interest in the real property located in Kansas City, Platte County, Missouri. The stipulation provides that: -- Hawthorn Bank will have relief from the automatic stay to foreclose its perfected interest in certain real property of the debtor if the Debtor not obtain a contract to sell the property by October 1, 2010; -- on or before October 1, the Debtor obtains a binding contract to sell the real property with a party capable of purchasing the property; -- the contract provides for a deposit of at least $50,000 which must be paid to the Debtor or placed in escrow by October 1; -- the closing of the sale of the occurs on October 10; and -- the contract price is sufficient to pay Hawthorn Bank in full including interest and costs. About Northland Investments Co., Blue Springs, Missouri-based Northland Investments Co., Inc., filed for Chapter 11 bankruptcy protection on May 19, 2010 (Bankr. W.D. Mo. Case No. 10-42517). Lisa A. Epps, Esq., at Spencer Fane Britt & Browne LLP, assists the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and up to $10 million in debts in its Chapter 11 petition. NOVASTAR FINANCIAL: June 30 Balance Sheet Upside Down by $102MM --------------------------------------------------------------- Novastar Financial Inc. filed its quarterly report on Form 10-Q, reporting net income of $118,000 on $20.19 million of service fee and interest income for the three months ended June 30, 2010, compared with a net loss of $48.50 million n $44.28 million of service fee and interest income for the same period a year earlier. The Company's balance sheet at June 30, 2010, showed $33.88 million in total assets, $136.07 million in total liabilities, and a $102.18 million shareholders' deficit. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68e3 About NovaStar Financial NovaStar Financial, Inc., used to originate, purchase, securitize, sell, invest in and service residential nonconforming mortgage loans and mortgage backed securities. During 2007 and early 2008, NovaStar discontinued its mortgage lending operations and sold its mortgage servicing rights which subsequently resulted in the closure of its servicing operations. OPTI CANADA: To Offer US$400-Mil. in Notes in Private Placement --------------------------------------------------------------- OPTI Canada Inc. said it intends to offer by way of private placement US$100 million of First Lien Senior Secured Notes due 2012 and US$300 million First Lien Senior Secured Notes due 2013. The new 2012 Notes are being offered as additional notes under an indenture pursuant to which OPTI issued US$425 million aggregate principal amount of 9% First Lien Senior Secured Notes, due 2012, on November 20, 2009. The purpose of the private offerings is to maintain sufficient liquidity through the ramp-up period of the Long Lake Project and to allow the Company to continue with its previously announced review of strategic alternatives. The net proceeds will be used to repay outstanding amounts under our revolving credit facility and for general corporate purposes. Completion of these transactions is anticipated prior to the end of August 2010 but remains subject to a number of conditions, including agreement on final terms and conditions. Project Update The Long Lake Project continued to progress in July, with improvements in steam injection, bitumen production and Premium Sweet Crude sales. July average bitumen production was 28,700 barrels per day, with steam injection averaging 148,000 bbl/d. We had 71 well pairs on production as of July 31, 2010 and reached an average weekly bitumen production of 30,100 bbl/d in late July. In August, a combination of unplanned Upgrader maintenance and a short-term pipeline capacity restriction has resulted in a temporary reduction in steam injection, bitumen production and PSC(TM) sales. The pipeline restriction relates to the transportation of heavy crude out of Alberta and is unrelated to the Project. The company expects to return to normal operations and average daily July bitumen production levels within one or two weeks. About OPTI OPTI Canada Inc. is a Calgary, Alberta-based company focused on developing major oil sands projects in Canada using its proprietary OrCrude(TM) process. OPTI's common shares trade on the Toronto Stock Exchange under the symbol OPC. * * * According to the Troubled Company Reporter on Aug. 13, 2010, Standard & Poor's Ratings services said it lowered its long-term corporate credit rating on Calgary, Alta.-based OPTI Canada Inc. to 'CCC+' from 'B-'. The outlook is stable. Moody's Investors Service assigned a B3 (LGD2, 27%) rating to OPTI Canada Inc.'s proposed secured first-lien 1C notes. Moody's also affirmed OPTI's Caa2 Corporate Family Rating, B1 rating on the existing C$190 million secured first-lien revolving facility, B2 rating on the secured first-lien 1B notes and Caa3 rating on the US$1.75 billion secured second lien notes. The rating outlook remains negative. OSI RESTAURANT: Bank Debt Trades at 13% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which OSI Restaurant Partners, Inc., is a borrower traded in the secondary market at 87.13 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.46 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on May 9, 2014, and carries Moody's B3 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. OSI Restaurant Partners, Inc., is the #3 operator of casual-dining spots (behind Darden Restaurants and Brinker International), with more than 1,400 locations in the U.S. and 20 other countries. Its flagship Outback Steakhouse chain boasts more than 950 locations that serve steak, chicken, and seafood in Australian-themed surroundings. OSI also operates the Carrabba's Italian Grill chain, with about 240 locations. Other concepts include Bonefish Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise. Most of the restaurants are company owned. A group led by Chairman Chris Sullivan took the company private in 2007. OSI Restaurant reported a net loss of $978,000 on $947.4 million of total revenues for the three months ended March 31, 2010, compared with a net income of $82.3 million on $964.3 million of total revenues during the same period a year ago. The Company's balance sheet at March 31, 2010, showed $2.4 billion in total assets and $2.5 billion in total liabilities, for a stockholders' deficit of $118.8 million. PALOS BANK AND TRUST: Closed; First Midwest Bank Assumes Deposits ----------------------------------------------------------------- Palos Bank and Trust Company of Palos Heights, Ill., was closed on Friday, Aug. 13, 2010, by the Illinois Department of Financial and Professional Regulation - Division of Banking, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Midwest Bank of Itasca, Ill., to assume all of the deposits of Palos Bank and Trust Company. The five branches of Palos Bank and Trust Company will reopen during normal banking hours as branches of First Midwest Bank. Depositors of Palos Bank and Trust Company will automatically become depositors of First Midwest Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Palos Bank and Trust Company should continue to use their existing branch until they receive notice from First Midwest Bank that it has completed systems changes to allow other First Midwest Bank branches to process their accounts as well. As of June 30, 2010, Palos Bank and Trust Company had around $493.4 million in total assets and $467.8 million in total deposits. First Midwest Bank will pay the FDIC a premium of 1% to assume all of the deposits of Palos Bank and Trust Company. In addition to assuming all of the deposits of the failed bank, First Midwest Bank agreed to purchase essentially all of the assets. The FDIC and First Midwest Bank entered into a loss-share transaction on $343.8 million of Palos Bank and Trust Company's assets. First Midwest Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-913-3053. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/palosbank.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $72.0 million. Compared to other alternatives, First Midwest Bank's acquisition was the least costly resolution for the FDIC's DIF. Palos Bank and Trust Company is the 110th FDIC- insured institution to fail in the nation this year, and the fourteenth in Illinois. The last FDIC-insured institution closed in the state was Ravenswood Bank, Chicago, on Aug. 6, 2010. PARADIGM HOLDINGS: June 30 Balance Sheet Upside-Down by $1.8MM -------------------------------------------------------------- Paradigm Holdings, Inc.'s balance sheet at June 30, 2010, showed total assets of $17,973,742, total liabilities of $19,755,770, and a stockholders' deficit of $1,782,028, according to the latest Form 10-Q filed with the Securities and Exchange Commission. As of June 30,the Company had an accumulated deficit of $6,100,000 and working capital deficit of $400,000. Additionally, the Company is highly dependent on a line-of-credit financing arrangement. Although there can be no assurances, the Company believes that cash flow from operations, together with borrowings available from its credit facility with Silicon Valley Bank will be adequate to meet future liquidity needs for the next twelve months. As of June 30, the Company had $900,000 available under the SVB Line. For three months ended June 30, the Company posted a net loss of $1,995,572 on $7,517,641 of contract revenue compared with a net loss of $1,470,669 on $8,671,472 of contract revenue for the same period ended June 2009. For six months ended June 30, the Company posted a net loss of $2,535,850 on $15,040,345 of contract revenue compared with a net loss of $2,098,348 on $16,379,096 of contract revenue for the same period ended June 2009. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68c6 About Paradigm Holdings Headquartered in Rockville, Maryland, Paradigm Holdings, Inc., through its subsidiary, Paradigm Solutions Corp., provides information technology, information assurance, and business continuity solutions, primarily to U.S. Federal Government customers. PARAMOUNT HEALTHCARE: Case Summary & Largest Unsecured Creditor --------------------------------------------------------------- Debtor: Paramount Healthcare Group Inc. 350 Evergreen Rd Louisville, KY 40243 Bankruptcy Case No.: 10-34229 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court Western District of Kentucky (Louisville) Debtor's Counsel: David M. Cantor, Esq. SEILLER WATERMAN LLC 462 S. 4th Street, Suite 2200 Louisville, KY 40202 Tel: 584-7400 E-mail: cantor@derbycitylaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service $3,449,501 P.O. Box 21126 Philadelphia, PA 19114 The petition was signed by Frank Littriello Jr., director. PINNACLE FOODS: Bank Debt Trades at 5% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Pinnacle Foods Group LLC is a borrower traded in the secondary market at 94.59 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.79 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on April 2, 2014, and carries Moody's Ba3 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Mt. Lakes, N.J., Pinnacle Foods Group LLC manufactures, markets and distributes branded food products. It was formerly referred as Pinnacle Foods Group, Inc., prior to April 2, 2007. As reported by the TCR on August 12, 2010, 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. POSTROCK ENERGY: Posts $9.6 Million Net Loss in Q2 Ended June 30 ---------------------------------------------------------------- PostRock Energy Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $9.6 million on $23.8 million of revenue for the three months ended June 30, 2010, compared with a net loss of $30.5 million on $23.7 million of revenue for the same period of 2009. "During the second quarter we successfully completed our 2010 development plan in the Cherokee Basin, completing and connecting 114 new wells on time and under budget. Also during the quarter, we increased our Cherokee Basin well service activity, returning 190 wells to production in order to capitalize on more attractive natural gas prices. We remain focused on reducing debt, lowering costs and simplifying our capital structure." The Company's balance sheet as of June 30, 2010, showed $306.5 million in total assets, $366.3 million in total liabilities, and a stockholders' deficit of $59.8 million. "We have incurred significant losses from 2003 through 2009, mainly attributable to operations, the impairment of our assets, legal restructurings, financings, the legal and operational structure that existed prior to recombination, expenditures resulting from the investigation related to the misappropriation of funds by our former chief executive officer and our recent recombination activities. While we successfully negotiated amendments to our various credit facilities allowing us to accomplish the recombination, our current debt obligations as of June 30, 2010, were $305.2 million, of which $6.8 million was paid in July 2010. A payment due on July 11, 2010, under the QRCP credit facility of $20.5 million, which includes accrued interest and fees, was extended by our lender to October 9, 2010. We recently remediated a borrowing base deficiency of $13.6 million on our QELP credit facility using available funds and as a result, our cash balance has decreased to approximately $14.6 million as of August 2, 2010. In addition to prepayments arising from any borrowing base deficiency, QELP may also be required to make additional prepayments arising from the excess cash flow provision (as defined) under its credit agreement. We are actively pursuing the refinancing of our credit facilities, which could include the issuance of a significant amount of equity capital. There can be no assurance that we will be successful in these efforts or that we will have sufficient funds to pay these amounts when they come due, which raises substantial doubt as to our 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?68d4 A full-text copy of the earnings release is available for free at: http://researcharchives.com/t/s?68d5 Based in Oklahoma City, PostRock Energy Corporation (NASDAQ: PSTR) -- http://www.pstr.com/-- is a vertically integrated independent energy company engaged in the acquisition, exploration, development, production and transportation of oil and natural gas in the Cherokee Basin, the Appalachian Basin, and Central Oklahoma. PostRock has over 2,800 wells and nearly 2,200 miles of natural gas gathering pipelines in the Cherokee Basin, over 400 natural gas and oil producing wells and undeveloped acreage in the Appalachian Basin and Marcellus shale, and more than 1,100 miles of interstate natural gas transmission pipelines in Oklahoma, Kansas, and Missouri. REAL MEX: Posts $770,000 Net Loss for June 27 Quarter ----------------------------------------------------- Real Mex Restaurants Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $770,000 on $129.63 million of total revenues for the three months ended June 27, 2010, compared with a net loss of $4.13 million on $135.92 million of total revenues for the three months ended June 30, 2009. The Company's balance sheet at June 27, 2010, showed $248.39 million in total assets, $252.29 million total liabilities, and a $3.89 million stockholders' deficit. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68e6 About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. The Company operated 183 restaurants as of March 28, 2010, of which 152 were located in California and the remainder were located in 12 other states, primarily under the trade names El Torito Restaurant(R), Chevys Fresh Mex(R) and Acapulco Mexican Restaurant Y Cantina(R). In addition, the Company franchised or licensed 34 restaurants in 12 states and two foreign countries as of March 28, 2010. The Company's other major subsidiary, Real Mex Foods, Inc., provides internal production, purchasing and distribution services for the restaurant operations and also provides distribution services and manufactures specialty products for sale to outside customers. RBC DEVELOPMENT: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: RBC Development, LLC 167 Fanmouth Drive Mooresville, NC 28115 Bankruptcy Case No.: 10-32354 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Western District of North Carolina (Charlotte) Judge: George R. Hodges Debtor's Counsel: James H. Henderson, Esq. JAMES H. HENDERSON, P.C. 1201 Harding Place Charlotte, NC 28204-2248 Tel: (704) 333-3444 Fax: (704) 333-5003 E-mail: henderson@title11.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/ncwb10-32354.pdf The petition was signed by Russell J. Sinacori, managing member. REDCO DEV'T: Files List of 10 Largest Unsecured Creditors --------------------------------------------------------- Redco Development Co., LLC, has filed with the U.S. Bankruptcy Court for the District of Oregon an amended list of its 10 largest unsecured creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ South Valley Bank & Trust 891 O'Hare Parkway Medford, OR 97504 Guaranty $3,024,103 US Bank 131 E. Main Medford, OR 97504 Guaranty $395,593 Ron Munroe Backhoe Service 4624 Winneetka Road White City, OR 97503 Construction Work $95,563 Grant Alexander Lawsuit $40,000 Brophy Schmor Gerking Legal Services $8,510 C&D Cleaning Cleaning Services $1,100 Avista Utilities Utility Service $855 Shirley Delsman Botts CPA Accounting Services $775 Oregon Secretary of State Annual Report $50 Alladin Lock & Safe Locksmith $12 Medford, Oregon-based Redco Development Co., LLC, filed for Chapter 11 bankruptcy protection on August 3, 2010 (Bankr. D. Ore. Case No. 10-64783). James Ray Streinz, Esq., who has an office in Portland, Oregon, assists the Debtor in its restructuring effort. