TCR_Public/100902.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, September 2, 2010, Vol. 14, No. 243

                            Headlines


2001 PROPERTIES: Case Summary & 20 Largest Unsecured Creditors
AIMS WORLDWIDE: Posts $2.36-Mil. Net Profit in 1st Half of 2010
AMBAC FINANCIAL: Investors Seek to End Fraudulent Asset Move
AMBASSADORS INTERNATIONAL: Nasdaq Grants Continued Listing Request
AMERICAN CASINO: Moody's Gives Negative Outlook, Keeps B3 Ratings

AMERICAN INT'L: Taiwan Rejects Nan Shan Sale to HK Consortium
BEACHES HOSPITALITY: Voluntary Chapter 11 Case Summary
BERNARD MADOFF: Trustee Settles Dispute Over Feeder Fund Cash
BIOLASE TECHNOLOGY: Board Chair to Serve as Interim CEO
BONANZA OIL: Posts $682,200 Loss in Q2; Says Bankruptcy Possible

CAPCO GROUP: IRS Files $432,724 Claim for Unpaid Biz. Taxes
CASPIAN SERVICES: Has Until Sept. 13 to Submit Restructuring Plan
CAPMARK FINANCIAL: Proposes to Restructure LIHTC Transactions
CAPMARK FINANCIAL: Sec. 341 Meeting in Protech's Case on Sept. 15
CAPMARK FINANCIAL: Wants Plan Filing Exclusivity Until Dec. 31

CHEMTURA CORP: Forms Korean JV With UP Chemical
CLARKSON INVESTMENT: Voluntary Chapter 11 Case Summary
COLONIAL BANCGROUP: Court Rejects FDIC's $900 Million Claim
COLOWYO COAL: Moody's Downgrades Ratings on Senior Bonds to 'B1'
CONTINENTAL AIRLINES: DOT Issues Route Transfer Exemption

CONTINENTAL AIRLINES: DOJ Review Done; Merger Expected Oct. 1
COVENANT INVESTMENTS: Case Summary & Creditors List
CROSSTOWN STOR-N-MORE: Sec. 341(a) Meeting Scheduled for Sept. 23
CROSSTOWN STOR-N-MORE: Taps Morse & Gomez as Bankruptcy Counsel
CUSTOM CABLE: Disputes Shareholders' Conspiracy Claim

DOCTORS HOSPITAL: 7th Cir. Questions Solvency & Remoteness
FAFF INC: Case Summary & 10 Largest Unsecured Creditors
FENWICK AUTOMOTIVE: Obtains $1.9MM Investment From Motorcar Parts
FIBREK INC: S&P Affirms 'B-' Long-Term Corporate Credit Rating
FRASER PAPERS: PBGC Assumes Underfunded Pension Plan

GARLOCK SEALING: Plan Filing Exclusivity Extended Until April 1
GARLOCK SEALING: Time to Remove Civil Actions Extended to March 31
GARLOCK SEALING: Wins January 3 Extension for Lease Decisions
GATEHOUSE MEDIA: Moody's Upgrades Default Rating to 'Caa3'
GENERAL GROWTH: Proposes Brookfield Management Pact

GENERAL GROWTH: Spinco Registers Common Stock
GENERAL GROWTH: To Present Plan for Confirmation on Oct. 21
GENERAL MOTORS: Old GM Files Joint Chapter 11 Plan
GEOKINETICS HOLDINGS: Moody's Cuts Corp. Family Rating to 'B3'
GEORGE HOUSER: Case Summary & 10 Largest Unsecured Creditors

GREAT ATLANTIC: Mulls Sale of Food Emporium Stores to Raise Cash
HSH DELAWARE: Sept. 17 Deadline to File Proofs of Claim
INN OF THE MOUNTAIN: Posts $243,900 Net Loss in June 30 Quarter
INNOVATIVE COMPANIES: Plan Confirmation Hearing Set for Sept. 28
J2H2, L.L.C.: Voluntary Chapter 11 Case Summary

JAMES MCGOEY: Case Summary & 8 Largest Unsecured Creditors
JAPAN AIRLINES: No Objections to Restructuring Plan in Japan
JAPAN AIRLINES: Sells 90% Stake in JAL Sky Kansai Subsidiary
JAPAN AIRLINES: Sells 79.6% Stake in Hotel Unit to Okura
JOHN WOOD: Case Summary & 12 Largest Unsecured Creditors

KAYE SANDFORD: Case Summary & 13 Largest Unsecured Creditors
KENNETH ANDERSON: Files Schedules of Assets & Liabilities
KENNETH ANDERSON: Secured Creditors Want Ch. 11 Case Dismissed
KEVIN CALLAHAN: Case Summary & 20 Largest Unsecured Creditors
KOKOPELLI STORAGE: Case Summary & 10 Largest Unsecured Creditors

L-1 IDENTITY: S&P Retains CreditWatch Developing on 'B+' Rating
LARRY HEINRICH: Voluntary Chapter 11 Case Summary
LEHMAN BROTHERS: Fogarazzo, et al., Want to Pursue Securities Suit
LEHMAN BROTHERS: LBI Trustee Wants Underwriting Fees Status Upheld
LEHMAN BROTHERS: Wins OK of Transfer Agreement With Citibank

LEHMAN BROTHERS: Wins OK to Acquire Loans Through LBREP JV
LOGAN'S ROADHOUSE: Moody's Reviews 'B2' Corporate Family Rating
LOGAN'S ROADHOUSE: S&P Affirms 'B-' Corporate Credit Rating
MARIAN FORTIER: Case Summary & 7 Largest Unsecured Creditors
MAULDING DEVELOPMENT: Voluntary Chapter 11 Case Summary

METROFINANCIERA SAPI: Chapter 15 Case Summary
MICHAEL LABADIE: Case Summary & 20 Largest Unsecured Creditors
MIG INC: Plan Confirmation Hearing Scheduled for September 28
MORAN LAKE: Case Summary & 10 Largest Unsecured Creditors
NFLUX LLC: Voluntary Chapter 11 Case Summary

NORTEL NETWORKS: Creditors Committee Down to Three Members
NORTEL NETWORKS: Has Settlement With Verizon
NORTEL NETWORKS: Wins Ok for RLKS as Wind-Down Consultant
PACIFIC ENERGY: Plan Confirmation Hearing Set for October 12
PARK GROVE: Case Summary & 20 Largest Unsecured Creditors

PETTIT ENTERPRISES: Case Summary & 3 Largest Unsecured Creditors
PROFESSIONAL VETERINARY: Files Schedules of Assets & Liabilities
PROFESSIONAL VETERINARY: Section 341(a) Meeting Set for Sept. 21
PROFESSIONAL VETERINARY: Creditors Panel Taps Smith as Counsel
PROFESSIONAL VETERINARY: Gets OK to Hire McGrath as Bankr. Counsel

PROFESSIONAL VETERINARY: US Trustee Forms Creditors Committee
PS INVESTMENT: Voluntary Chapter 11 Case Summary
REAL MEX: Moody's Retains 'Caa2' Corporate Family Rating
REFCO INC: Cantor Wants Rule 2004 Exam on Refco & Capstone
REFCO INC: LLC Trustee Reaches Settlement With Former Customers

ROBERT SPEHAR: Case Summary & 20 Largest Unsecured Creditors
ROSEMONT TWO: Case Summary & 20 Largest Unsecured Creditors
ROTHSTEIN ROSENFELDT: Judge Directs Founder to Repay $363MM
SPA CHAKRA: Halts Operations; Files for Chapter 7
SUNCAL COS: Judge Declines to Lift Lehman Automatic Stay

TACO DEL MAR: Says Purchaser's Bid Within Range of Assets' Value
TELETOUCH COMMS: May 31 Balance Sheet Upside-Down by $8.64 Million
THINKFILM LLC: Creditors Seek Summary Judgment
TRIBUNE COMPANY: Mediator to Assist in Plan Negotiations
UAL CORP: DOT Issues Route Transfer Exemption

UAL CORP: DOJ Review Completed; Merger to be Completed Oct. 1
US FIDELIS: Missouri Seeks Chapter 11 Trustee
VALENCE TECHNOLOGY: Berg & Berg Buys 7.2 Million Shares
VAREL FUNDING: S&P Gives Negative Outlook; Keeps 'CCC+' Rating
VERTIS HOLDINGS: Extends Exchange Offers Until Sept. 30

WASHINGTON MUTUAL: Examiner Taps Cole Schotz as Counsel
WESTERN UTAH: Pure Nickel Says Lawsuit Without Merit
WINALTA INC: Gets Fourth Extension of CCAA Stay Until Sept. 7
WORLDCOM INC: Judge Weighs IP Claims Against Verizon
WORLDWIDE DIRECT: Court OKs Trustee's Motion for Summary Judgment

* Bank Closings Emphasize Need for Private Sources of Capital
* Institutions on FDIC's "Problem List" Rose to 829
* SEC Issues Report Cautioning Credit Rating Agencies

* DLA Piper's M. Williams Joins Sheppard Mullin
* SmithAmundsen Greatly Expands Financial Services Practice

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


                            *********


2001 PROPERTIES: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: 2001 Properties, LLC
        5700 State Line
        Mission Hills, KS 66208

Bankruptcy Case No.: 10-32331

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       District of Colorado (Denver)

Judge: Elizabeth E. Brown

Debtor's Counsel: Guy B. Humphries, Esq.
                  1801 Broadway, Suite 1100
                  Denver, CO 80202
                  Tel: (303) 832-0029
                  Fax: (303) 382-4165
                  E-mail: guyhumphries@msn.com

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

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

The petition was signed by Steve Lewerenz, co-manager.

Debtor's List of 20 Largest Unsecured Creditors:

        Entity                     Nature of Claim    Claim Amount
        ------                     ---------------    ------------
Schneider & Prolo Trust            Trade Debt          $14,000,000
1100 Park Place, Suite 100
San Mateo, CA 94403

Poss Architecture                  Trade Debt             $587,000
605 Main Street
Aspen, CO 81611

Marcia Wadell                      Bank Loan              $578,000
Trustee of WNB Trust
2305 Forest View Avenue
Hillsborough, CA 94010

Town of Gypsum                     Trade Debt             $465,000
50 Lundgren Boulevard
Gypsum, CO 81637

Robert & Sharon Egan               Trade Debt             $445,000
0731 Bull Run
Eagle, CO 81631

Boundaries Unlimited, Inc.         Trade Debt             $306,000
923 Cooper Avenue
Glenwood Springs, CO 81601

Ewing Trucking & Construction      Trade Debt             $205,000

Jerome E. Murphy, PC               Trade Debt             $200,000

Landform Development, Inc.         Trade Debt             $177,602

Cook & Solis Construction          Trade Debt             $145,000

DHM Design                         Trade Debt              $86,678

Nexgen Constructors, Inc.          Trade Debt              $85,000

Price Waterhouse Coopers           Trade Debt              $75,000

Brownstein Hyatt & Farber          Trade Debt              $35,180

Resource Engineering, Inc.         Trade Debt              $31,475

Pinnacle Design Company            Trade Debt              $30,000

Kurtis & Dawn Greenman             Trade Debt              $27,250

Miller Rosenbluth, LLC             Trade Debt              $25,000

Golf Course Design, Inc.           Trade Debt              $25,000

Horan & Barker                     Trade Debt              $14,000


AIMS WORLDWIDE: Posts $2.36-Mil. Net Profit in 1st Half of 2010
---------------------------------------------------------------
Aims Worldwide Inc. filed its quarterly report on Form 10-Q,
reporting net profit of $2,363,719 on $3,825,831 of revenues for
the six months ended June 30, 2010, compared with a net loss of
$943,528 on $2,304,523 revenues for the same period a year ago.

The Company's balance sheet at June 30, 2010, showed $3,147,608 in
total assets, $4,763,922 in total liabilities, and a $1,380,581
stockholders' deficit.

As reported in the Troubled Company Reporter on April 21, 2010,
Turner, Jones & Associates, PLLC, in Vienna, Va., expressed
substantial doubt about the Company's ability to continue as a
going concern.  The independent auditors noted that the Company
has incurred significant operating losses since its inception and
has a net working capital deficiency at December 31, 2009.

The Company acknowledged in the Form 10-Q, "We do not have any
long-term capital commitments.  However, because of our M&A
engagement with investment banker Maxim Group, LLC, we anticipate
that Maxim will assist us in financing our acquisition strategy,
leading to the development of a long-term capital program.  We
believe that our immediate needs can be met with a combination of
cash on hand and through ongoing operations.  We realize that we
will require additional capital to fully implement our business
plan and anticipate achievement with Maxim or through other
investment banking efforts being explored by the Company.  We are
currently negotiating to acquire more companies that fit into our
marketing and digital platform.  We will have to raise additional
capital during the coming year for acquisition costs, growth
capital, and other expenses.  We will also have ongoing legal and
auditing expenses as well as office and lease expenses.  If we
cannot generate sufficient capital through ongoing operations and
these capital raising programs, we will likely sell common stock,
seek advances from officers or explore other debt financing
strategies."

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6a97

                    About AIMS Worldwide

Based in Fairfax, Virginia, AIMS Worldwide Inc. (OTC BB: AMWW)
-- http://www.aimsworldwide.com/-- is a vertically
integrated marketing communications consultancy providing
organizations with its AIMSolutions branded focused marketing
solutions.


AMBAC FINANCIAL: Investors Seek to End Fraudulent Asset Move
------------------------------------------------------------
American Bankruptcy Institute reports that investors who own debt
insured by Ambac Financial Group Inc.'s operating unit have asked
for permission to try to bar the parent, which has warned it may
seek bankruptcy protection, from removing assets from the unit at
their expense.

                        About Ambac Financial

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

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

Ambac Financial noted in its Form 10-Q for the quarter ended
June 30, 2010 that its liquidity and solvency are largely
dependent on dividends principal financial guarantee operating
subsidiary, Ambac Assurance Corporation, and on the value of the
subsidiary.  Ambac Financial said that Ambac Assurance is "highly
unlikely" to be able to make dividend payments to Ambac for the
foreseeable future.  Ambac Financial said it is currently pursuing
raising additional capital and is also pursuing a restructuring of
its outstanding debt through a prepackaged bankruptcy proceeding.

The Company's balance sheet at June 30, 2010, showed
$30.05 billion in total assets, $31.47 billion in total
liabilities, and $1.42 billion in stockholders' deficit.

Ambac once boasted top triple-A credit ratings.  In November 2009,
Ambac warned it could have problems paying off debt that comes due
in 2011.  Before the financial crisis, Ambac was the second-
biggest bond insurer behind MBIA Inc.


AMBASSADORS INTERNATIONAL: Nasdaq Grants Continued Listing Request
------------------------------------------------------------------
Ambassadors International, Inc. has been notified by the Nasdaq
Stock Market that the Nasdaq Hearings Panel has granted the
Company's request for continued listing of its Common Stock on the
Nasdaq Stock Market.  The Panel's decision is subject to the
Company's Common Stock evidencing a closing bid price of $1.00 per
share or more, as required by Nasdaq rules, for a minimum of ten
consecutive trading days on or before September 10, 2010.  The
Panel also approved the Company's request to have trading in its
Common Stock transferred from the Nasdaq Global Market to the
Nasdaq Capital Market.  The Company has submitted a formal
application for the transfer of its listing to the Nasdaq Capital
Market and, subject to approval by the Nasdaq Listing
Qualifications Department, the transfer is expected to become
effective on or about September 17, 2010.

As previously announced, in May and August 2010, the Company
received formal delisting determination letters from the Nasdaq
Listing Qualifications staff regarding the Company's non-
compliance with two continued listing requirements of the Nasdaq
Global Market: the $1.00 minimum bid price requirement and the
$10.0 million minimum stockholders' equity requirement.  In July
2010, the Panel granted the Company's request for an extension of
time through September 10, 2010 for the Company to regain
compliance with the $1.00 minimum bid price requirement. In order
to regain compliance with this minimum bid price requirement, the
Company effected a 1-for-8 reverse split of its Common Stock,
which took effect at 11:59 p.m. on August 23, 2010.

Because of the Company's non-compliance with the $10.0 million
minimum stockholders' equity requirement of the Nasdaq Global
Market, based upon its June 30, 2010 financial statements, the
Company recently requested the Panel's permission to submit an
application to transfer the listing of its Common Stock to the
Nasdaq Capital Market, where the Company would be in compliance
with that market's $2.5 million minimum stockholders' equity
requirement for continued listing.  The Panel approved this
transfer request, subject to the following conditions: (1) on or
before September 10, 2010, the Company must have evidenced a
closing bid price of $1.00 or more for a minimum of ten prior
consecutive trading days, and (2) on or before September 17, 2010,
the Company must have its application for transfer to the Nasdaq
Capital Market approved by the Nasdaq Listing Qualifications
Department.  In order to fully comply with the terms of the
Panel's decision, the Company must also be able to demonstrate
compliance with all other requirements for continued listing on
the Nasdaq Capital Market.

The Nasdaq Capital Market is one of the three markets for Nasdaq-
listed stocks and operates in the same manner as the Nasdaq Global
Market. Companies listed on the Nasdaq Capital Market must meet
certain financial requirements and adhere to Nasdaq's corporate
governance standards. Upon the transfer of the Company's Common
Stock to the Nasdaq Capital Market, the Company's trading symbol
will continue to be "AMIED" through September 20, 2010 and "AMIE"
thereafter.  Trading in the Company's Common Stock will be
unaffected by the transfer to the Nasdaq Capital Market.

Assuming approval of the Company's transfer application, the
Company expects to be in compliance with all applicable financial
requirements for continued listing on the Nasdaq Capital Market as
of September 17, 2010, the anticipated date of transfer, including
the $2.5 million stockholders' equity requirement.  However, if
the Company were to fail in the future to comply with the $2.5
million minimum stockholders' equity requirement of the Nasdaq
Capital Market or any other requirements for continued listing on
the Nasdaq Capital Market, the Company's Common Stock could become
subject to potential delisting.

                About Ambassadors International, Inc.

Ambassadors International, Inc. -- http://www.ambassadors.com/--
is primarily a cruise company.  The Company operates Windstar
Cruises, an international, luxury cruise line.  The Company is
transitioning its headquarters from Newport Beach, California to
Seattle, Washington.


AMERICAN CASINO: Moody's Gives Negative Outlook, Keeps B3 Ratings
-----------------------------------------------------------------
Moody's Investors Service changed the rating outlook for American
Casino & Entertainment Properties, LLC, to negative from stable.
The company's B3 Corporate Family Rating, B3 Probability of
Default Rating, B3 senior secured note rating, and SGL2
Speculative Grade Liquidity rating were affirmed.

The change in rating outlook reflects worse than expected
operating results through the second quarter of 2010 that has
caused credit metrics to deteriorate.  Additionally, the operating
environment on the Las Vegas Strip and in the Las Vegas locals
market remains under pressure due to capacity additions and lower
spending on gaming by consumers.  Thus, there is a higher
probability that ACEP could have difficulty keeping leverage and
interest coverage at levels appropriate for its current rating.

                        Rating Rationale

ACEP's B3 Corporate Family Rating reflects the company's small
size, its high leverage, and weak interest coverage, It also
reflects the company's revenue concentration in the depressed
gaming markets in and around Las Vegas and capacity expansion on
the Las Vegas Strip that has depressed room rates and hampered
operators' ability to increase rates.  Positive rating
considerations include the company's good liquidity and Moody's
expectation that ACEP can generate sufficient earnings to support
interest and maintenance capital spending.

ACEP's ratings could be downgraded if debt (net of cash balances
in excess of $20 million) to EBITDA is sustained above 6.0 times,
if cash balances decline materially, if liquidity deteriorates, or
if EBITDA-capex to interest drops below 1.0 times.  Alternatively,
while not expected in the near term, ratings could be upgraded if
the company can improve and sustain gross debt/EBITDA below 3.5
times and EBIT/interest expense around 1.5 times.

Ratings affirmed and assessments updated:

* Corporate Family Rating at B3

* Probability of Default Rating at B3

* $375 million 11% secured notes at B3 (LGD 3, 47%) from B3 (LGD
  4, 50%)

* Speculative Grade Liquidity Rating at SGL2

American Casino & Entertainment Properties, LLC owns and operated
three gaming properties in Las Vegas, NV and one property in
Laughlin, NV.  Trailing twelve month revenue as of June 30, 2010,
was approximately $343 million.


AMERICAN INT'L: Taiwan Rejects Nan Shan Sale to HK Consortium
-------------------------------------------------------------
Ting-I Tsai and Aries Poon, writing for The Wall Street Journal,
report that Taiwan government officials rejected the planned
$2.15 billion sale of American International Group Inc.'s
Taiwanese life-insurance unit to a Hong Kong consortium,
delivering another blow to AIG's efforts to raise money through
the disposal of its Asian assets.  Taiwan's Financial Supervisory
Commission said Tuesday that it decided to reject the deal because
it had doubts about China Strategic Holdings Ltd.'s financial
strength and commitment to Nan Shan Life Insurance Co., which
controls more than a 30% share of Taiwan's life-insurance market.

According to the Journal, the consortium set up by China Strategic
and Primus Financial Holdings Ltd. can file an appeal within 30
days.

The report also says Taiwan's insurance regulator said it hoped
AIG could continue to operate the insurance unit in Taiwan.  But
if not, the regulator hoped AIG could find a buyer that "fits
everybody's interests," said Thomas Huang, director of the FSC's
Insurance Bureau.

The Troubled Company Reporter, citing Dow Jones Newswires,
reported August 26, 2010, that AIG said it is committed to selling
its stake in Nan Shan to the China Strategic consortium, 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 said Chinatrust Financial Holding Co., the parent
company of Taiwan's largest credit-card issuer, restated last
month its interest in buying AIG's stake in Nan Shan.  AIG said it
is confident the deal with the China Strategic consortium would be
approved by Taiwan's regulator.

Dow Jones said 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
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.


BEACHES HOSPITALITY: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Beaches Hospitality, LLC
          dba Hampton Inn & Suites
        13733 Beach Boulevard
        Jacksonville, FL 32225

Bankruptcy Case No.: 10-21049

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       Middle District of Florida (Tampa)

Debtor's Counsel: Buddy D. Ford, Esq.
                  115 N. MacDill Avenue
                  Tampa, FL 33609-1521
                  Tel: (813) 877-4669
                  Fax: (813) 877-5543
                  E-mail: Buddy@tampaesq.com

Estimated Assets: $0 to $50,000

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

The Company did not file a list of creditors together with its
petition.

The petition was signed by Kirit Patidar, manager.

Debtor-affiliate filing separate Chapter 11 petition:

        Entity                        Case No.       Petition Date
        ------                        --------       -------------
East Beaches Hospitality, LLC         10-21051          8/31/10


BERNARD MADOFF: Trustee Settles Dispute Over Feeder Fund Cash
-------------------------------------------------------------
Bankruptcy Law360 reports that Irving H. Picard, the trustee
charged with recovering money for victims of Bernard Madoff's
Ponzi scheme, has settled a dispute with liquidators in the Cayman
Islands over $5 million held by Primeo Fund, one of the scheme's
alleged feeder funds.  Mr. Picard is asking Judge Burton R.
Lifland to approve the settlement.

                       About Bernard L. Madoff

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

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

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

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

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

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

As of August 13, 2010, a total of US$5,578,441,409 in claims by
investors has been allowed, with US$715,602,064 to be paid by the
SIPC.  Investors are expected to receive additional distributions
from money recovered by Mr. Picard.

Mr. Picard has recovered a number of assets and in liquidated some
of those assets for the benefit of customers, totaling
US$1,183,779,811 as of November 2009.


BIOLASE TECHNOLOGY: Board Chair to Serve as Interim CEO
-------------------------------------------------------
The board of directors of Biolase Technology Inc. appointed On
Aug. 27, 2010, Federico Pignatelli as interim chief executive
officer of the Company.

Mr. Pignatelli will receive $1.00 as consideration for his
services as interim CFO.  Mr. Pignatelli is currently the chairman
of the board of Biolase.

Mr. Pignatelli served as Biolase president from January 2008 until
June 2010.  From November 2007 to January 2008, Mr. Pignatelli
served as interim CEO.  He has served as a director since 1991.
He is the founder, and has served as president, of Art & Fashion
Group since 1992.  Art & Fashion Group is a holding company of an
array of businesses providing services to the advertising
industry, including the world's largest complex of digital and
film still photography studios for production and post-
production.  Previously, Mr. Pignatelli was a managing director at
Gruntal & Company, an investment banking and brokerage firm, and
was a managing director of Ladenburg, Thalmann & Co., another
investment banking and brokerage firm.

                       Forbearance Agreement

On August 16, Biolase and certain of its subsidiaries, as
guarantors under a Loan and Security Agreement, dated May 27,
2010, by and among the Company, MidCap Financial LLC, and Silicon
Valley Bank, entered into a forbearance agreement on August 16,
2010.

The Lenders agreed to, among other things, forbear from taking any
action to enforce certain of their rights or remedies under the
Loan Agreement with respect to the Company's non-compliance with a
minimum EBITDA financial covenant.  The Forbearance Agreement is
effective until the earliest of (a) August 31, 2010, and (b) the
occurrence of certain other events as described in the Forbearance
Agreement.  The Forbearance Agreement contains covenants by the
Company regarding, among other things, supplemental financial
reporting, cooperation with the Lenders, and additional
disclosures and notices.

                         NASDAQ Delisting

As reported by the Troubled Company Reporter, on August 18,
Biolase received a staff deficiency letter from The NASDAQ Stock
Market indicating that based on the Company's stockholders' equity
as reported in its Quarterly Report on Form 10-Q for the quarterly
period ended June 30, 2010, the Company does not comply with the
minimum stockholders' equity requirement of $2.5 million for
continued listing on The NASDAQ Capital Market as set forth in
NASDAQ Listing Rule 5550(b)(1).  As of June 30, 2010, the
Company's stockholders' equity was approximately negative $1.3
million.

The Company is permitted to submit a detailed plan of compliance
by October 4, 2010, advising NASDAQ of the action the Company has
taken, or plans to take, that would bring it into compliance with
Listing Rule 5550(b)(1).  Alternatively, the Company could
demonstrate 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 listing requirement.

                     About BIOLASE Technology

Irvine, California-based BIOLASE Technology, Inc. (NASDAQ:BLTI) --
http://www.biolase.com/-- the world's leading dental laser
company, develops, manufactures and markets Waterlase technology
and lasers and related products that advance the practice of
dentistry and medicine.  The Company's products incorporate
patented and patent pending technologies designed to provide
clinically superior performance with reduced pain, faster and
biological recovery times.  BIOLASE's principal products are
dental laser systems that perform a broad range of dental
procedures, including cosmetic and complex surgical applications.
Other products under development address ophthalmology, pain
management and other medical and consumer markets.

As of June 30, 2010, the Company had total assets of
$20.279 million, total liabilities of $21.582 million, and a
stockholders' deficit of $1.303 million.

                           *     *     *

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.


BONANZA OIL: Posts $682,200 Loss in Q2; Says Bankruptcy Possible
----------------------------------------------------------------
Bonanza Oil and Gas, Inc., filed its quarterly report on Form 10-
Q, reporting a net loss of $682,174 on $68,565 of revenues for the
three months ended June 30, 2010, compared with a net loss of
$682,096 on $73,340 of revenues for the same period a year ago.

The Company's balance sheet at June 30, 2010, showed $1,332,123 in
total assets, $2,388,585 in total current liabilities, and a
stockholders' deficit of $1,056,462.

The Company received an audit report for the year ended December
31, 2009, from its independent registered public accounting firm
containing an explanatory paragraph expressing substantial doubt
about our ability to continue as a going concern.  Weaver and
Tidwell, L.L.P., in Houston, Texas, noted that the Company has
incurred losses since inception, has not attained profitable
operations and is dependent upon obtaining adequate financing to
fulfill its exploration activities.

According to the Form 10-Q, the Company has incurred significant
losses and had negative cash flow from operations since inception,
and has an accumulated deficit of $23,757,430 at June 30, 2010.

The Company says in the event it is unable to continue as a going
concern, it may elect or be required to seek protection from its
creditors by filing a voluntary petition in bankruptcy or may be
subject to an involuntary petition in bankruptcy.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6a95

Bonanza Oil & Gas, Inc., is an independent energy company engaged
primarily in the acquisition, development, production and the sale
of crude oil, natural gas and natural gas liquids.  The Company's
production activities are located in the United States of America.
The principal executive offices of the Company are located in
Houston, Texas.


CAPCO GROUP: IRS Files $432,724 Claim for Unpaid Biz. Taxes
-----------------------------------------------------------
Alex Ben Block, writing for The Hollywood Reporter, said last week
the Internal Revenue Service has filed a claim for $432,724 in
unpaid business taxes against CapCo Group LLC, one of David
Bergstein's five companies that creditors are trying to force into
bankruptcy.  The claim was filed in U.S. Bankruptcy Court in Los
Angeles, where the involuntary case is pending.

The Hollywood Reporter said court-appointed interim trustee Ronald
Durkin has said in previous court-mandated reports that Mr.
Bergstein has not paid all payroll or other business taxes on his
companies for the past couple of years -- or personal income taxes
for three years.

The report notes the IRS claim is likely to take precedence over
unpaid debts held by more than 30 other creditors.

                        About CapCo et al.

CapCo Group LLC and four other companies controlled by David
Bergstein are part of a network of entities that distribute and
finance films.  Among the approximately 1,300 films they have the
rights to are "Boondock Saints" and "The Wedding Planner."

Several creditors filed for involuntary Chapter 11 against the
companies on March 17, 2010 -- CT-1 Holdings LLC (Bankr. C.D.
Calif. Case No. 10-19927); CapCo Group, LLC (Bankr. C.D. Calif.
Case No. 10-19929); Capitol Films Development LLC (Bankr. C.D.
Calif. Case No. 10-19938); R2D2, LLC (Bankr. C.D. Calif. Case No.
10-19924); and ThinkFilm LLC (Bankr. C.D. Calif. Case No. 10-
19912).  Judge Barry Russell presides over the cases.  The
Petitioners are represented by David L. Neale, Esq., at Levene
Neale Bender Rankin & Brill LLP.


CASPIAN SERVICES: Has Until Sept. 13 to Submit Restructuring Plan
-----------------------------------------------------------------
Caspian Services, Inc., entered into respective Facility
agreements with Altima Central Asia (Master) Fund Ltd., on
June 20, 2008, and Great Circle Energy Services, L.L.C., on
September 3, 2008.  Pursuant to the Facility agreements, Altima
and Great Circle each loaned the Company $15,000,000.  At June 30,
2010, the outstanding loan balance and accrued interest of the
Altima loan and the Great Circle loan were $19,154,000 and
$18,622,000z

Each Facility agreement contains certain financial covenants.  The
violation of these financial covenants can constitute an event of
default under each Facility agreement.  Pursuant to the terms of
the Facility agreements, upon the occurrence of an event of
default the lender has certain remedies available to it, including
the acceleration of the loan balance, which would allow the lender
to call the loan immediately due and payable or payable on demand.

At the end of July 2010, the Company received written notice from
Altima that it believed the Company was in violation of at least
two of the financial covenants of the Altima Facility agreement.
The Company has also been verbally notified by Great Circle that
it believes the Company is in violation of some of the financial
covenants of the Great Circle Facility agreement.

On August 23, 2010 the Company entered into Conditional
Forbearance Agreements with each of Altima and Great Circle.
Pursuant to the Forbearance Agreements, Altima and Great Circle
have individually agreed to conditionally forbear exercising any
remedies available to them under the Facility agreements until the
earliest of:

     -- the occurrence or existence of any event of default not
        covered in the Forbearance Agreement;

     -- Altima or Great Circle determines that negotiations for
        agreeing on the terms of a longer-term conditional
        forbearance or comprehensive restructuring plan are not
        being carried out in good faith by the Company which
        includes providing to Altima and Great Circle:

          (i) by September 13, 2010 a comprehensive strategic
              restructuring plan; and

         (ii) by September 20, 2010, conducting a meeting to
              review the strategic restructuring plan with Altima,
              Great Circle or its advisor and the European Bank
              for Reconstruction and Development;

     -- the date on which any other lender or creditor of the
        Company declares a default under its lending or credit
        agreement and declares such debt obligation of the Company
        immediately due and payable;

     -- the date on which the Company, or any of it subsidiaries,
        without the prior written consent of Altima and Great
        Circle:

          (i) agrees to sell, transfer or dispose of any material
              asset (excluding receivables);

         (ii) agrees to sell, transfer or dispose of receivables
              with a face value in excess of $100,000; or

        (iii) incurs, any capital expenditures in excess of
              $100,000;

     -- the Company takes any action whatsoever which adversely
        impacts or is intended to adversely impact the Company, or
        any of its subsidiaries; and

     -- September 22, 2010

The Strategic Restructuring Plan includes for the Borrower monthly
financial reports, including actual and projected profit and loss,
balance sheet and cash flow, for 36 months together with details
of a proposed debt restructuring which includes immediate
repayment of all accrued interest and a plan to repay the balance
of the Loan over the projected period.

