/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110309.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, March 9, 2011, Vol. 15, No. 67 Headlines A+HC HOLDING: Taps Charles A. Cuprill as Bankruptcy Counsel A+HC HOLDING: Wants To Hire CPA Luis as Financial Consultant ACANDS, INC: Garlock Wants to Intervene in 12 Bankruptcy Cases AEI SERVICES: S&P Withdraws 'BB-' Corporate Credit Rating AES THAMES: Has Until March 17 to File Schedules of Assets & Debts AES THAMES: Taps Murtha Cullina on Environmental Energy Matters AFFILIATED MEDIA: Bids for Freedom Comms' Assets Due Thursday AMERICA'S SUPPLIERS: Eric Best Appointed as Director AMERICAN NATIONAL LAWYERS: Deadline for Claims Set for May 16 ANCHOR BLUE: Wins Nod to Sell HQ FF&E to Insiders ANCHOR BLUE: Wins OK to Sell Intellectual Property to Perry ANCHOR BLUE: Court OKs Rejection of PivotLink Service Agreement ANTHONY SCHOTT: Nijjar Barred From Suing Over Dischargeability ARMSTRONG WORLD: Garlock Wants to Intervene in 12 Bankruptcy Cases BERNARD L MADOFF: Feeder Fairfield Goes on Recovery Rampage BLOCKBUSTER INC: Sale Procedures Hearing Adjourned to March 10 BLOCKBUSTER INC: Universal Studios Seeks Prompt Payment of Claims BLOCKBUSTER INC: Utilities Want Security Deposits Doubled BLUEGREEN CORP: Inks $60MM Revolving Facility With Liberty Bank B.R. SUMMERLIN: Taps Gordon Silver to Handle Reorganization Case BRAMPTON PLANTATION: Branch Banking Wants Ch. 11 Case Dismissed BRIGHAM EXPLORATION: S&P Cuts Rating to $300 Mil. Notes to 'B-' BRUNSCHWIG & FILS: Kravet Inc. Wins Auction for Firm C&H ARIZONA: Court Approves MCA Financial as Financial Advisor CAESARS ENTERTAINMENT: Files Form 10-K; Posts $823.30MM Net Loss CAESARS ENTERTAINMENT: S&P Gives 'B-' to Ling and Octavius CAPITOL BANCORP: Common Stock Delisted From NYSE CAPITOL BANCORP: Incurs $254.36 Million Net Loss in 2010 CASCADE ACCEPTANCE: Court Accepts Farella Braun's Fees CATALYST PAPER: Says It Gained Momentum Despite Market Challenges CB HOLDING: Wants to Double DIP Loan Due to Sale Delays CHAMPION ENTERPRISES: Cleared to Liquidate in Chapter 11 CHARLES COWIN: Hires CB Richard Ellis for Appraisal Services CHARLES COWIN: Hires Kevin Colbert as Special Litigation Counsel CHRISTOPHER COUGHLIN: Parties Ignore Chapter 7 Conversion Order COLETO CREEK: S&P Withdraws 'B+' Rating to $735 Mil. Senior Loan COMBUSTION ENGINEERING: Garlock Wants to Intervene in 12 Cases CREDIT-BASED ASSET: Plan Set for April 11 Confirmation DAVID BROWN: Creditors Seek to Seize Assets DBSI INC: TIC Investors Object to Florissant Plan DENTON LONE: To Present Plan for Confirmation on March 21 DIGITILITI INC: Completes Sale of $1.11MM Note and Warrants DIVINE SQUARE: Files Schedules of Assets & Liabilities DIVINE SQUARE: Hires TM Realty Services as Property Manager DOCTORS INSURANCE RECIPROCAL: Deadline for Claims Set for May 16 DUKE AND KING ACQUISITION: Court OKs Committee Counsel Engagements DUNE ENERGY: Incurs $75.53 Million Net Loss in 2010 DUNE ENERGY: Edward Heil Discloses 3.5% Equity Stake DUNE ENERGY: UBS AG Discloses 22.83% Equity Stake EAST BAY: Taps Ruth Auerbach to Handle Coast Capital Proceedings EDHSAN MILLWORKS: Case Summary & 20 Largest Unsecured Creditors ELITE PHARMACEUTICALS: FDA to Remove 500 Products From Market EQK BRIDGEVIEW: Sec. 363 Does Not Permit Asset Swap EVANS OIL: Court Approves Garden City as Claims Agent EVANS OIL: Court Approves Hahn Loeser as Bankruptcy Counsel EVANS OIL: Court Approves Parkland Group as Restructuring Advisor FAIRFIELD SENTRY: Files Suits to Pay Off Madoff Suit FLINTKOTE COMPANY: Garlock Wants to Intervene in 12 Cases FRANK PARSONS: Committee Taps NHB Advisors as Financial Advisor FRANK PARSONS: Committee Taps Pachulski Stang as Counsel FRANK PARSONS: Committee Taps Whiteford Taylor as Local Counsel FREDDIE WAYNE LONG: Court Rules on ReVest Summary Judgment Bids FREEDOM COMMUNICATIONS: Final Bids for Assets Due Thursday FRENCH BROAD: Plan Confirmation Hearing on April 20 FREY MECHANICAL: Ch. 7 Trustee May Recoup $400,000 in Insider Suit FUSION CUISINE: Ch. 7 Trustee Seeks to Sell Property to Landlords GARDNER DENVER: S&P Affirms 'BB' Corporate Credit Rating GARY PHILLIPS: Creditors Panel Has Greenlight to Hire Hodges GARY PHILLIPS: Court Denies Employment of Crye-Leike Realtors GARY PHILLIPS: Wants $9,800 TruPoint Construction Draws Continued GARY WASHINGTON: No Stay Extension in Second Chapter 11 Case GENERAL MOTORS: Court OKs Class Suit Status vs. GM Canada GLC LIMITED: U.S. Trustee Appoints 5 Members to Creditors Panel GLC LIMITED: Creditors Panel Taps Morris Manning as Counsel GLC LIMITED: Gets Court's Nod to Use Cash Collateral GMX RESOURCES: Incurs $146.87-Mil. Net Loss in Fourth Quarter GREAT ATLANTIC & PACIFIC: Files Statement of Financial Affairs GREAT ATLANTIC & PACIFIC: Wants Add'l Members to Committee GREAT ATLANTIC & PACIFIC: Addresses Store Closing Objections HARRY & DAVID: Misses Payments on Two Note Issues HEADWATERS INC: S&P Affirms Corporate Credit Rating at 'B' HOMEBANC MORTGAGE: Alston & Bird Settles Lawsuit Over Fees HOVNANIAN ENTERPRISES: Swings to $64-Mil. Net Loss in Jan. 31 Qtr. HUTCHINSON TECH: To Cut Up to 40% of Workforce in Restructuring IA GLOBAL: Chief Executive's Contract Extended Until June ICOP DIGITAL: Nashville Police Seeks to Recover Reimbursement INFUSION BRANDS: Agrees to Forfeit Ownership Interest in BYOC INNKEEPERS USA: Sale Plan Provides Benefits to Owner Apollo IRH VINTAGE: Files New Plan to Beat Foreclosure ISE LIMITED: Assets Sold in Court-Approved Bankruptcy Sale JEFFREY PROSSER: Court Recognizes Spouse's First Refusal Rights JNL FUNDING: Exclusive Plan Filing Period Extended Until April 1 JNL FUNDING: March 30 Status Hearing Set on Bid to Oust Management JOHNSON BROADCASTING: Court Denies Bid to Dismiss Case JOHNSON BROADCASTING: Confirmation Hearing Set for April 11 JOHNSON BROADCASTING: Taps Paul Cashiola as Accountant KAISER ALUMINUM: Court Junks PI Trusts Suits vs. Insurers KAISER ALUMINUM: Garlock Wants to Intervene in 12 Bankruptcy Cases LAS VEGAS RAILWAY: J. Zilliken Resigns as CFO, Assumes COO Role LECG CORP: Bank of Montreal Again Give Limited Waivers MA BB: Section 341(a) Meeting Scheduled for April 1 MA BB: Taps Joyce W. Lindauer as Bankruptcy Counsel MAGIC BRANDS: Deel Creditors to Sue for Equitable Subordination MEDICAL EDUCATION: Bankruptcy Court Affirms Remand Order MESA AIR: Distribution Record Date Extended for CRAFT Claims MESA AIR: Security Trustee Transfers Several Claims MESA AIR: Time to Decide on ELFC Engine Lease Extended to March 31 MID-VALLEY, INC: Garlock Wants to Intervene in 12 Bankruptcy Cases MILLENNIUM MULTIPLE: Solicitation Period Expires April 18 MOLECULAR INSIGHT: Accepts Alternative Proposal, Amends Plan MTD INVESTMENTS: Plan Violates Absolute Priority Rule N.A. REFRACTORIES: Garlock Wants to Intervene in 12 Cases NEW JERSEY MOTORSPORTS: Files for Chapter 11 with Plan NEW JERSEY MOTORSPORTS: Case Summary & 20 Largest Unsec. Creditors NOMADS INC: Files for Chapter 7 Bankruptcy OWENS CORNING: Court Junks PI Trusts Suits vs. Insurers OWENS CORNING: Garlock Wants to Intervene in 12 Bankruptcy Cases OWENS CORNING: Garlock Wants to Reopen Chapter 11 Cases OWENS CORNING: Opposes Garlock's Plea to See Rule 2019 Statements PARTSEARCH TECHNOLOGIES: Sues UPS Over Billing Practices PATRIOT NATIONAL: Bank to Sell Assets to ES Ventures for $65MM PHILADELPHIA RITTENHOUSE: Sets Forth Reorganization Plan PHOENIX WORLDWIDE: Exit Plan Denied, Case Converted to Ch. 7 PITTSBURGH CORNING: Garlock Wants to Intervene in 12 Cases PRESIDIO INC: S&P Affirms Corporate Credit Rating at 'B+' PT-1 COMMUNICATIONS: Court Issues 4th Ruling on Tax Refund Dispute QUEPASA CORP: Closes Stock Purchase Agreement With XtFt Games QUVIS INC: SeaCoast Wins Round in Equitable Subordination Suit RADIENT PHARMACEUTICALS: Robert Rooks Owns 40,000 Common Shares R.C. SAMANTA: Drops Appeal of Prior Cases' Dismissal RDK TRUCK: Gets Final OK to Hire Morse & Gomez as Bankr. Counsel RDK TRUCK: Must File Disclosure Statement & Plan by April 29 RDK TRUCK: Taps Nelson & McKay as Accountants RDK TRUCK: Taps Renaissance Consulting as Consultant REALOGY CORP: Incurs $97 Million Net Loss in 2010 RECIPROCAL ALLIANCE: Deadline for Claims Set for May 16 RIVER ISLAND: Section 341(a) Meeting Scheduled for April 5 ROSS ENTERPRISES: Mich. App. Ct. Reverses Insurance Policy Ruling ROSSCO HOLDINGS: Court Extends Plan Filing Deadline Until May 24 ROSSCO HOLDINGS: Taps Hyatt Gidlow as Accountants S & Y ENTERPRISES: Proposes Full-Payment Plan SATELITES MEXICANOS: Starts Soliciting Votes on Chapter 11 Plan SATELITES MEXICANOS: Has $325-Mil. Exit Financing Commitment SEAHAWK DRILLING: Court Adjourns Sale Hearing to March 22 SEAHAWK DRILLING: Shareholders Oppose 'Excessive' Breakup Fee SEAHAWK DRILLING: Section 341(a) Meeting Set for March 24 SEAHAWK DRILLING: US Trustee Forms Three-Member Creditors' Panel SEXY HAIR: Plan Confirmation Hearing on April 4 SHADY ACRES: Disclosure Statement Hearing on March 15 SHAMROCK DEALER: Case Summary & 3 Largest Unsecured Creditors SINCLAIR BROADCAST: David Smith Discloses 36.6% Equity Stake SINCLAIR BROADCAST: Reports $75.04 Million Net Income in 2010 SOUTH BAY EXPRESSWAY: Sets April 14 Plan Confirmation SPOT MOBILE: Completes Sale of 5 Units for $216,250 STATE INSULATION: Meeting to Form Asbestos Committee Tomorrow STATE INSULATION: Meeting to Form Creditors Committee on March 14 STRATEGIC AMERICAN: Completes Sale of 6.3MM Shares for $630,000 STRIVER REALTY: Case Summary & Largest Unsecured Creditor SW OWNERSHIP: Asks for OK to Obtain DIP Financing From Soundview SW OWNERSHIP: Ch 11 Case Transferred to Judge Craig Gargotta SW OWNERSHIP: Section 341(a) Meeting Scheduled for March 29 SWORDFISH FINANCIAL: SIC Code Changed to 6199 - Finance Services TERRESTAR CORP: Proposes to Reject Elektrobit Agreements TERRESTAR CORP: THI Files Schedules of Assets & Liabilities TERRESTAR CORP: THI Files Statement of Financial Affairs TH PROPERTIES: Faces Third Chapter 7 Liquidation Plea THERMOENERGY CORP: Feb. 28 Promissory Notes Extended by 1 Year TIGRENT INC: CAO's Annual Base Salary Hiked to $200,000 TIGRENT INC: To Voluntarily Suspend SEC Reporting Obligations TOUSA INC: Status Conference on Committee's Plan Set for April 7 TOUSA INC: Creditors Lose $316 Million Loan Appeal TOUSA INC: Seeks OK of Settlement with Michael J. Contracting TOUSA INC: District Judge Affirms Dismissal of Claims vs. Lenders TRANSWEST RESORT: Has Use of Cash Collateral Until May 20 TRANSWEST RESORT: Taps BeachFleischman PC as Tax Preparer TRANSWEST RESORT: Wants Plan Filing Period Extended to Aug. 11 TRIBUNE CO: Final Bids for Freedom Comms' Assets Due Thursday TRIDIMENSION ENERGY: March 23 Hearing on Liquidating Plan Outline TUBO DE PASTEJE: Says It Will File Plan 'Soon' TWIN CITY LOFTS: Adequate Protection Payment Deadline Nears TWIN CITY LOFTS: Has Green Light to Employ Carlebach Firm TWIN CITY LOFTS: May Employ EisnerAmper LLP as Accountants TX BLACKHORSE: U.S. Trustee Unable to Form Creditors Committee UNI-PIXEL INC: To Release 4Q and Full 2010 Results on March 10 US MINERAL: Garlock Wants to Intervene in 12 Bankruptcy Cases USG CORP: Court Junks PI Trusts Suits vs. Insurers USG CORP: Garlock Wants to Intervene in 12 Bankruptcy Cases VALLEJO, CA: Plan Heading for June Confirmation Hearing VAN HUNTER: Case Resolution Deadline Set for April 30 VILLAGE AT CAMP: Disclosure Statement Hearing Reset to March 22 WASHINGTON MUTUAL: Equity Committee Now Has Two Members WB SANCTUARY: Files Schedules of Assets and Liabilities WES CONSULTING: Name Changed to Liberator Inc. W.R. GRACE: Garlock Wants to Intervene in 12 Bankruptcy Cases * February Bankruptcy Filings Continue Lagging 2010 * Private Employers May Deny Job to a Bankrupt Person * D. Schrier-Rape Joins Goodwin Procter's Restructuring Practice * Perkins Coie Opens New NY Office with Former Arent Fox Partner * Saybrook Capital Discusses Next Situations Fund With Investors * Upcoming Meetings, Conferences and Seminars ********* A+HC HOLDING: Taps Charles A. Cuprill as Bankruptcy Counsel ----------------------------------------------------------- A+HC Holding, Inc., asks for authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Charles A. Cuprill, P.S.C., Law Offices, as bankruptcy counsel Charles A. Cuprill will represent the Debtor in its bankruptcy case. The Debtor has retained Charles A. Cuprill on the basis of a $22,500 retainer, against which the law firm will bill on the basis of $350 per hour, plus expenses, for work performed or to be performed; $225 per hour for associates; and $85 per hour for paralegals. Charles A. Cuprill-Hernandez, Esq., the principal of Charles A. Cuprill, assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. San Juan, Puerto Rico-based A+HC Holding, Inc., aka Farmacias El Amal, filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 11-01428) on Feb. 24, 2011. In its schedules, the Debtor disclosed $32,711,487 in total assets and $29,266,889 in total debts as of the Petition Date. CPA Luis R. Carrasquillo & CO., P.S.C. is the Debtor's financial consultant. A+HC HOLDING: Wants To Hire CPA Luis as Financial Consultant ------------------------------------------------------------ A+HC Holding, Inc., asks for authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ CPA Luis R. Carrasquillo & CO., P.S.C., as financial consultant. CPA Luis will: a. provide advice in strategic planning and the preparation of the Debtor's plan of reorganization, disclosure statement and business plan; and b. participate in the debtor's negotiations with the Debtor's creditors. CPA Luis will be paid based on the hourly rates of its professionals: CPA Luis R. Carrasquillo, Partner $150 CPA Marcelo Gutierrez, Senior CPA $125 CPA Myris Acosta, Senior CPA $100 CPA Michelle Batlle, Senior CPA and Tax Specialist $85 Other CPA's $90-$100 Carmen Callejas, Senior Accountant $70 Joel Torres Sanchez, Tax Specialist $70 Sandra Zavala Diaz, Junior Accountant $45 Administrative Personnel $35 Luis R. Carrasquillo Ruiz, the principal of CPA Luis, assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. San Juan, Puerto Rico-based A+HC Holding, Inc., aka Farmacias El Amal, filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 11-01428) on Feb. 24, 2011. In its schedules, the Debtor disclosed $32,711,487 in total assets and $29,266,889 in total debts as of the Petition Date. Charles Alfred Cuprill, Esq., at Charles A. Curpill, PSC Law Office, serves as the Debtor's bankruptcy counsel. ACANDS, INC: Garlock Wants to Intervene in 12 Bankruptcy Cases -------------------------------------------------------------- Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About AcandS Inc. Based in Lancaster, Pennsylvania, ACandS Inc. was an insulation contracting company, primarily engaged in the installation of thermal and mechanical insulation. In later years, the Debtor also performed a significant amount of asbestos abatement and other environmental remediation work. The company filed for chapter 11 protection on Sept. 16, 2002 (Bankr. Del. Case No. 02- 12687). Laura Davis Jones, Esq., Curtis A. Hehn, Esq., James E. O'Neill, Esq., and Michael Paul Migliore, Esq., at Pachulski Stang Ziehl & Jones, P.C., represent the Debtor in its restructuring efforts. Kathleen Campbell Davis, Esq., Aileen F. Maguire, Esq., Mark T Hurford, Esq., and Marla Rosoff Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. At Dec. 31, 2006, the Debtor disclosed that it had book assets of approximately $11.78 million and book liabilities, including liabilities for the payment of asbestos-related and other claims of $11.78 million. At June 30, 2007, net book assets before liabilities for asbestos-related and other claims was approximately $9,010,000. The Court confirmed the Debtors' Second Amended Chapter 11 Plan of Reorganization in May 2008. AEI SERVICES: S&P Withdraws 'BB-' Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services said it withdrew its 'BB-' corporate credit rating on AEI at the company's request as it has no debt outstanding. At the same time, S&P withdrew its 'BB+' issue-level and '1' recovery ratings on the company's senior secured debt, which consisted of a $971 million of first-lien term B loan debt due 2014, given their repayment, and $495 million of first-lien revolving credit facility due 2012 and $105 million synthetic revolving credit facility due 2012, given their cancellation following repayment of all of the outstanding draws. AEI sold its interest in 10 operating companies under seven separate transactions for $4.8 billion. The companies were largely regulated operations that represented about 80% of AEI's total assets, AEI used sale proceeds to repay all the outstanding debt (about $1.05 billion as of Sept. 30, 2010) at the AEI level, including about $188 million of subordinate PIK debt obligations that S&P does not rate. The remaining proceeds, after transaction costs, are expected to be distributed and will be used for future equity needs of various greenfield power generation projects. After the sale, AEI expects to reorganize around its remaining assets in Asia, Latin America, and the Caribbean (with a focus on power generation assets) and will continue with power plant development projects in Guatemala, Peru, Argentina, Chile, and China. The reorganized structure is expected to represent about 2,236 MW of operating facilities. AES THAMES: Has Until March 17 to File Schedules of Assets & Debts ------------------------------------------------------------------ The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware entered an order extending until March 17, 2011, AES Thames, L.L.C.'s time to file its schedules of assets and liabilities. About AES Thames Uncasville, Connecticut-based AES Thames, L.L.C., owns and operates a coal-fired power plant located in Montville, Connecticut. The facility generates and sells electricity to Connecticut Light and Power Company. It also supplies processed steam to a recycled paperboard mill owned by Smurfit-Stone Container Corp. AES Thames is a unit of AES Corp., the Arlington, Virginia-based power producer with operations in 29 countries. AES Thames filed for Chapter 11 bankruptcy protection on February 1, 2011 (Bankr. D. Del. Case No. 11-10334). The increased cost of energy production and the "uneconomic and onerous provisions" of a steam sale agreement with Smurfit-Stone's predecessor led AES Thames to seek bankruptcy protection. The Debtor is represented by Adam G. Landis, Esq., at Landis Rath & Cobb LLP. Murtha Cullina LLP is the Debtor's special counsel. According to court filings, based on the balance sheet as of Dec. 1, 2010, total assets were $162 million, and the Debtor has $52 million in short term liabilities and $122.6 million in long term debt. On Feb. 15, 2011, the U.S. Trustee formed an Official Committee of Unsecured Creditors, which is represented by Juliet M. Sarkessian, Esq. AES THAMES: Taps Murtha Cullina on Environmental Energy Matters --------------------------------------------------------------- AES Thames, L.L.C., asks the U.S. Bankruptcy Court for the District of Delaware for permission to employ Murtha Cullina LLP as special counsel. Murtha Cullina will provide serves as the Debtor requests, including, but not limited to, environmental energy, state and local tax, employment, real estate, financing, litigation, and other services involving Connecticut law. The Debtor relates that Murtha Cullina and Landis Rath & Cobb LLP, the Debtor's bankruptcy counsel, will coordinate efforts to avoid duplication of work and unnecessary fees. On Feb. 1, 2011, Murtha Cullina received $24,458 as retainer and advance payment for actual and estimated professional fees and disbursements to be incurred thereafter. The personnel assigned in the case are Robert A. White, Mark R. Sussman, and Paul R. McCary. The hourly rates of the firm's personnel are: Partners $310 - $630 Associates $220 - $400 Paralegals $180 - $240 To the best of the Debtor's knowledge, Murtha Cullina is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Debtor scheduled a March 30, 2011, hearing to consider its request to employ Murtha Cullina LLP as special counsel. Objections, if any, are due March 16, at 4:00 p.m. About AES Thames Uncasville, Connecticut-based AES Thames, L.L.C., owns and operates a coal-fired power plant located in Montville, Connecticut. The facility generates and sells electricity to Connecticut Light and Power Company. It also supplies processed steam to a recycled paperboard mill owned by Smurfit-Stone Container Corp. AES Thames is a unit of AES Corp., the Arlington, Virginia-based power producer with operations in 29 countries. AES Thames filed for Chapter 11 bankruptcy protection on February 1, 2011 (Bankr. D. Del. Case No. 11-10334). The increased cost of energy production and the "uneconomic and onerous provisions" of a steam sale agreement with Smurfit-Stone's predecessor led AES Thames to seek bankruptcy protection. The Debtor is represented by Adam G. Landis, Esq., at Landis Rath & Cobb LLP. Murtha Cullina LLP is the Debtor's special counsel. According to court filings, based on the balance sheet as of Dec. 1, 2010, total assets were $162 million, and the Debtor has $52 million in short term liabilities and $122.6 million in long term debt. On Feb. 15, 2011, the U.S. Trustee formed an Official Committee of Unsecured Creditors, which is represented by Juliet M. Sarkessian, Esq. AFFILIATED MEDIA: Bids for Freedom Comms' Assets Due Thursday ------------------------------------------------------------- The Wall Street Journal's Mike Spector and Anupreeta Das report that people familiar with the matter said final bids are due Thursday in the auction of Freedom Communications Inc. They said possible bidders include Denver Post publisher MediaNews Group Inc.; Tribune Co.; Gores Group; and Platinum Equity, owner of the San Diego Union Tribune. According to the Journal, Freedom is giving bidders several options. Suitors can make offers for the entire company or they can separately bid on Freedom's eight television stations, its more than 100 daily and weekly newspapers or the Orange County Register alone. Investment bank Moelis & Co. is advising Freedom on the auction. The Journal relates Freedom said it "continues its review of a wide variety of strategic options" but declined to comment further. According to the Journal, it remained unclear what prospective bidders might offer for Freedom's assets and which pieces each might pursue. The entire company won't likely fetch more than $1 billion, said people familiar with the matter. The sources told the Journal Freedom's television stations could go for about $400 million, or eight times the division's earnings before interest, taxes, depreciation and amortization. The Register and other newspapers could fetch around $350 million, or about four times that division's $90 million in such earnings, these people said. According to the Journal, people familiar with the matter cautioned that a number of complexities surround potential offers and it will take time to finalize a transaction: (A) Hedge fund Alden Global Capital owns shares of both MediaNews and Freedom. The Journal recounts MediaNews' holding company last year restructured through a quick bankruptcy, emerging owned by several hedge funds including Alden. Alden has been studying folding some of its newspaper holdings into a single company. Besides stakes in MediaNews and Freedom, Alden also acquired stakes in the publisher of the Philadelphia Inquirer and the Journal Register Co. through bankruptcy proceedings and is poised to own part of Tribune when it emerges from Chapter 11 protection sometime this year. (B) Hedge fund, Angelo, Gordon & Co., also holds a stake in Freedom and is also set to own part of Tribune. (C) Some bids could be complicated by antitrust issues. Tribune, for instance, owns the Los Angeles Times, a nearby competitor to the Register. Tribune's bankruptcy could also muddle bidding plans . Still, Tribune has been doing due diligence on Freedom's assets and continues to weigh a bid. According to the Journal, a separate person familiar with the matter said Gores Group, whose holdings include radio station operator Westwood One Inc., plans to make a bid for Freedom assets by Thursday. Gores hasn't decided on which assets to bid, and is "looking at all of it," this person said. Another source told the Journal that Platinum Equity is looking at Freedom's assets, but is not rushing to make an acquisition. About Affiliated Media Denver, Colorado-based Affiliated Media, Inc., is the holding company for the MediaNews Group family of newspapers, the nation's second-largest newspaper publisher by circulation and owner of 54 daily newspapers, over 100 non-daily newspapers, as well as Web sites, television and radio broadcasters that serve markets in 12 states. The Company filed for Chapter 11 bankruptcy protection on January 22, 2010 (Bankr. D. Delaware Case No. 10-10202). Hughes Hubbard & Reed LLP, served as the Debtor's general bankruptcy counsel, while Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, served as the Debtor's co-bankruptcy counsel. Carl Marks Advisory Group LLC acted as the Debtor's restructuring advisor; Rothschild Inc., the Debtor's financial advisor; and Epiq Bankruptcy Solutions, LLC, the Debtor's claims agent. The Company estimated $100 million to $500 million in assets and $500 million to $1 billion in liabilities. The Hon. Kevin J. Carey confirmed the Company's plan of reorganization on March 4, 2010, less than six weeks after the bankruptcy filing. The Company had reached agreement pre-bankruptcy with its lenders on terms of the plan, which reduces the Company's debt from $930 million to $165 million and involves no management change or change of control of the Company. The Plan gives holders of senior notes aggregating $583.1 million 88% of the common stock, the proceeds of $150 million secured term loan and certain cash payments. Holders of general unsecured claims retain their claims or would be paid in full. Holders of $326 million in subordinated notes would receive warrants to purchase stock of the reorganized company. Holders of equity interests were wiped out. Affiliated Media emerged from Chapter 11 protection in March 2010. 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 Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America 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. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. 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) About Freedom Communications Freedom Communications, headquartered in Irvine, Calif., is a national privately owned media company operating print publications, broadcast television stations and interactive businesses. The company's print portfolio includes approximately 100 daily and weekly publications, plus ancillary magazines and other specialty publications. The broadcast company's stations -- five CBS, two ABC network affiliates and one CW affiliate -- reach more than 3 million households across the country. The Company's news, information and entertainment websites complement its print and broadcast properties. Freedom Communications filed for Chapter 11 on Sept. 1, 2009 (Bankr. D. Del. Case No. 09-13046). Attorneys at Young Conaway Stargatt & Taylor, and Latham & Watkins LLP served as Chapter 11 counsel. Houlihan, Lokey, Howard & Zukin, Inc., served as financial advisors while AlixPartners LLC served as restructuring consultants. Logan & Co. served as claims and notice agent. Freedom Communications had $757,000,000 in assets against debts of $1,077,000,000 as of July 31, 2009. The Bankruptcy Court confirmed Freedom Communications' Plan of Reorganization on March 9, 2010. The Plan became effective April 30, 2010. The Plan, which was supported by the Steering Committee of the Company's secured lenders and the Official Committee of Unsecured Creditors, eliminated $450 million of debt from Freedom's balance sheet. AMERICA'S SUPPLIERS: Eric Best Appointed as Director ---------------------------------------------------- On March 1, 2011, the Board of Directors of America's Suppliers, Inc. appointed Eric Best as a director of the Company, effective immediately. Mr. Best was elected to fill the vacancy created by Larry Schafran's resignation from the Board, which was effective as of Feb. 4, 2011. Mr. Best, 39 years old, is a veteran entrepreneur and experienced manager of strategy, people, and process. He is currently Chairman and CEO of Mercent Corporation. In addition, Mr. Best serves as chair of Seattle-based Morse Best Innovation, a technical marketing agency serving clients such as Microsoft, Lexmark, and WRQ, and as director of Bellevue-based ITEX, a technology company that provides a business-to-business payment system for non-cash transactions. Previously, Mr. Best founded MindCorps in 1996, and created a profitable, high-growth software consultancy that served the Internet and Fortune 500 markets before its acquisition by Amazon.com. With Amazon, Mr. Best managed business development for the Amazon.com Commerce Network, working on the deal team for Amazon's first major brick-and-mortar partnership. Mr. Best founded the software product firm Emercis Corporation in 1998 to provide e-commerce infrastructure tools to enterprise businesses. Emercis was subsequently acquired by Impressa, Inc. in 2000. Serving as director of Ubarter.com, Mr. Best also helped facilitate the sale of the business to Network Commerce in 2000 for $45 million. Mr. Best is a graduate of Seattle Pacific University and a member of the SPU Entrepreneurial Studies Council and Society of Fellows. Mr. Best will participate in the Company's standard non-employee director compensation program, which currently provides for an annual cash fee of $20,000 and a grant of options to purchase 30,000 shares of the Company's common stock. Those stock options will be subject to the terms and conditions of the Company's 2009 Long-Term Incentive Compensation Plan and a corresponding award agreement. The Board compensation program is subject to change from time to time, as described in more detail in the Company's definitive proxy statement relating to its annual meeting of stockholders. Other than as described above, Mr. Best was not appointed pursuant to any arrangement or understanding with any other person and is not a participant in any existing or proposed transaction with the Company. The Board anticipates that Mr. Best will fill the current vacancy on the Board compensation committee. About America's Suppliers Scottsdale, Ariz.-based America's Suppliers, Inc. develops software programs that allow the Company to provide general merchandise for resale to businesses. DollarDays International, Inc., the Company's wholly owned subsidiary, is an Internet based wholesaler of general merchandise to small independent resellers through its Web site http://www.DollarDays.com/. Orders are placed by customers through the Web site where, upon successful payment, the merchandise is shipped directly from the vendors' warehouses. At Sept. 30, 2010, the Company had total assets of $2,003,445, including total current assets of $1,504,154; total liabilities, all current, of $2,110,541; and total deficit of $107,096. As reported in the Troubled Company Reporter on March 26, 2010, MaloneBailey, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2009 results. The independent auditors noted that Company has suffered an accumulated deficit of $6,949,006 as of Dec. 31, 2009. AMERICAN NATIONAL LAWYERS: Deadline for Claims Set for May 16 ------------------------------------------------------------- Insurance Journal reports that Justice Russell Perkins of Tennessee's Twentieth Judicial District court has set May 16, 2011, as the final date to resolve all outstanding claims against three insolvent risk retention groups that were closed in 2003 after the failure of their Virginia reinsurer, Reciprocal of America. Insurance Journal relates that the three Tennessee companies -- the American National Lawyers Reciprocal, the Doctors Insurance Reciprocal and the Reciprocal Alliance -- were risk-retention groups that reinsured virtually all their business with Reciprocal of America, a Glenn Allen, Virginia-based Company that was placed in receivership in January 2003 after regulators discovered its liabilities exceed its assets by more than $200 million. The three risk retention groups operated under common management. Justice Perkins has imposed a final deadline of May 16 to liquidate all claims following a request by Tennessee Insurance Commissioner Julie Mix McPeak as special receiver, according to Insurance Journal. The report relates Justice Perkins said that the deadline is warranted to provide closure to what has been a long drawn out process of trying to settle the companies' estates. According to Insurance Journal, the court order states that all claims against the companies must be submitted by May 16. The court also orders that any claim submitted after the date of the order and May 16 must carry with it some explanation why the claim wasn't made earlier. Further, Insurance Journal says, the court found that all outstanding unliquidated claims must be settled at a specific dollar amount or denied by the receiver. In 2008, Virginia insurance regulators dismissed the claims of the three insolvent Tennessee risk retention groups against ROA, ruling that as reinsureds of ROA, the three insurers were general creditors and not policyholders under the Virginia insurer liquidation statute. American National Lawyers Insurance, started in 1993, is a professional liability insurance company that is completely owned by its lawyer insureds. It is licensed to do business in Tennessee and South Carolina, and provides liability coverage for about 3,100 Tennessee lawyers. The Tennessee Department of Commerce and Insurance placed American National Lawyers Insurance, along with two affiliated insurers, Doctors Insurance Reciprocal Risk Retention Group and Reciprocal Alliance Risk Retention Group, under receivership on Jan. 31, 2003. ANCHOR BLUE: Wins Nod to Sell HQ FF&E to Insiders ------------------------------------------------- Anchor Blue Holding Corp. and its affiliates received approval from the U.S. Bankruptcy Court for the District of Delaware to sell certain sample inventory and furniture, fixtures & equipment located at their headquarters in Corona, California, to Anil Shetty and Thomas A. Shaw. The Purchasers are insiders of the Debtors. Mr. Shaw serves as the Debtors' chief executive officer, and Mr. Shetty serves as the Debtors' Director of Finance and Controller. Following a bidding process, the Insiders emerged as the winning bidder with their $53,000 offer for the assets. The sale excludes information technology equipment on which the Debtors maintain their books and records and various other databases of critical information. Abut Anchor Blue Anchor Blue is a specialty retailer of casual apparel and accessories for the teenage market. Founded in 1972, the Company has 117 stores located in nine western and southwestern states: Arizona, California, Colorado, New Mexico, Oregon, Texas, Utah and Washington. The Company employs 1,400 full and part-time employees in their stores and their corporate headquarters in Corona, California. Anchor Blue is an indirect affiliate of Sun Capital Partners, a Florida-based investment firm. Anchor Blue Holding Corp., together with Anchor Blue Inc., filed for Chapter 11 bankruptcy protection on Jan. 11, 2011 (Bankr. D. Del. Lead Case No. 11-10110). As of Jan. 1, 2011, the Debtors' books and records reflected total combined assets of roughly $24.7 million (book value) and total combined liabilities of roughly $38.5 million. Neil Herman, Esq., and Rachel Mauceri, Esq., at Morgan Lewis, in Philadelphia, Pennsylvania, serves as counsel to the Debtors. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors is represented by Eric R. Wilson, Esq., at Kelley Drye & Warren LLP, in New York. The prepetition first lien lender is represented by Julia Frost-Davies, Esq., at Bingham McCutchen LLP, in Boston, Massachusetts, and Regina Stango Kelbon, Esq., at Blank Rome LLP, in Philadelphia, Pennsylvania. The prepetition second lien lenders is represented by Thomas E. Patterson, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California. The Debtors' prepetition subordinated lender is represented by James Stempel, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois. ANCHOR BLUE: Wins OK to Sell Intellectual Property to Perry ----------------------------------------------------------- Anchor Blue Holding Corp. and its affiliates received approval from the U.S. Bankruptcy Court for the District of Delaware to sell certain intellectual property to Perry Ellis International, Inc. for $500,000. Perry Ellis emerged as the winning bidder for the intellectual property at an auction. Metropolitan Real Estate Investors, LLC, the stalking horse bidder, was outbid at the auction and will receive reimbursement of $20,000. The bankruptcy judge held the sale hearing on March 7. The intellectual property sold to Perry include trademarks, logos, URL addresses and email addresses, certain customer and vendor data, as well as style and pattern books related to the Debtors' retail products. Abut Anchor Blue Anchor Blue is a specialty retailer of casual apparel and accessories for the teenage market. Founded in 1972, the Company has 117 stores located in nine western and southwestern states: Arizona, California, Colorado, New Mexico, Oregon, Texas, Utah and Washington. The Company employs 1,400 full and part-time employees in their stores and their corporate headquarters in Corona, California. Anchor Blue is an indirect affiliate of Sun Capital Partners, a Florida-based investment firm. Anchor Blue Holding Corp., together with Anchor Blue Inc., filed for Chapter 11 bankruptcy protection on Jan. 11, 2011 (Bankr. D. Del. Lead Case No. 11-10110). As of Jan. 1, 2011, the Debtors' books and records reflected total combined assets of roughly $24.7 million (book value) and total combined liabilities of roughly $38.5 million. Neil Herman, Esq., and Rachel Mauceri, Esq., at Morgan Lewis, in Philadelphia, Pennsylvania, serves as counsel to the Debtors. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors is represented by Eric R. Wilson, Esq., at Kelley Drye & Warren LLP, in New York. The prepetition first lien lender is represented by Julia Frost-Davies, Esq., at Bingham McCutchen LLP, in Boston, Massachusetts, and Regina Stango Kelbon, Esq., at Blank Rome LLP, in Philadelphia, Pennsylvania. The prepetition second lien lenders is represented by Thomas E. Patterson, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California. The Debtors' prepetition subordinated lender is represented by James Stempel, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois. ANCHOR BLUE: Court OKs Rejection of PivotLink Service Agreement --------------------------------------------------------------- Judge Peter Walsh approved Anchor Blue Holding Corp.'s rejection of the (A) Service Subscription Agreement between Anchor Blue and PivotLink dated March 22, 2006 and (B) PivotLink Business Intelligence Service Agreement Anchor Blue and PivotLink dated September 2009. Abut Anchor Blue Anchor Blue is a specialty retailer of casual apparel and accessories for the teenage market. Founded in 1972, the Company has 117 stores located in nine western and southwestern states: Arizona, California, Colorado, New Mexico, Oregon, Texas, Utah and Washington. The Company employs 1,400 full and part-time employees in their stores and their corporate headquarters in Corona, California. Anchor Blue is an indirect affiliate of Sun Capital Partners, a Florida-based investment firm. Anchor Blue Holding Corp., together with Anchor Blue Inc., filed for Chapter 11 bankruptcy protection on Jan. 11, 2011 (Bankr. D. Del. Lead Case No. 11-10110). As of Jan. 1, 2011, the Debtors' books and records reflected total combined assets of roughly $24.7 million (book value) and total combined liabilities of roughly $38.5 million. Neil Herman, Esq., and Rachel Mauceri, Esq., at Morgan Lewis, in Philadelphia, Pennsylvania, serves as counsel to the Debtors. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors is represented by Eric R. Wilson, Esq., at Kelley Drye & Warren LLP, in New York. The prepetition first lien lender is represented by Julia Frost-Davies, Esq., at Bingham McCutchen LLP, in Boston, Massachusetts, and Regina Stango Kelbon, Esq., at Blank Rome LLP, in Philadelphia, Pennsylvania. The prepetition second lien lenders is represented by Thomas E. Patterson, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California. The Debtors' prepetition subordinated lender is represented by James Stempel, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois. ANTHONY SCHOTT: Nijjar Barred From Suing Over Dischargeability -------------------------------------------------------------- Bankruptcy Judge Leif M. Clark denied a motion by Kuldip Nijjar for a late filing of a complaint under 11 U.S.C. Sec. 523(a)(2) against Anthony H. Schott. Mr. Nijjar says there is a lawsuit pending in Travis County, Texas, in which he is one of the defendants. In that suit, Mr. Nijjar has filed a counterclaim against the Debtor. While the pendency of the lawsuit was noted in the Debtor's statement of financial affairs, the existence of Mr. Nijjar's claim was neither listed nor acknowledged in the Debtor's schedules, nor was Mr. Nijjar even listed in the creditor matrix. As a result, says Mr. Nijjar, he was not even aware of the pendency of the bankruptcy case, much less aware of the deadlines that were then running on filing a complaint objecting to dischargeability. Judge Clark denies Mr. Nijjar's motion because (a) the deadline for filing a complaint objecting to dischargeability cannot be extended and (b) the creditor has an adequate remedy that obviates any due process concerns. A copy of Judge Clark's March 3, 2011 Memorandum Decision and Order is available at http://is.gd/qcTjltfrom Leagle.com. Based in San Antonio, Texas, Anthony H. Schott filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case No. 10-54276) on Nov. 1, 2010, represented by Lynda S. Ladymon, Esq. -- lynda@lawlynda.com -- as bankruptcy counsel. In his petition, Mr. Schott estimated $1 million to $10 million in assets and debts. ARMSTRONG WORLD: Garlock Wants to Intervene in 12 Bankruptcy Cases ------------------------------------------------------------------ Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About Armstrong World Headquartered in Lancaster, Pennsylvania, Armstrong World Industries, Inc. (NYSE:AWI) -- http://www.armstrong.com/-- designs, manufactures and sells flooring products and ceiling systems around the world. It also designs, manufactures and sells kitchen and bathroom cabinets. Its business segments include resilient flooring, wood flooring, building products and cabinets. On Dec. 6, 2000, it filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court. An earlier version of Armstrong's Plan was confirmed by the Bankruptcy Court in November 2003. The District Court for the District of Delaware did not affirm the confirmation of the Plan, finding that the proposed distribution of new warrants to the class of Equity Interest Holders over the objection of the class of Unsecured Creditors violated the "fair and equitable" requirement of Section 1129(b)(2)(B)(ii) of the Bankruptcy Code, a codification of the absolute priority rule. Armstrong lost on appeal before the Third Circuit Court of Appeals. Armstrong filed a modified plan in February 2006, revising the classification and treatment of Equity Interests to eliminate the distribution of warrants to shareholders of AWI's parent company, Armstrong Holdings, Inc. Armstrong and the asbestos constituencies in its case also asked the District Court to find that the Debtors' present and future liability on account of asbestos-related personal injury claims is not less than $3.1 billion, and, therefore, Armstrong's chapter 11 plan does not unfairly discriminate against commercial creditors and should be confirmed. The Plan was confirmed by the District Court on Aug. 14, 2006, and Armstrong emerged from Chapter 11 on Oct. 2, 2006. Nitram and Desseaux also filed their Chapter 11 cases on Dec. 6, 2000. The Bankruptcy Court confirmed their First Amended Joint Plan of Liquidation on Dec. 17, 2007. STEPHEN KAROTKIN, ESQ., at Weil, Gotshal & Manges, in New York, JASON M. MADRON, ESQ., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represented the Debtors. STEPHEN J. SHIMSHAK, ESQ., JOHN F. BAUGHMAN, ESQ., and ANDREW N. GORDON, ESQ., at Paul, Weiss, Rifkind, Wharton & Garrison, LLP, in New York, represented the Unsecured Creditors Committee. ELIHU INSELBUCH, ESQ., and NATHAN D. FINCH, ESQ., at Caplin & Drysdale Chartered, in Washington, DC, represented the Asbestos Claimants Committee. JANE W. PARVER, ESQ., at Kaye Scholer, LLP, in New York, represented Dean Trafelet, the future claimants representative. On April 3, 2006, Armstrong World acquired HomerWood Inc. On May 1, 2006, it acquired Capella Engineered Wood LLC, and its parent company, Capella Inc. On March 27, 2007, it entered into an agreement to sell the principal operating companies in its European textile and sports flooring business segment to Tapijtfabriek H. Desseaux N.V. and its subsidiaries. These businesses were classified as discontinued at Oct. 2, 2006. BERNARD L MADOFF: Feeder Fairfield Goes on Recovery Rampage ----------------------------------------------------------- Bankruptcy Law360 reports that Fairfield Sentry Ltd., Bernard L. Madoff's largest feeder fund, filed 57 New York federal court suits over a three-day span last week in a litigation binge aimed at recovering $3 billion the fund must turn over to Madoff's trustee. Separately, Bankruptcy Law360 reports that a Financial Industry Regulatory Authority arbitration panel held Thursday that Morgan Keegan & Co. Inc. should pay more than $250,000 to a Florida couple after placing their entire investment in a now-bankrupt hedge fund that steered investments to Bernard Madoff's Ponzi scheme. Law360 says the panel ruled that the Regions Financial Corp. subsidiary did very little due diligence on the investment to Greenwich, Conn.-based Greenwich Sentry LP, a feeder for Bernard L. Madoff Investment. 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 Dec. 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.). Mr. Picard has retained AlixPartners LLP as claims agent. 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 Feb. 18, 2011, a total of US$6.85 billion in claims by investors has been allowed, with US$791.1 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. About Fairfield Sentry Fairfield Sentry is being liquidated under the supervision of the Commercial Division of the High Court of Justice in the British Virgin Islands. It is one of the funds owned by the Fairfield Greenwich Group, an investment firm founded in 1983 in New York City. Fairfield Sentry and other Greenwich funds had among the largest exposures to the Bernard L. Madoff fraud. Fairfield Sentry Limited, filed for Chapter 11 protection in June 2010 (Bankr. S.D.N.Y. Case No. 10-13164). Greenwich Sentry, L.P., and an affiliate filed for Chapter 11 protection on November 19, 2010 (Bankr. S.D.N.Y. Case No. 10-16229) hoping to settle lawsuits filed against it in connection with its investments with Bernard L. Madoff. On May 18, 2009, Irving H. Picard, the trustee liquidating the estate of Mr. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC, filed a lawsuit against Fairfield Sentry and Greenwich, seeking the return of $3.55 billion that Fairfield withdrew from Madoff during the period from 2002 to Madoff's arrest in December 2008. Since 1995, the Fairfield funds invested about $4.5 billion with BLMIS. Mr. Picard claims that Fairfield knew or should have known about the fraud give that it received from BLMIS unrealistically high and consistent annual returns of between 10% and 21% in contrast to the vastly larger fluctuations in the S&P 100 Index. BLOCKBUSTER INC: Sale Procedures Hearing Adjourned to March 10 -------------------------------------------------------------- The hearing to consider Blockbuster Inc. and its debtor affiliates' proposed bidding procedures in connection with their proposal to sell substantially all of their assets has been adjourned from March 2 to March 10, 2011. Deadline to file objections were due on March 2. As previously reported, the Debtors seek authority from the United States Bankruptcy Court for the Southern District of New York to sell substantially all assets to Cobalt Video Holdco LLC established by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Varde Partners, Inc., who collectively hold more than 50% of the Senior Secured Notes and each of which is a member of the Steering Committee. At a hearing held March 2, 2011, Judge Burton Lifland said the stalking-horse bid is "the most aggressive document I have seen in 35 years on the bench," Bloomberg News reports. "If anything is going to fly, this garbage truck better sprout wings," Judge Lifland is quoted by Bloomberg News as saying. The proposed sale drew more than 40 objections from creditors. Creditors Blast Sale Motion Creditors, landlords and taxing authorities filed separate objections, responses, reservation of rights, declarations and joinders against the approval of the Sale Motion. Some Objecting Parties, including the Official Committee of Unsecured Creditors and the U.S. Trustee, asked Judge Lifland to convert the Debtors' Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code. The Objecting Parties are: -- Official Committee of Unsecured Creditors; -- Tracy Hope Davis, the United States Trustee for Region 2; -- Universal Studios Home Entertainment LLC; -- Lyme Regis Partners, LLC; -- Summit Distribution, LLC; -- The Walt Disney Company; -- 95 Washington LLC and Arlington Associates Parsippany LLC; -- Alamo Heights, et al.; -- Akamai Technologies, Inc.; -- AmREIT Casa Linda LP, AmREIT, Inc. and AmREIT C-Ranch LP; -- Aston Properties, Inc., et al.; -- AT&T Corp. and affiliates, and Sherman H. Moore; -- Autronic Plastics, Inc.; -- Braelinn Village I, LLC, et al.; -- Burleson ISD, et al.; -- Carrollton-Farmers Branch ISD and Lewisville ISD; -- CBL & Associates Management, Inc.; -- Centro Properties Group, et al.; -- Cognizant Technology Solutions U.S. Corporation; -- Collin County, Texas Tax Assessor-Collector/The Frisco ISD; -- Commack Shopping Center Associates and JMVD Realty, Inc.; -- County of Anderson, Texas, et al.; -- CS University Place, II, LLC, et al.; -- Diane Holbert, the Treasurer of Douglas County, Colorado; -- Florida Power & Light Company, et al.; -- FM Facility Maintenance; -- G-Force Industries, LLC; -- Glimcher Properties LP and Arlington Manor Co., Ltd.; -- Inland US Management, LLC, et al.; -- Intense Printing, Inc., et al.; -- Interactive Communications International, Inc.; -- Lelyn Lakeview Properties, L.P.; -- Life Insurance Company of North America, LLC; -- Mobile County, Alabama; -- M.O.R. Snowden Square 2 LLLP; -- Publix Super Markets, Inc.; -- Ramco-Gershenson Properties, L.P., et al.; -- RELP Richmond LLC and St. Albans Center II LLC; -- S.R. Weiner & Associates and Levin Management Corporation; -- Staples, Inc.; -- The Bank of New York Mellon Trust Company, N.A.; -- The Macerich Company, et al.; -- Townview Retail, LLC; -- TSCA-229 Limited Partnership, et al.; -- U.S. Bank National Association; -- Virginia Electric and Power Company; and -- Yahoo! Inc. and its various subsidiaries and affiliates Counsel for the Official Committee of Unsecured Creditors, Jay R. Indyke, Esq., at Cooley LLP, in New York, tells Judge Lifland that despite the Creditors Committee's repeated efforts to constructively participate in the process, neither the Debtors nor the Monarch Group included the Creditors Committee in negotiations concerning the structure of the proposed sale process. He adds that even after the filing of the Sale Motion, the Monarch Group made no effort to address the concerns expressed to it by the Creditors Committee concerning the proposed treatment of the bankruptcy estates and creditors. The Creditors Committee complains that the current sale proposal is "designed for the exclusive benefit" of Blockbuster potential buyers and would result in "devastation" for unsecured creditors owed around $486 million. The Creditors Committee says it wants to prevent the Monarch Group from exploiting Monarch Group's leverage over the powerless Debtors and causing further damage to these estates and creditors. Unless and until the Monarch Group is willing to address the important and legitimate concerns raised by the Creditors Committee, the Monarch Group should be denied the opportunity to liquidate its collateral under the auspice of a legitimate Chapter 11 sale process and these cases should be converted to cases under Chapter 7, the Creditors Committee points out. Tracy Hope Davis, the United States Trustee for Region 2, also asks the Court to convert the bankruptcy cases, allowing a Chapter 7 trustee to liquidate these assets through a sale process, and then to distribute the proceeds of the sale in accordance with the priority scheme established by the Bankruptcy Code. Ms. Davis insists that the Debtors are administratively insolvent and will not be able to confirm a feasible plan of reorganization. She notes that based on the Debtors' monthly operating reports and other information, it appears unlikely that there will be any balance to be paid to the Debtors. "[T]he Debtors appear to have structured their bankruptcy filing to allow Monarch, and the other distressed debt investors that now hold the allegedly secured debt, to take over the company for a pittance," Creditor Lyme Regis Partners, LLC, alleges in its objection. Lyme Regis contends that there is no valid business justification for the proposed speedy sale, other than the Debtors and the Secured Creditors feel like it. Lyme Regis adds that there is no supporting financial information for the Sale Motion, only conclusory testimony. The other Objecting Parties argue, among other things, that: -- proposed sale procedures should be amended; -- the Debtors discriminate between one group of administrative creditors and another group; -- given the stalking horse bid of $265 million and the prepetition secured claim of $630 million, it is unlikely that the Debtors will receive any proceeds from the sale; -- there is no basis under Chapter 11 of the Bankruptcy Code for distinguishing between the similarly situated pre-sale and the sale-related administrative creditors; -- the proposed sale to a subset of the Debtors' prepetition lenders appears to be the culmination of several months of intentional and coordinated misrepresentations by the Debtors to their postpetition vendors; -- vendors should be allowed to reclaim goods delivered to the Debtors; -- there is no "overall" or global benefit from the sale to the general creditor body or the estates as a whole; -- the Debtors should be required to make administrative payments; -- the bidding process should be transparent; -- insiders, including Carl Icahn and his affiliate companies, should be excluded from bidding; and -- the proposed sale is nothing more than an attempt by the Debtors to use Sections 363 and 364 of the Bankruptcy Code to: * discriminate against the vast majority of their administrative creditors; * circumvent the state law reclamation rights of their postpetition vendors, who have financed these cases for the last several months; * avoid converting these cases to Chapter 7 at a time when the Debtors concede they are administratively insolvent; * bypass the creditor protections of the Bankruptcy Code relating to the disclosure statement and plan process; and * "fast track" a sub rosa plan of reorganization to sell all of the assets of the estates to a group of insiders on credit terms to the detriment of all of the Debtors' stakeholders. According to Bloomberg News, the Objecting Parties and creditors, with exception of Summit Distribution LLC, agreed to defer until March 10, 2011, the consideration of the objections, the motions to reclaim assets or liquidate the Debtors' business. Judge Lifland directed Summit to get an accounting of how much money Blockbuster makes from Summit's product until that hearing. Debtors Disclose Sale to SEC In a regulatory filing with U.S. Securities and Exchange Commission dated February 25, 2011, Blockbuster disclosed its intentions under the Sale Motion and its entry into an Asset Purchase and Sale Agreement with the proposed Purchaser. In connection with the execution of the Purchase Agreement, the Purchaser deposited $20,000,000 into an escrow account, which will either be applied to the Purchase Price or released to one of the parties in accordance with the Purchase Agreement, said Roderick J. McDonald, Esq., Blockbuster Inc.'s vice president, general counsel, and secretary. The consummation of the transactions contemplated by the Purchase Agreement is subject to higher or better competing bids, approval of the Bankruptcy Court and certain closing conditions, including the fulfillment of typical covenants and agreements and the confirmation of certain representations and warranties set forth in the Agreement, completing the liquidation of certain retail stores, and the receipt of any required third party consents or governmental approvals. Mr. McDonald also revealed that the failure to meet certain milestones as required by the Debtors' Plan Support Agreement has resulted in a termination event under the terms of the PSA and an event of default under the DIP Credit Agreement. As a result of the termination event, the PSA automatically terminated on Feb. 11, 2011. On Feb. 6, 2011, the Requisite Lenders approved the Proposed Budget covering the period commencing with the fiscal week beginning on Feb. 6, 2011, and ending upon the earliest to occur of (i) Feb. 24, 2011, (ii) the entry of an order by the Court approving the sale expense motion, or (iii) the date the Approved Budget is terminated pursuant to the terms of the approval or the terms of the DIP Credit Agreement or the DIP Order. At this time, Mr. McDonald said, no other Proposed Budget has been approved by the Requisite Lenders or will otherwise be applicable for any period after the Last Applicable Date. The Approved Budget limits the Debtors' use of cash collateral. The Requisite Lenders approval of the Approved Budget and use of cash collateral is expressly subject to and conditioned upon the Debtors filing on or prior to Feb. 21, 2011, and not withdrawing thereafter, all of these criteria: (a) a motion requesting authority to elevate to superpriority status and pay these and only these: * covered administrative expense claims incurred or accrued by the Debtors from and after Feb. 25, 2011, in connection with the proposed sale; and * covered ongoing approved administrative expenses; and (b) a motion, which may be the same as the Sale Expense Motion, seeking authority to sell all or substantially all of the Debtors' assets pursuant to Section 363 of the Bankruptcy Code subject to the highest and best bid, all in form and substance agreed to by the Debtors with the reasonable consent of the Requisite Lenders, provided the consent cannot be unreasonably withheld. Covered Administrative Expense Claims and Covered Ongoing Approved Administrative Expenses will be defined as and limited to only those expenses, including appropriate costs to windup or otherwise resolve the Chapter 11 Cases, labeled as either Covered Administrative Expense Claims or Covered Ongoing Approved Administrative Expenses in a detailed sale budget to be approved by the Requisite Lenders. Some of the Covered Ongoing Approved Administrative Expenses may relate to the period prior to Feb. 25, 2011. Mr. McDonald asserted that the Sale Motion satisfied the Approval Criteria. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA, BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. Blockbuster Inc. and 12 U.S. affiliates initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan on Sept. 23, 2010 (Bankr. S.D.N.Y. Case No. 10-14997). It disclosed assets of $1 billion and debts of $1.4 billion at the time of the filing. Martin A Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. A steering group of senior secured noteholders is represented by James P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley Austin LLP. U.S. Bank National Association as trustee and collateral agent for the senior secured notes is represented by David McCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter & Hampton LLP. BDO Consulting is the financial advisor for U.S. Bank. Lenders led by Wilmington Trust FSB are providing the DIP financing. The DIP Agent is represented by Peter Neckles, Esq. and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York. The Official Committee of Unsecured Creditors has retained Cooley LLP as its counsel. Blockbuster's non-U.S. operations and its domestic and international franchisees, all of which are legally separate entities, were not included in the filings and are not parties to the Chapter 11 proceedings. In its latest monthly operating report filed with the Bankruptcy Court, Blockbuster disclosed $1.066 billion in assets, $422.2 million in liabilities not subject to compromise and $1.165 billion in liabilities subject to compromise, and a deficit of $533.8 million as of Nov. 28, 2010. Bankruptcy Creditors' Service, Inc., publishes BLOCKBUSTER BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Blockbuster Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) BLOCKBUSTER INC: Universal Studios Seeks Prompt Payment of Claims ----------------------------------------------------------------- Universal Studios Home Entertainment LLC, which is among the Debtors' 50 largest unsecured creditors, asks the Court to: (a) compel immediate payment of its administrative expense claim pursuant to Sections 105(a), 363(b) and 503(b) of the Bankruptcy Code; or (b) grant it adequate protection pursuant to Sections 361 and 363(e) of the Bankruptcy Code; or (c) order recall of goods pursuant to Sections 105(a) and 362(d) of the Bankruptcy Code to the extent necessary and applicable; or (d) grant it relief from the automatic stay pursuant to Section 362(d) of the Bankruptcy Code to permit reclamation of its goods. USHE shipped titles, both as sales transactions under certain invoice arrangements and on a lease arrangement, with Blockbuster Inc. In the absence of the protections and assurances ordered by the Court, USHE would not have leased, sold or licensed its products to the Debtors, John L. Scott, Jr., Esq., at Reed Smith LLP, in New York -- jlscott@ReedSmith.com -- informs Judge Lifland. Certain payments, known as "Minimum Guarantee" payments, with respect to the shipment of leased titles of "Charlie St. Cloud" and "Scott Pilgrim vs. the World," became due on Feb. 6, 2011. Collectively, the Minimum Guarantee payments now due with respect to these shipments alone is $720,000, Mr. Scott says. The Debtors failed to pay these amounts, and it is USHE's understanding that the Debtors will not cure the default in payment and will not pay USHE amounts that will come due with respect to the other 10 USHE Titles that were shipped on lease to the Debtors postpetition in reliance on the Court's orders and the Debtors' promises, Mr. Scott asserts. The "USHE Titles" refers those titles listed in the Revenue Share Agreement, including those titles already shipped to the Debtors: * Charlie St. Cloud; * Scott Pilgrim vs. the World; * The Kids are Alright; * Curious George TV; * Despicable Me; * The American; * Devil; * Nanny McPhee Returns; * Catfish; * Death Race 2; * It's Kind of a Funny Story; and * My Soul to Take USHE also has shipped many catalog titles and other titles to the Debtors for sale or rental, which are covered by invoices or other agreements between them, Mr. Scott discloses. He says that USHE sent demand letters to the Debtors in connection with the payments owing, and the Debtors have acknowledged receipt of the letters, but failed to timely pay the amounts owing. The Debtors do not dispute or deny their contractual obligations to USHE, but have advised USHE that they do not intend to pay the amounts owing to USHE, except to the extent the balance owing exceeds the balance that was due on Jan. 17, 2011, Mr. Scott asserts. He contends that the outstanding amount now owed to USHE -- as a result of the Debtors' Payment Breach and the resulting termination of the relevant agreements -- for all postpetition shipments totals $6,396,300. The total amount for which USHE is at risk, including the $6,396,300 now due and amounts that will come due in the next few weeks and months, totals $13,442,235, Mr. Scott informs the Court. "Not coincidentally, the Debtors accepted postpetition shipment of all 12 USHE Titles (along with many older releases) and received substantial revenues as a result of such shipments, yet did not inform USHE of its intent to breach its agreements with USHE until after USHE's most popular and highest revenue producing titles had all been shipped to the Debtors," Mr. Scott alleges. He adds that the timing of the Payment Breaches are particularly harmful given that the Debtors already received USHE's newest and most lucrative titles, and is only just now breaching the Agreements -- at a time when USHE's upcoming titles are relatively small in comparison. Mr. Scott also explains that a title's greatest rental value is during the period immediately following its "Street Date," and for every day that the Debtors retain the benefit and enjoyment of the USHE Titles and do not pay USHE the amounts they owe, the value of the USHE Titles decline in value. Thus, he insists, the Debtors are taking the full benefits of their bargain with USHE, but not the burdens, and have put USHE at risk for approximately $13.5 million. The Court will convene a hearing on March 17, 2011, to consider the request. Objections are due on March 10. * * * USHE also sought court approval to seal the declarations of John Roussey and Dick Longwell, and the exhibits and other confidential information supporting its request. However, Judge Burton Lifland found that there is no basis to grant the sealing request because the matter involves a two party agreement and good cause was not shown. The Debtors and USHE subsequently filed with the Court a stipulation to file certain confidential information under seal, including the RSA and the declarations of John Roussey and Dick Longwell. The parties assert that the documents contain sensitive trade secrets and commercial information regarding the parties' business relationship. Judge Lifland approved the stipulation. