/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110404.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, April 4, 2011, Vol. 14, No. 93 Headlines 524 HOWARD: Files Schedules of Assets and Liabilities 524 HOWARD: Court Designates Graham Seel as Responsible Individual 9339 ALONDRA: Case Summary & 20 Largest Unsecured Creditors ACCREDITED HOME: Disclosure Statement Sent Back for Revisions AIG BAKER: Files Second Amended Schedules of Assets & Debts AIG BAKER: Can Continue Using Cash Collateral Until May 31 AIROCARE INC: Plan Confirmation Hearing Continued to April 7 AIRPARK VILLAGE: U.S. Trustee Unable to Form Creditors' Committee AMERICAN INSTITUTIONAL: Dist. Ct. Rules on Suit v. Fairstar et al ALMADEN ASSOCIATES: Confirmation Hearing Set for April 14 AMTRUST FINANCIAL: Has Deal to Sell Parking Garage to Harbor Group ANGEL ACQUISITION: Gate Tech. Buys 60% Stake of Operating Unit ARK-ROD INC: Case Summary & 12 Largest Unsecured Creditors ARYX THERAPEUTICS: Delays Filing of 2010 Annual Report ASNACO LLC: BB&T Asks Court to Prohibit Payments to Attorneys ASNACO LLC: BB&T Opposes Cash Collateral Use ASNACO LLC: Jerry A. Funk Is Bankruptcy Judge ASSOC. OF GRAPHIC: Dist. Ct. Affirms Ruling on Super Nova Claim BEAR DOG: Voluntary Chapter 11 Case Summary BELLMARK RECORDS: Isbell v. DM Records Suit Goes to Trial BERNARD L MADOFF: FINRA Panel Orders Cohmad Pay $1.1MM to Victims BIG WHALE: Files Schedules of Assets & Liabilities BIG WHALE: Section 341(a) Meeting Scheduled for April 29 BIG WHALE: Taps Kerkman & Dunn as Bankruptcy Counsel BLUEGREEN CORP: Incurs $35.87 Million Net Loss in 2010 BPP TEXAS: Asks for July 19 Extension to File Chapter 11 Plan BPP TEXAS: Asks for July 19 Deadline to Assume Unexpired Lease BROADCAST INT'L: Incurs $18.66 Million Net Loss in 2010 C-SWDE348 LLC: Files Schedules of Assets & Liabilities C-SWDE348 LLC: Section 341(a) Meeting Scheduled for April 21 C-SWDE348 LLC: Taps Bogatz & Associates as Bankruptcy Counsel CADANT INC: 7th Circ. Revives Investor Suit Over Cadant Loans CALVARY BAPTIST: Disclosure Statement Hearing Set on May 11 CAPITAL SHORES: Case Summary & 5 Largest Unsecured Creditors CAPITOL BANCORP: Files Form 10-K; Posts $254.4-Mil. Net Loss CARDIUM THERAPEUTICS: Expects $4.7MM Loss, Going Concern Doubt CCS CORPORATION: Bank Debt Trades at 5% Off in Secondary Market CHEMICAL BUILDING: Bank Forecloses Building at $3.36 Million CHRISTENSEN REALTY: Disclosure Statement Hearing on Wednesday CICERO INC: Extends Maturity of SOAdesk $1.2-Mil. Notes to 2012 CIRTRAN CORP: Delays Filing of 2010 Annual Report CLAIRE'S STORES: Closes $450MM of 8.875% Sr. Notes Offering COATES INT'L: Incurs $1.05 Million Net Loss in 2010 CONNECTOR 2000: Court Confirms Chapter 9 Payment Plan CONSPIRACY ENTERTAINMENT: Delays Filing of 2010 Annual Report CONTECH CONSTRUCTION: Debt Trades at 13% Off in Secondary Market CUMBEE RD: Case Summary & 20 Largest Unsecured Creditors D & G CONTRACTORS: Case Summary & 20 Largest Unsecured Creditors DEX MEDIA EAST: Bank Debt Trades at 22% Off in Secondary Market DEX MEDIA WEST: Bank Debt Trades at 11% Off in Secondary Market DIAGNOSTIC VENTURES: Clifford Chance Dropped from Investor Action DIGITAL POST: Case Summary & 13 Largest Unsecured Creditors DOT VN: Online Traffic Across INFO.VN Web Properties Increases DOWNEY REGIONAL: City Rejects $1.5-Mil. Offer for Hospital Land ECOVENTURE WIGGINS: Ironshore Unit Acquires Pelican Isle Property EL AMAL: Files for Chapter 11 Bankruptcy Protection EMISPHERE TECHNOLOGIES: Errors Found in 2009 and 2010 Financials EMMIS COMMUNICATIONS: Extends Maturity of Tranche B Loans to 2014 EPICEPT CORP: To Raise $4.6 Million in Registered Direct Offering EVERGREEN ENERGY: Sells Landrica to Green Bridge for $7.2 Million FIRST MARINER: Recurring Losses Cue Going Concern Doubt FIRST DATA: Seeks to Amend Senior Secured Credit Facilities FIRST DATA: Plans to Offer $750 Million Senior Secured Notes FRANKLIN CREDIT: Incurs $55.27 Million Net Loss in 2010 G & R MANAGEMENT: Case Summary & 15 Largest Unsecured Creditors GAMETECH INTERNATIONAL: Incurs $288,000 Net Loss in Jan. 30 Qtr. GENERAL MARITIME: Incurs $216.66 Million Net Loss in 2010 GENERAL MARITIME: To Sell 23MM Common Shares at $1.89 Apiece GENERAL MARITIME: Peter Georgiopoulos Holds 6.26% Equity Stake GLC LIMITED: Sues Crabtrees to Stop Liquidating Interest GLOBAL TECHNOVATIONS: Onkyo America Acquisition Was Fraudulent GOLDEN CHAIN: Taps Polis & Associates as Bankruptcy Counsel GORILLA COMPANIES: Suit v. Tassels, Corwins Go Back to Bankr. Ct. GUIDED THERAPEUTICS: Incurs $2.84 Million Net Loss in 2010 GULF FREEWAY: Combined Hearing for Plan & Outline on June 3 HAMPTON ROADS: To Effect a Reverse Stock Split of Common Shares HARRY & DAVID: Organizational Meeting to Form Panel on April 7 HERCULES OFFSHORE: Gets Early Termination Notice From Seahawk HOLBROOK SHOPPING: Case Summary & 2 Largest Unsecured Creditors HRAF HOLDINGS: DR Horton Wins Auction for 22 Sleepy Ridge Lots HUDSON RIVER: Case Summary & 15 Largest Unsecured Creditors INNKEEPERS USA: Bidding Protocol Okayed; Appaloosa Suffers Setback INNOLOG HOLDINGS: Delays Filing of Annual Report J&A FINISHING: Case Summary & 20 Largest Unsecured Creditors JUMA TECHNOLOGY: Incurs $10.14 Million Net Loss in 2010 LA JOLLA PHARMACEUTICAL: Delays Filing of Annual Report LAKE AT LAS VEGAS: Avoidance Suits Stay in Bankr. Court LAKE TAHOE: Hearing on Conversion to Chapter 7 Tomorrow LENOX CONDOMINIUM: Confirmation Hearing Adjourned to May 6 LIFECARE HOLDINGS: Reports $2.63 Million Net Income in 2010 LOCAL INSIGHT: Court OKs Hiring of Mesirow Financial MARGAUX ORO: Taps Coffin & Driver as Counsel MARGAUX ORO: Gets Interim Approval to Use Cash Collateral METAMORPHIX INC: Hearing on Conversion Motion Set for April 20 MILESTONE SCIENTIFIC: Incurs $614,508 Net Loss in 2010 NATIONAL HOME: Court Confirms Plan of Liquidation NCO GROUP: Incurs $155.71 Million Net Loss in 2010 NEW JERSEY MOTORSPORTS: TRG Drops Plans for $5-Mil. Milville HQ NORD RESOURCES: Incurs $21.20 Million Net Loss in 2010 NORTHGATE PROPERTIES: Taps Darby Law as Bankruptcy Counsel OM SHIVAI: Court Rejects Plan & Dismisses Chapter 11 Case PARK CENTRAL: Section 341(a) Meeting Scheduled for April 28 PATRICK HACKETT: Auction for Ogdensburg Store on April 6 PEARL ARTIST: Emerges From Chapter 11 Bankruptcy Protection PJ FINANCE: Hearing on Further Cash Use on Wednesday PJ FINANCE: U.S. Trustee Forms 7-Member Creditors Committee PJ FINANCE: Taps DLA Piper (US) as Bankruptcy Counsel PJ FINANCE: Creditors Committee Taps Hahn & Hessen as Co-Counsel RADIO ONE: Has 32-Month Contract with Chief Exec. Thompson REDDY ICE: Incurs $32.50 Million Net Loss in 2010 RITE AID: Amends Offer to Exchange Option for Clarification RIVER ROCK: Posts Income From Operations of $46.43MM in 2010 ROANOKE HEALTH: To File For Chapter 11 Bankruptcy Protection ROBB CORWIN: Gorilla Cos. Suit Goes Back to Bankr. Court SAN JUAN BAUTISTA: Case Summary & 20 Largest Unsecured Creditors SAND TECHNOLOGY: Thomas O'Donnell Discloses 15.47% Equity Stake SB PARTNERS: Delays Filing of Annual Report SEITEL INC: Offers to Purchase Outstanding 11.75% Senior Notes SHALOM TORAH: District Court to Hear Suit v. Insurer SHERIDAN REHAB: Case Summary & 23 Largest Unsecured Creditors SHUMATE ENERGY: Case Summary & 20 Largest Unsecured Creditors SIMON WORLDWIDE: Incurs $2.33 Million Net Loss in 2010 SINOBIOMED INC: Incurs $577,531 Net Loss in 2010 SMART ONLINE: Incurs $3.95 Million Net Loss in 2010 SOLOMON DWEK: Dist. Ct. Won't Dismiss Corbett & Ocean Circle Cases SPANISH BROADCASTING: Posts $15.04 Million Net Income in 2010 STERLING MINING: Hon. Pappas to Handle Minco Silver Dispute SUNRISE REAL Estate: Delays Filing of Form 10-K TELKONET INC: Incurs $1.77 Million Net Loss in 2010 TELTRONICS INC: Delays Filing of 2010 Annual Report THERMOENERGY CORP: IRS Accepts Offer in Compromise of Tax Debts TOWNSENDS INC: Wants Until June 17 to File Plan TOWNSENDS INC: Wants to Hire PwC as Special Tax Advisor TRENTON LAND: Asks for Aug. 31 Deadline to File Chapter 11 Plan TRIBUNE CO: Bank Debt Trades at 30% Off in Secondary Market UNITED GILSONITE: Court Extends Filing of Schedules by 30 Days UNITED GILSONITE: Section 341(a) Meeting Scheduled for May 11 UTILITY LINE: Case Summary & 7 Largest Unsecured Creditors VAN CHASE: Court Sets April 21 as Claims Bar Date VYTERIS INC: Delays Filing of 2010 Annual Report WASHINGTON MUTUAL: Court Approves Disclosure Statement WEST END: Fights Bid to Appoint Chapter 11 Trustee WII COMPONENTS: Incurs $3.37 Million Net Loss in 2010 WILLIAM LYON: Delays Form 10-K Filing for Impairment Analysis WOLVERINE TUBE: Taps Deloitte Financial as Financial Advisor ZANETT INC: Delays Filing of 2010 Annual Report ZANETT INC: Form 10-K to be Delayed; Expects Going Concern Doubt * BOND PRICING -- For Week From March 21 to 25, 2011 ********* 524 HOWARD: Files Schedules of Assets and Liabilities ----------------------------------------------------- 524 Howard, LLC, filed with the U.S. Bankruptcy Court for the Northern District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $38,675,000 B. Personal Property $11,000 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $21,985,000 E. Creditors Holding Unsecured Priority Claims $1,140,323 F. Creditors Holding Unsecured Non-priority Claims $8,297 ----------- ----------- TOTAL $38,686,000 $23,133,620 A copy of the Schedules of Assets and Liabilities is available for free at: http://bankrupt.com/misc/524Howard.SAL.pdf San Francisco, California-based 524 Howard, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-30594) on Feb. 17, 2011. Iain A. Macdonald, Esq., and Reno F.R. Fernandez, Esq., at Macdonald and Associates, in San Francisco, serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. An affiliate, CMR Mortgage Fund, LLC, sought Chapter 11 protection (Bankr. N.D. Calif. Case No. 08-32220) on Nov. 18, 2008. Affiliates CMR Mortgage Fund II, LLC (Bankr. N.D. Calif. Case No. 09-30788) and CMR Mortgage Fund III, LLC (Bankr. N.D. Calif. Case No. 09-30802) filed Chapter 11 petitions on March 31, 2009. 524 HOWARD: Court Designates Graham Seel as Responsible Individual ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of California has designated, pursuant to Bankruptcy Local Rule 4002-1, Graham Seel, co-manager of 524 Howard Manager, LLC, manager of the Debtor, as the individual responsible for the duties and obligations of the Debtor-in-Possession in 524 Howard, LLC's Chapter 11 case. Mr. Seel can be reached at: Graham Seel Co-Manager 524 HOWARD MANAGER, LLC 62 First Street, Fourth Floor San Francisco, CA 94105 Tel: (415) 974-1100. San Francisco, California-based 524 Howard, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-30594) on Feb. 17, 2011. Iain A. Macdonald, Esq., and Reno F.R. Fernandez, Esq., at Macdonald and Associates, in San Francisco, serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $38,686,000 in assets and $23,133,620 in liabilities as of the Petition Date. An affiliate, CMR Mortgage Fund, LLC, sought Chapter 11 protection (Bankr. N.D. Calif. Case No. 08-32220) on Nov. 18, 2008. Affiliates CMR Mortgage Fund II, LLC (Bankr. N.D. Calif. Case No. 09-30788) and CMR Mortgage Fund III, LLC (Bankr. N.D. Calif. Case No. 09-30802) filed Chapter 11 petitions on March 31, 2009. 9339 ALONDRA: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: 9339 Alondra Blvd., LLC 156 S. Clark Drive Beverly Hills, CA 90211 Bankruptcy Case No.: 11-23503 Chapter 11 Petition Date: March 30, 2011 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Sheri Bluebond Debtor's Counsel: Jennifer L. Jones, Esq. THE WESTWOOD LAW GROUP, APC 3335 Keystone Ave #5 Los Angeles, CA 90034 Tel: (619) 913-9818 Fax: (619) 913-9818 E-mail: Jdgrad03@yahoo.com Scheduled Assets: $4,953,364 Scheduled Debts: $8,112,514 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-23503.pdf The petition was signed by Javid Somekh, managing member. ACCREDITED HOME: Disclosure Statement Sent Back for Revisions ------------------------------------------------------------- Bankruptcy Law360 reports that a bankruptcy judge in Delaware ruled Wednesday that Accredited Home Lenders Holding Co. must make additional disclosures regarding the key settlement within its liquidation plan before the defunct subprime lender can send the plan to creditors for a vote. Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware directed AHLH to amend its disclosure statement to clarify release provisions incorporated in the settlement, according to Law360. As reported in the TCR on March 4, 2011, according to the latest iteration of the Disclosure Statement, the Debtors and their advisors expect unsecured creditors of the operating companies to receive significant recoveries that very well may reach 100%, and expect unsecured creditors at the holding company level to receive recoveries of approximately 65%. At the start of the case, the Debtors expected returns of 5% to 10% to unsecured creditors. The improvements in estimated unsecured creditor recoveries are attributed to the global settlement reached between the Debtors, their major creditor constituencies, and their potential litigation targets. About Accredited Home San Diego, California-based Accredited Home Lenders Holding Co. -- http://www.accredhome.com/-- was a mortgage banker servicing U.S. markets for conforming and non-prime residential mortgage loans operating throughout the U.S. and in Canada. Accredited sold its mortgage-servicing business in July 2009 as part of its bankruptcy. Accredited Home Lenders and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 09-11516) on May 1, 2009. Gregory G. Hesse, Esq., Lynnette R. Warman, Esq., and Jesse T. Moore, Esq., at Hunton & William LLP, serve as the Debtors' bankruptcy counsel. Laura Davis Jones, Esq., James E. O'Neill, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as Delaware counsel. Kurtzman Carson Consultants is the Debtors' claims agent. Andrew I Silfen, Esq., Schuyler G. Carroll, Esq., Robert M. Hirsch, Esq., at Arent Fox LLP in New York, and Jeffrey N. Rothleder, Esq., at Arent Fox LLP in Washington, DC, represent the official committee of unsecured creditors as co-counsel. Neil R. Lapinski, Esq., and Shelley A. Kinsella, Esq., at Elliott Greenleaf, represent the Committee as Delaware and conflicts counsel. Accredited Home Lenders estimated its assets at $10 million to $50 million and its debts at $100 million to $500 million in its Chapter 11 petition. AIG BAKER: Files Second Amended Schedules of Assets & Debts ----------------------------------------------------------- AIG Baker Tallahassee, LLC, and AIG Baker Tallahassee Communities, LLC, have both filed a Second Amendment Summary of Schedules, disclosing: A. Summary of Schedules for AIG Baker Tallahassee Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $13,118,481 B. Personal Property $466,351 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $44,119,481 E. Creditors Holding Unsecured Priority Claims $223,159 F. Creditors Holding Unsecured Non-priority Claims $4,011,952 ----------- ----------- TOTAL $13,584,832 $48,354,592 B. Summary of Schedules for AIG Baker Tallahassee Communities Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $11,687,199 B. Personal Property $13 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $40,898,524 E. Creditors Holding Unsecured Priority Claims $238,517 F. Creditors Holding Unsecured Non-priority Claims $4,072,100 ----------- ----------- TOTAL $11,687,212 $45,209,141 A copy of the Second Amended Summary of Schedules is available for free at http://bankrupt.com/misc/AIGBaker.2ndAmendedSAL.pdf About AIG Baker Tallahassee Birmingham, Alabama-based AIG Baker Tallahassee, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ala. Case No. 10- 07353) on Dec. 14, 2010. Lee R. Benton, Esq., at Benton & Centeno, LLP, in Birmingham, Ala., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $50 million to $100 million. Affiliate AIG Baker Tallahassee Communities, LLC, filed a separate Chapter 11 petition (Bankr. N.D. Ala. Case No. 10-07354). It estimated its assets and debts at $50 million to $100 million. The Debtors own and manage two separate real estate projects. The real property owned by each Debtor constitutes "single asset real estate," as defined in Sec. 101(51B) of the Bankruptcy Code. AIG BAKER: Can Continue Using Cash Collateral Until May 31 ---------------------------------------------------------- On March 24, 2011, the U.S. Bankruptcy Court for the Northern District of Alabama entered a second agreed order extending the term of its final order authorizing AIG Baker Tallahassee, LLC, and AIG Baker Tallahassee, LLC's limited use of cash collateral through and including May 31, 2011, subject to the terms and conditions of the Final Cash Collateral Order dated Jan. 9, 2011. Absent the second agreed order, the Debtor's access to cash collateral would have expired March 14, 2011, in accordance with the first agreed order. The Debtors are indebted to Wells Fargo Bank, N.A., successor-by- merger to Wachovia Bank, National Association, pursuant to two separate mortgage loans dated Feb. 21, 2007, and March 1, 2008, respectively. As of the Petition Date, AIG Baker Tallahassee Communities was indebted to the Lender in the principal amount of not less than $41,227,773. As of the Petition Date, AIG Baker Tallahassee was indebted to the Lender in the principal amount of not less that $44,119,480. The Debtors' prepetition indebtedness is secured by substantially all of the Debtors' existing and after acquired real and personal property assets and the proceeds, rents, products, offspring, and profits thereof, all of which has been pledged by the Debtors to the Lender. Pursuant to the Prepetition Agreements, the Lender has security interest in, inter alia, the cash proceeds of the prepetition collateral of the Debtors, which constitute cash collateral of the Lender. The Debtors may use cash collateral only in accordance with a budget. As adequate protection, the Lender is granted a first priority security interest in all assets and property of each of the Debtors and their respective individual estates, now existing or hereafter acquired, and all proceeds thereof. As further protection for the Lender's interests as of the petition date in the prepetition collateral: (a) the Debtors will pay on or before the tenth day of each month, all rents and other amounts remaining after payment, or retention through accrual, of the expenses set forth in the budget for the previous month, which amounts will be applied against the prepetition indebtedness; and (b) all proceeds of the sale, lease, disposition, or other realization of the Collateral outside of the ordinary course of business. In addition to the foregoing, the Debtors will fully comply with their obligations and will not breach any material representation or warranty as set forth in the Prepetition Agreements. About AIG Baker Tallahassee Birmingham, Alabama-based AIG Baker Tallahassee, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ala. Case No. 10- 07353) on Dec. 14, 2010. Lee R. Benton, Esq., at Benton & Centeno, LLP, in Birmingham, Ala., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $50 million to $100 million. Affiliate AIG Baker Tallahassee Communities, LLC, filed a separate Chapter 11 petition (Bankr. N.D. Ala. Case No. 10-07354). It estimated its assets and debts at $50 million to $100 million. The Debtors own and manage two separate real estate projects. The real property owned by each Debtor constitutes "single asset real estate," as defined in Sec. 101(51B) of the Bankruptcy Code. AIROCARE INC: Plan Confirmation Hearing Continued to April 7 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Virginia has continued to April 7, 2011, at 9:30 a.m., the hearing on AirOcare, Inc.'s Chapter 11 Plan. As reported in the TCR on Jan. 10, 2011, under the Plan, ARC, LLC -- the lone holder of a secured claim -- will have its $3,000,000 secured claim paid from available cash in quarterly installments until the claim is paid in full, unless other terms of payment are agreed to by the parties. Among other things, holders of allowed unsecured claims will receive: a) in available cash pro rata and to the extent of sufficient funds by payment of quarterly installments so that the allowed amount of the claim plus Legal Interest will be paid in full no later than October 1, 2017, or b) upon other terms as may be agreed to by the holder of the Claim and the Reorganized Debtor. Unsecured creditors, however, are not entitled to receive, any distribution of available cash on account of the allowed claims under the plan until ARC has been paid in full. Holders of equity interests will not receive any distribution under the Plan. The Bankruptcy Court approved the disclosure statement on at a hearing on Jan. 11, 2011. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?71e1 About AirOcare, Inc. Dulles, Virginia-based AirOcare, Inc., was originally for the purpose of purchasing and developing technologies for air purification. AirOcare filed for Chapter 11 bankruptcy protection (Bankr. E.D. Va. Case No. 10-14519) on May 29, 2010. Frederick W. H. Carter, Esq., at Venable LLP, in Washington, D.C.; Kristen E. Burgers, Esq., and Lawrence Allen Katz, Esq., at Venable LLP, in Vienna, Va.; and Stephen E. Leach, Esq., at Leach Travell Britt, PC, in McLean, Va., assist the Debtor in its restructuring effort. The Debtor also tapped McGinn Intellectual Property Group PLLC for intellectual property matters. The Indianapolis law firm of Wooden & McGlaughlin LLP represents the Debtor in the lawsuit filed by Key Electronics. The Company disclosed $21,360,578 in assets and $7,973,914 in debts as of the Petition Date. AIRPARK VILLAGE: U.S. Trustee Unable to Form Creditors' Committee ----------------------------------------------------------------- Charles F. McVay, the U.S. Trustee for Region 19, informs the U.S. Bankruptcy Court for the District of Colorado that he has been unable to form a committee of unsecured creditors in the Chapter 11 case of Airpark Village, LLC, as there are too few unsecured creditors who are willing to serve on the committee. Aurora, Colorado-based Airpark Village, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 11-12790) on Feb. 16, 2011. Kenneth J. Buechler, Esq., at Buechler Law Office LLC, in Denver, serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $15,112,195 in assets and $8,564,158 in liabilities. AMERICAN INSTITUTIONAL: Dist. Ct. Rules on Suit v. Fairstar et al ----------------------------------------------------------------- In American Institutional Partners, LLC, et al., v. Fairstar Resources Ltd., and Goldlaw Pty Ltd., C. A. No. 10-489-LPS (D. Del.), District Judge Leonard P. Stark granted, in part, and denied, in part, the Defendants' motion to dismiss or transfer venue. The claims against defendant Goldstar are dismissed for lack of personal jurisdiction. The claims asserted by AIP, AIP Lending, and Mark Robbins are barred under the doctrine of claim preclusion and, thus, dismissed. The Defendants' motion to transfer venue is denied. The suit will proceed as an action by AIP Resort Development, LLC, and Peninsula Advisors, LLC, against Fairstar. A copy of Judge Stark's March 31, 2011 Memorandum Opinion is available at http://is.gd/YFkeICfrom Leagle.com. Salt Lake City, Utah-based American Institutional Partners, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10709) on March 9, 2011. John D. McLaughlin, Jr., Esq., at Ciardi Ciardi & Astin, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate AIP Resort Development, LLC, filed a Chapter 11 petition (Bankr. D. Del. Case No. 10-25027) on April 19, 2010. ALMADEN ASSOCIATES: Confirmation Hearing Set for April 14 --------------------------------------------------------- The United States Bankruptcy Court for the Northern District of California - Oakland Division has continued the confirmation hearing for Almaden Associates LLC's Chapter 11 plan of reorganization to April 14, 2011 at 2:30 p.m. The Debtor solicited votes after the disclosure statement was approved as containing adequate information. The Troubled Company Reporter previously reported that under the Plan, through the ongoing management and sale or refinancing of its real property portfolio, the Debtor will pay all allowed general unsecured creditors in full over a period of two years. Unpaid allowed priority creditors will be paid in full shortly after confirmation of the Plan. Allowed administrative convenience creditors -- unsecured creditors owed $1,000 or less - - will also be paid a lump sum dividend for the full amount of their claims shortly after confirmation. The treatment of secured creditors varies. As to the different mortgage holders, Mechanics Bank will be cured as to interest by August 19, 2010, or allowed to foreclose; thereafter it will be paid current interest until two years from the effective date of the Plan, when it will be paid in full. The notes of other secured creditors will remain secured by the existing liens, will be paid on an interest only basis and will be due in full two years from the effective date of the Plan. Interest holders will retain their interests. A full-text copy of the Plan is available for free at: http://bankrupt.com/misc/AlmadenAssociates_Plan.pdf About Almaden Associates, LLC Dublin, California-based Almaden Associates, LLC, filed for Chapter 11 bankruptcy protection on Feb. 22, 2010 (Bankr. N.D. Calif. Case No. 10-41903). The Company estimated its assets and debts at $10,000,001 to $50,000,000. The Debtor is represented by Joel K. Belway, Esq., at The Law Office of Joel k. Belway, in San Francisco, California, as counsel. AMTRUST FINANCIAL: Has Deal to Sell Parking Garage to Harbor Group ------------------------------------------------------------------ BankruptcyData.com reports that AmTrust Financial Corp. filed with the bankruptcy court a motion for approval to sell a parking garage in Cleveland, Ohio, to Harbor Group International for $7.5 million. The Debtors wish to employ Hilco Real Estate as broker, in connections with the sale, for a fee of $75,000 plus reimbursement of expenses, together with a 10% premium on that portion of any purchase price received by the Debtors exceeding $7.5 million. The Court scheduled an April 21, 2011 hearing on the matter. About AmTrust Financial AmTrust Financial Corp (PINK: AFNL) was the owner of the AmTrust Bank. AmTrust was the seventh-largest holder of deposits in South Florida, with $4.7 billion in deposits and 21 branches. In November 2008, the Office of Thrift Supervision issued a cease and desist order requiring AmTrust to improve its capital ratios. AmTrust Financial, together with affiliates that include AmTrust Management Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 09-21323) on Nov. 30, 2009. G. Christopher Meyer, Esq., Christine M. Piepont, Esq., and Sherri L. Dahl, Esq., at Squire Sanders & Dempsey (US) LLP, in Cleveland, Ohio; and Stephen D. Lerner, Esq., at Squire Sanders & Dempsey (US) LLP, in Cincinnati, Ohio, assist the Debtors in their restructuring effort. Kurtzman Carson Consultants serves as claims and notice agent. Attorneys at Hahn Loeser & Parks LLP serve as counsel to the Official Committee of Unsecured Creditors. AmTrust Management estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. AmTrust Bank was not part of the Chapter 11 filings. On Dec. 4, 2009, AmTrust Bank was closed by regulators and the Federal Deposit Insurance Corporation was named receiver. New York Community Bank, in Westbury, New York, assumed all of the deposits of AmTrust Bank pursuant to a deal with the FDIC. ANGEL ACQUISITION: Gate Tech. Buys 60% Stake of Operating Unit -------------------------------------------------------------- The Board of Directors and majority stockholders of Angel Acquisition, Inc., approved the entry into a Partial Purchase Agreement, pursuant to which Gate Technologies, LLC, acquired 60% ownership of the Company's operating division, Angels In Action for total cash consideration of $90,000 and $600,000 in the form of Gate Technologies, LLC, Units contributed by Vince Molinari and Lori Livingston. Vince Molinari, Chairman of the Board of Directors of the Company, is also the Founder and Chief Executive Officer of Gate Technologies, LLC, and Lori Livingston, a member of the Board of Directors of the Company, is also the Founder of Gate Technologies, LLC. About Angel Acquisition Carson City, Nev.-based Angel Acquisition Corp. was incorporated under the laws of the state of Nevada on March 10, 1999, under the name Palomar Enterprises, Inc. On February 5, 2008, the Company changed its name to Angel Acquisition Corp. to properly reflect the change in business direction. The Company assists private companies in the process of going public as well as being a licensed mortgage broker and developer. The Company's balance sheet at Sept. 30, 2010, showed $1.75 million in total assets, $2.16 million in total liabilities, and a stockholders' deficit of $410,063. Gruber & Company, LLC, in Lake Saint Louis, Mo., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for 2009. The independent auditors noted that the Company is dependent upon the available cash on hand and either future sales of securities or upon its current management or advances or loans from controlling shareholders or corporate officers to provide sufficient working capital. ARK-ROD INC: Case Summary & 12 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: ARK-ROD, Inc. P.O. Box 1916 Harrison, AR 72602-1916 Bankruptcy Case No.: 11-71476 Chapter 11 Petition Date: March 30, 2011 Court: United States Bankruptcy Court Western District of Arkansas (Harrison) Debtor's Counsel: James E. Smith, Jr., Esq. SMITH AKINS, P.A. 400 W. Capitol Ave., Suite 1700 Little Rock, AR 72201 Tel: (501) 537-5111 Fax: (501) 537-5113 E-mail: jsmith@smithakins.com Scheduled Assets: $1,606,973 Scheduled Debts: $949,354 A list of the Company's 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/arwb11-71476.pdf The petition was signed by James Behrle. ARYX THERAPEUTICS: Delays Filing of 2010 Annual Report ------------------------------------------------------ ARYx Therapeutics, Inc., notified the U.S. Securities and Exchange Commission that it will be late in filing its annual report for the period ended Dec. 31, 2010. As previously disclosed, following preliminary notification from the U.S. Food and Drug Administration of an additional delay by he FDA in providing guidance regarding the special protocol assessment the Company submitted for its lead product candidate naronapride, the Company was advised by its existing principal and potential new investors that were contemplating a potential financing arrangement for the company that they would not be participating in any future funding of the Company. In addition, as previously disclosed, the Company received a notice of default from one of its secured lenders, Lighthouse Capital Partners V, L.P., on March 16, 2011, indicating an event of default had occurred under that certain Loan and Security Agreement No. 4512, dated as of March 28, 2005, as amended, by and between Lighthouse and the Company. The Notice demands the Company turn over the collateral securing the Company's loan with Lighthouse, which consists of all of the Company's assets, including its intellectual property. The Company's Board of Directors has determined that continued operations of the company is not possible due to the Company's lack of cash resources and no available funding options, and has authorized the Company's management to cooperate with the Company's secured creditors to effect an orderly wind-down of the Company's operations, which is currently in process. Absent the continued cooperation and agreement of the Company's secured creditors to effect an orderly wind-down of the Company's operations and disposition of the Company's assets, the Company's Board of Directors has authorized and directed management to proceed with the filing by the Company of a voluntary petition for bankruptcy under the provisions of Chapter 7 of the U.S. Bankruptcy Code. In light of the foregoing developments, the Company's independent registered public accounting firm will not be providing the Company with audit or other services going forward and will not be in a position to issue a report and consent in connection with an Annual Report on Form 10-K for the year ended Dec. 31, 2010. Accordingly, the Company lacks the resources and personnel to continue to fulfill any reporting obligations under Section 13(a) of the Securities and Exchange Act of 1934, as amended. About ARYx Therapeutics Fremont, Calif.-based ARYx Therapeutics, Inc. (NASDAQ: ARYX) -- http://www.aryx.com/-- is a biopharmaceutical company. ARYx currently has four products in clinical development: a prokinetic agent for the treatment of various gastrointestinal disorders, naronapride (ATI-7505); an oral anticoagulant agent for patients at risk for the formation of dangerous blood clots, tecarfarin (ATI-5923); an oral anti-arrhythmic agent for the treatment of atrial fibrillation, budiodarone (ATI-2042); and, an agent for the treatment of schizophrenia and other psychiatric disorders, ATI- 9242. The Company's balance sheet as of Sept. 30, 2010, showed $6.0 million in total assets, $13.7 million in total liabilities, and a stockholders' deficit of $7.7 million. As reported in the Troubled Company Reporter on April 9, 2010, Ernst & Young LLP, in Palo Alto, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following review of the Company's 2009 results, citing the Company's recurring losses from operations and stockholders' deficit. ASNACO LLC: BB&T Asks Court to Prohibit Payments to Attorneys ------------------------------------------------------------- Branch Banking And Trust Company has asked the U.S. Bankruptcy Court for the Middle District of Florida to prohibit Asnaco, LLC, from making payments to its attorneys or other professionals. On March 23, 2011, the Court entered a notice of filing deficiencies notifying Debtor of the requirement to file a motion to retain an attorney. As of the date of this motion, Debtor has not filed a motion to retain its attorney of record in this case, Walter J. Snell, or the law firm of Snell & Snell, P.A. BB&T expressly objects to any payments by Debtor to its attorneys' or other professionals. Because Debtor's income constitutes BB&T's cash collateral and Debtor has not obtained an order from this Court authorizing Debtor's use of same, BB&T is entitled to an order prohibiting Debtor from making any payments to its attorneys or other professionals. BB&T is represented by: Jennifer L. Morando Jason A. Rosenthal THE ROSENTHAL LAW FIRM, P.A. 4798 New Broad Street, Suite 310 Orlando, FL 32814 Tel: (407) 488-1220 Fax: (407) 488-1228 Palm Coast, Florida-based Asnaco LLC filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-01907) on March 20, 2011. According to its schedules, the Debtor disclosed $11,297,894 in total assets and $21,928,117 in total debts as of the Petition Date. ASNACO LLC: BB&T Opposes Cash Collateral Use -------------------------------------------- Branch Banking and Trust Company has asked the U.S. Bankruptcy Court for the Middle District of Florida to prohibit Asnaco, LLC's use of cash collateral. BB&T says it holds a perfected security interests in all rents, profits, revenues, or other income generated from the Debtor's real property in Flagler County, Florida. The Property, valued at $11,180,000, consists of commercial condominium units, many of which are under lease to third party commercial tenants. The rents generated by third party leases constitute cash collateral of the Debtor's bankruptcy estate in which BB&T has perfected security interest pursuant to BB&T's mortgage on the Property. As of the Petition Date, BB&T is owed $12,934,196 plus post- judgment interest of $352,944. Post-judgment interest constitutes to accrue at the rate of $2,126 per day. On March 19, 2009, BB&T filed a complaint in Flagler County, Florida, seeking to foreclosure the Mortgage on the Property. On May 25, 2010, the state court entered an order in the lawsuit director the Debtor to deposit the net rents into the registry of the court, which was modified by an agreed order clarifying order requiring the Debtor to deposit collected rents into the court registry. On Oct. 5, 2010, the state court entered a final summary judgment of foreclosure, foreclosing the Mortgage and ordering judicial sale of the Property. By entering the foreclosure judgment, the state court divested the Debtor of its interest in the rents, which are no longer property of the state, BB&T claims. BB&T says that if the Debtor retains any interest in the rents following the adjudication set forth in the foreclosure judgment, then the rents constitute BB&T's cash collateral, and BB&T objects to the Debtor's use of its cash collateral. The Debtor hasn't yet filed a motion seeking authorization from the Court to use cash collateral. The Debtor hasn't contacted BB&T to offer any adequate protection for its use of cash collateral and has presented no budgets for the use of cash collateral. Although the Debtor filed monthly accountings of its use of the rents with the state court, BB&T objects to most of the monthly expenses being paid by the Debtor. BB&T claims that its cash collateral position continues to diminish, and that the Debtor has failed to disclose payments to creditors within 90 days of the Petition Date as required to its statement of financial affairs. The Debtor listed no payments to creditors within the 90-day period. BB&T's plea to prohibit use of cash collateral will be heard on June 13, 2011, at 10:00 a.m. BB&T is represented by: Jennifer L. Morando Jason A. Rosenthal THE ROSENTHAL LAW FIRM, P.A. 4798 New Broad Street, Suite 310 Orlando, FL 32814 Tel: (407) 488-1220 Fax: (407) 488-1228 Palm Coast, Florida-based Asnaco LLC filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-01907) on March 20, 2011. Walter J. Snell, Esq., at Snell & Snell, P.A., serves as the Debtor's bankruptcy counsel. According to its schedules, the Debtor disclosed $11,297,894 in total assets and $21,928,117 in total debts as of the Petition Date. ASNACO LLC: Jerry A. Funk Is Bankruptcy Judge --------------------------------------------- On March 21, 2011, the Honorable Jerry A. Funk was appointed as judge in Asnaco LLC's Chapter 11 bankruptcy case. Palm Coast, Florida-based Asnaco LLC filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-01907) on March 20, 2011. Walter J. Snell, Esq., at Snell & Snell, P.A., serves as the Debtor's bankruptcy counsel. According to its schedules, the Debtor disclosed $11,297,894 in total assets and $21,928,117 in total debts as of the Petition Date. ASSOC. OF GRAPHIC: Dist. Ct. Affirms Ruling on Super Nova Claim --------------------------------------------------------------- Super Nova 330 LLC took an appeal from Bankruptcy Judge Burton R. Lifland's decision (i) denying Super Nova's motion for payment of administrative expenses; (ii) holding that the landlord was not entitled to any administrative rent under 11 U.S.C. Sec. 365 (d)(3), and (iii) denying the landlord's cross-motion to amend to clarify that the alternative basis for seeking administrative rent arose under Sec. 503 (b)(1)(A). District Judge Robert W. Sweet affirmed the decision and dismissed the appeal. Association of Graphic Communications, Inc., was a lessee under a lease of non-residential real property dated Feb. 10, 1992, between Four Star Holding Company c/o David Yagoda, predecessor- in-interest to Super Nova, as landlord, and Association of the Graphic Arts, Inc., predecessor-in-interest to Debtor, as tenant, as amended by a Lease Modification and Extension Agreement dated Feb. 11, 2002. The Lease relates to a portion of the 9th Floor in the building known as 330 Seventh Avenue, in New York. The Lease expired by its terms on Feb. 28, 2007. In the summer or fall of 2006, the Debtor ceased business operations at the Premises and stopped paying rent. Super Nova served a demand for rent on Debtor on Oct. 13, 2006. When no payment was forthcoming, Super Nova commenced a nonpayment proceeding in the Civil Court of the City of New York, County of New York (L&T Index No. 101408/06). The Debtor defaulted in the L&T Proceeding, and Super Nova obtained a judgment of possession and warrant of eviction dated Feb. 1, 2007, the day before the Debtor filed its chapter 7 petition. The appellate case is IN RE: ASSOCIATION OF GRAPHIC COMMUNICATIONS, INC., No. 10 Civ. 6413 (S.D.N.Y.). A copy of the District Court's March 31, 2011 Opinion is available at Attorneys for Super Nova 330 are: Jay B. Itkowitz, Esq. Simon W. Reiff, Esq. ITKOWITZ & HARWOOD 305 Broadway, 7th Floor New York, NY 10007 Tel: (646) 822-1801 E-mail: jitkowitz@itkowitz.com Attorneys for the Chapter 7 Trustee are: Ian J. Gazes, Esq. John E. Oliva, Esq. GAZES LLC 32 Avenue of the Americas New York, NY 10013 Tel: (212) 765-9000 Fax: (212) 765-9675 E-mail: ian@gazesllc.com On Feb. 2, 2007, the Debtor filed a voluntary Chapter 7 petition (Bankr. S.D.N.Y. Case No. 07-_____). Ian J. Gazes was appointed to serve as Chapter 7 trustee. BEAR DOG: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Bear Dog, LLC 7621 Reynolds Cir Hungtington Beach, CA 92647 Bankruptcy Case No.: 11-14412 Chapter 11 Petition Date: March 30, 2011 Court: United States Bankruptcy Court Central District of California (Santa Ana) Judge: Mark S. Wallace Debtor's Counsel: David G. Epstein, Esq. THE DAVID EPSTEIN LAW FIRM P.O. Box 4858 Laguna Beach, CA 92652-4858 Tel: (949) 715-1500 Fax: (949) 715-2570 E-mail: david@epsteinlitigation.