The Company has covenanted to immediately notify Altima and Great
Circle of the occurrence of any of event that would violate the
conditions.

The Forbearance Agreements do not waive the existing events of
default.  From and after the termination or expiration of the
Forbearance Agreements, and without notice, Altima or Great Circle
may, at any time, exercise any remedies available to them as they
deem appropriate.

                      About Caspian Services

Caspian Services, Inc.'s business consists of three major business
segments: (1) Vessel Operations -- consist of chartering a fleet
of shallow draft offshore support vessels to customers performing
oil and gas exploration activities in the Kazakhstan Sector of the
North Caspian Sea; (2) Geophysical services -- consist of
providing seismic data acquisition services to oil and gas
companies operating both onshore in Kazakhstan and offshore in the
Kazakhstan sector of the North Caspian Sea and the adjacent
transition zone; and (3) Marine Base Services -- consists of
operating marine base located at the Port of Bautino on the North
Caspian Sea and an operating water desalinization and bottling
plant selling potable water.


CAPMARK FINANCIAL: Proposes to Restructure LIHTC Transactions
-------------------------------------------------------------
Capmark Financial Group Inc. and its debtor affiliates ask the
U.S. Bankruptcy Court to authorize:

  (a) the restructuring of low-income housing tax credit
      transactions between certain of the Debtors and Merrill
      Lynch Capital Services, Inc. and its affiliate, Merrill
      Lynch, Pierce, Fenner & Smith Incorporated;

  (b) the transfer of substantially all of the Debtors' rights
      and assets in the LIHTC transactions with Merrill Lynch,
      free and clear of liens, claims and encumbrances other
      than the Merrill Lynch Liens, to Tax Credit Holdings I,
      LLC, a newly formed nondebtor special purpose subsidiary
      of the Debtors into a restructuring; and

  (c) the entry by certain of the Debtors into a restructuring
      and settlement agreement and other related transaction
      documents with Merrill Lynch to effectuate the terms of
      the restructuring, settlement, and the release of all
      claims Merrill Lynch has asserted or could assert against
      the Debtors relating to the LIHTC transactions.

       Purpose and Nature of the LIHTC Transactions

Before the Petition Date, several of the Debtors and their
nondebtor affiliates were involved in a business commonly known
as "LIHTC syndication."  This involved financing and aggregating
equity investments in affordable housing properties for sale to
institutional third party investors through structured fund
transactions.

The LIHTC Transactions were effectuated pursuant to the LIHTC
investment and tax credit program created under the federal Tax
Reform Act of 1986, enacted to incentivize the investment of
private equity in the development of affordable housing
properties.

The LIHCT Transactions with Merrill Lynch are an integrated set
for highly complex agreements and structured transactions.  Under
these transactions, certain of the Debtors and their affiliates
sponsored LIHTC investment limited liability company funds in
which equity interests were sold to the Investors.  The parties
structured the LIHTC Transactions intending for the Investors to
earn a guaranteed after tax rate of return on their capital
investments in Funds in which the Debtors aggregated and
syndicated the equity ownership of LIHTC Properties.  The Rate of
Return was to be earned through tax credits and other tax
benefits generated by the Investors' equity ownership in LIHTC
Properties over a minimum duration of 15 years.

In the Merrill Lynch LIHTC Transactions, MLCS executed investor
return floor agreements for the benefit of the Investors, which
obligated MLCS to pay a minimum guaranteed Rate of Return to
Investors.

In each of the LIHTC Transactions, MLCS undertook a payment
obligation to the Funds in the form of a separate ISDA Master
Agreement, referred to as an "Investor Return Floor Agreement."
Pursuant to the IRF, MLCS agreed to pay any deficit of the
expected Rate of Return to the applicable Fund in the event the
Managing Member failed to make mandatory loans.  In exchange for
incurring its payment obligation under each IRFA, MLCS received a
one-time fixed fee, which was paid by the applicable Fund.

Capmark Capital, in turn, agreed to pay MLCS any amount MLCS was
obligated to pay to the Funds under the IRFAs.  To document
Capmark Capital's payment obligation, Capmark Capital and MLCS
entered into a "back to back" ISDA Master Agreement, dated as of
December 29, 2004, with separate confirmations for the various
funds.

Under the Back-to-Back Agreement, the applicable Funds paid a
one-time fixed amount to Capmark Capital and Capmark Capital
agreed to pay MLCS for any amounts paid by or on behalf of
MLCS pursuant to the IRFAs.  The Debtors relate that, as of
the Petition Date, Capmark Capital's payment obligations under
the Back-to-Back Agreement were secured by approximately
$30.7 million in collateral, comprised of a nominal amount of
cash and primarily of highly liquid money-market instruments,
in which Capmark Capital granted a security interest in favor
of MLCS.

                       Prepetition Actions

Two days after the Petition Date, MLCS notified Capmark Capital
that its commencement of a bankruptcy case constituted an event
of default under the Back-to-Back Agreement and purported to
establish October 30, 2009, as an early termination date under
the Back-to-Back Agreement.

On November 18, 2009, MLCS delivered a "Close Out Notice" to the
Debtors, which stated that the amount payable to MLCS by Capmark
Capital under the Back-to-Back Agreement was approximately
$91.8 million plus MLCS' attorneys' fees.  The Debtors
subsequently notified MLCS that they dispute MLCS's Loss
Calculation and reserved all rights with respect to MLCS's
actions, and have since been negotiating with MLCS in an attempt
to resolve the dispute and MLCS's claims.

MLCS filed on March 31, 2010, a motion seeking (i) a declaration
that the Back-to-Back Agreement is safe harbor "swap agreement"
entitling it to terminate the agreement as of October 30, 2009,
and foreclose on the BTB Collateral Lien without seeking relief
from the automatic stay or, alternatively (ii) relief from
automatic stay "for cause" under Section 362(d)(1) of the
Bankruptcy Code to permit MLCS to foreclose on the BTB Collateral
Lien.  In the Stay Relief Motion, MLCS alleged that it is
entitled to a payment of the identical amount claimed under its
proof of claim relating to the Back-to-Back Agreement,
approximately $91.8 million.

The Debtors filed an objection to the Stay Relief Motion arguing
that the Back-to-Back Agreement does not constitute a "swap
agreement" under the Bankruptcy Code, is not protected by the
"safe harbor" provisions of the Bankruptcy Code, and, therefore,
MLCS is not entitled to terminate the agreement without first
obtaining relief from the automatic stay.

                    Settlement Discussions

The parties continued negotiation of a consensual resolution of
all rights and obligations of the parties relating to the Merrill
Lynch LIHTC Transactions.  The parties agreed to adjourn the
commencement of any hearing and defer any consideration on the
merits of the Stay Relief Motion to a later date.

The parties signed a nonbinding term sheet on July 19, 2010,
which sets forth the general terms for restructuring the LIHTC
Transactions and settling all of Merrill Lynch's claims against
the Debtors.  On August 25, 2010, the parties reduced the Term
Sheet to the binding RSA, which, along with all related
transactions and other Transaction Documents, comprise the
Settlement.

                     Major Terms of the RSA

Among the salient terms of the RSA and other Transaction
Documents are:

  (a) NewCo Formation and Ownership.  Debtors Capmark Capital
      and Capmark Affordable Equity Inc. will form a new
      nondebtor subsidiary, NewCo, and will collectively own
      100% of the membership equity interest in and management
      rights of NewCo, subject to MLCS's consent rights.

  (b) Assets Transferred to NewCo.  The Assignors will transfer
      certain assets to NewCo in exchange for the equity in
      NewCo and the release of Merrill Lynch's claims against
      the Debtors.

  (c) No New Investment.  Other than the transfer of assets, no
      Debtor will be required to contribute new capital or make
      any other investment in NewCo.

  (d) NewCo Swap.  NewCo will enter into a new back-to-back swap
      agreement with MLCS, substantially similar to the Back-to-
      Back Agreement between Capmark Capital and MLCS, except
      the Aggregate Monetary Required Collateral Amounts will be
      tied to a "Monetary Liability Exposure" of 100% instead of
      125% and certain provisions relating to the BTB Collateral
      will be revised.

  (e) Termination Agreement and Liability Releases.  Capmark
      Capital and Merrill Lynch will enter into a termination
      and release agreement to formally terminate the Back-to-
      Back Agreement and settle certain other claim issues
      relating to a Roaring Fork Trust.

The Debtors relate that the Settlement embodied in the RSA and
other Transaction Documents represents a global resolution of all
issues between them and Merrill Lynch relating to the LIHTC
Transactions, which the Debtors believe is a significant and
positive outcome for the estates.  The Debtors maintain that the
settlement of the claims avoids uncertain and unnecessary
litigation risk, and instead provides for a resolution consistent
with their approach to controlling any potential liability.

According to the Debtors, the Settlement provides for the release
of the claims against the estate under the Back-to-Back
Agreement, which immediately relieves the estates and their
creditors of approximately $61 million in unsecured deficiency
claims.

Moreover, the Debtors tell the Court that the restructuring of
the Roaring Fork Trust avoids an unnecessarily hastened sale of
the Bonds at depressed values that would eviscerate the estates'
interest and potential values in the structure.

A full-text copy of the RSA, together with other related
documents, is available for free at:

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

                      About Capmark Financial

Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets.  Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing.  Capmark operates in North America, Europe and
Asia.  Capmark has 1,000 employees located in 37 offices
worldwide.

On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684).  Capmark had total
assets of US$20 billion against total debts of US$21 billion as of
June 30, 2009.

Protech Holdings C, LLC, an affiliate of Capmark, filed for
Chapter 11 on July 29, 2010 (Bankr. D. Del. Case No. 10-12387).
The Debtor estimated assets and debts in excess of $1 billion as
of the filing date.

Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company.  Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP.  Richards, Layton & Finger, P.A., serves as local
counsel.  Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor.  Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.

Since filing in Chapter 11, Capmark completed three sales to
generate more than $1 billion cash. Berkshire Hathaway Inc. and
Leucadia National Corp. bought most of the business for
$468 million.

Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)


CAPMARK FINANCIAL: Sec. 341 Meeting in Protech's Case on Sept. 15
-----------------------------------------------------------------
A meeting of creditors in the bankruptcy case of Debtor Protech
Holdings C, LLC, will be held on September 15, 2010, at 2:00 p.m.,
at Room 2112 of the J. Caleb Boggs Federal Building, 844 King
Street, 2nd Floor, in Wilmington, Delaware.

The Debtor's representative is required to appear at the meeting
of creditors for the purpose of being examined under oath.
Attendance by creditors at the meeting is welcomed, but not
required.  At the meeting, the creditors may examine the Debtor's
representative and transact other business as may properly
come before the meeting.

                      About Capmark Financial

Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets.  Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing.  Capmark operates in North America, Europe and
Asia.  Capmark has 1,000 employees located in 37 offices
worldwide.

On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684).  Capmark had total
assets of US$20 billion against total debts of US$21 billion as of
June 30, 2009.

Protech Holdings C, LLC, an affiliate of Capmark, filed for
Chapter 11 on July 29, 2010 (Bankr. D. Del. Case No. 10-12387).
The Debtor estimated assets and debts in excess of $1 billion as
of the filing date.

Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company.  Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP.  Richards, Layton & Finger, P.A., serves as local
counsel.  Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor.  Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.

Since filing in Chapter 11, Capmark completed three sales to
generate more than $1 billion cash. Berkshire Hathaway Inc. and
Leucadia National Corp. bought most of the business for
$468 million.

Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)


CAPMARK FINANCIAL: Wants Plan Filing Exclusivity Until Dec. 31
--------------------------------------------------------------
Capmark Financial Group Inc. and its debtor affiliates ask Judge
Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware to further extend the period within which
they have the exclusive right to file a Chapter 11 plan through
December 31, 2010, and the exclusive right to solicit acceptances
of that Plan through March 1, 2011.

The Debtors assert that "cause" exists to warrant further
extension of their Exclusive Periods.  According to the Debtors,
their Chapter 11 cases are extremely large and complex, as
evidenced by the Schedules of Assets and Liabilities, Statements
of Financial Affairs, and pleadings filed by them and the
intertwined corporate structure and business operations of 45
Debtors.  The Debtors maintain that they entered Chapter 11 with
approximately $10 billion in debt, and over a thousand creditors.

During the period since the Debtors' first request for an
extension of the Exclusive Periods, the Debtors have made
substantial progress in addressing and resolving the difficult
issues in their bankruptcy cases, says Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A., in Wilmington, Delaware.
Additionally, he notes, the Debtors consummated several complex,
value-generating transactions, transactions that would be
challenging to consummate within the same time period even
outside of Chapter 11.

Mr. Madron tells the Court that these substantial efforts and
accomplishments include:

  * The sale of substantially all the assets in the Debtors'
    real estate equity investments advisory group business.

  * The sale of their equity and other assets in Mexican
    real estate joint ventures.

  * The sale of a high-profile real estate loan secured by the
    Washington D.C. Georgetown Park shopping mall and office
    complex, and settlement of related litigation disputes.

  * The sale of their equity interest in a registered
    broker-dealer subsidiary, Capmark Securities Inc.

  * The negotiations with the Official Committee of Unsecured
    Creditors, an ad hoc committee of unsecured bank
    debtholders, an ad hoc committee of secured lenders, the
    agents for the secured and unsecured bank debtholders, and
    certain secured lenders regarding plan scenarios, potential
    avoidance actions, and claims resolution, including the
    resolution of secured claims.

  * Negotiations with the lenders under the $400 million
    Japanese bank facility.

  * Discussions with the Committee, the Ad Hoc Secured
    Committee, and other secured and unsecured creditors and
    their advisors regarding the factual bases and legal
    theories on which an avoidance action against secured
    claimholders might be premised.

  * Retention of Duff & Phelps, LLC as valuation experts to
    provide an analysis of the Debtors' solvency as well as the
    value of the collateral belonging to the secured lenders
    under the Secured Credit Facility.

  * The conduct of comprehensive negotiations with key creditor
    constituencies in the low-income housing tax credit and new
    markets tax credit business platforms in an effort to
    resolve hundreds of millions of dollars in contingent
    claims through complex structured settlements,
    restructurings, and other transactions.

  * The review of the more than 1,500 claims filed, preparing
    omnibus claims objections, and addressing the validity of
    other claims.

  * The study of numerous plan structures to determine an
    optimal structure to maximize recoveries for all parties-in-
    interest.

Mr. Madron asserts that a major obstacle to the Debtors' efforts
emerged when the Committee filed a motion for leave, standing,
and authority to prosecute various claims and causes of action on
behalf of the Debtors' estates against Citicorp North America
Inc., Citibank N.A., and the lenders under the Secured Credit
Facility.

Mr. Madron relates that the Debtors were able to negotiate a
settlement with a large majority of the Secured Lenders that is
beneficial to their estates.  Accordingly, Mr. Madron notes, the
Debtors intend to file a motion seeking Court approval of a
settlement with the Ad Hoc Secured Committee and certain Secured
Lenders, which resolves the uncertainty regarding the
allowability of the bulk of the Secured Claim under the Secured
Credit Facility, in exchange for a 9% reduction in the principal
amount of those claims as of the Petition Date, which reduction
totals approximately $100 million.

Furthermore, Mr. Madron says, the Debtors have paid, and will
continue to pay, their postpetition debts as they come due.  He
adds that the Debtors have sufficient liquidity to carry on the
normal course of their business.

Mr. Madron clarifies that the Debtors are not seeking an
extension of their Exclusive Periods to delay creditors or force
them to accede to their demands.

"In light of the relatively short duration of these Chapter 11
cases, the challenges faced by them and the progress made to
date, the Debtors submit a further extension of the Exclusive
Periods is warranted," Mr. Madron asserts.

Mr. Madron maintains that termination of the Exclusive Periods at
this critical juncture could derail the Debtors' efforts toward a
viable Chapter 11 plan and encourage protracted, unnecessary
litigation, the filing of multiple plans, and a contentious
confirmation process, resulting in increased administrative
expenses and, consequently, diminishing returns to all creditors.

                      About Capmark Financial

Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets.  Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing.  Capmark operates in North America, Europe and
Asia.  Capmark has 1,000 employees located in 37 offices
worldwide.

On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)

Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company.  Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP.  Richards, Layton & Finger, P.A., serves as local
counsel.  Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor.  Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.

Capmark had total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.

Protech Holdings C, LLC, an affiliate of Capmark, filed for
Chapter 11 on July 29, 2010 (Bankr. D. Del. Case No. 10-12387).
The Debtor estimated assets and debts in excess of $1 billion as
of the filing date.

Since filing in Chapter 11, Capmark completed three sales to
generate more than $1 billion cash. Berkshire Hathaway Inc. and
Leucadia National Corp. bought most of the business for
$468 million.

Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)


CHEMTURA CORP: Forms Korean JV With UP Chemical
-----------------------------------------------
Chemtura Corporation and UP Chemical Co., Ltd., signed a
Memorandum of Understanding (MOU) defining the terms of a joint
venture company to be formed which will manufacture and sell high-
purity metal organic precursors for the rapidly growing market for
metal organic precursors for High Brightness LED applications,
with particular focus on the South Korean market and the broader
Asia-Pacific region.

The joint venture will leverage Chemtura's capability and
technology related to metal organic precursors for polymerization
and other specialty applications, together with its backward
integration for trimethylaluminum (TMA), a key material used in
the manufacture of high-purity metal organic precursors for use in
the production process for High Brightness LED chips.

The joint venture will combine Chemtura's expertise with UP
Chemical's capability and experience in supplying high-purity
metal organic precursors for chemical vapor deposition tools
installed at semiconductor device manufacturers in South Korea
and the Asia Pacific region.

The joint venture expects to begin supply of high-purity metal
organic precursors to the High Brightness LED market by
December 2010, and expects to have fully integrated manufacturing
capability for trimethylgallium and trimethylaluminum established
in Korea in late 2011.

"With the formation of this joint venture, Chemtura and UP
Chemical will be uniquely positioned to meet the growing demand
for metal organic precursors for the High Brightness LED market.
By establishing fully integrated manufacturing and distribution
capability in Asia, we are addressing the expectations of
customers in the region who demand local manufacturing for
improved responsiveness and assurance of supply," said Craig
Rogerson, Chemtura chairman, president and chief executive
officer.  "Further, this joint venture advances Chemtura's
current strategy for growth in the Asia Pacific region.  We are
excited to have UP Chemical as a partner, and look forward to
years of success in our joint venture."

"UP Chemical can seize a great opportunity through the partnership
with Chemtura at a time when LED backlighting for LCD TVs has
grown explosively and highly efficient LED lighting will replace
traditional lighting in the coming years," said Dr. Hyun Koock
Shin, UP Chemical chief executive officer.  "The joint venture
will manufacture and deliver necessary metal organic precursors to
make this lighting revolution happen for a more energy-efficient,
greener world."

Chemtura Corporation and its subsidiaries, with 2009 sales of
$2.3 billion, together are a global manufacturer and marketer of
specialty chemicals, agrochemicals and pool, spa and home care
products, including 50 years of production excellence with
Chemtura Organometallics GmbH.  Additional information concerning
Chemtura is available at http://www.chemtura.com/

UP Chemical Co., Ltd., is the first developer and successful
supplier of atomic layer deposition precursors for DRAM chip
manufacturing.  It specializes in the research, development,
production, high-purity refinement and sale of metal organic
precursors, as well as other thin film deposition materials.
Additional information concerning UP Chemical is available at
www.upchem.co.kr

                       About Chemtura Corp.

Based in Middlebury, Connecticut, Chemtura Corporation (CEM) --
http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a
global manufacturer and marketer of specialty chemicals, crop
protection products, and pool, spa and home care products.
Chemtura Corporation and 26 of its U.S. affiliates filed voluntary
petitions for relief under Chapter 11 on March 18, 2009 (Bankr.
S.D.N.Y. Case No. 09-11233).  M. Natasha Labovitz, Esq., at
Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel.
Wolfblock LLP serves as the Debtors' special counsel.  The
Debtors' auditors and accountant are KPMG LLP; their investment
bankers are Lazard Freres & Co.; their strategic communications
advisors are Joele Frank, Wilkinson Brimmer Katcher; their
business advisors are Alvarez & Marsal LLC and Ray Dombrowski
serves as their chief restructuring officer; and their claims and
noticing agent is Kurtzman Carson Consultants LLC. As of

December 31, 2008, the Debtors had total assets of $3.06 billion
and total debts of $1.02 billion.

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


CLARKSON INVESTMENT: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Clarkson Investment, LLC
        1705 32nd Street
        Evans, CO 80620-3421

Bankruptcy Case No.: 10-32394

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       District of Colorado (Denver)

Judge: Howard R. Tallman

Debtor's Counsel: Philipp C. Theune, Esq.
                  1763 Franklin Street
                  Denver, CO 80218-1124
                  Tel: (303) 832-1150
                  Fax: (303) 845-6934
                  E-mail: ptheune@ptr-law.com

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

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

The Company did not file a list of creditors together with its
petition.

The petition was signed by David G. Clarkson, managing member.

Debtor-affiliate that filed separate Chapter 11 petition:

        Entity                        Case No.       Petition Date
        ------                        --------       -------------
David G. Clarkson                     09-13890            03/11/09


COLONIAL BANCGROUP: Court Rejects FDIC's $900 Million Claim
-----------------------------------------------------------
Patrick Fitzgerald, writing for The Wall Street Journal, reports
that Judge Dwight H. Williams Jr. of the U.S. Bankruptcy Court in
Montgomery, Ala., on Tuesday rejected the Federal Deposit
Insurance Corp.'s claim that it is owed more than $900 million
from Colonial BancGroup Inc., the former parent of Colonial Bank,
which was seized by banking regulators last year.

The Journal notes the FDIC had argued that the bank's former
parent owed it $909 million, an amount equal to the gap between
how much capital its banking subsidiary was required to have and
what it actually had on hand when it was seized by regulators in
August 2009.  The FDIC said Colonial's holding company in recent
years made numerous commitments to regulators to shore up the
bank's capital.

According the report, the judge held that the "unambiguous
language" of agreements between the parent and federal and state
bank regulators indicates the holding company "did not make a
commitment to maintain the capital of Colonial Bank."  Judge
Williams also ruled that, even had Colonial made such a
commitment, it wouldn't apply under bankruptcy law because it
couldn't be "assumed and cured" since the bank was no longer in
business.

"The court's denial of a priority claim asserted by the FDIC in an
amount just under $1 billion" along with its rejection of the
FDIC's bid "to convert the Chapter 11 case to Chapter 7 is quite a
significant ruling for bank-holding-company bankruptcy cases
throughout the country," said Colonial BancGroup's attorney C.
Edward Dobbs, Esq., at Atlanta's Parker, Hudson, Rainer & Dobbs,
according to the Journal.

The report says the FDIC declined to comment on whether it would
appeal the ruling.  "We are currently analyzing the opinion to
determine next steps," said Andrew Gray, a spokesman for the
agency.

                  About The Colonial BancGroup

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

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


COLOWYO COAL: Moody's Downgrades Ratings on Senior Bonds to 'B1'
----------------------------------------------------------------
Moody's Investors Service downgraded the rating of Colowyo Coal
Funding Corp (CC Funding) to B1 from Ba3.  The rating outlook is
stable.

                        Ratings Rationale

Downgrades:

Issuer: Colowyo Coal Funding Corp.

  -- Senior Secured Regular Bond/Debenture, Downgraded to B1 from
     Ba3

Outlook Actions:

Issuer: Colowyo Coal Funding Corp.

  -- Outlook, Changed To Stable From Negative

The rating action reflects Colowyo's large asset impairment charge
in 2009 and Rio Tinto's intent on closing Colowyo in 2018 after
expiration of the long-term contracts.  Colowyo Coal supplies its
coal to the Craig Station under long-term agreements and cash flow
under the offtake agreements service the bonds issued by CC
Funding.  Moody's views the large impairment charge and Rio
Tinto's intention to close the mine in 2018 as representing
Colowyo's fundamentally weak position and Colowyo's lack of
strategic fit within Rio Tinto especially since Rio Tinto has
divested or spun off through an initial public offering its other
US coal assets.  Ultimately, Moody's views these factors as
negatively affecting Rio Tinto's economic incentives to support
Colowyo Coal though Moody's expects Rio Tinto to continue to meet
its contractual obligations.  If Rio Tinto does not meet its
contractual obligations, CC Funding's ratings are likely to be
multiple notches lower.

The rating action also incorporates Moody's views that continued
draws on the debt service reserve are likely through bond maturity
and commensurate with the historical average draw rate of around
$900 thousand per year since September 2003.  Moody's notes that
there has not been a draw on the debt service reserve since the
major draws on the debt service reserve in 2008.

The B1 rating is supported by a debt service reserve equal to
approximately 10 months of debt service, offtake agreement with
Craig Station's owners and Rio Tinto's contractual obligations
including the requirement that CC Funding has 1 times forecasted
debt service coverage ratio.  The rating also considers Moody's
expectation that any draws on the debt service reserve is unlikely
to be replenished and the existence of broad force majeure
provisions under the offtake agreements.

The stable outlook reflects Moody's expectation that Rio Tinto
will meet its contractual obligations to Colowyo, that continued
draws on the debt service reserve commensurate with the historical
average are likely, and that CC Funding will incur actual debt
service coverage ratios marginally below 1 times.

The rating could be negatively affected if Colowyo incurs major
operating problems, if Colowyo incurs above average draws on its
debt service reserve or if Rio Tinto does not meet its contractual
obligations.

The rating could be positively affected if CC Funding is able to
sustain debt service coverage well above one times, replenish its
debt service reserve and Colowyo is able to improve its
fundamental economic position.

Colowyo Coal's rating were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of the issuer's core industry and the issuer's ratings are
believed to be comparable to those of other issuers of similar
credit risk.


CONTINENTAL AIRLINES: DOT Issues Route Transfer Exemption
---------------------------------------------------------
United Air Lines and Continental Airlines completed one of the
final steps in the regulatory process for the proposed merger. The
U.S. Department of Transportation on Monday issued a route
transfer exemption for United Airlines, Continental and
Continental Micronesia.

Under the law and DOT policy, when two air carriers holding
international route authority come under common ownership and
control, prior approval is required by DOT.

"We appreciate the thorough review by both the Department of
Transportation and the Department of Justice, and look forward to
the shareholder vote on September 17," said UAL CEO Glenn Tilton.

Some information DOT requires for a final determination, such as
the composition of the Board of Directors of the new, combined
company, will not be available until the merger closes.
Therefore, United and Continental requested the exemption that DOT
granted Monday.  This allows for the merger to close while the
carriers continue to provide updated information.  Final approval
for transfer of international certificates and all other economic
authority is expected in the months ahead.

On August 27, 2010, the Antitrust Division of the United States
Department of Justice completed their review and determined that
they have no objections to the carriers' merger.

As part of the review, United and Continental have agreed to the
transfer of slots and related assets to Southwest Airlines,
including 18 pairs of takeoff and landing slots at Newark.  "As
you know, we vigorously compete with Southwest throughout our
network. Since the slot pair transfer is expected to have minimal
impact on our combined route network, we are not changing the
previously announced synergy estimates," Mr. Tilton said last
week.

United and Continental will ask shareholders to approve the merger
at separate meetings scheduled for September 17.

                    About Continental Airlines

Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations.  Continental is a member of Star
Alliance.  Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.

In May 2010, Continental announced an agreement to merge with UAL
Corp.  The merger has not yet been completed.

In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified.  However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.

Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.

                       About UAL Corporation

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest air
carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts.  Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors.  Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006.  The
Company emerged from bankruptcy on Feb. 1, 2006.

Reorganized UAL Corp. carries a 'B3' corporate family and
probability of default ratings from Moody's, 'B-' long term
foreign issuer credit rating from Standard & Poor's, and 'CCC'
long term issuer default rating from Fitch.

At June 30, 2010, UAL had $20.134 billion in total assets against
total current liabilities of $8.573 billion, long-term debt of
$6.281 billion, long-term obligations under capital leases of
$1.01 billion, other liabilities and deferred credits of
$7.022 billion, and a stockholders' deficit of $2.756 billion.


CONTINENTAL AIRLINES: DOJ Review Done; Merger Expected Oct. 1
-------------------------------------------------------------
United Airlines and Continental Airlines said they have been
notified by the Antitrust Division of the United States Department
of Justice of the termination of its Hart-Scott-Rodino Act review
and the closing of its investigation of the airlines' pending
merger.

"We are pleased to have achieved this critical milestone and look
forward to our respective stockholders' votes next month,
following which we expect to be on track to close our merger by
October 1st," said Glenn Tilton, UAL Corporation chairman,
president and CEO. "The combination of United and Continental will
create a world class airline, which will deliver an industry
leading network for our customers and the communities we serve,
career opportunities for our people, and value and return for our
stockholders."

"The completion of DOJ's review is an important step on our
journey of creating the world's leading airline, benefiting our
customers, co-workers, communities and stockholders," said Jeff
Smisek, Continental's chairman, president and CEO.  "The DOJ's
decision permits us to clear one of the last regulatory hurdles to
closing our merger."

Continental and United also would like to acknowledge the efforts
of the United States Department of Transportation and the Federal
Aviation Administration as the companies work through the merger
process.  In addition, Continental and United remain engaged in
discussions with the state attorneys general who are reviewing the
merger, and hope to conclude those discussions expeditiously with
a positive outcome.

Continental and United announced an all-stock merger of equals on
May 3, 2010, and currently expect the transaction to close by
Oct. 1, 2010, subject to stockholder approvals and customary
closing conditions.  Both companies have scheduled special
stockholder meetings on Sept. 17, 2010, for approval of the
merger.

United and Continental received clearance from the European
Commission on the airlines' proposed merger in July, which
noted its investigation found the transaction would not raise
competitive concerns in Europe or on trans-Atlantic routes.

                    About Continental Airlines

Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations.  Continental is a member of Star
Alliance.  Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.

In May 2010, Continental announced an agreement to merge with UAL
Corp.  The merger has not yet been completed.

In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified.  However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.

Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.

                       About UAL Corporation

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest air
carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts.  Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors.  Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006.  The
Company emerged from bankruptcy on Feb. 1, 2006.

Reorganized UAL Corp. carries a 'B3' corporate family and
probability of default ratings from Moody's, 'B-' long term
foreign issuer credit rating from Standard & Poor's, and 'CCC'
long term issuer default rating from Fitch.

At June 30, 2010, UAL had $20.134 billion in total assets against
total current liabilities of $8.573 billion, long-term debt of
$6.281 billion, long-term obligations under capital leases of
$1.01 billion, other liabilities and deferred credits of
$7.022 billion, and a stockholders' deficit of $2.756 billion.


COVENANT INVESTMENTS: Case Summary & Creditors List
---------------------------------------------------
Debtor: Covenant Investments Inc.
        P.O. Box 11428
        Bozeman, MT 59719

Bankruptcy Case No.: 10-62105

Chapter 11 Petition Date: August 30, 2010

Court: U.S. Bankruptcy Court
       District of Montana (Butte)

Judge: Ralph B. Kirscher

Debtor's Counsel: James A. Patten, Esq.
                  The Fratt Building, Suite 300
                  2817 2nd Avenue N.
                  Billings, MT 59101
                  Tel: (406) 252-8500
                  Fax: (406) 294-9500
                  E-mail: japatten@ppbglaw.com

Scheduled Assets: $6,059,042

Estimated Debts: $18,304,947

A list of the Company's 15 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mtb10-62105.pdf

The petition was signed by Dewin Madill, president.


CROSSTOWN STOR-N-MORE: Sec. 341(a) Meeting Scheduled for Sept. 23
-----------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Crosstown
Stor-N-More Self Storage, LLC's creditors on September 23, 2010,
at 2:30 p.m.  The meeting will be held at Room 100-B, 501 East
Polk Street, (Timberlake Annex), Tampa, FL 33602.

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

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

Bradenton, Florida-based Crosstown Stor-N-More Self Storage, LLC,
filed for Chapter 11 protection on August 20, 2010 (Bankr. M.D.
Fla. Case No. 10-20055).  Alberto F. Gomez, Jr., Esq., at Morse &
Gomez, PA, assists the Debtor in its restructuring effort.  The
Debtor estimated assets at $10 million to $50 million and debts at
$1 million to $10 million in its Chapter 11 petition.


CROSSTOWN STOR-N-MORE: Taps Morse & Gomez as Bankruptcy Counsel
---------------------------------------------------------------
Crosstown Stor-N-More Self Storage, LLC, asks for authorization
from the U.S. Bankruptcy Court for the Middle District of Florida
to employ Morse & Gomez, P.A., as bankruptcy counsel.