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA, BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. Blockbuster Inc. and 12 U.S. affiliates initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan on Sept. 23, 2010 (Bankr. S.D.N.Y. Case No. 10-14997). It disclosed assets of $1 billion and debts of $1.4 billion at the time of the filing. Martin A Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. A steering group of senior secured noteholders is represented by James P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley Austin LLP. U.S. Bank National Association as trustee and collateral agent for the senior secured notes is represented by David McCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter & Hampton LLP. BDO Consulting is the financial advisor for U.S. Bank. Lenders led by Wilmington Trust FSB are providing the DIP financing. The DIP Agent is represented by Peter Neckles, Esq. and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York. The Official Committee of Unsecured Creditors has retained Cooley LLP as its counsel. Blockbuster's non-U.S. operations and its domestic and international franchisees, all of which are legally separate entities, were not included in the filings and are not parties to the Chapter 11 proceedings. In its latest monthly operating report filed with the Bankruptcy Court, Blockbuster disclosed $1.066 billion in assets, $422.2 million in liabilities not subject to compromise and $1.165 billion in liabilities subject to compromise, and a deficit of $533.8 million as of Nov. 28, 2010. Bankruptcy Creditors' Service, Inc., publishes BLOCKBUSTER BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Blockbuster Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) BLOCKBUSTER INC: Utilities Want Security Deposits Doubled --------------------------------------------------------- Certain of Blockbuster Inc.'s utility companies jointly ask the Court, pursuant to Section 366(c)(3) of the Bankruptcy Code, to modify the Debtors' adequate assurance of payment to the Utilities. The Utilities also ask Judge Burton Lifland to shorten the notice period of their request. The Utilities are Virginia Electric and Power Company, doing business as Dominion Virginia Power, The East Ohio Gas Company, doing business as Dominion East Ohio, Dominion Hope, New York State Electric and Gas Corporation, Florida Power Corporation, doing business as Progress Energy Florida, Carolina Power & Light Company, doing business as Progress Energy Carolinas LLC, Consolidated Edison Company of New York, Inc., Orange and Rockland Utilities, Inc., Southern California Edison Company, Toledo Edison Company, The Cleveland Electric Illuminating Company, Ohio Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company, Pennsylvania Electric Company, Georgia Power Company, American Electric Power, Salt River Project, Duke Energy Carolinas LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, Inc., Duke Energy Kentucky, Inc., Piedmont Natural Gas Company, Tucson Electric Power, Jackson Electric Membership Corporation, San Diego Gas & Electric Company, Public Service Electric and Gas Company, The Connecticut Light and Power Company, Western Massachusetts Electric Company, Yankee Gas Services Company, Public Service Company of New Hampshire and Commonwealth Edison Company. Thomas R. Slome, Esq., at Meyer, Suozzi, English & Klein, P.C., in Garden City, New York -- tslome@msek.com -- relates that according to the letter agreement dated October 15, 2010, among the Debtors and the Utilities, the Debtors will pay all undisputed postpetition bills received from the Utilities for postpetition utility charges by the applicable due date on the invoice, which is a due date in accordance with the Utilities' applicable state laws, regulations and tariffs. Under their proposed sale of substantially all of their assets, says Mr. Slome, the Debtors want to include postpetition deposits held by the Utilities as part of the purchased assets, without regard to whether all postpetition utility charges incurred by the Debtors have been paid. This contravenes the express provisions of the Adequate Assurance Settlement Letter, which does not require a Utility holding a postpetition cash deposit to return any remaining portion of the deposit until a postpetition account is closed and all postpetition bills for that account are paid in full, he asserts. The Utilities holding a postpetition cash deposit as adequate assurance have filed a limited objection to the Sale Motion objecting to the Debtors' proposal to include deposits held by the Utilities as part of the purchased assets. By this motion, the Utilities are seeking a modification of the one month security agreed upon by the Debtors and the Utilities through the Adequate Assurance Settlement Letter to two-month deposits because of these changed circumstances: (a) Subsequent to the Debtors and the Utilities executing the Adequate Assurance Settlement Letter, the Debtors' DIP Facility has been terminated. In addition, the DIP Lenders will only allow the limited use of cash collateral during the sale process if the Court approves all of the relief in the Sale Motion; (b) The Debtors propose to pay the Utilities' postpetition charges through the use of cash collateral, subject to approval of the DIP Lenders, pursuant to the Sale Budget, which will not even be disclosed to the Utilities until the hearing on the Sale Motion. Hence, it is unknown whether sufficient cash will be budgeted for the payment of all of the Utilities' postpetition utility charges; (c) Even if sufficient cash is budgeted for the payment of utility charges in the Sale Budget, it is unlikely it will be available to the Utilities because the Utilities bill the Debtors in arrears, which means their invoices will not be issued until after a proposed sale closes, and the Purchaser is seeking the right to convert the case after the proposed sale closes, which would prevent the Utilities from getting paid from sums that were purportedly budgeted for their bills; and (d) The Debtors propose to sell postpetition deposits held by the Utilities to the Purchaser. The Court will convene a hearing on March 17, 2011, to consider the request. Objections are due on March 15. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA, BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. Blockbuster Inc. and 12 U.S. affiliates initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan on Sept. 23, 2010 (Bankr. S.D.N.Y. Case No. 10-14997). It disclosed assets of $1 billion and debts of $1.4 billion at the time of the filing. Martin A Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. A steering group of senior secured noteholders is represented by James P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley Austin LLP. U.S. Bank National Association as trustee and collateral agent for the senior secured notes is represented by David McCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter & Hampton LLP. BDO Consulting is the financial advisor for U.S. Bank. Lenders led by Wilmington Trust FSB are providing the DIP financing. The DIP Agent is represented by Peter Neckles, Esq. and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York. The Official Committee of Unsecured Creditors has retained Cooley LLP as its counsel. Blockbuster's non-U.S. operations and its domestic and international franchisees, all of which are legally separate entities, were not included in the filings and are not parties to the Chapter 11 proceedings. In its latest monthly operating report filed with the Bankruptcy Court, Blockbuster disclosed $1.066 billion in assets, $422.2 million in liabilities not subject to compromise and $1.165 billion in liabilities subject to compromise, and a deficit of $533.8 million as of Nov. 28, 2010. Bankruptcy Creditors' Service, Inc., publishes BLOCKBUSTER BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Blockbuster Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) BLUEGREEN CORP: Inks $60MM Revolving Facility With Liberty Bank --------------------------------------------------------------- Bluegreen Corporation entered into a loan agreement and related documents in effect as of Feb. 11, 2011, for a revolving timeshare receivables hypothecation facility with a syndicate of lenders led by Liberty Bank and assembled by Wellington Financial. On Feb. 28, 2011, the Company agreed to the final documentation requirements for advances under the facility. The $60 million facility provides for an 85% advance on eligible receivables pledged under the facility during a two-year period ending in February 2013, subject to customary terms and conditions. Availability under the New Facility is reduced by amounts currently outstanding to certain syndicate participants under Bluegreen's existing Liberty Bank timeshare receivables facility. On Feb. 28, 2011, the outstanding amounts on the Existing Facility were approximately $47.5 million; therefore, initial availability under the New Facility was approximately $12.5 million. However, as outstanding amounts on the Existing Facility amortize over time, the New Facility will revolve up to $60 million, subject to eligible collateral and customary terms and conditions. Principal repayments and interest will be paid as cash is collected on the pledged receivables, with the remaining balance due in February 2016. Indebtedness under the New Facility bears interest at the Prime Rate (as published in the Wall Street Journal) plus 2.25%, subject to a floor of 6.5%. A full-text copy of the Third Amendment to Receivables Loan Agreement is available for free at: http://ResearchArchives.com/t/s?7488 About Bluegreen Corp. Bluegreen Corporation -- http://www.bluegreencorp.com/-- provides places to live and play through its resorts and residential community businesses. The Company's balance sheet at Sept. 30, 2010, showed $1.13 billion in total assets, $708.04 million in total liabilities, and $423.22 million in stockholders' equity. In December 2010, Standard & Poor's Rating Services raised its corporate credit rating on Bluegreen Corp to 'B-' from 'CCC'. S&P's rating outlook on the company is stable. In S&P's view, Bluegreen currently has adequate sources of liquidity to cover its needs over the next 12-18 months mainly due to the successful closing of a timeshare securitization transaction. B.R. SUMMERLIN: Taps Gordon Silver to Handle Reorganization Case ---------------------------------------------------------------- B.R. Summerlin Property, LLC, asks the U.S. Bankruptcy Court for the District of Nevada for permission to employ Gordon Silver as counsel. GS will, among other things: a. prepare on behalf of the Debtor all necessary or appropriate motions, applications, answers, orders, reports, and other papers in connection with the administration of the Debtor's estate; b. take all necessary or appropriate actions in connection with a plan or plans of reorganization and related disclosure statement(s) and all related documents; and c. take all necessary actions to protect and preserve the estate of Debtor, including the prosecution of actions on Debtor's behalf, the defense of any actions commenced against Debtor, the negotiation of disputes in which Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate. Gregory E. Garman, Esq., managing shareholder at GS, tells the Court that the firm's retainer is $40,000, with an additional $60,000 retainer to be paid by the Debtors' members. Specifically, prior to the filing of the petition, the Debtor's affiliate, Sign of the Dove, transferred $40,000 to GS on behalf of the Debtor as an initial retainer. Mr. Garman adds that the Debtor paid GS $4,955 for legal services rendered in connection with its restructuring, consisting of $3,916 in legal fees and $1,039 in costs. GS is also currently holding in retainer the sum of $35,045. The hourly rates of GS's professionals are: Paraprofessionals $130 - $175 Associates $185 - $350 Shareholders $455 - $700 To the best of the Debtor's knowledge, GS is a "disinterest person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Court set a March 16, 2011, hearing to consider the Debtor's request for employment of GS as counsel. Objections, if any, are due 14 days preceding the hearing date. The firm can be reached at: Gregory E. Garman, Esq. Gabrielle A. Hamm, Esq. GORDON SILVER 3960 Howard Hughes Pkyw., 9th Floor Las Vegas, NV 89169 Tel: (702) 796-5555 Fax: (702) 369-2666 E-mail: ggarman@gordonsilver.com ghamm@gordonsilver.com About B.R. Summerlin Property Woodland Hills, California-based B.R. Summerlin Property, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-10148) on Jan. 5, 2011. The Company disclosed $23,066,151 in assets and $15,414,103 in liabilities. Affiliates B.R. Brookfield Commons No. 1, LLC (Bankr. D. Nev. Case No. 10-38835) and B.R. Brookfield Commons No. 2, LLC (Bankr. D. Nev. Case No. 10-38838) filed separate Chapter 11 petitions on Nov. 29, 2010. BRAMPTON PLANTATION: Branch Banking Wants Ch. 11 Case Dismissed --------------------------------------------------------------- Branch Banking and Trust Company asks the Hon. Lamar W. Davis, Jr., of the U.S. Bankruptcy Court for the Southern District of Georgia to dismiss the Chapter 11 case of Brampton Plantation LLC. According to the bank, the Chapter 11 case is a single asset real estate case that was filed in bad faith on the eve of a foreclosure sale by BB&T and for the purpose of hindering, delaying and frustrating BB&Ts legitimate efforts to realize upon its collateral. Under applicable Eleventh Circuit precedent, this case should be dismissed, says BB&T. According to BB&T's filing, the Debtor is indebted to BB&T in the principal amount of $23,966,217 in respect of amounts owed under the Revolving Note, plus the contingent amount of $853,988 in respect of undrawn and unexpired letters of credit issued by BB&T at the request of the Debtor, plus accrued interest, costs, other charges, and legal fees and expenses for which the Debtor is liable to BB&T under the Loan Documents and applicable law. The current value of the collateral is allegedly "millions of dollars less" than the obligations owed by the Debtor to BB&T. Parker, Hudson, Rainer & Dobbs LLP in Atlanta, Georgia, represents the bank. A pre-trial hearing is set for March 15, 2011, at 2:00 p.m., and a trial hearing on April 11, 2011, at 10:00 a.m., to consider the bank's request for dismissal of the Debtor's case. About Brampton Plantation Headquartered in Upper Marlboro, Maryland, Brampton Plantation, LLC, is a development company deriving revenues from the sale of lots on its condominium project on a 91 acre parcel of property located in historic downtown Savannah on Hutchinson Island, located at the northeast corner of Wayne Shackleford Road and Grand Prize of America Avenue known as The Reserve. The completed development of the Property is planned to have a total of 444 lots and 371 multifamily/condominium units. Before filing for bankruptcy, the Debtor had 206 finished lots which were completed and platted. Another 17 lots were approximately 98% complete. Brampton Plantation filed for Chapter 11 protection (Bankr. S.D. Ga. Case No. 10-40963) on May 3, 2010. Attorneys at McCallar Law Firm and McNamee Hosea Jernigan Kim Greenan & Lynch, P.A., represent the Debtor. The Debtor estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. BRIGHAM EXPLORATION: S&P Cuts Rating to $300 Mil. Notes to 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its issue- level rating on Austin, Tex.-based Brigham Exploration Co.'s $300 million 8.75% senior unsecured notes to 'B-' (one notch below the corporate credit rating) from 'B+' and revised the recovery rating on those notes to '5' from '2', indicating S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. "The rating actions follow Brigham's recent announcement of an amended and restated senior credit facility with an initial borrowing base of $325 million," said Standard & Poor's credit analyst Patrick Y. Lee. S&P's recovery analysis reflects this new facility's increased borrowing base, which is substantially more than the prior credit facility's $110 million borrowing base, and the results of a valuation of year-end 2010 reserves based on a company-provided PV10 report using S&P's stress price assumptions of $45 per barrel of West Texas Intermediate crude oil and $4.00 per million BTU of Henry Hub natural gas. The 'B' rating and stable outlook on Brigham reflect its small reserve base, its modest production, and sizable capital spending in 2011. The ratings also incorporate Brigham's solid growth prospects in the Williston Basin, its significant exposure to high oil prices as a result of increased oil production, and its highly competitive cost structure relative to peers with a significant oil mix. Despite leverage increasing, potentially to slightly less than 3x under S&P's price deck assumptions, the outlook is stable based on S&P's expectation that leverage will still be in an acceptable range for the rating and that Brigham will have sufficient cash flow and liquidity over the near term to fund capital expenditures and to pay interest. S&P could lower the ratings if Brigham's liquidity deteriorates to less than $75 million, or if debt leverage exceeds 5x. S&P could take a positive rating action if the company markedly improves its business profile in terms of scale and scope, is able to maintain adequate liquidity, and improves operating cash flow to support capital expenditures and debt payments for an extended period of time. BRUNSCHWIG & FILS: Kravet Inc. Wins Auction for Firm ---------------------------------------------------- Brunschwig & Fils announced Kravet Inc. as the winner of the Brunschwig & Fils' auction after spirited bidding against Sovereign Partners. Pending bankruptcy court approval and closing on the sale, Kravet is expected to commence operating the Brunschwig & Fils business by the end of March 2011. For the past 111 years, the Peardon family has overseen Brunschwig & Fils ensuring that the world's finest interior designers and decorators received the highest quality, luxury home products including fabrics, wallcoverings, trims, lighting, furniture and accessories. The iconic brand name drew significant interest from national and international, financial and strategic potential bidders. The Kravet family's commitment to innovation has helped the Kravet company transform from a small family-run fabric house in 1918 to today's global leader in home furnishings, representing brands and designers from all over the world. Kravet is a fourth generation family run company, and one of the world's largest privately held distributors of fabrics and home furnishings with locations worldwide. Kravet offers the highest level of quality products and customer service and also owns high-end brands Lee Jofa and GP&J Baker. During the Chapter 11 transition, Kravet provided $4 million in post-bankruptcy financing to Brunschwig & Fils to ensure the company would be a financially sound trading partner during the bankruptcy period. Brunschwig & Fils is based in White Plains, New York and has showrooms in 21 cities with a Design Studio in the New York D&D Building. Brunschwig has international distribution in 24 countries. The Chapter 11 filing was announced by Brunschwig & Fils on January 12, 2011 as a result of the financial impact of the recent years' economic recession. It is the intent of both Brunschwig & Fils and Kravet that the transition of ownership is seamless. About Brunschwig & Fils Over one hundred and ten years ago, Brunschwig & Fils was founded as a tapestry weaving mill in Aubusson and Bohain, France. Brunschwig & Fils designs and distributes traditional and contemporary decorative fabrics, wall coverings, trimmings, upholstered furniture, lamps, tables, mirrors and accessories. All design is performed in-house at the Studio in the Decoration & Design Building, NYC and they work with 150 mills around the world. The company is headquartered in White Plains, NY with 21 national and international showrooms. Additionally, there are agents and distributors in 24 countries. Brunschwig & Fils filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-22036) in White Plains, New York on Jan. 12, 2011. Alan D. Halperin, Esq., at Halperin Battaglia Raicht LLP, in New York, serves as the Debtor's bankruptcy counsel. The Debtor estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. C&H ARIZONA: Court Approves MCA Financial as Financial Advisor -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona authorized C&H Arizona-Stucky LLC to employ MCA Financial Group Ltd. as its financial advisor. The Debtor said the firm has the expertise to enable the Debtor to provide the appraisal services needed by the Debtor in the Chapter 11 case. The Debtor told the Court that a sum of $6,000 will be paid as a retainer to the firm. The Debtor said it has sufficient funds that are not cash collateral to make all necessary payments to the firm. The Debtor assured the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About C&H Arizona-Stucky, LLC Walnut Creek, California-based C&H Arizona-Stucky, LLC, is the owner and current operator of a 113,071 square feet retail shopping center located at 15440 North Scottsdale Road, Scottsdale, Arizona. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 10-21165) on July 7, 2010. Attorneys at Simbro & Stanley, PLC, represent the Debtor. The Company disclosed $18,064,966 in assets and $9,167,574 in liabilities as of the Petition Date. CAESARS ENTERTAINMENT: Files Form 10-K; Posts $823.30MM Net Loss ---------------------------------------------------------------- Caesars Entertainment Corporation filed its annual report on Form 10-K with the U.S. Securities and Exchange Commission. The Company reported a net loss of $823.30 million on $8.81 billion of net revenue for the year ended Dec. 31, 2010, compared with net income of $846.40 million on $8.90 billion of net revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $28.58 billion in total assets, $26.91 billion in total liabilities and $1.67 billion in total stockholders' equity. A full-text copy of the Annual Report is available for free at: http://ResearchArchives.com/t/s?748b About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's on mid-November 2010. Harrah's carries 'Caa3' long term corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service. It has a 'B-' issuer credit rating, with 'stable' outlook, from Standard & Poor's. Caesars Entertainment Inc. carries a 'Ca' long term rating from Moody's. As reported by the TCR on March 3, 2011, Moody's Investors Service upgraded Caesars Entertainment Corporation's Corporate Family ratings and Probability of Default ratings to Caa2. CET's Caa2 Corporate Family Ratings reflect very high leverage, weak interest coverage, the company's debt financed growth strategy, and Moody's view that the company's current capital structure in unsustainable in the long-term. The ratings reflect Moody's expectation that gaming demand will rebound very slowly over the next several years. However, in the absence of a material de-leveraging transaction, Moody's do not expect the company's capital structure to improve materially over the next few years. Additionally, given CEC's weak credit profile, there is a possibility that the company could again pursue transactions that will result in impairment of debt holder claims as a means to improve its capital structure. CAESARS ENTERTAINMENT: S&P Gives 'B-' to Ling and Octavius ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B-' corporate credit rating to two indirect wholly owned subsidiaries of Las Vegas-based Caesars Entertainment Corp., currently referred to as Linq Borrower and Octavius Borrower. The rating outlook is stable. At the same time, S&P assigned the borrowers' proposed $400 million senior secured term loan due 2017 S&P's preliminary 'B+' issue-level rating (two notches higher than the preliminary 'B-' corporate credit rating) with a preliminary recovery rating of '1', indicating S&P's expectation for very high (90%-100%) recovery for lenders in the event of a payment default. Linq Borrower and Octavius Borrower will be co-borrowers under the proposed term loan, which will not be guaranteed by direct parent Caesars Entertainment Operating Co. Inc. or the ultimate parent, Caesars Entertainment Corp. These preliminary ratings are subject to S&P's review of executed documentation. Proceeds from the term loan, along with an equity contribution by Caesars Entertainment Corp. and expected cash flows from the projects, will be used: * To fund completion of the Octavius Tower at Caesars' Palace Las Vegas, To fund the design and development of a retail, dining, and entertainment corridor located between the Imperial Palace Hotel and Casino and the Flamingo Las Vegas on the Las Vegas Strip, and * For financing costs, including a 15-month interest reserve. The preliminary 'B-' corporate credit rating on Linq Borrower and Octavius Borrower ("the Subsidiary Borrowers") reflects the aggressive financial policy and weak credit profile of Caesars Entertainment Corp. "It is S&P's conclusion that, despite the fact that the Subsidiary Borrowers will be structured as unrestricted subsidiaries of CEC, the credit quality of the Subsidiary Borrowers is linked to the credit quality of CEC," said Standard & Poor's credit analyst Ben Bubeck. "S&P's is concerned that a bankruptcy at CEC could cause a bankruptcy at the Subsidiary Borrowers if management determined it to be in its best interest to include the Subsidiary Borrowers in a broader bankruptcy proceeding." CAPITOL BANCORP: Common Stock Delisted From NYSE ------------------------------------------------ National Stock Exchange LLC notified the U.S. Securities and Exchange Commission on Form 25 regarding the termination or removal from listing of Capitol Bancorp Ltd.'s common stock pursuant to Section 12(b) of the Securities Exchange Act of 1934. About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE: CBC) is a national community banking company, with a network of bank operations in 14 states. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Mich., and Phoenix, Ariz. The Company's balance sheet at Sept. 30, 2010, shows $4.23 billion in total assets, $4.16 billion in total liabilities, and equity of $77.68 million. In September 2009, Capitol and its second-tier bank holding companies entered into a written agreement with the Federal Reserve Bank of Chicago under which Capitol has agreed, among other things, to submit to the Reserve Bank a written plan to maintain sufficient capital at Capitol on a consolidated basis and at Michigan Commerce Bank (as a separate legal entity on a stand- alone basis); and a written plan to enhance the consolidated organization's risk management practices, a strategic plan to improve the consolidated organization's operating results and overall condition and a cash flow projection. Certain of Capitol's bank subsidiaries have entered into formal agreements with their applicable regulatory agencies. Those agreements provide for certain restrictions and other guidelines and/or limitations to be followed by the banks. In 2009, Capitol commenced the deferral of interest payments on its various trust-preferred securities, as is permitted under the terms of the securities, to conserve cash and capital resources. The payment of interest may be deferred for periods up to five years. During such deferral periods, Capitol is prohibited from paying dividends on its common stock (subject to certain exceptions) and is further restricted by Capitol's written agreement with the Federal Reserve Bank of Chicago. Accrued interest payable on those securities approximated $18.1 million at June 30, 2010. CAPITOL BANCORP: Incurs $254.36 Million Net Loss in 2010 -------------------------------------------------------- Capitol Bancorp Limited reported a net loss of $91.26 million on $38.62 million of total interest income for the three months ended Dec. 31, 2010, compared with a net loss of $85.55 million on $46.71 million of total interest income for the same period a year ago. The Company also reported a net loss of $254.36 million on $163.69 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $264.54 million on $197.78 million of total interest income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.54 billion in total assets, $3.57 billion in total liabilities and $38.68 million in total deficit. Capitol's Chairman and CEO Joseph D. Reid said, "We continue to focus on risk management and enhancing balance-sheet strength, while improving liquidity. These improvements have resulted from several regional consolidations and multiple bank divestitures over the past eighteen months. In December 2010, we announced a comprehensive capital strategy with the operating objectives of deleveraging our consolidated balance sheet, reducing nonearning assets and strategically redeploying capital to those affiliates weakened by the economic environment. We completed the first phase of this comprehensive strategy in January 2011 with the addition of $19.5 million in capital from the exchange of some of our trust-preferred securities for previously-unissued common stock and have taken steps to implement the next steps through an increase in the authorized shares of the capital stock of the Corporation, the potential for exchange offers for our development subsidiaries and shareholders' authorization for a potential reverse stock split in the future. The current challenges remain significant and the burdens represented by elevated levels of nonperforming assets continue to consume capital and managerial resources; however, we are encouraged that these efforts and others will support the Corporation as it continues to weather the storm and return to fundamental performance over time." A full-text copy of the press release announcing the financial results is available for free at: http://ResearchArchives.com/t/s?7484 About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE: CBC) is a national community banking company, with a network of bank operations in 14 states. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Mich., and Phoenix, Ariz. The Company's balance sheet at Sept. 30, 2010, shows $4.23 billion in total assets, $4.16 billion in total liabilities, and equity of $77.68 million. In September 2009, Capitol and its second-tier bank holding companies entered into a written agreement with the Federal Reserve Bank of Chicago under which Capitol has agreed, among other things, to submit to the Reserve Bank a written plan to maintain sufficient capital at Capitol on a consolidated basis and at Michigan Commerce Bank (as a separate legal entity on a stand- alone basis); and a written plan to enhance the consolidated organization's risk management practices, a strategic plan to improve the consolidated organization's operating results and overall condition and a cash flow projection. Certain of Capitol's bank subsidiaries have entered into formal agreements with their applicable regulatory agencies. Those agreements provide for certain restrictions and other guidelines and/or limitations to be followed by the banks. In 2009, Capitol commenced the deferral of interest payments on its various trust-preferred securities, as is permitted under the terms of the securities, to conserve cash and capital resources. The payment of interest may be deferred for periods up to five years. During such deferral periods, Capitol is prohibited from paying dividends on its common stock (subject to certain exceptions) and is further restricted by Capitol's written agreement with the Federal Reserve Bank of Chicago. Accrued interest payable on those securities approximated $18.1 million at June 30, 2010. CASCADE ACCEPTANCE: Court Accepts Farella Braun's Fees ------------------------------------------------------ The primary job of the Creditors' Committee in a Chapter 11 case is to represent the interests of unsecured creditors. In many Chapter 11 cases, the Committee is an ally of the debtor in possession supporting efforts to reorganize, often in the face of opposition from secured creditors. That was not the case in Cascade Acceptance Corporation's chapter 11 proceedings. The Committee was a thorn in the side of the Debtor from its inception. The Court could see this case was going to be somewhat unusual when the Committee filed a seemingly baseless objection to the cash collateral stipulation the Debtor had reached with the secured creditor. During the case, the Committee took the position that the reorganization efforts were primarily aimed at protecting the interests of the Debtor's insiders and equity interests. The Committee supported the retention of an examiner to review the Debtor's conduct and filed numerous objections to claims filed by insiders. The Debtor and the Committee entered into negotiations to resolve these objections and reach a consensus on a plan of reorganization. When these negotiations failed, the Debtor converted the case to Chapter 7. Counsel for the Committee, Farella Braun + Martel LLP, has filed an application pursuant to Sec. 330(a)(1) of the Bankruptcy Code for allowance of $400,814.50 in fees and $9,090.29 in expenses incurred while the case was in Chapter 11. A group of insiders, largely the persons who filed the claims to which the Committee objected, has objected to the fee application. The primary ground for the objection is circumstantial: the time expended by counsel for the Committee was far greater than the time spent on the case by counsel for the Debtor. While in typical cases the time spent by counsel for the Committee will be comparable to the time spent by counsel for the debtor, a disparity is not per se a ground for disallowance. It is really nothing more than a basis for inquiry. In this case, the Committee and the Debtor were at loggerheads and had different agendas. That completely explains the difference in time spent on the case. The difference having been satisfactorily explained, there is no reason for the court to limit the fees of Committee counsel just because its fees exceed by a considerable sum those incurred by Debtors' counsel. The objecting parties make a related argument that the fees of the Committee counsel should be limited to those ordinarily charged by a small local law firm like Debtor's counsel and not a large San Francisco law firm. However, according to Bankruptcy Judge Alan Jaroslovsky, there is no logical or legal basis for such a restriction. The court is only an hour's drive from San Francisco, and San Francisco law firms appear here on a regular basis. The Committee was free to retain its own counsel, and presumably understood that hiring a San Francisco law firm would result in a larger legal bill having priority over general unsecured claims. The members of the Committee appear sophisticated and all have substantial claims. Their choice of counsel appears to be reasonable and far from unusual. According to Judge Jaroslovsky, the fact that the San Francisco law firm hired by the Committee charged a higher hourly rate than Santa Rosa attorneys does not justify a reduction to Santa Rosa rates, citing In re Baldwin United Corp., 36 B.R. 401, 402 (Bkrtcy.S.D.Ohio 1984). There is no evidence that the rates charged by Committee counsel are anything other than normal hourly rates. Those rates are comparable to other San Francisco law firms. The normal hourly rates of comparably skilled counsel in nonbankruptcy cases are the starting point in a fee award. 11 U.S.C. Sec. 330(a)(4)(F). Where the court approves employment of out-of-town counsel, it also tacitly approves out-of-town rates, Judge Jaroslovsky said, citing In re Allegheny Intern., Inc., 131 B.R. 24, 31 (W.D.Pa. 1991). The objection questioned the propriety and amount of several individual areas of billing. However, Judge Jaroslovsky said, counsel for the Committee was able to justify each item. The court finds no improper or excessive amounts in the fee application. "The court understands the objecting parties' frustrations. To some extent, they were shared by the court. During the course of the case the Committee regularly -- indeed, predictably -- took positions which were combative and uncooperative. However, the court cannot reduce a fee merely because counsel forced the court to work. There is every indication that the actions of the Committee's counsel were done with the knowledge and consent of the Committee and at its direction and furthered the creditors' legitimate interests. None of the actions came close to a breach of ethics or a violation of Rule 9011 of the Federal Rules of Bankruptcy Procedure. The court accordingly finds no basis for disallowance of any fees," Judge Jaroslovsky said. The objection will be overruled and the application allowed as filed. A copy of Judge Jaroslovsky's March 1, 2011 Memorandum is available at http://is.gd/qYBhkYfrom Leagle.com. About Cascade Acceptance Mill Valley, California-based Cascade Acceptance Corporation filed for Chapter 11 bankruptcy protection on Nov. 23, 2009 (Bankr. N.D. Calif. Case No. 09-13960). Douglas B. Provencher, Esq., at Law Offices of Provencher and Flatt, assisted the Company in its restructuring effort. The Company estimated $50 million to $100 million in assets and debts. As reported by the Troubled Company Reporter on July 19, 2010, Judge Jaroslovsky converted the Chapter 11 case to one under the Chapter 7 of the Bankruptcy Code. CATALYST PAPER: Says It Gained Momentum Despite Market Challenges ----------------------------------------------------------------- Catalyst Paper Corporation filed with the U.S. Securities and Exchange Commission its 2010 Sustainability Report. The Report covers the period from Jan. 1 to Dec. 31, 2010, and relates to all of Catalyst's wholly owned operations and world-wide sales. The Company said in the Report that in 2010, it was named: -- One of the 50 Best Corporate Citizens in Canada by Corporate Knights magazine -- One of the 50 Most Socially Responsible Corporations in Canada by Jantzi-Sustainalytics and Maclean's magazine -- One of British Columbia's 50 Strongest Publicly Traded Companies by the Vancouver Sun - BusinessBC -- "Firmly among the best of the best" for the quality of the Company's voluntary response to the Carbon Disclosure Project Catalyst also continued to be listed on the Jantzi Social Index, consisting of 60 Canadian companies that meet a set of broad-based environmental, social and governance rating criteria. Catalyst President and Chief Executive Officer said "Looking back on 2010, I see clear evidence that our company gained momentum as market conditions continued to challenge and transform our industry. As a company, we are on a roll, and we are intent on sustaining our momentum through 2011 and beyond." A full-text copy of the Sustainability Report is available for free at http://ResearchArchives.com/t/s?748a About Catalyst Paper Based in Richmond, British Columbia, in Canada, Catalyst Paper Corporation (TSX:CTL) manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With six facilities located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 2.5 million tonnes. The Company's balance sheet at Sept. 30, 2010, showed C$1.73 billion in total assets, C$1.32 billion in total liabilities, and stockholders' equity of C$406.2 million. * * * In mid-March 2010, Moody's Investors Service downgraded Catalyst's Corporate Family Rating to 'Caa1' from 'B3'. Catalyst's CFR downgrade anticipates a marked deterioration in the company's financial performance over the coming year, with significant EBITDA erosion compared to 2009 levels and negative free cash flow generation. In May 2010, Standard & Poor's Ratings Services revised the outlook on Catalyst to stable from negative. S&P affirmed the 'CCC+' long-term corporate credit rating on the Company. The ratings on Catalyst reflect S&P's view of the company's highly leveraged capital structure, history of weak profitability, fiber supply issues, and its participation in cyclical commodity markets. In Standard & Poor's opinion, these risks are partially mitigated by the company's revenue diversity and improving cost profile. CB HOLDING: Wants to Double DIP Loan Due to Sale Delays ------------------------------------------------------- Dow Jones' DBR Small Cap reports that CB Holding Corp. said it needs to more than double its borrowing capacity under its bankruptcy loan in order to wrap up several sale transactions that have taken longer than expected to execute. The report relates that the company is seeking emergency court permission to increase its bankruptcy financing-provided by Ally Commercial Finance LLC, one of the company's pre-bankruptcy senior secured lenders-to $5.5 million. In papers filed with the U.S. Bankruptcy Court in Wilmington, Del., Debtor warned that without the extra funding, its case could be thrown into turmoil, according to DBR. "The alternative-i.e., the termination of the post petition financing and potential conversion of these cases-could have catastrophic effects on the debtors, their estates, and the ultimate value of their assets, which would not benefit any parties," CB Holding said, the report adds. About CB Holding New York-based CB Holding Corp. operated 20 Charlie Brown's Steakhouse, 12 Bugaboo Creek Steak House, and seven The Office Beer Bar and Grill restaurants when it filed for bankruptcy protection. The Company closed 47 locations before filing for Chapter 11. Following a bankruptcy auction, CB Holding sold its The Office restaurant chain to winning bidder Villa Enterprises Ltd. for $4.68 million. The Debtor has signed a $5.2 million contract for an affiliate of Praesidian Capital Opportunity Fund III-A LP to buy the 20 Charlie Brown's locations absent a higher bid at auction in March. There will be a hearing in bankruptcy court on March 9 to approve auction and sale procedures. CB Holding and its affiliates filed for Chapter 11 bankruptcy protection on Nov. 17, 2010 (Bankr. D. Del. Case No. 10-13683). Christopher M. Samis, Esq., and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., assist the Debtors in their restructuring effort. The Garden City Group, Inc., is the Debtors' notice, claims and solicitation agent. Jeffrey N. Pomerantz, Esq., Jason S. Pomerantz, Esq., and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Official Committee of Unsecured Creditors. CB Holding estimated its assets at $100 million to $500 million and debts at $50 million to $100 million. * * * According to the Troubled Company Reporter on Feb. 11, 2011, CB Holding received an order from Bankruptcy Judge Mary Walrath extending its exclusive periods to file and secure support for a Chapter 11 plan. The exclusive time for the Debtor to file a plan of reorganization has been extended to June 15. The Debtor has until Aug. 12 to solicit support for the plan. The order is without prejudice for a request by the Debtor for another extension. CHAMPION ENTERPRISES: Cleared to Liquidate in Chapter 11 -------------------------------------------------------- Bankruptcy Law360 reports that Champion Enterprises Inc. reached a deal Monday with unsecured creditors on funding for a litigation trust that stands as the sole means of recovery for the creditors, clearing the Company's Chapter 11 liquidation plan for confirmation. Judge Kevin Gross said at a hearing in the U.S. Bankruptcy Court for the District of Delaware that he would sign off on the plan when it is submitted, according to Law360. About Champion Enterprises Troy, Michigan-based Champion Enterprises, Inc., and its subsidiaries are international manufacturers of factory-built homes and steel-framed modular buildings, with operations in the United States, Canada and the United Kingdom. Buildings constructed by Champion and its subsidiaries consist of both single and multi-module units designed for either commercial or residential purposes. Champion products range from single-module HUD-Code homes to sophisticated commercial structures such as hotels. The Company filed for Chapter 11 protection on November 15, 2009 (Bankr. D. Del. Case No. 09-14019). The Company's affiliates also filed separate bankruptcy petitions. James E. O'Neill, Esq., Laura Davis Jones, Esq., Mark M. Billion, Esq., Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, assist Champion in its restructuring effort. The Company disclosed $576,527,000 in asset and $521,337,000 in liabilities as of October 3, 2009. CHARLES COWIN: Hires CB Richard Ellis for Appraisal Services ------------------------------------------------------------ Charles Cowin asks the U.S. Bankruptcy Court for the Southern District of Texas for permission to employ: Thomas J. Rottkamp CB RICHARD ELLIS, INC. 2415 E. Camelback Road Phoenix, AZ 85016 to appraise various tracts of real estate located in Angel Fire, New Mexico, which are the subject of a motion for relief from stay filed by First American Bank. While CBRE has performed appraisal services for JP Morgan Chase Bank and BAC Home Loans Servicing -- two of Mr. Cowin's creditors -- in matters unrelated to this chapter 11 case, neither the Debtor nor CBRE believe that gives rise to any debilitating conflict. The Debtor has agreed to pay CB Richard Ellis a $12,500 flat fee for its services. This is CBRE's second engagement in the Debtor's Chapter 11 proceeding. Charles Philip Cowin of Houston, Tex., filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 10-34132) on May 19, 2010. Richard L. Fuqua II, Esq., at Fuqua & Keim in Houston represents Mr. Cowin. At the time of the filing, the Debtor disclosed $37 million in assets and $12 million in liabilities. CHARLES COWIN: Hires Kevin Colbert as Special Litigation Counsel ---------------------------------------------------------------- Charles Cowin asks the U.S. Bankruptcy Court for the Southern District of Texas for permission to employ: Kevin L. Colbert, Esq. 7500 San Felipe, Suite 700 Houston, TX 77063-1709 as his special litigation counsel to represent his interests in BAC Home Loans Servicing, LP v. Texas Realty Holdings, LLC, et al., Case No. 09-cv-02539 (S.D. Tex.), in which he is named as a defendant. The bankruptcy court granted BAC Home Loans and Nick Tran (presumably a co-defendant) relief from the automatic stay to pursue this litigation in Aug. 2010. Mr. Colbert charges $250 per hour for his services, and expects to receive a $5,000 retainer. Charles Philip Cowin of Houston, Tex., filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 10-34132) on May 19, 2010. Richard L. Fuqua II, Esq., at Fuqua & Keim in Houston represents Mr. Cowin. At the time of the filing, the Debtor disclosed $37 million in assets and $12 million in liabilities. CHRISTOPHER COUGHLIN: Parties Ignore Chapter 7 Conversion Order --------------------------------------------------------------- The docket sheet in Christopher M. Coughlin's Chapter 11 case shows that the Honorable Alan W. Shiff entered an order (Doc. 55) converting the debtor's Chapter 11 case to a Chapter 7 liquidation proceeding on Aug. 23, 2010. Nobody, however, seems to have paid attention to that order. Eastern Savings Bank is moving for relief from the automatic stay. The Debtor has filed Monthly Operating Reports. One of the debtor's creditors is objecting to the Chapter 7 conversion and modification of the automatic stay. Judge Shiff has even held a couple of hearings in the past six months. At a hearing on Feb. 22, 2010, the Debtor agreed to make adequate protection payments to Eastern Bank. Old Greenwich, Conn. resident Christopher M. Coughlin filed a Chapter 11 petition (Bankr. D. Conn. Case No. 10-50977) on April 29, 2010, and is represented by Mark. M. Kratter, Esq., at Kratter & Gustafson, LLC. Mr. Coughlin disclosed $13 million in assets and $2 million in debts at the time of the filing. COLETO CREEK: S&P Withdraws 'B+' Rating to $735 Mil. Senior Loan ---------------------------------------------------------------- On March 4, 2011, Standard & Poor's Ratings Services withdrew its 'B+' rating and '2' recovery rating on the secured credit facilities at Coleto Creek Power L.P, consisting of the $735 million senior secured first-lien term loan due 2013, $170 million synthetic letter of credit facility maturing 2013, and $60 million working capital revolving facility maturing 2011. "The debt paydown was in conjunction with the acquisition of Coleto Creek's parent, International Power PLC, by European utility GDF Suez S.A., which closed on Feb. 3, 2011," said Standard & Poor's credit analyst Swami Venkataraman. While Coleto Creek has been operating in line with S&P's financial expectations for the rating, the decision to paydown all debt reflects a strategy of centralizing capital raising efforts at GDF Suez, given its much lower cost of capital than Coleto Creek. Consequently, upon the request of Coleto Creek, S&P's is withdrawing all of its ratings. COMBUSTION ENGINEERING: Garlock Wants to Intervene in 12 Cases -------------------------------------------------------------- Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About Combustion Engineering Headquartered in Norwalk, Connecticut, Combustion Engineering, Inc., is the U.S. subsidiary of the ABB Group. ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in more than 100 countries and employs about 103,000 people. Combustion Engineering filed for chapter 11 protection on Feb. 17, 2003 (Bankr. D. Del. Case No. 03-10495). Curtis A. Hehn, Esq., at Pachulski Stang Ziehl Young & Jones and Jennifer Mo, Esq., at Kirkpatrick & Lockhart Nicholson Graham represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated more than $100 million in assets and debts. CREDIT-BASED ASSET: Plan Set for April 11 Confirmation ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Credit-Based Asset Servicing & Securitization LLC scheduled an April 11 hearing to confirm its liquidating Chapter 11 plan. According to the report, the plan would carry out an agreement reached with secured lenders before the November bankruptcy filing that allows the use of $8.2 million to operate in Chapter 11 and distribute to lower-ranking creditors. The bankruptcy judge approved the explanatory disclosure statement on March 4. Mr. Rochelle relates that according to the Disclosure Statement, senior unsecured creditors with $903 million in claims are told to expect a 0.5% recovery. Holders of $539 million in two types of subordinated claims receive nothing. The holders of $191.6 million in senior lenders' claims receive nothing on account of the pre-bankruptcy agreement, until the liquidating trust recovers more than $15 million. To receive a distribution, unsecured creditors must give releases to the lenders. The senior lenders allowed C-Bass to use $8.2 million of their money to fund C-Bass through bankruptcy, in exchange for broad releases against lawsuits for those lenders. A full-text copy of the disclosure statement, as amended, is available for free at http://ResearchArchives.com/t/s?7479 A full-text copy of the Chapter 11 plan, as amended, is available for free at http://ResearchArchives.com/t/s?747a About Credit-Based Asset Servicing Credit-Based Asset Servicing and Securitization LLC is a subprime mortgage investor based in New York City. C-Bass is a joint venture, owned in part by units of mortgage insurers MGIC Investment Corp. and Radian Group Inc. C-Bass and seven affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-16040) on Nov. 12, 2010. C-Bass disclosed $23.7 million in assets and $2.16 billion in liabilities in its Schedules of Assets and Liabilities. The Debtors' liabilities include $195.8 million of secured debt. Peter S. Partee, Esq., Richard P. Norton, Esq., Robert A. Rich, Esq., and Scott Howard Bernstein, Esq., at Hunton & Williams LLP, represent the Debtors. Donlin, Recano & Company is the claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in C-BASS' chapter 11 cases and that committee is represented by Mark T. Power, Esq., and Jeffrey Zawadzki, Esq., at Hahn & Hessen LLP in New York. The affiliates that filed separate Chapter 11 petitions are C-BASS CBO Holding LLC, C-BASS Credit Corp., C-BASS Investment Management LLC, NIM I LLC, Pledged Property II LLC, Starfish Management Group LLC, and Sunfish Management Group LLC. DAVID BROWN: Creditors Seek to Seize Assets ------------------------------------------- Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reports that several creditors in recent weeks have filed motions in the Chapter 11 proceeding of rapper Young Buck, asking the bankruptcy court to lift the automatic stay: (A) Auto lender Ally Financial Inc., once General Motors' financing arm, is targeting Mr. Brown's 2008 Cadillac Escalade. The lender, which has a secured claim of about $37,000, says Brown is in default on their financing agreement for failing to make nine monthly payments totaling $11,409. (B) Mortgage servicer Select Portfolio Servicing seeks to foreclose on Mr. Brown's Hendersonville, Tenn., home. The servicer says Mr. Brown owes more than $544,000 on the $451,500 mortgage and has missed monthly mortgage payments since August 2009. (C) Wells Fargo Financial Tennessee Inc. seeks to seize Mr. Brown's 2002 BMW X5 sport-utility. Ms. Palank relates Jeanne Burton, the Chapter 11 trustee in Mr. Brown's case, argued that the home is necessary to Mr. Brown's reorganization. The trustee also questioned the servicer's standing to bring the motion. The U.S. Bankruptcy Court in Nashville, Tenn., was set to hold a hearing on Mr. Brown's mortgage on March 8. It will consider the fate of Mr. Brown's BMW at a hearing set for March 22 and the Escalade at a hearing set for March 29. DBR also reports that Young Buck was arrested Monday on federal criminal charges of being a convicted felon in possession of a firearm and ammunition, to which he pleaded not guilty. According to Nashville NBC affiliate WSMV, Young Buck's attorney told the courtroom that the charges were a surprise to him and his client, whose real name is David Darnell Brown. According to the report, court records show Mr. Brown was released but must post a $100,000 bond later this week. In the meantime, he must surrender his passport. As reported by the Troubled Company Reporter on Jan. 20, 2011, a federal judge converted Young Buck's Chapter 13 bankruptcy proceedings to Chapter 11. DBSI INC: TIC Investors Object to Florissant Plan ------------------------------------------------- According to court filings, all holders of unsecured claims totaling $648,247, and Wells Fargo Bank, National Association, holder of the prepetition lender claims aggregating $11,667,000 voted in favor of the Chapter 11 plan proposed by the trustee for Florissant Market Place Acquisition LLC dated Feb. 8, 2011. Holders of 24.6% tenant-in-common interests in the Debtor's properties were not entitled to vote on the Plan. The TIC investors -- classified as interest holders and not as claimants under the Plan -- objected to confirmation of the Plan. The TIC Investors say they support a restructuring of the secured lender's loan but insist that they should be given a corresponding general unsecured claim for likely damages that they will suffer as a result of the forced liquidation of their interests and the Debtor's misconduct in the marketing to them an interest in the Property on the eve of the bankruptcy filing. At the behest of Conrad Myers, the trustee for the DBSI Real Estate Liquidating Trust, and Wells Fargo, the U.S. Bankruptcy Court for the District of Delaware agreed to hold a hearing on March 8 to consider approval of the disclosure statement and confirmation of the Chapter 11 plan with respect to Florissant Market Place. Judge Peter J. Walsh on Feb. 18 conditionally approved the disclosure statement in connection with the solicitation of votes to accept or reject the Plan. Florissant Market Place Acquisition owns a real property, improvements, and fixtures commonly known as Florissant Marketplace, 8182 and 8200 N. Lindbergh Blvd., Florissant, Missouri. The Debtor is obligated to Wells Fargo, N.A., as successor-in-interest to Wachovia Financial Services, for a loan in the original amount of $11.8 million, used to acquire the property. After entry of the loan agreement, the Debtor sold undivided tenant-in-common interests, aggregating approximately 24.6% of the undivided interests in the Property, to certain unrelated special purpose entities. The lender did not execute any agreements by which each TIC Investor assumes its pro rata share of the term loan and by which the Debtor is released from a portion of the term loan corresponding to the shares assumed by such TIC Investor. The Chapter 11 Plan The Plan is a consensual plan between the Debtor and Wells Fargo that provides for the satisfaction of Claims against and Interests in the Debtor through a restructuring of the Debtor's prepetition loan obligations. The Plan provides that the Reorganized Debtor and the TIC Investors will continue to own their respective interests in the Property and will continue to engage a property manager to operate the Property, with the long-term objective of marketing and selling the Property in an orderly manner to maximize the return for both the Debtor's estate and for the TIC Investors. The Plan also recognizes that the Lender has a first priority perfected deed of trust against the entire Property, encumbering the interests of both the Debtor and the TIC Investors. The Plan provides that the allowed claim of the Lender will be restructured and repaid on or before July 1, 2013, based on a 30-year amortization and a market-based interest rate. The Plan also provides that the Reorganized Debtor will establish with the Lender various accounts for operating expenses, taxes, capital expenditures and other items, to be funded from the cash flow from the Property. To the extent that monthly cash flow from the Property exceeds the amount necessary for debt service and the funding of these reserves, the excess cash flow will be retained by the Lender as amortizing payments of its restructured loan. With respect to holders of allowed unsecured claims, the Plan provides that such holders will receive their pro rata share of the Reorganized Debtor's interest in the proceeds from the sale of the Property, after the satisfaction in full of the Lender's restructured Loan. Holders of allowed interests will retain their membership interests in the Debtor but will not receive any payment or distribution on account of such interests unless and until the Lender's restructured loan and all Allowed Unsecured Claims have been paid in full. The Plan contemplates that it will become effective in stages: * Upon confirmation and execution of all of the restated loan documents, the Plan Effective Date will occur and the Plan will become binding on the Debtor and all parties in interest. * Upon the Reorganized Debtor's satisfaction of specific conditions precedent to the restructuring of the Lender's Claim (which conditions resemble typical conditions precedent for closing a real estate loan), then the Restructure Effective Date will occur and the Lender's loan will be reinstated upon the terms set forth in the Plan and the related loan documents. * If the Reorganized Debtor fails to satisfy the requisite conditions to restructuring the Lender's loan, then the Lender may pursue its state law remedies against the Property or may require the Reorganized Debtor to pursue an auction of the entire Property. In addition, in the event that the Reorganized Debtor and TIC Investors have not obtained a binding contract to sell the Property on or before Jan. 31, 2013 for an amount in excess of the outstanding balance of the Lender's Loan, then the Reorganized Debtor will initiate an auction of the Property. Sale of the Property In accordance with Article IV, section 4.5 of the Plan, after the Restructure Effective Date, the Reorganized Debtor will, in collaboration with the TIC Investors, seek to market and sell the Property in a commercially reasonable manner by January 31, 2013, consistent with the objective of maximizing the value of the Property. Under Article IV, section 4.5(b) of the Plan, if the Reorganized Debtor and TIC Investors do not enter into a binding and unconditional contract to sell their respective interests in the Property on or before Jan. 31, 2013, such contract being in form and substance satisfactory to the Lender, or (ii) the Reorganized Debtor has not entered into a binding and unconditional contract to sell its undivided interest in the Property on or before Jan. 31, 2013 for an amount in excess of the outstanding reinstated loan obligations, such contract being in form and substance satisfactory to the Lender, and if the reinstated loan obligations remain outstanding, then the Reorganized Debtor will initiate an auction of the Property in its entirety pursuant to 11 U.S.C. Sec. 363(h). A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/DBSI_Florissant_DS.pdf About DBSI Inc. Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates were engaged in numerous commercial real estate and non-real estate projects and businesses. On Nov. 10, 2008, and other subsequent dates, DBSI and 180 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 08-12687). DBSI estimated assets and debts between $100 million and $500 million as of the Chapter 11 filing. Lawyers at Young Conaway Stargatt & Taylor LLP represent the Debtors as counsel. The Official Committee of Unsecured Creditors tapped Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' notice claims and balloting agent. Joshua Hochberg, a former head of the Justice Department fraud unit, served as an Examiner and called the seller and servicer of fractional interests in commercial real estate an "elaborate shell game" that "consistently operated at a loss" in his report released in October 2009. McKenna Long & Aldridge LLP was counsel to the Examiner. On Sept. 11, 2009, the Honorable Peter J. Walsh entered an Order appointing James R. Zazzali as Chapter 11 trustee for the Debtors' estates. On Oct. 26, 2010, the trustee of DBSI Inc. won court confirmation of its Chapter 11 plan of liquidation, paving the way for it to pay creditors and avoid years of expensive litigation over its complex web of affiliates. The plan, which was declared effective Oct. 29, 2010, was jointly proposed by DBSI's unsecured creditors and the bankruptcy trustee in charge of DBSI and its 170-plus affiliates. Pursuant to DBSI Inc.'s confirmed Chapter 11 plan, the DBSI Real Estate Liquidating Trust was established as of the effective date and certain of the Debtors' assets, including the Debtors' ownership interest in Florissant Market Place was transferred to the RE Trust. Conrad Myers was appointed trustee for the RE Trust. Mr. Myers is represented by: Natasha Songonuga, Esq. GIBBONS P.C. 1000 N. West Street, Suite 1200 Wilmington, DE 19801-1058 Tel: (302) 295-4875 Fax: (302) 295-4876 E-mail: nsongonuga@gibbonslaw.com - and - Mark B. Conlan, Esq. GIBBONS P.C. One Gateway Center Newark, NJ 07102-5310 Tel: (973) 596-4500 Fax: (973) 596-0545 E-mail: mconlan@gibbonslaw.com DENTON LONE: To Present Plan for Confirmation on March 21 --------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Texas approved the adequacy of the disclosure statement explaining Denton Lone Oak Holdings L.P.'s 4th Amended Chapter 11 Plan of Reorganization. All creditors must cast their vote whether to approve or reject the Debtor's plan not later that 5:00 p.m., on March 16, 2011, at Russell W. Mills, Hiersche, Hayward, Drakeley & Urbach, P.C., 15303 Dallas Parkway, Suite 700 in Addison, Texas. A hearing is set for March 21, 2011, at 10:30 p.m., to consider confirmation of the plan. Objections, if any, are due March 14, 2011. Under the Plan, the Debtor intends to continue operation of the Hotel and to reorganize its business by: a) restructuring the debt owing to Morgan Stanley into a 1 year interest only note with an interest rate of LIBOR plus 575 with two possible one year extensions. In the event that the Debtor does not default and has a debt service coverage ratio of 1.1 at the end of the first year, then the Debtor would be given an extension of one year with no fees or costs. In the event that the Debtor does not default and has a debt service coverage ratio of 1.25 at the end of the second year, the Debtor would be given an extension of an additional year with no fees or costs. The Debtor would not have use of the Reserves but the Unsecured Morgan Stanley Claim would be reduced by the amount of the Reserves and Morgan Stanley could not charge for any future reserves. The Debtor proposes to set the value of Morgan Stanley's collateral as $9,100,000. The Plan also includes a provision that the replacement of a general partner is not an event of default or sale or encumbrance and, in the event that change is not made, Morgan Stanley asserts that it may declare a postconfirmation nonmonetary default arising solely from the replacement of the general partner; b) assuming the franchise agreement with Holiday Hospitality Franchising, Inc. and curing the default upon the Effective Date but giving HHFI the right, in its sole and reasonable discretion, to approve the selection of any winning bidder within thirty days. Thus, the Plan may be confirmed for a period subject only to approval of the buyer by HHFI. HHFI may charge to a Buyer only the normal and customary costs of obtaining approval. c) paying unsecured creditors amounts ranging from 1% to 75% of their Allowed Claims with monthly payments; and d) cancelling current equity interests and selling all of the assets or, alternatively, selling all of the partnership interests to a third party who will assume obligations under the Plan subject to the approval of HHFI as described herein. The Debtor said it was in arrearages under the franchise agreement with HHFI in the amount of $86,097. HHFI asserts that, in addition to the $86,097 in fees, Debtor also owes additional amounts for attorneys' fees, costs and unpaid post-petition amounts for a total claim of $118,097 through Nov. 30, 2010. Debtor said it plans to offer to sell its assets and assign the franchise agreement to a buyer or, alternatively, to sell the New Partnership Interests to a Buyer. As noted, Debtor believes that a sale of the New Partnership Interests is more likely and, in that event, the Debtor, with the assistance of the Buyer, will fund its operations and satisfy its obligations under the Plan. Under the plan, among other things: * Unsecured critical vendor claimants, owing $40,000, are being paid 50% of their total debt; * Unsecured non-critical claimants, owing $2,325,000, are being paid 3%of their total debt; * Unsecured required vendor claimants, owing $3,500, are being paid 75% of their total debt; and * Unsecured professional claimants, owing $66,341, are being paid 1% of their total debt. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?7483 A full-text copy of the Chapter 11 Plan Of Reorganization is available for free at http://ResearchArchives.com/t/s?7461 About Denton Lone Denton Lone Oak Holdings, L.P., a Texas limited partnership, owns and operates The Holiday Inn & Suites Denton in Denton, Texas. The Partnership filed for Chapter 11 bankruptcy protection on March 15, 2010 (Bankr. E.D. Texas Case No. 10-40836). Russell W. Mills, Esq., at Hiersche Hayward, Drakeley & Urbach, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. DIGITILITI INC: Completes Sale of $1.11MM Note and Warrants ----------------------------------------------------------- On Feb. 28, 2011, Digitiliti, Inc., completed the placement of $1,110,000 Secured Convertible Promissory Note and Warrants. All of the securities issued in conjunction with the Secured Convertible Debt Offering were made to "accredited investors" as those terms are defined on Rule 501 of Regulation D of the Securities and Exchange Commission, and each such person had prior access to all material information about the Company. The offer and a sale of these securities were exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to, among other reasons, Section 4(2) and 4(6) thereof, and Rule 506 of Regulation D of the Securities and Exchange Commission. Registration of sales to "accredited investors" are preempted from state regulation. The Lenders in the Secured Convertible Debt Offering paid a 10% discount for their investment, resulting in a "stepped-up" basis in their individual Secured Convertible Promissory Notes. The Secured Convertible Promissory Notes bear interest at the rate of 12% per annum, have an 18-month maturity date and a $.20 per share conversion rate in the Company's common stock. The Secured Convertible Promissory Notes are secured by a first lien on all assets of the Company; provided, however, that the Lenders agreed to subordinate to a lien with respect to up to $100,000 of original principal amount of other notes against the Company's vault. The Lenders received Warrants to purchase an aggregate of 3,052,500 shares of Company Common Stock. The Warrants have a five-year term, $0.30 exercise price and include a cashless exercise provision and a put right in the event of an acquisition of the Company valued at the Black Scholes Value of the unexercised portion of the Warrant obtained from the "OV" function on Bloomberg determined as of the day prior to announcement of the transaction. The Warrants include antidilution provisions for stock splits, stock dividends and recapitalization only. The Secured Convertible Debt Offering was conducted in order to implement a previously approved repayment of debt obligations owed to two stockholders, as well as provide additional working capital for the Company. The debt obligations owed to the Miners by the Company were secured by a first lien on the Company's assets and consisted of the following: a $250,000 12% secured convertible note ($.20 per share conversion rate). This convertible note contained a maturity date of Oct. 16, 2009 and had been classified as past due in all public filings; a $50,000 10% On-Demand Promissory Note that had been classified in the current maturity portion of related party debt in all public filings; and a $231,540 6% On-Demand Promissory Note that had been classified in the current maturity portion of related party debt in all public filings. Contemporaneously with the closing of the Secured Convertible Debt Offering, the Company and the Miners executed a Repayment of Note Obligations and Release of Security Interest Agreement that provided for the repayment of $431,540 of principal of the Miner Debt with the remaining principal balance owed of $100,000 being rolled into a secured promissory note under the Secured Convertible Debt Offering. Correspondingly, all outstanding accrued interest owed on the Miner Debt was paid to the Miners in the form of the Company's common stock based on a rate of $.15 per share, along with a modification in terms on 350,000 common stock purchase warrants previously issued to the Miners and the issuance of an additional 200,000 warrants reflecting a five year term and a $.30 per share exercise price. After completion of all documentation reflecting the repayment of the Miner Debt, the Miners released their first lien in the Company's assets in preference to those Lenders associated with the Secured Convertible Debt Offering. About Digitiliti, Inc. St. Paul, Minnesota-based Digitiliti, Inc.'s business is developing and delivering storage technologies and methodologies enabling its customers to manage, control, protect and access their information and data with ease. The Company's core business is providing a cost effective on-line data protection solution to the small to medium business ("SMB") and small to medium enterprise ("SME") markets through its DigiBAK service. This on- line data protection solution helps organizations properly manage and protect their entire network from one centralized location. The Company's balance sheet at September 30, 2010, showed $1.6 million in total assets, $2.2 million in total liabilities, and a stockholders' deficit of $605,063. The Company has an accumulated deficit of $25.1 million as of September 30, 2010. MaloneBailey, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has suffered losses from operations and has a working capital deficit. DIVINE SQUARE: Files Schedules of Assets & Liabilities ------------------------------------------------------ Divine Square LW, LLC, delivered its schedules of assets and liabilities to the U.S. Bankruptcy Court for the Middle District of Florida, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $9,000,000 B. Personal Property 417,035 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $14,000,000 E. Creditors Holding Unsecured Priority Claims 6,349 F. Creditors Holding Unsecured Non-priority Claims 303,146 ---------- ----------- TOTAL $9,417,035 $14,309,495 ========== =========== The Debtor indicates that the value of its real property may be as high as $10 million or as low as $8 million. Strangely, the Debtor's Schedules are captioned "In re Divine Capital LW, LLC." Miami, Fla.-based Divine Square LW, LLC, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 10-47363) on Dec. 7, 2010. Stephen P. Drobny, Esq., at Shutts & Bowen LLP, in Miami, Fla., represents the Debtor. DIVINE SQUARE: Hires TM Realty Services as Property Manager ----------------------------------------------------------- Divine Square LW, LLC, asks the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ TM Realty Services, LLC, as its property manager, nunc pro tunc to Dec. 7, 2010. The Debtor tells the Court that TM Realty will provide: (a) staffing, training and operational oversight; (b) collection and processing of the Debtor's accounts receivable; (c) budgeting, review and payment of the Debtor's accounts payable; (d) preparation of a monthly management report providing, inter alia, current financial statements, rent roll, accounts receivable, accounts payable, leasing activity, occupancy rates, general lease information and capital expenditures; (e) assistance in preparation of monthly operating reports and compliance with the United States Trustee's requirements; (f) coordination with leasing agents; and (g) oversight of any necessary repairs or tenant improvements. The Debtor has agreed to pay TM $10,000 per month for property management fees and reimburse TM $5,000 per month for Carlos Alcaraz's day-to-day management services. Miami, Fla.-based Divine Square LW, LLC, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 10-47363) on Dec. 7, 2010. Stephen P. Drobny, Esq., at Shutts & Bowen LLP, in Miami, Fla., represents the Debtor. The Debtor disclosed approximately $9 million in assets and more than $14 million in liabilities as of the petition date. DOCTORS INSURANCE RECIPROCAL: Deadline for Claims Set for May 16 ---------------------------------------------------------------- Insurance Journal reports that Justice Russell Perkins of Tennessee's Twentieth Judicial District court has set May 16, 2011, as the final date to resolve all outstanding claims against three insolvent risk retention groups that were closed in 2003 after the failure of their Virginia reinsurer, Reciprocal of America. Insurance Journal relates that the three Tennessee companies -- the American National Lawyers Reciprocal, the Doctors Insurance Reciprocal and the Reciprocal Alliance -- were risk-retention groups that reinsured virtually all their business with Reciprocal of America, a Glenn Allen, Virginia-based Company that was placed in receivership in January 2003 after regulators discovered its liabilities exceed its assets by more than $200 million. The three risk retention groups operated under common management. Justice Perkins has imposed a final deadline of May 16 to liquidate all claims following a request by Tennessee Insurance Commissioner Julie Mix McPeak as special receiver, according to Insurance Journal. The report relates Justice Perkins said that the deadline is warranted to provide closure to what has been a long drawn out process of trying to settle the companies' estates. According to Insurance Journal, the court order states that all claims against the companies must be submitted by May 16. The court also orders that any claim submitted after the date of the order and May 16 must carry with it some explanation why the claim wasn't made earlier. Further, Insurance Journal says, the court found that all outstanding unliquidated claims must be settled at a specific dollar amount or denied by the receiver. In 2008, Virginia insurance regulators dismissed the claims of the three insolvent Tennessee risk retention groups against ROA, ruling that as reinsureds of ROA, the three insurers were general creditors and not policyholders under the Virginia insurer liquidation statute. American National Lawyers Insurance, started in 1993, is a professional liability insurance company that is completely owned by its lawyer insureds. It is licensed to do business in Tennessee and South Carolina, and provides liability coverage for about 3,100 Tennessee lawyers. The Tennessee Department of Commerce and Insurance placed American National Lawyers Insurance, along with two affiliated insurers, Doctors Insurance Reciprocal Risk Retention Group and Reciprocal Alliance Risk Retention Group, under receivership on Jan. 31, 2003. DUKE AND KING ACQUISITION: Court OKs Committee Counsel Engagements ------------------------------------------------------------------ The Official Committee of Unsecured Creditors appointed in Duke and King Acquisition Corp.'s chapter 11 case sought and obtained approval from the Honorable Gregory F. Kishel to retain Freeborn & Peters LLP as its lead counsel (as of Jan. 31, 2011) and Maslon Edelman Borman & Brand, LLP, as its local counsel (as of Jan. 4, 2011). As reported in the Troubled Company Reporter on Feb. 24, 2011, the Burger King franchisee-debtor is in the process of selling its 87 stores located in Minnesota, Illinois, Missouri, Wisconsin, Kansas and Iowa. About Duke and King Acquisition Corp. Burnsville, Minnesota-based Duke and King Acquisition Corp., dba Burger King, was formed in November 2006, to acquire 88 Burger King franchise restaurants from the Nath Companies. It filed for Chapter 11 bankruptcy protection on December 4, 2010 (Bankr. D. Minn. Case No. 10-38652). Clinton E. Cutler, Esq., and Douglas W. Kassebaum, Esq., at Fredrikson & Byron, P.A., serve as the Debtor's bankruptcy counsel. Mastodon Ventures, Inc., acts as the Debtor's investment banker. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates Duke and King Missouri Holdings, Inc. (Bankr. D. Minn. Case No. 10-38654), Duke and King Missouri, LLC (Bankr. D. Minn. Case No. 10-38653), Duke and King Real Estate, LLC (Bankr. D. Minn. Case No. 10-38655), and DK Florida Holdings, Inc. (Bankr. D. Minn. Case No. 10-3856), filed separate Chapter 11 petitions on December 4, 2010. Maslon Edelman Borman & Brand, LLP serves as local counsel to the official committee of unsecured creditors. Aaron L. Hammer, Esq., and Richard S. Lauter, Esq., at Freeborn & Peters LLP, in Chicago, is the official committee of unsecured creditors' bankruptcy counsel. Mesirow Financial Consulting, LLC, serves as financial advisors of the official committee of unsecured creditors. The cases are jointly administered, with Duke and King Acquisition Corp. as the lead case. DUNE ENERGY: Incurs $75.53 Million Net Loss in 2010 --------------------------------------------------- Dune Energy, Inc. announced results for the fourth quarter and calendar year 2010. The Company reported a net loss of $75.53 million on $64.18 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $59.13 million on $52.24 million of revenue during the prior year. The Company reported a net loss of $141.1 million on $146.6 million of revenue for 2008. The Company's balance sheet at Dec. 31, 2010 showed $297.38 million in total assets, $371.68 million in total liabilities, $202.94 million in commitments and contingencies and $277.25 million in total stockholders' deficit. Revenue for the fourth quarter totaled $15.7 million and $64.2 million for the full year 2010. This compares with $17.0 million and $52.2 million for the fourth quarter and full year 2009, respectively. Production volumes in the fourth quarter were 1.7 Bcfe and 7.3 Bcfe for the full year 2010. This compares with 2.7 Bcfe for the fourth quarter of 2009, and 7.8 Bcfe for the full year 2009. In 2010, the average sales price of oil was $77.62 per barrel, and $4.95 per Mcf for natural gas, as compared with $58.21 per barrel and $4.36 per Mcf, respectively for 2009. The primary reasons behind the increase in revenue were higher sales prices in 2010 versus 2009. Oil prices increased 33% and gas prices increased 14% from 2009 levels. During 2010 all oil accounted for 48% of the production volumes from continuing operations. A full-text copy of the press release announcing the financial results is available for free at: http://ResearchArchives.com/t/s?748e About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. * * * Dune Energy carries a 'CCC-' corporate credit rating, with negative outlook, from Standard & Poor's, and 'Ca' corporate family and probability of default ratings, with negative outlook, from Moody's Investors Service. S&P said in April 2010 that "the company's heavy debt burden makes the prospects of a distressed exchange or bankruptcy a distinct possibility." DUNE ENERGY: Edward Heil Discloses 3.5% Equity Stake ---------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Edward F. Heil disclosed that he beneficially owns 1,648,723 shares of common stock of Dune Energy, Inc. representing 3.5% of the shares outstanding. The percentage reported is calculated based upon 46,968,621 shares of Common Stock of Dune Energy outstanding as of Feb. 23, 2011, as set forth in Dune Energy's Form 10-K filed on March 3, 2011 for the year ended Dec. 31, 2010. About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. The Company's balance sheet at Dec. 31, 2010 showed $297.38 million in total assets, $371.68 million in total liabilities, $202.94 million in commitments and contingencies and $277.25 million in total stockholders' deficit. Stockholders' deficit was of $248.48 million at Sept. 30, 2010. The Company reported a net loss of $75.53 million on $64.18 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $59.13 million on $52.24 million of revenue during the prior year. The Company reported a net loss of $141.1 million on $146.6 million of revenue for 2008. * * * Dune Energy carries a 'CCC-' corporate credit rating, with negative outlook, from Standard & Poor's, and 'Ca' corporate family and probability of default ratings, with negative outlook, from Moody's Investors Service. S&P said in April 2010, "The company's heavy debt burden makes the prospects of a distressed exchange or bankruptcy a distinct possibility." DUNE ENERGY: UBS AG Discloses 22.83% Equity Stake ------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, UBS AG disclosed that it beneficially owns 11,709,183 shares of common stock of Dune Energy, Inc. representing 22.83% of the shares outstanding. This percentage is calculated as of March 2, 2011 pursuant to rule 13(d)(1)(i) and is based upon 40,343,892 Common Shares outstanding as of Nov. 5, 2010 as reported in the Company's 10-Q filed Nov. 10, 2010. About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. The Company's balance sheet at Dec. 31, 2010 showed $297.38 million in total assets, $371.68 million in total liabilities, $202.94 million in commitments and contingencies and $277.25 million in total stockholders' deficit. Stockholders' deficit was of $248.48 million at Sept. 30, 2010. The Company reported a net loss of $75.53 million on $64.18 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $59.13 million on $52.24 million of revenue during the prior year. The Company reported a net loss of $141.1 million on $146.6 million of revenue for 2008. * * * Dune Energy carries a 'CCC-' corporate credit rating, with negative outlook, from Standard & Poor's, and 'Ca' corporate family and probability of default ratings, with negative outlook, from Moody's Investors Service. S&P said in April 2010, "The company's heavy debt burden makes the prospects of a distressed exchange or bankruptcy a distinct possibility." EAST BAY: Taps Ruth Auerbach to Handle Coast Capital Proceedings ---------------------------------------------------------------- The Hon. Roger L. Efremsky of the U.S. Bankruptcy Court for the Northern District of California authorized East Bay Associates, LLC, to employ Ruth Auerbach as special counsel. Ms. Auerbach will, among other things: a. review the schedules, statement of financial affairs and related pleadings and revision thereof if necessary; b. prepare operating reports and records as required by the Federal Rules of Bankruptcy Procedure and the Local Rules of the Northern District of California, and the Oakland Division thereof; c. represent the Debtor in connection with the motion of Coast Capital Income Fund, LLC for relief from stay as to the Debtor's main asset. The initial retainer of Ms. Auerbach is $50,000 which will be paid by the Debtor's business associates and not from estate assets. To the best of the Debtor's knowledge, Ms. Auerbach is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Ms. Auerbach can be reached at: Ruth Elin Auerbach, Esq. Attorney at Law 711 Van Ness Avenue, Suite 440 San Francisco, CA 94102 Tel: (415) 673-0560 Fax: (415) 673-0562 About East Bay Associates Martinez, California-based East Bay Associates, LLC, filed for Chapter 11 bankruptcy protection on September 9, 2010 (Bankr. N.D. Calif. Case No. 10-70345). Benjamin W. Tipton, III, Esq., at the Law Offices of Platt And Platt, represents the Debtor in its restructuring effort. The Debtor disclosed $28,779,626 in assets and $5,706,481 in liabilities as of the Chapter 11 filing. EDHSAN MILLWORKS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Edhsan Millworks Inc aka Edhsan Aluminum Work P.O. Box 848 Cabo Rojo, PR 00623 Bankruptcy Case No.: 11-01867 Chapter 11 Petition Date: March 5, 2011 Court: U.S. Bankruptcy Court District of Puerto Rico (Ponce) Debtor's Counsel: Alberto O. Lozada Colon, Esq. BUFETE LOZADA COLON P.O. Box 430 Mayaguez, PR 00681-430 Tel: (787) 833-6323 E-mail: alberto3@coqui.net Scheduled Assets: $299,436 Scheduled Debts: $1,141,968 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/prb11-01867.pdf The petition was signed by Edmundo Franqui Ruiz, president. ELITE PHARMACEUTICALS: FDA to Remove 500 Products From Market ------------------------------------------------------------- Elite Pharmaceuticals, Inc., advised that the US Food and Drug Administration announced that it intends to remove approximately 500 cough/cold and allergy related products from the U.S. market. Elite currently manufactures two of the drugs impacted by the FDA's action which are marketed by ECR Pharmaceuticals, a wholly owned subsidiary of Hi-Tech Pharmacal, Co., Inc. The affected products are: Product Active Ingredient, Strength Lodrane(R) 24 capsules brompheniramine maleate, 12mg Lodrane(R) 24 D capsules brompheniramine maleate, 12mg/pseudoephedrine HCl, 90mg According to the FDA press release, manufacturers must stop manufacturing the affected products within 90 days after March 3, 2011 and must stop shipping these products within 180 days after March 3, 2011. In addition to receiving revenues for the manufacture and contract laboratory services of these products, Elite receives a royalty on in-market sales from ECR Pharmaceuticals. Revenues generated from these products totaled $3.02 million for the 9 months ended Dec. 31, 2010, representing substantially all of Elite's revenues for the period. The Company's inability to manufacture these drugs could have an adverse effect on its revenues. As disclosed by Hi-Tech Pharmacal, ECR Pharmaceutical initiated in 2010 a formal approval process with the FDA regarding Lodrane(R) 24 and Lodrane(R) 24D and ECR will continue to actively pursue approval for both products. About Elite Pharmaceuticals Northvale, N.J.-based Elite Pharmaceuticals, Inc. (OTC BB: ELTP) -- http://www.elitepharma.com/-- is a specialty pharmaceutical company that develops and manufactures oral, controlled-release products using proprietary technology. Elite developed and manufactures for its partner, ECR Pharmaceuticals, Lodrane 24(R) and Lodrane 24D(R), for allergy treatment and expects to launch soon three approved generic products. Elite also has a pipeline of additional generic drug candidates under active development and the Company is developing ELI-216, an abuse resistant oxycodone product, and ELI-154, a once-a-day oxycodone product. Elite conducts research, development and manufacturing in its facility in Northvale, New Jersey. The Company's balance sheet at Dec. 31, 2010, showed $10.89 million in total assets, $17.46 million in total liabilities and $6.57 million in total stockholders' deficit. Demetrius & Company, L.L.C., in Wayne, New Jersey, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's results for fiscal year ended March 31, 2010. The independent auditors noted that the Company has experienced significant losses and negative operating cash flows resulting in a working capital deficiency and shareholders' deficit. The Company reported a net loss $8.1 million on $3.3 million of revenue for the fiscal year ended March 31, 2010, compared with a net loss of $6.6 million on $2.3 million of revenue for the year ended March 31, 2009. EQK BRIDGEVIEW: Sec. 363 Does Not Permit Asset Swap --------------------------------------------------- Bankruptcy Judge Stacey G.C. Jernigan denied EQK Bridgeview Plaza, Inc.'s motion to exchange 12.0717 acres of Eagle Crest property with 2.961 acres owned by Farmers Branch Local Government Corporation pursuant to 11 U.S.C. Sec. 363; and denied a motion for relief from automatic stay of Bank of America, N.A., conditional on certain additional adequate protection being provided to it. Judge Jernigan said Section 363 does not permit the proposed transaction. Moreover, even if it did, the credible evidence regarding risks and value do not support the swap being an exercise of reasonable business judgment. Finally, the Court does not find that the proposed transaction would provide the necessary adequate protection to BofA because the replacement lien it would be receiving would not be the indubitable equivalent of its existing lien that it would be giving up. A copy of the Court's March 4, 2011 order is available at http://is.gd/7EOwHX from Leagle.com. About EQK Bridgeview Plaza Dallas, Texas-based EQK Bridgeview Plaza, Inc., owns various real estate holdings in multiple states. Specifically, EQK Bridgeview owns the Bridgeview Plaza shopping center in La Crosse, Wisconsin; an office building and warehouse and approximately 12.07 acres of land behind the office building in Farmers Branch, Texas; approximately 2,928.441 acres of undeveloped land in Kaufman County, Texas; and the Dunes Plaza shopping center in Michigan City, Indiana. EQK Bridgeview filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. N.D. Tex. Case No. 10-37054). Melissa S. Hayward, Esq., at Franklin Skierski Lovall Hayward LLP, in Dallas, assists EQK Bridgeview in its restructuring effort. In its amended schedules, EQK Bridgeview disclosed $76,434,528 in assets and $74,843,867 in liabilities. EVANS OIL: Court Approves Garden City as Claims Agent ----------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized Evans Oil Company LLC, et al., to employ The Garden City Group, Inc., as their claims, noticing and balloting agent, nunc pro tunc as of the Petition Date. GCG will, among other things: a. prepare and serve notices required in the Debtors' bankruptcy cases; b. receive, record and maintain copies of proofs of claim and proofs of interest filed in the cases; c. mail and tabulate ballots for purposes of plan voting; and d. assist with the production of reports, exhibits and schedules of information for use by the Debtors, the Debtors' counsel, the Debtors' other professionals or to be delivered to the Court, the Clerk's Office, the U.S. Trustee or third parties. GCG will be paid based on the hourly rates of its professionals: Administrative & Data Entry $45-$55 Mailroom & Claims Control $55 Customer Service Representatives $57 Project Administrators $70-$85 Quality Assurance Staff $80-$125 Project Supervisors $95-$110 Systems & Technology Staff $100-$200 Graphic Support for Web site $125 Project Managers $125-$175 Directors, Sr. Consultants & Asst. VP $200-$295 Vice President & Above $295 A copy of the administration agreement between GCG and the Debtors is available for free at: http://bankrupt.com/misc/EVANS_OIL_administrationpact.pdf Emily S. Gottlieb, Assistant Vice President, Midwest Operations of The Garden City Group, Inc., assures the Court that the firm is a "disinterested person" as that term defined in Section 101(14) of the Bankruptcy Code. About Evans Oil Naples, Florida-based Evans Oil Company LLC, aka Evans Oil Co LLC, distributes bulk oil, gas, diesel and lubricant products. It filed for Chapter 11 bankruptcy protection on Jan. 30, 2011 (Bankr. M.D. Fla. Case No. 11-01515). John S. Sarrett, Esq., Lawrence E. Oscar, Esq., Daniel A. DeMarco, Esq., Christopher B. Wick, Esq., and Emily W. Ladky, Esq., at Hahn Loeser & Parks LLP, serve as the Debtor's bankruptcy counsel. Evans Oil estimated assets and debts at $10 million to $50 million as of the Chapter 11 filing. Affiliates KCWL, LLC (Bankr. M.D. Fla. Case No. 11-01519), Long Equipment Finance, LLC (Bankr. M.D. Fla. Case No. 11-01520), Long Petroleum Products (Bankr. M.D. Fla. Case No. 11-01521), Long Run, LLC (Bankr. M.D. Fla. Case No. 11-01522), Octane, LLC (Bankr. M.D. Fla. Case No. 11-01523), and RML, LLC (Bankr. M.D. Fla. Case No. 11-01524) filed separate Chapter 11 petitions on January 30, 2011. The cases are jointly administered. Evans Oil is the lead case. EVANS OIL: Court Approves Hahn Loeser as Bankruptcy Counsel ----------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized Evans Oil Company LLC, et al., to employ Hahn Loeser & Parks LLP as bankruptcy counsel, nunc pro tunc to the Petition Date. Hahn Loeser will, among other things: a. assist, advise and represent the Debtors in their consultations with creditors regarding the administration of their bankruptcy cases; b. provide assistance, advice and representation concerning the preparation and negotiation of a plan of reorganization and disclosure statement and any asset sales or other transactions proposed in connection with the Debtors' bankruptcy cases; c. provide assistance, advice and representation concerning any investigation of assets, liabilities and financial condition of the Debtors that may be required; and d. represent the Debtors in the negotiation and acquisition of postpetition lending. Hahn Loeser will be paid based on the hourly rates of its professionals: Lawrence E. Oscar $600 Daniel A. DeMarco $510 Christopher B. Wick $345 John S. Sarrett $260 Emily W. Ladky $195 Colleen M. Beitel, Paralegal $210 Daniel A. DeMarco, Esq., a partner at Hahn Loeser, assured the Court that the firm is a "disinterested person" as that term defined in Section 101(14) of the Bankruptcy Code. About Evans Oil Naples, Florida-based Evans Oil Company LLC, aka Evans Oil Co LLC, distributes bulk oil, gas, diesel and lubricant products. It filed for Chapter 11 bankruptcy protection on Jan. 30, 2011 (Bankr. M.D. Fla. Case No. 11-01515). Garden City Group Inc. is the claims and notice agent. Evans Oil estimated assets and debts at $10 million to $50 million as of the Chapter 11 filing. Affiliates KCWL, LLC (Bankr. M.D. Fla. Case No. 11-01519), Long Equipment Finance, LLC (Bankr. M.D. Fla. Case No. 11-01520), Long Petroleum Products (Bankr. M.D. Fla. Case No. 11-01521), Long Run, LLC (Bankr. M.D. Fla. Case No. 11-01522), Octane, LLC (Bankr. M.D. Fla. Case No. 11-01523), and RML, LLC (Bankr. M.D. Fla. Case No. 11-01524) filed separate Chapter 11 petitions on January 30, 2011. The cases are jointly administered. Evans Oil is the lead case. EVANS OIL: Court Approves Parkland Group as Restructuring Advisor ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized Evans Oil Company LLC, et al., to employ Hahn The Parkland Group Inc. to provide restructuring services. The firm's services include working capital management, value maximization of businesses and assets, developing/analyzing turnaround plans and financial restructurings, analyzing and evaluating their business impact, negotiating plans of reorganization and testifying regarding restructuring, feasibility and other relevant issues. The firm's professionals and their hourly rates are: Designations Hourly Rates ------------ ------------ Principals $325-$395 Directors $275-$325 Consultants $250-$275 The Debtors assured the Court that the firm is a "disinterested person" as that term defined in Section 101(14) of the Bankruptcy Code. About Evans Oil Naples, Florida-based Evans Oil Company LLC, aka Evans Oil Co LLC, distributes bulk oil, gas, diesel and lubricant products. It filed for Chapter 11 bankruptcy protection on Jan. 30, 2011 (Bankr. M.D. Fla. Case No. 11-01515). John S. Sarrett, Esq., Lawrence E. Oscar, Esq., Daniel A. DeMarco, Esq., Christopher B. Wick, Esq., and Emily W. Ladky, Esq., at Hahn Loeser & Parks LLP, serve as the Debtor's bankruptcy counsel. Garden City Group Inc. is the claims and notice agent. Evans Oil estimated assets and debts at $10 million to $50 million as of the Chapter 11 filing. Affiliates KCWL, LLC (Bankr. M.D. Fla. Case No. 11-01519), Long Equipment Finance, LLC (Bankr. M.D. Fla. Case No. 11-01520), Long Petroleum Products (Bankr. M.D. Fla. Case No. 11-01521), Long Run, LLC (Bankr. M.D. Fla. Case No. 11-01522), Octane, LLC (Bankr. M.D. Fla. Case No. 11-01523), and RML, LLC (Bankr. M.D. Fla. Case No. 11-01524) filed separate Chapter 11 petitions on January 30, 2011. The cases are jointly administered. Evans Oil is the lead case. FAIRFIELD SENTRY: Files Suits to Pay Off Madoff Suit ---------------------------------------------------- Bankruptcy Law360 reports that Fairfield Sentry Ltd., Bernard L. Madoff's largest feeder fund, filed 57 New York federal court suits over a three-day span last week in a litigation binge aimed at recovering $3 billion the fund must turn over to Madoff's trustee. Separately, Bankruptcy Law360 reports that a Financial Industry Regulatory Authority arbitration panel held Thursday that Morgan Keegan & Co. Inc. should pay more than $250,000 to a Florida couple after placing their entire investment in a now-bankrupt hedge fund that steered investments to Bernard Madoff's Ponzi scheme. Law360 says the panel ruled that the Regions Financial Corp. subsidiary did very little due diligence on the investment to Greenwich, Conn.-based Greenwich Sentry LP, a feeder for Bernard L. Madoff Investment. 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 Dec. 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.). Mr. Picard has retained AlixPartners LLP as claims agent. 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 Feb. 18, 2011, a total of US$6.85 billion in claims by investors has been allowed, with US$791.1 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. About Fairfield Sentry Fairfield Sentry is being liquidated under the supervision of the Commercial Division of the High Court of Justice in the British Virgin Islands. It is one of the funds owned by the Fairfield Greenwich Group, an investment firm founded in 1983 in New York City. Fairfield Sentry and other Greenwich funds had among the largest exposures to the Bernard L. Madoff fraud. Fairfield Sentry Limited, filed for Chapter 11 protection in June 2010 (Bankr. S.D.N.Y. Case No. 10-13164). Greenwich Sentry, L.P., and an affiliate filed for Chapter 11 protection on November 19, 2010 (Bankr. S.D.N.Y. Case No. 10-16229) hoping to settle lawsuits filed against it in connection with its investments with Bernard L. Madoff. On May 18, 2009, Irving H. Picard, the trustee liquidating the estate of Mr. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC, filed a lawsuit against Fairfield Sentry and Greenwich, seeking the return of $3.55 billion that Fairfield withdrew from Madoff during the period from 2002 to Madoff's arrest in December 2008. Since 1995, the Fairfield funds invested about $4.5 billion with BLMIS. Mr. Picard claims that Fairfield knew or should have known about the fraud give that it received from BLMIS unrealistically high and consistent annual returns of between 10% and 21% in contrast to the vastly larger fluctuations in the S&P 100 Index. FLINTKOTE COMPANY: Garlock Wants to Intervene in 12 Cases --------------------------------------------------------- Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About Flinkote Company Headquartered in San Francisco, California, The Flintkote Company is engaged in the business of manufacturing, processing and distributing building materials. Flintkote Mines Limited is a subsidiary of Flintkote Company and is engaged in the mining of base-precious metals. The Flintkote Company filed for Chapter 11 protection on April 30, 2004 (Bankr. D. Del. Case No. 04-11300). Flintkote Mines Limited filed for Chapter 11 relief of August 25, 2004 (Bankr. D. Del. Case No. 04-12440). James E. O'Neill, Esq., Kathleen P. Makowswki, Esq., Laura Davis Jones, Esq., Sandra G.M, Selzer, Esq., and Scotta Edelen McFarland, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Debtors in their restructuring efforts. Kathleen Campbell Davis, Esq., and Mark T. Hurford, Esq., at Campbell & Levine, LLC, represent the official committee of unsecured creditors as counsel. When Flintkote Company filed for protection from its creditors, it estimated more than $100 million each in assets and debts. When Flintkote Mines Limited filed for protection from its creditors, it estimated assets of $1 million to $50 million, and debts of more than $100 million. FRANK PARSONS: Committee Taps NHB Advisors as Financial Advisor --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Frank Parsons Inc. asks the U.S. Bankruptcy Court for the District of Maryland for permission to retain NHB Advisors Inc. as its financial advisor. The U.S. Trustee has formed a statutory committee of unsecured creditors in Frank Parsons' Chapter 11 case. The members of the Committee are: -- NE Opco, Inc., -- Global Fibres, Inc., -- International Paper Company, -- P.H. Glatfelter Company, -- West Linn Paper Company, -- United Stationers Supply Co., and -- Synnex Corporation As financial advisor to the Committee, NHB has agreed to: a) review and analyze the business, management, operations, properties, financial condition and prospects of the Debtor; b) review and analyze historical financial performance, and transactions between and among the Debtor, its creditors, affiliates and other entities; c) review the assumptions underlying the business plans and cash flow projections for the assets involved in any potential asset sale or plan of reorganization; d) determine the reasonableness of the projected performance of the Debtor; e) monitor, evaluate and report to the Committee with respect to the Debtor's near-term liquidity needs, material operational changes and related financial and operational issues; f) review and analyze all material contracts and/or agreements; g) assist and procure and assemble any necessary validations of asset values; h) provide ongoing assistance to the Committee and the Committee's legal counsel; i) evaluate the Debtor's capital structure and making recommendations to the Committee with respect to the Debtor's efforts to reorganize its business operations and confirm a plan; j) assist the Committee in preparing documentation required in connection with creating, supporting or opposing a plan and participating in negotiations on behalf of the Committee with the Debtor or any groups affected by a plan; k) assist the Committee in marketing the Debtor's assets with the intent of maximizing the value received for any such assets from any such sale; and, l) provide ongoing analysis of the Debtor's financial condition, business plans, capital spending budgets, operating forecasts, management and the prospects for its future performance. The hourly rates of the firm's professionals are: Professionals Hourly Rates ------------- ------------ Edward T. Gavin, CTP $525 Sarah E. Pugh $375 Principals, Advisors and Associates $250-$600 The Committee assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Frank Parsons Headquartered in Hanover, Maryland, Frank Parsons, Inc. -- http://www.frankparsons.com/-- aka Frank Parsons Paper Company Inc., is the largest employee-owned, business products, technology, and office supplies company in the United States, offering more than 180,000 products from companies such as Avery, Fujifilm, Hewlett Packard, IBM, Sony, Xerox, Xiotech, and more. Frank Parsons is an approved contractor on the GSA Schedule and an authorized AbilityOne Distributor. The company holds several environmental certifications, including FSC, SFI, and PEFC. Frank Parsons filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 11-10338) on Jan. 6, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Gary H. Leibowitz, Esq., and Irving Edward Walker, Esq., at Cole Schotz Meisel Forman & Leonard, PA, serve as the Debtor's bankruptcy counsel. The Debtor has also tapped SSG Capital as an investment banker to explore strategic options. WeinsweigAdvisors LLC is the financial advisor to the Debtor. Delaware Claims Agency, LLC, is the claims and noticing agent. Brent C. Strickland, Esq., at Whiteford, Taylor & Preston L.L.P., in Baltimore, Maryland, and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as counsel to the Official Committee of Unsecured Creditors formed in the Chapter 11 case. FRANK PARSONS: Committee Taps Pachulski Stang as Counsel -------------------------------------------------------- The Official Committee of Unsecured Creditors of Frank Parsons Inc. asks the U.S. Bankruptcy Court for the District of Maryland for permission to employ Pachulski Stang Ziehl & Jones LLP as its counsel. The U.S. Trustee has formed a statutory committee of unsecured creditors in Frank Parsons' Chapter 11 case. The members of the Committee are: -- NE Opco, Inc., -- Global Fibres, Inc., -- International Paper Company, -- P.H. Glatfelter Company, -- West Linn Paper Company, -- United Stationers Supply Co., and -- Synnex Corporation As the Committee's counsel, Pachulski Stang has agreed to: a) assist the Committee in understanding its powers and its duties under the Bankruptcy Code and the Bankruptcy Rules and in performing other services as are in the interests of those represented by the Committee; b) provide legal advice and assistance to the Committee in its consultation with the Debtor relative to the Debtor's administration of its reorganization; c) review and analyze all applications, motions, orders, statements of operations and schedules filed with the Court by the Debtor or third parties, advise the Committee as to their propriety, and, after consultation with the Committee, take appropriate action; d) prepare necessary applications, motions, answers, orders, reports and other legal papers on behalf of the Committee; e) represent the Committee at hearings held before the Court and communicate with the Committee regarding the issues raised, as well as the decisions of, the Court; f) assist the Committee in analyzing the Debtor's assets and liabilities, investigating the extent and validity of liens, and participating in and reviewing any proposed asset sales, any asset dispositions, financing arrangements, and cash collateral stipulations or proceedings; g) advise and represent the Committee in any manner relevant to reviewing and determining the Debtor's rights and obligations under leases and other executory contracts; h) advise and represent the Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtor, the Debtor's operations, and the desirability of the continuance of any portion of those operations, and any other matters relevant to this case or to the formulation of a plan; i) assist, advise, and represent the Committee in the evaluation of claims and on any litigation matters, including avoidance actions; and j) represent the Committee in connection with any other matters that may arise in the Chapter 11 case and to perform all other legal services for the Committee that may be necessary and proper in the Chapter 11 case. The firm's professionals and their rates are: Professionals Hourly Rates ------------- ------------ Robert J. Feinstein, Esq. $895 Debra Grassgreen, Esq. $795 Bradford J. Sandler, Esq. $675 Michael R. Seidl, Esq. $595 Lynzy Oberholzer $245 The Committee assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Frank Parsons Headquartered in Hanover, Maryland, Frank Parsons, Inc. -- http://www.frankparsons.com/-- aka Frank Parsons Paper Company Inc., is the largest employee-owned, business products, technology, and office supplies company in the United States, offering more than 180,000 products from companies such as Avery, Fujifilm, Hewlett Packard, IBM, Sony, Xerox, Xiotech, and more. Frank Parsons is an approved contractor on the GSA Schedule and an authorized AbilityOne Distributor. The company holds several environmental certifications, including FSC, SFI, and PEFC. Frank Parsons filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 11-10338) on Jan. 6, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Gary H. Leibowitz, Esq., and Irving Edward Walker, Esq., at Cole Schotz Meisel Forman & Leonard, PA, serve as the Debtor's bankruptcy counsel. The Debtor has also tapped SSG Capital as an investment banker to explore strategic options. WeinsweigAdvisors LLC is the financial advisor to the Debtor. Delaware Claims Agency, LLC, is the claims and noticing agent. Brent C. Strickland, Esq., at Whiteford, Taylor & Preston L.L.P., in Baltimore, Maryland, and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as counsel to the Official Committee of Unsecured Creditors formed in the Chapter 11 case. FRANK PARSONS: Committee Taps Whiteford Taylor as Local Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Frank Parsons Inc. asks the U.S. Bankruptcy Court for the District of Maryland for permission to retain Whiteford, Taylor & Preston L.L.P. as its local counsel. The firm will: a) advise the Committee with respect to its powers and duties; b) prepare any necessary applications, motions, pleadings, orders, reports and other legal papers, and appearing on the Committee's behalf in proceedings instituted by, against, or involving the Debtor, the Committee or relating to the chapter 11 proceeding; c) assist the Committee in the investigation of the acts, liabilities and financial condition of the Debtor, the Debtor's assets and business operations, the disposition of the Debtor's assets, and any other matters relevant to this case and the interests of unsecured creditors; d) assist the Committee in coordinating its efforts to maximize distributions to unsecured creditors; and e) perform legal services for the Committee as may be necessary or desirable in the interests of the unsecured creditors. The firm will charge the Debtor's estates based on the hourly rates of its professionals: Designations Hourly Rates ------------ ------------ Partners $390-$620 Associates $290-$440 Paralegals $150-$270 The Committee assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Frank Parsons Headquartered in Hanover, Maryland, Frank Parsons, Inc. -- http://www.frankparsons.com/-- aka Frank Parsons Paper Company Inc., is the largest employee-owned, business products, technology, and office supplies company in the United States, offering more than 180,000 products from companies such as Avery, Fujifilm, Hewlett Packard, IBM, Sony, Xerox, Xiotech, and more. Frank Parsons is an approved contractor on the GSA Schedule and an authorized AbilityOne Distributor. The company holds several environmental certifications, including FSC, SFI, and PEFC. Frank Parsons filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 11-10338) on Jan. 6, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Gary H. Leibowitz, Esq., and Irving Edward Walker, Esq., at Cole Schotz Meisel Forman & Leonard, PA, serve as the Debtor's bankruptcy counsel. The Debtor has also tapped SSG Capital as an investment banker to explore strategic options. WeinsweigAdvisors LLC is the financial advisor to the Debtor. Delaware Claims Agency, LLC, is the claims and noticing agent. Brent C. Strickland, Esq., at Whiteford, Taylor & Preston L.L.P., in Baltimore, Maryland, and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as counsel to the Official Committee of Unsecured Creditors formed in the Chapter 11 case. FREDDIE WAYNE LONG: Court Rules on ReVest Summary Judgment Bids --------------------------------------------------------------- In Revest, LLC, v. Freddie Wayne Long, Adv. Pro. No. 09-5303 (Bankr. D. Kans.), ReVest filed two dispositive motions. The first is a combined motion to dismiss and for summary judgment filed on July 7, 2010, seeking dismissal of Freddie Wayne Long's fraud claim and summary judgment on: (1) Mr. Long's Kansas Consumer Protection Act claim against ReVest for unconscionable conduct in connection with the acquisition of the properties; (2) Mr. Long's quiet title claim against ReVest; and (3) ReVest's complaint for a judgment declaring it the owner of certain real property free and clear of any interest of Mr. Long. The second motion, filed on Jan. 10, 2011, seeks summary judgment on Mr. Long's remaining KCPA claims to the extent that Mr. Long seeks the remedy of money judgments. Chief Bankruptcy Judge Robert E. Nugent grants ReVest's summary judgment motions in part and denies them in part. Summary judgment for ReVest and against Mr. Long is granted on the KCPA claim concerning the Purchase Agreement because it is barred by the statute of limitations. ReVest is granted summary judgment on the KCPA claim covering the 2006 option and lease; the Court finds that the 2006 option and lease were not unconscionable as a matter of law. ReVest is denied summary judgment on Mr. Long's KCPA claim in connection with the 2008 and 2009 lump-sum payments and the 2009 option offer; on Mr. Long's fraud claim; and on ReVest's and Mr. Long's quiet title claims. A copy of the Court's March 1, 2011 opinion is available at http://is.gd/BR1wLLfrom Leagle.com. Freddie Wayne Long filed for Chapter 13 relief (Bankr. D. Kans. Case No. 09-12827) on Aug. 31, 2009. He converted his case to Chapter 11 on March 4, 2010. FREEDOM COMMUNICATIONS: Final Bids for Assets Due Thursday ---------------------------------------------------------- The Wall Street Journal's Mike Spector and Anupreeta Das report that people familiar with the matter said final bids are due Thursday in the auction of Freedom Communications Inc. They said possible bidders include Denver Post publisher MediaNews Group Inc.; Tribune Co.; Gores Group; and Platinum Equity, owner of the San Diego Union Tribune. According to the Journal, Freedom is giving bidders several options. Suitors can make offers for the entire company or they can separately bid on Freedom's eight television stations, its more than 100 daily and weekly newspapers or the Orange County Register alone. Investment bank Moelis & Co. is advising Freedom on the auction. The Journal relates Freedom said it "continues its review of a wide variety of strategic options" but declined to comment further. According to the Journal, it remained unclear what prospective bidders might offer for Freedom's assets and which pieces each might pursue. The entire company won't likely fetch more than $1 billion, said people familiar with the matter. The sources told the Journal Freedom's television stations could go for about $400 million, or eight times the division's earnings before interest, taxes, depreciation and amortization. The Register and other newspapers could fetch around $350 million, or about four times that division's $90 million in such earnings, these people said. According to the Journal, people familiar with the matter cautioned that a number of complexities surround potential offers and it will take time to finalize a transaction: (A) Hedge fund Alden Global Capital owns shares of both MediaNews and Freedom. The Journal recounts MediaNews' holding company last year restructured through a quick bankruptcy, emerging owned by several hedge funds including Alden. Alden has been studying folding some of its newspaper holdings into a single company. Besides stakes in MediaNews and Freedom, Alden also acquired stakes in the publisher of the Philadelphia Inquirer and the Journal Register Co. through bankruptcy proceedings and is poised to own part of Tribune when it emerges from Chapter 11 protection sometime this year. (B) Hedge fund, Angelo, Gordon & Co., also holds a stake in Freedom and is also set to own part of Tribune. (C) Some bids could be complicated by antitrust issues. Tribune, for instance, owns the Los Angeles Times, a nearby competitor to the Register. Tribune's bankruptcy could also muddle bidding plans . Still, Tribune has been doing due diligence on Freedom's assets and continues to weigh a bid. According to the Journal, a separate person familiar with the matter said Gores Group, whose holdings include radio station operator Westwood One Inc., plans to make a bid for Freedom assets by Thursday. Gores hasn't decided on which assets to bid, and is "looking at all of it," this person said. Another source told the Journal that Platinum Equity is looking at Freedom's assets, but is not rushing to make an acquisition. About Affiliated Media Denver, Colorado-based Affiliated Media, Inc., is the holding company for the MediaNews Group family of newspapers, the nation's second-largest newspaper publisher by circulation and owner of 54 daily newspapers, over 100 non-daily newspapers, as well as Web sites, television and radio broadcasters that serve markets in 12 states. The Company filed for Chapter 11 bankruptcy protection on January 22, 2010 (Bankr. D. Delaware Case No. 10-10202). Hughes Hubbard & Reed LLP, served as the Debtor's general bankruptcy counsel, while Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, served as the Debtor's co-bankruptcy counsel. Carl Marks Advisory Group LLC acted as the Debtor's restructuring advisor; Rothschild Inc., the Debtor's financial advisor; and Epiq Bankruptcy Solutions, LLC, the Debtor's claims agent. The Company estimated $100 million to $500 million in assets and $500 million to $1 billion in liabilities. The Hon. Kevin J. Carey confirmed the Company's plan of reorganization on March 4, 2010, less than six weeks after the bankruptcy filing. The Company had reached agreement pre-bankruptcy with its lenders on terms of the plan, which reduces the Company's debt from $930 million to $165 million and involves no management change or change of control of the Company. The Plan gives holders of senior notes aggregating $583.1 million 88% of the common stock, the proceeds of $150 million secured term loan and certain cash payments. Holders of general unsecured claims retain their claims or would be paid in full. Holders of $326 million in subordinated notes would receive warrants to purchase stock of the reorganized company. Holders of equity interests were wiped out. Affiliated Media emerged from Chapter 11 protection in March 2010. 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 Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America 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. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. 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) About Freedom Communications Freedom Communications, headquartered in Irvine, Calif., is a national privately owned media company operating print publications, broadcast television stations and interactive businesses. The company's print portfolio includes approximately 100 daily and weekly publications, plus ancillary magazines and other specialty publications. The broadcast company's stations -- five CBS, two ABC network affiliates and one CW affiliate -- reach more than 3 million households across the country. The Company's news, information and entertainment websites complement its print and broadcast properties. Freedom Communications filed for Chapter 11 on Sept. 1, 2009 (Bankr. D. Del. Case No. 09-13046). Attorneys at Young Conaway Stargatt & Taylor, and Latham & Watkins LLP served as Chapter 11 counsel. Houlihan, Lokey, Howard & Zukin, Inc., served as financial advisors while AlixPartners LLC served as restructuring consultants. Logan & Co. served as claims and notice agent. Freedom Communications had $757,000,000 in assets against debts of $1,077,000,000 as of July 31, 2009. The Bankruptcy Court confirmed Freedom Communications' Plan of Reorganization on March 9, 2010. The Plan became effective April 30, 2010. The Plan, which was supported by the Steering Committee of the Company's secured lenders and the Official Committee of Unsecured Creditors, eliminated $450 million of debt from Freedom's balance sheet. FRENCH BROAD: Plan Confirmation Hearing on April 20 --------------------------------------------------- Judge George R. Hodges of the U.S. Bankruptcy Court for the Western District of North Carolina will convene a hearing on April 20, 2011, at 9:30 a.m. to consider confirmation of the proposed Chapter 11 plan of French Broad LLC. The Court approved the disclosure statement explaining the Plan on Feb. 23. The Debtor will send the solicitation package -- containing copies of the Plan, the Disclosure Statement and a ballot -- to each creditor entitled to vote on the Plan by March 18. Objections to confirmation and written acceptances or rejections of the plan are both due April 12. The Chapter 11 Plan According to the Disclosure Statement, the Plan provides for creditors to be paid in full from the sale of units by French Broad Place. Under the Plan, Metromont Corporation, owed $2,961,431 for its DIP claim, will receive 10% per annum accrued interest for a period of 13 months, principal reduction will be paid periodically as future inventory sales close on account of Metromont's secured claim. Metromont will receive 40% of all future net sales proceeds to be applied to the principal loan balance outstanding. Ashville Savings Bank, owed $8,620,619, secured by a second lien deed of trust on the assets of the Debtor, will receive 40% of all future sales net proceeds applied to the principal loan balance outstanding on account of Ashville's impaired secured claim. Once the DIP loan is repaid 100%, then 100% of the future NSP will be paid to Ashville as loan principal reduction until paid in full with interest at the contract rate. Metromont, owed $2,765,234 secured by a third lien deed of trust, will not be paid interest or principal during the DIP loan tenure. The second deed of trust contract note will accrue interest at 5% from the date of the Plan. Once the DIP loan is repaid 10% and Ashville Savings Bank is repaid 100%, then Metromont will receive monthly interest at 5% and 100% of future NSP until repaid 100%. Ed Burdette Construction, holder a materialman's/mechanics lien in the amount of $2,627,773, will have its claim paid as a general unsecured claim. General unsecured creditors, expected to total $3,300,000, which includes the secured claim of Ed Burdette, will be paid in full over a period of three years. A copy of the Court-approved disclosure statement is available for free at http://bankrupt.com/misc/French_Broad_Final_DS.pdf Confirmation Required by April 30 The terms of the DIP loan provided that French Broad Realty, Inc., which is a separate organization from the Debtor, but is owned by principals of the Debtor, is allowed a limited six-month of sales listing for all units with a 1.5% listing-side commission and an additional 3% commission to be paid to the procuring broker if other than FBRI. FBRI will be allowed to draw up to $11,500 per month for use as salary of its personnel, for a period of six months. The Debtor, under the DIP loan, is required to obtain confirmation of the Plan by April 30. About French Broad French Broad Place LLC was formed for the development of a 48-unit mixed used real estate community in downtown Brevard, North Carolina. The owners -- led by Scott Latell and Joshua Burdette as managing members -- have over $4,500,000 of cash equity in the development to date. Appraisals conducted in the spring of 2010 valued the property from $10,500,000 to $12,5000,000. Secured claims by lenders exceed $14,000,000. French Broad Place LLC filed for Chapter 11 bankruptcy protection on March 25, 2010 (Bankr. W.D. N.C. Case No. 10-10335). Edward C. Hay, Jr., Esq., at Pitts, Hay & Hugenschmidt, P.A., represents the Debtor. The Company disclosed $20,171,100 in assets and $14,395,245 in liabilities. FREY MECHANICAL: Ch. 7 Trustee May Recoup $400,000 in Insider Suit ------------------------------------------------------------------ In Christine C. Shubert, Chapter 7 Trustee for the Estate of Frey Mechanical Group, Inc., v. Stanley Mull and Joan W. Mull, Adv. Pro. No. 10-00159 (Bankr. E.D. Pa.), the Chapter 7 Trustee seeks partial summary judgment, requesting judgment against Stanley Mull and Joan W. Mull pursuant to 11 U.S.C. Sections 547(b) and 550 in the amount of $740,000. The Chapter 7 Trustee asserts that she is entitled to judgment in her favor because the Defendants, the father and mother of the Debtor's secretary and the parents-in-law of the Debtor's president, are "insiders" as defined by 11 U.S.C. Sec. 101(31) who received the Transfers as repayment of loans made by the Defendants to the Debtor. The Defendants admit the Transfers, but oppose recovery of the payments by the Trustee on the grounds that they served as a lender to the Debtor and as such the Transfers are exempt from recovery as ordinary course transfers pursuant to 11 U.S.C. Sec. 547(c)(1). In addition, the Defendants assert that they provided new value to the Debtor after receipt of the Transfers as provided for by 11 U.S.C. Sec. 547(c)(4). Bankruptcy Judge Magdeline D. Coleman noted that the parties agree that the Transfers are preferential under 11 U.S.C. Sec. 547(b) and that the Defendants are "insiders" as defined by 11 U.S.C. Sec. 101(31). The Court finds that, drawing all inferences in their favor, the Defendants cannot demonstrate the applicability of the ordinary course of business defense under 11 U.S.C. Sec. 547(c)(2). However, the Court does find that the Defendants have demonstrated that, drawing all inferences in their favor, they are entitled to offset the Transfers by new value as provided by 11 U.S.C. Sec. 547(c)(4). Accordingly, the Trustee is entitled to partial summary judgment but only for $400,000. A copy of the Court's March 1, 2011 Memorandum Opinion is available at http://is.gd/nQQGSQfrom Leagle.com. Frey Mechanical Group, Inc., filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case No. 10-10349) on Jan. 18, 2010. The Debtor's case was converted to Chapter 7 on Feb. 9, 2010. FUSION CUISINE: Ch. 7 Trustee Seeks to Sell Property to Landlords ----------------------------------------------------------------- The Chapter 7 trustee for Fusion Cuisine Inc. filed a motion to approve a sale of estate property to the landlords of the Debtor's premises and for approval of a settlement of claims held by those landlords against the estate, including secured claims. The consideration the landlords are paying includes a $30,000 "Cash Payment." The order approving the sale would direct that "$30,000 of the Cash Payment represents a carveout pursuant to 11 U.S.C. Sec. 506(c) and may be applied by the Trustee towards his fees and expenses." Bankruptcy Judge S. Martin Teel, Jr., noted that some decisions hold that a Sec. 506(c) surcharge recovery cannot properly be paid to an individual administrative creditor, but can only be recovered for the estate's benefit, citing Ungaretti & Harris LLP v. Steinberg (In re Resource Tech. Corp.), 356 B.R. 435, 444-45 (Bankr. N.D. Ill. 2006); see also Ford Motor Credit Co. v. Reynolds & Reynolds Co. (In re JKJ Chevrolet, Inc.), 26 F.3d 481, 484 (4th Cir. 1994) (surcharge is payable to the estate, "as an unencumbered asset for distribution to the unsecured creditors . . . [p]ursuant to the distribution rules of Sec. 726(a) [and] the priority rules of . . . Sec. 507"). Accordingly, Judge Teel on March 1 directed the Chapter 7 Trustee to show cause at the hearing March 2 or beforehand why the court ought approve a provision for a carveout of Sec. 506(c) only for the benefit of the trustee's fees and expenses (as opposed to the proceeds of the Sec. 506(c) surcharge being available for payment of all chapter 7 administrative claims on a pro rata basis in accordance with the priority rules of Sec. 507). A copy of the Court's March 1, 2011 Memorandum Decision and Order is available at http://is.gd/ZLaYjnfrom Leagle.com. Washington D.C.-based Fusion Cuisine, Inc., filed for Chapter 11 bankruptcy (Bankr. D.C. Case No. 10-00821) on Aug. 20, 2010, listing between $100,000 and $500,000 in both assets and debts. Kenneth L. Samuelson, Esq., at Samuelson Law Offices, LLC, in Washington, DC, served as the Debtor's bankruptcy counsel. The case was later converted to Chapter 7. GARDNER DENVER: S&P Affirms 'BB' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Rating Services said it affirmed its 'BB' corporate credit rating on Wayne, Pa.-based Gardner Denver Inc. S&P also revised the recovery rating on the company's $125 million senior subordinated notes due 2013 to '3' from '4', indicating S&P's expectation of meaningful (50%-70%) recovery in a payment default scenario (for the complete recovery analysis, see the recovery report to be published following the release of this report). At the same time, S&P revised the outlook to positive from stable. The outlook revision reflects the potential for a rating upgrade if GDI continues to perform better than S&P's expectations for the 'BB' corporate credit rating. The company has benefited from recovering end markets and has made progress improving profitability in its Industrial Products Group. "S&P believes that if the company continues to perform well, it could absorb a sizable acquisition and still maintain total debt to EBITDA of around 3x, a level appropriate for the higher rating," said Standard & Poor's credit analyst Sarah Wyeth. The ratings on GDI reflect the cyclical and competitive nature of the industrial equipment markets where the company operates. Several factors support the ratings, including GDI's good market position, its end-market and geographic diversity, its consistent cash flow generation, and its track record of deleveraging after completing debt-funded acquisitions. "S&P could raise the ratings if the company appears likely to maintain its improved credit measures and if it adheres to a financial policy that could support a higher rating," said Ms. Wyeth. "S&P could raise the ratings if, for example, Gardner Denver maintains total adjusted debt to EBITDA of less than 3x." GARY PHILLIPS: Creditors Panel Has Greenlight to Hire Hodges ------------------------------------------------------------ Judge Marcia Phillips Parsons authorized the official committee of unsecured creditors in the bankruptcy case of Gary Phillips Construction to retain Hodges, Doughty & Carson PLLC, as its attorneys. Dean B. Farmer, Esq., is leading the engagement. Mr. Farmer charges $290 an hour for his services. All other partners will be paid $225 an hour; associates $180 and paralegals $90. Th firm will also be reimbursed for necessary expenses. The firm, in a verified statement, attests that it is a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code and does not hold or represent any adverse interest in connection with the Debtor's case. About Gary Phillips Construction Piney Flats, Tennessee-based Gary Phillips Construction, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case No. 10-53097) on Dec. 3, 2010. Fred M. Leonard, Esq. -- fredmleonard@earthlink.net -- in Bristol, Tennessee, serves as the Debtor's counsel. Dean B. Farmer, Esq., at Hodges, Doughty & Carson, PLLC, serves as the committee of unsecured creditors' counsel. In its schedules, the Debtor disclosed $13,255,698 in assets and $7,614,399 in liabilities as of the Petition Date. GARY PHILLIPS: Court Denies Employment of Crye-Leike Realtors ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee denied the application by Gary Phillips Construction, LLC, to employ Crye-Leike Realtors as realtor. Creditor Regions Bank has objected to the request. The Debtor has said it needs Crye-Leike Realtors to represent it in the listing and selling of its various properties. Stephanie Conner is the Managing Broker of Crye-Leike Realtors. The Debtor assured the Court the employment of Crye-Leike Realtors will not constitute any additional expense as the Debtor has regularly employed Crye-Leike Realtors to sell its properties. The Debtor also indicated that its sole member, Gary Phillips, is not paid any salary for his time and effort in finishing and selling the Debtor's properties and that the only fees paid to him is a percentage of the Debtor's rental income which is the approximate amount of $3,000 per month as a management fee. It also disclosed that Mr. Phillips' wife, Karla, is one of the licensed real estate agents with Crye-Leike Realtors and historically has received a commission from Crye-Leike Realtors as the listing agent for the sale of the Debtor's properties. The Debtor said Crye-Leike Realtors or its real estate agents would get a total commission rate of 8%, or some lesser ratio, for the sale of commercial properties and 5%, or some lesser ratio, for other property sales. Crye-Leike Realtors represents no interest adverse within the meaning of U.S.C. Sec. 101(14) et seq. to the Debtor or the estate in the matters upon which it is to be engaged for the Debtor with the exception of Ms. Phillips. About Gary Phillips Construction Piney Flats, Tennessee-based Gary Phillips Construction, LLC, builds residential housing. