/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100826.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 26, 2010, Vol. 14, No. 236 Headlines 4 BK CORP: Case Summary & 6 Largest Unsecured Creditors 400 SUNRISE: Voluntary Chapter 11 Case Summary A DIAMOND KEY: Case Summary & 16 Largest Unsecured Creditors AAA INVESTMENT: Case Summary & 6 Largest Unsecured Creditors ABITIBIBOWATER INC: To Get C$130MM Settlement Payment from Canada ACTRADE FINANCIAL: Can't Block Insurer's Demand for a Jury Trial ACUFF EQUIPMENT: Montgomery Ct. Did Not Violate Automatic Stay AMELIA ISLAND: Omni Hotels Wins Auction With $67.1-Mil. Bid AMERICAN INT'L: Fed Said to Have Plans to Cut Credit Line AMERICAN INT'L: Won't Entertain Other Offers for Nan Shan Stake AMERICAN INT'L: Enlists 5 More Banks for AIA IPO AMERICAN MORTGAGE: Sets Limits on Third Party Releases AMERICAN SAFETY: Second-Lien Lenders Want to Propose Own Plan ANTHONY O'NEILL: Case Summary & 12 Largest Unsecured Creditors ARIZONA HEART: Balks at U.S. Trustee's Bid for Bankruptcy Notice ASCENDIA BRANDS: Court Extends DIP Loan Expiration Until Dec. 31 ASHRAY CORP: Voluntary Chapter 11 Case Summary ATLAS PIPELINE: Moody's Reviews 'B3' Corporate Family Rating B D OPERATIONS: Case Summary & 11 Largest Unsecured Creditors BANKUNITED FINANCIAL: Has Plan Exclusivity Until November 22 BIOLASE TECHNOLOGY: Shareholders' Equity Fails Nasdaq Requirement BLOCKBUSTER INC: Says it May Be Required to File for Chapter 11 BLOOMINGTON MOTOR: Case Summary & 20 Largest Unsecured Creditors BLYN II: Case Summary & 13 Largest Unsecured Creditors BOSTON GENERATING: Asks for Court's Nod to Use Cash Collateral BOSTON GENERATING: Taps Perella Weinberg as Financial Advisor BOSTON GENERATING: Proposes Constellation-Led Auction on Oct. 29 BROADWAY 401: Restructuring Plan Consummated; Court Closes Case BROWN PUBLISHING: In Talks to Sell Assets to 2nd Highest Bidder CAVE LAKES: Taps Neil J. Beller as Bankruptcy Counsel CENTRAL METAL: Plan Confirmation Hearing Scheduled for October 28 CLAIRE'S STORES: To Report $334MM in Sales for July 31 Quarter CLEMENT CARINALLI: Plan Confirmation Hearing Set for October 1 CLIFFORD DUMAS: Case Summary & 7 Largest Unsecured Creditors COMPLIANCE SYSTEMS: Posts $580,000 Net Loss in June 30 Quarter CONSOLIDATED CONTAINER: S&P Raises Corporate Credit Rating to 'B' CORNERSTONE PARTNERS: Case Summary & 14 Largest Unsec. Creditors CROSSTOWN STOR-N-MORE: Case Summary & Creditors List CRUCIBLE MATERIALS: Judge Confirms Liquidating Plan CUSTOM CABLE: Seeks to Conduct Auction of Assets DALE STICKNEY: Case Summary & 20 Largest Unsecured Creditors DARIUS ENTERPRISES: Case Summary & 5 Largest Unsecured Creditors DEAN FOODS: Fitch Assigns Issuer Default Rating at 'B+' DREIER LLP: Trustee Seeks to Recoup $16MM From Patriot Group DONALD POWERS: Case Summary & 20 Largest Unsecured Creditors DREIER LLP: Hearing on Dreier Ex-Wife's $7MM Claim Set Sept. 14 E*TRADE FINANCIAL: Discloses 3-Year Loss-Per-Share Calculations ECLIPSE AVIATION: Undelivered Aircraft Spat a Core Proceeding EMAK WORLDWIDE: Gets Court Approval of Several "First Day" Motions FAIRVUE CLUB: Plan Confirmation Hearing Scheduled for October 6 FILI ENTERPRISES: Taps Brownstein Hyatt as General Bankr. Counsel FIRST BANCORP: Reveals Relevant Price & Exchange Ratios for Offer FIRST CHESTER: Earns $169,000 in Q2 Ended June 30 ECLIPSE AVIATION: Undelivered Aircraft Spat a Core Proceeding FLEETWOOD ENTERPRISES: Emerges from Chapter 11 Bankruptcy FORUM HEALTH: PBGC to Take Over Pension Benefit Plans GENTA INC: Audit Committee Taps EisnerAmper LLP as Accountant GLOBAL BRASS: S&P Assigns 'B' Corporate Credit Rating GLORIA FONTANILLA: Case Summary & 9 Largest Unsecured Creditors GREAT ATLANTIC & PACIFIC: Erivan Karl Haub Reports Equity Stake GREENBRIER COS: Fidelity, FMR Report 4.879% of Common Stock GENERAL GROWTH: Court Sets October 21 Plan Confirmation Hearing GENERAL GROWTH: Proposes to Engage in Corporate Structure Deals GENERAL GROWTH: Wins Nod to Issue Anchor Transactions Indemnities GENERAL MOTORS: Asbestos Rep. Appointment Effective Nov. 13, 2009 GENERAL MOTORS: Committee Wins Order for Asbestos Information GENERAL MOTORS: New GM Files Prospectus on Initial Public Offering GENERAL MOTORS: Old GM Proposes 3rd Amendment to APS Engagement GEORGE W PARK: Court Accepts Blackstreet's $12.8-Mil. Offer GROVE STREET: Can Use Secured Creditors' Cash Until August 31 GULFSTREAM CRANE: Plan Exclusivity Extended Until November 5 HAMBONE DOG: Taps Nigle B. Barrow as Bankruptcy Counsel HARRY MACKLOWE: Boston Properties to Acquire 510 Madison Avenue HAWAII BIOTECH: Assets Sold to Merck Unit for $3.1 Million HOTELS UNION: Confirmation Hearing on Friday; LNR Balks at Plan HUDSON'S FURNITURE: Court Amends Final OK on Cash Collateral Use INERGY LP: Moody's Upgrades Corporate Family Rating to 'Ba2' INNERGEX RENEWABLE: S&P Assigns 'BB' Rating on Preferred Shares INOVA TECHNOLOGY: Posts $7-Mil. Net Loss in Fiscal 2010 INTERNATIONAL LEASE: Fitch Puts 'BB' Rating on $500MM Sr. Notes ISOLA USA: Moody's Assigns Corporate Family Rating at 'B3' ISOLA USA: S&P Assigns 'B' Corporate Credit Rating J.A.G. CARWASH: Case Summary & 2 Largest Unsecured Creditors JAIME GONZALEZ: Wants to Hire Eason & Tambornini as Bankr. Counsel JAMES PINNELL: Case Summary & 20 Largest Unsecured Creditors JOHN COLBERT: Taps Paul Feldman to Sell Baker's Keyboard JOHN D. OIL: Posts $403,900 Net Loss in June 30 Quarter JOSEPH HUSMAN: Case Summary & 6 Largest Unsecured Creditors KENNETH ANDERSON: Case Summary & 19 Largest Unsecured Creditors KOPAC INTERNATIONAL: Case Summary & 20 Largest Unsecured Creditors L&H TRUCKING: Planing to Sell Trucking Business LA TOYA JACKSON: Creditors' Trust Will Terminate on March 31 LEHMAN BROTHERS: SIPA Trustee Files Interim Investigation Report LESLIE CONTROLS: Asbestos Claimants' Ballots Due by Sept. 27 LIBBEY INC: BofA, Merrill Lynch Continue to Pare Stake LIONS GATE: June 30 Balance Sheet Upside Down by $1,580,000 MACC PRIVATE: Reports $603,100 Net Income in Q3 Ended June 30 MANJUSHREE MISRA: Case Summary & 6 Largest Unsecured Creditors MASH INTERNATIONAL: Case Summary & 2 Largest Unsecured Creditors MASONITE INC: S&P Affirms 'BB-' Long-Term Corporate Credit Rating MEDICAL STAFFING: Court Clears Lenders to Buy Assets MEHDI AFSHAR: Case Summary & 20 Largest Unsecured Creditors MESA AIR: Assumes Airport St. Louis Operating Agreement MEZABAY INTERNATIONAL: Raises Going Concern Doubt MICHAEL RIVERA: Case Summary & 20 Largest Unsecured Creditors MICROGY HOLDINGS: Defends Ch. 7 Filing as Bank Seeks Dismissal MIDWEST BANC: Case Summary & 20 Largest Unsecured Creditors NEC HOLDINGS: Wins Approval for Sale to Gores Affiliates NETWURKS INC: CEO's Statement Didn't Create Administrative Claim OLD COLONIES: Voluntary Chapter 11 Case Summary ORIENTAL TRADING: Files for Ch. 11 with Pre-Arranged Plan PATRICK HACKETT: Has Until Sept. 8 to Revise Disclosure Statement PETTERS WORLDWIDE: Petters to Plead Guild for Fraud & Conspiracy PHYTOMEDICAL TECH: Posts $154,700 Net Loss in June 30 Quarter POINT BLANK: Fighting Against Bids for Ch. 11 Trustee, Examiner PROCONN, LLC: Case Summary & 20 Largest Unsecured Creditors PROFESSIONAL VETERINARY: Case Summary & Creditors List PROFESSIONAL VETERINARY: Pursuing Sec. 363 Sale of All Assets PROJECT PLAYLIST: Universal Disputes Bid to Use Cash Collateral PULTEGROUP INC: Fitch Affirms 'BB+' Issuer Default Rating QIMONDA RICHMOND: Court Rejects Google's Conversion Argument QUANTUM CORPORATION: Eight Elected to Board of Directors RAME PROPERTIES: Case Summary & 16 Largest Unsecured Creditors RAYMOND WHYTE: Case Summary & 20 Largest Unsecured Creditors RADIO ONE: S&P Downgrades Corporate Credit Rating to 'SD' REUNION INDUSTRIES: C. Bradley and J. Poole Retire as Directors RITE AID: Completes Refinancing of $1.175 Bil. Credit Facility ROCKWOOD INSURANCE: Creditors Have Until Sept. 24 to File Claims ROPER INDUSTRIES: Moody's Affirms 'Ba1' Senior Subordinate Rating ROSALIND NELSON: Case Summary & 20 Largest Unsecured Creditors ROUGE STEEL: PBGC Wins Suit to End Pension Plans RUSSEL CLARK: Case Summary & 3 Largest Unsecured Creditors SAINT VINCENTS: Has Deals to Sell Three Properties SCO GROUP: Wins Court OK to Sell Software Business SECUREALERT INC: Inks GPS Monitoring Contract in Brazil SENIOR HOUSING: S&P Raises Corporate Credit Rating From 'BB+' SIGMA INDUSTRIES: Announces Management Cease Trade Order SINCLAIR BROADCAST: Amends & Refinance Portion of Credit Facility SOFTLAYER TECHNOLOGIES: S&P Withdraws 'B' Corporate Credit Rating SOUTH COAST: Case Summary & 20 Largest Unsecured Creditors SPHERIS INC: MedQuist, CBay Settle $21 Million Claim STATION CASINOS: Asks for Nod of Plan Settlement With Committee STATION CASINOS: Presents Settlement With Shareholders STATION CASINOS: Proposes Global Settlement With Lender Group STATION CASINOS: To Present Plan for Confirmation on Friday STEPHEN WEBER: Case Summary & 20 Largest Unsecured Creditors SUSAN SOSNOW: Voluntary Chapter 11 Case Summary S.W. BACH: Has Interest in Customer Accounts Transferred to AGI TAGISH LAKE: Posts Notice of Change to Directors' Circular TANGLEWOOD FARMS: Case Summary & 20 Largest Unsecured Creditors THANG NGUYEN: Case Summary & 20 Largest Unsecured Creditors TIB FINANCIAL: Posts $14.09 Million Net Loss in June 30 Quarter TRANS-LUX CORPORATION: Posts $2.6 Million Net Loss in Q2 2010 TRICO MARINE: Files Chapter 11 Petition in Delaware UNISYS CORP: S&P Raises Corporate Credit Rating to 'B+' UNIVERSAL BUILDING: Court Okays K&L Gates as Bankruptcy Counsel UNIVERSAL BUILDING: Gets Court OK to Hire Saul Ewing as Co-Counsel VICTORY MEMORIAL: Medical Malpractice Claim Filed Too Late VYTERIS INC: Audit Committee Taps EisenAmper LLP as Accountant WORKSTREAM INC: Four Individuals Elected Directors * Canada Bankruptcies Rose 4.3% in June From May * Commercial-Property Owners Default on Debts, Surrender Bldgs * Morgan Joseph Says Fund Uses Move Away From Paying Off Creditors * Properly Valuing Assets May Bankrupt Some Banks, Says Economist * Two-Year Limit Means Two-Year Anniversary, Says Appeals Court * Neal Gerber Partner Named to Ch. 7 Trustees Panel * Steven Rofsky to Head Cain Brothers' Restructuring Practice * J. Lisac Joins Dresner Partners to Lead Restructuring Practice * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ******** 4 BK CORP: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------- Debtor: 4 BK Corp. 684 North Summit Way Alpine, UT 84004 Bankruptcy Case No.: 10-31278 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: R. Kimball Mosier Debtor's Counsel: Michael L. Labertew, Esq. LABERTEW & ASSOCIATES, LLC 50 W Broadway, Suite 1000 Salt Lake City, UT 84101 Tel: (801) 424-3555 Fax: (801) 365-7314 E-mail: michael@labertewlaw.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/utb10-31278.pdf The petition was signed by Lloyd McEwan, president. 400 SUNRISE: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: 400 Sunrise Partners, LLC 5420 Douglas Blvd. #F Granite Bay, CA 95746 Bankruptcy Case No.: 10-41878 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Eastern District of California (Sacramento) Judge: Michael S. McManus Debtor's Counsel: Illyssa I. Fogel, Esq. LAW OFFICE OF ILLYSSA I. FOGEL 25 N. US Highway 95 S McDermitt, NV 89421 Tel: (775) 532-8088 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Jason C. Morehouse, managing member. A DIAMOND KEY: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: A Diamond Key Master Planned Community, LLC P.O. Box 1830 Lake Havasu City, AZ 86405 Bankruptcy Case No.: 10-26180 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court District of Arizona (Yuma) Judge: Randolph J. Haines Debtor's Counsel: James M. McGuire, Esq. MCGUIRE GARNER, PLLC 320 N. Leroux, Suite A Flagstaff, AZ 86001 Tel: (928) 779-1173 Fax: (928) 779-1175 E-mail: jmcguire@mcguiregardner.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-26180.pdf The petition was signed by Jerome P. Schmitz, managing member. AAA INVESTMENT: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: AAA Investment Company, LLC 1370 W. Highway 89A, #17 Sedona, AZ 86336 Bankruptcy Case No.: 10-26111 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum PCT Sr. Debtor's Counsel: Brian N. Spector, Esq. JENNINGS STROUSS & SALMON, PLC One E. Washington St., #1900 Phoenix, AZ 85004-2554 Tel: (602) 262-5977 Fax: (602) 495-2654 E-mail: bspector@jsslaw.com Scheduled Assets: $860,271 Scheduled Debts: $1,167,583 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-26111.pdf The petition was signed by John D. Miller, member of John D. Miller Real Estate Inv, LLC, Debtor's sole member. ABITIBIBOWATER INC: To Get C$130MM Settlement Payment from Canada ----------------------------------------------------------------- AbitibiBowater Inc. reached a formal settlement agreement with the Government of Canada with regards to its assets and rights in Newfoundland and Labrador, Canada, expropriated by the provincial government under Bill 75 in December 2008. Canada will pay AbitibiBowater C$130 million, representing not more than the fair market value of those rights and assets, following the Company's emergence from creditor protection. As part of the settlement, AbitibiBowater will waive its legal actions and claims against the Government of Canada under the North American Free Trade Agreement. "We believe this is an acceptable settlement for our Company, stakeholders and creditors, given the set of circumstances faced by the Company at this particular time as well as the inherent uncertainty of any judicial process," stated David J. Paterson, President and Chief Executive Officer. "We are now able to move forward and focus on finalizing our restructuring process and plans to emerge from creditor protection in the fall 2010." "AbitibiBowater would like to thank the Government of Canada for its efforts to reach this settlement and avoid a protracted and expensive NAFTA case. We look forward to continuing our strong working relationships with Canada and contributing to the country's economic, social and sustainable development," concluded Mr. Paterson. The settlement is conditional upon AbitibiBowater obtaining the approval of its terms by the Superior Court of Quebec in the CCAA proceedings and by the U.S. court in the chapter 11 bankruptcy proceedings as well as court approvals in the U.S. and Canada of AbitibiBowater's restructuring plans. Following emergence, the settlement payment will be paid to the new Canadian entity. About AbitibiBowater Inc. AbitibiBowater (OTC: ABWTQ) produces newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. The Company also recycles old newspapers and magazines. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. U.S. Bankruptcy Judge Kevin Carey handles the Chapter 11 cases of AbitibiBowater Inc. and its U.S. affiliates and the Chapter 15 case of ACI, et al. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ACTRADE FINANCIAL: Can't Block Insurer's Demand for a Jury Trial ---------------------------------------------------------------- A bankruptcy judge has rejected a bid by Actrade Financial Technologies Ltd.'s liquidation trust to block a group of insurers from demanding a jury trial in a dispute over $14 million in bond payments, Bankruptcy Law360 reports. According to Law360, Greenwich Insurance Co., XL Reinsurance America Inc. and Great American Insurance Co. did not lose their right to a trial when they asserted counterclaims of subrogation and affirmative defenses. About Actrade Financial Actrade Financial Technologies Ltd., through its subsidiaries, provided payment technology solutions that automate financial processes and enhance business-to-business commerce relationships. It filed for Chapter 11 on December 12, 2002 (Bankr. S.D.N.Y. Case No. 02-16212). It obtained confirmation of its plan of liquidation on January 7, 2004. ACUFF EQUIPMENT: Montgomery Ct. Did Not Violate Automatic Stay -------------------------------------------------------------- In Fifth Third Bank, v. L&A Investments, et al., Appellate No. 23601 (Ohio App. Ct., Montgomery County, August 13, 2010), L&A Investments, Acuff Equipment Company, Inc., Larry Acuff, and David Liddic appeal from the Montgomery County Common Pleas Court's May 29, 2009 entry of a default judgment and decree of foreclosure. The appellants advance three assignments of error. First, they contend the trial court lacked jurisdiction to enter a default judgment and decree of foreclosure because a notice of appeal had been filed three days earlier. Second, they claim the trial court erred in sustaining a Civ.R. 60(B) motion for relief from the judgment presently on appeal. Third, they assert that the trial court erred in modifying an automatic stay issued as the result of one of the party's filing a petition in bankruptcy court. The Appellate Court disagreed, holding, among others, that the trial court correctly concluded that the bankruptcy stay applied only to Acuff Equipment Company. In making this determination, the trial court did not modify or extend the automatic stay in violation of the bankruptcy court's exclusive jurisdiction. The dispute stems from a complaint Fifth Third Bank filed in February 2009, naming L&A Investments et al. as defendants along with the Montgomery County treasurer. It was based on alleged defaults on promissory notes executed by L&A Investments and Acuff Equipment Company. The complaint alleged that Acuff Equipment Company, Larry Acuff, and David Liddic had guaranteed the note executed by L&A Investments. The complaint further alleged that L&A Investments, Larry Acuff, and David Liddic had guaranteed two notes executed by Acuff Equipment Company. The complaint also sought judgment on a security agreement executed by Acuff Equipment Company and foreclosure on a mortgage executed by L&A Investments. Acuff Equipment Company filed a March 6, 2009 notice of bankruptcy stay in trial court. The notice advised the trial court and the parties that Acuff Equipment Company had filed a bankruptcy petition in federal court. Fifth Third Bank filed a March 10, 2009 motion to modify the notice of bankruptcy stay. It argued that the automatic stay applied only to Acuff Equipment Company and not to the other defendants. A copy of the decision is available at: http://www.leagle.com/unsecure/page.htm?shortname=inohco20100813389 Fifth Third Bank is represented in the case by: Patricia L. Hill, Esq. Robert D. Ross, Esq. Darlene E. Fierle, Esq. STATMAN HARRIS & EYRICH, LLC Fifth Third Center 1 South Main Street Suite 900 Dayton, Ohio 45402 Telephone: 937-222-1090 Facsimile: 937-222-1046 E-mail: plhill@statmanharris.com dfierle@statmanharris.com rross@statmanharris.com L&A Investments, et al. and David Liddie are represented by: A. Mark Segreti, JR., Esq. 1405 Streamside Drive Dayton, Ohio 45459 Telephone: 937-439-0386 - and -- Anne M. Frayne, Esq. MYERS & FRAYNE CO., LPA 18 West First Street, Suite 200 Dayton, Ohio 45402 Telephone: 937-224-0077 E-mail: annefrayne@myersandfrayne.com The state of Ohio is represented by: George C. Patricoff, Esq. 301 West Third Street, 5th Floor Dayton, Ohio 45402 AMELIA ISLAND: Omni Hotels Wins Auction With $67.1-Mil. Bid ----------------------------------------------------------- Omni Hotels & Resorts won an auction for the Amelia Island Plantation, in Florida. Omni is buying the resort for $67.1 million, which is contingent on the Amelia Island Company's Chapter 11 bankruptcy reorganization plan obtaining approval at another court hearing on Aug. 26. As reported by the Troubled Company Reporter on August 2, 2010, the Florida Times-Union said two more investors have filed offers to acquire the assets of Amelia Island Co. Bidders were given until July 29, 2010, to submit their initial offers. Noble Investment Group, the stalking horse bidder, was under contract to start the August 23 auction with a $45.9 million bid. Omni Hotels & Resorts expects to take over full ownership and operation of the luxury resort sometime this fall. The brand plans to expand the resort development with approximately 125 additional guest rooms and suites as well as a new 16,000 square foot ballroom to accommodate additional meetings and events. "We are exceptionally pleased to add this extraordinary resort to the Omni portfolio given its great beauty, gracious accommodations and broad range of amenities," said Mike Deitemeyer, president of Omni Hotels & Resorts. "We believe that the property extends our luxury resort collection and exemplifies our commitment to deliver memorable experiences to our guests." About Amelia Island Amelia Island Company ran and owned the Amelia Island Plantation, a 1,350-acre resort on Amelia Island in Florida. The resort has 249 rooms and three golf courses. The property owes $28.4 million on a first mortgage held by an affiliate of Prudential Retirement Insurance & Annuity Co. The collateral is said by the resort to be worth $46 million. Amelia Island filed for Chapter 11 on Nov. 13, 2009 (Bankr. M.D. Fla. Case No. 09-09601). The petition estimated assets and debt both exceeding $50 million. AMERICAN INT'L: Fed Said to Have Plans to Cut Credit Line --------------------------------------------------------- The Federal Reserve plans to cut American International Group Inc.'s credit line by about $3.6 billion in a sign of confidence the insurer can reduce reliance on taxpayer funds, Carla Main at Bloomberg News reported, citing a person with knowledge of the proposal. The Bloomberg report relates that under terms of AIG's 2008 rescue, paying down the line was supposed to lower the amount of credit available. The Fed gave an exemption in 2009 on $3.6 billion in proceeds from asset sales and has decided this year that the relief may no longer be necessary, said the person, who declined to be identified because the plan isn't public. AIG had $13.3 billion in credit remaining on the line as of June 30. About AIG American International Group, Inc. -- http://www.aig.com/-- is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage- backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG has been working to protect and enhance the value of its key businesses, execute an orderly asset disposition plan, and position itself for the future. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. AMERICAN INT'L: Won't Entertain Other Offers for Nan Shan Stake --------------------------------------------------------------- Aries Poon at Dow Jones Newswires reports that American International Group Inc. said Tuesday that it is committed to selling its stake in Nan Shan Life Insurance Co., its Taiwanese life-insurance unit, to a consortium set up by China Strategic Holdings Ltd. and Primus Financial Holdings Ltd., and it won't entertain any other offers. According to Dow Jones, AIG explicitly said for the first time that it "has no intention of selling its stake to any other party, and for example, will not entertain an offer from Chinatrust." Dow Jones relates Chinatrust Financial Holding Co., the parent company of Taiwan's largest credit-card issuer, restated this month its interest in buying AIG's stake in Nan Shan Life. AIG said it is confident the deal with the China Strategic consortium will be approved by Taiwan's regulator. According to Dow Jones, Taiwan's Financial Supervisory Commission and Chinatrust declined to comment. China Strategic wasn't immediately available for comment. Dow Jones relates China Strategic and Primus agreed in October 2010 to buy Nan Shan Life from AIG for $2.15 billion, but the deal has been hindered by concerns in Taiwan that China Strategic is backed by Chinese funds and has no experience in operating an insurance company. Dow Jones says China Strategic has denied links to China, and AIG has said it received "legally binding representations" from the consortium that no Chinese money is being used to fund the deal. The consortium and AIG recently extended the deal's deadline to Oct. 12. About AIG American International Group, Inc. -- http://www.aig.com/-- is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage- backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG has been working to protect and enhance the value of its key businesses, execute an orderly asset disposition plan, and position itself for the future. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. AMERICAN INT'L: Enlists 5 More Banks for AIA IPO ------------------------------------------------ The Wall Street Journal's Alison Tudor reports that American International Group Inc. has enlisted five more banks to handle its listing of pan-Asian life-insurer AIA Group Ltd. this fall, people familiar with the matter said Wednesday. Sources told the Journal that AIG has added Bank of America Corp.'s Bank of America Merrill Lynch unit, Credit Suisse Group and UBS AG as well as Chinese banks CCB International (Holdings) Ltd. and ICBC International Holdings Ltd. as bookrunners on the deal. The report notes Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc. and Deutsche Bank AG were appointed as global coordinators in July 2010. According to the Journal, all nine banks were previously involved in plans for an AIA initial public offering, which was abandoned when Prudential plc made its $35.5 billion move to acquire the unit in March. Prudential's bid ultimately collapsed, prompting AIG to revive its IPO plan for AIA. The report says AIG has opted to adhere rigidly to its listing timetable, partly to instill a sense of certainty in the minds of AIA staff and stem defections. According to the Journal, with its roster of bankers now completed, AIG must decide the size of the IPO and its structure in the coming weeks if it is to keep to its rigorous timetable for the Hong Kong listing. AIG has also has to name a new chief financial officer for AIA after the previous person quit in the midst of a bid from Prudential this spring. The report also relates people familiar with the matter said AIG has already turned down offers from a consortium of Chinese pre- IPO investors because it couldn't be certain the bidders had secure financing or regulatory approval-and it couldn't wait to find out. The report also relates AIG's advisers have already talked to sovereign-wealth funds-including China Investment Corp., Singapore's Temasek Holdings Pte. Ltd., the Government of Singapore Investment Corp., the Kuwait Investment Authority and the Abu Dhabi Investment Authority-about investing in AIA. They also have spoken with several Hong Kong-based tycoons about acquiring a piece of AIA, the people said. About AIG American International Group, Inc. -- http://www.aig.com/-- is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage- backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG has been working to protect and enhance the value of its key businesses, execute an orderly asset disposition plan, and position itself for the future. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. AMERICAN MORTGAGE: Sets Limits on Third Party Releases ------------------------------------------------------ Bill Rochelle, columnist at Bloomberg News, says that American Mortgage Acceptance Co. has a Chapter 11 plan under which creditors and shareholders won't be precluded from suing the Company's officers, directors, employees and advisers for violations of state or federal securities laws. Creditors will be barred from filing other types of lawsuits. If the plan is confirmed, American Mortgage won't be able to sue the officers, directors, employees and advisers. Shareholders wouldn't be able to file derivative suits in which they sue on behalf of the company. Mr. Rochelle adds that the Plan reduces the extent of American Mortgage's indemnification of its directors and officers. After the Plan is confirmed, the directors and officers will be indemnified only to the extent that there was a pre-bankruptcy law or agreement that called for indemnification. The surviving indemnification obligations will represent unsecured claims against American Mortgage that won't be wiped out by the Plan. The Plan, according to Mr. Rochelle, does give protection from claims to those who participate in the plan negotiation and confirmation process, as long as there was no gross negligence or willful misconduct. Creditors have until Sept. 23 to vote on the plan. Under the Plan, the Debtor will transfer bonds and $100,000 to unsecured creditor Taberna Preferred Funding I, Ltd., in satisfaction of its claims. The existing stock will be cancelled, and the Reorganized Debtor will issue new common stock to unsecured creditor C3 Initial Assets LLC in satisfaction of C3's claims. Other unsecured creditors, as well as administrative claimants and secured creditors, will be paid in full. Holders of equity interests won't receive any distributions. About American Mortgage American Mortgage Acceptance Co. is a New York-based real estate investment trust. It filed for Chapter 11 protection on April 26, 2010 (Bankr. S.D.N.Y. Case No. 10-12196). Carol A. Felicetta, Esq., at Reid and Riege, P.C., and Sherri D. Lydell, Esq., and Teresa Sadutto-Carley, Esq., at Platzer, Swergold, Karlin, Levine Goldberg & Jaslow, LLP, assist the Company in its restructuring effort. The Company scheduled assets totaling $6,366,680 and debts totaling $119,968,443 as of the Petition Date. AMERICAN SAFETY: Second-Lien Lenders Want to Propose Own Plan ------------------------------------------------------------- Santosh Nadgir at Reuters reports that junior lenders of American Safety Razor Co. want to propose their own restructuring cure for the bankrupt company in place of the current plan proposed by management. BlackRock Kelso Capital Corp and GSO/Blackstone Debt Funds Management LLC, who together hold about $49.2 million of American Safety Razor's second-lien debt, asked a bankruptcy court to allow an alternative plan. The Debtor's current restructuring proposal involves selling off the company to its first-lien lenders, led by UBS AG, for an undisclosed amount. The second- lien lenders are represented by Robert Stark of Brown Rudnick. About American Safety American Safety Razor Company, LLC, doing business as Personna American Safety Razor, is a maker of private-label shaving razors and blades. Its products are sold through mass merchandisers, drug stores and supermarkets under retailer names as well as under ASR's brands (including Magnum, X5, Matrix3, Mystique, and Personna). In addition to shaving products, ASR manufactures and distributes blades and bladed hand tools for a variety of industrial uses and specialty industrial and medical blades. The Company has roots going back to 1875. American Safety, along with affiliates, filed for Chapter 11 protection in July 2010 (Bankr. D. Del. Case No. 10-12351). Mark J. Thompson, Esq., and Morris J. Massel, Esq., at Simpson Thacher & Bartlett LLP, serve as bankruptcy attorneys. Howard A. Cohen, Esq., at Drinker Biddle & Reath LLP, is co-counsel. In addition, Lazard Middle Market LLC is the investment banker and Kurtzman Carson Consultants LLC is the claims and notice agent. American Safety estimated assets at $100 million to $500 million and debts at $500 million to $1 billion in its Chapter 11 petition. ANTHONY O'NEILL: Case Summary & 12 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Anthony T. O'Neill Patricia M. O'Neill 405 West Evans Boulevard Brigantine, NJ 08203 Bankruptcy Case No.: 10-35520 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court District of New Jersey (Camden) Judge: Judith H. Wizmur Debtor's Counsel: Moshe Rothenberg, Esq. LAW OFFICE OF MOSHE ROTHENBERG 718 East Landis Avenue Vineland, NJ 08360 Tel: (856) 236-4374 Fax: (856) 691-4122 E-mail: mosherothenberg@hotmail.com Scheduled Assets: $851,475 Scheduled Debts: $1,526,361 A list of the Joint Debtors' 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-35520.pdf ARIZONA HEART: Balks at U.S. Trustee's Bid for Bankruptcy Notice ---------------------------------------------------------------- Dow Jones DBR Small Cap reports that Arizona Heart Institute Ltd. is objecting to a demand by the United States Trustee that the Debtor provide patients notice of its bankruptcy case. Arizona Heart warned in court papers Tuesday that the U.S. trustee's notice request will "needlessly frighten" the patients, "resulting in further economic loss and jeopardizing the sale" of the company's assets. According to Dow Jones, the U.S. Bankruptcy Court in Phoenix is scheduled to consider the U.S. trustee's notice request at a hearing on Monday. Arizona Heart filed for bankruptcy protection on July 30 after falling behind on payments to a number of creditors because of a decline in medical reimbursement from Medicare and insurers. Since then, the company has asked the bankruptcy court for permission to auction off its assets. As reported in the Troubled Company Reporter on August 20, the Debtor endorsed a pending deal with Vanguard Health's subsidiary, Hospital Development Number 1, Inc., to acquire both Arizona Heart Hospital and Arizona Heart Institute for $6.1 million. Ilene J. Lashinsky, the U.S. Trustee for Region 14, objected to the sale procedures, explaining that, among other things: 1. the break-up fee is not warranted; 2. the location of the sale, scheduled for September 21, must not be held in private at the office of Debtor's bankruptcy counsel; and 3. the Debtor cannot impose unlimited restriction on a competing bidder's ability to conduct due diligence. The Bankruptcy Court is slated to consider the U.S. Trustee's sale objection at a 2:30 p.m. hearing today. 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. The Debtor disclosed $16,925,342 in assets and $8,115,541 in debts as of the Petition Date. ASCENDIA BRANDS: Court Extends DIP Loan Expiration Until Dec. 31 ---------------------------------------------------------------- Ascendia Brands, Inc., and its units obtained approval to continue accessing financing facility syndicated by Wells Fargo Foothill, Inc., until December 31, 2010. According to the Court's 13th order allowing access to the DIP financing, the Debtors will use the money pursuant to the budget, a copy of which is available for free at http://bankrupt.com/misc/ASCENDIA_BRANDS_budget1.pdf As reported by the TCR on March 25, 2010, the Debtors' ability to borrow under the DIP facility was originally set to expire on March 31, 2010. According to the TCR in September 2008, Judge Shannon authorized the Debtors to obtain, on a final basis, up to $26,428,000 in postpetition financing, pursuant to a DIP loan agreement dated August 5, 2008. A full-text copy of the Debtors' DIP loan agreement dated Aug. 5, 2008, is available for free at http://ResearchArchives.com/t/s?3083 About Ascendia Brands Headquartered in Hamilton, New Jersey, Ascendia Brands, Inc. -- http://www.ascendiabrands.com/-- was, prior to the sale of substantially all of its assets during bankruptcy, a manufacturer and seller of branded and private labeled health and beauty care products in North America, including Baby Magic, Binaca, Mr. Bubble, Calgon, Ogilvie, the healing garden, Lander and Lander Essentials. Remaining assets consist almost entirely of accounts receivable. The Company and six of its affiliates filed for Chapter 11 protection on August 5, 2008 (Bankr. D. Del. Lead Case No. 08-11787). Kenneth H. Eckstein, Esq., and Robert T. Schmidt, Esq., at Kramer Levin Naftalis & Frankel LLP, represent the Debtors in their restructuring efforts. M. Blake Cleary, Esq., Edward J. Kosmoswki, Esq., and Patrick A. Jackson, Esq., at Young, Conaway, Stargatt & Taylor, LLP, serve as the Debtors' Delaware counsel. Epiq Bankruptcy Solutions LLC is the notice, claims and balloting agent to the Debtors. At July 5, 2008, Ascendia Brands, Inc., had $194,800,000 in total assets and $279,000,000 in total debts. ASHRAY CORP: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Ashray Corp. dba Ojaswi Restaurant dba Canterbury Inn 1900 Canterbury Rd Sacramento, CA 95815 Bankruptcy Case No.: 10-41932 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Eastern District of California (Sacramento) Judge: Robert S. Bardwil Debtor's Counsel: Mohammad M. Mokarram, Esq. LAW OFFICE OF MO MOKARRAM 1395 Garden Hwy #150 Sacramento, CA 95833 Tel: (916) 284-9850 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Samjhana Shrestha, president. ATLAS PIPELINE: Moody's Reviews 'B3' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service placed Atlas Pipeline Partners, L.P.'s B3 Corporate Family Rating under review for possible upgrade following the announcement of its agreement to sell the Elk City Gathering and Processing System to Enbridge Energy Partners, L.P., for $682 million. The review will also cover Atlas' B1 senior secured debt rating and its Caa2 senior unsecured note rating. "Using the sales proceeds from the sale of the Elk City System to reduce debt will address Moody's primary credit concerns for Atlas including high leverage, limited liquidity, and a lack of visibility into Atlas' plans to fund the anticipated capital calls from the Laurel Mountain joint venture in Appalachia," said Stuart Miller, Vice President. "Although the sale will have a material impact on Atlas' revenues, Moody's expect the savings in interest expense, G&A expense, and maintenance capital expenditures to result in a comparable level of cash flow." In addition, much of Atlas' "keep whole" contract risk will be eliminated with the sale of the Elk City System resulting in a less volatile earnings stream. The closing of the Elk City System sale is expected to occur before the end of October 2010 at which time the final rating level will be determined. The rating review will take into account the amended terms of the company's senior secured credit facility and the projected cash flow coverage of capital expenditures and distributions, as well as the underlying operating performance of Atlas' remaining asset base. The last rating action on Atlas was on May 5, 2009, at which time the company's Corporate Family Rating and Probability of Default Rating were downgraded to B3 from B1, its Secured Bank Facility Rating and Secured Term Loan Rating was downgraded to B1 from Ba2, and its unsecured rating was downgraded to Caa2 from B3. The rating outlook was negative. Atlas Pipeline Partners, L.P., is a publicly traded master limited partnership engaged primarily in the gathering, processing, and transportation segments of the midstream natural gas industry. Atlas is headquartered in Philadelphia, PA. Moody's Investors Service adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from reliable sources; however, Moody's Investors Service does not and cannot in every instance independently verify, audit or validate information received in the rating process. B D OPERATIONS: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: B D Operations, LLC 3522 Grand Avenue Phoenix, AZ 85019 Bankruptcy Case No.: 10-26320 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Stanford E. Lerch, Esq. LERCH & DEPRIMA PLC 4000 N Scottsdale Road, Suite 107 Scottsdale, AZ 85251 Tel: (480) 212-0700 Fax: (480) 212-0705 E-mail: slerch@ldlawaz.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-26320.pdf The petition was signed by Stuart Char, managing member. BANKUNITED FINANCIAL: Has Plan Exclusivity Until November 22 ------------------------------------------------------------ Bill Rochelle, columnist at Bloomberg News, reports that the U.S. Bankruptcy Court granted BankUnited Financial Corp. a last allowable extension of the exclusive period to propose and solicit acceptances of a Chapter 11 plan. It plans filing period now expires November 22. BankUnited said that the ability to offset future earnings against its net operating losses will be built into a "structured transaction" underpinning a Chapter 11 plan. Mr. Rochelle relates that although BankUnited listed only $21 million in assets, its largest asset may be a $3.6 billion net operating loss (NOL) carryforward. The Internal Revenue Service hasn't said whether it will adjust the so-called NOL. BankUnited also said that several lawsuits remain to be resolved. About BankUnited Financial BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) -- http://www.bankunited.com/-- was the holding company for BankUnited FSB, the largest banking institution headquartered in Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed by regulators and the Federal Deposit Insurance Corporation facilitated a sale of the bank to a management team headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank, and a group of investors led by W.L. Ross & Co. BankUnited, FSB, had assets of $12.8 billion and deposits of $8.6 billion as of May 2, 2009. The Company and its affiliates filed for Chapter 11 on May 22, 2009 (Bankr. S.D. Fla. Lead Case No. 09-19940). Stephen P. Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen LLP; Mark D. Bloom, Esq., and Scott M. Grossman, Esq., at Greenberg Traurig, LLP; and Michael C. Sontag, at Camner, Lipsitz, P.A., represent the Debtors as counsel. Corali Lopez-Castro, Esq., David Samole, Esq., at Kozyak Tropin & Throckmorton, P.A.; and Todd C. Meyers, Esq., at Kilpatrick Stockton LLP, serve as counsel to the official committee of unsecured creditors. In its bankruptcy petition, BankUnited Financial Corp. said it has assets of $37,729,520 against debts of $559,740,185. Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York were listed among the company's largest unsecured creditors in their roles as trustees for security issues. BankUnited estimated the Bank of New York claim tied to convertible securities at $184 million. U.S. Bank and Wilmington Trust are owed $120 million and $118.171 million on account of senior notes. BIOLASE TECHNOLOGY: Shareholders' Equity Fails Nasdaq Requirement ----------------------------------------------------------------- Biolase Technology, Inc. received a letter on August 18, 2010 from NASDAQ, stating that BIOLASE is not in compliance with the NASDAQ Capital Market's minimum stockholders' equity continued listing requirement of $2.5 million. As of June 30, 2010, BIOLASE's stockholders' equity was approximately negative $1.3 million. BIOLASE can submit a detailed plan of compliance by October 4, 2010, advising NASDAQ of the action BIOLASE has taken, or plans to take, that would bring it into compliance with this requirement. Alternatively, BIOLASE could return to compliance if it satisfied the market value of listed securities or net income from continuing operations listing requirements, which stand as alternatives to the minimum stockholders' equity continued listing requirement. If BIOLASE submits a plan of compliance and NASDAQ does not accept the Company's plan, NASDAQ may then initiate delisting proceedings from the NASDAQ Capital Market, at which time BIOLASE may appeal NASDAQ's determination to a Listing Qualifications Panel. About Biolase Technology Irvine, Calif.-based BIOLASE Technology, Inc. is medical- technology company that develops, manufactures and markets lasers, related products and services focused on technologies for improved applications and procedures in dentistry and medicine. * * * As reported in the Troubled Company Reporter on March 22, 2010, BDO Seidman, LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations, has had declining revenues, has limited financial resources at December 31, 2009, and is substantially dependent upon its primary distributor for future purchases of the Company's products. BLOCKBUSTER INC: Says it May Be Required to File for Chapter 11 --------------------------------------------------------------- Blockbuster Inc. filed its quarterly report on Form 10-Q, saying that it is in talks with noteholders and other parties on a balance sheet restructuring and that it might be required to seek Chapter 11 protection. "We are experiencing liquidity constraints and have amortization and other debt service requirements. As such, we are currently in discussions with our senior secured and senior subordinated noteholders as well as other strategic parties in an effort to restructure our balance sheet and acquire additional capital funding," Blockbuster said in its Form 10-Q. "We can give no assurance that we will successfully execute the recapitalization initiatives we are currently pursuing or any others, and our ability to do so could be adversely affected by numerous factors, including changes in the economic or business environment, financial market volatility, the performance of our business, and the terms and conditions of our various debt agreements and indentures. It is possible that even a successful implementation of the recapitalization initiatives we are pursuing will require us to make a filing for protection under Chapter 11 of the U.S. Bankruptcy Code." During the remainder of 2010, the Company expects to continue to take actions to improve liquidity. It added, "We expect to reduce general and administrative expenses, continue to rationalize the domestic store portfolio and work to divest international assets. In addition, our 2010 global capital expenditures will remain at maintenance levels of approximately $30 million, and we will continue to manage working capital. We also continue to explore a variety of strategic alternatives to strengthen our capital structure and position us for success in our transformational efforts." The Company added that it is in discussions with our senior secured and senior subordinated noteholders as well as potential strategic parties in an effort to restructure its balance sheet and acquire additional capital funding. Consistent therewith, the senior secured and senior subordinated noteholders have formed committees, have retained advisors, with which we are engaged in negotiations, and continue to conduct due diligence on Blockbuster. Second Quarter Results The Company reported a net loss of $69.3 million on $788.3 million of revenues for the 13 weeks ended July 4, 2010, compared with a net loss of $39.7 million on $981.8 million of revenues for the same period a year ago. The Company's balance sheet at July 4, 2010, showed $1.16 billion in total assets, $1.61 billion in total liabilities, and $45 million in stockholders' deficit. The Company incurred a net loss from operations for the 26 weeks and fiscal year ended July 4, 2010 and Jan. 3, 2010, respectively, had negative working capital as of July 4, 2010, and had a stockholders' deficit as of July 4, 2010 and January 3, 2010. In addition, the increasingly competitive industry conditions under which it operates have negatively impacted its results of operations and cash flows and may continue to do so in the future. "These factors raise substantial doubt about its ability to continue as a going concern," the Company said in its Form 10-Q. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?69e8 About Blockbuster Inc. Blockbuster Inc. -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. The Company's balance sheet as of April 4, 2010, showed $1.319 billion in assets, $1.693 billion in liabilities, and a stockholders' deficit of $374.2 million. PricewaterhouseCoopers LLP, in Dallas, expressed substantial doubt about the Company's ability to continue as a going concern following Blockbuster's 2009 results. In February 2010, Blockbuster hired law firm Weil, Gotshal & Manges and investment bank, Rothschild Inc., to explore strategies for cutting the Company's $1 billion debt load. In March 2010, the Company said it was seeking to refinance its debt and could be forced into bankruptcy. Blockbuster has received from bondholders a series of moratoriums on payment of principal and interest, the latest of which expires September 30, 2010. According to Bloomberg News, Blockbuster received the latest one-month reprieve from creditors so it can prepare for a possible bankruptcy filing in September. BLOOMINGTON MOTOR: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Bloomington Motor Carriers, Inc. 101 West Kirkwood Avenue, Suite 224 Bloomington, IN 47404-6135 Bankruptcy Case No.: 10-12487 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Basil H. Lorch III Debtor's Counsel: Harley K. Means, Esq. KROGER GARDIS & REGAS, LLP 111 Monument Circle, Suite 900 Indianapolis, IN 46204-5125 Tel: (317) 777-7439 Fax: (317) 777-7439 E-mail: hkm@kgrlaw.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/insb10-12487.pdf The petition was signed by John E. Stackhouse, president/CEO. BLYN II: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------ Debtor: BLyn II Holding, LLC 467 E. Beasley Aransas Pass, TX 78336 Bankruptcy Case No.: 10-20642 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court Southern District of Texas (Corpus Christi) Judge: Richard S. Schmidt Debtor's Counsel: Shelby A. Jordan, Esq. JORDAN HYDEN WOMBLE AND CULBRETH, PC 500 N. Shoreline, Suite 900 N Corpus Christi, TX 78471 Tel: (361) 884-5678 Fax: (361) 884-5616 E-mail: ecf@jhwclaw.