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. REDCO DEV'T: Section 341(a) Meeting Scheduled for Sept. 7 --------------------------------------------------------- The U.S. Trustee for Region 18 will convene a meeting of Redco Development Co., LLC's creditors on September 7, 2010, at 10:00 a.m. The meeting will be held at U.S. Trustee's Office, Room 1900, 405 E 8th Ave, Eugene, OR 97401. 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. Medford, Oregon-based Redco Development Co., LLC, filed for Chapter 11 bankruptcy protection on August 3, 2010 (Bankr. D. Ore. Case No. 10-64783). James Ray Streinz, Esq., who has an office in Portland, Oregon, assists the Debtor in its restructuring effort. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. REGAL ENTERTAINMENT: Prices Offering for $275-Mil. of Senior Notes ------------------------------------------------------------------ Regal Entertainment Group said it plans to offer $275 million aggregate principal amount of its senior notes due 2018. The company has priced the offering at a price to the public of 100% of their face value. The Company intends to use all of the net proceeds of the offering to: i) redeem all of Regal Cinemas' outstanding 9.375% senior subordinated notes due 2012, ii) repurchase or repay all of the Company's outstanding 6.25% convertible senior notes due 2011, iii) pay fees and expenses related to this offering, and iv) for general corporate purposes, which may include the redemption, repayment or repurchase of other indebtedness. About Regal Entertainment Group Based in Knoxville, Tennessee, Regal Entertainment Group (NYSE: RGC) -- http://www.REGmovies.com/-- is the largest motion picture exhibitor in the world. Regal's theatre circuit, comprising Regal Cinemas, United Artists Theatres and Edwards Theatres, operates 6,739 screens in 545 locations in 38 states and the District of Columbia. Regal operates theatres in 43 of the top 50 U.S. designated market areas. * * * According to the Troubled Company Reporter on Aug. 13, 2010, Fitch Ratings has assigned a 'B-/RR6' rating to Regal Entertainment Group $275 million 9.125% senior unsecured note due 2018. Proceeds of the notes are expected to be used to redeem all of Regal Cinemas Corporation's (Regal Cinema) 9.375% senior subordinated notes due 2012 and all of Regal's 6.25% convertible senior notes due 2011, and for general corporate purposes, which may include the repayment or repurchase of other indebtedness. Regal Cinemas is an indirectly wholly owned subsidiary of Regal. 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. 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. REGENCY ENERGY: Zephyr Deal Modestly Positive for Credit Profile ---------------------------------------------------------------- Moody's Investors Service views Regency Energy Partners LP's (Ba3 Corporate Family Rating, B1 senior unsecured note rating and positive outlook) recent announcement to acquire Zephyr Gas Services for $185 million and its subsequent $363 million common units offering as modestly positive for its credit profile. The last rating action on Regency was on May 12, 2010, when Moody's affirmed the company's ratings at Ba3 and changed the outlook to positive from stable. Headquartered in Dallas, Texas, Regency Energy Partners LP is a publicly traded master limited partnership engaged in natural gas gathering, processing, and transportation. RESPONSE GENETICS: June 30 Balance Sheet Upside-Down by $1.7MM -------------------------------------------------------------- Response Genetics, Inc.'s balance sheet at June 30, 2010, showed total assets of 12,505,814, total liabilities of $6,324,932, common stock classified outside of stockholders' equity of $7,854,682, and a stockholders' deficit of $1,673,800, according to the latest Form 10-Q filed with the Securities and Exchange Commission. For three months ended June 30, the Company posted net loss of $425,038 compared with net loss of $2,383,033 for the same period ended December 2009. Revenues were $5,642,655 for the quarter ended June 30, compared with $1,898,239 for the quarter ended June 30, an increase of $3,744,416, or 197%. For six months ended June 30, the Company posted net loss of $2,519,584 compared with net loss of $5,645,361 for the same period ended December 2009. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68c5 Response Genetics, Inc., is a life science company engaged in the research, development, marketing and sale of pharmacogenomic tests for use in the treatment of cancer. RESPONSE BIOMEDICAL: Posts C$1.87 Million Net Loss in Q2 2010 ------------------------------------------------------------- Response Biomedical Corp. filed on August 10, 2010, unaudited financial statements for the three months ended June 30, 2010. The Company reported a net loss of C$1.87 million on C$2.11 million of revenue for the three months ended June 30, 2010, compared with a net loss of C$1.90 million on $2.07 million of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed C$18.01 million in total assets, C$12.55 million in total liabilities, and a stockholders' equity of C$5.46 million. The Company's inability to generate sufficient cash flows may result in it not being able to continue as a going concern. The Company has sustained continuing losses since its formation and at June 30, 2010, had a deficit of C$95.23 million and incurred negative cash flows from operations of C$1.41 million and C$4.35 million for the three and six month periods ended June 30, 2010. The Company believes these conditions raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Company's financial statements for the three months ended June 30, 2010, is available for free at: http://researcharchives.com/t/s?68d7 Headquartered in Vancouver, British Columbia, Response Biomedical Corporation (TSX: RBM, OTCBB: RPBIF) -- www.responsebio.com/ -- develops, manufactures and markets rapid on-site diagnostic tests for use with its RAMP(R) Platform for clinical and environmental applications. The RAMP(R) system consists of a Reader and single- use disposable test cartridges, and has the potential to be adapted to more than 250 medical and non-medical tests currently performed in laboratories. RAMP(R) clinical tests are commercially available for the early detection of heart attack, congestive heart failure, influenza and RSV through our commercial partners, Roche and 3M Health Care respectively. In the non- clinical market, RAMP(R) Tests are currently provided for the environmental detection of West Nile Virus, and Biodefense applications including the rapid on-site detection of anthrax, smallpox, ricin and botulinum toxin. RICHARD NAHIGIAN: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Richard Nahigian 2656 Aberdeen Avenue Los Angeles, CA 90027 Bankruptcy Case No.: 10-43870 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Victoria S. Kaufman Debtor's Counsel: Ovsanna Takvoryan, Esq. TAKVORYAN LAW GROUP, A PROFESSIONAL CORP 450 N. Brand Boulevard, Suite 600 Glendale, CA 91203 Tel: (818) 291-6272 Fax: (818) 484-2126 E-mail: ovsanna@takvoryanlawgroup.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 eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb10-43870.pdf RITE AID: Bank Debt Trades at 11% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which Rite Aid Corporation is a borrower traded in the secondary market at 88.95 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.50 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on May 25, 2014, and carries Moody's B3 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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, including the 'B-' corporate credit rating. The outlook is stable. RIVER ROAD: Court Grants FDIC's Bid to Intervene Bankruptcy Case ---------------------------------------------------------------- Bankruptcy Law360 reports that a U.S. bankruptcy court has granted the Federal Deposit Insurance Corp.'s request to intervene in River Road Hotel Partner LLC's bankruptcy, allowing the agency to aid U.S. Bank National Association as it seeks the right to credit bid on the debtor's assets. River Road Hotel Partners LLC is the owner of the InterContinental Chicago O'Hare airport hotel. Affiliate RadLAX Gateway Hotel LLC owns the Radisson hotel at Los Angeles International Airport. Both are ultimately controlled owned by Harp Group. River Road and RadLAX filed Chapter 11 in Chicago in August 2009 (Bankr. N.D. Ill. Case No. 09-30029). Based in Oak Brook, Illinois, River Road estimated assets of as much as $100 million and debt of as much as $500 million in its Chapter 11 petition. ROBERT POULIOT: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: Robert David Pouliot Michele Francis Pouliot fka Michele Francis Wilder 244 Eareckson Lane Stevensville, MD 21666 Bankruptcy Case No.: 10-28289 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court District of Maryland (Baltimore) Debtors' Counsel: Tate Russack, Esq. Russack Associates, LLC 100 Severn Avenue, Suite 101 Annapolis, MD 21403 Tel: (410) 505-4150 Fax: (410) 510-1390 E-mail: tate@russacklaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-28289.pdf RUFFIN ROAD: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Ruffin Road Venture Lot 3 3655 Ruffin Road San Diego, CA 92123 Bankruptcy Case No.: 10-14356 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Edward Medina, Esq. MEDINA LAW GROUP 4025 Camino Del Rio South, Suite 300 San Diego, CA 92108 Tel: (619) 542-7865 Fax: (619) 609-0703 E-mail: emedina@medina-lawgroup.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/casb10-14356.pdf The petition was signed by Kevin Tucker, president RYAN PERRY: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Ryan Donald Perry Shana Stone Perry 712 Granite Peak Drive Rolesville, NC 27571 Bankruptcy Case No.: 10-06478 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Randy D. Doub Debtors' Counsel: Jason L. Hendren, Esq. HENDREN & MALONE, PLLC 4600 Marriott Drive, Suite 150 Raleigh, NC 27612 Tel: (919) 573-1422 Fax: (919) 420-0475 E-mail: bwood@hendrenmalone.com Scheduled Assets: $1,417,295 Scheduled Debts: $5,801,687 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nceb10-06478.pdf Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- R&D Development, LLC 10-03924 05/14/10 SANLUIS CORPORACION: Fitch Cuts Issuer Default Ratings to 'RD' -------------------------------------------------------------- Fitch Ratings has downgraded these ratings of SANLUIS Corporacion, S.A. de C.V.'s: -- Foreign and local currency Issuer Default Ratings to 'RD' from 'C'. Fitch has also taken these rating actions: SANLUIS Co-Inter, S.A., a fully owned subsidiary of SANLUIS: -- Foreign and local currency IDRs assigned 'RD'. SANLUIS Rassini Autopartes, S.A. de C.V.'s, a fully owned subsidiary of SISA, downgraded to 'RD' from 'C'. SANLUIS' unsecured bonds, issued through SANLUIS' subsidiary SANLUIS Co-Inter S.A.: -- Debenture notes due June 2010 affirmed at 'C/RR6'; -- Mandatory convertible notes due June 2011 affirmed at 'C/RR6'. SANLUIS' secured debt (RCA): -- Secured restructured credit facility debenture affirmed at 'CC/RR3'. These rating actions follow recent events related to SANLUIS' secured and unsecured debt. SANLUIS announced during June 2010 that its subsidiaries had reached an agreement to extend payments on US$146 million in bank debt to the end of 2014 and that SISA had defaulted on its US$88.1 million notes due in June 2010 and would seek to restructure this debt. During July, SANLUIS informed that holders of SISA's 7% mandatorily convertible debentures due June 2011 had accelerated the maturity. The downgrades of SANLUIS' and Rassini's IDRs to 'RD' reflect the uncured payment default of SISA. Also factored into the ratings is an expectation that SISA will not pay the 7% mandatorily convertible debentures, initially due in June 2011 and recently accelerated. The 'RR6' recovery ratings on SISA's debentures and mandatory convertible notes reflect Fitch's expectation that the recovery prospects for the debt instruments are poor. SISA is an intermediate holding company and therefore these unsecured notes are structurally subordinate to the secured debt at the level of the operating companies (Suspension Group Debt). The 'CC/RR3' rating of the US$146 million senior secured restructured credit facility indicates above average recovery expectations, in the event of default, due to the recently completed refinancing agreement with the secured lenders and the improvements in SANLUIS' cash flow generation. The recovery rating of 'RR3' has been capped by Mexico's classification as a Group C country within Fitch's criteria entitled Country Specific Treatment of Recovery Ratings. dated Aug. 21, 2006. As of June 30, 2010, SANLUIS had approximately US$386 million of total consolidated debt and US$16 million of cash and marketable securities. The company's debt consists primarily of US$146 million of secured restructured debt, US$88.1 million of 8% guaranteed senior notes due in June 2010, including capitalized interest; and US$132 million of 7% mandatorily convertible debentures due in June 2011, including capitalized interest. Several restructuring initiatives have resulted in an improvement in the company's EBITDA margin to 13.2% during the last 12 month (LTM) period ended June 30, 2010 from 6.2% during the fiscal year 2008. During the LTM period ended in June 30 2010, the company's EBITDA was US$67 million, which positively compares with the levels the company reached in fiscal 2009 and fiscal 2008 of US$38 million and US$32 million, respectively, and is in line with the US$69 million of EBITDA the company averaged between 2005 and 2007. SANLUIS is a leading manufacturer of suspension and brake components. Its business has been under extreme pressure in recent years due to the dramatically decline in demand for light trucks (pickup trucks, SUVs, vans and minivans) in North America; a rebound in demand for vehicles in the U.S. may not improve the outlook for the company, as consumers shift to smaller vehicles. The company's performance is closely related to General Motors Corp. (GM), Ford Motors Co. (Ford) and Chrysler, as these three companies represent approximately 65% of its revenues. SBARRO INC: June 30 Balance Sheet Upside-Down by $10.8 Million -------------------------------------------------------------- Sbarro Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $824,000 on $76.09 million of total revenues for the three months ended June 27, 2010, compared with a net loss of $19,000 on $80.13 million total revenues for the three months ended June 28, 2009. The Company's balance sheet at June 27, 2010, showed $457.52 million in total assets, $33.89 million in total current liabilities, $7.12 million in deferred rent, $70.64 million in deferred tax liability, $13.01 million due to former shareholders, $5.21 million in accrued interest payable, $336.28 million in long-term debt, and a stockholders' deficit of $10.77 million. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?68df About Sbarro Inc. Melville, N.Y.-based Sbarro, Inc. -- http://www.sbarro.com/-- is the world's leading Italian quick service restaurant concept and the largest shopping mall-focused restaurant concept in the world. The Company has 1,056 restaurants in 41 countries. * * * As of March 26, 2010, the Company carries Standard and Poors' CCC+ senior credit facility rating, CCC- Senior Notes rating, and CCC+ corporate rating. In July 2009, Moody's increased Sbarro's credit ratings to Caa1 from Caa2 on its senior credit facility, affirmed its C rating on its senior notes and affirmed its Ca corporate rating, which ratings hold to date. SEA ISLAND: Case Summary & 30 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Sea Island Company aka Sea Island Shooting School Sea Island Yacht Club Sea Island Stables Cabin Bluff 100 Salt Marsh Lane St. Simons Island, GA 31522 Bankruptcy Case No.: 10-21034 Chapter 11 Petition Date: August 10, 2010 About the Debtor: 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. Sea Island is filing a Chapter 11 plan based upon 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. Court: U.S. Bankruptcy Court Southern District of Georgia (Brunswick) Debtor's Counsel: Sarah R. Borders, Esq. Harris Winsberg, Esq. Sarah L. Taub, Esq. Jeffrey R. Dutson, Esq. KING & SPALDING LLP 1180 Peachtree Street, NE Atlanta, GA 30309-3521 Tel: (404) 572-4600 Fax: (404) 572-5100 Debtor's Co-Counsel: Robert M. Cunningham, Esq. GILBERT, HARRELL, SUMERFORD & MARTIN PC P.O. Box 190 Brunswick, GA 31521 Tel: (912) 265-6700 Fax: (912) 264-3917 E-mail: rcunningham@gilbertharrelllaw.com Debtor's Restructuring Advisors: FTI CONSULTING, INC. Debtor's Claims & Notice Agent: EPIQ BANKRUPTCY SOLUTIONS, LLC Estimated Assets: $500,000,001 to $1 billion Estimated Debts: $500,000,001 to $1 billion Debtor-affiliates that filed separate Chapter 11 petitions on August 10, 2010: Entity Case No. ------ -------- Sea Island Coastal Properties, LLC 10-21035 Sea Island Services, Inc. 10-21036 Sea Island Resort Residences, LLC 10-21037 Sea Island Apparel, LLC 10-21038 First Sea Island, LLC 10-21039 Sical, LLC 10-21040 The petitions were signed by David Bansmer, president and chief operating officer. Sea Island Co.'s List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Dennie McCrary Employment $27,014,406 283 West 13th Street obligations Sea Island, GA 31561 PBGC Pension claim $13,109,840 Dept. of Insurance Supervision & Compliance 1200 K. Street N.W. Washington, DC 20005-4026 David Everett Employment $3,617,106 319 West 48th Street obligations Sea Island, GA 31561 Matt Hodgdon Employment $3,450,249 307 Carnoustie obligations St Simons Island, GA 31522-2423 Edward T. Wright Employment $2,307,344 107 Arthur J. Moore Drive obligations St