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case No. 10-53097) on Dec. 3, 2010. Fred M. Leonard, Esq. -- fredmleonard@earthlink.net -- in Bristol, Tennessee, serves as the Debtor's counsel. Dean B. Farmer, Esq., at Hodges, Doughty & Carson, PLLC, serves as the committee of unsecured creditors' counsel. In its schedules, the Debtor disclosed $13,255,698 in assets and $7,614,399 in liabilities as of the Petition Date. GARY PHILLIPS: Wants $9,800 TruPoint Construction Draws Continued ----------------------------------------------------------------- Gary Phillips Construction, LLC, and TruPoint Bank ask the U.S. Bankruptcy Court for the Eastern District of Tennessee to determine that: -- the postpetition construction draws can continue to be made by TruPoint Bank in the ordinary course of business; -- TruPoint is entitled to be paid in full for prepetition and postpetition draws when the houses are sold and closed so that the Debtor can continue to build houses and receive draws from TruPoint as it has in the past; and -- the draws are secured pursuant to TruPoint Bank's prepetition security agreement, note, and deed of trust dated May 28, 2010. As of the Petition Date, the Debtor had four houses in Cardinal Forest that were under various stages of construction. All the four houses were being financed pursuant to a construction loan with TruPoint Bank. The loan arrangement required the Debtor to complete a certain percentage of a house and then request a draw to cover the Debtor's construction costs. The Debtor relates that it needs the draw to keep the workers on the job to complete the house in time to close. TruPoint agreed to provide financing on the four houses that remain unfinished for which they have loan commitments in the approximate amount of $600,000. TruPoint Bank also agreed to escrow $9,800 of the loan pay-off to prevent the Debtor from losing the sale. TruPoint Bank also asks for a continuing lien, which has already been granted under the cash collateral order dated Feb. 3, 2011, and the $9,800 escrowed that TruPoint Bank advanced postpetition to finish the first house which in the process of closing. The Court will consider the motion on Postpetition Construction Draws on March 15, 2011 at 9:00 a.m. About Gary Phillips Construction Piney Flats, Tennessee-based Gary Phillips Construction, LLC, builds residential housing. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case No. 10-53097) on Dec. 3, 2010. Fred M. Leonard, Esq. -- fredmleonard@earthlink.net -- in Bristol, Tennessee, serves as the Debtor's counsel. Dean B. Farmer, Esq., at Hodges, Doughty & Carson, PLLC, serves as the committee of unsecured creditors' counsel. In its schedules, the Debtor disclosed $13,255,698 in assets and $7,614,399 in liabilities as of the Petition Date. GARY WASHINGTON: No Stay Extension in Second Chapter 11 Case ------------------------------------------------------------ Bankruptcy Judge David R. Duncan denied the request of Gary Allen Washington and Michele Anne Washington to extend the automatic stay in their bankruptcy case. Objections were filed by South Carolina Community Bank and the United States Trustee. Judge Duncan held that a presumption that the Debtors' chapter 11 case was not filed in good faith arises under Section 362(c)(3)(C)(i)(III) and 362(c)(3)(C)(i)(III)(bb) of the Bankruptcy Code, because there has been no substantial change in the Debtors' financial affairs and because it appears that the Debtors will be unable to fully perform a confirmed chapter 11 plan. The Debtors have failed to rebut the presumption by clear and convincing evidence showing that their case was filed in good faith. The Court allowed the automatic stay to expire March 5, 2011, 30 days after the filing of the Debtors' current chapter 11 case. A copy of Judge Duncan's March 4, 2011 order is available at http://is.gd/j3t5Tefrom Leagle.com. Gary Allen Washington and Michele Anne Washington own a personal residence as well as three additional properties. The additional properties are used as residential and commercial rental properties by the Debtors. The Washingtons filed for chapter 11 protection (Bankr. D. S.C. Case No. 11-00625) on Feb. 3, 2011. The Washingtons previously filed a chapter 11 case on Nov. 2, 2009. That case was dismissed Sept. 24, 2010. The Debtors appealed the dismissal of that case, and their appeal is currently pending before the District Court. Because their previous chapter 11 case was dismissed only a few months before the Debtors filed the current case, the automatic stay was set to expire March 5, 2011, 30 days after the current filing. The Debtors filed their Motion to prevent that from occurring and to ask that the stay be extended as to all creditors. GENERAL MOTORS: Court OKs Class Suit Status vs. GM Canada --------------------------------------------------------- An Ontario court granted class action status March 1 to a lawsuit by over 200 former Canadian GM auto dealers terminated in connection with GM's 2009 auto bailout by the Governments of Canada and Ontario. The lawsuit, seeking $750 million in damages, claims that General Motors of Canada Limited (GM), a subsidiary of General Motors Company, breached provincial franchise laws in eliminating the dealerships. Also named in the suit is Cassels Brock & Blackwell LLP (Cassels), a major Canadian law firm retained to act for the Canadian GM dealers in anticipation of a GM restructuring. The claim alleges that Cassels was in a conflict of interest by simultaneously acting for the Government of Canada in connection with the GM auto bailout. One of the conditions for GM to access billions of dollars of government funding was the elimination of a large number of GM dealers. The suit alleges that after GM presented a termination package to the affected dealers, Cassels told them to consult their individual lawyers in the limited time which they had to respond to the package. Unable to negotiate as a group, and without group legal counsel, the vast majority of dealers signed back the termination package as presented by GM rather than risking GM filing for a formal insolvency proceeding as GM threatened to do if the dealers rejected the offer. The dealers had between two and four business days to accept the package which was offered. GM avoided a formal insolvency proceeding in Canada, unlike in the United States where its parent company reduced its dealership network through a formal Chapter 11 filing. In the 68-page decision, the Honorable Justice G.R. Strathy described the tumultuous events that took place over six days in May 2009 while GM sought to eliminate the dealers. These events had been largely shielded from public disclosure through confidentiality agreements signed by the dealers at the time of their terminations. (As further background, lawyers for the terminated dealers have initiated freedom of information requests to both the federal and provincial governments in relation to the GM auto bailout. Both governments have denied access to thousands of documents, citing the need to protect commercial interests of unnamed third parties, presumably GM. These refusals are currently under appeal.) Concluding that justice would best be served by allowing the dealers to proceed as a class action, Justice Strathy remarked: "[i]t is not realistic to think that an individual franchisee, who has experienced the loss of their business, is financially or psychologically equipped to engage in protracted, complicated and very expensive litigation with one of the largest corporations in North America and a major Canadian law firm." (Para. 161) Regarding the claims against Cassels, the judge commented, "[t]his is not a typical solicitor's negligence case" and that the case raises "important issues concerning lawyers' duties to their clients, particularly in the context of group retainers." (Para. 164) David Sterns, one of the lawyers for the lead plaintiff, stated "the elimination of the dealers was a man-made disaster for hundreds of family-owned businesses forced to pay the price for GM's financial problems. As a result of this decision, the dealers now have a chance to put the pieces back together and mount a recovery of their own." Trillium Motor World Ltd., a former GM dealer in Toronto, has been designated to represent the terminated dealers in every province. * * * Stefania Moretti of www.canoe.ca reported that counsel to the group of former GM Dealers called the Canadian government's involvement in setting specific business conditions attached to GM's bailout in 2009 as scandalous. The Canadian Government told GM that it would hand over billions of dollars in subsidies on the condition that they terminate more than 200 independent businesses throughout Canada, Mr. Sterns told the Ontario Court, according to the report. GM has not disclosed its criteria for which dealerships to close during the restructuring, the report noted. While a $750 million in damages would set GM back, the company can afford it, Tony Faria, an analyst and professor at University of Windsor said, citing that auto makers are doing better, the report relayed. A GM spokesperson did not comment on the matter as it is subject to court proceedings, the report added. 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 Sept. 30, 2010, GM had US$137.238 billion in total assets, US$106.522 billion in total liabilities, US$6.998 billion in preferred stock, US$971 million in non-controlling interest, and US$23.718 billion in total equity. New GM has a 'BB-' corporate credit rating from Standard & Poor's and a 'BB-' issuer default rating from Fitch. 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. Garden City Group is the claims and notice agent of the Debtors. 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) GLC LIMITED: U.S. Trustee Appoints 5 Members to Creditors Panel --------------------------------------------------------------- Daniel Mc.Dermott, the U.S. Trustee for Region 9, appoints five members to the Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 cases. The Creditors Committee members are: 1) Karen & Kevin Price Attn: Kevin Price, Chairperson 1260 W. Fitzgerald Lane Bogart, GA 30622 Phone: (770) 855-4001 2) J&M Brands Attn: Mike Cheek, Representative 2875 Casa Del Rio Terrace Jacksonville, FL 32257 Phone: (904) 370-1058 3) UGAPRICE, LLC P.O. Box 789 Braselton, GA 30517 Phone: (404) 502-0504 4) Tom E. Baugh, Jr. 4519 Sanderling Circle West Boynton Beach, FL 33456 Phone: (561)-733-6521 5) Maurice J. Koury c/o Milton Petty P.O. Box 850 Burlington, NC 27216 Phone: (336) 570-2129 Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. S.D. Ohio Case No. 11-11090). Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. GLC LIMITED: Creditors Panel Taps Morris Manning as Counsel ----------------------------------------------------------- The Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 bankruptcy case asks the U.S. Bankruptcy Court for the Southern District of Ohio for permission to retain Morris, Manning & Martin, LLP, as counsel, nunc pro tunc to March 4, 2011. On behalf of the Committee, Morris Manning will: a. prepare pleadings, motions, and conduct examinations incidental to the administration of the estate; b. investigate, analyze and make appropriate action, if required, in connection with the disposition of the Debtor's assets; c. investigate, analyze, and make appropriate action, if required, for recovery of assets of the estate and the prosecution of claims on behalf of the estate; and d. make any and all other necessary action incident to the preservation, administration, and recovery of assets of the estate for the benefit of creditors in the case as requested by the Committee. Morris Manning will be paid based on the hourly rates of its professionals: Frank W. DeBorde, Partner $475 David A. Rabin, Partner $575 Lisa Wolgast, Associate $400 William Oxford Tate, Associate $280 Margaret Hopkins, Paralegal $155 Frank W. DeBorde, Esq., a partner at Morris Manning, assures the Court that the firm is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code. Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. S.D. Ohio Case No. 11-11090). Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. GLC LIMITED: Gets Court's Nod to Use Cash Collateral ---------------------------------------------------- GL Limited seeks authority from the U.S. Bankruptcy Court for the Southern District of Ohio to use the cash collateral. Certain parties have asserted liens against certain pre-petition assets of the Debtor. The Alleged Prepetition Liens include, in sum, (i) certain liens asserted by certain alleged judgment holders; and (ii) certain liens asserted by various taxing authorities. A list of Alleged Pre-Petition Lien Holders and their Alleged Prepetition Liens is available for free at: http://bankrupt.com/misc/GLC_allegedprepetitionlienholders.pdf Ronald E. Gold, Esq., at Frost Brown Todd LLC, explains that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. In exchange for using the cash collateral, the Debtor proposes to grant the Alleged Prepetition Lien Holders replacement liens in the Debtor's postpetition assets to the extent that the postpetition assets are the same as the prepetition collateral that is allegedly encumbered by the Alleged Prepetition Liens. About GLC Limited Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. S.D. Ohio Case No. 11-11090). Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 bankruptcy case has tapped Morris, Manning & Martin, LLP, as counsel. The Debtor estimated its assets and debts at $10 million to $50 million as of the Chapter 11 filing. GMX RESOURCES: Incurs $146.87-Mil. Net Loss in Fourth Quarter ------------------------------------------------------------- GMX Resources Inc. reported fourth quarter and year ended 2010 financial and operating results. The Company reported a net loss of $138.29 million on $96.52 million of oil and gas sales for the year ended Dec. 31, 2010, compared with a net loss of $181.08 million on $94.29 million of oil and gas sales during the prior year. The Company also reported a net loss of $146.87 million on $27.17 million of oil and gas sales for the quarter ended Dec. 31, 2010, compared with a net loss of $47.48 million on $25.55 million of oil an gas sales for the same period during the previous year. The Company's balance sheet at Dec. 31, 2010 showed $507.09 million in total assets, $368.87 million in total liabilities and $138.22 million in total equity. Ken L. Kenworthy, Jr. Chairman and Chief Executive Officer said "2010 was another challenging year for our industry. Natural gas prices continued to deteriorate throughout the year and contrary to historical norms we did not experience a commensurate decrease in service costs. Throughout the year GMXR continued to focus on cost control and improving well performance. Our Haynesville/Bossier ("H/B") horizontal ("Hz") drilling program was successful - we increased our H/B proved reserves 800%. Our production of 17.5 BCFE was 28% higher than 2009 - a company record. Based on improved well results, we are forecasting an increase in production for 2011. In spite of limited access to completion services for most of the year and higher stimulation costs, we managed to drill and complete 19 H/B Hz wells at an average cost of $8.6 million and we do expect costs to decline in 2011. Our G&A costs, on a per unit basis, came down sequentially from 3Q10 to 4Q10 by 7% and our LOE on a per unit basis came down 29% from the previous year." A full-text copy of the press release announcing the financial results is available at no charge at: http://ResearchArchives.com/t/s?7480 GMX Resources Inc. -- http://www.gmxresources.com/-- is an independent natural gas production company headquartered in Oklahoma City, Oklahoma. GMXR has 53 producing wells in Texas & Louisiana, 24 proved developed non-producing reservoirs, 48 proved undeveloped locations and several hundred other development locations. GMXR has 9,000 net acres on the Sabine Uplift of East Texas. GMXR has 7 producing wells in New Mexico. The Company's strategy is to significantly increase production, revenues and reinvest in increasing production. GMXR's goal is to grow and build shareholder value every day. GREAT ATLANTIC & PACIFIC: Files Statement of Financial Affairs -------------------------------------------------------------- Frederic Brace, chief restructuring officer of The Great Atlantic & Pacific Tea Company Inc., disclosed in a statement filed with the Court that the company generated income from the operation of its business: Period Amount ------ -------------- Fiscal YTD 2010 (02/28/10-12/04/10) $1,792,483,213 Fiscal Year 2009 (03/01/09 - 02/27/10) $2,489,301,264 Fiscal Year 2008 (02/24/08 - 02/28/09) $2,723,067,289 Mr. Brace disclosed that within 90 days before A&P's Chapter 11 filing, the company paid $837,239,642 to creditors. A list of the 90-day pre-bankruptcy payments is available for free at: http://bankrupt.com/misc/A&P_PaymentCreditors_90days.pdf Within one year before the petition date, A&P made payments to creditors who were insiders. A list of the pre-bankruptcy insider payment is available without charge at: http://bankrupt.com/misc/A&P_PaymentInsiders.pdf The company also made these payments related to debt counseling or bankruptcy within one year immediately preceding the commencement of its bankruptcy case: Firms Amount ----- ----------- Kirkland & Ellis LLP $2,664,417 Kurtzman Carson Consultants LLC $95,161 Lazard Freres & Co. LLC $200,000 Robinson Lerer & Montgomery $285,599 A&P gave gifts and made charitable contributions totaling $170,480 within the same period. These include: Person/Organization Value of Gift ------------------- ------------- Long Island Junior Soccer League $75,000 Variety the Children's Charity $25,250 Abyssinian Development Corp. $10,000 C&S Wholesale Grocers Charity Golf Outing $15,000 Children's Miracle Network $15,000 Edgecombe County Choir $5,000 Island Harvest $5,000 Cystic Fibrosis Foundation $3,000 NC State University Choir $2,500 Gospel for Teens $1,000 A complete list of the persons or organizations that received contributions from the company can be accessed for free at: http://bankrupt.com/misc/A&P_Gifts.pdf Within the year before the petition date, A&P is or was a party to 200 lawsuits, of which 145 are still pending. A list of these lawsuits is available without charge at: http://bankrupt.com/misc/A&P_Lawsuits.pdf The company incurred losses within one year prior to the Petition Date, a list of which is available for free at http://bankrupt.com/misc/A&P_Losses.pdf Meanwhile, a list of the properties held by A&P for another person as well as the names of the persons who supervised the last two inventories of A&P's properties can be accessed for free at: http://bankrupt.com/misc/A&P_PropertyHeld.pdf http://bankrupt.com/misc/A&P_Inventories.pdf A&P assigned its store leases with Big Y Foods Inc., C&N Building LLC, Joseph Angelone, Perez Realty LLC, Rouse's Enterprises and Triple B8 LLC within two years prior to the petition date. Three of these leases had been transferred to Big Y Foods. Within two years prior to A&P's bankruptcy filing, these bookkeepers and accountants kept or supervised the keeping of its books of account and records: Personnel Dates Services Rendered --------- ----------------------- Brenda Galgano Dec. 2008 to Dec. 2010 Senior VP, CFO & Treasurer Melissa Sungela Dec. 2008 to Dec. 2010 Chief Accounting Officer VP & Corp Controller Annette Vozzolo Dec. 2008 to Oct. 2009 Assistant Controller At the time of the company's bankruptcy filing, its books of accounts and records were at the custody of Misses Galgano and Sungela. Meanwhile, PricewaterhouseCoopers LLP audited the books of account and records, and prepared the financial statement of A&P within two years prior to the petition date. A&P also disclosed the officers and directors of the company as well as the stockholders who directly or indirectly own, control or hold 5% or more of the voting or equity securities of the company. A list of these officers, directors and stockholders is available for free at: http://bankrupt.com/misc/A&P_Shareholders.pdf About A&P Founded in 1859, Montvale, New Jersey-based Great Atlantic & Pacific (A&P) is a leading supermarket retailer, operating under a variety of well-known trade names, or "banners" across the mid- Atlantic and Northeastern United States. It operates 395 supermarkets, combination food and drug stores, beer, wine, and liquor stores, and limited assortment food stores in Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and the District of Columbia. "Banners" include A&P (101 stores), Food Basics (12 stores), Pathmark (128 stores), Super Fresh (57 stores), The Food Emporium (16 stores), and Waldbaum's (59 stores). A&P employs roughly 41,000 employees, including roughly 28,000 part-time employees. Roughly 95% of the workforce are covered by collective bargaining agreements. The Great Atlantic & Pacific Tea Company, Inc., and its affiliates filed petitions under Chapter 11 of the U.S. Bankruptcy Code on Dec. 12, 2010 (Bankr. S.D.N.Y. Case No. 10-24549) in White Plains. As of Sept. 11, 2010, the Debtors reported total assets of $2.5 billion and liabilities of $3.2 billion. Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C. Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. Lazard Freres & Co. LLC is the financial advisor. Huron Consulting Group is the management consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represent the Official Committee of Unsecured Creditors. Bankruptcy Creditors' Service, Inc., publishes ATLANTIC & PACIFIC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by A&P and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). GREAT ATLANTIC & PACIFIC: Wants Add'l Members to Committee ---------------------------------------------------------- The Great Atlantic & Pacific Tea Company Inc. and its affiliated debtors seek the appointment of four more bondholders and trade creditors to the Official Committee of Unsecured Creditors. In a court filing, Ray Schrock, Esq., at Kirkland & Ellis, LLP, in New York, says the Debtors' direct store delivery and trade creditors and bondholders are underrepresented based on the current composition of the Creditors Committee and their unsecured claim base. "The Debtors agree that DSD trade creditors and bondholders deserve more of a voice in the Chapter 11 cases and in particular on the Creditors Committee," Mr. Schrock says. "The most logical and cost-effective solution is for the Court to exercise its discretion to direct the U.S. Trustee to appoint up to four additional bondholders and trade creditors to the current Creditors Committee," he says. The lawyer adds that the appointment would answer any questions about whether the unique interests and insights of those creditors and bondholders are taken into account by the Creditors Committee. Among the members of the Creditors Committee are trade creditors, McKesson Pharmaceutical and Calip Dairies Inc. McKesson is a party to an executory contract while Calip Dairies holds a relatively small claim against the Debtors. The remaining members of the Creditors Committee include the indenture trustee for the Debtors' approximately $605 million in bond issuances, four representatives of organized labor and pension liability constituencies, one of the Debtors' largest landlords, and C&S Wholesale Grocers Inc. C&S Wholesale has a unique relationship with the Debtors based on their complex executory supply and logistics agreement and holds a large setoff claim against the Debtors, according to Mr. Schrock. Mr. Schrock says the Debtors will support the appointment of a separate committee if the appointment of additional trade creditors and bondholders to the Creditors Committee is not approved by the Court, provided that such committee's reimbursable legal fees and expenses will not exceed $50,000 per month. Meanwhile, a lawyer for the DSD trade creditors group, which called for the appointment of a separate committee, slammed the Creditors Committee's assertion that the group is already "adequately represented" by the panel. In a court filing, Robert Hertzberg, Esq., at Pepper Hamilton LLP, in New York, says that Calip, although a DSD trade creditor, only holds a relatively small claim against the Debtors. "To say that Calip adequately represents the interests of the [group] or the majority of DSD trade creditors would be akin to saying that an individual holding a $150,000 note adequately represents the interests of large institutional noteholders on a committee," Mr. Hertzberg points out. Mr. Hertzberg has also criticized the Creditors Committee's argument that its composition does not matter since the claims of its members are all, in the end, general unsecured claims that will eventually be treated under a Chapter 11 plan. "The Creditors Committee cannot represent to the Court that there will be identical treatment for all unsecured creditors under a chapter 11 plan or that that is even what the unsecured creditors want," Mr. Hertzberg points out. About A&P Founded in 1859, Montvale, New Jersey-based Great Atlantic & Pacific (A&P) is a leading supermarket retailer, operating under a variety of well-known trade names, or "banners" across the mid- Atlantic and Northeastern United States. It operates 395 supermarkets, combination food and drug stores, beer, wine, and liquor stores, and limited assortment food stores in Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and the District of Columbia. "Banners" include A&P (101 stores), Food Basics (12 stores), Pathmark (128 stores), Super Fresh (57 stores), The Food Emporium (16 stores), and Waldbaum's (59 stores). A&P employs roughly 41,000 employees, including roughly 28,000 part-time employees. Roughly 95% of the workforce are covered by collective bargaining agreements. The Great Atlantic & Pacific Tea Company, Inc., and its affiliates filed petitions under Chapter 11 of the U.S. Bankruptcy Code on Dec. 12, 2010 (Bankr. S.D.N.Y. Case No. 10-24549) in White Plains. As of Sept. 11, 2010, the Debtors reported total assets of $2.5 billion and liabilities of $3.2 billion. Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C. Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. Lazard Freres & Co. LLC is the financial advisor. Huron Consulting Group is the management consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represent the Official Committee of Unsecured Creditors. Bankruptcy Creditors' Service, Inc., publishes ATLANTIC & PACIFIC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by A&P and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). GREAT ATLANTIC & PACIFIC: Addresses Store Closing Objections ------------------------------------------------------------ As reported in the March 7, 2011 edition of the Troubled Company Reporter, The Great Atlantic & Pacific Tea Company Inc.'s motion to implement procedures in connection with the closing of its 32 stores were met with opposition from landlords and various other groups. The landlords called for revision to the guidelines in connection with the closings of the Debtors' 32 stores, and objected to or sought clarifications on the proposed process for the potential rejection or assumption and assignment of their leases. On behalf of the Debtors, Ray Schrock, Esq., at Kirkland & Ellis LLP, in New York, said that the Debtors have so far generally succeeded in resolving the landlords' objections. To address the landlords' requests for revision of the guidelines, Mr. Schrock said the Debtors instructed Gordon Brothers and Great American to contact the landlords to negotiate specific modifications to the proposed store rationalization procedures. As of March 7, 2011, Gordon Brothers and Great American have reached agreements in principle with four landlords and will continue to negotiate with the one remaining landlord to resolve its objection prior to the hearing, according to Mr. Schrock. With respect to the objections to the proposed assumption and rejection procedures, Mr. Schrock said that the Debtors have incorporated a number of changes to the proposed order to resolve those objections. The changes include a proposed process for abandonment of personal property left at the premises; revisions to the conditions to the effective rejection date of any lease or sublease; clarifications with respect to demonstration of adequate assurance of future performance for leases the Debtors may seek to assign to third parties; and various individual reservations of rights. Greenburgh Shopping Center Associates and E. Windsor LLC have reportedly withdrawn their objections. Meanwhile, Sacco of Farmindale LLC has not yet responded as to whether the modifications to the proposed order resolved its objection. Greenburgh Shopping previously supported the objection filed by a group of landlords led by CASN 50th Street LLC. It complained that the Debtors' motion, which contains a list of stores to be closed down, included a Greenburgh New York store but it does not indicate whether it is the store for the premises which the Debtors leased from the landlord. About A&P Founded in 1859, Montvale, New Jersey-based Great Atlantic & Pacific (A&P) is a leading supermarket retailer, operating under a variety of well-known trade names, or "banners" across the mid- Atlantic and Northeastern United States. It operates 395 supermarkets, combination food and drug stores, beer, wine, and liquor stores, and limited assortment food stores in Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and the District of Columbia. "Banners" include A&P (101 stores), Food Basics (12 stores), Pathmark (128 stores), Super Fresh (57 stores), The Food Emporium (16 stores), and Waldbaum's (59 stores). A&P employs roughly 41,000 employees, including roughly 28,000 part-time employees. Roughly 95% of the workforce are covered by collective bargaining agreements. The Great Atlantic & Pacific Tea Company, Inc., and its affiliates filed petitions under Chapter 11 of the U.S. Bankruptcy Code on Dec. 12, 2010 (Bankr. S.D.N.Y. Case No. 10-24549) in White Plains. As of Sept. 11, 2010, the Debtors reported total assets of $2.5 billion and liabilities of $3.2 billion. Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C. Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. Lazard Freres & Co. LLC is the financial advisor. Huron Consulting Group is the management consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represent the Official Committee of Unsecured Creditors. Bankruptcy Creditors' Service, Inc., publishes ATLANTIC & PACIFIC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by A&P and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). HARRY & DAVID: Misses Payments on Two Note Issues ------------------------------------------------- Harry & David Operations Corp. failed to make interest payments due March 1 on $58.17 million in senior floating-rate notes and $140 million in senior fixed-rate notes, Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports, citing a report from Standard & Poor's. S&P said Harry & David "is seeking to restructure its balance sheet and, in our view, could file for protection under Chapter 11." According to the Bloomberg report, the senior 9% fixed-rate notes last traded March 7 at $36.75, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The floating-rate notes last traded at $38.75 on March 2, Trace reports. The company is controlled by Wasserstein & Co., according to Bloomberg data. Annual revenue is about $420 million, Moody's said. About Harry & David Holdings Harry & David Holdings, Inc. is a multi-channel specialty retailer and producer of branded premium gift-quality fruit and gourmet food products and gifts marketed under the Harry & David(R), Wolferman's(R) and Cushman's(R) brands. The Company has 122 stores across the country. The Company's balance sheet at Dec. 25, 2010, showed $304.3 million in total assets, $360.8 million in total liabilities, and a stockholders' deficit of $56.5 million. Harry & David has said financial results for the fiscal 2011 second quarter ended Dec. 25, 2010, were significantly below its expectations. As a result, Harry & David said it has retained Rothschild Inc. as financial advisor and Jones Day as legal advisor to explore recapitalization alternatives. The Company also said that, based on results of operations in the second quarter of this fiscal year, it will not satisfy financial covenants under its credit facility. "Based on our current working capital and anticipated working capital requirements, we will not be able to finance continuing operations including servicing its payment obligations under the Senior Notes, without securing new capital and restructuring our obligations. There can be no assurance that our efforts to obtain new capital and restructure our obligations will be successful; and therefore, there is substantial doubt as to our ability to continue as a going concern," the Company said in its latest quarterly report on Form 10-Q. * * * As reported in the Troubled Company Reporter on Jan. 27, 2011, Moody's Investors Service downgraded Harry & David's Probability of Default and Corporate Family ratings to 'Ca' from 'Caa3'. The ratings outlook is negative. The downgrade to 'Ca' reflects Moody's view that Harry & David will likely default on its debt obligations in the very near-term. The Company recently announced that will not be able to borrow on its revolver -- a critical source of operating liquidity -- as a result of covenant violations. Additionally, Harry & David is facing an estimated $7 million interest payment on March 1, 2011 on its senior unsecured notes, and a substantial scheduled debt maturity in March 2012 when the Company's $58 million senior unsecured notes mature. As of Dec. 25, 2010, Harry & David estimated that it had $66.9 million of cash and $57.9 million of accounts payable. In January 2011, Standard & Poor's Ratings Services lowered its corporate credit rating (unsolicited) on Harry & David Operations Corp. to 'CC' from 'CCC'. The outlook is negative. Standard & Poor's credit analyst Mariola Borysiak, said "We believe that Harry & David's current capital structure is unsustainable and that the Company will seek to restructure its balance sheet. In our opinion, this could lead to a selective default or a filing for protection under Chapter 11." HEADWATERS INC: S&P Affirms Corporate Credit Rating at 'B' ---------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B' corporate credit rating on South Jordan, Utah-based Headwaters Inc. The outlook is stable. At the same time S&P assigned a 'B+' issue-level rating (one notch above the corporate credit rating) to Headwaters Inc.'s proposed $400 million senior secured notes due 2019. The proceeds will be used to finance the tender and repayment of the company's $328.3 million of 11.375% senior secured notes due 2014. The recovery rating is '2', indicating S&P's expectation for substantial (70% to 90%) recovery for lenders in the event of a payment default. "The ratings on Headwaters Inc. reflect what S&P considers to be the company's highly leveraged financial risk profile," said Standard & Poor's credit analyst Megan Johnston. Pro forma for the transaction, adjusted debt (including adjustments for operating leases) will be approximately $625 million, an increase of about $45 million over Sept. 30, 2010, as the company is borrowing additional funds to pay the tender premium on existing notes and transaction expenses. Based on S&P's EBITDA forecast and the proposed $400 million notes issuance, total adjusted debt to EBITDA is likely to be in the 6.5x to 7x range for fiscal 2011, compared with leverage of 6.3x at the end of fiscal 2010. This is weaker than the 5x to 6x range that S&P expects for the 'B' rating; however, S&P believes that the company will use a portion of its cash ($70 million was on hand as of Dec. 31, 2010) to reduce debt over time, and that EBITDA will improve in fiscal 2012 if housing starts rebound. In the near-term, EBITDA coverage of interest should improve to around 2x from about 1.2x, given the probability of lower interest rates on the proposed notes. The ratings also reflect what S&P views as the company's weak business risk profile, considering it derives a substantial portion of sales from cyclical residential and non-residential end markets, partially offset by moderate product diversity and leading positions in the coal combustion products business. The stable outlook indicates S&P's expectations that demand for Headwaters' light building products has likely bottomed and cash interest costs should decline following the proposed refinancing. In addition, S&P believes that leverage should remain near current levels in fiscal 2011, but modestly strengthen in fiscal 2012 toward at least 5x, which S&P would consider to be an acceptable level for the rating. Furthermore, S&P expects liquidity, in terms of cash, availability under the ABL facility and cash flow from operations to remain adequate to service all near-term obligations, primarily consisting of $30 million of expected capital expenditures and about $40 million of cash interest expense. S&P could lower the ratings if residential construction activity or fly ash demand is worse than S&P expect, resulting in lower sales volumes that are not more than offset by cost reductions. S&P believes such weaker market conditions could result in significantly less EBITDA, leverage potentially exceeding 7x as of Sept. 30, 2011, and a decrease in funds from operations to total debt below 10%. Downward rating pressure could also occur if a decline in EBITDA caused the company to use cash to fund operating losses, resulting in a drop in liquidity materially below the current $120 million of combined cash on hand and revolver availability. A positive rating action is unlikely in the near-term given S&P's cautious outlook for the company's end markets over the next several quarters and the modest increase in debt following the proposed refinancing. However, S&P could consider a higher rating when a housing recovery clearly takes hold leading to a meaningful improvement in earnings and cash flow such that S&P expected Headwaters' leverage would decline to and be sustained between 4x and 5x. HOMEBANC MORTGAGE: Alston & Bird Settles Lawsuit Over Fees ---------------------------------------------------------- Bankruptcy Law360 reports that Alston & Bird LLP on Monday settled a lawsuit in Delaware brought by the Chapter 7 trustee for HomeBanc Mortgage Corp., parting with $100,000 to settle a fight over fees the lender paid in the lead-up to its bankruptcy filing. Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware approved the settlement, wrapping up the trustee's adversary proceeding to recover hundreds of thousands of dollars, according to Law360. About HomeBanc Headquartered in Atlanta, Georgia, HomeBanc Mortgage Corporation -- http://www.homebanc.com/-- was a mortgage banking company focused on originating primarily prime purchase money residential mortgage loans in the Southeast United States. HomeBanc Mortgage together with five affiliates filed for chapter 11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079 through 07-11084). Joel A. Waite, Esq., at Young, Conaway, Stargatt & Taylor was selected by the Debtors to represent them in these cases. The Official Committee of Unsecured Creditors selected the firm Otterbourg, Steindler, Houston and Rosen, P.C. as its counsel. The Debtors' financial condition as of June 30, 2007, showed total assets of $5.1 billion and total liabilities of $4.9 billion. HomeBanc filed a joint consolidated liquidating plan and accompanying disclosure statement, dated April 30, 2008, but failed to obtain confirmation of that plan. HomeBanc subsequently moved for conversion of its cases to Chapter 7, which was granted by the Court, effective Feb. 24, 2009. HOVNANIAN ENTERPRISES: Swings to $64-Mil. Net Loss in Jan. 31 Qtr. ------------------------------------------------------------------ Hovnanian Enterprises Inc filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission for the quarterly period ended Jan. 31, 2011. The Company reported a net loss of $64.14 million on $252.56 million of total revenue for the three months ended Jan. 31, 2011, compared with net income of $236.18 million on $319.64 million of total revenue for the same period during the prior year. The Company's balance sheet at Jan. 31, 2011 showed $1.67 billion in total assets, $2.07 billion in total liabilities and a $401.29 million total deficit. A full-text copy of the Quarterly Report is available for free at: http://ResearchArchives.com/t/s?7487 About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. * * * Hovnanian has an Issuer Default Rating of 'CCC' from Fitch Ratings. Fitch said in February 2011, "While Fitch expects somewhat better prospects for the housing industry this year, the Rating Outlook for HOV remains Negative given the challenges still facing the housing market, which are likely to meaningfully moderate the early stages of this recovery, and the company's still substantial debt position and high leverage." Hovnanian has a 'Caa1' corporate family rating from Moody's. Moody's said in January 2011 that the rating reflects Moody's expectation that Hovnanian's cash flow generation, which became negative in fiscal 2009 and turned positive but remained weak in fiscal 2010, will be followed by another year of cash burn in fiscal 2011, as the company ramps up its lot purchases without any significant offset from earnings. Hovnanian carries a 'CCC+' corporate credit rating from Standard & Poor's. HUTCHINSON TECH: To Cut Up to 40% of Workforce in Restructuring --------------------------------------------------------------- Hutchinson Technology Incorporated on Tuesday unveiled a manufacturing consolidation and restructuring plan intended to help the company achieve its goal of being the lowest cost manufacturer of suspension assemblies. The company will consolidate its Hutchinson, Minnesota components operations into its operations in Eau Claire, Wisconsin. The company's site in Hutchinson will continue to serve as its corporate headquarters and its center for research and development and other specialized operations. The company also is taking additional actions to resize the company, reduce costs and improve cash flow while keeping intact capabilities core to its competitive position and future growth. The consolidation and restructuring effort includes a 30% to 40% reduction of its current U.S. workforce, which totaled approximately 2,275 at the end of February. These actions are expected to take place over the next 12 months and to lower the company's costs by $45 million to $60 million on an annualized basis. Due to recent reductions in its customers' production plans, the company said that it now expects its fiscal 2011 second quarter suspension assembly shipments to decline as much as 5% from the fiscal 2011 first quarter. The company has accordingly reduced its production plan, resulting in lower capacity utilization. The combination of these factors is expected to result in a negative gross margin in the company's fiscal 2011 second quarter and a larger operating loss compared to the preceding quarter. After the first eight weeks of the fiscal 2011 second quarter, the company's cash and investments balance was $66.3 million compared with $101.2 million at the end of the fiscal 2011 first quarter. This decrease includes $31.2 million of cash used to complete the company's previously announced tender/exchange offer. The company estimates that its financial results over the next 12 months will include $8 million to $10 million of severance and other costs and $5 million to $10 million of asset impairment charges and accelerated depreciation related to the consolidation of operations. "The decision to consolidate our operations and reduce our workforce was a difficult one, and we understand the impact it will have on our employees, their families and the communities we live and work in," said Wayne M. Fortun, Hutchinson Technology's president and chief executive officer. "The consolidation of our Hutchinson components operations into Eau Claire is by no means a reflection on the employees or performance of the Hutchinson operation. This is a strong team of employees who have a variety of skills in manufacturing, technical and support functions. Their experience in producing quality products would be an asset to any employer, and we will work with the Minnesota Department of Employment and Economic Development in providing job search and other assistance to our employees during this difficult time." On Jan. 10, 2011, Hutchinson Technology commenced an offer to exchange or purchase up to $75,294,000 of its 3.25% Convertible Subordinated Notes due 2026. The purpose of the tender/exchange offer was to improve the Company's financial flexibility by extending the first repurchase (at the option of the holder) date of a portion of the Company's convertible indebtedness and to reduce the Company's overall indebtedness by retiring some of the Old Notes. Under the terms and subject to the conditions of the tender/exchange offer, for each validly tendered and accepted $1,000 principal amount of Old Notes, an eligible holder elected to receive: (1) $1,000 principal amount of a new series of 8.50% Convertible Senior Notes due 2026, provided that if the amount of Notes tendered exceeds $40 million in aggregate principal amount, the Company will accept the Old Notes tendered for exchange on a pro rata basis; (2) a cash payment of $850, provided that if the cash required to purchase all of the Old Notes tendered exceeds $30 million, the Company will accept the Old Notes tendered for purchase on a pro rata basis, and any Old Notes not accepted for purchase will be exchanged for New Notes, subject to the $40 million limit described above, as if such holders had elected to exchange their Old Notes for New Notes; or (3) a combination of the first two options, subject to the $40 million aggregate principal amount limit and the $30 million cash payment limit. The Company also would pay in cash all accrued and unpaid interest on Old Notes tendered by holders, and accepted by the Company, for exchange or purchase pursuant to the tender/exchange offer up to but excluding the settlement date. On Feb. 9, the company said that, as of the expiration of the offer, $187,284,000 aggregate principal amount of Old Notes had been tendered for purchase or exchange, representing roughly 95% of the principal amount of the outstanding Old Notes. In accordance with the terms of the tender/exchange offer, the company said it would make cash payments of $30,000,000 for the purchase of $35,294,000 aggregate principal amount of the Old Notes. Because the cash required to purchase the Old Notes tendered for cash exceeded the applicable limit, the amount of Old Notes accepted for purchase in the tender was to be prorated. The company also said it would issue $40,000,000 aggregate principal amount of a new series of 8.50% Convertible Senior Notes due 2026 in exchange for $40,000,000 aggregate principal amount of the Old Notes. Because the aggregate principal amount of the Old Notes tendered for exchange, including any Old Notes tendered for cash but not accepted for purchase for cash, exceeded the applicable limit, the Old Notes accepted for purchase in the exchange offer were to be prorated. A total of $122,206,000 principal amount of Old Notes remain outstanding after completion of the tender/exchange offer. As of Dec. 26, 2010, the company had $466.080 million in total assets, $38.332 million in total current liabilities, $190,000 in long-term debt, less current maturities, $177.158 million in convertible subordinated notes, $1.721 million in other long-term liabilities, and $248.679 million in shareholders' equity. About Hutchinson Technology Based in Hutchinson, Minn., Hutchinson Technology Incorporated (Nasdaq:HTCH) is a global technology manufacturer. The company's Disk Drive Components Division is a key worldwide supplier of suspension assemblies for disk drives. The company's BioMeasurement Division is focused on bringing new technologies and products to the market that provide information clinicians can use to improve the quality of health care and reduce costs. IA GLOBAL: Chief Executive's Contract Extended Until June --------------------------------------------------------- On Dec. 4, 2010, IA Global, Inc. entered into an Employment Agreement Extension with Brian Hoekstra, the Company's Chief Executive Officer, which extends his Employment Agreement dated Sept. 4, 2009 to June 4, 2011. About IA Global San Francisco, Calif.-based IA Global, Inc. (OTCQB: IAGI.OB) -- http://www.iaglobalinc.com/-- is a global services and outsourcing company focused on growing existing businesses and expansion through global mergers and acquisitions. The Company is utilizing its current partnerships to acquire growth businesses in target sectors and markets at discounted prices. The Company is actively engaging in discussions with businesses that would benefit from our business acumen and marketing expertise, knowledge of Asian Markets, and technology infrastructure. The Company's balance sheet at Sept. 30, 2010, showed $4.65 million in total assets, $3.30 million in total current liabilities, $2.79 million in long-term debt, and a stockholders' deficit of $1.45 million. As reported in the Troubled Company Reporter on July 20, 2010, Sherb & Co., LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has incurred significant operating losses, and has a working capital deficit as of March 31, 2010. ICOP DIGITAL: Nashville Police Seeks to Recover Reimbursement ------------------------------------------------------------- Brian Haas at The Tennessean reports that Metro Nashville, Tennessee police wants to recoup expenses from a bankrupt vendor of in-car video systems blamed for the deletion of hundreds of videos last summer. According to the report, Metro replaced the ICOP company's video systems in all of the city's police cars last fall, about the time the Kansas City company ceased operating. When it filed for bankruptcy protection, ICOP listed among its creditors more than 100 police departments, including Metro and Hendersonville. The Tennessean relates that while Metro is seeking reimbursement for its investigation into the lost videos, Hendersonville Police with nearly 60 cars outfitted with ICOP systems are hoping the hardware holds out for a while because ICOP is closed and not servicing their systems. "We haven't really felt that impact yet, but as soon as these things start breaking down, I'm certain we'll have some problems," The Tennessean quotes Hendersonville Police Chief Mickey Miller as saying. "We're waiting to see. It would be a major cost to switch." About ICOP Digital Founded in 2002, ICOP Digital Inc. sells surveillance equipment for law enforcement agencies. Lenexa, Kansas-based ICOP Digital filed for Chapter 11 protection in Kansas City (Bankr. D. Kan. Case No. 11-20140) on Jan. 21, 2011. In its Schedules of Assets and Liabilities, the Debtor disclosed assets of $1.67 million and debt of $2.74 million. The balance sheet as of Sept. 30 had assets on the books for $6.7 million and total liabilities of $4.3 million, according to Mr. Rochelle. Joanne B. Stutz, Esq., at Evans & Mullinix PA, in Shawnee, Kansas, represents the Debtor. INFUSION BRANDS: Agrees to Forfeit Ownership Interest in BYOC ------------------------------------------------------------- On Feb. 17, 2011, Infusion Brands International, Inc., entered into an Agreement to Settle and Release all Actions and Extinguish all Debts with Beyond Commerce, Inc. pursuant to which the Company will assign and forfeit its ownership, right and title to any warrants, options, notes or other ownership interest in BYOC in consideration for which BYOC will pay to the Company a cash payment of $75,000 and transfer 250,000 shares of Kaching Kaching, Inc.'s common stock, currently held by BYOC, to the Company. Pursuant to the terms of the Agreement, the parties have each agreed to release and forever discharge the other party from all past, present and future liability and obligations. Furthermore, Robert McNulty, Linlithgow Holdings, LLC and any affiliates thereof have also agreed to release and discharge the Company as well as the Company's subsidiaries, Vicis Capital Master Fund, Vicis Capital LLC, Zurvita, Inc. and all off their respective parents, subsidiaries, successors, assigns, employees, officers and directors from all past, present and future liability and obligations. About Infusion Brands Infusion Brands International, Inc. is a global consumer products company. Its wholly owned operating subsidiary, Infusion Brands, Inc. specializes in building and marketing profitable brands through international direct-to-consumer channels of distribution. On Dec. 16, 2010, as part of its quasi-reorganization in order to change its business model from that of an acquisition strategy to a singular operating model as a consumer products company which builds and markets brands internationally through direct-to- consumers channels of distribution, OmniReliant Holdings, Inc. entered into an agreement and plan of merger with Infusion Brands International, Inc., a Nevada corporation and the Company's wholly-owned subsidiary. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, the Company merged with and into Infusion Brands International, Inc., solely to effect a name change of the Company. OmniReliant's balance sheet as of Sept. 30, 2010, showed $10.9 million in total assets, $15.0 million in total liabilities, $8.6 million in redeemable preferred stock, and a stockholders' deficit of $12.6 million. As reported in the Troubled Company Reporter on October 18, 2010, Meeks International LLC, in Tampa, Florida, expressed substantial doubt about OmniReliant's ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted that the Company has incurred significant recurring losses from operations and is dependent on outside sources of financing for continuation of its operations. INNKEEPERS USA: Sale Plan Provides Benefits to Owner Apollo ----------------------------------------------------------- American Bankruptcy Institute reports that in voicing its support for Innkeepers USA Trust's proposed bankruptcy sale, current majority owner Apollo Investment Corp. unveiled details of benefits it will receive under that deal, including a release from a guarantee that a rival shareholders group values at $44.3 million. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and 91 affiliates filed for Chapter 11 on July 19, 2010 (Bankr. S.D.N.Y. Case No. 10-13800). Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in Washington, DC, serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. Attorneys at Morrison & Foerster, LLP, represent the Official Committee of Unsecured Creditors. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. IRH VINTAGE: Files New Plan to Beat Foreclosure ----------------------------------------------- IRH Vintage Park Partners L.P., doing business as Vintage Park Apartment Homes, and its debtor-affiliates filed a new proposed Chapter 11 plan of reorganization and explanatory disclosure statement before the U.S. Bankruptcy Court for the Southern District of Texas. In connection with the filing of the new Plan, the Debtors ask the Court to (i) conditionally approve the disclosure statement; (ii) authorize them to solicit votes for their plan; and (iii) set confirmation hearing no later than April 4, 2011. According to the Debtors, the Debtors have filed the Motion as they are subject to foreclosure on April 5, 2011, by Capmark Bank. Confirmation of Debtors' original plan was denied on Feb. 14, 2011 and the automatic stay was terminated to allow the secured lender to foreclose. However, in its oral ruling, the Court indicated that the Debtors were authorized to file and seek approval and confirmation of a new disclosure statement and plan before a foreclosure would occur on the Property. Capmark Bank is the Debtors' senior secured lender. As of the Debtors' bankruptcy filing, the bank was owed approximately $41.6 million, which is secured by a purchase money security interest on the Property. Wrightwood Capital Lender, LP, also provided mezzanine financing to certain of the Debtors and is owed approximately $2.6 million. The Debtors tell the Court that the disclosure statement and Chapter 11 plan they filed Feb. 27, 2011, address all of the issues raised by the Court in the previous confirmation hearing. The Debtors say conditional approval of the Disclosure Statement must be obtained immediately so that a confirmation hearing can be held prior to the April 5 foreclosure. If the Property is foreclosed, the Debtors have no ability to reorganize and confirmation is moot. Summary of the Plan The Plan provides for a settlement where 100% of the prepetition payments to affiliates in the total amount of $1,170,500 are returned to the estate by the equity holders for the benefit of creditors. In addition the equity holders are infusing new capital of $829,500 into the estate. When this amount is included with return of the prepetition payments to affiliates, the amount of new cash infused into the estate is a total of $2 million. In addition, the Plan provides for appointment of an independent accounting firm to handle all receipts, disbursements and financial reporting payable out of a reduced management fee of 2.5% of gross receipts. The Plan provides for the treatment of the Debtors' existing debts and payment to Creditors by the Reorganized Debtors as follows: 1) Allowed administrative claims and priority non-tax claims will be paid in cash in full; 2) Allowed ad valorem claims of taxing authorities will be paid in cash full when due; 3) Allowed non-tax priority claims, if any, will be paid in cash in full within 30 days of the Effective Date; 4) Allowed priority tax claims, if any, will be paid in full with 12 equal quarterly installments including interest at the statutory rate; 5) Allowed secured claim of Capmark Bank will be paid by the delivery of a promissory note from the Reorganized Debtors for $35,250,000, plus interest at the five year T-Bill rate of interest plus 3% to be paid over a five year period; 6) Allowed unsecured vendor claims of $2,500 or less and allowed senior secured claims of mechanics and materialmen will be receive the full amount of their respective allowed claim without interest; 7) Allowed unsecured deficiency claim of Capmark Bank and Allowed Unsecured Vendor Claims in Excess of $2500 shall each receive a single payment equal to 10% of their respective Allowed Claim amount plus an unsecured Promissory Note for the balance of their unsecured claims; 8) Wrightwood Capital Lender, LP, will have the option of i) receiving payment in full of the Wrightwood Note with an extended maturity date until 2016 and no payment to be made until Capmark Bank's Allowed Claims have been paid in full, or ii) collectively 49% of the New Partnership Interest in the Reorganized IRH and VP GP in full satisfaction of its Claim, and redeemable at the Reorganized Debtors option for $2.6 million; 9) Allowed unsecured claims of affiliates will be offset against debts owed to the Debtors and the balance, if any will be subordinated to the payment of all other classes; and 10) Interests of the existing equity holders will be extinguished and New Partnership Interests in the Reorganized Debtors and VP GP shall be issued to the Equity Holders in exchange for an $829,500 equity infusion plus an additional $1,170,500 representing the proceeds of the Related Party Settlement for a total of $2 million in new money infused into the Debtor. The equity holders will receive all New Partnership Interests, except for any interest obtained by Wrightwood, and retain the option to purchase any Equity Interests obtained by Wrightwood for $2.6 million. A full-text copy of the Disclosure Statement filed Feb. 27, 2011, is available for free at http://ResearchArchives.com/t/s?7485 A full-text copy of the Chapter 11 Plan Of Reorganization filed Feb. 27, 2011, is available for free at http://ResearchArchives.com/t/s?7486 About Vintage Park Partners IRH Vintage developed the Vintage Park Apartment Homes on Cutten Road in northwest Houston. The project, built in 2007, has 324 units situated on a 13-acre plot. The Capmark mortgage matured in July. The bank had installed a receiver. IRH Village filed for Chapter 11 bankruptcy protection (Bankr. S.D. Texas Case No. 10-37503) on Sept. 2, 2010. Edward L Rothberg, Esq., Melissa Anne Haselden, Esq., and T. Josh Judd, Esq., at Hoover Slovacek, LLP, represent the Debtor. The Debtor estimated assets and debts at $10 million to $50 million as of the petition date. ISE LIMITED: Assets Sold in Court-Approved Bankruptcy Sale ---------------------------------------------------------- ISE Limited disclosed that substantially all of the assets of its principal operating subsidiary, ISE Corporation, were recently sold to a group of purchasers unaffiliated with and unrelated to ISE or any of its directors, officers or stockholders, following a public auction and competitive bidding process overseen by the bankruptcy court presiding over ISE Corporation's previously- disclosed bankruptcy case. The aggregate gross proceeds received by ISE Corporation pursuant to the winning auction bid were US$3,721,000. The bankruptcy court has approved the sale. Proceeds of the sale will be distributed pursuant to the priority scheme of the bankruptcy laws, subject to any further orders of the bankruptcy court. Generally, proceeds are applied first against bankruptcy administrative and priority expenses and then against the outstanding general unsecured claims of creditors as dictated by the United States Bankruptcy Code. At this time, ISE does not believe that any proceeds from the sale transaction or otherwise will be available thereafter for distribution to the stockholders of ISE Limited. As a result of its financial position, ISE does not have the available resources or capacity to have its auditors conduct a review engagement of its financial statements or to prepare management-prepared financial statements, nor does it believe that management-prepared financial statements would be appropriate in the circumstances. Accordingly, ISE will be unable to meet its periodic filing obligations under applicable securities regulatory authority rules for the foreseeable future. Directors Gerd-Dieter A. Goette, Michael E. Sears and Richard J. Sander have resigned from the board of directors of ISE since the consummation of the above-described sale transaction. Following the distribution of all available proceeds against bankruptcy administrative and priority expenses and the outstanding claims of creditors as dictated by the United States Bankruptcy Code, ISE intends to commence the formal dissolution of ISE Limited and ISE Corporation. About ISE Limited ISE Limited --- http://www.isecorp.com/-- is a developer, manufacturer and distributor of Energy Storage Systems (ES Systems) and Heavy Duty Hybrid-Electric Drive Systems (Hybrid Systems). Established in 1995, ISE is headquartered in San Diego, California. ISE's history of innovation and technological leadership has resulted in the design and development of systems and components that deliver superior operating performance. ISE Ltd.'s operating subsidiary, ISE Corporation, filed a voluntary petition to reorganize its business under Chapter 11 on August 10 (Bankr. S.D. Calif. Case No. 10-14198). Marc J. Winthrop, Esq., at Winthrop Couchot Professional Corp., serves as counsel to the Debtor. The Debtor estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. JEFFREY PROSSER: Court Recognizes Spouse's First Refusal Rights --------------------------------------------------------------- James P. Carroll, as Chapter 7 Trustee of the Estate of Jeffrey J. Prosser, seeks to sell property at 252 El Bravo Way, Palm Beach, Florida, pursuant to a Contract of Sale. PB Purchase LLC, was declared the successful bidder at the auction held March 1, 2011. The amount of the successful bid is $6,910,000. Of the proceeds, $5,275,000 will be used to pay debts owed to Bank of America upon closing of the sale. BofA consented to a $500,000 carve out, reducing its distribution from $5,775,000. The Trustee also seeks an order directing the Prossers to vacate the Palm Beach Property. Dawn Prosser, the non-debtor spouse of Jeffrey Prosser, was provided until March 8, 2011, to indicate whether she will make her election to exercise her right of first refusal. According to Bankruptcy Judge Judith K. Fitzgerald, the Court cannot enter a final order confirming the sale and will not be able to do so until March 9, 2011. The Palm Beach County tax authority or the Chapter 7 Trustee had through March 4, 2011, to file a notice that the taxing authority consents to the sale, absent which, no sale confirmation order would be entered. If Dawn Prosser reserves her right of first refusal and the sale to her is confirmed, closing must occur on or before April 4, 2011, at 5:00 P.M. Prevailing Eastern Time. If closing does not occur by the deadline, the successful bidder, PB Purchase, LLC, must close on the sale at the amount of its winning bid, $6,910,0000, on or before April 30, 2011, at 5:00 P.M. Prevailing Eastern Time. If closing does not occur by the deadline for the successful bidder, then the second highest bidder, Richard G. Robb, must close on the sale at the amount of his highest bid, $6,900,000, on or before May 30, 2011, at 5:00 P.M. Prevailing Eastern Time. The Chapter 7 Trustee commenced an adversary proceeding to pursue the sale of the property. The case is James P. Carroll, as Chapter 7 Trustee of the Estate of Jeffrey J. Prosser, Plaintiff, v. Dawn Prosser and Bank of America, N.A., Defendants. Jeffrey Prosser, Intervening Defendant. Adv. Pro. No. 11-3001 (D. V.I.). A copy of Judge Fitzgerald's March 4, 2011 Memorandum Opinion is available at http://is.gd/tApctEfrom Leagle.com. JNL FUNDING: Exclusive Plan Filing Period Extended Until April 1 ---------------------------------------------------------------- Judge Alan S. Trust has extended the exclusive periods for JNL Funding Corp. and Joseph G. Forgione to file plans of reorganization and to secure acceptances on the plans. The exclusive plan filing periods are extended through and including April 1, 2011, for JNL and April 27, 2011, for Mr. Forgione, and the time to confirm their respective plans are extended through and including June 30, 2011, for JNL and July 26, 2011, for Mr. Forgione. Secured lender Textron Financial Corp. objected. About JNL Funding JNL Funding Corp. is a specialized real estate finance company which originates and invests in a diversified portfolio of first mortgage assets in the residential real estate market. JNL is a "hard money" lender investing primarily in real estate related first mortgages and construction loans, making loans secured by first priority mortgages primarily on single family and multi- family residential real properties. JNL's loans typically are made to real estate investors seeking to purchase and renovate properties for investment purposes. Most of JNL's loans are made to repeat customers who have multiple loans from JNL at any given time. JNL's recent loans typically bear interest at the rate of 14% per annum, and JNL typically receives four (4.0) percentage points for originating the loan. JNL Funding filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 10-73724) on May 14, 2010. Pryor & Mandelup, LLP, assists the Debtor in its restructuring effort. The Company estimated its assets and debts at $50 million to $100 million as of the Chapter 11 filing. JNL also disclosed that its combined general unsecured debts total $19,509,090, for total debts of $50,677,195. On June 8, 2010, the United States Trustee appointed an Official Committee of Unsecured Creditors. The Court approved the Joint Administration of JNL's case and Joseph Forgione's case (Bankr. E.D.N.Y. Case No. 10-73726) on October 27, 2010. Mr. Forgione filed for bankruptcy on May 14, 2010. On October 28, 2010, the U.S. Trustee appointed a creditors committee in the jointly administered cases. Counsel for the Committee is: Richard G. Gertler, Esq. THALER & GERTLER LLP 90 Merrick Avenue, Suite 400 East Meadow, NY 11554 