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 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb10-20642.pdf The petition was signed by James R. McCord, manager. BOSTON GENERATING: Asks for Court's Nod to Use Cash Collateral -------------------------------------------------------------- Boston Generating, LLC, et al., ask for authorization from the U.S. Bankruptcy Court for the Southern District of New York to use until June 18, 2011, cash that constitute as collateral of their prepetition lenders. The Debtors owe at least $1,279,450,000 to the first lien lenders, led by Credit Suisse AG as administrative agent. The Debtors also owe at least $350,000,000 to second lien lenders, led by Wilmington Trust FSB, as administrative agent. D. J. Banker, Esq., at Latham & Watkins LLP, explains the Debtors need the cash collateral to fund their 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/BOSTON_GENERATING_budget.pdf In exchange for using the cash collateral, the Debtors propose to grant replacement liens upon all property to the first lien lenders and second lien lenders. To the extent of diminution of value, the first lien lenders will be granted allowed super- priority administrative claims. As further adequate protection, the Debtors will: (i) within three business days of the entry of an interim order granting access to cash collateral, pay to Credit Suisse $5,175,421 cash; (ii) on a monthly basis pay Credit Suisse interest on the unpaid principal amount of the loans outstanding for the benefit of the first lien lenders, plus fees for the benefit of the revolving credit lenders and synthetic letter of credit lenders under the first lien credit agreement. (iii) timely pay in cash all reasonable out of pocket fees, costs and expenses of Credit Suisse and its professionals, Wachtell, Lipton, Rosen & Katz and Capstone Advisory Group, LLC, on a regular monthly basis during the cases; and (iv) deliver to Credit Suisse information, reports, documents and other material that it may reasonably request. About Boston Generating New York-based Boston Generating, LLC, owns nearly 3,000 megawatts of mostly modern natural gas-fired power plants in the Boston area. Privately held Boston Generating is an indirect subsidiary of US Power Generating Co., and considers itself as the third- largest fleet of plants in New England. Boston Generating filed for Chapter 11 protection on August 18, 2010 (Bankr. S.D.N.Y. Case No. 10-14419). Boston Generating estimated its assets and debts at more than $1 billion as of the Petition Date. EBG Holdings LLC; Fore River Development, LLC; Mystic, LLC; Mystic Development, LLC; BG New England Power Services, Inc.; and BG Boston Services, LLC, filed separate Chapter 11 petitions. D. J. Baker, Esq., at Latham & Watkins LLP, serves as bankruptcy counsel for the Debtors. JP Morgan Securities is the Debtors' investment banker. Perella Weinberg Partners, LP, is the Debtors' financial advisor. Brown Rudnick LLP is the Debtors' regulatory counsel. FTI Consulting, Inc., is the Debtors' restructuring consultant. Anderson Kill & Olick, P.C., is the Debtors' conflicts counsel. The Garden City Group, Inc., is the Debtors' claims agent. BOSTON GENERATING: Taps Perella Weinberg as Financial Advisor ------------------------------------------------------------- Boston Generating, LLC, et al., ask for authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ Perella Weinberg Partners LP as financial advisor, nunc pro tunc to the Petition Date. PWP will, among other things: a. continue to review the Debtors' financial condition and outlook; b. assist in the development of financial data and presentations to the Debtors' board of directors, various creditors and other parties; c. analyze the financial liquidity of the Debtors and evaluate alternatives to improve the liquidity; and d. participate in negotiations among the Debtors, and related creditors, suppliers, lessors and other interested parties with respect to any of contemplated transactions. The Debtors and PWP have agreed on a compensation structure in considered for the services to be rendered by the firm: (a) a monthly fee of $175,000 payable in advance on the first day of each month; (b) a $2,000,000 fee payable following consummation of the modification of the Debtors' prepetition credit agreement; (c) a restructuring fee equal to 0.75% of the principal amount of all outstanding obligations, but in no even more than $7,500,000; (d) a financing fee based on a percentage of the amount of financing received by the Debtors, which fee will not exceed $2,000,000; (e) a transaction fee; and (f) reimbursement of all reasonable out-of-pocket expenses. Derron Slonecker, a partner at PWP, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. About Boston Generating New York-based Boston Generating, LLC, owns nearly 3,000 megawatts of mostly modern natural gas-fired power plants in the Boston area. Privately held Boston Generating is an indirect subsidiary of US Power Generating Co., and considers itself as the third- largest fleet of plants in New England. Boston Generating filed for Chapter 11 protection on August 18, 2010 (Bankr. S.D.N.Y. Case No. 10-14419). Boston Generating estimated its assets and debts at more than $1 billion as of the Petition Date. EBG Holdings LLC; Fore River Development, LLC; Mystic, LLC; Mystic Development, LLC; BG New England Power Services, Inc.; and BG Boston Services, LLC, filed separate Chapter 11 petitions. D. J. Baker, Esq., at Latham & Watkins LLP, serves as bankruptcy counsel for the Debtors. JP Morgan Securities is the Debtors' investment banker. Brown Rudnick LLP is the Debtors' regulatory counsel. FTI Consulting, Inc., is the Debtors' restructuring consultant. Anderson Kill & Olick, P.C., is the Debtors' conflicts counsel. The Garden City Group, Inc., is the Debtors' claims agent. BOSTON GENERATING: Proposes Constellation-Led Auction on Oct. 29 ---------------------------------------------------------------- Boston Generating, LLC and its affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to approve proposed bidding procedures in connection with the sale of substantially all of their assets. Under an August 7, 2010 asset purchase agreement, the Debtors will sell the assets to Constellation Holdings, Inc., for $1.10 billion. In the event that the Stalking Horse Bidder isn't chosen as the winning bidder, the Stalking Horse Bidder will receive a break-up fee of $30 million and up to $5 million for reimbursement of expenses. The Debtors propose that: a. September 9, 2010, at 4:00 p.m., prevailing Eastern Time, be the deadline for objections to the bidding procedures; b. September 16, 2010, be the date for the hearing of the proposed bidding procedures; c. October 4, 2010, be the last date by which potential bidders may deliver preliminary bid documents required to participate in the auction; d. October 25, 2010, at 4:00 p.m., prevailing Eastern Time, be the deadline for objections to the sale and/or the assumption and assignment of assumed contracts or cure amounts related thereto; e. October 25, 2010, at 5:00 p.m. prevailing Eastern Time, be the deadline by which all binding bids must be actually received pursuant to the bidding procedures; f. October 29, 2010, be the date of the auction, if one is needed; and g. November 2, 2010, be the date for the sale hearing. Bids must be at least exceed the sum of (i) the proposed cash purchase price; (ii) the Assumed Liabilities; (iii) the Break-Up and expense reimbursement amount; (iv) any amount required to be reimbursed to the Stalking Horse Bidder pursuant to the APA; and (v) the minimum bid increment of $20,000,000. A $50 million deposit, which will be held in escrow, is required. A copy of the APA and bidding procedures is available for free at: http://ResearchArchives.com/t/s?69df About Boston Generating New York-based Boston Generating, LLC, owns nearly 3,000 megawatts of mostly modern natural gas-fired power plants in the Boston area. Privately held Boston Generating is an indirect subsidiary of US Power Generating Co., and considers itself as the third- largest fleet of plants in New England. Boston Generating filed for Chapter 11 protection on August 18, 2010 (Bankr. S.D.N.Y. Case No. 10-14419). Boston Generating estimated its assets and debts at more than $1 billion as of the Petition Date. EBG Holdings LLC; Fore River Development, LLC; Mystic, LLC; Mystic Development, LLC; BG New England Power Services, Inc.; and BG Boston Services, LLC, filed separate Chapter 11 petitions. D. J. Baker, Esq., at Latham & Watkins LLP, serves as bankruptcy counsel for the Debtors. JP Morgan Securities is the Debtors' investment banker. Perella Weinberg Partners, LP, is the Debtors' financial advisor. Brown Rudnick LLP is the Debtors' regulatory counsel. FTI Consulting, Inc., is the Debtors' restructuring consultant. Anderson Kill & Olick, P.C., is the Debtors' conflicts counsel. The Garden City Group, Inc., is the Debtors' claims agent. BROADWAY 401: Restructuring Plan Consummated; Court Closes Case --------------------------------------------------------------- The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware entered a final decree closing the Chapter 11 cases of Broadway 401 LLC, et al. The Debtors requested the Court to close the cases because their Chapter 11 Plan have been consummated and all of their properties were transferred and disbursed. Broadway 401 LLC owns the Dumont Condominiums in Washington. New York-based Broadway 401 LLC, along with Broadway Mass Associates LLC, and Broadway Mass TIC I LLC, is owned by Lazar Muller, Samuel Weiss, Charles Herzka, David Weldler and the 1997 Neumann Family Trust. The Debtors acquired the property located at 401 Massachusetts Ave. and 425 Massachusetts Ave. between December 2004 and January 2006 for more than $47 million. Since that time, they've improved the properties with two 14-story residential towers containing 559 residential condominiums. The towers are known as "The Dumont" and are reportedly "vacant but essentially . . . complete and ready for occupancy." Broadway 401 filed for Chapter 11 bankruptcy protection on January 11, 2010 (Bankr. D. Delaware Case No. 10-10070). The Company's affiliates -- Broadway Mass Associates LLC; Broadway Mass TIC I LLC, et al. -- filed separate Chapter 11 petitions. Jamie Lynne Edmonson, Esq., at Bayard PA, assisted the Debtors in their restructuring efforts. Broadway 401 estimated assets and liabilities at $100 million to $500 million in its Chapter 11 petition. BROWN PUBLISHING: In Talks to Sell Assets to 2nd Highest Bidder --------------------------------------------------------------- The Associated Press reports that Brown Publishing Co. told the Bankruptcy Court on Friday that an insiders group cannot complete its bankruptcy auction purchase of the Ohio-based newspaper chain because the group's lender withdrew. According to the AP, the Debtor said Brown Media Corp. on Aug. 18 had confirmed it "lacked the financial ability to close at this time" because "its lender has withdrawn." The lender was not identified in the court filing. According to the AP, Brown Publishing said it has begun discussions with PNC Bank as the next highest bidder and believes it "will be in a position to close an asset sale transaction with PNC." PNC, which led the group of the chain's senior creditors, has said it hopes to close no later than September 3, the filing said. The AP relates PNC spokesman Pat McMahon said Monday that he could not comment beyond the court filing. The AP relates the Court last month ruled that the newly formed Brown Media Corp., led by current Brown Publishing president and CEO Roy Brown, could buy the majority of the chain for $22.4 million. The AP notes the Debtor's filing did not indicate how much PNC bid for the chain. The AP further relates Brown Publishing also asked the court to allow it to continue using cash collateral to operate through September 3. The Debtor said it would be forced to shut down operations if the court does not authorize continued use of the cash collateral. 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 $10 million to $50 million in assets and debts in its Chapter 11 petition. CAVE LAKES: Taps Neil J. Beller as Bankruptcy Counsel ----------------------------------------------------- Cave Lakes Canyon, LLC, asks for authorization from the U.S. Bankruptcy Court for the District of Nevada to employ the law offices of Neil J. Beller, Ltd., as bankruptcy counsel. Neil J. Beller will: a. provide analysis of the Debtor's financial situation; b. prepare and file any petition, schedules, statement of affairs and plan which may be required; c. represent the Debtor at the meeting of creditors and confirmation hearing, and any adjourned hearings thereof; and d. represent the Debtor in adversary proceedings and other contested bankruptcy matters. Neil J. Beller, Esq., who is employed by the law offices of Neil J. Beller, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Las Vegas, Nevada-based Cave Lakes Canyon, LLC, filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. D. Nev. Case No. 10-22419). In its schedules, the Debtor disclosed $18,283,110 in total assets and $4,122,607 in total liabilities as of the Petition Date. CENTRAL METAL: Plan Confirmation Hearing Scheduled for October 28 ----------------------------------------------------------------- The Hon. Vincent P. Zurzolo of the U.S. Bankruptcy Court for the Central District of California will consider on October 28, 2010, at 1:30 p.m., Pacific Standard Time, the confirmation of Central Metal, Inc.'s Plan of Reorganization, as amended. Objections, if any are due on August 27. Ballots accepting or rejecting the Plan are due 5:00 p.m., on August 27. The Debtor must file by October 7, a summary of the outcome of the voting. Under the Plan, all holders of secured claims and priority claims will be paid in full from the post-confirmation income of the Debtor. Holders of general unsecured claims amounting to $1,000,000 will be paid in four payments, each at $250,000. Interest holder, Jong Uk Byun will receive no payments under the Plan. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CENTRALMETAL_amendedDS.pdf The Debtor is represented by: Monica Y. Kim, Esq. Juliet Y. Oh, Esq. LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. 10250 Constellation Blvd., Suite 1700 Los Angeles, California 90067 Tel: (310) 229-1234 Fax: (310) 229-1244 E-mail: myk@lnbyb.com jyo@lnbyb.com About Central Metal, Inc. Huntington Park, California-based Central Metal, Inc., is a fully integrated scrap metal processing company that purchases, processes and sells ferrous and non-ferrous metals domestically and internationally. The Company is one of the largest processing companies on the West Coast, has one of the largest land sites and processing capacities, and is fully diversified in its business portfolio that entails dynamic trading relationships with renowned metal manufacturers around the world. The Company filed for Chapter 11 bankruptcy protection on January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y. Oh, Esq., who has an office in Los Angeles, California, assists the Debtor in its restructuring effort. The Company estimated assets and liabilities at $10 million to $50 million in its Chapter 11 petition. CLAIRE'S STORES: To Report $334MM in Sales for July 31 Quarter -------------------------------------------------------------- Claire's Stores Inc. reported its selected preliminary, unaudited financial results for the 2010 second quarter, which ended July 31, 2010. The Company expects to report net sales of $334 million for the 2010 second quarter, an increase of $20 million, or 6.4%, compared to the 2009 second quarter. The increase was attributable to an increase in same store sales and new store sales, partially offset by foreign currency translation effect of our foreign locations' sales and closed stores. Sales would have increased 9.5% excluding the impact from foreign currency rate changes. The company said, "Consolidated same store sales increased 8.9% in the 2010 second quarter. In North America, same store sales increased 9.0% and European same store sales increased 8.7%. Our same store sales trend in the second quarter continues thus far in the third quarter. As a point of reference, our fiscal 2009 third quarter same store sales declined 0.3%. We compute same store sales on a local currency basis, which eliminates any impact from changes in foreign exchange rates." Adjusted EBITDA in the 2010 second quarter is expected to be between $54 million and $56 million, compared to $50.5 million in the 2009 second quarter. The Company defines Adjusted EBITDA as earnings before interest, income taxes, gain from early debt extinguishment, depreciation and amortization, excluding the impact of transaction-related costs incurred in connection with its May 2007 acquisition and other non-recurring or non-cash expenses, and normalizing occupancy costs for certain rent-related adjustments. At July 31, 2010, cash and cash equivalents were $160 million, and $194 million continued to be drawn on the Company's Revolving Credit Facility. In addition, during the 2010 second quarter, the Company paid $42 million to retire $42 million of Senior Toggle Notes and $7 million of Senior Subordinated Notes. A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?6995 About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores, Inc., also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. Claire's Stores, Inc., reported a net loss of $12,300,000 for the three months ended May 1, 2010, from a net loss of $29,023,000 for the three months ended May 2, 2009. Net sales were $322,077,000 for the three months ended May 1, 2010, from $293,098,000 for the three months ended May 2, 2009. At May 1, 2010, the Company had total assets of $2,828,167,000; total current liabilities of $189,612,000, long-term debt of $2,297,603,000; revolving credit facility of $194,000,000, obligations under capital leases of $17,290,000, deferred tax liability of $121,156,000; deferred rent expense of $22,680,000, unfavorable lease obligations and other long-term liabilities of $34,070,000; and a stockholder's deficit of $48,244,000. CLEMENT CARINALLI: Plan Confirmation Hearing Set for October 1 -------------------------------------------------------------- The Hon. Alan Jaroslovsky of the U.S. Bankruptcy Court for the Northern District of California will consider on October 1, 2010, at 10:00 a.m. (Pacific Time), the confirmation of the proposed Plan of Reorganization for Clement C. and Ann Marie Carinalli. The hearing will be held at 99 South E. Street, Santa Rosa, California. The Court also fixed 4:00 p.m. on September 17, as the objection and voting deadline. The Debtors and the Official Committee of Unsecured Creditors are co-proponents to the Plan. Under the Plan, creditors' trustee is expected to pay: (i) 10% of all allowed general unsecured claims for creditors who have chosen early payment, within approximately 18 months or earlier; and (ii) between 26.7% and 55.7% of all allowed general unsecured claims for creditors who have chosen to receive payments over a more extended time period spanning approximately five years, using the cash generated by the sale of most or all of the Debtors' non-exempt assets that have equity value. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/ClementCarinalli_DS.pdf The Debtors are represented by: Merle C. Meyers, Esq. Edie Walters, Esq. D. Clarke Sugar, Esq. MEYERS LAW GROUP, P.C. 44 Montgomery Street, Suite 1010 San Francisco, CA 94104 Tel: (415) 362-7500 Fax: (415) 362-7515 E-mail: mmeyers@mlg-pc.com ewalters@mlg-pc.com csugar@mlg-pc.com The Creditors Committee is represented by: John D. Fiero, Esq. Maxim B. Litvak, Esq. PACHULSKI, STANG ZIEHL & JONES LLP 150 California Street, 15th Floor San Francisco, CA 94111 Tel: (415) 263-7000 Fax: (415) 263-7010 E-mail: jfiero@pszjlaw.com mlitvak@pszjlaw.com About Clem Carinalli On Sept. 14, 2009, an involuntary chapter 7 bankruptcy petition was filed against Sonoma, California's biggest real estate investor Clement C. Carinalli and his wife, Ann Marie Carinalli, (Bankr. N.D. Calif. Case No. 09-12986). On Sept. 29, 2009, the case was converted to Chapter 11. The Carinallis are now joint debtors in possession. Honorable Alan Jaroslovsky is the presiding judge. CLIFFORD DUMAS: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: Clifford Andrew Dumas Lisa Dianne Dumas 5828 Blazing Star Lane San Diego, CA 92130 Bankruptcy Case No.: 10-14829 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtors' Counsel: John L. Smaha, Esq. SMAHA LAW GROUP, APC 7860 Mission Center Court, Suite 100 San Diego, CA 92108 Tel: (619) 688-1557 Fax: (619) 688-1558 E-mail: jsmaha@smaha.com Scheduled Assets: $1,215,167 Scheduled Debts: $1,504,183 A list of the Joint Debtors' seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/casb10-14829.pdf COMPLIANCE SYSTEMS: Posts $580,000 Net Loss in June 30 Quarter -------------------------------------------------------------- Compliance Systems Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $579,974 on $317,271 of revenues for the three months ended June 30, 2010, compared with a net loss of $373,658 on $277,777 of revenues for the same period a year earlier. The Company's balance sheet at June 30, 2010, showed $1.58 million in total assets, $4.65 million in total liabilities, and $3.07 million in stockholders' deficit. The Company noted that it has suffered continued losses from operations since its inception and incurred a net loss of $1,233,019 for the six months ended June 30, 2010. The Company had stockholders' deficiencies of $3,065,813 and $2,297,933 and working capital deficiencies of $4,123,226 and $2,147,256 at June 30, 2010 and December 31, 2009, respectively. The Company said in the Form 10-Q, "The prolonged trend of net losses incurred over the last eight fiscal years raises substantial doubt about the Company's ability to continue as a going concern. Such continuation is dependent upon the Company's ability to obtain additional financing, increase revenues, control costs and operate profitably. To this end, the Company retained an investment banking firm and completed an acquisition of Execuserve Corp. that may diversify the Company's range of products and services. The Company continues to seek additional financing to help execute its business plan. There can be no assurance that the Company will be successful in attaining these objectives or that attaining such objectives will result in operating profits, positive cash flows or an overall improvement in the Company's financial position in future periods." A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?6993 About Compliance Systems Headquartered in Glen Cove, New York, Compliance Systems Corporation operates its principal businesses through two of its subsidiaries, Call Compliance, Inc. and Execuserve Corp. Call Compliance helps telemarketing operators ensure compliance in the highly regulated, strictly enforced Do-Not-Call and other telemarketing guidelines environment. Execuserve provides organizations, who are hiring employees, with tests and other evaluation tools and services to assess and compare job candidates. CONSOLIDATED CONTAINER: S&P Raises Corporate Credit Rating to 'B' ----------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Atlanta- based Consolidated Container Co. LLC, including the corporate credit rating to 'B' from 'B-'. The outlook is stable. S&P raised the issue-level rating on the company's $405 million first-lien senior secured term loan B ($369.6 million outstanding as of June 30, 2010) by one notch to 'B' from 'B-' (the same as the corporate credit rating). The recovery rating on this debt remains unchanged at '3', indicating S&P's expectation for a meaningful (50%-70%) recovery in the event of a payment default. S&P raised the issue-level rating on the $225 million second-lien term loan ($225 million outstanding as of June 30, 2010) to 'CCC+' from 'CCC' (two notches below the corporate credit rating). The recovery rating remains unchanged at '6', indicating S&P's expectation for a negligible (0%-10%) recovery in the event of a payment default. "The upgrade reflects improving operating trends which should continue to support adequate liquidity and a financial profile consistent with the revised rating," said Standard & Poor's credit analyst Henry Fukuchi. S&P expects ongoing cost-reduction efforts, favorable raw material pass-through provisions, and improved operating efficiencies to continue support this trend despite softness in overall volumes. The upgrade reflects S&P's view that liquidity should remain adequate, given its expectation for positive free cash flow generation and the company's favorable debt maturity profile. The ratings on Consolidated Container Co. LLC and its wholly owned subsidiary, Consolidated Container Capital Inc., reflect the company's highly leveraged financial profile and weak business risk profile. The business risk assessment incorporates high customer concentration, and a highly fragmented and competitive industry structure, somewhat mitigated by relatively stable beverage and consumer product packaging markets. S&P believes that operating trends should remain stable, supporting a financial profile consistent with the revised ratings. The outlook also reflects S&P's view that liquidity should continue to be adequate, supported by meaningful availability under the revolving credit facility and positive free cash flow generation. Although S&P expects the company will post moderately weaker earnings in fiscal 2010 compared with 2009, S&P expects credit measures to remain appropriate for the rating with FFO to total adjusted debt likely remaining above 10%. S&P could raise the ratings if Consolidated Container achieves an FFO to total adjusted debt of about 20% consistently and if S&P expects operating results to remain stable over time. However, S&P could lower the ratings if unexpected business challenges result in decreased liquidity or a decrease in the FFO to total adjusted debt ratio toward the single-digit percentage area. Based on S&P's scenario forecasts, S&P could lower the ratings if operating margins weaken by 3 percentage points or more, or if volumes decline by 20% or more from S&P's 2010 and 2011 forecasts. In this scenario, S&P expects that the company's leverage would deteriorate to above 6x and FFO to total adjusted debt would decrease to the single digit percentage area. CORNERSTONE PARTNERS: Case Summary & 14 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Cornerstone Partners, LLC fdba Avalon Preferred Properties, LLC Cornerstone Southwest Properties, LLC 303 East Gurley Street, #474 Prescott, AZ 86301-3804 Bankruptcy Case No.: 10-26208 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum PCT, Sr. Debtor's Counsel: Lawrence D. Hirsch, Esq. DECONCINI MCDONALD YETWIN & LACY, PC 7310 N. 16th St. #330 Phoenix, AZ 85020 Tel: (602) 282-0472 Fax: (602) 282-0520 E-mail: lhirsch@dmylphx.com Scheduled Assets: $629,522 Scheduled Debts: $1,508,516 A list of the Company's 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-26208.pdf The petition was signed by Denise Wedepohl, co-owner. CROSSTOWN STOR-N-MORE: Case Summary & Creditors List ---------------------------------------------------- Debtor: Crosstown Stor-N-More Self Storage, LLC 6915 Westchester Circle Bradenton, FL 34202 Bankruptcy Case No.: 10-20055 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Alberto F. Gomez, Jr., Esq. MORSE & GOMEZ, PA 119 S. Dakota Avenue Tampa, FL 33606 Tel: (813) 301-1000 E-mail: algomez@morsegomez.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Daryl Brown, President of Interstate Business Centers, Inc. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Daryl Brown Loan $1,059,500 6915 Westchester Circle Bradenton, FL 34202 Interstate Business Centers Loans $120,000 6915 Westchester Circle Bradenton, FL 34202 Johnson Pope, et al. Professional $42,946 P.O. Box 1368 Services Clearwater, FL 33756-1368 Otis Elevator Elevator $6,372 Maintenance Agreement Diamond Car Wash Carwash Supplies $5,647 Kerkering, Barbario & Co. Tax Preparation $3,654 Professional Services St. Pete Times Advertising $2,666 Chateau Vendor $1,960 Blair's Vendor $1,752 SeTel Telephone $1,083 Equipment Service/Provider Distinctive Impressions Vendor $859 Aqua Clean Vendor $830 Dart Electronics, Inc Alarm Repairs and $796 Monitoring Quill Office Supplies $746 Melco Vendor $732 Empower Software Vendor $500 CTG Vendor $449 IT Authorities Internet/Telephone $413 Support Culligan Water and Water $380 Cooler Equipment Supply Side Rental Supplies $330 CRUCIBLE MATERIALS: Judge Confirms Liquidating Plan --------------------------------------------------- Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware confirmed Crucible Materials Corp.'s liquidation plan after the Debtor reached a settlement with the U.S. Department of Justice and environmental regulators over pollution cleanup obligations, Bankruptcy Law360 reports. Judge Walrath confirmed an amended plan that creates an environmental trust, Law360 says. Under the Plan, secured creditors would be unimpaired, unsecured creditors would receive distributions from remaining funds, and equity holders won't be receiving anything. The explanatory Disclosure Statement did not disclose the estimated percentage recovery by holders unsecured claims against Crucible Materials expected to total $250 million to $400 million and general unsecured claims against affiliate Crucible Development Corp. expected to total $205 million to $300 million. About Crucible Materials Based in Syracuse, New York, Crucible Materials Corporation -- aka Crucible Specialty Metals, Crucible Service Centers, Crucible Compaction Metals, Crucible Research and Trent Tube -- http://www.crucible.com/-- makes stainless and alloy steel for use in the aircraft, automotive, petrochemical, and other industries. The Company was employee-owned prior to its bankruptcy filing. The Company and its affiliate, Crucible Development Corporation, filed for Chapter 11 protection on May 6, 2009 (Bankr. D. Del. Lead Case No. 09-11582). Mark Minuti, Esq., at Saul Ewing LLP represents the Debtors in their restructuring efforts. The Debtors engaged Duff & Phelps Securities LLP as investment banker; RAS Management Advisors LLC as business advisor; and Epiq Bankruptcy Solutions LLC as claims agent. Roberta A. DeAngelis, United States Trustee for Region 3, appointed five creditors to serve on the Official Committee of Unsecured Creditors. Crucible Materials estimated assets and debts both ranging from $100 million to $500 million in its Chapter 11 petition. From four asset sales under 11 U.S.C. Sec. 363, Crucible generated $14.4 million after secured lenders were fully paid on $64.5 million in claims outstanding at the outset of the Chapter case. CUSTOM CABLE: Seeks to Conduct Auction of Assets ------------------------------------------------ Dow Jones DBR Small Cap reports that Custom Cable Industries Inc., is urging a bankruptcy court to let it auction off its assets, with ComVest Capital LLC leading the bidding. Custom Cable retained Berenfeld Capital Markets, LLC to solicit prospective purchasers. An affiliate of ComVest Capital LLC, Custom Cable's senior lender and majority shareholder, has expressed its willingness to purchase Custom Cable. "Custom Cable is a good company with a poor balance sheet but improving business operations," Gregg Stewart, general manager and chief restructuring officer, said on July 30, when the Company filed for bankruptcy. "[The bankruptcy filing] is being taken to restructure the company's balance sheet and allow for a fresh capital infusion. Management believes a new owner and the resultant capital infusion would allow the company to continue its trend of positive operating results, allowing it to resume sustainable and profitable growth. We appreciate the support we have received to date from our long time customers and suppliers, and look forward to continuing these valued relationships." Despite upward trends in operations during 2010, Custom Cable has faced issues with its significant debt level and continued litigation claims from former executives and its senior lender. The decision to pursue Chapter 11 reorganization was made by a special committee of the company's board of directors, whose members determined that the best course of action was to seek an asset sale of the company through Section 363 of the U.S. Bankruptcy Code. The Company said all day to day operations and business will continue as usual. The Company said it has the requisite funding in hand to operate in Chapter 11. About Custom Cable Industries Founded in 1980, Custom Cable Industries, Inc. -- http://www.customcable.com/-- manufactures and installs audio, video and fiber-optic cables. Custom Cable filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-18478) on July 30, 2010. Michael P. Horan, Esq., and Stephanie C. Lieb, Esq., at Trenam Kemker Scharf Barkin Frye, serve as the Debtor's bankruptcy counsel. The Debtor estimated $1 million to $10 million in assets and $10 million to $50 million in debts. DALE STICKNEY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Dale Stickney Construction, Inc. P.O. Box 491870 Redding, CA 96049 Bankruptcy Case No.: 10-42119 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Christopher M. Klein Debtor's Counsel: Dennis K. Cowan, Esq. P.O. Box 992090 Redding, CA 96099 Tel: (530) 221-7300 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/caeb10-42119.pdf The petition was signed by Ronald H. Stickney, chief executive officer. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Secured Capital Investments Group, LLC 09-32525 06/18/09 DARIUS ENTERPRISES: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Darius Enterprises, LLC fka 9621 Canoga Avenue, LLC 9623 Canoga Avenue Chatsworth, CA 91311 Bankruptcy Case No.: 10-20351 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: Michael G. Spector, Esq. LAW OFFICES OF MICHAEL G. SPECTOR 2677 N. Main Street, Suite 800 Santa Ana, CA 92705 Tel: (714) 835-3130 Fax: (714) 558-7435 E-mail: mgspector@aol.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-20351.pdf The petition was signed by Masih Madani, managing member. DEAN FOODS: Fitch Assigns Issuer Default Rating at 'B+' ------------------------------------------------------- Fitch Ratings has assigned a first-time 'B+' Issuer Default Rating to Dean Foods Company and Dean Holding Company -- a wholly owned subsidiary of Dean. Fitch has simultaneously assigned issue level and recovery ratings of 'BB/RR2' to Dean's secured credit facility and 'B-/RR6' to the senior unsecured notes of Dean and Dean Holding Company. The Rating Outlook is Stable. At June 30, 2010, Dean had $4.2 billion of total debt. Approximately 85% or $3.6 billion of this debt is secured while 15% or $625 million is unsecured. Rating Rationale: The rating recommendation incorporates Dean's leading market share positions in the U.S. dairy industry and its consistent generation of meaningful free cash flow (defined as cash flow from operations less capital expenditures and dividends). With over $11 billion of annual sales, Dean is the leader in the fragmented fluid milk market with approximately 38% share. The company is number one globally in soymilk with its Silk and Alpro brands, number one in U.S. organic milk with its Horizon Organic label and number two in U.S. coffee creamers with its International Delights and LAND O LAKES offerings. Dean's FCF has grown by a compound annual growth rate of 10% since 2001 and has averaged nearly $300 million annually, excluding the $15.00/share special dividend in 2007. These positives are balanced against Dean's high financial leverage and the commodity nature of the fluid milk business, which is characterized by low margins and occasional volatility due to swings in conventional raw milk prices. While Dean has historically been a consolidator in the industry, the company's primary focus has turned to cost savings and efficiencies and secondarily to rationalizing non-core assets; such as the sale of its Rachel's dairy operation in the United Kingdom which is expected to close during the current quarter. On an individual basis, Fitch does not expect divestitures to be material in size. Furthermore, negative mix shift towards lower margin private label milk is pressuring margins in the company's Fresh Dairy Direct- Morningstar division which represented 85% of fiscal 2009 sales and operating income, excluding corporate expenses. The negative mix shift is being caused by pressure on consumer spending which is exacerbated by retailer discounting and competition among dairy processors. Many retailers are reducing the price of private label milk in hopes of driving store traffic. The price reductions have led to rising price gaps between branded and private label options, increased consumer demand for cheaper private label milk and reduced profitability for Dean because private label milk has a lower margin than branded milk. Fitch expects this dynamic to continue in the near term and as such Dean's consolidated EBITDA margin is likely to remain below its 10-year historical average of roughly 8% in 2010 and 2011. Moreover, as of Aug. 18, 2010, the US$A is forecasting conventional raw milk prices, as measured by its All Milk index to increase 25% to an average of $16.00/hundredweight in 2010. Given the large year-over-year cost increase, Fitch does not believe Dean will be able to completely pass on this higher cost in 2010. Cost Savings Program: In an effort to protect margins, Dean established a $300 million 3-5 year cost savings target in early 2009. During 2009, Dean successfully realized $75 million of these savings and is expecting another $100 million in 2010. Approximately $250 million or 83% of the total reductions will come from the company's Fresh Dairy Direct-Morningstar segment while the remaining $50 million or 17% will come from the company's WhiteWave business. These operations include Dean's nationally branded soy and organic milk products. Within Fresh Dairy, about $115 million or 46% of the $250 million of savings will be associated with the company's distribution and network optimization, $85 million or 34% is related to conversion or increased production efficiencies, and $50 million or 20% is tied to procurement or supply chain efforts. Fitch views the targeted savings from this multi-year productivity program as achievable. This is primarily because the amount represents less than 15% of the company's total annual operating expenses, which amounted to $2.3 billion in 2008, and will be realized over time. Furthermore, given the company's long history of acquisitions, its excess capacity and multiple information systems, accounting and production platforms, Dean has a significant opportunity to close facilities and streamline operations. Recovery Ratings: While an event of default is not anticipated, the 'RR2' rating on Dean's secured bank debt incorporates Fitch's view that recovery prospects for these obligations would be superior or range from 71%-90% in a distressed situation. The 'RR6' rating on the unsecured notes reflects the heavy mix of secured debt in the company's capital structure and the view that little value would be available for distribution to unsecured debt holders in a recovery event. Recovery for these bondholders would likely be poor at 0%-10%. Fitch's assumptions for this analysis assume Dean would remain a going concern with an estimated enterprise value of about $3.8 billion and approximately $4.9 billion of claims. The claims include $4.1 billion of debt, excluding capital leases, at June 30, 2010 and $805.5 million of revolver availability that Fitch assumes would be drawn down if the company neared bankruptcy. Stable Outlook and Key Rating Triggers: The Stable Rating Outlook considers the current challenging operating environment, which Fitch believes is likely to continue through 2010, but reflects Dean's liquidity and manageable term loan amortization schedule. Fitch views Dean's June 30, 2010 amendment to its $4.8 billion secured credit facility which extended the maturity on approximately $3.5 billion or 73% of the size and eased financial maintenance covenants positively. Prior to the amendment, Dean had approximately $1.2 billion of term loan amortizations due 2011 through 2013 and limited room under its maximum leverage covenant, which was scheduled to step down at Dec. 31, 2010. While Dean's margins remain under pressure, Fitch expects the company to continue to generate material positive FCF and to apply it towards debt reduction. Additional covenant relief, due to continued negative mix shift towards private label milk and the inability to completely pass on higher raw milk costs, and substantial margin contraction in 2011 would be viewed negatively. Dean currently has approximately 15% of EBITDA cushion under the maximum leverage covenant for its secured bank facility. Total debt-to-operating EBITDA consistently above 5.5 times (x) could result in a downgrade while margin stability and debt reduction such that leverage declines below 4.5x would have positive rating implications. Credit Statistics: At the latest 12 months period ended June 30, 2010, total debt-to- operating EBITDA was 5.2x, FFO adjusted leverage was 5.8x and operating EBITDA-to-gross interest expense was 3.5x. Dean's leverage has ranged from a low of 3.1x in 2003 to a high of 6.4x in 2007 following the debt-financed $15/share special dividend of approximately $1.9 billion. As mentioned earlier, acquisitions have been a key part of Dean's strategy but debt reduction has also been a priority for the company over the past two years. Dean has spent roughly $660 million on acquisitions and has repaid roughly $1.1 billion of debt since 2007. The debt reduction represents about 57%, of the amount incurred for its leveraged recapitalization in 2007. In addition to approximately $852 million of FCF during 2008 and 2009, Dean raised $874 million of net proceeds from equity issuances and used the funds for debt reduction. Fitch currently believes debt reduction will continue but expects the pace of deleveraging to be delayed because of pressure on operating cash flow. Dean had been targeting leverage below 4.0x, as defined by its credit facility, by fiscal 2010 and approximately 3.5x by 2011. Fitch projects that total debt-to- operating EBITDA will approximate 5.0x in 2010 and 4.5x in 2011. Recent Operating Performance: Dean has had three consecutive quarters of year-over-year operating income declines. The company reported year-over-year consolidated operating income declines of 20% to $125 million during the second quarter ended June 30, 2010, 38% to $119 million in the first quarter ended March 31, 2010, and 26% to $136 million during the fourth quarter ended Dec. 31, 2009. As previously mentioned in the Rating Rationale, the downturn in Dean's performance has been due to weakness in its Fresh Dairy Direct-Morningstar segment. The operating margin in the Fresh Dairy Direct-Morningstar division fell 340 basis points (bps) to 5.5% during the first six months of 2010. Fitch's base case projection conservatively assumes little improvement through the rest of 2010, as weakness in the consumer environment will likely continue to encourage adverse retail pricing practices. Operating margins for Dean's WhiteWave-Alpro segment increased 40 bps to 8.8% during the latest six-month period due to volume growth and better pricing for branded products; such as, International Delight coffee creamers, Horizon Organic milk and Silk soymilk, productivity initiatives and the positive impact of the company's July 2, 2009 Alpro acquisition for $440.3 million. Improvement at WhiteWave-Alpro is not expected to fully offset operating income declines at Fresh Dairy Direct-Morningstar because the segment only represented 15% of sales and operating income, excluding corporate expenses, in fiscal 2009. Liquidity and Upcoming Maturities: Despite pressure on operating income, Fitch expects aggressive working capital management to partially mitigate declines in operating cash flow and only modest incremental capital expenditures to preserve FCF. Fitch currently projects FCF of approximately $250 million in 2010, down from the $391 million generated in 2009, but nonetheless strong. At June 30, 2010, Dean had $1.4 billion of liquidity which included $61.2 million of cash, $805.5 billion of revolver availability and $553.3 million of borrowing capacity under its receivables-backed facility. As a result of the June 30 credit agreement amendment, $1.3 billion of the secured revolver expires April 2, 2014 and $225 million expires April 2, 2012. The company's $600 million receivables-backed facility now terminates on June 29, 2011. At June 30, 2010, scheduled debt amortizations and maturities included $57.9 million in 2010, $193.4 million in 2011, $391.0 million in 2012 and $348.6 million in 2013. Covenant Risk: Dean's bank facility subjects the company to a maximum leverage and minimum interest coverage ratio. As defined by the agreement, LTM consolidated funded debt (excluding letters of credit, hybrid securities and no more than $100 million of cash)-to-consolidated EBITDA (adjusted for non-cash charges, etc.) is currently limited to 5.5x versus 5.0x prior to the amendment. This restriction steps down to 5.0x on June 30, 2011, and 4.5x on Dec. 31, 2012. At June 30, 2010, Dean was in compliance with this requirement at 4.7x, which as mentioned earlier, implies roughly 15% of EBITDA cushion. The company is also subject to a minimum interest coverage ratio covenant of 2.75x, which steps up to 3.0x on Dec. 31, 2010. Dean's senior unsecured $500 million 7% guaranteed notes due June 1, 2016, contain a change of control put option of 101% of principal plus accrued and unpaid interest. Fitch has taken these rating actions: Dean Foods Company (Parent) -- Long-term Issuer Default Rating at 'B+'; -- Bank credit facility at 'BB/RR2'; -- Senior unsecured debt at 'B-/RR6'. Dean Holding Company (Operating Subsidiary) -- Long-term Issuer Default Rating at 'B+'; -- Senior unsecured debt at 'B-/RR6'. DREIER LLP: Trustee Seeks to Recoup $16MM From Patriot Group ------------------------------------------------------------ Dow Jones DBR Small Cap reports that the official who is liquidating Marc Dreier's law firm is suing Patriot Group LLC to recover $16.65 million, part of a quest to recover the fake profits paid out to hedge-fund investors in Mr. Dreier's scheme to sell fraudulent promissory notes. About Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On December 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier has been charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09-cr-00085-JSR). Dreier LLP sought chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts of $10 million to $50 million in its Chapter 11 petition. Wachovia Bank National Association, Sheila M. Gowan as trustee for Dreier LLP's Chapter 11 Estate, and Steven J. Reisman as post- confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on January 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier, 60, pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. DONALD POWERS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: Donald W. Powers dba Kimmerly Glen Shopping Center Joan B. Powers dba Powers Rental Properties P.O. Box 44524 Charlotte, NC 28215 Bankruptcy Case No.: 10-32420 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Western District of North Carolina (Charlotte) Judge: George R. Hodges Debtors' Counsel: R. Keith Johnson, Esq. 1275 South Highway 16 Stanley, NC 28164 Tel: (704) 827-4200 Fax: (704) 827-4477 E-mail: rkjpa@bellsouth.net Scheduled Assets: $2,762,000 Scheduled Debts: $7,664,177 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb10-32420.pdf DREIER LLP: Hearing on Dreier Ex-Wife's $7MM Claim Set Sept. 14 --------------------------------------------------------------- Bankruptcy Law360 reports that U.S. Bankruptcy Judge Stuart M. Bernstein has set a Sept. 14 date for a court showdown between the bankruptcy estate of jailed attorney and Ponzi schemer Marc S. Dreier and his ex-wife, Elisa Dreier, over a $7.1 million claim she believes she is owed under a domestic support agreement. About Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On December 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier has been charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09-cr-00085-JSR). Dreier LLP sought chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. Wachovia Bank National Association, Sheila M. Gowan as trustee for Dreier LLP's Chapter 11 Estate, and Steven J. Reisman as post- confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on January 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier, 60, pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. E*TRADE FINANCIAL: Discloses 3-Year Loss-Per-Share Calculations --------------------------------------------------------------- E*Trade Financial Corporation filed on Aug. 19, 2010, with the U.S. Securities and Exchange Commission, a supplemental information on its weighted average shares and loss per share calculations for the years ended December 31, 2009, 2008 and 2007, to adjust for the impact of the 1-for-10 reversed stock split that became effective in the second quarter of 2010. A full-text copy of the selected financial data is available for free at http://ResearchArchives.com/t/s?6994 About E*Trade Financial The E*Trade Financial (NASDAQ: ETFC) family of companies provides financial services including trading, investing and related banking products and services to retail investors. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. * * * E*Trade has a 'B3' long-term issuer rating from Moody's Investors Service. In July 2010, when Moody's changed the outlook to 'stable' from 'negative', the ratings agency said, "E*TRADE's credit profile remains vulnerable to a significantly worse-than-anticipated level of credit losses at the bank, which has previously been the primary reason for the negative outlook. However, Moody's now thinks that the probability of this scenario is reduced by E*TRADE's improved delinquency trends -- delinquencies have been stable or trending down for the last nine months -- and the continued seasoning of its portfolio." ECLIPSE AVIATION: Undelivered Aircraft Spat a Core Proceeding ------------------------------------------------------------- Pursuant to the bankruptcy court's sale order, WestLaw reports, the buyer of a Chapter 7 debtor-jet manufacturer's assets acquired the rights, claims, and defenses of the debtor, the estate, and the trustee, including the estate's hypothetical lien rights under the Bankruptcy Code's strong-arm statute. Therefore, an adversary proceeding in which intended buyers of the debtor's airplanes sought a declaration that the aircraft which they had contracted to buy prepetition were not property of the estate was a "core" proceeding over which the bankruptcy court had subject matter jurisdiction. In re AE Liquidation, Inc., --- B.R. ----, 2010 WL 3087443 (Bankr. D. Del.) (Walrath, J.). Albuquerque, New Mexico-based Eclipse Aviation Corporation -- <http://www.eclipseaviation.com/>http://www.eclipseaviation.com/- - manufactured six-passenger planes powered by two Pratt & Whitney turbofan engines. The Company and Eclipse IRB Sunport, LLC sought chapter 11 protection (Bankr. D. Del. Case No. 08-13031) on Nov. 25, 2008, represented by lawyers at Allen & Overy LLP, and estimating assets of less than $500 million and debts of more than $1 billion. The Debtor sought to sell all of its assets pursuant to proposed bid procedures. The Court approved the bid procedures, with substantial modification, on Dec. 23, 2008. On Jan. 23, 2009, the Court entered an order authorizing the sale of substantially all of the Debtor's assets to EclipseJet Aviation International, Inc., finding it had presented the highest and best offer. Despite approval, the sale to EclipseJet was never consummated. As a result, on March 5, 2009, the case was converted to a chapter 7 liquidation proceeding and Jeoffrey L. Burtch was appointed trustee. The Trustee renewed efforts to sell the Debtor's assets. On Aug. 28, 2009, the Court authorized the Trustee to sell the Debtor's assets to Eclipse Aerospace, Inc., for $20 million in cash and a $20 million note. The sale to Eclipse Aerospace, Inc., closed on September 4, 2009. EMAK WORLDWIDE: Gets Court Approval of Several "First Day" Motions ------------------------------------------------------------------ EMAK Worldwide, Inc. received approval from the Bankruptcy Court of several "first day" motions in its voluntary Chapter 11 reorganization, including a number of motions that ensure the smooth continuation of EMAK and its subsidiaries' day-to-day businesses. EMAK obtained authority to pay wages outstanding as of the beginning of the proceeding and to continue providing all regular employee benefit programs. The Court also authorized EMAK and its subsidiaries to use their existing consolidated cash management system and to continue the payment of vendors in the ordinary course of business, which will allow continued operation with minimal disruption. In short, EMAK's operating subsidiaries will continue to operate as usual and make payment of all of their obligations to employees, customers and vendors as before. "I am pleased to report that the relief granted by the Court provides us with ample liquidity to continue normal operations as we execute our business restructuring and address the company's legal liabilities," said Jim Holbrook, EMAK's Chief Executive Officer. "Importantly, our employees, clients and vendors can rest assured that EMAK will have the liquidity it needs to continue to purchase goods and services and provide quality, on- time products and services as we move forward through this restructuring process." EMAK is currently in the process of developing a restructuring plan and expects to exit bankruptcy in early 2011. Most importantly, the Company and its subsidiaries continue to provide all services to existing clients and to successfully develop new business. About EMAK Worldwide Los Angeles, California-based EMAK Worldwide, Inc., a Delaware corporation, fka Equity Marketing, Inc., filed for Chapter 11 bankruptcy protection on August 5, 2010 (Bankr. C.D. Calif. Case No. 10-42779). Jeffrey M. Reisner, Esq., at Irell & Manella LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. An affiliate, EMAK Worldwide Service Corp., A Delaware Corporation, filed a separate Chapter 11 petition on August 5, 2010 (Bank. C.D. Calif. Case No. 10-42784), estimating its assets and debts at $10 million to $50 million. EMAK's other operating subsidiaries are excluded from these voluntary petitions, including its Equity Marketing, Logistix, Neighbor and Upshot agencies and operations in Asia. FAIRVUE CLUB: Plan Confirmation Hearing Scheduled for October 6 --------------------------------------------------------------- Fairvue Club Properties, LLC, et al., submitted to the U.S. Bankruptcy Court for the Middle District of Tennessee a proposed Plan of Reorganization and an explanatory Disclosure Statement, amended as of August 3, 2010. The Debtors relate that they amended the Plan to resolve the objections of American security Bank & Trust Company, First State Bank, Wilson Bank & Trust, and David Rogers, trustee. The Court will consider on October 6 at 9:00 a.m., confirmation of the Plan at Courtroom One, Customs House, 701 Broadway, Nashville, Tennessee. The Court will also hold a pretrial conference on September 27, at 2:00 p.m., to discuss any preliminary confirmation hearing matters. September 10 is fixed as the last day for filing objections, and written acceptances or rejections of the Debtors' Plan. The Plan provides for the assets, liabilities and operations of the Debtors to continue in the same entity. On the effective date of the Plan, an unsecured creditors' fund will be created for the benefit of all unsecured creditors in Class 10 and 11. An agent for the benefit of all allowed unsecured claims in Class 10 and 11, will hold a junior lien on the real property and improvements of Fairvue and Foxland existing as of the effective date of the Plan to secured the payments under the Plan. The allowed claims within Class 10 and 11 will share pro rata the amount generated from the net operating surplus of the Reorganized Debtors. Unsecured claims of Blueridge will not receive any distribution under the Plan. Interests in Fairvue and Foxland will terminate upon the effective date of the Plan. New interests in Fairvue and Foxland will be issued to Leon Moore Family Trust in satisfaction of its allowed secured and unsecured claims. A full-text copy of the Amended Disclosure Statement is available for free at http://bankrupt.com/misc/FairvueClub_DS.pdf About Fairvue Club Properties Gallatin, Tennessee-based Fairvue Club Properties, LLC, filed for Chapter 11 (Bankr. M.D. Tenn. Case No. 09-13807) on December 1, 2009. William L. Norton, III, Esq., at Bradley Arant Boult Cummings LLP, assists the Debtor in its restructuring effort. The Company disclosed $13,287,625 in assets and $17,215,175 in liabilities as of the Petition Date. FILI ENTERPRISES: Taps Brownstein Hyatt as General Bankr. Counsel ----------------------------------------------------------------- Fili Enterprises, Inc., asks for authorization from the U.S. Bankruptcy Court for the Southern District of California to employ Brownstein Hyatt Farber Schreck, LLP, as general bankruptcy counsel, effective as of July 1, 2010. Brownstein Hyatt will, among other things: a. assist the Debtor in the use of cash collateral, postpetition borrowing, and motions concerning the same; b. represent the Debtor in any litigation affecting it in connection with the Chapter 11 case; c. attend meetings and negotiate with representatives of creditors and other parties-in-interest, as necessary; and d. take certain necessary actions to protect and preserve the bankruptcy estate, including prosecuting actions on its behalf, defending any action commenced against the Debtor and representing the Debtor's interests in negotiations concerning all litigation in which it is involved. Neither the Debtor nor Brownstein Hyatt disclosed how the firm will be compensated. Karol K. Denniston, Esq., a partner at Brownstein Hyatt, assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Fili Enterprises Fili Enterprises Inc., which owns the Daphne's Greek Cafe, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in San Diego, California (Bankr. S.D. Calif. Case No. 10-00324), listing assets and liabilities of between $10 million and $50 million. Fili Enterprises operates 67 Greek restaurants mostly in Southern California. Fili also does business under the names Daphne's Greek Express. Unsecured and priority creditors are owed $3.7 million. U.S. Foodservice Inc., owed $1.1 million, is the unsecured creditor with the largest listed claim. Chief Executive George Katakalidis, a former professional soccer player, founded the company in 1988. FIRST BANCORP: Reveals Relevant Price & Exchange Ratios for Offer ----------------------------------------------------------------- First BanCorp. has determined the Relevant Price and Exchange Ratios in connection with its previously communicated offer to exchange up to 256,401,610 newly issued shares of its common stock, par value US$1.00 per share, for any and all of the issued and outstanding shares of Non-Cumulative Perpetual Monthly Income Preferred Stock, Series A through E. In accordance with the terms of the Exchange Offer, as set forth in the Corporation's Preliminary Prospectus, dated August 18, 2010, and related letter of transmittal, the Corporation has determined the Relevant Price and Exchange Ratios for the Preferred Stock referred to below. The Relevant Price is US$1.18, which is the Minimum Share Price. The expiration date for the Exchange Offer is 11:59 p.m., New York City time, on Tuesday, August 24, 2010, unless the Corporation extends the Exchange Offer or terminates it prior to that date. For each share of Preferred Stock accepted in accordance with the terms of the Exchange Offer, the Corporation will issue a number of shares of its Common Stock equal to the "Exchange Ratio," which is the Exchange Value set forth in the table below divided by the Relevant Price of US$1.18. The closing sale price for a share of Common Stock on the New York Stock Exchange on August 20, 2010 was US$0.51, which is less than the Relevant Price. To receive the consideration in the Exchange Offer, holders must validly tender and not withdraw their shares of Preferred Stock prior to the expiration date, and such shares must be accepted for exchange. The Corporation intends to deliver the consideration for the shares that are tendered and accepted in the Exchange Offer on or about August 27, 2010. The dealer manager for the Exchange Offer is UBS Investment Bank, which can be contacted at (888) 719-4210. The Corporation has filed a registration statement, a preliminary prospectus and related exchange offer materials with the Securities and Exchange Commission for the exchange offer to which this communication relates. About First BanCorp First BanCorp is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp and FirstBank Puerto Rico operate under U.S. banking laws and regulations. The Corporation operates a total of 175 branches, stand-alone offices and in-branch service centers throughout Puerto Rico, the U.S. and British Virgin Islands, and Florida. Among the subsidiaries of FirstBank Puerto Rico are First Federal Finance Corp., a small loan company; First Leasing and Rental Corp., a leasing company; FirstBank Puerto Rico Securities, a broker-dealer subsidiary; First Management of Puerto Rico; and FirstMortgage, Inc., a mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Insurance VI, an insurance agency, and First Express, a small loan company. First BanCorp's common and publicly-held preferred shares trade on the New York Stock Exchange under the symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE. * * * As of June 18, 2010, the bank continues to carry Standard & Poor's "CCC+" long-term issuer credit ratings. As reported by the Troubled Company Reporter on June 21, 2010, FirstBank Puerto Rico agreed to a Consent Order with the Federal Deposit Insurance Corporation and the Office of the Commissioner of Financial Institutions of Puerto Rico and that First BanCorp agreed to enter into a written agreement with the Federal Reserve Bank of New York. FirstBank and the Corporation have agreed to take certain actions intended to address various matters, including among others, the development and adoption of a plan to attain certain capital levels, and the reduction of non-performing and classified assets that have impacted FirstBank's financial condition and performance. FIRST CHESTER: Earns $169,000 in Q2 Ended June 30 ------------------------------------------------- First Chester County Corporation reported that net income from continuing operations was $374,000 for the quarter ended June 30, 2010, compared to a net loss of $2.9 million for the quarter ended June 30, 2009. Net interest income was $8.8 million in the second quarter of 2010, compared to $9.5 million for the same period in 2009. First Chester said the improvement in the financial results for the second quarter primarily reflects a significant decrease in the provision for loan and lease losses compared to the prior year's quarter, offset by a slight decrease in net interest income compared to the prior year's quarter. According to the Form 10-Q filed with the Securities and Exchange Commission, the Company's balance sheet as of June 30, 2010, showed $1.168 billion in total assets, $1.112 billion in total liabilities, and stockholders' equity of $55.6 million. John A. Featherman, III, Chairman and CEO of First Chester, was quoted in an earnings release distributed the Company as saying, "The filing of our second quarter financial report indicates a number of significant positive developments for First Chester: we returned to profitability for both the Bank and the holding company; we are now current in our SEC reporting and are compliant with the NASDAQ Capital Markets continued listing requirements; and we now meet the increased minimum capital ratios required by the Office of the Comptroller of the Currency. These developments represent the culmination of a great deal of hard work by all of our employees in the face of significant challenges, and now positions First Chester to move forward on the pending merger with Tower Bancorp." Mr. Featherman added, "We expect to file a registration statement on Form S-4, which will include a joint proxy statement/prospectus and other relevant documents concerning the merger with the SEC within the next few weeks". Going Concern Doubt As reported in the Troubled Company Reporter on August 3, 2010, Grant Thornton LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that on October 16, 2009, the Company's subsidiary, the First National Bank of Chester County, entered into a Memorandum of Understanding with the Office of the Comptroller of the Currency, pursuant to which the Bank Company has agreed, among other things, to develop a comprehensive three-year capital plan. The OCC also mandated higher individual minimum capital ratio requirements. For the year ended December 31, 2009, the Company has incurred a net loss from operations, primarily from the higher provisions for loan losses due to increased levels of non-performing assets, the write-off of goodwill and the establishment of a valuation allowance on the deferred tax assets. These losses have caused the Bank to fall below certain IMCR thresholds as of December 31, 2009, and March 31, 2010. According to the Form 10-Q, the Company is in compliance with the IMCRs as of June 30, 2010. As of June 30, the Bank met the individual minimum capital ratio requirements. The Bank's total risk-based capital ratio was 12.54%, compared to regulatory requirement of 12%; its Tier 1 capital ratio was 11.27%, compared to regulatory requirement of 10%; and its Tier 1 leverage ratio was 8.40%, compared to regulatory requirement of 8%. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?69d8 A full-text copy of the Company's earnings release is available for free at: http://researcharchives.com/t/s?69d9 About First Chester West Chester, Pa.-based First Chester County Corporation (NasdaqCM: FCEC) is a bank holding company. The Company's principal activities are the owning and supervision of First National Bank of Chester County -- http://www.1nbank.com/-- a full service commercial bank. The Bank currently conducts its business through 23 primary banking offices located in Chester, Montgomery, Delaware, Lancaster and Cumberland Counties, Pennsylvania, including its main office. On December 27, 2009, the Company entered into a definitive merger agreement, as amended on March 4, 2010, with Tower Bancorp, Inc., the holding company for Graystone Tower Bank, pursuant to which the Company will merge into Tower. The merger agreement provides that upon consummation of the merger, the Bank will merge into Graystone, with Graystone as the surviving institution. Consummation of the Merger is subject to certain terms and conditions, including, but not limited to, receipt of various regulatory approvals and approval by both Tower's and First Chester's shareholders and First Chester's loan delinquencies not exceeding $90 million in the aggregate. As of June 30, 2010, all regulatory approvals have been received from the bank regulators. However, certain of these approvals contain expiration dates such that extensions may need to be obtained if the merger is not closed prior to the end of the third quarter of 2010. ECLIPSE AVIATION: Undelivered Aircraft Spat a Core Proceeding ------------------------------------------------------------- Pursuant to the bankruptcy court's sale order, WestLaw reports, the buyer of a Chapter 7 debtor-jet manufacturer's assets acquired the rights, claims, and defenses of the debtor, the estate, and the trustee, including the estate's hypothetical lien rights under the Bankruptcy Code's strong-arm statute. Therefore, an adversary proceeding in which intended buyers of the debtor's airplanes sought a declaration that the aircraft which they had contracted to buy prepetition were not property of the estate was a "core" proceeding over which the bankruptcy court had subject matter jurisdiction. In re AE Liquidation, Inc., --- B.R. ----, 2010 WL 3087443 (Bankr. D. Del.) (Walrath, J.). Albuquerque, New Mexico-based Eclipse Aviation Corporation -- <http://www.eclipseaviation.com/>http://www.eclipseaviation.com/- - manufactured six-passenger planes powered by two Pratt & Whitney turbofan engines. The Company and Eclipse IRB Sunport, LLC sought chapter 11 protection (Bankr. D. Del. Case No. 08-13031) on Nov. 25, 2008, represented by lawyers at Allen & Overy LLP, and estimating assets of less than $500 million and debts of more than $1 billion. The Debtor sought to sell all of its assets pursuant to proposed bid procedures. The Court approved the bid procedures, with substantial modification, on Dec. 23, 2008. On Jan. 23, 2009, the Court entered an order authorizing the sale of substantially all of the Debtor's assets to EclipseJet Aviation International, Inc., finding it had presented the highest and best offer. Despite approval, the sale to EclipseJet was never consummated. As a result, on March 5, 2009, the case was converted to a chapter 7 liquidation proceeding and Jeoffrey L. Burtch was appointed trustee. The Trustee renewed efforts to sell the Debtor's assets. On Aug. 28, 2009, the Court authorized the Trustee to sell the Debtor's assets to Eclipse Aerospace, Inc., for $20 million in cash and a $20 million note. The sale to Eclipse Aerospace, Inc., closed on September 4, 2009. FLEETWOOD ENTERPRISES: Emerges from Chapter 11 Bankruptcy --------------------------------------------------------- On August 6, 2010 the U.S. Bankruptcy Court for the Central District of California entered an order confirming the Fourth Amended Joint Plan of Liquidation of the Debtors and the Official Committee of Creditors Holding Unsecured Claims, dated August 5, 2010. On August 23, 2010, the conditions precedent to the effectiveness of the Plan were satisfied or waived. As a result, the Plan became effective as of August 23, 2010. Pursuant to the Plan, each of the executive officers and members of the board of directors of the Company resigned as of the Effective Date. About Fleetwood Enterprises Based in Riverside, California, Fleetwood Enterprises, Inc., was the second largest manufactured housing maker in the U.S. and the largest manufacturer of recreational vehicles over 30 feet in length. Fleetwood Enterprises listed assets of $560 million against debt totaling $624 million in its bankruptcy petition. Fleetwood Enterprises, together with 19 of affiliates, filed for Chapter 11 protection on March 10, 2009 (Bankr. C.D. Calif. Lead Case No. 09-14254). Craig Millet, Esq., and Solmaz Kraus, Esq., at Gibson, Dunn & Crutcher LLP, represent the Debtors in their restructuring efforts. FTI Consulting Inc. is the financial advisor to the Debtors. The Debtors tapped Greenhill & Co. LLC as its investment banker. FORUM HEALTH: PBGC to Take Over Pension Benefit Plans ----------------------------------------------------- Vindy.com reports that the Pension Benefit Guaranty Corp. said retired workers of recently sold Forum Health will not miss any pension checks. According to the report, the PBGC has started the process of taking over bankrupt Forum's defined-benefits pension plan, which officials said could take months. In the meantime, Forum will administer the plan, which has sufficient assets to cover payments to retirees until the federal takeover, according to the PBGC. The PBGC is an unsecured creditor of the Company with a claim of about $170 million. Vindy relates that in July 2009, the PBGC covered about 7,132 working and retired employees at the request of the Company. Forum's quarterly pension-plan contribution was about $1.5 million. As of Dec. 31, 2008, the pension plan's assets of $205,419,808 equaled only 63.7 percent of its $322,631,706 in projected benefit obligations. Forum has received approval from the U.S. Bankruptcy Court to sell its hospital system to Community Systems for $120 million. Final approval of the sale is pending a state review. Community Health is not liable for the Company's pension obligations under the sale agreement, according to Vindy.com. About Forum Health Forum Health and its affiliates filed for Chapter 11 protection on March 16, 2009 (Bankr. N.D. Ohio Lead Case No. 09-40795). Paul W. Linehan, Esq., and Shawn M Riley, Esq., at McDonald Hopkins LLC, serve as lead counsel to the Debtors. The Debtors also tapped Michael A. Gallo, Esq. at Nadler Nadler & Burdman Co., LPA as co- counsel; Kurtzman Carson Consultants LLC as claims, noticing and balloting agent; and Huron Consulting Services LLC as financial advisors. Alston & Bird LLP represents the official committee of unsecured creditors formed in the Chapter 11 cases. In its petition, Forum Health estimated $100 million to $500 million in assets and debts. GENTA INC: Audit Committee Taps EisnerAmper LLP as Accountant ------------------------------------------------------------- Genta Incorporated notified on Aug. 16, 2010, that Amper, Politziner and Mattia LLP, the Company's independent registered public accounting firm, combined its practice with that of Eisner LLP and the name of the combined practice operates under the name EisnerAmper LLP. The Audit Committee of the Company's Board of Directors has engaged EisnerAmper LLP to serve as the Company's new independent registered public accounting firm. About Genta Berkeley Heights, New Jersey, Genta Incorporated (OTCBB: GETA.OB) -- http://www.genta.com/-- is a biopharmaceutical company with a diversified product portfolio that is focused on delivering innovative products for the treatment of patients with cancer. * * * Genta Incorporated's balance sheet at June 30, 2010, showed $24.11 million in total assets, $6.39 million in total current liabilities, $145.17 million in total long-term liabilities, and stockholders' deficit of $127.44 million. GLOBAL BRASS: S&P Assigns 'B' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B' corporate credit rating to Schaumburg, Ill.-based Global Brass and Copper Inc. The rating outlook is stable. At the same time, S&P also assigned a 'B' (the same as the corporate credit rating) issue-level rating to GBC's $315 million senior secured term loan due 2015. The recovery rating is '4', indicating S&P's expectation of average (30%-50%) recovery for lenders in the event of a payment default. These ratings follow S&P's previous assignment of preliminary ratings on July 29, 2010. S&P expects the company to use proceeds from the term loan, combined with borrowings under a new asset-based revolving credit facility, to refinance its existing indebtedness, fund a distribution to the equity sponsor, and to pay fees and expenses related to the transaction. "The 'B' corporate credit rating on Global Brass and Copper reflects the combination of the company's vulnerable business risk profile and aggressive financial risk profile," said Standard & Poor's credit analyst Maurice Austin. The company is exposed to cyclical end markets, including building and construction, defense, electrical and electronics, and industrial machinery and equipment, which can result in wide variations in operating performance. In addition, the company's vulnerable business risk profile reflects its relative small scale and scope compared with other metals producers and distributors. The rating also takes into consideration S&P's view that the company should have adequate liquidity (after giving effect to the financing transactions) to meet its near-term obligations, that it has long- standing customer relationships, and has improved its profitability by lowering its operating costs and enhancing its operational flexibility. The stable rating outlook reflects S&P's expectation that GBC will maintain credit measures at a level appropriate for a 'B' rating. Specifically, S&P expects adjusted debt to EBITDA of about 4.5x by the end of 2010 as S&P has begun to see a gradual recovery in demand in GBC's end markets, resulting in both improved pricing and volumes. S&P would consider a negative rating action if, as a result of deterioration in operating performance during the next several quarters, the company's credit measures weakened to a level that S&P would consider inconsistent with the current 'B' rating. Specifically, if adjusted debt to EBITDA were to exceed and likely remain at more than 6x, which could occur if new housing starts and automobile sales reverse current trends and decline or if they increase at a slower pace than expected. A positive rating action could occur if better operating performance generates free operating cash flow that is used to reduce the debt balance and consequently improve credit measures to a level more consistent with a higher rating. Specifically, if debt to EBITDA improves and is maintained below 4x. GLORIA FONTANILLA: Case Summary & 9 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Gloria T. Fontanilla 5573 N. Desert Saguardo Court Tucson, AZ 85745 Bankruptcy Case No.: 10-26210 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Eric Slocum Sparks, Esq. ERIC SLOCUM SPARKS P.C. 110 S Church Ave #2270 Tucson, AZ 85701 Tel: (520) 623-8330 Fax: (520) 623-9157 E-mail: eric@ericslocumsparkspc.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 nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-26210.pdf GREAT ATLANTIC & PACIFIC: Erivan Karl Haub Reports Equity Stake --------------------------------------------------------------- Erivan Karl Haub, a 10% owner of Great Atlantic & Pacific Tea Co. Inc. common shares, disclosed acquiring 5,000 shares at $2.93 a share on August 19, raising his stake to 340,100 shares. He directly holds those shares. Mr. Haub may also be deemed to indirectly hold: -- 15,550 shares through his spouse; -- 22,495,371 shares through Tengelmann Warenhandelsgesellschaft KG; and -- 1,290,393 through Emil Capital Partners, LLC As of July 26, 2010, the Company had a total of 56,168,776 shares of common stock, $1 par value outstanding. Paul Hertz, executive vice-president of operations at Great Atlantic & Pacific Tea, disclosed in a Form 3 filed with the Securities and Exchange Commission on August 23 that he does not hold any securities in the company. About A&P Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP), founded in 1859, is one of the nation's first supermarket chains. The Company operates 429 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a- Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. The Company's balance sheet at June 19, 2010, showed $2.6 billion in total assets, $897.0 million in total current liabilities, $2.3 billion in total non-current liabilities, $135.0 million series A redeemable preferred stock, and $659.0 million in stockholders' deficit. Great Atlantic carries 'Caa3' probability of default and corporate family ratings from Moody's Investors Service and a 'CCC' corporate credit rating from Standard & Poor's. At the end of July 2010, when Moody's downgraded the SGL rating to SGL-4 (reflecting weak liquidity), Moody's said, "A&P does have sufficient liquidity to meet immediate operating needs, but liquidity is strained over the next four quarters as a result of the company's debt maturity in June 2011." S&P, in July 2010, when it lowered the corporate rating to 'CCC' from 'CCC+', said it "expects weak trends to continue and the company to be significantly cash flow negative." GREENBRIER COS: Fidelity, FMR Report 4.879% of Common Stock ----------------------------------------------------------- Boston-based Fidelity Management & Research Company, a wholly owned subsidiary of FMR LLC and an investment adviser registered under Section 203 of the Investment Advisers Act of 1940, is the beneficial owner of 1,080,969 shares or 4.879% of the common stock outstanding of The Greenbrier Companies Inc. The number of shares of Common Stock of Greenbrier Cos. owned by the investment companies at July 31, 2010 included 114,469 shares of Common Stock resulting from the assumed conversion of $5,500,000 principal amount of GREENBR CV 2.375% 5/15/26 (20.8125 shares of Common Stock for each $1,000 principal amount of debenture). The number of Greenbrier Cos. shares owned by the investment companies at July 31, 2010 included 166,500 shares of Common Stock resulting from the assumed conversion of $8,000,000 principal amount of GREENBRIER CV 2.375% 5/15/26 (20.8125 shares of Common Stock for each $1,000 principal amount of debenture). About Greenbrier Cos. Based in Lake Oswego, Oregon, The Greenbrier Companies Inc. operates in three primary business segments: manufacturing, refurbishment and parts, and leasing and services. The manufacturing segment, operating from four facilities in the United States, Mexico and Poland, produces double-stack intermodal railcars, conventional railcars, tank cars and marine vessels. The refurbishment & parts segment performs railcar repair, refurbishment and maintenance activities in the United States and Mexico. The leasing & services segment owns roughly 8,000 railcars and provides management services for roughly 225,000 railcars. * * * As reported by the Troubled Company Reporter on August 19, 2010, Moody's Investors Service raised its Speculative Grade Liquidity Rating for The Greenbrier Companies to SGL-3 from SGL-4. At the same time, Moody's affirmed the company's existing ratings, including the corporate family rating of Caa1. Greenbrier's rating outlook is negative in consideration of the continued sluggish demand for new railcars and the company's need to address certain refinancing needs. GENERAL GROWTH: Court Sets October 21 Plan Confirmation Hearing --------------------------------------------------------------- Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York approved on August 19, 2010, the Disclosure Statement explaining the Second Amended Joint Plan of Reorganization of General Growth Properties, Inc., and 125 of its debtor affiliates, according to the company's public statement on August 19. "Approval of our Disclosure Statement moves us one step closer to the successful completion of GGP's restructuring," said Adam Metz, chief executive officer of GGP. "Prior to our Chapter 11 filing, GGP had almost $28 billion of mostly short-term debt and a broad range of real estate assets. We are now positioned to emerge from bankruptcy as two focused companies with $15 billion of extended maturities and approximately $7 billion of equity capital provided by our new investors," Mr. Metz said. "One entity, GGP, will remain one of the nation's largest REITs with a more focused business strategy concentrating on high- quality regional shopping centers. The other, Spinco, will have a diverse collection of assets with attractive development opportunities and a new Board and management team whose sole focus will be to maximize the long-term potential of those properties. We are confident our Plan will be confirmed and GGP will emerge from Chapter 11 as scheduled," Mr. Metz continued. August 19 Disclosure Statement Hearing "This is a case where we're not arranging the deck chairs on the Titanic," Judge Gropper was quoted by Reuters as saying, at the Disclosure Statement hearing on August 19, 2010. According to Bloomberg News, GGP resolved most objections to the Disclosure Statement before the August 19 hearing. However, Michael Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, counsel to the Official Committee of Unsecured Creditors, says unsecured creditors still have significant problems with the Plan. Indeed, the Plan Debtors filed with the Court their 2nd Amended Plan on August 17, 2010, to address the objections to the Disclosure Statement. The Creditors' Committee previously disagreed with the discrimination of claims treatment in favor of REP Investments LLC, Fairholme Capital Management and Pershing Square Capital in Classes 4.6, 4.8 and 4.11. Reuters cites the interest on some notes and the dispute with the Hughes Heirs are some of the issues to be worked out. Counsel to the Hughes Heirs told Reuters that most of them already have decided to vote against the 2nd Amended Plan. As noted by GGP in its response to objections to the Disclosure Statement, certain issues raised in the Disclosure Statement objections should be addressed in the context of the confirmation of the Plan. Confirmation Hearing Scheduled for Oct. 21 Judge Gropper set a hearing to consider confirmation of the 2nd Amended Plan on October 21, 2010. A formal order on the Disclosure Statement approval is not yet available in the Court's dockets. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Proposes to Engage in Corporate Structure Deals --------------------------------------------------------------- General Growth Properties, Inc., and its units seek the Court's authority for General Growth Properties Inc., in its sole discretion, to take or cause to be taken any corporate actions permitted by applicable law and the respective Debtor or non- Debtor affiliate's organizational documents, and determined by General Growth to be necessary or appropriate to implement the transactions. To streamline administration of its financial accounting and tax reporting, General Growth plans to merge, dissolve, convert or consolidate certain Debtor and non-Debtor affiliates. These transactions, known as "Corporate Structure Transactions," will either eliminate minority interests or are a step towards the ultimate goal of eliminating minority interests held by approximately six Debtor and fifteen non-Debtor entities, Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, in New York, tells the Court. The aggregate value of all property interests to be transferred, consisting primarily of less than 1% ownership interests in other entities, pursuant to the proposed Corporate Structure Transactions is estimated at approximately $3.1 million. Mr. Youngman says General Growth, as a matter of ordinary course, undertook these types of transactions before the Petition Date. While General Growth's proposed Plan of Reorganization contemplates that it may undertake similar corporate restructuring transactions in connection with or after the effective date of the Plan, General Growth is seeking authority now, in an abundance of caution, so that it may, with respect to these Restructured Entities, proceed with the Corporate Structure Transactions now, prior to confirmation of the Plan, Mr. Youngman tells the Court. These Corporate Structure Transactions are the same type of transactions undertaken outside of Chapter 11 in the ordinary course prior to the Petition Date, he says. General Growth, Mr. Youngman relates, intends to take or cause to be taken certain corporate actions, including, without limitation: (i) causing any or all of the Restructured Entities to be merged into or contributed to certain Debtors or non Debtor affiliates, dissolved or otherwise consolidated or converted; (ii) transferring Assets between or among certain Debtors and non-Debtor affiliates; (iii) changing the legal name of any one or more of the Restructured Entities; and (iv) engaging in other transactions or taking other and further actions permitted by applicable law and the respective Debtor's or non-Debtor affiliate's organizational documents and determined by General Growth to be necessary or appropriate to implement the aforementioned transactions. Diagrams demonstrating the proposed Corporate Structure Transactions on a property-by-property basis are available for free at http://bankrupt.com/misc/ggpcorpchart.pdf For each property affected by the proposed Corporate Structure Transactions, the diagrams provide: (i) a description of the corporate steps necessary to implement the Corporate Structure Transaction; (ii) a structure chart showing the current corporate structure, combined with an illustration of the changes necessary to effectuate the proposed Corporate Structure Transaction; and (iii) a structure chart showing the projected corporate structure upon consummation of the Corporate Structure Transaction. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Wins Nod to Issue Anchor Transactions Indemnities ----------------------------------------------------------------- General Growth Properties, Inc., and its debtor affiliate sought and obtained the Court's permission to: (i) issue indemnities and guaranties in connection with lease of certain real property, including vacant land, buildings or space in buildings in its shopping centers to certain parties -- Anchor Transactions; and (ii) issue certain guaranties in favor of non-Debtor affiliates in connection with certain loan transactions involving those affiliates, without further notice or order from the Court. In the ordinary course, GGP conveys or leases certain real property, including vacant land, buildings or space in buildings in its shopping centers to certain parties. The applicable GGP entity may be required to obtain the consent of its secured lender prior to undertaking all or a portion of the obligations relating to the Anchor Transaction. In connection with certain obligations under the Anchor Transactions, GGP may be obligated under its loan documents with its Secured Lender to provide additional security in the form of cash or an indemnity. As part on an Anchor Transaction, GGP may agree to pay a construction allowance of an agreed upon amount -- Anchor Allowance. In connection with that allowance, a Debtor may provide a guaranty on behalf of a non-debtor affiliate for a capital contribution to be made by the non-debtor affiliate to an Anchor Owner. GGP affiliates also may borrow money on advantageous terms to satisfy an Anchor Allowance subject to their property-level secured mortgage loan documents. Before providing those loans, however, the lender may require a guaranty from a Debtor on behalf of a non-debtor affiliate for the Anchor Allowance Loan. General Growth is negotiating Anchor Indemnities, Anchor Allowance Guaranties, and Anchor Allowance Loan Guaranties in connection with certain pending Anchor Transactions, Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, in New York, relates. General Growth also anticipates the need for one or more Debtors to issue guaranties to lenders in connection with the potential refinancing of three non-Debtor joint venture affiliate property- level mortgage loans, which loans are scheduled to mature within the next four months, Mr. Youngman discloses. Under an Affiliate Guaranty, a Debtor may provide a payment or performance guaranty with respect to all or a portion of the obligations arising under the applicable loan related refinancing, a non-recourse carveout guaranty, an environmental guaranty, or an indemnity for tenant allowances that are unfunded at the time of refinancing. GGP believes that issuance of Anchor Indemnities, Anchor Allowance Guaranties, and Anchor Allowance Loan Guaranties in connection with Anchor Transactions is in the ordinary course of its business. However, to satisfy the need of certain counterparties to the Anchor Transactions for certainty, GGP filed this motion, Mr. Youngman tells the Court. More importantly, Mr. Youngman emphasizes that the Anchor Transactions are key factors by which GGP is able to attract tenants for the Shopping Centers. Through the Anchor Transactions, GGP is able to achieve the confirmed, long-term presence of Anchors at the Shopping Centers and, in turn, increase the likelihood that it can attract and retain additional desirable tenants in the Shopping Centers, he elaborates. This results in Shopping Centers that appeal to a larger customer base and a tenant base that is willing to pay higher rent than GGP would otherwise receive in the absence of the presence of the Anchor at the Shopping Center, he adds. Similarly, the issuance of Affiliate Guaranties will permit continued stability at the various affiliates seeking to refinance debt with upcoming maturities by allowing the affiliate to secure loans on favorable terms, Mr. Youngman points out. Since GGP is an integrated company, those immediate benefits for its affiliate will inure to General Growth through the continued stability and profitability of its Shopping Centers, he maintains. GGP further seeks that any order approving the Indemnities Motion should be effective immediately by waiving the l4-day stay under Bankruptcy Rules 6004(h) of the Federal Rules of Bankruptcy Procedure. If the order is stayed, the Anchor Owners will possibly wait until the order becomes final before commencing construction, thus risking a delay in opening the Anchor, or decide not into enter into the Anchor Transaction with GGP at all, Mr. Youngman stresses. In a related request, GGP asks the Court to shorten the notice period with respect to the Indemnities Motion and set the Indemnities Motion for a hearing on August 19, 2010. Mr. Youngman says the first of the upcoming affiliate debt maturities is scheduled for September 1, 2010. Absent a shortened notice period, GGP may not be able to refinance this joint-venture debt with the most attractive financing available, he asserts. * * * Judge Gropper further ruled that nothing in this order will enhance, increase, limit, or impair the rights of General Growth Properties, Inc., or the Secured Lenders, if any, under the Loan Documents with respect to the Anchor Transactions. Similarly, nothing in the order will modify the Department Store Transaction Order or the Anchor Lease Transaction Order, Judge Gropper added. Judge Gropper also ordered GGP to provide notice to each of the Official Committee of Unsecured Creditors and Official Committee of Equity Security Holders within 14 days after issuing an Anchor Indemnity, Anchor Allowance Guaranty, Anchor Allowance Loan Guaranty or Affiliate Guaranty. Judge Gropper further waived the 14-day stay of Rule 6004(h) of the Federal Rules of Bankruptcy Procedure, and the order will be effective immediately. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Asbestos Rep. Appointment Effective Nov. 13, 2009 ----------------------------------------------------------------- Dean M. Trafelet asked the U.S. Bankruptcy Court to specify the effective date of his appointment as legal representative of individuals who were exposed to asbestos or asbestos-containing products that were manufactured, sold, supplied, produced, distributed, released, or marketed by any of the Debtors but who, prior to confirmation of a Chapter 11 plan for Motors Liquidation Company, have not manifested symptoms of asbestos-related diseases resulting from those exposures. Mr. Trafelet also asked Judge Gerber to direct the Debtors to reimburse him for his professional fees and expenses incurred prior to his Appointment on April 8, 2010, as Future Claimants' Representative, or in the alternative, grant him an administrative expense claim pursuant to Section 503(a) or (b) of the Bankruptcy Code. Sander L. Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, A Professional Corporation, in Dallas, Texas, related that as early as November 2009, the Debtors contacted Mr. Trafelet regarding their intended retention of a future claimants' representative in their Chapter 11 cases. At that time, at the request of the Debtors, Mr. Trafelet began performing valuable services and incurring expenses for the benefit of the Debtors. Virtually all of the services performed during this time period were performed at the behest of the Debtors and their counsel, Mr. Esserman said. The Future Claimants' Representative and his professionals, served their first monthly fee statements on the appropriate notice parties on or about May 20, 2010. The Future Claimants' Representative's first monthly fee statement sought compensation for his services rendered and reimbursement of expenses incurred for the period from November 13, 2009, through and including April 30, 2010. Mr. Esserman specified that Mr. Trafelet's First Monthly Statement sought compensation for professional services rendered in the amount of $32,185 and reimbursement of $2,046 in expenses, the majority of which was incurred at the request of the Debtors and prior to April 8, 2010. The Debtors, however, refuse to compensate the Future Claimants' Representative for the professional fees and expenses that he incurred during the period from November 13, 2009 through and including April 7, 2010. The objected to payment of $21,587 in fees and $1,464.27 in expenses, all of which were incurred performing services for the benefit of the Debtors and all of which were necessary to his role as Future Claimants' Representative, Mr. Esserman told Judge Gerber. Attempts to resolve the dispute over the appropriate effective date of the Future Claimants' Representative's appointment and the compensability of the foregoing fees and expenses have been unsuccessful, he added. No objections to the Future Claimants' Representative's Motion were filed. * * * The Court clarified that Mr. Trafelet's appointment as the Future Claimants' Representative in the Debtors' cases "is effective as of November 13, 2009." Judge Gerber authorized and directed the Debtors to compensate the Future Claimants' Representative for the services he rendered, and expenses incurred during the period from November 13, 2009, through and including April 7, 2010, totaling $23,051, which consists of $21,587 in fees and $1,464 in expenses. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. is 60.8% owned by the U.S. Government. It was formed to acquire the operations of General Motors Corporation through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The deal was closed on July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM remains subject to a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Committee Wins Order for Asbestos Information ------------------------------------------------------------- Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors for Motors Liquidation Co. to serve subpoenas pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, compelling the production of documents by: (i) the Delaware Claims Processing Facility and Claims Resolution Management Corporation for certain trusts created pursuant to Section 524(g) of the Bankruptcy Code; and (ii) General Motors LLC or New GM and the Debtors. The Claims Processing Facilities are with respect to Armstrong World Industries Asbestos Personal Injury Settlement Trust, Babcock & Wilcox Company Asbestos Personal Injury Settlement Trust, Celotex Asbestos Settlement Trust, DII Industries, LLC Asbestos PI Trust, Owens Corning Fibreboard Asbestos Personal Injury Trust-FB Subfund, Owens Corning Fibreboard Asbestos Personal Injury Trust-OC Subfund, United States Gypsum Asbestos Personal Injury Settlement Trust and Manville Personal Injury Settlement Trust. For the reasons stated on the record at the hearing of August 9, 2010, the Court clarified that the term "Mesothelioma Claimants" will mean all claimants specified by the Creditors' Committee who filed a prepetition lawsuit against one or more of the Debtors for mesothelioma. After the Court's entry of (i) the Approval Order and (ii) a confidentiality order governing the treatment of information produced, the Debtors and GM, as applicable, will produce the names and complete Social Security Numbers, to the extent available, of all claimants who filed a prepetition asbestos personal injury lawsuit against one or more of the Debtors, without the need for service of any document requests or subpoenas, to the estimation experts retained in the Debtors' cases by the Creditors' Committee, the Official Committee of Unsecured Creditors Holding Asbestos-Related Claims, the Future Claims Representative and the Debtors. The Estimation Experts are: -- Bates White LLC; -- Legal Analysis Systems, Inc.; -- Analysis, Research and Planning Corporation; and -- Hamilton, Rabinovitz & Associates, Inc. The SSN Information will be provided in an electronic format, linked to the other data contained in the asbestos claims database that the Debtors and GM have previously furnished to the Estimation Experts. Judge Gerber directed Bates White to provide to the Claims Processing Facilities and the Trusts a list of names of the Mesothelioma Claimants, together with certain other identifying information. The Court also permitted the Creditors' Committee to serve document Subpoenas on counsel for the Claims Processing Facilities and Trusts, directing the production of these information with respect to each Trust: (a) the claim information electronically maintained by the Trusts in current data field format for each identifiable Mesothelioma Claimant, but excluding medical and financial information and medical and financial records; (b) the amounts paid to each Mesothelioma Claimant by each Trust; and (c) the claim status of each Mesothelioma Claimant who filed a claim against any Trust but has received no recovery from that Trust. The Claims Processing Facilities and the Trusts will provide notice of the Court's Order to all identifiable Mesothelioma Claimants who have filed a claim against one or more of the Trusts, the Court said. Mesothelioma Claimants will have two weeks from the date of the Notice of Order to object to the disclosure of the Information sought in the Subpoenas. The Trusts and Claims Processing Facility will not be subject to any actions, claims, or demands by Mesothelioma Claimants or any other Party as a result of their good faith compliance with the Court's Order. In the event Objections are filed, the Creditors' Committee and other parties-in-interest will file responses and a hearing on the objections will be scheduled at the convenience of the Court. Prior to service of the Subpoenas, the Creditors' Committee, the Claims Processing Facilities, the Trusts, the Asbestos Claimants Committee, the Future Claims Representative, the Debtors and GM will continue their efforts to reach agreement on the terms of an Anonymity Protocol. In the event that the Creditors' Committee, the Claims Processing Facilities, the Trusts, the Asbestos Claimants Committee, the Future Claims Representative, the Debtors and GM are unable to reach agreement reach agreement on the terms of an Anonymity Protocol prior to service of the Subpoenas, the Creditors' Committee will not issue the Subpoenas, and the parties will instead submit to the Court a stipulation embodying the terms of the Anonymity Protocol. The Court also entitled the Claims Processing Facilities and the Trusts to prompt reimbursement for their reasonable out-of-pocket costs of producing information, but will not be entitled to reimbursement for overhead, other fixed costs, or attorney's fees. Judge Gerber directed the Debtors and GM to produce to the Creditors' Committee, the Asbestos Claimants Committee, and the Future Claims Representative -- without the need for service of document requests or subpoenas by the Creditors' Committee -- the complaints, case-specific interrogatory responses served by plaintiffs, and transcripts of the depositions of the plaintiffs in the approximately 650 Mesothelioma Cases identified on the list that the Creditors' Committee has provided to the Debtors and GM. All reasonable fees and expenses incurred in connection with the production of the Case File Documents by attorneys who represented the Debtors in the 650 Mesothelioma Cases prior to the commencement of these cases will be paid by the Debtors' estates, whether or not such firms have been retained in the Chapter 11 cases pursuant to an order of the Court, the Court ruled. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. is 60.8% owned by the U.S. Government. It was formed to acquire the operations of General Motors Corporation through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The deal was closed on July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM remains subject to a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: New GM Files Prospectus on Initial Public Offering ------------------------------------------------------------------ General Motors Co. filed with the U.S. Securities and Exchange Commission on August 18, 2010, documents in relation to its initial public stock offering. The IPO is the first step in GM's plan to sell stock that would pay back billions of dollars of taxpayer support. The U.S. Government currently owns almost 61% of GM after converting $43 billion of the $50 billion in funding to the automaker into equity. GM Chairman and Chief Executive Officer Edward E. Whitacre, according to an August 5 report from The Detroit Free Press, has asked the U.S. Department of the Treasury sell as large a stake in the Company as possible. "We want the government out. Period. We don't want to be known as Government Motors," the newspaper quoted the CEO as saying. GM's Public Offering is "expected to mark one of the biggest global IPOs," according to Reuters, noting that "the long-running confidential preparations for the IPO were dubbed 'Project Dawn' by the group of bankers, Treasury officials and GM executives led by Chief Financial Officer Chris Liddell." In the SEC disclosure, Mr. Whitacre said that the GM common stock offered by the selling stockholders and the price range have not been determined. Immediately following the IPO, the GM Common Stock to be outstanding is 500,000,000 shares, based on the Shares outstanding as of July 31, 2010, but excludes: * 45,454,545 Shares issuable upon the exercise of warrants held by Motors Liquidation Co. as of July 31, 2010, at an exercise price of $30.00 per share; * 45,454,545 Shares issuable upon the exercise of warrants held by MLC as of July 31, 2010, at an exercise price of $55.00 per share; and * 15,151,515 Shares issuable upon the exercise of warrants held by the UAW Retiree Medical Benefits Trust (New VEBA) as of July 31, 2010 at an exercise price of $126.92 per share. Holders of GM Stock are entitled to one vote for each share of common stock held. GM intends to apply for listing of the common stock on the New York Stock Exchange and the Toronto Stock Exchange, Mr. Whitacre said. IPO Underwriters Under the terms and subject to the conditions in an underwriting agreement dated August 18, 2010, these Underwriters have severally agreed to purchase, and GM has agreed to sell, undisclosed shares of Series B Preferred Stock: (1) Morgan Stanley & Co. Incorporated (2) J.P. Morgan Securities Inc. (3) Goldman, Sachs & Co. (4) Merrill Lynch, Pierce, Fenner & Smith Incorporated (5) Barclays Capital Inc. (6) Citigroup Global Markets Inc. (7) Credit Suisse Securities (USA) LLC (8) Deutsche Bank Securities Inc. (9) RBC Capital Markets Corporation (10) UBS Securities LLC Morgan Stanley and J.P. Morgan are acting as representatives of the Underwriters. As previously reported, GM secured a $5 billion credit facility with the Underwriters, each of which committed up to $500 million to the credit line. There is a chance other entities could sign in light of the high demand for the loan. The individual commitments amount could shrink but the Facility would likely remain at $5 billion. The revolving Credit Facility allows GM to borrow money and bolster the Company's balance sheet. It also provides "a financial cushion" should the Company's plans for recovery encounter roadblocks, the Wall Street Journal said. The Underwriters do not intend sales to discretionary accounts to exceed 5% of the total number of shares of Series B preferred stock offered by them, according to Mr. Whitacre. In its SEC filing, GM did not disclose the estimated net proceeds from the concurrent offering of its Series B preferred stock. "We intend to use the anticipated Net Proceeds from the concurrent offering of our Series B preferred stock for general corporate purposes," Mr. Whitacre told the SEC. Dividend Policy "We have no current plans to pay dividends on our common stock," Mr. Whitacre added. "Our payment of dividends on our common stock in the future will be determined by our Board of Directors in its sole discretion and will depend on business conditions, our financial condition, earnings, liquidity and capital requirements, the covenants in our VEBA Note Agreement, and other factors." "So long as any share of our Series A Preferred Stock or our Series B preferred stock remains outstanding, no dividend or distribution may be declared or paid on our common stock unless all accrued and unpaid dividends have been paid on our Series A Preferred Stock and our Series B Preferred Stock," Mr. Whitacre clarified. Capitalization GM has set forth its actual capitalization as of June 30, 2010, which will be adjusted to: (i) the issuance and sale of shares of Series B Preferred Stock, which is contingent upon the closing of the offering of common stock; and (ii) GM's payment of underwriting discounts and commissions and estimated offering expenses in connection with the issuance and sale of the Series B Preferred Stock. As of June 30, 2010 Actual, Unaudited ------------------- Cash and cash equivalents $26,773,000,000 (Excluding restricted cash & marketable securities) Short-term debt, including current portion of long-term debt 5,524,000,000 Long-term debt 2,637,000,000 Series A Preferred Stock 6,998,000,000 Stockholders' Equity - Common Stock 5,000,000 Capital surplus 24,052,000,000 Accumulated deficit (2,195,000,000) Accumulated other comprehensive income 1,153,000,000 ------------------- Total Stockholders' Equity 23,015,000,000 ------------------- Total Capitalization $38,174,000,000 =================== The balance sheet classification of the Series B preferred stock will be determined in accordance with applicable accounting requirements upon closing of the common stock offering and issuance of such preferred stock. GM's Prospectus filed on Form S-1 is available with the SEC at http://ResearchArchives.com/t/s?69aa About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. is 60.8% owned by the U.S. Government. It was formed to acquire the operations of General Motors Corporation through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The deal was closed on July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM remains subject to a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Old GM Proposes 3rd Amendment to APS Engagement --------------------------------------------------------------- Motors Liquidation Company seeks the authority of U.S. Bankruptcy Judge Robert Gerber to further amend the terms of their engagement letter with AP Services, LLC, dated June 7, 2010, under Section 363 of the Bankruptcy Code. APS was retained to provide crisis management and restructuring services to the Debtors. Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, in New York, relates that pursuant to a Third Amendment, the terms of APS's engagement are to be amended to adjust various payment terms as agreed to by the United States Department of the Treasury. Notably, all amounts payable to APS pursuant to its engagement by the Debtors are payable from the proceeds of the debtor-in- possession credit agreement provided by the U.S. Treasury, pursuant to which $1,175,000,000 was loaned to Motors Liquidation to fund the wind-down of the Debtors' estates, Mr. Miller says. Mr. Miller recalls that in August 2009 and November 2009, the APS Engagement was amended to, among other things, to clarify (i) the services that APS and its affiliates would be providing to General Motors Strasbourg SAS, a non-Debtor foreign subsidiary of the Debtors; and (ii) the payment arrangements to APS with respect to such services. As the administration of the Chapter 11 cases has progressed -- including with respect to the Debtors' sale sale of substantially all their assets pursuant to Section 363 of the Bankruptcy Code to NGMCO, Inc., a U.S. Treasury-sponsored purchaser, -- it has become apparent that the compensation structure contained in the Amended APS Engagement Letter "was not appropriately designed and, in fact, provided inappropriate incentives for APS," Mr. Miller emphasized. Mr. Miller cited that, among other things, APS' ability to obtain as an incentive payment a portion of the funds returned to the DIP Lenders with respect of the DIP Facility did not serve to promote a prompt and efficient resolution of environmental-related issues as to property owned by the Debtors. Additionally, he noted, the Incentive Payments "based on expeditious distributions to prepetition creditors did not necessarily promote the orderly administration of [the Debtors'] estates and the appropriate manner to address disputed or unliquidated claims." Recognizing these factors, the Third Amendment was formulated. It has the full support of the UST, "which . . . is the party with the real economic stake in the compensation structure of the engagement of APS by the Debtors," according to Mr. Miller. The Third Amendment provides for certain modifications to the Amended Engagement Letter which, in principal part, provides for these terms: (1) The Hourly Fee Reductions will be deleted and replaced with hourly fees that will be paid at rates as set forth in the Engagement Letter, which rates have been updated in the ordinary course for the 2010 calendar year and as they may be further modified. The hourly rate changes will be retroactive to July 10, 2009, and through April 30, 2010, this adjustment aggregates approximately $5.3 million. This retroactive adjustment will be payable by the Debtors upon approval of the Third Amendment. (2) The existing discretionary fees provided for in the Amended Engagement Letter will be replaced in their entirety with these terms: (a) If the total unsecured claims pool is less than $35 billion, APS will be paid a Discretionary Fee of $5.0 million. If the total unsecured claims pool is equal to or greater than $35 billion but less than $42 billion, APS will be paid a Discretionary Fee of $2.5 million. If the Claims pool is between $35 billion and $42 billion, the Discretionary Fee will be adjusted proportionately. In the event that the total unsecured claims pool exceeds $42 billion, APS will not be paid a Discretionary Fee. (b) When 70% or more of each of the common stock and warrants of the Purchaser, received by the Debtors in connection with the 363 Transaction, is distributed to the Debtors' unsecured creditors under a plan, APS will be entitled to a Discretionary Fee of $2.5 million. (c) In the event that the Debtors confirm a plan of liquidation that becomes effective, APS will be paid an Incentive Fee of $7 million. Although the proposed amended compensation terms provide APS with accelerated payment and certainty of amounts to be paid, it is estimated by APS that the incentive payments provided for in the Third Amendment are likely to result in 35% less in amount than would be paid to APS if the Third Amendment did not become effective, Mr. Miller notes. All Discretionary and Incentive Fees that may be payable to APS are payable from the proceeds of the DIP Facility and would not in any way impact distribution to unsecured creditors or other parties-in-interest in these cases, Mr. Miller clarifies. APS Files for Approval of $6.5MM Success Fee Subsequently, APS sought the approval and payment of its contingent success fee for $6,500,000. The Success Fee of $13 million was earned by APS for work performed prior to July 10, 2009, and was payable $6.5 million at closing and $6.5 million on July 10, 2010, which is the first anniversary of the closing of the [363 Sale," relates APS Authorized Representative Albert A. Koch. Mr. Koch also submitted to Judge Gerber supplemental applications and a declaration detailing the work performed by his firm in the Debtors' cases, in support of the Success Fee Application. Objections Tracy Hope Davis, the Acting United States Trustee for Region 2, contends that several features of the proposed compensation scheme in the Third Amended Engagement Letter need "further elaboration" to enable a determination on whether the revised compensation structure is a sound exercise of the Debtors' business judgment. Part of AP Services' new compensation scheme provides for a retroactive change in the firm's previously discounted hourly fee, which provides the firm with an additional estimated $5.3 million in hourly compensation. It is not clear how the Debtors arrived at this $5.3 Million figure, Ms. Davis says. With respect to the new $7.0 million incentive payment for APS whenever a plan of reorganization may go effective -- in place of a prior confirmation incentive payment of $2.5 million, and in place of other current incentive payments --, the extent to which priority claims are asserted against the Debtors; the extent to which priority claims are reduced; and the best information currently available regarding the amount of money projected to be returned to the U.S. Treasury, must be determined. Substantial uncertainty also surrounds the Debtors' assertion that "the incentive payments provided for in the Third Amendment are likely to result in 35 percent less than would be paid to [AP Services] if the Third Amendment did not become effective." How AP Services arrived at this 35 percent reduction, and the incentive fees at issue, has not been publicly disclosed, Ms. Davis tells Judge Gerber. The U.S. Trustee also noted that the Application for Success Fee fails to annex the time records that AP Services was required to file. Accordingly, the Application "falls short of providing the information required to assess whether the payment is reasonable within the meaning of [S]ections 330 and 331 [of the Bankruptcy Code]." The Official Committee of Unsecured Creditors said, in a limited objection to the Debtors' Motion, that (i) the effective date of a Chapter 11 plan in the Debtors' cases, and (ii) the timing of distributions are "timing benchmarks" were not within APS' control. Accordingly, the Creditors' Committee understands why APS wants to eliminate them. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, in New York, relates however, that the Benchmarks provided some public guidance to creditors on timing. "The Committee believes that there now needs to be more public disclosure of the contemplated timeline for emergence and distribution," Mr. Mayer notes. Against this backdrop, the Creditors' Committee asks the Court to approve the proposed Fourth Amendment to the Engagement Letter, conditioned on the filing of monthly status reports by APS. The monthly status reports should contain these types of information: * status of a Chapter 11 plan and disclosure statement; * after the filing of a Chapter 11 plan and disclosure statement, the expected dates for a disclosure statement hearing and confirmation hearing; * after confirmation of a plan, the expected date for an effective date; and * after the effective date, the progress in distributions to unsecured creditors and the expected date for distributing 70% of the common stock and warrants to unsecured creditors. The proposed Monthly Reporting will provide necessary disclosure to the Debtors' many constituents. It is an appropriate predicate to the award of discretionary and incentive payments, Mr. Mayer notes. In a separate filing, Fee Examiner Brady C. Williamson sought to defer the consideration of the Application for Success Fee and the relevant portions of the Debtors' Motion "because they are premature." "Notwithstanding the extraordinary efforts of the Debtors or the "success" of the [Chapter 11] proceeding[s] to date, there is not -- at least not yet -- basis for determining the reasonableness of the Debtors' requests, which aggregate at least $11 million," Mr. Williamson says. Debtors Reply The Debtors have provided the U.S. Trustee all time records from July 1, 2009 through the last monthly invoices, comprising approximately 4,000 pages. The Debtors also provided APS's June 2009 invoice and time records, Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, in New York, says. The Debtors do not see the benefit to any party of a further delay of the Motion and the Success Fee Application, as requested by the Fee Examiner. "At this juncture, all parties should have all of the necessary information pertinent to the matter before the Court and the status of APS's retention should be resolved," Mr. Miller notes. The Debtors agree with the Creditors' Committee that public disclosure is important. The Debtors disagree, however, that APS, in its capacity as a firm supplying interim management, should be issuing any reports regarding case status. "The Debtors will continue to work cooperatively with the Committee to explore potential avenues of public disclosure by the Debtors and the Committee regarding the status of these cases that are helpful and not potentially misleading," according Mr. Miller. Stephen H. Case also submitted a declaration on behalf of the Debtors, to further support the Motion. Subsequently, Amy Caton and Thomas Moers Mayer, on behalf of the Creditors' Committee, filed with the Court declarations supporting the Debtors' Motion. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. is 60.8% owned by the U.S. Government. It was formed to acquire the operations of General Motors Corporation through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The deal was closed on July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM remains subject to a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GEORGE W PARK: Court Accepts Blackstreet's $12.8-Mil. Offer ----------------------------------------------------------- Jeffrey Collins at The Associated Press reports that a federal bankruptcy judge on Monday accepted an offer from Chevy Chase, Md.-based Blackstreet Capital to acquire South Carolina's troubled Park Seed for $12.8 million. The AP reports that, as part of the deal, Blackstreet agreed to keep the company's roughly 200 permanent employees on the payroll for at least three years. If the firm doesn't, it will have to pay $1.5 million in penalties split between the estate of company founder George W. Park, the state and the county. The AP says the Court gave approval after frenzied negotiations in the courtroom and hallway that drove the best bid up $4 million in four hours. The AP says the Debtor's creditors were pleased with the offer. The AP also notes that the first offer to buy was just more than $1 million. According to the AP, bankruptcy trustee Stan Neely, who took over in April, recommended Blackstreet's bid over the slightly higher bid of Garden Alive because of the promise to keep jobs in Greenwood County. The AP relates Mr. Neely said he realized Park Seed's good name and deep roots in South Carolina were worth a lot more. The Troubled Company Reporter, citing Lesley Lane at GwdToday News, reported Monday that George W. Park Seed Company named J & P Park Acquistion, an affiliate of Blackstreet Capital, as stalking- horse bidder for the assets. J & P Park had an initial offer of $7.09 million and deposited $400,000 as part of the purchase. About Park Seed 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. In its schedules, the Company disclosed $8.33 million in assets and $44.79 million in liabilities. GROVE STREET: Can Use Secured Creditors' Cash Until August 31 ------------------------------------------------------------- The Hon. Judith H. Wizmur of the U.S. Bankruptcy Court for the District of New Jersey authorized, on an interim basis, Grove Street Realty Urban Renewal LLC to access the secured creditors' cash collateral until August 31, 2010. As of the Petition Date, GE Business Financial Services, Inc. has a secured claims of approximate principal amount of $31,390,752 secured by a subsisting first lien and security interest in certain real property located at 370 Grove Street in the Township of West Deptford, County of Gloucester, New Jersey. TD Bank, N.A. has a secured claim of $3,000,000 secured by a subsisting first lien and security interest in certain rela propoerty located at 196 and 204 Grove Avenue, West Deptford, New Jersey. The Debtor may use the proceeds, products, rents, or profits of the property and the fees, charges, accounts or other payments for the use or occupancy of facilities to fund its operations postpetition. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the secured creditors (i) replacement liens to the same extent and priority that the secured creditors held prepetition; and (ii) interest payments. The Court is yet to schedule a hearing on the Debtor's continued use of the cash collateral. About Grove Street Sewell, New Jersey-based Grove Street Realty Urban Renewal, LLC, owns certain parcels of real property at 370 Grove Street in the Township of West Deptford, County of Gloucester, State of New Jersey, commonly known as RiverWinds Cove Apartments. The land consists of improvements generally consisting of two buildings containing in the aggregate approximately 215,832 square feet of Class A residential apartment space, comprised of approximately 200 units, and having approximately 259 parking spaces. The Company filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. D.N.J. Case No. 10-30427). Albert A. Ciardi, III, Esq., at Ciardi Ciardi & Astin, P.C., assists the Debtor in its restructuring effort. The Company estimated its assets and debts GULFSTREAM CRANE: Plan Exclusivity Extended Until November 5 ------------------------------------------------------------ The Hon. Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida extended, at the behest of Gulfstream Crane, LLC, the exclusive periods within which to file a plan of reorganization and to solicit affirmative votes from impaired classes of claims or interests. The Debtor had said that it needed the exclusive periods extended for 60 days, saying that it is yet uncertain whether further negotiations or amendments to the plan will be necessary. The Debtor had asked the exclusive filing period to be extended until September 6, 2010, and the exclusive solicitation period until November 5, 2010. The exclusive solicitation period is extended through and including November 5. As reported by the TCR on July 21, 2010, the Debtor has filed with the Court a proposed Plan of Liquidation. The Debtor relates that the Plan will represent a request to sell all of its right, title and interest in and to the assets to the designee of Prophet Equity LP, free and clear of claims, liens, interests and encumbrances. The confirmation order will constitute approval of the sale. About Gulfstream Crane Pompano Beach, Florida-based Gulfstream Crane, LLC -- dba General Crane -- is engaged primarily in the business of supplying and renting crane, hoist and rigging equipment. The Company operates and maintains facilities in Florida, Georgia and Texas. The Company filed for Chapter 11 bankruptcy protection on December 8, 2009 (Bankr. S.D. Fla. Case No. 09-37091). Michael D. Seese, Esq., who has an office in Fort Lauderdale, Florida, assists the Company in its restructuring effort. The Company estimated $50 million to $100,000 million in assets and debts in its Chapter 11 petition. HAMBONE DOG: Taps Nigle B. Barrow as Bankruptcy Counsel ------------------------------------------------------- Hambone Dog Properties, LLC, asks for authorization from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Nigle B. Barrow, Jr., as bankruptcy counsel. Mr. Nigle will, among other things: a. provide analysis of the Debtor's financial situation, and render advice and assistance to the Debtor in determining whether to file for Chapter 11 protection; b. prepare and file any petition, schedule, statement of affairs, and other documents required by the Court; c. represent the Debtor at the meeting of creditors, confirmation hearing and any adjourned hearings thereof; and d. represent the Debtor in adversary proceedings and other contested bankruptcy matters. Mr. Nigle will be paid $250 per hour for his services. Mr. Nigle assures the Court that he is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Sanford, North Carolina-based Hambone Dog Properties, LLC, filed for Chapter 11 bankruptcy protection on July 6, 2010 (Bankr. E.D.N.C. Case No. 10-05375). The Company estimated its assets and debts at $10,000,001 to $50,000,000. HARRY MACKLOWE: Boston Properties to Acquire 510 Madison Avenue --------------------------------------------------------------- Boston Properties, Inc. has entered into a purchase and sale agreement with an affiliate of Harry Macklowe to acquire fee title to 510 Madison Avenue in New York City. Under the agreement, at closing the Company will acquire the property by paying a purchase price equal to the aggregate principal and accrued interest on the property's existing senior mortgage loan and senior mezzanine loan totaling approximately $280.5 million. Previously, on August 10, 2010, the Company had acquired for cash from a third party the junior mezzanine loan that was secured by a pledge of a subordinate ownership interest in the property for a purchase price of approximately $22.5 million. Upon closing, the Company will be the sole owner of the property. 510 Madison Avenue is a newly-constructed, vacant 350,000 square foot Class A office tower located in the highly desirable Plaza District of midtown Manhattan. The building was conceived and developed by Harry Macklowe of Macklowe Properties and designed by Harry Macklowe, SLCE Architects and Moed de Armas & Shannon Architects. Following the closing, Harry Macklowe will serve as a Project Consultant and Advisor and as Co-Chairman of the Marketing and Leasing Advisory Committee for the property, and he may be entitled to additional payments depending on the performance of the property. CB Richard Ellis, Inc., through Paul Amrich, will be maintained as the rental agent for the property. Concurrently with the execution of the purchase and sale agreement, the Company delivered a $5.0 million deposit, which at closing will be applied to the purchase price. The Company will also be responsible for all transfer taxes incurred in connection with this transaction, as well as the Company's other acquisition costs, which are estimated to be an aggregate of between $12 and $15 million. The closing is scheduled to occur on September 1, 2010 and is subject to customary closing conditions. There can be no assurance that the acquisition will be completed on the terms currently contemplated, or at all. Commenting on the transaction, the Company's Chairman and Chief Executive Officer, Mortimer B. Zuckerman, said "We are once again pleased to work with Harry Macklowe to acquire an office building with outstanding design in a premier location. Our previous relationship with Harry, which began with the acquisition of the General Motors Building and other assets in 2008, has fostered a productive relationship that helped us successfully acquire 510 Madison Avenue. 510 Madison Avenue is the only new office development in the Plaza District and, given its modern design and amenities, it is well positioned to attract the highest-quality tenants." Mr. Macklowe, Chairman of Macklowe Properties, added "I am pleased to continue the business relationship and friendship which Mort Zuckerman and I have enjoyed together for many years, and I look forward to working with Boston Properties to complete 510 Madison Avenue and make the building a tremendous success." About Boston Properties Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class A office space, one hotel, two residential properties and three retail properties. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in five markets -- Boston, Midtown Manhattan, Washington, DC, San Francisco and Princeton, NJ. HAWAII BIOTECH: Assets Sold to Merck Unit for $3.1 Million ---------------------------------------------------------- Bill Rochelle, columnist at Bloomberg News, reports that Hawaii Biotech Inc. was authorized early this month to sell its assets for $3.1 million to a Merck & Co. Inc. unit. Before an auction in July, the company planned on selling the business for $1.44 million to be paid by a credit against pre-bankruptcy secured debt. Hawaii Biotech Inc. -- http://www.hibiotech.com/-- researches and develops vaccines for infectious diseases. The Company filed for Chapter 11 protection on Dec. 11, 2009 (Bankr. D. Hawaii Case No. 09-02908). Jerrold K. Guben, Esq., at O'Connor Playdon & Guben, represents the Debtor in its restructuring effort. The Debtor estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. HOTELS UNION: Confirmation Hearing on Friday; LNR Balks at Plan --------------------------------------------------------------- The U.S. Bankruptcy Court in Wilmington, Del., will consider confirmation of the bankruptcy plan filed in the Chapter 11 proceedings of Hotels Union Square Mezz 1 LLC and affiliate Hotels Union Square Mezz 2 LLC at a hearing Friday. Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports that LNR Partners Inc. -- the special servicer of the W New York- Union Square's $115 million mortgage -- is urging the bankruptcy judge in Wilmington, Del., to block the plan, which purports to transfer ownership of the high-end hotel to Host Hotels & Resorts Inc. According to Dow Jones, LNR Partners told the Court on Monday the mortgage debt holders it represents haven't consented to the plan because it would "clearly negatively impact the senior mortgage loan and run afoul of the senior mortgage loan documents." Among the mortgage holders' concerns are certain liability releases granted under the plan and a proposed lease change. Hotels Union Square Mezz 1 and Hotels Union Square Mezz 2 indirectly own the W New York-Union Square and are on the hook for two slices of debt tied to the hotel. According to Dow Jones, under the Plan: -- Host, a publicly traded real-estate investment trust that owns numerous high-end hotels, would acquire the Mezz 1 unit's stake in the company that directly owns the hotel; -- The sale proceeds, the amount of which haven't been disclosed, would then be used to satisfy the $61 million claim of DekaBank Deutsche Girozentrale, the Mezz 1 unit's sole secured creditor; and -- The Mezz 2 unit's sole secured creditor, Dubai World private-investment arm Istithmar World Capital, would receive the right to become a minority stakeholder in the hotel and will no longer face accusations that it isn't the rightful holder of its $37 million claim. -- Pending litigation involving the companies and their secured creditors and provides various liability releases. The report also notes the mortgage holders, led by trustee Wells Fargo & Co., aren't slated to receive anything under the plan because the company of which they are creditors -- the hotel's direct owner-isn't under bankruptcy protection. The report says the mortgage holders' claims rank at the top of the heap of the complex capital structure set up to finance Istithmar's $285 million acquisition of the hotel in October 2006. In addition to the $115 million mortgage, there were three levels of junior mezzanine debt. The report notes Istithmar lost control of the hotel at a foreclosure auction last December, at which an affiliate of Lubert-Adler Real Estate Funds won the bidding. About Hotels Union Philadelphia, Pennsylvania-based Hotels Union owns the W New York Union Square hotel, located on Park Avenue South. Hotels Union is controlled by an affiliate of Lubert-Adler Real Estate Funds known as LEM. Hotels Union Square Mezz 1 LLC, dba Istithmar Hotels Union Square Mezz 1 LLC, filed for Chapter 11 bankruptcy protection on March 23, 2010 (Bankr. D. Del. Case No. 10-10971). The company estimated its assets and debts at $50,000,001 to $100,000,000. Hotels Union Square Mezz 2 LLC, dba Istithmar Hotels Union Square Mezz 2 LLC, filed for Chapter 11 bankruptcy protection on March 25, 2010 (Bankr. D. Del. Case No. 10-11001). The company estimated its assets and debts at $10,000,001 to $50,000,000. Steven M. Yoder, Esq., at Potter Anderson & Corroon LLP, assists the Debtors in their restructuring effort. HUDSON'S FURNITURE: Court Amends Final OK on Cash Collateral Use ---------------------------------------------------------------- The Hon. Karen S. Jennemann of the U.S. Bankruptcy Court for the Middle District of Florida has approved an amendment on the final order allowing Hudson's Furniture Showroom, Inc., to use the cash collateral. As reported by the TCR on July 27, 2010, Judge Jennemann granted final approval on the Debtors' use of the cash collateral of Furniture Brands International, Inc., and LA-Z-BOY, Incorporated and its subsidiaries. The amended final now states that Furniture Brands has a valid and perfected first priority lien and security interest in the amount of at least $1,585,753, and that the Debtor waives and releases all claims against Furniture Brands. The waiver does not impact the ability to object to FBI's unsecured claim or to contest any secured claim in excess of $1,585,753. About Hudson's Furniture Sanford, Florida-based Hudson's Furniture Showroom, Inc., owns and operates several retail furniture stores in Florida, including stores in the cities of Sarasota, Lakeland, Pinellas Park, Tampa, Brandon, Melbourne, Ormond Beach, Altamonte Springs, Ocoee, Orlando and Clearwater, Florida. The Company filed for Chapter 11 bankruptcy protection on March 3, 2010 (Bankr. M.D. Fla. Case No. 10-03322). Justin M. Luna, Esq.; Mariane L. Dorris, Esq.; and Victoria I. Minks, Esq., at Latham Shuker Eden & Beaudine LLP, assists the Company in its restructuring effort. The Company estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. The Company's affiliates -- A&J Rentals, LLC; Hud Twenty-Five Ocoee, LLC; Hud Twenty-Three Tampa, LLC; and Hud-Five, LLC -- filed separate Chapter 11 petitions on October 13, 2009. INERGY LP: Moody's Upgrades Corporate Family Rating to 'Ba2' ------------------------------------------------------------ Moody's Investors Service upgraded Inergy, L.P.'s Corporate Family Rating to Ba2 from Ba3, its Probability of Default Rating to Ba2 from Ba3, and raised its senior unsecured notes rating to Ba3 from B1. Moody's also affirmed the SGL-3 Speculative Grade Liquidity Rating. The rating outlook is stable. Ratings Rationale "The upgrade reflects substantial improvements in NRGY's operating and financial performance leading to expectations for enhanced business and seasonal diversification from growing natural gas storage operations in the U.S. northeast, and increased fee-based income from the midstream segment helping reduce cash flow volatility," said Ken Austin, Moody's Vice President. "The upgrade also considers the announced merger of Inergy Holdings L.P. -- the general partner -- into NRGY, which will eliminate NRGY's incentive distribution rights owned by NRGP, create a simplified corporate structure, and support its credit profile." The company has been able to grow sales volume and maintain margins at healthy levels through small-scale acquisitions and cost cutting initiatives despite a general trend towards conservation in the industry and lower propane prices. NRGY has also shown the willingness and ability to issue equity to support liquidity and fund growth and acquisition capex as evidenced by approximately $401 million of equity issuances since the beginning of 2009. The growth of the midstream sector has also enhanced Inergy's overall profile. The gross margin contribution from this business (approximately 40% as of June 30, 2010), provides the company with a steady cash flows stream primarily through its natural gas storage segment. The collapsing of the general partnership into NRGY through an equity exchange transaction is a credit positive as it does not erode liquidity or require funding from the debt or equity markets, decreases NRGY's cost of capital by eliminating the IDRs and the GP's economic interest, and simplifies reporting, governance and improves transparency through a streamlined corporate structure. The merger is expected to close in the fourth quarter of 2010, subject to GP voter approval and customary conditions. While Moody's recognizes these positive developments, NRGY's leverage (debt/EBITDA of 4.14x at June 30, 2010) remains elevated for the rating category and is still on the high end for the rating. Although this leverage is partially tempered by Inergy's stable midstream business and is in-line with the other "pure- play" midstream MLP peers, the upgrade assumes that leverage will not increase from current levels and decline below 4.0x on a sustainable basis. NRGY's liquidity is expected to be adequate in 2010 and 2011 which is captured in Moody's SGL-3 rating. Internally generated cash flow should cover maintenance capital expenditures, interest payments, working capital requirements, and cash distributions to unit holders over the next 12 to 15 months. The outlook and ratings would be pressured in leverage rises from current levels and remains above 4.0x for an extended period. Conversely, a positive outlook or upgrade would be considered if the company continues to improve its business profile and brings leverage to well under 3.5x on a sustainable basis. The last rating action on NRGY was on January 28, 2009, when Moody's affirmed the company's Ba3 CFR and changed the outlook to stable from positive. Inergy, headquartered in Kansas City, MO, is a publicly traded master limited partnership that owns and operates one of the largest geographically diverse retail and wholesale propane supply, marketing, and distribution businesses in the United States. NRGY also owns and operates a natural gas storage facility located approximately 150 miles northwest of New York City and a natural gas liquids business located near Bakersfield, California. INNERGEX RENEWABLE: S&P Assigns 'BB' Rating on Preferred Shares --------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'BBB-' long-term corporate credit rating to Longueuil, Que.-based Innergex Renewable Energy Inc. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB' global scale and 'P-3' Canada scale issue-level ratings on the company's C$85 million cumulative five-year rate reset preferred shares, series A. "The ratings on Innergex reflect S&P's view of the company's diversified portfolio of power generation assets that long-term power purchase agreements with strong-to-excellent credit quality counterparties underpin," said Standard & Poor's credit analyst Bato Kacarevic. "S&P believes hydrology and wind flow risk, construction risk, and highly-leveraged projects counterbalance these strengths," Mr. Kacarevic added. The rating on the preferred shares reflects S&P's methodology on hybrid instruments and the credit rating of Innergex. The dividend on the preferred shares will be reset every five years and initially be approximately 5.25% 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. Innergex has interests in 17 electricity generating facilities (14 run-of-river and three wind farms) with a total net installed capacity of 325 megawatts. The facilities benefit primarily from long-term contracts with government-owned utilities in Quebec (A+/Stable/A-1+), Ontario (AA-/Stable/A-1+), and British Columbia (AAA/Stable/A-1+). Based on average annual power production, run- of-river assets represent 73% of the operating asset portfolio. The facilities are 100% contracted and have no merchant exposure or dispatch risk. S&P expects renewable power generation to remain the cornerstone of the company's asset mix, a favorable strategy, in S&P's view. At June 30, 2010, total debt outstanding was C$479.5 million (including convertible debentures as debt). The stable outlook reflects S&P's expectation that Innergex's portfolio of power generation facilities will continue to operate under long-term contracts with strong off-takers and generate fairly predictable power. Any positive rating action would come from a materially stronger balance sheet. Conversely, a downgrade is possible if the financial structure becomes more aggressive, including substantially more debt at the holding company level and funds from operations interest coverage of below 3x, or if the company experiences a meaningful setback in project construction. INOVA TECHNOLOGY: Posts $7-Mil. Net Loss in Fiscal 2010 ------------------------------------------------------- Inova Technology Inc. filed its quarterly report on Form 10-K, reporting a net loss of $7,063,039 on $21,032,779 of revenues for year ended April 30, 2010, compared with a net loss of $3,409,795 on $22,591,048 revenues for the same period a year ago. The Company's balance sheet at April 30, 2010, showed $12,460,556 in total assets, $19,218,938 in total liabilities, and a $6,758,382 stockholders' deficit. Malonebailey, LLP, in its August 13, 2010 report, noted that Inova incurred losses from operations for fiscal 2010 and 2009 and has a working capital deficit as of April 30, 2010. "These factors raise substantial doubt about Inova's ability to continue as a going concern," the accounting firm said. The Company has incurred losses of $7,063,039 and $3,409,795 for the years ended April 30, 2010 and 2009, and has an accumulated deficit of $13,171,088 and negative working capital of $15,378,190 as of April 30, 2010. The Company added that its ability to continue as a going concern is dependent upon its ability to generate sufficient cash flows to meet its obligations on a timely basis, to obtain additional financing as may be required, and ultimately to attain profitable operations. A full-text copy of the Company's Form 10-K is available for free at http://ResearchArchives.com/t/s?69ed About Inova Technology Based in Santa Monica, California, Inova Technology, Inc. (Other OTC: IVTH) -- http://www.inovatechnology.com/-- develops and sells radio frequency identification products and services. Inova is focused on developing solutions that prevent counterfeit of luxury goods and pharmaceuticals. INTERNATIONAL LEASE: Fitch Puts 'BB' Rating on $500MM Sr. Notes --------------------------------------------------------------- Fitch rates International Lease Finance Corp.'s $500 million issuance of senior unsecured notes 'BB' and $3.9 billion issuance of secured notes 'BBB-'. Both ratings are consistent with Fitch's earlier statements provided in releases dated Aug. 9, 2010 and Aug. 11, 2010. ILFC's 'BB' Issuer Default Rating and Evolving Rating Outlook are unaffected by the assignment of these ratings. The unsecured notes will pay interest semi-annually on each March 1 and Sept. 1 at a rate of 8.875% per year, beginning March 1, 2011, and will mature on Sept. 1, 2017. The notes are not guaranteed by ILFC's parent, any of ILFC's subsidiaries or any third party. The senior secured notes consist of these: -- $1.35 billion aggregate principal amount of 6 1/2% senior secured notes due 2014 will pay interest, semi-annually, on each March 1 and Sept. 1, beginning March 1, 2011, at a rate of 6.5% per year; -- $1.275 billion aggregate principal amount of 6 3/4% senior secured notes due 2016 will pay interest, semi-annually, on each March 1 and Sept. 1, beginning March 1, 2011, at a rate of 6.75% per year; and -- $1.275 billion aggregate principal amount of 7 1/8% senior secured notes due 2018 will pay interest, semi-annually, on each March 1 and Sept. 1, beginning March 1, 2011, at a rate of 7.125% per year. All of the notes are senior secured obligations of ILFC and will be guaranteed on a senior secured basis by certain of ILFC's wholly owned subsidiaries. The notes and guarantees will be secured on a first-priority basis by a portfolio of selected aircraft and related leases and other property. Proceeds from both transactions were used to repay outstanding secured loans from AIG Funding in full and for general corporate purposes. Fitch has assigned these ratings: International Lease Finance Corp. -- $500 million senior unsecured notes 'BB'; -- $3.9 billion senior secured notes 'BBB-'. ISOLA USA: Moody's Assigns Corporate Family Rating at 'B3' ---------------------------------------------------------- Moody's Investors Service assigned to Isola USA Corp. first-time Corporate Family and Probability of Default Ratings of B3, with a stable rating outlook. Concurrently, Moody's assigned a B1 rating to Isola USA's proposed $225 million senior secured first-lien term loan due 2015. The loan will benefit from full guarantees from Isola USA's ultimate parent, Isola Group, S.a.r.l., and various second, third and fourth-tier holding company parent subsidiaries, as well as Isola USA's domestic operating subsidiaries. These first-time ratings/assessments were assigned: * Corporate Family Rating -- B3 * Probability of Default Rating -- B3 * $225 million Senior Secured First-Lien Term Loan due 2015 -- B1 (LGD-2, 25%) The rating outlook is stable. Ratings Rationale Isola, a provider of high-performance laminates to the printed circuit board industry, is owned by private equity sponsor TPG Capital, and management. Ratings were assigned in connection with the recapitalization of Isola's balance sheet. Proceeds from the new $225 million senior secured term loan, a new 5½ year $150 million 16% unrated subordinated unsecured loan (PIKs at a rate of 8%/annum) plus balance sheet cash will be used to repay existing first-lien (including a swap termination fee) and second- lien term loans. The B3 CFR reflects the company's small scale relative to larger vertically-integrated competitors who are typically divisions of multinational conglomerates with greater resources. The rating also considers Isola's high PCB customer concentration, dependence on the volatile semiconductor industry and exposure to original equipment manufacturers in the highly cyclical technology, telecommunications and networking end markets. The rating incorporates Isola's historical revenue declines, operating losses and negative free cash flow during the recession (FY08 and FY09), offset by recent improvement in profitability and cash flow generation. Lastly, the rating recognizes the company's moderately high pro forma financial leverage (5.8x adjusted total debt/LTM EBITDA) and modest liquidity relative to its business risk. Partly mitigating these concerns, the B3 rating simultaneously acknowledges Isola's leading global market positions across the high performance and high Tg laminates markets. With good diversification across products, end markets and geographies, the rating captures Isola's long-standing relationships and early participation with leading electronics OEMs. In Moody's opinion, this has enabled the company to successfully align its R&D/product roadmap and develop solutions that meet customers' more complex product requirements. The rating also takes into consideration Isola's improving margin profile given the recent cost saving measures, recovery in PCB demand and mix shift to high performance products which carry richer margins. The stable outlook recognizes Moody's expectation that Isola will maintain steady customer relationships and sustain its leadership positions across high performance laminates. It also reflects Moody's expectation that margins will continue to demonstrate improvement relative to historical levels and Isola will generate positive, though modest, FCF over the next 12 months. Following transaction closing, Moody's anticipate additional liquidity will be derived principally from balance sheet cash of approximately $40 million since Isola will not have a revolving credit facility, which restrains its liquidity profile as well as the rating. The ratings could experience upward pressure if the company were to demonstrate sustainable improvement in operating performance as a result of its reduced fixed cost structure and ongoing mix shift to higher margin high performance laminate products, which should be evidenced in consistently higher margins. Ratings could also migrate higher to the extent adjusted total debt to EBITDA improved to 4.0x and the company demonstrated sustained positive FCF generation. Ratings could migrate lower if: revenues were to experience significant downward pressure as a result of market share losses or increased competition; margins eroded as a result of lower volumes, pricing pressures or higher operating costs; leverage, as measured by adjusted total debt to EBITDA, increased to 7.0x or higher; the company's liquidity position were to weaken; or there was a material change in the business profile. Headquartered in Chandler, Arizona, Isola USA Corp. is a principal operating subsidiary of Isola Group, S.a.r.l., a leading developer and global supplier of high-performance laminates to printed circuit board fabricators that, in turn, supply the major technology original equipment manufacturers. Isola's products are sold into instruments/controls, medical, telecom/datacom, military/aerospace and computing/networking end markets. Revenues (excluding discontinued operations) for the last twelve months ended June 30, 2010, were $544 million. ISOLA USA: S&P Assigns 'B' Corporate Credit Rating -------------------------------------------------- Standard & Poor's Ratings Services said it assigned its preliminary 'B' corporate credit rating to Chandler, Ariz.-based printed circuit board laminate supplier Isola USA Corp. At the same time, S&P assigned S&P's preliminary 'B' issue-level rating and a preliminary recovery rating of '3' to the proposed senior secured facility, consisting of a $225 million first-lien term loan. The preliminary '3' recovery rating indicates a meaningful (50%-70%) recovery of principal in the event of default. "The preliminary ratings on Isola predominantly reflect its moderate overall competitive position in the PCB laminate industry, which itself makes up only a small percentage of the overall semiconductor value chain, making it particularly vulnerable to industry volatility," said Standard & Poor's credit analyst Joseph Spence. In addition, S&P assess the proposed financial profile as "aggressive" since, despite its equity characteristics, S&P treats the company's convertible preferred equity certificates and accrued preferred interests of approximately $177 million as debt. As a result, pro forma June 2010 leverage approaches the 8x area on a trailing-12-month basis and mid- to high-5x when annualized for the quarter. Standard & Poor's does, however, view Isola's recent growth trends as well as improved cost structure and profitability as positive factors. J.A.G. CARWASH: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: J.A.G. Carwash Holdings, LLC 3801 N. Dixie Highway Boca Raton, FL 33431 Bankruptcy Case No.: 10-34451 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman Jr. Debtor's Counsel: Julie E. Hough, Esq. HOUGH ROBSON, PL 2450 Hollywood Blvd #706 Hollywood, Fl 33020 Tel: (954) 239-4760 E-mail: jhough@houghrobson.com Scheduled Assets: $1,500,000 Scheduled Debts: $2,416,734 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb10-34451.pdf The petition was signed by Jason Graff, managing member of JMG Realty LLC. JAIME GONZALEZ: Wants to Hire Eason & Tambornini as Bankr. Counsel ------------------------------------------------------------------ Jaime Gonzalez and Gloria Gonzalez ask for authorization from the Hon. Leslie Tchaikovsky of the U.S. Bankruptcy Court for the Northern District of California to employ Eason & Tambornini as bankruptcy counsel. E&T will, among other things: a. take necessary action to protect and preserve the Debtors' estate, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to the claims filed against the Debtors' estate; b. assist the Debtors in obtaining approval of disclosure statement and confirmation of its Chapter 11 plan of reorganization; c. prepare applications, motions, answers, orders, reports and other legal papers; and d. appear in Court and protect the interests of the Debtors before the Court. E&T will be paid based on the hourly rates of its personnel: Matthew R. Eason $300 Kyle K. Tambornini $300 Alice Harkrider, Paralegal $100 Matthew R. Eason, a partner at E&T, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Clayton, California-based Jaime Gonzalez and Gloria Gonzalez filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. N.D. Calif. Case No. 10-47600). The Debtors estimated their assets and debts at $10 million to $50 million as of the Petition Date. JAMES PINNELL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: James Hunter Pinnell Ashley Noelle Pinnell fka Ashley Sloan-Banker 680 Maple Creek Drive Fairview, TX 75069 Bankruptcy Case No.: 10-42774 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Christopher J. Moser QUILLING, SELANDER, CUMMISKEY & LOWNDS 2001 Bryan Street, Suite 1800 Dallas, TX 75201-3005 Tel: (214) 871-2100 E-mail: cmoser@qsclpc.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/txeb10-42774.pdf JOHN COLBERT: Taps Paul Feldman to Sell Baker's Keyboard -------------------------------------------------------- John Colbert, owner of Baker's Keyboard Lounge, has engaged real estate broker Paul Feldman of Friedman Real Estate Group to sell Baker's Keyboard for $450,000, according to reporting by John Gallagher at Free Press Business Writer. John H. Colbert filed for Chapter 11 on August 13, 2010 (Bankr. E.D. Mich. Case No. 10-65635). In its schedules attached to the petition, Mr. Colbert disclosed assets of $377,501 and debts of $458,024. Kimberly Ross Clayson, Esq., at Schneider MIller, PC, in Detroit, Michigan, serves as counsel to the Debtor. A copy of the petition is available at: http://bankrupt.com/misc/mieb10-65635p.pdf JOHN D. OIL: Posts $403,900 Net Loss in June 30 Quarter ------------------------------------------------------- John D. Oil and Gas Company filed its quarterly report on Form 10- Q, reporting a net loss of $403,875 on $679,517 of revenues for the three months ended June 30, 2010, compared with net loss of $524,409 on $943,691 of revenues for the same period a year ago. The Company's balance sheet at June 30, 2010, showed $9,591,350 in total assets, $7,374,018 in total liabilities, and a $2,217,332 stockholders' equity. Maloney + Novotny LLP, in Cleveland, Ohio, submitted an audit report for the year 2009 that had an explanatory paragraph that, due to the Company's recurring losses and outstanding debt of $10.6 million that was currently due and then in default, there is substantial doubt about the Company's ability to continue as a going concern. In the Form 10-Q, the Company acknowledges that it has incurred substantial losses, which have strained its financial resources, and the Company's liabilities exceed its assets at June 30, 2010. The Company's $9.5 million line of credit with RBS Citizens, N.A. d/b/a Charter One was due August 1, 2009 and was in default. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?69eb About John D. Oil and Gas Company The Company entered into the business of extracting and producing oil and natural gas products in Northeast Ohio in 2006. The Company currently also retains one self-storage facility located in Painesville, Ohio. JOSEPH HUSMAN: Case Summary & 6 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Joseph Michael Husman 331 N. Arden Blvd. Los Angeles, CA 90004 Bankruptcy Case No.: 10-44799 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Ernest M. Robles Debtor's Counsel: Thomas B. Ure, Esq. URE LAW FIRM 811 Wilshire Blvd., Suite 1000 Los Angeles, CA 90017 Tel: (213) 202-6070 Fax: (213) 202-6075 E-mail: tbuesq@aol.com Scheduled Assets: $1,635,700 Scheduled Debts: $1,331,200 A list of the Debtor's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-44799.pdf KENNETH ANDERSON: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Kenneth Roderick Anderson dba Pah Tempe Hot Springs Resort Zion VRC Zip Tour LLC aka Ken R. Anderson dba The Roderick Family Trust aka Kenneth R. Anderson dba Kolob Mountain Ranch Resort 825 North 800 East Hurricane, UT 84737 Bankruptcy Case No.: 10-41789 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: William T. Thurman Debtor's Counsel: Helga A. White, Esq. 310 Bridgeview Drive Auburn, CA 95603-3234 Tel: (530) 885-4433 Fax: (530) 236-8866 E-mail: helgawh@gotsky.com Scheduled Assets: $36,297,305 Scheduled Debts: $5,979,063 The petition was signed by the Debtor. Debtor's List of 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Farel Campbell Engineer $64,962 332 West 400 S Hurricane, UT 84737 Steven Spackman $37,000 3576 Pomegranet Way St. George, UT 84790 Hannes Frischknecht $28,000 100 E. 480 South La Verkin, UT 84745 Bank of America $21,000 Russell Gallian $15,826 Spec Industries Inc. $4,836 Road Runner Auto $3,173 La Verking City $2,874 Scholzens Products $2,848 Napa Auto Parts $2,416 Kubota Credit Corporation $1,291 Vacation Resorts International $1,211 Steamroller Copies $896 Lins Market $714 Ameri Gas $576 The Spectrum News $433 Washington County $350 Water Conservancy Dist Bucks Ace Hardware $326 Farmers Market $213 KOPAC INTERNATIONAL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Kopac International Corporation, Inc. P.O. Box 1882 Montgomery, AL 36102 Bankruptcy Case No.: 10-32244 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Middle District of Alabama (Montgomery) Judge: William R. Sawyer Debtor's Counsel: James L. Day, Esq. MEMORY & DAY P.O. Box 4054 Montgomery, AL 36103-4054 Tel: (334) 834-8000 Fax: (334) 834-8001 E-mail: jlday@memorylegal.com Scheduled Assets: $2,660,000 Scheduled Debts: 3,643,366 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/almb10-32244.pdf The petition was signed by W. H. Griffin, president. L&H TRUCKING: Planing to Sell Trucking Business ----------------------------------------------- TradingMarkets.com reports that trucking company L & H Trucking Company Inc., which is under Chapter 11 protection, is looking to try and sell its business rather than reorganize for the long haul, said counsel Lawrence Young, Esq., at Magee Goldstein Laksy & Sayers, in Roanoke, Virginia. L & H Trucking is still operating while looking for a buyer, Mr. Young said, according to the report. Hanover, Pennsylvania-based L & H Trucking Company, Inc., filed for Chapter 11 on August 16, 2010 (Bankr. M.D. Pa. Case No. 10- 06657). Lawrence V. Young, Esq., at CGA Law Firm, serves as counsel to the Debtor. The Debtor estimated assets of up to $10 million and debts of $10 million to $50 million in its Chapter 11 petition. LA TOYA JACKSON: Creditors' Trust Will Terminate on March 31 ------------------------------------------------------------ WestLaw reports that the "liquidating purpose" of the creditors' trust created in a Chapter 11 case, to liquidate otherwise illiquid assets in the trust for distribution, would not be furthered by an extension of the trust's term, as required for the court to grant an extension pursuant to the underlying agreement, so as to permit the trust to continue to hold the rights to receive the royalties associated with the intellectual property created by the debtor as an artist and performer. The extension of the trust in relation to the debtor's royalties, which constituted a passive ongoing revenue stream related to the exploitation of the intellectual property, would simply fulfill the purpose of collecting more revenue for creditors beyond any originally foreseeable period for holding those assets in the trust, contrary to what was contemplated by the agreement and the confirmed plan. In re La Toya Jackson, --- B.R. ----, 2010 WL 3056974 (Bankr. S.D.N.Y.) (Peck, J.). As reported in the Troubled Company Reporter on Aug. 13, 2010, the Honorable James M. Peck rebuffed a request by the Trustee of the La Toya Jackson Creditors' Trust, supported by Societe Bal du Moulin Rouge, to reopen the high profile entertainer's chapter 11 case to extend the term of the trust beyond its presently scheduled expiration on Mar. 31, 2011. Ms. Jackson objected, requesting that trust be terminated immediately and that court order all trust assets to revert to her. La Toya Jackson commenced her Chapter 11 case (Bankr. S.D.N.Y. Case No. 95-43145) on July 19, 1995. On August 31, 1998, the Bankruptcy Court confirmed a Second Amended Plan of Reorganization proposed, in large measure, by Moulin Rouge, and the Plan became effective over eleven years ago on Apr. 1, 1999. Pursuant to the Plan, the Debtor, the Trustee, and Moulin Rouge, as the Debtor's largest unsecured creditor, entered into a creditors' trust agreement providing for the creation of the Trust upon the Plan's effective date. The Trust's assets included rights to a stream of monthly royalty payments arising from the Debtor's intellectual property as well as potential recoveries related to the Debtor's claims against certain third parties. The Trust was originally scheduled to terminate on Apr. 1, 2006, and was then extended by agreement by five years to Mar. 31, 2011. Richard Levy, Jr., at Pryor Cashman, LLP, in New York City, serves as the Trustee of the La Toya Jackson Creditors' Trust, and is represented by Seth H. Lieberman, Esq., at his firm. Ms. Jackson is represented by Gary F. Torrell, Esq., at Valensi Rose, PLC, in Los Angeles, Calif. "This was a very challenging case, to convince a judge in New York that Ms. Jackson's creditors should not obtain additional royalties, even though they had not received any payment," Mr. Torrell said after reading Judge Peck's decision. "Luckily, the judge agreed with my arguments and issued a well-reasoned opinion in favor of our valued client." David C. Wrobel, Esq., at Wrobel & Schatz, LLP, in Manhattan, represents Societe Bal du Moulin Rouge. LEHMAN BROTHERS: SIPA Trustee Files Interim Investigation Report ---------------------------------------------------------------- James W. Giddens, the Trustee for the $110 billion liquidation of Lehman Brothers Inc. (LBI) under the Securities Investor Protection Act (SIPA), issued his Preliminary Investigation Report on the failure of LBI and recommendations for protecting customers in broker-dealer liquidations. Mr. Giddens commented: "The Securities Investor Protection Act was designed to protect public customers in the event of a brokerage firm collapse. A disaster on the scale of Lehman Brothers was never contemplated, but for the most part SIPA worked well. Under the most challenging circumstances, SIPA enabled the nearly seamless transfer of 110,000 accounts with $92 billion in assets to solvent broker-dealers? giving the vast majority of Lehman's U.S. brokerage customers access to their property and ability to trade at a critical time for the financial markets." The report also says that because Lehman Brothers had not prepared a pre-liquidation disaster plan, concrete provisions for the mechanics of asset transfers were lacking and contributed to the chaos of the Lehman bankruptcy. To avoid a "second Lehman" and protect customers in future SIPA liquidations, the Trustee's report makes eight recommendations that could be implemented by regulation, industry agreement or legislation. The SIPA Trustee's Preliminary Investigation Report and Recommendations were prepared by his counsel, Hughes Hubbard & Reed LLP, and filed with the U.S. Bankruptcy Court for the Southern District of New York. Among the key findings: Prior to the liquidation process, regulators and Lehman's internal compliance function largely did their jobs in supervising LBI's basic operations as a broker-dealer. During normal operations, LBI was generally in compliance with regulatory requirements and financial responsibility and customer segregation rules. For the most part, SIPA worked well. At a time of great tumult in the financial markets, the provisions of the SIPA statute enabled the nearly seamless transfer of assets representing the vast majority of customer accounts, from Lehman to other broker- dealers. Regrettably, not all LBI customers avoided loss or disruption, and remaining claims are being administered under the largest and most complex SIPA claims process in history. Most LBI customer property was intact and accessible as envisaged by the regulations, particularly in the United States. Obtaining property that was or should have been held in foreign depositaries proved more challenging. As detailed in the report, the Trustee has been disappointed in the performance and attitudes of many entities that hold LBI property or information. The deeds show a pattern of delay, incomplete information and creation of obstacles. Parties have seemed all too willing to take extreme positions in order to claim a right under what was intended to be customer property or to withhold property clearly belonging to the LBI estate. This has greatly hindered the Trustee's work, resulting in significant added costs and frustrating SIPA's underlying goals. "After any disaster there are practical lessons to learn," Giddens added. "The brokerage industry seems to have forgotten that its success or failure still depends on the confidence of customers. The sense that customers will be protected and dealt with fairly ought not to be eroded through narrow self-interest." The Trustee's preliminary report makes eight recommendations for avoiding a "second Lehman": Pre-liquidation disaster planning, including a "living will", which would require each broker-dealer to have in place an up-to- date liquidation plan that could be monitored by regulatory authorities. Robust pre-liquidation negotiations and provisions on the mechanics of asset transfers, including access to assets, information systems and people. Balancing clearing banks' rights and broker-dealers' obligations in order to prevent denial of access to information screens and seizure of what should be segregated customer property. Study of clearing agencies' emergency rules, operations and consequences. Reconsideration of unitary fund of customer property in favor of funds for different types of accounts. Increasing the Securities Industry Protection Corp.'s financial resources, borrowing authority and flexibility. Provisions for liquidation of collateral and return of excess or marking to market to cure deficiencies. Rational rules for unwinding outstanding non-customer financial transactions. SIPA requires the Trustee to investigate and report the financial condition and business affairs of the debtor, in this case LBI. A final report will be released at the conclusion of the liquidation proceedings. The filing is a preliminary report and can be found at http://www.lehmantrustee.com/ The information in this statement does not apply to any other Lehman entity, including separate insolvency proceedings involving Lehman Brothers Holding, Inc. (LBHI) and Lehman Brothers International (Europe) (LBIE). About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LESLIE CONTROLS: Asbestos Claimants' Ballots Due by Sept. 27 ------------------------------------------------------------ The U.S. Bankruptcy Court has set 5:00 p.m., prevailing Eastern Time, on Sept. 27, 2010, as the deadline for all persons asserting personal injury and wrongful death claims allegedly arising from exposure to asbestos distributed by Leslie Controls, Inc., to cast their ballots accepting or rejecting the Debtor's chapter 11 plan. As reported in the Troubled Company Reporter, the Honorable Christopher S. Sontchi approved the Debtor's disclosure statement explaining its chapter 11 plan and overruling disclosure-related objections interposed by Fireman's Fund Insurance Co. and Century Indemnity. Copies of the Debtor's Plan, Disclosure Statements and court- approved solicitation material are available at: http://dm.epiq11.com/lesliecontrols/ About Leslie Controls Based in Tampa, Florida, Leslie Controls manufacturers process control valves, severe service control valves, on-off valves, regulators, steam water heaters, actuators and controls. Leslie is a unit of CIRCOR International, Inc. The Company sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-12199) on July 12, 2010. Marion M. Quirk, Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman & Leonard, assist the Company in its restructuring effort. The Company estimated its assets at $10 million to $50 million and its debts at $50 million to $100 million at that the time of the filing. LIBBEY INC: BofA, Merrill Lynch Continue to Pare Stake ------------------------------------------------------ Bank of America Corporation, Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith, Inc., and Merrill Lynch PCG, Inc., disclosed that as of August 18 they held 575,485 shares or roughly 2.9% of the common stock of Libbey Inc. On August 12, 2010, Libbey and MLPCG with Merrill Lynch Pierce, as Representative of several underwriters, entered into an agreement whereby MLPCG agreed to sell to the Underwriters an aggregate of 3,036,877 shares of Libbey's common stock, par value $0.01 per share. On such date, MLPCG exercised Series I Warrants for the purchase of 2,168,362 shares of Libbey common stock. In addition, MLPCG agreed to sell 724,581 shares of Common Stock issuable upon exercise of the Series I Warrant, issued by Libbey to MLPCG on October 28, 2009, to occur following the sale by MLPCG of the Initial Shares of Common Stock and granted the Underwriters a 30- day over-allotment option to purchase up to 573,913 additional shares of Common Stock issuable upon exercise of the Series I Warrant. The Underwriters have exercised the over-allotment option in full. On August 18, 2010, following its sale of the Initial Shares, MLPCG exercised Series I Warrants for the purchase of the Additional Shares and the Option Shares and delivered such shares to the underwriters pursuant to the Underwriting Agreement. As a result, BAC now beneficially owns: 2.9% of Libbey's common stock (based on 20,139,148 shares of Common Stock of Libbey outstanding consisting of (i) 16,186,983 shares of Common Stock outstanding as of July 27, 2010 (as reported by Libbey in its Form 10-Q for the period ending June 30, 2010), (ii) 485,309 shares of Common Stock issuable upon exercise of a warrant Libbey issued to MLPCG on June 16, 2006, and (iii) 3,466,856 shares of common stock issued to MLPCG pursuant to the exercise of the Series I Warrants sold pursuant to the Underwriting Agreement. As the ultimate parent holding company of both MLPCG and MLPFS, BAC may be deemed to beneficially own the shares held by each such entity). With respect to the beneficial ownership, the 575,485 shares of Common Stock reported to be beneficially owned consist of (i) 485,309 shares of Common Stock issuable upon exercise of the 2006 Warrant, (ii) 565 shares of Common Stock of fiduciary holdings owned by Bank of America as of August 18, 2010; (iii) 2,500 shares of Common Stock of fiduciary holdings owned by MLPFS as of August 18, 2010 and (iv) 87,111 shares of Common Stock owned by MLPFS as of August 18, 2010. The holdings are calculated assuming an issuance of Common Stock under the 2006 Warrant exercisable on August 18, 2010. About Libbey Inc. Based in Toledo, Ohio, since 1888, Libbey, Inc., operates glass tableware manufacturing plants in the United States in Louisiana and Ohio, as well as in Mexico, China, Portugal and the Netherlands. Libbey supplies tabletop products to foodservice, retail, industrial and business-to-business customers in over 100 countries. Libbey Inc.'s balance sheet at June 30, 2010, showed $794.1 million in total assets, $805.8 million total liabilities, and a stockholder's deficit of $11.6 million. * * * According to the Troubled Company Reporter on Feb. 1, 2010, Standard & Poor's Ratings Services affirmed its "B" corporate credit rating on Libbey Inc. The outlook is stable. On October 28, 2009, Libbey restructured a portion of its debt by exchanging the old 16% Senior Subordinated Secured Payment-in- Kind Notes due December 2011 of subsidiary Libbey Glass Inc., having an outstanding principal amount as of October 28, 2009, of $160.9 million for (i) $80.4 million principal amount of new Senior Subordinated Secured Payment-in-Kind Notes due 2021 of Libbey Glass, and (ii) 933,145 shares of common stock and warrants exercisable for 3,466,856 shares of common stock of Libbey Inc. On February 8, 2010, Libbey used the proceeds of a $400.0 million debt offering of 10.0% Senior Secured Notes due 2015 of Libbey Glass Inc., as well as cash on hand, to (i) repurchase the $306.0 million then outstanding Floating Rate Senior Secured Notes due 2011 of Libbey Glass, (ii) repay the $80.4 million New PIK Notes and (iii) pay related fees and expenses. Concurrent with the closing of the offering of the Senior Secured Notes, Libbey entered into an amended and restated $110 million Asset Based Loan facility which, among other terms, extended the maturity date to 2014. LIONS GATE: June 30 Balance Sheet Upside Down by $1,580,000 ----------------------------------------------------------- Lions Gate Entertainment Corp. reported total assets of $1,592,874,000 against total liabilities of $1,594,454,000, resulting in total deficiency of $1,580,000 as of June 30, 2010. Lions Gate posted a $64,068,000 net loss for the fiscal first quarter ended June 30, 2010, from net income of $36,349,000 for the same period a year ago. Revenues were $326,584,000 for the fiscal first quarter from $379,224,000 for last year's quarter. A full-text copy of the Company's Form 10-Q report is available at no charge at http://ResearchArchives.com/t/s?69e4 About Lions Gate British Columbia-domiciled and Santa Monica, California- headquartered Lions Gate is a leading, diversified independent producer and distributor of motion pictures, home entertainment, television programming and animation worldwide and holds a majority interest in the pioneering CinemaNow VOD business. The Lions Gate brand name is synonymous with original, cutting edge, quality entertainment in markets around the world. As reported by the Troubled Company Reporter on March 10, 2010, Standard & Poor's Ratings Services revised its rating outlook on Lions Gate to negative from stable. At the same time, S&P affirmed ratings on Lions Gate, including the 'B-' corporate credit rating. Lions Gate carries Moody's "B2" corporate family rating and probability of default rating. MACC PRIVATE: Reports $603,100 Net Income in Q3 Ended June 30 ------------------------------------------------------------- MACC Private Equities Inc. filed its quarterly report on Form 10-Q, reporting a net increase in net assets from operations of $603,131 for the third quarter ended June 30, 2010, compared with a net decrease in net assets from operations of $1.2 million for the third quarter ended June 30, 2009. The increase in net asset value during the third quarter ended June 30, 2010, was primarily the result of a net change in unrealized appreciation/depreciation on investments of $826,589. For the third quarter of fiscal 2010, total investment income was $56,330, compared to total investment income of $152,445 for the third quarter of fiscal 2009. Total operating expenses for the third quarter of fiscal 2010 were $279,788, compared to $252,557 for the third quarter of fiscal 2009. Net investment expense for the third quarter of fiscal 2010 was $223,458, compared to a net investment expense of $100,112 in the third quarter of fiscal 2009. MACC had no net realized gain or loss on investments for the third quarter of fiscal 2010, compared with a net loss of $1.2 million for the third quarter of fiscal 2009. MACC reported a net change in unrealized appreciation/depreciation on investments of $826,589 during the third quarter of fiscal 2010, compared to $165,280 during the third quarter of fiscal 2009. Nine Months Fiscal 2010 Results MACC has a negative net change in net assets from operations of $503,387 for the nine months ended June 30, 2010, compared to a negative net change in net assets from operations of $2.4 million for the nine months ended June 30, 2009. Balance Sheet The Company's balance sheet as of June 30, 2010, showed $12.0 million in total assets, $4.7 million in total liabilities, and $7.3 million in total net assets. Going Concern Uncertainty As reported in the Troubled Company Reporter on January 11, 2010, KPMG, LLP, in San Diego, Calif., expressed substantial doubt about MACC Private Equities, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the year ended September 30, 2009. The independent auditing firm noted that the Company does not have sufficient cash on hand to meet current obligations. The Company discloses in its latest 10-Q that it continues to have an ongoing need to raise cash from portfolio sales to fund its operations and pay down outstanding debt. "Our efforts to sell certain investments has taken longer than we initially anticipated while performance of the underlying portfolio companies in certain cases has deteriorated. We believe our ability to liquidate positions had been adversely affected by credit conditions and the downturn in the financial markets and the global economy. Our Note Payable with Cedar Rapids Bank & Trust Company with a balance of $4,414,721 as of June 30, 2010 is due and payable January 10, 2011. Under this agreement, the Company is required to comply with certain financial covenants, including maintaining a minimum liquidity of $500,000, which commences upon the closing of the capital transaction discussed below. Given our current lack of liquid assets and funds to satisfy the Note Payable, there is substantial doubt that we will continue to operate as a going concern. Our ability to raise additional capital will depend on conditions in the capital markets which are outside our control. As a result, we cannot be certain of our ability to raise additional capital and such uncertainty raises substantial doubt about our ability to continue to operate as a going concern." A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?69da Based in Encinitas, Calif., MACC Private Equities Inc. is a business development company in the business of making investments in small businesses in the United States. MACC common stock is traded on the Nasdaq Capital Market under the symbol "MACC." MANJUSHREE MISRA: Case Summary & 6 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Manjushree Misra 14659 N. 14th Drive Phoenix, AZ 85023-5194 Bankruptcy Case No.: 10-26368 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: James M. Marlar Debtor's Counsel: Jonathan B. Frutkin, Esq. THE FRUTKIN LAW FIRM,PLC 101 North First Avenue, Suite 2410 Phoenix, AZ 85003 Tel: (480) 295-3470 Fax: (602) 926-8624 E-mail: jfrutkin@frutkinlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-26368.pdf MASH INTERNATIONAL: Case Summary & 2 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Mash International, Inc. dba Used Cars, U.S.A. P.O. Box 8111 Fayetteville, AR 72703 Bankruptcy Case No.: 10-74371 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Western District of Arkansas (Fayetteville) Debtor's Counsel: Donald A. Brady, Jr., Esq. BLAIR & BRADY ATTORNEYS AT LAW 109 N. 34th Street P.O. Box 1715 Rogers, AR 72756 Tel: (479) 631-0100 Fax: (479) 631-8052 E-mail: dblaw0887@hotmail.com Estimated Assets: $1,935,117 Estimated Debts: $830,000 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/arwb10-74371.pdf The petition was signed by Hossein Kouchehbagh, president. MASONITE INC: S&P Affirms 'BB-' Long-Term Corporate Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB-' long-term corporate credit rating on Masonite Inc. The outlook is stable. "The rating on Masonite reflects S&P's view of the company as one of the world's largest door manufacturers, with historically stable profitability and cash flow, and no debt," said Standard & Poor's credit analyst Jatinder Mall. "These strengths are partially offset in S&P's opinion by the company's exposure to the cyclical North American housing construction market, expectations of weak profitability for the next couple of years, and customer concentration," Mr. Mall added. Masonite is one of the world's largest producers of both interior and exterior doors, with a significant market share in its primary North American market. It has vertically integrated operations, with approximately 55 facilities in 18 countries. North America accounts for about two-thirds of company sales, while Europe and the rest of the world account for the balance. The stable outlook reflects Standard & Poor's expectations that Masonite will continue to generate positive cash flows even in the current weak business environment and maintain sufficient liquidity. S&P could lower the rating if market conditions significantly worsen or Masonite loses a major customer leading to negative cash flow generation and a large cash burn. S&P could also lower the rating if the company makes a large acquisition or gives out a special dividend payout that is greater than S&P's expectations and results in a leverage ratio that is greater than 4x. An upgrade at this time is unlikely and would require meaningful improvement in the U.S. housing construction market leading to improved profitability and for Masonite to demonstrate that it can sustain a leverage ratio of below 3x in the long term. MEDICAL STAFFING: Court Clears Lenders to Buy Assets ---------------------------------------------------- Dow Jones DBR Small Cap reports that a bankruptcy judge cleared Medical Staffing Network Holdings Inc. to close the deal it sought Chapter 11 protection to carry out: a sale of its health-care staffing business to its senior lenders. As reported by the Troubled Company Reporter on August 10, 2010, DBR Small Cap had said the U.S. trustee Donald F. Walton balked at the Debtor's request to exchange its assets for $84.1 million in debt forgiveness from its first-lien lenders, saying the proposed credit bid will leave all other creditors empty-handed and will only benefit the purchaser. Mr. Walton had argued the proposed deal would leave no money left over for unsecured creditors or other secured creditors in the case. "The only parties who will achieve any success in this proceeding will be the first-lien lenders," Mr. Walton had said, according to Dow Jones. The TCR on August 5, 2010, reported that the Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida authorized Medical Staffing to sell substantially all of their assets, and transferred equity interests, in an auction led by MSN AcquisitionCo., LLC. The auction was slated for August 19, 2010, at the offices of Berger Singerman, P.A., in Fort Lauderdale. The Court was slated to consider the sale of the assets, and transferred equity interests to MSN AcquisitionCo., or the winning bidder at a hearing on August 20. About Medical Staffing Boca Raton, Florida-based Medical Staffing Network Holdings, Inc., provides temporary (predominantly healthcare) staffing services including per diem, short term contracts and travel, in the United States. Warburg Pincus Private equity VIII, L.P., owns a 45.4% stake in the Company. The Company and its affiliates filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. S.D. Fla. Lead Case No. 10-29101). Medical Staffing estimated $100 million to $500 million in assets and debts. In its schedules, an affiliate of Medical Staffing listed total assets of $53,293,726 and total liabilities of $129,862,111. The Debtors are represented by Paul Steven Singerman, Esq., and Jordi Guso, Esq., at Berger Singerman, P.A., in Miami. Akerman Senterfitt is the Debtors' special corporate and transactional counsel. Loughlin Meghji + Company is the corporate restructuring advisor. Ernst & Young LLP is the accounting and tax advisor. The Garden City Group Inc. is the claims and notice agent. MEHDI AFSHAR: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: Mehdi Afshar Mahnaz Afshar 17520 Elaine Ct. Monte Sereno, Ca 95030 Bankruptcy Case No.: 10-58594 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Northern District of California (San Jose) Judge: Charles Novack Debtor's Counsel: Anthony Delas, Esq. FOOTHILL LAW GROUP 777 N 1st. St. #325 San Jose, CA 95112 Tel: (408) 293-0880 E-mail: tdelas@foothilllaw.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/canb10-58594.pdf MESA AIR: Assumes Airport St. Louis Operating Agreement ------------------------------------------------------- Debtor Mesa Airlines, Inc., and the City of St. Louis/Lambert-St. Louis International Airport, the lessor, are parties to a certain Airline Operating Agreement and Terminal Building Space Permit No. AL-646, effective January 1, 2006, together with all addenda, as supplemented and amended from time to time. Absent consent from the Lessor, the deadline to assume or reject the Airport Operating Agreement expires on August 3, 2010, pursuant to the Court's April 13, 2010 Order for an Extension of Time to Assume or Reject Unexpired Leases of Nonresidential Real Property. The Debtors sought to assume the Airport Operating Agreement in their First Omnibus Motion to Assume or Extend the Time to Assume or Reject Unexpired Leases of Nonresidential Real Property, dated July 16, 2010. Mesa Airlines hereby assumes the Airport Operating Agreement, and the Agreement is deemed assumed as of August 3, 2010. Mesa Airlines and the Lessor have agreed that (i) payment by the Debtor to the Lessor of $7,939 will cure all defaults existing as of August 3, 2010, under the Airport Operating Agreement pursuant to Section 365(b)(1)(A), and (ii) the Debtor has provided adequate assurance of future performance under the Agreement pursuant to Section 365(b)(1)(C). Mesa Airlines will pay in the ordinary course of business all undisputed amounts arising under the Airport Operating Agreement after the Assumption Effective Date of August 3, 2010. The Lessor's and Mesa Airlines' rights with respect to any claims arising under the Agreement after August 3 are reserved. For the avoidance of doubt, the Lessor's claims for payment of landing fees for the period July 1, 2010, through August 31, 2010, as well as any claims arising from the Lessor's year-end adjustment and audit, are reserved. The Debtor's rights to dispute any claims are also reserved. Mesa Airlines' right, pursuant to Section 365(f) of the Bankruptcy Code, to seek authority in the future to assign the Airport Operating Agreement are reserved, as well as the Lessor's right to object to that request. About Mesa Air Group Mesa currently operates 130 aircraft with approximately 700 daily system departures to 127 cities, 41 states, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 3,500 employees. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MEZABAY INTERNATIONAL: Raises Going Concern Doubt ------------------------------------------------- Mezabay International Inc. filed its quarterly report on Form 10- Q, reporting net income of $84,444 on $246,183 of total revenues for the three months ended June 30, 2010, from a $711 net loss on $7,080 of total revenue in the same period last year. The Company's balance sheet at June 30, 2010, showed $1,092,376 in assets, $617,353 of liabilities, and $475,023 of stockholders' equity. The Company disclosed that as of June 30, 2010, it has incurred a working capital deficit of $289,521 and with the accumulated deficits of $1,078,747. The continuation of the Company is dependent upon the financial support from shareholders and the launch of its software products to the market. Management believes that these actions will enable the Company to continue its operations through June 30, 2011. "These and other factors raise substantial doubt about the Company's ability to continue as a going concern," the Company said in its Form 10-Q. A full-text copy of the annual report is available for free at: http://ResearchArchives.com/t/s?69e6 Mezabay International Inc. was incorporated under the laws of the State of Nevada in 1998 to engage in international business as Asian Alliance Ventures Inc. and subsequently changed its name to Asia Payment Systems Inc. in 2003 and to Cardtrend International Inc. on July 24, 2007. On June 18, 2009, the Company approved to change its current name to Mezabay International Inc. MZBY, through its subsidiary, engages in the provision of IT consulting, programming and display advertising services in Malaysia. MICHAEL RIVERA: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: Michael Rivera Norma Diaz dba Norma Rivera 9230 S. Eastern Avenue, SUITE 165 Las Vegas, NV 89123 Bankruptcy Case No.: 10-25826 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtors' Counsel: Charles T. Wright, Esq. PIET & WRIGHT 3130 S. Rainbow Boulevard, Suite 304 Las Vegas, NV 89146 Tel: (702) 566-1212 Fax: (702) 566-4833 E-mail: pwlawecf@gmail.