M&G will, among other things:

     a. take necessary steps to investigate and pursue avoidance
        actions, if any;

     b. prepare motions, notices, pleadings, petitions, answers,
        orders, reports and other legal papers required in the
        Debtor's Chapter 11 case;

     c. assist the Debtor in taking legally appropriate steps to
        effectuate the continued operations of the Debtor; and

     d. perform other legal services for the Debtor which may be
        necessary herein.

M&G received a prepetition retainer of $30,000 paid by the Debtor.
Of the total amount received, $7,683.58 is related to
representation of the Debtor relating to potential work-out
settlement efforts.  The amount of $22,316.42 is the prepetition
bankruptcy retainer.  In addition, the Debtor will pay a
reasonable attorneys' fee which will be subject to approval by the
Court.

Alberto F. Gomez, Jr., Esq., at M&G, assures the Court that the
firm is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.

Bradenton, Florida-based Crosstown Stor-N-More Self Storage, LLC's
business consists of a self storage facility, an executive office
center and a car wash in Tampa, Florida.

Crosstown Stor-N-More filed for Chapter 11 protection on
August 20, 2010 (Bankr. M.D. Fla. Case No. 10-20055).  The Debtor
estimated its assets at $10 million to $50 million and debts at
$1 million to $10 million as of the Petition Date.


CUSTOM CABLE: Disputes Shareholders' Conspiracy Claim
-----------------------------------------------------
Dow Jones' DBR Small Cap reports that Custom Cable Industries Inc.
is fighting claims by its parent's shareholders that the company's
bankruptcy is part of an "elaborate conspiracy" by ComVest Capital
LLC to take control of the company.  The Company said that it
filed for bankruptcy earlier this year because it was in
"financial distress."  By the end of 2009, the Company had lost a
contract with a key customer and was struggling to operate
profitably amid a major economic recession.  According to DBR, the
Company said in court papers Monday that its revenues and
operating income fell, making it unable to service its debt.
Custom Cable ended up defaulting on its loan with ComVest.  As a
result, the firm filed a foreclosure proceeding.

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.


DOCTORS HOSPITAL: 7th Cir. Questions Solvency & Remoteness
----------------------------------------------------------
Addressing an issue of apparent first impression for the federal
appellate courts, WestLaw reports that the Seventh Circuit has
held that a bank, as the trustee for a securitized investment
pool, was an "initial transferee" of lease payments made by the
Chapter 11 debtor-hospital, for the purposes of 11 U.S.C.A. Sec.
550(a).  Although the bank had duties to the trust's
beneficiaries, that is, investors, concerning the application of
funds, the bank was the legal owner of the trust's assets and, as
such, remained the appropriate subject of a preference-avoidance
action.  The Court of Appeals noted that "lots" of decisions hold
that an entity that receives funds for use in paying down a loan,
or passing money to investors in a pool, is an "initial
transferee" even though the recipient is obliged by contract to
apply the funds according to a formula.  Paloian v. LaSalle Bank,
N.A., --- F.3d ----, 2010 WL 3363596 (7th Cir.).

This decisions affirms findings and conclusions in the lower
courts, 406 B.R. 299 (N.D. Ill.) (Pallmeyer, J.), 373 B.R. 53 and
360 B.R. 787 (Bankr. N.D. Ill.) (Schmetterer, J.), about LaSalle
being the initial transferee.

The Seventh Circuit says that if Doctors Hospital was solvent at
the time of the transfer, Trustee Paloian's recovery of the
payments will be a problem.  Accordingly, the appellate panel
tells the bankruptcy court to examine solvency.  The appellate
panel also tells the bankruptcy court that it needs to examine the
remoteness and separateness of the securitization facility.
"There is scarcely any evidence in this record that MMA Funding
even existed, except as a name that [some] lawyers put in some
documents," the Seventh Circuit says.

Doctors Hospital of Hyde Park, Inc., filed for Chapter 11
protection (Bankr. N.D. Ill. Case No. 00-11520) on April 17, 2000.
On April 15, 2002, Doctors Hospital filed a 28-count complaint
(Bankr. N.D. Ill. Adv. Pro. No. 02-00363) against a number of
individuals and entities.  Counts VIII, IX, and X of the complaint
assert claims against LaSalle Bank National Association, f/k/a
LaSalle National Bank, as trustee for certain asset
certificateholders of Asset Securitization Corporation Commercial
Mortgage Pass-Through Certificates, Series 1997, D5.  On April 22,
2004, Gus A. Paloian, Esq., at Seyfarth Shaw LLP in Chicago, was
appointed the Chapter 11 trustee for Doctors Hospital.  In its
claims against the Bank, Doctors Hospital sought:

   (A) to void as fraudulent transfers a guaranty and
       related security agreements that Doctors Hospital
       made in connection with a loan from the Bank's
       predecessor, Nomura Asset Capital Corporation, to
       Doctors Hospital's landlord; and

   (B) to void a lease held by the Bank as Nomura's
       assignee or to recover as fraudulent transfers
       payments of rent that Doctors Hospital had made to
       the Bank in excess of the property's fair market
       rental value.

Following a bench trial, the Bankruptcy Court, 360 B.R. 787,
entered a judgment in favor of the Chapter 11 trustee, and the
parties moved to alter or amend the judgment.  The Honorable Jack
B. Schmetterer, 373 B.R. 53, denied those motions, and both
parties appealed.

In the District Court, the Honorable Rebecca R. Pallmeyer affirmed
Judge Schmetterer's decisions, holding that:

   (1) the bankruptcy court did not clearly err in
       determining that the trust for holders of asset
       securitization corporation commercial mortgage
       pass-through certificates was the initial transferee
       of lease payments, for purpose of determining the
       trust's liability upon avoidance of payments as
       constructively fraudulent;

   (2) the bankruptcy court did not clearly err in
       determining that an affiliated corporation identified
       as the borrower on a prepetition loan collateralized
       by the debtor's receivables functioned as a special
       purpose entity;

   (3) an affiliated corporation was not an alter ego or
       instrumentality of the debtor;

   (4) the bankruptcy court did not clearly err in
       determining that, following a restructuring of cash
       flow whereby proceeds of a loan to the special
       purpose corporation were no longer available to the
       debtor until after some funds were deducted from a
       cash collateral account into which they were
       deposited and used by the trust to make rental
       payments on the debtor's lease, these rental payments
       no longer involved any "interest of the debtor in
       property";

   (5) the bankruptcy court did not clearly err in adopting
       opinions of the Chapter 11 debtor's experts and in
       concluding, for fraudulent transfer avoidance purposes,
       that the debtor was insolvent on and after date
       indicated by the experts;

   (6) the debtor's challenged prepetition payments were
       "rent," which the debtor could avoid as constructively
       fraudulent transfers to extent that they exceeded fair
       rental value of leased property; and

   (7) federal common law, rather than Illinois law, governs
       any award of prejudgment interest in any strong-arm
       proceeding to avoid transfers as constructively
       fraudulent under Illinois law; and

   (8) the bankruptcy court did not abuse its discretion in
       awarding prejudgment interest from the date of the
       transfers, rather than from date of filing of the
       debtor's avoidance complaint.

Gus A. Paloian, Esq., the Chapter 11 Trustee of Doctors Hospital
of Hyde Park, Inc., is represented by:

   Jeffrey L. Gansberg, Esq.
   John W. Costello, Esq.
   John E. Frey, Esq.
   Scott A. Semenek, Esq.
   Peter N. Moore, Esq.
   WILDMAN, HARROLD, ALLEN & DIXON, LLP
   225 West Wacker Drive, Suite 3000
   Chicago, IL 60606
   Tel: (312) 201-2000

and LaSalle National Bank and other Defendants are represented by:

   Adam P. Silverman, Esq.
   Howard L. Adelman, Esq.
   ADELMAN, GETTLEMAN, MERENS, BERISH & CARTER, LTD.
   53 West Jackson Boulevard, Suite 1050
   Chicago, IL 60604-3701
   Tel: (312) 435-1050

      - and -

   James M. Witz, Esq.
   Freeborn & Peters LLP
   311 South Wacker Drive, Suite 3000
   Chicago, IL 60606
   Tel: (312) 360-6000

      - and -

   Michael N. Ripani, Esq.
   Chuhak & Tecson PC
   30 South Wacker Drive, Suite 2600
   Chicago, IL 60606-7512
   Tel: (312) 444-9300

      - and -

   Robert D. Nachman, Esq.
   Dykema Gossett PLLC
   10 South Wacker Drive, Suite 2300
   Chicago, IL 60606
   Tel: (312) 876-1700

      - and -

   Jane B. McCullough, Esq.
   Kimberly M. Deshano, Esq.
   Nancy A. Peterman, Esq.
   Greenberg Traurig, LLP
   77 West Wacker Drive, Suite 3100
   Chicago, IL 60601
   Tel: (312) 456-8400

      - and -

   David T.B. Audley, Esq.
   Michael T. Benz, Esq.
   Richard A. Wohlleber, Esq.
   Chapman & Cutler
   111 West Monroe Street
   Chicago, IL 60603-4080
   Tel: (312) 845-3000

      - and -

   Michael D. Warner, Esq.
   Warner, Stevens & Doby LLP
   301 Commerce St.
   Fort Worth, TX 76102
   Tel: (817) 810-5250


FAFF INC: Case Summary & 10 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: FAFF, Inc.
          dba Downey Valero
          dba Downey Valero Pro Hand Car Wash
        10030 Lakewood Boulevard
        Downey, CA 90240

Bankruptcy Case No.: 10-46757

Chapter 11 Petition Date: August 30, 2010

Court: United States Bankruptcy Court
       Central District of California (Los Angeles)

Judge: Barry Russell

Debtor's Counsel: Raymond H. Aver, Esq.
                  LAW OFFICES OF RAYMOND H AVER APC
                  12424 Wilshire Blvd., Suite 720
                  Los Angeles, CA 90025
                  Tel: (310) 571-3511
                  Fax: (310) 571-3512
                  E-mail: ray@averlaw.com

Estimated Assets: $100,001 to $500,000

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

A list of the Company's 10 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-46757.pdf

The petition was signed by Zineb Lahlou, president and secretary.

Debtor-affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
AR Properties Unlimited, LLC           10-42423    08/03/10


FENWICK AUTOMOTIVE: Obtains $1.9MM Investment From Motorcar Parts
-----------------------------------------------------------------
Motorcar Parts of America, Inc. has made a US$1,894,034 -- C$2.0
million -- strategic investment in Fenwick Automotive Products
Limited structured as a secured loan with an option to acquire
substantial ownership of the company.  The loan was made pursuant
to a debenture executed by Fenwick in favor of Motorcar Parts,
dated August 24, 2010.

The Loan will mature on the later of (i) October 21, 2010 and (ii)
July 31, 2012 -- provided that the indebtedness subject to the
agreement among Fenwick, Royal Bank of Canada and certain other
parties, dated July 6, 2010, as amended from time to time, is
fully renewed or replaced prior to the expiration of the deadline
in the agreement.

The Loan will accrue interest at a rate equal to the prime rate as
announced by the Wall Street Journal from time to time plus 8.75%
per annum -- which as of August 24, 2010 was equal to 12% -- such
interest is payable in cash quarterly in arrears beginning on
September 30, 2010.

Upon the occurrence of an event of default, Motorcar Parts may
declare all amounts due under the Debenture immediately due and
payable.  The Loan is secured by a blanket lien on all of
Fenwick's assets. FAPL Holdings, Inc., Fenwick's parent company,
and each of Fenwick's subsidiaries also granted Motorcar Parts a
blanket lien on all of their assets.

Motorcar Parts of America, Inc. -- http://www.motorcarparts.com/-
- is a remanufacturer of alternators and starters for imported and
domestic passenger vehicles, light trucks and heavy duty
applications.  Its products are sold to automotive retail outlets
and the professional repair market throughout the United States
and Canada.  The company's facilities are located in California,
Tennessee, Mexico, Malaysia and Singapore.

                     About Fenwick Automotive

Based in Toronto, Canada, Fenwick Automotive Products Limited --
http://www.fencoparts.com/-- is a manufacturer and distributor of
new and remanufactured aftermarket auto parts -- including
steering components (pumps, gears and racks), brake calipers,
master cylinders, hub assembly and bearings, clutches and clutch
hydraulics, constant velocity drive shafts, water pumps, control
arms and loaded struts for the full range of passenger and truck
vehicles in use in the markets it serves.  Its products are sold
through all major distribution channels of the automotive
aftermarket throughout the United States, Canada and Mexico.  The
company's facilities are located in Pennsylvania, New Hampshire,
Toronto and Mexico.

Fenwick is a party to a forbearance agreement dated as of July 6,
2010, with Royal Bank of Canada, as amended by the forbearance
amending agreement dated August 23, 2010.


FIBREK INC: S&P Affirms 'B-' Long-Term Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B-' long-
term corporate credit rating on Longueuil, Que.-based Fibrek Inc.
The outlook is positive.

At the same time, S&P withdrew the rating on Fibrek on the
company's request.


FRASER PAPERS: PBGC Assumes Underfunded Pension Plan
----------------------------------------------------
The Pension Benefit Guaranty Corporation has assumed
responsibility for the pension plan covering over 2,300 former
employees and retirees of bankrupt Fraser Papers Limited,
Madawaska, Me., a wholly owned U.S. subsidiary of Toronto-based
Fraser Papers Inc., also in bankruptcy.  The U.S. unit operated
pulp and paper mills in Maine and New Hampshire.

The PBGC stepped in because the underfunded pension plan would
have been abandoned after FPI, in liquidation, sold substantially
all operating assets to a group of creditors.  The transaction did
not include the pension plan.  Retirees under the plan will
continue to receive their monthly benefit payments without
interruption, and other workers will receive their pensions when
they are eligible to retire.  The plan was frozen for salaried
employees as of Oct. 31, 2009, and for bargaining unit employees
as of Apr. 28, 2010.

The Pension Plan for the Eligible Employees of Fraser Papers
Limited is 44% funded, with about $83 million in assets and $187
million in benefit liabilities, according to PBGC estimates. The
agency expects to cover about $99 million of the $104 million
shortfall, and will take over the assets and use insurance funds
to pay guaranteed benefits earned under the plan, which terminated
as of Apr. 28, 2010. The PBGC became trustee of the plan on Aug.
31, 2010.

Within the next several weeks, the PBGC will send trusteeship
notification letters to all plan participants. Under federal
pension law, the maximum guaranteed pension at age 65 for
participants in plans that terminate in 2010 is $54,000 per year.
The maximum guaranteed amount is lower for those who retire
earlier or elect survivor benefits.

Workers and retirees with questions may consult the PBGC Web site,
http://www.pbgc.gov/or call toll-free at 1-800-400-7242. TTY/TDD
users should call the federal relay service toll-free at 1-800-
877-8339 and ask for 800-400-7242.

Retirees of Fraser Papers Limited who draw a benefit from the PBGC
may be eligible for the federal Health Coverage Tax Credit.
Further information may be found on the PBGC Web site at
http://www.pbgc.gov/workers-retirees/benefits-
information/content/page13692.html

Assumption of the plan's unfunded liabilities will increase the
PBGC's claims by $98.6 million and was not previously included in
the agency's fiscal year 2009 financial statements.

The PBGC is a federal corporation created under the Employee
Retirement Income Security Act of 1974. It currently guarantees
payment of basic pension benefits earned by 44 million American
workers and retirees participating in over 29,000 private-sector
defined benefit pension plans. The agency receives no funds from
general tax revenues. Operations are financed largely by insurance
premiums paid by companies that sponsor pension plans and by
investment returns.

                        About Fraser Papers

Fraser Papers -- http://www.fraserpapers.com/-- is an integrated
specialty paper company that produces a broad range of specialty
packaging and printing papers.  The Company has operations in New
Brunswick, Maine, New Hampshire and Quebec.

On June 18, 2009, citing continued operating losses, weak markets
for pulp and lumber, impending debt repayments and significant
pension funding obligations, the Company and its subsidiaries
filed for protection under the Companies Creditors Arrangement Act
(Ont. Super. Ct. J. Ct. File No. CV-09-8241-00CL) in Toronto and
Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
09-12123).  Fraser is represented by Michael Barrack, Esq.,
Robert I. Thornton, Esq., and D.J. Miller, Esq., at
ThorntonGroutFinnigan LLP, in Toronto, and Derek C. Abbott, Esq.,
at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Del.
Fraser has said it is developing a restructuring plan to present
to its creditors by Oct. 16, 2009, with the objective of emerging
with a sustainable and profitable specialty papers business.

In July 2010, Fraser Papers disclosed that the Ontario Superior
Court of Justice has granted a further extension of the initial
Order under which Fraser Papers, together with its subsidiaries,
was granted creditor protection under the Companies' Creditors
Arrangement Act.  This extension is through October 29, 2010 and
was supported by PricewaterhouseCoopers Inc., the Court appointed
Monitor of the Company's CCAA process.


GARLOCK SEALING: Plan Filing Exclusivity Extended Until April 1
---------------------------------------------------------------
Garlock Sealing Technologies LLC and its debtor affiliates
received an April 1, 2011, extension of their exclusive period to
file a Chapter 11 plan.  They also received a May 31, 2011,
extension of the period to solicit acceptances of the plan.

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

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

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

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

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

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

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

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

                      About Garlock Sealing

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

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

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

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

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


GARLOCK SEALING: Time to Remove Civil Actions Extended to March 31
------------------------------------------------------------------
Garlock Sealing Technologies LLC and its debtor affiliates
received from Judge George R. Hodges of the U.S. Bankruptcy Court
for the Western District of Northern Carolina an extension of the
time within which they may file notices of removal of civil
actions and proceedings to March 31, 2011.

Section 1452 of Judiciary Procedures Code provides in pertinent
part that a party may remove any claim or cause of action in
a civil action other than a proceeding before the United States
Tax Court or a civil action by a governmental unit to enforce that
governmental unit's police or regulatory power, to the district
court if the district court has jurisdiction of the claim or cause
of action.

Rule 9027 of the Federal Rules of Bankruptcy Procedure provides
that if the claim or cause of action in a civil action is pending
when a case under the Bankruptcy Code is commenced, a notice of
removal may be filed only within the longest of (A) 90 days after
the order for relief in the case under the Bankruptcy Code, (B) 30
days after entry of an order terminating a stay, if the claim or
cause of action in a civil action has been stayed under Section
362 of the Bankruptcy Code, or (C) 30 days after a trustee
qualifies in a Chapter 11 reorganization case but not later than
180 days after the order for relief.

Rule 9006 of the Federal Rules of Bankruptcy Procedure permits the
Court to enlarge the period to remove actions provided by Rule
9027.

As of the Petition Date, Garlock had about 100,000 asbestos claims
pending against it.  The Debtors are also involved in other civil
trial matters and appeals.

For this reason, the Debtors seek an extension of the Removal
Period to avoid multiple filings seeking extensions of the
deadline with respect to suits where the stay is lifted at a later
date, and to ensure that if a deadline is set by operation of Rule
9027, that deadline be extended automatically by operation of the
prayed-for order until no earlier than the proposed March 31, 2011
deadline.

Jonathan C. Krisko, Esq., at Robinson Bradshaw & Hinson, P.A., in
Charlotte, North Carolina -- jkrisko@rbh.com -- tells the Court
that at this time, the Debtors have not had an adequate
opportunity to determine whether to remove any prepetition
actions, which may be subject to removal.  For one, he says, the
number of Prepetition Actions that may be subject to removal are
so numerous that they do not permit individual evaluation at this
time concerning whether removal would be beneficial to the Debtors
and their estates.  He further contends that many Prepetition
Actions are correlated with claims that will be the subject of
claims proceedings and common issue litigation.  Given the process
of claims and claims evaluation, objection, and litigation, it
would be premature to conclusively identify any specific
Prepetition Actions that should be removed, he says.

Until the Debtors are able to make an informed decision regarding
the advisability of removing any or all of the Prepetition
Actions, the Debtors believe that the most prudent and efficient
course of action is to extend the removal period until March 31,
2011, Mr. Krisko maintains.

                      About Garlock Sealing

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

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

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

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

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


GARLOCK SEALING: Wins January 3 Extension for Lease Decisions
-------------------------------------------------------------
Pursuant to Section 365(d)(4) of the Bankruptcy Code, Garlock
Sealing Technologies LLC and its debtor affiliates received from
Judge George R. Hodges of the U.S. Bankruptcy Court for the
Western District of North Carolina an extension of the period
within which they may assume or reject unexpired leases, through
and including January 3, 2011.

According to Section 365(d)(4)(A), unless a debtor assumes or
rejects an unexpired non-residential real property lease on or
before the earlier of (a) the date that is 120 days after entry of
the order for relief and (b) the date of the entry of an order
confirming a plan, that lease is deemed rejected under the
Bankruptcy Code.  However, the Court may, for cause shown, extend
the deadline for a period of 90 days.

The Debtors' deadline to assume or reject unexpired non-
residential real property leases is October 3, 2010.

The Debtors are party to several non-residential real property
leases, including:

  * A lease agreement between Garlock and Carson Portwall, LP;

  * Lease and leaseback agreements between Garlock and Wayne
    County Industrial Development Agency;

  * A lease for office building 215 Industrial Rd. between
    Garlock and Morgan Building & Spas, Inc.;

  * A five-year lease agreement with the option to purchase
    between Garlock and Jeff Cahoon; and

  * A lease for office headquarters between Garrison Litigation
    Management Group, Ltd., and 120 East Avenue, LLC.

Ashley K. Neal, Esq., at Rayburn Cooper & Durham, P.A., in
Charlotte, North Carolina, tells the Court that the Debtors will
not be unable to make a decision regarding the disposition of
certain of the Leases before October 3, 2010.  The Debtors have
been focused on early case issues like obtaining debtor-in-
possession financing, completing their schedules of assets and
liabilities and statements of financial affairs and communicating
with parties-in-interest, including the Official Committee of
Asbestos Personal Injury Claimants and the Official Committee of
Unsecured Creditors, she relates.

Consequently, the Debtors have not conducted a complete analysis
of the Leases and believe that additional time and analysis is
needed before they can determine whether certain of the Leases
should be assumed or rejected, Ms. Neal points out.  She also
assures the Court that none of the lessors to the Leases will
suffer unfair prejudice if the Lease Disposition Deadline is
extended, as proposed.  For these reasons, the Debtors believe
that their need to further analyze the Leases constitute "cause"
as set forth in Section 365(d)(4), she maintains.

                      About Garlock Sealing

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

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

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

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

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


GATEHOUSE MEDIA: Moody's Upgrades Default Rating to 'Caa3'
----------------------------------------------------------
Moody's Investors Service upgraded GateHouse Media Operating,
Inc.'s Probability of Default Rating to Caa3 and affirmed the
Corporate Family rating of Ca, reflecting Moody's view that with
no financial maintenance covenants unless there are revolver
advances, which are not possible given the company's current
leverage, the company is not likely to default on its $1.2 billion
term loan facilities in the next 12 months; however, Moody's still
anticipate default and significant restructuring over the
intermediate-term horizon.  Ratings on individual instruments
remain unchanged.  As the CFR already reflects a likely
restructuring, and the PDR considers Moody's view that default is
not imminent, the outlook was changed to stable.  Details of the
rating actions are:

Rating upgraded:

* Probability of Default rating -- to Caa3 from Ca

Unchanged Ratings (LGD's were updated to reflect current debt
structure):

* Senior secured revolving credit facility -- Ca, LGD4, 65% from
  LGD4, 57%

* Senior secured term loan B -- Ca, LGD4, 65% from LGD4, 57%

* Senior secured term loan C -- Ca, LGD4, 65% from LGD4, 57%

* Senior secured delayed draw term loan -- Ca, LGD4, 65% from
  LGD4, 57%

* Corporate Family rating -- Ca

Outlook Revision:

* The rating outlook has been revised to stable from negative.

                        Ratings Rationale

GateHouse's Ca Corporate Family Rating reflects Moody's view that
the company faces poor recovery prospects for debt holders in an
event of default scenario which is exacerbated by continued soft
demand for print advertising.  Moody's considers the company's
very highly-leveraged capital structure to be unsustainable.
Compounding a soft advertising environment and high leverage is a
constrained liquidity profile making the prospect of an
intermediate term balance sheet restructuring increasingly likely.
"The Caa3 Probability of Default Rating acknowledges that with no
financial maintenance covenants in the bank term loans (unless
there are revolver advances which is currently not the case),
Moody's do not anticipate the company defaulting on its $1.2
billion term loan facilities in the next 12 months; however,
Moody's still believe that it is likely to default over the
intermediate horizon," stated Carl Salas, Vice President at
Moody's Investors Service.

Recent declines in GateHouse's sales and EBITDA have pushed the
company's debt-to-EBITDA leverage above an 11 times multiple for
the LTM ended June 30, 2010 (including Moody's standard
adjustments).  Moody's expect the company will be able to reduce
its leverage only modestly over the near term.  Moody's recognizes
the success of GateHouse's initiatives to cut costs with full year
benefits to be realized in 2010.  For the 12 months ending
June 30, 2010, EBITDA margins of approximately 18.3% in 2009
(including Moody's standard adjustments) are up from 16.8% from
the 12 months ending December 2009.  Nonetheless, Moody's consider
that management may conclude that more fundamental measures,
including a distressed exchange or pre-packaged bankruptcy filing,
may represent the optimal solution to provide longer term
liquidity relief while addressing the company's untenable capital
structure.  If this does not occur, given the high debt load, it
is unlikely that the company will possess the ability to refinance
its debt at maturity in 2014.

GateHouse's sources of liquidity consist of cash on hand
($28 million as of June 30, 2010) plus cash generated from
operations.  Given that revolver advances require pro forma
compliance with a 6.5x total leverage ratio test (as defined), the
company is not able to request advances under its $20 million
revolving credit facility.  Therefore, the company relies on
balance sheet cash and internally generated cash flow to meet
near-term funding needs.  There is no scheduled amortization under
the term loans; however, the company is subject to a 50% excess
cash flow recapture provision and paid $2.5 million in March 2010
based on excess cash flow for FY2009.  The next recapture payment
would be in March 2011.  In August 2008, the company issued
$11.5 million of 10% preferred stock purchased entirely by FIF III
Liberty Holdings LLC, an affiliate of Fortress.  Over the next
five years, Fortress is able to put the preferred shares and
dividends (approximately $2.3 million) to GateHouse.  If Fortress
decides to put the shares to the company, liquidity would be
reduced by at least $13.8 million.  Under an amendment to its
credit agreement, Gatehouse is able to apply cash in excess of
$20 million towards non-pro rata term loan repurchases through a
modified Dutch auction through December 2011.  Moody's would view
purchases under this arrangement as a distressed exchange.

The stable outlook reflects Moody's view that, despite single
digit declines in revenue growth, GateHouse should be able to
generate sufficient EBITDA to fund working capital, interest
expense and capital spending over the next 12-18 months thereby
avoiding payment default.

A rating upgrade is unlikely in the intermediate-term given the
projected very high leverage absent a restructuring or robust
economic expansion which would materially grow revenues and
profits.  Ratings could be downgraded if the company announces
plans to effect debt reduction through a distressed exchange or a
similar capital restructuring with debt holders receiving less
than par value.  A downgrade would also be likely if EBITDA or
liquidity deteriorated to the point that the company could no
longer fund its operating needs or debt service.

The last rating action occurred on September 17, 2009, when
Moody's downgraded GateHouse Media Operating, Inc.'s Corporate
Family rating to Ca from Caa1 and its Probability of Default
rating to Ca from Caa2, GateHouse's Corporate Family rating to
Caa1.

With its headquarters in Fairport, New York, GateHouse Media
Operating, Inc., is one of the largest publishers of locally based
print and online media (newspaper and related publications) as
measured by the number of daily publications.  Fortress Investment
Group LLC and its affiliates beneficially own approximately 39.6%
of outstanding common stock and 10.5% of the outstanding credit
facility as of June 30, 2010.  The company recorded sales of
approximately $573 million for the twelve month period ended
June 30, 2010.  GateHouse publishes 87 daily newspapers, 261
weekly newspapers, 105 shoppers, and seven yellow page directories
in addition to operating over 270 locally focused websites.


GENERAL GROWTH: Proposes Brookfield Management Pact
---------------------------------------------------
General Growth Properties, Inc., and its debtor affiliates seek
the Court's permission to enter into a management services
agreement with Brookfield Advisors LP, an affiliate of Brookfield
Asset Management, Inc.

In conjunction with the filing of its Third Amended Joint Plan of
Reorganization and related Disclosure Statement, GGP is focusing
its efforts on creating a framework to ensure the success of its
business after consummation of the Plan, Sylvia A. Mayer, Esq., at
Weil, Gotshal & Manges LLP, in New York, tells the Court.  A
significant portion of those efforts will be devoted to the
formation and initial operation of Spinco, Inc., a new public
company that will be spun off from GGP upon its emergence pursuant
to the 3rd Amended Plan and Investment Agreements, she notes.

Spinco requires, among other things, an appropriately qualified
management team to guide Spinco through its initial formation and
implementation, and to position Spinco to capitalize on its long-
term business and operational strategies, Ms. Mayer points out.
Against this backdrop, GGP decided to engage another entity to
provide a complete management team to direct Spinco on an interim
basis.  Specifically, GGP selected Brookfield Advisors as the
best qualified and incentivized team to manage Spinco on an
interim basis.

The Management Services Agreement provides that Brookfield
Advisors will manage the initial operations of Spinco and guide
Spinco through the necessary processes that accompany the
creation and development of a new public company.  Under the
agreement, Brookfield Advisors will:

  (a) provide services as are reasonably necessary to
      accomplish the spinoff;

  (b) provide overall strategic advice in relation to the
      business, including oversight of detailed asset plans for
      each of Spinco's material assets;

  (c) make recommendations for the development of projects,
      establishment of joint ventures, sales, or other similar
      transactions and overseeing the execution of those
      transactions;

  (d) oversee the preparation and implementation of an annual
      business plan, including an annual capital expenditure
      plan and overseeing the preparation and implementation
      of other strategic or long term plans as required for
      Spinco;

  (e) make recommendations concerning current and future
      financing requirements of Spinco and overseeing financing;

  (f) make recommendations concerning potential acquisitions
      or corporate transactions and overseeing the execution of
      those transactions;

  (g) make available qualified individuals to act as senior
      executives of Spinco;

  (h) oversee corporate functions, including accounting and
      management reporting, information systems, tax preparation
      and other corporate functions, to be provided on a
      transitional basis by certain subsidiaries of GGP
      following the Spinoff, and developing and overseeing
      implementation of a long term plan for those functions
      following termination of the Management Services
      Agreement;

  (i) advise and assist Spinco to establish, maintain and
      implement appropriate policies and procedures designed to
      ensure compliance with:

      -- the requirements of securities and other laws,
         including the Sarbanes-Oxley Act, or any permits and
         other obligations imposed by any governmental authority
         affecting Spinco;

      -- the annual business plan; and

      -- any other obligations by which Spinco is bound;

  (j) advise and assist with regard to the community and
      investor relations of Spinco; and

  (k) advise and assist with respect to the listing of
      Spinco's common stock on a national securities exchange.

Brookfield Advisors will make available qualified persons to
serve in Spinco's interim management, namely:

* Chief Executive Officer: David Arthur
* Chief Financial Officer: Rael Diamond
* Chief Operating Officer: Steven Ganeless
* Chief Development Officer: Ashley Lawrence
* Executive Vice President - Master Planned Communities: David
   Harvie
* General Counsel: Karen Ayre

GGP believes that a strong interim management team will provide
Spinco with the essential tools to successfully navigate its
initial operations while developing and implementing a long-term
business plan and establishing long-term management arrangements,
Ms. Mayer asserts.  Brookfield and its affiliates have extensive
experience in real estate development, including the master
planned community business, which will comprise a significant
portion of Spinco's real estate assets, she stresses.  More
importantly, Brookfield and its affiliates have a dedicated
interest in forging Spinco into a long-term successful company,
given that REP Investments LLC, an affiliate of Brookfield, is a
significant investor and a sponsor of GGP's Plan, she points out.

To ensure that the requisite steps to create Spinco as a viable
public entity and to prepare for a successful launch of Spinco as
a separate company pursuant to the Spinoff, are completed in a
timely manner, GGP further asks the Court to waive the
requirements of 6004(h) of the Federal Rules of Bankruptcy
Procedure and direct that any order granting the relief requested
be effective immediately.

A full-text copy of the Management Services Agreement is available
for free at http://bankrupt.com/misc/ggp_BrookfieldMgtPact.pdf

The Court will consider the Debtors' request on September 23,
2010.  Objections are due September 17.