Simons Island, GA 31522 Merrell Hawkins LLC Note payable $2,245,985 One Premier Plaza 5605 Glenridge Drive NE, Suite 720 Atlanta, GA 30342-1378 C. T. Adams Employment $1,809,663 503 Vassar Point obligations St Simons Island, GA 31522-2416 William C. Smith Employment $1,521,610 225 Abbott Lane obligations St Simons Island, GA 31522 Billy Ray Gibson Employment $1,371,481 406 Whitfield Avenue obligations St Simons Island, GA 31522-2229 Bob Flight Employment $869,794 24 Gayfield Road obligations Cape Elizabeth, ME 04107 Tom Fazio Trade debt $850,000 401 N. Main Street, Suite 400 Hendersonville, NC 28792 Sue M. Sayer Employment $594,813 302 Forest Oaks obligations St Simons Island, GA 31522-2489 Imperial Credit Corporation Trade debt $323,710 101 Hudson Street Jersey City, NJ 07302 Georgia Power Trade debt $293,640 241 Ralph McGill Boulevard, B-10180 Atlanta, GA 30308 William R. Graham Employment $168,376 obligations Merry T. Tipton Employment $137,917 obligations Joyce McNeely Employment $137,071 obligations Clifford Owens, Jr. Employment $129,198 obligations Bill Edenfield Employment $124,977 obligations Institution Food House Inc Trade debt $110,933 Nancy Butler Employment $95,836 obligations Bill Miller Employment $71,412 obligations Barbara Ann Johns Employment $63,262 obligations Glynn Landscaping Trade debt $56,840 Carl Patrick Talley Employment $56,608 obligations John Deere Credit Trade debt $55,880 Network Services Plus Inc. Trade debt $52,525 Barry's Beach Service Inc. Trade debt $49,265 Lesco/John Deere Landscapes Trade debt $44,703 Bernd Lembcke Employment $43,486 obligations SHANE CO: Files Plan, Offers to Repay Nearly 100% of Claims ----------------------------------------------------------- Bankruptcy Law360 reports that Shane Co. has floated a reorganization plan that calls for the continued operation of the family-owned business during restructuring and for the recovery, over time, of nearly 100 percent of all creditor claims. To facilitate approval of the plan, President, CEO, Director and major shareholder Thomas M. Shane has agreed to defer repayments on some $30 million he loaned his troubled company, Law360 says. According to Ed Sealover at Denver Business Journal, Mr. Shane agreed to loan the company 50% of federal income tax refund he has and will collect in the futuer on account of net operating losses of the company in order to help fund the obligations of the company. Headquartered in Centennial, Colorado, Shane Co. -- http://www.shaneco.com/-- sells jewelry. The Company filed for Chapter 11 protection on January 12, 2009 (Bankr. D. Col. Case No. 09-10367). Gregg M. Galardi, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, serves as the Debtor's counsel, and Caroline C. Fuller, Esq., at Fairfield and Woods, P.C., serves as the Debtor's local counsel. Charles F. McVay, the U.S. Trustee for Region 19, appointed six creditors to serve on an Official Committee of Unsecured Creditors. Cohen Tauber Spievack & Wagner P.C. represents the Committee. The Debtor proposed Kurtzman Carson Consultants LLC as its claims agent. The Company filed formal lists showing assets for $130 million and debt totaling $103 million, including $31.4 million owing on secured claims. SHAWN MCBRIDE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: Shawn M. McBride Dana M. McBride 17507 Central Avenue Upper Marlboro, MD 20774 Bankruptcy Case No.: 10-28445 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court District of Maryland (Greenbelt) Judge: Paul Mannes Debtors' Counsel: Rowena Nicole Nelson, Esq. LAW OFFICE OF ROWENA N. NELSON & ASSOC. 1801 McCormick Drive, Suite 150 Largo, MD 20774 Tel: (301) 358-3348 Fax: (877) 728-7744 E-mail: rnelson@rnnlawmd.com Scheduled Assets: $4,292,330 Scheduled Debts: $2,272,820 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/mdb10-28445.pdf SHELDRAKE LOFTS: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Sheldrake Lofts LLC 217 Forest Avenue New Rochelle, NY 10804 Bankruptcy Case No.: 10-23650 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court Southern District of New York (White Plains) Judge: Robert D. Drain Debtor's Counsel: David H. Wander, Esq. DAVIDOFF, MALITO & HUTCHER, LLP 605 Third Avenue New York, NY 10158 Tel: (212) 557-7200 Fax: (212) 286-1884 E-mail: dhw@dmlegal.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Ofer Attia, sole member of Mamaroneck Development LLC, Debtor's member. Debtor's List of 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Remediation Capital mortgage $12,000,000 Funding LLC 810 7th Ave., 28th Floor New York, NY 10019 Doriano Totis sale of real property $900,000 12265 Eagles Lending Way Boynton Beach, FL 33437 John Esposito sale of real property $900,000 300 Judit Drive Stormville, NY 12582 A. Pappajohn Company pre-construction $45,000 services Ellenoff Grossman & legal services $5,002 Schole LLP Gruppuso Plumbing Corp. plumbing services $3,006 2007 All Safe Fire Sprinklers inspection $2,754 Corp. Joel Echevarria security deposit $2,400 Suburban Carting Corp. garbage removal $2,148 services Best Oil, Inc. oil delivery in 2009 $1,895 Mirtha/Nellis security deposit $1,700 Theresa Cozart security deposit $1,786 H2O Corp. security deposit $1,500 Odilio Lopez security deposit $1,500 Town of Mamaroneck property taxes Unknown Village of Mamaroneck property taxes Unknown Westchester Water Works Unknown SPA AT SUNSET: Case Summary & 10 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: The Spa at Sunset Isles Condominium Association, Inc. c/o A & N Management, Inc. 902 Clint Moore Road, Suite 110 Boca Raton, FL 33487 Bankruptcy Case No.: 10-33758 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman, Jr. Debtor's Counsel: Bradley S. Shraiberg, Esq. 2385 NW Executive Center Drive, #300 Boca Raton, FL 33431 Tel: (561) 443-0801 Fax: (561) 998-0047 E-mail: bshraiberg@sfl-pa.com Scheduled Assets: $1,333,239 Scheduled Debts: $39,370,124 A list of the Company's 10 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flsb10-33758.pdf The petition was signed by Susan Lerner, vice president. SPX CORPORATION: Moody's Upgrades Ratings on Senior Notes to 'Ba1' ------------------------------------------------------------------ Moody's Investors Service has upgraded the senior unsecured notes ratings of SPX Corporation to Ba1 from Ba2, following the upsizing of the new senior unsecured note issue due 2017 to $600 million from $350 million. Per the company's filings, net proceeds from the offering will be used to pay down outstanding amounts under the company's senior credit facilities. The company's existing Ba1 Corporate Family Rating, Ba1 Probability of Default, and its SGL-1 rating remain unchanged. The ratings outlook remains stable. As a result of the upsizing of the company's new unsecured notes there will be less senior debt ahead of the new notes in the capital structure. As stated in Moody's press release dated August 10, 2010, "the rating on the new notes could increase to the level of the CFR if there were less senior debt above them per Moody's loss given default methodology." The last rating action on SPX Corporation was on August 10, 2010, at which time Moody's assigned a Ba2 to the company's $350 million proposed note offering and 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. SS QUALITY: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: SS Quality Fuels, LLC 2840 North 75th Avenue Phoenix, AZ 85035 Bankruptcy Case No.: 10-25372 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: George B. Nielsen Jr. Debtor's Counsel: Donald W. Powell, Esq. CARMICHAEL & POWELL, P.C. 7301 N. 16th Street, #103 Phoenix, AZ 85020 Tel: (602) 861-0777 Fax: (602) 870-0296 E-mail: d.powell@cplawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Haresh N. Mirchandani, managing member. STATION CASINOS: Fertitta Is Winning Bidder for Opco Assets ----------------------------------------------------------- Judge Gregg W. Zive of the U.S. Bankruptcy Court for the District of Nevada closed the auction, on August 9, 2010, for most of the assets of Station Casinos, Inc., and its affiliates and selected Fertitta Gaming LLC as the highest or best bidder. The Debtors and FG Opco Acquisitions, LLC, an entity 100% owned by Fertitta Gaming LLC, prior to the closing of the auction, entered into an asset purchase agreement for the Opco Assets dated as of June 7, 2010. The Asset Purchase Agreement served as the stalking horse bid in an auction of all or substantially all of the assets of the Sellers. The Asset Purchase Agreement contemplates that an affiliate of Purchaser in which German American Capital Corporation and J.P. Morgan Chase Bank, N.A., will also be equityholders will purchase substantially all of the assets and assume certain specified liabilities of the Sellers, all as described more fully in the Asset Purchase Agreement. A full-text copy of the Asset Purchase Agreement filed at the U.S. Securities and Exchange Commission is available at: http://ResearchArchives.com/t/s?6868 Judge Zive held that all other letters of intent, bids or expressions of interest for the Opco Assets are deemed rejected. The hearing to approve the Successful Bid and to authorize the Sale will be held in conjunction with the hearing to consider confirmation of the Joint Plan of Reorganization. Dr. Nave Files Status Report Prior to the closing of the Auction, Dr. James E. Nave, an independent director of Station Casinos, Inc., filed with the Court a status report regarding compliance with auction procedures and resulting bids with respect to the order establishing bidding procedures and deadlines relating to the sale process for substantially all of the assets of Station Casinos, Inc. and certain "Opco" subsidiaries. (A) Auction Progress After the Court's entry of the Bidding Procedures Order, the Opco Debtors and their advisors, including Lazard Freres & Co. LLC, conducted a comprehensive 60-day marketing process to solicit alternative proposals to the Stalking Horse Bid to produce the highest and best bid for the Opco Assets. During this period, Lazard contacted 79 potential bidders, 39 of which expressed preliminary interest in participating in the Auction process. (B) Public Notice In addition to direct marketing efforts of Lazard, on June 9 or 10, 2010, notice of the Auction and the Bidding Procedures order was published once in each of the Las Vegas Review-Journal, the Wall Street Journal and the Financial Times. (C) Confidentiality Agreements The Bidding Procedures require that any parties interested in submitting bids for all or any portion of the Opco Assets execute and deliver to Dr. Nave and the Consultation Parties a Confidentiality Agreement before being permitted to engage in any due diligence with respect to the Opco Assets. Thirty-nine parties expressed a preliminary interest in participating in the Auction and 26 parties executed and delivered Confidentiality agreements. (D) Preliminary Due Diligence Lazard developed a package of preliminary due diligence information, which included access to a "Phase 1 Data Room," which included informational materials describing the Opco Assets and various other financial and legal information that Lazard felt would allow bidders to put forth thoughtful letter of intents. The package was prepared with particular sensitivity to the concerns of SCI and other interested parties that competitive information not be shared prematurely with parties whose interest in acquiring the Opco Assets might not be genuine, while still providing sufficient information so that Potential Bidders could determine whether or not they wished to proceed with the Auction process. Parties who executed and delivered Confidentiality Agreements were provided with preliminary due diligence information. (D) Letters of Intent In addition to having to enter into a Confidentiality Agreement, in order to have access to additional comprehensive due diligence, the Bidding Procedures required that any Potential Bidder submit a preliminary written proposal letter of intent by June 30, 2010, containing (i) the identification of the specific Assets the Potential Bidders seek to acquire; (2) the purchase price range for those specific Assets; (3) any material assets and liabilities expected to be excluded; (4) the structure and financing of the proposed sale; (5) any anticipated third-party approvals necessary for completion of the Sale; and (6) the anticipated time frame and any anticipated impediments to accomplishing each aspect of consummating a Sale of the Opco Assets. Potential Bidders were also required to deliver current audited financial statements and latest unaudited financial statements demonstrating an ability to consummate a Sale of the Assets proposed to be purchased by that party. The Opco Debtors received eight LOIs by the applicable deadline. (E) Qualified Bidders The Opco Debtors, under Dr. Nave's direction and in consultation with the Consultation Parties, determined seven of the parties who submitted LOIs satisfied all the requirements necessary to be Qualified Bidders. With respect to one party, the Opco Debtors, under Dr. Nave's direction and in consultation with the Consultation Parties, based on advice from Lazard, determined that the LOI submitted did not qualify with respect to the financing of the proposed sale because it remained uncertain at the time the LOI was submitted. In that case, the Opco Debtors required the Lazard communicate to that party that its LOI did not comply with the Bidding Procedures with respect to the financing of the proposed sale. The Opco Debtors timely informed all parties that submitted LOIs if they were deemed to be Qualified Bidders. (F) Nature of Bidders Other than the Stalking Horse Bidder, only one Qualified Bidder submitted a LOI purporting to seek to purchase substantially all of the Opco Assets: Boyd Gaming Corporation. The other six Qualified Bidders submitted LOIs seeking to purchase selected assets. Because the selected Asset Bidders did not seek to purchase assets that could be combined to form a Joint bid for substantially all of the Opco Assets, both Boyd Gaming and the Stalking Horse Bidder were contacted to determine if either or both would have any interest in forming a bidding group with some or all of the Selected Asset Bidders. (G) Diligence and Data Room Qualified Bidders were given access to an electronic data room that contained 115 documents. Additionally, bidders that signed confidentiality agreements were offered the opportunity to conduct property tours and hold meetings with SCI management in order to review recent operating performance and answer detailed questions about the business. In particular, Boyd Gaming conducted multiple due diligence meetings with SCI management and the Debtors' advisors. (H) Qualified Bids The Bid Deadline with respect to all Qualified Bids passed on July 30, 2010, by which no Qualified Bidder submitted a Qualified bid for all or substantially all of the Opco Assets, leaving the Stalking Horse bid as the only Qualified Bid to seek that transaction. Boyd Gaming, which was the only other Qualified Bidder other than the Stalking Horse Bidder, formally dropped its bid for the Opco Assets on July 30. In a public statement, Keith Smith, President and Chief Executive Officer of Boyd Gaming, stated that "[o]ver the last eighteen months, we have devoted significant resources in our attempt to acquire the Opco assets of Station Casinos. Unfortunately, given bidding procedures that favor Station insiders, and our current view of the limited potential value of the operating and development assets, we have concluded this opportunity no longer makes sense for our company." Boyd Gaming also noted numerous provisions in the approved bidding process that made it difficult for qualified bidders to compete for the assets on a level playing field, including, among other things: * A put option that would force an outside buyer to acquire the currently leased land under Texas Station for $75 million, a requirement that would not apply to Station insiders; * Provisions which allow Station to transfer certain crucial assets from the OpCo assets prior to their sale, including customer lists and IT infrastructure, without adequate compensation; and, * Station's right to hire away any or all employees and executives of the OpCo assets prior to their sale, regardless of their strategic role, at Station's sole discretion. "Boyd Gaming remains committed to growth, however, we will only pursue transactions that are financially sound, fit well with our existing business, and offer attractive long-term returns for our shareholders. Clearly, this opportunity no longer meets these criteria," Mr. Smith said. The Non-Conforming Bids were not submitted in compliance with the Bidding Procedures because, among other reasons, they were not submitted by parties who submitted timely LOIs, and are not considered Qualified Bids. (I) Recommendation and Request for Approval The management of SCI, and the Consultation Parties, Dr. Nave is of the opinion that the Stalking Horse Bid is the highest and best bid for the Opco Debtors. Additionally, based on current information available to Dr. Nave and his advisors, Dr. Nave is unable to recommend further action with respect to the Non- Conforming Bids and believes that it would not be in the best interest of the Debtors to terminate the sale process or extend the deadlines set forth in the Bidding Procedures. Assuming that the Non-Conforming Bids are not improved or modified, then Dr. Nave recommends that the Court (1) accept the Stalking Horse Bid as the Successful Bid, (2) reject the Non-Conforming Bids, and (3) formally close the Auction pending the outcome of the Sale Hearing and confirmation of the Debtors' reorganization plan. D. Aronson's