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-25826.pdf MICROGY HOLDINGS: Defends Ch. 7 Filing as Bank Seeks Dismissal -------------------------------------------------------------- Dow Jones DBR Small Cap reports that Microgy Holdings Inc. is defending its Chapter 7 filing after Wells Fargo Bank claimed the move was an "obstructionist tactic" aimed at blocking a receiver from sorting out the company's finances. Microgy said in court papers Monday that it didn't file the bankruptcy petition in "bad faith" with the intent of replacing the receiver as he oversees the operations of one of the company's natural gas plants. However, the bankruptcy petition will lead to the appointment of a trustee that will be able to sort out the company's finances, collect any money that may be due and distribute the money to creditors. At issue is a request by Wells Fargo that the U.S. Bankruptcy Court in White Plains, N.Y., dismiss the Chapter 7 case of Microgy. Wells Fargo is the trustee for $60 million in bonds that Microgy used to finance the development of facilities in Texas, including the largest renewable natural gas plant in North America known as the Huckabay Ridge Facility. MIDWEST BANC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Midwest Banc Holdings, Inc. P.O. Box 1547 Melrose Park, IL 60161-1547 Bankruptcy Case No.: 10-37319 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: A. Benjamin Goldgar Debtor's Counsel: William J. Connelly, Esq. HINSHAW & CULBERTSON LLP 222 N. Lasalle Street, Suite 300 Chicago, IL 60601 Tel: (312) 704-3054 Fax: (312) 704-3002 E-mail: wconnelly@hinshawlaw.com Scheduled Assets: $9,690,937 Scheduled Debts: $144,746,169 The petition was signed by Roberto R. Herencia, president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ M&I Marshall & Ilsley Bank Money Loaned $79,071,113 770 North Water Street Milwaukee, WI 53202 MBHI Capital Trust V Money Loaned $21,259,929 c/o Wilmington Trust Company (Subordinated Debt in its capacity as trustee Securities) Rodney Square N., 1100 N. Market Street Wilmington, DE 19890-0001 Royal Capital Trust I Money Loaned $10,792,725 c/o Chase Manhattan Bank (Subordinated Debt USA, National Assoc. in its Securities) capacity as trustee 500 Stanton Christiana Road FL3/OPS4 Newark, DE 19713 MBHI Capital Trust IV Money Loaned $10,729,361 c/o Wilmington Trust Company (Subordinated Debt in its capacity as trustee Securities) Rodney Square N. 1100 N.Market Street Wilmington, DE 19890-0001 Northwest Suburban Capital Trust I Money Loaned $10,711,272 c/o Chase Manhattan Bank (Subordinated Debt USA Nat'l Assoc. in its Securities) capacity as trustee 600 Travis Street, 50th Floor Houston, TX 77002 MBHI Capital Trust III Money Loaned $9,700,752 c/o Deutsche Bank Trust Co. Delaware in its capacity as trustee 1011 Centre Road, 2nd Wilmington, DE 19805 Delaware Secretary of State Quarterly $110,160 Installment of Annual Corporation Fees Robert L. Woods Payments under $94,379 Split-dollar Life Insurance Policy The Nasdaq Stock Market LLC Securities Listing $65,000 Services Bowne of Chicago, Inc. Document Services $29,536 Towers Watson Pennsylvania Inc Investing $13,333 Information Services Broadridge Securities $8,329 Computershare, Inc. Software Services $6,432 Georgeson Inc. Proxy Solicitation $1,558 Services Illinois Stock Transfer Company Stock Transfer $814 Administration/ Services Retirement Solutions Advisors Financial Advisors $750 Services Business Wire, Inc. Public Relations $570 Services PrecisionIR, Inc. Investor Relations $400 Services Mediant Communications LLC Proxy Services $103 CUSIP Service Bureau IT Services $100 NEC HOLDINGS: Wins Approval for Sale to Gores Affiliates -------------------------------------------------------- Michael Bathon at Bloomberg News reports that National Envelope Corp. won permission from Bankruptcy Judge Peter J. Walsh to sell the business to affiliates of private-equity firm Gores Group LLC under a contract valued at $208 million, including cash of $149.9 million. Part of the remainder of the price is $37.7 million in second-lien debt going to lenders on Term Loan B. Gores guarantees the debt. According to the report, Gores was originally under contract for $134.5 million. The price rose at a 15-hour auction August 20. Competitor Cenveo Inc. and private-equity firm Sun Capital Partners were bidders at the auction. About NEC Holdings Uniondale, New York-based National Envelope Corporation -- http://www.nationalenvelope.com/-- is the largest manufacturer of envelopes in the world with 14 manufacturing facilities and 2 distribution centers and approximately 3,500 employees in the U.S. and Canada. The company is an environmental leader in the paper and envelope converting industries with certifications from the Forest Stewardship Council (FSC), Rainforest Alliance, Sustainable Forestry Initiative (SFI), Programme for the Endorsement of Forest Certification (PEFC), Chlorine Free Products Association, and Green Seal. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 on June 10, 2010 (Bankr. D. Del. Lead Case No. 10-11890). Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the claims and notice agent. NEC Holdings estimated assets and debts of $100 million to $500 million in its Chapter 11 petition. NETWURKS INC: CEO's Statement Didn't Create Administrative Claim ---------------------------------------------------------------- WestLaw reports that a statement made by a Chapter 11 debtor's chief executive officer to a wholesale provider of wireless Internet services, indicating his belief that the provider could not shut off services to the debtor's customers because the debtor was in bankruptcy, was not an inducement to provide postpetition services satisfying the prong of the test for determining whether a debt would be afforded administrative priority that required a debt to arise from a transaction with the debtor-in-possession. The statement did not exhibit a knowing acceptance of or desire for the benefit being obtained, particularly since the CEO had told the provider's principals that it would not pay for continued services. Moreover, the CEO, a non-lawyer, was giving a hesitant opinion on the state of the law, rather than expressing a desire to continue the parties' relationship, and the provider was motivated to continue services due to a hope of acquiring the debtor's customers. Bertram Communications LLC v. Netwurx, Inc., --- B.R. ----, 2010 WL 3022214 (E.D. Wis.) (Stadtmueller, J.). This ruling affirms a Feb. 27, 2009, decision by the Honorable Susan V. Kelley in the Bankruptcy Court. In a footnote, the Honorable J.P. Stadtmueller says that "it borders on the absurd that Bertram could reasonably rely or be induced by the assertion of a non-lawyer regarding the law." Netwurx, Inc., an Internet service provider based in Hartford, Wisc., sought chapter 11 protection (Bankr. E.D. Wisc. Case No. 08-26131) on June 5, 2008, represented by Guy K. Fish, Esq. -- gfish@charterinternet.com -- in Milton, Wisc. The Debtor quickly filed a chapter 11 plan to compromise and settle debts estimated at less than $10 million at the time of the filing. OLD COLONIES: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Old Colonies Investment, LLC 29400 Kohoutek Way Union City, CA 94587 Bankruptcy Case No.: 10-49531 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: Edward D. Jellen Debtor's Counsel: Sandra F. Banks, Esq. LAW OFFICES OF SANDRA F. BANKS 3941 Lincoln Avenue Oakland, CA 94602 Tel: (510) 336-2369 E-mail: sandrabankslaw@yahoo.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 Yashna Asnani, managing partner. ORIENTAL TRADING: Files for Ch. 11 with Pre-Arranged Plan --------------------------------------------------------- Oriental Trading Company, Inc. has reached agreement on the terms of a pre-arranged plan of reorganization with a substantial majority in principal amount of the Company's first lien lenders in order to significantly reduce debt and improve its capital structure and operating flexibility. The Company and certain of its affiliates initiated implementation of the plan with the filing of voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The Company will operate its business without interruption during the restructuring process, and looks forward to emerging from that process with a significantly strengthened balance sheet and reduced leverage. Under the plan, the Company will reduce its funded debt by over 70% to $200 million. In addition, the Company has obtained a Debtor-in-Possession financing facility of $40 million from a group of its existing lenders, which will provide sufficient funds to operate its business during the restructuring process. "We have been in active discussions with our lenders and have reached an agreement that will bring our capital structure in line with the current economic environment and the needs of the business," said Sam Taylor, CEO of Oriental Trading Company. "We are pleased with the ongoing support we have received from our lenders and believe this process will lead to a sustainable, long- term financial foundation for the company. Oriental Trading is a profitable company with a strong underlying business model and continues to generate double-digit operating margins." The Company is committed to delivering exceptional customer service and quality products. During the restructuring process the Company will continue normal business operations with no adverse impact to customers. About Oriental Trading Company Oriental Trading Company -- http://www.orientaltrading.com/-- is the nation's largest direct merchant of value-priced party supplies, arts and crafts, toys and novelties, and a leading provider of school supplies and affordable home decor and giftware. Recognized as one of the Top 50 Catalog Companies and one of the Top 10 Online Retailers for Customer Satisfaction, Oriental Trading Company employs approximately 3,000 employees and offers more than 30,000 products to individuals, teachers, schools, churches, businesses and not-for-profit organizations. From pink flamingos, party supplies and grass skirts to holiday decorations, scrapbooking supplies, and crafts, Oriental Trading Company makes the world more fun! PATRICK HACKETT: Has Until Sept. 8 to Revise Disclosure Statement ----------------------------------------------------------------- Brian Kelly, staff writer at Watertown Daily Times, reports that Patrick Hackett Hardware has until Sept. 8, 2010, to file an amended disclosure statement explaining a plan of reorganization after creditors opposed the Company's disclosure statement. A hearing is set for Sept. 22, 2010, to consider approval of the adequacy of the information in the disclosure statement in explaining the Chapter 11 plan. According to the report, KeyBank, the U.S. Trustee and the Official Committee of Unsecured Creditors submitted separate objections, complaining that the Disclosure Statement is inadequate and lacks information as to how the capital will be raised and schedules of payments. The Chapter 11 Plan According to Watertown Daily Times, under the Plan, the Company hopes to pay off its debts from revenues and income generated by the continued operation of its business. It also will use $500,000 from its non-debtor parent, WiseBuys Inc., $200,000 from Seaway Valley Capital Corp., of which WiseBuys is a subsidiary, and $200,000 from the sale of property in Canton and Ogdensburg. About Patrick Hackett Patrick Hackett Hardware Company began in 1830 as a hardware store in upstate New York. Hacketts now operates full-service department stores and a specialty store, selling a full line of clothes, consumer electronics, cell phones, shoes, housewares, hardware and others. Patrick Hackett filed for Chapter 11 on November 10, 2009 (Bankr. N.D. N.Y Case No. 09-63135). The Debtor estimated less than $10 million in total assets in its Chapter 11 petition. Hackett's Stores, Inc., is the parent company of Patrick Hackett. Hackett's Stores (Pink Sheets:HCKI) is a holding of Seaway Valley Capital Corporation (Pink Sheets:SEVA). Hackett's Stores is not nor has ever been in bankruptcy or bankruptcy protection. PETTERS WORLDWIDE: Petters to Plead Guild for Fraud & Conspiracy ---------------------------------------------------------------- David Phelps at Star Tribune reports that Doug Kelley, the receiver for Tom Petters, agreed with Polaroid trustee John Stoebner and the government to enter criminal guilty plea for Tom Petters' Petters Group Worldwide and Petters Co. Inc. According to Star Tribune, the agreement is designed to speed up collection of ill-gotten gains for faster distribution to victims and investors, Mr. Phelps relates. Mr. Petters' units were charged with fraud and conspiracy. The report relates that the agreement notes that investors and creditors have substantially similar claims pending in both bankruptcy and federal district court and that those lawsuits require duplicative legal work that "strain already limited resources" and pit the receivership, trustee and government against each other while seeking the same assets, according to the report. About Petters Group Worldwide LLC Based in Minnetonka, Minnesota, Petters Group Worldwide LLC is named for founder and chairman Tom Petters. The group is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide, LLC. Petters Company, Inc., Petters Group Worldwide, LLC, and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Case No. 08-45257) on October 11, 2008. James A. Lodoen, Esq., at Lindquist & Vennum P.L.L.P., serves as the Debtors' counsel. In its petition, Petters Company, Inc., estimated debts of between $500 million and $1 billion, while its parent, Petters Group Worldwide, LLC, estimated debts of not more than $50,000. As reported in the Troubled Company Reporter on October 7, 2008, Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on October 6, 2008 . Petters Aviation, LLC is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Inc., Sun Country's parent company. PHYTOMEDICAL TECH: Posts $154,700 Net Loss in June 30 Quarter ------------------------------------------------------------- PhytoMedical Technologies Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $154,691 on zero revenues for the three months ended June 30, 2010, compared with net loss of $75,458 on zero revenues for the same period a year ago. At June 30, 2010, the Company's consolidated balance sheet showed $307,128 in total assets, $145,444 in total liabilities, and $161,684 in total stockholders' equity. The Company noted that it has not generated any revenues, has an accumulated deficit of $23,838,950 as of June 30, 2010 and does not have positive cash flows from operating activities. In addition, the Company has expended a significant amount of cash in developing its technology and expects to incur additional losses as it continues to develop its technologies. Management recognizes that in order to meet the Company's capital requirements, and continue to operate, additional financing will be necessary. "If the Company is unable to raise additional capital or generate positive cash flow, it is unlikely that the Company will be able to continue as a going concern," according to the Form 10-Q. A full-text copy of the Form 10-Q is available for free at: http://ResearchArchives.com/t/s?69cd About PhytoMedical Technologies Headquartered in Princeton, New Jersey, PhytoMedical Technologies Inc. (OTC BB: PYTO; FWB: ET6) -- http://www.PhytoMedical.com-- together with its wholly owned subsidiaries, is a pharmaceutical company focused on research, development and commercialization of pharmaceutical products. POINT BLANK: Fighting Against Bids for Ch. 11 Trustee, Examiner --------------------------------------------------------------- Dow Jones DBR Small Cap reports that Point Blank Solutions Inc. and its secured lender are fighting back against: -- a request by the official committee of unsecured creditors for appointment of an examiner in the Debtor's Chapter 11 case; and -- a separate request by the United States Trustee for appointment of an independent trustee to oversee the case. Dow Jones reports that the committee and the U.S. Trustee are wary of the Debtor's ties to Steel Partners II LP, the provider of both Point Blank's pre-bankruptcy and post-bankruptcy financing. The groups also harbor concerns about the company's past, which creditors describe as a "complex, turbulent and dark history." According to Bloomberg News, the motion for an examiner, filed on July 30, said there is a need to learn whether Steele Partners is operating in good faith. Steele is providing a $20 million loan for the Chapter 11 case on terms requiring a sale or reorganization plan by September. Dow Jones also notes the Debtor's founder, former chief executive and chairman, David H. Brooks, is on trial in New York on charges of securities fraud, mail and wire fraud, insider trading and obstruction of justice, with a jury currently deliberating in the case. About Point Blank Headquartered in Pompano Beach, Florida, Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, well as select international markets. The Company is recognized as the largest producer of soft body armor in the U.S. The Company maintains facilities in Pompano Beach, Florida and Jacksboro, Tennessee. Point Blank Solutions filed for Chapter 11 on April 14, 2010 (Bankr. D. Del. Case No. 10-11255). Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves as corporate counsel. T. Scott Avila of CRG Partners Group LLC is the restructuring officer. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Equity Security Holders in the case. The Equity Committee has tapped Morrison Cohen LLP, and The Bayard, P.A., as counsel. PROCONN, LLC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: ProConn, LLC 10077 South 134th Street Omaha, NE 68138 Bankruptcy Case No.: 10-82437 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court District of Nebraska (Omaha Office) Judge: Thomas L. Saladino Debtor's Counsel: James J. Niemeier, Esq. MCGRATH, NORTH, MULLIN & KRATZ, P.C. First National Tower, Suite 3700 1601 Dodge Street Omaha, NE 68102 Tel: (402) 341-3070 Fax: (402) 341-0216 E-mail: jniemeier@mnmk.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $0 to $50,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/neb10-82437.pdf The petition was signed by Stephen J. Price, president and CEO of Professional Veterinary Products, Ltd. PROFESSIONAL VETERINARY: Case Summary & Creditors List ------------------------------------------------------ Debtor: Professional Veterinary Products, Ltd. 10077 South 134th Street Omaha, NE 68138 Bankruptcy Case No.: 10-82436 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court District of Nebraska (Omaha Office) Judge: Thomas L. Saladino Debtor's Counsel: James J. Niemeier, Esq. Michael T. Eversden, Esq. Robert J. Bothe, Esq. Robert P. Diederich, Esq. MCGRATH, NORTH, MULLIN & KRATZ, P.C. First National Tower, Suite 3700 1601 Dodge Street Omaha, NE 68102 Tel: (402) 341-3070 Fax: (402) 341-0216 E-mail: jniemeier@mnmk.com meversden@mcgrathnorth.com rbothe@mnmk.com rdiederich@mcgrathnorth.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Stephen J. Price, president and chief executive officer. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Pfizer Trade $9,210,189 P.O. Box 747029 Pittsburgh, PA 15274-7029 Lionel Reilly SERP $3,276,536 20620 Corral Road Elkhorn, NE 68022 Boehringer Ingelheim Vetmedica Trade $2,179,703 P.O. Box 5849 Carol Stream, IL 60197-5849 Intervet Inc/Schering Plough Trade $1,840,646 P.O. Box 198428 Atlanta, GA 30384-8428 Idexx Distribution Corporation Trade $1,444,037 P.O. Box 101327 Atlanta, GA 30392-1327 Novartis Animal Health US Inc Trade $964,932 P.O. Box 402925 Atlanta, GA 30384-2925 Merial Limited Trade $751,473 P.O. Box 409546 Atlanta, GA 30384-9546 Agri Laboratories Ltd Inventory $567,802 P.O. Box 802278 Kansas City, MO 64180-2278 Kendall/Covidien Trade $426,490 Department 00 10318 Palatine, IL 60055-0318 Virbac Corp Trade $376,493 P.O. Box 731119 Dallas, TX 75373-1119 Jorgensen Laboratories Inc Trade $271,779 1450 N. Van Buren Avenue Loveland, CO 80538 Nutra-Blend LLC Trade $249,538 Top Rx Inc Trade $217,396 Neogen Corporation Trade $211,891 Bimeda Animal Health Inc Inventory $203,648 Norbrook Labs Trade $179,924 Ceva Animal Health Inc Inventory $179,760 Bayer Corporation Trade $176,575 Central Life Sciences/Vet Product Inventory $165,879 Labs West-Ward Pharmaceutical Corp Trade $165,779 PROFESSIONAL VETERINARY: Pursuing Sec. 363 Sale of All Assets ------------------------------------------------------------- Professional Veterinary Products Ltd. said it will continue to operate its business as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Before the filing, the Company evaluated a number of options including an overall reorganization of its business operations and sale of the business. At this point, the Company is pursuing a sale of substantially all of its assets pursuant to Section 363 of the Bankruptcy Code under a Bankruptcy Court supervised auction and sale process. The Board of Directors and Management believe that this course of action will be in the best interests of all of the stakeholders and will maximize value for all of the constituents. Potential bidders may contact Alex Smith or James Cullen of Alliance Management at (952) 475-2236. All other inquiries should be directed to Cindy Christensen at (402) 829-5203. On Aug. 9, 2010, the Company notified under the federal Worker Adjustment and Retraining Notification Act all employees of the Company that each of their employment with the Company is expected to terminate on Oct. 11, 2010 or a date within 14 days thereafter. The Company said it is unable to make a good faith estimate of the amount or range of amounts expected to be incurred in connection with the termination of employees, either with respect to each major type of cost or with respect to the total amount, or an estimate of the amount or range of amounts that will result in future cash expenditures. The Company reported $89.79 million in total assets, $78.23 million in total liabilities, and a $11.56 million stockholders' equity for the quarterly period ended June 30, 2010. About Professional Veterinary Professional Veterinary Products Ltd. -- http://.pvpl.com/-- operates a veterinary supply company owned and managed by veterinarians. Includes company information, products, and an online tour. Professional Veterinary sought Chapter 11 protection from creditors on August 20 in Omaha, Nebraska (Bankr. D. Neb. Case No. 10-82436). Closely held Professional Veterinary is a Nebraska- based veterinary supply distributor. It estimated assets and debts of $50 million to $100 million in its Chapter 11 petition. Affiliates ProConn and Exact Logistics also filed for Chapter 11. The Company has hired McGrath North Mullin & Kratz PC LLO, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. PROJECT PLAYLIST: Universal Disputes Bid to Use Cash Collateral --------------------------------------------------------------- Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports that UMG Recordings Inc. is urging the U.S. Bankruptcy Court in Los Angeles to deny Project Playlist Inc.'s request to use cash that serves as collateral for its sole secured creditor. According to Dow Jones, Universal Music Group said in court papers on Monday that, as the Debtor's largest creditor and secured creditor, and the owner of countless copyrights which are being infringed even now, it cannot in good conscience consent to use of cash collateral for the conduct of a business based upon the illegal use of copyrighted material owned by UMG and other entities. The Bankruptcy Court was slated to consider the Debtor's request on Wednesday. Dow Jones relates that UMG in April 2008 sued Project Playlist in federal court for its alleged "massive infringement" of UMG's copyrights. The two eventually settled, with Project Playlist promising UMG $15.7 million, granting the label a blanket lien on its assets and agreeing to operate its business going forward under a licensing agreement with the label. However, UMG said Project Playlist "defaulted almost immediately" on the agreement, causing the label to terminate the licensing agreement and win a $16.5 million legal judgment against Project Playlist. Now, UMG is accusing Project Playlist of continuing to make its songs available to users even after the licensing agreement's termination. According to Dow Jones, Project Playlist says it's not doing anything wrong by continuing to operate the so-called low-quality version of its service, in which the site acts as a search engine to link users with songs posted elsewhere online. The company says it must be allowed to tap the cash collateral so it can continue operating and searching for new investors. All of this will eventually allow Project Playlist to pay UMG and the other record labels it owes legal judgments to as well as to continue negotiating new licensing agreements so it can offer a premium service to users, the company said. Project Playlist Inc. provides an online service that allows users to create and share music playlists. Project Playlist, doing business as Playlist.com, filed for Chapter 11 on Aug. 6, 2010 (Bankr. C.D. Calif. Case No. 10-42927). The Debtor estimated assets of $1 million to $10 million and debts of $10 million to $50 million in its Chapter 11 petition. PULTEGROUP INC: Fitch Affirms 'BB+' Issuer Default Rating --------------------------------------------------------- Fitch Ratings has affirmed PulteGroup, Inc.'s ratings: PulteGroup, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured debt at 'BB+'; -- Unsecured bank credit facility at 'BB+'. Centex Corp.: -- IDR at 'BB+'; -- Senior unsecured debt at 'BB+'. The Rating Outlook has been revised to Stable from Negative. Following the August 2009 closing of its merger with Centex, Centex became a wholly owned subsidiary of Pulte. Pulte assumed Centex's unsecured notes, which now benefit from the guarantees of Pulte's homebuilding operating subsidiaries. Similarly, Pulte's unsecured notes and revolving credit facility also have the guarantees of Centex's homebuilding operating subsidiaries. The rating affirmation for Pulte reflects the company's broad geographic and product diversity, a long track record of adhering to a disciplined financial strategy and somewhat more recently an aggressive growth strategy. The merger with Centex last year further enhanced the company's broad geographic and product line diversity. Centex's significant presence in the entry level and first move-up categories complements Pulte's strength in both the move-up and active adult segments. Pulte's Del Webb (active adult) segment is perhaps the best recognized brand name in the homebuilding business. The Outlook revision to Stable from Negative reflects the company's improved operating results and its very strong liquidity position as well as the successful execution of its debt repayment strategy following the merger with Centex in August 2009. As expected, the company completed the repurchase of $1.5 billion of senior notes through a tender offer. The company's debt maturities are well-laddered, with roughly $525 million of debt maturing through the end of fiscal year 2012. Pulte ended the June 2010 quarter with $2.75 billion of cash on the balance sheet and $400 million of borrowing availability under its $750 million unsecured revolving credit facility. The rating and Outlook also consider the integration risk associated with a sizeable acquisition. Although Pulte has successfully integrated large acquisitions in the past, there is execution risk upon implementing a very sizeable combination at a time when the operating environment remains difficult for all industry participants. However, this is less of a concern now as the integration of Centex seems to be progressing well. Homebuilding selling, general and administrative expenses (SG&A expenses) as a percentage of homebuilding revenues fell 570 bps to 11.6% during the second quarter compared to 17.3% last year. The company had initially targeted $350 million of cost savings for the combined company in calendar 2010. Through the first half of the year, Pulte has realized approximately $200 million in SG&A savings. The company also expects an additional $150 to $200 million in annual savings on purchasing synergies. At the end of June 2010, Pulte controlled a roughly 7.8-year supply of land based on latest 12 months (LTM) deliveries. Roughly 90.5% of the 149,631 lots controlled are owned and the balance are options. Total lots controlled include approximately 48,000 finished lots and an additional 21,000 lots currently in the development pipeline. So far, the company has been relatively cautious in committing to incremental land purchases due to its sizeable land position. Through the first half of 2010, the company has spent approximately $118 million on land purchases and $274 million on land development expenditures. Pulte expects to spend about $1 billion on land and development spending this year. As expected, the housing recovery has been irregular so far and to date rather anemic. Very recent new home and existing home sales data suggest that the national housing tax credit pulled sales forward into March and April. This has left a vacuum of demand (especially from entry-level buyers) in its absence. Fitch is not convinced that demand will collapse further, but rather anticipates the current low level of activity may persist through the summer and, perhaps, fall. And the recovery over the next few years is expected to be less robust than has been typical in the past. If the economy and consequently housing were to experience a double dip downturn in the 2010/2011 period, Pulte has the liquidity to sustain itself, primarily utilizing its current cash position. Future ratings and Outlooks will also be influenced by broad housing market trends as well as company specific activity, such as land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, debt levels and free cash flow trends and uses. QIMONDA RICHMOND: Court Rejects Google's Conversion Argument ------------------------------------------------------------ WestLaw reports that the terms and conditions incorporated into a customer's purchase orders for memory modules did not render inapplicable the provision of California's version of the Uniform Commercial Code indicating that title to goods reverted to a seller if the buyer returned or refused to retain the goods for any reason. Thus, the customer relinquished title to the modules when it returned them to the Chapter 11 debtor-manufacturer, and the title reverted to the debtor. Consequently, the debtor did not convert the customer's modules when it resold them after return, as the customer contended in asserting an administrative expense claim. Nothing in the terms and conditions specifically stated that the title to any returned goods remained in the customer notwithstanding the effect of the UCC provision, and some of the remedies available to the customer under the terms and conditions were directly inconsistent with the customer retaining title to goods, such as debtor's entitlement to replace a returned module with another similar module or keep it and refund the customer's money. In re Qimonda Richmond, LLC, --- B.R. ----, 2010 WL 3087451 (Bankr. D. Del.) (Walrath, J.). In this dispute, Google, Inc., argued that its claim should be accorded administrative expense priority because the Debtor improperly converted and resold memory modules costing $1.2 million that Google had returned to the Debtor for repair prepetition. The Honorable Mary F. Walrath sided with the Debtor and held that Google holds a general unsecured claim. About Qimonda AG Qimonda AG (NYSE: QI) -- <http://www.qimonda.com/>http://www.qimonda.com/-- is a leading global memory supplier with a diversified DRAM product portfolio. The Company generated net sales of EUR1.79 billion in financial year 2008 and had -- prior to its announcement of a repositioning of its business -- approximately 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond, Va. Qimonda AG commenced insolvency proceedings in a local court in Munich, Germany, on January 23, 2009. On June 15, 2009, QAG filed a petition (Bankr. E.D. Va. Case No. 09-14766) for relief under Chapter 15 of the U.S. Bankruptcy Code. Qimonda North America Corp., an indirect and wholly owned subsidiary of QAG, is the North American sales and marketing subsidiary of QAG. QNA is also the parent company of Qimonda Richmond LLC. QNA and QR sought Chapter 11 protection (Bankr. D. Del. Case No. 09-10589) on Feb. 20, 2009. Mark D. Collins, Esq., Michael J. Merchant, Esq., and Maris J. Finnegan, Esq., at Richards Layton & Finger PA, represent the Debtors. Roberta A. DeAngelis, the United States Trustee for Region 3, appointed seven creditors to serve on an official committee of unsecured creditors. Jones Day and Ashby & Geddes represent the Committee. In its bankruptcy petition, Qimonda Richmond, LLC, estimated more than US$1 billion in assets and debts. The information, the Debtors said, was based on Qimonda Richmond's financial records which are maintained on a consolidated basis with Qimonda North America Corp. QUANTUM CORPORATION: Eight Elected to Board of Directors -------------------------------------------------------- Quantum Corporation said, at the Annual Meeting of Stockholders on Aug. 18, 2010, proxies representing 196,389,668 shares of common stock or approximately 90.90% of the total outstanding shares were present. Shareholders voted in favor of the election of these individuals for the Board of Directors: * Paul R. Auvil III * Richard E. Belluzzo * Michael A. Brown * Thomas S. Buchsbaum * Edward M. Esber, Jr. * Elizabeth A. Fetter * Joseph A. Marengi * Dennis P. Wolf Furthermore, the stockholders ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm of the Company for the fiscal year ending March 31, 2011. The proposal received 196,022,944 votes for, 195,579 votes against, 171,145 abstentions, and no broker non- votes. About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. * * * The company balance sheet for June 30, 2010, showed $477.2 million in total assets, $216.8 million in total current liabilities, $351.0 million in total long-term liabilities, and $90.7 million in stockholders' deficit. RAME PROPERTIES: Case Summary & 16 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Rame Properties, LLC 4828 Ashford Dunwoody Road, Suite 400 Dunwoody, GA 30338 Bankruptcy Case No.: 10-83988 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: A. Keith Logue, Esq. LAW OFFICE OF A. KEITH LOGUE 3423 Weymouth Ct. Marietta, GA 30062 Tel: (770) 321-5750 Fax: (770) 321-5751 E-mail: keith@logue-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb10-83988.pdf The petition was signed by Moshe Manoah, manager. RAYMOND WHYTE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: Raymond Lee Whyte Cynthia Marie Whyte 10793 S. Bear Table Tank Dr. Vail, AZ 85641 Bankruptcy Case No.: 10-26381 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Eric Slocum Sparks, Esq. ERIC SLOCUM SPARKS PC 110 S Church Ave #2270 Tucson, AZ 85701 Tel: (520) 623-8330 Fax: (520) 623-9157 E-mail: eric@ericslocumsparkspc.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/azb10-26381.pdf RADIO ONE: S&P Downgrades Corporate Credit Rating to 'SD' --------------------------------------------------------- Standard & Poor's Rating Services said that it lowered its corporate credit rating on Lanham, Md.-based radio broadcaster Radio One Inc. to 'SD' (selective default) from CCC+' because of its failure to make the Aug. 15, 2010, interest payment on its 6.375% subordinated notes due 2013. Bank lenders blocked the interest payment due to ongoing financial covenant violations in its credit agreement. Notwithstanding this covenant violation, S&P believes the company has the financial capacity and liquidity to meet its debt obligations. At the same time, S&P lowered the issue-level rating on Radio One's 6.375% subordinated notes to 'D' from 'CCC-', while keeping the recovery rating on this debt unchanged at '6', indicating S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default. In addition, S&P revised the CreditWatch listing on the company's existing $800 million senior secured credit facilities to negative from developing, and kept the '3' recovery rating on this debt unchanged, indicating S&P's expectation for meaningful (50% to 70%) recovery for lenders in the event of a payment default. S&P also revised its CreditWatch listing on Radio One's existing 8.875% senior subordinated notes due 2011 to negative from developing. The recovery rating on this debt remains unchanged at '6', indicating S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default. At the same time, S&P has withdrawn its preliminary 'BB-' issue- level rating and recovery rating of '1' on Radio One's proposed $400 million senior secured credit facility consisting of a $50 million revolving credit facility due 2014 and a seven-year $350 million term loan B. The withdrawal of the preliminary rating reflects significant uncertainty surrounding the timing and potential for changes in terms of a refinancing transaction. "The rating actions reflect Radio One's failure to make its Aug. 15 interest payment on its 6.375% senior subordinated notes, heightened near-term refinancing risk following the company's third extension of its exchange offer for its subordinated notes, and ongoing covenant violations stemming from its existing credit agreement," said Standard & Poor's credit analyst Michael Altberg. Radio One received an extension of its forbearance agreement with existing bank lenders to Sept. 10, 2010, with respect to events of default under its total leverage covenant. On Aug. 5, 2010, the company's senior lenders blocked the Aug. 15 interest payment on Radio One's 6.375% subordinated notes, based on the terms of the amended forbearance agreement. The company has a grace period of 30 days to cure the default according to terms under the indenture. Although a payment default has not occurred according to the legal provision of the notes, Standard & Poor's considers it a default when a payment is not made, even if a grace period exists. If the company is unable to amend its credit agreement to provide covenant relief prior to the Sept. 10, 2010, expiration of the forbearance agreement, and therefore unable to cure the cash default by Sept. 15, 2010, on the 6.375% subordinated notes, the company would cross-default on all outstanding debt. Radio One is primarily a radio broadcaster targeting the African- American audience, with a portfolio of about 53 radio stations in 16 of the top 50 African American markets. Within its radio segment, there is revenue concentration risk among four markets -- Houston, Texas; Washington, DC; Atlanta, Ga.; and Baltimore, Md. - - which together account for 50.1% of radio revenue. In addition to a current 37% interest in TV One, the company has a 53.5% ownership interest in REACH Media Inc., a programming syndication business that is in a transition to a new ad sales representation arrangement, which S&P believes will adversely affect near-term profitability at the segment. Interactive One is the company's online unit, which is currently generating an EBITDA loss and could take longer to reach breakeven than originally anticipated. REUNION INDUSTRIES: C. Bradley and J. Poole Retire as Directors --------------------------------------------------------------- Effective July 1, 2010, Charles E. Bradley,Sr. and John G. Poole retired as directors of the Reunion Industries, Inc. About Reunion Industries Reunion Industries, Inc. filed for Chapter 11 protection on November 26, 2007 (Bankr. D. Conn. Case No. 07-50727). Two Reunion Industries stockholders, Charles E. Bradley, Sr. Family Limited Partnership, and John Grier Poole Family Limited Partnership filed separate Chapter 11 petitions on the same day (Bankr. D. Conn. Case Nos. 07-50725 and 07-50726). As reported in the Troubled Company Reporter on June 15, 2010, On May 20, 2010, the Bankruptcy Court entered a Final Decree terminating the Company's Chapter 11 case. However, the Bankruptcy Court retained jurisdiction to adjudicate two remaining disputed and unresolved claims that were filed against the Company in the Chapter 11 Case. RITE AID: Completes Refinancing of $1.175 Bil. Credit Facility -------------------------------------------------------------- Rite Aid Corporation has successfully completed the refinancing transactions that include a new $1.175 billion revolving credit facility due 2015 and the issuance of $650 million aggregate principal amount of 8.00% senior secured notes due 2020. Rite Aid has also amended its senior credit facility. The new $1.175 billion revolving credit facility due 2015 replaces Rite Aid's existing $1.175 billion revolving credit facility due 2012. The new revolving credit facility has reduced pricing and a five-year maturity, although the maturity shall be April 18, 2014 in the event that Rite Aid does not repay, refinance or otherwise extend the remaining term loans under its senior credit facility prior to that time and meets certain other conditions. The amendments to its senior credit facility loosen the fixed charge coverage ratio test and permit the mandatory repurchase of Rite Aid's existing 8.5% convertible notes due 2015, subject to the satisfaction of certain conditions. The proceeds of the offering of the 8.00% senior secured notes due 2020 were used, together with available cash, to repay and retire Rite Aid's $648.0 million Tranche 4 Term Loan due 2015 under its senior secured credit facility, and to fund related fees and expenses. About Rite Aid Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The Company operates more than 4,900 stores in 31 states and the District of Columbia. * * * According to the Troubled Company Reporter on Aug. 11, 2010, Moody's Investors Service assigned a B3 rating to Rite Aid Corporation's proposed $650 million senior secured first lien notes due 2020. All other ratings including the company's Caa2 Corporate Family Rating, Caa2 Probability of Default Rating, and SGL-3 Speculative Grade Liquidity rating were affirmed. The rating outlook is stable. Standard & Poor's Ratings Services in August also said it assigned its 'B+' issue rating and '1' recovery rating to Harrisburg, Pa.- based Rite Aid Corp.'s proposed $650 million senior secured notes. The '1' recovery rating indicates S&P's expectation for very high (90- 100%) recovery in the event of a payment default. At the same time, S&P affirmed all ratings on the company, including the 'B-' corporate credit rating. The outlook is stable. ROCKWOOD INSURANCE: Creditors Have Until Sept. 24 to File Claims ---------------------------------------------------------------- The Commonwealth Court of Pennsylvania has ordered that creditors of Rockwood Insurance Company have until Sept. 24, 2010, to file proofs of claim against the liquidating insurance concern. Claim forms must be delivered to: Proof of Claim Department Statutory Liquidator for Rockwood Insurance Company Pennsylvania Insurance Department 901 North 7th Street Harrisburg, PA 17102 Rockwood Insurance Company underwrote workers' compensation, automobile, property, commercial multi-peril, medical malpractice, inland marine and general liability insurance. The insurer was placed into liquidation on Aug. 26, 1991. As of June 30, 2009, the liquidator estimates $82.9 million are available to distribute to satisfy $33.7 million of administrative claims, $326.9 million of claims for policy benefits, and less than $500,000 of lower- priority claims. ROPER INDUSTRIES: Moody's Affirms 'Ba1' Senior Subordinate Rating ----------------------------------------------------------------- Moody's Investors Service affirmed all ratings of Roper Industries Inc. including its Baa3 senior unsecured and Ba1 senior subordinate ratings, and changed the ratings outlook to positive from stable. The outlook change reflects the likelihood for near term upward ratings movement should Roper sustain its key credit metrics without interruption from recent and any future acquisition activity. Outlook Actions: Issuer: Roper Industries, Inc. -- Outlook, Changed To Positive From Stable Roper's Baa3 rating is supported by the company's portfolio of diverse businesses that typically have leading market positions and are focused on end-markets that have attractive growth characteristics. In addition, Roper's businesses collectively have limited exposure to any one customer, product or end-market and generate meaningful amounts of recurring revenues from consumables and subscription-based services. Despite some of its business segments recording double digit declines in revenues and orders during the recent downturn, Roper sustained its strong margins and solid free cash flow while its key credit metrics have remained at levels of strength for its rating. Order trends have improved meaningfully through H1/2010, which should support earnings and cash flow growth into 2011 in Moody's opinion. Moody's expects Roper will use its internally generated cash flow to reduce higher leverage arising from the US$525 million cash acquisition of iTradeNetwork, Inc. last month. Roper's rating remains constrained by the potential for its leverage to increase due to debt-financed acquisitions as well as the company's concentration of exposure within North America. For an upgrade consideration, Moody's will need to gain confidence in the company's ability to successfully integrate its recent relatively large-sized acquisition while maintaining its key credit metrics. Specifically, sustained metrics associated with upwards rating action would include debt-to-EBITDA towards 2.5x and free cash flow/debt above 20%. A downgrade is unlikely currently, however it would occur should additional debt-financed acquisitions result in sustained debt-to-EBITDA towards 3.0x, EBITA/ Interest below 4.5x or free cash flow/ debt below 10%. Moody's last rating action on Roper was on August 26, 2009, when Moody's assigned a Baa3 rating to the company's senior unsecured notes issue. Roper Industries Inc., headquartered in Sarasota, Florida, is a diversified company that designs, manufactures and distributes engineered products, and provides software solutions and services across several end markets globally. Revenues for the last twelve months ending June 30, 2010, were about $2.1 billion. ROSALIND NELSON: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Rosalind Merrifield Nelson Barrie Theodore Nelson 5260 Horizon Drive Malibu, CA 90265 Bankruptcy Case No.: 10-20215 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Central District of California (San Fernando Valley) Debtor's Counsel: Gerald Wolfe, Esq. LAW OFFICE OF GERALD WOLFE 19600 Fairchild Road, Suite 295 Irvine, CA 92656 Tel: (949) 257-0961 Fax: (949) 608-8930 E-mail: gerald@gwesq.com Scheduled Assets: $1,670,450 Scheduled Debts: $3,792,421 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-20215.pdf ROUGE STEEL: PBGC Wins Suit to End Pension Plans ----------------------------------------------- Bankruptcy Law360 reports that the Pension Benefit Guaranty Corp. has won a bid for summary judgment in its lawsuit seeking to terminate four Rouge Steel Co. pension plans in the wake of the steel producer's 2003 bankruptcy filing. In an order issued Monday in the U.S. District Court for the Eastern District of Michigan, Judge George Steeh sided with the PBGC's request to set the pension plans' termination. RUSSEL CLARK: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------- Joint Debtors: Russel Thad Clark dba R.V. Clark, LLC Central Motor Parts, Inc. Central Aviation, Inc. Virginia Leigh Clark 10585 S. Las Colinas Lane Yuma, AZ 85367 Bankruptcy Case No.: 10-26277 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court District of Arizona (Yuma) Judge: Eileen W. Hollowell Debtor's Counsel: Robert M. Cook, Esq. LAW OFFICES OF ROBERT M. COOK PLLC 219 W Second St. Yuma, AZ 85364 Tel: (928) 782-7771 Fax: (928) 782-7778 E-mail: robertmcook@yahoo.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-26277.pdf SAINT VINCENTS: Has Deals to Sell Three Properties -------------------------------------------------- Crain's New York Business reports that Saint Vincent Catholic Medical Centers has signed a contract to sell St. Vincent's Hospital Westchester to Saint Joseph's Medical Center in Yonkers. The 65-acre Westchester property is still operating as a psychiatric facility. Crain's reports that Saint Joseph's filed a certificate of need for the sale earlier this month; it will need state regulatory approvals and a blessing from the bankruptcy court. Crain's also reports that SVCMC is seeking to sell the Bishop Francis J. Mugavero Center for Geriatric Care, and St. Jerome's Health Services Corp., which does business as Holy Family Home. The report says SVCMC has deals to sell the two Brooklyn nursing homes to SV Operating I and SV Land I. According to Crain's, both companies signed asset purchase agreements with SVCMC to buy operating and real estate assets. An auction is set for Sept. 21. If the companies are outbid, the breakup fee for Holy Name is 2% of the purchase price, or $337,500. For the Mugavero Center, the breakup fee is $602,300. Crain's also reports the bankruptcy court last week approved the transfer of SVCMC's two home health programs to the Visiting Nurse Service of New York and to North Shore University Hospital. Earlier sales included those of the system's cancer center and its hospice. About SVCMC St. Vincents Catholic Medical Centers returned to bankruptcy court by filing another Chapter 11 petition April 14, 2010, in New York (Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed assets of $348 million against debt totaling $1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter 11 effort. Although the hospitals emerged from the prior reorganization in July 2007 with a Chapter 11 plan said to have a "a realistic chance" of paying all creditors in full, the bankruptcy left the medical center with more than $1 billion in debt. The new filing occurred after a $64 million operating loss in 2009 and the last potential buyer terminated discussions for taking over the flagship hospital. Saint Vincents Catholic Medical Centers -- http://www.svcmc.org/ -- is anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Saint Vincent Catholic Medical Centers of New York and six of its affiliates first filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). SCO GROUP: Wins Court OK to Sell Software Business -------------------------------------------------- SCO Group Inc. has received court permission to sell off its software business, following the company's loss in a copyright suit against Novell Inc. over the rights to the Unix operating system, Bankruptcy Law360 reports. Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware on Monday authorized the marketing, auction and sale of substantially all of SCO's software business assets, according to Law360. About SCO Group The SCO Group (SCOXQ.PK) -- http://www.sco.com/-- is a provider of UNIX software technology. Headquartered in Lindon, Utah, SCO has a worldwide network of resellers and developers. The Company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on September 14, 2007 (Bankr. D. Del. Lead Case No. 07-11337). Paul Steven Singerman, Esq., and Arthur Spector, Esq., at Berger Singerman P.A., represent the Debtors in their restructuring efforts. James O'Neill, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, are the Debtors' Delaware and conflicts counsel. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in the Debtors' cases due to insufficient response from creditors. As of January 31, 2009, the Company had $8.78 million in total Assets, $13.30 million in total liabilities, and $4.52 million in stockholders' deficit. SECUREALERT INC: Inks GPS Monitoring Contract in Brazil ------------------------------------------------------- SecureAlert Inc., International Surveillance Services Corporation, and Empresa Brasileira de Seguranca Ltda. signed a GPS offender monitoring contract in Brazil. On Monday Aug. 16, 2010, the Superintendent of Correctional Services Mario Santa Maria Junior, in the Brazilian state of Rio Grande do Sul, signed an emergency contract with the Company through SecureAlert's Brazilian partners to immediately deploy 200 of the Company's TrackerPAL II(e) devices on offenders located in and around the metropolitan area of Porto Alegre. SUSEPE has already identified an initial 256 eligible offenders to participate in the program and has also communicated the need to publish requirements by the end of August 2010 for an additional 800 offenders to be monitored, while forecasting growth to 5,000 offenders in total, as offender electronic monitoring is introduced statewide throughout Rio Grande do Sul going forward. SecureAlert, Inc., together with its partners in Latin America, have worked for the last three years to create awareness and to demonstrate the advantages and benefits of offender monitoring technologies within Brazil and surrounding countries. The recognition of these efforts culminated on June 16, 2010 when Law 12.258 was approved and published by Luis Inacio Lula da Silva. The law authorizes offender electronic monitoring throughout Brazil, subject to certain conditions. The law signed by President Luiz Inacio Lula da Silva amends the Penal Code and the Penal Execution Law to provide for such monitoring and includes sanctions for non-compliance by offender participants. "This is a historical moment for SecureAlert, as it paves the way for additional contracts and opportunities that the Company has pending throughout the Region," said John Hastings President and Chief Operating Officer of SecureAlert. "Brazil in particular is very progressive in its thinking and creation of re-socialization initiatives, providing visionary support for both public safety and offender re-entry solutions, wherein electronic monitoring serves as one of many new tools and technologies that the government will utilize to successfully implement revolutionary correctional programs," said Mr. Hastings. Mr. Hastings further noted that over the past year, "SecureAlert and its proprietary TrackerPAL technologies and intervention solutions have received a great deal of recognition and public support, as illustrated by numerous articles and media coverage throughout Brazil, where the Company has successfully demonstrated and piloted its technologies for several state governments." About SecureAlert Headquartered in Sandy, Utah, SecureAlert, Inc. (formerly RemoteMDx, Inc.) (OTC BB: RMDX) -- http://www.securealert.com/-- and subsidiaries market and deploy offender management programs, combining patented GPS tracking technologies, fulltime 24/7/365 intervention-based monitoring capabilities and case management services. The Company's balance sheet as of March 31, 2010, showed $13,210,763 in assets, $9,367,296 of liabilities, and $3,843,467 of stockholders' equity. * * * As reported in the Troubled Company Reporter on January 18, 2010, Hansen, Barnett & Maxwell, P.C., in Salt Lake City, expressed substantial doubt about RemoteMDx, Inc., and subsidiaries' ability to continue as a going concern after auditing the Company's consolidated financial statements as of and for the years ended September 30, 2009, and 2008. The independent public accounting firm reported that the Company has incurred losses and has an accumulated deficit. SENIOR HOUSING: S&P Raises Corporate Credit Rating From 'BB+' ------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Newton, Mass.-based real estate investment trust Senior Housing Properties Trust to 'BBB-' from 'BB+'. At the same time, S&P affirmed its 'BBB-' issue-level rating on $425 million of senior unsecured notes and removed its recovery rating on the notes because Standard & Poor's does not maintain recovery ratings on debt issued by investment-grade companies. The outlook is stable. "S&P's ratings on Senior Housing Properties reflect significant portfolio growth in recent years and the demonstrated stability of the REIT's cash flow through the current economic downturn," said Standard & Poor's credit analyst James Fielding. "This stable cash flow and the adherence to relatively conservative financial policies continue to support leverage and coverage measures that compare favorably with those of similarly rated REITs." The ratings continue to acknowledge risks associated with a concentrated tenant base that relies on somewhat discretionary demand for senior housing. However, in S&P's view, Senior Housing Properties maintains capacity to absorb some diminution in rental income should it become necessary to renegotiate leases or replace a tenant-operator in several of its healthcare facilities. The stable outlook is supported by a conservatively leveraged balance sheet and above-average debt service coverage measures, compared with those of similarly rated peers. This relative financial strength provides senior housing with the flexibility to absorb a tenant default or negotiate moderately lower lease rates to support a weaker tenant. However, tenant concentration remains a key credit risk and an impediment to further positive rating momentum at this time. S&P expects cash flow to remain relatively stable over the next two years; however, S&P would lower its rating if adverse changes in the economy or the health care industry affect tenants in a way that compels Senior Housing Properties to reduce rents more than S&P's stress scenarios anticipate and fixed-charge coverage drops below 3.0x. Ratings would also come under pressure if funds from operations were not sufficient to fully cover all fixed charges plus common dividends. SIGMA INDUSTRIES: Announces Management Cease Trade Order -------------------------------------------------------- Sigma Industries Inc. was not in a position to file its audited financial statements for fiscal year ended April 24, 2010, related management's discussion and analysis and CEO and CFO certificates for the deadline of August 23, 2010. Further to the recent filing of its proposal in bankruptcy under the Bankruptcy and Insolvency Act, which was approved by its creditors on August 2, 2010 and ratified by the Superior Court of Quebec on August 3, 2010, Sigma is currently negotiating with its institutional lenders the last details for the renewal of credit facilities at its disposal and consequently does not expect to in a position to file its audited financial statements before September 13, 2010. The Company has applied to the Autorite des marches financiers, Alberta Securities Commission and the British-Columbia Securities Commission for a temporary management cease trade order (a "MCTO") under Policy Statement 12-203 which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company. An MCTO would not generally affect the ability of persons who have not been directors, officers or insiders of the Company to trade securities of the Company. The granting of a MCTO is at the discretion of AMF, ASC and BCSC and there is no assurance that such an order will granted. If the MCTO is granted, the Company intends to satisfy the provisions of the Alternative Information Guidelines as set out in the Policy Statement 12-203 for as long as the Company remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a press release. About Sigma Industries Sigma Industries Inc. (TSX-V: SIC.V), a leading composite and metal products manufacturer, has five operating subsidiaries and employs 350 people. The Company is active in the growing heavy- duty truck, coach, transit and bus, train and subway, machinery, agriculture, light forestry, and wind energy market segments. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SINCLAIR BROADCAST: Amends & Refinance Portion of Credit Facility ----------------------------------------------------------------- Sinclair Broadcast Group Inc. has refinanced a portion of its senior secured bank credit facility and amended certain of its terms. Under the amendment, Sinclair paid down $35.0 million of its existing $305.0 million term loan B from available cash on hand, leaving a remaining balance of $270.0 million. Pricing on the term loan B was also reduced by 50 basis points to LIBOR plus 4.00% with a LIBOR floor of 1.50%. The term loan B maturity of October 29, 2015 was unchanged. In addition, certain terms of the Bank Credit Agreement were also amended to provide Sinclair more incremental term loan capacity and more flexibility in using its cash balances and the revolving credit facility. About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. The Company's balance sheet at June 30, 2010, showed $1.53 billion in total assets, $1.71 billion in total liabilities, and a stockholders' deficit of $170.36 million. * * * Sinclair Broadcast has a 'B1' corporate family rating from Moody's. It has a 'B+' corporate credit rating from Standard & Poor's Ratings Services. "The CFR continues to reflect still high financial risk, nonetheless, and the inherent cyclicality of the broadcast television business, among other factors," Moody's said in August 2010. "The 'B+' rating reflects S&P's expectation that Sinclair will be able to reduce its leverage further by the end of 2010 through revenue and EBITDA growth and lower debt balances," explained Standard & Poor's credit analyst Deborah Kinzer in August. SOFTLAYER TECHNOLOGIES: S&P Withdraws 'B' Corporate Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it withdrew its 'B' corporate credit rating on privately held Dallas-based hosting and managed service provider Softlayer Technologies Inc. at the company's request. At the same time, S&P withdrew the 'B' issue rating and '3' recovery rating on the company's proposed $230 million of bank loan facilities, including a $190 million term loan due 2016, a $20 million delayed-draw term loan due 2016, and a $20 million revolving credit due 2015. These facilities were never completed as proposed. SOUTH COAST: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: South Coast Metal Finishing, Inc. dba West Coast Metal Finishing 5722 Bandera Street Los Angeles, CA 90058 Bankruptcy Case No.: 10-44684 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: David R Haberbush, Esq. HABERBUSH & ASSOCIATES, LLP 444 W Ocean Blvd., Suite 1400 Long Beach, CA 90802 Tel: (562) 435-3456 Fax: (562) 435-6335 E-mail: dhaberbush@lbinsolvency.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/cacb10-44684.pdf The petition was signed by Ernest Garcia, vice president. SPHERIS INC: MedQuist, CBay Settle $21 Million Claim ---------------------------------------------------- Bankruptcy Law360 reports that MedQuist Inc. and CBay Inc. have won court approval of a settlement of their $21 million claim stemming from their $116.3 million acquisition of the assets of Spheris Inc. Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware issued an order approving the deal Monday, saying the deal was in the best interests of Spheris, according to Law360. About Spheris Inc. Headquartered in Franklin, Tennessee, Spheris Inc. -- http://www.spheris.com/-- is a global provider of clinical documentation technology and services. Spheris Inc., along with five affiliates, filed for Chapter 11 on Feb. 3, 2010 (Bankr. D. Del. Case No. 10-10352). Attorneys at Young Conaway Stargatt & Taylor, LLP, and Willkie Farr & Gallagher LLP represent the Debtors in their Chapter 11 effort. Jefferies & Company serves as financial advisors to the Debtors. Attorneys at Schulte Roth & Zabel LLP and Landis Rath & Cobb LLP serve as counsel to the prepetition and DIP lenders. Garden City Group Inc. is claims and notice agent. The petition says that assets range from $50 million to $100 million while debts range from $100 million to $500 million. The estate of Spheris Inc. is now formally named SP Wind Down Inc. after it sold the business in April. CBay Inc.'s MedQuist Inc. purchased the domestic business of Spheris for $98.8 million. STATION CASINOS: Asks for Nod of Plan Settlement With Committee --------------------------------------------------------------- Debtors Station Casinos, Inc., and FCP PropCo, LLC, ask the Court to approve their stipulation with the Official Committee of Unsecured Creditors pursuant to which the Committee agreed to forbear from engaging in any litigation activity and support the Debtors' First Amended Joint Chapter 11 Plan of Reorganization. Pursuant to the Stipulation, the Debtors will modify the Plan to provide distribution to the general unsecured creditors. The Debtors assert that the Stipulation closes the door on litigation that would have proved very costly. "The settlement reflected in the Stipulation is a major step forward in confirming the Plan," says Paul S. Aronzon, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles, California. A full-text copy of the Committee Stipulation is available for free at http://bankrupt.com/misc/SCI_CommitteeStip728.pdf Expense Reimbursement The Debtors also seek the Court's authority to comply with the requirement of a Term Sheet that directs them to pay the expense reimbursement to the Put Parties. The Commitment Letter described in the Term Sheet represents a commitment of capital by the Put Parties in an amount of at least $35.3 million, and effectively requires the Put Parties to be prepared to fund an additional $64.6 million, the so-called Upsizing Commitment Amount. The "Put Parties" are entities affiliated with Fidelity Management & Research Company; Oaktree Capital Management, L.P.; and Serengeti Asset Management, L.P. The backstop provided by the Put Parties assures that the full amount of the Rights Offering will be funded. The Put Parties are substantial creditors of the Debtors, holding 40% or more of the unsecured senior notes issued by SCI. The Debtors agreed to pay the Put Parties' costs in an amount not to exceed $1.7 million, half paid upon entry of an order approving the Committee Stipulation and the remainder promptly after confirmation of the Plan. "The Court should approve the Expense Reimbursement as an expenditure of estate resources out of the ordinary course of business under the authority of Bankruptcy Code Section 363(b)(1)," Mr. Aronzon asserts. 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: Presents Settlement With Shareholders ------------------------------------------------------ Debtors Station Casinos, Inc., Fertitta Partners LLC and FCP Holding, Inc., ask the Court to approve a stipulation entered into by and among: (i) Debtor SCI; (ii) Debtor FCP Holding; (iii) Debtor Fertitta Partners, FJF Investco, LLC and LJF Investco, LLC; and (iv) FC Investor, LLC, FC Co-Investment Partners, L.P., Colony Investors VII, L.P., Colony VII FC Holdings, LLC, Colony VIII FC Holdings, LLC, Colony Investors VIII, L.P., Colony Parallel Investors VIII Holdings, L.P., Colony Parallel Investors VIII, L.P., Colony Parallel NA-RE Investors VIII Holdings 2C, L.P. and Colony Parallel NA-RE Investors VIII, L.P. Pursuant to the Stipulation, the direct and indirect shareholders of SCI have agreed not to take any action that would cause the Debtors to undergo an ownership change for the purpose of Section 382 of the Internal Revenue Code. According to the Debtors, the intent of the agreement is to preserve the value of the Debtors' substantial net operating loss carryforwards. As described in the Disclosure Statement, the Debtors and SCI's subsidiaries file a consolidated tax return, and the Debtors estimate that, as of December 31, 2009, the SCI Group had incurred consolidated NOLs of approximately $855 million, and based on year to date 28 performances, the SCI Group expects to incur addition NOLs in 2010. The Debtors expect to incur a material amount of net taxable gain as a result of the Restructuring Transactions, and will utilize their significant NOLs to offset the projected gain. The Debtors relate that an inability to utilize the NOLs to offset net gain from the Restructuring Transactions would cause them to be subject to a material amount of federal income tax, which would impair the feasibility of the Plan. Paul S. Aronzon, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles, California, relates that the ability of the Debtors to use their NOLs to offset gain and income is subject to certain statutory limitations. Sections 382 and 383 of the Tax Code limit a corporation's use of its NOLs, tax credits and other tax attributes to offset future income after that corporation has undergone an "ownership change." For purposes of Section 382 of the Tax Code, an Ownership Change generally occurs when the percentage of a company's equity held by one or more persons or entities holding 5% or more of that company's stock increases by more than 50 percentage points above the lowest percentage of ownership owned by that shareholder at any time during the relevant three-year testing period. An Ownership Change can be also occur if a "50-percent shareholder," as that term is used Section 382 of the Tax Code, claims a tax deduction with respect to its direct or indirect interest in the company's equity. According to Mr. Aronzon, an Ownership Change of SCI could significantly reduce or eliminate the Debtors' ability to use the NOLs, thereby resulting in a substantial loss of value, which would impair the feasibility of the Plan. The Colony entities own, directly or indirectly, 75.94% of the non-voting stock in SCI, and the Fertitta entities own, directly or indirectly, 24.06% of the non-voting stock of SCI. The Debtors previously informed the Colony and Fertitta entities that they intended to seek an order of the Court prohibiting certain direct and indirect shareholders in SCI from taking any action that could cause the Debtors to undergo an Ownership Change. The shareholders have responded by entering into the Stipulation, contractually binding themselves not to take any action that could cause the Debtors to undergo an Ownership Change, until the date that is one day after the Effective Date of the Plan. "The Debtors' NOLs represent very substantial economic value to the estates," Mr. Aronzon says. He adds that if the Debtors did not have access their NOLs to offset the net gain recognized as a result of the Restructuring Transactions, they could not implement the Plan. Thus, Mr. Aronzon maintains, preservation of the NOLs is critical to the Plan. A full-text copy of the Shareholders' Stipulation is available for free at http://bankrupt.com/misc/SCI_ShareholderStip.pdf About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. 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: Proposes Global Settlement With Lender Group ------------------------------------------------------------- Station Casinos, Inc., and its debtor affiliates ask the Court to approve a stipulation they entered into with Deutsche Bank Trust Company Americas, in its capacities as the Administrative Agent and a lender under a Prepetition Opco Credit Agreement and certain of the lenders under the Prepetition Opco Credit Agreement, the current members of the so-called "Independent Lenders." The Settling Lender Group is comprised of BNP Paribas, Natixis, Sandell Asset Management Corp./Castlerigg Master Investments, SilverPoint Capital, L.P., and The Bank of Nova Scotia. The Stipulation generally provides that Settling Lender Group will support confirmation of the Debtors' Plan, implementation of the Plan and the related releases. The Settling Lender Group also agreed to cease and desist, and to seek appropriate stays or withdrawals of all litigation activity, including with respect to any future Chapter 11 proceedings of one or more of the Debtors' subsidiaries which may be commenced to implement the Plan. So long as (i) no member of the Settling Lender Group breaches its obligations and (ii) one or more of the members of the Settling Lender Group irrevocably commit to purchase $5.95 million of the Revolving Credit Commitments under the New Opco Credit Agreement on or before the Effective Date of the Plan, then on the Effective Date of the Plan, the Settling Lenders will be reimbursed for their reasonable and documented professional fees and expenses in an aggregate amount not to exceed $2 million. The Settling Lenders represented that the actual professional fees and expenses, as of June 30, 2010, incurred by them during the course of the Debtors' cases total at least $3 million. The Stipulation further provides that the Plan will be modified to add the Settling Lenders as Exculpated Parties and Released Parties and to otherwise effectuate the terms of the Stipulation. On the Effective Date of the Plan, the Debtors will be deemed to have waived any claims against Natixis on account of Natixis being a Non-Funding Lender. "The Stipulation reflects an important milestone in these chapter 11 cases," says Fred Neufeld, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles, California. "If the Stipulation is approved, the Debtors will have achieved a fully consensual Plan, with not a single objection to confirmation of the Plan filed by any holders of claims or equity interests, or any other party in interest," he adds. According to Mr. Neufeld, the Stipulation will avoid: (a) substantial administrative fees and expenses the Debtors would have incurred litigating the numerous issues raised by the Independent Lenders; and (b) the delay to the restructuring that could have been caused by that litigation. A full-text copy of the Stipulation is available for free at: http://bankrupt.com/misc/SCI_StipLenderGroup.pdf Meanwhile, the Debtors sought and obtained the Court's order shortening the time for hearing on the Motion. Accordingly, the Court will hear the Motion on August 27, 2010. Thomas Friel, executive vice president, chief accounting officer, and treasurer of the Debtors, filed with the Court a declaration in support of the Motion to Shorten. According to Mr. Friel, the final signatures to the Stipulation were not received until August 18, 2010, preventing the Debtors from seeking a hearing on regular notice for the Motion to be heard prior to confirmation of the Plan. 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: To Present Plan for Confirmation on Friday ----------------------------------------------------------- Station Casinos, Inc., will present its reorganization plan for confirmation at a hearing on August 27. The Debtors have delivered to the U.S. Bankruptcy Court for the District of Nevada a memorandum of law maintaining that their Plan satisfies the confirmation requirements under Section 1129 of the Bankruptcy Code. Under the Plan, claims of creditors holding general unsecured claims against Debtor SCI, Classes S.4 through S.7, are classified separately because they are different in substance and nature, and the claimholders have different rights against SCI and, in some cases, 18 vis-a-vis each other. Therefore, the Debtors assert that there are justifiable, nondiscriminatory economic and business reasons for separate classification of the unsecured claims in Classes S.4, S.5, S.6 and S.7 in compliance with the requirements of Bankruptcy Code Sections 1122(a) and 1129(a)(1). Section 1123(a)(5) requires that the Plan provide adequate means for implementation of the Plan and lists ten examples of those implementation provisions. The Debtors tell the Court that Plan contains the principal means for its implementation. According to the Debtors, those provisions relate to, among other things: (a) the formation of the New Propco entities; (b) the transfer of the Master Lease Collateral to Propco; (c) the transfer of the Landco Assets; (d) the transfer of the New Propco Transferred Assets from Propco to the New Propco entities; (e) the transfer of the New Propco Purchased Assets from the Opco entities to the New Propco entities; (f) the transfer of the New Opco Acquired Assets to New Opco; (g) the New Propco Rights Offering; (h) the cancellation of prepetition instruments evidencing Claims and Equity Interest; and (i) the eventual dissolution of the Debtors. The Debtors aver that the sale contemplated by the Stalking Horse Asset Purchase Agreement, and the consummation of the other restructuring transactions, are in the best interests of themselves, their estates, their creditors and all other parties- in-interest. The Debtors add that the Plan complies with the requirements of Section 1123(a)(7) because, under the Plan, on the Effective Date, all current boards of directors of the Debtors will be dissolved and all current officers will be dismissed. In their place, a Plan Administrator will be appointed prior to the Effective Date. The Plan requires that the appointment of the Plan Administrator will be subject to prior Court approval. As a result, the Debtors note, the Plan contains no provisions with respect to the manner of selection of new officers and directors that is inconsistent with public policy or the interests of Holders of Claim and Equity Interests. Section 1123(b)(2) of the Bankruptcy Code allows a Plan to provide for assumption, assumption and assignment, or rejection of executory contracts and unexpired leases pursuant to Section 365 of the Bankruptcy Code. Consistent that provision, the Plan provides for the assumption by the Debtors and assignment to the applicable transferee on the Effective Date of certain designated Executory Contracts and Unexpired Leases, and the rejection of all other Executory Contracts and Unexpired Leases, in all cases in accordance with, and subject to, the provisions and requirements of Sections 365 and 1123. Section 1123(b)(3)(A) of the Bankruptcy Code provides that a plan may provide for the settlement or adjustment of any claim or interest belonging to the Debtors or their Estates. The Plan provides for the retention by the Debtors of Causes of Action and Litigation Claims not expressly released or settled under the Plan, and the Plan provide for certain settlements and releases. Section 1123(b)(4) of the Bankruptcy Code provides that a plan may provide for the sale of all or substantially all of the property of the estate, and the distribution of the proceeds of that sale among Holders of claims or interests. While the Plan does not provide for a sale of substantially all of the Debtors' assets, the New Opco Acquired Assets were marketed and will be sold to the Successful Bidder, which was the Stalking Horse Bidder, pursuant to the Plan, the Debtors maintain. Section 1123(d) provides that if it is proposed in plan to cure a default, the amount necessary to cure a default will be determined in accordance with the underlying agreement and applicable non-bankruptcy law. The Debtors tell the Court that the Plan provides for the cure of defaults in respect of all executory contracts and unexpired leases that are being assumed under the Plan and assigned to Purchaser, and requires that those cure payments be made consistent with the requirements of Sections 365(b) and 365(c). According to the Debtors, the Plan is an effort to maximize the value of their assets for the benefit of their creditors through: (a) the marketing and sale of the New Opco Acquired Assets for the highest and best price; and (b) the transfer of the New Propco Acquired Assets to the secured creditors with the senior interests in those assets. Moreover, the Debtors aver, the Plan is fair and equitable with respect to non-accepting Classes of Secured Creditors because it expressly complies with the requirements of Section 1129(b)(2)(A). Daniel Aronson, managing director of Lazard Freres & Co. LLC, the Debtors' financial advisor, filed with the Court a declaration in support of the Plan. According to Mr. Aronson, he has reviewed the New Opco financial projections and believes that the assumptions underlying the projections are reasonable and that New Opco will be able to meet its debt service obligations. Mr. Aronson also evaluated the interest rate on the New Opco debt and concluded that the debt bears below market interest rates, which will make it easier for New Opco to meet its debt service obligations going forward. In a separate filing, Richard J. Haskins, executive vice president, general counsel, and secretary of Station Casinos, Inc., filed with the Court a declaration in support of the Plan. 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) STEPHEN WEBER: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: Stephen Frederick Weber Cherie Lynn Weber fka Cherie Lynn Peterson 1108 North 109th Street Mesa, AZ 85207 Bankruptcy Case No.: 10-26192 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Harold E. Campbell, Esq. Campbell & Coombs, P.C. 1811 S. Alma School Road, Suite 225 Mesa, AZ 85210 Tel: (480) 839-4828 Fax: (480) 897-1461 E-mail: heciii@haroldcampbell.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/azb10-26192.pdf SUSAN SOSNOW: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Susan L. Sosnow aka Kayla Sosnow dba Tree City Realty, LC dba Tree City Properties 909B NW 6th Street Gainesville, FL 32601 Bankruptcy Case No.: 10-10441 Chapter 11 Petition Date: August 18, 2010 Court: United States Bankruptcy Court Northern District of Florida (Gainesville) Debtor's Counsel: Sharon T. Sperling, Esq. LAW OFFICE OF SHARON T. SPERLING P.O. Box 358000 Gainesville, FL 32635-8000 Tel: (352) 371-3117 Fax: (352) 377-6324 E-mail: sharon@sharonsperling.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 its largest unsecured creditors together with its petition. S.W. BACH: Has Interest in Customer Accounts Transferred to AGI --------------------------------------------------------------- Albert Togut, the chapter 7 trustee of S.W. Bach & Company, a former broker-dealer, seeks partial summary judgment under Fed. R. Civ. P. 56, made applicable to bankruptcy proceedings by Fed. R. Bankr. P. 7056, against broker-dealer Andrew Garrett, Inc., on the Trustee's constructive fraudulent transfer claim under 11 U.S.C. Sec. 548(a)(1)(B) -- Count Nine. AGI in turn seeks denial of partial summary judgment and a dismissal of Count Nine. During 2006, S.W. Bach's financial condition was deteriorating to the point that it risked failing to meet capital requirements for a broker-dealer. Absent an infusion of capital or a sale of the business, S.W. Bach faced the compelled shut down of its business. In February 2007, S.W. Bach transferred its customer accounts -- with the attendant right to manage the accounts, as well as customer information and relationships -- to AGI. S.W. Bach earned a total of roughly $57.7 million in gross commissions from the Accounts from 2004 through the period ending February 28, 2007. From the time the Accounts were transferred until August 2008, AGI earned gross revenue of no less than $1.5 million "generated by the customer accounts that originally had been at S W Back [sic]." Following the transfer of the Accounts, AGI neither employed S.W. Bach's president Scott Shapiro nor made promised payments to Mr. Shapiro, nor has AGI ever paid consideration to the Debtor for the transfer of the Accounts. The Debtor's creditors filed an involuntary petition for relief against the Debtor under chapter 7 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 07-11569) on May 22, 2007. The Court entered an order for relief on June 29, 2007, and Mr. Togut was appointed as the Trustee. The Trustee alleges that the Debtor transferred customer information and the valuable right to earn fees from its customer accounts within two years of the Petition Date, for AGI's benefit, for no consideration, constituting a fraudulent conveyance under Section 548 of the Bankruptcy Code. AGI does not deny that the Debtor was (i) insolvent on the date the accounts were transferred, or became insolvent as a result of the transfer; and/or (ii) engaged in business or a transaction for which any property remaining with the Debtor was an unreasonably small capital at the time of, or a result of, the transfer of the accounts, nor that the Accounts were transferred without consideration. AGI argues that the Debtor had "no cognizable property interest in the customer accounts that were transferred to AGI." On August 18, 2010, Bankruptcy Judge Martin Glenn held that S.W. Bach still had an interest in the Accounts from February 23, 2007, when at least some of the Accounts were transferred, until (and after) March 2, 2007, when AGI alleges the transfer of the Accounts was completed. Judge Glen granted the Trustee's motion for partial summary judgment as to Count Nine. The Court leaves damages to trial. The case is Albert Togut, as Chapter 7 Trustee of S.W. Bach & Company, v. RBC Dain Correspondent Services, a Division of RBC Dain Rauscher Inc., RBC Capital Markets Corporation (f/k/a RBC Dain Rauscher, Inc.), Andrew Garrett, Inc., Scott Shapiro and Jas Management, case no. 09-01278 (Bankr. S.D.N.Y.), and a copy of the decision is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100818541 The Chapter 7 Trustee is represented by: Steven S. Flores, Esq. TOGUT, SEGAL & SEGAL LLP One Penn Plaza New York, NY 10119 Telephone: 212-594-5000 Facsimile: 212-967-4258 Andrew Garrett, Inc. is represented by: Joseph M. Heppt, Esq. 260 Madison Avenue New York, NY 10016 Telephone: 212-973-0839 E-mail: jmheppt@hepptlaw.com TAGISH LAKE: Posts Notice of Change to Directors' Circular ---------------------------------------------------------- Tagish Lake Gold Corp. has filed with Canadian securities regulatory authorities and commenced mailing of a notice of change relating to the directors' circular dated August 3, 2010 issued by the board of directors of the Company in connection with the unsolicited takeover bid dated July 21, 2010 by New Pacific Metals Corp. to acquire all of the shares and all of the proven secured and unsecured debt of the Company. The Board, with the benefit of advice from the special committee of independent directors of the Board, the Company's legal advisors and Evans & Evans, Inc., the financial advisor to the Special Committee, and after having carefully reviewed and considered the New Pacific Offer, the notices of change relating thereto dated July 27, 2010 and August 20, 2010 and the Company's other available alternatives, including the proposal made by YS Mining Company Inc. on August 20, 2010 and the amended proposal made by YS Mining on August 23, 2010, has unanimously decided NOT TO MAKE A RECOMMENDATION with respect to the acceptance or rejection of the New Pacific Offer, and urges shareholders and debtholders of the Company to carefully review the matters referred to in Notice of Change and Directors' Circular and come to their own conclusions as to whether or not to accept or reject the New Pacific Offer. In making this recommendation, the Board considered numerous factors, including the recommendation of the Special Committee and the valuation of the Company and fairness opinion with respect to the New Pacific Offer prepared by Evans, the full texts of which are attached as Exhibits "A" and "B" to the Directors' Circular. Shareholders of the Company are urged to read the Notice of Change and Directors' Circular in their entirety. Copies of the Notice of Change and Directors' Circular are available under the Company's profile on the System for Electronic Document Analysis and Retrieval (SEDAR) website at: http://www.sedar.com/ About Tagish Lake Tagish Lake Gold Corp. explores for and develops high grade gold- silver mineral deposits in the Yukon Territory of Canada. The Company is currently focused on its wholly owned, 178 km2 Skukum Mineral District located 80 km by road south of Whitehorse. The Skukum Mineral District hosts the Skukum Creek gold-silver deposit, the Goddell Gully and the Mt. Skukum gold deposits. In May 2010, Tagish Lake commenced proceedings in the Supreme Court of British Columbia pursuant to the Companies' Creditors Arrangement Act (Canada). Grant Thornton Limited was appointed as the Monitor for the Company. TANGLEWOOD FARMS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Tanglewood Farms, Inc. of Elizabeth City 1268 U.S. Highway 17 South Elizabeth City, NC 27909 Bankruptcy Case No.: 10-06719 Chapter 11 Petition Date: August 20, 2010 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Debtor's Counsel: Trawick H. Stubbs, Jr., Esq. STUBBS & PERDUE, P.A. P.O. Drawer 1654 New Bern, NC 28563 Tel: (252) 633-2700 Fax: 252 633-9600 E-mail: efile@stubbsperdue.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb10-06719.pdf The petition was signed by James H. Winslow, president. THANG NGUYEN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Thang C. Nguyen aka Thang Cao Vu Nguyen dba Mercado Latino Y Mas Don's Investment Kim Hong Dang 317 Crestridge Lane San Jose, CA 95138 Bankruptcy Case No.: 10-58631 Chapter 11 Petition Date: August 19, 2010 Court: United States Bankruptcy Court Northern District of California (San Jose) Judge: Arthur S. Weissbrodt Debtor's Counsel: Michael H. Luu, Esq. LAW OFFICES OF MICHAEL H. LUU 1340 Tully Rd. #309 San Jose, CA 95122 Tel: (408) 425-6221 E-mail: mikeluu63@yahoo.com Scheduled Assets: $1,075,327 Scheduled Debts: $2,086,266 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-58631.pdf TIB FINANCIAL: Posts $14.09 Million Net Loss in June 30 Quarter --------------------------------------------------------------- TIB Financial Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $14.09 million on $16.99 million of interest and dividend income for the three months ended June 30, 2010, compared with a net loss of $4.88 million on $20.86 million of interest and dividend income for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $1.659 billion in total assets, $1.620 billion in total liabilities, and $39.036 million in total stockholders' equity. As reported in the Troubled Company Reporter on April 6, 2010, Crowe Horwath LLP, in Fort Lauderdale, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred net losses in 2009, 2008 and 2007, primarily from loan and investment impairments. In addition, the Company's bank subsidiary is operating under an informal agreement with bank regulatory agencies that requires, among other provisions, higher regulatory capital requirements. The Bank did not meet the higher capital requirement as of December 31, 2009, and therefore is not in compliance with the regulatory agreement. Failure to comply with the regulatory agreement may result in additional regulatory enforcement actions. At March 31, 2010, these elevated capital ratios were not met. According to the Form 10-Q, on July 2, 2010, the Bank entered a Consent Order with the bank regulatory agencies under which, among other things, the Bank has agreed to maintain a Tier 1 Capital ratio of at least 8% of total assets and a Total Risk Based Capital ratio of at least 12% within 90 days. The Consent Order also governs certain aspects of the Bank's operations including a requirement that it reduce the balance of assets classified substandard and doubtful by at least 70% over a two-year period, and not undertake asset growth of 5% or more per year without prior approval from the regulatory agencies. The Consent Order supersedes the Memorandum of Understanding. On June 29, 2010, the Company and the Bank entered into a definitive agreement with North American Financial Holdings, Inc. for the investment of up to $350,000 in TIB through the purchase of common stock, preferred stock and warrant. Pursuant to the definitive agreement, the Company agreed to sell to NAFH, at the closing of the investment, 700 million shares of its common stock at a purchase price of $0.15 per share and 70,000 shares of newly created mandatorily convertible participating voting preferred stock at a purchase price of $1,000 per share for a cumulative total of $175,000. Upon consummation of the investment it is estimated that both the Company and the Bank will be well capitalized and the Bank will be in compliance with the required capital ratios of the Consent Order. A full-text copy of the quarterly report is available for free at: http://ResearchArchives.com/t/s?69fa Headquartered in Naples, Florida, TIB Financial Corp. (NASDAQ: TIBB) is a bank holding company which through its wholly owned subsidiaries, TIB Bank -- http://www.tibbank.com/-- and Naples Capital Advisors, Inc. -- http://www.naplescapitaladvisors.com/-- offers a wide range of commercial, retail and private banking and trust, investment management and other financial services to businesses, individuals and families. TRANS-LUX CORPORATION: Posts $2.6 Million Net Loss in Q2 2010 ------------------------------------------------------------- Trans-Lux Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $2.6 million on $6.3 million of revenue for the three months ended June 30, 2010, compared with a net loss of $3.8 million on $7.4 million of revenue for the same period of 2009. This year's second quarter loss includes a $1.0 million restructuring charge and a $456,000 charge to write-off engineering software. The prior year's second quarter loss includes the write-off of a $2.7 million note receivable related to the former Norwalk, Conn. facility that the Company sold in 2004. "We have implemented tremendous changes in the way we conduct virtually every facet of our business to reflect the 'new' Trans- Lux business model. Streamlining operating costs and enhancing operational efficiencies remain priorities, while simultaneously improving manufacturing efficiencies and greatly expanding our product line to cultivate new business opportunities. And we are already seeing results from these efforts," J.M Allain, President and Chief Executive Officer, said. "We are making strategic investments to deliver the next generation of digital signage and display solutions, and to establish new partnerships in various segments of the digital display industry that will further cultivate long-term growth." The Company's balance sheet as of June 30, 2010, showed $36.2 million in total assets, $33.0 million in total liabilities, and stockholders' equity of $3.2 million. As reported in the Troubled Company Reporter on April 24, 2010, UHY LLP, in Hartford, Connecticut, 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 significant recurring losses from continuing operations and has a significant working capital deficiency. Further, the Company is in default of the indenture agreements governing its outstanding 9-1/2% Subordinated Debentures and its 8-1/4% Limited Convertible Senior Subordinated Notes. In its latest 10-Q, the Company discloses that it continues to be involved in discussions with various entities to try to obtain additional debt or equity financing including amounts that could be used to settle the Debentures and Notes, however there can be no assurance that it will be successful. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?69db A full-text copy of the earnings release is available for free at: http://researcharchives.com/t/s?69dc About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. TRICO MARINE: Files Chapter 11 Petition in Delaware --------------------------------------------------- Trico Marine Services, Inc.'s U.S. companies and its Cayman Islands holding company have filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware. Aside from the Cayman Islands holding company, Trico's foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Trico's U.S. and worldwide operations are expected to continue without interruption during the restructuring process. Chairman of the Board of Directors, President and Chief Executive Officer, Richard A. Bachmann commented, "Over the last several months, we have worked diligently to improve our liquidity, including through the sale of $3 million of non-core assets, the sale of a North Sea class vessel for $16 million and additional cost-cutting initiatives. While we are beginning to see indications of improved operational performance, the combination of a sluggish economy, a highly leveraged balance sheet and imminent interest payments due, has led us to determine that a court-supervised restructuring is the best course of action for the Company and its stakeholders. While we are continuing discussions with our lenders, the Board decided to begin this process now in order to get the Company's restructuring underway without delay. We intend to move through this process as quickly as possible. Throughout the restructuring process, we will remain focused on operating our business worldwide while continuing our efforts to manage costs, strengthen our balance sheet and gain financial flexibility in order to position Trico as a strong and profitable competitor in our industry." In conjunction with the filing, Trico has received a commitment for up to $35 million in debtor-in-possession financing from Tennenbaum DIP Opportunity Fund and other funds managed by Tennenbaum Capital Partners, LLC (collectively, "Tennenbaum"), of which $10 million will represent incremental liquidity. The Company expects that, upon Court approval and satisfaction of other customary conditions, the DIP financing, combined with cash from the Company's ongoing operations, will provide funding to support the business. In addition, the Company anticipates that it will meet its obligations going forward to its employees, customers and suppliers. Separately, the Company announced that Trico Shipping AS and its affiliates have reached an agreement in principle for $22 million in senior secured multi-draw term loan financing from certain holders of its 11 7/8% Senior Secured Notes (the ?Trico Shipping Notes?) representing approximately 80% of the Trico Shipping Notes and Tennenbaum. The closing of this financing arrangement is subject to obtaining required consents, as well as certain other closing conditions of Trico Shipping AS and its affiliates. This financing would be used to fund operating expenses and other working capital needs. "We look forward to working together with all of our stakeholders to complete a successful financial restructuring," said Mr. Bachmann. "Our global operations are expected to continue without interruption throughout the restructuring process, and we remain committed to providing our customers with high quality service. We appreciate the ongoing dedication of all our employees, whose hard work is critical to our success and the future of the Company." Trico will file a series of motions with the Court to ensure the continuation of normal operations, including requesting Court approval to continue paying employee wages and salaries and providing employee benefits without interruption and to continue use of its bank accounts and insurance policies. The Company expects the Court to approve these requests. During the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the U.S. Bankruptcy Code, and Trico has taken steps to ensure continued supply of goods and services to its customers. Trico has established a toll-free Restructuring Information Hotline for employees, suppliers, customers, investors and other interested parties, in the United States at 1-888-369-8929 or internationally at 214-647-7656. More information is also available on Trico's website, http://www.tricomarine.com/where the Company has set up a special restructuring section. For access to Court documents and other general information about the Chapter 11 cases, please visit http://dm.epiq11.com/trico/ About Trico Marine Group The Trico Marine Group is an integrated provider of subsea, trenching and marine support vessels and services. Trico's towing and supply division provides a broad range of marine support services to the oil and gas industry through use of its diversified fleet of vessels including the transportation of drilling materials, supplies and crews to drilling rigs and other offshore facilities; towing drilling rigs and equipment, and support for the construction, installation, repair and maintenance of offshore facilities. Trico's subsea services and trenching/installation divisions control a well equipped fleet of vessels and operate a fleet of modern ROVs and trenching and other subsea protection equipment. The Trico Marine Group is headquartered in The Woodlands, Texas and has a global presence with operations in the North Sea, West Africa, Mexico, Brazil and Southeast Asia. UNISYS CORP: S&P Raises Corporate Credit Rating to 'B+' ------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its corporate credit rating on Blue Bell, Pa.