                       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: Spinco Registers Common Stock
---------------------------------------------
General Growth Properties, Inc.'s subsidiary, Spinco, Inc., filed
on August 24, 2010, a registration statement on Form 10 with the
U.S. Securities and Exchange Commission to register its common
stock under Section 12 (b) of the Securities and Exchange Act of
1934.

As contemplated by GGP's Third Amended Joint Plan of
Reorganization, Spinco is the newly-formed public real estate
company that will specialize in the development of master planned
communities and other strategic real estate development
opportunities.

Pursuant to the 3rd Amended Plan, about 32.5 million shares of
common stock of Spinco will be distributed to the common and
preferred unit holders of GGP Limited Partnership, which includes
GGP, and then GGP will distribute its portion of shares pro rata
to holders of GGP common stock and REP Investments LLC, Fairholme
Capital Management and Pershing Square Capital under the
Investment Agreements will purchase $250 million shares of Spinco
common stock at $47.619048 per share, GGP President and Chief
Operating Officer Thomas Nolan, Jr., relates.

On the Effective Date, there will be about 37.75 million shares
of Spinco outstanding common stock, as well as warrants to
purchase up to 8,000,000 shares of Spinco common stock and
507,307 shares of Spinco common stock issuable upon the exercise
of the Spinco options, Mr. Nolan relates.  Of the 37.75 million
shares of Spinco common stock, an unknown aggregate of shares
will be freely tradable without restriction in the public market
unless the shares are held by "affiliates," as that term is
defined in Rule 144(a)(1) under the Securities Act of 1933, he
says.  The remaining shares outstanding will be "restricted
securities" under the Securities Act of 1933 and may be sold in
the public market upon the expiration of the holding periods
under Rule 144, subject to the volume, manner of sale and other
limitations of Rule 144, as applicable, he adds.

The share price for Spinco common stock has been adjusted from the
originally contemplated per share purchase price to net the fees
associated with the eliminated Spinco rights offering and to
reflect a reduction in the number of shares of Spinco common stock
that will be issued for the same aggregate consideration on the
effective date of the 3rd Amended Plan, Mr. Nolan explains.  More
importantly, substantially all of Spinco's common stock will be
distributed to the holders of GGP's common stock and GGP will not
retain any ownership of Spinco, he points out.

Mr. Nolan adds that Spinco issued 1,000 shares to GGPLP, its
parent company on July 1, 2010.  Spinco intends to file an
application to list its common stock on the New York Stock
Exchange.

A full-text copy of the Form 10 is available for free
at http://ResearchArchives.com/t/s?6a55

                       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: To Present Plan for Confirmation on Oct. 21
-----------------------------------------------------------
Judge Allan L. Gropper of the U.S. Bankruptcy Court for the
Southern District of New York entered on August 27, 2010, a formal
order approving the Disclosure Statement explaining the Third
Amended Joint Plan of Reorganization filed by General Growth
Properties, Inc., and 125 of its debtor affiliates.

Judge Gropper found that the Disclosure Statement contains
adequate information within the meaning of Section 1125 of the
Bankruptcy Code.

A full-text copy of the August 27 Disclosure Order is available
for free at http://bankrupt.com/misc/ggp_Aug27DSOrder.pdf

Contemporaneous with the approval of the Disclosure Statement, the
Plan Debtors filed a Third Amended Plan to incorporate certain
modifications and dates governing the Plan's confirmation.

The 3rd Amended Plan provides that before the confirmation date,
the Plan Debtors and Eurohypo AG, New York Branch, as agent under
the 2006 Bank Loan Credit Agreement, will stipulate that:

  (i) the Allowed 2006 Bank Loan Revolver Claims and Allowed
      2006 Bank Loan Term Claims will each be calculated at an
      amount equal to (a) principal plus (b) accrued interest at
      the non-default rate based on the dates the 2006 Bank Loan
      converted from LIBOR based to prime based rates, plus (c)
      compound interest calculated at the non-default rate; and

(ii) the per diem increases to each of these amounts if the
      Effective Date occurs after September 30, 2010.

The Plan Debtors estimate the Allowed 2006 Bank Loan Revolver
Claims to be $620,104,091, and the Allowed 2006 Bank Loan Term
Claims to be $2,091,057,035.

If the parties are not able to finalize those estimated figures
and stipulate to the uncontested components of the claims, those
amounts will be determined by the Court at the confirmation
hearing.  If all disputes between the parties have not previously
been resolved, the Plan Debtors will file with the Court
pleadings for a determination of the amounts, if any, that may
additionally be owing under the 2006 Bank Loan on account of
default rate interest, additional compound interest calculated at
the default rate and any additional amounts based on conversion
dates of the 2006 Bank Loan from LIBOR to the prime based rate,
Marcia L. Goldstein, Esq., at Weil, Gotshal & Manges LLP, in New
York, tells the Court.

Subject to specific disputes over the applicable rate conversion
date, a base rate of PRIME (3.25%) should be used to calculate
accrued interest in connection with the 2006 Bank Loan Claims,
because, pursuant to the 2006 Bank Loan Credit Agreement, the
LIBOR based loans automatically converted to loans accruing at
the prime rate as a result of prepetition payment defaults, Ms.
Goldstein points out.  Thus, estimate of accrued interest is
$130,476,306 as of September 30, 2010, she adds.

Ms. Goldstein reminds the Court that the 2006 Lenders contend
that they are entitled to (i) default rate interest totaling
$79,807,566, and (ii) compound interest of $3,266,019, as of
September 30, 2010.  While the Plan Debtors do not dispute that
the Allowed Claim of the 2006 Lenders includes compound interest,
they are still reviewing the appropriate calculations, she
explains.  In addition, the 2006 Lenders have advised that the
certain fees are associated with the 2006 Bank Loan Claims:
(a) $437,500 in agency fees, (b) $2,870,833 in facility fees, and
(c) $15,500,000 in professional fees with all figures estimated
and as of September 30, 2010, she discloses.  For the avoidance of
doubt, the Distribution Record Date will not apply to the Note
Claims or the 2006 Bank Loan Claims, she notes.

Pursuant to the 3rd Amended Plan, the aggregate distribution to
holders of Allowed Hughes Heirs Obligations will equal the value
of the Hughes Heirs Obligations as determined by the Court.  To
the extent that a note will be issued to satisfy the Hughes Heirs
Obligations, the terms of the Hughes Heirs Note, which will be
issued by Spinco, have not yet been determined and will be
subject to negotiation between the Plan Debtors and
representatives of the Hughes Heirs, Ms. Goldstein explains.  An
agreed-upon form of note, or, if no agreement is reached, a form
proposed by the Plan Debtors, will be included in the Plan
Supplement, she says.  Any dispute about the actual value of the
distribution on the Hughes Heirs Obligations will be heard at the
Confirmation Hearing, she adds.

According to the representatives of the Hughes Heirs, the Hughes
Heirs Obligations are debts and that the Hughes Heirs thus should
be treated under the Plan as holders of Claims.  The Plan
Debtors' position is that the Hughes Heirs Obligations are
contingent equity interests and the 3rd Amended Plan treats the
Hughes Heirs Obligations as Interests, Ms. Goldstein asserts.
The Court has not yet decided this dispute.  If the Court
concludes that the Hughes Heirs Obligations are Claims, the Plan
provides an alternate treatment, she notes.  Specifically,
holders of Allowed Hughes Heirs Obligations will receive whatever
treatment is necessary to render them unimpaired.

As to other modifications to claim classes, the DIP Loan Claims
will be allowed in the modified total amount of $401,833,333 as
of September 30, 2010.  The Plan Debtors will also pay the
reasonable and documented fees and expenses incurred by the
Replacement DIP Lender and Replacement DIP Agent and Arranger
that are contemplated to be paid by the Plan Debtors pursuant to
the Replacement DIP Credit Agreement, if applicable.  Class 4.5
Rouse 3.625% Note Claims will be allowed in the modified total
amount of $425,067,000.  Class 4.11 TRUPS Claims will be cured
and reinstated by payment in cash in the modified total amount of
$7,180,581.

The Official Committee of Unsecured Creditors and certain holders
of Rouse Notes previously assert that the option of REP
Investments LLC, Fairholme Capital Management and Pershing Square
Capital to tender Allowed Claims to offset their cash obligations
under the Investment Agreements results in intra-class
discrimination prohibited by Section 1123(a)(4) of the Bankruptcy
Code.  However, the Plan Debtors dispute this assertion.  If the
Court concludes the tender of Allowed Claims to satisfy the
Investors' obligations violates Section 1123(a)(4), and if no
other resolution is achieved, the Plan Debtors believe the Plan
still is confirmable due to the inclusion of alternate treatment
under Section 1124 for the affected classes.

In other modifications, the deadline to file objections by the
holder of an Allowed Claim to the cure, including the amounts
proposed to be paid of claims or interests is on October 7, 2010.

Full-text versions of the 3rd Amended Plan and Disclosure
Statement are available for free at:

  http://bankrupt.com/misc/ggp_Aug273rdAmDS.pdf
  http://bankrupt.com/misc/ggp_Aug273rdAmPlan.pdf

Blacklined versions of the 3rd Amended Plan and Disclosure
Statement are available for free at:

  http://bankrupt.com/misc/ggp_Aug273rdAmPlan_blacklined.pdf
  http://bankrupt.com/misc/ggp_Aug273rdAmDS_blacklined.pdf

Judge Gropper also formally approved the procedures with respect
to solicitation, voting and tabulation of votes on the Third
Amended Joint Plan of Reorganization.

The dates related to the solicitation, voting and confirmation
procedures with respect to the 3rd Amended Plan are:

  Voting Record Date                 August 19, 2010

  Solicitation Deadline              September 3, 2010, seven
                                     days after the date of
                                     entry of the Disclosure
                                     Statement order

  Voting and Elections Deadline      October 7, 2010

  Confirmation Objection Deadline    October 7, 2010

  Applicable Rate Notice Deadline    October 7, 2010

  Voting Certification Deadline      October 14, 2010

  Confirmation Reply Deadline        October 19, 2010

The record date for purposes of determining holders of interests
entitled to vote on the 3rd Amended Plan is August 19, 2010.  The
Plan Debtors will complete by no later than September 3, 2010, the
distribution by first class mail of the Solicitation Packages to
all known holders of Interests in Classes 4.17 and 4.23.

Judge Gropper approved the forms of ballots as appropriate for the
holders of each Class of Interests entitled under the 3rd Amended
Plan to vote on the 3rd Amended Plan.  Ballots need not be
provided to the holders of Claims against or Interests in Classes
4.1 through 4.15 and Classes 4.18 through 4.22 because they are
unimpaired and are conclusively presumed to accept the 3rd Amended
Plan.  Ballots also need not be provided to the holders of Claims
in Class 4.16, because although impaired, they are deemed to have
consented to the 3rd Amended Plan in accordance with the Modified
Loan Documents executed in connection with the Confirmed Plans of
Reorganization.

The election forms also, among other things, are tailored for each
Class entitled to elect between certain alternate treatments as
set forth in the 3rd Amended Plan, Judge Gropper said.  The
procedures for providing notice of non-voting status to holders of
Claims against and Interests in Classes 4.1 through 4.16 and 4.18
through 4.22 with respect to the Plan Debtors are adequate and
sufficient, Judge Gropper added.

To be counted as a vote on the 3rd Amended Plan, each Ballot and
Election Form should be received on or before October 7, 2010.

The Plan Debtors' Confirmation Hearing will be held at 10:00 a.m.
on October 21, 2010.  Any objections to the Plan must be received
no later than October 7, 2010.  Replies, or an omnibus reply, to
any Confirmation Objections will be filed no later than
October 19, 2010.

The Plan Debtors will file and serve a Plan Supplement no later
than seven days before the Voting and Elections Deadline.

                       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: Old GM Files Joint Chapter 11 Plan
--------------------------------------------------
Motors Liquidation Company, formerly General Motors Corporation;
MLC of Harlem, Inc.; MLCS, LLC; MLCS Distribution Corporation;
Remediation and Liability Management Company, Inc.; and
Environmental Corporate Remediation Company, Inc., delivered to
Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern
District of New York their Joint Chapter 11 Plan of Reorganization
and a Disclosure Statement explaining the Plan.

The Plan, filed August 31, provides a framework for the
environmental remediation of the remaining "Old GM" properties and
the distribution of "New GM" stock and warrants to unsecured
creditors.

"The focus of our small, lean team at MLC has been to work closely
with federal and local governments, regulatory bodies, local
communities and creditors to develop a plan that comprises
environmental remediation, asset liquidation and claims
resolution, all on a very large scale, and to do so in very short
period of time," said Al Koch, chief executive officer of MLC.
"We not only have been successful in doing that, but we have also
developed unique processes and approaches that could serve as
templates for other big bankruptcies in the future. In both
regards, what has been accomplished here is historic."

If the Plan is confirmed, substantially all of the Debtors' assets
and liabilities will be transferred to four trusts:

   (1) the Environmental Remediation Trust, or "ERT," that
       provides funds for the continuing environmental
       remediation of the Debtors' remaining properties;

   (2) the General Unsecured Creditors Trust, that will be
       responsible for resolving the outstanding claims of the
       Debtors' unsecured creditors and distributing the General
       Motors Company common stock and warrants owned by MLC to
       those unsecured creditors whose claims are allowed;

   (3) the Asbestos Trust that will handle both present and
       future asbestos-related claims against the Debtors; and

   (4) the Avoidance Action Trust that will deal with certain
       litigation-related claims of the Debtors.

MLC presently owns 10% of General Motors' common stock, plus
warrants that are exercisable for a further 15% of General Motors'
common stock on a fully diluted basis.  MLC will be issued up to
an additional 2% of General Motors' common stock if the final
estimated aggregate amount of the Debtors' unsecured claims
exceeds certain thresholds.

                 Environmental Remediation Trust

Mr. Koch described the ERT as one of the most significant
aspects of the Plan.  If the Plan is confirmed, the ERT will
make $536 million available to handle environmental-remediation
activities at the Debtors' remaining properties.

"A significant number of these properties are old industrial sites
that have a need for substantial environmental remediation," said
Ted Stenger, executive vice president of MLC.  "It is nearly
impossible to redevelop such properties for productive, job-
creating purposes unless environmental remediation is complete or
the buyer can be assured the funding and procedures exist to do
the remediation.  The Plan establishes a framework that will
provide this assurance."

The ERT's assets will consist of cash, the Debtors' remaining
unsold real properties, and the equipment that is located at those
properties.  The ERT, according to Mr. Stenger, differs from the
structure that has been used in some other large environmental
bankruptcies in that it provides an overall "national" remediation
solution backed up by significant funds, while also providing a
strong voice to the states involved in the process.  If the Plan
is confirmed, MLC anticipates that within a few years most of the
real properties transferred to the ERT will be sold to third
parties or otherwise prepared for redevelopment.  In this regard,
the Debtors have already received a number of expressions of
interest regarding properties and are presently in negotiations to
sell 17 properties, in addition to those already sold.

MLC anticipates that the majority of the environmental remediation
contemplated in the ERT should be completed or well underway
within five years, and that the ERT will have adequate funding to
complete further remediation activities like periodic site testing
and maintenance for up to 100 years.

               Additional Highlights Under the Plan

Additional key highlights of the Debtors' chapter 11 case to date
include:

   -- Management of more than 70,000 claims, totaling more than
      $275 billion, with more than $150 billion in claims already
      eliminated or resolved.

   -- Management of more than 900,000 contracts covering more
      than 65,000 business partners.

   -- Announced asset-sales activities that include the sale of
      the Debtors' Wilmington (Del.) Assembly to Fisker
      Automotive Inc. (for the production of hybrid electric
      cars); the sale of Pontiac (Mich.) Centerpoint to Raleigh
      Studios Inc. (for the creation of a movie studio); and an
      agreement, subject to certain conditions, to sell
      Strasbourg (France) Powertrain to General Motors (which is
      expected to save 1,200 jobs).

   -- The establishment of a Web portal to facilitate
      communication with interested parties, which has had almost
      32 million hits to date.

         Debtors Target Emergence at 1st Quarter of 2011

The Debtors are presently targeting the first quarter of 2011 for
the confirmation of the Plan and expect that the majority of the
Debtors' unsecured claims will be resolved within the first two
years after the Plan is confirmed.

                       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)


GEOKINETICS HOLDINGS: Moody's Cuts Corp. Family Rating to 'B3'
--------------------------------------------------------------
Moody's Investors Service downgraded Geokinetics Holdings, Inc.'s
Corporate Family Rating to B3 from B2 and its $300 million senior
secured notes to B3 from B2.  The CFR and notes rating have been
placed under review for possible further downgrade.  Moody's also
assigned a SGL-4 Speculative Grade Liquidity rating.

                        Ratings Rationale

"The downgrade to B3 is driven by Geokinetics' higher than
expected revenues volatility in international markets and
consequently weaker leverage metrics," commented Pete Speer,
Moody's Vice-President.  "The review of the ratings for further
downgrade highlights the company's potential covenant violations
at the end of the third quarter and tight liquidity."

Geokinetics' earnings and cash flows in the first half of 2010
have fallen well below management's forecasts when Moody's
assigned the ratings in December 2009.  While the company's
acquisition of the onshore business of Petroleum Geo-Services ASA
(PGS) has yielded additional revenues in North America, revenues
from international markets have declined 39% compared to the first
six months of 2009.  The company has reported sequential increases
in backlog that point to increasing revenues in the second half of
this year and in early 2011.  However, even if the earnings
improvement is achieved Moody's believe the company's leverage
metrics will only improve to levels consistent with a B3 CFR.

The SGL-4 rating reflects the likelihood that the company will not
comply with its debt covenants at September 30, 2010, and will
require a waiver from its banks.  Effective June 30, 2010,
Geokinetics and its banks agreed to amend its revolving credit
facility, modifying the covenants as of June 30 and September 30,
2010, and reducing the facility size to $40 million from
$50 million.  The company now expects to not comply with the
amended September 30 debt covenants and is currently in
discussions to amend the facility again or obtain a waiver.

Geokinetics reported $41 million of cash and $9 million of
borrowings on its revolving credit facility at June 30, 2010.
While the company expects to have higher earnings in the second
half of this year, it also plans to make significant capital
expenditures and multi-client investments over that period.  In
order for Geokinetics to fund these investments and manage its
working capital requirements, Moody's believe that the company
needs continued access to its revolver to maintain adequate
liquidity.  The ratings review will focus on Geokinetics' progress
in obtaining the necessary amendment or waiver and the company's
third quarter trends in earnings and backlog.

Downgrades:

Issuer: Geokinetics Holdings, Inc.

* Probability of Default Rating, Downgraded to B3 from B2
* Corporate Family Rating, Downgraded to B3 from B2
* Senior Secured Regular Bond/Debenture, Downgraded to B3 from B2

Assignments:

Issuer: Geokinetics Holdings, Inc.

* Speculative Grade Liquidity Rating, Assigned SGL-4

Outlook Actions:

Issuer: Geokinetics Holdings, Inc.

* Outlook, Changed To Rating Under Review From Stable

Geokinetics Holdings, Inc., is headquartered in Houston, Texas,
and is a wholly owned subsidiary of Geokinetics Inc. The company
is a global provider of seismic data acquisition and seismic data
processing and interpretation services.


GEORGE HOUSER: Case Summary & 10 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: George Dalyn Houser
        139 Moran Lake Rd.
        Rome, GA 30161

Bankruptcy Case No.: 10-43407

Chapter 11 Petition Date: August 31, 2010

Court: United States Bankruptcy Court
       Northern District of Georgia (Rome)

Judge: Mary Grace Diehl

Debtor's Counsel: George D. Houser, Esq.
                  550 Hammond Drive, NE
                  Sandy Springs, GA 30328
                  Tel: (404) 228-3148
                  Fax: (404) 228-3188
                  E-mail: ghouser@forumgroup.org

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

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

Debtor's List of 10 Largest Unsecured Creditors:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
Tower Financial           Loan                   $600,000
Services, Inc.
c/o Keith J. Hoffman
1000 Parkwood Circle,
Suite 530
Atlanta, GA 30339

Medical Arts              Judgment               $500,000
c/o Lisa K. Rose Esq.
McCalla Raymer, LLC
6 Concourse Parkway
Suite 3200
Atlanta, GA 30328

Retirement Care           Judgment               $400,000
Associates, LLC
Sun Healthcare Group, Inc.
101 Sun Ave. Northeast
Albuquerque, NM 87109-4373

Holland & Knight          Legal Fees             $90,000

Sysco Foodservices, Inc.  Judgment               $72,000

Frankel and Associates,   Judgment               $50,000
LLP

Georgia Department of     Taxes                  $50,000

Loretta Terhune Estate    Judgment               $50,000
Revenue

The Kydd Group, Ltd.      Loan                   $27,000

Richard S. Rose, CPA      Accounting Fees        $8,000


GREAT ATLANTIC: Mulls Sale of Food Emporium Stores to Raise Cash
----------------------------------------------------------------
Dow Jones Newswires' Anjali Cordeiro and Paul Ziobro report that
Great Atlantic & Pacific Tea Co., operator of the struggling A&P
supermarket chain, is considering selling its Food Emporium stores
as part of a boarder effort to rid itself of some assets and boost
its liquidity, according to people familiar with the matter.

The report notes the supermarket operator has publicly said it
will consider the sale of "non-core assets" as it looks to improve
its liquidity after absorbing some big losses in recent months.
Food Emporium is the company's gourmet supermarket banner and one
of the more attractive chains it owns.

According to Dow Jones, Great Atlantic couldn't immediately be
reached for comment.  The company operates a little more than 400
stores under several brands including A&P, Waldbaum's, Pathmark,
Food Emporium and Food Basics.

As reported by the Troubled Company Reporter on August 20, 2010,
the Company said it will close 25 stores in five states as it
begins the implementation and execution phase of its comprehensive
turnaround.  The store closures are expected to be completed in
the Company's fiscal third quarter, which ends December 2010.

According to Dow Jones, one private equity investor said that in
recent weeks, investment bank Peter J. Solomon has made an effort
to gauge potential buyer interest in the Food Emporium chain for
A&P, although it wasn't immediately clear which other banks may be
involved.  Analysts estimate Food Emporium could fetch more than
$200 million in a sale.

According to Dow Jones, industry analysts say some private equity
firms that could be possible bidders are Angelo, Gordon & Co.,
which owns Kings Super Markets Inc., and Sterling Investment
Partners, owners of the Fairway Market grocery chain.

Representatives of Angelo, Gordon and Sterling Investment had no
comment.

                            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."


HSH DELAWARE: Sept. 17 Deadline to File Proofs of Claim
-------------------------------------------------------
A notice published in The Wall Street Journal this week directs
creditors holding claims against HSH Delaware GP LLC and its
debtor-affiliates that arose on or before Aug. 27, 2010 [sic.] to
file their proofs of claim by Sept. 17, 2010, with the Bankruptcy
Clerk in Wilmington, Del.  HSH Delaware and its debtor-affiliates
sought chapter 11 protection on Jan. 21, 2010; the Aug. 27 date
may be a typographical error.

                       About HSH Delaware

HSH Delaware GP LLC is based in Wilmington, Del.  Nine HSH
partnerships were created in 2006 to buy a 26% stake in
HSH Nordbank AG, the world's largest shipping financier, from
WestLB AG for about EUR1.25 billion ($1.76 billion).  The
partnerships received unsecured term and revolving loans of
EUR375 million from ABN AMRO bank to fund the purchase of HSH
Nordbank shares.

As reported by the Troubled Company Reporter on September 9, 2009,
creditors with claims aggregating $27.8 million petitioned (Bankr.
D. Del. Case No. 09-13145) to send affiliate HSH Delaware LP into
Chapter 7 liquidation.  Commerzbank AG, Lloyds TSB Bank Plc,
ABN Amro Bank NV, Calyon, Royal Bank of Scotland Plc and
Landsbanki Islands HF filed the involuntary Chapter 7 petition.

HSH Delaware filed for Chapter 11 bankruptcy protection on
(Bankr. D. Del. Case No. 10-10187) January 21, 2010.  The
Company estimated its assets and debts at $100 million to
$500 million at the time of the filing.

HSH Delaware's affiliates -- HSH Delaware L.P.; HSH Luxembourg
S.a.r.l.; HSH Luxembourg Coinvest S.a.r.l.; HSH Delaware GP LLC;
HSH Alberta I L.P.; HSH Alberta II L.P.; HSH Alberta V L.P.; HSH
Coinvest (Alberta) L.P.; JCF HSH (DE) GP LP; HSH Delaware L.P.;
HSH Luxembourg S.a.r.l.; and HSH Luxembourg Coinvest S.a.r.l. --
filed separate Chapter 11 petitions.

John Henry Knight, Esq.; Lee E. Kaufman, Esq.; Mark D. Collins,
Esq.; and Robert J. Stearn Jr., Esq., at Richards, Layton &
Finger, P.A., in Wilington, Del., assist the Debtors in their
restructuring effort.

The Debtors' Canadian Counsel is McCarthy Tetrault LLP.  The
Debtors' Chief Restructuring Officer is H. Ronald Weissman.


INN OF THE MOUNTAIN: Posts $243,900 Net Loss in June 30 Quarter
---------------------------------------------------------------
Inn of the Mountain Gods Resort and Casino filed its quarterly
report on Form 10-Q, reporting a net loss of $243,862 on
$26,566,284 of revenue for the three months ended June 30, 2010,
compared with a net loss of $3,169,361 on $26,725,902 of revenue
for the same period a year ago.

The Company's balance sheet at June 30, 2010, showed $199,626,334
in total assets, $234,953,388 in total liabilities, and a
stockholders' deficit of $35,327,054.

BDO Seidman, LLP, in Los Angeles, California, in August 2009,
after auditing the Company's fiscal 2009 results, said that the
Company has suffered recurring losses, negative cash flows, has
negative working capital, accumulated deficits, and negative
equity which raise substantial doubt about its ability to continue
as a going concern.

The Company said in its Form 10-Q that it has incurred significant
losses and did not generate sufficient cash to make the interest
payments on its 12% senior Notes due 2010 since November 15,
2008.  This non-payment of interest constitutes an event of
default under the Indenture governing the Notes.  The Company is
currently in discussions with certain of its debtholders regarding
these issues.

As of June 30, 2010, the Company had negative working capital of
approximately $240.1 million and a total deficit of approximately
$56.1 million.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6a96

                   About IMG Resort and Casino

Headquartered in Mescalero, New Mexico, Inn of the Mountain Gods
Resort and Casino and subsidiaries ("IMG Resort and Casino") is an
unincorporated business enterprise of the Mescalero Apache Tribe.
The Company was established April 30, 2003, and manages and owns
all resort, hotel and gaming enterprises of the Tribe including
the Inn of the Mountain Gods Resort and Casino (the "Resort"), a
gaming, hotel and resort complex opened on March 15, 2005, and its
wholly-owned subsidiaries.  The Resort, which opened for
commercial business on March 15, 2005, is located on tribal land
in Mescalero, New Mexico.


INNOVATIVE COMPANIES: Plan Confirmation Hearing Set for Sept. 28
----------------------------------------------------------------
The Hon. Dorothy T. Eisenberg of the U.S. Bankruptcy Court for the
Eastern District of New York will convene a hearing on
September 28, 2010, at 11:00 a.m., to consider confirmation of the
Plan of Reorganization proposed by The Innovative Companies LLC,
now known as OLD TIC LLC, and its affiliates.

The Court also fixed September 13 at 12:00 p.m. as the deadline
for filing ant objections to the Plan, and written ballots
accepting or rejecting the Plan.

As reported in the Troubled Company Reporter on August 12, the
Plan contemplates utilizing cash on hand well as the proceeds of
the various sales and other liquidations.  The Debtors will within
seven business days of the effective date effectuate these
transfers in order to provide for implementation and consummation
of the Plan:

   a) fund the initial payment of $375,000 pursuant to the
      Unsecured Creditor Distribution Agreement into the Unsecured
      Creditor Distribution Account to provide for the
      Distributions to the Unsecured Creditors;

   b) fund a payment in the amount of $190,000 representing the
      Plan Administrator Initial Account Funding into the Plan
      Administrator Operating Fund;

   c) transfer an amount into the Plan Administrator Reserve
      Account equal to the (i) sum of estimated Allowed
      Administrative Expense Claims; (ii) $250,000 to fund the
      Priority Claim Reserve to address the estimated Allowed
      Priority Claims; (iii) well as any payments that may become
      due from the Office of the United States Trustee; and (iv)
      an amount sufficient to cover any Secured Equipment Finance
      Claims which have not yet been Allowed;

   d) transfer any amounts to be paid to Allowed Secured Equipment
      Finance Claims pursuant to Article V of the Plan; and

   e) remit all remaining funds to Woodside on account of its
      Secured Claim.

After the foregoing transfers have been effectuated, the Plan
Administrator, on behalf of the liquidating estates, will make
payments due Claimants.

Holders of claims against, and interests in, OTIC will be treated
as follows:

      Class 1.  Secured Claims - on the effective date, each
         holder of the allowed claim will be paid until the time
         as claims is paid in full.

      Class 2.  Holders of Citibank Claim will receive no
         distribution.

      Class 3.  Holders of secured equipment finance claims will
         either have all legal and equitable rights left unaltered
         or will retain the collateral securing the claim.

      Class 4.  Holders of priority claims will receive cash equal
         to the amount of the allowed claim.  The estimated
         percentage recovery for this class is 100%.

      Class 5.  General unsecured creditors will share the cash
         deposited into the unsecured creditor distribution
         account, including a distribution soon as practicable
         after the effective date.  The estimated percentage
         recovery for this class is 3%.

      Class 6.  No property will be distributed to or retained by
         the holders of allowed equity interests on account of the
         interests.

A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/InnovativeCompanies_DS.pdf

                 About The Innovative Companies LLC

Headquartered in Hauppauge, New York, The Innovative Companies LLC
and its affiliates filed for Chapter 11 protection on April 17,
2009 (Bankr. E.D.N.Y. Lead Case No. 09-72669).  Leslie A. Berkoff,
Esq., at Moritt Hock Hamroff Horowitz LLP, represents the Debtors
in their restructuring efforts.  David M. Banker, Esq., at
Lowenstein Sandler PC, serves as counsel to the Official Committee
of Unsecured Creditors.  In its petition, the Company estimated
between $10 million and $50 million each in assets and debts.


J2H2, L.L.C.: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: J2H2, L.L.C.
        8135 E. Indian Bend Road, #101
        Scottsdale, AZ 85250

Bankruptcy Case No.: 10-27818

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       District of Arizona (Phoenix)

Judge: Randolph J. Haines

Debtor's Counsel: John J. Hebert, Esq.
                  POLSINELLI SHUGHART, P.C.
                  3636 N. Central Avenue, Suite 1200
                  Phoenix, AZ 85012
                  Tel: (602) 650-2011
                  Fax: (602) 391-2546
                  E-mail: jhebert@polsinelli.com

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

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

The Company did not file a list of creditors together with its
petition.

The petition was signed by John Bentley, president.


JAMES MCGOEY: Case Summary & 8 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: James E. McGoey
        1500 Park Avenue, Unit 211
        Emeryville, CA 94608

Bankruptcy Case No.: 10-70004

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       Northern District of California (Oakland)

Judge: Randall J. Newsome

Debtor's Counsel: Marc Voisenat, Esq.
                  1330 Broadway, #734
                  Oakland, CA 94612
                  Tel: (510) 272-9710
                  E-mail: voisenat@gmail.com

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

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

A list of the Debtor's eight largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/canb10-70004.pdf


JAPAN AIRLINES: No Objections to Restructuring Plan in Japan
------------------------------------------------------------
Eiji Katayama, as foreign representative to Japan Airlines
Corporation, Japan Airlines International Co., Ltd., and JAL
Capital Co., Ltd., filed a status report to update Judge James
Peck of the U.S. Bankruptcy Court for the Southern District of New
York of the Debtors' pending reorganization cases.

The Foreign Representative relates that since January 19, 2010, he
has progressed toward development of a comprehensive restructuring
plan to reorganize the Debtors' balance sheets and operations.

In addition, and in furtherance of the Debtors' restructuring
efforts, the Foreign Representative, with the approval of the
Tokyo District Court, established March 19, 2010, as the bar date
for submission of claims against the Debtors.  The Foreign
Representative was then required to admit or object to those
claims by May 28, 2010, and was entitled to an initial
investigation period regarding those claims running from May 31
through and including June 14.