Declaration Daniel Aronson, managing director of Lazard Freres & Co. LLC, filed with the Court a declaration in support of the Status Report. According to Mr. Aronson, he believes that the sale and bidding process was conducted in accordance with the Bidding Procedures, that potential bidders were provided with fair and open access to all reasonable diligence materials and that the Bidding Procedures provided an open and level playing field for all potential bidders. About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. Station Casinos Inc., together with its affiliates, filed for Chapter 11 on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Milbank, Tweed, Hadley & McCloy LLP serves as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP is local counsel. Lazard Freres & Co. LLC is investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) STATION CASINOS: Fertitta, et al., Back Chapter 11 Plan ------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Fertitta Gaming LLC, Frank Fertitta, Lorenzo Fertitta, FJF Investco, LLC, LJF Investco, LLC, FCP Class B HoldCo LLC, FC Investor LLC, Thomas Barrack, Jr., and Colony Capital, LLC, disclosed that on July 23, 2010, they entered into an Amended and Restated Memorandum of Understanding, which amends and restates in its entirety that certain Memorandum of Understanding that was entered into by the parties thereto on March 23, 2010, and filed as an exhibit to the amendment to Schedule 13D of the Reporting Persons filed on May 19, 2010. Pursuant to the Amended and Restated MOU, the parties agreed, among other things, to support the approval of the joint plan of reorganization of Station Casinos, Inc., and its affiliates that are debtors and debtors-in-possession, and for Frank Fertitta and Lorenzo Fertitta, through a controlled affiliate, to grant certain equity options, warrants and certain other rights in a holding company formed to hold all of the equity interests in reorganized FCP PropCo, LLC, to an affiliate of Colony. Support Agreement In a further amended Schedule 13D filing with SEC, the Reporting Persons disclosed that on July 28, 2010, (a) German American Capital Corporation and JPMorgan Chase Bank, N.A., (b) Fertitta Gaming LLC, (c) Frank Fertitta and Lorenzo Fertitta, and (d) affiliates of Fidelity Management & Research Company, Oaktree Capital Management, L.P., and Serengeti Asset Management, LP, entered into a Support Agreement. Pursuant to the Support Agreement, the Put Parties agreed, among other things and subject to certain terms and conditions, to: (i) support confirmation of the joint plan of reorganization of Station Casinos, Inc. and its affiliates that are debtors and debtors-in-possession and the approval of the related disclosure statement; (ii) refrain from commencing or maintaining certain litigation activity against the Debtors and their affiliates, certain lenders of the Debtors and Fertitta Gaming; and (iii) negotiate in good faith a commitment agreement pursuant to which that Put Parties would agree to purchase specified amounts of equity interests contemplated to be issued in a rights offering and certain other equity issuances by a holding company formed to hold all of the equity interests in reorganized FCP PropCo, LLC. The Support Agreement incorporates by reference the terms of an attached term sheet, which the Put Parties have agreed in the Support Agreement to support. The Term Sheet, among other things, contemplates that, subject to the conditions contained therein, certain unsecured creditors of SCI will receive, through one or more newly organized entities which are to hold equity interests in Holdco, certain warrants exercisable for equity interests in Holdco and certain rights to participate in the Rights Offering. Commitment Agreement On August 5, 2010, (a) certain affiliates of Fidelity Management & Research Company, Oaktree Capital Management, L.P., and Serengeti Asset Management, LP (b) German American Capital Corporation and JPMorgan Chase Bank, N.A., (c) Fertitta Gaming LLC and (d) Frank Fertitta and Lorenzo Fertitta entered into the Put Party Commitment Agreement, pursuant to the terms of which, among other things, the Put Parties committed to purchase up to $100 million, in the aggregate, of equity interests contemplated to be issued by a holding company formed to hold all of the equity interests in reorganized FCP PropCo, LLC. The purchase commitment of the Put Parties embodied in the Commitment Agreement is subject to the satisfaction of certain conditions specified therein. On August 6, 2010, Station Casinos, Inc., and certain subsidiaries of SCI and FG Opco Acquisitions, LLC, an entity 100% owned by Fertitta Gaming, entered into an Asset Purchase Agreement, dated as of June 7, 2010. The Asset Purchase Agreement served as the stalking horse bid in an auction of all or substantially all of the assets of the Sellers and, on August 6, 2010, was declared the winning bid of the Auction Sale. Pursuant to the Asset Purchase Agreement, it is contemplated that an affiliate of Purchaser in which German American Capital Corporation and JPMorgan Chase Bank, N.A., will also be equityholders will purchase substantially all of the assets and assume certain specified liabilities of the Sellers, all as described more fully in the Asset Purchase Agreement. About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. Station Casinos Inc., together with its affiliates, filed for Chapter 11 on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Milbank, Tweed, Hadley & McCloy LLP serves as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP is local counsel. Lazard Freres & Co. LLC is investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) STATION CASINOS: Reaches Deal With Committee on Lawsuits -------------------------------------------------------- Station Casinos Inc. and its units have entered into a Court- approved settlement agreement with the Official Committee of Unsecured Creditors, contingent on confirmation of the Joint Chapter 11 Plan of Reorganization, which is set for hearings on August 27 and 30, 2010. The Settlement Agreement provides that if the Plan is confirmed by August 30, 2010, the Settlement will resolve the disputes related to the Committee's motion for entry of an order granting leave, standing, and authority to prosecute and settle causes of action on behalf of the Debtors' estates and the supplement to the Standing Motion. The Debtors and the Committee request that the briefing with respect to the Supplement to the Standing Motion be stayed pending until after August 27 and 30, 2010 confirmation hearings. If the Plan is not confirmed August 30, 2010, the Debtors and the Committee request that the Court enter an order permitting parties that filed responses to the Standing Motion to file and serve responses to the Supplement to the Standing Motion no later than September 15, 2010. About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. Station Casinos Inc., together with its affiliates, filed for Chapter 11 on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Milbank, Tweed, Hadley & McCloy LLP serves as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP is local counsel. Lazard Freres & Co. LLC is investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) STEVE WALKER, III: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Steve Campbell Walker, III 1777 N Jefferson Monticello, FL 32344 Bankruptcy Case No.: 10-40776 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Northern District of Florida (Tallahassee) Debtor's Counsel: Allen Turnage, Esq. LAW OFFICE OF ALLEN TURNAGE P.O. Box 15219 2344 Centerville Road, Suite 101 Tallahassee, FL 32317 Tel: (850) 224-3231 Fax: (850) 224-2535 E-mail: service.attyallen@embarqmail.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of creditors together with its petition. STONE*WALL FARM: Sues Fifth Third et al. to Recover Property ------------------------------------------------------------ Stonewall Farm Stallions I LLC and its debtor-affiliates filed before the U.S. Bankruptcy Court for the Eastern District of Kentucky a complaint against Fifth Third Bank, JP Morgan Chase Bank N.A., and Bluewater Sales LLC, seeking to (i) recover their property, (ii) determine the validity, priority or extent of liens in the property; (iii) obtain equitable relief; and (iv) obtain declaratory relief. According to Kentucky.com, the complaint is an attempt of the Company to block Fifth Third's effort to force the company to turn over stallion certificates. The certificate is proof of a foal's lineage. The certificate is necessary to register a foal as a Thoroughbred with The Jockey Club so the horse can be raced or bred. The report, citing papers filed with the court, says the certificates are crucial in getting stud fees paid off. The company does not want to sell foals without paying the stud fees. All of those stud fees have been pledged to Chase Bank. The company said it owes $14.85 million to Fifth Third and $7 million toy Chase Bank. Stonewall Stallion operates a thoroughbred stallion farm. STONE*WALL FARM: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Stone*Wall Farm Stallions, LLC 3204 Midway Road Versailles, KY 40383 Bankruptcy Case No.: 10-06984 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Jacksonville) Judge: Jerry A. Funk Debtor's Counsel: Eric S. Golden, Esq. BURR & FORMAN LLP 450 South Orange Avenue, Suite 200 Orlando, FL 32801 Tel: (407) 244-0888 Fax: (407) 244-0889 E-mail: egolden@burr.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-06984.pdf The petition was signed by Audrey Haisfield, manager. Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Hotcopri, LLC 10-52315 07/20/10 Malandrin, LLC 10-52316 07/20/10 NeverTell Farm Kentucky V, LLC 10-06418 07/25/10 Stone*Wall Farm Stallions I, LLC 10-52318 07/20/10 Stone*Wall Farm Stallions IV, LLC 10-06411 07/24/10 Stone*Wall Farm Stallions Racing Division I, LLC 10-52317 07/20/10 Stone*Wall Farm Stallions VII, LLC 10-52319 07/20/10 Stone*Wall Farm Stallions XI, LLC 10-06410 07/24/10 SUMMIT HOTEL: Inks Agreement And Plan of Merger With New Partner ---------------------------------------------------------------- Summit Hotel Properties LLC entered On August 5, 2010, into an Agreement and Plan of Merger with Summit Hotel OP LP, a newly- formed Delaware limited partnership. The sole general partner of the OP is Summit Hotel Properties, Inc., a newly formed Maryland corporation that will elect to be treated as a real estate investment trust, or REIT, for U.S. federal income tax purposes. Summit REIT intends to undertake an underwritten initial public offering of its common stock and will apply to list its common stock on the New York Stock Exchange. The OP will be the operating partnership of Summit REIT, in a structure utilized by many other publicly traded REITs, and will continue the Company's hotel ownership business. Each of the OP and Summit REIT are affiliates of the Company and were organized to effect the reorganization of the Company contemplated by the Merger Agreement and related transactions. Pursuant to the Merger Agreement, assuming the conditions to closing are satisfied or waived, at closing: * the Company will merge with and into the OP with the OP as the surviving entity; * the OP will be the successor to the assets and liabilities of the Company; * the current members of the Company will receive an aggregate of 9,993,992 common units of a single class of limited partnership interests in the OP; * Class A and Class A-1 members of the Company will receive accrued and unpaid priority returns on their membership interests through August 31, 2010; * accrued and unpaid returns priority returns on Class A and Class A-1 membership interests of the Company for the period of September 1, 2010 through the closing of the Merger may be paid with any available cash after satisfying working capital requirements, reserve requirements and payments to lenders in the discretion of management of the Company; and * the Company will cease to exist, the membership interests of the Company will become null and void and the former members of the Company will become limited partners of the OP. The members of the Company will receive a fixed number of OP units in the Merger based on the number of OP units allocated to each class of membership interest in the Company owned by the member and the ratio of that member's adjusted capital contribution to the class to the total adjusted capital contributions to the class. The Merger Agreement includes customary representations and warranties of the parties. Completion of the Merger is subject to satisfaction of a number of conditions, including: i) approval by the required members of the Company of (a) an amendment to the Third Amended and Restated Operating Agreement for the Company to clarify the vote required to approve a merger of the Company and (b) the Merger Agreement and ii) completion of the IPO. The Merger Agreement permits the OP to terminate the Merger Agreement if the IPO is not completed. The Company may terminate the Merger Agreement if the Merger has not been completed by September 30, 2011. The Amendment and the Merger Agreement and related transactions were approved unanimously by the full board of managers of the Company. The Merger Agreement has been included to provide investors and security holders with information regarding its terms. It is not intended to provide any other factual information about the Company or the OP. The representations, warranties and covenants contained in the Merger Agreement were made only for purposes of the Merger Agreement and as of specified dates and were made solely for the benefit of the parties to the Merger Agreement. The representations and warranties may have been made for the purpose of allocating contractual risk between the parties to the Merger Agreement instead of establishing these matters as facts, and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Investors should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the Company, the OP or any of their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations and warranties may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in the Company's public disclosures. A full-text copy of the Agreement and Plan of Merger is available for free at http://ResearchArchives.com/t/s?68e7 About Summit Hotel Summit Hotel Properties, LLC is a developer, owner and manager of hotels categorized as mid-scale without food and beverage and upscale hotels located throughout the United States. As of December 31, 2009, the Company owned 65 hotels in 19 states. The Company's revenues and earnings are derived from hotel operations of its owned hotels. An affiliate, The Summit Group, Inc., provides a number of services for its hotels, including hotel operations management, location of acquisition targets and construction sites, development of construction sites, and construction supervision. As of December 31, 2009, Summit Hotel Properties had two wholly owned limited liability companies that own hotel properties. Summit Hospitality I, LLC owns 25 of the Company's hotels. In addition, Summit Hospitality V, LLC, is a wholly owned subsidiary, which owns 13 of the Company's hotels. * * * According to the Troubled Company Reporter on April 29, 2010, Summit Hotel Properties, LLC's forbearance agreement with Fortress Credit Corp. has expired on May 3. SUN-TIMES MEDIA: PBGC Assumes 7 Pension Liabilities --------------------------------------------------- Bankruptcy Law360 reports that the Pension Benefit Guaranty Corp. has taken over seven Chicago Sun-Times pension plans that were discontinued when the bankrupt newspaper was purchased in an auction last October. Law360 the federal agency will cover benefits for 2,360 pensioners left out in the cold when David Tyree's investment group decided not to honor the plans. About Sun-Times Media Sun-Times Media Group, Inc. (Pink Sheets: SUTMQ) -- http://www.thesuntimesgroup.com/-- (Pink Sheets: SUTM) owns media properties including the Chicago Sun-Times and Suntimes.com and 58 suburban newspaper titles and corresponding Web sites. The Company and its affiliates conduct business as a single operating segment which is concentrated in the publishing, printing, and distribution of newspapers in greater Chicago, Illinois, metropolitan area and the operation of various related Web sites. The Company also has affiliates in Canada, the United Kingdom, and Burma. Sun-Times Media's balance sheet at September 30, 2008, showed total assets of $479.9 million, total liabilities of $801.7 million, resulting in a stockholders' deficit of roughly $321.8 million. The Company and its affiliates filed for Chapter 11 bankruptcy protection on March 31, 2009 (Bankr. D. Del. Case No. 09-11092). James H.M. Sprayregan, P.C., James A. Stempel, Esq., David A. Agay, Esq., and Sarah H. Seewer, Esq., at Kirkland & Ellis LLP, assist the Debtors in their restructuring efforts. Sun-Times Media's investment banker is Rothschild Inc. and its estructuring advisor is Huron Consulting Group. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The Debtors disclosed $479,000,000 in assets and $801,000,000 in debts as of November 7, 2008. SUPERCONDUCTOR TECH: Posts $3.1 Million Net Loss in Q2 2010 ----------------------------------------------------------- Superconductor Technologies Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $3.1 million on $2.4 million of revenue for the three months ended July 3, 2010, compared with a net loss of $4.1 million on $2.6 million of revenue for the three months ended June 27, 2009. The Company's balance sheet as of July 3, 2010, showed $13.1 million in total assets, $2.6 million in total liabilities, and stockholders' equity of $10.6 million. As reported in the Troubled Company Reporter on March 22, 2010, Stonefield Josephson, Inc., in Los Angeles, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant net losses since its inception and has an accumulated deficit of roughly $225.7 million and expects to incur substantial additional losses and costs. For the six months ended July 3, 2010, the Company incurred a net loss of $5.6 million and negative cash flows from operations of $4.1 million. In 2009, the Company incurred a net loss of $13.0 million and had negative cash flows from operations of $7.4 million. At July 3, 2010, the Company had $5.5 million in cash and cash equivalents. The Company's cash resources, together with its line of credit, may not be sufficient to fund its business through 2010. A full-text copy of the Quarterly Report is available for free at: http://researcharchives.com/t/s?68b7 About Superconductor Technologies Santa Barbara, Calif.-based Superconductor Technologies Inc. (Nasdaq:SCON) -- http://www.suptech.com/-- provides advanced radio frequency ("RF") wireless solutions, innovative adaptive filtering, power-efficient high temperature superconductor ("HTS") materials and cryogenics for both commercial and government applications. TERRACE POINTE: Has Until August 20 to Use Bank of America's Cash ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, in a third interim order, authorized Terrace Pointe Apartments I, LLC, and its debtor-affiliates to use the cash collateral which Bank of America, N.A., claims an interest. The Debtors may use the cash collateral until August 20, 2010, to pay operating expenses. The cash collateral consists of proceeds generated by the lease or rental of the apartment units. The Court will conduct a further interim evidentiary hearing on the Debtors' continued use of the cash collateral on August 19 at 1:30 p.m. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant BOA a replacement lien on all cash collateral acquired by the Debtor or the estate on or after the Petition Date to the same extent, validity, and priority to the security interest in cash collateral that BOA held as of the Petition Date. About Terrace Pointe Apartments I, LLC Tampa, Florida-based Terrace Pointe Apartments I, LLC, aka Terrace Pointe Apartments, filed for Chapter 11 bankruptcy protection on April 5, 2010 (Bankr. M.D. Fla. Case No. 10-07946). Amy Denton Harris, Esq., at Stichter, Riedel, Blain & Prosser, P.A., assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50 million. Terrace Pointe Apartments II, LLC, and Terrace Pointe Apartments III, LLC -- each disclosing assets and debts of up to $50 million -- and other affiliates also filed for Chapter 11. TATOU SUPPER: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Tatou Supper Club, LLC 333 S. Boylston Street Los Angeles, CA 90017 Bankruptcy Case No.: 10-43580 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Alan M. Ahart Debtor's Counsel: Roger C. Lim, Esq. LAW OFFICES OF RC LIM 16 N. Marengo Avenue, Suite 616 Pasadena, CA 91101 Tel: (626) 689-4072 Fax: (888) 846-8777 E-mail: rclim@att.net Estimated Assets: $0 to $50,000 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/cacb10-43580.pdf The petition was signed by Jeremy Fitgerald, owner and general manager. THREE SISTERS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Three Sisters Nursing Home, Inc. dba Springfield Health Care Center, Inc 6130 North Michigan Road Indianapolis, IN 46228 Bankruptcy Case No.: 10-12104 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Anthony J. Metz III Debtor's Counsel: Robert D. Cheesebourough, Esq. ROBERT D. CHEESEBOUROUGH 543 E. Market Street, Suite 1 Indianapolis, IN 46204 Tel: (317) 637-7000 Fax: (317) 638-2707 E-mail: mah@home-saver.org Scheduled Assets: $1,535,940 Scheduled Debts: $1,193,774 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/insb10-12104.pdf The petition was signed by Mamie Beamon, president. TOR MINERALS: Earns $470,000 in Second Quarter of 2010 ------------------------------------------------------ TOR Minerals International, Inc., filed its quarterly report on Form 10-Q, reporting net income of $470,000 on $7.93 million of revenue for the three months ended June 30, 2010, compared with a net loss of $8,000 on $5.65 million of revenue for the same period of 2009. HITOX sales increased 9% to $3.10 million for the three months ended June 30, 2010, as compared to the same period in 2009 primarily due to an increase in world-wide demand. ALUPREM sales increased 65% to $2.94 million during the second quarter of 2010 as compared to the same period of 2009 primarily due to an increase in sales in Europe. BARTEX sales increased 58% to $977,000. HALTEX sales increased 153% to $841,000. The Company's balance sheet at June 30, 2010, showed $34.60 million in total assets, $10.16 million in total liabilities, and a shareholders' equity of $24.44 million. As reported in the Troubled Company Reporter on March 29, 2010, UHY LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company's credit facility with a financial institution matures on August 15, 2010, at which time the credit facility will be terminated as indicated by the financial institution. As a result, the Company will be required to raise additional capital, find alternative means of financial support, or both. The Company may have difficulty in obtaining the necessary financing to repay this credit facility. The Company acknowledges in the latest 10-Q that it is working diligently to establish a corporate lending relationship with a new financial institution for the Company's US operations prior to August 15, 2010. However, there can be no assurance that the Company will be able to successfully refinance the debt due to the Bank. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?68d8 Corpus Christi, Tex.-based TOR Minerals International, Inc. (Nasdaq: TORM) -- http://www.torminerals.com/-- is a global manufacturer and marketer of specialty mineral and pigment products for high performance applications with manufacturing and regional offices located in the United States, Netherlands and Malaysia. TOWNSEDGE TELLURIDE: Case Summary & 6 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Townsedge Telluride, LLC 775 Baywood Drive, Suite 207 Petaluma, CA 94954 Bankruptcy Case No.: 10-30376 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Howard R. Tallman Debtor's Counsel: Philipp C. Theune, Esq. 1763 Franklin Street Denver, CO 80218-1124 Tel: (303) 832-1150 Fax: (303) 845-6934 E-mail: ptheune@ptr-law.com Scheduled Assets: $5,850,000 Scheduled Debts: $4,853,689 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cob10-30376.pdf The petition was signed by Paul Claeyessens, trustee of PBC Trust, manager. TOYS "R" US: Fitch Assigns 'B-/RR5' Ratings on New Term Loan ------------------------------------------------------------ Fitch Ratings has assigned 'B-/RR5' ratings to Toys 'R' Us, Inc.'s subsidiary, Toys 'R' Us - Delaware, Inc.'s new secured term loan due 2016 and new senior secured notes due 2016. The combined size of the issuance is expected to be $1 billion. Proceeds of the offerings will be used to repay the existing $798 million secured term loan and the $181 unsecured term loan. Therefore, upon repayment, Fitch's 'B-/RR5' rating on the $798 million secured term loan and 'CCC/RR6' rating on the $181 million unsecured term loan will be withdrawn. The refinancing will help extend the debt maturity profile with $162 million, $542 million and $281 million now due in 2010, 2011 and 2012, respectively. The 'B' Issuer Default Rating and issue ratings on Toys and its various subsidiary entities are currently on Rating Watch Positive following the May 2010 announcement of the company's plan to pursue an initial public offering estimated at around $800 million. A portion of the net proceeds from the IPO will be used for debt repayment, which Fitch expects will result in leverage (adjusted debt/EBITDAR) decreasing to below 5.5 times from 6.1x as of May 1, 2010. The ratings continue to reflect Toys' successful operating strategy which resulted in improved operating results and credit metrics in the last 12 months ending May 1, 2010, despite the challenging operating environment. The ratings also reflect Fitch's expectation for further strengthening of credit metrics in fiscal 2010 with positive free cash flow generation and improved liquidity. This is balanced by the intense competition in the toy retailing sector and the highly seasonal nature of Toys' business. Toys' LTM (ending May 1, 2010) revenues remained flat compared to fiscal 2008 ending Jan. 31, 2009 while the world toy market declined 4% in 2009 as estimated by The NPD Group. The increased penetration of higher margin private label products combined with strong inventory controls and cost reduction efforts related to store labor, advertising and travel led to over 100 basis points of expansion in the EBIT margin to 4.8% during the LTM period. As a result of this and debt reduction of $229 million, LTM leverage (defined as adjusted debt/EBITDAR) declined to 6.1x from 6.8x in fiscal 2008. Fitch expects Toys' adjusted debt/EBITDAR will continue to improve in fiscal 2010 based on the assumption of 2.5%-3.0% comparable store sales and a 50 bps operating EBIT margin expansion. This is expected to be achieved through the company's continued rollout of side-by-side store conversions in fiscal 2010, expansion of its internet business by integrating online and store capabilities and launching e-commerce sites in international markets, and the continued implementation of holiday pop-up stores. Also, Toys' profit margins should continue to benefit from an increase in exclusive and private label products, ongoing supply chain efficiencies such as direct sourcing and cost control efforts such as the alignment of store staffing hours with traffic into the stores. The combination of improving operating results and debt reduction from the net proceeds of the IPO is expected to decrease leverage to below 5.5x. Toys' liquidity is supported by $519 million of cash and cash equivalents as of May 1, 2010, and $1.2 billion of availability under its various revolvers. In addition, Toys generated positive free cash flow of $608 million as a result of solid working capital management in the LTM period. However, Fitch anticipates free cash flow generation will be in the range of $200 million- $300 million in the next two years, similar to historical levels, as the company reinvests in the business through increases in capital expenditures and inventory purchases. Of concern is the strong competition in the toy retailing business. Toys competes with a number of retailers, including other toy retailers, discounters, and catalog and internet businesses. During the holiday season, retailers dedicate more shelf space to the toy category and offer competitive prices to drive traffic into the stores. In addition, Toys' business is highly seasonal with more than 39% of its net sales and almost all of its earnings generated in the fourth quarter over the last three fiscal years. The ratings on the new issues reflect Fitch's recovery analysis based on the enterprise value of the company. The enterprise value of $3.5 billion is based on a distressed EBITDA of $703 million and a market multiple of 5x in a distressed scenario. Applying this value across the capital structure results in below- average recovery prospects (11%-30%) for the secured term loan and senior secured notes. Both are secured by intellectual property and second liens on accounts receivable and inventory of TOY- Delaware and the guarantors. TOYS "R" US: S&P Assigns 'BB-' Rating on Secured Term Loan ---------------------------------------------------------- Standard & Poor's Ratings Services said it assigned a 'BB-' issue rating and '1' recovery rating to specialty retailer of toys and juvenile products Toys "R" Us Inc.'s wholly owned subsidiary Toys "R" US Delaware Inc.'s proposed secured term loan and secured notes in an aggregate amount of about $1 billion. The proposed term loan and secured notes are pari passu with each other. The term loan and secured notes are secured by a first lien on substantially all assets (other than the assets securing the company's asset-based revolving credit facility) and intellectual property, as well as a second lien on the asset-based loan collateral. S&P placed the rating on the proposed secured term loan and secured notes on CreditWatch with positive implications. All other ratings on the company, including the 'B' corporate credit rating, remain on CreditWatch Positive, where they were placed on June 1, 2010, due to the planned IPO of the company's common stock. The CreditWatch placement follows Toys' S-1 filing, under which it plans to sell up to $800 million in common stock. Toys plans to use the bulk of the proceeds to repay debt. If completed, S&P expects debt reduction, along with improvement in cash flow, to result in meaningfully better credit protection measures. S&P estimate that pro forma debt leverage will improve to the mid-5x area, from 6.4x at May 1, 2010. Furthermore, S&P expects that EBITDA coverage of interest would increase to about 2.4x on a pro forma basis, from 1.8x. "Toys has achieved adequate operating performance," said Standard & Poor's credit analyst Ana Lai, "despite sales pressure due to sharp execution, merchandising, and cost-control initiatives that have helped mitigate the effects of negative sales and protected profitability." For the first quarter ended May 1, 2010, operating results were within expectations with comparable-store sales increasing 1.9% in the domestic division, while comparable-store sales declined 1.4% in the international division. EBITDA remained relatively flat as higher selling expenses offset modest gains in gross margin. "S&P plan to resolve this CreditWatch listing when the IPO is completed, with a likely outcome of a one-notch increase in the rating to 'B+' from 'B'," added Ms. Lai. In S&P's May 18, 2010 summary analysis on Toys, S&P said that S&P could raise the rating if debt leverage declines to less than 6x. Additional support for an upgrade comes from S&P's expectation that Toys' operating results will remain good because of management's success with its merchandising strategy and cost-control initiatives, as well as the positive effect of the store conversion program. S&P will also review and analyze the company's business prospects and financial policies in the future. TRAILS EDGE: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Trails Edge Telluride, LLC 775 Baywood Drive, Suite 207 Petaluma, CA 94954 Bankruptcy Case No.: 10-30378 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: A. Bruce Campbell Debtor's Counsel: Philipp C. Theune, Esq. 1763 Franklin Street Denver, CO 80218-1124 Tel: (303) 832-1150 Fax: (303) 845-6934 E-mail: ptheune@ptr-law.com Scheduled Assets: $4,000,000 Scheduled Debts: $3,010,206 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cob10-30378.pdf The petition was signed by Paul Claeyessens, trustee of PBC Trust, manager. TRAVELPORT LLC: Moody's Affirms 'B2' Corporate Family Rating ------------------------------------------------------------ Moody's has affirmed the B2 corporate family rating and probability of default rating of Travelport LLC. The Ba3 senior secured, the B3 senior unsecured and Caa1 subordinated instrument ratings have also been affirmed; the outlook remains stable. Concurrently, Moody's has assigned a provisional (P) B3 rating to Travelport's proposed senior unsecured notes due in 2016. The action follows the company's announcement that it plans to issue a new US$250 million senior unsecured private offering with a 6-year maturity which will be partly used to repay approximately US$150 million in existing secured debt. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction only. Upon a conclusive review of the final documentation, Moody's will endeavour to assign a definitive rating to the notes. A definitive rating may differ from a provisional rating. Moody's expects that this proposed transaction will have limited impact on the company's metrics. Nevertheless, the company's gross leverage ratio remains above the target that Moody's had indicated in its previous publications; Moody's expect it to trend towards 6.5x (as adjusted by Moody's and including the PIK notes). Moody's estimates that as of June 2010, this ratio was at 7.1x which positions the company weakly in its rating category. To maintain the current ratings and outlook, Moody's would expect Travelport to continue its efforts to improve its financial profile and reduce its leverage ratio towards Moody's target in the short-term. Furthermore, Moody's notes that currently there is very limited headroom under the net leverage covenant included in Travelport's senior secured credit facilities (actual 5.48x versus 6x required as of June 2010). In addition this covenant will step-down to 5.75x and to 5.5x as of September 2010 and December 2010, respectively, which is likely to further reduce the level of headroom. As such, Moody's current ratings and outlook factor in the expectation that the company will take appropriate actions to rebuild headroom to more comfortable levels and avoid any risks of a potential breach of its financial covenant within the coming quarters. As of June 2010 the company's liquidity consisted of US$167 million in cash, in addition to US$240 million of availability under its existing revolving credit facility and it is further supported by the company's 48% stake in Orbitz (rated B2 with a stable outlook). Moody's further notes that the company generated free cash flow of approximately US$140 million on a last 12 months' basis to end June 2010 and has no meaningful near-term debt maturities. The stable outlook reflects Moody's expectation that the company's metrics will improve and that it will increase its headroom under the net leverage covenant in the near term in order to enhance its financial flexibility. While Moody's continue to believe that the company's earnings remain exposed to the volatile travel sector, Moody's also note IATA's forecasts of a recovery in passenger numbers in international air travel in 2010, albeit with yields remaining at a low level. This should be beneficial for Travelport, whose earnings profile is more exposed to air passenger transaction volumes than yields. A failure to improve metrics over the short to medium term with gross leverage not trending towards 6.5x (as adjusted by Moody's and including the PIK notes) during the course of 2010, or further concerns developing over liquidity, would likely be negative for the rating or outlook. While not expected in the medium term, positive pressure could develop if the company were able to sustain leverage below 5.5x with a strong liquidity profile. These ratings/assessments are affirmed by the action with stable outlook: -- Corporate Family Rating at B2; -- Probability of Default Rating at B2; -- US$270 million revolving credit facility due 2012 at Ba3 (LGD 2, 25%); -- US$150 million synthetic letter of credit facility due 2013 at Ba3 (LGD 2, 25%); -- US$2.19 billion term loan facility due 2013 at Ba3 (LGD 2, 25%); -- US$150 million term loan C facility due 2013 at Ba3 (LGD 2, 25%); -- EUR235 million senior unsecured notes due 2014 at B3 (LGD 5, 74%); -- US$150 million floating rate senior unsecured notes due 2014 at B3 (LGD 5, 74%); -- US$450 million fixed senior unsecured notes due 2014 at B3 (LGD 5, 74%); -- US$300 million subordinated notes due 2016 at Caa1 (LGD 5, 88%); -- EUR160 million subordinated notes due 2016 at Caa1 (LGD 5, 88%). This provisional rating is assigned: -- US$250 million senior unsecured notes due 2016 at (P) B3 (LGD 5, 71%). Headquartered in New York, Travelport is a leading provider of transaction processing services to the travel industry through its two main business networks, the global distribution system business, which includes the Group's airline information technology solutions business, and the Gullivers Travel Associates business. During fiscal year ending December 2009, the company generated revenues of c.US$2.2 billion. TRAVELPORT LLC: S&P Assigns 'CCC+' Rating on $250 Mil. Notes ------------------------------------------------------------ Standard & Poor's Ratings Services said that it assigned its 'CCC+' issue rating to the proposed $250 million senior fixed-rate notes due 2016 to be issued by U.S.-based Travelport LLC (B- /Stable/--). The recovery rating on the proposed notes is '5', indicating S&P's expectation of modest (10%-30%) recovery for noteholders in the event of a payment default. S&P understands that proceeds from the issuance will be partially used to prepay about $150 million of senior secured bank debt. The 'B' issue ratings and '2' recovery ratings on Travelport's senior secured debt facilities remain unchanged, although cover on these facilities is at the low end of the range. The 'CCC' issue ratings and '6' recovery ratings on Travelport's various subordinated debt instruments are also unchanged. The issue and recovery ratings are supported by S&P's valuation of Travelport as a going concern at S&P's hypothetical point of default, which reflects its view of the company's size, global reach, and leading market positions. S&P estimates Travelport's stressed enterprise value at its simulated point of default in 2012 to be about $2.4 billion. S&P's default scenario is principally caused by an inability to refinance maturing debt due in that year. For the purposes of S&P's default scenario S&P assume that an inability to refinance the payment-in-kind (PIK) loan due in 2012 would trigger a broader restructuring, although S&P understands that a default on the PIK loan does not trigger cross-default clauses in the bank and bond documentation. Recovery prospects for the proposed notes and, more particularly, for the senior secured bank debt are sensitive to the security package provided to bank lenders, who benefit from collateral only over the U.S. operations. This constrains recovery prospects for senior secured lenders, but at the same time enhances recovery prospects for the existing and proposed senior unsecured notes that have access to the unpledged assets outside the U.S. While S&P assumes in its stressed valuation that the U.S. businesses comprise 65% of the overall stressed value of the group, recovery expectations, particularly for the senior secured debt, are sensitive to changes in this assumption. In the event that the value of the U.S. businesses in a default scenario is less as a proportion of the total stressed valuation than S&P anticipates, or that S&P's overall stressed valuation was lower, recovery prospects for the senior secured debt could fall below 70%. This could lead to the assignment of a lower recovery rating on the senior secured debt. Recovery Analysis S&P expects the proposed notes to be unsecured but to benefit from the same guarantee package made available to senior secured lenders. S&P considers Travelport's senior unsecured notes to rank contractually subordinate to the senior secured lenders in respect of the U.S. operations, but pari passu with senior secured lenders in respect of the non-U.S. businesses. To determine recoveries, S&P simulates a default scenario. S&P's default scenario principally focuses on the refinancing risks faced by the company in 2012, assuming generally weak trading, compounded by a material global travel disruption in that year. In addition, S&P assumes rising interest rates on variable rate debt. S&P estimates EBITDA at default to be about $402 million, taking into account stressed interest costs, debt repayments, and maintenance capital expenditure levels. Assuming a 6x multiple of EBITDA at default gives a gross enterprise value of $2.41 billion. From this, S&P deduct enforcement costs and 50% of the pension deficit totaling $0.26 billion. This leaves a net enterprise value of $2.15 billion available for creditors. S&P assume that the U.S. businesses account for about 65% of this amount, over which senior secured lenders totaling $2.45 billion would have priority. S&P assume that the remaining 35%, comprising the value of the non- U.S. businesses would then be available to meet the claims of senior unsecured lenders totaling $1.11 billion plus the unsatisfied portion of the original senior secured claim. After including recoveries from all sources, this leaves sufficient value for substantial (70%-90%) recovery for senior secured lenders, modest (10%-30%) recovery for senior unsecured lenders, including the proposed notes, and negligible (0%-10%) recovery for subordinated noteholders and PIK lenders. TRIBUNE CO: Bank Debt Trades at 37% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 62.50 cents-on-the- dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.45 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility, which matures on May 17, 2014. Moody's has withdrawn its rating while Standard & Poor's does not rate the bank debt. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRICO MARINE: Hires AlixPartners' John Castellano as CRO -------------------------------------------------------- Trico Marine Services, Inc., disclosed that on August 10, 2010, it retained John Castellano from Alix Partners to serve as acting Chief Restructuring Officer. The Board has previously engaged Alix Partners to advise the Company in its discussions with some of its existing debt holders regarding restructuring certain of its outstanding debt obligations. Trico Marine also disclosed that on August 6, 2010, Rishi A. Varma ceased to serve as its President and Chief Operating Officer. The Board of Directors appointed D. Michael Wallace, 58, as interim Chief Operating Officer of the Company, effective August 6. Mr. Wallace has served as the Company's Vice President, Business Development since January 1, 2010. Prior to this, he had served as the Chief Executive Officer of Eastern Marine Services Limited, the Company's joint venture with China Oilfield Services Limited through which the Company provides services in Southeast Asia, from December 2006 to January 2010. From November 2002 until December 2006, Mr. Wallace served as the Company's President, Emerging Markets and Head of Global Marketing. From January 2000 to November 2002, Mr. Wallace was Vice President of Marine Division with ASCO US LLC, a wholesale petroleum broker. From December 1996 to December 1999, Mr. Wallace was General Manager for Tidewater Marine, Inc., an offshore supply vessel company, in Venezuela. There are no arrangements or understandings between Mr. Wallace and any other person pursuant to which he was selected as interim Chief Operating Officer. About Trico Marine Woodlands, Texas-based Trico Marine Services is a provider of support vessels for the offshore oil and natural-gas industry. At March 31, 2010, the Company had total assets of $1,013,628,000 against total liabilities of $985,940,000. Trico Marine has failed to make the $8.0 million interest payment on $202.8 million in aggregate principle amount of its 8.125% secured convertible debentures due 2013. On June 17, 2010, the 30-day grace period permitted under the 8.125% Indenture expired, triggering an Event of Default. The Troubled Company Reporter on June 16, 2010, said Trico Marine has signed a revised loan agreement on June 11 requiring the company to file under Chapter 11 no later than Sept. 8. The agreement with affiliates Tennenbaum Capital Partners LLC provides for converting the existing $25 million revolving credit commitment into a $25 million term loan commitment. Nordea Bank Finland plc, New York Branch, as collateral agent, Obsidian Agency Services, Inc., as administrative agent, also signed the agreement. As reported by the TCR on June 15, 2010, Trico said that it and Evercore Partners are in discussions with various potential lenders and some of the Company's existing debtholders regarding obtaining additional financing in connection with a possible proceeding under Chapter 11 of the Bankruptcy Code. Trico emerged from a prior bankruptcy case in March 2005. Trico filed for bankruptcy on December 21, 2004 (Bankr. S.D.N.Y. Case No. 04-17985) to deleverage its balance sheet. The Company and its subsidiaries filed a "prepackaged" plan together with the chapter 11 petition. The Court confirmed the Plan on January 21, 2005. Leonard A. Budyonny, Esq., and Robert G. Burns, Esq., at Kirkland & Ellis LLP, represented the Debtors in the 2004 case. TRICO MARINE: Likely to Default on Covenants; Delays 10-Q Report ---------------------------------------------------------------- Trico Marine Services, Inc., warned in a regulatory filing that it is highly unlikely that the Company will remain in compliance in future periods with covenants requiring it to achieve financial thresholds, including both EBITDA and liquidity thresholds in its $25 million U.S. credit facility, the 11-7/8% senior secured notes issued by Trico Shipping AS and Trico Shipping's working capital facility. The Company expects that it may not be in compliance with financial covenants requiring the Company to achieve specific EBITDA targets measured over the trailing 12 months. If the Company fails to maintain compliance with these covenants under the various indentures and forbearance agreements, its creditors may take certain actions, including declaring the outstanding principal of the applicable debt to be due and payable immediately. In addition, the Company's results of operations may limit Trico Shipping's ability to access additional funds under its working capital facility. Trico Marine also informed the Securities and Exchange Commission last week it would delay the filing of its quarterly report on Form 10-Q for the period ended June 30, 2010. Trico Marine said the Company and certain of its domestic subsidiaries have been engaged in negotiations with its lenders and noteholders on the terms of a comprehensive financial restructuring, the goal of which is to substantially reduce its indebtedness and provide a long-term solution for its balance sheet. The efforts associated with these ongoing discussions have caused a delay in the ability of the Company to close its books and records, finalize its operating results and prepare its financial statements for the quarter. Trico said management is diligently working to close its books and records and prepare financial statements as soon as possible with a target of filing the Quarterly Report within the grace period prescribed by Rule 12b-25 under the Securities Exchange Act of 1934, as amended. Trico said there is no assurance that those discussions with debt holders will continue or a restructuring will be consummated. "Additionally, even if agreements regarding financial restructuring are reached within the necessary time periods, we may need to undertake bankruptcy proceedings in order to implement the debt restructurings and/or achieve other changes to our cost structure. We may also be required to undertake bankruptcy proceedings as a result of our inability to meet past, current and future commitments. Our credit and business risk profiles could be adversely affected by a bankruptcy filing, which may have a materially adverse effect on our business and results of operations," Trico said. At June 30, 2010, Trico had available cash of $32 million. This available cash reflects $22 million (net of debt repayments and associated fees) drawn from its working capital facilities during the calendar quarter ended June 30, 2010. As of June 30, 2010, all of Trico's consolidated outstanding indebtedness, in the approximate amount of $769 million, was classified as current liabilities. "Our cash and credit capacity have not been sufficient to enable us to meet our obligations, and our forecasted cash and available credit capacity are not expected to be sufficient to meet our other commitments as they come due over the next twelve months," Trico said. "In light of our results of operations, we are renegotiating with certain of our lenders the terms and conditions of our previously disclosed debtor-in-possession financing commitment. "We expect our operating results for the quarter ended June 30, 2010 compared to the quarter ended June 30, 2009 to reflect a decline in revenue and lower operating income primarily as a result of lower utilization in some areas, exiting the Gulf of Mexico region, fewer vessels due to the sale of eleven vessels primarily in the second half of 2009 and six in 2010, and the deconsolidation of Eastern Marine Services Limited as of January 1, 2010. Operating income is also expected to be lower due to a reduction in gains from the sale of assets recorded in 2010 compared to 2009. The 2010 results are also expected to include higher interest expense and foreign exchange loss related primarily to Trico Shipping's 11-7/8% senior secured notes and certain intercompany notes. Other non-operating items included reorganization costs in 2010 and refinancing costs in 2009. As indicated below, we are in the process of finalizing certain impairment analyses on tangible and intangible assets that could result in impairment charges. "At June 30, 2010, we updated our earlier impairment assessment of intangible assets performed as of December 31, 2009, due to changes in the key assumptions associated with our liquidity restraints used in our fair value calculation. We expect to recognize an impairment charge upon completion of our assessment." Trico also disclosed it is currently in a dispute with the Tebma shipyard in India regarding the construction of six vessels for Trico Subsea AS -- Hulls No. 120, 121, 128 and 129 (Four Cancelled Tebma Vessels) and Hulls No. 118 and 119 (Two Remaining Tebma Vessels. Trico Subsea AS and Tebma dispute whether the construction contracts of each of the vessels remains in effect; if not, by whom and for what reason the contracts were cancelled; and whether Trico Subsea AS has the right to call on refund guarantees issued for its benefit. The refund guarantees are issued by several Indian financial institutions in the aggregate amount of approximately $19 million with respect to the Four Cancelled Tebma Vessels, and in the aggregate amount of approximately $22 million with respect to the Two Remaining Tebma Vessels. Since July 1, 2010, (i) Trico Subsea AS has taken action to cancel the construction contracts for the Four Cancelled Tebma Vessels, and submitted draw requests to the financial institutions issuing the refund guarantees for the same vessels, in the approximate aggregate amount of $19 million, and (ii) Tebma has taken action to cancel the construction contracts for all six vessels, and initiated court proceedings in India to restrain Trico Subsea AS and the issuing financial institutions from acting in respect of the refund guarantees. "We are in discussions with Tebma to resolve these disputes. In the case of the Four Cancelled Tebma Vessels, there is no assurance that the financial institutions that issued the refund guarantees will allow Trico Subsea AS to draw on such guarantees, in part or in whole, or that the total proceeds from such guarantees would equal approximately $19 million. In the case of the Two Remaining Tebma Vessels, there is no assurance that the vessel construction contracts remain in place, or that Tebma will complete the construction of such vessels," Trico said. "Further, there is no assurance that the refund guarantees on the Two