Telephone: 516-228-3553 Counsel for secured lender Textron Financial Corp.: Steven E. Fox, Esq. EPSTEIN BECKER & GREEN P.C. 250 Park Avenue, 11th Flr New York, NY 10177-121 Telephone: 212-351-3733 Facsimile: 212-878-8688 E-mail: SFox@ebglaw.com JNL FUNDING: March 30 Status Hearing Set on Bid to Oust Management ------------------------------------------------------------------ Judge Alan S. Trust will hold a status conference on March 30, at 9:30 a.m. regarding the emergency motion by Tracy Hope Davis, Esq., the United States Trustee for Region 2, seeking an order appointing a Chapter 11 trustee, or in the alternative, an order converting the bankruptcy case of JNL Funding Corp. to case under Chapter 7 of the Bankruptcy Code. Any response to the U.S. Trustee's request are due March 15. The U.S. Trustee contends that the report of the examiner appointed in the case provides an ample factual basis from which to conclude that JNL's current management engaged in fraudulent, dishonest conduct, and incompetence, or gross mismanagement with respect to the affairs of a Debtor. Not only does the Examiner's Report show that JNL manipulated the borrowing base to remain within formula, in part, through a process known as "re-loading" by making new loans to what may be, otherwise ineligible affiliates, but JNL's appraisal practice, which was the lynch pin of its lending operations and necessary to evaluate the integrity of financials, was compromised. Similarly, the U.S. Trustee said, it is in the best interest of the Debtor for a Chapter 11 trustee to be appointed so that a trustee can explore whether to bring avoidance actions against insiders, affiliates and others. The Examiner found that $25 million was lent to affiliated entities, that noteholders received $10.5 million, $5.5 million from the lending facility and $3 million from new investors, suggesting that at least with respect to the payments to the Noteholders, that JNL could have been operating a Ponzi-scheme. The Debtor's principal, Joseph Forgione, also has filed a voluntary Chapter 11 petition. Mr. Forgione has continued in possession of his assets under sections 1107 and 1108 of the Bankruptcy Code. Upon review of the schedules filed in his individual case, Mr. Forgione owes roughly $23 million to various noteholders. When the schedules of the individual case are compared with those of the Debtor's, it appears that JNL has scheduled substantially the same noteholders as creditors. According to the U.S. Trustee, with millions of dollars transferred to affiliates and Noteholders, neither the Committee, nor the Debtor's current management is likely to investigate and bring causes of action against insiders and others to recover these huge sums of money. The return of even a portion of these monies would certainly be in the best interests of creditors. In short, these facts demonstrate cause for the appointment of a Chapter 11 trustee under Bankruptcy Code sections 1104(a)(1) and (a)(2). Finally, should the Court not be inclined to appoint a chapter 11 trustee, the U.S. Trustee contends that the case should be converted to a chapter 7 case. As set forth in the Examiner's Report, the Debtor's outstanding loan portfolio is largely in default. Since the Filing Date, the Debtor has been unable to resurrect its business. In the event the Court does not direct that a chapter 11 trustee be appointed, these same facts provide cause for the conversion of the cases to Chapter 7 under section 1112(b). About JNL Funding JNL Funding Corp. is a specialized real estate finance company which originates and invests in a diversified portfolio of first mortgage assets in the residential real estate market. JNL is a "hard money" lender investing primarily in real estate related first mortgages and construction loans, making loans secured by first priority mortgages primarily on single family and multi- family residential real properties. JNL's loans typically are made to real estate investors seeking to purchase and renovate properties for investment purposes. Most of JNL's loans are made to repeat customers who have multiple loans from JNL at any given time. JNL's recent loans typically bear interest at the rate of 14% per annum, and JNL typically receives four (4.0) percentage points for originating the loan. JNL Funding filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 10-73724) on May 14, 2010. Pryor & Mandelup, LLP, assists the Debtor in its restructuring effort. The Company estimated its assets and debts at $50 million to $100 million as of the Chapter 11 filing. JNL also disclosed that its combined general unsecured debts total $19,509,090, for total debts of $50,677,195. On June 8, 2010, the United States Trustee appointed an Official Committee of Unsecured Creditors. The Court approved the Joint Administration of JNL's case and Joseph Forgione's case (Bankr. E.D.N.Y. Case No. 10-73726) on October 27, 2010. Mr. Forgione filed for bankruptcy on May 14, 2010. On October 28, 2010, the U.S. Trustee appointed a creditors committee in the jointly administered cases. Counsel for the Committee is: Richard G. Gertler, Esq. THALER & GERTLER LLP 90 Merrick Avenue, Suite 400 East Meadow, NY 11554 Telephone: 516-228-3553 Counsel for secured lender Textron Financial Corp.: Steven E. Fox, Esq. EPSTEIN BECKER & GREEN P.C. 250 Park Avenue, 11th Flr New York, NY 10177-121 Telephone: 212-351-3733 Facsimile: 212-878-8688 E-mail: SFox@ebglaw.com JOHNSON BROADCASTING: Court Denies Bid to Dismiss Case ------------------------------------------------------ Judge Jeff Bohm denied a bid by creditor Texas Comptroller of Public Accounts to dismiss the Chapter 11 cases of Johnson Broadcasting, Inc., and Johnson Broadcasting of Dallas, Inc. In its motion, the Comptroller alleged that the Debtors are delinquent in filing postpetition franchise and sales and use tax returns with the Comptroller and making payment on postpetition franchise taxes and sales and use taxes due the Comptroller. The Comptroller also contended that the Debtors are operating in violation of Local Bankruptcy Rule 4002-1 and 28 U.S.C. Sections 959(b) and 960 which require debtors-in-possession to manage and operate property of the estate according to the requirements of state law in the same manner the owner or possessor of such property would be bound to do outside of bankruptcy. On March 18, 2009, the Comptroller timely filed a first amended priority claim in the Johnson Broadcasting Inc. case for 2005 through 2008 sales and use taxes for $136,179.40. On Jan. 1, 2010, the Comptroller timely filed a first amended priority claim in the JBI case for 2008 franchise taxes for $44,019.72. On Feb. 10, 2011, the Comptroller timely filed a first amended administrative expense claim in the JBI case for unpaid postpetition 2009 through 2010 sales and use taxes for $12,604.54. Also on Feb. 10, 2011, the Comptroller timely filed a third amended administrative expense claim in the JBI case for unpaid postpetition 2009 through 2011 franchise taxes for $189,893.72. On Jan. 11, 2010, the Comptroller timely filed a first amended priority claim in the Johnson Broadcasting of Dallas, Inc. case for 2008 franchise taxes for $39,764.58. On Feb. 10, 2011, the Comptroller timely filed a first amended administrative expense claim in the JBI-Dallas case for unpaid postpetition 2010 through 2011 franchise taxes for $14,877.50. Attorneys for the Texas Comptroller of Public Accounts: William A. Frazell, Esq. Assistant Attorney General Bankruptcy & Collections Division P.O. Box 12548 Austin, TX 78711-2548 Telephone: (512) 475-4862 E-mail: bill.frazell@oag.state.tx.us About Johnson Broadcasting Based in Houston, Texas, Johnson Broadcasting Inc. and Johnson Broadcasting of Dallas Inc. own and operate television stations in Texas. Closely held JBI and JB-Dallas filed separate petitions for Chapter 11 relief on Oct. 13, 2008 (Bankr. S.D. Texas Case No. 08-36583 and 08-36585, respectively). JBI sought Chapter 11 protection in October 2008 when the lessor of equipment sought to foreclose. The controlling shareholder, Douglas R. Johnson, also filed in Chapter 11 (Bankr. S.D. Tex. Case No. 08-35584). John James Sparacino, Esq., Joseph Peak Rovira, Esq., and Timothy Alvin Davidson, II, Esq., at Andrews and Kurth, serve as counsel to the Debtors. In its schedules, JBI disclosed total assets of $7,759,501 and total debts of $14,232,988. JOHNSON BROADCASTING: Confirmation Hearing Set for April 11 ----------------------------------------------------------- Johnson Broadcasting, Inc., and Johnson Broadcasting of Dallas, Inc., will return to the Bankruptcy Court on April 11, 2011, at 1:30 p.m. to seek confirmation of their First Amended Joint Plan of Liquidation. Judge Jeff Bohm approved the Debtors' Second Amended Disclosure Statement explaining their First Amended Plan on Feb. 17. Parties have until March 28 to vote on the Plan. As reported by the Troubled Company Reporter, according to the Disclosure Statement, the Plan provides for the waterfall distribution of the sale proceeds from the sale of assets of JBI and JBD. The Debtors sold their Station Assets to Una Vez Mas Houston LLC for $14,825,000. The deal was closed on Dec. 29, 2010. The Debtors reserve their right to take any necessary actions, seeking to pay in full secured claims attaching to the property immediately after the closing of the sale without the necessity of confirmation of the Plan or the conclusion of any other pending or proposed sales of the Debtors' assets. Each holder of an allowed general unsecured claim, expected to total $3,500,000 for JBI and $8,327,935 for JBD, will receive its pro rate share up to the allowed amount of the claimant's allowed claim. Unsecureds are impaired under the Plan. All distributions under the Plan will be made by the Plan agent. A copy of the Second Amended Disclosure Statement is available for free at http://bankrupt.com/misc/JBI2ndAmendedDS.pdf About Johnson Broadcasting Based in Houston, Texas, Johnson Broadcasting Inc. and Johnson Broadcasting of Dallas Inc. own and operate television stations in Texas. Closely held JBI and JB-Dallas filed separate petitions for Chapter 11 relief on Oct. 13, 2008 (Bankr. S.D. Texas Case No. 08-36583 and 08-36585, respectively). JBI sought Chapter 11 protection in October 2008 when the lessor of equipment sought to foreclose. The controlling shareholder, Douglas R. Johnson, also filed in Chapter 11 (Bankr. S.D. Tex. Case No. 08-35584). John James Sparacino, Esq., Joseph Peak Rovira, Esq., and Timothy Alvin Davidson, II, Esq., at Andrews and Kurth, serve as counsel to the Debtors. In its schedules, JBI disclosed total assets of $7,759,501 and total debts of $14,232,988. JOHNSON BROADCASTING: Taps Paul Cashiola as Accountant ------------------------------------------------------ Johnson Broadcasting, Inc., and Johnson Broadcasting of Dallas, Inc., seek permission from the Bankruptcy Court to employ Paul J. Cashiola, CPA, as the Debtors' accountant. Cashiola will replace Edwards, Ellis, Stanley, Koshiw, Armstrong, Bowren & Co., P.C., the Debtors' current tax accountants. Cashiola will prepare and file the Debtors' US income tax returns for an S Corporation for the years 2009 and 2010, and Texas franchise tax returns for the Debtors for the years 2009 and 2010. Cashiola will also provide general advice on accounting and tax issues. Cashiola will bill on an hourly basis. The billing rates include $200 per hour for tax preparations, IRS representation, and special projects performed by CPA; $120 per hour for tax preparation, IRS representation, and special projects performed by an accountant; and $60 per hour for bookkeeping, payroll and clerical tasks performed by a bookkeeper. Cashiola doesn't have a prepetition claim against the Debtor. About Johnson Broadcasting Based in Houston, Texas, Johnson Broadcasting Inc. and Johnson Broadcasting of Dallas Inc. own and operate television stations in Texas. Closely held JBI and JB-Dallas filed separate petitions for Chapter 11 relief on Oct. 13, 2008 (Bankr. S.D. Texas Case No. 08-36583 and 08-36585, respectively). JBI sought Chapter 11 protection in October 2008 when the lessor of equipment sought to foreclose. The controlling shareholder, Douglas R. Johnson, also filed in Chapter 11 (Bankr. S.D. Tex. Case No. 08-35584). John James Sparacino, Esq., Joseph Peak Rovira, Esq., and Timothy Alvin Davidson, II, Esq., at Andrews and Kurth, serve as counsel to the Debtors. In its schedules, JBI disclosed total assets of $7,759,501 and total debts of $14,232,988. KAISER ALUMINUM: Court Junks PI Trusts Suits vs. Insurers --------------------------------------------------------- Judge Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware dismissed in their entirety the adversary complaints brought by the Asbestos Personal Injury Trusts in the cases of Owens Corning, Kaiser Aluminum Corp., and USG Corp. that sought a preliminary injunction against the continuation of certain discovery from the Trusts in excess of that permitted by the bankruptcy plans and trust distribution procedures in those cases. The Adversary Proceedings were commenced on Oct. 27, 2010, seeking to resolve in one jurisdiction and in one court the proper scope of discovery of the claimant information and data that the Defendants have sought from the Trusts, and the protections that the Trusts may properly and consistently invoke in the event of future, similar discovery efforts. In the adversary proceeding, the Trusts asked Judge Fitzgerald to enter a preliminary injunction barring the continuation of discovery against the Trusts and all discovery of a similar nature until the Court has ruled on the issues raised in the Trusts' Adversary Complaint. The Plaintiffs' Motion for Preliminary Injunction is denied, Judge Fitzgerald held. Upon close examination, Judge Fitzgerald found that the U.S. Bankruptcy Court for the District of Delaware does not have subject matter jurisdiction over the matters before it. The discovery dispute raised by the Plaintiffs in the Adversary Complaints does not involve the interpretation or effectuation of the Plan, Judge Fitzgerald noted. Moreover, the subpoenas served on the Plaintiffs were issued in other jurisdictions in matters that are not before the Delaware Court, she noted. The issuing courts are the appropriate fora to determine the scope of the subpoenas and the courts in which actions are pending are best suited to resolve any specific discovery disputes, including consideration of confidentiality concerns any party to the litigation may raise, Judge Fitzgerald opined. "[The Court] recognizes the desire of the Trusts to have a uniformly applicable principle regarding their obligations to comply with discovery requests, some of which seem to far exceed reasonable requests calculated to lead to relevant and admissible evidence in a lawsuit," Judge Fitzgerald said. "Nonetheless, this court has no jurisdiction to create a 'one size fits all' peremptory rule of discovery." Accordingly, Judge Fitzgerald directed the Clerk of Court to close each of the Adversary Complaints in the cases of Owens Corning, Kaiser Aluminum and USG. With respect to Plaintiff ACandS Trust, a scheduling conference regarding the issue on whether the ACandS Trust Distribution Procedures is a valid and enforceable forum selection clause, or is otherwise enforceable, will be held on March 28, 2011, Judge Fitzgerald ruled. A copy of the memorandum opinion dated February 22, 2011, reflecting Judge Fitzgerald's ruling is available for free at: http://ResearchArchives.com/t/s?749a A subsequent order correcting the February 22 Memo Opinion was entered to note that the Delaware Court recognizes that the Owens Corning and USG Trust Distribution Procedures confirmed in 2006 did in fact include language requiring certain subpoenas to be issued by the Delaware Court. Judge Fitzgerald clarified that the Court's error does not change the rationale of the Memo Opinion with respect to any party. A copy of the Corrective Order dated February 23, 2011, is available for free at: http://bankrupt.com/misc/Owens_CrrctiveOrd_TrustAdvProcDismsl.pdf About Kaiser Aluminum Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- produces fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. The company filed for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. Lazard Freres & Co. serves as the Debtors' financial advisor. Lisa G. Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P. Bowden, Esq., at Ashby & Geddes represent the Debtors' Official Committee of Unsecured Creditors. The Debtors' Chapter 11 Plan became effective on July 6, 2006, and the company emerged from Chapter 11. On June 30, 2004, the Debtors disclosed US$1.619 billion in assets and US$3.396 billion in debts. On Dec. 20, 2005, the Bankruptcy Court confirmed the Third Amended Liquidation Plans of Alpart Jamaica, Kaiser Jamaica, Kaiser Australia & Kaiser Finance. On Dec. 22, 2005, these plans were declared effective. On Feb. 6, 2006, the Bankruptcy Court confirmed the Amended Reorganization plan filed by the Remaining Debtors. On May 11, 2006, the District Court affirmed the confirmation order on these plans. The Remaining Debtors emerged from chapter 11 on July 6, 2006. (Kaiser Bankruptcy News, Issue No. 114; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) KAISER ALUMINUM: Garlock Wants to Intervene in 12 Bankruptcy Cases ------------------------------------------------------------------ Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About Kaiser Aluminum Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- produces fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. The company filed for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. Lazard Freres & Co. serves as the Debtors' financial advisor. Lisa G. Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P. Bowden, Esq., at Ashby & Geddes represent the Debtors' Official Committee of Unsecured Creditors. The Debtors' Chapter 11 Plan became effective on July 6, 2006, and the company emerged from Chapter 11. On June 30, 2004, the Debtors disclosed US$1.619 billion in assets and US$3.396 billion in debts. On Dec. 20, 2005, the Bankruptcy Court confirmed the Third Amended Liquidation Plans of Alpart Jamaica, Kaiser Jamaica, Kaiser Australia & Kaiser Finance. On Dec. 22, 2005, these plans were declared effective. On Feb. 6, 2006, the Bankruptcy Court confirmed the Amended Reorganization plan filed by the Remaining Debtors. On May 11, 2006, the District Court affirmed the confirmation order on these plans. The Remaining Debtors emerged from chapter 11 on July 6, 2006. (Kaiser Bankruptcy News, Issue No. 114; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) LAS VEGAS RAILWAY: J. Zilliken Resigns as CFO, Assumes COO Role --------------------------------------------------------------- On Feb. 28, 2011, John M. Zilliken has resigned his position as Chief Financial Officer to assume the new role within the Company as Executive Vice President and Chief Operating Officer. On Feb. 28, 2011, Gregory P. West was offered and accepted the position of Chief Financial Officer. About Las Vegas Railway Las Vegas, Nev.-based Las Vegas Railway Express, Inc., formerly Liberty Capital Asset Management, Inc. was formed March 9, 2007, as Corporate Outfitters, a development stage company. On Nov. 3, 2008, with a share exchange, asset purchase agreement the Company acquired Liberty Capital Asset Management, a Nevada corporation, formed in July of 2008 as a holding company for all the assets of CD Banc LLC in contemplation of the company going public via a reverse merger into a publicly trading corporation. CD Banc LLC was formed in 2003 as a Nevada limited liability corporation with the purpose of acquiring real estate assets and holding them for long-term appreciation. The Company acquired Las Vegas Railway Express (LVRE) in January 2010 and began its operations as the primary business of the Company. The Company subsequently changed its name from Las Vegas Railway Express, to Las Vegas Railway Express, Inc., and is traded under the symbol XTRN.OB. The Company's balance sheet at June 30, 2010, showed $1.32 million in total assets, $2.09 million in total liabilities, and a stockholders' deficit of $770,059. Hamilton, PC, in Denver, Colo, expressed substantial doubt about the Company's ability to continue as a going concern, following its results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has suffered recurring losses from operations. For the quarter ended, June 30, 2010, there were no revenues associated with the railcar operations. The Company has an accumulative deficit of $8.49 million through June 30, 2010. Although a substantial portion of the Company's cumulative net loss is attributable to discontinued operations, management believes that it will need additional equity or debt financing to be able to sustain profitability. LECG CORP: Bank of Montreal Again Give Limited Waivers ------------------------------------------------------ LECG Corporation and certain of its direct and indirect subsidiaries are parties to a Credit Agreement dated as of May 15, 2007, as amended, with the Bank of Montreal and the syndicate bank members under the Credit Agreement. On Feb. 28, 2011, the parties to the Credit Agreement entered into the Tenth Amendment and Limited Duration Waiver to the Credit Agreement. Under the Tenth Amendment: * The Administrative Agent and the Lenders, for a limited period and subject to certain conditions, waived the LECG Entities' failure to be in compliance with certain representations and warranties and financial and non- financial covenants under the facility. * The LECG Entities have agreed to continue to pursue the sale of that portion of their assets and business lines as will raise the funds needed to repay the LECG Entities' obligations to the Lenders by the end of March 2011. * The LECG Entities must operate their business in accordance with an agreed upon cash budget through the end of March 2011. * The proceeds of any sale transaction, which are subject to prior approval of the Lenders, must be deposited into a cash collateral account. The Lenders have agreed to allow the LECG Entities to use a portion of the net proceeds from the initial business unit sale provided the LECG Entities are in compliance with the terms of the Tenth Amendment. * The LECG Entities are required to pay the Lenders and the Administrative Agent a fee of $1,000,000 as consideration for the limited duration waiver. The fee is reduced to $500,000 if, among other things, the obligations of the LECG Entities under the Credit Agreement are repaid by the end of March 2011. A full-text copy of the Tenth Amendment is available for free at: http://ResearchArchives.com/t/s?7489 About LECG LECG is a global litigation; economics; consulting and business advisory; and governance, assurance, and tax expert services firm with approximately 1100 employees in offices around the world. The Limited Duration Waiver is the fourth the Company has received since November 15, 2010. The Term Credit Facility matures on March 31, 2011 and approximately $27.8 million is outstanding under the facility. The Company said it does not have sufficient resources to repay amounts outstanding under the facility at this time. MA BB: Section 341(a) Meeting Scheduled for April 1 --------------------------------------------------- The U.S. Trustee for Region 6 will convene a meeting of MA BB Owen LP's creditors on April 1, 2011, at 11:30 a.m. The meeting will be held at 2000 E. Spring Creek Parkway, Plano, TX 75074. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Dallas, Texas-based MA BB Owen LP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Case No. 11-40645) on Feb. 28, 2011. Joyce W. Lindauer, Esq., at Joyce Lindauer, Attorney At Law, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million. MA BB: Taps Joyce W. Lindauer as Bankruptcy Counsel -------------------------------------------------------- MA BB Owen, LP, asks for authorization from the U.S. Bankruptcy Court for the Eastern District of Texas to employ Joyce W. Lindauer as bankruptcy counsel. Ms. Lindauer will represent the Debtor in its bankruptcy case. Ms. Lindauer will be paid based on the hourly rates of her professionals: Joyce W. Lindauer $295 Jonathan Gitlin, Associate Attorney $150 Paralegals & Legal Assistants $50-$75 Ms. Lindauer is a solo practitioner practicing primarily bankruptcy law in Dallas, Texas. Mr. Gitlin is an associate attorney working for Ms. Lindauer. To the best of the Debtor's knowledge, Ms. Lindauer is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code. Dallas, Texas-based MA BB Owen LP filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. E.D. Tex. Case No. 11-40645). The Debtor estimated its assets at $10 million to $50 million. MAGIC BRANDS: Deel Creditors to Sue for Equitable Subordination --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the former owner of the Fuddruckers restaurant chain is allowing the creditors' committee to file two lawsuits seeking to recharacterize claims as equity or subordinate the claims to other creditors under the notion of equitable subordination. Brosna International LLC filed three claims for $28.9 million. Michael Cannon filed two claims seeking over $5 million in the aggregate. According to the report, under the Company's liquidating Chapter 11 plan, the creditors' committee would pursue lawsuits after the plan is confirmed. The Company said it therefore made sense to allow the committee to file suits now. The agreement to allow prosecution of the suits by the committee will come to the bankruptcy judge for approval of March 21. About Magic Brands Headquartered in Austin, Texas, Magic Brands, LLC -- http://www.fuddruckers.com/-- operated 62 Fuddruckers locations in 11 states and 3 Koo Koo Roo restaurants in California. Magic Brands and its operating units filed for Chapter 11 protection on April 21, 2010 (Bankr. D. Del. Lead Case No. 10-11310). It estimated assets of up to $10 million and debts at $10 million to $50 million in its Chapter 11 petition. Affiliate Fuddruckers, Inc., also filed, estimating assets and debts at $50 million to $100 million. FocalPoint Securities, LLC, serves as investment banker to Magic Brands, and Goulston & Storrs serves as lead bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors has tapped Kelley Drye & Warren LLP as counsel and Klehr Harrison Harvey Branzburg LLP as co-counsel. Magic Brands in July 2010 closed the sale of the Fuddruckers stores and franchise business to restaurant operator Luby's Inc. for $63.5 million. Magic Brands, which has changed its name to Deel LLC following the Luby's sale, filed a liquidating Chapter 11 plan on Jan. 18. Bill Rochelle, the bankruptcy columnist for Bloomberg News, said the Disclosure Statement explaining the Plan indicated that unsecured creditors should have a "meaningful recovery." Mr. Rochelle said there are blanks in the disclosure statement where creditors later will be told the expected percentage of their recovery. The Bankruptcy Court will convene a hearing on March 21, 2011, to consider adequacy of disclosure statement explaining the Plan of Liquidation. MEDICAL EDUCATION: Bankruptcy Court Affirms Remand Order -------------------------------------------------------- Brian K. Tester, Bankruptcy Judge denied the defendants' motion for reconsideration of the order remanding the lawsuit, Medical Educational and Health Services, Inc., v. Sistemas Integrados De Salud Del Noroeste & Mayaguez Medical Center-Dr. Ramon Emeterio Betances, Inc., Adv. Pro. No. 10-202 (Bankr. D. P.R.), to the Commonwealth of Puerto Rico's Court of First Instance, Superior Court of Mayaguez. The Plaintiff opposed. A copy of the Court's March 4, 2011 Opinion and Order is available at http://is.gd/R6ke4gfrom Leagle.com. The Court entered an order on Feb. 10, 2011, remanding the cause of action, which was reported in the Troubled Company Reporter on Feb. 18. About Mayaguez Advanced Radiotherapy Center Based in Mayaguez, Puerto Rico, Mayaguez Advanced Radiotherapy Center filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 09-04540) on June 2, 2009. Fausto D. Godreau Zayas, Esq. -- dgodreau@LBRGlaw.com -- at Latimer, Biaggi, Rachid & Godreau, LLP, serves as Debtor's counsel. The Debtor disclosed US$3,810,510 in total assets and US$1,357,473 in total debts in its schedules attached to the petition. About Medical Educational and Health Services Headquartered in Mayaguez, Puerto-Rico, Medical Educational and Health Services Inc. was created, specifically, to promote and advance the establishment and operation of medical educational facilities and institutions along the western areas of Puerto Rico. The Company filed for Chapter 11 bankruptcy protection on June 3, 2010 (Bankr. D. P.R. Case No. 10-04905). The Company estimated US$10 million to US$50 million in assets and US$1 million to US$10 million in liabilities. The Debtor is represented by: Rafael Gonzalez Velez, Esq. 1806 Calle McLeary Suite 1-B San Juan, PR 00911-1321 Tel: (787) 726-8866 Fax: (787) 726-8877 E-mail: rgvlo@prtc.net MESA AIR: Distribution Record Date Extended for CRAFT Claims ------------------------------------------------------------ Under the Third Amended Joint Plan of Reorganization, the claims register will be closed and the transfer of any claim will be prohibited on the Distribution Record Date, which is defined as the date that is three business days after the date of the entry of the Jan. 20, 2011 Confirmation Order. On Jan. 19, 2011, the Court approved the Settlement and Agreement among the Debtors, U.S. Bank National Association, Manufacturers and Traders Trust Company, and Canadian Regional Aircraft Finance Transaction Limited No. 1 regarding the settlement and allowance of rejection and abandonment claims and administrative expense claims. U.S. Bank, MTTC, and CRAFT are seeking to sell or have sold Claim Nos. 1090, 1091, 1093, and 1094, each of which has been modified by the CRAFT Claim Settlement, and have requested relief from the Distribution Record Date to effectuate the sale of these claims. Subject to Court approval, the Debtors agree to extend the Distribution Record Date with respect to the Transferred Claims. Specifically, the parties' stipulation, dated February 28, 2011, provides that notwithstanding the Plan, the Debtors and their claims agent will recognize any transfer of the Transferred Claims before the Effective Date, provided that U.S. Bank, MTTC, and CRAFT, as applicable, notify the Debtors of the proposed transfer of these claims. Each party will be responsible for the costs and expenses it incurred in negotiating, drafting, and executing the stipulation, and will not be responsible for the payment of any other party's fees or costs. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on January 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MESA AIR: Security Trustee Transfers Several Claims --------------------------------------------------- In separate notices, U.S. Bank National Association, not in its individual capacity but as security trustee for Agencia Especial de Financiamento Industrial-Finame, informed the Bankruptcy Court of its intention to sell, trade or otherwise transfer claims against the Debtors to several entities. U.S. Bank owns certain general unsecured claims against the Debtors for the benefit of Finame, which have been allowed pursuant to the Court's February 18, 2011 order approving the determination, settlement, and allowance of certain U.S. Bank claims filed for the benefit of Finame. (1) Blue Mountain U.S. bank proposes to transfer certain general unsecured claims to Blue Mountain Credit Alternatives Master Fund, LP, BlueMountain Distressed Master Fund, LP, BlueMountain Long/Short Credit Master Fund, LP, and BlueMountain Timberline, Ltd. The General Unsecured Claims are (i) Claim Nos. 1526, 1546, 1547, and 1534 in the allowed amount of $53,466,074 against Mesa Air Group, Inc.; and (ii) Claim Nos. 1562, 1582, 1583, and 1570 in the allowed amount of $53,466,074 against Mesa Airlines, Inc. The Blue Mountain Entities also notify the Court of their intention to purchase, acquire or otherwise accumulate U.S. Bank's General Unsecured Claims pursuant to the proposed transfer. The Blue Mountain Entities currently beneficially own claims against the Debtors in the aggregate principal amount of $0. They will beneficially own claims against the Debtors in the aggregate principal amount of $106,932,148 once the proposed transaction occurs. (2) Credit Suisse U.S. Bank proposes to sell, trade or otherwise transfer (i) Claim Nos. 1544, 1528, and 1559, in the allowed amount of $37,340,660 against Mesa Air Group, and (ii) Claim Nos. 1580, 1564, and 1564 in the allowed amount of $37,340,660 against Mesa Airlines to Credit Suisse Loan Funding LLC. Credit Suisse also provides notice of its intention to purchase, acquire or otherwise accumulate the General Unsecured Claims pursuant to the proposed transfer. It currently beneficially owns claims against the Debtors in the aggregate principal amount of $0, and will beneficially own an aggregate amount of $74,681,320 in claims against the Debtors once the proposed transaction occurs. (3) DG Entities U.S. Bank proposes to sell, trade or otherwise transfer to the DG Entities -- DG Value Partners, LP, Special Situations, LLC, and Special Situations X, LLC -- (i) Claim Nos. 1551 and 1556, allowed for $22,839,078, against Mesa Air Group, and (ii) Claim Nos. 1587 and 1592, allowed for $22,839,078, against Mesa Airlines. The DG Entities also provide notice of their intention to purchase, acquire or otherwise accumulate the General Unsecured Claims. Once the proposed transfer occurs, the DG Entities will beneficially own claims against the Debtors in the aggregate principal amount of $45,678,156. (4) WBCH U.S. Bank proposes to sell, trade or otherwise transfer to WB Claims Holdings, LLC (i) Claim Nos. 1545, 1535, and 1558 in the allowed amount of $37,453,777 against Mesa Air Group, and (ii) Claim Nos. 1581, 1571, and 1594 in the allowed amount of $37,453,777 against Mesa Airlines. WBCH also notifies the Court of its intention to purchase, acquire or otherwise accumulate the General Unsecured Claims. Once the proposed transaction occurs, WBCH will beneficially own claims against the Debtors in the aggregate principal amount of $74,907,555. (5) SOF U.S. Bank proposes to sell, trade or otherwise transfer to SOF Investments, L.P. (i) Claim Nos. 1541, 1549, 1553, and 1525 in the allowed amount of $52,816,523 against Mesa Air Group, and (ii) Claim Nos. 1577, 1585, 1589, and 1561 in the allowed amount of $52,816,523 against Mesa Airlines. SOF also provides notice of its intention to purchase, acquire or otherwise accumulate the General Unsecured Claims pursuant to the proposed transfer. It will beneficially own claims against the Debtors in the aggregate principal amount of $105,633,046 once the proposed transaction occurs. (6) CAI Parties U.S. Bank proposes to sell, trade or otherwise transfer to CAI Distressed Debt Opportunity Master Fund Ltd. and D-STAR Ltd. (i) Claim Nos. 1550, 1552, and 1527 in the allowed amount of $37,244,190 against Mesa Air Group, and (ii) Claim Nos. 1586, 1588, and 1563 in the allowed amount of $37,244,190 against Mesa Airlines. The CAI Parties also notify the Court of their intention to purchase, acquire or otherwise accumulate the General Unsecured Claims. Once the proposed transfer occurs, the CAI Parties will beneficially own claims against the Debtors in the aggregate principal amount of $74,488,380. (7) Marblegate U.S Bank proposes to sell, trade or otherwise transfer to Marblegate Special Opportunities Master Fund LP (i) Claim Nos. 1540, 1542, 1539, and 1555 in the allowed amount of $53,669,061 against Mesa Air Group, and (ii) Claim Nos. 1576, 1578, 1575, and 1591 in the allowed amount of $53,669,061 against Mesa Airlines. Marblegate also provides notice of its intention to purchase, acquire or otherwise accumulate the General Unsecured Claims pursuant to the proposed transfer. Once the proposed transaction occurs, Marblegate will beneficially own claims against the Debtors in the aggregate principal amount of $107,338,122. (8) Waterstone Entities U.S. Bank proposes to sell, trade or otherwise transfer to Waterstone Market Neutral Master Fund, Ltd., Waterstone MF Fund, Ltd., and Prime Capital Master SPC, GOT WAT MAC Segregated Portfolio (i) Claim Nos. 1530, 1536, and 1537 in the allowed amount of $34,827,066 against Mesa Air Group, and (ii) Claim Nos. 1566, 1572, and 1573 in the allowed amount of $34,827,066 against Mesa Airlines. The Waterstone Entities also inform the Court of their intention to purchase, acquire or otherwise accumulate the General Unsecured Claims pursuant to the proposed transfer. They will beneficially own claims against the Debtors in the aggregate principal amount of $69,654,132 once the proposed transaction occurs. (9) OHA Entities U.S. Bank proposes to sell, trade or otherwise transfer to OHA Strategic Credit Master Fund, L.P. and OHA Strategic Credit Master Fund II, L.P. (i) Claim Nos. 1538, 1531, 1554, and 1533 in the allowed amount of $53,055,674 against Mesa Air Group, and (ii) Claim Nos. 1574, 1567, 1590, and 1569 in the allowed amount of $53,055,674 against Mesa Airlines. The OHA Entities also inform the Court that they intend to purchase, acquire or otherwise accumulate the General Unsecured Claims pursuant to the proposed transfer. Once the proposed transaction occurs, the OHA Entities will beneficially own claims against the Debtors in the aggregate principal amount of $106,111,348. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on January 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MESA AIR: Time to Decide on ELFC Engine Lease Extended to March 31 ------------------------------------------------------------------ Mesa Air Group and Engine Lease Finance Corporation have agreed that the deadline for the Debtors to add the lease agreement, dated June 1, 2007, to the list of executory contracts and leases to be assumed under the Third Amended Joint Plan of Reorganization will be extended until March 31, 2011. The Plan became effective on March 1, 2011. The Debtors continue to negotiate with ELFC regarding the terms upon which they would assume the Lease. Notwithstanding the Plan, the parties agreed that the Lease will not be deemed rejected on the Effective Date and that the Debtors will have until 30 days following the Effective Date to add the Lease to the list of executory contracts and leases to be assumed under the Plan. During the Extension Period, the Section 1110(b) Stipulations will remain in full force and effect. The Debtors will also be entitled to the use of, and will make payments for, the applicable engine in accordance with the terms and conditions of the Section 1110(b) Stipulations. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on January 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MID-VALLEY, INC: Garlock Wants to Intervene in 12 Bankruptcy Cases ------------------------------------------------------------------ Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About Mid-Valley Inc. Headquartered in Houston, Texas, DII Industries, LLC, is the direct or indirect parent of BPM Minerals, LLC, Kellogg Brown & Root, Inc., Mid-Valley, Inc., KBR Technical Services, Inc., Kellogg Brown & Root Engineering Corporation, Kellogg Brown & Root International, Inc., (Delaware), and Kellogg Brown & Root International, Inc., (Panama). KBR and its subsidiaries provide a wide range of services to energy and industrial customers and government entities in over 100 countries. DII has no business operations. DII and its debtor-affiliates filed a prepackaged chapter 11 petition on December 16, 2003 (Bankr. W.D. Pa. Case No. 02-12152). Jeffrey N. Rich, Esq., Michael G. Zanic, Esq., and Eric T. Moser, Esq., at Kirkpatrick & Lockhart LLP, represent the Debtors in their restructuring efforts. On June 30, 2004, the Debtors disclosed $6.255 billion in total assets and $5.295 billion in total liabilities. The Bankruptcy Court's July 17, 2004, confirmation of the Debtors' Prepackaged Plan, and the District Court's affirmation order on July 26, 2004, allowed the Debtors to emerge from bankruptcy protection on Jan. 3, 2005. MILLENNIUM MULTIPLE: Solicitation Period Expires April 18 --------------------------------------------------------- Millennium Multiple Employer Welfare Benefit Plan sought and obtained an extension of its exclusive period in which to solicit acceptances of its chapter 11 plan from creditors through April 18, 2011. As reported in the Troubled Company Reporter on Feb. 25, 2011, the Debtor filed a liquidating chapter 11 plan proposing to deliver $500,000 to the company's unsecured creditors to satisfy whatever their claims may be. A copy of the Debtor's Plan is available at http://bankrupt.com/misc/MMEWBP_Plan_02172011.pdfand the Debtor's Disclosure Statement explaining that plan is available at http://bankrupt.com/misc/MMEWBP_DS_02172011.pdfat no charge. About Millennium Multiple Richardson, Texas-based Millennium Multiple Employer Welfare Benefit Plan filed for Chapter 11 bankruptcy protection on June 9, 2010 (Bankr. W.D. Okla. Case No. 10-13528). G. Blaine Schwabe, III, Esq., at Mock Schwabe Waldo Elder Reeves & Bryant, assists the Company in its restructuring effort. Eric D. Madden, Esq., and Brandon V. Lewis, Esq., at Diamond McCarthy LLP, in Dallas; and Kyung S. Lee, Esq., at Diamond McCarthy LLP, and Kiran A. Phansalkar, Esq., at Conner & Winters LLP, serve as counsel to the Official Committee of Unsecured Creditors. The Company estimated its assets and debts at $50 million to $100 million as of the petition date. MOLECULAR INSIGHT: Accepts Alternative Proposal, Amends Plan ------------------------------------------------------------ Molecular Insight Pharmaceuticals, Inc., had accepted an alternative transaction proposal regarding its restructuring and filed an amended plan of reorganization and an amended disclosure statement with the U.S. Bankruptcy Court for the District of Massachusetts in connection with the Company's Chapter 11 reorganization case that was commenced on December 9, 2010 under the U.S. Bankruptcy Code. Previously, the Court entered an order authorizing the assumption by the Company of an Investment Agreement with Savitr Capital LLC and further authorized the Company to actively solicit, during a 30-day period commenced on January 20, 2011, inquiries, proposals, offers, and bids from, and negotiate with, any person regarding any alternative transaction such as an acquisition, or other sale or purchase transaction or refinancing. During this period the Company received an alternative transaction proposal from certain holders of the Company's Senior Secured Floating Rate Bonds due 2012 and negotiated that proposal with those holders. The Board of Directors of the Company determined that the Bondholder proposal would offer a better chance for the Company's successful emergence from Chapter 11 and constituted a superior proposal. On March 1, 2011 the Board authorized the Company to enter into a Plan Support Agreement with certain holders of the Bonds and related letter agreements with certain of the Consenting Bondholders and their affiliate entities reflecting the alternative transaction. As a result, the Company notified Savitr of its termination of the existing Investment Agreement. Under the Plan Support Agreement and the related letter agreements, the Consenting Bondholders are committed to support an amended plan of reorganization, pursuant to which, among other things (i) in exchange for the discharge of the Bonds, the holders of the Bonds will receive a 100% equity interest in the reorganized Company in the form of preferred stock, and the existing equity securities of the Company will be cancelled, (ii) certain of the Consenting Bondholders and their affiliate entities have committed to provide (a) if requested by the Company, a debtor-in-possession (DIP) financing of up to $10 million, and (b) an exit financing facility of $40 million (the proceeds from which will be used to repay the DIP financing, among other things), subject to certain conditions, and (iii) the Company will become a private company. In exchange for the commitments to provide the DIP financing and the exit financing, the Company will pay certain fees in the form of cash and warrants to the DIP lenders and exit financing lenders or their affiliate entities making such commitments, the cash component of which the Company currently estimates to be approximately $2 million. The Bondholder alternative transaction plan is subject to a number of conditions, including, but not limited to, the emergence of Molecular Insight from bankruptcy protection by May 16, 2011, adherence to a cash collateral budget, as well as certain bankruptcy-related preconditions, including the entry of certain final orders by the Bankruptcy Court incorporating, among other items, a confirmation order related to the amended plan of reorganization. There is no assurance either that the Court will approve the amended plan of reorganization, or that the alternative transaction will be consummated. The Plan Support Agreement and related letter agreements are being filed on Form 8-K with the Securities and Exchange Commission. About Molecular Insight Cambridge, Massachusetts-based Molecular Insight Pharmaceuticals, Inc., is a clinical-stage biopharmaceutical company that provides services on the detection and treatment of various forms of cancer and other life-threatening diseases. The Debtor disclosed $36,453,000 in total assets and $198,829,000 in total debts as of September 30, 2010. Molecular Insight filed for Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 10-23355) on Dec. 9, 2010. Kramer Levin Naftalis & Franklin LLP serves as the Debtor's lead bankruptcy counsel. Alan L. Braunstein, Esq., at Riemer & Braunstein, LLP, serves as the Debtor's local Massachusetts counsel. Foley & Lardner LLP is the Debtor's special counsel. Tatum LLC, a division of SFN Professional Services LLC, is the Debtor's financial consultant. Omni Management Group, LLC, is the claims, and balloting agent. MTD INVESTMENTS: Plan Violates Absolute Priority Rule ----------------------------------------------------- Bankruptcy Judge J. Rich Leonard denied confirmation of the Chapter 11 trustee's bankruptcy-exit plan for MTD Investments Inc. The chapter 11 trustee filed an amended plan and disclosure statement on Sept. 20, 2010. By the confirmation hearing, most of the classes had either accepted the plan or resolved their objections with the trustee. However, issues related to the treatment of class 13, the general unsecured creditors' class, still remain which prohibit confirmation of the plan. The general unsecured creditors' class, made up of seven creditors, has rejected the plan. Although a majority of creditors voted to accept the plan, more than one-third of the creditors in amount rejected it. The trustee's plan does not propose providing the class with the full amount of their allowed claims. Therefore, the court must assess whether the plan can be confirmed over the rejecting votes pursuant to Sec. 1129(b)(2)(B)(ii). The plan includes a class of junior claims -- class 15 constitutes the equity security holders. The plan allows Michael T. Davis to retain his 100% ownership interest unimpaired. Given the retention of his ownership interest, the Court cannot confirm the plan as written because it does not conform with the requirements of Sec. 1129(b). Although the Court can raise the issue of compliance with Sec. 1129 on its own, the Bankruptcy Administrator raised this particular issue in her statement regarding the plan. At the time of filing the statement, ballots had not been totaled. Nonetheless, it states "the Debtor is proposing to allow equity security holders to maintain their pre-petition equity interest in the Debtor. Should an impaired class [reject] the Debtor's Plan, this provision would violate the absolute priority rule." The Court also noted that the Chapter 11 trustee proposed new treatment of creditor Roanoke Meadowbrook, LLC, at the hearing in light of the creditor's rejection of the filed plan. However, the trustee was unable to provide evidence that the creditor -- who was not present at the hearing -- had definitively agreed to this modification. A copy of the Court's March 4, 2011 order is available at http://is.gd/eFA8Jofrom Leagle.com. MTD Investments Inc., based in Roanoke Rapids, North Carolina, filed for Chapter 11 bankruptcy (Bankr. E.D.N.C. Case No. 10-02711) on April 6, 2010, represented by Michael P. Peavey, Esq. -- mpeavey@peaveylaw.com -- as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and debts. Debtor-affiliate Michael T. Davis and Debra W. Davis filed a separate Chapter 11 petition (Bankr. E.D.N.C. Case No. 09-10198) on Nov. 23, 2009. N.A. REFRACTORIES: Garlock Wants to Intervene in 12 Cases --------------------------------------------------------- Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About NARCO Based in Pittsburgh, Pennsylvania, North American Refractories Company manufactured and sold refractory products. The Company and its affiliates sought Chapter 11 protection on Jan. 4, 2002 (Bankr. W.D. Pa. Case No. 02-20198) after suffering a slump in the domestic economy and encountering an overwhelming number of claims from individuals asserting injuries or illnesses caused by exposure to asbestos containing products it manufactured. The Company reported $27.5 billion in assets and $18.6 billion in liabilities at the time of the filing. The Hon. Judith K. Fitzgerald confirmed a Third Amended Plan of Reorganization filed by North American Refractories Company and its debtor-affiliates, I-Tec Holding Corp., Intertec Company, and Tri-Star Refractories, Inc., on Sept. 24, 2007. That plan estimated that unsecured non-asbestos creditors would recover about 90 cents-on-the-dollar. Asbestos claims were channeled to a 524(g) trust funded by Honeywell International Inc. and 79% of the stock of the Reorganized Debtor. James J. Restivo, Jr., Esq., Robert P. Simmons, Esq., and David Ziegler, Esq., at Reed Smith LLP represents the Debtor. Kroll Zolfo Cooper LLC is the Debtors' bankruptcy consultants and special financial advisors. The Official Committee of Unsecured Creditors is represented by McGuire Woods, LLP. KPMG, LLP, is the Creditors Committee's financial advisor. The Asbestos Claimants Committee is represented by attorneys at Caplin & Drysdale, Chartered and Campbell & Levine, LLC. L. Tersigni Consulting, PC was the Asbestos Committee's financial advisor. Lawrence Fitzpatrick was appointed as the Future Asbestos Claimants Representative. Mr. Fitzpatrick is represented by attorneys at Young Conaway Stargatt & Taylor LLP and Meyer, Unkovic & Scott LLP. NEW JERSEY MOTORSPORTS: Files for Chapter 11 with Plan ------------------------------------------------------ New Jersey Motorsports Park (NJMP) announced a reorganization plan that includes the restructuring of debt, addition of new equity, and the filing of Chapter 11 March 7, in a move that management feels confident will secure the Park's future operations. NJMP has additionally agreed to terms with its primary lender that will enable it to restructure its debt through the bankruptcy filing. NJMP Owner and Managing Partner Lee Brahin stated, "Although the decision to file Chapter 11 was a very difficult one, it was deemed necessary to protect future operations and to allow the Park to continue providing employment and other economic support to the local and regional communities." "Our overall plan for the future is still sound," he continued. "Our renegotiated debt financing will enable us to move forward with our existing operational plan, although we will continue to reduce operating expenses and are in the process of renegotiating debt with vendors. We are also receiving an infusion of new equity from certain investors, which will bolster NJMP's liquidity position." NJMP General Manager Brad Scott stated that the realignment of debt will not affect employment numbers, chiefly because needed reductions have already occurred. "We wish to emphasize that none of these changes will affect our scheduled 2011 racing and social events, Drivers Club Memberships, season passes, pre-event ticket sales, gift certificates, deposits or any other NJMP operation," reported Scott. * * * The Daily Journal reports that Motorsports Park's financial problems surfaced about a month ago when it was disclosed that the Millville Rescue Squad was demanding settlement of bills for the coverage it provides for track events. The park and squad concluded a private agreement. NEW JERSEY MOTORSPORTS: Case Summary & 20 Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: New Jersey Motorsports Park, LLC 47 Warbird Drive Millville, NJ 08332 Bankruptcy Case No.: 11-16752 Chapter 11 Petition Date: March 7, 2011 Court: U.S. Bankruptcy Court District of New Jersey Debtor's Counsel: Nella M. Bloom, Esq. COHEN SEGLIAS PALLAS GREENHALL & FURMAN, PC 30 South 17th Street, 19th Floor Philadelphia, PA 19103 Tel: (215) 564-1700 Fax: (215) 564-3066 Estimated Assets: $100,001 to $500,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Lee Brahin, co-managing member. A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/njb11-16752.pdf Debtor-affiliates that filed separate Chapter 11 petitions on March 7, 2011: Debtor Case No. ------ -------- New Jersey Motorsports Park Operating Company, LLC 11-16772 New Jersey Motorsports Park Development Association 11-16776 New Jersey Motorsports Park Urban Renewal, LLC 11-16778 NOMADS INC: Files for Chapter 7 Bankruptcy ------------------------------------------ Ellen Creager at the Detroit Free Press reports that Nomads, Inc., Michigan's oldest travel club, filed for Chapter 7 bankruptcy after last-minute attempts to sell the club failed. In a petition filed on Feb. 28, 2011, in Detroit (Bankr. E.D. Mich. Case No. 11-____), the club disclosed $3,900,798 in assets but $3,917,944 in liabilities. The Detroit Free Press discloses that the club owes money to more than 100 claimants, including travel suppliers, members and bondholders. The Detroit Free Press, citing a board of directors' letter to members, says the club had been cut off by its fuel supplier because of unpaid invoices and could not meet payroll or pay its obligations. "We concluded there was no other viable business plan or approach that could achieve the sustainability of Nomads, Inc.," the letter said, according to Detroit Free Press. Nomads, which began in 1965, was the only remaining travel club in the U.S. with its own aircraft, a Boeing 727. The plane, valued at $2.5 million, is the asset of the club, the Detroit Free Press discloses. OWENS CORNING: Court Junks PI Trusts Suits vs. Insurers ------------------------------------------------------- Judge Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware dismissed in their entirety the adversary complaints brought by the Asbestos Personal Injury Trusts in the cases of Owens Corning, Kaiser Aluminum Corp., and USG Corp. that sought a preliminary injunction against the continuation of certain discovery from the Trusts in excess of that permitted by the bankruptcy plans and trust distribution procedures in those cases. The Adversary Proceedings were commenced on Oct. 27, 2010, seeking to resolve in one jurisdiction and in one court the proper scope of discovery of the claimant information and data that the Defendants have sought from the Trusts, and the protections that the Trusts may properly and consistently invoke in the event of future, similar discovery efforts. In the adversary proceeding, the Trusts asked Judge Fitzgerald to enter a preliminary injunction barring the continuation of discovery against the Trusts and all discovery of a similar nature until the Court has ruled on the issues raised in the Trusts' Adversary Complaint. The Plaintiffs' Motion for Preliminary Injunction is denied, Judge Fitzgerald held. Upon close examination, Judge Fitzgerald found that the U.S. Bankruptcy Court for the District of Delaware does not have subject matter jurisdiction over the matters before it. The discovery dispute raised by the Plaintiffs in the Adversary Complaints does not involve the interpretation or effectuation of the Plan, Judge Fitzgerald noted. Moreover, the subpoenas served on the Plaintiffs were issued in other jurisdictions in matters that are not before the Delaware Court, she noted. The issuing courts are the appropriate fora to determine the scope of the subpoenas and the courts in which actions are pending are best suited to resolve any specific discovery disputes, including consideration of confidentiality concerns any party to the litigation may raise, Judge Fitzgerald opined. "[The Court] recognizes the desire of the Trusts to have a uniformly applicable principle regarding their obligations to comply with discovery requests, some of which seem to far exceed reasonable requests calculated to lead to relevant and admissible evidence in a lawsuit," Judge Fitzgerald said. "Nonetheless, this court has no jurisdiction to create a 'one size fits all' peremptory rule of discovery." Accordingly, Judge Fitzgerald directed the Clerk of Court to close each of the Adversary Complaints in the cases of Owens Corning, Kaiser Aluminum and USG. With respect to Plaintiff ACandS Trust, a scheduling conference regarding the issue on whether the ACandS Trust Distribution Procedures is a valid and enforceable forum selection clause, or is otherwise enforceable, will be held on March 28, 2011, Judge Fitzgerald ruled. A copy of the memorandum opinion dated February 22, 2011, reflecting Judge Fitzgerald's ruling is available for free at: http://ResearchArchives.com/t/s?749a A subsequent order correcting the February 22 Memo Opinion was entered to note that the Delaware Court recognizes that the Owens Corning and USG Trust Distribution Procedures confirmed in 2006 did in fact include language requiring certain subpoenas to be issued by the Delaware Court. Judge Fitzgerald clarified that the Court's error does not change the rationale of the Memo Opinion with respect to any party. A copy of the Corrective Order dated February 23, 2011, is available for free at: http://bankrupt.com/misc/Owens_CrrctiveOrd_TrustAdvProcDismsl.pdf About Owens Corning Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning (Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/-- is a producer of residential and commercial building materials and glass fiber reinforcements, and other similar materials for composite systems. The company has operations in 26 countries. The Company filed for Chapter 11 protection on October 5, 2000 (Bankr. D. Del. Case. No. 00-03837). Norman L. Pernick, Esq., at Saul Ewing LLP, represented the Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Official Committee of Asbestos Creditors. James J. McMonagle served as the Legal Representative for Future Claimants until June 20, 2007. Mr. McMonagle was replaced by Michael J. Crames. Mr. Crames served as Mr. McMonagle's counsel until July 2005, when he retired from the law firm Kaye Scholer LLP. On September 28, 2006, the Honorable John P. Fullam, Sr., of the U.S. District Court for the Eastern District of Pennsylvania affirmed the order of Honorable Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware confirming Owens Corning's Sixth Amended Plan of Reorganization. The Plan took effect on October 31, 2006, marking the company's emergence from Chapter 11. Reorganized Owens sought on July 25, 2008, from the Delaware Bankruptcy Court a final decree closing the Chapter 11 cases of 17 of its affiliates. Only the Chapter 11 case of Owens Corning Sales, LLC, formerly known as Owens Corning, under Case No. 00-03837 will remain open. (Owens Corning Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * Reorganized Owens Corning carries a 'Ba1' corporate family rating from Moody OWENS CORNING: Garlock Wants to Intervene in 12 Bankruptcy Cases ---------------------------------------------------------------- Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About Owens Corning Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning (Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/-- is a producer of residential and commercial building materials and glass fiber reinforcements, and other similar materials for composite systems. The company has operations in 26 countries. The Company filed for Chapter 11 protection on October 5, 2000 (Bankr. D. Del. Case. No. 00-03837). Norman L. Pernick, Esq., at Saul Ewing LLP, represented the Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Official Committee of Asbestos Creditors. James J. McMonagle served as the Legal Representative for Future Claimants until June 20, 2007. Mr. McMonagle was replaced by Michael J. Crames. Mr. Crames served as Mr. McMonagle's counsel until July 2005, when he retired from the law firm Kaye Scholer LLP. On September 28, 2006, the Honorable John P. Fullam, Sr., of the U.S. District Court for the Eastern District of Pennsylvania affirmed the order of Honorable Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware confirming Owens Corning's Sixth Amended Plan of Reorganization. The Plan took effect on October 31, 2006, marking the company's emergence from Chapter 11. Reorganized Owens sought on July 25, 2008, from the Delaware Bankruptcy Court a final decree closing the Chapter 11 cases of 17 of its affiliates. Only the Chapter 11 case of Owens Corning Sales, LLC, formerly known as Owens Corning, under Case No. 00-03837 will remain open. (Owens Corning Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * Reorganized Owens Corning carries a 'Ba1' corporate family rating from Moody OWENS CORNING: Garlock Wants to Reopen Chapter 11 Cases ------------------------------------------------------- Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania for the re-opening of seven closed bankruptcy cases for the limited purpose of permitting it to seek access to certain verified statements of plaintiffs' law firm pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. The Closed Cases are: * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * Owens Corning * US Mineral Products Company * USG Corp. * Mid-Valley, Inc. All the Closed Cases were under Judge Judith Fitzgerald in the Delaware Bankruptcy Court except for Mid-Valley, which was tried in the Western Pennsylvania Bankruptcy Court. Garlock is filing the Motion to Re-Open at the direction of the Court and in furtherance of its Original 2019 Access Motions. As previously reported, Garlock's 2019 Motion seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, explains that Garlock has been a defendant in lawsuits alleging asbestos-related personal injury for over 35 years. Garlock is currently undergoing its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. In its bankruptcy case, Garlock is seeking to address its asbestos liabilities and reorganize, which necessitates that Garlock obtain an accurate picture of its current and future asbestos-related liabilities. The Rule 2019 Exhibits are relevant to an assessment of those liabilities, Mr. Werkheiser asserts. Garlock believes it is unnecessary to reopen the Closed Cases for the purposes of hearing the 2019 Access Motions. However, because the Delaware Court has instructed Garlock that it will not proceed on the 2019 Access Motions in the Closed Cases, Garlock seeks to reopen the Closed Cases in order to facilitate resolution of the 2019 Access Motions. About Owens Corning Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning (Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/-- is a producer of residential and commercial building materials and glass fiber reinforcements, and other similar materials for composite systems. The company has operations in 26 countries. The Company filed for Chapter 11 protection on October 5, 2000 (Bankr. D. Del. Case. No. 00-03837). Norman L. Pernick, Esq., at Saul Ewing LLP, represented the Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Official Committee of Asbestos Creditors. James J. McMonagle served as the Legal Representative for Future Claimants until June 20, 2007. Mr. McMonagle was replaced by Michael J. Crames. Mr. Crames served as Mr. McMonagle's counsel until July 2005, when he retired from the law firm Kaye Scholer LLP. On September 28, 2006, the Honorable John P. Fullam, Sr., of the U.S. District Court for the Eastern District of Pennsylvania affirmed the order of Honorable Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware confirming Owens Corning's Sixth Amended Plan of Reorganization. The Plan took effect on October 31, 2006, marking the company's emergence from Chapter 11. Reorganized Owens sought on July 25, 2008, from the Delaware Bankruptcy Court a final decree closing the Chapter 11 cases of 17 of its affiliates. Only the Chapter 11 case of Owens Corning Sales, LLC, formerly known as Owens Corning, under Case No. 00-03837 will remain open. (Owens Corning Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * Reorganized Owens Corning carries a 'Ba1' corporate family rating from Moody OWENS CORNING: Opposes Garlock's Plea to See Rule 2019 Statements ----------------------------------------------------------------- Owens Corning Sales LLC and several law firms filed formal objections to the motion of Garlock Sealing Technologies LLC for access to Rule 2019 Statements filed in 12 asbestos-related bankruptcy cases before bankruptcy courts in Delaware and Pennsylvania. The Objectors are: 1. Owens Corning Sales, LLC and its affiliated reorganized debtors 2. The Law Offices of Peter G. Angelos, P.C., Baron & Budd, P.C., Brayton Purcell, LLP, Hissey Kientz, LLP, The Lipman Law Firm, Reaud, Morgan & Quinn, Inc., Thornton & Naumes, LLP, Waters & Kraus, LLP, and Williams Kherkher Hart Boundas, LLP 3. Kazan, McClain, Lyons, Greenwood & Harley, Waters & Kraus LLP, Stanley, Mandel & Iola, L.L.P., Simmons Browder Gianaris Angelides & Barnerd LLC, Bergman, Draper & Frockt, Gori Julian & Associates, P.C., Early, Lucarelli, Sweeney & Strauss, Cooney & Conway, George & Sipes LLP, Lipsitz & Ponterio, LLC, Bifferato LLC, and Montgomery, McCracken, Walker & Rhoads, LLP, on their own behalf and on behalf of their predecessors Seven of the 12 Asbestos-related Cases are closed, which include the cases of Owens Corning, ACands, Inc., Armstrong World Industries, Inc., and USG Corp. Reorganized Owens says it takes no position on whether the bankruptcy courts should allow Garlock access to the 2019 Statements, but asserts that it strongly opposes any reopening of its cases in the event the Court is inclined to grant Garlock's request. Owens says it would suffer significant prejudice if its cases are reopened as the closing of those cases is a result of a 10-year substantial and prolonged effort. The Law Firm Objectors generally seek denial of Garlock's request. Baron & Budd, et al., assert that Garlock provided no adequate reasons why the Court should permit it, a stranger to the cases, to intervene in them, re-open most of them, or revisit longstanding orders governing compliance with Rule 2019 of the Federal Rules of Bankruptcy Procedure in the cases. Kazan McClain, et al., contend that Garlock misapprehends the purpose and meaning of the 2019 