On May 25, 2010, the Debtors announced that they anticipated
submitting their restructuring plan to the Tokyo District Court
and the Debtors' creditors by August 31.  Although Japan's
Corporate Reorganization Act permits corporate debtors as much as
one year to submit a restructuring plan, the Debtors originally
intended to file their restructuring plan by the end of June 2010.
The brief postponement until August 31 of submission of the plan
will enable the Debtors to more fully meet their restructuring
goals and return their businesses to profitability, the Foreign
Representative said.  Indeed, he noted, on June 5, 2010, the
Debtors announced that their consolidated financial forecast for
the fiscal year ending March 2011 anticipated a net operating
profit of JPY22 billion, or US$251 million, a dramatic turnaround
from the Debtors' challenging financial position at the
commencement of the Japan Proceeding.

From an operational perspective, the Debtors have undertaken other
critical restructuring activities subsequent to the Petition Date,
the Foreign Representative said.  On April 28, 2010, the Debtors
announced they would discontinue 45 unprofitable routes starting
September 30, 2010, to better streamline their operations.
Moreover, the Debtors have offered certain employees an early
retirement option, which approximately 3,500 employees accepted,
reducing the Debtors' future labor liabilities.  Finally, the
Debtors have made strides to dispose of certain non-core assets,
including their wholly owned hotel operating unit, which operates
58 hotels in Japan.  The Debtors believe that these and other
restructuring actions have and will continue to ensure the
ultimate success of their reorganization in the Japan Proceeding,
enabling the Debtors to emerge from bankruptcy as stronger,
healthier companies.

The Foreign Representative also related that the Debtors have
received no opposition from creditors to the restructuring
process.  Indeed, though creditors are permitted by Japanese law
to propose plans of reorganization, no creditors have taken that
step.  The Foreign Representative, however, said one shareholder
has submitted an unsolicited plan of reorganization but there is
great uncertainty as to whether the plan complies with applicable
law.

              Settlement of Antitrust Litigations

JALI and various other international airlines have been named as
defendants in a number of class action lawsuits involving
allegations of antitrust violations regarding air cargo
transportation and, separately, trans-pacific air passenger
transportation.  Plaintiffs in both sets of lawsuits allege price
fixing and other violations of Sherman Act Section 1, Section 1 of
Title 15 of the U.S. Code, and seek treble damages, attorneys'
fees, and costs of suit under Clayton Act Section 16, Section 26
of Title 15 of the U.S. Code.

The United States Judicial Panel on Multidistrict Litigation
consolidated and transferred the air cargo lawsuits to the United
States District Court for the Eastern District of New York (MDL
No. 177) and the trans-pacific air passenger lawsuits to the
Northern District of California (MDL No. 1913).

Proceedings in both the Cargo Litigation and the Passenger
Litigation are still in relatively early stages, the Foreign
Representative said.  In the Cargo Litigation, after the filing of
a First Consolidated Amended Complaint on February 8, 2007, all
defendants, including JALI, moved to dismiss the complaint on
various grounds.  On August 21, 2009, the MDL Court adopted a
magistrate judge's recommendations, among others, to dismiss
certain claims based on violations of competition laws of the
European Union and all claims by indirect purchasers, but
permitted claims under U.S. law by direct purchasers based on
transportation to, from, or within the United States, wherever
purchased, to proceed.  The indirect purchasers have appealed the
final dismissal of their claims.  Answers to the complaint were
filed on October 30, 2009, and discovery has commenced.

In the Passenger Litigation, plaintiffs filed a Consolidated Class
Action Complaint on August 6, 2009.  On September 22, 2009, the
MDL Court granted JALI an extension of time until March 15, 2010,
for JALI to respond.  On November 24, 2009, all defendants other
than JALI filed motions to dismiss claims against them on various
grounds.  The MDL Court has not yet ruled on those motions.
Discovery has commenced.

After commencement of the Japan Proceeding, JALI reached separate
agreements in principle with the plaintiffs in the Cargo and
Passenger Litigations to settle claims against JALI in those
matters, the Foreign Representative told the Bankruptcy Court.

On July 1, 2010, the Tokyo District Court authorized JALI to
settle the Cargo and Passenger Litigations.  JALI executed
separate settlement agreements with the plaintiffs in the
Passenger Litigation dated as of July 6 and in the Cargo
Litigation dated as of July 8.

The Cargo Settlement resolves all claims against JALI by direct
purchasers of air cargo transportation to, from, or in the United
States during the period January 1, 2000, through September 11,
2006.  The main terms of the Cargo Settlement are:

  * Plaintiffs agree to release JALI from all antitrust claims
    relating to direct purchases of air freight transportation
    services during the period of the case;

  * JALI agrees to pay $12 million into an escrow account, for
    subsequent distribution to qualified class members.  All
    attorneys' fees, litigation costs, and costs of notifying
    class members and distributing funds to them must come from
    this "all-in" payment; and

  * JALI agrees to cooperate with plaintiffs by providing
    certain documents and information.

On July 20, 2010, Plaintiffs filed a Motion for Preliminary
Approval of the Cargo Settlement.  JALI has transferred the agreed
$12 million by wire to the designated escrow account.

The Passenger Settlement resolves all claims against JALI by
purchasers of transpacific passenger transportation services
occurring between January 1, 2000, and February 1, 2010.  The main
terms of the passenger settlement are:

  * Plaintiffs agree to release JALI from all antitrust claims
    relating to purchases of transpacific passenger
    transportation services (excluding certain flights to or
    from Korea) during the period of the case;

  * JALI agrees to pay $10 million into an escrow account, for
    subsequent distribution to qualified class members, unless
    certain currently pending motions to dismiss are granted.
    If the motions are granted, then JAL will owe nothing.  All
    attorneys' fees, litigation costs, and costs of notifying
    class members and distributing funds to them must come from
    any "all-in" payment; and

  * JALI agrees to cooperate with plaintiffs by providing
    certain documents, as well as certain readily available
    electronic data, help securing testimony from certain
    employees, and up to a certain number of hours of time with
    JAL's attorneys to provide an overview of information
    available.

On July 21, 2010, Plaintiff and JALI jointly filed a Joint Notice
of Settlement of the Passenger Settlement.  The agreement is
contained in that filing.

As required by Rule 23(e) of the Federal Rule of Civil Procedure,
both the Cargo and the Passenger Settlement are subject to, and
the releases conditioned upon, approval of the settlements after
notice to and an opportunity for class members to opt out of the
settlements.  Furthermore, as required by the Class Action
Fairness Act of 2005, JALI will, at the appropriate time, provide
notice of the settlement to the Attorney General of the United
States, as well as the primary state regulatory or licensing
authority (or state attorney general, if no primary state
regulatory or licensing authority exists) for each state in which
a class member resides.

As set forth in the Court's Recognition Order, the Tokyo District
Court's July 1, 2010, approval of the Passenger Settlement and the
Cargo Settlement is given automatic recognition in the United
States upon approval of those settlements by the Tokyo District
Court, without the need for further petition to the Court.
Accordingly, the Foreign Representatives said the Debtors are not
seeking approval of either settlement from the Bankruptcy Court,
but have submitted the Status Report in the interest of keeping
the Court apprised of certain important events with regard to the
Debtors' restructuring efforts.

The Foreign Representative stated that it believes the settlements
will prove beneficial to the Debtors' restructuring process in the
Japan Proceeding.  Importantly, the settlement will enable the
Debtors and the Foreign Representative to devote their undivided
attention to development of a debt restructuring plan that they
ultimately intend to submit for approval to the Debtors' creditors
and the Tokyo District Court.  Moreover, monetization of an
otherwise uncertain liability helps to ensure finality as the
Debtors and the Foreign Representative continue the process of
resolving claims asserted against the estates.  In short, the
Tokyo District Court's authorization of these settlements benefits
the estate and creditors and aids the Debtors in their further
restructuring efforts, the Foreign Representative said.

                        About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services.  The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court.  The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.

Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198).  The Company estimated
debts at $28 billion.

Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News.  The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


JAPAN AIRLINES: Sells 90% Stake in JAL Sky Kansai Subsidiary
------------------------------------------------------------
The JAL Group said in a public statement dated August 11 that
Japan Airlines Corporation's subsidiary, Japan Airlines
International Co., Ltd., will sell 90.0% of its stake in JAL Sky
Kansai Co., Ltd., while another Group subsidiary JAL Ground
Service Co., Ltd., will sell 90.0% of its stake in both JAL Ground
Service Kansai Co., Ltd, and JAL Ground Support Kansai Co., Ltd.,
to Konoike Transport Co., Ltd. by way of a stock transfer
agreement.

According to the company statement, the JAL Group is striving to
achieve a swift and fundamental reform of the company in a short
period of time with the support of the Enterprise Turnaround
Initiative Corporation of Japan to maintain at the highest level
possible, the corporate value of the airline.

As part of those endeavors, JALI and JGS started to examine the
options of stock transfers of JKIX, JGSK and JGSX.  During this
process, the three companies received high appraisal for their
corporate value and future growth potential from Konoike
Transport, an Osaka-based company specializing in outsourcing and
logistical support services.  Consequently, JALI, JGS and Konoike
Transport entered into a stock transfer agreement whereby Konoike
Transport will acquire a percentage of stakes in JKIX, JGSK and
JGSX.

Of the 1,000 stocks owned by Japan Airlines International in JAL
Sky Kansai Co., Ltd., 900 stocks will be transferred to Konoike
Transport.

Of the 2,400 stocks owned by JAL Ground Service in JAL Ground
Support Kansai Co., Ltd., and 28,000 stocks in JAL Ground Service
Kansai Co., Ltd., 2,160 and 25,200 of stocks from the respective
subsidiaries will be transferred to Konoike Transport.

JAL Group intends to conclude the transfer negotiations by the end
of September.

                        About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services.  The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court.  The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.

Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198).  The Company estimated
debts at $28 billion.

Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News.  The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


JAPAN AIRLINES: Sells 79.6% Stake in Hotel Unit to Okura
--------------------------------------------------------
Japan Airlines Corp. sold a 79.6% stake in its hotel business
subsidiary to Hotel Okura Co.  The move, according to Dow Jones,
is in line with the air carrier's restructuring to focus on its
airline business.

JAL holds a 90.7% stake in JAL Hotels Co. through its wholly owned
subsidiary Japan Airlines International Co.  JAL will retain its
remaining 11.1% stake in JAL Hotels, which operates 40 hotels in
Japan and 18 hotels overseas, Dow Jones said.

The share transfer is slated to be finalized by the end of
September.

                        About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services.  The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court.  The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.

Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198).  The Company estimated
debts at $28 billion.

Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News.  The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


JOHN WOOD: Case Summary & 12 Largest Unsecured Creditors
--------------------------------------------------------
Joint Debtors: John N. Wood
               2430 Cliff Road
               Upland, CA 91784

               Holly N. Wood
               2408 Linda Lane
               Upland, CA 91784-1168

Bankruptcy Case No.: 10-37821

Chapter 11 Petition Date: August 30, 2010

Court: United States Bankruptcy Court
       Central District Of California (Riverside)

Judge: Meredith A. Jury

Debtor's Counsel: Stephen R. Wade, Esq.
                  THE LAW OFFICES OF STEPHEN R. WADE
                  400 N Mountain Ave., Suite 214B
                  Upland, CA 91786
                  Tel: (909) 985-6500
                  Fax: (909) 985-2865
                  E-mail: dp@srwadelaw.com

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

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

A list of the Joint Debtors' 12 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-37821.pdf


KAYE SANDFORD: Case Summary & 13 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Kaye Elizabeth Sandford
        40 Camino Vista Clara
        Galisteo, NM 87540-9743

Bankruptcy Case No.: 10-14424

Chapter 11 Petition Date: August 30, 2010

Court: U.S. Bankruptcy Court
       District of New Mexico (Albuquerque)

Debtor's Counsel: Edward Alexander Mazel, Esq.
                  ARLAND & ASSOCIATES, LLC
                  201 3rd Street NW, Suite 505
                  Albuquerque, NM 87102-3331
                  Tel: (505) 338-4057
                  Fax: (505) 338-4061
                  E-mail: emazel@thearlandlawfirm.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 13 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nmb10-14424.pdf


KENNETH ANDERSON: Files Schedules of Assets & Liabilities
---------------------------------------------------------
Kenneth Roderick Anderson has filed with the U.S. Bankruptcy Court
for the Eastern District of California its schedules of assets and
liabilities, disclosing:

  Name of Schedule                       Assets       Liabilities
  ----------------                       ------       -----------
A. Real Property                      $35,825,000
B. Personal Property                     $522,305
C. Property Claimed as
   Exempt
D. Creditors Holding
   Secured Claims                                      $5,792,985
E. Creditors Holding
   Unsecured Priority
   Claims                                                      $0
F. Creditors Holding
   Unsecured Non-priority
   Claims                                                $186,078
                                      -----------     -----------
      TOTAL                           $36,347,305      $5,979,064

Hurricane, Utah-based Kenneth Roderick Anderson -- dba Pah Tempe
Hot Springs Resort,Zion VRC Zip Tour LLC, The Roderick Family
Trust, and Kolob Mountain Ranch Resort -- filed for Chapter 11
protection on August 18, 2010 (Bankr. D. Utah Case No. 10-41789).
The case was subsequently transferred to California (Bankr. C.D.
Calif. Case No. 10-31252).

Helga A. White, Esq., who has an office in Auburn, California,
assists the Debtor in his restructuring effort.  According to his
schedules, the Debtor disclosed $36,297,305 in total assets and
$5,979,063 in total liabilities as of the petition date.


KENNETH ANDERSON: Secured Creditors Want Ch. 11 Case Dismissed
--------------------------------------------------------------
Secured creditors Dwendon M. Lee and Annette A. Lee -- Trustees of
The Lee Family Trust -- and John J. Lowney and Beatrice M. Lowney,
trustees of The Lowney Family Trust, ask the U.S. Bankruptcy Court
for the Eastern District of California to dismiss Kenneth Roderick
Anderson's Chapter 11 case.

The secured creditors claim that the Debtor filed his petition for
relief in an improper district, because the Debtor doesn't reside
in the Eastern District of California.  "The only colorable basis
for venue in the Eastern District of California is the Debtor's
contentions that the Debtor's principal assets are located in the
Eastern District of California."  The schedules filed by the
Debtor with the Court show that the Debtor's principal assets are
located in Utah and that his principal source of income is his
place of business in Utah.

The secured creditors say that the case should be transferred to
the U.S. Bankruptcy Court for the District of Utah.  According to
the secured creditors, the Debtor resides in Utah, the majority of
his creditors are located in Utah, and the majority of the
Debtor's real property assets are located in Utah.

The Debtor objects to the dismissal of his case, saying that he
filed for Chapter 11 protection in the Eastern District of
California because he owns real property, worth approximately
$2,800,000 in Placer County, his attorney is located in Placer
County, his long-time accountant John Roux is located in
Sacramento County and his adult son David Anderson, who helps the
Debtor in the management of the business, lives in San Francisco,
California.

The Debtor explains that he was unable to hire any Chapter 11
bankruptcy attorney in Utah because the attorneys he contacted in
Utah wanted a minimum up front retainer of $30,000, an amount that
Mr. Anderson couldn't and can't raise at this time.

The secured creditors are represented by Kronick, Moskovitz,
Tiedemann & Grirard.

Hurricane, Utah-based Kenneth Roderick Anderson -- dba Pah Tempe
Hot Springs Resort,Zion VRC Zip Tour LLC, The Roderick Family
Trust, and Kolob Mountain Ranch Resort -- filed for Chapter 11
protection on August 18, 2010 (Bankr. D. Utah Case No. 10-41789).
The case was subsequently transferred to California (Bankr. C.D.
Calif. Case No. 10-31252).

Helga A. White, Esq., who has an office in Auburn, California,
assists the Debtor in his restructuring effort.  According to his
schedules, the Debtor disclosed $36,297,305 in total assets and
$5,979,063 in total liabilities as of the petition date.


KEVIN CALLAHAN: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Kevin L. Callahan
               Joan E. Callahan
               12164 N. 120th Way
               Scottsdale, AZ 85259

Bankruptcy Case No.: 10-27772

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       District of Arizona (Phoenix)

Judge: George B. Nielsen, Jr.

Debtors' Counsel: Carolyn R. Tatkin, Esq.
                  THE FRUTKIN LAW FIRM PLC
                  Two Renaissance Square
                  40 N. Central Avenue, Suite 1400
                  Phoenix, AZ 85004
                  Tel: (480) 295-3470
                  Fax: (480) 295-3479
                  E-mail: tatkin@frutkinlaw.com

Scheduled Assets: $870,896

Scheduled Debts: $1,467,884

A list of the Joint Debtors'20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/azb10-27772.pdf


KOKOPELLI STORAGE: Case Summary & 10 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Kokopelli Storage, LLC
        4035 N. Bank Street
        Kingman, AZ 86401

Bankruptcy Case No.: 10-27617

Chapter 11 Petition Date: August 30, 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: $1,000,001 to $10,000,000

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

A list of the Company's 10 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/azb10-27617.pdf

The petition was signed by William Robertson and James Robertson,
members.


L-1 IDENTITY: S&P Retains CreditWatch Developing on 'B+' Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Stamford, Conn.-based L-1 Identity Solutions Inc., including the
'B+' corporate credit rating, remain on CreditWatch with
developing implications, where they were initially placed June 23,
2010.  Developing implications indicate that S&P could either
raise, lower, or affirm the ratings.

L-1 continues to evaluate strategic alternatives, which may
include a sale of all or part of the company's operations.  The
company had obtained relief under its covenants through Aug. 31,
2010, while contemplating a suitable transaction.  The company
announced that it has further amended its credit agreement such
that if it enters into a definitive agreement to sell the company
prior to Sept. 30, 2010, the amended covenant ratios will remain
in place through March 31, 2011.  If a definitive agreement is not
executed prior to Sept. 30, 2010, covenant ratios would revert to
pre-amendment levels.  Under that scenario, S&P expects the
company to refinance or further amend its covenants, as the pre-
amended covenant schedule is restrictive.

In resolving the CreditWatch listing, S&P will monitor the
progress of L-1's entering into a definitive agreement or the
execution of a refinancing.  Should the company sign an agreement
to be acquired prior to Sept. 30, 2010, S&P will evaluate the
creditworthiness of the buyer and their intent with respect to L-
1's debt.  If, as the Sept. 30 deadline approaches, there is no
announcement on the resolution of a strategic alternative, if a
pre-refinancing is not underway, or if the company does not report
that EBITDA has improved beyond current levels such that a
covenant breach would not be imminent if the credit agreement
reverts to pre-amendment levels, S&P would consider a downgrade,
likely by as much as two notches.


LARRY HEINRICH: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Joint Debtors: Larry Heinrich
                 dba Shape Shop
                     Custom Quality Ice
                     Larry's Lot
               Allison Heinrich
               1909 Taylor Road
               White Hall, AR 71602

Bankruptcy Case No.: 10-16295

Chapter 11 Petition Date: August 30, 2010

Court: United States Bankruptcy Court
       Eastern District of Arkansas (Pine Bluff)

Debtors' Counsel: Basil V. Hicks, Jr., Es.
                  P.O. Box 5670
                  N. Little Rock, AR 72119-5670
                  Tel: (501) 301-7700
                  Fax: (501) 301-7999
                  E-mail: basil.hicks@comcast.net

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

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

The Joint Debtors did not file a list of their largest unsecured
creditors together with their petition.


LEHMAN BROTHERS: Fogarazzo, et al., Want to Pursue Securities Suit
------------------------------------------------------------------
Lawrence Fogarazzo, Carolyn Fogarazzo, Steven L. Hopkins and Don
Engel are lead plaintiffs in a securities fraud action lawsuit
before the U.S. District Court for the Southern District of New
York, alleging that Lehman Brothers Holding Inc., Goldman Sachs &
Co. and Morgan Stanley & Co., Inc.:

  (i) misrepresented their true investment options regarding RSL
      Communications, Inc.; and

(ii) failed to disclose their quid pro quo schemes whereby they
      prepared their investment analyst reports to obtain
      investment banking business from companies being analyzed
      by the equity research division in order to receive tens
      of millions of dollars of investment banking proceeds from
      various offerings and transactions conducted on behalf of
      RSL.

As a result, LBHI, et al., are subject to potentially sizable
damages for their violations of the federal securities laws,
Curtis V. Trinko, Esq., at Law Offices of Curtis V. Trinko, LLP,
in New York -- ctrinko@trinko.com -- contends.  He contends that
Section 524(e) of the Bankruptcy Court permits a creditor to seek
recovery from any other entity which may be liable on behalf of
the Debtor.

By this motion, the Lead Plaintiffs ask the U.S. Bankruptcy Court
for the Southern District of New York to lift the automatic stay
to allow them to proceed against any and all insurance policies
of the Debtors for damages arising from the Securities Action.

Pursuant to a Primary Combined Financial Institutions
Comprehensive Crime and Professional Indemnity Policy issued by
Lloyd's of London, underwriters will pay on behalf of Lehman a
loss incurred as a result of any claim made against Lehman for a
wrongful act, Mr. Trinko asserts.  As alleged in their complaint,
as amended, the Lead Plaintiffs believe that Lehman is legally
liable, committed wrongful acts as defined in the Insurance
Policy.  He insists that the U.S. District Court found that the
Amended Complaint sufficiently alleged that the Defendants had
perpetrated a fraudulent scheme and otherwise misrepresented the
nature of their equity analyst reports on RSL during a class
period from April 30, 1999 to December 29, 2000.

                        About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

              International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


LEHMAN BROTHERS: LBI Trustee Wants Underwriting Fees Status Upheld
------------------------------------------------------------------
James W. Giddens, as trustee for the liquidation of the business
of Lehman Brothers Inc. under the Securities Investor Protection
Act of 1970, asks the Court to upload his determination of
certain claims for underwriting fees filed by Wachovia Capital
Markets, LLC, Wells Fargo Securities, LLC, and Banc of America
Securities LLC.

Wachovia Capital, Wells Fargo and Banc of America assert that LBI
owes it money corresponding to various types of fees and
commissions due under "Master Agreements Among Underwriters."
Accordingly, in January 2009, the Underwriting Claimants filed
these claims that arose from fees related to syndicated offering
under the MAAU:

        Wachovia Capital           $4,229,184
        Wells Fargo                $5,007,917
        Banc of America            $8,798,509

The SIPA Trustee subsequently issued, also in 2009, a
determination denying customer status of the Underwriting Claims
under SIPA and reclassifying the Claims as general creditor
claims in unspecified amounts.

The Underwriting Fee Claimants consequently objected to the SIPA
Trustee's determinations of the Underwriting Fee Claims.

David W. Wiltenburg, Esq., at Hughes Hubbard & Reed LLP, in New
York, asserts that the SIPA Trustee's determinations of the
Underwriting Fee Claims should be confirmed because the
Underwriting Fee Claimants are not customers under SIPA.
Instead, he notes, these sophisticated parties entered into
arm's-length business relationships with LBI, forming
underwriting "syndicates" for the purpose of distributing newly
issued securities to their respective customers, with rights and
duties regarding fees and similar payments to Syndicate Members
carefully defined by contract, he says.

This contractual relationship between LBI and members of
underwriting syndicates is far from the customer relationship
contemplated by SIPA, which depends on entrustment of property to
a broker-dealer's "securities account" for purposes of securities
Investment, Mr. Wiltenburg points out.  By contrast, he cites,
the Underwriting Fee Claimants maintained no "securities
accounts" with LBI -- as the SIPA definition of 'customer'
requires -- but are merely seeking to recover on LBI's unsecured
obligations to pay fees.

Equally misguided is the assertion of one claimant that a
"constructive trust" may be imposed to elevate its unsecured fee
claim into a claim for specific property, Mr. Wiltenburg
contends.   In fact, he elaborates, the governing contract
effectively disclaims any trust relationship or any structure
where specific funds could be traced by providing that LBI was
free to commingle any fees or other amounts due to the
Underwriting Fee Claimants with the its "general funds," and thus
had no obligation to segregate, set aside or hold funds in trust.

The SIPA Trustee also asks the Court to expunged the objections
asserted by the Underwriting Fee Claimants.

                     SIPC Supports Request

The Securities Investor Protection Corporation agrees with the
SIPA Trustee's determinations, and believes that the objections
of the Underwriting Fee Claimants should be overruled.

Representing the SIPC, Josephine Wang, Esq., in Washington, D.C.,
asserts that underwriting fees do not form the basis of a
protected "customer" claim.  The Underwriting Fee Claimants are
not public customers of LBI who are claiming securities or cash
as investors or traders, she asserts.

She adds that securities regulations treat underwriting fees as
non-customer obligations.

                        About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

              International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


LEHMAN BROTHERS: Wins OK of Transfer Agreement With Citibank
------------------------------------------------------------
Lehman Brothers Holdings Inc. and the SIPA trustee of Lehman
Brothers Inc. received court approval to approve a transfer
agreement with Citibank N.A.

The agreement authorizes the transfer of the residual interests
of LBHI, LBI and another subsidiary, Lehman Pass Through
Securities Inc., in real estate mortgage investment conduits.
The Lehman units currently hold about 1,600 residual interests in
REMICs.

Under the deal, LBHI agreed to pay $24 million to Citibank in
exchange for the bank's acquisition of the residual interests.
As the new owner of the assets, Citibank will assume the
obligation to pay the taxes on those assets accruing on or after
March 31, 2010, the effective date for the agreement.

A copy of the Transfer Agreement is available without charge
at http://bankrupt.com/misc/LBHI_CitiTransferAgreement.pdf

Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York,
says the acquisition by Citibank of those assets will relieve the
Lehman units of $119 million to $283 million in income tax, which
the companies are expected to incur within four years.

In connection with the deal, LBHI and the trustee also ask for
court approval to enter into an inter-estate agreement, dated
July 27, 2010, under which they agreed to a mechanism for sharing
responsibility between the company and LBI for the $24 million
payment.  About 70% of the $24 million will be allocated to LBI
with the remaining 30% divided between LBHI and LPTSI.

A copy of the Inter-Estate Agreement is available without charge
at http://bankrupt.com/misc/LBHI_CitiInterEstateAgreement.pdf

                        About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

              International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


LEHMAN BROTHERS: Wins OK to Acquire Loans Through LBREP JV
----------------------------------------------------------
Lehman Brothers Holdings Inc. sought and obtained a court ruling
authorizing an affiliate to purchase loans through a joint venture
with Luxembourg-based LBREP III Europe S.a.r.l. SICAR.

The loans comprise the senior debt in a residential project known
as "Sun and Moon," in which LBREP and LBHI own stake.  The
project consists of 634 residential units located in Marseille,
France.

The buyout is part of a deal that LBHI hammered out with LBREP to
get additional funding for the Sun and Moon project.  The deal
calls for the acquisition of the loans by Lehman Commercial Paper
Inc. from Lehman Brothers Bankhaus AG, which will then be
assigned to the joint venture to be owned 37.5% by LCPI and 62.5%
by LBREP.

The additional funding for the residential project will be in the
form of debt from LCPI and equity investment from LBHI and LBREP.
As much as EUR102.4 million is still needed to complete the
project, Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in
Houston, Texas, tells the Court.

Mr. Perez says the buyout would allow LCPI and LBHI to increase
their investments in the Sun and Moon project while also sharing
with LBREP in providing additional funding for the project.

"If LCPI purchased the [loans] alone, it would not have the
benefit of the additional funding from LBREP, and the Sun and
Moon project would not receive sufficient [funding] to meet its
current business plan," Mr. Perez says in court papers.

                        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)


LOGAN'S ROADHOUSE: Moody's Reviews 'B2' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service placed the all ratings of Logan's
Roadhouse Inc., including its B2 corporate family rating and Ba3
senior secured bank debt rating, under review for possible
downgrade.  The review follows the company's announcement on
August 30, 2010, that it has entered into a definitive merger
agreement to be acquired by an affiliate of Kelso & Company from
its current owners -- a consortium of private equity sponsors.

In Moody's opinion, the proposed transaction could result in
increased financial leverage.  The review will focus on both the
amount and terms of the debt employed in NewCo's capital
structure, and the financial and execution risks associated with
completing the acquisition.  Additionally, the review will
incorporate Moody's view of post-transaction business risks,
notably integration, governance and fiscal policies, as well as
the expected liquidity profile of NewCo.

These ratings were placed under review for possible downgrade:

* Corporate Family rating at B2

* Probability of Default rating at B2

* $30 million revolver maturing in 2011 at Ba3

* $138 million (approximately $133.2 million outstanding) term
  loan B maturing in 2012 at Ba3

The terms of the transaction were not disclosed and completion of
the transaction is subject to regulatory approval and customary
closing conditions.  In the event that the merger results in the
retirement of Logan's legacy debt, Moody's will likely confirm and
withdraw the affected ratings.

The last rating action was on March 25, 2010, when Moody's
affirmed all ratings and revised outlook to stable from negative.

Logan's Roadhouse, Inc., headquartered in Nashville, Tennessee,
operates 188 and franchises 26 traditional American roadhouse-
style steakhouses in 23 states across the country.  Company-owned
units are largely concentrated in the south and southeastern
United States with franchise locations in California and the
Carolinas.


LOGAN'S ROADHOUSE: S&P Affirms 'B-' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed all
existing ratings on Logan's Roadhouse Inc., including its 'B-'
corporate credit rating, following the company's announcement that
it reached a definitive agreement to be acquired by an affiliate
of Kelso & Company.  Concurrently S&P removed all ratings from
CreditWatch Positive where they were placed on June 7, 2010,
following the company's filing for a $200 million initial public
offering (IPO) of its common stock.  The outlook is stable.

"The ratings action follows Logan's announcement that it agreed to
be acquired by private equity firm Kelso & Company," said Standard
& Poor's credit analyst Mariola Borysiak.  The company previously
planned an IPO.  Although the buyout transaction may result in
weaker credit metrics, S&P believes that Logan's liquidity
position will remain adequate.

Logan's operating performance continued to stabilize during its
third quarter ended May 2, 2010.  Guest traffic and same store
sales turned positive, and for the 17th consecutive quarter
Logan's outpaced the casual dining industry average as measured by
Knapp-Track.  S&P believes that Logan's disciplined spending and
focus on cost cutting, coupled with lower commodity prices, led to
a 250 basis points margin expansion from the same period a year
ago.

Although the proposed transaction may result in weaker credit
metrics, S&P expects Logan's to maintain adequate liquidity
position.  S&P will review the ratings and outlook and reassess
Logan's business profile and its financial policy going forward
once S&P meets with the company's management.  A downgrade or
outlook revision to negative could be considered if the proposed
transaction results in much higher leverage that jeopardizes
Logan's adequate liquidity.  An upgrade is not likely given S&P's
expectation for higher debt levels resulting from the buyout by
Kelso.


MARIAN FORTIER: Case Summary & 7 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Marian L. Fortier
        19965 Ingomar Street
        Winnetka, CA 91306

Bankruptcy Case No.: 10-20971

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       Central District of California (San Fernando Valley)

Debtor's Counsel: James Studer, Esq.
                  1420 Los Angeles Avenue, Suite 203
                  Simi Valley, CA 93065
                  Tel: (805) 582-9191
                  Fax: (805) 830-0446
                  E-mail: jamesstuderesq@aol.com

Scheduled Assets: $1,751,251

Scheduled Debts: $2,359,378

A list of the Debtor's seven largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-20971.pdf


MAULDING DEVELOPMENT: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Maulding Development, LLC
        2005 Appleton Drive
        Springfield, IL 62711
        Tel: (217) 787-9226

Bankruptcy Case No.: 10-72715

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       Central District of Illinois (Springfield)

Judge: Mary P. Gorman

Debtor's Counsel: James R. Enlow, Esq.
                  2050 W. Iles Avenue, Suite G-1
                  Springfield, IL 62704
                  Tel: (217) 679-0683
                  Fax: (217) 726-8861
                  E-mail: jre@enlowlaw.net

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

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

The Company did not file a list of creditors together with its
petition.

The petition was signed by David Maulding, managing member.


METROFINANCIERA SAPI: Chapter 15 Case Summary
---------------------------------------------
Chapter 15 Petitioner: Jose Angel Amaro, as foreign representative

Chapter 15 Debtor: Metrofinanciera, S.A.P.I de C.V.,
                   S.F.O.M., E.N.R.
                   Padre Mier, 444 Pte Zona Centro
                   C.P. 640000 Monterey, N.L. Mexico

Chapter 15 Case No.: 10-20666

Type of Business: The Debtor is a subprime and construction lender
                  based in Mexico.

Chapter 15 Petition Date: August 30, 2010

Court: U.S. Bankruptcy Court
       Southern District of Texas (Corpus Christi)

Judge: Richard S. Schmidt

Petitioner's
Counsel:       Alan S. Gover, Esq.
               WHITE & CASE LLP
               1155 Avenue of the Americas
               New York, NY 10036
               Tel: (212) 819-8200

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

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

The Company did not file a list of creditors together with its
petition.