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Paul C. Bissin, managing member. BELLMARK RECORDS: Isbell v. DM Records Suit Goes to Trial --------------------------------------------------------- ALVERTIS ISBELL d/b/a ALVERT MUSIC, v. DM RECORDS, INC., Case No. 4:07-cv-00146 (E.D. Tex.), seeks a declaratory judgment that Alvert Music is the rightful owner of two musical compositions: "Dazzey Duks" and "Whoomp! (There It Is)." The events giving rise to this suit begin with business conducted by two companies, Alvert Music and Bellmark Records, each run by Mr. Isbell. Bellmark was purportedly a record company, owning sound recordings. Alvert Music is, and has been, a music publishing company, which owns musical compositions and not sound recordings. During the early 1990's, Bellmark entered into agreements to obtain the rights to the musical compositions for "Dazzey Duks" and 50% of "Whoomp! (There It Is)" for its affiliated publishing company, which was Alvert Music. Bellmark retained for itself the two sound recordings. In 1997, DM Records secured licenses from both of Mr. Isbell's companies to exploit both the musical compositions and sound recordings at issue. In April 1997, Bellmark filed a Chapter 11 petition in the United States Bankruptcy Court for the Eastern District of Texas, which petition was later converted into a Chapter 7 petition. In October 1999, DM purchased the assets of Bellmark Records from the bankruptcy estate, including the sound recordings of the two songs at issue. Alvert Music has not sought bankruptcy protection. Since that time, DM allegedly has proceeded with regard to the two songs in a manner inconsistent with Alvert Music's ownership of the musical composition rights thereto. In 2002, Mr. Isbell filed the lawsuit in the Northern District of Texas. That court transferred the matter to E.D. Tex. court, and the magistrate judge referred it to the bankruptcy court. The bankruptcy court issued a report and recommendation that the magistrate judge's referral be withdrawn, and the undersigned judge agreed. The matter is now pending before the E.D. Tex. court. DM filed a motion for summary judgment on July 2, 2010, arguing that Mr. Isbell's lawsuit is time-barred by the statute of limitations and the doctrine of laches. DM also seeks attorney's fees. Mr. Isbell filed request for sanctions against DM. In a March 31, 2011 Memorandum Opinion and Order, District Judge Richard A. Schell denied DM's and Mr. Isbell's motions. The Court held that the parties have materially conflicting accounts of when Mr. Isbell knew or should have known that the compositions at stake were first being exploited. The Court also found that the doctrine of laches, if applicable, does not justify summary judgment. A copy of Judge Schell's ruling is available at http://is.gd/G5tcpnfrom Leagle.com. BERNARD L MADOFF: FINRA Panel Orders Cohmad Pay $1.1MM to Victims ----------------------------------------------------------------- Bankruptcy Law360 reports that a Financial Industry Regulatory Authority panel on Tuesday ordered a former Cohmad Securities Corp. vice president to pay a group of investors $1.1 million for getting them to buy into Bernard L. Madoff's Ponzi scheme despite knowing it was a sham. Robert M. Jaffe, a Cohmad co-owner, cannot appeal the unanimous decision in favor of Turbo Investors LLC from the three-member FINRA panel, according to Law360. Meanwhile, Bankruptcy Law360 reports that Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York blocked investors' efforts Wednesday to remove the trustee overseeing the liquidation of Bernard L. Madoff's investment company and vacate a $220 million settlement with the heirs of Madoff associate Norman Levy. 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. BIG WHALE: Files Schedules of Assets & Liabilities -------------------------------------------------- The Big Whale, LLC, has filed with the U.S. Bankruptcy Court for the Eastern District of Wisconsin its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $12,149,800 B. Personal Property $128,847 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $12,443,550 E. Creditors Holding Unsecured Priority Claims $231,267 F. Creditors Holding Unsecured Non-priority Claims $938,386 ----------- ----------- TOTAL $12,278,647 $13,613,203 Headquartered in Milwaukee, Wisconsin, The Big Whale, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wis. Case No. 11-23756) on March 21, 2011. Justin M. Mertz, Esq., at Kerkman & Dunn, serves as the Debtor's bankruptcy counsel. BIG WHALE: Section 341(a) Meeting Scheduled for April 29 -------------------------------------------------------- The U.S. Trustee for Region 11 will convene a meeting of The Big Whale, LLC's creditors on April 29, 2011, at 10:00 a.m. The meeting will be held at U.S. Courthouse, Room 428, 517 East Wisconsin Avenue, Milwaukee, Wisconsin. 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. Headquartered in Milwaukee, Wisconsin, The Big Whale, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wis. Case No. 11-23756) on March 21, 2011. Justin M. Mertz, Esq., at Kerkman & Dunn, serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $12,278,647 in total assets and $13,613,203 in total debts as of the Petition Date. BIG WHALE: Taps Kerkman & Dunn as Bankruptcy Counsel ---------------------------------------------------- The Big Whale, LLC, asks for authorization from the U.S. Bankruptcy Court for the Eastern District of Wisconsin to employ Kerkman & Dunn as bankruptcy counsel. Kerkman & Dunn can be reached at: Justin M. Mertz, Esq. KERKMAN & DUNN 757 N. Broadway, Suite 300 Milwaukee, WI 53202 Tel: (414) 277-8200 E-mail: jmertz@kerkmandunn.com Kerkman & Dunn will charge the Debtors' estate based on the hourly rates of its professionals: Jerome R. Kerkman $310 Michael P. Dunn $310 Justin M. Mertz $225 Associate Attorneys $210-275 Non-Attorney Paraprofessionals $90 To the best of the Debtor's knowledge, Kerkman & Dunn is a "disinterested person" within the meaning of Section 101(14) of the bankruptcy code. Headquartered in Milwaukee, Wisconsin, The Big Whale, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wis. Case No. 11-23756) on March 21, 2011. In its schedules, the Debtor disclosed $12,278,647 in total assets and $13,613,203 in total debts as of the Petition Date. BLUEGREEN CORP: Incurs $35.87 Million Net Loss in 2010 ------------------------------------------------------ Bluegreen Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $35.87 million on $365.67 million of revenue for the year ended Dec. 31, 2010, compared with net income of $3.90 million on $367.36 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.25 billion in total assets, $936.79 million in total liabilities and $319.14 million in total shareholders' equity. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/rEy6cz About Bluegreen Corp. Bluegreen Corporation -- http://www.bluegreencorp.com/-- provides places to live and play through its resorts and residential community businesses. 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. S&P believes that Bluegreen will grow its fee-based sales commission revenue from $20 million in 2009 to an estimated $50 million in 2010. At this time, S&P expects that Bluegreen may be able to generate at least the same amount of commission based revenue in 2011. While the increase in fee- based revenue allowed Bluegreen to expand the level of sales that do not require financing, S&P believes that the company will likely remain heavily reliant on its lines of credit, receivable- backed warehousing facilities, and access to the timeshare securitization markets to fund timeshare sales. 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. BPP TEXAS: Asks for July 19 Extension to File Chapter 11 Plan ------------------------------------------------------------- BPP Texas LLC and its affiliated debtors have asked the U.S. Bankruptcy Court for the Eastern District of Texas to extend their exclusive period to file a Chapter 11 plan until July 19, 2011, and an additional 60-day extension thereafter for confirmation of the plan. The proposed extension would, among other things, allow appraisers retained by the Debtors and their primary secured lender, Citizens Bank of Pennsylvania, to conduct a valuation of their hotels. "A critical factor that will govern the formulation of the Debtors' plan is the value of the hotels, and both Citizens and the Debtors have retained professional appraisers to opine on such value without which it is not meaningfully possible to propose a realistic plan," said the Debtors' lawyer, Davor Rukavina, Esq., at Munsch Hardt Kopf & Harr PC, in Dallas, Texas. Mr. Rukavina said the deadline for filing proofs of claim against the Debtors have not yet expired, adding that knowing which creditors will file which claims is also important to the formulation of the plan. About BPP Texas Pittsburgh, Pennsylvania-based BPP Texas, LLC, along with BPP Illinois, LLC, BPP Iowa, LLC, BPP Michigan, LLC, BPP Minnesota, LLC, and BPP Wisconsin, LLC, own and operate 22 hotels located in Texas, Illinois, Iowa, Michigan, Minnesota, and Wisconsin. BPP Texas and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Lead Case No. 10-44378) on Dec. 21, 2010. Davor Rukavina, Esq., and Jonathan Lindley Howell, Esq., at Munsch Hardt Kopf & Harr, P.C., serve as the Debtors' bankruptcy counsel. BPP Texas estimated its assets at $1 million to $10 million and debts at $50 million to $100 million. Affiliates BPP Illinois, BPP Iowa, BPP Michigan, BPP Minnesota, and BPP Wisconsin filed separate Chapter 11 bankruptcy petitions. BPP Wisconsin estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. BPP TEXAS: Asks for July 19 Deadline to Assume Unexpired Lease -------------------------------------------------------------- BPP Texas LLC and its affiliated debtors have asked the U.S. Bankruptcy Court for the Eastern District of Texas to extend the deadline to assume an unexpired nonresidential real property lease to July 19, 2011. The Debtors are parties to only one unexpired nonresidential real property lease but which is potentially important to their reorganization efforts, according to their lawyer, Davor Rukavina, Esq., at Munsch Hardt Kopf & Harr PC, in Dallas, Texas. Mr. Rukavina said that BPP Wisconsin LLC, one of the debtor- affiliates, cannot operate its Super 8 hotel in Wauwatosa without the lease and may affect the company's ability to generate revenue postpetition. The Debtors have already explored potential lease terms with the landlord and begun reviewing the lease to determine whether BPP Wisconsin should assume the contract. The process, however, has not yet been completed. About BPP Texas Pittsburgh, Pennsylvania-based BPP Texas, LLC, along with BPP Illinois, LLC, BPP Iowa, LLC, BPP Michigan, LLC, BPP Minnesota, LLC, and BPP Wisconsin, LLC, own and operate 22 hotels located in Texas, Illinois, Iowa, Michigan, Minnesota, and Wisconsin. BPP Texas and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Lead Case No. 10-44378) on Dec. 21, 2010. Davor Rukavina, Esq., and Jonathan Lindley Howell, Esq., at Munsch Hardt Kopf & Harr, P.C., serve as the Debtors' bankruptcy counsel. BPP Texas estimated its assets at $1 million to $10 million and debts at $50 million to $100 million. Affiliates BPP Illinois, BPP Iowa, BPP Michigan, BPP Minnesota, and BPP Wisconsin filed separate Chapter 11 bankruptcy petitions. BPP Wisconsin estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. BROADCAST INT'L: Incurs $18.66 Million Net Loss in 2010 ------------------------------------------------------- Broadcast International, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $18.66 million on $7.31 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $13.38 million on $3.62 million of net sales during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $10.71 million in total assets, $26.63 million in total liabilities, and a $15.92 million total stockholders' deficit. HJ & Associates LLC, in Salt Lake City, expressed substantial doubt about the Company's ability to continue as a going concern, after auditing the Company's financial statements for the year 2009. The independent auditors noted that the Company has incurred recurring losses from operations and has a deficit in stockholders' equity and working capital. The audit report for the Company's financial statements for the end of 2010 did not contain a going concern qualification from the auditor. The Company's 2010 Annual Report did not contain a negative going concern statement. A full-text copy of the 2010 annual report on Form 10-K is available for free at http://is.gd/cOVIJV About Broadcast International Based in Salt Lake City, Broadcast International, Inc. installs, manages and supports private communication networks for large organizations that have widely-dispersed locations or operations. The Company owns CodecSys, a video compression technology to convert video content into a digital data stream for transmission over satellite, cable, Internet, or wireless networks, as well as offers audio and video production services. The Company's enterprise clients use its networks to deliver training programs, product announcements, entertainment, and other communications to their employees and customers. C-SWDE348 LLC: Files Schedules of Assets & Liabilities ------------------------------------------------------ C-SWDE348, LLC, has filed with the U.S. Bankruptcy Court for the District of Nevada its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $14,250,000 B. Personal Property $ 1,500 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $11,575,000 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $0 ----------- ----------- TOTAL $14,251,500 $11,575,000 Las Vegas, Nevada-based C-SWDE348, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-13942) on March 21, 2011. Scott Bogatz, Esq., at Bogatz & Associates, P.C., serves as the Debtor's bankruptcy counsel. Affiliates B-SWDE3, LLC (Bankr. D. Nev. Case No. 09-29051), et al., sought bankruptcy protection in 2009. C-SWDE348 LLC: Section 341(a) Meeting Scheduled for April 21 ------------------------------------------------------------ The U.S. Trustee for Region 17 will convene a meeting of C- SWDE348, LLC's creditors on April 21, 2011, at 2:00 p.m. The meeting will be held at 300 Las Vegas Boulevard, South, Room 1500, Las Vegas, Nevada. 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. Las Vegas, Nevada-based C-SWDE348, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-13942) on March 21, 2011. I Scott Bogatz, Esq., at Bogatz & Associates, P.C., serves as the Debtor's bankruptcy counsel. According to its schedules, the Debtor disclosed $14,251,500 in total assets and $11,575,000 in total debts as of the Petition Date. Affiliates B-SWDE3, LLC (Bankr. D. Nev. Case No. 09-29051), et al., sought bankruptcy protection in 2009. C-SWDE348 LLC: Taps Bogatz & Associates as Bankruptcy Counsel ------------------------------------------------------------- C-SWDE348, LLC, asks for authorization from the U.S. Bankruptcy Court for the District of Nevada to employ Bogatz & Associates, P.C., as bankruptcy counsel. Scott Bogatz, an attorney at B&A, charges $450 per hour for his services. On March 7, 2011, B&A entered into a written engagement agreement with the Debtor. That agreement provides that B&A be paid a flat fee of $7,500 by the Debtor for providing legal services to the Debtor in this case. To the best of the Debtor's knowledge, B&A is a "disinterested person" within the meaning of Section 101(14) of the bankruptcy code. Las Vegas, Nevada-based C-SWDE348, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-13942) on March 21, 2011. According to its schedules, the Debtor disclosed $14,251,500 in total assets and $11,575,000 in total debts as of the Petition Date. Affiliates B-SWDE3, LLC (Bankr. D. Nev. Case No. 09-29051), et al., sought bankruptcy protection in 2009. CADANT INC: 7th Circ. Revives Investor Suit Over Cadant Loans ------------------------------------------------------------- Bankruptcy Law360 reports that the Seventh Circuit on Tuesday revived a shareholder suit accusing several directors of bankrupt modem company Cadant Inc. of committing disloyal acts when they negotiated an ill-fated deal for a pair of bridge loans with J.P. Morgan Partners LLC and Venrock Associates. Cadant, a Maryland corporation with its principal place of business in Illinois, was formed in 1998 by Venkata Majeti and others to develop cable modem termination systems, which enable high-speed Internet access to home computers. In 2000, the board turned down a tentative offer by ADC Telecommunications to buy Cadant for some $300 million. By the beginning of 2001, Cadant, like many other start-up companies in Internet-related businesses, was in deep financial trouble. In 2002, Cadant filed for bankruptcy. CALVARY BAPTIST: Disclosure Statement Hearing Set on May 11 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Georgia has set May 12, 2011, at 11:00 a.m. as the hearing date to consider approval of Calvary Baptist Temple's disclosure statement. The Debtor submitted a Chapter 11 plan and the accompanying disclosure statement on Feb. 16, 2011. The Plan contemplates that the Debtor's property on Veteran's Parkway will be returned to Reliance Trust Company except approximately 16 acres, which will be transferred to a limited liability company for the benefit of Series II bondholders who hold a secured secondary lien on the property for the benefit of Reliance Trust Company amounting $500,000. SunTrust Bank, which is a secured creditor will be paid in full over a 15-year period. At the disclosure statement hearing, the Court will determine the secured status of all parties claiming liens on property of the Debtors' estate and will determine the value of such property pursuant to Sec. 506 of the Bankruptcy Code. Unless a party in interest objects to the Debtor's valuation of assets as shown in the Disclosure Statement, the Debtor's values will be accepted by the Court. Pursuant to the Disclosure Statement, the Debtor has $43,021,534 total assets. Claims filed against the Debtor total $22,098,611. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CLVRYBPTST_DS0401.pdf Headquartered in Savannah, Georgia, Calvary Baptist Temple filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ga. Case No. 10- 40754) on April 6, 2010. The Company estimated its assets and debts at $10,000,001 to $50,000,000. CAPITAL SHORES: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Capital Shores Investments LLC 1411 State Ave NE #100 Olympia, WA 98506 Bankruptcy Case No.: 11-42091 Chapter 11 Petition Date: March 18, 2011 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Brian D. Lynch Debtor's Counsel: Kevin A. Bay, Esq. RYAN SWANSON & CLEVELAND PLLC 1201 3rd Ave., Suite 3400 Seattle, WA 98101-3034 Tel: (206) 464-4224 E-mail: bay@ryanlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb11-42091.pdf The petition was signed by Tri M. Vo, sole member and manager. CAPITOL BANCORP: Files Form 10-K; Posts $254.4-Mil. Net Loss ------------------------------------------------------------ Capitol Bancorp Ltd. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K on March 31, 2011. No schedules are included in the Report because the Company's financial statements has already been filed in a press release dated March 3, 2011. In the March 9, 2011 edition of the TCR, the Company 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 a $38.68 million total deficit. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/OZmWmp About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE: CBC) -- http://www.capitolbancorp.com/-- is a $5.1 billion national community banking company, with a network of bank operations in 16 states. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan and Phoenix, Arizona. 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 such securities approximated $18.1 million at June 30, 2010. CARDIUM THERAPEUTICS: Expects $4.7MM Loss, Going Concern Doubt -------------------------------------------------------------- Cardium Therapeutics. Inc., presented in a press release Thursday highlights of financial results for its fourth quarter and fiscal year ended Dec. 31, 2010, and other recent developments and outlook for 2011. The Company said in the press release that the filing of its annual report for 2010 will be delayed as the Company and its auditors are still assessing with the staff of the Division of Corporate Finance of the Securities and Exchange Commission the most appropriate accounting treatment for certain types of warrants previously issued by the Company. Cardium indicated that an audit opinion expected to accompany its consolidated financial statements for the year ended Dec. 31, 2010, would again contain a going concern qualification from its independent registered public accounting firm, Marcum LLP. "In the upcoming year, we plan to commercialize our Excellagen product candidate through the pending FDA 510(k) clearance and develop new product extensions based on our custom formulated collagen product platform for additional wound healing applications, initiate the ASPIRE Generx clinical study in Russia, which is pending clearance from the Russian Ministry of Health, introduce product line extensions to grow our MedPodium(TM) modern lifestyle product platform, and continue to review acquisitions of other companies and businesses, as well as licenses covering product opportunities and technologies on favorable economic terms consistent with our long-term business strategy," stated Christopher J. Reinhard, Cardium's Chairman and Chief Executive Officer. For the fourth quarter ended Dec. 31, 2010, the Company presented net income of $443,000, compared to net income of $9.3 million for the same period in 2009. The decrease in net income during this period was due to a favorable change in fair value of derivative liabilities of $1.5 million recorded in the fourth quarter of 2010 compared to $11.4 million recorded in the fourth quarter of 2009. For the year ended Dec. 31, 2010, Cardium presented a net loss of $4.7 million, compared to a net loss of $11.7 million for the year ended Dec. 31, 2009. Revenue for the year ended Dec. 31, 2010 was $245,000, which represented a one-time grant from the U.S. Government's Qualifying Therapeutic Discovery Project program to further the Company's Generx clinical development program, compared to $445,000 for the previous year, which was revenue earned under a Grant awarded by the National Institute of Health. At Dec. 31, 2010, the Company's balance sheet showed $9.5 million in total assets, $2.1 million in total liabilities, and stockholders' equity of $7.4 million. Cardium ended the 2010 year with a total of $8.0 million in cash ($6.6 million in cash and $1.4 million in restricted cash) compared to $4.8 million ($3.4 million in cash and $1.4 million in restricted) the previous year. During 2010, the Company completed a common stock offering with institutional and retail investors resulting in gross proceeds of $11.3 million before placement fees and offering expenses. A complete text of the press release is available for free at: http://is.gd/4BN7HR San Diego, Calif.-based Cardium Therapeutics, Inc. (NYSE AMEX: CXM) -- http://www.cardiumthx.com/-- is focused on the acquisition and strategic development of new and innovative bio-medical product opportunities and businesses that have the potential to address significant unmet medical needs and definable pathways to commercialization, partnering and other economic monetizations. Cardium's current investment portfolio includes the Tissue Repair Company, Cardium Biologics, and the Company's in-house MedPodium healthy lifestyle product platform. The Company's lead product candidates include Excellagen(TM) topical gel for wound care management, and Generx(R) DNA-based aiogenic biologic for patients with coronary artery disease. Marcum LLP, in New York, expressed substantial doubt about the Cardium Therapeutics' ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2009. The independent auditors noted that the Company has had recurring operating losses since its inception and must raise additional capital from external sources in order to sustain the business. CCS CORPORATION: Bank Debt Trades at 5% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which CCS Corporation, formerly known as CCS Income Trust, is a borrower traded in the secondary market at 94.59 cents-on-the-dollar during the week ended Friday, April 1, 2011, an increase of 0.60 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Nov. 5, 2014, and carries Moody's 'B2' rating and Standard & Poor's 'B' rating. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. CCS Corporation is an opportunity-rich growth organization that provides energy and environmental waste management services. Focused on disciplined growth, CCS maintains its long-term comprehensive commitment to environmental stewardship by continually setting -- and raising -- industry standards. CCS services the global energy and environment sectors through four major divisions; CCS Midstream Services, CCS Energy Marketing, HAZCO Environmental & Decommissioning Services and Concord Well Servicing. CCS was formerly known as CCS Income Trust and changed its name on Nov. 14, 2007. The Company was founded in 1984 and is based in Calgary, Canada. CHEMICAL BUILDING: Bank Forecloses Building at $3.36 Million ------------------------------------------------------------ The St. Louis Business Journal reports that Centrue Bank foreclosed on the Chemical Building downtown with a sole bid of $3.36 million. According to the report, Thomas Daiber, president and CEO of Centrue Financial, the parent of Centrue Bank, said the bank plans to sell the 17-story building in the 700 block of Olive Street and will soon begin discussions with interested buyers. "It is a beautiful building and we hope to sell the building to someone interested in developing it into an asset for downtown St Louis," the journal quotes Mr. Daiber as saying. The report says the owner of the 177,000-square-foot building, Chemical Building Acquisition LLC, an investor group based near Los Angeles, had planned to rename the building Alexa and convert it into condos and later, stores, offices and apartments. But Chemical Building filed for Chapter 11 bankruptcy protection, with $7.8 million owing to Centrue. Based in Santa Monica, California, Chemical Building Acquisition LLC filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 10-51171) on Sept. 28, 2010. Judge Charles E. Rendlen, III, presides over the case. A. Thomas DeWoskin, Esq., at Danna McKitrick, PC, represents the Debtor. The Debtor estimated assets of between $1 million and $10 million, and debts of between $10 million and $50 million. CHRISTENSEN REALTY: Disclosure Statement Hearing on Wednesday ------------------------------------------------------------- Christensen Realty Investment LLC filed with the U.S. Bankruptcy Court for the District of Idaho amended the reorganization plan and explanatory disclosure statement that promises that creditors will be paid in full. The Bankruptcy Court has continued the hearing to April 6, 2011, at 1:30 p.m., to consider the approval of the adequacy of the Disclosure Statement. Under the Plan, the 9th and Bannock Parking garage, the sole asset of the Debtor will be sold in an all cash transaction to Jeff Stoddard or assigns. Debtor will continue to make full monthly payments to BPG LLC until closing at which time BPG will be paid the principal amount of $7,100,000 plus accrued interest to date of closing, plus costs approved by the Court. The sale of the garage will close within 90 days of confirmation. The McAlvain claim for $1,321,983 plus costs approved by the court will also be paid from the Stoddard transaction. Additional funds as necessary will be contributed to Debtor by Gary F. Christensen within three days of closing. This will provide for treatment of the property tax claims and general unsecured claims, if any. The Debtor believes there are no unsecured claims. The Plan also provides for the payment of administrative and priority claims to Debtor's attorney upon approval by the Court. The administrative claims shall be paid upon the effective date of the plan. A full-text copy of the Disclosure Statement, as amended, is available for free at http://ResearchArchives.com/t/s?7586 A full-text copy of the Chapter 11 plan, as amended, is available for free at http://ResearchArchives.com/t/s?7587 About Christensen Realty Boise, Idaho-based Christensen Realty & Investment, LLC, dba 9th & Bannock Garage, filed for Chapter 11 protection (Bankr. D. Idaho Case No. 10-02537) on Aug. 10, 2010. D. Blair Clark, Esq., at the Law Offices of D. Blair Clark PLLC, represents the Debtor. The Debtor disclosed $10,626,402 in assets and $8,352,772 in liabilities as of the Chapter 11 filing. CICERO INC: Extends Maturity of SOAdesk $1.2-Mil. Notes to 2012 --------------------------------------------------------------- Cicero Inc. and SOAdesk, LLC, entered into (i) an Amendment No. 3 to the $700,000 aggregate principal amount unsecured convertible note that was issued to SOAdesk under the Asset Purchase Agreement, dated as Jan. 15, 2010, between the Company, SOAdesk and Vertical Thought, Inc., and (ii) an Amendment No. 3 to the $525,000 aggregate principal amount unsecured convertible note that was issued to SOAdesk under the Asset Purchase Agreement. The purpose of the Note Amendments was to extend the maturity of each of the $700,000 Note and the $525,000 Note to March 31, 2012. In connection with the Note Amendments, the Company issued a five- year warrant to SOAdesk to purchase up to 100,000 shares of its common stock at an exercise price of $0.08 per share. About Cicero, Inc. Cary, N.C.-based Cicero, Inc., provides business integration software solutions and also provides technical support, training and consulting services as part of its commitment to providing customers with industry-leading solutions. The Company focuses on the customer experience management market with emphasis on desktop integration and business process automation with its Cicero XM(TM) products. Cicero XM enables the flow of data between different applications, regardless of the type and source of the application, eliminating redundant entry and costly mistakes. The Company's balance sheet as of Sept. 30, 2010, showed $5.08 million in total assets, $13.85 million in total liabilities, and a stockholders' deficit of $8.77 million. The Company has incurred losses of $1.28 million and $823,000 for the years ended Dec. 31, 2009 and 2008, respectively, and has experienced negative cash flows from operations for each of the past three years. For the nine months ended Sept. 30, 2010, the Company incurred a net loss of $2.57 million, and had a working capital deficiency of $10.92 million as of Sept. 30, 2010. "The Company anticipates that it will raise additional funds in the next several months however, there can be no assurance the Company will be able to do so. Despite the recent additions of several new clients, the Company continues to struggle to gain additional sources of liquidity on terms that are acceptable to the Company. As such, there is substantial doubt of the Company's ability to continue as a going concern." CIRTRAN CORP: Delays Filing of 2010 Annual Report ------------------------------------------------- CirTran Corporation notified the U.S. Securities and Exchange Commission that its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2010, could not be filed without unreasonable effort or expense within the prescribed time period because management requires additional time to compile and verify the data required to be included in the report. The report will be filed within 15 days of the date the original report was due. About CirTran Corporation West Valley City, Utah-based CirTran Corporation (OTC BB: CIRC) -- http://www.CirTran.com/-- markets and manufactures energy drinks under the Playboy brand pursuant to a license agreement with Playboy Enterprises, Inc. The Company also provides turnkey manufacturing services and products using various high-tech applications for electronics manufacturers in various industries. The Company's balance sheet at Sept. 30, 2010, showed $15.69 million in total assets, $22.53 million in total liabilities, and a stockholders' deficit of $6.83 million. CLAIRE'S STORES: Closes $450MM of 8.875% Sr. Notes Offering ----------------------------------------------------------- Claire's Stores, Inc., announced the closing of its previously- announced offering of $450 million aggregate principal amount of 8.875% senior secured second lien notes due 2019. The Notes were issued at par. The Notes were initially issued by Claire's Escrow Corporation, a wholly-owned first-tier subsidiary of the Company, created solely to issue the Notes. Immediately subsequent to the issuance, the escrow conditions were met, the funds were released and the Escrow Issuer merged with and into the Company. The Notes are guaranteed by all of the Company's direct or indirect wholly-owned domestic restricted subsidiaries which guarantee the Company's senior secured credit facility and secured on a second-priority basis by all assets of the Company and the guarantors that are pledged as collateral to secure the Company's senior secured credit facility. The Company used the net proceeds of the offering of the Notes to reduce outstanding indebtedness under the Company's current credit facility. The Notes were offered only to "qualified institutional buyers" in reliance on Rule 144A under the Securities Act of 1933, as amended, and outside the United States only to non-U.S. persons in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- is a specialty retailer offering accessories and jewelry for kids, tweens, teens, and young women in the 3 to 27 age range. The Company is organized based on its geographic markets, which include North American division and European division. As of January 30, 2010, it operated a total of 2,948 stores, of which 1,993 were located in all 50 states of the United States, Puerto Rico, Canada, and the United States Virgin Islands (its North American division) and 955 stores were located in the United Kingdom, France, Switzerland, Spain, Ireland, Austria, Germany, Netherlands, Portugal, and Belgium (its European division). Its stores operate under the trade names Claire's and Icing. In addition, as of Jan. 30, 2010, it franchised 195 stores in the Middle East, Turkey, Russia, South Africa, Poland, Greece, Guatemala and Malta under franchising agreements. It also operates 211 stores in Japan through its Claire's Nippon 50:50 joint venture with AEON Co. Ltd. The Company's balance sheet at Oct. 30, 2010, showed $2.79 billion in total assets, $218.86 million in total current liabilities, $2.62 billion in long-term debt, and a stockholders' deficit of $47.89 million. Claire's Stores carries 'Caa2' corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service, and 'B-' issuer credit ratings, with 'stable' outlook, from Standard & Poor's. Moody's Investors Service in December 2010 upgraded Claire's Stores' ratings, including its Corporate Family Rating and Probability of Default Rating, to Caa2 from Caa3. The upgrade reflects a decrease in Claire's probability of default given that the company can now fully cover its interest expense. This is due to earnings improvement from solid comparable store sales growth, improved merchandise margins, and continued expense discipline. Claire's Caa2 Probability of Default Rating reflects Moody's view that although Claire's credit metrics have improved, they remain very weak as a result of its heavy debt load. For the twelve months ending October 30, 2010, Claire's debt to EBITDA was very high at 9.3 times. COATES INT'L: Incurs $1.05 Million Net Loss in 2010 --------------------------------------------------- Coates International, Ltd., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $1.05 million on $159,000 of sales for the year ended Dec. 31, 2010, compared with a net loss of $806,756 on $0 of sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $2.99 