Statement in asbestos bankruptcy cases. Garlock's argument hinges on its misguided effort to convert a 2019 Statement into a claim form, the Law Firms note. Moreover, the Law Firm Objectors make these contentions: -- Garlock may not seek general access to 2019 Statements without proving individual need or cause. -- Garlock refuses to acknowledge that the 2019 Orders strike an appropriate balance between public access and the confidentiality rights of tort claimants. -- Garlock's summary request to intervene in the 12 cases, over two jurisdictions, is defective and should be denied. -- Garlock lacks sufficient standing to urge the courts to re- open the Closed Cases. -- Garlock has an alternative to the wide ranging and intrusive discovery it seeks. It has or can be provided access to the ballots casts in connection with the plans in the asbestos cases. The Law Firms also note that Garlock has already been denied some of the relief it seeks in one of the 12 cases. In March 2010, the Delaware Bankruptcy Court denied Garlock access to 2019 materials in the Pittsburgh Corning case. Certain parties filed joinders to the response of the Law Firm Objectors to Garlock's request. The Joinder Parties include (1) various claimants represented by Motley Rice LLC, and (2) the Official Committees of Asbestos Claimants in the Flintkote, Grace, NARCO and Pittsburgh Corning bankruptcy cases. Garlock Files Reply in Support of Request Garlock subsequently sought and obtained leave from the Delaware Bankruptcy Court to file a reply in support of its Motion to address arguments raised by the Objecting Parties. On behalf of Garlock, Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, points out that no objector has attempted to shoulder its burden of demonstrating that disclosure of the exhibits will cause a "clearly defined and serious injury." Under the Garlock Reply, Mr. Werkheiser also makes these assertions: -- Garlock's Motion is not a discovery motion, and Garlock's need for the information is not relevant to the standard for access to court-filed records. -- It is a mistake to refer to the exhibits as "confidential," as no court has sealed them or make a finding that they should be sealed. -- The purpose of Rule 2019 has nothing to do with Garlock's right to access. Rule 2019 does serve important interests, but those purposes have nothing to do with the public's right to access the statements, once filed. -- The weight that should be accorded to the statements has nothing to do with the access question. -- Garlock has standing to intervene as a member of the public. -- Garlock did not represent that Pittsburgh Corning manufactured a "friable" product within the EPA's definition of that word. Garlock Files Amended Motion At a February 14, 2011 hearing, the Delaware Court indicated its intention to dismiss the Original 2019 Access Motions without prejudice in the Bankruptcy Cases that were closed as of the time of filing of the Original Rule 2019 Access Motion. The Delaware Court stated at the February 14 hearing that (i) it did not have jurisdiction over the Original 2019 Access Motion in the Closed Bankruptcy Cases unless and until those cases are reopened, which must be done on motion, and (ii) the Original 2019 Access Motions were procedurally infirm because Garlock had not filed separate motions to intervene. In light of the Delaware Court's statements, out of an abundance of caution, Garlock filed its Amended Motion to Access 2019 Statements on February 18, 2011. The Amended 2019 Access Motions are substantively identical to the Original 2019 Access Motions. Weitz & Luxenberg Files Joinder In a March 3, 2011 filing, Weitz & Luxenberg, P.C., joins in the response of the Law Firm Objectors to Garlock's 2009 Access Motion. Weitz agrees that Garlock's request should be denied in its entirety. Law Firms & Asbestos Committees Object to Introduction of Garlock Exhibits In separate filings, the Official Committees of Asbestos Claimants in the Flintkote, W.R. Grace, North American Refractories and Pittsburgh Corning bankruptcy cases; Baron & Budd, et al.; and Peter Kazan McClain, et al., oppose the admission into evidence of various documents designated by Garlock at the February 14 hearing. The Feb. 14 Exhibits include, among other things: -- 2019 Statements filed by the Law Firm Objectors in various cases; -- Four 2019 Statements filed in bankruptcy cases pending in California; -- 2019 Statements and certain orders in In re Congoleum Corp.; -- A recent Chapter 13 filing in Delaware by one William F. Smith; -- Extracts from the Claims Register in In re American Business Financial Services, Inc., 05-10203, Bankruptcy District of Delaware; from the internet and lists pending cases in the federal Mardock proceeding; and from the internet and lists pending cases in the "Texas MDL;" -- Master ballot cast by Thornton Naumes, LLP, in the Pittsburgh Corning Corp.; -- An affidavit of Paul Grant, as president of Garrison Litigation Management Group Inc., one of Garlock's co- Debtors; -- Excerpt from the USG Corp. Trust Distribution Procedures; -- Complaint in Puller v. ACandS; -- Interrogatory response in Foster v. Chemtura; and -- Voting procedures in In re Pittsburgh Corning Corp.. The Law Firms object to the Garlock Exhibits as lacking proper foundations, and as being neither relevant nor likely to lead to the discovery of admissible evidence. Moreover, the Law Firms object to the admission of the Exhibits on the basis that its probative value, if any, is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence. The Law Firms further object to the Exhibits to the extent they are proposed as exhibits in closed Chapter 11 cases, and to the extent they are proposed as exhibits in connection with a non- evidentiary hearing. The Asbestos Committees, for their part, assert that none of the Garlock Exhibits are relevant to the question of whether Garlock is entitled access to the Rule 2019 Statements. Some of the Garlock Exhibits, the Asbestos Committees argue, are also inadmissible on the grounds of hearsay while others have not been authenticated. About Owens Corning Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning (Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/-- is a producer of residential and commercial building materials and glass fiber reinforcements, and other similar materials for composite systems. The company has operations in 26 countries. The Company filed for Chapter 11 protection on October 5, 2000 (Bankr. D. Del. Case. No. 00-03837). Norman L. Pernick, Esq., at Saul Ewing LLP, represented the Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Official Committee of Asbestos Creditors. James J. McMonagle served as the Legal Representative for Future Claimants until June 20, 2007. Mr. McMonagle was replaced by Michael J. Crames. Mr. Crames served as Mr. McMonagle's counsel until July 2005, when he retired from the law firm Kaye Scholer LLP. On September 28, 2006, the Honorable John P. Fullam, Sr., of the U.S. District Court for the Eastern District of Pennsylvania affirmed the order of Honorable Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware confirming Owens Corning's Sixth Amended Plan of Reorganization. The Plan took effect on October 31, 2006, marking the company's emergence from Chapter 11. Reorganized Owens sought on July 25, 2008, from the Delaware Bankruptcy Court a final decree closing the Chapter 11 cases of 17 of its affiliates. Only the Chapter 11 case of Owens Corning Sales, LLC, formerly known as Owens Corning, under Case No. 00-03837 will remain open. (Owens Corning Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * Reorganized Owens Corning carries a 'Ba1' corporate family rating from Moody PARTSEARCH TECHNOLOGIES: Sues UPS Over Billing Practices -------------------------------------------------------- Dow Jones' DBR Small Cap reports that Partsearch Technologies Inc. is suing to stop United Parcel Service Inc. from charging other companies for thousands of dollars in shipping costs that the provider of appliance and electronics replacement parts owes UPS. About Partsearch Technologies Partsearch Technologies Inc., based in Kingston, New York, offers parts for consumer electronics and outdoor power equipment. It doesn't hold inventory of its own. Inventory comes from suppliers. Partsearch filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-10282) on Jan. 27 in Manhattan after discovering it overcharged its largest customer Best Buy Co. Inc. by $5.9 million. William R. Baldiga, Esq., at Brown Rudnick LLP, in New York, serves as counsel. Partsearch disclosed assets for $4 million and total liabilities of $13 million. PATRIOT NATIONAL: Bank to Sell Assets to ES Ventures for $65MM -------------------------------------------------------------- Patriot National Bank, a wholly-owned subsidiary of Patriot National Bancorp, Inc., has entered into a contract to sell non- performing loans and real estate to ES Ventures One, LLC, for $65 million. The transaction requires the non-objection of Patriot's banking regulator and is expected to close prior to March 31, 2011. "The sale of the majority of the Bank's non- performing assets will allow Patriot to accelerate the Bank's business plan. Further, the reduction in non-performing assets materially improves the risk profile of the balance sheet, decreases workout and OREO expenses, and allows us to reinvest $65 million into earning assets to improve net interest margin," said Christopher Maher, the Company's President & CEO. In a related restructuring, Patriot announced the consolidation of four branches to reduce operating expenses. The affected branches include Wilton (One Danbury Road, Wilton), Fairfield Center (1127 Post Road, Fairfield), Stratford (3552 Main Street, Stratford), and Old Greenwich (184 Sound Beach Avenue, Greenwich). All customer accounts in the affected branches will be transferred to nearby Patriot branches to minimize any inconvenience to the Bank's customers. The consolidation of these branches is expected to result in a pre-tax earnings charge of $3.0 million and result in annualized expense reductions of $1.8 million. The consolidations are anticipated to be completed prior to June 30, 2011. Michael Carrazza, the Chairman of the Board of the Company, commented that "We are pleased to report on these restructuring achievements, which are key components of our post-closing recovery plan. These activities strengthen Patriot's competitive position and bring us closer to our goal of restored health and profitability." The Company plans to issue full year 2010 financial statements in conjunction with the filing of an Annual Report on Form 10-K on or about March 15, 2011. It is Patriot National Bank's mission to offer a significant community-based alternative to larger banks and to provide personalized service to consumers and local businesses. Nationally chartered in 1994, Patriot National Bank currently has full-service branches serving Southern Connecticut, Westchester County, New York and New York City. About Patriot National Bancorp Stamford, Conn.-based Patriot National Bancorp, Inc. (NASDAQ: PNBK) is the parent company of Patriot National Bank, a national banking association headquartered in Stamford, Fairfield County, in Connecticut. Patriot National Bank has 19 full service branches, 16 in Connecticut and three in New York. The Company's balance sheet at Sept. 30, 2010, showed $787.77 million in total assets, $762.60 million in total liabilities, and stockholder's equity of $25.16 million. For the nine-month period ended Sept. 30, 2010, the Company reported a net loss of $11.3 million, from a net loss of $19.7 million in the same period in 2009. As reported in the Troubled Company Reporter on March 18, 2010, McGladrey & Pullen, LLP, in New Haven, Conn., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's net losses for 2009 and 2008 and uncertainty about the Company's and Patriot National Bank's ability to maintain compliance with regulatory capital requirements. In February 2009, Patriot National Bank entered into a formal written agreement with its primary regulator which required the Bank to develop and maintain a capital plan. PHILADELPHIA RITTENHOUSE: Sets Forth Reorganization Plan -------------------------------------------------------- NetDockets reports that Philadelphia Rittenhouse Developer, L.P. filed its proposed plan of reorganization with the bankruptcy court, which sets forth its proposal for reorganizing its finances and operations. The report relates that according to the court filings, 37 of the building's 144 residential condominium units had been sold as of Feb. 10. Two additional units were under contract and both commercial spaces were leased as of the same date. The developer asserts that the "net sell out" of the building will generate $225 million in proceeds, netDockets notes. iStar Tara's first priority secured claim is approximately $190 million (although the claim is disputed), and an additional $62 million is owed on a mezzanine loan, the report discloses. However, the developer asserts that a liquidation of the remaining condominium units "will not achieve anything close to [iStar Tara's] Class 2 claim of $190,000,000," netDockets says. Pursuant to the proposed plan, the developer would conduct an orderly marketing and sale of the remaining condominiums over an estimated three to four year period and place the net sale proceeds (i.e., sale proceeds less costs of administration, maintenance and construction) in a fund pending resolution of litigation. NetDockets posts that no distributions would be made from the fund before that time and iStar Tara would receive payment of its claim from that fund first. The plan also proposes that the unsecured claim of the homeowners' association -- approximately $183,000 pre-bankruptcy -- will be paid over 12 months following the plan becoming effective (with administrative claims of the homeowners' association being paid as they accrue), the report says. NetDcokets discloses that the secured claim held by the City of Philadelphia (for real estate taxes) would also be paid over 12 months. All other claims would be paid out of the net sale proceeds fund once it is released (and to the extent that additional amounts remain after paying iStar Tara's claims, the report adds. About Philadelphia Rittenhouse Philadelphia Rittenhouse Developer, L.P. is a joint venture between ARC Properties, Inc., based in Clifton, New Jersey, and Philadelphia-based Wheeler Brothers Holdings, LLC. The Company was formed to develop 10 Rittenhouse Square, a 33-story condominium building in Philadelphia. Rittenhouse Developer filed for chapter 11 bankruptcy in response to an action in Pennsylvania state court seeking to appoint a receiver for the development project, which was brought by one of the Company's lenders, iStar Tara, LLC. Philadelphia Rittenhouse filed a Chapter 11 petition on Dec. 30, 2010 (Bankr. E.D. Pa. Case No. 10-31201). Albert A. Ciardi, III, Esq., at Ciardi Ciardi & Astin, P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $100 million to $500 million. iStar Tara, LLC is represented in the chapter 11 case by the firm of Blank Rome LLP. PHOENIX WORLDWIDE: Exit Plan Denied, Case Converted to Ch. 7 ------------------------------------------------------------ Phoenix Worldwide Industries, Inc.'s chapter 11 bankruptcy case has been converted to a liquidation case under Chapter 7 of the Bankruptcy Code, pursuant to a Feb. 15 order by Judge Robert A. Mark. Donald F. Walton, the United States Trustee for Region 21, named Joel Tabas as Chapter 7 trustee pursuant to 11 U.S.C. Section 701. In accordance with his Conversion order, Judge Mark denied confirmation of the Debtor's plan of reorganization. He also denied the Debtor's attempt to postpone the confirmation hearing. Judge Mark held that the Court listened to the comments of counsel for the Debtor, argument of the United States Trustee and counsel present. He noted that the the Debtor consented to the conversion. As reported in the Troubled Company Reporter on June 29, 2010, the Plan provides for secured claims to be paid in full in equal monthly installments over a five year period with interest accruing at 5% per annum, beginning as of the effective date of the Plan. Claimants will maintain their lien until this obligation is paid in full. Under the Plan, general unsecured claims of $1,000 or less will be paid in full on the effective date of the Plan. These claims are estimated to be $14,017. General unsecured claims of $1,001 or more will be paid in equal annual installments over ten years. These claims are estimated to be $2,405,639. The holders of equity security interests in the Debtor will retain their equity interests, subject only to dilution by the proposed equity investment sought by the Debtor. The funds required for the initial payments to creditors upon the effective date will come from continued commercial operations and, if necessary, from either an exit funding facility or an equity infusion. About Phoenix Worldwide Industries Miami, Florida-based Phoenix Worldwide Industries, Inc. -- http://www.phoenixworldwide.com/-- dba Phoenix Worldwide Industries, Inc., Forensic Vehicle Division and Phoenix IVS Division develops surveillance technologies for government and law enforcement agencies. The Company filed for Chapter 11 on June 29, 2009 (Bankr. S.D. Fla. Case No. 09-23201). Jeffrey P. Bast, Esq., at Bast Amron LLP represents the Debtor. The Debtor estimated assets and debts at $10 million to $50 million. PITTSBURGH CORNING: Garlock Wants to Intervene in 12 Cases ---------------------------------------------------------- Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About Pittsburgh Corning Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy protection in 2000 (Bankr. W.D. Pa. Case No. 00-22876). The Hon. Judith K. Fitzgerald presides over the case. The Bankruptcy Court authorized the retention of Reed Smith LLP as counsel for the Debtor under a general retainer, and the retention of Deloitte & Touche LLP as accountants for the Debtor. The United States Trustee appointed a Committee of Unsecured Trade Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of Leech, Tishman, Fuscaldo & Lampl, LLC, as counsel to the Committee of Unsecured Trade Creditors, and Pascarella & Wiker, LLP, as financial advisor. The United States Trustee appointed a Committee of Asbestos Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of these professionals by the Committee of Asbestos Creditors: (i) Caplin & Drysdale, Chartered as Committee Counsel; (ii) Campbell & Levine as local counsel; (iii) Anderson Kill & Olick, P.C. as special insurance counsel; (iv) Legal Analysis Systems, Inc., as Asbestos-Related Bodily Injury Consultant; (v) L. Tersigni Consulting, P.C. as financial advisor, and (vi) Professor Elizabeth Warren, as a consultant to Caplin & Drysdale, Chartered. On Feb. 16, 2001, the Court approved the appointment of Lawrence Fitzpatrick as the Future Claimants' Representative. The Bankruptcy Court authorized the retention of Meyer, Unkovic & Scott LLP as his counsel, Young Conaway Stargatt & Taylor, LLP as his special counsel, and Analysis, Research and Planning Corporation as his claims consultant. In December 2006, the Bankruptcy Court denied confirmation of an earlier version of the plan, citing that the plan was too broad in addressing independent asbestos claims that were not associated with the Debtor. PRESIDIO INC: S&P Affirms Corporate Credit Rating at 'B+' --------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B+' corporate credit rating on Greenbelt, MD-based Presidio Inc. The rating outlook is stable. At the same time, S&P assigned a 'B+' rating to the $325 million senior secured term loan, with a recovery rating of '4', indicating S&P's expectation for average (30%-50%) recovery in the event of a payment default. Total debt proceeds, which are expected to include a partial drawdown under a $150 million accounts receivable securitization facility (currently unrated), will be used to refinance existing debt, pay a portion of the equity purchase, and for general corporate purposes. "The ratings reflect Presidio's narrow market focus, leveraged financial profile, and S&P's view that the company's private equity ownership structure is likely to preclude sustained deleveraging," said Standard & Poor's credit analyst Martha Toll- Reed. With annual revenues in excess of $1.2 billion, Presidio provides professional and managed services, focused on data networking, data center virtualization, collaboration and network security. Presidio has expanded rapidly since its founding in 2003 through a combination of organic growth and acquisitions. The company's geographic presence is limited to east of the Mississippi (and including Texas and Oklahoma). However, Presidio does not have any significant customer concentration. While Presidio's revenue base includes the resale of hardware and related products, less than half of the company's revenue base and the bulk of operating earnings are derived from its project-based services, ranging from solution design, implementation, and testing through remote network monitoring. The company's weak business risk profile reflects its narrow market focus and related supplier concentration, modest share within the larger IT services market, relative lack of geographic diversity, and modest but consistent operating margins. Nevertheless, S&P expects the company's focus on and technical expertise in data networking, as well as expected near-term revenue growth, will enable Presidio to maintain adjusted EBITDA margins of 7%-8%, which fall at the high end of peer-company margins in the value-added IT reseller market. PT-1 COMMUNICATIONS: Court Issues 4th Ruling on Tax Refund Dispute ------------------------------------------------------------------ Chief Bankruptcy Judge Carla E. Craig issued on March 3, 2011, the fourth in a series of decisions addressing the claims of the Internal Revenue Service in the bankruptcy cases of PT-1 Communications, Inc.; PT-1 Long Distance, Inc.; and PT-1 Technologies, Inc., and addressing the Debtors' counterclaims against the IRS seeking payment of tax refunds. This matter arises in the context of a motion of the Liquidating Trustee of the Liquidating Trust U/A/W PT-1 Communications, Inc., PT-1 Long Distance, Inc., and PT-1 Technologies, Inc., seeking, among other things, a tax refund of $6,913,228.53 plus interest, which was paid with the tax return for the period of March 9, 2001 - December 31, 2001. Prior decisions were issued in 2006, 2007 and 2009. Judge Craig held that the Trustee's motion seeking a tax refund is granted in part to the extent that certain deductions are allowed. A copy of the Court's decision is available at http://is.gd/AlOccWfrom Leagle.com. PT-1 Communications, Inc., PT-1 Long Distance, Inc., and PT-1 Technologies, Inc., sought chapter 11 protection (Bankr. E.D.N.Y. Case Nos. 01-12655, 01-12658, and 01-12660) on March 9, 2001. The Debtors filed their Second Amended Joint Plan of Reorganization dated as of Aug. 31, 2004, and the Bankruptcy Court confirmed that plan on Nov. 23, 2004. Laurence May, Esq., and Greg Friedman, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in New York, represent Edward P. Bond, the Liquidating Trustee of the Liquidating Trust U/A/W PT-1 Communications, Inc., PT-1 Long Distance, Inc., and PT-1 Technologies, Inc. QUEPASA CORP: Closes Stock Purchase Agreement With XtFt Games ------------------------------------------------------------- On March 2, 2011, Quepasa Corporation closed the Stock Purchase Agreement with XtFt Games S/S Ltda, the owner of substantially all of the assets of TechFront Desenvolvimento de Software S/S Ltda, a Brazilian company. The Company acquired all of the outstanding equity interests of XtFt and issued XtFt owners $3,700,000 of the Company's common stock (348,723 shares) at $10.61 per share which was based on the average closing price per share for the 10 trading days prior to the date of closing the Agreement. In addition, the Company paid a $300,000 brokerage fee. XtFt may receive a potential earnout fee of 250,000 shares of the Company's common stock based on XtFt achieving specific performance milestones. Further, under a separate agreement, the Company lent TechFront $500,000. Mr. Lars Batista, a recently appointed director of the Company, was a large shareholder of XtFt and received 140,938 shares of the Company's common stock under the Agreement. Additionally, a corporation controlled by Mr. Batista's brother received a $300,000 brokerage fee in connection with the acquisition. In a separate development, James Ferris resigned as a director of the Company on Feb. 28, 2011,. About Quepasa Corporation West Palm Beach, Fla.-based Quepasa Corporation (OTC BB: QPSA) through its Web site -- http://www.Quepasa.com/-- operates as an online social community for young Hispanics. The Company's balance sheet at Dec. 31, 2010 showed $16.45 million in total assets, $7.26 million in total liabilities and $9.19 million in total stockholders' equity. As reported in the Troubled Company Reporter on March 9, 2010, Salberg & Company, P.A. expressed substantial doubt about the Company's ability to continue as a going concern following the 2009 results. The independent auditors noted of the Company's net loss and net cash used in operating activities in 2009 of $10.58 million and $3.88 million, respectively, and a stockholders' deficit and an accumulated deficit of $3.90 million and $159.33 million, respectively, at Dec. 31, 2009. QUVIS INC: SeaCoast Wins Round in Equitable Subordination Suit -------------------------------------------------------------- WestLaw reports that a lender that, while having a right to appoint a single director to the debtor's board of directors, had no equity interest in the debtor and was but one of many creditors that had lent money to the debtor, with a similar right of access to its books and records, did not qualify as a "non-statutory insider," for equitable subordination purposes. There was no evidence that the lender obtained any uniquely available "inside" information by virtue of having one seat on the debtor's board, and subsequent transactions between the lender and the debtor were conducted at arm's length. In re QuVIS, Inc., --- B.R. ----, 2011 WL 754784 (Bankr. D. Kan.) (Nugent, J.). The Honorable Robert E. Nugent made these findings and conclusions in a summary judgment order entered on Feb. 18, 2011, in Friesen, et al. v. Seacoast Capital Partners II, L.P., Adv. Pro. No. 10- 5142 (Bankr. D. Kan.). QuVIS, Inc., located in Topeka, Kan., sells software and hardware that compresses and processes video data for various digital video applications in the medical, entertainment, and military industries. Three of QuVIS' creditors filed an involuntary Chapter 11 petition (Bankr. D. Kan. Case No. 09-10706) against the company on March 20, 2009. An order for relief (Doc. 16) was entered on May 18, 2009, by consent. The Debtor filed a Chapter 11 plan in November 2009. The Court held the disclosure statement inadequate and granted the debtor additional time to file an amended plan. None was forthcoming and the debtor advises that no further plan will be forthcoming because it lacks the resources to resolve disputes with its Noteholders. The Debtor's Schedules of Assets and Liabilities suggest the company's assets are worth $1.4 million; other papers filed with the Court indicate that 2008 sales were about $3 million. RADIENT PHARMACEUTICALS: Robert Rooks Owns 40,000 Common Shares --------------------------------------------------------------- In a Form 3 filing with the U.S. Securities and Exchange Commission, Robert Rooks, a director at Radient Pharmaceuticals Corp. disclosed that he beneficially owns 40,000 shares of common stock of Radient Pharmaceuticals Corp. About Radient Pharmaceuticals Headquartered in Tustin, Calif., Radient Pharmaceuticals Corporation -- http://www.Radient-Pharma.com/-- is engaged in the research, development, manufacturing, sale and marketing of its ONKO-SURE(TM) a proprietary IVD Cancer Test in the United States, Canada, China, Chile, Europe, India, Korea, Taiwan, Vietnam and other markets throughout the world. Radient said in October 2010 it incurred a trigger event on the 12% Convertible Notes issued in first and second quarter of 2010 due to its failure to have the related registration statement declared effective by June 1, 2010. The Company filed on Sept. 7, 2010, an Event of Default under those same notes occurred since it did not hold the related shareholder meeting by August 31, 2010. As reported in the Troubled Company Reporter on April 19, 2010, KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred a significant operating loss and negative cash flows from operations in 2009 and had a working capital deficit of $4.2 million at Dec. 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $23.56 million in total assets, $34.22 million in total liabilities, and a stockholders' deficit of $10.66 million. R.C. SAMANTA: Drops Appeal of Prior Cases' Dismissal ---------------------------------------------------- The Shawano Leader reports a few days after filing a new bankruptcy petition in Delaware, R.C. Samanta Roy Institute of Science and Technology Inc. withdrew from its appeal of a federal court decision dismissing its previous bankruptcy filing. According to the report, SIST and six of its subsidiaries originally filed for Chapter 11 bankruptcy in March 2009 but the bankruptcy court dismissed the cases in September 2009. The dismissal order was subsequently appealed to the U.S. Third Circuit Court of Appeals. SIST's withdrawal makes it the fourth SIST-related entity to drop out of the appeal to clear the way for the filing of a new petition. The report notes, previously, Midwest Properties of Shawano, LLC, Midwest Oil of Minnesota, LLC, and U.S. Acquisitions and Oil Inc. pulled out of the appeal only to refile new Chapter 11 petitions in Delaware. In those instances, the withdrawal preceded the new filing. SIST's withdrawal leaves only three SIST subsidiaries remaining in the appeal -- Midwest Oil of Wisconsin, LLC, Midwest Oil of Shawano, LLC, and Midwest Hotels & Motels, LLC, report relates. The report says the new SIST filing came about a week after a civil suit was filed seeking foreclosure of seven properties in Shawano owned by SIST. The suit filed by Marshall & Ilsley (M&I) Bank alleges SIST and its founder Avraham Cohen, formerly R.C. Samanta Roy, defaulted on a loan taken out in March 2008 consolidating previous commercial loans taken out since 2001. The total amount of the 2008 loan was $992,133, according to the civil complaint, which also states Samanta Roy -- as he was then known -- executed a commercial guaranty taking responsibility for the debt. With interest, bank costs and fees, the amount due was more than $1.16 million as of Jan. 21, according to the complaint, and has continued to mount at about $245 a day since then. The report says the properties targeted for foreclosure in the complaint include the Midwest Gift and Fudge House at 104 Old Lake Road; the property at 143-145 S. Main St., part of which is leased by Hunan's Chinese Restaurant; the former Ponderosa Restaurant building at 1247 E. Green Bay St., as well as an out-lot of that property; a property at 128 E. Green Bay St.; a property at N5670 State Highway 47-55; and a property at 1214 E. Green Bay St. About R.C. Samanta Roy Based in Wilmington, Delaware, Dr. R.C. Samanta Roy Institute of Science and Technology, Inc., filed for Chapter 11 bankruptcy protection on Feb. 21, 2011 (Bankr. D. Del. Lead Case No. 11- 10504). Rebekah M. Nett, Esq., at Westview Law Center, PLC, represents the Debtors. In their petition, the Debtors estimated both assets and debts of between $1 million and $10 million. Pending Chapter 11 cases by affiliates are: Petition Debtor Case No. Date ------ -------- ---- U.S. Aquisitions & Oil Inc. 10-14121 12/22/2010 Midwest Oil of Minnesota, LLC 11-30319 01/19/2011 Midwest Properties of Shawano, LLC 11-10407 02/08/2011 RDK TRUCK: Gets Final OK to Hire Morse & Gomez as Bankr. Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized, on a final basis, RDK Truck Sales And Service, Inc., to employ Morse & Gomez, P.A., as bankruptcy counsel. According to the Troubled Company Reporter on Feb. 11, 2011, the firm will, among other things: a. give the Debtor legal advice with respect to its duties and powers as debtor and debtor-in-possession; b. take necessary steps to set aside preferential transfers; c. prepare motions, notices, pleadings, petitions, answers, orders, reports and other legal papers required in the Debtor's bankruptcy case; and d. assist the Debtor in taking legally appropriate steps to effectuate the continued operations of the Debtor. The Debtor paid a $32,388 prepetition retainer to M&G. Of the total amount received, $7,813 is related to representation of the Debtor relating to potential work-out settlement efforts. Accordingly, the amount of $24,575 is the prepetition bankruptcy retainer. Alberto F. Gomez, Jr., Esq., a shareholder at M&G, assures the Court that the firm does not hold or represent any interest adverse to the Debtor, its estate, its creditors or any other party with an actual or potential conflict in its Chapter 11 case. Tampa, Florida-based RDK Truck Sales & Service, Inc., specializes in both the sale and rental of new and reconditioned waste management vehicles. It filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-01877) on Feb. 1, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. RDK TRUCK: Must File Disclosure Statement & Plan by April 29 ------------------------------------------------------------ The Hon. Caryl E. Delano of the U.S. Bankruptcy Court for the Middle District of Florida has required RDK Truck Sales & Service Inc. to file a Chapter 11 plan of reorganization and an explanatory disclosure statement on or before April 29, 2011. Tampa, Florida-based RDK Truck Sales & Service, Inc., specializes in both the sale and rental of new and reconditioned waste management vehicles. It filed for Chapter 11 bankruptcy protection on February 1, 2011 (Bankr. M.D. Fla. Case No. 11- 01877). The Debtor estimated its assets and debts at $10 million to $50 million. An affiliate, RDK Municipal Truck Center, Inc., also filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-01878) on Feb. 1, 2011. RDK Municipal estimated assets and debts of $1 million to $10 million as of the Chapter 11 filing. RDK TRUCK: Taps Nelson & McKay as Accountants --------------------------------------------- RDK Truck Sales and Service Inc. and RDK Municipal Truck Center Inc. ask the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Nelson & McKay CPA's LLC as their accountants. The firm is expected to assist the Debtors in preparing a Federal 2010 U.S. Income Tax Return for an S Corporation for both Debtors, plus an IRC computation for truck sales. The Debtors will pay between $1,750 and $2,000 for municipal, and $2,800 and $3,300 for truck sales. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Tampa, Florida-based RDK Truck Sales & Service, Inc., specializes in both the sale and rental of new and reconditioned waste management vehicles. It filed for Chapter 11 bankruptcy protection on February 1, 2011 (Bankr. M.D. Fla. Case No. 11- 01877). Alberto F Gomez, Jr., Esq., at Morse & Gomez, PA, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. An affiliate, RDK Municipal Truck Center, Inc., also filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-01878) on Feb. 1, 2011. RDK Municipal estimated assets and debts of $1 million to $10 million as of the Chapter 11 filing. RDK TRUCK: Taps Renaissance Consulting as Consultant ---------------------------------------------------- RDK Truck Sales and Services Inc. and RDK Municipal Truck Center Inc. ask the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Renaissance Consulting & Development LLC as their financial adviser and consultant. The firm is expected to a) evaluate the Debtors' business and assisting Debtors in the development of a strategy/plan with regard to their businesses; b) perform a financial analysis for each development plan; c) assist the Debtors in dealings and negotiations with lenders, landlords, lessors and creditors; d) assist the Debtors in securing debtor in possession financing, as may be necessary, and meeting the custodial and reporting requirements of the lenders; and e) assist the Debtors in managing and complying with the requirements imposed by the Bankruptcy Code and the Bankruptcy Court; Kevin E. Riggs, member of the firm will charge $100 per hour. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About RDK Truck Tampa, Florida-based RDK Truck Sales & Service, Inc., specializes in both the sale and rental of new and reconditioned waste management vehicles. It filed for Chapter 11 bankruptcy protection on February 1, 2011 (Bankr. M.D. Fla. Case No. 11- 01877). Alberto F Gomez, Jr., Esq., at Morse & Gomez, PA, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. An affiliate, RDK Municipal Truck Center, Inc., also filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-01878) on Feb. 1, 2011. RDK Municipal estimated assets and debts of $1 million to $10 million as of the Chapter 11 filing. REALOGY CORP: Incurs $97 Million Net Loss in 2010 ------------------------------------------------- Realogy Corporation filed its annual report on Form 10-K with the U.S. Securities and Exchange Commission. The Company reported a net loss of $97 million on $4.09 billion of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $260 million on $3.93 billion of net revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $8.02 billion in total assets, $9.10 billion in total liabilities and $1.07 billion in total deficit. "In spite of another difficult year in housing and the economy, management remained highly focused on our strategic growth initiatives," said Richard A. Smith, Realogy's chief executive officer, in a statement "The Realogy Franchise Group increased its domestic franchise sales by 56% in 2010 compared to 2009, adding new franchisees and sales associates with $332 million in franchisee gross commission income (GCI). NRT, our owned brokerage company, added $60 million of annualized GCI through the acquisition of nine companies encompassing 23 offices and more than 1,000 sales associates. Cartus strengthened its position as a global provider of relocation services through the acquisition of Primacy, as well as adding more than 140 new clients and expanding relationships with approximately 300 of its existing clients. Title Resource Group continued to develop both its lender channel and title underwriting business, further diversifying its revenue base." A full-text copy of the annual report on Form 10-K is available for free at http://ResearchArchives.com/t/s?748c About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. It has 'Caa2' corporate family rating and 'Caa3' probability of default rating, with positive outlook, from Moody's. The rating outlook is positive. Moody's said in January 2011 that the 'Caa2' CFR and 'Caa3' PDR reflects very high leverage, negative free cash flow and uncertainty regarding the timing and strength of a recovery of the residential housing market in the US. Moody's expects Debt to EBITDA of about 14 times for the 2010 calendar year. Despite the recently completed and proposed improvements to the debt maturity profile, the Caa2 CFR continues to reflect Moody's view that current debt levels are unsustainable and that a substantial reduction in debt levels will be required to stabilize the capital structure. As reported in the February 8, 2011 edition of TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Realogy Corp. to 'CCC' from 'CC'. S&P removed the rating from CreditWatch, where it was placed with positive implications Jan. 18, 2011. The rating outlook is positive. In addition, S&P revised its recovery rating on the company's non- extended senior secured credit facilities to '1', indicating its expectation of very high (90% to 100%) recovery for lenders in the event of a payment default. S&P raised its issue-level rating on this debt to 'B-' -- two notches higher than the 'CCC' corporate credit rating -- in accordance with its notching criteria for a recovery rating of '1'. RECIPROCAL ALLIANCE: Deadline for Claims Set for May 16 ------------------------------------------------------- Insurance Journal reports that Justice Russell Perkins of Tennessee's Twentieth Judicial District court has set May 16, 2011, as the final date to resolve all outstanding claims against three insolvent risk retention groups that were closed in 2003 after the failure of their Virginia reinsurer, Reciprocal of America. Insurance Journal relates that the three Tennessee companies -- the American National Lawyers Reciprocal, the Doctors Insurance Reciprocal and the Reciprocal Alliance -- were risk-retention groups that reinsured virtually all their business with Reciprocal of America, a Glenn Allen, Virginia-based Company that was placed in receivership in January 2003 after regulators discovered its liabilities exceed its assets by more than $200 million. The three risk retention groups operated under common management. Justice Perkins has imposed a final deadline of May 16 to liquidate all claims following a request by Tennessee Insurance Commissioner Julie Mix McPeak as special receiver, according to Insurance Journal. The report relates Justice Perkins said that the deadline is warranted to provide closure to what has been a long drawn out process of trying to settle the companies' estates. According to Insurance Journal, the court order states that all claims against the companies must be submitted by May 16. The court also orders that any claim submitted after the date of the order and May 16 must carry with it some explanation why the claim wasn't made earlier. Further, Insurance Journal says, the court found that all outstanding unliquidated claims must be settled at a specific dollar amount or denied by the receiver. In 2008, Virginia insurance regulators dismissed the claims of the three insolvent Tennessee risk retention groups against ROA, ruling that as reinsureds of ROA, the three insurers were general creditors and not policyholders under the Virginia insurer liquidation statute. American National Lawyers Insurance, started in 1993, is a professional liability insurance company that is completely owned by its lawyer insureds. It is licensed to do business in Tennessee and South Carolina, and provides liability coverage for about 3,100 Tennessee lawyers. The Tennessee Department of Commerce and Insurance placed American National Lawyers Insurance, along with two affiliated insurers, Doctors Insurance Reciprocal Risk Retention Group and Reciprocal Alliance Risk Retention Group, under receivership on Jan. 31, 2003. RIVER ISLAND: Section 341(a) Meeting Scheduled for April 5 ---------------------------------------------------------- The U.S. Trustee for Region 21 will convene a meeting of River Island Farms, Inc.'s creditors on April 5, 2011, at 1:00 p.m. The meeting will be held at the U.S. Courthouse, 299 E Broward Boulevard #411, Fort Lauderdale, Florida. 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. Fort Lauderdale, Florida-based River Island Farms, Inc., filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. S.D. Fla. Case No. 11-15410). Martin L. Sandler, Esq., at Sandler & Sandler By M. L. Sandler, P.A., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ROSS ENTERPRISES: Mich. App. Ct. Reverses Insurance Policy Ruling ----------------------------------------------------------------- Badger Mutual Insurance Company, Plaintiff/Counter Defendant- Appellant, v. Ross Enterprises, Inc., Defendant/Counter Plaintiff, and Suzanne Dimilia and Michael Brzezinski, Co-Personal Representatives of the Estate of Kenneth Brzezinski, Defendants- Appellees, No. 294489 (Mich. App. Ct.), is an appeal in a declaratory action arising from the death of Kenneth Brzezinski, who was killed when his vehicle was struck by a vehicle driven by Ronnie Jackson. Defendants Suzanne DiMilia and Michael Brzezinski, as co-personal representatives of the decedent's estate, filed an underlying dramshop action against Ross Enterprises, the owner of a gentlemen's club that served Mr. Jackson alcoholic beverages shortly before the accident. Defendants later amended their complaint to add a claim against Ross for negligence based on Ross's actions in arranging for a taxicab for Mr. Jackson, but then furnishing Mr. Jackson with his car and car keys and allowing him to drive away. Plaintiff, Ross's insurer under a commercial liability policy, brought the declaratory action to determine whether it had a duty to defend and indemnify Ross under the policy. The parties filed cross- motions for summary disposition. The trial court denied plaintiff's motion and granted defendants' motion in part, holding that plaintiff had a duty to defend Ross, as well as a duty to indemnify Ross up to the policy limits "to the extent the fact finder so determines negligence in Count II in the underlying action." Plaintiff appeals as of right. After the appeal was filed, Ross filed a petition for Chapter 11 bankruptcy. The Appeals Court closed the appeal with respect to Ross, but allowed the appeal to continue with respect to defendants DiMilia and Brzezinski. Badger Mut Ins Co v Ross Enterprises, Inc, unpublished order of the Court of Appeals, entered April 19, 2010. A three-man panel consisting of Justices William C. Whitbeck, and Peter D. O'Connell and Kurtis T. Wilder reverse, concluding that the trial court erred in finding that defendants' underlying negligence claim was covered by the general liability policy. A copy of the Appeals Court's March 3, 2011 order is available at http://is.gd/6eutdxfrom Leagle.com. ROSSCO HOLDINGS: Court Extends Plan Filing Deadline Until May 24 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California extended the exclusive periods of Rossco Holdings Inc. to file a Chapter 11 plan of reorganization until May 24, 2011, and solicit acceptances of that plan until July 24, 2011. About Rossco Holdings, Inc. College Station, Texas-based Rossco Holdings, Inc., filed for Chapter 11 protection on August 2, 2010 (Bankr. W.D. Tex. Case No. 10-60953). The new California Case No. of Rossco Holdings is LA10-55951BB. Ronald E. Pearson, Esq., at Pearson & Pearson, represents the Debtor. The Debtor disclosed $28,415,681 in assets and $10,567,302 in liabilities as of the Petition Date. Affiliates Monte Nido Estates, LLC; LJR Properties, Ltd.; WM Properties, Ltd.; Colony Lodging, Inc.; and Rossco Plaza, Inc., filed separate Chapter 11 petitions. ROSSCO HOLDINGS: Taps Hyatt Gidlow as Accountants ------------------------------------------------- Rossco Holdings Inc. asks the U.S. Bankruptcy Court for the Central District of California for permission to employ Hyatt, Gidlow & Company CPA as accountants. The firm will: i) assist the Debtor in gathering the Debtor's financial information and in analyzing the Debtor's financial position, assets and liabilities; ii) assist the Debtor in preparation of the Debtor's schedules, monthly operating reports and other bankruptcy reporting requirements; iii) assist the Debtor in analyzing and resolving tax matters; iv) testify at any hearings and trials as to one or more of the matters as is determined to be necessary and appropriate; and v) perform all other accounting services to the Debtor as may be required or necessary. The firm's standard rate is $75 per hour for services rendered. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Rossco Holdings, Inc. College Station, Texas-based Rossco Holdings, Inc., filed for Chapter 11 protection on August 2, 2010 (Bankr. W.D. Tex. Case No. 10-60953). The new California Case No. of Rossco Holdings is LA10-55951BB. Ronald E. Pearson, Esq., at Pearson & Pearson, represents the Debtor. The Debtor disclosed $28,415,681 in assets and $10,567,302 in liabilities as of the Petition Date. Affiliates Monte Nido Estates, LLC; LJR Properties, Ltd.; WM Properties, Ltd.; Colony Lodging, Inc.; and Rossco Plaza, Inc., filed separate Chapter 11 petitions. S & Y ENTERPRISES: Proposes Full-Payment Plan --------------------------------------------- S & Y Enterprises, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of New York on Feb. 24, 2011, a disclosure statement explaining its Chapter 11 Plan of Reorganization dated Feb. 24, 2011. Pursuant to the Plan terms, the secured claim of Capital One Bank, N.A., will be paid in full on the Effective Date of the Plan. Capital One, owed approx. $5.6 million, currently holds a mortgage lien on the Debtor's primary asset located at 130 North 4th Street (a/k/a 193 Berry Street, a/k/a 240 Bedford Ave.), in Brooklyn, New York. Priority unsecured claims of the Internal Revenue Service and the New York State Dept. of Taxation and Finance will likewise be paid in full on the Effective Date. Non-Insider General Unsecured claims totaling $33,077 will be paid in full on the Effective Date. Insider General Unsecured Claims, totaling $2,269,000, will be paid on a pro-rata basis with the proceeds remaining from the sale of the S & Y Property, after the payment of all allowed secured claims, priority unsecured claims, non-insider general unsecured claims and all administrative claims. Equity interest holders Yehuda Backer, a 99% equity interest holder, and Ruthe Backer, a 1% equity interest holder, will continue to retain their respective equity interests. In this case, the Plan Proponent believes that no classes are impaired and that holders of claims in each class are therefore not entitled to vote to accept or reject the Plan. Notwithstanding, the Debtor proposes to nevertheless send a ballot to the unimpaired secured creditors, although the Debtor as previously stated believes that they have no right to vote. The source of the funds will be from the proceeds of a sale of the real estate owned by S&Y Enterprises, LLC, and Sky Lofts to CAB Bedford LLC. The sale of the real estate of the those parties will be for the amount of $16,500,000. A complete text copy of the disclosure statement is available for free at http://bankrupt.com/misc/S&YEnterprises.DS.pdf About S & Y Enterprises, LLC Brooklyn, New York-based S & Y Enterprises, LLC, own and maintain real estate. The Company filed for Chapter 11 protection on November 11, 2010 (Bankr. E.D. N.Y. Case No. 10-50623). David Carlebach, Esq., who has an office in New York, assists the Debtor in its restructuring effort. In its amended schedules, the Company disclosed $20,200,095 in assets and $8,707,506 in liabilities. SATELITES MEXICANOS: Starts Soliciting Votes on Chapter 11 Plan --------------------------------------------------------------- Satelites Mexicanos, S.A. de C.V. disclosed on January 25, 2011 that it had reached an agreement with the holders of more than two-thirds of the outstanding principal amount of its 10 1/8% Second Priority Senior Secured Notes due 2013 regarding a comprehensive recapitalization to be effected through a prepackaged plan of reorganization to be filed in the United States Bankruptcy Court for the District of Delaware. As part of the implementation of the Prepackaged Plan, Satmex and its subsidiaries Alterna'TV Corporation and Alterna'TV International Corporation commenced a solicitation of votes on the Prepackaged Plan from holders of record as of March 3, 2011 of the Company's First Priority Senior Secured Notes due 2011, and the Company's 10 1/8% Second Priority Senior Secured Notes due 2013. The solicitation period will expire on April 4, 2011. If sufficient votes are received for the Prepackaged Plan, the Debtors intend to file voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code and seek prompt confirmation of the Prepackaged Plan. The Disclosure Statement Relating to the Joint Prepackaged Plan of Reorganization of Satelites Mexicanos, S.A. de C.V., Alterna'TV Corporation and Alterna'TV International Corporation Under Chapter 11 of the Bankruptcy Code and the Prepackaged Plan are available on the public website of the Company at http://www.satmex.com.The Disclosure Statement contains certain projected financial information and valuation analysis which are based on numerous assumptions, as set forth in the Disclosure Statement, including, without limitation, confirmation and consummation of the Prepackaged Plan in accordance with its terms; realization of the operating strategy of the Reorganized Debtors; industry performance; no material adverse changes in general business and economic conditions; adequate financing; and other matters, many of which will be beyond the control of the Reorganized Debtors. Accordingly, the Projections are only estimates and are necessarily speculative in nature. The Projections were not prepared in accordance with standards for projections promulgated by the American Institute of Certified Public Accountants or with a view to compliance with published guidelines of the Securities and Exchange Commission regarding projections or forecasts. The Projections have not been audited, reviewed, or compiled by the Debtors' independent public accountants. The Projections should be read together with the information in Part VI of the Disclosure Statement entitled "Certain Factors to be Considered," which sets forth, among other things, important factors that could cause actual results to differ from those in the Projections. The securities being offered pursuant to the proposed Prepackaged Plan will not be and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The foregoing summary of the solicitation of votes does not purport to be complete and is qualified in its entirety by the provisions of the Disclosure Statement and the Prepackaged Plan. About Satmex SAB Satelites Mexicanos, S.A. de C.V., (Satmex) is a Mexico-based satellite service provider in Latin America. Satmex's fleet offers hemispheric and regional coverage throughout the Americas. Satmex balance sheet a June 30, 2010, showed US$438.29 million in assets, US$516.55 million in liabilities, and a US78.26 million shareholders' deficit. Satmex had a net loss of US$6.12 million on US$53.06 million of revenue for the six months ended June 30, 2010, compared with a net loss of US$8.81 million on US$50.35 million of revenue for six months ended June 30, 2009. Satmex has a 'C' issuer rating and 'Ca' long term corporate family rating, with negative outlook, from Moody's Investors Service. SATELITES MEXICANOS: Has $325-Mil. Exit Financing Commitment ------------------------------------------------------------ Satelites Mexicanos, S.A. de C.V. announced in January that it had reached an agreement with the holders of more than two-thirds of the outstanding principal amount of its Second Priority Senior Secured Notes due 2013 regarding a comprehensive recapitalization to be effected through a prepackaged plan of reorganization to be filed in the United States Bankruptcy Court for the District of Delaware. The Company said early this month it has been advised that certain of the holders of Satmex's First Priority Senior Secured Notes due 2011 have retained Michael J. Sage, Esq., at Dechert LLP, and were scheduled for a March 2 organizational meeting to discuss their next steps. The Company is presently confirming that under the terms of the proposed Plan, holders of the First Priority Senior Secured Notes will be paid out in cash at par plus accrued interest without premium or penalty. To the extent not paid pursuant to a bankruptcy court order authorizing the use of cash collateral or otherwise, the accrued and unpaid fees and expenses of the indenture trustee and the collateral trustee related to the First Priority Senior Secured Notes (including the accrued and unpaid fees and expenses of their counsel and the counsel to the ad hoc committee of holders of the First Priority Senior Secured Notes) will be paid in full in cash on the effective date of the Plan. Satmex has also entered into a commitment letter with Jefferies Finance LLC providing for $325 million of committed senior secured exit financing, which may be used, along with the proceeds of the previously-announced $96.25 million fully-backstopped rights offering of equity securities to holders of Second Priority Senior Secured Notes, to, among other things, repay the First Priority Senior Secured Notes as outlined above and fund the timely completion of Satmex 8, a satellite scheduled to be launched in 2012 to replace the Company's Satmex 5 satellite. Prepackaged Plan Satelites Mexicanos has reached an agreement with the holders of more than two-thirds of the outstanding principal amount of its Second Priority Senior Secured Notes due 2013 regarding a comprehensive recapitalization to be effected through the solicitation of a prepackaged plan of reorganization to be filed in the United States bankruptcy court. The recapitalization will provide the resources for the Company to finance the timely completion of Satmex 8, a satellite scheduled to be launched in 2012 to replace the Company's Satmex 5 satellite, and to lay the groundwork for the future construction of Satmex 7, which is intended to replace the Company's Solidaridad 2 satellite. Satmex has joined in a Restructuring Support Agreement among the Supporting Holders and Holdsat Mexico S.A.P.I. de C.V., a Mexican company which was newly formed in cooperation with the Supporting Holders to effect the proposed recapitalization, and which will be majority controlled by certain Mexican partners in compliance with applicable Mexican foreign investment laws. The Plan contemplates that the recapitalization will be financed with the proceeds of an offering of up to US$325 million in aggregate principal amount of new senior secured debt financing and the proceeds of a rights offering of equity securities in the indirect parent of reorganized Satmex to eligible holders of Second Priority Senior Secured Notes in an aggregate amount of up to US$96.25 million. Eligible holders of Second Priority Senior Secured Notes will also have the right to invest in their pro rata share of a follow-on issuance of equity securities in an aggregate amount of up to $40 million, which may be called by the reorganized company for purposes of funding the construction and launch of Satmex 7. Under the terms of the Plan, holders of Satmex's First Priority Senior Secured Notes due 2011 will be paid out in cash at par plus accrued interest. Holders of Satmex's Second Priority Senior Secured Notes will receive their pro rata share of (i) a pool of equity interests in the indirect parent of reorganized Satmex (the "Parent Interests"), (ii) the Primary Rights to invest in additional Parent Interests, and (iii) the Follow-On Rights, but only to the extent that holders have exercised their Primary Rights. In the alternative, such holders may elect to receive, in lieu of the Parent Interests, Primary Rights and Follow-On Rights, a cash payment of 38 cents for every dollar of Second Priority Senior Secured Notes held by such electing holders, which payment will be funded by certain of the Supporting Holders. It is anticipated that other creditors, including trade creditors, will be paid in full under the Plan. If the Plan is consummated and certain other conditions are satisfied, existing stockholders of Satmex will receive their share of US$6.25 million under a purchase agreement with Holdsat Mexico S.A.P.I. de C.V. as part of the recapitalization transactions. The Restructuring Support Agreement provides that the Supporting Holders will vote in favor of the Plan. Furthermore, Centerbridge Partners, L.P., Monarch Alternative Capital, L.P., Moneda Asset Management, New Generation Advisors, LLC and Outrider Management, LLC and certain of their affiliates have committed to exercise all of the rights granted to them under the Plan as holders of the Second Priority Senior Secured Notes and to purchase any interests which are not subscribed by other holders. Completion of the transaction is subject to certain regulatory approvals and other conditions precedent. Lazard and its Mexican alliance partner, Alfaro, Davila y Rios, S.C., are serving as financial advisors to Satmex, and Greenberg Traurig is serving as U.S. counsel and Santamarina y Steta and Rubio Villegas & Asociados are serving as the Company's Mexican counsels. Jefferies & Company, Inc. is serving as the financial advisor to certain holders of the Second Priority Senior Secured Notes, and Ropes & Gray LLP is serving as U.S. counsel and Cervantes Sainz as Mexican counsel to this group. U.S. Bankruptcy in 2006 Satelites Mexicanos will be seeking a prepackaged bankruptcy reorganization in the U.S. less than five years after emerging from a prior U.S. Chapter 11 case. Bill Rochelle, the bankruptcy columnist at Bloomberg News, notes that litigated disputes began in May 2005, when bondholders filed an involuntary Chapter 11 petition against Satmex. The company responded in June 2005 by filing a concurso mercantil, the Mexican version of reorganization. It later asked the U.S. bankruptcy judge to dismiss the involuntary petition. A partial settlement was made in mid-2005 entailing a dismissal of the involuntary Chapter 11 petition while Satmex filed a Section 304 ancillary petition in New York, so that the bankruptcy court could assist the Mexican court by enjoining legal actions in the U.S. The Section 304 ancillary petition was the predecessor to what is now Chapter 15 for cross-border insolvencies. After reaching final agreement with bondholders to restructure $800 million in debt, the Company filed a prepackaged Chapter 11 petition in New York. The plan called for swapping US$203.4 million of senior secured floating notes for US$234.4 million in first-lien senior-secured notes, while US$320 million in 10.125% unsecured notes became US$140 million of second-lien notes and 78% of the new common stock. The prior petition disclosed assets of US$906 million against debts totaling US$743.5 million. In August 2003, Satmex defaulted on US$320 million in senior unsecured notes. It was roughly half-owned by Loral Space & Communications Ltd., with the remainder split between Mexican shareholders and the Mexican government, which had 23% of the stock. Satellite manufacturer Loral underwent its own Chapter 11 reorganization in July 2003. About Satmex SAB Satelites Mexicanos, S.A. de C.V., (Satmex) is a Mexico-based satellite service provider in Latin America. Satmex's fleet offers hemispheric and regional coverage throughout the Americas. Satmex balance sheet a June 30, 2010, showed US$438.29 million in assets, US$516.55 million in liabilities, and a US78.26 million shareholders' deficit. Satmex had a net loss of US$6.12 million on US$53.06 million of revenue for the six months ended June 30, 2010, compared with a net loss of US$8.81 million on US$50.35 million of revenue for six months ended June 30, 2009. Satmex has a 'C' issuer rating and 'Ca' long term corporate family rating, with negative outlook, from Moody's Investors Service. SEAHAWK DRILLING: Court Adjourns Sale Hearing to March 22 --------------------------------------------------------- The Hon. Richard S. Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas adjourned the pre-trial conference to March 18, 2011, at 10:00 a.m., at United States Courthouse, 1133 N. Shoreline Blvd., Second Floor, Corpus Christi Texas regarding the motion of Seahawk Drilling Inc. and its debtor-affiliates to (i) approve the sale of substantially all the Debtors' assets to Hercules Offshore Inc. free and clear of all liens, claims, encumbrances and interests; and (ii) authorize the assumption and assignment of certain executory contracts. Judge Schmidt also adjourned the final sale hearing to March 22, 2011, at 10:00 a.m. As reported in the Feb. 15, 2011 edition of the Troubled Company Reporter, the Company has filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore. A copy of the Asset Purchase Agreement with Hercules Offshore is available for free at: http://bankrupt.com/misc/SEAHAWK_DRILLING_apa.pdf The executed APA contemplates the acquisition by Hercules or one or more of its subsidiaries of substantially all of the assets and jackup rigs of the Debtors through a sale. The aggregate consideration for the Purchased Assets is: a) 22,321,425 shares of Hercules Common Stock plus b) cash in an amount equal to $25,000,012. Using the closing stock price of Hercules' stock as of February 10, 2011, the Base Aggregate Consideration would be valued at approximately $105 million before any adjustments. The Base Aggregate Consideration is to be payable at closing by the Purchaser to the Debtors. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. It filed for Chapter 11 bankruptcy protection on February 11, 2011 (Bankr. S.D. Tex. Case No. 11-20089). Affiliates Seahawk Drilling LLC (Bankr. S.D. Tex. Case No. 11- 20088), Seahawk Drilling, Inc. (Bankr. S.D. Tex. Case No. 11- 20089), Seahawk Mexico Holdings LLC (Bankr. S.D. Tex. Case No. 11- 20090), Seahawk Drilling Management LLC (Bankr. S.D. Tex. Case No. 11-20091), Seahawk Offshore Management LLC (Bankr. S.D. Tex. Case No. 11-20092), Energy Supply International LLC (Bankr. S.D. Tex. Case No. 11-20093), Seahawk Global Holdings LLC (Bankr. S.D. Tex. Case No. 11-20094), and Seahawk Drilling USA LLC (Bankr. S.D. Tex. Case No. 11-20095) filed separate Chapter 11 petitions. Berry D Spears, Esq., and Johnathan Christiaan Bolton, Esq., at Fullbright & Jaworkski L.L.P., serve as the Debtors' bankruptcy counsel. Jordan, Hyden, Womble, Culbreth & Holzer, P.C., serve as the Debtors' co-counsel. Alvarez And Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons And Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The Debtors disclosed $504,897,000 in total assets and $124,474,000 in total debts as of the Petition Date. SEAHAWK DRILLING: Shareholders Oppose 'Excessive' Breakup Fee ------------------------------------------------------------- Dow Jones' DBR Small Cap reports that shareholders of Seahawk Drilling Inc. are raising concerns about the Houston oil rig company's proposal to sell itself to a rival drilling company, saying executives have proposed an overly generous, and atypical, breakup fee and sale guidelines that would make it impossible for them to consider challenging bids. As reported in the Feb. 15, 2011 edition of the Troubled Company Reporter, the Company has filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore. A copy of the Asset Purchase Agreement with Hercules Offshore is available for free at: http://bankrupt.com/misc/SEAHAWK_DRILLING_apa.pdf The executed APA contemplates the acquisition by Hercules or one or more of its subsidiaries of substantially all of the assets and jackup rigs of the Debtors through a sale. The aggregate consideration for the Purchased Assets is: a) 22,321,425 shares of Hercules Common Stock plus b) cash in an amount equal to $25,000,012. Using the closing stock price of Hercules' stock as of February 10, 2011, the Base Aggregate Consideration would be valued at approximately $105 million before any adjustments. The Base Aggregate Consideration is to be payable at closing by the Purchaser to the Debtors. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. It filed for Chapter 11 bankruptcy protection on February 11, 2011 (Bankr. S.D. Tex. Case No. 11-20089). Affiliates Seahawk Drilling LLC (Bankr. S.D. Tex. Case No. 11- 20088), Seahawk Drilling, Inc. (Bankr. S.D. Tex. Case No. 11- 20089), Seahawk Mexico Holdings LLC (Bankr. S.D. Tex. Case No. 11- 20090), Seahawk Drilling Management LLC (Bankr. S.D. Tex. Case No. 11-20091), Seahawk Offshore Management LLC (Bankr. S.D. Tex. Case No. 11-20092), Energy Supply International LLC (Bankr. S.D. Tex. Case No. 11-20093), Seahawk Global Holdings LLC (Bankr. S.D. Tex. Case No. 11-20094), and Seahawk Drilling USA LLC (Bankr. S.D. Tex. Case No. 11-20095) filed separate Chapter 11 petitions. Berry D Spears, Esq., and Johnathan Christiaan Bolton, Esq., at Fullbright & Jaworkski L.L.P., serve as the Debtors' bankruptcy counsel. Jordan, Hyden, Womble, Culbreth & Holzer, P.C., serve as the Debtors' co-counsel. Alvarez And Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons And Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The Debtors disclosed $504,897,000 in total assets and $124,474,000 in total debts as of the Petition Date. SEAHAWK DRILLING: Section 341(a) Meeting Set for March 24 --------------------------------------------------------- Judy A. Robbins, U.S. Trustee for Region 7, will convene a meeting of creditors of Seahawk Drilling Inc. and its debtor-affiliates on March 24, 2011, at 12:45 p.m., in Room 1107, 606 North Carancahua, Corpus Christi, Texas. 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. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. It filed for Chapter 11 bankruptcy protection on February 11, 2011 (Bankr. S.D. Tex. Case No. 11-20089). Affiliates Seahawk Drilling LLC (Bankr. S.D. Tex. Case No. 11- 20088), Seahawk Drilling, Inc. (Bankr. S.D. Tex. Case No. 11- 20089), Seahawk Mexico Holdings LLC (Bankr. S.D. Tex. Case No. 11- 20090), Seahawk Drilling Management LLC (Bankr. S.D. Tex. Case No. 11-20091), Seahawk Offshore Management LLC (Bankr. S.D. Tex. Case No. 11-20092), Energy Supply International LLC (Bankr. S.D. Tex. Case No. 11-20093), Seahawk Global Holdings LLC (Bankr. S.D. Tex. Case No. 11-20094), and Seahawk Drilling USA LLC (Bankr. S.D. Tex. Case No. 11-20095) filed separate Chapter 11 petitions. Berry D Spears, Esq., and Johnathan Christiaan Bolton, Esq., at Fullbright & Jaworkski L.L.P., serve as the Debtors' bankruptcy counsel. Jordan, Hyden, Womble, Culbreth & Holzer, P.C., serve as the Debtors' co-counsel. Alvarez And Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons And Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The Debtors disclosed $504,897,000 in total assets and $124,474,000 in total debts as of the Petition Date. SEAHAWK DRILLING: US Trustee Forms Three-Member Creditors' Panel ---------------------------------------------------------------- Judy A. Robbins, U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor-affiliates. The members of the Committee are: 1) Brian C. Voegele - Temporary Chairman Pride International, Inc. 5847 San Felipe Street, Suite 3300 Houston, Texas 77057 Tel: (713)789-1400 E-mail: bvoegele@prideinternational.com 2) Celena Rousse, Sr. V.P. Offshore Towing, Inc. 11812 Hwy. 308 Larose, Los Angeles 70373 Tel: (985)798-7831 E-mail: celena@offshoretowing.com 3) Chris Dooley Dooley Tackaberry, Inc. 1515 W. 13th Street Deer Park, Texas 77536 Tel: (713)427-3127 E-mail: chris.dooley@dtihome.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtor's expense. They may investigate the Debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. It filed for Chapter 11 bankruptcy protection on February 11, 2011 (Bankr. S.D. Tex. Case No. 11-20089). Affiliates Seahawk Drilling LLC (Bankr. S.D. Tex. Case No. 11- 20088), Seahawk Drilling, Inc. (Bankr. S.D. Tex. Case No. 11- 20089), Seahawk Mexico Holdings LLC (Bankr. S.D. Tex. Case No. 11- 20090), Seahawk Drilling Management LLC (Bankr. S.D. Tex. Case No. 11-20091), Seahawk Offshore Management LLC (Bankr. S.D. Tex. Case No. 11-20092), Energy Supply International LLC (Bankr. S.D. Tex. Case No. 11-20093), Seahawk Global Holdings LLC (Bankr. S.D. Tex. Case No. 11-20094), and Seahawk Drilling USA LLC (Bankr. S.D. Tex. Case No. 11-20095) filed separate Chapter 11 petitions. Berry D Spears, Esq., and Johnathan Christiaan Bolton, Esq., at Fullbright & Jaworkski L.L.P., serve as the Debtors' bankruptcy counsel. Jordan, Hyden, Womble, Culbreth & Holzer, P.C., serve as the Debtors' co-counsel. Alvarez And Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons And Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The Debtors disclosed $504,897,000 in total assets and $124,474,000 in total debts as of the Petition Date. SEXY HAIR: Plan Confirmation Hearing on April 4 ----------------------------------------------- Judge Geraldine Mund of the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, will convene a hearing on April 4, 2011, at 9:00 a.m. to consider confirmation of the proposed Chapter 11 plan of Sexy Hair Concepts Inc. The Chapter 11 plan headed for the confirmation hearing pertains only to Sexy Hair and does not include affiliates Ecoly and Medco. The ballots must be delivered so as to be received by Kurtzman Carson Consultants, the noticing agent, no later than March 28, 2011, at 5:00 p.m., Pacific time. Ballots may be provided to KCC at the following: If by fax: (310) 751-1559 If by e-mail: sexyhairinfo@kccllc.com If by mail: Sexy Hair Ballot Processing Center c/o Kurtzman Carson Consultants LLC 2335 Alaska Avenue El Segundo, CA 90245 The last day and time to file with the Bankruptcy Court and deliver to key parties any objections to confirmation of the Plan is March 28, 2011. The Court entered an order approving the disclosure statement explaining the Chapter 11 plan on March 3, following a hearing on Feb. 25. The Debtor filed a revised Plan and Disclosure Statement on Feb. 21. Terms of Chapter 11 Plan The Debtor has secured obligations to lenders led by Bank of Montral as administrative agent, of not less than $62,580,138 under a senior secured credit facility. The Debtor has unsecured debt obligations totaling $25 million to The Northwestern Mutual Life Insurance Company on account of subordinated notes. SHC's remaining unsecured obligations, including trade debt, total approximately $4 million. The Debtor is also facing a putative class-action lawsuit alleging violations of certain advertising and competition laws, including the Lanham Act. A class proof of claim has been filed with respect to the claims asserted in the putative Class Action Lawsuit, but the Debtor and NML have reserved their rights to object to such claim on all ground, including class certification and the merits of the claim, while they have undertaken negotiations to settle the claim under the auspices of a plan of reorganization. Under the Plan, as amended, Sexy Hair, Inc., as plan sponsor, will provide a capital infusion to the Debtor. From the cash provided by SHI and ongoing operations, the Debtor is expected to have $48,726,000 amount of cash on hand on the effective date of the Plan. Buyout firm TSG Consumer Partners is the entity that controls the Plan Sponsor. Under the Plan, the Debtor will transfer certain of its assets free and clear of all liens, claims, charges or other encumbrances to the Reorganized Debtor, a newly formed corporation. The Reorganized Debtor will issue its newly created equity interests to the Plan Sponsor upon the Plan Sponsor's investment of $43 million (which amount has been increased as provided under the Amended Plan). The Reorganized Debtor will also assume $35 million of the Senior Secured Loans, pursuant to a New Credit Facility and will enter into a $5 million Exit Revolver Facility Under the new reorganization proposal, the company's largest unsecured creditor, Northwestern Mutual Life Insurance Company and Northwestern Mutual Capital Mezzanine Fund I, will receive an additional $1.5 million to $2 million. The Amended Plan treats the claims as follows: Classification Treatment -------------- --------- A-1 - Allowed Secured Lender Impaired; Senior Secured Lenders Claims will receive on account of its Allowed Claims (x) its pro rata share of Cash in an amount sufficient to reduce the aggregate outstanding amount of all Secured Lender Claims from their allowed amount to $35 million and (y) its pro rata share of 100% of the Loans under the New Term Facility. A-2 - Allowed Other Secured Unimpaired; To the extent not Claims satisfied by the Debtor prior to the Effective Date, at the option of the Reorganized Debtor, on or after the Effective Date, (i) the claim will be reinstated, (ii) a holder of the claim will receive the Collateral securing its allowed claim and any interest on the allowed claim required to be paid, or (iii) a holder will receive the treatment as to which holder and the Reorganized Debtor otherwise agree. B - Allowed Priority Non-Tax Unimpaired; Holders of the claim Claims will receive cash in an amount equal to the claim on the later of the Effective Date and the date the claim becomes an allowed priority non-tax claim, or as soon thereafter as is practicable, unless the holder and the Reorganized Debtor or the Debtor, with the consent of the Plan Sponsor, otherwise agree. C - Trade Claims Unimpaired; Claims will be assumed by the Reorganized Debtor and holders of the claim will be paid cash in the amount of 100% of its claim from the Reorganized Debtor on customary payment terms consistent with past practice, plus, if the payment is made after the date on which the payment would have been due by its terms, interest, as determined by the Bankruptcy Court, sufficient to render the Claim Unimpaired. D - Allowed General Impaired; Holders of the claim will Unsecured Claims receive its pro rata share of the Plan Trust Interests allocable to the holders on account of their claims. E - Old Equity Interests Impaired; Holders won't be entitled to, and will not receive or retain any property or interest in property on account of the Old Equity Interest. Changes to the Plan The Debtor negotiated the terms of the Plan with the secured lenders and the Plan Sponsor prepetition. After filing of the Chapter 11 case, NML -- as well as other parties -- raised and objections about the sale and negotiation process leading up to the initial version of the Investment Agreement and Plan of Reorganization. SHC, the Plan Sponsor and the Bank of Montreal disagreed with these concerns and objections. SHC and the Plan Sponsor later engaged in talks with various constituencies, including BMO, the statutory committee of unsecured creditors, the class action plaintiffs and NML. On Feb. 16, the parties reached a consensual resolution by signing a non-binding term sheet. The salient terms of the settlement are: a) The Plan Sponsor's Transaction purchase price increased by $1,092,000 b) If the closing occurs on or before April 30, 2011, the Senior Secured Lenders agree to waive $728,000 of the default interest accrued under the Credit Agreement through March 31, 2011; such default interest will stop accruing on and after March 31, 2011; c) Imperial Capital's fee, as calculation for the originally proposed transaction, to be reduced by $350,000. d) NML to withdraw its various objections to the Transaction and other SHC pleadings, including use of cash collateral. e) All parties to minimize go-forward professional fees required to consummate the Plan. f) To the extent any debtor in possession financing is necessary, the Plan Sponsor will offer a process neutral junior facility using the Plan Sponsor's $2.4 million deposit under the Investment Agreement as the source of the financing. The Amended Plan also provides that if the holder of the Class Action claim votes in favor of the Plan, the Class Action claims will be proposed to be certified as settlement class without opt- out rights and receive $1 million in Cash on the Effective Date from the Plan Trust and other non-cash agreements to be embodied in a separate settlement agreement approved by the Bankruptcy Court in full and complete satisfaction of their claims and have no other right to a distribution from the Plan Trust. A copy of the Disclosure Statement for the First Amended Chapter 11 Plan of Sexy Hair is available for free at: http://bankrupt.com/misc/SexyHair_Amended_DS.pdf Investment Agreement Approved On March 2, the bankruptcy court also approved the Debtor's request to enter into and assume an Investment Agreement with the Plan Sponsor. The principle terms of the Investment Agreement are as follows: a) Termination Fee: The Investment Agreement includes a termination fee equal to $2,340,000, payable by SHC to the Plan Sponsor; and b) Exclusivity: The Investment Agreement includes an exclusivity provision requiring that SHC and its affiliates to not (i) solicit, initiate, or encourage the submission of any proposal or offer from any person or entity relating to, or enter into or consummate any transaction relating to, the acquisition of any equity interests in SHC, or any merger, recapitalization, share exchange, sale of substantial assets (other than sales of inventory in the ordinary course of business) or any similar transaction or alternative to the Transaction, or (ii) participate in any discussions or negotiations regarding, knowingly furnish any information with respect to, assist or participate in, or facilitate in any other manner any effort or attempt by any person to do or seek any of the foregoing, except to send out notices as required under the Investment Agreement. The Plan Sponsor is represented by: D. Ross Martin, Esq. ROPES & GRAY LLP Prudential Tower, 800 Boylston, St. Boston, MA 02199 Telephone: 617-951-7266 Facsimile: 617-235-0454 E-mail: ross.martin@ropesgray.com The Senior Secured Lenders are represented by: Dimitri G. Karcazes, Esq. GOLDBERG KOHN LTD. 55 East Monroe, Suite 3300 Chicago, IL 60603 E-mail: dimitri.karcazes@goldbergkohn.com About Sexy Hair Chatsworth, California-based Sexy Hair Concepts, LLC, is an operating company engaged in the development, distribution and marketing of premium quality hair care products and brands. It outsources the production and manufacture of its various lines of premier hair care products and operates from a single facility in Chatsworth, California, that houses its corporate offices and distribution warehouse. It works with several distributors domestically and internationally, but does not maintain any other offices. Sexy Hair filed for Chapter 11 bankruptcy protection on Dec. 21, 2010 (Bankr. C.D. Calif. Case No. 10-25922). According to its schedules, Sexy Hair disclosed $78,000,000 in total assets and $91,141,147 in total debts as of the Petition Date. Sexy Hair's bankruptcy case is jointly administered with those of Ecoly International, Inc., a California corporation, and Luxe Beauty Midco Corporation. Ecoly is the lead case (Bankr. C.D. Calif. Case No. 10-25919). Scott F. Gautier, Esq., at Peitzman, Weg & Kempinsky LLP, serves as Sexy Hair's bankruptcy counsel. CRG Partners Group, LLC is the financial advisor. Imperial capital, LLC is the investment banker. Kurtzman Carson Consultants LLC has been designated as the entity that will tabulate the ballots and prepare the ballot summary in connection with Sexy Hair's proposed Chapter 11 plan. Klee, Tuchin, Bogdanoff & Stern LLP serves as counsel for the Official Committee of Unsecured Creditors. SHADY ACRES: Disclosure Statement Hearing on March 15 ----------------------------------------------------- Shady Acres Dairy filed with U.S. Bankruptcy Court for the Eastern District of California a disclosure statement explaining its Chapter 11 plan of reorganization. A hearing is set for March 15, 2011, at Fresno Courtroom 11, Department A., to consider the adequacy of the Debtor's disclosure statement. Under the Plan, the Debtor will continue to operate its dairy business at the Helm Dairy after confirmation of the Plan. The Debtor says it has made the improvements in order to increase its milk production. Such improvements will improve its ability to make payments required under the Plan. The Debtor projects that its business will generate the cash flow necessary to make all required payments to administrative claimants, creditors secured by real property, creditors secured by personal property, lessors, post-petition creditors, and to general unsecured creditors in the amounts set forth in the Plan. In addition to its current expenses, the Plan contemplates the Debtor's ability to pay its administrative claims, if any, upon the effective date of the Plan. Attorneys and accountants will be paid after approval from the Court. On the Effective Date, it is estimated that Debtor will have $105,127 in cash on hand for the payments required under the Plan. The Debtor will make payments first to its administrative claims, second to secured claims, third to allowed convenience claims, which consist of allowed general unsecured claims of $3,500 or less, and then to general unsecured claims in excess of $3,500 under the Plan. Under the plan, among other things, Debtor believes that the income received from current operations will be sufficient to repay about 22% of its unsecured claims. Payments on the convenience class of general unsecured claims will be paid a pro rata share of $4,000 within 30 days of the Effective Date. The general unsecured claims in excess of $3,500 will be paid semi- annually in the amount of $50,000 over a period of five years. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?745f A full-text copy of the Chapter 11 Plan of Reorganization is available for free at http://ResearchArchives.com/t/s?7460 About Shady Acres Dairy Visalia, California-based Shady Acres Dairy is engaged in a dairy and farming business in Fresno and Tulare Counties, California. It filed for Chapter 11 protection on August 9, 2010 (Bankr. E.D. Calif. Case No. 10-19058). Hagop T. Bedoyan, Esq., at Klein, Denatale, Goldner, Cooper, Rosenlieb & Kimball, LLP, represents the Debtor. The Company disclosed $23,953,922 in assets and $23,462,173 in liabilities as of the Petition Date. SHAMROCK DEALER: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Shamrock Dealer Services, LLC dba Fountain Valley Shamrock Car Wash 16650 Harbor Boulevard, Suite D01 Fountain Valley, CA 92708 Bankruptcy Case No.: 11-13114 Chapter 11 Petition Date: March 5, 2011 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Mark S Wallace Debtor's Counsel: Jeffrey B. Smith, Esq. CURD, GALINDO & SMITH, LLP 301 E. Ocean Boulevard, Suite 1700 Long Beach, CA 90802 Tel: (562) 624-1177 Fax: (562) 624-1178 E-mail: jsmith@cgsattys.com Scheduled Assets: $1,227,000 Scheduled Debts: $330,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-13114.pdf The petition was signed by Robert Irish, managing member. SINCLAIR BROADCAST: David Smith Discloses 36.6% Equity Stake ------------------------------------------------------------ In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, David D. Smith and his affiliates disclosed that they beneficially own 29,127,903 shares of Class A common stock of Sinclair Broadcast Group, Inc. representing 36.6% of the shares outstanding. As of Feb. 21, 2011, there were 51,211,722 shares of Class A Common Stock outstanding. About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. * * * Sinclair Broadcast has a 'B1' corporate family rating from Moody's. It has a 'B+' corporate credit rating from Standard & Poor's Ratings Services. "The CFR continues to reflect still high financial risk, nonetheless, and the inherent cyclicality of the broadcast television business, among other factors," Moody's said in August 2010. "The 'B+' rating reflects S&P's expectation that Sinclair will be able to reduce its leverage further by the end of 2010 through revenue and EBITDA growth and lower debt balances," explained Standard & Poor's credit analyst Deborah Kinzer in August. Moody's Investors Service raised its ratings for Sinclair Broadcast Group, Inc., and subsidiary Sinclair Television Group, Inc., including the Corporate Family Rating and Probability-of- Default Rating, each to Ba3 from B1, and the ratings for individual debt instruments, concluding its review for possible upgrade as initiated on August 5, 2010. Moody's also assigned a B2 (LGD 5, 87%) rating to the proposed $250 million issuance of Senior Unsecured Notes due 2018 by STG. The Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is now stable. SINCLAIR BROADCAST: Reports $75.04 Million Net Income in 2010 ------------------------------------------------------------- Sinclair Broadcast Group Inc. filed its annual report on Form 10-K with the U.S. Securities and Exchange Commission. The Company reported net income of $75.04 million on $767.18 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $138.02 million on $656.47 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.48 billion in total assets, $1.64 billion in total liabilities and $157.08 million in total deficit. A full-text copy of the Annual Report is available for free at: http://ResearchArchives.com/t/s?748d About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. * * * Sinclair Broadcast has a 'B1' corporate family rating from Moody's. It has a 'B+' corporate credit rating from Standard & Poor's Ratings Services. "The CFR continues to reflect still high financial risk, nonetheless, and the inherent cyclicality of the broadcast television business, among other factors," Moody's said in August 2010. "The 'B+' rating reflects S&P's expectation that Sinclair will be able to reduce its leverage further by the end of 2010 through revenue and EBITDA growth and lower debt balances," explained Standard & Poor's credit analyst Deborah Kinzer in August. Moody's Investors Service raised its ratings for Sinclair Broadcast Group, Inc., and subsidiary Sinclair Television Group, Inc., including the Corporate Family Rating and Probability-of- Default Rating, each to Ba3 from B1, and the ratings for individual debt instruments, concluding its review for possible upgrade as initiated on August 5, 2010. Moody's also assigned a B2 (LGD 5, 87%) rating to the proposed $250 million issuance of Senior Unsecured Notes due 2018 by STG. The Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is now stable. SOUTH BAY EXPRESSWAY: Sets April 14 Plan Confirmation ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that South Bay Expressway LP scheduled an April 14 confirmation hearing when the bankruptcy judge approved a disclosure statement last week explaining the reorganization plan under Chapter 11. According to the report, under the Plan: * Senior secured debt will be reduced from $535 million to $288 million for distribution under the plan. * There is to be no distribution to unsecured creditors with more than $600 million in claims, except for those who reduce their claims to $25,000. * Secured term-loan lenders with $363 million in debt are treated as having a $210 million secured claim and a $153 million unsecured deficiency claim. On account of the secured debt, they are to share the new secured loan and receive 68% of the new equity. The recovery for the term- loan lenders is estimated at 57.8%. * The U.S. Transportation Department, owed $172 million, will share the new secured debt and receive 32% of the new equity, for an estimated recovery of 57.8% on the secured claim. The department's secured claim is $72.6 million under the plan. The remainder, $99.4 million, is an unsecured claim. According to Mr. Rochelle, the disclosure statement says that the equity value of the reorganized toll road is $21 million. Mr. Rochelle relates that progress toward a plan had been held up by litigation until October when the bankruptcy judge ruled that the lenders' liens came ahead of mechanics' liens. About South Bay Expressway South Bay Expressway, L.P., dba San Diego Expressway, L.P., filed for Chapter 11 (Bankr. S.D. Calif. Case No. 10-04516) on March 22, 2010. Its affiliate, California Transportation Ventures Inc., also filed for bankruptcy. The Debtors developed and operate a four lane, nine mile express toll road in Southern California commonly referred to as the South Bay Expressway or State Road 125. Both estimated assets and debts of $500 million to $1 billion in their bankruptcy petitions. Robert Pilmer, Esq., at Kirkland & Ellis LLP, represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is auditor and tax advisor. Imperial Capital LLC is financial advisor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The Debtors say that as of the bankruptcy filing, they have roughly $640 million in book value of total assets and roughly $570 million in book value of total liabilities. SPOT MOBILE: Completes Sale of 5 Units for $216,250 --------------------------------------------------- On Feb. 28, 2011, Spot Mobile International Ltd. completed the final closing of a private placement with nine accredited investors, pursuant to which the Company sold to the Investors an aggregate of 5 units at a purchase price of $50,000 per Unit. Each Unit is comprised of (i) 100,000 shares of the Company's common stock, $.001 par value per share; and (ii) a three-year warrant to purchase 100,000 shares of Common Stock at an exercise price of $0.75 per share, subject to adjustment for stock splits, stock dividends, recapitalizations and similar events. In the final closing, the Company sold 5 Units and received net proceeds of approximately $216,250 after payment of placement agent fees and costs relating to the Private Placement. As previously reported, on Jan. 25, 2011, the Company completed an initial closing of the Private Placement, having sold 41 Units and received net proceeds of approximately $1.8 million. The total gross proceeds of the Private Placement were $2.3 million and the Company sold an aggregate of 46 Units comprised of 4,600,000 shares of Common Stock and Investor Warrants to purchase an additional 4,600,000 shares of Common Stock. The net proceeds from the Private Placement will be used to fund the Company's ongoing operations and to provide working capital. As of Feb. 28, 2010, the Private Placement has been terminated and no further securities will be offered in connection with the Private Placement. In consideration for services rendered as the placement agent in the Private Placement, upon the final closing, the Company paid the placement agent cash commissions and an expense allowance fee aggregating $33,750. In addition, as consideration for services rendered in connection with the Private Placement, at the final closing date of the Private Placement, the Company will sell to the placement agent (i) warrants to purchase 10,000 shares of Common Stock for each Unit sold in the private placement at an aggregate cost of $10.00, and (ii) 10,000 warrants identical to those sold to Investors. The Placement Agent Warrants will have a term of five years and will be exercisable at $0.60 per share, subject to adjustment for stock splits, stock dividends, recapitalizations and similar events. The Placement Agent Warrants will also contain weighted average anti-dilution protection, cashless exercise provisions and "piggy-back" registration rights during the lifetime of the Placement Agent Warrants. The Units were offered and sold in reliance upon exemptions from registration under the Securities Act of 1933, as amended in reliance on Section 4(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder, as transactions by an issuer not involving a public offering. The subscription agreements executed in connection with the transactions contain representations from the Investors to support the Company's reasonable belief that: (i) the Investors either received or had access to adequate information concerning the Company's operations and financial condition in order to make an informed investment decision, (ii) the Investors acquired the Units for their own account for investment purposes only and not with a view to the distribution thereof in the absence of an effective registration statement or an applicable exemption from registration, and (iii) the Investors are sophisticated within the meaning of Section 4(2) of the Securities Act and are "accredited investors" as defined by Rule 501 under the Securities Act. Neither the shares of Common Stock nor the Investor Warrants or Placement Agent Warrants, or the Common Stock issuable upon exercise thereof, have been registered under the Securities Act nor may any such securities be offered or sold absent registration or an applicable exemption from registration. The Company has agreed to file a registration statement with the Securities and Exchange Commission, within 90 days of the final closing of the Private Placement, covering the resale by the Investors of the shares of Common Stock issued in the Private Placement as well as the resale by the Investors and the placement agent of the shares of Common Stock issuable upon the exercise of the Investor Warrants and Placement Agent Warrants. Until this registration statement is declared effective by the SEC such shares of Common Stock may not be transferred or resold unless the transfer or resale is registered or unless exemptions from the registration requirements of the Securities Act and applicable state laws are available. About Spot Mobile Spot Mobile, formerly Rapid Link Incorporated -- http://www.rapidlink.com/-- is a telecommunications services company which, through its wholly owned subsidiary, provides prepaid telecommunication and transaction based point of sale activation solutions through 1,000 independent retailers in the Eastern United States. The Company also provides long distance services and plans to expand its product offering to include mobile and wireless services. The Company's balance sheet at Oct. 31, 2010 showed $2.32 million in total assets, $5.02 million in total liabilities and a $2.70 million stockholders' deficit. The Company reported a net loss of $3.56 million on $16.08 million of revenue for the year ended Oct. 31, 2010, compared with a net loss of $712,601 on $23.74 million of revenue during the prior year. STATE INSULATION: Meeting to Form Asbestos Committee Tomorrow ------------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will will hold an organizational meeting on March 10, 2011, at 10:00 a.m. in the bankruptcy case of State Insulation Corp. for the purpose of forming an Asbestos Claimants' Committee. The meeting will be held at the United States Trustee's Office, One Newark Center, 21st Floor, Room 2106, Newark, NJ 07102. Perth Amboy, New Jersey-based State Insulation Corporation filed for Chapter 11 bankruptcy protection on Feb. 23, 2011 (Bankr. D. N.J. Case No. 11-15110). Kenneth Rosen, Esq., at Lowenstein Sandler PC, serves as the Debtor's bankruptcy counsel. The Debtor estimated is assets and debts at $1 million to $10 million. STATE INSULATION: Meeting to Form Creditors Committee on March 14 ----------------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on March 14, 2011, at 10:00 a.m. in the bankruptcy case of State Insulation Corp. The meeting will be held at the United States Trustee's Office, One Newark Center, 21st Floor, Room 2106, Newark, New Jersey. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Perth Amboy, New Jersey-based State Insulation Corporation filed for Chapter 11 bankruptcy protection on Feb. 23, 2011 (Bankr. D. N.J. Case No. 11-15110). Kenneth Rosen, Esq., at Lowenstein Sandler PC, serves as the Debtor's bankruptcy counsel. The Debtor estimated is assets and debts at $1 million to $10 million. STRATEGIC AMERICAN: Completes Sale of 6.3MM Shares for $630,000 --------------------------------------------------------------- Effective on Feb. 25, 2011, Strategic American Oil Corporation completed a private placement financing involving the sale of an aggregate of 6,300,000 shares of the Company at a subscription price of $0.10 per share, for gross proceeds of $630,000. Effective on Feb. 28, 2011, the Company completed a shares-for- debt private placement involving the sale of an aggregate of 1,959,140 shares of the Company at a deemed subscription price of $0.10 per share, in settlement of an aggregate of $195,914 owed by the Company to the shares-for-debt purchasers. With respect to those issuances of shares in connection with the private placements, the Company relied on exemptions from registration under the United States Securities Act of 1933, as amended, provided by Rule 506 of Regulation D and Regulation S, based on representations and warranties provided by the purchasers of the shares in their respective subscription agreements entered into between each purchaser and the Company. In addition, in connection with the closing of the Company's previously disclosed share private placement that closed on Feb. 14, 2011, the Company has issued, effective Feb. 14, 2011, the following securities as finders' fees: (i) 1,500,000 shares at a deemed issuance price of $0.10 per share, and (ii) warrants to purchase an aggregate of 1,300,000 shares at an exercise price of $0.10, expiring on Feb. 14, 2014. In connection with the Company's previously disclosed acquisition of Galveston Bay Energy, LLC on Feb. 15, 2011, the Company has issued, effective Feb. 15, 2011, 914,634 shares at a deemed issuance price of $0.164 per share as a finder's fee. In connection with the closing of the Company's share private placement that closed on Feb. 25, 2011, the Company has issued, effective Feb. 25, 2011, warrants to purchase 260,000 shares at an exercise price of $0.10 per share, expiring on Feb. 25, 2014. In each case, the Company relied on exemptions from registration under the Securities Act provided by Section 4(2) thereunder or and Regulation S thereunder. About Strategic American Oil Corpus Christi, Tex.-based Strategic American Oil Corporation (OTC BB: SGCA) -- http://www.strategicamericanoil.com/-- is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. The Company's team of geologists, engineers, and executives leverage 3D seismic data and other proven exploration and production technologies to locate and produce oil and natural gas in new and underexplored areas. The Company's balance sheet at Oct. 31, 2010, showed $1.89 million in total assets, $2.96 million in total liabilities, and a stockholders' deficit of $1.07 million. MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt about Strategic American Oil's ability to continue as a going concern following the Company's results for the fiscal year ended July 31, 2010. The independent auditors noted that the Company has suffered losses from operations and has a working capital deficit. STRIVER REALTY: Case Summary & Largest Unsecured Creditor --------------------------------------------------------- Debtor: Striver Realty LLC 2291 7th Avenue New York, NY 10030 Bankruptcy Case No.: 11-10959 Chapter 11 Petition Date: March 5, 2011 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Cesar A. Fernandez, Esq. LAW OFFICE OF CESAR A. FERNANDEZ 2298 First Avenue, Second Floor New York, NY 10033 Tel: (212) 348-3334 Fax: (212) 348-3449 E-mail: cfernandezlaw@yahoo.com Scheduled Assets: $1,439,500 Scheduled Debts: $1,005,393 The petition was signed by Davie Simmons, managing member. The list of unsecured creditors filed together with its petition contains only one entry: Entity Case No. Petition Date ------ -------- ------------- New York City Water Board Trade Debt $5,393 P.O. Box 410 Church Street Station New York, NY 10008 SW OWNERSHIP: Asks for OK to Obtain DIP Financing From Soundview ---------------------------------------------------------------- SW Ownership LLC seeks authority from the U.S. Bankruptcy Court for the Western District of Texas to obtain postpetition secured financing from Soundview Real Estate Partners III, a Delaware limited liability company. Jay H. Ong, Esq., at Munsch Hardt Kopf & Harr, P.C., explains that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The DIP Lender has committed to provide up to $9 million. The DIP Lender will provide an initial advance of up to $1.5 million. Thereafter, the remainder of the DIP Loan will consist of monthly advances pursuant to monthly draw requests submitted by the Debtor. The DIP Loan will be secured by a first priority mortgage lien on all of the real property owned by the Debtor located in Llano County, Texas, and Burnet County, Texas, as well as a first priority lien on all other assets. The DIP Lender will also receive an allowed super priority administrative expense claim. The interest rate is 12% per annum, with a maturity date of 18 months following closing. Upon occurrence of an event of default, interest will accrue to the Lender at the lower of the sum of the contract rate and an additional 5% for a total default rate of 17% or the maximum effective interest rate allowable under applicable state or federal law on all amounts then outstanding from the date of default. Events of default include, inter alia: (i) confirmation of any plan of reorganization in this case unless it proposes (a) to treat the DIP Lender's claims in the same manner as provided in the Commitment Letter and Loan Documents, or (b) other treatment to which the DIP Lender consents, in its discretion; (ii) conversion of this case to Chapter 7 of the U.S. Bankruptcy Code, or dismissal of the case; (iii) appointment of a Chapter 11 trustee, or examiner with expanded powers, unless the DIP Lender consents; (iv) entry of an order granting relief from stay with regard to any interest in the Collateral, or approving the transfer of any of the Collateral, to a party other than the DIP Lender, or the institution of foreclosure proceedings with respect to Collateral exceeding, in any single instance, $50,000, or aggregating in excess of $250,000, other than (a) in the ordinary course of business, or (b) with the DIP Lender's consent. Upon execution of the commitment letter by the Debtor, the Debtor paid the DIP Lender an initial deposit of $50,000, to pay all the DIP Lender's reasonable fees, costs and expenses related to the DIP Loan and this case. On termination of the Commitment Letter or at the closing on the DIP Loan, any unused portion of the diligence deposit is refundable. The Debtor will pay the DIP Lender a loan fee equal to 2% of the DIP Loan; payable from proceeds of the Initial Advance. If the Debtor fails to consummate the Closing, because it received or elected to receive alternative DIP Financing, the DIP Lender is entitled to a break-up fee of $200,000, provided however that, if DIP Lender has made the Initial Advance and received the Loan Fee, then it will retain the Loan Fee in lieu of the Break-Up Fee, and the Initial Advance plus a Reduced Exit Fee of 10% of the Commitment Amount, less any portion of the Loan Fee that has already been paid, will be repaid with interest upon Debtor obtaining alternative DIP financing. Upon termination of the DIP Loan for any reason, including without limitation a payoff of the DIP Loan prior to the Maturity Date, the Debtor must pay a fee equal to the greater of: (i) all interest that has accrued and not been paid, including any interest that accrued at the Default Rate; or (ii) $1,800,000 less (a) any and all interest paid on the Loan and (b) the Loan Fee. There is an agreed Carve-Out of $250,000, to be exclusively utilized for the purpose of paying, including following a termination event or event of default under the DIP Credit Facility, United States Trustee fees and allowed administrative expenses of estate professionals, including those of any official committee or otherwise approved by the Court, provided however that the Carve-Out available to retained professionals other than those retained by the Debtor, if any, will be limited to $25,000. More information on the DIP financing is available for free at: http://bankrupt.com/misc/SW_OWNERSHIP_dipfinancing.pdf About SW Ownership Dallas, Texas-based SW Ownership, LLC, is a single member limited liability company owned by SW Ownership Holdings LLC. It owns an approximately 1600 acre residential community project known as Skywater Over Horseshoe Bay that is currently being developed in Llano and Burnet counties. SW Ownership, LLC, filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. W.D. Tex. Case No. 11-10485). Jay Ong, Esq., at Munsch Hardt Kopf & Harr, P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $50 million to $100 million and debts at $10 million to $50 million. SW OWNERSHIP: Ch 11 Case Transferred to Judge Craig Gargotta ------------------------------------------------------------ SW Ownership, LLC's Chapter 11 bankruptcy case has been reassigned to the Hon. Craig A. Gargotta of the U.S. Bankruptcy Court for the Western District of Texas. H. Christopher Mott previously handled the case. About SW Ownership Dallas, Texas-based SW Ownership, LLC, is a single member limited liability company owned by SW Ownership Holdings LLC. It owns an approximately 1600 acre residential community project known as Skywater Over Horseshoe Bay that is currently being developed in Llano and Burnet counties. SW Ownership, LLC, filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. W.D. Tex. Case No. 11-10485). Jay Ong, Esq., at Munsch Hardt Kopf & Harr, P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $50 million to $100 million and debts at $10 million to $50 million. SW OWNERSHIP: Section 341(a) Meeting Scheduled for March 29 ----------------------------------------------------------- The U.S. Trustee for Region 7 will convene a meeting of SW Ownership, LLC's creditors on March 29, 2011, at 10:00 a.m. The meeting will be held at Austin Room 118, Homer Thornberry Building, 903 San Jacinto, Austin, TX 78701. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Dallas, Texas-based SW Ownership, LLC, is a single member limited liability company owned by SW Ownership Holdings LLC. It owns an approximately 1600 acre residential community project known as Skywater Over Horseshoe Bay that is currently being developed in Llano and Burnet counties. SW Ownership, LLC, filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. W.D. Tex. Case No. 11-10485). Jay Ong, Esq., at Munsch Hardt Kopf & Harr, P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $50 million to $100 million and debts at $10 million to $50 million. SWORDFISH FINANCIAL: SIC Code Changed to 6199 - Finance Services ---------------------------------------------------------------- The SIC code for Swordfish Financial, Inc. has been changed from 3861 - Photographic Equipment and Sales to 6199 - Finance Services. About the Company Rockwall, Tex.-based Swordfish Financial, Inc., formerly Nature Vision, Inc., designed, manufactured and marketed outdoor recreation products primarily for the sport fishing and hunting markets. Based on the limited assets, product lines and resources remaining after the M&I Business Credit LLC liquidation, Swordfish Financial, Inc. has decided that there is not enough remaining of the Nature Vision operations to continue as an outdoor recreations products company and will concentrate on the business on being an asset recovery company and using the financial resources recovered to retire the Company's debts and invest in other businesses domestically and internationally. Patrick Rodgers, CPA, PA, expressed substantial doubt against Swordfish Financial Inc.'s ability as a going concern because the Company has suffered recurring losses from operations and negative cash flows from operations the past three years. The Company's balance sheet at Sept. 30, 2010 showed $3.72 million in total assets, $5.32 million in total liabilities and $1.60 million in total stockholders' deficit. TERRESTAR CORP: Proposes to Reject Elektrobit Agreements -------------------------------------------------------- In separate motion filings under their own bankruptcy proceedings, TerreStar Networks Inc. and its affiliated TSN Debtors, and TerreStar Corp. and its jointly administered affiliated debtors seek authority from Judge Sean Lane of the U.S. Bankruptcy Court for the Southern District of New York to reject certain agreements by and among the Debtors and Elektrobit, Inc. On August 10, 2007, TerreStar Networks Inc. entered into a Master Development and Licensing Agreement with Elektrobit, pursuant to which Elektrobit would assist TSN in the development of the GENUS headset. Pursuant to an amendment dated November 18, 2009, TerreStar Corp. purportedly guaranteed TSN's obligations to Elektrobit under the Licensing Agreement. On December 1, 2009, TSC entered into a Master Supply Agreement with Elektrobit, which sets the terms for the individual purchase orders for the GENUS smartphones. Pursuant to the Supply Agreement, Elektrobit provides manufacturing services, forward and reverse logistics and after-market services support for certain satellite-terrestrial smartphones, starting with the GENUS smartphone. A list of the Parties' various agreements is available for free at http://bankrupt.com/misc/TSElekCons.pdf On or about November 19, 2010, Elektrobit filed a lawsuit against TSC in the Supreme Court of the State of New York, seeking payment of outstanding receivables in the amount of $25.8 million. Elektrobit also filed a proof of claim in TSN's Chapter 11 case amounting $25.8 million. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, relates that the Debtors, working with their professional advisors, have undertaken a comprehensive review of the Agreements and have determined that any benefit derived from the Agreements is insufficient compared to the relative burden because the Debtors no longer require the services provided under the Agreements. Therefore, as part of their efforts to strengthen their business through Chapter 11, the Debtors have determined, in their business judgment, to reject the Agreements. Accordingly, pursuant to Section 365(a) of the Bankruptcy Code, the Debtors seek the Court's authority to reject the Elecktrobit Agreements nunc pro tunc to February 16, 2011. Mr. Dizengoff contends that while Section 365 does not specifically address whether the Court may order rejection to be effective retroactively, courts in this Circuit have approved retroactive effective dates for the rejection of executory contracts. He adds that the balance of equities favors authorizing the Debtors to reject the Agreements nunc pro tunc to date TerreStar Corp. filed for bankruptcy. "Without authority to reject retroactively, the Debtors may be forced to incur potential administrative expenses that the Debtors have determined in their business judgment provide no benefit to the[ir] estates and may, in fact, harm the[ir] estates," Mr. Dizengoff says. Allowing the Debtors to reject the Agreements nunc pro tunc to TSC's Petition Date will not unduly prejudice Elektrobit as it has been on notice since then that the Debtors would not be continuing the Agreements with them, Mr. Dizengoff further contends. About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which were filed on Oct. 19, 2010 . The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC is currently seeking to have its case deemed jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11- 10612 (SHL). The seven Debtor entities who seek joint administration with TSC are: * TerreStar New York Inc., * Motient Communications Inc. * Motient Holdings Inc., * Motient License Inc., * Motient Services Inc., * Motient Ventures Holdings Inc., and * MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks Inc. or TSN, the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100,000,001 to $500,000,000 in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor Bankruptcy Creditors' Service, Inc., publishes TerreStar Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by TerreStar Networks Inc. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TERRESTAR CORP: THI Files Schedules of Assets & Liabilities ----------------------------------------------------------- A. Real Property $0 B. Personal Property B.9 Interests in Insurance Policies See http://bankrupt.com/misc/THoldings_B9Insurance.pdf B.13 Business Interests and stocks TerreStar 1.4 Holdings LLC Unknown 100% Membership Interest B.16 Accounts Receivable Intercompany Receivable - Motient Venture Holdings 34,243,520 TOTAL SCHEDULED ASSETS $34,243,520 ======================================================== C. Property Claimed as Exempt N/A D. Secured Claim Colbeck Capital Management LLC $875,000 Nexbank SSB 4,308,262 E. Unsecured Priority Claims 0 F. Unsecured Non-priority Claims Jefferies & Company Inc. $350,000 TOTAL SCHEDULED LIABILITIES $5,533,262 ======================================================== About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which were filed on Oct. 19, 2010 . The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC is currently seeking to have its case deemed jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11- 10612 (SHL). The seven Debtor entities who seek joint administration with TSC are: * TerreStar New York Inc., * Motient Communications Inc. * Motient Holdings Inc., * Motient License Inc., * Motient Services Inc., * Motient Ventures Holdings Inc., and * MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks Inc. or TSN, the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100,000,001 to $500,000,000 in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor Bankruptcy Creditors' Service, Inc., publishes TerreStar Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by TerreStar Networks Inc. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TERRESTAR CORP: THI Files Statement of Financial Affairs -------------------------------------------------------- TerreStar Holdings Inc. disclosed that the second priority interest in all of the assets of the company had been transferred to Colbeck Capital Management LLC on January 28, 2011. TerreStar Holdings also disclosed that all payments related to debt counseling or bankruptcy made to its advisors and TerreStar Corp.'s advisors are listed on the statements of TerreStar Corp. Within two years prior to TerreStar Holdings' bankruptcy filing, these bookkeepers and accountants kept or supervised the keeping of its books of account and records: Personnel Dates Services Rendered --------- ----------------------- Premsingh Giridharsuryakala 06/01/09 to Present Controller Vincent Loiacono 02/16/09 to Present Chief Financial Officer TerreStar Holdings' books of accounts and records were at the custody of Messrs. Giridharsuryakala and Loiacono at the time of its bankruptcy filing. Meanwhile, Ernst & Young audited the books of account and records of the company for the fiscal year ending December 31, 2009. TerreStar Corp. has 100% of common stock ownership of Terrestar Holdings. About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which were filed on Oct. 19, 2010 . The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC is currently seeking to have its case deemed jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11- 10612 (SHL). The seven Debtor entities who seek joint administration with TSC are: * TerreStar New York Inc., * Motient Communications Inc. * Motient Holdings Inc., * Motient License Inc., * Motient Services Inc., * Motient Ventures Holdings Inc., and * MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks Inc. or TSN, the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100,000,001 to $500,000,000 in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor Bankruptcy Creditors' Service, Inc., publishes TerreStar Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by TerreStar Networks Inc. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TH PROPERTIES: Faces Third Chapter 7 Liquidation Plea ----------------------------------------------------- Patrick Lester at the Morning Call reports that Robert C. Reeves Jr. of Houston, a TH Properties real estate adviser, is now asking the U.S. Bankruptcy Court in Philadelphia to convert the Chapter 11 bankruptcy case of the Company to Chapter 7 liquidation proceedings. Mr. Reeves told the Court that he does not foresee the company being able to file a viable reorganization plan under its Chapter 11 bankruptcy status. "This court should convert the bankruptcy cases because of their continuing losses and the absence [of] a reasonable likelihood of rehabilitation, the inability of THP to effectuate a [reorganization] plan and the unreasonable delays which have been prejudicial to creditors," the Morning Call quotes wrote Mr. Reeves as stating. Mr. Reeves, according to the report, argued in court papers that TH Properties cannot legally emerge from Chapter 11 bankruptcy without approval of professionals like him who hold remaining, unpaid administrative claims. Mr. Reeves pointed out in court records that TH Properties had racked up $2.6 million in administrative expenses by the end of 2010 and "yet those providing these services received payment of approximately $385,000." Mr. Reeves said he is owed $76,854. "Failure to pay administrative professionals is considered adequate cause for seeking conversion [to Chapter 7]," Mr. Reeves wrote. Third Conversion Motion The Morning Call notes a motion to convert the case to Chapter 7 liquidation has been filed three times. U.S. Trustee Roberta A. DeAngelis on Feb. 28, 2011, filed a similar motion to convert to Chapter 7, but withdrew that motion a day later, according to court records. In December, TH Properties lender Wilmington Trust requested that the case be converted. The bank, which provided financing for THP's Village at Wynstone property in New Hanover Township, Montgomery County, eventually reached a settlement under which THP agreed to dismiss that particular property from the bankruptcy case. TH Properties co-founder Todd Hendricks said in December that his company will reorganize and has no plans of going out of business. The Company has received a number of extensions for its exclusivity period, during which it can exclusively file a revised reorganization plan. Mr. Hendricks has not said when that plan would be filed. About T.H. Properties Philadelphia-based T.H. Properties, L.P., has 12 working developments in Pennsylvania and New Jersey. Timothy Hendricks and his brother Todd started the firm in 1992. T.H. Properties and its affiliates filed for Chapter 11 bankruptcy protection on April 30, 2009 (Bankr. E.D. Pa. Case No. 09-13201). Northgate Development Company, LP (Bankr. E.D. Calif. Case No. 09-____) was among the affiliates that filed. Barry E. Bressler, Esq., at Schnader, Harrison, Segal & Lewis, LLP, and Natalie D. Ramsey, Esq., at Montgomery McCracken Walker and Rhoads LLP, represent the Debtors in their restructuring efforts. T.H. Properties estimated assets between $100 million and $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. A creditors' committee has been appointed in the Debtors' chapter 11 proceedings. Affiliate Wynstone Development Group, LP (Bankr. E.D. Calif. Case No. 10-17863) filed for Chapter 11 protection on September 14, 2010. It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. THERMOENERGY CORP: Feb. 28 Promissory Notes Extended by 1 Year -------------------------------------------------------------- On Feb. 25, 2011, ThermoEnergy Corporation entered into a Note Extension and Amendment Agreement with The Quercus Trust; Robert S. Trump; Focus Fund L.P.; Empire Capital Partners, LP; Empire Capital Partners, Ltd; and Empire Capital Partners Enhanced Master Fund, Ltd., all of whom were holders of the Company's Secured Convertible Promissory Notes due Feb. 28, 2011. Pursuant to the Note Extension and Amendment Agreement, the Old Notes were amended and restated to read in the form of Amended and Restated Secured Convertible Promissory Notes due Feb. 29, 2012 in the respective principal amounts set forth below opposite the name of each Noteholder: Principal Amount of Amended Noteholder and Restated Note ---------- --------------------------- The Quercus Trust $1,009,737 Robert S. Trump $944,335 Focus Fund L.P. $26,696 Empire Capital Partners, LP $274,106 Empire Capital Partners, Ltd $274,106 Empire Capital Partners Enhanced Master Fund $274,106 The Restated Notes bear interest at the rate of 10% per annum. The Company's obligations under the Restated Notes are secured by a pledge of substantially all of the Company's assets. The Restated Notes are convertible, in whole or in part, at any time at the election of the Noteholders, into shares of the Company's Series B Convertible Preferred Stock at the rate of $2.40 per share. In the event, prior to the maturity date of the Restated Notes, the Company pays in full those certain Amended and Restated Promissory Notes issued, as of Jan. 4, 2011, to (i) BancBoston Ventures, Inc., (ii) BCLF Ventures I, LLC, (iii) Essex Regional Retirement Board, (iv) Massachusetts Technology Development Corporation and (v) Spencer Trask Specialty Group, LLC, then simultaneously with the making of that payment the entire outstanding principal of, and accrued and unpaid interest on, the Restated Notes will automatically convert into shares of the Company's Series B Convertible Preferred Stock at the rate of $2.40 per share. In the event that (i) the closing price of the Company's Common Stock for 20 consecutive trading days equals or exceeds $0.72 per share and (ii) the daily average trading volume of the Company's Common Stock exceeds 30,000 shares for 20 consecutive trading days, then upon notice from the Company to the Noteholders, given at any time thereafter, the entire principal amount of the Restated Notes then outstanding, plus all accrued and unpaid interest thereon, will automatically convert into shares of the Company's Series B Convertible Preferred Stock at the rate of $2.40 per share. The Company has agreed that, upon conversion of all or any portion of the Restated Notes, the Company will issue to the converting Noteholder a five-year warrant for the purchase, at an exercise price of $0.30 per share, of that number of shares of our Common Stock determined by dividing (i) 200% of the amount of principal and interest so converted by (ii) $0.30. The Restated Notes contain other conventional terms, including events of default upon the occurrence of which the Restated Notes become immediately due and payable. A full-text copy of the Note Extension and Amendment Agreement is available for free at http://ResearchArchives.com/t/s?7481 About ThermoEnergy Corporation Little Rock, Ark.-based ThermoEnergy Corporation is a clean technologies company engaged in the worldwide development of advanced municipal and industrial wastewater treatment systems and carbon reducing clean energy technologies. The Company's balance sheet as of Sept. 30, 2010, showed $7 million in total assets, $18.8 million in total current liabilities, and a stockholders' deficit of $11.8 million. As reported in the Troubled Company Reporter on May 4, 2010, Kemp & Company, a Professional Association, in Little Rock, Ark., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has incurred net losses since inception and will require substantial capital to continue commercialization of the Company's technologies and to fund the Company's liabilities. TIGRENT INC: CAO's Annual Base Salary Hiked to $200,000 ------------------------------------------------------- On March 4, 2011, the Board of Directors of Tigrent Inc. made the determination to increase the annual base salary of James E. May, Chief Administrative Officer and General Counsel, to $200,000, retroactive to Jan. 1, 2011. About Tigrent Inc. Cape Coral, Fla.-based Tigrent Inc. (OTC BB: TIGE) -- http://www.tigrent.com/-- is a provider of practical, high- quality and value-based training, conferences, publications, technology-based tools and mentoring to help customers become financially literate. The Company provides customers with comprehensive instruction and mentoring in the topics of real estate and financial instruments investing and entrepreneurship in the United States, the United Kingdom, and Canada. The Company's balance sheet as of June 30, 2010, showed $43.8 million in total assets, $80.7 million in total liabilities, and a stockholders' deficit of $36.9 million. In its Form 10-Q report for the quarter ended June 30, 2010, the Company said it continues to incur a negative cash flow -- totaling $5.9 million for the period ending June 30, 2010 -- due to the on-going challenges with sales of products. "We have insufficient working capital to meet operating needs, raising substantial doubt about the ability of the Company to continue as a going concern," the Company said. In addition to the shift in strategic emphasis from live course offerings to digitally-delivered programs, the Company said it continues to implement reductions in staff to align with anticipated sales level, decreased occupancy costs, and reduced operating costs in all areas. The Company is also in current discussions with some of larger creditors to negotiate amounts owed. The Company said it if cannot generate the required revenues to sustain operations or obtain additional capital on acceptable terms, it will need to substantially revise its business plan, file for bankruptcy, sell assets or cease operations and investors could suffer the loss of a significant portion or all of their investment in the Company. TIGRENT INC: To Voluntarily Suspend SEC Reporting Obligations ------------------------------------------------------------- Tigrent Inc. announced that it has determined to effect a termination of the registration of its common stock under Section 12(g) of the Securities Exchange Act of 1934, as amended, and suspend its reporting obligations under Section 15(d) of the Exchange Act, by filing a Form 15 with the Securities and Exchange Commission on March 18, 2011. The Board of Directors has approved this action as a cost reduction measure. Suspending and, ultimately, terminating the Company's SEC reporting obligations will allow it to reduce the substantial legal, accounting and other expenses associated with reporting compliance and make those savings available for continued operation of the business. "We expect that the Company will realize significant savings by taking these steps, as we continue our efforts to control costs as part of the difficult work we have undertaken to restructure the business," said Charles F. Kuehne, Interim Chief Financial Officer of the Company. The Company is eligible to suspend its reporting obligations and deregister its common stock because it has fewer than 300 record holders of its common stock. Immediately upon the filing of the Form 15, certain reporting obligations of the Company, such as its obligation to file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, will immediately be suspended. For a period of 90 days after the filing of the Form 15, the Company will still be subject to proxy rules, Section 16 reporting obligations, and certain provisions of the Williams Act. The filing of the Form 15 will not affect the Company's obligation to file its Annual Report on Form 10-K for the year ended Dec. 31, 2010, which is expected to be filed by the Company in March 2011. Upon suspension of its reporting obligations, the Company currently intends to provide at least limited financial information to allow for public trading of Company securities on the OTC Pink Sheets, although there can no assurances that the Company will undertake to provide, or continue to provide, such limited information, or that any trading market for Company securities will exist, after the Company has filed Form 15. About Tigrent Inc. Cape Coral, Fla.