Remaining Vessels, which have expiration dates and need to be periodically renewed, will continue to be renewed and be available if called upon by Trico Subsea AS. As we continue to try to reach a resolution of these matters and/or call on the refund guarantees, we will continue to assess the approximately $84 million book value of the Two Remaining Tebma vessels, and the approximately $19 million remaining book value of the Four Cancelled vessels. In the process of completing an impairment analysis, we may determine that an impairment of the Two Remaining Tebma Vessels, and/or a further impairment with respect to the Four Cancelled Tebma Vessels is necessary." About Trico Marine Woodlands, Texas-based Trico Marine Services is a provider of support vessels for the offshore oil and natural-gas industry. At March 31, 2010, the Company had total assets of $1,013,628,000 against total liabilities of $985,940,000. Trico Marine has failed to make the $8.0 million interest payment on $202.8 million in aggregate principle amount of its 8.125% secured convertible debentures due 2013. On June 17, 2010, the 30-day grace period permitted under the 8.125% Indenture expired, triggering an Event of Default. The Troubled Company Reporter on June 16, 2010, said Trico Marine has signed a revised loan agreement on June 11 requiring the company to file under Chapter 11 no later than Sept. 8. The agreement with affiliates Tennenbaum Capital Partners LLC provides for converting the existing $25 million revolving credit commitment into a $25 million term loan commitment. Nordea Bank Finland plc, New York Branch, as collateral agent, Obsidian Agency Services, Inc., as administrative agent, also signed the agreement. As reported by the TCR on June 15, 2010, Trico said that it and Evercore Partners are in discussions with various potential lenders and some of the Company's existing debtholders regarding obtaining additional financing in connection with a possible proceeding under Chapter 11 of the Bankruptcy Code. Trico emerged from a prior bankruptcy case in March 2005. Trico filed for bankruptcy on December 21, 2004 (Bankr. S.D.N.Y. Case No. 04-17985) to deleverage its balance sheet. The Company and its subsidiaries filed a "prepackaged" plan together with the chapter 11 petition. The Court confirmed the Plan on January 21, 2005. Leonard A. Budyonny, Esq., and Robert G. Burns, Esq., at Kirkland & Ellis LLP, represented the Debtors in the 2004 case. TYCOON DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Tycoon Development Corporation 2371 Fenton Street Chula Vista, CA 91914 Bankruptcy Case No.: 10-14277 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Martin A. Eliopulos, Esq. HIGGS, FLETCHER & MACK LLP 401 West A. Street, Suite 2600 San Diego, CA 92101 Tel: (619) 236-1551 Fax: (619) 696-1410 E-mail: elio@higgslaw.com Estimated Assets: $0 to $50,000 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/casb10-14277.pdf The petition was signed by Solomon Levy, president. UAL CORP: Bank Debt Trades at 10% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which United Air Lines, Inc., is a borrower traded in the secondary market at 90.08 cents- on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.95 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 1, 2014, and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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 'B3' corporate family and probability of default ratings 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 a stockholders' deficit of $2.756 billion. UAL CORP: Extends Travelport Distribution Pact ---------------------------------------------- Travelport, the business services provider to the global travel industry, announced that United Air Lines, Inc., has signed a two- year extension of their current full content agreement that is designed to provide full content well into 2013, subject to the terms of the agreement. Through the extension of the agreement, all United published fares and seat inventory, including Web fares available on its own site, reservation offices and through third parties, will be available to subscribers of Travelport's Apollo, Galileo and Worldspan GDS systems, including all Travelport- connected offline travel agencies and online agencies booking through Travelport. As part of the agreement, United is pleased to offer Travelport- connected travel agents the option of selling their passengers upgrades into United Airlines' popular Economy Plus seating. Economy Plus seat upgrades will become available later this year through the Travelport travel agency point of sale tools, Apollo Focalpoint, Galileo Desktop and Worldspan GoRes. This capability provides multiple opportunities for agents to offer upgrades into Economy Plus to their travelers throughout the transaction flow. Travelport will also integrate these merchandising capabilities over time into the Travelport Universal Desktop, making it easier for Travelport-connected travel agents around the world to transact this premium coach seat capability within their standard workflow. United's Economy Plus seating provides more room to work or rest on a flight with up to five more inches of legroom and are located at the front of the economy cabin. "This agreement validates the tremendous value of Travelport's global marketplace of approximately 60,000 travel agencies to an important industry leader such as United and underscores our ability to bring together travel buyers and sellers across the globe in an efficient and cost-effective manner," said Travis Christ, president, The Americas, Travelport GDS. "Our Travelport- connected travel agents, corporate travelers and consumer customers will continue to have efficient access to the full content offered by United Airlines and will also have the ability to offer upgrades into Economy Plus to their customers." "This extension provides United with a cost-effective solution to distribute upgrades to Economy Plus to Travelport subscribers in a flexible, innovative and appropriate manner," said Robert McDowell, managing director, Distribution and E-Commerce, United Airlines. "United is continually looking for distribution solutions that provide benefit for United, distribution partners such as Travelport and, most importantly, our customers." About Travelport Travelport is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry. For more information, visit Travelport's Web site at www.travelport.com 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 'B3' corporate family and probability of default ratings 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 a stockholders' deficit of $2.756 billion. UAL CORP: Four D&Os Disclose Ownership of Common Stock ------------------------------------------------------ In regulatory filings with the Securities and Exchange Commission dated July 28 to August 2, 2010, Kathryn A. Mikells, Glenn F. Tilton, Graham W. Atkinson and Peter D. McDonald reported the changes in their beneficial ownership of UAL Corp. common stock. According to the filings, Ms. Mikells acquired 6,250 shares of UAL common stock at $16.59 per share on July 26, 2010. As a result of the acquisition, Ms. Mikells beneficially owns 34,732 shares of UAL common stock. These directors disposed of these shares of UAL common stock from July 28, to 30, 2010: Amt of Shares No. of Price Beneficially Shares per Owned After Director Disposed of Share Transaction -------- ----------- ------ ------------- Glenn F. Tilton 36,728 $24.05 159,180 Graham W. Atkinson 17,097 $23.85 7,613 Kathryn A. Mikells 12,189 $23.573 22,543 Peter D. McDonald 22,000 $23.78 0 The prices of Messrs. Tilton and Atkinson's disposed of shares are weighted average prices. Specifically, those shares disposed of by Mr. Tilton were sold in multiple transactions at prices ranging from $24.00 to $24.10, inclusive. Similarly, the shares sold by Mr. Atkinson were sold in multiple transactions at prices ranging from $23.7358 to $23.96, inclusive. Mr. McDonald notes that his disposed of shares were sold in multiple transactions at prices ranging from $23.74 to $23.81, inclusive. Ms. Mikells also disposed of 6,250 shares of UAL common stock known as restricted stock at $0 price per share on July 26, 2010. As a result of the disposition of shares, Ms. Mikells beneficially owns 37,500 shares of UAL common stock. Ms. Mikells' option award of 6,250 shares of UAL common stock vests in four equal annual installments on November 3, 2009, 2010, 2011 and 2012. Ms. Mikells is chief financial officer of UAL. Mr. Tilton is chairman, president and chief executive officer of UAL. Mr. Atkinson is executive vice president - president mileage plus. Mr. McDonald is executive vice president - chief administrative officer of UAL. 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 'B3' corporate family and probability of default ratings 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 a stockholders' deficit of $2.756 billion. US FOODSERVICE: Bank Debt Trades at 11% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which U.S. Foodservice, Inc., is a borrower traded in the secondary market at 89.05 cents- on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 2.05 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on July 3, 2014, and carries Moody's B2 rating while it is not rated by Standard & Poor's. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. U.S. Foodservice, Inc. -- http://www.usfoodservice.com/-- is a foodservice supplier serving some 250,000 customers from more than 70 distribution facilities. The Company supplies restaurants, hotels, school, and other foodservice operators with a wide variety of food products, including canned and dry foods, meats, frozen foods, and seafood. It also distributes kitchen equipment and cleaning supplies among other non-food supplies. U.S. Foodservice distributes both national brand products and its own private labels. Tracing its roots to 1853, the company is owned by private equity firms KKR & Co. and Clayton, Dubilier & Rice. VALLEY RIVER: Case Summary & Largest Unsecured Creditor ------------------------------------------------------- Debtor: Valley River, LLC. 354 Birchfield Road Murphy, NC 28906 Bankruptcy Case No.: 10-20188 Chapter 11 Petition Date: August 10, 2010 Court: United States Bankruptcy Court Western District of North Carolina (Bryson City) Judge: George R. Hodges Debtor's Counsel: William E. Loose, Esq. 68 North Market Street Asheville, NC 28801 Tel: (828) 255-0569 E-mail: billloose@skyrunner.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Cherokee County Property $5,225 Tax Collector 75 Peachtree Street Murphy, NC 28906 The petition was signed by Richard J. Jones, managing member. VBK SANTOSHI: Case Summary & 4 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: VBK Santoshi, LLC dba USA Inn 2905 N. 50th Street Tampa, FL 33619 Bankruptcy Case No.: 10-19343 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Stanley J. Galewski, Esq. GALEWSKI LAW GROUP PA 201 E. Kennedy Boulevard, #760 Tampa, FL 33602 Tel: (813) 222-8210 Fax: (813) 222-8211 E-mail: stan@galewski.com Scheduled Assets: $4,013,250 Scheduled Debts: $2,743,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-19343.pdf The petition was signed by Vijay Patel, owner/CEO. VENETIAN MACAU: Bank Debt Trades at 2% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Venetian Macau US Finance Co. LLC is a borrower traded in the secondary market at 98.00 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.66 percentage points from the previous week, The Journal relates. The Company pays 550 basis points above LIBOR to borrow under the facility. The bank loan matures on May 25, 2011, and carries Moody's B3 rating and Standard & Poor's B- rating. Meanwhile, participations in a syndicated loan under which Las Vegas Sands Corp. is a borrower traded in the secondary market at 92.04 cents-on-the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.77 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on May 1, 2014, and carries Moody's B3 rating and Standard & Poor's B- rating. The loans is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Venetian Macau US Finance Co., LLC (also known as VML US Finance LLC), and Venetian Macau Limited are wholly owned subsidiaries of Las Vegas Sands. Venetian Macau Limited owns the Sands Macau in the People's Republic of China Special Administrative Region of Macau and is also developing additional casino hotel resort properties in Macau. Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) -- http://www.lasvegassands.com/-- owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo and convention center. The company also owns and operates the Sands Macao, the first Las Vegas-style casino in Macao, China. Las Vegas Sands has a 'B-' corporate family rating from Standard & Poor's Ratings Services. As reported in the TCR on July 30, 2010, Standard & Poor's placed its 'B-' corporate credit rating on the Las Vegas Sands Corp. family of companies, as well as its issue- level ratings on the companies' debt, on CreditWatch with positive implications. "In addition to announcing strong performance across its portfolio of properties during the second quarter on its earning call, Las Vegas Sands also indicated that it will pursue an amend-and-extend transaction with lenders in its U.S. credit facilities," S&P pointed out. VIEW SYSTEMS: Earns $199,703 in Q2 Ended June 30 ------------------------------------------------ View Systems, Inc., filed its quarterly report on Form 10-Q, reporting net income of $199,703 on $214,956 of revenue for the three months ended June 30, 2010, compared with a net loss of $412,650 on $63,690 of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $1.3 million in total assets, $1.8 million in total liabilities, and a stockholders' deficit of $465,325. As reported in the Troubled Company Reporter on April 6, 2010, Larry O'Donnell, CPA, P.C., expressed substantial doubt about the Company's ability to continue as a going concern. Mr. O'Donnell noted that of the Company's net loss for 2009 and accumulated deficit of $22.3 million at December 31, 2009. The Company has incurred, and continues to incur, losses from operations. For the periods ended June 30, 2010, and December 31, 2009, the Company incurred net losses of $258,602 and $1.6 million, respectively. In addition, certain notes payable have come due and the note holders are demanding payment. A full-text copy of the Quarterly Report is available for free at: http://researcharchives.com/t/s?68b8 Baltimore, Md.-based View Systems, Inc., develops, produces and markets computer software and hardware systems for security and surveillance applications. VILLAGE AT CAMP: Court Extends Filing of Schedules Until Aug. 26 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas extended, at the behest of Village at Camp Bowie I, L.P., the deadline for the filing of schedules of assets and liabilities, schedules of current income and expenditures, statement of financial affairs, and schedules of executor contracts and unexpired leases until August 26, 2010. The Debtor said that in order to prepare the schedules and statements, it must gather information from books, records, and documents, although the books, records, and documents principally are located at the Debtor's corporate headquarters the Debtor's workforce has been greatly reduced and the remaining employees have been performing numerous tasks. Collection of the information necessary to complete the schedules and statements will require an expenditure of substantial time and effort on the part of the Debtor's management. Dallas, Texas-based Village at Camp Bowie I, L.P., filed for Chapter 11 bankruptcy protection on August 2, 2010 (Bankr. N.D. Tex. Case No. 10-45097). John Mark Chevallier, Esq., at McGuire, Craddock & Strother, P.C., assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million. VILLAGE AT CAMP: Section 341(a) Meeting Scheduled for Sept. 3 ------------------------------------------------------------- The U.S. Trustee for Region 6 will convene a meeting of Village at Camp Bowie I, L.P.'s creditors on September 3, 2010, at 1:30 p.m. The meeting will be held at Fritz G. Lanham Federal Building, 819 Taylor Street, Room 7A24, Ft. Worth, TX 76102. 