million in total assets, $4.11 million in total liabilities, and a $1.12 million in stockholders' deficiency. Meyler & Company, LLC, in Middletown, New Jersey, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company continues to have negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/ANENy2 About Coates International Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. CONNECTOR 2000: Court Confirms Chapter 9 Payment Plan ----------------------------------------------------- Bankruptcy Judge David R. Duncan issued an order on April 1 confirming Connector 2000 Association, Inc.'s First Amended Plan for Adjustment of Debts Pursuant to Chapter 9 of the Bankruptcy Code. Judge Duncan held that the Debtor's Plan has satisfied the confirmation requirements of the Bankruptcy Code. As reported in the Troubled Company Reporter on Jan. 24, 2011, the approval of the disclosure statement explaining the Plan was made possible by a settlement with the South Carolina Department of Transportation. In July, the SCDOT sought dismissal of the Chapter 9 case because Connector 2000 is not a "municipality". The settlement avoided holding trial on eligibility for Chapter 9. The Plan deals with $224 million in senior bonds, $88 million in subordinated bonds, and $20 million in other liabilities. The Plan calls for giving the senior bondholders about $146 million in Tier 1 and Tier 2 bonds. The new bonds will mature between 2011 and 2051. Subordinated debt holders, if they vote for the plan, would receive $2.2 million in Tier 3 bonds. The revised Disclosure Statement says that the Tier 1 bonds will consume 71.5% of projected net revenue while the second-tier bonds take up 16.5% of net revenue. A copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/Connector2000_DS.pdf The Plan provides for the settlement of a Class 6 claim filed by Lehman Brothers Inc. Under the Plan, Lehman will be allowed an $800,000 claim. Thomas Stoeckmann sent a letter to the Bankruptcy Court objecting to confirmation. Judge Duncan, however, overruled the objection. A copy of the Court's April 1, 2011 Confirmation Order is available at http://is.gd/ra1YDPfrom Leagle.com. About Connector 2000 Piedmont, South Carolina-based Connector 2000 Association Inc., is a non-profit association set up by the South Carolina Department of Transportation to finance, construct and operate the 16-mile toll road known as the "Southern Connector" in Greenville County, and to build the South Carolina Highway 153 Extension. Connector 2000 filed for bankruptcy protection under Chapter 9 Chapter 9 of the Bankruptcy Code (Bankr. D. S.C. Case No. 10- 04467) on June 24, 2010, estimating both assets and debts to be between $100 million and $500 million. Judge David R. Duncan presides over the case. Stanley H. McGuffin, Esq., at Haynsworth Sinkler Boyd P.A., serves as bankruptcy counsel. CONSPIRACY ENTERTAINMENT: Delays Filing of 2010 Annual Report ------------------------------------------------------------- Conspiracy Entertainment Holdings, Inc., informed the U.S. Securities and Exchange Commission that the compilation, dissemination and review of the information required to be presented in the Form 10-K for the period ended Dec. 31, 2010, has imposed time constraints that have rendered timely filing of the Form 10-K impracticable without undue hardship and expense. The Company said it undertakes the responsibility to file such report no later than fifteen days after its original prescribed due date. About Conspiracy Entertainment Conspiracy Entertainment Holdings, Inc. (OTC BB: CPYE), through its wholly owned subsidiary, Conspiracy Entertainment Corporation, is a developer, publisher and marketer of entertainment software in North America and Western Europe. Conspiracy Entertainment was founded in 1997 and is based in Santa Monica, California. The Company's balance sheet at Sept. 30, 2010, showed $5,256,462 in assets, $10,216,852 in liabilities and a $4,960,390 stockholders' deficit. Conspiracy Entertainment reported a net loss of $979,968 for 2009 from net income of $265,603,000 for 2008. Net sales were $9,600,592 for 2009 from $10,905,490 for 2008 CONTECH CONSTRUCTION: Debt Trades at 13% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Contech Construction Products, Inc., is a borrower traded in the secondary market at 87.40 cents-on-the-dollar during the week ended Friday, April 1, 2011, an increase of 0.40 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 31, 2013, and carries Moody's 'Caa1' rating and Standard & Poor's 'B' rating. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Contech Construction Headquartered in West Chester, Ohio, Contech Construction Products, Inc. -- http://www.contech-cpi.com/-- makes, distributes, and installs civil engineering products related to environmental storm water, drainage, bridges, walls, and earth stabilization. Contech has dealers, distributors, or manufacturing plants in all 50 U.S. states and a national sales organization of more than 350 people. Investment firm Apax Partners owns Contech. * * * As reported by the Troubled Company Reporter on Dec. 6, 2010, Moody's Investors Service confirmed Contech Construction's 'Caa1' Corporate Family Rating. In a related rating action Moody's changed Contech's Probability of Default Rating to 'Caa2/LD' since it converted approximately $240 million of debt to equity. Moody's will remove the PDR's LD modifier after three business days. Moody's also lowered the ratings of the senior secured bank credit facility to 'Caa1' from 'B3'. The rating outlook is stable. The 'Caa1' Corporate Family Rating reflects ongoing pressures in the North American construction industry, the driver of Contech's revenues, combined with the company's credit metrics even after completing a debt-to-equity conversion. The TCR, on Nov. 4, 2010, reported that Standard & Poor's Ratings Services lowered its corporate credit rating on Ohio-based Contech Construction Products, Inc., to 'SD' from 'CC'. S&P removed the rating from CreditWatch, where it was placed with negative implications on June 18, 2010. This rating action is determined by S&P's criteria for distressed debt exchanges, not due to unexpected business developments. At the same time, S&P revised its CreditWatch implications on Contech's outstanding senior secured debt to positive from negative. "These rating actions follow the completion of Contech's financial restructuring with its debt and equity holders, which reduces the company's outstanding debt by approximately $240 million," said Standard & Poor's credit analyst Thomas Nadramia. CUMBEE RD: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Cumbee Rd Partners, LLC 6263 Ingleside Drive Wilmington, NC 28409 Bankruptcy Case No.: 11-02084 Chapter 11 Petition Date: March 17, 2011 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: George M. Oliver, Esq. OLIVER & FRIESEN, PLLC P.O. Box 1548 New Bern, NC 28563 Tel: (252) 633-1930 Fax: (252) 633-1950 E-mail: efile@oliverandfriesen.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb11-02084.pdf The petition was signed by Adam Lisk, member manager. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Carol Lynn Properties, LLC 10-01781 03/05/10 Old Mill Forestry, LLC 10-09782 11/29/10 D & G CONTRACTORS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: D & G Contractors, Inc. 143 Division Drive Leland, NC 28451 Bankruptcy Case No.: 11-02061 Chapter 11 Petition Date: March 17, 2011 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: J. Rich Leonard Debtor's Counsel: Algernon L. Butler, III, Esq. BUTLER & BUTLER, L.L.P. P.O. BOX 38 Wilmington, NC 28402 Tel: (910) 762-1908 Fax: (910) 762-9441 E-mail: albutleriii@butlerbutler.com Scheduled Assets: $558,896 Scheduled Debts: $2,055,894 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb11-02061.pdf The petition was signed by Gene A. Robbins, president. DEX MEDIA EAST: Bank Debt Trades at 22% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 77.95 cents-on- the-dollar during the week ended Friday, April 1, 2011, an increase of 1.52 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media East Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc., and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East, LLC, is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. (Qwest) in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes due April 15, 2009. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co-counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DEX MEDIA WEST: Bank Debt Trades at 11% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media West LLC is a borrower traded in the secondary market at 88.60 cents-on- the-dollar during the week ended Friday, April 1, 2011, an increase of 1.35 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media West Dex Media West LLC is a subsidiary of Dex Media West, Inc., and an indirect wholly owned subsidiary of Dex Media, Inc. Dex Media is a direct wholly owned subsidiary of R.H. Donnelley Corporation. Dex Media West is the exclusive publisher of the official yellow pages and white pages directories for Qwest Corporation, the local exchange carrier of Qwest Communications International, Inc., in Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes due April 15, 2009. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represented the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, served as the Debtors' local counsel. The Debtors' financial advisor was Deloitte Financial Advisory Services LLP while its investment banker was Lazard Freres & Co. LLC. The Garden City Group, Inc., was claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co- counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DIAGNOSTIC VENTURES: Clifford Chance Dropped from Investor Action ----------------------------------------------------------------- Bankruptcy Law360 reports that the Third Circuit upheld a class certification ruling on Tuesday that snips Clifford Chance LLP from a group of defendants that investors claim were implicated in an alleged fraud that led to the 2003 bankruptcy of Diagnostic Ventures Inc. Diagnostic Ventures, Inc., was a healthcare finance company that extended loans to medical providers to facilitate the purchase of diagnostic medical equipment and leasehold improvements, and offered lines of credit for working capital secured by healthcare receivables. Founded in 1986, DVI was a publicly traded company with reported assets of $1.7 billion in 2003. Its common stock began trading on the New York Stock Exchange in 1992. It issued two tranches of 9 7/8% senior notes: the first, issued in 1997, totaled $100 million; the second, issued in 1998, totaled $55 million. On Aug. 13, 2003, DVI announced it would file for Chapter 11 bankruptcy protection resulting from the public disclosure of alleged misrepresentations or omissions as to the amount and nature of collateral pledged to lenders. In the ensuing years, its common stock and 1997 Notes were de-listed from the NYSE, the Securities and Exchange Commission and Department of Justice undertook investigations, its former Chief Financial Officer, Steven Garfinkel, pleaded guilty to fraud, the bankruptcy trustee and multiple lenders filed lawsuits, and the company dissolved. DIGITAL POST: Case Summary & 13 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Digital Post Inc. 4040 Barranca Pkwy Irvine, CA 92604 Bankruptcy Case No.: 11-14460 Chapter 11 Petition Date: March 30, 2011 Court: United States Bankruptcy Court Central District of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Babak Samini, Esq. ASG LAW FIRM LLP 17900 Von Karman Ave Suite 150 Irvine, CA 92614 Tel: (949) 724-0900 Fax: (949) 724-0901 E-mail: bsamini@alsalaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-14460.pdf The petition was signed by Michael Sawtell, president. DOT VN: Online Traffic Across INFO.VN Web Properties Increases -------------------------------------------------------------- Dot VN, Inc., announced that it is experiencing substantial increases in the online traffic across its INFO.VN web properties. To date, the combined traffic from all of the INFO.VN portals is averaging over 298,000 pageviews per day and serves over 202,000 absolute unique visitors worldwide per day. Designed to be the ultimate Internet portal that aggregates and organizes everything the Vietnamese Internet has to offer, INFO.VN is now ranked as the 216th most popular site in Vietnam, according to Alexa.com, an Internet tracking firm with an unparalleled database of information about site statistics. Based on its current progress Dot VN expects to exceed 9,000,000 pageviews per month and 6,100,000 absolute unique visitors per month by the end of June. Dot VN has begun monetizing INFO.VN and will begin offering banner ad sales as of the 1st of April. "I am very pleased with the strong response and robust growth of our INFO.VN platform, especially in the area of pageviews which is a key determinant for online advertising revenue. We are on track to break 9,000,000 monthly pageviews in the coming months and we expect this number to grow as our new services such as the online classified ads and job placement service launch," said Dot VN CEO Thomas Johnson. INFO.VN is built for individual and business users both in Vietnam and around the world as a main hub for news, entertainment and information available in one central and easy to navigate Web site. The Web site is available in both Vietnamese -- http://www.info.vn-- and English http://en.www.info.vn/,making access easier for non-Vietnamese speaking users and offers a variety of services including a business directory and forthcoming classified ad and job placement service. About Dot VN Dot VN, Inc. (OTC BB: DTVI) -- http://www.DotVN.com/-- provides Internet and telecommunication services for Vietnam and operates and manages Vietnam's innovative online media web property, www.INFO.VN. The Company is the "exclusive online global domain name registrar for .VN (Vietnam)." Dot VN is the sole distributor of Micro-Modular Data Centers(TM) solutions and E-Link 1000EXR Wireless Gigabit Radios to Vietnam and Southeast Asia region. Dot VN is headquartered in San Diego, California with offices in Hanoi, Danang and Ho Chi Minh City, Vietnam. Dot VN was incorporated in the State of Delaware on May 27, 1998, under the name Trincomali Ltd. The Company's balance sheet at Jan. 31, 2011, showed $2.74 million in total assets, $10.92 million in total liabilities and $8.18 million in total shareholders' deficit. Dot VN reported a $7.3 million net loss on $1.1 million of revenues for the fiscal year ended April 30, 2010, compared with a $5.4 million net loss on $1.0 million of revenues for the same period a year ago. Following the Company's results for fiscal 2010, Chang G. Park CPA expressed substantial doubt against Dot VN's ability to continue as a going concern, citing the Company's losses from operations. DOWNEY REGIONAL: City Rejects $1.5-Mil. Offer for Hospital Land --------------------------------------------------------------- Eric Pierce at the Downey Patriot reports that Downey Regional Medical Center, in an effort to obtain collateral that could help it emerge from Chapter 11 bankruptcy, recently made two offers to purchase the city of Downey-owned land the hospital is located on but were quickly rebuffed. According to the report, the hospital offered $1.5 million for the eight acres last fall, and a revised offer last month in which a court-appointed appraiser would determine the land's fair market value, city attorney Yvette Abich Garcia said. Both offers were rejected. Mayor Luis Marquez said the initial offer of $1.5 million fell well short of the land's appraised value of $10 million, and added that a sale would require approval by Downey voters. About Downey Regional Downey Regional Medical Center is a 90-year-old, 199-bed, not-for- profit regional hospital and medical center in Southeast Los Angeles County. Regional Medical sought Chapter 11 protection (Bankr. C.D. Calif. Case No. 09-34714) on Sept. 14, 2009. Lisa Hill Fenning, Esq., at Arnold & Porter LLP in Los Angeles, represents the Debtor in its restructuring effort. In its petition, the Debtor estimated assets and debts between $10 million and $50 million. ECOVENTURE WIGGINS: Ironshore Unit Acquires Pelican Isle Property ----------------------------------------------------------------- Laura Layden at NaplesNews.com reports that an affiliate of Ironshore Capital LLC has purchased the residential tower and its marina at Pelican Isle in North Naples. It was an all-cash deal, but the purchase price wasn't disclosed. The property was sold by a group of financial institutions led by Regions Bank. According to the report, the project ended up in the hands of its lenders after the project's developer, EcoVenture Wiggins Pass Ltd., filed for Chapter 11 bankruptcy. About Ecoventure Wiggins Ecoventure Wiggins Pass Ltd. owned a luxury condominium project in Naples, Florida, known as the Aqua at Pelican Isle Yacht Club. The Company and two of its affiliates, Aqua at Pelican Isle Yacht Club Marina Inc. and Pelican Isle Yacht Club Partners, Ltd., filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 08-09197) on June 24, 2008. Harley E. Riedel, Esq., and Stephen R. Leslie, Esq., at Stichter, Riedel, Blain & Prosser, represent the Debtors in their restructuring efforts. The Company disclosed assets of $134,000,000 and debts of $101,000,000 as of the Chapter 11 filing. EL AMAL: Files for Chapter 11 Bankruptcy Protection --------------------------------------------------- El Amal President Mahammad Yassin said that the Company has filed for Chapter 11 bankruptcy, El Nuevo Dia reports. El Nuevo relates that Mr. Yassin blamed the Company's collapse on Puerto Rico's economic situation and banking crisis. According to the Bloomberg Terminal, the Company, under Saleh Yassin, Mahammad Yassin's father, filed for Chapter 11 bankruptcy protection in March 2009. El Amal is a 22-store pharmacy chain in Puerto Rico. EMISPHERE TECHNOLOGIES: Errors Found in 2009 and 2010 Financials ---------------------------------------------------------------- Management of Emisphere Technologies, Inc., after consulting with the Audit Committee of the Board of Directors and with McGladrey and Pullen, LLP, its independent registered public accounting firm, concluded that the Company's previously issued financial statements included in its quarterly interim period reports previously reported on Forms 10-Q for the periods ended March 31, June 30, and Sept. 30, 2009 and 2010, and its annual report on Form 10-K for the period ended Dec. 31, 2009, should no longer be relied upon due to errors in the application of accounting guidance regarding the determination of whether a financial instrument is indexed to its own stock. At the time these financial statements were originally issued, the Company had reviewed its accounting for the adoption of Financial Accounting Standards Board Accounting Codification Topic 815-40-15-5, "Evaluating Whether an Instrument Is Considered Indexed to an Entity's Own Stock" and concluded it was in accordance with GAAP. The Company's adoption of the Guidance was not straightforward because GAAP specifies the application of a level interest method to amortize interest and debt discounts in accordance with FASB 835-30-35-2, "The Interest Method". In adopting the guidance, the Company estimated the fair value of the bifurcated conversion feature