-based Tigrent Inc. (OTC BB: TIGE) -- http://www.tigrent.com/-- is a provider of practical, high- quality and value-based training, conferences, publications, technology-based tools and mentoring to help customers become financially literate. The Company provides customers with comprehensive instruction and mentoring in the topics of real estate and financial instruments investing and entrepreneurship in the United States, the United Kingdom, and Canada. The Company's balance sheet as of June 30, 2010, showed $43.8 million in total assets, $80.7 million in total liabilities, and a stockholders' deficit of $36.9 million. In its Form 10-Q report for the quarter ended June 30, 2010, the Company said it continues to incur a negative cash flow -- totaling $5.9 million for the period ending June 30, 2010 -- due to the on-going challenges with sales of products. "We have insufficient working capital to meet operating needs, raising substantial doubt about the ability of the Company to continue as a going concern," the Company said. In addition to the shift in strategic emphasis from live course offerings to digitally-delivered programs, the Company said it continues to implement reductions in staff to align with anticipated sales level, decreased occupancy costs, and reduced operating costs in all areas. The Company is also in current discussions with some of larger creditors to negotiate amounts owed. The Company said it if cannot generate the required revenues to sustain operations or obtain additional capital on acceptable terms, it will need to substantially revise its business plan, file for bankruptcy, sell assets or cease operations and investors could suffer the loss of a significant portion or all of their investment in the Company. TOUSA INC: Status Conference on Committee's Plan Set for April 7 ---------------------------------------------------------------- The Honorable John K. Olson will hold a status conference at 10:00 a.m. on April 7, 2011, to talk about how to proceed with the liquidating Chapter 11 plan and disclosure statement filed by the Official Committee of Unsecured Creditors in the Chapter 11 proceeding involving TOUSA, Inc., and its debtor-affiliates. The Committee filed revised Disclosure Statement (Doc. 6890) and a revised Joint Plan of Liquidation of TOUSA, Inc. and Its Affiliated Debtors and Debtors in Possession Under Chapter 11 of the Bankruptcy Code (Doc. 6882) on Feb. 4, 2011. The Committee's plan contemplates the establishment of a liquidation trust and payment of all claims (including lender deficiency claims) in order of their statutory priority. The Committee has not delivered a liquidation analysis to the court to date. The Plan contemplates the timely and orderly monetization of the Plan Debtors' remaining assets. Other than Cash and certain Causes of Action, only limited assets remain in the Plan Debtors' Estates at this time, and the Plan contemplates the transfer of all such assets, including all Causes of Action, to a Liquidation Trust on the Effective Date for the benefit of unsecured creditors. The Liquidation Trustee, at the direction of the Liquidation Trust Committee, will supervise the liquidation of such assets, including the prosecution of Causes of Action and the distribution of Liquidation Trust Interests and/or Cash to the holders of Allowed Claims. The Liquidation Trustee will be identified in the Plan Supplement. The Plan proposes to relieve the First Lien Term Loan Lenders and Second Lien Term Loan Lenders of certain disgorgement obligations provided for in the Decision (referring to the Oct. 13, 2009 opinion and judgment in the Committee Action in favor of the Committee, as amended and replaced on Oct. 30, 2009) by honoring the Intercreditor Agreement between the First Lien Agents, the Second Lien Term Loan Agent and the Debtors. In the Decision, among other things, the First Lien Term Loan Lenders and the Second Lien Term Loan Lenders were ordered to disgorge all payments received under their respective Loan Documents, plus prejudgment interest. Specifically, the Plan provides that, in lieu of disgorgement, all payments (i) previously made to the First Lien Term Loan Lenders and the Second Lien Term Loan Lenders or (ii) in respect of the First Lien Term Loan Credit Agreement or the Second Lien Term Loan Credit Agreement that are required to be disgorged pursuant to the Decision will be deemed to have been made to the First Lien Revolver Lenders and redistributed in accordance with the waterfall provisions of the Intercreditor Agreement. The Committee believes that this approach, including the enforcement of the Intercreditor Agreement, will allow for confirmation of a plan in the Chapter 11 Cases, while preserving certain pending litigation. Based on the proposed reallocation, the remaining First Lien Revolver Claims will be paid on the Initial Distribution Date from (i) the 2007 Federal Tax Refund, (ii) a share of the Net Proceeds of the Encumbered Assets of TOUSA and (iii) Cash from the assets of the Conveying Subsidiaries, to the extent applicable and as set forth in the Plan. These distributions will result in the First Lien Revolver Claims being paid in full pursuant to the Plan. The Prepetition Secured Lenders may challenge the application of the Intercreditor Agreement and the treatment of the First Lien Revolver Claims under the Plan. Unsecured creditors (other than unsecured creditors at Beacon Hill, who will receive Cash) will receive Liquidation Trust Interests in the series corresponding to the Plan Debtor against which such unsecured creditor holds a Claim. Accordingly, there will be 37 different series of Liquidation Trust Interests - one for each Plan Debtor (other than Beacon Hill) - entitling unsecured creditors to Cash distributions from the Liquidation Trust as the remaining assets of the Plan Debtors against which they hold Allowed Claims are liquidated and Liquidation Trust Causes of Action are settled or resolved by Final Order. In addition, the Plan provides for the distribution of a series of Subordinated Note Liquidation Trust Interests at each applicable Plan Debtor to holders of Subordinated Note Claims and PIK Note Claims. Distributions in respect of Subordinated Note Liquidation Trust Interests will only be made if Senior Debt (as defined in the Subordinated Note Indentures or the PIK Note Indenture, as applicable) at the applicable entity is paid in full (including postpetition interest). The Committee does not project that any distributions will be made on account of such Subordinated Note Liquidation Trust Interests. The Official Committee of Unsecured Creditors of TOUSA, Inc., et al., is represented by: Patricia A. Redmond, Esq. STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON, P.A. 150 West Flagler Street Miami, FL 33130 Tel: (305) 789-3553 Fax: (305) 789-3395 E-mail: predmond@stearnsweaver.com - and - Daniel H. Golden, Esq. Philip C. Dublin, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 A complete text of the Committee's revised proposed disclosure statement for the Debtors is available for free at: http://bankrupt.com/misc/tousa.committeerevisedDS.pdf About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. TOUSA INC: Creditors Lose $316 Million Loan Appeal -------------------------------------------------- Bankruptcy Law360 reports that Judge Adalberto Jordan of the U.S. District Court for the Southern District of Florida on Friday upheld a bankruptcy court's order blocking creditors of Tousa Inc. from attempting to claim $316 million in loans made to the homebuilder. About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. The Official Committee of Unsecured Creditors filed a Chapter 11 plan and explanatory disclosure statement for Tousa on July 16, 2010. TOUSA INC: Seeks OK of Settlement with Michael J. Contracting ------------------------------------------------------------- TOUSA, Inc., et al., ask the U.S. Bankruptcy Court for the Southern District of Florida to approve the settlement and release between the Debtors and Michael J. Contracting, Inc., pursuant to which the parties agreed to resolve the specific claims the parties raised against one other with respect to the preference case and the transferred case. The preference case refers to the adversary proceeding filed by the Debtors in the Bankruptcy Court to recover certain prepetition preferential transfers allegedly made by the Debtors to Michael J. Valente Contracting, Inc., bearing Case No. 10-02417-JKO. The Transferred case refers to the action commenced against the Debtors and certain of the Debtors' directors and officers, Case No. CV2009-036318, in the Superior Court of the State of Arizona, County of Maricopa, which was transferred to the Bankruptcy Court and assigned Adv. Pro. No. 10-03666-JKO. Pursuant to the settlement, the parties will exchange General Releases against one another. The parties cited that the expense, inconvenience and delay that would be caused by litigating the Preference Case and the Transferred Case would not be in the best interest of the Debtors' estates and the creditors of the estates. About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. TOUSA INC: District Judge Affirms Dismissal of Claims vs. Lenders ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports the official committee of unsecured creditors for Tousa Inc. lost another appeal when U.S. District Judge Adalberto Jordan in Miami ruled on March 4 that the bankruptcy judge was correct when he dismissed some of the creditors' claims against secured lenders. Mr. Rochelle recounts that the bankruptcy judge had authorized the creditors' committee to file suits alleging defects in the lenders' pre-bankruptcy security agreements. Some of the claims related to the amendment in July 2007 of an existing revolving credit which was secured by liens on property of Tousa and its operating subsidiaries. The bankruptcy judge, Mr. Rochelle discloses, dismissed portions of the committee's suit contending that advances later made on the revolving credit were fraudulent transfers. Judge Jordon upheld the ruling of the bankruptcy judge who held there could be no fraudulent transfers as to categories property that were collateral before the July 2007 refinancing. According to Mr. Rochelle, Tousa's senior Transeastern lenders won a major victory when Alan S. Gold, another district judge Miami, ruled on Feb. 11 that there was no fraudulent transfer when operating subsidiaries pledged their assets to secure new loans taken out to refinance and bail out a joint venture in which Tousa had an interest. The reversal in February is 3V Capital Master Fund Ltd. v. Official Creditors' Committee of Tousa Inc. (In re Tousa Inc.), 10-60017, U.S. District Court, Southern District Florida (Miami). About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. The Official Committee of Unsecured Creditors filed a Chapter 11 plan and explanatory disclosure statement for Tousa on July 16, 2010. TRANSWEST RESORT: Has Use of Cash Collateral Until May 20 --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona entered, on March 1, 2011, its second interim order granting Transwest Tucson Property, L.L.C., and Transwest Hilton Head Property, L.L.C., permission to use cash collateral of JPMCC 2007-C1 Grass Lodging LLC until May 20, 2011, to pay necessary operational expenses, and certain capital expenses as set forth in a 12 week cash flow budget (subject to a 5% variance per line item). Senior Lender, by virtue of the assignment by the original lender (JP Morgan Chase Bank) of the Loan Documents, asserts liens in the Debtors' Hilton Head (South Carolina) and Tucson (Arizona) hotel properties, including all Rents, all present and future Leases, and proceeds from the hotel properties, which constitute cash collateral, to secure total obligations of $209 million granted to the Debtors. The Debtors however contend that they have the ability to avoid the Senior Lender's lien against the monies accumulated in the Starwood Controlled Operating Accounts as of the petition date. The Senior Lender contests this and asserts that its lien against the Starwood Account Funds constitute its cash collateral. Debtors and Senior Lender, however, have agreed to resolve this dispute by agreeing that certain of the Starwood Account Funds will be considered the Senior Lender's Cash Collateral and that certain of the Starwood Account Funds totaling $1,250,000 (the "Settlement Funds") will be treated as unencumbered and therefore available to pay administrative expenses and unsecured and priority creditors in accordance with the Bankruptcy Code. The Debtors and Senior Lender will simultaneously seek approval of this agreement by separate motion. As adequate protection, Senior Lender is granted, (a) first priority replacement liens and security interests in all assets of the Debtors' estates (both pre-petition and postpetition assets) to the same extent as Senior Lender's pre-petition liens and security interests (the "Post-Petition Collateral"; and (b) a priority claim for and in equal amount to the aggregate diminution in value of Senior Lender's interest in the Pre-Petition Collateral superior to all administrative expenses or priority claims of the kind specified in or ordered pursuant to Sections 105, 326, 327, 328, 330, 331, 364, 503(b), 506(c), 507(a), 507(b), 726 or 1114 of the Bankruptcy Code, including, without limitation, administrative expenses arising in connection with any superseding proceeding under Chapter 7 of the Bankruptcy Code. As additional adequate protection for the continued use of Cash Collateral, and the other benefits provided for the Debtors and their estates, Senior Lender will be entitled to adequate protection payments in accordance with Section 361(1) of the Bankruptcy Code. Such adequate protection payments will be made by the fifteenth (15th) day of each month for the immediately preceding month, and will consist of (i) a minimum monthly payment of $200,000; and (ii) all income received by the each of the Debtors (excluding any Pass-Through Payments) in excess of the Minimum Payment and amounts required to be expended under the Budgets and the minimal working capital amounts for each property in an amount agreed on by Debtors and Senior Lender as reflected on the Budgets (the "Adequate Protection Payments"). The Debtors' right to utilize Cash Collateral under the terms of this Second Interim Order will immediately terminate upon the occurrence of certain conditions, including, among other things, (a) non-compliance by the Debtors with any of the express terms or provisions of this Second Interim Order; (b) entry of an order by the Bankruptcy Court converting or dismissing either of the Debtors' cases; (c) entry of an order by the Bankruptcy Court appointing a Chapter 11 trustee or Chapter 7 trustee in the Debtors' Cases; and failure of either Debtor to remit the Adequate Protection Payments. The Senior Lender is represented by: Ethan B. Minkin, Esq. Jaclyn D. Foutz, Esq. Dean C. Waldt, Esq. Jon Theodore Pearson, Esq. BALLAR SPAHR LLP 1 E. Washington Street, Suite 2300 Phoenix, AZ 85004 A complete text of the second interim cash collateral order is available for free at: http://bankrupt.com/misc/TranswestResort.2ndCCorder.pdf Transwest Properties, Inc., acquired the Debtor and luxury resorts the Westin La Paloma Resort and Country Club in a $270 million leveraged stock purchase transaction that closed on December 5, 2007. Transwest Partners brought $30 million cash to the transaction. The balance of the transaction was accomplished through a $209 million mortgage loan secured by the Resorts, a $21.5 million mezzanine loan, and a $10 million junior mezzanine carry-back loan from the seller. The Mortgage Loan is evidenced by two promissory notes dated December 5, 2007 -- the A-1 Note in the original principal amount of $105 million, and the A-2 Note in the original principal amount of $104 million -- and executed on behalf of each of the Property Entities as co-makers. The Mortgage Notes are secured by a Deed of Trust Assignment of Leases and Rents, Security Agreement and Fixture Filing encumbering the La Paloma Resort and by a Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing. The original mortgage lender sold the Mortgage Notes into two separate Commercial Mortgage Backed Securities Trusts. The A-1 Note is owned by Wells Fargo Bank, NA, as trustee for J.P. Morgan Chase Commercial Mortgage Securities Trust 2007-C1, and the A-2 Note is owned by Bank of America, N.A., as trustee for J.P. Morgan Chase Commercial Mortgage Securities Trust 2008-C2. Pursuant to an intercreditor agreement, the trustee for the 2007-C1 CMBS Trust is the beneficiary of the Arizona Deed of Trust and the South Carolina Mortgage, and the collateral agent for the Mortgage Lenders. The Mortgage Loan is administered by a servicer- presently LNR Partners, LLC, which took over special servicing of the Mortgage Loan on June 1, 2010, from Midland Loan Services. The Debtors said that the mortgage lenders will be adequately protected by the continuing operating profits, by a replacement lien in the receipts generated post-petition, by the new post- petition cash management regime that transparently segregates accumulating cash collateral, and by the improved operating performance of the Resorts that result from the capital expenditures. About Transwest Resort Tucson, Arizona-based Transwest Resort Properties, Inc., filed for Chapter 11 bankruptcy protection on November 17, 2010 (Bankr. D. Ariz. Case No. 10-37134). Kasey C. Nye, Esq., and Elizabeth S. Fella, Esq., at Quarles & Brady LLP, in Tucson, Ariz., assist the Debtor in its restructuring effort. The Debtor estimated its assets at up to $50,000 and debts at $10 million to $50 million. Affiliates Transwest Hilton Head Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37170), Transwest Tucson Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37160), Transwest Tucson II, L.L.C. (Bankr. D. Ariz. Case No. 10-37151), and Transwest Hilton Head II, L.L.C. (Bankr. D. Ariz. Case No. 10-37145) filed separate Chapter 11 petitions on November 17, 2010. Transwest Hilton Head Property estimated its assets at $10 million to $50 million and debts at $100 million to $500 million. Transwest Tucson Property estimated its assets at $50 million to $100 million and debts at $100 million to $500 million. TRANSWEST RESORT: Taps BeachFleischman PC as Tax Preparer --------------------------------------------------------- Transwest Properties, Inc., et al., ask the U.S. Bankruptcy Court for the District of Arizona for authority to employ BeachFleischman PC as tax preparer and advisor, accountant and auditor to the Debtors effective as of the petition date. Pre-petition, BeachFleischman provided tax and accounting services to the Debtors. BeachFleischman had also begun preparation of the Debtors' 2009 tax returns, including federal tax returns and approximately twelve individual state tax returns. To the best of the Debtors' knowledge, BeachFleischman and its partners and employees who will render services to the Debtors do not represent or hold any interest adverse to the Debtors or the estates in connection with their services. The customary hourly rates charged by BeachFleischman professionals are: Jay Senkerik, Partner $215 per hour Karen McCloskey, Partner $225 per hour Bryan Eto, Partner $205 per hour Marc Fleischman, Partner $310 per hour Svetlana Pitman, Supervisor $135 per hour Transwest Properties, Inc., acquired the Debtor and luxury resorts the Westin La Paloma Resort and Country Club in a $270 million leveraged stock purchase transaction that closed on December 5, 2007. Transwest Partners brought $30 million cash to the transaction. The balance of the transaction was accomplished through a $209 million mortgage loan secured by the Resorts, a $21.5 million mezzanine loan, and a $10 million junior mezzanine carry-back loan from the seller. The Mortgage Loan is evidenced by two promissory notes dated December 5, 2007 -- the A-1 Note in the original principal amount of $105 million, and the A-2 Note in the original principal amount of $104 million -- and executed on behalf of each of the Property Entities as co-makers. The Mortgage Notes are secured by a Deed of Trust Assignment of Leases and Rents, Security Agreement and Fixture Filing encumbering the La Paloma Resort and by a Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing. The original mortgage lender sold the Mortgage Notes into two separate Commercial Mortgage Backed Securities Trusts. The A-1 Note is owned by Wells Fargo Bank, NA, as trustee for J.P. Morgan Chase Commercial Mortgage Securities Trust 2007-C1, and the A-2 Note is owned by Bank of America, N.A., as trustee for J.P. Morgan Chase Commercial Mortgage Securities Trust 2008-C2. Pursuant to an intercreditor agreement, the trustee for the 2007-C1 CMBS Trust is the beneficiary of the Arizona Deed of Trust and the South Carolina Mortgage, and the collateral agent for the Mortgage Lenders. The Mortgage Loan is administered by a servicer- presently LNR Partners, LLC, which took over special servicing of the Mortgage Loan on June 1, 2010, from Midland Loan Services. The Debtors said that the mortgage lenders will be adequately protected by the continuing operating profits, by a replacement lien in the receipts generated post-petition, by the new post- petition cash management regime that transparently segregates accumulating cash collateral, and by the improved operating performance of the Resorts that result from the capital expenditures. Tucson, Arizona-based Transwest Resort Properties, Inc., filed for Chapter 11 bankruptcy protection on November 17, 2010 (Bankr. D. Ariz. Case No. 10-37134). Kasey C. Nye, Esq., and Elizabeth S. Fella, Esq., at Quarles & Brady LLP, in Tucson, Ariz., assist the Debtor in its restructuring effort. The Debtor estimated its assets at up to $50,000 and debts at $10 million to $50 million. Affiliates Transwest Hilton Head Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37170), Transwest Tucson Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37160), Transwest Tucson II, L.L.C. (Bankr. D. Ariz. Case No. 10-37151), and Transwest Hilton Head II, L.L.C. (Bankr. D. Ariz. Case No. 10-37145) filed separate Chapter 11 petitions on November 17, 2010. Transwest Hilton Head Property estimated its assets at $10 million to $50 million and debts at $100 million to $500 million. Transwest Tucson Property estimated its assets at $50 million to $100 million and debts at $100 million to $500 million. TRANSWEST RESORT: Wants Plan Filing Period Extended to Aug. 11 -------------------------------------------------------------- Transwet Properties, Inc., et al., ask the U.S. Bankruptcy Court for the District of Arizona to extend their 120-day exclusive period to file a plan to Aug. 11, 2011, and their 180-day exclusive period to solicit acceptance of that plan to Oct. 17, 2011. The Debtors state that they need additional time to negotiate a consensual plan of reorganization with their creditors without the interference of competing plans. The Debtors aver that they have already made significant progress in negotiating with their creditor on a number of issues, especially those relating to budgeting and use of cash, but that the initial stabilization phase of the Reorganization Cases has taken longer than expected. Transwest Properties, Inc., acquired the Debtor and luxury resorts the Westin La Paloma Resort and Country Club in a $270 million leveraged stock purchase transaction that closed on December 5, 2007. Transwest Partners brought $30 million cash to the transaction. The balance of the transaction was accomplished through a $209 million mortgage loan secured by the Resorts, a $21.5 million mezzanine loan, and a $10 million junior mezzanine carry-back loan from the seller. The Mortgage Loan is evidenced by two promissory notes dated December 5, 2007 -- the A-1 Note in the original principal amount of $105 million, and the A-2 Note in the original principal amount of $104 million -- and executed on behalf of each of the Property Entities as co-makers. The Mortgage Notes are secured by a Deed of Trust Assignment of Leases and Rents, Security Agreement and Fixture Filing encumbering the La Paloma Resort and by a Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing. The original mortgage lender sold the Mortgage Notes into two separate Commercial Mortgage Backed Securities Trusts. The A-1 Note is owned by Wells Fargo Bank, NA, as trustee for J.P. Morgan Chase Commercial Mortgage Securities Trust 2007-C1, and the A-2 Note is owned by Bank of America, N.A., as trustee for J.P. Morgan Chase Commercial Mortgage Securities Trust 2008-C2. Pursuant to an intercreditor agreement, the trustee for the 2007-C1 CMBS Trust is the beneficiary of the Arizona Deed of Trust and the South Carolina Mortgage, and the collateral agent for the Mortgage Lenders. The Mortgage Loan is administered by a servicer- presently LNR Partners, LLC, which took over special servicing of the Mortgage Loan on June 1, 2010, from Midland Loan Services. The Debtors said that the mortgage lenders will be adequately protected by the continuing operating profits, by a replacement lien in the receipts generated post-petition, by the new post- petition cash management regime that transparently segregates accumulating cash collateral, and by the improved operating performance of the Resorts that result from the capital expenditures. Abut Transwest Resort Tucson, Arizona-based Transwest Resort Properties, Inc., filed for Chapter 11 bankruptcy protection on November 17, 2010 (Bankr. D. Ariz. Case No. 10-37134). Kasey C. Nye, Esq., and Elizabeth S. Fella, Esq., at Quarles & Brady LLP, in Tucson, Ariz., assist the Debtor in its restructuring effort. The Debtor estimated its assets at up to $50,000 and debts at $10 million to $50 million. Affiliates Transwest Hilton Head Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37170), Transwest Tucson Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37160), Transwest Tucson II, L.L.C. (Bankr. D. Ariz. Case No. 10-37151), and Transwest Hilton Head II, L.L.C. (Bankr. D. Ariz. Case No. 10-37145) filed separate Chapter 11 petitions on November 17, 2010. Transwest Hilton Head Property estimated its assets at $10 million to $50 million and debts at $100 million to $500 million. Transwest Tucson Property estimated its assets at $50 million to $100 million and debts at $100 million to $500 million. TRIBUNE CO: Final Bids for Freedom Comms' Assets Due Thursday ------------------------------------------------------------- The Wall Street Journal's Mike Spector and Anupreeta Das report that people familiar with the matter said final bids are due Thursday in the auction of Freedom Communications Inc. They said possible bidders include Denver Post publisher MediaNews Group Inc.; Tribune Co.; Gores Group; and Platinum Equity, owner of the San Diego Union Tribune. According to the Journal, Freedom is giving bidders several options. Suitors can make offers for the entire company or they can separately bid on Freedom's eight television stations, its more than 100 daily and weekly newspapers or the Orange County Register alone. Investment bank Moelis & Co. is advising Freedom on the auction. The Journal relates Freedom said it "continues its review of a wide variety of strategic options" but declined to comment further. According to the Journal, it remained unclear what prospective bidders might offer for Freedom's assets and which pieces each might pursue. The entire company won't likely fetch more than $1 billion, said people familiar with the matter. The sources told the Journal Freedom's television stations could go for about $400 million, or eight times the division's earnings before interest, taxes, depreciation and amortization. The Register and other newspapers could fetch around $350 million, or about four times that division's $90 million in such earnings, these people said. According to the Journal, people familiar with the matter cautioned that a number of complexities surround potential offers and it will take time to finalize a transaction: (A) Hedge fund Alden Global Capital owns shares of both MediaNews and Freedom. The Journal recounts MediaNews' holding company last year restructured through a quick bankruptcy, emerging owned by several hedge funds including Alden. Alden has been studying folding some of its newspaper holdings into a single company. Besides stakes in MediaNews and Freedom, Alden also acquired stakes in the publisher of the Philadelphia Inquirer and the Journal Register Co. through bankruptcy proceedings and is poised to own part of Tribune when it emerges from Chapter 11 protection sometime this year. (B) Hedge fund, Angelo, Gordon & Co., also holds a stake in Freedom and is also set to own part of Tribune. (C) Some bids could be complicated by antitrust issues. Tribune, for instance, owns the Los Angeles Times, a nearby competitor to the Register. Tribune's bankruptcy could also muddle bidding plans . Still, Tribune has been doing due diligence on Freedom's assets and continues to weigh a bid. According to the Journal, a separate person familiar with the matter said Gores Group, whose holdings include radio station operator Westwood One Inc., plans to make a bid for Freedom assets by Thursday. Gores hasn't decided on which assets to bid, and is "looking at all of it," this person said. Another source told the Journal that Platinum Equity is looking at Freedom's assets, but is not rushing to make an acquisition. About Affiliated Media Denver, Colorado-based Affiliated Media, Inc., is the holding company for the MediaNews Group family of newspapers, the nation's second-largest newspaper publisher by circulation and owner of 54 daily newspapers, over 100 non-daily newspapers, as well as Web sites, television and radio broadcasters that serve markets in 12 states. The Company filed for Chapter 11 bankruptcy protection on January 22, 2010 (Bankr. D. Delaware Case No. 10-10202). Hughes Hubbard & Reed LLP, served as the Debtor's general bankruptcy counsel, while Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, served as the Debtor's co-bankruptcy counsel. Carl Marks Advisory Group LLC acted as the Debtor's restructuring advisor; Rothschild Inc., the Debtor's financial advisor; and Epiq Bankruptcy Solutions, LLC, the Debtor's claims agent. The Company estimated $100 million to $500 million in assets and $500 million to $1 billion in liabilities. The Hon. Kevin J. Carey confirmed the Company's plan of reorganization on March 4, 2010, less than six weeks after the bankruptcy filing. The Company had reached agreement pre-bankruptcy with its lenders on terms of the plan, which reduces the Company's debt from $930 million to $165 million and involves no management change or change of control of the Company. The Plan gives holders of senior notes aggregating $583.1 million 88% of the common stock, the proceeds of $150 million secured term loan and certain cash payments. Holders of general unsecured claims retain their claims or would be paid in full. Holders of $326 million in subordinated notes would receive warrants to purchase stock of the reorganized company. Holders of equity interests were wiped out. Affiliated Media emerged from Chapter 11 protection in March 2010. 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 Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America 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. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. 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) About Freedom Communications Freedom Communications, headquartered in Irvine, Calif., is a national privately owned media company operating print publications, broadcast television stations and interactive businesses. The company's print portfolio includes approximately 100 daily and weekly publications, plus ancillary magazines and other specialty publications. The broadcast company's stations -- five CBS, two ABC network affiliates and one CW affiliate -- reach more than 3 million households across the country. The Company's news, information and entertainment websites complement its print and broadcast properties. Freedom Communications filed for Chapter 11 on Sept. 1, 2009 (Bankr. D. Del. Case No. 09-13046). Attorneys at Young Conaway Stargatt & Taylor, and Latham & Watkins LLP served as Chapter 11 counsel. Houlihan, Lokey, Howard & Zukin, Inc., served as financial advisors while AlixPartners LLC served as restructuring consultants. Logan & Co. served as claims and notice agent. Freedom Communications had $757,000,000 in assets against debts of $1,077,000,000 as of July 31, 2009. The Bankruptcy Court confirmed Freedom Communications' Plan of Reorganization on March 9, 2010. The Plan became effective April 30, 2010. The Plan, which was supported by the Steering Committee of the Company's secured lenders and the Official Committee of Unsecured Creditors, eliminated $450 million of debt from Freedom's balance sheet. TRIDIMENSION ENERGY: March 23 Hearing on Liquidating Plan Outline ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas has scheduled a hearing for March 23, 2011, at 1:30 p.m., to consider the Disclosure Statement for the TriDimension Energy, L.P., and its affiliated debtors' Joint Plan of Liquidation filed by the Debtors on Feb. 18, 2011. Objections, if any, to the Disclosure Statement must be in writing and filed with the Court and served upon counsel for the Debtors on or before March 18, 2011 at 4:00 p.m. The Plan contemplates the creation of a Liquidating Trust to liquidate certain Liquidating Trust Assets and distribute any remaining funds (after the payment of certain Allowed Claims), in accordance with the Plan, to holders of Allowed Senior Lien Deficiency Claims and Allowed Non-Senior Lien General Unsecured Claims. Under the Plan, holders of Allowed Senior Lien Secured Claims will be paid the Remaining Sale proceeds after the funding of various Reserve Accounts. Holders of Allowed Senior Lien Deficiency Claims will receive their Pro Rata share of (a) Series A Liquidating Trust Interests and (b) distributions of Available Cash from the Series A Distribution Reserve on account of such Liquidating Trust Interests in accordance with the terms of the Plan if and when available for distribution. Holders of Allowed Non-Senior Lien General Unsecured Claims will receive their Pro Rata share of (a) Series B Liquidating Trust Interests and (b) distributions of Available Cash from the Series B Distribution Reserve on account of such Liquidating Trust Interests in accordance with the terms of the Plan if and when available for distribution. All existing Equity Interests in or of the Debtors will be cancelled, terminated and extinguished and, except as set forth in the Plan, will have no rights or Entitlements. Counsel for the L.P. Debtors may be reached at: William L. Wallander, Esq. Clayton T. Hufft, Esq. Beth Lloyd, Esq. Bradley R. Foxman, Esq. VINSON & ELKINS LLP Trammell Crow Center 2001 Ross Avenue, Suite 3700 Dallas, TX 75201-2975 Tel: (214) 220-7700 Fax: (214) 220-7716 E-mail: bwallander@velaw.com chufft@velaw.com blloyd@velaw.com bfoxman@velaw.com Counsel for the GP Debtors may be reached at: Peter Franklin, Esq. Erin K. Lovall, Esq. FRANKLIN SKIERSKI LOVALL HAYWARD LLP 10501 N. Central Expressway, Suite 106 Dallas, TX 75231 Tel: (972) 755-7100 Fax: (972) 755-7110 E-mail: pfranklin@fslhlaw.com elovall@fslhlaw.com A complete text of the Disclosure Statement is available for free at http://bankrupt.com/misc/TriDimensionEnergy.DS.pdf About TriDimension Energy TriDimension Energy, L.P., and seven of its affiliated companies, prior to Dec. 8, 2010, operated in the oil and gas industry. The Debtors' core operations consisted of exploration for, and acquisition, production, and sale of, crude oil and natural gas. Prior to such time, the Debtors held leases covering 165,000 net acres of oil and gas property, operated approximately 150 wells, and held working interests in approximately 300 wells in various portions of Louisiana and Mississippi. On Dec. 8, 2010, the Debtors sold substantially all of their assets to SR Acquisition I, LLC, and ceased their oil and gas and business operations. Tridimension Energy disclosed $37,211,921 in assets and $45,389,239 in liabilities. TriDimension Energy, L.P. and seven of its affiliated companies filed for Chapter 11 on May 21, 2010 (Bankr. N.D. Tex. Case No. 10-33565). The LP Debtors retained Vinson & Elkins LLP as their bankruptcy and restructuring counsel, and the GP Debtors retained Franklin Skierski Lovall Hayward, LLP, as their bankruptcy and restructuring counsel. The LP Debtors retained Ottinger Herbert, LLC, as their special and conflicts counsel, and Copeland, Cook, Taylor & Bush as their special Mississippi counsel. In May 2010, the Debtors retained FTI Consulting, Inc., to act as the Debtors' financial advisors and assist with the Debtors' sale process. The Debtors have retained The BMC Group, Inc., to serve as their claims and noticing agent, and as their Solicitation Agent. Attorneys at Gardere Wynne Sewell LLP serve as counsel to the Official Committee of Unsecured Creditors. TUBO DE PASTEJE: Says It Will File Plan 'Soon' ---------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Tubo de Pasteje SA de CV and subsidiary Cambridge-Lee Holdings Inc. for a fourth time are seeking an extension of the exclusive right to propose a Chapter 11 plan. If granted by the bankruptcy judge at an April 8 hearing, the new deadline would be April 11. According to Mr. Rochelle, the Company said there is "significant progress" toward a "consensual plan of reorganization" that it expects to file "soon." Industrias Unidas SA de CV said in February there was agreement in principle with creditors for a $371 million debt swap. About Tubo de Pasteje Tubo de Pasteje SA and subsidiary Cambridge-Lee Holdings Inc. filed Chapter 11 petitions (Bankr. D. Del. Case No. 09-14353) on Dec. 7, 2009 following a Nov. 15 payment default on US$200 million in 11.5% senior notes due 2016. Tubo and its subsidiary sought bankruptcy protection when the 30-day grace period was nearing its end. Tubo is a subsidiary of Mexico City-based Industrias Unidas SA de CV, a manufacturer of copper and electrical products. The U.S. subsidiary Cambridge-Lee is based in Reading, Pennsylvania. IUSA is the issuer of the notes which were secured by a pledge of Cambridge-Lee stock. TWIN CITY LOFTS: Adequate Protection Payment Deadline Nears ----------------------------------------------------------- Judge Elizabeth S. Stong has signed a stipulation between Twin City Lofts, LLC, and secured creditor, Capital One, N.A., extending to March 11, 2011, the Debtor's 90-day deadline to make adequate protection payments or file a plan of reorganization under 11 U.S.C. Section 362(d)(3). Capital One is currently a secured creditor currently holding a mortgage lien on the Property for $3,500,000 by way of numerous loan documents which were most recently modified by the Fourth Land Note and Mortgage Modification and Extension Agreement dated June 16, 2010. Brooklyn, New York-based Twin City Lofts, LLC, is a single asset real estate case as that term is defined pursuant to 11 U.S.C. Sec. 101(51)(B). Its primary asset is the property located at located at 1046-1050 Atlantic Avenue, Brooklyn, New York. The 90-day deadline for the Debtor to make adequate protection payments or file a plan of reorganization under 11 U.S.C. Sec. 362(d)(3) was set to expire Feb. 9, 2011, absent an extension. Twin City Lofts filed for Chapter 11 bankruptcy protection on Nov. 11, 2010 (Bankr. E.D.N.Y. Case No. 10-50625). David Carlebach, Esq., at Law Offices of David Carlebach, assists the Debtor in its restructuring effort. According to its schedules, the Debtor disclosed $7,504,000 in total assets and $6,478,000 in total debts. Capital One, N.A., is represented by: Joseph C. Savino, Esq. LAZER, APTHEKER, ROSELLA & YEDID, P.C. 225 Old Country Road Melville, NY 11747 Telephone: (631) 761-0855 E-mail: savino@larypc.com TWIN CITY LOFTS: Has Green Light to Employ Carlebach Firm --------------------------------------------------------- Twin City Lofts, LLC, won bankruptcy court permission to employ the Law Offices of David Carlebach, Esq., as its bankruptcy counsel under a general retainer in the Chapter 11 case. Yehuda Backer, the Debtor's Managing Member, said that, to the best of the Debtor's knowledge, Carlebach has no connection with, and no interests adverse to, the Debtor, its creditors, other parties in interest, or their respective attorneys or accountants. About Twin City Lofts Brooklyn, New York-based Twin City Lofts, LLC, is a single asset real estate case as that term is defined pursuant to 11 U.S.C. Sec. 101(51)(B). Its primary asset is the property located at located at 1046-1050 Atlantic Avenue, Brooklyn, New York. Twin City Lofts filed for Chapter 11 bankruptcy protection on Nov. 11, 2010 (Bankr. E.D.N.Y. Case No. 10-50625). According to its schedules, the Debtor disclosed $7,504,000 in total assets and $6,478,000 in total debts. Secured lender Capital One, N.A., is represented by Joseph C. Savino, Esq., at Lazer, Aptheker, Rosella & Yedid, P.C. TWIN CITY LOFTS: May Employ EisnerAmper LLP as Accountants ---------------------------------------------------------- Twin City Lofts, LLC, won permission from the Bankruptcy Court to employ EisnerAmper LLP, to act as accountants to the Debtor, nunc pro tunc, as of Nov. 11, 2010, to act as accountant to the Debtor and to perform the necessary accounting services set forth in the annexed Application and pursuant to Sec. 327 of the Bankruptcy Code and Federal Rule of Bankr. Pro. 2014(a). Ira Spiegel on behalf of EisnerAmper LLP said the firm is a "disinterested person" and represents no interests adverse to the Debtor, or the estate in the matter which EisnerAmper LLP, is to be engaged. About Twin City Lofts Brooklyn, New York-based Twin City Lofts, LLC, is a single asset real estate case as that term is defined pursuant to 11 U.S.C. Sec. 101(51)(B). Its primary asset is the property located at located at 1046-1050 Atlantic Avenue, Brooklyn, New York. Twin City Lofts filed for Chapter 11 bankruptcy protection on Nov. 11, 2010 (Bankr. E.D.N.Y. Case No. 10-50625). According to its schedules, the Debtor disclosed $7,504,000 in total assets and $6,478,000 in total debts. Secured lender Capital One, N.A., is represented by Joseph C. Savino, Esq., at Lazer, Aptheker, Rosella & Yedid, P.C. TX BLACKHORSE: U.S. Trustee Unable to Form Creditors Committee -------------------------------------------------------------- Judy A. Robbins, the United States Trustee for the Southern District of Texas, has informed the U.S. Bankruptcy Court for the Southern District of Texas that she has been unable to appoint a committee of unsecured creditors in TX Blackhorse LLP's bankruptcy case as there at not 3 eligible unsecured creditors who have come forward to serve as members of the Committee. Tempe, Arizona-based TX Blackhorse L.L.P. filed for Chapter 11 bankruptcy protection on Dec. 29, 2010 (Bankr. S.D. Tex. Case No. 10-80760). Thomas Baker Greene, III, Esq., at the Law Office of Thomas B. Greene III, in Houston, serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor discloaed $19,100,280 in assets and $13,262,621 in liabilities as of the petition date. UNI-PIXEL INC: To Release 4Q and Full 2010 Results on March 10 -------------------------------------------------------------- UniPixel, Inc. will hold a conference call on Thursday, March 10, 2011 at 4:30 p.m. Eastern time to discuss the fourth quarter and fiscal year ended Dec. 31, 2010. UniPixel's President and CEO Reed Killion and CFO Jeff Tomz will host the presentation, followed by a question and answer period. The conference call will be broadcast simultaneously and available for replay via the Investors section of the company's Web site at www.unipixel.com. About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company's balance sheet as of Sept. 30, 2010, showed $1.26 million in total assets, $4.15 million in total liabilities, and a stockholders' deficit of $2.89 million. PMB Helin Donovan, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has sustained losses and negative cash flows from operations since inception. US MINERAL: Garlock Wants to Intervene in 12 Bankruptcy Cases ------------------------------------------------------------- Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About U.S. Mineral Headquartered in Stanhope, New Jersey, United States Mineral Products Company manufactures and sells spray-applied fire resistive material to the constructions industry in North America and South America. The Company filed for chapter 11 protection on July 23, 2001 (Bankr. D. Del. Case No. 01-2471). Henry Jon DeWerth-Jaffe, Esq., at Pepper Hamilton LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it disclosed total assets of $23,773,000 and total debts of $13,864,000. Anthony Calcisbetta serves as the Debtor's chapter 11 trustee since Oct. 2, 2003. USG CORP: Court Junks PI Trusts Suits vs. Insurers -------------------------------------------------- Judge Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware dismissed in their entirety the adversary complaints brought by the Asbestos Personal Injury Trusts in the cases of Owens Corning, Kaiser Aluminum Corp., and USG Corp. that sought a preliminary injunction against the continuation of certain discovery from the Trusts in excess of that permitted by the bankruptcy plans and trust distribution procedures in those cases. The Adversary Proceedings were commenced on Oct. 27, 2010, seeking to resolve in one jurisdiction and in one court the proper scope of discovery of the claimant information and data that the Defendants have sought from the Trusts, and the protections that the Trusts may properly and consistently invoke in the event of future, similar discovery efforts. In the adversary proceeding, the Trusts asked Judge Fitzgerald to enter a preliminary injunction barring the continuation of discovery against the Trusts and all discovery of a similar nature until the Court has ruled on the issues raised in the Trusts' Adversary Complaint. The Plaintiffs' Motion for Preliminary Injunction is denied, Judge Fitzgerald held. Upon close examination, Judge Fitzgerald found that the U.S. Bankruptcy Court for the District of Delaware does not have subject matter jurisdiction over the matters before it. The discovery dispute raised by the Plaintiffs in the Adversary Complaints does not involve the interpretation or effectuation of the Plan, Judge Fitzgerald noted. Moreover, the subpoenas served on the Plaintiffs were issued in other jurisdictions in matters that are not before the Delaware Court, she noted. The issuing courts are the appropriate fora to determine the scope of the subpoenas and the courts in which actions are pending are best suited to resolve any specific discovery disputes, including consideration of confidentiality concerns any party to the litigation may raise, Judge Fitzgerald opined. "[The Court] recognizes the desire of the Trusts to have a uniformly applicable principle regarding their obligations to comply with discovery requests, some of which seem to far exceed reasonable requests calculated to lead to relevant and admissible evidence in a lawsuit," Judge Fitzgerald said. "Nonetheless, this court has no jurisdiction to create a 'one size fits all' peremptory rule of discovery." Accordingly, Judge Fitzgerald directed the Clerk of Court to close each of the Adversary Complaints in the cases of Owens Corning, Kaiser Aluminum and USG. With respect to Plaintiff ACandS Trust, a scheduling conference regarding the issue on whether the ACandS Trust Distribution Procedures is a valid and enforceable forum selection clause, or is otherwise enforceable, will be held on March 28, 2011, Judge Fitzgerald ruled. A copy of the memorandum opinion dated February 22, 2011, reflecting Judge Fitzgerald's ruling is available for free at: http://ResearchArchives.com/t/s?749a A subsequent order correcting the February 22 Memo Opinion was entered to note that the Delaware Court recognizes that the Owens Corning and USG Trust Distribution Procedures confirmed in 2006 did in fact include language requiring certain subpoenas to be issued by the Delaware Court. Judge Fitzgerald clarified that the Court's error does not change the rationale of the Memo Opinion with respect to any party. A copy of the Corrective Order dated February 23, 2011, is available for free at: http://bankrupt.com/misc/Owens_CrrctiveOrd_TrustAdvProcDismsl.pdf About USG Corporation Based in Chicago, Ill., USG Corporation -- http://www.usg.com/-- through its subsidiaries, manufactures and distributes building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The company filed for chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). When the Debtors filed for protection from their creditors, they disclosed $3,252,000,000 in assets and $2,739,000,000 in debts. The Debtors emerged from bankruptcy protection on June 20, 2006. USG CORP: Garlock Wants to Intervene in 12 Bankruptcy Cases ----------------------------------------------------------- Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About USG Corporation Based in Chicago, Ill., USG Corporation -- http://www.usg.com/-- through its subsidiaries, manufactures and distributes building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The company filed for Chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). When the Debtors filed for protection from their creditors, they disclosed $3,252,000,000 in assets and $2,739,000,000 in debts. The Debtors emerged from bankruptcy protection on June 20, 2006. VALLEJO, CA: Plan Heading for June Confirmation Hearing ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Vallejo, California will have a confirmation hearing in June for approval of the reorganization plan the city filed in January, the bankruptcy judge said yesterday. The judge said he will file a written opinion regarding approval of the disclosure statement explaining the plan. Groups representing labor and retirees want the city to give debt holders a bigger haircut to preserve more benefits. About City of Vallejo Vallejo -- http://www.ci.vallejo.ca.us/-- is a city in Solano County, California in the United States. As of the 2000 census, the city had a total population of 116,760. It is located in the San Francisco Bay Area on the northern shore of San Pablo Bay. It was named for General Mariano Guadalupe Vallejo. Vallejo filed for protection under Chapter 9 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 08-26813) on May 23, 2008, after it was unable to persuade labor unions to accept salary concessions as the recession began cutting into local government tax collections nationwide. Marc A. Levinson, Esq., and Norman C. Hile, Esq., at Orrick, Herrington & Sutcliffe LLP in Sacramento, California, represent the City. The city estimated $500 million to $1 billion in assets and $100 million to $500 million in debts in its petition. According to Vallejo's comprehensive annual report for the year ended June 30, 2007, the city has $983 million in assets and $358 million in debts. VAN HUNTER: Case Resolution Deadline Set for April 30 ----------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Texas, after consideration of the agreement of Van Hunter Development, Ltd., the U.S. Trustee, and Frost National Bank, has ordered that the Debtor will (a) voluntarily dismiss its bankruptcy case, (b) voluntariy convert the bankruptcy case to Chapter 7, or (c) confirm a plan of confirmation in the bankruptcy case, on or before April 30, 2011. The Debtor may seek an extension of the Case Resolution Deadline, for good cause; provided, any motion to extend the Case Resolution Deadline must be filed prior to April 30, 2011. In the event Debtor fails to adhere to the terms of the Order, the Debtor agrees the U.S. Trustee may file a notice of noncompliance and attach an order dismissing the Case with prejudice to the refiling for a period of 180 days and the Court may dismiss the Case without need for further notice or hearing. Dallas, Texas-based Van Hunter Development, Ltd, filed for Chapter 11 (Bankr. E.D. Texas Case No. 10-40052) on Jan. 4, 2010. Singer & Levick, P.C., in Addison, Texas, serve as general bankruptcy counsel. In its schedules, the Debtor disclosed $16,378,784 in assets and $15,294,367 in liabilities as of the petition date. VILLAGE AT CAMP: Disclosure Statement Hearing Reset to March 22 --------------------------------------------------------------- Judge D. Michael Lynn has reset the hearing to consider approval of the disclosure statement explaining Village at Camp Bowie I, L.P.'s bankruptcy exit plan to March 22, 2011, at 1:30 p.m. Judge Lynn also extended the Debtor's exclusive time to confirm a plan indefinitely. As reported in the Troubled Company Reporter on Feb. 3, 2011, Village at Camp Bowie I has filed a proposed Plan and explanatory Disclosure Statement. Pursuant to the terms of the Plan, all creditors will be paid 100% of their Allowed Claims over time. Funds for those payments will be sourced from cash on hand plus $600,000 in preferred equity to be issued to participating Interest Holders of the Debtor or third party investors and from future revenue of the Reorganized Debtor. Under the Plan, the Allowed Secured Claim of Western Real Estate Equities, LLC, will be paid over a 5-year term with interest only payments made monthly until maturity. General unsecured creditors will be paid 100% of their Allowed Claims, without interest, through six monthly payments beginning on the Effective Date of the Plan. Interest holders will be diluted to the extent of the new capital raised through the Preferred Equity issuance, but will otherwise retain their interests in the Debtor under the Plan. The Debtor's primary assets consist of the real property and structures comprising the Village which the Debtor values for purposes of the Plan at not less than $33,550,000 and projected cash on hand as of the Effective Date of the Plan of $767,246. The Debtor's main liabilities are: $31,292,824 in principal owed to Western Real Estate Equities and approximately $64,000 in general trade accounts payable. The Court initially set a Feb. 10 hearing to consider the adequacy of the Disclosure Statement. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/VillageAtCamp.DS.pdf Western Real Estate Equities, a lender under a 2004 construction loan, and the Debtor have agreed to a limited extension of exclusivity. The parties agreed that the Debtor's exclusive period to obtain acceptances of its Plan is extended until the Court concludes hearing on Western Real Estate Equities' motion for relief from the automatic stay imposed in the bankruptcy case and the lender's other request for valuation of the Village at Camp Bowie property. Western Real Estate Equities has asked the Court to hold a valuation hearing and determine the value of the Debtor's property so that the case can be efficiently administered and the Court can prevent further wasting of estate assets. The Debtor filed for bankruptcy to halt foreclose of Western Real Estate Equities' lien, which secures in excess of $31 million in debt. Western Real Estate Equities has argued that the Debtor's cash flow is insufficient to service the debt. The lender said the Debtor is in default on its obligation, and has no equity or, at best, miniscule equity in the lender's collateral. The lender does not believe reorganization is feasible. The lender wants the stay lifted so it can proceed with foreclosure. In its schedules filed in August 2010, the Debtor scheduled the amount of the lender's secured claim at $31.292 million and estimated the property's value at $34 million. The Debtor has filed with the Court a proposed Stipulation and Agreed Order giving it continued use of Cash Collateral through March 31, 2011. Western Real Estate Equities is represented in the case by: J. Robert Forshey, Esq. Matthew G. Maben, Esq. Kristin Schroeder, Esq. FORSHEY & PROSTOK, LLP 777 Main Street, Suite 1290 Forth Worth, TX 76102 Telephone: 817-877-8855 E-mail: bforshey@forsheyprostok.com mmaben@forsheyprostok.com kschroeder@forsheyprostok.com About Village at Camp Dallas, Texas-based Village at Camp Bowie I, L.P., is the owner of a mixed use real estate development located in Forth Worth, Texas, on Camp Bowie Boulevard between Bryant Irvin Road an Ridglea Avenue, about 1/2 mile south of I-30 an known as the Village at Camp Bowie. The Debtor filed for Chapter 11 bankruptcy protection on August 2, 2010 (Bankr. N.D. Tex. Case No. 10-45097). J. Mark Chevallier, Esq., at McGuire, Craddock & Strother, P.C., in Dallas, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. WASHINGTON MUTUAL: Equity Committee Now Has Two Members ------------------------------------------------------- Pursuant to Section 1102(a)(1) of the Bankruptcy Code, Roberta A. DeAngeles, the United States Trustee for Region III, filed her fourth notice of appointment of the Official Committee of Equity Security Holders in In re Washington Mutual, Inc., et al. The two current members of the Equity Committee are Michael Willingham and Ho Pham. This amendment reflects the resignation of Tim Pitsker from the Committee as of Feb. 23, 2011. 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. Washington Mutual Bank was taken over on Sept. 25, 2008, 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. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. Fred S. Hodera, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York City and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unseucred Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired WaMu's assets prior to the Petition Date. WB SANCTUARY: Files Schedules of Assets and Liabilities ------------------------------------------------------- WB Sanctuary Development Partners, LP, has filed with the U.S. Bankruptcy Court for the Southern District of Texas, its schedules of its assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ---------- ----------- A. Real Property $0 B. Personal Property $1,400,005 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $9,443,710 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $660,736 ---------- ----------- TOTAL $1,400,005 $10,104,446 A complete text of the Schedules of Assets & Liabilities is available for free at http://bankrupt.com/misc/WBSanctuary.SAL.pdf About WB Sanctuary Dallas, Texas-based WB Sanctuary Development Partners, LP, filed for Chapter 11 bankruptcy protection on December 6, 2010 (Bankr. S.D. Tex. Case No. 10-41169). Micheal W. Bishop, Esq., at Looper Reed, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. WES CONSULTING: Name Changed to Liberator Inc. ---------------------------------------------- Effective Feb. 28, 2011, WES Consulting, Inc., changed its name to "Liberator, Inc." by filing an Articles of Amendment to its Articles of Incorporation with the Florida Department of State. A copy of the Articles of Amendment is available for free at: http://ResearchArchives.com/t/s?7482 In addition, effective March 4, 2011, the Company's quotation symbol on the Over-the-Counter Bulletin Board will change from WSCU to LUVU. The new CUSIP number is 53012Q 10 7. About WES Consulting Atlanta, Ga. - based WES Consulting, Inc. (OTC BB: WSCU) was incorporated February 25, 1999, in the State of Florida. Until October 19, 2009, the Company was in the business of consulting and commercial property management. On October 19, 2009, the Company entered into a Merger and Recapitalization Agreement with Liberator, Inc., a Nevada corporation. Pursuant to the Agreement, Liberator merged with and into the Company, with the Company surviving as the sole remaining entity. The Merger has been accounted for as a reverse merger. The Company is a designer and manufacturer of various specialty furnishings for the sexual wellness market. The Company's sales and manufacturing operation are located in the same facility in Atlanta, Georgia. Sales are generated through the internet and print advertisements. The Company's balance sheet at June 30, 2010, showed $3.1 million in total assets, $3.9 million in total liabilities, and a stockholders' deficit of $738,000. Gruber & Company, LLC, in Lake Saint Louis, Mo., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $1.0 million and $3.6 million for the years ended June 30, 2010, and 2009, respectively, and as of June 30, 2010, the Company had an accumulated deficit of $6.2 million and a working capital deficit of $676,989. W.R. GRACE: Garlock Wants to Intervene in 12 Bankruptcy Cases ------------------------------------------------------------- Pittsburgh Corning Garlock Sealing Technologies LLC seeks an order from the U.S. Bankruptcy Court for the District of Delaware and the U.S. Bankruptcy Court for the Western District of Pennsylvania to intervene in the bankruptcy cases of these 12 entities for the limited purpose of establishing its right to access certain judicial records: * Owens Corning * ACandS, Inc. * Armstrong World Industries, Inc. * Combustion Engineering, Inc. * The Flintkote Company * Kaiser Aluminum Corp. * US Mineral Products Company * USG Corp. * W.R. Grace & Co. * Mid-Valley, Inc. * North American Refractories Co. * Pittsburgh Corning Corp. Garlock is filing the Motion to Intervene at the direction of the Court and in furtherance of its Original 2019 Access Motions. The 2019 Motions seek access to exhibits to 2019 Statements that, while filed with the Clerk of the Court, have been omitted from the electronic docket pursuant to orders of the Court requiring a motion to obtain access. Garlock is seeking to address its asbestos liabilities in its own bankruptcy proceedings in the U.S. Bankruptcy Court for the Western District of North Carolina before Judge George R. Hodges. Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell LP, in Wilmington, Delaware, asserts that the Rule 2019 Exhibits are relevant to an assessment of those liabilities of Garlock. Garlock maintains that it has standing to intervene in the Bankruptcy Cases. Any member of the public has standing to intervene to vindicate the right to public access to documents filed in court, Mr. Werkheiser relates. Garlock, in particular, he points out, has a right to intervene because its access to the 2019 Exhibits is being impeded and it needs the information contained therein for its own bankruptcy reorganization. Furthermore, Mr. Werkheiser adds, Garlock's Motion to Intervene Motion and the 2019 Access Motions are timely and do not unduly prejudice any party whose interests the Delaware Court is required to consider, because Garlock seeks only to litigate its right of access to the 2019 Exhibits -- an important interest that courts have recognized may be vindicated at any time. About W.R. Grace & Co. Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring effort. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on Jan. 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) * February Bankruptcy Filings Continue Lagging 2010 --------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports the although bankruptcy filings of all types perked up in February from January's pace, they trail last year by 7.4%. February filings totaled 109,000, representing a 12.5% increase at a daily rate compared with January, according to data compiled from court records by Epiq Systems Inc. February's total filings fell 7.4% from a year earlier, while commercial filings fell 13% to 5,900, Epiq's statistics reveal. According to the report, larger companies filing to reorganize or liquidate in Chapter 11 also declined. The almost 1,000 new Chapter 11s in February fell 10.5% from the year before. Mr. Rochelle relates that according to bankruptcydata.com, eight public companies initiated Chapter 11 proceedings in February, bringing the total to 15 this year, compared with 18 over the first two months of 2010. The decline in business and individual bankruptcies is coincident with improving business revenue, Sageworks Inc. reports. Among the smaller companies they study, construction was the only sector in 2010 not showing an increase in sales over 2009. * Private Employers May Deny Job to a Bankrupt Person ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that private employers are entitled to deny a job to someone who filed for bankruptcy, the U.S. Court of Appeals in New Orleans ruled on March 4, in Burnett v. Stewart Title Inc. (In re Burnett), 10-20250, 5th U.S. Circuit Court of Appeals (New Orleans). According to the report, the outcome stemmed from a different wording in two provisions of the Bankruptcy Code, Circuit Judge Carolyn D. King said in her opinion for the three-judge panel from the 5th Circuit. Mr. Rochelle discloses that the case involved an individual who was offered a job from a private employer, contingent on a background check and drug test. The background test turned up a prior bankruptcy, and the job offer was rescinded. The bankruptcy judge dismissed her suit from wrongful denial of employment, and the district court affirmed. The Court of Appeals affirmed. * D. Schrier-Rape Joins Goodwin Procter's Restructuring Practice ---------------------------------------------------------------- Goodwin Procter LLP, a national Am Law 50 firm, announced today that Deborah L. Schrier-Rape has joined the firm's Business Law Department in its Financial Restructuring practice. Schrier-Rape will be based in Goodwin's San Diego office and her practice will focus on bankruptcy, insolvency, out-of-court restructurings and creditors' rights. She joins Goodwin from her own firm in Dallas where she has practiced since 2002. Schrier-Rape has advised a wide variety of financial institutions, communications corporations, retailers, technology companies and other parties in corporate restructuring and litigation matters. While at Andrews & Kurth and as a principal of her own firm in Dallas, her work included leading the representation of NextWave Telecom and successfully confirming NextWave and its affiliates' Chapter 11 cases, which protected NextWave's assets valued in excess of $5 billion and finalized only after the United States Supreme Court affirmed a D.C. Circuit decision preserving NextWave's right to its wireless spectrum licenses. Prior to her work at Schrier-Rape P.C., she was a partner at Andrews & Kurth in Dallas where she co-led the bankruptcy practice and led the successful argument before the Fifth Circuit Court that upheld and affirmed confirmation of the General Wireless (now Metro PCS) Chapter 11 plan. Her other clients at Andrews & Kurth included NextWave, Hewlett-Packard, Wells Fargo and Zale Corporation. "Deborah's expertise and experience in financial restructuring further enhances the firm's nationally recognized bankruptcy practice, and her local presence will enable us to better serve clients across our expanding California office network," said Stephen Ferruolo, partner and San Diego office Chair. Schrier-Rape received her B.A. degree, magna cum laude, from DePauw University and her J.D. degree (with distinction) from Stanford Law School. She is admitted to practice in Colorado and Texas and before the U.S. Supreme Court, the Courts of Appeals for the Second, Third, Fifth, Tenth and D.C. Circuits and the state courts in Colorado and Texas. She is also a member of the Bankruptcy Institute and the American Bar Association. She can be reached at (858) 202-2751 or DSR@goodwinprocter.com. About Goodwin Procter Goodwin Procter LLP -- http://www.goodwinprocter.com/-- is one of the nation's leading law firms, with offices in Boston, Hong Kong, London, Los Angeles, New York, San Diego, San Francisco, Silicon Valley and Washington, D.C. The firm provides corporate law and litigation services, with a focus on matters involving real estate, REITs and real estate capital markets; private equity; technology companies; financial services; intellectual property; products liability and mass torts; and securities litigation and white collar defense. * Perkins Coie Opens New NY Office with Former Arent Fox Partner ---------------------------------------------------------------- Bankruptcy Law360 reports that Perkins Coie LLP said Monday that it hired a restructuring partner away from Arent Fox LLP to lead the firm's new New York office. Law360 says the opening of the new office and the addition of Schuyler G. Carroll will broaden the firm's restructuring practice, allowing it to represent clients in bankruptcy proceedings. * Saybrook Capital Discusses Next Situations Fund With Investors ---------------------------------------------------------------- Dow Jones' DBR Small Cap reports that distressed investor Saybrook Capital LLC is in preliminary discussions with investors about its second fund, according to prospective limited partners. Saybrook Capital, LLC -- http://www.saybrook.net/-- is an investment bank specializing in fund management, corporate restructuring, real estate and tax-exempt finance. Founded in 1990, Saybrook is a NASD-registered underwriter and broker-dealer, having brought to market and sold over $20 billion in securities. The firm also manages more than $300 million in capital, seeking to achieve above-market yields in niche sectors. Saybrook Capital is headquartered in Santa Monica with offices in New York, San Francisco and Seattle. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Mar. 7-9, 2011 INTERNATIONAL COUNCIL OF SHOPPING CENTERS Debt Workout, Transactions, and Repositioning of Distressed Assets The Wharton School, University of Pennsylvania, Philadelphia, Pa. Contact: 1-646-728-3468 or www.icsc.org/2011UV Mar. 7-9, 2011 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition Duberstein U.S. Courthouse, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - Florida Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10-12, 2011 AMERICAN BANKRUPTCY INSTITUTE SUCL/ Alexander L. Paskay Seminar on Bankruptcy Law and Practice Marriott Tampa Waterside, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 17-19, 2011 AMERICAN BANKRUPTCY INSTITUTE Byrne Judicial Clerkship Institute Pepperdine University School of Law, Malibu, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ April 27-29, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott, Chicago, IL Contact: http://www.turnaround.org/ May 5, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - New York City Association of the Bar of the City of New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 6, 2011 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Hilton New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Last Updated: Feb. 27, 2011 ********* 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 by e-mail. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases by individuals and business entities estimating assets and debts or disclosing assets and liabilities at less than $1,000,000. The list includes links to freely downloadable images of the small-dollar business-related 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. Jhonas Dampog, 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 2011. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***