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. Dallas, Texas-based Village at Camp Bowie I, L.P., filed for Chapter 11 bankruptcy protection on August 2, 2010 (Bankr. N.D. Tex. Case No. 10-45097). John Mark Chevallier, Esq., at McGuire, Craddock & Strother, P.C., assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million. VILLAGEEDOCS INC: Voluntarily Deregisters Common Stock ------------------------------------------------------ VillageEDOCS Inc. has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock. As of August 10, 2010, shareholders owning in excess of 56% of our shares of common stock have approved a 1-for-10,000 reverse split of our common stock, followed by a 10,000 for 1 forward split, such that shareholders owning less than one whole share following the reverse split will receive cash in lieu of fractional interests in the amount equal to $0.015 per share for each pre- split share that becomes a fractional interest. The Certificates of Amendment to our Certificate of Incorporation were filed with the Delaware Secretary of State on August 10, 2010. As a result, shareholders owning fewer than 10,000 shares of our common stock on a pre-split basis at the close of business on the record date will no longer be shareholders of the Company. The Company is eligible to deregister because it has fewer than 300 holders of record of its common stock as of the date of the Form 15 as a result of the stock split transaction. In filing the Form 15, the Company's obligations to file certain reports and forms with the SEC, including Forms 10-K, 10-Q and 8-K, are immediately suspended. The Company expects that deregistration of its common stock will become effective within 90 days. The Company is deregistering because it believes that the incremental cost of compliance with the Sarbanes-Oxley Act of 2002 and other public company reporting requirements does not provide a discernable benefit to the Company and is not in the best interests of its shareholders. Factors influencing the Company's decision include: * The high accounting, legal and administrative costs of preparing and filing periodic reports and other filings with the SEC in comparison to the size of the Company. * The need for senior management of the Company to devote more time to the business of the Company. * The need to maintain the confidentiality of sensitive business information that would otherwise require SEC disclosure. * The already limited trading in the Company's common stock. * The fact that current trading prices of the common stock make it unlikely that the Company could effectively use its common stock to compensate employees, raise capital or make acquisitions. As a result of deregistering with the SEC, the Company's common stock will cease to be eligible to trade on the Over-the-Counter Bulletin Board. The Company's securities will continue to be traded over the counter on the Pink Sheets, but the Company can make no assurance that any broker will continue to make a market in the Company's common stock. About VillageEDOCS Santa Ana, Calif.-based VillageEDOCS, Inc. is a global outsource provider of business process solutions that simplify, facilitate and enhance critical business processes. The Company's balance sheet as of March 31, 2010, showed $8,541,436 in assets, $2,612,142 of liabilities, and a $5,929,294 stockholders' equity. KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that the Company has incurred recurring losses from operations. WARREN STANSBERRY: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Warren Stansberry 3799 Chrystal Waters Lane Grand Rapids, MI 49525 Bankruptcy Case No.: 10-09830 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Western District of Michigan (Grand Rapids) Judge: Scott W. Dales Debtor's Counsel: Kenneth A. Nathan, Esq. NATHAN ZOUSMER PC 29100 Northwestern Highway, Suite 260 Southfield, MI 48034 Tel: (248) 351-0059 Fax: (248) 351-0487 E-mail: knathan@nathanzousmer.com Estimated Assets: $500,001 to $1,000,000 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/miwb10-09830.pdf WEST CORP: 2013 Bank Debt Trades at 5% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which West Corporation is a borrower traded in the secondary market at 95.38 cents-on- the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.52 percentage points from the previous week, The Journal relates. The Company pays 237.5 basis points above LIBOR to borrow under the facility. The bank loan matures on May 11, 2013, and carries Moody's B1 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. West Corporation had total assets of $3,008,762,000, total liabilities of $4,068,914,000, Class L Common Stock of $1,413,958,000, and stockholders' deficit of $2,474,110,000 as of June 30, 2010. West Corp. carries a 'B2' corporate rating from Moody's and 'B+' corporate rating from Standard & Poor's. WEST CORP: 2016 Bank Debt Trades at 2% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which West Corporation is a borrower traded in the secondary market at 97.77 cents-on- the-dollar during the week ended Friday, Aug. 13, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.88 percentage points from the previous week, The Journal relates. The Company pays 387 basis points above LIBOR to borrow under the facility, which matures on July 1, 2016. The bank debt carries Moody's B1 rating while it is not rated by Standard & Poor's. The loan is one of the biggest gainers and losers among 198 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. West Corporation had total assets of $3,008,762,000, total liabilities of $4,068,914,000, Class L Common Stock of $1,413,958,000, and stockholders' deficit of $2,474,110,000 as of June 30, 2010. West Corp. carries a 'B2' corporate rating from Moody's and 'B+' corporate rating from Standard & Poor's. WINDHAM INVESTMENTS: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Windham Investments, Inc. 7105 Windham Parkway Prospect, KY 40059 Bankruptcy Case No.: 10-34252 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court Western District of Kentucky (Louisville) Debtor's Counsel: Peter M. Gannott, Esq. ALBER CRAFTON, P.S.C. Hurstbourne Place, Suite 1300 9300 Shelbyville Road Louisville, KY 40222 Tel: 815-5000 Fax: 815-5005 E-mail: pgannott@albercrafton.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Jeffery Owen, vice president. WISE METALS: Posts $2.3 Million Net Loss for June 30 Quarter ------------------------------------------------------------ Wise Metals Group reported results for the quarter ended June 30, 2010, showing a net loss of $2.30 million for the three months ended June 30, 2010, compared with a net loss of $2.10 million during the same period a year earlier. The Company's balance sheet at June 30, 2010, revealed $534.25 million in total assets, $658.57 million in total current liabilities, $171.04 million in total non-current liabilities, and $392.27 million in total members' deficit. Consolidated sales for the second quarter of 2010 were $311.4 million compared to second quarter 2009 sales of $161.6 million, an increase of $149.8 million, or 93%. Wise Alloys sales for the second quarter of 2010 were $274.5 million compared to second quarter 2009 sales of $146.7 million, an increase of $127.8 million, or 87%. Wise Recycling sales increased 155% over the same time period to $35.0 million in the second quarter of 2010 from $13.7 million in the second quarter 2009. Consolidated sales for the first half of 2010 were $616.4 million compared to first half of 2009 sales of $319.4 million, a difference of $297.0 million, or 93%. Wise Alloys sales for the first half of 2010 were $549.0 million compared to first half of 2009 sales of $294.8 million, a difference of $254.2 million, or 86%. Wise Recycling sales for the first half of 2010 were $64.1 million compared to first half of 2009 sales of $22.3 million, a difference of $41.8 million, or 187%. Adjusted EBITDA for the second quarter of 2010 was $18.8 million compared to an Adjusted EBITDA loss of $3.5 million for the second quarter of 2009, an increase of $22.3 million. Contributing to the improvement over second quarter of 2009 was a combination of substantially improved volumes and conversion pricing. Adjusted EBITDA for the six months ended June 30, 2010 was $25.8 million compared to an Adjusted EBITDA loss of $7.0 million for the six months ended June 30, 2009, an increase of $32.8 million. Contributing to the improvement over first half of 2009 was a combination of substantially improved volumes and conversion pricing. A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?68e0 Based in Baltimore, Md., Wise Metals Group LLC includes Wise Alloys, the world's third-leading producer of aluminum can stock for the beverage and food industries; Wise Recycling, one of the largest, direct-from-the-public collectors of aluminum beverage containers in the United States; Listerhill Total Maintenance Center, specializing in providing maintenance, repairs and fabrication to manufacturing and industrial plants worldwide; Alabama Electric Motor Service specializing in electric motor and pump service, repair and replacement; and Alabama Spares And Parts providing on-site spare part inventory management and procurement services. WOODBRIDGE APARTMENTS: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Woodbridge Apartments of Phoenix, LLC 6635 North 19th Avenue Phoenix, AZ 85015 Bankruptcy Case No.: 10-25305 Chapter 11 Petition Date: August 11, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum, Sr. Debtor's Counsel: Richard William Hundley, Esq. BERENS, KOZUB & KLOBERDANZ, PLC 7047 E. Greenway Parkway, #140 Scottsdale, AZ 85254 Tel: (480) 624-2777 Fax: (480) 607-2215 E-mail: rhundley@bkl-az.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Pedro Miqueo, managing member, WP Owners, LLC, owner of debtor. WOODS OF NORTHLAND: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Woods of Northland, LLC 2811 Eagles Nest Drive Palm Harbor, FL 34683 Bankruptcy Case No.: 10-19387 Chapter 11 Petition Date: August 12, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Joel S. Treuhaft, Esq. 2997 Alternate 19, Suite B Palm Harbor, FL 34683 Tel: (727) 797-7799 Fax: (727) 213-6933 E-mail: jstreuhaft@yahoo.com Estimated Assets: $0 to $50,000 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/flmb10-19387.pdf The petition was signed by Marc Johnson, managing member. Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Audubon Grove Apartments, LLC 10-09414 04/22/10 Montevallo Apartments, LLC 10-04857 03/03/10 Quail Ridge Apts., LP 10-02375 02/02/10 XM SATELLITE: Earns $35.68 Million in Q2 Ended June 30 ------------------------------------------------------ XM Satellite Radio Inc. filed its quarterly report on Form 10-Q, reporting net income of $35.68 million on $370.35 million of revenue for the three months ended June 30, 2010, compared with a net loss of $191.80 million on $306.83 million of revenue for the same period of 2009. For the three months ended June 30, 2010, and 2009, subscriber revenue was $312.89 million and $291.86 million, respectively, an increase of 7%, or $21.03 million. The increase was primarily attributable to the 3% increase in daily weighted average subscribers, an increase in the sale of "Best of" programming, rate increases on multi-subscription and internet packages and a $11.21 million decrease in the impact of purchase price accounting adjustments attributable to deferred subscriber revenues. The Company's balance sheet as of June 30, 2010, showed $4.008 billion in total assets, $4.591 billion in total liabilities, and a stockholders' deficit of $582.83 million. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?68db Washington, D.C.-based XM Satellite Radio, Inc. broadcasts its music, sports, news, talk, entertainment, traffic and weather channels in the United States for a subscription fee through its proprietary satellite radio system. The Company's system consists of four in-orbit satellites, over 650 terrestrial repeaters that receive and retransmit signals, satellite uplink facilities and studios. Subscribers can also receive certain of the Company's music and other channels over the Internet. XM Satellite Radio, Inc. is a direct wholly owned subsidiary of Sirius XM Radio Inc. * * * As reported in the Troubled Company Reporter on June 29, 2010, Moody's Investors Service said that the Caa1 rating on XM Satellite Radio Inc.'s proposed senior secured notes is not affected by the increase in the size of the offering to $526 million from $350 million. * 258 Car Dealerships Closed Doors in First Half 2010 ----------------------------------------------------- Dow Jones' DBR Small Cap reports that the consolidation of new-car dealerships in the U.S. continued in the first half of the year, although there are signs the trend is easing. The dealership count fell to 18,223 after 258 showrooms shut their doors between Jan. 1 and July 1, according to Detroit-based Urban Science. The consulting firm tracks foreign and domestic dealerships and considers locations closed when they stop selling new vehicles. According to the report, the decrease comes after a record 1,603 dealerships closed last year in the aftermath of the General Motors Co. and Chrysler Group LLC bankruptcies. "We're not through it all yet, however, the worst of the resizing is behind us," said John Frith, vice president of retail channel solutions for Urban Science. "The winddown of the economy has also bottomed out." Manufacturers and their dealerships -- especially GM, Chrysler and Ford Motor Co. --a re finding an underlying stability since they have lowered their costs, said Randy Berlin, Urban Science's global practice director. * Tribal Casinos Struggling with Debt Amid Downturn --------------------------------------------------- Dow Jones' DBR Small Cap reports that a growing number of tribal casinos are struggling with their debt amid a downturn in the U.S. economy, but fixing their financial woes won't be easy, restructuring experts say. A myriad of federal and tribal laws complicate debt negotiations between Native American tribes that operate casinos on tribal land and their creditors, and there's uncertainty as to whether they can take advantage of some of the restructuring options available to their commercial counterparts, including bankruptcy. "Everyone is trying to navigate these very turbulent waters," Dow Jones quotes Kevin C. Quigley, an attorney with St. Paul, Minn., law firm Hamilton Quigley & Twait PLC, as saying. Quigley specializes in tribal-gaming law. * BOND PRICING -- For the Week From August 9 to 13, 2010 -------------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- 155 E TROPICANA 8.750% 4/1/2012 5.506 ABITIBI-CONS FIN 7.875% 8/1/2009 10.750 ADVANTA CAP TR 8.990% 12/17/2026 13.125 AHERN RENTALS 9.250% 8/15/2013 36.000 AMBAC INC 9.375% 8/1/2011 48.950 AMER GENL FIN 4.750% 8/15/2010 99.250 AMER GENL FIN 7.850% 8/15/2010 99.500 AT HOME CORP 0.525% 12/28/2018 0.504 BANK NEW ENGLAND 8.750% 4/1/1999 12.750 BANK NEW ENGLAND 9.875% 9/15/1999 10.000 BANKUNITED FINL 6.370% 5/17/2012 5.250 BLOCKBUSTER INC 9.000% 9/1/2012 4.000 BOWATER INC 6.500% 6/15/2013 27.000 BOWATER INC 9.500% 10/15/2012 30.000 CAPMARK FINL GRP 5.875% 5/10/2012 31.500 CELL THERAPEUTIC 7.500% 4/30/2011 80.600 CHENIERE ENERGY 2.250% 8/1/2012 47.000 EDDIE BAUER HLDG 5.250% 4/1/2014 5.000 EVERGREEN SOLAR 4.000% 7/15/2013 36.000 FAIRPOINT COMMUN 13.125% 4/2/2018 8.813 FORD MOTOR CRED 6.250% 8/20/2010 99.800 FORD MOTOR CRED 6.500% 8/20/2010 99.000 GASCO ENERGY INC 5.500% 10/5/2011 59.750 GENERAL MOTORS 7.125% 7/15/2013 33.130 GENERAL MOTORS 9.450% 11/1/2011 30.000 GREAT ATLA & PAC 5.125% 6/15/2011 72.875 GREAT ATLA & PAC 6.750% 12/15/2012 52.500 HAWAIIAN TELCOM 9.750% 5/1/2013 1.875 INN OF THE MOUNT 12.000% 11/15/2010 49.000 INTL LEASE FIN 4.300% 8/15/2010 99.500 INTL LEASE FIN 4.700% 8/15/2010 99.500 INTL LEASE FIN 7.450% 8/15/2010 99.688 KEYSTONE AUTO OP 9.750% 11/1/2013 38.500 LEHMAN BROS HLDG 0.250% 2/16/2012 18.500 LEHMAN BROS HLDG 4.500% 8/3/2011 18.760 LEHMAN BROS HLDG 4.700% 3/6/2013 19.750 LEHMAN BROS HLDG 4.800% 2/27/2013 19.600 LEHMAN BROS HLDG 4.800% 3/13/2014 20.750 LEHMAN BROS HLDG 5.000% 1/14/2011 21.500 LEHMAN BROS HLDG 5.000% 1/22/2013 18.550 LEHMAN BROS HLDG 5.000% 2/11/2013 18.950 LEHMAN BROS HLDG 5.000% 3/27/2013 18.950 LEHMAN BROS HLDG 5.000% 8/3/2014 19.500 LEHMAN BROS HLDG 5.000% 8/5/2015 19.600 LEHMAN BROS HLDG 5.100% 1/28/2013 18.760 LEHMAN BROS HLDG 5.150% 2/4/2015 18.760 LEHMAN BROS HLDG 5.250% 2/6/2012 21.500 LEHMAN BROS HLDG 5.250% 1/30/2014 18.950 LEHMAN BROS HLDG 5.250% 2/11/2015 17.875 LEHMAN BROS HLDG 5.350% 2/25/2018 18.500 LEHMAN BROS HLDG 5.500% 4/4/2016 22.020 LEHMAN BROS HLDG 5.600% 1/22/2018 15.500 LEHMAN BROS HLDG 5.625% 1/24/2013 21.000 LEHMAN BROS HLDG 5.700% 1/28/2018 19.600 LEHMAN BROS HLDG 5.750% 4/25/2011 21.000 LEHMAN BROS HLDG 5.750% 7/18/2011 19.800 LEHMAN BROS HLDG 5.750% 5/17/2013 20.750 LEHMAN BROS HLDG 6.000% 7/19/2012 20.375 LEHMAN BROS HLDG 6.000% 6/26/2015 16.600 LEHMAN BROS HLDG 6.000% 12/18/2015 19.375 LEHMAN BROS HLDG 6.000% 2/12/2018 18.250 LEHMAN BROS HLDG 6.200% 9/26/2014 22.020 LEHMAN BROS HLDG 6.625% 1/18/2012 20.550 LEHMAN BROS HLDG 6.850% 8/23/2032 17.521 LEHMAN BROS HLDG 6.875% 5/2/2018 21.938 LEHMAN BROS HLDG 7.000% 4/16/2019 18.950 LEHMAN BROS HLDG 7.100% 3/25/2038 17.900 LEHMAN BROS HLDG 7.500% 5/11/2038 0.010 LEHMAN BROS HLDG 7.875% 11/1/2009 20.550 LEHMAN BROS HLDG 8.000% 3/5/2022 19.375 LEHMAN BROS HLDG 8.000% 3/17/2023 19.500 LEHMAN BROS HLDG 8.050% 1/15/2019 18.000 LEHMAN BROS HLDG 8.500% 8/1/2015 18.950 LEHMAN BROS HLDG 8.500% 6/15/2022 18.550 LEHMAN BROS HLDG 8.750% 12/21/2021 18.500 LEHMAN BROS HLDG 8.800% 3/1/2015 20.375 LEHMAN BROS HLDG 8.920% 2/16/2017 18.625 LEHMAN BROS HLDG 9.000% 3/7/2023 19.000 LEHMAN BROS HLDG 9.500% 12/28/2022 18.950 LEHMAN BROS HLDG 9.500% 1/30/2023 19.375 LEHMAN BROS HLDG 9.500% 2/27/2023 18.950 LEHMAN BROS HLDG 10.000% 3/13/2023 18.950 LEHMAN BROS HLDG 10.375% 5/24/2024 19.000 LEHMAN BROS HLDG 11.000% 6/22/2022 17.760 LEHMAN BROS HLDG 11.000% 3/17/2028 18.500 LEHMAN BROS HLDG 11.500% 9/26/2022 18.750 LEHMAN BROS HLDG 18.000% 7/14/2023 18.735 MAGNA ENTERTAINM 7.250% 12/15/2009 9.000 MAGNA ENTERTAINM 8.550% 6/15/2010 17.000 MARSHALL &ILSLEY 4.000% 8/16/2010 99.010 MERRILL LYNCH 3.030% 3/9/2011 100.000 MFCCN-CALL09/10 5.200% 9/15/2030 97.202 NEWPAGE CORP 10.000% 5/1/2012 42.500 NEWPAGE CORP 12.000% 5/1/2013 21.667 NORTH ATL TRADNG 9.250% 3/1/2012 56.000 PALM HARBOR 3.250% 5/15/2024 69.876 RASER TECH INC 8.000% 4/1/2013 36.688 RESTAURANT CO 10.000% 10/1/2013 31.000 RESTAURANT CO 10.000% 10/1/2013 30.100 SPHERIS INC 11.000% 12/15/2012 24.750 STATION CASINOS 6.000% 4/1/2012 0.780 STATION CASINOS 7.750% 8/15/2016 6.000 STX-CALL08/10 2.375% 8/15/2012 98.000 THORNBURG MTG 8.000% 5/15/2013 4.030 TIMES MIRROR CO 7.250% 3/1/2013 34.700 TOUSA INC 7.500% 1/15/2015 0.500 TOUSA INC 10.375% 7/1/2012 2.500 TRICO MARINE 3.000% 1/15/2027 5.250 TRICO MARINE SER 8.125% 2/1/2013 23.100 VIRGIN RIVER CAS 9.000% 1/15/2012 45.500 WASH MUT BANK FA 5.125% 1/15/2015 0.300 WASH MUT BANK FA 5.650% 8/15/2014 0.200 WASH MUT BANK NV 6.750% 5/20/2036 0.650 WCI COMMUNITIES 9.125% 5/1/2012 2.250 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***