embedded in the Company's 11% senior secured convertible notes in favor of MHR Institutional Partners IIA due Sept. 26, 2012 as a derivative liability and developed an amortization schedule to recognize non-cash interest expense and debt discounts over time. In accordance with the guidance, the Company deducted the incremental value of the conversion feature from the book value of the instrument at its inception. Because the fair value of the conversion feature was in excess of the book value of the instrument, the Company believed it could not apply a level rate method to determine the amortization schedule because the resulting book value would have been $0 and because it is mathematically impossible to apply a level interest rate to amortize from a $0 balance. Therefore, the Company developed an amortization schedule that it believed was consistent with the adoption of the new accounting guidance and was still representative of the economic substance of the financial instrument. This accounting treatment was reflected in the Company's financial statements during the Financial Statement Periods. McGladrey audited the Company's financial statements for 2009. The Company's Audit Committee and Management discussed the results of the audit including a review of financial statements for 2009 with McGladrey. On March 24, 2011, McGladrey notified the Company that the amortization schedule was not in accordance with the level rate method required by GAAP and that it should be recalculated accordingly. McGladrey further notified the Company that as a result of this error, the financial statements did not reflect the proper amortization of non-cash interest expense and debt discounts in connection with the bifurcated conversion feature embedded in the MHR Convertible Notes as a derivative liability. McGladrey further notified the Company that it should make disclosures and take appropriate actions to prevent future reliance on the financial statements disclosed in the Financial Statement Periods. After discussions between Management, the Audit Committee and McGladrey, the Company reevaluated its accounting for the adoption of the Guidance and for its assessment of the debt modification entered into during June 2010 and determined that its original accounting was incorrect. Consequently, the Company determined to restate its financial statements for the Financial Statement Periods. The Company used the level rate method in accordance with FASB 835-30-35-2 to revise its amortization schedule in accordance with GAAP. The Company assigned a beginning balance nominally close to $0 to develop this amortization schedule. The restatements of financial statements previously reported on Forms 10-Q for the periods ended March 31, June 30, and Sept. 30, 2009 and 2010, and on Form 10-K for the period ended Dec. 31, 2009 will reflect adjustments primarily to correct for the revised amortization schedule and resulting overstatement of non-cash interest charges and the recorded value of notes payable, which included the effects of the accretion of debt discount resulting from the valuation of the embedded derivative associated with the MHR Convertible Note. Additionally, after correcting the misapplication of guidance for determining whether a financial instrument is indexed to its own stock, the Company reevaluated its accounting for debt modification in connection with the Master Agreement and Amendment by and between the Company and Novartis Pharma AG dated June 4, 2010 and the letter agreement entered into with MHR in connection therewith and concluded that modifications to the MHR Convertible Notes should have been accounted for as extinguishment of debt in accordance with FASB ASC 470-50, "Modifications and Extinguishments," which resulted in a $17.0 million non-cash adjustment to recognize the loss on extinguishment of debt. The Company emphasizes that all reclassifications and related charges to correct the misapplication of the relevant accounting pronouncement and subsequent debt modification adjustment have no impact on the Company's operating income, its cash position, its cash flows or its future cash requirements. About Emisphere Technologies Based in Cedar Knolls, New Jersey, Emisphere Technologies, Inc. (OTC BB: EMIS) -- http://www.emisphere.com/-- is a biopharmaceutical company that focuses on a unique and improved delivery of pharmaceutical compounds and nutritional supplements using its Eligen(R) Technology. The Eligen(R) Technology can be applied to the oral route of administration as well other delivery pathways, such as buccal, rectal, inhalation, intra-vaginal or transdermal. Since its inception in 1986, Emisphere has generated significant losses from operations. Emisphere anticipates it will continue to generate significant losses from operations for the foreseeable future, and that its business will require substantial additional investment that it has not yet secured. The Company's balance sheet at Sept. 30, 2010, showed $5.34 million in total assets, $66.23 million in total liabilities, and a stockholder's deficit of $60.88 million. As of Sept. 30, 2010, the Company's accumulated deficit has reached $459.2 million. In its March 25, 2010 audit report on the Company's financial statements for the year ended Dec. 31, 2009, McGladrey & Pullen, LLP, in New York, said there is substantial doubt about the Company's ability to continue as a going concern. The audit reports prepared by the Company's independent registered public accounting firms relating to its financial statements for the years ended Dec. 31, 2007 and 2008, also included an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern. EMMIS COMMUNICATIONS: Extends Maturity of Tranche B Loans to 2014 ----------------------------------------------------------------- Emmis Communications Corporation announced that it has entered into an amendment to its credit agreement after receiving the requisite consent of its lenders. Jeff Smulyan, chairman and CEO of Emmis, said in the March 29, 2011 statement, "Today's announcement provides Emmis with a significant opportunity to address our capital structure and gives us the flexibility we need going forward as our business continues to grow and gain momentum." Among other things, the amendment, provides that (i) the terms of the existing Tranche B Term Loans held or purchased on or prior to the date of the amendment by funds or accounts managed by Canyon Capital Advisors LLC are amended into an amended tranche of term loans with an extended maturity date of November, 2014 and pricing on such amended term loans is increased pursuant to a grid under which 7.5% to 12.25% per annum is to be paid in cash and 7.0% to 0.0% per annum is to be paid in kind, subject to a minimum yield of 12.25% per annum, (ii) the leverage ratio and fixed charge covenants will not apply under the credit agreement until Nov. 30, 2012, at which time they will be set at 5.0x and 1.15x for the life of the credit agreement and from Nov. 30, 2011 through Aug. 31, 2012 there will be a minimum EBITDA test of $25 million per rolling 4 quarter test period, (iii) the requirement that annual audits be certified without qualification will be waived for the fiscal years ending February 2011 and 2012 and (iv) the ability of Emmis to engage in certain activities or transactions, including the payment of dividends, the incurrence of indebtedness and the ability to invest certain proceeds including from asset sales will be further restricted or prohibited. The total amount of Tranche B Term Loans outstanding as of March 29, 2011 is $329 million, and the amount of such term loans that Canyon is amending into extended term loans is approximately $182.9 million. Prior to the entry into the credit agreement amendment, Emmis entered into a backstop letter agreement with Canyon, pursuant to which Canyon agreed to consent to the amendment to Emmis' credit agreement and to purchase loans necessary to provide the required lender consent to the amendment. In consideration of Canyon's entering into backstop letter agreement, Canyon will receive an exit fee of 6% (or 3% during the first 6 months after the amendment becomes effective) on all existing Tranche B Term Loans and revolving credit commitments held or purchased on or prior to the date of the amendment by funds or accounts managed by Canyon. The full terms of the applicable agreements will be filed with the U.S. Securities and Exchange Commission. About Emmis Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates 22 radio stations serving New York, Los Angeles, Chicago, St. Louis, Austin, Indianapolis, and Terre Haute, as well as national radio networks in Slovakia and Bulgaria. The company also publishes six regional and two specialty magazines. As of Nov. 30, 2010, the Company's balance sheet showed $499.9 million in total assets, $487.4 million in total liabilities, $140.5 million in Series A cumulative convertible preferred stock, a $177.8 million shareholders' deficit, and non- controlling interests of $49.4 million. * * * In November 2010, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating and 'Caa3' Probability of Default rating for Emmis Communications Corporation, as well as its SGL-4 speculative grade liquidity rating. Operating performance improved with the economic recovery, but absent debt reduction with proceeds from an asset sale or equity infusion Emmis will likely breach its leverage covenant when the covenant suspension period ends for the quarter ending November 30, 2011, in Moody's opinion. Emmis' CFR and PDR incorporate expectations for a covenant breach in November 2011. Moody's considers the Company's capital structure unsustainable, and its operations in the cyclical advertising business magnify this challenge. Furthermore, Emmis relies on two markets, Los Angeles and New York, for approximately 50% of its revenue, although its ownership of stations in top markets including Chicago as well as NY and LA, support the rating. The negative outlook incorporates Moody's expectations that Emmis will not comply with its maximum leverage covenant when effective for the quarter ending November 30, 2011. EPICEPT CORP: To Raise $4.6 Million in Registered Direct Offering ----------------------------------------------------------------- EpiCept Corporation has entered into a definitive agreement with an institutional investor for the purchase of approximately 7.1 million shares of its common stock at $0.65 per share, and five and one half year warrants to purchase up to approximately 5.3 million shares of common stock at an exercise price of $0.72 per share that are not exercisable for six months following the closing date of the offering. EpiCept will receive approximately $4.3 million in net proceeds from the offering. The offering is expected to close on or about March 31, 2011, subject to customary closing conditions. Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc., acted as the exclusive placement agent for the offering. Net proceeds from the offering will be used to meet working capital needs and for general corporate purposes. The Company is continuing its efforts to execute its previously announced financing plan. About EpiCept Corporation Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused on the development and commercialization of pharmaceutical products for the treatment of cancer and pain. The Company's lead product is Ceplene(R), approved in the European Union for the remission maintenance and prevention of relapse in adult patients with Acute Myeloid Leukemia (AML) in first remission. In the United States, a pivotal trial is scheduled to commence in 2011. The Company has two other oncology drug candidates currently in clinical development that were discovered using in-house technology and have been shown to act as vascular disruption agents in a variety of solid tumors. The Company's pain portfolio includes EpiCept(TM) NP-1, a prescription topical analgesic cream in late-stage clinical development designed to provide effective long-term relief of pain associated with peripheral neuropathies. * * * As reported in the Troubled Company Reporter on March 18, 2010, Deloitte & Touche LLP in Parsippany, New Jersey, expressed substantial doubt against EpiCept's ability continue as a going concern, following the Company's results for 2009. The independent auditors noted that the Company has recurring losses from operations and a stockholders' deficit of $9.1 million at Dec. 31, 2009. The Company reported a net loss of $15.54 million on $994,000 for the year ended Dec. 31, 2010, compared with a net loss of $38.81 million on $414,000 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $4.69 million in total assets, $3.38 million in accounts payable and other accrued liabilities, $13.82 million in deferred revenue, $972,000 in notes and loans payable and a $14.13 million stockholders' deficit. EVERGREEN ENERGY: Sells Landrica to Green Bridge for $7.2 Million ----------------------------------------------------------------- Evergreen Energy Inc. announced that on March 29, 2011, it closed the sale of the assets of its subsidiary, Landrica Development Company, including the Fort Union plant and associated property located near Gillette, Wyoming, to Green Bridge Holdings, Inc., a subsidiary of Synthetic Fuels LLC. Concurrent with the sale, Evergreen and Green Bridge Holdings entered into a lease agreement to provide access to and use of the K-Fuel testing facility and certain equipment located on the Fort Union site for a period of five years at nominal cost to the company. The sale is expected to provide an aggregate of approximately $7.2 million of available cash to the company, comprised of: (i) cash payments of $2.0 million, of which $500,000 was paid at closing, $500,000 is to be paid on the first anniversary of closing and the remaining $1.0 million on the second anniversary of closing; and (ii) the payment for the transfer of the $5.2 million of reclamation bonds pertaining to the sold property, which will be paid pursuant to a note secured by a mortgage on the property and payable on or before the one year anniversary of the closing. Upon closing, Green Bridge Holdings assumed the environmental liabilities of the site. Proceeds from the sale will be used for general working capital purposes. About Evergreen Energy Evergreen Energy Inc. has developed two, proprietary, patented, and green technologies: the GreenCert(TM) suite of software and services and K-Fuel(R). GreenCert, which is owned exclusively by Evergreen, is a science-based, scalable family of environmental intelligence solutions that quantify process efficiency and greenhouse gas emissions from energy, industrial and agricultural sources and may be used to create verifiable emission reduction credits. K-Fuel technology significantly improves the performance of low-rank coals, yielding higher efficiency and lowering emissions. The Company reported a net loss of $21.02 million on $403,000 of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $58.53 million on $423,000 of total operating revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $29.56 million in total assets, $43.05 million in total liabilities and a $13.49 million stockholders' deficit. Hein & Associates LLP, in Denver, Colo., expressed substantial doubt about Evergreen Energy's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has had recurring cash used in operations. FIRST MARINER: Recurring Losses Cue Going Concern Doubt ------------------------------------------------------- First Mariner Bancorp filed on March 31, 2010, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Stegman & Company, in Baltimore, expressed substantial doubt about First Mariner Bancorp's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and has a limited capital base. For year ended Dec. 31, 2010, the Company reported a net loss of $46.6 million, compared with a net loss of $22.3 million for 2009. Total revenue was $58.0 million for 2010 which was a 4.8% increase over the 2009 period's figure of $55.4 million. For the twelve months ended Dec. 31, 2010, net interest income was $29.8 million, compared to $27.1 million for 2009. Non-interest income was $28.2 million for 2010, compared to $28.3 million for 2009. Net interest income increased 10.1% in 2010 compared to 2009, primarily due to lower rates paid on average interest-bearing liabilities. Noninterest income decreased $79,000 or 0.3%. At Dec. 31, 2010, the Company's balance sheet showed $1.310 billion in total assets, $1.306 billion in total liabilities, and stockholders' equity of $3.7 million. A complete text of the Form 10-K is available for free at: http://is.gd/ALauQn Headquartered in Baltimore, Maryland, First Mariner Bancorp -- http://www.1stmarinerbancorp.com/-- is a bank holding company whose business is conducted primarily through its wholly owned operating subsidiary, First Mariner Bank, which is engaged in the general general commercial banking business. First Mariner was established in 1995 and has total assets in excess of $1.3 billion as of Dec. 31, 2010. FIRST DATA: Seeks to Amend Senior Secured Credit Facilities ----------------------------------------------------------- First Data Corporation intends to seek amendments to its senior secured credit facilities to, among other things: (i) extend the maturity of all or a portion of the revolving credit commitments and revolving credit loans under the Company's senior secured revolving credit facility to the earliest of: (x) June 24, 2015, if on that date the aggregate outstanding principal amount of the Company's 9.875% Senior Notes due 2015 and 10.55% Senior PIK Notes due 2015 exceeds $750.0 million, (y) Dec. 31, 2015, if on that date the aggregate outstanding principal amount of the Company's 11.25% Senior Subordinated Notes due 2016 exceeds $750.0 million and (z) Sept. 24, 2016 (or, in each case above, if such date is not a business day, the next preceding business day); (ii) convert an amount expected to be not less than approximately $3,000 million (which amount may be increased prior to the effectiveness of the amendment at the Company's discretion) of the existing term loans under the Company's senior secured term loan facility into new dollar- and euro-denominated extended tranches of term loans, each of which will mature on March 24, 2018; (iii) allow the Company to permanently reduce the revolving credit commitments subject to the Revolver Extension while maintaining the revolving credit commitments not subject to the Revolver Extension in their original amount; (iv) increase the interest rate applicable to the revolving credit loans subject to the Revolver Extension and term loans subject to the Term Loan Extension to a rate equal to, at the Company's option, either (x) LIBOR for deposits in the applicable currency plus 375 basis points or (y) with regard to dollar denominated borrowings, a base rate plus 275 basis points; and (v) increase the commitment fee payable on the undrawn portion of the revolving credit commitments subject to the Revolver Extension to 75 basis points. The effectiveness of the amendments is subject to certain conditions, including, among other things, (x) the Company's obtaining consent of (A) each lender under the senior secured credit facilities holding loans or revolving credit commitments that are to be subject to the Revolver Extension or the Term Loan Extension, as applicable and (B) the lenders holding a majority of the commitments and loans outstanding under the senior secured credit facilities, (y) at least $50 million of revolving credit commitments and revolving credit loans and an amount expected to be approximately $3,000 million of term loans becoming subject to the Revolver Extension and the Term Loan Extension, respectively and (z) within 90 days of the date of executing the amendment agreement, the Company having issued senior secured notes yielding gross cash proceeds in an amount expected to be not less than approximately $750 million, the net cash proceeds of which will have been used to repay term loans under the Company's senior secured term loan facility. Immediately after the effectiveness of those amendments the Company intends to effect a permanent reduction of the revolving credit commitments that are subject to the Revolver Extension in an amount equal to at least 20%. The Company expects that these amendments will provide it with more flexibility to address its debt maturities and that the amendments are an important step in enhancing its financial flexibility and continued access to long-term funding. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure that the Company will achieve or realize these plans, intentions or expectations. About First Data Based in Atlanta, Georgia, First Data Corporation, with over $10 billion of revenue for the 12 months ended June 30, 2010, provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. The Company reported a net loss $846.90 million on $10.38 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.01 billion on $9.31 billion of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $37.54 billion in total assets, $33.45 billion in total liabilities and $4.05 billion in total equity. * * * The Company's carries a 'B3' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. Standard & Poor's Ratings Services in December 2010 assigned its 'B-' issue rating with a '5' recovery rating to First Data Corp.'s (B/Stable/--) $2 billion of 8.25% second-lien cash-pay notes due 2021, $1 billion $8.75% second-lien pay-in-kind-toggle notes due 2022, and $3 billion 12.625% unsecured cash-pay notes due 2021. The '5' recovery rating indicates lenders can expect modest (10%- 30%) recovery in the event of payment default. Under S&P's default analysis, there is insufficient collateral to fully cover First Data's first-lien debt. As a result, the remaining value of the company (generated by non-U.S. assets and not pledged) would be shared pari passu among the uncovered portion of first-lien debt, new second-lien debt, and new and existing unsecured debt. FIRST DATA: Plans to Offer $750 Million Senior Secured Notes ------------------------------------------------------------ First Data Corporation announced that it intends to offer $750 million aggregate principal amount of senior secured notes due 2019. In accordance with the terms of its senior secured credit facilities, First Data will use the net proceeds from the offering, and cash on hand, to repay a portion of its outstanding senior secured term loans. The Notes have not been registered under the Securities Act of 1933, as amended, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. About First Data Based in Atlanta, Georgia, First Data Corporation, with over $10 billion of revenue for the 12 months ended June 30, 2010, provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. The Company reported a net loss $846.90 million on $10.38 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.01 billion on $9.31 billion of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $37.54 billion in total assets, $33.45 billion in total liabilities and $4.05 billion in total equity. * * * The Company's carries a 'B3' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. Standard & Poor's Ratings Services in December 2010 assigned its 'B-' issue rating with a '5' recovery rating to First Data Corp.'s (B/Stable/--) $2 billion of 8.25% second-lien cash-pay notes due 2021, $1 billion $8.75% second-lien pay-in-kind-toggle notes due 2022, and $3 billion 12.625% unsecured cash-pay notes due 2021. The '5' recovery rating indicates lenders can expect modest (10%- 30%) recovery in the event of payment default. Under S&P's default analysis, there is insufficient collateral to fully cover First Data's first-lien debt. As a result, the remaining value of the company (generated by non-U.S. assets and not pledged) would be shared pari passu among the uncovered portion of first-lien debt, new second-lien debt, and new and existing unsecured debt. FRANKLIN CREDIT: Incurs $55.27 Million Net Loss in 2010 ------------------------------------------------------- Franklin Credit Holding Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $55.27 million on $41.74 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $357.82 million on $244.75 million of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $518.31 million in total assets, $1.37 billion in total liabilities and $852.87 million in total stockholders' deficit. Marcum LLP, in New York, noted that the Company's recurring losses from operations and stockholders' deficit raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Annual Report is available for free at: http://is.gd/C81fKL About Franklin Credit Holding Franklin Credit Holding Corporation (OTC BB: FCMC) -- http://www.franklincredit.com/-- is a specialty consumer finance company primarily engaged in the servicing and resolution of performing, reperforming and nonperforming residential mortgage loans, including specialized loan recovery servicing, and in the analysis, pricing, due diligence and acquisition of residential mortgage portfolios for third parties. The Company's executive, administrative and operations offices are located in Jersey City, N.J. G & R MANAGEMENT: Case Summary & 15 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: G & R Management, Inc. dba Best Western Buffalo dba Craigs Inn P.O. Box 667 Buffalo, TX 75831 Bankruptcy Case No.: 11-31819 Chapter 11 Petition Date: March 17, 2011 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Joyce W. Lindauer, Esq. 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Scheduled Assets: $801,931 Scheduled Debts: $2,925,126 A list of the Company's 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb11-31819.pdf The petition was signed by Kirnbir S. Grewal, president. GAMETECH INTERNATIONAL: Incurs $288,000 Net Loss in Jan. 30 Qtr. ---------------------------------------------------------------- GameTech International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $288,000 on $10.10 million of net revenues for the 13-week period ended Jan. 30, 2011, compared with a net loss of $995,000 on $8.41 million of net revenues for the 13-week period ended Jan. 31, 2010. The Company's balance sheet at Jan. 30, 2011 showed $40.86 million in current assets, $31.47 million in current liabilities and $9.39 million in total stockholders' equity. A full-text copy of the latest quarterly report on Form 10-q is available for free at http://is.gd/UrWKMv About GameTech Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. Piercy Bowler Taylor & Kern, in Las Vegas, Nevada, expressed substantial doubt about GameTech International, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered reoccurring losses from operations and has been unable to extend the maturity of its debt, or raise additional capital necessary to execute its business plan. GENERAL MARITIME: Incurs $216.66 Million Net Loss in 2010 --------------------------------------------------------- General Maritime Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $216.66 million on $387.16 million of voyage revenue for the year ended Dec. 31, 2010, compared with a net loss of $11.99 million on $350.52 million of voyage revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $1.78 billion in total assets, $1.45 billion in total liabilities, and a $332.04 million total shareholders' equity. Deloitte & Touche LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditor noted that the Company requires additional financing in order to meet its debt obligations that will come due over the next year. In addition, the Company has current losses from operations, a working capital deficit and the expectation that certain of its loan covenants will not be achieved during 2011 without additional capital being raised, debt being refinanced or covenants waived or amended. John P. Tavlarios, president of General Maritime Corporation, commented in a statement, "During a very challenging year for the tanker market, General Maritime stayed focused on core principles that have served the Company well over time, and took decisive steps to enhance the Company's financial flexibility and strengthen its capital structure. Specifically, we continued to implement our flexible deployment strategy to effectively manage the Company's assets through the tanker economic cycles and increased our long-term earnings potential by growing our modern fleet. Management also strengthened the Company's balance sheet, culminating in the signing of an agreement with Oaktree Capital Management for a $200 million investment and a broader plan to refinance the Company's 2005 credit facility. These transactions are designed to provide shareholders and debtholders with a comprehensive financing solution. Further, we believe the important initiatives we implemented during 2010 and in early 2011 have bolstered our future prospects. Our large and diverse modern fleet, combined with our significant contracted revenue stream, positions General Maritime to achieve a level of stability in its results and benefit from potential improvements in tanker rates." A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/XpHtD3 About General Maritime Corp. Based in New York City, General Maritime Corporation through its subsidiaries provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The Company operates its business in one business segment, which is the transportation of international seaborne crude oil and petroleum products. The Company's vessels are primarily available for charter on a spot voyage or time charter basis. * * * Standard & Poor's Ratings Services in December 2010 lowered its long-term corporate rating on General Maritime Corp. to 'CCC+' from 'B', and placed the ratings on CreditWatch with negative implications. At the same time, S&P lowered its ratings on the company's senior unsecured notes to 'CCC-', two notches below the new corporate credit rating; the recovery rating of '6', which indicates S&P's expectation that lenders will receive a negligible (0%-10%) recovery in a payment default scenario, remains unchanged. "The downgrade reflects General Maritime's weak liquidity, very limited financial covenant headroom (despite recent amendments), and deterioration in its financial profile," said Standard & Poor's credit analyst Funmi Afonja. "As of Sept. 30, 2010, General Maritime had no borrowing availability under its $749.8 million revolving credit facility and $8.7 million in unrestricted cash, after factoring financial covenant limitations. In S&P's opinion, the recent financial covenant amendments do not provide sufficient covenant headroom, and there is still a high probability of a covenant breach over the next quarter. If there is a covenant breach, lenders can require the immediate payment of all amounts outstanding. General Maritime's liquidity is further constrained by significant upcoming debt maturities, including $27.5 million in scheduled principal payments due in 2011 under its term loan, $50.1 million semiannual reduction on the revolver, beginning on April 26, 2011, and a bullet payment of $599.6 million in October 2012, when the facility expires. General Maritime also has a $22.8 million bridge loan facility that matures in October 2011. Cash interest payments on the bridge loan will increase if the company is unable to pay off the loan by Dec. 31, 2010." In the Dec. 22, 2010 edition of the TCR, Moody's Investors Service lowered its ratings of General Maritime Corporation: Corporate Family to B3 from B1, Probability of Default to Caa1 from B2 and senior unsecured to Caa2 from Caa1. Moody's also downgraded the Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade of the ratings reflects GenMar's tightening liquidity position as a result of ongoing weak tanker freight rates and upcoming debt maturities. These maturities include the recently arranged $22.8 million bridge loan due October 21, 2011 ("Bridge Loan"), and two $50 million repayments (one each on April 26, 2011 and October 26, 2011) that are due on the company's $750 million revolving credit facility that was almost fully drawn at Sept. 30, 2010. GENERAL MARITIME: To Sell 23MM Common Shares at $1.89 Apiece ------------------------------------------------------------ General Maritime Corporation entered into an Underwriting Agreement with Jefferies & Company, Inc., and Dahlman Rose & Company, LLC, as representatives for the several underwriters referred to in the Underwriting Agreement, pursuant to which the Company will sell to the Underwriters an aggregate of 23,000,000 shares of common stock, par value $0.01 per share, of the Company, for a purchase price of $1.89 per share, which reflects a price to the public of $2.00 per share less underwriting discounts and commissions. The Company has granted the Underwriters the right to purchase up to an additional 3,450,000 shares of Common Stock at a price per share equal to the Purchase Price. The Underwriters have 30 days from March 31, 2011 to exercise this option. The shares are being sold pursuant to the Company's shelf registration statement on Form S-3, as amended, which was declared effective by the SEC on April 8, 2009, as supplemented by the Company's prospectus supplement dated March 31, 2011. The Underwriting Agreement contains customary representations, warranties, conditions to closing, indemnification rights and obligations of the parties. The closing is expected to occur and delivery of the shares is expected to be made on or about April 5, 2011. A full-text copy of the Underwriting Agreement is available for free at http://is.gd/e4q7kZ About General Maritime Corp. Based in New York City, General Maritime Corporation through its subsidiaries provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The Company operates its business in one business segment, which is the transportation of international seaborne crude oil and petroleum products. The Company's vessels are primarily available for charter on a spot voyage or time charter basis. The Company's balance sheet at Dec. 31, 2010, showed $1.78 billion in total assets, $1.45 billion in total liabilities, and a $332.04 million total shareholders' equity. Going Concern Doubt Deloitte & Touche LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's results for the year ended Dec. 31, 2010. The independent auditor noted that the Company requires additional financing in order to meet its debt obligations that will come due over the next year. In addition, the Company has current losses from operations, a working capital deficit and the expectation that certain of its loan covenants will not be achieved during 2011 without additional capital being raised, debt being refinanced or covenants waived or amended. * * * Standard & Poor's Ratings Services in December 2010 lowered its long-term corporate rating on General Maritime Corp. to 'CCC+' from 'B', and placed the ratings on CreditWatch with negative implications. At the same time, S&P lowered its ratings on the company's senior unsecured notes to 'CCC-', two notches below the new corporate credit rating; the recovery rating of '6', which indicates S&P's expectation that lenders will receive a negligible (0%-10%) recovery in a payment default scenario, remains unchanged. "The downgrade reflects General Maritime's weak liquidity, very limited financial covenant headroom (despite recent amendments), and deterioration in its financial profile," said Standard & Poor's credit analyst Funmi Afonja. "As of Sept. 30, 2010, General Maritime had no borrowing availability under its $749.8 million revolving credit facility and $8.7 million in unrestricted cash, after factoring financial covenant limitations. In S&P's opinion, the recent financial covenant amendments do not provide sufficient covenant headroom, and there is still a high probability of a covenant breach over the next quarter. If there is a covenant breach, lenders can require the immediate payment of all amounts outstanding. General Maritime's liquidity is further constrained by significant upcoming debt maturities, including $27.5 million in scheduled principal payments due in 2011 under its term loan, $50.1 million semiannual reduction on the revolver, beginning on April 26, 2011, and a bullet payment of $599.6 million in October 2012, when the facility expires. General Maritime also has a $22.8 million bridge loan facility that matures in October 2011. Cash interest payments on the bridge loan will increase if the company is unable to pay off the loan by Dec. 31, 2010." In the Dec. 22, 2010 edition of the TCR, Moody's Investors Service lowered its ratings of General Maritime Corporation: Corporate Family to B3 from B1, Probability of Default to Caa1 from B2 and senior unsecured to Caa2 from Caa1. Moody's also downgraded the Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade of the ratings reflects GenMar's tightening liquidity position as a result of ongoing weak tanker freight rates and upcoming debt maturities. These maturities include the recently arranged $22.8 million bridge loan due October 21, 2011 ("Bridge Loan"), and two $50 million repayments (one each on April 26, 2011 and October 26, 2011) that are due on the company's $750 million revolving credit facility that was almost fully drawn at Sept. 30, 2010. GENERAL MARITIME: Peter Georgiopoulos Holds 6.26% Equity Stake -------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Peter C. Georgiopoulos, chairman at General Maritime Corporation, disclosed that he beneficially owns 5,607,409 shares of common stock of the Company representing 6.26% of the shares outstanding. The number of shares outstanding of the Company's common stock as of March 21, 2011 was 89,593,272 shares. About General Maritime Corp. Based in New York City, General Maritime Corporation through its subsidiaries provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The Company operates its business in one business segment, which is the transportation of international seaborne crude oil and petroleum products. The Company's vessels are primarily available for charter on a spot voyage or time charter basis. The Company's balance sheet at Dec. 31, 2010, showed $1.78 billion in total assets, $1.45 billion in total liabilities, and a $332.04 million total shareholders' equity. Going Concern Doubt Deloitte & Touche LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's results for the year ended Dec. 31, 2010. The independent auditor noted that the Company requires additional financing in order to meet its debt obligations that will come due over the next year. In addition, the Company has current losses from operations, a working capital deficit and the expectation that certain of its loan covenants will not be achieved during 2011 without additional capital being raised, debt being refinanced or covenants waived or amended. * * * Standard & Poor's Ratings Services in December 2010 lowered its