-based Unisys Corp. to 'B+' from 'B'. The outlook is stable. S&P also raised the senior unsecured debt rating on Unisys' issues to 'B+' from 'B' and revised the recovery rating to '3', which indicates S&P's expectation for meaningful (50% to 70%) recovery for lenders in the event of a default, from '4'. S&P raised the issue ratings on Unisys' senior secured first- and second-lien debt to 'BB' from 'BB-'. The recovery rating remains unchanged at '1', which indicates S&P's expectation for very high (90% to 100%) recovery for lenders in the event of a default. "The upgrade reflects Unisys' improved operating performance over the past nine months and adequate liquidity, which provides some capacity at the current rating level for potential earnings volatility," said Standard & Poor's credit analyst Martha Toll- Reed. The ratings on Unisys Corp. reflect S&P's view that the company's moderate leverage for the rating and consistently positive annual free cash flow will provide sufficient cushion in the near term to mitigate ongoing revenue declines and lack of operating performance predictability. With annual revenues of about $4.4 billion, Unisys' declining revenue base reflects global economic weakness, exposure to foreign currency fluctuations, and the company's strategic decision to de-emphasize and divest lower-margin business. Unisys' vulnerable business risk profile reflects the company's second-tier position in the global IT services market, an aggressive competitive environment, and lack of Technology segment earnings predictability. These factors are partly offset by a significant base of contractually recurring service revenues. S&P expects uncertain economic conditions and recent weakness in Unisys' important federal government outsourcing services sector will continue to impede Unisys' ability to stabilize revenues in the near term. Total revenues and operating profitability has improved substantially. They benefited from Unisys' efforts to improve its operating focus and reduce costs, and from revived server technology sales in the first half of 2010. Last-12-month (LTM) adjusted EBITDA margins improved to 14% as of June 30, 2010, about double the year-earlier level. Both the services and technology segments have contributed to profitability improvements, but the technology segment in particular benefited from strong, growth- driven operating leverage. However, given the lack of visibility of technology revenues, the current rating and outlook incorporate the potential for some downside volatility in near term operating earnings. The stable outlook reflects Unisys' moderate leverage for the rating level and consistently positive annual free cash flow generation. Ongoing revenue declines and relatively volatile quarterly operating performance preclude ratings upside. On the other hand, failure to maintain positive annual operating cash flow and/or total debt to annualized EBITDA greater than 4.5x for two or more consecutive quarters could lead to lower ratings. UNIVERSAL BUILDING: Court Okays K&L Gates as Bankruptcy Counsel --------------------------------------------------------------- Universal Building Products, Inc., et al., sought and obtained authorization from the U.S. Bankruptcy Court for the District of Delaware to employ K&L Gates LLP as bankruptcy counsel, nunc pro tunc to the Petition Date. K&L Gates will, among other things: a. attend meetings and negotiate with representatives of creditors and other parties-in-interest; b. prepare motions, applications, answers, orders, reports, and papers necessary to the administration of the Debtors' estates and their Chapter 11 cases; c. take any necessary action on behalf of the Debtors to obtain approval of a disclosure statement and confirmation of the Debtors' plan of reorganization; and d. advise the Debtors in connection with an potential sale of assets. K&L Gates will be paid based on the hourly rates of its personnel: Harley J. Goldstein, Partner $605 Sven T. Nylen, Partner $385 Sarah H. Bryan, Associate $300 New Associates $200 Senior Partners $990 Legal Assistants $65-$370 Sven T. Nylen, Esq., an attorney at K&L, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Westminster, California-based Universal Building Products, Inc., dba UBP, filed for Chapter 11 bankruptcy protection on August 3, 2010 (Bankr. D. Del. Case No. 10-12453). UBP estimated $1 million to $10 million in assets and $10 million to $50 million in debts in its petition. The Debtor's affiliates Accubrace, Inc. (Bankr. D. Del. Case No. 10-12454), Don De Cristo Concrete Accessories, Inc. (Case No. 10- 12455), Form-Co, Inc. (Case No. 10-12456), and Universal Form Clamp, Inc. (Case No. 10-12457), filed separate Chapter 11 petitions on August 4, 2010. Accubrace estimated $500,001 to $1 million in assets and $10 million to $50 million in debts. UNIVERSAL BUILDING: Gets Court OK to Hire Saul Ewing as Co-Counsel ------------------------------------------------------------------ Universal Building Products, Inc., et al., sought and obtained authorization from the U.S. Bankruptcy Court for the District of Delaware to employ Saul Ewing LLP as general reorganization and bankruptcy co-counsel, nunc pro tunc to the Petition Date. Saul Ewing's and primary bankruptcy counsel K&L Gates LLP's lawyers have conferred about their respective roles in the Debtors' bankruptcy cases to avoid duplication of effort. K&L Gates doesn't maintain an office in the State of Delaware, and the Debtors are required to retain Delaware counsel. Saul Ewing will, among other things: a. represent the Debtors in proceedings and hearings in the Court; b. represent the Debtors, and act as primary counsel, in any matter in which K&L Gats has a conflict; c. advise the Debtors concerning, and assist in the negotiation and documentation of, financing agreements, debt restructurings, cash collateral arrangements, and related transactions; and d. review the nature and validity of liens asserted against the property of the Debtors and advise the Debtors concerning the enforceability of the lines. Saul Ewing will be paid based on the hourly rates of its personnel: Mark Minuti, Partner $600 Teresa K.D. Currier, Partner $625 MaryJo Bellew, Associate $425 Melissa W. Rand, Associate $260 Monique Bair, Associate $225 Partners $320-$800 Special Counsel $270-$475 Associates $225-$425 Paraprofessionals $150-$265 Mark Minuti, Esq., at Saul Ewing, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Westminster, California-based Universal Building Products, Inc., dba UBP, filed for Chapter 11 bankruptcy protection on August 3, 2010 (Bankr. D. Del. Case No. 10-12453). UBP estimated $1 million to $10 million in assets and $10 million to $50 million in debts in its petition. The Debtor's affiliates Accubrace, Inc. (Bankr. D. Del. Case No. 10-12454), Don De Cristo Concrete Accessories, Inc. (Case No. 10- 12455), Form-Co, Inc. (Case No. 10-12456), and Universal Form Clamp, Inc. (Case No. 10-12457), filed separate Chapter 11 petitions on August 4, 2010. Accubrace estimated $500,001 to $1 million in assets and $10 million to $50 million in debts. VICTORY MEMORIAL: Medical Malpractice Claim Filed Too Late ---------------------------------------------------------- WestLaw reports that a creditor that did not bring a medical malpractice claim against a hospital until approximately 11 months after expiration of the claims bar date in the hospital's Chapter 11 case was not a "known creditor," but only an "unknown creditor" of the debtor, that was entitled to no more than constructive notice of the hospital's Chapter 11 filing and of the claims bar date. It did not matter that, prior to expiration of the claims bar date, the creditor requested medical records from the hospital. Even if the hospital knew that the records were requested for purposes of evaluating the possibility of a malpractice claim, any such claim was merely conceivable, conjectural or speculative until after the bar date expired. In re Victory Memorial Hosp., --- B.R. ----, 2010 WL 3199935 (Bankr. E.D.N.Y.) (Craig, J.). Based in Brooklyn, New York, Victory Memorial Hospital is a non-profit, full service acute care voluntary hospital with approximately 241 beds and a skilled nursing unit with 150 beds. Victory Hospital provides a full range of medical services with a focus on community care and a program of community outreach to the Brooklyn community. Victory Ambulance Services, Inc. a for-profit subsidiary, provides Victory Hospital with ambulance services. Victory Pharmacy, Inc., a for-profit subsidiary, does not have any employees or assets. The company and its two-subsidiaries sought chapter 11 protection (Bankr. E.D.N.Y. Case No. 06-44387) on Nov. 15, 2006. Timothy W. Walsh, Esq., and Jeremy R. Johnson, Esq., at DLA Piper US LLP, represent the Debtors. Craig E. Freeman, Esq., and Martin G. Bunin, Esq., at Alston & Bird LLP, represent the Official Committee of Unsecured Creditors. When the Debtors sought protection from their creditors, they estimated assets and debts between $1 million and $100 million. The Debtor sold its main campus in 2008 for $44.9 million and proposed a chapter 11 plan to distribute those sale proceeds to creditors later that year. VYTERIS INC: Audit Committee Taps EisenAmper LLP as Accountant -------------------------------------------------------------- Vyteris Inc. notified on Aug. 16, 2010, that Amper, Politziner and Mattia LLP, an independent registered public accounting firm combined its practice with that of Eisner LLP and the name of the combined practice operates under the name EisnerAmper LLP. The Audit Committee of the Company's Board of Directors has engaged EisnerAmper LLP to serve as the Company's new independent registered public accounting firm. About Vyteris, Inc. Based in Fair Lawn, New Jersey, Vyteris, Inc. (formerly Vyteris Holdings (Nevada), Inc., has developed and produced the first FDA- approved electronically controlled transdermal drug delivery system that transports drugs through the skin comfortably, without needles. This platform technology can be used to administer a wide variety of therapeutics either directly into the skin or into the bloodstream. The Company holds approximately 50 U.S. and 70 foreign patents relating to the delivery of drugs across the skin using an electronically controlled "smart patch" device with electric current. According to the Company's 2009 annual report on Form 10-K, Amper, Politziner & Mattia, LLP, in Edison, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring losses and is dependent upon obtaining sufficient additional financing to fund operations and has not been able to meet all of its obligations as they become due. WORKSTREAM INC: Four Individuals Elected Directors -------------------------------------------------- Workstream Inc. appointed new Board of Directors, new capital structure and additional capital for the human capital technology, software and services company. The changes are expected to result in growth of the business and the introduction of additional products as well as to set a course for possible future acquisitions. In making the announcement, the company outlined plans that are intended to allow the company to become a stronger human capital management business, expanding on the current Workstream Software as a Service offerings. John Long, former CEO of First Advantage Corporation, will take over as CEO of Workstream, replacing Michael Mullarkey, the founder and current CEO, who will remain with the company. Under Long's watch, First Advantage Corporation grew from a small division of First American Corporation to a stand-alone publicly traded company with over a billion dollar market cap. Workstream will maintain its current headquarters in Maitland, Florida, outside of Orlando. Workstream offers a set of technology solutions and services to help employers meet challenging human capital issues. The offering includes software and data for recruiting, managing performance reviews, developing competencies for employees, succession planning, communicating with employees about benefits and managing compensation and non-cash rewards programs. A pioneer in the human capital management sector, Workstream has multi-language capabilities that serve a growing international customer base. Commenting on the move, John Long said, "Workstream is a vibrant company with a suite of innovative human capital technology solutions. The company's compensation management, performance management and recruiting products are best in class. In addition, the Rewards and Recognition services and 6FigureJobs career site owned by Workstream are exceptional businesses. I have been impressed with the services and look forward to putting the company on a path to growth. Recently, Workstream has expanded the services supplied to current clients and succeeded in landing contracts with new clients." Company Founder Michael Mullarkey added, "Workstream has a solid, loyal customer base that relies on its products to manage performance reviews and variable pay, establish individual goals and competencies and other strategic human capital functions, using technology. With John Long on board, an expanded management team and a solid capital structure, we can focus on building out the service offering by responding to our customers. Increasingly, companies are seeking to adopt more of the solutions Workstream offers to help attract and retain talent. The solutions are highly scalable and we believe bring great results to employers." A new Board of Directors will guide Workstream: Jeffrey Moss, Chairman of the Board; Biju Kulathakal; Denis Sutton; and CEO John Long. Chairman Jeffrey Moss said: "I am delighted to be a part of this newly re-energized company and participate in its future initiatives. We are fortunate to be in a growing market with an established set of solutions that are in high demand. And we have a management team in place who have successfully executed on growing quality businesses in the human capital sector during their careers." Members of the new Board of Directors will be: * Jeffrey Moss -- Chairman of the Board -- Chief of Enterprise Growth, Educational Testing Service (ETS), Princeton, New Jersey and Chicago, Illinois; * Biju Kulathakal -- Chairman and CEO of Trading Block Holdings, Inc. -- a financial services holding company, based in Chicago, Illinois; * Denis E. Sutton -- Senior Vice President, Human Resources, MTS Allstream -- Enterprise Solutions Division, Winnipeg, Manitoba, Canada * John Long -- CEO, Workstream Inc. Joining Long as part of the management team are David Kennedy, Chief Operating Officer, and Ezra Schneier, Corporate Development Officer. Both worked with Long in similar roles at First Advantage Corporation. Workstream also announced that it had completed a capital restructuring pursuant to which the holders of its senior secured debt exchanged such debt for a total of 682,852,374 common shares in Workstream. In addition, certain of such note holders as well as members of the company's new management team agreed to invest in the company by purchasing an aggregate $1.25 Million of Workstream's common shares in a private placement. Following the exchange of the senior secured debt and the issuance of shares in the private placement, Workstream's former debt holders and new management team will own approximately 92% of the company's issued and outstanding common shares. As part of the capital restructuring, one of the note holders agreed to loan the company $750,000 pursuant to which the company issued such note holder a new senior secured note. The company expects to use the proceeds for working capital purposes and to expand the business. "This new capital structure allows us to focus on growth and innovation without being burdened by a heavy debt load," Long said. With a new capital structure, the company intends to strengthen the business and seek strategic acquisitions to build out the suite of available services and solutions. Long said: "Our strategy is to be the preferred vendor for our clients and bring them the solutions they need to manage a variety of human capital requirements. In this regard, we will look to acquire companies that have top-shelf services and technology that are complementary to the Workstream solutions." "The goal for Workstream is to become a larger, more diversified human capital technology and service provider," Mr. Long said. "This is a market that we believe is under-served today. At the same time, the needs of businesses to improve the way they manage HR functions continues to expand. Managing human capital continues to shift from an administrative function to a strategic area for employers, with huge potential returns. We expect Workstream to be right in the middle of helping to enable that shift." Continued Mr. Long: "We will achieve success by listening to our customers and serving the needs of existing and new clients in the months ahead. Workstream has a combination of great products, state of the art technology, skilled management and staff with a culture that emphasizes customer service. We believe it is a great platform for future growth." About Workstream Inc. Maitland, Fla.-based Workstream Inc. (OTC BB: WSTM) -- http://www.workstreaminc.com/-- provides enterprise workforce management solutions and services that help companies manage their human capital management function. The Company's balance sheet at February 28, 2010, showed $14,564,794 in assets, $30,051,615 in debts, and a stockholders' deficit of $15,486,821. The Company reported a net loss of $20,624,691 on $3,961,775 of revenue for the three months ended February 28, 2010, compared with net income of $573,852 on $5,637,698 of revenue for the same period ended February 28, 2009. * Canada Bankruptcies Rose 4.3% in June From May ------------------------------------------------ Bloomberg News reports that Canada's bankruptcy superintendent reported on its Web site that bankruptcies in the country hiked 4.3% in June from the previous month. The number of insolvencies, including proposals, increased 7.1%, the agency said. Bankruptcies for consumers were up 4.1%, while business bankruptcies increased 11%. * Commercial-Property Owners Default on Debts, Surrender Bldgs -------------------------------------------------------------- The Wall Street Journal's Kris Hudson and A.D. Pruitt report that some of the largest commercial-property owners are defaulting on debts and surrendering buildings worth less than their loans. The Journal reports that companies such as Macerich Co., Vornado Realty Trust and Simon Property Group Inc. have recently stopped making mortgage payments to put pressure on lenders to restructure debts. In many cases they have walked away, sending keys to properties whose values had fallen far below the mortgage amounts, a process known as "jingle mail." These companies all have piles of cash to make the payments. They are simply opting to default because they believe it makes good business sense. "We don't do this lightly," said Robert Taubman, chief executive of Taubman Centers Inc., according to the report. The Journal says Taubman, with upscale properties such as the Beverly Center in Los Angeles, decided earlier this year to stop covering interest payments on its $135 million mortgage on the Pier Shops at Caesars in Atlantic City, N.J. Taubman, which estimates the mall is now worth only $52 million, gave it back to its mortgage holder. "Where it's fairly obvious that the gap is large, as it was with the Pier Shops, individual owners are making very tough decisions," he said. According to the Journal, investors are rewarding public companies for ditching profit-draining investments. The report says Deutsche Bank AG's RREEF, which manages $56 billion in real-estate investments, now favors companies that jettison cash-draining properties with nonrecourse debt, loans that don't allow banks to hold landlords personally responsible if they default. The theory is that those companies fare better by diverting money to shareholders or more lucrative projects. "To the extent that they give back assets or are able to rework the [mortgage] terms, it just accrues to the benefit" of the real- estate investment trust, says Jerry Ehlinger, RREEF's co-chief of real-estate securities, according to the report. The Journal notes that earlier this month, a group led by investment firms Colony Capital relinquished control of the $2 billion Xanadu retail development in New Jersey to a bank group, blaming their creditors for balking at a restructuring. The lender group said it is "disappointed that despite its best efforts" it couldn't reach a deal. The Journal also says more landlords are expected to follow suit. The Journal relates that, according to debt-analysis company Trepp LLC, of the $1.4 trillion of commercial-real-estate debt coming due by the end of 2014, roughly 52% is attached to properties that are underwater. And as the economic recovery sputters, owners of struggling properties are realizing a big property-value rebound isn't imminent. The Journal also notes that in one recent CMBS default, Vornado, one of the country's largest owners of offices and malls, stopped payments on an $18 million mortgage on the Cannery at Del Monte Square mixed-use development in San Francisco. Simon Property Group last year also walked away from the struggling Palm Beach Mall in West Palm Beach, Fla. And Macerich in July forfeited Dallas's Valley View Center mall, which was saddled with a $135 million mortgage. The Journal says Harris Trifon, head of research on commercial- real-estate debt for Deutsche Bank, says walkaways won't derail the nascent return of CMBS-financed properties. "But you have the potential for more pain for select groups of investors," he says. * Morgan Joseph Says Fund Uses Move Away From Paying Off Creditors ------------------------------------------------------------------ The new capital provided by the recent bond market surge is going towards uses other than paying off creditors or refinancing debt as was primarily the case in prior periods, according to Morgan Joseph LLC's newly issued Restructuring Quarterly Newsletter. Moreover, the trend is beginning to be felt in a variety of other favorable ways as well, including greater attention being paid by lenders to middle market companies. "Compared to 2009, when 3 out of every 4 dollars from new high yield issues went to refinancing existing debt, thus far in 2010 only 2 out of 3 dollars are used for refinancing," says James D. Decker, a Morgan Joseph Managing Director who heads the Restructuring Group. "While a far cry from 2007, when only 30% of proceeds went towards refinancing debt, along with M&A and recapitalizations, the ability for business to tap debt capital for reasons other than simply debt repayment is certainly a positive trend and one that could lead to more corporate spending and growth initiatives in the future." Among other trends, the Morgan Joseph Restructuring Newsletter also noted: * One beneficiary of the high yield exuberance has been the loan provider that has been repaid and now has capital to deploy. As a consequence of their holdings of outstanding leveraged loans, the primary recipient of such capital has been CLO funds, which for the most part, remain in their investment windows and are incentivized or required to put capital back to work in the loan market. Accordingly, The Morgan Joseph Restructuring Group points out that "despite the fact that a handful of CLO funds have been raised this year (mostly for repackaging of loans rather than new money vehicles), CLOs have actually grown their presence in the loan market from just north of 40% in 2008 to approximately 50% in this year's first half." * Despite a recovered credit market and increasing M&A activity providing exit options for lenders, inter-lender dynamics and institutional concerns are still allowing many borrowers to push out maturities -- using so-called "amend to extend" options -- without resorting to new money financings. * Combined with amend to extend activity, the loan supply resurgence has caused the near term wall of maturities to diminish. Over the past 18 months, 2011 maturities have been almost fully addressed, and 2012-2013 maturities have been essentially cut in half. * Credit market participants are hungry for yield, and spreads between first and second lien loans remained below 100 basis points for the third straight month in July 2010, compared with a year earlier when spreads were almost 800 basis points. "One can easily see that the price of risk in the market has diminished dramatically," the Newsletter notes. * The restructuring market overall is in a prolonged pause, with defaults having fallen sharply and lenders leaning towards flexibility rather than pushing for exits. "On an annualized year-to-date basis," reports the Morgan Joseph Restructuring Group, "principal defaults are now hovering around 2 percent and trending below 1 percent, well below averages of 3 to 4 percent during the last decade, and even further short of the mid-2009 peak of nearly 11 percent." Even when defaults occur, borrowers are not being forced to restructure their balance sheets as lenders continue to exhibit a willingness to amend and extend. * The increasing availability of capital is beginning to stimulate credit providers to search for yield in less liquid and smaller deals. Thus, the market for cash flow term loans and second lien loans for middle market borrowers is once again becoming competitive as new funds enter the market. About Morgan Joseph Morgan Joseph LLC, a New York City headquartered full service investment bank, provides financial advisory and capital raising services to the Middle Market. The firm's services include M&A and restructuring advice, equity and debt private placements, as well as public offerings. In addition, Morgan Joseph provides equity research and sales and trading services for institutional clients. Morgan Joseph's staff of over 125 is heavily weighted to highly experienced professionals mostly from major Wall Street firms and intimately familiar with the issues facing middle market companies. The firm is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investors Protection Corp. (SIPC). The five Principals managing the Morgan Joseph Financial Restructuring Group collectively have over 70 years of financing and restructuring experience. Since 2001, they have completed more than 80 company and creditor transactions, and restructured approximately $25 billion of debt in in-court and out-of-court transactions. * Properly Valuing Assets May Bankrupt Some Banks, Says Economist ----------------------------------------------------------------- Dara Doyle at Bloomberg News reports that Nobel Prize-winning economist Jos Stiglitz said some banks may be bankrupt if their assets were marked down to reflect their true value. "One of the concerns in the U.S. and Ireland, is that we've been using bad accounting to try to hide the true state of banks' balance sheets," he said in an interview broadcast by Dublin-based RTE Radio August 24. He added that if assets are marked down to reflect true value, the banks would need to raise more capital, and some may "even be bankrupt." * Two-Year Limit Means Two-Year Anniversary, Says Appeals Court --------------------------------------------------------------- Bill Rochelle, columnist at Bloomberg News, says the U.S. Court of Appeals for the Eight Circuit in St. Louis ruled, in Myers v. Raynor (In re Raynor), 09-2464, that a fraudulent transfer suit is still timely when filed on the "two-year anniversary" of the Chapter 11 filing Mr. Rochelle recounts that a husband filed under Chapter 11 on Sept. 13, 2004. On Sept. 13, 2006, the bankruptcy trustee sued the wife. The husband appealed a ruling that the suit was filed in time. The appeals court found no ambiguity in the governing statute, Section 546(a) of the Bankruptcy Code, which in substance says that the suit couldn't be commenced "after . . . two years after" the filing of the Chapter 11 petition. According to Mr. Rochelle, the appeals court rejected the husband's argument that the two-year period ended on Sept. 12, 2006. The appeals court said a suit of the type may be filed on the "two-year anniversary." * Neal Gerber Partner Named to Ch. 7 Trustees Panel --------------------------------------------------- Neal, Gerber & Eisenberg LLP disclosed that firm partner Deborah M. Gutfeld has been appointed to the panel of chapter 7 trustees serving the Chicago area as part of the U.S. Trustee Program. The primary role of the U.S. Trustee Program is to serve as the watchdog over the bankruptcy process. The U.S. Attorney General is charged with the appointment of United States Trustees and Assistant United States Trustees. The United States Trustee Program is a component of the Department of Justice that seeks to promote the efficiency and protect the integrity of the Federal bankruptcy system. To further the public interest in the just, speedy and economical resolution of cases filed under the Bankruptcy Code, the Program monitors the conduct of bankruptcy parties, oversees related administrative functions, and acts to ensure compliance with applicable laws and procedures. It also identifies and helps investigate bankruptcy fraud and abuse in coordination with United States Attorneys, the Federal Bureau of Investigation, and other law enforcement agencies. "We are delighted Deborah has been appointed to the panel of chapter 7 trustees," said Neal Gerber Eisenberg Financial Restructuring and Bankruptcy Practice Group chair Mark A. Berkoff. "Her appointment is a reflection of her extraordinary background and depth of experience in this area of the law." Ms. Gutfeld is a member of Neal Gerber Eisenberg's Financial Restructuring and Bankruptcy Practice Group. She has represented debtors in large national cases in matters related to professional retention, claim objections, executory contracts and asset disposition. Additionally, she has handled Chapter 7 bankruptcy cases for creditors and trustees, with a specific focus on preference adversary work, and has extensive experience representing landlords and enforcing their claims in large retail bankruptcy cases. She earned her J.D. from Northwestern University School of Law. She graduated from Indiana University - Bloomington with a B.S. in marketing and international business. She is admitted to the Illinois bar. About Neal, Gerber & Eisenberg LLP Neal Gerber Eisenberg is a Chicago-based law firm providing legal services to a diverse group of clients in a wide array of domestic and global business transactions and litigation matters. The firm's clients include privately and publicly held companies, financial institutions, not-for-profit organizations and high net worth individuals. The firm's client base reflects virtually every business industry, including a number of Fortune 100 companies. The firm has grown to nearly 175 attorneys who share common values of integrity, a dedication to high quality legal services and a commitment to diversity. The firm's 22 practice areas range from Antitrust & Trade Regulation, Associations & Not- for-Profit Organizations, Corporate & Securities, Directors' & Officers' Insurance, Securities & Commodities Litigation, Financial Restructuring and Bankruptcy, White Collar Criminal, Real Estate, Information Technology, Intellectual Property and Private Wealth Services to Employee Benefits & Executive Compensation, Environmental, Finance, Health Law, Tax, Litigation and Labor & Employment. * Steven Rofsky to Head Cain Brothers' Restructuring Practice ------------------------------------------------------------- Cain Brothers & Company, the health care investment banking firm, has disclosed the hiring of Steven P. Rofsky as Head of the firm's Restructuring Group. Mr. Rofsky joins Cain Brothers as a Managing Director in the firm's New York office where he will lead a team of senior bankers in assisting tax-exempt and investor-owned entities, including boards, management teams, sponsors, and creditor groups to coordinate financial restructuring solutions between borrowers and lenders. Most recently, Mr. Rofsky was Managing Director, Portfolio Risk Management at Ambac Assurance Corporation, where he directed the portfolio risk management activities for over $175 billion of insured exposure in many of Ambac's most risky asset classes and led restructuring, workout, and recovery efforts. Notably, while at Ambac, Mr. Rofsky served as chairman of the unsecured creditors committee in the $3 billion bankruptcy proceeding for National Century Financial Enterprises. Prior to his tenure at Ambac, Mr. Rofsky held related positions at American Capital Access Financial Guaranty Corporation, Merrill Lynch Asset Management, Prudential Insurance Company of America, and J.P. Morgan Securities. He is a graduate of State University of New York at Binghamton and earned an MPA at Columbia University. Robert Fraiman, CEO of Cain Brothers said, "Steve's deep experience with health care credit markets and his focus on finding solutions that are reasonable for both debtors and creditors enables us to continue to offer our clients the highest level of hands-on expertise and service. Given the difficulties in the economy, changes resulting from health care reform, and continued uncertainty in the financial markets, we expect our restructuring team to be well-positioned to assist clients to develop workable financial restructurings." Mr. Rofsky said, "I am pleased to join Cain Brothers and its Restructuring Group. I have seen how effective Cain Brothers has been in the troubled health care credit arena, and I am looking forward to my involvement with the firm's clients and growing this important line of business. I believe that the firm's restructuring practice benefits greatly from Cain Brothers' deep industry-related expertise in the senior living, acute care hospital, and related health care sectors." About Cain Brothers Cain Brothers -- http://www.cainbrothers.com/--is a leading investment banking firm that focuses exclusively on the health care industry. The firm's clients include investor-owned and tax- exempt providers, payors, health care information technology and medical technology companies and financial sponsors. The firm has one of the largest teams of experienced bankers and capital markets professionals on Wall Street dedicated to the health care industry. Operating out of nine offices across the country, Cain Brothers creates custom-tailored, market-based capital raising, M&A, real estate, and strategic and financial advisory solutions for its clients. * J. Lisac Joins Dresner Partners to Lead Restructuring Practice ---------------------------------------------------------------- Dresner Partners, a leading middle-market investment bank and IMAP-member firm, disclosed that Jamie Lisac has joined the firm as Managing Director and will lead the Financial Restructuring and Corporate Turnaround practice. Mr. Lisac specializes in complex corporate restructurings and reorganizations of distressed middle-market companies, both in and outside of Chapter 11, either on behalf of the company or its stakeholders. He has also advised clients on finance, accounting and treasury management operations as well as the formulation and implementation of cost reduction initiatives while serving in senior level interim management roles. Mr. Lisac has a broad range of industry experience including automotive, sub-prime mortgage, energy, printing, retail and wholesale music and entertainment, public utilities and distribution and manufacturing. Prior to joining Dresner Partners, Mr. Lisac held senior positions at leading restructuring firms AlixPartners and FTI Consulting. Steven M. Dresner, president and founder of Dresner Partners, said, "Dresner Partners is dedicated to serving our clients at every stage of the business life cycle. We see an increasing need to provide restructuring services to the middle market and Jamie brings the highly specialized expertise required to help our clients succeed in today's challenging credit markets and economic climate." "Middle-market companies have had far less access to credit than larger companies over approximately the last year which will create significant challenges for middle-market companies in the near future. Dresner Partners is well positioned and highly qualified to provide financial restructuring and corporate turnaround services to these companies and I am very excited to join a firm with such a strong reputation in the middle market," said Mr. Lisac. Mr. Lisac holds an MBA with an emphasis in Finance from Saint Louis University and received his BS in Business from the University of Missouri - Columbia. Mr. Lisac is a Certified Insolvency and Restructuring Advisor and a Certified Turnaround Professional. He is a member of the Turnaround Management Association, American Bankruptcy Institute, Association of Corporate Growth, Commercial Finance Association and the Association of Insolvency and Restructuring Advisers. About Dresner Partners Dresner Partners -- http://www.dresnerpartners.com/-- is a middle-market investment bank based in Chicago. Founded in 1991, Dresner Partners provides financial advisory services to companies, business owners and managers throughout the world, including institutional private placements of debt and equity, merger and acquisitions, financial restructuring and corporate turnaround, and valuation and strategic consulting services. Dresner Partners is also a member of IMAP, an exclusive global organization of leading merger and acquisition advisory services firms. Its affiliate company, Dresner Corporate Services, is a strategic communications firm specializing in investor and public relations. * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ------------------------------------------------------------- Recent Chapter 11 cases filed with assets and liabilities below $1,000,000: In Re Boggess, Inc. Bankr. S.D. Fla. Case No. 10-34102 Chapter 11 Petition Filed August 16, 2010 See http://bankrupt.com/misc/flsb10-34102.pdf In Re J&K Gift Shop Bankr. S.D. Fla. Case No. 10-34097 Chapter 11 Petition Filed August 16, 2010 See http://bankrupt.com/misc/flsb10-34097.pdf In Re Word of Mouth Trees and Landscaping, Inc. Bankr. S.D. Fla. Case No. 10-34054 Chapter 11 Petition Filed August 16, 2010 Filed As Pro Se In Re Gregory C. Roche, D.O., P.C. Bankr. E.D. Mich. Case No. 10-65749 Chapter 11 Petition Filed August 16, 2010 See http://bankrupt.com/misc/mieb10-65749.pdf In Re Harmony Grove Holdings, LLC Bankr. D. Nev. Case No. 10-25481 Chapter 11 Petition Filed August 16, 2010 See http://bankrupt.com/misc/nvb10-25481.pdf In Re PFC Lamont Hill Memorial Army Navy Garrisson #2003 Bankr. N.D. Ohio Case No. 10-18088 Chapter 11 Petition filed August 16, 2010 Filed As Pro Se In Re Nelson Investment Co., Inc. Bankr. E.D. Okla. Case No. 10-81463 Chapter 11 Petition Filed August 16, 2010 See http://bankrupt.com/misc/okeb10-81463.pdf In Re Euro International Group Corp. Bankr. D. Puerto Rico Case No. 10-07441 Chapter 11 Petition Filed August 16, 2010 See http://bankrupt.com/misc/prb10-07441.pdf In Re LNI-LAN Network Infrastructures Inc. Bankr. W.D. Wash. Case No. 10-19637 Chapter 11 Petition filed August 16, 2010 Filed As Pro Se In Re Meridian Real Estate Opportunity Fund II LLC Bankr. W.D. Wash. Case No. 10-19644 Chapter 11 Petition filed August 16, 2010 Filed As Pro Se In Re Meridian Real Estate Opportunity Fund I LLC Bankr. W.D. Wash. Case No. 10-19645 Chapter 11 Petition filed August 16, 2010 Filed As Pro Se In Re John N. Liu Bankr. N.D. Calif. Case No. 10-33164 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/canb10-33164.pdf In Re Aaron Mark Goncalvesr Nicole Caracciolo Goncalves2 Bankr. S.D. Calif. Case No. 10-14565 Chapter 11 Petition filed August 17, 2010 Filed As Pro Se In Re Juloania, Inc. Bankr. D. Maine Case No. 10-11277 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/meb10-11277.pdf In Re Kevin C. Harriman Bankr. D. Mass. Case No. 10-18925 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/mab10-18925.pdf In Re Waverly Street Restaurant Group, Inc. Bankr. D. Mass. Case No. 10-18917 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/mab10-18917.pdf In Re Empresas Martinez Investigaciones Y Policia Privada Inc. Bankr. D. Puerto Rico No. 10-07460 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/prb10-07460.pdf In Re Southland Fab & Offshore, Inc. Bankr. S.D. Texas No. 10-20637 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/txsb10-20637.pdf In Re Allison J. Batchelder Bankr. E.D. Va. No. 10-51521 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/vaeb10-51521.pdf In Re Hofkens Building & Supply, Inc. Bankr. E.D. Wis. No. 10-33441 Chapter 11 Petition Filed August 17, 2010 See http://bankrupt.com/misc/wieb10-33441.pdf In Re Mt. Zion Church of God in Christ Bankr. C.D. Calif. Case No. 10-36253 Chapter 11 Petition filed August 18, 2010 Filed As Pro Se In Re Rolf Berschneider Gina Berschneider Bankr. C.D. Calif. No. 10-44675 Chapter 11 Petition Filed August 18, 2010 Filed As Pro Se In Re William O. Iyasere Blessing A. Iyasere Bankr. E.D. Calif. Case No. 10-41943 Chapter 11 Petition filed August 18, 2010 Filed As Pro Se In Re Todd Edward Macaluso Bankr. S.D. Calif. No. 10-14685 Chapter 11 Petition Filed August 18, 2010 See http://bankrupt.com/misc/casb10-14685p.pdf See http://bankrupt.com/misc/casb10-14685c.pdf In Re Performance Fuels Inc. aka Performance Fuels LLC Bankr. W.D. La. No. 10-12509 Chapter 11 Petition Filed August 18, 2010 See http://bankrupt.com/misc/lawb10-12509.pdf In Re The Sky Room, Inc. Bankr. D. Mass. No. 10-18958 Chapter 11 Petition Filed August 18, 2010 See http://bankrupt.com/misc/mab10-18958.pdf In Re Promotional Buying Group, LLC Bankr. D. N.J. No. 10-35444 Chapter 11 Petition Filed August 18, 2010 See http://bankrupt.com/misc/njb10-35444.pdf In Re Sidney Office Building LLC Bankr. S.D. Ohio No. 10-35320 Chapter 11 Petition Filed August 18, 2010 See http://bankrupt.com/misc/ohsb10-35320p.pdf See http://bankrupt.com/misc/ohsb10-35320c.pdf In Re Viajes Carely, Inc. Bankr. D. Puerto Rico No. 10-07501 Chapter 11 Petition Filed August 18, 2010 See http://bankrupt.com/misc/prb10-07501.pdf In Re EGSR1, LLC Bankr. D. Ariz. No. 10-26349 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/azb10-26349.pdf In Re Grant Street Mansion, LLC Bankr. D. Colo. Case No. 10-31094 Chapter 11 Petition filed August 19, 2010 Filed As Pro Se In Re Florida Fisherman, Inc. Bankr. M.D. Fla. No. 10-19926 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/flmb10-19926.pdf In Re MPG 216th Street, LLLP Bankr. M.D. Fla. Case No. 10-19856 Chapter 11 Petition filed August 19, 2010 Filed As Pro Se In Re Wakulla Christian Schools, Inc. Bankr. N.D. Fla. No. 10-40803 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/flnb10-40803.pdf In Re Jo Ann Wright Bankr. D. Md. No. 10-29007 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/mdb10-29007.pdf In Re International Gospel Party Boosting Jesus Groups, Inc. Bankr. D. Mass. No. 10-19012 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/mab10-19012.pdf In Re Toby Matthew Hansen Keli Lynn Hansen Bankr. D. Mont. No. 10-62020 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/mtb10-62020.pdf In Re Mott Marina, LLC Bankr. E.D. N.Y. No. 10-47839 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/nyeb10-47839.pdf In Re Tres Hermanos Bankr. D. N.M. No. 10-14207 Chapter 11 Petition Filed August 19, 2010 In Re Ward Street Associates Bankr. S.D. N.Y. Case No. 10-37496 Chapter 11 Petition filed August 19, 2010 Filed As Pro Se In Re GOG Production LLC Bankr. W.D. Okla. No. 10-15084 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/okwb10-15084.pdf In Re The Miller Real Estate Partnership Bankr. E.D. Pa. No. 10-16974 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/paeb10-16974.pdf In Re Carlos D. Perez Andino Bankr. D. Puerto Rico No. 10-07509 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/prb10-07509.pdf In Re Bruce Arthur Inglis dba Salono Salono" dba "Salono Bruce" dba "Salono Salons" Bankr. E.D. Va. No. 10-35781 Chapter 11 Petition Filed August 19, 2010 See http://bankrupt.com/misc/vaeb10-35781.pdf In Re Chase Steppig Limited Family Partnership, LLC Bankr. E.D. Ark. No. 10-16079 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/areb10-16079.pdf In Re Amatulli Auto Parts, Inc. Bankr. C.D. Calif. No. 10-36652 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/cacb10-36652.pdf In Re Citrus Cafe, Inc. Bankr. C.D. Calif. No. 10-21661 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/cacb10-21661.pdf In Re JJJ Diners, Inc. dba California Wok Bankr. C.D. Calif. No. 10-45020 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/cacb10-45020.pdf In Re Roy O'Dell Fields, II Bankr. N.D. Calif. Case No. 10-13213 Chapter 11 Petition filed August 20, 2010 Filed As Pro Se In Re Elias Mendez Enid Mendez Bankr. D. Conn. No. 10-32502 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/ctb10-32502.pdf In Re Fusion Cuisine, Inc. Bankr. D. D.C. No. 10-00821 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/dcb10-00821.pdf In Re Dan H. Schoneck Bankr. S.D. Fla. Conn. No. 10-34724 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/flsb10-34724.pdf In Re Epoch Green Partners, LLC Bankr. M.D. Fla. No. 10-14869 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/flmb10-14869.pdf In Re Koffee Kart, Inc. Bankr. N.D. Ga. Case No. 10-13136 Chapter 11 Petition filed August 20, 2010 Filed As Pro Se In Re Bratt Investments LLC Bankr. D. Kan. No. 10-12851 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/ksb10-12851.pdf In Re KMS Uniforms, LLC Bankr. W.D. La. Conn. No. 10-31584 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/lawb10-31584.pdf In Re Juan Ramos aka Juan Ramos Calixto Bankr. D. Md. No. 10-29070 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/mdb10-29070p.pdf See http://bankrupt.com/misc/mdb10-29070c.pdf In Re 63 Main St Realty Trust Bankr. D. Mass. No. 10-44133 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/mab10-44133.pdf In Re Pleasant Street Realty Trust Bankr. D. Mass. Conn. No. 10-44132 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/mab10-44132.pdf In Re Jeffrey Mccomas Sherrie Mccomas fka Sherrie Lynne Hill fka Sherrie Lynne Strege fka Sherrie Lynne Emmons-Hill Bankr. D. Nev. No. 10-25829 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/nvb10-25829.pdf In Re Tres Hermanos Bankr. D. N.M. No. 10-14240 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/nmb10-14240.pdf In Re Cosmo Express International Corp. Bankr. E.D. N.Y. No. 10-47875 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/nyeb10-47875.pdf In Re Irina's Help Corp. Bankr. E.D. N.Y. No. 10-47912 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/nyeb10-47912.pdf In Re New Third World, Inc. Bankr. E.D. Pa. No. 10-17007 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/paeb10-17007.pdf In Re Samuel Bezares Gomez Inc. aka Restaurant El Mariachi Bankr. D. Puerto Rico. Case No. 10-07613 Chapter 11 Petition filed August 20, 2010 See http://bankrupt.com/misc/prb10-07613.pdf In Re Joseph Daniel Almand dba Dan Almand Builders Gloria S. Almand Bankr. MD. Tenn. No. 10-08857 Chapter 11 Petition Filed August 20, 2010 See http://bankrupt.com/misc/tnmb10-08857.pdf ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***