MICHAEL LABADIE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Joint Debtors: Michael Labadie
               Mary Michelle Morelli Labadie
                 aka Michele Labadie
               590 West Main, #130
               Santa Paula, CA 93060

Bankruptcy Case No.: 10-14486

Chapter 11 Petition Date: August 30, 2010

Court: U.S. Bankruptcy Court
       Central District of California (Santa Barbara)

Debtors' Counsel: Philip D. Dapeer, Esq.
                  PHILIP DAOEER, A LAW CORPORATION
                  2625 Townsgate Road, Suite 330
                  Westlake Village, CA 91361
                  Tel: (323) 954-9144
                  Fax: (323) 954-0457
                  E-mail: PhilipDapeer@AOL.com

Scheduled Assets: $3,454,385

Scheduled Debts: $1,193,071

A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nmb10-14424.pdf


MIG INC: Plan Confirmation Hearing Scheduled for September 28
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware will
convene a hearing on September 28, 2010 at 2:00 p.m., Eastern
Time, to consider the confirmation of MIG, Inc., fka Metromedia
International Group, Inc.'s Plan of Reorganization.  Any
objections, and written ballots accepting or rejecting the Plan
are due on September 23 at 5:00 p.m.

Ballots must be received by the Debtors' voting agent:

     Attn: MIG Bankruptcy Administration
     c/o THE GARDEN CITY GROUP, INC.
     5151 Blazer Parkway, Suite A
     Dublin, OH 43017
     Tel: (800) 327-3664

The material terms of the Plan include:

   -- The Debtor will be reorganized pursuant to the Plan,
      converted into a Delaware limited liability company and
      continue in operation.

   -- Allowed Other Class 1 Priority Claims will be paid in full
      in cash on the Distribution Date, unless otherwise agreed to
      by the Debtors and the holders of the claims.

   -- Holders of Allowed Class 2 Secured Workers' Compensation
      Obligations Claims will continue to receive cash payments in
      the ordinary course.

   -- Each holder of an Allowed Class 3 General Unsecured Claim
      will be paid in cash on the Distribution Date, 100% of the
      Allowed amount of its Class 3 Claim plus interest from
      the Petition Date to the Effective Date, in full, final and
      complete satisfaction, settlement, release, and discharge of
      the Allowed Class 3 Claim.

   -- Each holder of an Allowed Class 5 Claim will be entitled to
      receive, in full, final and complete satisfaction,
      settlement, release, and discharge of the Allowed Class 5
      Claim, their Pro Rata share of: (i) the New MIG Notes,
      (ii) the New Warrants; (iii) Beneficial Interests in the
      Class 5 Trust; (iv) the Excess Cash less Withheld Excess
      Cash; and (v) any Withheld Excess Cash.

A full-text copy of the Second Amended Disclosure Statement is
available for free at:

http://bankrupt.com/misc/Metromediainternational_2ndAmendedDS.pdf

                           About MIG Inc.

Based in Charlotte, North Carolina, MIG Inc. (PINK SHEETS: MTRM,
MTRMP) -- http://www.metromedia-group.com/-- through its wholly
owned subsidiaries, owns interests in several communications
businesses in the country of Georgia.  The Company's core
businesses include Magticom Ltd., a mobile telephony operator
located in Tbilisi, Georgia, Telecom Georgia, a long distance
telephony operator, and Telenet, which provides Internet access,
data communications, voice telephony and international access
services.

MIG, Inc., fka Metromedia International Group, Inc., filed for
Chapter 11 bankruptcy protection on June 18, 2009 (Bankr. D. Del.
Case No. 09-12118).  Scott D. Cousins, Esq., at Greenberg Traurig
LLP, assists the Company in its restructuring efforts.  Debevoise
& Plimpton LLP is the Company's special corporate counsel, while
Potter Anderson & Corroon LLP is the Company's special litigation
counsel.  The official committee of unsecured creditors of MIG,
Inc., has retained Baker & McKenzie LLP as its bankruptcy
counsel, nunc pro tunc to June 30, 2009.

In its petition, the Company estimated US$100 million to
US$500 million in assets and US$100 million to US$500 million in
debts.  In its formal schedules, the Company said it had assets of
$54,820,681 against debts of $210,183,657.


MORAN LAKE: Case Summary & 10 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Moran Lake Convalescent Center, LLC
        139 Moran Lake Road
        Rome, GA 30161

Bankruptcy Case No.: 10-43405

Chapter 11 Petition Date: August 31, 2010

Court: United States Bankruptcy Court
       Northern District of Georgia (Rome)

Judge: Mary Grace Diehl

Debtor's Counsel: George D. Houser, Esq.
                  550 Hammond Drive, NE
                  Sandy Springs, GA 30328
                  Tel: (404) 228-3148
                  Fax: (404) 228-3188
                  E-mail: ghouser@forumgroup.org

Scheduled Assets: $12,000,000

Scheduled Debts: $6,000,000

The petition was signed by George D. Houser, president of The
Guild, Inc., Debtor's manager.

Debtor's List of 10 Largest Unsecured Creditors:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
Tower Financial           Loan                   $600,000
Services, Inc.
c/o Keith J. Hoffman
1000 Parkwood Circle,
Suite 530
Atlanta, GA 30339

Medical Arts              Judgment               $500,000
c/o Lisa K. Rose Esq.
McCalla Raymer, LLC
6 Concourse Parkway
Suite 3200
Atlanta, GA 30328

Retirement Care           Judgment               $400,000
Associates, LLC
Sun Healthcare Group, Inc.
101 Sun Ave. Northeast
Albuquerque, NM 87109-4373

Holland & Knight          Legal Fees             $90,000

Sysco Foodservices, Inc.  Judgment               $72,000

Frankel and Associates,   Judgment               $50,000
LLP

Georgia Department of     Taxes                  $50,000

Loretta Terhune Estate    Judgment               $50,000
Revenue

The Kydd Group, Ltd.      Loan                   $27,000

Richard S. Rose, CPA      Accounting Fees        $8,000


NFLUX LLC: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: NFLUX, LLC
        2589 E 24th Street #4
        Yuma, AZ 85365

Bankruptcy Case No.: 10-27643

Chapter 11 Petition Date: August 30, 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

Scheduled Assets: $6,286,394

Scheduled Debts: $4,000,000

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

The petition was signed by Todd Burch, member.

Debtor-affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
Cactus West Developers, LLC            10-17298  06/02/10


NORTEL NETWORKS: Creditors Committee Down to Three Members
----------------------------------------------------------
Roberta DeAngelis, the Acting United States Trustee for Region 3,
informed the Bankruptcy Court that Arivana Inc. and Flextronics
Corporation resigned as members of the Official Committee of
Unsecured Creditors in the bankruptcy cases of Nortel Networks
Inc. and its debtor affiliates.

The three remaining members of the Creditors' Committee are:

  (1) The Bank of New York Mellon
      Attn: Martin Feig, V.P.
      101 Barcley Street-8 West
      New York, NY 10286
      Phone: 212-815-5383
      Fax: 732-667-4756

  (2) Pension Benefit Guaranty Corporation
      Attn: Jennifer Messina
      1200 K Street, N.W.
      Washington, DC 20005
      Phone: 202-326-4000 ex 3209
      Fax: 202-842-2643

  (3) Law Debenture Trust Company of New York
      Attn: Robert Bice II
      400 Madison Ave., 4th Floor
      New York, NY 10017
      Phone: 212-750-6474

                       About Nortel Networks

Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers.  The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.

The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164).  Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986.  The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England.  Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.

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


NORTEL NETWORKS: Has Settlement With Verizon
--------------------------------------------
Nortel Networks Inc. entered into a stipulation in a bid to
settle the motions it filed against Verizon Communications Inc.
and its affiliates.

NNI earlier filed a motion for an investigation of the Verizon
entities to determine the basis for their $11.2 million claim.
The Debtor also filed another motion to enforce the automatic
stay after the Verizon entities withheld the payment of over
$10.3 million to it in light of the parties' dispute over the
validity of the $11.2 million claim.

The stipulation, which the Court approved on August 24, 2010,
requires the Verizon entities to continue their payment to NNI.
It also prohibits the Verizon entities from withholding payment
on any additional invoices issued by NNI unless they are granted
relief from the automatic stay by the Court.

Any Verizon entity that claims to have a right of setoff or
recoupment is required to file a motion for determination of
whether it is entitled to assert that right.

In case the Court issues an order in favor of a Verizon entity,
NNI or any of its affiliated debtors is required to earmark up to
$15 million to make the necessary payment, pursuant to the
stipulation.

NNI has agreed to withdraw its motions in light of the Court-
approved stipulation.

A full-text copy of the NNI-Verizon stipulation is available for
free at http://bankrupt.com/misc/Nortel_StipulationVerizon.pdf

                      About Nortel Networks

Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers.  The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.

The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164).  Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986.  The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England.  Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.

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


NORTEL NETWORKS: Wins Ok for RLKS as Wind-Down Consultant
---------------------------------------------------------
Nortel Networks Inc. and its affiliated debtors sought and
obtained approval to employ RLKS Executive Solutions LLC as their
consultant effective July 9, 2010.

As consultant, RLKS will assist the Debtors in the wind down and
liquidation of their businesses and estates, which include the
maintenance and management of the Debtors' records.  The firm
will take direction from and report directly to John Ray, NNI's
principal officer.

The principals of RLKS are experienced and knowledgeable
regarding the handling of records during bankruptcy proceedings,
says the Debtors' lawyer, Alissa Gazze, Esq., at Morris Nichols
Arsht & Tunnell LLP, in Wilmington, Delaware.

The Debtors relate that they are highly confident in RLKS'
ability to effectively and efficiently assist them in the tasks
at hand.

For the contemplated service, the Debtors propose to pay RLKS a
$15,000 retainer, in the aggregate, and $450 per hour for
services to be rendered by its chief executive Richard Lydecker
Jr. and Kathryn Schultea.  The firm will also be reimbursed for
necessary and actual expenses.

Mr. Lydecker submitted an affidavit to the Court, affirming that
his firm does not hold nor represent interest adverse to the
Debtors.  He assures the Court that RLKS is a "disinterested
person" under Section 101(14) of the Bankruptcy Code.

                      About Nortel Networks

Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers.  The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.

The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164).  Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986.  The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England.  Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.

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


PACIFIC ENERGY: Plan Confirmation Hearing Set for October 12
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware will
convene a hearing on October 12, 2010, at 1:00 p.m. (prevailing
Eastern time), to consider the confirmation of Pacific Energy
Resources Ltd.'s Plan of Liquidation.  Any objections to the Plan,
and ballots accepting or rejecting the Plan are due on
September 29:

Ballots must be received before the voting deadline at:

     Pacific Energy Resources Ltd.
     c/o Omni Management Group, LLC
     16161 Ventura Blvd., Suite C
     Encino, CA 91436

The solicitation agent must file with the Bankruptcy Court, no
later than October 5, an affidavit regarding the results of the
tabulation of the ballots received on the Plan.

As reported in the Troubled Company Reporter on July 27, 2010, the
Debtor filed a proposed liquidation plan with the support of its
official committee of unsecured creditors.

                       About Pacific Energy

Headquartered in Long Beach, California, Pacific Energy Resources
Ltd. -- http://www.pacenergy.com/-- engaged in the acquisition
and development of oil and gas properties, primarily in the United
States.  The Company and seven of its affiliates filed for
Chapter 11 protection on March 8, 2009 (Bankr. D. Del. Lead Case
No. 09-10785).  The Debtor estimated between $100 million and
$500 million in assets and debts in its Chapter 11 petition.

Attorneys at Pachulski Stang Ziehl & Jones LLP, serve as
bankruptcy counsel to the Debtors.  The Debtors also tapped Rutan
& Tucker LLP as special corporation and litigation counsel;
Schully, Roberts, Slattery & Marino, PLC, as special oil and gas
and transactional counsel; Devlin Jensen as special Canadian
counsel; Scott W. Winn, at Zolfo Cooper Management, LLC, as chief
restructuring officer; Lazard Freres & Co. LLC as investment
banker; and Albrecht & Associates, Inc., as agent for the Debtors
in the sale of their oil and gas properties.  Omni Management
Group, LLC, is the claims, balloting, notice and administrative
agent for the Debtors.


PARK GROVE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Park Grove Pet Hospital, P.A.
        7663 79th Street South
        Cottage Grove, MN 55016

Bankruptcy Case No.: 10-36330

Chapter 11 Petition Date: August 30, 2010

Court: U.S. Bankruptcy Court
       District of Minnesota (St Paul)

Judge: Dennis D. O'Brien

Debtor's Counsel: Steven B. Nosek, Esq.
                  2855 Anthony Lane S, Suite 201
                  St. Anthony, MN 55418
                  Tel: (612) 335-9171
                  Fax: (612) 789-2109
                  E-mail: snosek@visi.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/mnb10-36330.pdf

The petition was signed by Daniel G. Cederstrom, president.


PETTIT ENTERPRISES: Case Summary & 3 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Pettit Enterprises LLC
        0704 Canyon Creek Drive
        Glenwood Springs, CO 81601

Bankruptcy Case No.: 10-32289

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       District of Colorado (Denver)

Judge: Sidney B. Brooks

Debtor's Counsel: Douglas C. Pearce II, Esq.
                  950 Spruce Street, Suite 1C
                  Louisville, CO 80027
                  Tel: (303) 661-9292
                  Fax: (303) 661-9555
                  E-mail: doug@crlpc.com

Scheduled Assets: $1,003,129

Scheduled Debts: $1,953,961

A list of the Company's three largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cob10-32289.pdf

The petition was signed by John M. Pettit. Manager.

Debtor-affiliate that filed separate Chapter 11 petition:

        Entity                        Case No.       Petition Date
        ------                        --------       -------------
Rocky Mountain JMP, Inc.              10-17633            04/03/10


PROFESSIONAL VETERINARY: Files Schedules of Assets & Liabilities
----------------------------------------------------------------
Professional Veterinary Products, Ltd., has filed with the U.S.
Bankruptcy Court for the District of Nebraska its schedules of
assets and liabilities, disclosing:

  Name of Schedule                     Assets         Liabilities
  ----------------                     ------         -----------
A. Real Property                    $7,561,390
B. Personal Property               $35,215,608
C. Property Claimed as
   Exempt
D. Creditors Holding
   Secured Claims                                      $6,884,413
E. Creditors Holding
   Unsecured Priority
   Claims                                                $374,030
F. Creditors Holding
   Unsecured Non-priority
   Claims                                             $27,228,112
                                   -----------        -----------
      TOTAL                         $42,776,998        $34,486,554

Omaha, Nebraska-based Professional Veterinary Products, Ltd.,
filed for Chapter 11 protection on August 20, 2010 (Bankr. D. Neb.
Case No. 10-82436).  James J. Niemeier, Esq., Michael T. Eversden,
Esq., Robert J. Bothe, Esq., and Robert P. Diederich, Esq., at
McGrath, North, Mullin & Kratz, P.C., assist the Debtor in its
restructuring effort.  The Debtor estimated assets and debts at
$50 million to $100 million in its Chapter 11 petition.


PROFESSIONAL VETERINARY: Section 341(a) Meeting Set for Sept. 21
----------------------------------------------------------------
The U.S. Trustee for Region 13 will convene a meeting of
Professional Veterinary Products, Ltd.'s creditors on
September 21, 2010, at 10:00 a.m.  The meeting will be held at
Roman L. Hruska Courthouse, 111 South 18th Plaza, US Trustee
Meeting Room, Omaha, NE 68102.

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

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

Omaha, Nebraska-based Professional Veterinary Products, Ltd.,
filed for Chapter 11 protection on August 20, 2010 (Bankr. D. Neb.
Case No. 10-82436).  James J. Niemeier, Esq., Michael T. Eversden,
Esq., Robert J. Bothe, Esq., and Robert P. Diederich, Esq., at
McGrath, North, Mullin & Kratz, P.C., assist the Debtor in its
restructuring effort.  The Debtor estimated assets and debts at
$50 million to $100 million in its Chapter 11 petition.


PROFESSIONAL VETERINARY: Creditors Panel Taps Smith as Counsel
--------------------------------------------------------------
The Committee of Unsecured Creditors of the estate of Professional
Veterinary Products, Ltd., et al., asks for authorization from the
U.S. Bankruptcy Court for the District of Nebraska to employ the
Law Firm of Smith, Gardner, Slusky, Lazer, Pohren & Rogers, LLP,
as counsel.

Smith Gardner will, among other things:

     a. provide representation in connection with any adversary
        proceedings filed in the Court by various creditors and
        adversary proceedings required to be filed for the
        protection and preservation of property of the estate;

     b. assist the Committee in its investigation of the conduct,
        activities, claims, liabilities and assets of the Debtor;

     c. prepare applications, motions, answers, responses, orders,
        reports, adversary proceedings, objections, comments and
        other legal papers in the proceeding and related Chapter
        11 matters; and

     d. perform any and all other legal services which may be
        necessary or otherwise deemed appropriate in the interest
        of the Committee in accordance with the authority and
        rights of the Committee.

Smith Gardner will charge the Committee these hourly rates:

        Clay Rogers       $250
        Christopher Curzon   $250
        Associates           $160
        Paralegals           $100

Christopher D. Curzon, Esq., a partner in Smith Gardner, assures
the Court that the firm is "disinterested" as that term is defined
in Section 101(14) of the Bankruptcy Code.

Omaha, Nebraska-based Professional Veterinary Products, Ltd.,
filed for Chapter 11 protection on August 20, 2010 (Bankr. D. Neb.
Case No. 10-82436).  James J. Niemeier, Esq., Michael T. Eversden,
Esq., Robert J. Bothe, Esq., and Robert P. Diederich, Esq., at
McGrath, North, Mullin & Kratz, P.C., assist the Debtor in its
restructuring effort.  The Debtor estimated its assets at
$50 million to $100 million and debts at $50 million to
$100 million.


PROFESSIONAL VETERINARY: Gets OK to Hire McGrath as Bankr. Counsel
------------------------------------------------------------------
Professional Veterinary Products, Ltd., et al., sought and
obtained authorization from the U.S. Bankruptcy Court for the
District of Nebraska to employ McGrath North Mullin & Kratz, PC
LLO, as bankruptcy counsel.

McGrath North will, among other things:

     a) take necessary actions to protect and preserve the
        Debtors' estates during the pendency of their Chapter 11
        case, including the prosecution of actions by the Debtors,
        the defense of actions commenced against the Debtors,
        negotiations concerning litigation in which the Debtors
        are involved and objecting to claims against the estate;

     b) prepare motions, applications, answers, orders, reports
        and papers in connection in administration of their
        Chapter 11 case;

     c) counsel the Debtors with regard to their rights and
        obligations as debtors-in-possession; and

     d) perform other necessary legal services including without
        limitation those on behalf of the Debtors related to the
        auction of its assets or any similar sale.

McGrath will be paid $200 to $330 per hour for it services.

Robert J. Bothe, Esq., a shareholder in McGrath North, assures the
Court that the firm is "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.

Omaha, Nebraska-based Professional Veterinary Products, Ltd.,
filed for Chapter 11 protection on August 20, 2010 (Bankr. D. Neb.
Case No. 10-82436).  The Debtor estimated its assets at
$50 million to $100 million and debts at $50 million to
$100 million.


PROFESSIONAL VETERINARY: US Trustee Forms Creditors Committee
-------------------------------------------------------------
Nancy J. Gargula, the U.S. Trustee for Region 13, appoints seven
members to the Official Committee of Unsecured Creditors in
Professional Veterinary, Products, Ltd.'s Chapter 11 cases.

The Committee members include:

1) Pfizer Inc.
   Attn: Michael Gipson, Director, Financial Services
   Global Financial Solutions
   6730 Lenox Center Ct.
   Memphis, TN 38115
   Phone: (901) 215-1570
   Cell: (901) 335-9427
   Fax: (901) 433-7880
   E-mail: Michael.Gipson@pfizer.com

2) Lionel Reilly, DVM
   20620 Corral Road
   Elkhorn, NE 68022
   Cell: (402) 670-3893
   Home: (402) 289-3502
   Cell: (402) 670-3893
   E-mail: lionel.reillydvm@gmail.com

3) Boehringer Ingelheim Vetmedica
   Attn: Stephanie Sulzen
   2621 North Belt Highway
   St. Joseph, MO 64506-4902
   Phone: (816) 387-4885
   Cell: (816) 344-9038
   E-mail: Stephanie.Sulzen@boehringer-ingelheim.com

4) Intervet/SP Animal Health
   Attn: Michael J. Marino
   1011 Morris Avenue
   Union, NJ 07083
   Phone: (908) 820-6389
   E-mail: michael.marino@spcorp.com

5) Novartis Animal Health US, Inc.
   Attn: Nancy White, Credit Manager
   3200 Northline Avenue, Suite 300
   Greensboro, NC 27408
   Phone: (336) 387-1089
   Cell: (336) 545-5595
   Fax: (336) 387-1409
   E-mail: nancy-1.white@novartis.com

6) AgriLaboratories, Ltd.
   Attn: Helen Taylor, CPA, Chief Financial Officer
   P.O. Box 3103
   St. Joseph, MO 64503
   Phone: (816) 271-5741
   Cell: (816) 387-1222
   E-mail: htaylor@agrilabs.com

7) Bayer Corporation
   Attn: Deborah Blevins, Director AH Credit Services
   P.O. Box 390
   Shawnee Mission, KS 66201
   Phone: (913) 268-1760
   Cell: (816) 547-3314
   Fax: (913) 962-5120
   E-mail: deborah.blevins.b@bayer.com

Omaha, Nebraska-based Professional Veterinary Products, Ltd.,
filed for Chapter 11 protection on August 20, 2010 (Bankr. D. Neb.
Case No. 10-82436).  James J. Niemeier, Esq., Michael T. Eversden,
Esq., Robert J. Bothe, Esq., and Robert P. Diederich, Esq., at
McGrath, North, Mullin & Kratz, P.C., assist the Debtor in its
restructuring effort.  The Debtor estimated its assets at
$50 million to $100 million and debts at $50 million to
$100 million.


PS INVESTMENT: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: PS Investment Property Holdings LLC
        c/o Mariscal Weeks Mcintyre and Friedlander
        Statutory Agent
        2901 N. Central Avenue, #200
        Phoenix, AZ 85012

Bankruptcy Case No.: 10-27692

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       District of Arizona (Phoenix)

Judge: James M. Marlar

Debtor's Counsel: Todd B. Tuggle, Esq.
                  JENNINGS, STROUSS & SALMON, P.L.C.
                  One East Washington Street, Suite 1900
                  Phoenix, AZ 85004-2554
                  Tel: (602) 262-5834
                  Fax: (602) 262-5911
                  E-mail: ttuggle@jsslaw.com

Estimated Assets: $0 to $50,000

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

Debtor-affiliates that filed separate Chapter 11 petitions:

Debtor                                   Case No.    Petition Date
------                                   --------    -------------
Bullhead 125 Holdings Ltd. Partnership    10-27694      8/31/10
  Assets: $1,000,001 to $10,000,000
  Debts: $1,000,001 to $10,000,000
Pinnacle & Pima LLC                       10-27695      8/31/10
  Assets: $500,001 to $1,000,000
  Debts: $1,000,001 to $10,000,000
Village at Pinnacle Peak LLC              10-27697      8/31/10
  Assets: $500,001 to $1,000,000
  Debts: $1,000,001 to $10,000,000

The Debtors did not file a list of creditors together with their
petitions.

The petitions were signed by Michael E. Pfau, authorized
representative.


REAL MEX: Moody's Retains 'Caa2' Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service affirmed Real Mex Restaurant Inc.'s
Speculative Grade Liquidity rating at SGL-3.  Real Mex's long term
ratings, including its Caa2 Corporate Family Rating, and stable
outlook are unaffected by the announcement.

Real Mex's SGL-3 incorporates Moody's view that the company's
overall liquidity profile for the next twelve months will likely
be adequate.  Moody's anticipate Real Mex's free cash flow to be
slightly positive despite the low EBITDA level.  In addition, the
$15 million revolving credit facility (due July 2012) remained
undrawn as of June 27, 2010 and should provide future liquidity
needs if there is any seasonal cash flow shortfall.  Moody's also
expects modest cushion under the bank financial covenants but
cautions that the cushion could become tight should the operating
performance deteriorate, particularly under the minimum EBITDA
requirement of $32 million covenant which is also contained in the
bond indenture for the 14% senior secured notes due 2013.

Real Mex's Caa2 CFR continues to reflect the challenges Real Mex
will face to reverse its revenue decline primarily driven by the
ongoing, albeit somewhat decelerated, negative same store sales
trend, in a very difficult operating environment for casual dining
concepts.  The rating also incorporates the company's high
financial leverage, poor interest coverage and weak free cash flow
generation.

The company's ratings are:

* Corporate Family Rating -- Caa2

* Probability of Default Rating -- Caa2

* $130 million 2nd lien senior secured notes due 2013 -- B3 (LGD2,
  24%)

* Speculative Grade Liquidity rating -- SGL-3

* Rating outlook -- Stable

The last rating action on Real Mex occurred on July 13, 2009, when
the SGL rating was raised to SGL-3 from SGL-4.

Real Mex Restaurants, Inc., headquartered in Cypress, California,
is a leading Mexican-themed restaurant chain operator that owns,
operates and franchises casual dining restaurants primarily under
the El Torito, Chevys Fresh Mex and Acapulco Mexican Restaurant
concepts.  Total revenues for twelve months ended June 27, 2010,
were approximately $486 million.


REFCO INC: Cantor Wants Rule 2004 Exam on Refco & Capstone
----------------------------------------------------------
Cantor Fitzgerald Securities, along with certain of its affiliated
Entities, entered into a series of agreements with Debtor Refco
Group, LLC, and non-debtor Refco Securities in March 2004.  Under
the Agreements, Cantor provided to Refco Group and Refco
Securities certain services with respect to various financial
transactions.

Representing Cantor, Francis X Riley, III, Esq., at Saul Ewing
LLP, in Princeton, New Jersey, specified that pursuant to that
certain U.S. Dollar Fixed Income Transaction Fee Agreement dated
April 1, 2004, as amended, Cantor provided to Refco Group and
Refco Securities essential financial services with respect to
electronic trading and purchase or sale transactions for certain
notes, bonds, and treasury swaps.

Refco Group and Refco Securities are jointly and severally
obligated to pay Cantor fees under the Transaction Fee Agreement.
However, Refco Securities and Refco Group failed to make the
required payments under the Transaction Fee Agreement, according
to Mr. Riley.

Cantor filed in June 2006, a Statement of Claim before the
National Association of Securities Dealers, Inc., alleging Refco
Securities' failure to pay Cantor the fees due under the
Transaction Fee Agreement.  The NASD later became the Financial
Industry Regulatory Authority.

Cantor also filed a general unsecured claim for $11,193,466
against Refco Group with respect to the Transaction Fee
Agreement, Mr. Riley confirmed.

After a hearing before a panel of three neutral arbitrators,
Cantor and Refco Securities were served by FINRA with the
decision or "award" of the arbitrators.  The Award essentially
stated that the Arbitrators determined that:

  (1) Refco Securities is liable for, and will pay to Claimant,
      compensatory damages totaling $11,193,466 plus interest at
      the rate of 9% per annum from the date of the issuance of
      the award until the day of payment of the award;

  (2) Refco Securities' counterclaim is denied in its entirety;
      and

  (3) Any and all relief not specifically addressed by the
      Arbitrators is denied.

Cantor filed in April 2010, a petition to confirm the Award in
the Supreme Court of the state of New York, County of New York.
Refco Securities concurrently filed a petition to vacate the
Award.

The plan administrators of Refco, Inc., and its debtor-affiliates
also sought an extension of the deadline to object to, among
other things, the Cantor Claims through and including December 7,
2010.  Cantor opposed the extension request.

"The issues between Cantor and Refco Securities with respect to
the Award have been fully briefed and oral argument regarding
Cantor's Petition to Confirm and Refco Securities' Petition to
Vacate took place before Justice Barbara Jaffe in New York State
Court on June 8, 2010.  The New York State Court will issue its
ruling in due course," Mr. Riley informed Judge Drain.

Moreover, Mr. Riley said, "the Award has not been satisfied, and
no payment has been made to Cantor on account of [that] Award.
Cantor has received no distribution on account of Cantor's claim
against Refco Group."

Against this backdrop, Cantor asked Judge Drain to compel
representatives of Refco Securities and Capstone Advisory Group,
LLC, to:

  (a) attend an examination under Rule 2004 of the Federal Rules
      of Bankruptcy Procedure following services of a proposed
      subpoena duces tecum; and

  (b) produce certain documents identified in the Subpoena Duces
      Tecum prior to the Examination.

The Rule 2004 Examination and Document Productions "should
provide information relevant to Refco Securities' ability to
satisfy the award and, by extension, relate to the administration
of the Debtors' estates," Mr. Riley insisted.

                          Objections

"To the extent that Cantor is entitled to any . . . information,
the Rule 2004 Motion could have gotten Cantor the information it
seeks with a few interrogatories.  Instead, Cantor seeks massive
document discovery, followed by depositions," the Plan
Administrator of Refco Capital Markets, Ltd., complained.

Representing the Plan Administrator, Daniel N. Zinman, Esq., at
Kasowitz, Benson, Torres & Friedman LLP, in New York, argued that
the imposition of the Rule 2004 Motion -- while Refco Securities
is weighing whether to appeal Justice Jaffe's order -- suggests
that the Rule 2004 Motion is designed not to obtain information
but simply to apply pressure on Refco Securities to give up any
appeal.

"[This form of] harassment is not the purpose Rule 2004 is meant
to accomplish," Mr. Zinman noted.

The Plan Administrator also submitted a separate letter to the
Court seeking to postpone the hearing to consider Cantor's Rule
2004 Motion to September 15, 2010.

In response, Mr. Riley, on behalf of Cantor, said that "there is
no need to delay the Hearing."

Arthur H. Ruegger, Esq., at Sonnenschein Nath & Rosenthal LLP, in
New York, special litigation counsel to Refco Inc. and Refco
Group Ltd., asked Judge Drain to hold an informal status
conference in connection with Cantor's Rule 2004 Motion "to
update the Court regarding the status of production of
information related to Cantor Index Holdings, L.P."

Cantor Index is a partnership engaged in financial and gaming
businesses that is 90% owned by affiliates of Cantor.

Subsequently, for undisclosed reasons, Cantor withdrew, without
prejudice, its Rule 2004 Motion.

                         About Refco Inc.

Headquartered in New York, Refco Inc. -- http://www.refco.com/--
was a diversified financial services organization with operations
in 14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries were members of
principal U.S. and international exchanges, and were among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  Refco was also a major broker of cash
market products, including foreign exchange, foreign exchange
options, government securities, domestic and international
equities, emerging market debt, and OTC financial and commodity
products.  Refco was one of the largest global clearing firms for
derivatives.  The Company had operations in Bermuda.

The Company and 23 of its affiliates filed for Chapter 11
protection on October 17, 2005 (Bankr. S.D.N.Y. Case No. 05-
60006).  J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher
& Flom LLP, represented the Debtors in their restructuring
efforts.  Milbank, Tweed, Hadley & McCloy LLP, represented the
Official Committee of Unsecured Creditors.  Refco reported
US$16.5 billion in assets and US$16.8 billion in debts to the
Bankruptcy Court on the first day of its Chapter 11 cases.

The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on December 15, 2006.  That Plan became effective on Dec. 26,
2006.  Pursuant to the plan, RJM, LLC, was named plan
administrator to reorganized Refco, Inc., and its affiliates, and
Marc S. Kirschner as plan administrator to Refco Capital Markets,
Ltd.

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


REFCO INC: LLC Trustee Reaches Settlement With Former Customers
---------------------------------------------------------------
Albert Togut, solely in his capacity as Chapter 7 Trustee for the
estate of Refco, LLC, asks Judge Robert D. Drain of the U.S.
Bankruptcy Court for the Southern District of New York to approve
a settlement agreement and release that he reached with these
former customers:

  * Risk Management International
  * Scott Mikros
  * Charles F. Murphy III
  * Margaret B. Sparks
  * Dennis Bordyn
  * Martha Jencks
  * Howard Allard
  * Joseph Owczarek
  * Isabella Khorolinsky
  * Gregory Khorolinsky
  * Lorraine Allard
  * Pratima Shah
  * Mayur Shah
  * ANA Trading Corp.
  * Avante Service & Sales
  * Clarence Peterson
  * Michael Page
  * Margaret Mikros
  * Victor Dwojacki
  * Greory Lochow
  * Robert Johnston
  * Carol Nehls
  * Janice Wood
  * Julie Vevers
  * David J. Flood
  * Francis Ritchie
  * Peter Shapiro
  * R. Thomas Loftin
  * C. Scott Vinson
  * William Peterson
  * Krishnaiah Revulurli
  * Tony Orsini

Vincent E. Lazar, Esq., at Jenner & Block LLP, in Chicago,
Illinois, relates, on behalf of the Chapter 7 Trustee, that Refco
LLC commenced in October 2002, a proceeding against certain of
the Former Customers before the Circuit Court of Cook County,
captioned Refco, LLC v. Risk Management Int'l, et al.  Under the
proceedings, Refco LLC sought to recover certain unpaid debit
balances from the Former Customers and others in connection with
their commodity trading accounts carried on the books of the
Company.

Defendant Scott Mikros and certain other parties filed
arbitration proceedings in January 2003, entitled Risk Management
International, Ltd. et al. v. Refco, Inc., et al., before the
National Futures Association asserting certain claims against
Refco LLC and Stephen Paoletti relating to their commodity
trading accounts.

Upon the Chapter 7 Petition Date, the Litigation and the
Arbitration Proceedings were stayed.  Judge Drain modified the
automatic stay under Section 362(a) of the Bankruptcy Code in May
2006, with respect to Litigation for the limited purpose of
allowing the liquidation of the claims asserted in the Litigation
or the Arbitration Proceedings.

Stephen Paoletti thereafter filed a civil complaint against the
Former Customers before the Circuit Court of Cook County, County
Departments, Chancery Division entitled Paoletti v. Risk
Management Int'l, et al., Case No. 07-CH-21406, seeking
declaratory judgment and other relief from the Circuit Court.

Certain of the Former Customers have filed in Refco LLC's Chapter
7 case, Claim Nos. 351, 352, 353, 354, 355, 356, 357, 358, 359,
360, 361, 363, 364, 365, 366, 367, 368, 369, 370, 371, 372, 373,
374, 375, 376, 377, 378, 379 and 380.

The Former Customers' Claims exceed $1.6 million in the
aggregate.

To resolve the claims dispute, the Chapter 7 Trustee and the
Former Customers agreed to enter into a settlement agreement
pursuant to Rule 9019 of the Federal Rules of Bankruptcy
Procedure, which provides for these terms:

  (a) The Chapter 7 Trustee will withdraw and dismiss with
      prejudice all claims asserted against the Former Customers
      in the Litigation and in the Arbitration Proceedings, and
      the Former Customers will withdraw and dismiss with
      prejudice all Claims asserted against the Trustee in the
      Litigation, the Arbitration Proceeding, and the Chapter 7
      Debtor's Chapter 7 case, as well as all claims asserted in
      the Chancery Proceeding.

  (b) In satisfaction of all of the Former Customers' Claims,
      the Trustee will pay $175,000 as settlement payment to the
      Former Customers.

  (c) With the exception of any claim to enforce the settlement
      payment or any other provision of the Settlement
      Agreement, the Chapter 7 Trustee and the Former Customers
      will exchange mutual releases.

  (d) Except for the Settlement Payment, the Former Customers
      consent to the disallowance of their Claims.

Although Refco LLC has asserted claims against the Former
Customers, the Former Customers have also asserted claims against
Refco LLC.  Continued litigation of the dispute, including the
costs and expenses associated with continued litigation, could
result in an outcome less favorable than the $175,000 Settlement
Payment, Mr. Lazar notes.  Moreover, he adds, the litigation
necessary to resolve the claims asserted by the Trustee and the
Former Customers would require additional attorney time and could
involve extensive and expensive discovery and preparation.

On the other hand, the Settlement Agreement will avoid
unnecessary delay and uncertainty caused by continuing the
litigation, Mr. Lazar avers.

Against this backdrop, the Chapter 7 Trustee asks the Court to
approve his Settlement Agreement with the Former Customers.

                         About Refco Inc.

Headquartered in New York, Refco Inc. -- http://www.refco.com/--
was a diversified financial services organization with operations
in 14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries were members of
principal U.S. and international exchanges, and were among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  Refco was also a major broker of cash
market products, including foreign exchange, foreign exchange
options, government securities, domestic and international
equities, emerging market debt, and OTC financial and commodity
products.  Refco was one of the largest global clearing firms for
derivatives.  The Company had operations in Bermuda.

The Company and 23 of its affiliates filed for Chapter 11
protection on October 17, 2005 (Bankr. S.D.N.Y. Case No. 05-
60006).  J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher
& Flom LLP, represented the Debtors in their restructuring
efforts.  Milbank, Tweed, Hadley & McCloy LLP, represented the
Official Committee of Unsecured Creditors.  Refco reported
US$16.5 billion in assets and US$16.8 billion in debts to the
Bankruptcy Court on the first day of its Chapter 11 cases.

The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on December 15, 2006.  That Plan became effective on Dec. 26,
2006.  Pursuant to the plan, RJM, LLC, was named plan
administrator to reorganized Refco, Inc., and its affiliates, and
Marc S. Kirschner as plan administrator to Refco Capital Markets,
Ltd.

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


ROBERT SPEHAR: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Robert Gerard Spehar
                 aka Gerry Spehar
               Susan Miller Spehar
               1625 Grandview Avenue
               Glendale, CA 91201

Bankruptcy Case No.: 10-47181

Chapter 11 Petition Date: August 31, 2010

Court: U.S. Bankruptcy Court
       Central District of California (Los Angeles)

Judge: Alan M. Ahart

Debtors' Counsel: Jerome S. Cohen, Esq.
                  3731 Wilshire Boulevard, Suite 514
                  Los Angeles, CA 90010
                  Tel: (213) 388-8188
                  Fax: (213) 388-6188
                  E-mail: jsc@jscbklaw.com

Scheduled Assets: $1,014,952

Scheduled Debts: $3,014,132

A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-47181.pdf


ROSEMONT TWO: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Rosemont Two, LLC
        1341 H Street, N.E.
        Washington, DC 20002-4406

Bankruptcy Case No.: 10-00852

Chapter 11 Petition Date: August 30, 2010

Court: U.S. Bankruptcy Court
       District of Columbia (Washington, D.C.)

Judge: S. Martin Teel, Jr.

Debtor's Counsel: David E. Lynn, Esq.
                  15245 Shady Grove Road, Suite 465 N
                  Rockville, MD 20850
                  Tel: (301) 255-0100
                  Fax: (301) 255-0101
                  E-mail: davidlynn@verizon.net

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/dcb10-00852.pdf

The petition was signed by Gail Montplaisir, member.


ROTHSTEIN ROSENFELDT: Judge Directs Founder to Repay $363MM
-----------------------------------------------------------
Jay Weaver, writing for The Miami Herald, reports that U.S.
District Judge James Cohn on Monday ordered Scott Rothstein to
repay $363 million to some 320 victims of his investment racket.

The Herald says Judge Cohn allowed preferential treatment for
about 40 clients of Mr. Rothstein's former law firm who received
legal services.  He noted they were different from the mostly
wealthy investors, and should collect the actual money they had
left in the Rothstein Rosenfeldt Adler bank accounts -- about $1.5
million.

The Herald relates that federal prosecutors cautioned the judge
that while they have seized about $60 million worth of Mr.
Rothstein's assets, including property, cars, jewelry and cash,
there won't be much bounty to distribute to all his victims.
After liquidation, there might be an estimated $25 million to $30
million to redistribute to former clients, investors and other
creditors.

Assistant U.S. Attorney Lawrence LaVecchio told Judge Cohn that he
wished the government had enough money to repay all of Mr.
Rothstein's victims in full, but "practical realities" intervened.

The Herald also reports that in a separate federal bankruptcy
proceeding, the trustee discovered that South Florida auto dealer
Edward Morse and wife Carol, major investors with Mr. Rothstein,
received payments from him totaling $87 million before his
investment scam unraveled last October.  Those payments
substantially exceeded their losses to Mr. Rothstein.

The Herald says the Morse family has agreed to pay $30 million to
the law firm's bankruptcy estate.

The report also relates the bankruptcy trustee, advised by lawyers
with the Fort Lauderdale firm Berger Singerman, has aggressively
pursued substantial claims against the Morses, other investors,
Mr. Rothstein's former law partners and the firm's banks, Toronto
Dominion and Gibraltar.  The trustee argues that legally, those
entities should pony up because, for the most part, they benefited
financially from Mr. Rothstein's scheme even if they had no
knowledge of his wrongdoing.

Attorney John Genovese, special counsel to the trustee, said the
bankruptcy lawyers are working to recover more than $100 million
they claim is owed to investors.

The report says a looming issue for the bankruptcy judge is a bill
for more than $7 million in fees and costs submitted so far by
court-appointed lawyers and accountants working on the Rothstein
case.

                    About Rothstein Rosenfeldt

Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt Adler
PA, has been suspected of running a $1.2 billion Ponzi scheme.
U.S. authorities claimed in a civil forfeiture lawsuit filed
November 9, 2009, that Mr. Rothstein, the firm's former chief
executive officer, sold investments in non-existent legal
settlements.  Mr. Rothstein pleaded guilty to five counts of
conspiracy and wire fraud on January 27, 2010.

Creditors of Rothstein Rosenfeldt Adler signed a petition sending
the Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No.
09-34791).  The petitioners include Bonnie Barnett, who says she
lost $500,000 in legal settlement investments; Aran Development,
Inc., which said it lost $345,000 in investments; and trade
creditor Universal Legal, identified as a recruitment firm, which
said it is owed $7,800.  The creditors alleged being owed money
invested in lawsuit settlements.

Herbert M. Stettin, the state-court appointed receiver for
Rothstein Rosenfeldt, was officially carried over as the Chapter
11 trustee in the involuntary bankruptcy case.

On June 10, 2010, Mr. Rothstein was sentenced to 50 years in
prison.


SPA CHAKRA: Halts Operations; Files for Chapter 7
-------------------------------------------------
Adrianne Pasquarelli, writing for Crain's New York Business,
reports that Palo Alto, Calif.-based Spa Chakra has filed for
Chapter 7 bankruptcy protection.  The company also filed a WARN
notice with the New York state Department of Labor on Tuesday,
reporting the layoff of 66 employees in the city.

The report says Spa Chakra's location at 663 Fifth Ave., in New
York, has already been closed and has a voicemail phone message in
place states "As of Friday, Aug. 20, 2010, all Spa Chakra-operated
U.S. spa locations will cease operations."

The report notes Spa Chakra also operated outposts in Chicago,
Indianapolis and Marina del Rey, Calif.  A recording at the
Guerlian Spa in the Waldorf said the site has been temporarily
closed, and that the spa is "making every effort to reopen."

Crain's says Spa Chakra listed assets of nearly $283,000 and
liabilities of nearly 18 times that amount -- just over $5 million
in its bankruptcy petition.  The company also named more than 100
creditors.

Crain's relates that a group of three vendors, including N.J.-
based GVK Limited Partners, Conn.-based JJB Public Relations and
Manhattan-based Zinna Floral Design, filed a petition in December
to push Spa Chakra into Chapter 7 bankruptcy.  The vendors claimed
they were owed more than $1.3 million for services rendered.

Shortly after the filing, the then-Australia-based Spa Chakra
network filed for Chapter 11 bankruptcy protection, Crain's
continues.  Hercules Technology Growth Capital, a Palo Alto
provider of debt and equity growth capital, then bought the spas.


SUNCAL COS: Judge Declines to Lift Lehman Automatic Stay
--------------------------------------------------------
Bankruptcy Law360 reports that SunCal has failed to convince a
district court to untie its hands when it comes to $1.5 billion in
loans held by Lehman Brothers Holdings Inc., which is also
bankrupt.  Law360 says Judge Richard J. Holwell of the U.S.
District Court for the Southern District of New York on Friday
declined to lift the automatic stay in the Lehman bankruptcy.

                      About SunCal Companies

SunCal Companies -- http://www.suncal.com/-- has more than
250,000 residential lots and 10 million square feet of commercial
space in various stages of development throughout California,
Arizona, Nevada and New Mexico.  Some of SunCal's communities
include Amerige Heights in Fullerton, Lincoln Crossing near
Sacramento and Terra Lago and Fairway Canyon near Palm Springs.
SunCal Companies recently added an active-adult, commercial,
homebuilding, multifamily and urban divisions; and expanded to
Florida, Texas and Washington, D.C.

Irvine, California-based Palmdale Hills Property, LLC, develops
real estate property.  It filed for Chapter 11 protection on
Nov. 6, 2008 (Bankr. C. D. Calif. Case No. 08-17206).  Affiliates
who also filed separate Chapter 11 petitions include: SunCal
Beaumont Heights, LLC; SunCal Johannson Ranch, LLC; SunCal Summit
Valley, LLC; SunCal Emerald Meadows LLC; SunCal Bickford Ranch,
LLC; SunCal Communities I, LLC; SunCal Communities III, LLC; and
SJD Development Corp.

Paul J. Couchot, Esq., at Winthrop Couchot P.C., represents
Palmdale Hills in its restructuring effort.  The Company estimated
assets and debts of $100 million to $500 million in its Chapter 11
petition.


TACO DEL MAR: Says Purchaser's Bid Within Range of Assets' Value
----------------------------------------------------------------
Taco Del Mar Franchising Corp. and its affiliate, Conrad & Barry
Investments Inc., have won bankruptcy court approval to conduct an
auction for substantially all of TDM's assets on September 30 at
1:00 p.m. at the offices of Karr Tuttle Campbell, 1201 Third
Avenue, Suite 2900, Seattle, Washington.

The Official Committee of Unsecured Creditors filed a motion for
reconsideration of the order approving the bidding procedures.

The Debtor counters that the sale should go forward, noting that::

   -- although the Court failed to allow the breakup fee and
      overbid amount proposed, it was clear that the Court
      considered the evidence and arguments of counsel for the
      Committee, Banner Bank, TDM, and of the stalking horse
      bidder, Taco Del Mar Acquisition, Inc.;

   -- the evidence presented shows that the Debtor's marketing
      efforts were substantial and more than enough to support the
      Court's ruling denying the Committee's application to employ
      investment bankers for less than 2 months work then, now
      less than 1 month's work; and

   -- while the Committee's financial analyst is concerned that
      the current sales price may result in no return to unsecured
      creditors, he has also stated that the Debtor's assets
      are valued in a range between $1,800,000 and $2,500,000.
      The stalking horse' bid of $1,950,000 is clearly in that
      range.

                  About Taco Del Mar Franchising

Founded in Seattle, Washington, in 1992 by brothers James and John
Schmidt, Taco Del Mar is a quick-service casual restaurant chain
inspired by southern Baja, Mexico, and coastal beach shacks known
for serving some of the tastiest burritos and tacos.  Today, Taco
Del Mar operates in more than 225 locations throughout the U.S.,
Canada and Guam.

Taco Del Mar Franchising Corp. and its affiliate, Conrad & Barry
Investments Inc., filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Wash. Case No. 10-10528) on January 22, 2010.  George
S. Treperinas, Esq. at Karr Tuttle Campbell represents the Debtor
in its restructuring effort.  The Official Unsecured Creditors'
Committee is represented by Geoffrey Groshong, Esq. at Miller Nash
LLP.  The Company estimated assets at $10 million to $50 million
and liabilities at $50 million to $100 million.


TELETOUCH COMMS: May 31 Balance Sheet Upside-Down by $8.64 Million
------------------------------------------------------------------
Teletouch Communications Inc. filed its annual report on Form
10-K, reporting $21.68 million in total assets, $30.33 million in
total liabilities, and $8.64 million in stockholders' deficit at
May 31, 2010.

The Company reported net income of $1.60 million on $51.96 million
of total operating revenues for the fiscal year ended May 31,
2010, compared with a net loss of $1.92 million on $45.86 million
of total operating revenues for fiscal 2009.

A full-text copy of the annual report on Form 10-K is available
for free at http://ResearchArchives.com/t/s?6a98

Teletouch Communications, Inc., offers a comprehensive suite of
wireless telecommunications solutions, including cellular, two-way
radio, GPS-telemetry and wireless messaging.  Teletouch is an
authorized provider of AT&T (NYSE: T) products and services
(voice, data and entertainment) to consumers, businesses and
government agencies, as well as an operator of its own two-way
radio network in Texas.  Recently, Teletouch entered into national
agency and distribution agreements with Sprint (NYSE: S) and
Clearwire (NASDAQ: CLWR), providers of advanced 4G cellular
network services.  Teletouch operates a chain of 26 retail and
agent stores under the "Teletouch" and "Hawk Electronics" brands,
in conjunction with its direct sales force, customer care (call)
centers and various retail eCommerce Web sites including:
http://www.hawkelectronics.com/and http://www.hawkexpress.com/

Through its wholly-owned subsidiary, Progressive Concepts, Inc.,
Teletouch operates a national distribution business, PCI
Wholesale, primarily serving large cellular carrier agents and
rural carriers, as well as auto dealers and smaller consumer
electronics retailers, with product sales and support available
through http://www.pciwholesale.com/and
http://www.pcidropship.com/among other B2B oriented Web sites.


THINKFILM LLC: Creditors Seek Summary Judgment
----------------------------------------------
Alex Ben Block, writing for The Hollywood Reporter, said eight
creditors last week filed a motion for a summary judgment in the
involuntary bankruptcy case of ThinkFilm LLC, which would mean
immediately forcing that entity into bankruptcy.

The creditors say it is clear that owner David Bergstein and his
companies have "engaged in a concerted effort to resist all
discovery efforts."  The creditors said that ThinkFilm assets have
been moved to avoid seizure, the company is not staying current on
its debts as required by law, and that it is being driven into
true insolvency.

The report says the creditors asked for an expedited decision, but
Judge Barry Russell ruled against them last week, saying they will
have to wait for legal opposition to be filed.  The next planned
court date is set for Oct. 6.

The report also notes that Judge Russell is also expected to rule
at the Oct. 6 hearing on Mr. Bergstein's request to force one of
the creditors, Aramid, to put up a $25 million bond.  At previous
hearings, the judge indicated he was unlikely to force Aramid to
put up a bond in case it loses.

The Hollywood Reporter also relates that Judge Russell last week
ruled that Mr. Bergstein's main holding company, Pangea Media
Group, must turn over computer servers containing images of
documents and business records to Mr. Durkin.  The judge ordered
the trustee be allowed to finally look at the info, which
Bergstein has resisted for the past several months.  Pangea was to
turn over the servers by the end of business Wednesday and will
have two weeks to provide a log of information they seek to have
excluded from examination.

                            New Lawyer

The Hollywood Reporter further stated that Joseph Eisenberg, Esq.,
of Jeffer Mangels Butler & Marmaro, has taken over from David
Weinstein, Esq., of Richardson & Patel, as main lawyer for the
five "alleged debtor" companies.  In an interview, Mr. Eisenberg
said that the court-ordered examinations by Mr. Durkin of Mr.
Bergstein and his sometime business partner, construction exec
Ronald Tutor, have not been completed.

                        About CapCo et al.

CapCo Group LLC and four other companies controlled by David
Bergstein are part of a wider network of entities that distribute
and finance films.  Among the approximately 1,300 films they have
the rights to are "Boondock Saints" and "The Wedding Planner."

Several creditors filed for involuntary Chapter 11 against the
companies on March 17, 2010 -- CT-1 Holdings LLC (Bankr. C.D.
Calif. Case No. 10-19927); CapCo Group, LLC (Bankr. C.D. Calif.
Case No. 10-19929); Capitol Films Development LLC (Bankr. C.D.
Calif. Case No. 10-19938); R2D2, LLC (Bankr. C.D. Calif. Case No.
10-19924); and ThinkFilm LLC (Bankr. C.D. Calif. Case No. 10-
19912).  Judge Barry Russell presides over the cases.  The
Petitioners are represented by David L. Neale, Esq., at Levene
Neale Bender Rankin & Brill LLP.


TRIBUNE COMPANY: Mediator to Assist in Plan Negotiations
--------------------------------------------------------
Tribune Company welcomed the appointment of a mediator who will
assist negotiations with various creditor constituencies as the
company's Chapter 11 process moves forward.

"We're pleased that the court has appointed a mediator--this is a
clear sign that reaching consensus is a valuable part of this
process," said Randy Michaels, Tribune's chief executive officer.

The U.S. Bankruptcy Court for the District of Delaware today
appointed federal judge Kevin Gross as mediator.  Gross is
currently a U.S. Bankruptcy judge for the District of Delaware in
Wilmington, DE.

"We welcome Judge Gross' participation in the process and we look
forward to his wisdom and guidance as we move forward," said
Michaels.

In addition, Tribune's Board of Directors has named a special
committee to oversee the company's Chapter 11 process.  The
committee is composed of four independent directors: Mark Shapiro
(Chairman), Jeffrey Berg, Maggie Wilderotter and Frank Wood.

                         About Tribune Co

Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.

The Company and 110 of its affiliates filed for Chapter 11
protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141).  The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. And Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent.  As
of December 8, 2008, the Debtors have $7,604,195,000 in total
assets and $12,972,541,148 in total debts.

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


UAL CORP: DOT Issues Route Transfer Exemption
---------------------------------------------
United Air Lines and Continental Airlines completed one of the
final steps in the regulatory process for the proposed merger.
The U.S. Department of Transportation on Monday issued a route
transfer exemption for United Airlines, Continental and
Continental Micronesia.

Under the law and DOT policy, when two air carriers holding
international route authority come under common ownership and
control, prior approval is required by DOT.

"We appreciate the thorough review by both the Department of
Transportation and the Department of Justice, and look forward to
the shareholder vote on September 17," said UAL CEO Glenn Tilton.

Some information DOT requires for a final determination, such as
the composition of the Board of Directors of the new, combined
company, will not be available until the merger closes.
Therefore, United and Continental requested the exemption that DOT
granted Monday.  This allows for the merger to close while the
carriers continue to provide updated information.  Final approval
for transfer of international certificates and all other economic
authority is expected in the months ahead.

On August 27, 2010, the Antitrust Division of the United States
Department of Justice completed their review and determined that
they have no objections to the carriers' merger.

As part of the review, United and Continental have agreed to the
transfer of slots and related assets to Southwest Airlines,
including 18 pairs of takeoff and landing slots at Newark.  "As
you know, we vigorously compete with Southwest throughout our
network. Since the slot pair transfer is expected to have minimal
impact on our combined route network, we are not changing the
previously announced synergy estimates," Mr. Tilton said last
week.

United and Continental will ask shareholders to approve the merger
at separate meetings scheduled for September 17.

                    About Continental Airlines

Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations.  Continental is a member of Star
Alliance.  Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.

In May 2010, Continental announced an agreement to merge with UAL
Corp.  The merger has not yet been completed.

In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified.  However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.

Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.

                       About UAL Corporation

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest air
carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts.  Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors.  Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006.  The
Company emerged from bankruptcy on Feb. 1, 2006.

Reorganized UAL Corp. carries a 'B3' corporate family and
probability of default ratings from Moody's, 'B-' long term
foreign issuer credit rating from Standard & Poor's, and 'CCC'
long term issuer default rating from Fitch.

At June 30, 2010, UAL had $20.134 billion in total assets against
total current liabilities of $8.573 billion, long-term debt of
$6.281 billion, long-term obligations under capital leases of
$1.01 billion, other liabilities and deferred credits of
$7.022 billion, and a stockholders' deficit of $2.756 billion.


UAL CORP: DOJ Review Completed; Merger to be Completed Oct. 1
-------------------------------------------------------------
United Airlines and Continental Airlines said they have been
notified by the Antitrust Division of the United States Department
of Justice of the termination of its Hart-Scott-Rodino Act review
and the closing of its investigation of the airlines' pending
merger.

"We are pleased to have achieved this critical milestone and look
forward to our respective stockholders' votes next month,
following which we expect to be on track to close our merger by
October 1st," said Glenn Tilton, UAL Corporation chairman,
president and CEO. "The combination of United and Continental will
create a world class airline, which will deliver an industry
leading network for our customers and the communities we serve,
career opportunities for our people, and value and return for our
stockholders."

"The completion of DOJ's review is an important step on our
journey of creating the world's leading airline, benefiting our
customers, co-workers, communities and stockholders," said Jeff
Smisek, Continental's chairman, president and CEO.  "The DOJ's
decision permits us to clear one of the last regulatory hurdles to
closing our merger."

Continental and United also would like to acknowledge the efforts
of the United States Department of Transportation and the Federal
Aviation Administration as the companies work through the merger
process.  In addition, Continental and United remain engaged in
discussions with the state attorneys general who are reviewing the
merger, and hope to conclude those discussions expeditiously with
a positive outcome.

Continental and United announced an all-stock merger of equals on
May 3, 2010, and currently expect the transaction to close by
Oct. 1, 2010, subject to stockholder approvals and customary
closing conditions.  Both companies have scheduled special
stockholder meetings on Sept. 17, 2010, for approval of the
merger.

United and Continental received clearance from the European
Commission on the airlines' proposed merger in July, which
noted its investigation found the transaction would not raise
competitive concerns in Europe or on trans-Atlantic routes.

                    About Continental Airlines

Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations.  Continental is a member of Star
Alliance.  Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.

In May 2010, Continental announced an agreement to merge with UAL
Corp.  The merger has not yet been completed.

In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified.  However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.

Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.

                       About UAL Corporation

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest air
carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts.  Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors.  Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006.  The
Company emerged from bankruptcy on Feb. 1, 2006.

Reorganized UAL Corp. carries a 'B3' corporate family and
probability of default ratings from Moody's, 'B-' long term
foreign issuer credit rating from Standard & Poor's, and 'CCC'
long term issuer default rating from Fitch.

At June 30, 2010, UAL had $20.134 billion in total assets against
total current liabilities of $8.573 billion, long-term debt of
$6.281 billion, long-term obligations under capital leases of
$1.01 billion, other liabilities and deferred credits of
$7.022 billion, and a stockholders' deficit of $2.756 billion.


US FIDELIS: Missouri Seeks Chapter 11 Trustee
---------------------------------------------
American Bankruptcy Institute reports that the state of Missouri
wants US Fidelis Inc. to be run by a chapter 11 trustee, claiming
that the seller of extended automotive service contracts was
grossly mismanaged prior to filing for bankruptcy in March.

Wentzville, Missouri-based US Fidelis, Inc., is a marketer of
vehicle service contracts developed by independent and unrelated
companies.  The Company filed for Chapter 11 bankruptcy protection
on March 1, 2010 (Bankr. E.D. Mo. Case No. 10-41902).  Robert E.
Eggmann, Esq., at Lathrop & Gage, assists the Company in its
restructuring effort.  According to the schedules, the Company has
assets of $74,386,836, and total debts of $25,770,655.


VALENCE TECHNOLOGY: Berg & Berg Buys 7.2 Million Shares
-------------------------------------------------------
Berg & Berg Enterprises LLC purchased on Aug. 26, 2010, 7,247,882
shares of Valence Technology Inc. common stock at a price per
share of $0.76, the closing bid price of the Company's common
stock on the purchase date.  The aggregate purchase price for the
shares was $5,508,390.

Payment of the purchase price consisted of $3,000,000.00 in
cash and surrender of the promissory note issued on July 23, 2010,
to Berg and Berg, under which $2,500,000.00 in principal and
$8,390 in accrued interest was outstanding.

On July 27, 2010, the Company's Board of Directors authorized the
Company to engage in financing transactions -- including either
loans or the sale of shares -- with Berg & Berg, Carl E. Berg, or
their affiliates from time to time in an aggregate amount of up to
$10,000,000, if, and when needed by the Company, and as may be
mutually agreed.

The managing member of Berg & Berg is Carl E. Berg, who is the
Chairman of the Company's Board of Directors and the principal
stockholder of the Company.

A full-text copy of the letter of agreement is available for free
at http://ResearchArchives.com/t/s?6a99

                     About Valence Technology

Austin, Texas-based Valence Technology, Inc. (NASDAQ: VLNC) --
http://www.valence.com/-- is a global leader in the development
of safe, long-life lithium iron magnesium phosphate energy storage
solutions and provides the enabling technology behind some of the
world's most innovative and environmentally friendly applications.
Valence Technology has its Research & Development Center in
Nevada, its Europe/Asia Pacific Sales office in Northern Ireland
and global fulfillment centers in North America and Europe.

The Company's balance sheet at June 30, 2010, showed
$22.75 million in total assets, $94.51 million in total
liabilities, and a stockholders' deficit of $80.37 million.

PMB Helin Donovan LLP expressed substantial doubt about Valence
Technology Inc.'s ability as a going concern following the
Company's fiscal 2010 results.  The Company has incurred operating
losses each year since its inception in 1989 and had an
accumulated deficit of $581 million as of March 31, 2010.  For the
fiscal years ended March 31, 2010, 2009, and 2008 the Company
sustained net losses available to common stockholders of
$23.2 million, $21.4 million, and $19.6 million, respectively.


VAREL FUNDING: S&P Gives Negative Outlook; Keeps 'CCC+' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Varel
Funding Corp. to negative from developing and affirmed the 'CCC+'
corporate credit rating.  Additionally, S&P lowered the issue-
level rating on Varel's senior secured debt to 'CCC+' (the same as
the corporate credit rating on the company) from 'B-' and revised
to the recovery rating on this debt to '3' (indicating S&P's
expectation for meaningful [50%-70%] recovery) from '2'.

"The outlook revision reflects S&P's view that Varel's recent
improvement in financial performance is not sustainable because
S&P expects that low natural gas prices will lead to a decline in
drilling activity in 2011 and thus, weak operating results," said
Standard & Poor's credit analyst Kenneth Cox.  In addition, the
improvement in the company's operating results was weaker than S&P
had expected and its liquidity has not improved to levels that are
meaningful enough to provide a cushion for an industry downturn.
As a drill bit manufacturer, Varel's operations are closely tied
to the rig count, and any decline in the level of drilling
activity would put additional pressure on the company's thin
liquidity.

The ratings on Varel Funding Corp., a special-purpose entity
formed solely to enter into a credit agreement and sale-leaseback
agreement with Varel Holdings Inc., reflect Varel's stained
liquidity, small market position in drill bit manufacturing,
highly leveraged capital structure, and cyclical end markets.
Standard & Poor's Ratings Services' ratings on Varel also reflect
the company's geographically diverse revenue base, and low
capital-spending requirements.

Varel manufactures drill bits for the oil and gas and mining
industries.  The company is organized into three segments:
polycrystalline diamond compact drill bits (47% of revenue),
roller cone drill bits (29% of revenue), and drill bits used in
mining and industrial activities (23% of revenue).  Historically,
Varel has derived its revenue base largely from roller cone drill
bit sales within the U.S. However, in the past few years,
management has increased revenue and market share through
expansion into PDC drill bits and international markets.

Varel's limited liquidity is problematic, and the potential for a
difficult operating environment in 2011 could further hamper the
company's ability to improve its cash flow.  S&P could take a
negative ratings action if the company does not generate
sufficient cash flow to cover its fixed charges or liquidity
deteriorates beyond current levels.  Currently, the potential for
positive ratings actions is unlikely.


VERTIS HOLDINGS: Extends Exchange Offers Until Sept. 30
-------------------------------------------------------
Vertis Holdings, Inc., on Wednesday announced several important
updates regarding its previously announced comprehensive
refinancing of substantially all of its principal operating
subsidiary Vertis, Inc.'s outstanding secured and unsecured
indebtedness.  The purpose of the Refinancing Transactions is to
reduce overall debt and interest costs which would improve Vertis'
financial condition.

In an effort to achieve the goals of the Refinancing Transactions,
Holdings announced its intention to seek to enter into a new
$500.0 million first lien term loan with a syndicate of lenders
and that it continues to seek to enter into a new $190.0 million
revolving credit facility, thereby updating certain previously
disclosed components of the Refinancing Transactions.

Holdings also announced that it is pursuing certain amendments to
the terms and conditions of Vertis' previously commenced (i)
private exchange offer, tender offer and consent solicitation
relating to its 13-1/2% Senior Pay-in-Kind Notes due 2014, and
(ii) private exchange offer and consent solicitation relating to
its 18-1/2% Senior Secured Second Lien Notes due 2012.  These
amendments include changing the consideration offered to holders
of Notes.

The consideration offered to holders of Senior Notes may be
changed to solely consist of common stock of Holdings, such that
if 100% of the Senior Notes are tendered, holders would own
approximately 33% of Holdings common stock following the
Refinancing Transactions. The consideration offered to holders of
Existing Second Lien Notes may be changed to a combination of new
senior secured notes of Vertis and common stock of Holdings, such
that if 100% of the Existing Second Lien Notes are tendered,
holders would own $200 million of new senior secured notes and
approximately 65% of Holdings common stock. Vertis continues to
evaluate these changes and there can be no assurance that Vertis
will adopt these amendments or that Vertis will not make other
changes to the Refinancing Transactions.

Holdings also announced that it will subsequently make available
certain important supplemental materials regarding the Offers. The
supplemental materials will contain important updates regarding
any changes to the consideration offered to Holders, any
expiration of the Withdrawal Period, any changes to the New
Expiration Time and other information regarding Vertis and the
Offers.  Holders are advised to carefully review the supplemental
materials when available.

As a result, Holdings announced the extension of the expiration
dates of the Offers from 5:00 p.m., New York City time, on August
31, 2010, to 5:00 p.m., New York City time, on September 30, 2010.

Effective immediately, holders who have tendered their Notes
pursuant to the Offers are being given the opportunity to withdraw
their tendered Notes and revoke their consents until further
notice.  Holders who validly withdraw their Notes and revoke their
consents will not receive the consideration for their Notes in the
applicable Offers unless such Notes are validly re-tendered in the
applicable Offers at or prior to the New Expiration Time.

As of 5:00 p.m., New York City time, on August 31, 2010,
approximately $187.6 million aggregate principal amount -- or
approximately 77.5% -- of the Senior Notes were validly tendered
in the Senior Notes Offer and the related consents thereby
delivered, and not validly withdrawn. In addition, as of 5:00
p.m., New York City time, on August 31, 2010, approximately $350.8
million aggregate principal amount (or approximately 92.2%) of the
Existing Second Lien Notes -- not including Existing Second Lien
Notes held by Avenue Capital -- were validly tendered in the
Second Lien Notes Exchange Offer and the related consents thereby
delivered, and not validly withdrawn.

                           About Vertis

Headquartered in Baltimore, Maryland, Vertis Holdings, Inc. --
http://www.vertisinc.com/-- provides targeted print advertising
and direct marketing solutions to America's retail and consumer
services companies.

Vertis Holdings' Vertis Inc. and its subsidiaries disclosed that
as of June 30, 2010, it had $1,467,320,000 in total assets,
including $257,193,000 in cash and cash equivalents; and
$1,493,277,000 in total liabilities, including $265,734,000 in
total current liabilities, and a stockholders' deficit of
$25,957,000.

The company and its six affiliates previously filed for Chapter 11
protection on July 15, 2008 (Bankr. D. Del. Case No. 08-11460).
In August 2008, it emerged from bankruptcy, after completing a
merger with ACG Holdings.

                           *     *     *

As reported by the Troubled Company Reporter on April 27, 2010,
Moody's Investors Service assigned Vertis, Inc., a Caa1 Corporate
Family Rating, Caa1 Probability of Default Rating and SGL-3
Speculative Grade Liquidity rating.  Moody's said Vertis' Caa1 CFR
reflects the company's high leverage, thin coverage of total
interest costs, and long-term price and volume pressure on the
print-based advertising and direct marketing products and services
that comprise the majority of the company's revenue.  Moody's
noted Vertis' proposed refinancing transactions would be a second
restructuring closely on the heels of Vertis' 2008 bankruptcy
reorganization.


WASHINGTON MUTUAL: Examiner Taps Cole Schotz as Counsel
-------------------------------------------------------
Joshua R. Hochberg, the examiner appointed in the Chapter 11
cases of Washington Mutual Inc. and WMI Investment Corp., sought
and obtained the Court's authority to employ Cole, Schotz,
Meisel, Forman & Leonard, P.A., as his Delaware counsel,
effective as of July 26, 2010.

The Examiner has selected Cole Schotz to serve as his Delaware
counsel in the Debtors' Chapter 11 cases because professionals at
the firm possess extensive knowledge and considerable experience
in the fields of bankruptcy, insolvency, debtors' and creditors'
rights, litigation and business reorganizations under Chapter 11
of the Bankruptcy Code.

As Delaware counsel, Cole Schotz will assist the Examiner in
faithfully executing his duties, pursuant to Section 11 06(a) of
the Bankruptcy Code, to render these types of services, among
others, as directed by the Examiner:

  (a) Taking all necessary actions to assist and advise the
      Examiner with respect to the discharge of his duties and
      responsibilities under the Examiner Order and the
      Bankruptcy Code in the Chapter 11 cases;

  (b) Assisting the Examiner in preparing pleadings and
      applications as may be necessary in the discharge of the
      Examiner's duties;

  (c) Representing the Examiner at all hearings and other
      proceedings before the Court and any appellate courts; and
      advocating and protecting the interests of the Examiner
      before the courts and the United States Trustee;

  (d) Representing the Examiner in any dealings he may have with
      various governmental and regulatory authorities;

  (e) Representing the Examiner in any dealings he may have with
      the Debtors, the Official Committees, general creditors or
      any third party concerning matters related to the Debtors'
      estates;

  (f) Assisting the Examiner in preparing his work plan and
      budget;

  (g) Assisting the Examiner in retaining and directing the work
      of forensic accountants and investigative personnel;

  (h) Assisting with interviews and examinations in connection
      with the Investigation;

  (i) Assisting the Examiner in preparing his report; and

  (j) Performing all other necessary legal services and
      providing all other necessary legal advice to the Examiner
      in connection with the Chapter 11 Cases including
      assisting the Examiner in undertaking additional tasks
      that the Court may direct.

Cole Schotz will work with any other professionals engaged by
the Examiner to avoid duplication of effort and to move the
investigation forward as quickly, harmoniously and efficiently as
possible, according to Mr. Hochberg.

Cole Schotz's professionals will be paid based on these hourly
rates for the contemplated services:

    Professionals                Rates
    -------------                -----
    Members                   $380 - $725
    Associates                $240 - $415
    Paralegals                $145 - $230

J. Kate Stickles, Esq., a member at Cole Schotz, assures the
Court that her firm is a "disinterested person", as that term is
defined in Section 101 (14) of the Bankruptcy Code.

                       About Washington Mutual

Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries.  The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.

Washington Mutual Bank was taken over September 25 by U.S.
government regulators.  The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively).  Wamu owns
100% of the equity in WMI Investment.  Weil Gotshal & Manges
represents the Debtors as counsel.  When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695.  WMI Investment estimated assets of
$500,000,000 to $1,000,000,000 with zero debts.

Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation.  Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the Chapter 11 case.

Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).


WESTERN UTAH: Pure Nickel Says Lawsuit Without Merit
----------------------------------------------------
Pure Nickel Inc. disclosed that Western Utah Copper Company filed
an action in bankruptcy court in Utah, U.S., against Nevada Star
Resource Corp and Pure Nickel.  This action is essentially
identical to an amendment to WUCC's counterclaims that WUCC
previously proposed to make to the existing counterclaims that it
previously filed in response to our June 2009 action.  "In the
past we have commented in our annual and quarterly statements,
specifically our Management Discussion and Analysis, that we
believe WUCC's existing counterclaims in that action are without
merit.  We continue to believe the counterclaims and the August 27
action are without merit.  We do not anticipate the need to make
provision for this matter."

Pure Nickel is a mineral exploration company with a diverse
collection of mineral exploration projects in North America.

                       About Western Utah

Western Utah Copper Company operates copper mines.  The Company is
based in Milford, Utah. Western Utah Copper Company operates as a
subsidiary of Copper King Mining Corp.

On May 18, 2010, Western Utah Copper Company filed a voluntary
petition for reorganization under Chapter 11 in Reno, Nevada
(Bankr. D. Nev. Case No. 10-51913).


WINALTA INC: Gets Fourth Extension of CCAA Stay Until Sept. 7
-------------------------------------------------------------
Winalta Inc. disclosed that the Court of Queen's Bench of Alberta,
Judicial Centre of Edmonton has granted an extension, until
September 7, 2010, of the initial Order granted on April 26, 2010
pursuant to which Winalta was granted creditor protection under
the Companies' Creditors Arrangement Act.  The extension was
supported by Deloitte & Touche, Inc., the Court-appointed Monitor
of Winalta's CCAA process and was not objected to by counsel to
Winalta's secured creditor, HSBC Bank of Canada.

Winalta Inc. is an integrated company with three main operating
divisions, Homes, Industrial, and Manufacturing. The Homes
Division sells CSA approved homes via retail centers, communities
and supply arrangements.  The Oilfield Division leases portable
industrial accommodations and catering services to the energy
sector.

The TSX Venture Exchange has neither approved nor disapproved the
contents of this news release.  The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this
release.

                        About Winalta Inc

Winalta Inc. is an integrated company with three main operating
divisions, Homes, Industrial, and Manufacturing.  The Homes
Division sells CSA approved homes via retail centers, communities
and supply arrangements.  The Oilfield Division leases portable
industrial accommodations and catering services to the energy
sector.


WORLDCOM INC: Judge Weighs IP Claims Against Verizon
----------------------------------------------------
The judge who oversaw the bankruptcy of WorldCom Inc. is weighing
whether to kill off tens of millions of dollars of patent
infringement claims brought against an affiliate of WorldCom
successor Verizon Business Global LLC, Bankruptcy Law360 reports.

Eon Corp. IP Holdings LLC argued before U.S. Bankruptcy Court for
the Southern District of New York Judge Arthur J. Gonzalez on
Tuesday against Verizon's efforts to enforce a confirmation,
according to Law360.

WorldCom, Inc., a Clinton, MS-based global communications company,
filed for chapter 11 protection on July 21, 2002 (Bankr. S.D.N.Y.
Case No. 02-13532).  On March 31, 2002, WorldCom listed
$103,803,000,000 in assets and $45,897,000,000 in debts.  The
Bankruptcy Court confirmed WorldCom's Plan on Oct. 31, 2003, and
on Apr. 20, 2004, the Company formally emerged from U.S. Chapter
11 protection as MCI, Inc.  On Jan. 6, 2006, MCI merged with
Verizon Communications, Inc.  MCI is now known as Verizon
Business, a unit of Verizon Communications.


WORLDWIDE DIRECT: Court OKs Trustee's Motion for Summary Judgment
-----------------------------------------------------------------
Goldin Associates, L.L.C., as the Liquidating Trustee of Worldwide
Direct Liquidation Trust, filed with the United States Bankruptcy
Court for the District of Delaware a motion for summary judgment
on the complaint filed against it by Robert H. Lorsch, Richard M.
Teich, and Ahmed O. Alfi.  After considering the arguments of both
parties, the Court granted the Liquidating Trustee's Motion.

The complaint seeks declaratory relief to determine Robert H.
Lorsch, Richard M. Teich, and Ahmed O. Alfi's interests in the
Worldwide Direct Liquidation Trust, which they believe is a trust
created by a settlement agreement resolving a number securities
class action lawsuits to which they are included as defendants.

On April 1, 2010, the Liquidating Trustee filed a motion for
summary judgment contending that, as a matter of law, no trust was
created by the Settlement Agreement and the D&O Plaintiffs have no
valid claims under the plain language of the Settlement Agreement.

A copy of the court's memorandum opinion is available at:

http://www.leagle.com/unsecure/page.htm?shortname=inbco20100827685


* Bank Closings Emphasize Need for Private Sources of Capital
-------------------------------------------------------------
The recent surge in bank failures is worsening the nation's
liquidity crisis and may trigger more bankruptcies for commercial
real estate owners in need of financing, according to Andy
Bogdanoff, chairman of Remington Capital.

"With $1.2 trillion in commercial real estate debt scheduled to
mature over the next few years and most U.S. banks unable or
unwilling to extend new credit, the need for large amounts of
private commercial capital has never been greater," Bogdanoff
said.

Remington is an international commercial real estate investment
banking company, specializing in providing access to a global
network of commercial capital sources, including hundreds of
active private lenders and investors. Since 1993, Remington has
arranged more than $5 billion in financing across the capital
stack for all types of commercial property.

"There have been about 250 bank failures involving hundreds of
billions of dollars in assets since the start of the financial
crisis in 2007," Bogdanoff said.  "And with hundreds of additional
bank failures expected over the next few years, many commercial
real estate owners may be unable to finance or refinance
properties through traditional banking sources.

"Alternatively, there are billions of dollars in private capital
available waiting on the sidelines from lenders and investors
ready to step in to finance, refinance or recapitalize all types
of commercial property having intrinsic value," Bogdanoff said.
"Over the years, Remington has built solid relationships with
hundreds of these capital sources, including private equity funds,
institutional and individual investors, certain corporations and
many others.

"This available pool of alternative capital represents a unique
opportunity for the commercial real estate community to step
outside its normal comfort zone and explore new avenues of
commercial financing in these challenging times."


* Institutions on FDIC's "Problem List" Rose to 829
---------------------------------------------------
The Federal Deposit Insurance Corporation said the number of
institutions on its "Problem List" rose from 775 to 829.  However,
the total assets of "problem" institutions declined from $431
billion to $403 billion.  Also, while the number of "problem"
institutions is the highest since March 31, 1993, when there were
928, it is the smallest net increase since the first quarter of
2009.

The FDIC said 45 insured institutions failed during the second
quarter.

On Tuesday, the FDIC said commercial banks and savings
institutions insured by the agency reported an aggregate profit of
$21.6 billion in the second quarter of 2010, a $26 billion
improvement from the $4.4 billion net loss the industry posted in
the second quarter of 2009.  This is the highest quarterly
earnings total since the third quarter of 2007.  Despite the
improvement, earnings remain below historical norms.  On the
positive side, one in five institutions reported a net loss for
the quarter, compared to 29% a year earlier. And, the average
return on assets, a basic yardstick of profitability, rose to
0.65%, from negative 0.13% a year ago.

"This is the best quarterly profit for the banking sector in
almost three years," said FDIC Chairman Sheila C. Bair.  "Nearly
two out of every three banks are reporting better year-over-year
earnings.  As long as economic conditions remain supportive, most
institutions should maintain profitability and increase their
capacity to lend."

She added, "Without question, the industry still faces challenges.
Earnings remain low by historical standards, and the numbers of
unprofitable institutions, problem banks and failures remain high.
But the banking sector is gaining strength. Earnings have grown,
and most asset quality indicators are moving in the right
direction."

The primary factor contributing to the year-over-year improvement
in quarterly earnings was a reduction in provisions for loan
losses. While quarterly provisions remained high, at $40.3
billion, they were $27.1 billion (40.2%) lower than a year
earlier. Net interest income was $8.5 billion (8.6%) higher than a
year ago, and noninterest expenses were $1.5 billion (1.5%) lower.

The FDIC noted signs of improvement in asset-quality trends as the
amount of loans and leases that were noncurrent (90 days or more
past due or in nonaccrual status) fell for the first time since
the first quarter of 2006. Insured banks and thrifts charged off
$49 billion in uncollectible loans during the quarter, down $214
million (0.4%) from a year earlier. This is the first time since
the fourth quarter of 2006 that net charge-offs posted a year-
over-year decline.

Total loans and leases declined by $107.5 billion (1.4%) during
the quarter.  Total assets fell by $136.2 billion (1.0%).

The FDIC also said loan-loss reserves declined for the first time
since the fourth quarter of 2006. Although almost two out of every
three banks (62.1%) increased their loan-loss reserves in the
quarter, the industry's total reserves declined by $11.8 billion
(4.5%), as a number of large banks reduced their loan-loss
provisions. The industry's ratio of reserves to total loans and
leases fell from 3.50% to 3.40% during the quarter, but this is
still the second-highest ratio in the 63 years for which data are
available. "Particularly given economic uncertainties, we believe
all banks should continue to exercise caution and maintain strong
reserves," Chairman Bair said.

The industry's "coverage ratio" of reserves to noncurrent loans
improved for a second consecutive quarter, from 64.9% to 65.1%, as
the decline in noncurrent loans outpaced the reduction in loss
reserves.

The Deposit Insurance Fund balance improved for the second quarter
in a row.  The DIF balance -- the net worth of the fund --
improved from negative $20.7 billion to negative $15.2 billion
during the second quarter. The improvement stemmed primarily from
assessment revenues and from a reduction in the contingent loss
reserve, which covers the costs of expected failures. The reserve
declined from $40.7 billion to $27.5 billion during the quarter.

The FDIC's liquid resources -- cash and marketable securities --
remained strong. Liquid resources stood at $44 billion at the end
of the second quarter, a decline from $63 billion at the end of
the first quarter. The decline in cash balances reflects
previously anticipated outlays, primarily related to three bank
failures in Puerto Rico on April 30th.

"As we expected," Chairman Bair said, "demands on cash have
increased this year. But our projections indicate that our current
resources are more than enough to resolve anticipated failures."

Total insured deposits declined by 0.7% ($39 billion) during the
quarter.

Congress created the Federal Deposit Insurance Corporation in 1933
to restore public confidence in the nation's banking system. The
FDIC insures deposits at the nation's 7,830 banks and savings
associations and it promotes the safety and soundness of these
institutions by identifying, monitoring and addressing risks to
which they are exposed.  The FDIC receives no federal tax dollars
-- insured financial institutions fund its operations.


* SEC Issues Report Cautioning Credit Rating Agencies
-----------------------------------------------------
The Securities and Exchange Commission on Tuesday issued a report
cautioning credit rating agencies about deceptive ratings conduct
and the importance of sufficient internal controls over the
policies, procedures, and methodologies the firms use to determine
credit ratings.

The SEC's Report of Investigation stems from an Enforcement
Division inquiry into whether Moody's Investors Service, Inc. --
the credit rating business segment of Moody's Corporation --
violated the registration provisions or the antifraud provisions
of the federal securities laws.

The Report says that because of uncertainty regarding a
jurisdictional nexus between the United States and the relevant
ratings conduct, the Commission declined to pursue a fraud
enforcement action in this matter. The Report notes that the
recently enacted Dodd-Frank Wall Street Reform and Consumer
Protection Act provided expressly that federal district courts
have jurisdiction over SEC enforcement actions alleging violations
of the antifraud provisions of the securities laws when conduct
includes significant steps, or a foreseeable substantial effect,
within the United States. The Report also notes that the Dodd-
Frank Act amended the securities laws to require nationally
recognized statistical rating organizations (NRSROs) to
"establish, maintain, enforce, and document an effective internal
control structure governing the implementation of and adherence to
policies, procedures, and methodologies for determining credit
ratings."

"Investors rely upon statements that NRSROs make in their
applications and reports submitted to the Commission, particularly
those that describe how the NRSRO determines credit ratings," said
Robert Khuzami, Director of the SEC's Division of Enforcement. "It
is crucial that NRSROs take steps to assure themselves of the
accuracy of those statements and that they have in place
sufficient internal controls over the procedures they use to
determine credit ratings."

According to the Report, an MIS analyst discovered in early 2007
that a computer coding error had upwardly impacted by 1.5 to 3.5
notches the model output used to determine MIS credit ratings for
certain constant proportion debt obligation notes. Nevertheless,
shortly thereafter during a meeting in Europe, an MIS rating
committee voted against taking responsive rating action, in part
because of concerns that doing so would negatively impact MIS's
business reputation.

MIS applied in June 2007 to be registered with the Commission as
an NRSRO. The Report notes that the European rating committee's
self-serving consideration of non-credit related factors in
support of the decision to maintain the credit ratings constituted
conduct that was contrary to the MIS procedures used to determine
credit ratings as described in the MIS application to the SEC.

In the Report of Investigation, the Commission makes clear that
credit rating agencies registered with the SEC must implement and
follow appropriate internal controls and procedures governing
their determination of credit ratings, and must also take
reasonable steps to ensure the accuracy of statements in
applications or reports submitted to the SEC.

The Report cautions NRSROs that, when appropriate, the Commission
will pursue antifraud enforcement actions against deceptive
ratings conduct, including actions pursuant to the Dodd-Frank Act
provisions regarding conduct that physically occurs outside the
United States but involves significant steps or foreseeable
effects within the U.S.

Under Section 21(a) of the Securities Exchange Act of 1934, the
Commission may investigate violations of the federal securities
laws and at its discretion "publish information concerning any
such violations." David Frohlich, Margaret Cain, Roger Paszamant,
and Dean Conway conducted the SEC's investigation. The Commission
acknowledges the assistance and cooperation of foreign regulatory
authorities in Europe in this investigation.


* DLA Piper's M. Williams Joins Sheppard Mullin
-----------------------------------------------
Michele E. Williams has joined the Washington, D.C. and New York
offices of Sheppard, Mullin, Richter & Hampton LLP as a partner in
the firm's Real Estate and Finance & Bankruptcy practice groups.
Williams most recently practiced at DLA Piper in Washington, D.C.
and New York.

"We are very excited to welcome Michele. She is an impressive
attorney who establishes the firm's real estate transactional
presence on the East Coast, which has been a strategic goal of the
firm, coupled with corporate finance capabilities," said Guy N.
Halgren, chairman of Sheppard Mullin.

Commented Williams, "Sheppard Mullin offers an excellent platform
to continue to grow my practice, as well as an amazing firmwide
collegial culture.  I am impressed by the firm's real estate and
finance groups, and look forward to expanding those practices on
the East Coast.  I'm also delighted to be reunited with friends
and former colleagues John Chierichella, Anne Perry and Jonathan
Aronie in D.C."

"Michele will be a great asset to the D.C. and New York offices,"
commented Ed Schiff, managing partner of Sheppard Mullin's
Washington, D.C. office.  "She brings an incredible combination of
industry expertise and adds a new real estate transaction and
finance practice to our East Coast offices, which compliments our
well-established banking, corporate and commercial litigation
practices."

Williams focuses her practice in real estate, project and
corporate finance both in the U.S. and internationally.  She
represents U.S. real estate funds in connection with their fund
formation, funding, and investment activities.  Williams also
represents U.S. real estate investors in the acquisition,
financing, and leasing of commercial properties domestically and
abroad.

Throughout her career, Williams has been responsible for the
structuring, negotiation and execution of highly structured
corporate financings involving public and private debt and equity
offerings, minority equity investments, private equity
investments, partnerships and joint ventures.  She has also
represented multinational corporations, financial institutions,
institutional investors and private investors in merger and
acquisition financings, leveraged recapitalizations, mezzanine
financings and senior bank financings.

Before beginning her legal career, Williams was a banker with
Irving Trust Company, New York; Riggs National Bank, where she was
an assistant vice president in the commercial banking group; and
Bank of America, where she was a vice president in the corporate
group.

Williams received a J.D., cum laude, from Georgetown University
Law Center and a B.S.F.S., magna cum laude, from Georgetown
University.

Sheppard Mullin has 40 attorneys based in its Washington, D.C.
office and 35 attorneys based in New York.  The firm's Real Estate
practice group includes close to 70 attorneys firmwide and the its
Finance practice includes 60 attorneys.

           About Sheppard, Mullin, Richter & Hampton LLP

Sheppard Mullin -- http://www.sheppardmullin.com/-- is a full
service AmLaw 100 firm with 550 attorneys in 11 offices located in
the United States and Asia. Since 1927, companies have turned to
Sheppard Mullin to handle corporate and technology matters, high
stakes litigation and complex financial transactions.  In the
U.S., the firm's clients include more than half of the Fortune
100.


* SmithAmundsen Greatly Expands Financial Services Practice
-----------------------------------------------------------
SmithAmundsen LLC disclosed the expansion of financial services
offered to clients with the addition of two new partners and one
associate.  Patrick M. Jones and Karen A. White have joined
SmithAmundsen's Chicago office as partners, and Sandra A. Franco
has joined the firm's Chicago office as an associate.

"We have looked for ways to expand the scope of financial services
we offer clients by looking for the right opportunities to add
expertise and depth to the firm," said Glen Amundsen, Chairman and
CEO of SmithAmundsen. "Our announcement today is one more step
towards furthering the strategic objective of helping serve our
business clients."

Mr. Jones has extensive experience in corporate restructuring,
creditors' rights, and insolvency-related commercial litigation.
He regularly represents debtors, secured lenders, creditors'
committees, and individual creditors in chapter 11 bankruptcy
cases.

In addition, Mr. Jones counsels clients on fiduciary duties in the
zone of insolvency and lender protections in single-asset real
estate restructurings. Prior to joining SmithAmundsen, Mr. Jones
was a partner with Locke Lord Bissell & Liddell LLP where he acted
as national bankruptcy counsel for Farmers Insurance Group. Mr.
Jones received a B.A. in Psychology from the University of
Oklahoma and a J.D., Order of the Coif, from DePaul University
College of Law.

Ms. White focuses her practice in creditors' rights in the area of
commercial litigation, banking, bankruptcy, and real estate law.
With this focus, Ms. White represents financial institutions and
businesses and has extensive experience in secured transactions,
collections, bankruptcy, commercial foreclosures, negotiating and
drafting contracts (including promissory notes, mortgages,
security agreements, purchase, and sale and workout agreements),
real estate transactions, enforcing leasehold rights in personal
and real property and forming and maintaining the legal existence
of corporations, limited liability companies, and other legal
entities. Prior to joining SmithAmundsen, Ms. White was a co-
founder and shareholder of Burke & White, PC. She earned her B.A.
from Saint Mary's College of Notre Dame and her J.D. from
IIT/Chicago-Kent College of Law.

Also joining our financial services practice groups, Ms. Franco
focuses her practice in commercial litigation, banking law, and
real estate law.  Prior to joining SmithAmundsen, she was a legal
intern at LR Development Company, LLC, where she was primarily
responsible for drafting and reviewing new construction contracts.
Ms. Franco received a B.A. from the University of Illinois and her
J.D. from The John Marshall Law School.

SmithAmundsen LLC -- http://www.salawus.com/-- has grown to more
than 120 attorneys with offices in Chicago, Rockford, St. Charles,
and Woodstock, Illinois and Milwaukee, Wisconsin.  The firm's
attorneys share a proficiency in a broad range of practice areas.
As one of Chicago's premier firms, SmithAmundsen's success is
built upon a foundation of integrity, professionalism, and a
commitment to exceeding client expectations.


* 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 Darin Frank Eardly Estate
   Bankr. C.D. Calif. Case No. 10-36888
      Chapter 11 petition filed August 23, 2010
         Filed pro se

In Re EAS Electric
   Bankr. C.D. Calif. Case No. 10-36855
      Chapter 11 petition filed August 23, 2010
         See http://bankrupt.com/misc/cacb10-36855.pdf

In Re The Golden Fork, Inc.
        dba The Foster House
   Bankr. N.D. Ga. Case No. 10-23728
      Chapter 11 petition filed August 23, 2010
         See http://bankrupt.com/misc/ganb10-23728.pdf

In Re Midwest Tank, Inc.
   Bankr. S.D. Ind. Case No. 10-12678
      Chapter 11 petition filed August 23, 2010
         See http://bankrupt.com/misc/insb10-12678.pdf

In Re Guardian Angels Care Services, Inc.
   Bankr. W.D. La. Case No. 10-81294
      Chapter 11 petition filed August 23, 2010
         See http://bankrupt.com/misc/lawb10-81294.pdf

In Re Hami Corporation
   Bankr. E.D. Mich. Case No. 10-66322
      Chapter 11 petition filed August 23, 2010
         See http://bankrupt.com/misc/mieb10-66322.pdf

In Re L & C Lath & Plastering, Inc.
   Bankr. D. Nev. Case No. 10-25898
      Chapter 11 petition filed August 23, 2010
         See http://bankrupt.com/misc/nvb10-25898.pdf

In Re John H. Friedmann Superior Homes, LLC
   Bankr. M.D. Tenn. Case No. 10-08901
      Chapter 11 petition filed August 23, 2010
         See http://bankrupt.com/misc/tnmb10-08901.pdf

In Re Audio Praxis Ent Inc/Phase
        aka Phase Four Studios/Phase
   Bankr. D. Ariz. Case No. 10-27232
      Chapter 11 petition filed August 26, 2010
         Filed pro se

In Re HQ7 Incorporated
   Bankr. C.D. Calif. Case No. 10-37339
      Chapter 11 petition filed August 26, 2010
         See http://bankrupt.com/misc/cacb10-37339.pdf

In Re Team Sports Supply, Inc.
   Bankr. M.D. Ga. No. 10-41068
      Chapter 11 petition filed August 26, 2010
         See http://bankrupt.com/misc/gamb10-41068.pdf

In Re Park Avenue Property Ltd.
   Bankr. D. Md. Case No. 10-29676
      Chapter 11 petition filed August 26, 2010
         See http://bankrupt.com/misc/mdb10-29676.pdf

In Re Metrowest Properties Realty Trust
   Bankr. D. Mass. Case No. 10-44260
      Chapter 11 petition filed August 26, 2010
         Filed pro se

In Re 2970 San Lorenzo LLC
   Bankr. D. Nev. No. 10-26201
      Chapter 11 petition filed August 26, 2010
         See http://bankrupt.com/misc/nvb10-26201.pdf

In Re ADJ Coffee Shop Inc.
   Bankr. E.D.N.Y. Case No. 10-48090
      Chapter 11 petition filed August 26, 2010
         See http://bankrupt.com/misc/nyeb10-48090.pdf

In Re Marcias Bakery Inc.
   Bankr. D. P.R. Case No. 10-07783
      Chapter 11 petition filed August 26, 2010
         See http://bankrupt.com/misc/prb10-07783.pdf

In Re South Sound Grill Inc.
        dba Cattins Family Dining
   Bankr. W.D. Wash. Case No. 10-47007
      Chapter 11 petition filed August 26, 2010
         Filed pro se

In Re Ted Alan Thomas
   Bankr. W.D. Wash. Case No. 10-20116
      Chapter 11 petition filed August 26, 2010
         See http://bankrupt.com/misc/wawb10-20116.pdf

In Re Dental Elegance, Inc.
   Bankr. D. Ariz. Case No. 10-27412
      Chapter 11 petition filed August 27, 2010
         See http://bankrupt.com/misc/azb10-27412.pdf

In Re TMO II, Inc.
        dba The Hog Pit Smokehouse Bar & Grill
        dba Taco Bron
   Bankr. D. Ariz. Case No. 10-27445
      Chapter 11 petition filed August 27, 2010
         See http://bankrupt.com/misc/azb10-27445.pdf

In Re Alan Grubb
   Bankr. N.D. Calif. Case No. 10-58924
      Chapter 11 petition filed August 27, 2010
         Filed pro se

In Re PBJCT Irrevocable Trust
   Bankr. N.D. Calif. Case No. 10-49865
      Chapter 11 petition filed August 27, 2010
         Filed pro se

In Re Quality Tire Center, U. S. 19, Inc.
   Bankr. M.D. Fla. Case No. 10-20658
      Chapter 11 petition filed August 27, 2010
         See http://bankrupt.com/misc/flmb10-20658.pdf

In Re Richard L. Kofsky
   Bankr. D. N.J. Case No. 10-36469
      Chapter 11 petition filed August 27, 2010
         Filed pro se

In Re J. Mance, Inc.
   Bankr. E.D. Pa. Case No. 10-17254
      Chapter 11 petition filed August 27, 2010
         See http://bankrupt.com/misc/paeb10-17254.pdf

In Re Configuration, Inc.
   Bankr. D. Md. Case No. 10-29813
      Chapter 11 petition filed August 29, 2010
         See http://bankrupt.com/misc/mdb10-29813.pdf

In Re Burk Plaza B, LLC
   Bankr. D. Ariz. Case No. 10-27513
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/azb10-27513.pdf

In Re Town Lake Development Partners, LLC
   Bankr. D. Ariz. Case No. 10-27600
     Chapter 11 petition filed August 30, 2010
         filed pro se

In Re St. Louis Envelope Company
   Bankr. E.D. Mo. Case No. 10-49837
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/moeb10-49837.pdf

In Re Patricia Savage Osborne
        aka Patricia Savage
        aka Patricia Osborne
      George Richard Osborne
   Bankr. S.D.N.Y. Case No. 10-37606
     Chapter 11 petition filed August 30, 2010
         filed pro se

In Re TMI Wrecking, Inc.
   Bankr. S.D.N.Y. Case No. 10-23797
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/nysb10-23797.pdf

In Re Edward J. Wachowski
        dba Elite Sportswear Products, Inc.
   Bankr. E.D. Pa. Case No. 10-17313
     Chapter 11 petition filed August 30, 2010
         filed pro se

In Re Patricia Pepe
        fdba Allegheny Psychological Services
   Bankr. W.D. Pa. Case No. 10-26119
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/pawb10-26119.pdf

In Re For a Reason Enterprises, Inc.
        aka Logan Raye Spa and Salon
   Bankr. D. S.C. Case No. 10-06220
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/scb10-06220.pdf

In Re A. D. Vallett & Co., LLC
   Bankr. M.D. Tenn. Case No. 10-09225
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/tnmb10-09225.pdf

In Re A.D. Vallett Collateral Fund II LLC
   Bankr. M.D. Tenn. Case No. 10-09227
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/tnmb10-09227.pdf

In Re A.D. Vallett Income and Opportunity Fund I LLC
   Bankr. M.D. Tenn. Case No. 10-09228
      Chapter 11 petition filed August 30, 2010
         See http://bankrupt.com/misc/tnmb10-09228.pdf



                           *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR.  Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts.  The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

The Sunday TCR delivers securitization rating news from the week
then-ending.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                           *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.

Copyright 2010.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each.  For subscription information, contact Christopher
Beard at 240/629-3300.


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