long-term corporate rating on General Maritime Corp. to 'CCC+' from 'B', and placed the ratings on CreditWatch with negative implications. At the same time, S&P lowered its ratings on the company's senior unsecured notes to 'CCC-', two notches below the new corporate credit rating; the recovery rating of '6', which indicates S&P's expectation that lenders will receive a negligible (0%-10%) recovery in a payment default scenario, remains unchanged. "The downgrade reflects General Maritime's weak liquidity, very limited financial covenant headroom (despite recent amendments), and deterioration in its financial profile," said Standard & Poor's credit analyst Funmi Afonja. "As of Sept. 30, 2010, General Maritime had no borrowing availability under its $749.8 million revolving credit facility and $8.7 million in unrestricted cash, after factoring financial covenant limitations. In S&P's opinion, the recent financial covenant amendments do not provide sufficient covenant headroom, and there is still a high probability of a covenant breach over the next quarter. If there is a covenant breach, lenders can require the immediate payment of all amounts outstanding. General Maritime's liquidity is further constrained by significant upcoming debt maturities, including $27.5 million in scheduled principal payments due in 2011 under its term loan, $50.1 million semiannual reduction on the revolver, beginning on April 26, 2011, and a bullet payment of $599.6 million in October 2012, when the facility expires. General Maritime also has a $22.8 million bridge loan facility that matures in October 2011. Cash interest payments on the bridge loan will increase if the company is unable to pay off the loan by Dec. 31, 2010." In the Dec. 22, 2010 edition of the TCR, Moody's Investors Service lowered its ratings of General Maritime Corporation: Corporate Family to B3 from B1, Probability of Default to Caa1 from B2 and senior unsecured to Caa2 from Caa1. Moody's also downgraded the Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade of the ratings reflects GenMar's tightening liquidity position as a result of ongoing weak tanker freight rates and upcoming debt maturities. These maturities include the recently arranged $22.8 million bridge loan due October 21, 2011 ("Bridge Loan"), and two $50 million repayments (one each on April 26, 2011 and October 26, 2011) that are due on the company's $750 million revolving credit facility that was almost fully drawn at Sept. 30, 2010. GLC LIMITED: Sues Crabtrees to Stop Liquidating Interest -------------------------------------------------------- Ironton Tribune reports that a federal bankruptcy court judge heard arguments on why there should be an expedited hearing on an injunction sought against the couple who recently filed for bankruptcy protection for their Proctorville retail business. The report relates that GLC Limited filed an adversary complaint against Greg and Linda Crabtree, who formed GLC Limited, the West Virginia-based corporation as a holding company for Global Liquidation, a Proctorville business that sold items purchased from other retailers. According to the adversary complaint, the Crabtrees, needing funds, to buy inventory solicited investors for the business. "One or more of the very first investors in GLC invested amounts in excess of $5,400,000 in GLC at interest rates exceeding 50 percent," the complaint said. The report relates that in 2007, $799,000 was received from outside investors with $775,000 worth of goods purchased. In 2008, more than $12 million was invested with $2.1 million worth of inventory bought. In 2009, $33 million was invested with $5.2 million worth of inventory purchased and in 2010, $35 million was invested with $3.6 million worth of goods bought. The report says the complaint seeks an order stopping the Crabtrees from liquidating or transferring their interest in the property and assets; judgment against the Crabtrees for costs, punitive damages and attorney fees; and a jury trial. This is the second complaint filed in the Chapter 11 case. 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 (Bankr. S.D. Ohio Case No. 11-11090) on Feb. 28, 2011. James R. Burritt, chief restructuring officer, signed the Chapter 11 petition. The Debtor estimated its assets and debts at $10 million to $50 million. 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. GLOBAL TECHNOVATIONS: Onkyo America Acquisition Was Fraudulent -------------------------------------------------------------- District Judge Marianne O. Battani affirmed a bankruptcy court finding that Global Technovations, Inc.'s acquisition of all of the stock of Onkyo America, Inc., constituted a fraudulent transfer. Onkyo Europe Electronics GmbH, Onkyo Malaysia Sdn. Bhd., and Onkyo Corporation took an appeal from the bankruptcy court's judgment. GTI purchased all of the stock of OAI in 2000 -- 16 months before GTI filed for Chapter 11 bankruptcy -- for $13 million in cash and $12 million in promissory notes, payable to Onkyo in 2003. In the adversary proceedings before the Bankruptcy Court, GTI sought to avoid the transfer under 11 U.S.C. Sec. 544(b) and under Florida's Uniform Fraudulent Transfer Act. GTI also sought disallowance of the claims filed by the Onkyo in GTI's bankruptcy case under 11 U.S.C. Sec. 502(d). The bankruptcy court conducted a bench trial and issued its findings of fact and conclusions of law and entered judgment in favor of GTI for $6,100,000, plus interest and costs. Onkyo appeals. In its trial Opinion, the bankruptcy court finds that Onkyo overstated OAI's trailing 12-month earnings before interest, taxes, depreciation, and amortization -- TTM EBITDA -- by approximately $2 million due to accounting errors and adjustments, of which no less than $650,000 were known to OAI, but not disclosed to GTI. Further, OAI's TTM EBITDA was overstated by an $839,000 earnings shortfall, and about $740,000 should have been known before the sale. Other findings by the bankruptcy court include: OAI's cost savings and sales forecasts were dramatically overstated and unreasonable; GTI's primary sources for due diligence had undisclosed ties to Onkyo, and undisclosed financial incentives for selling OAI to GTI; and the indirect benefits provided to GTI had a value of zero or less because OAI was a serious cash drain on GTI from the time of the acquisition forward, a fact that was predictable given information known to Onkyo at the time of the sale, but withheld from GTI. As a result, the bankruptcy court discounted the opinion of Onkyo's expert witness, Jeff Risius, who based his valuation of OAI on the company's unrealistic projections. Instead, the bankruptcy court credited the opinion of GTI's expert, Van Conway, who used OAI's TTM EBITDA as a basis for determining the company's reasonable future performance. The bankruptcy court deemed the method the "most reliable and least speculative" means by which to evaluate OAI's "reasonably expected future performance." The bankruptcy court found the fair market value of OAI's equity on August 31, 2000, to be at most $6.9 million. It also found that after the acquisition, GTI's liabilities exceeded its assets by at least $12.2 million, and concluded that the cash and promissory notes were avoidable fraudulent transfers under Florida law, made applicable by 11 U.S.C. Secs. 544 (b) and 550. The appellate case is ONKYO U.S.A. CORPORATION, ONKYO EUROPE ELECTRONICS GMBH, ONKYO MALAYSIA SDN. BHD., and ONKYO CORPORATION, Appellants, v. GLOVAL TECHNOVATIONS, INC., and KENNETH NATHAN, Liquidating Agent for Onkyo America, Inc., Appellees, Civil Case No. 10-12781 (E.D. Mich.). A copy of Judge Battani's March 31, 2011 Opinion and Order is available at http://is.gd/E06d13from Leagle.com. About Global Technovations Global Technovations, Inc., developed, manufactured, and sold On-Site Oil Analzers), a motor oil diagnostic and preventative maintenance program used to diagnose the condition of vehicles. On Dec. 18, 2001, GTI and its affiliates filed voluntary chapter 11 petitions (Bankr. E.D. Mich. Case No. 01-_____). Onkyo America, Inc., filed for bankruptcy the next day. On Feb. 21, 2003, the bankruptcy court entered a confirmation order confirming GTI's plan of reorganization. Kenneth Nathan was appointed liquidating agent for Onkyo America. GOLDEN CHAIN: Taps Polis & Associates as Bankruptcy Counsel ----------------------------------------------------------- Golden Chain, Inc., asks the U.S. Bankruptcy Court for the Central District of California for authorization to employ Polis & Associates as its general bankruptcy counsel at the firm's hourly billing rates, plus costs. Thomas J. Polis, Esq., assures the Bankruptcy Court that his firm has had no business, professional, or other connection, with the Debtor, their creditors or any party in interest, and that his firm is both disinterested at that term is defined in Section 101(14) of the Bankruptcy Code and represents no interest which would be adverse to the Debtor, its estate or its creditors or any party in interest in the case. Thomas J. Polis' current hourly billing rate is $405. San Jacinto, California-based Golden Chain, Inc., filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11- 10793) on Jan. 10, 2011. In its schedules, the Debtor disclosed $10,539,890 in assets and $412,048 in liabilities as of the petition date. GORILLA COMPANIES: Suit v. Tassels, Corwins Go Back to Bankr. Ct. ----------------------------------------------------------------- District Judge David G. Campbell vacated, in part, the withdrawal of reference of an adversary proceeding commenced by Gorilla Companies, LLC, and the case is referred back to the bankruptcy court for resolution of pending motions for summary judgment. The Plaintiff has filed a status report stating that the automatic stay in the Corwins' chapter 11 bankruptcy has been lifted and the bankruptcy court has set a hearing on the pending summary judgment motions for April 25, 2011. Judge Campbell directed the Plaintiff to file another status report after the motions for summary judgment have been resolved. The Plaintiff's motion for entry of order clarifying status of reference is granted. The case before the District Court is Gorilla Companies, LLC, a Delaware limited liability company, Plaintiff, v. Sharon Van Tassel and Darrell Van Tassel, husband and wife; Robb M. Corwin and Jillian C. Corwin, husband and wife; and 13, LLC, an Arizona limited liability company, Nos. CV-09-1327-PHX-DGC, AP-09-00507- RJH, BK-09-02898-RJH, BK-09-02901-CGC, BK-09-02903-GBN, BK-09- 02905-CGC (D. Ariz.). A copy of the District Court's March 31, 2011 Order is available at http://is.gd/dXHnSjfrom Leagle.com. The Corwins and Gorilla are also locked in another dispute. The Corwins are the sole owners of 13 Holdings, LLC. In June 2007, 13 Holdings and Gorilla entered into an Asset Purchase Agreement under which 13 Holdings sold the assets of an event-management company to Gorilla in exchange for an immediate cash payment, one million shares of Gorilla stock, a promissory note for $1.5 million, and a second note that could pay up to $6 million depending on Gorilla's performance. In early 2008, Gorilla made a large payment to 13 Holdings on the Seller Note. A dispute later arose regarding the amount owed under the Seller Note. Gorilla filed suit against the Corwin Parties in state court, Gorilla Cos. LLC v. Corwin, No. CV2008-032847 (Ariz. Super. Ct. Dec. 23, 2008). The Corwin Parties filed counterclaims. The case was removed to the bankruptcy court after Gorilla filed for Chapter 11 bankruptcy. Gorilla Cos. LLC v. Corwin, No. AP-09- 00266-RJH (Bankr. Ariz. Mar. 10, 2009). The Corwin Parties subsequently filed proofs of claim in the bankruptcy proceedings that mirrored their state-court counterclaims, and Gorilla responded with counterclaims that mirrored its state-court claims. On March 22, 2010, the bankruptcy court issued a judgment in which it adjudicated the proofs of claim filed by the Corwin Parties and the state law counterclaims brought by Gorilla. The bankruptcy court ruled against the Corwin Parties. The bankruptcy court framed the March 22 adjudication as a core proceeding under 28 U.S.C. Sec. 157(b)(2)(B) and (C), and treated the Gorilla claims as "compulsory counterclaims to the Corwin Proof of Claims." The Corwins took an appeal to the District Court. In October 2010, the District Court affirmed the Bankruptcy Court ruling that adjudication was appropriately deemed a core proceeding by the lower court. About Gorilla Companies Based in Tempe, Ariz., Gorilla Companies LLC provides event management services. Gorilla Companies sought Chapter 11 protection (Bankr. D. Ariz. Case No. 09-02898) on Feb. 20, 2009, and is represented by John R. Clemency, Esq., at Greenberg Traurig LLP in Phoenix. At the time of the filing, the Debtor estimated its assets at more than $1 million and its debts at less than $1 million. About Robb Corwin Robb Corwin in Chandler, Arizona, filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 10-21303) on July 8, 2010, Judge Sarah Sharer Curley presiding. Mark W. Roth, Esq. -- mroth@polsinelli.com -- at Polsinelli Shughart P.C., serves as bankruptcy counsel. Mr. Corwin disclosed $1 million to $10 million in total assets and $10 million to $50 million in total debts. GUIDED THERAPEUTICS: Incurs $2.84 Million Net Loss in 2010 ---------------------------------------------------------- Guided Therapeutics, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $2.84 million on $3.36 million of contract and grant revenue for the year ended Dec. 31, 2010, compared with a net loss of $6.21 million on $1.55 million of contract and grant revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.92 million in total assets, $2.80 million in total liabilities and $1.12 million in total stockholders' equity. UHY LLP, in Atlanta, Georgia, noted that the Company's recurring losses from operations, accumulated deficit and lack of working capital raise substantial doubt about its ability to continue as a going concern. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/LZI9nX About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. GULF FREEWAY: Combined Hearing for Plan & Outline on June 3 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas will convene a combined hearing on June 3, 2011, at 2:00 p.m., to consider (x) approval of the disclosure statement explaining the Chapter 11 plan for Gulf Freeway Plaza LLC, formerly doing business as Las Haciendas Business Park LLC, and (y) confirmation of the Chapter 11 plan. The Bankruptcy Court's conditional approval of the Disclosure Statement paved way for the combined hearing on the Plan and the Disclosure Statement. Under the Plan, payments and distributions will be funded by: i) income from the ongoing operations of the business properties, and ii) rental income from various leases as reflected in the Plan; proceeds from any litigation of assignment claims and others. Additionally, at the confirmation hearing, the Debtor will seek a ruling by the Court that the debt of Gulf Freeway Plaza includes the contingent liability resulting from pledging of Gulf Freeway Plaza properties of a loan from the defunct Gil Ramirez Homes, Inc. in the amount of $349,613. The Plan states that secured creditor 1st International Bank will receive a new note against the Debtor. Holders of general unsecured claims will receive equal installment payments of the full amount of their allowed claim over a year beginning 30 days after the effective date of the Plan. The Debtor retains the right to pay off claimants early. The Debtors expect that unsecured creditors will receive pro rata payment of 100% of their allowed claim. Gil Ramirez, Sr., president and lone equity holder of the Debtor won't receive any distributions until all plan payments are satisfied. A full-text copy of the Disclosure Statement, as amended, is available for free at http://ResearchArchives.com/t/s?7584 A full-text copy of the Chapter 11 plan, as amended, is available for free at http://ResearchArchives.com/t/s?7585 About Gulf Freeway Plaza LLC Houston, Texas-based Gulf Freeway Plaza LLC, fdba La Hacienda Business Park LLC, filed for Chapter 11 bankruptcy protection on May 27, 2010 (Bankr. S.D. Tex. Case No. 10-34332). John L. Green, Esq., who has an office in Houston, Texas, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $12,700,000 in assets and $6,180,532 in liabilities. HAMPTON ROADS: To Effect a Reverse Stock Split of Common Shares --------------------------------------------------------------- Hampton Roads Bankshares, Inc., said that it will effect a reverse stock split of its issued and outstanding common stock with an effective date of April 27, 2011. Shareholders on the effective date will receive one new share of common stock for every twenty- five shares they hold. The Reverse Stock Split will not change the aggregate value of any stockholder's shares of the Company's common stock, or any stockholder's ownership percentage of the Company's common stock, except for minimal changes resulting from the treatment of fractional shares. Following the Reverse Stock Split, the Company will have approximately 33.5 million common shares issued and outstanding. The Company will not issue any fractional shares as a result of the Reverse Stock Split. The number of shares to be issued to each stockholder will be rounded up to the nearest whole number if, as a result of the Reverse Stock Split, the number of shares owned by any stockholder would not be a whole number. The purpose of the Reverse Stock Split is to bring the Company's common stock price above the minimum $1.00 bid price required for continued listing on the NASDAQ Global Select Market. NASDAQ requires that the minimum bid price of the Company's Common Stock trade at or above $1.00 for at least 10 consecutive business days if the minimum bid price has traded below $1.00 for a period of 30 consecutive business days within the last 180 calendar days. On Nov. 17, 2010, the Company received a letter from NASDAQ notifying the Company that it must maintain a minimum bid price of at least $1.00 for a period of ten consecutive business days prior to May 16, 2011 in order to maintain its listing. At the Company's annual meeting of shareholders on Sept. 28, 2010, shareholders approved an amendment to the Company's Amended and Restated Articles of Incorporation to effect a reverse stock split and granted the Board of Directors the discretion to determine the appropriate ratio for such a split within the range of ten to thirty shares of issued and outstanding common stock per share of new common stock. About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and fifteen ATMs. Effective June 17, 2010, the Company and its banking subsidiary, Bank of Hampton Roads ("BOHR"), entered into a written agreement with the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Virginia State Corporation Commission. The Company's other banking subsidiary, Shore Bank, is not a party to the Written Agreement. Under the terms of the Written Agreement, among other things, BOHR agreed to develop and submit for approval plans to (a) strengthen board oversight of management and BOHR's operations, (b) strengthen credit risk management policies, (c) improve BOHR's position with respect to loans, relationships, or other assets in excess of $2.5 million which are now, or may in the future become, past due more than 90 days, are on BOHR's problem loan list, or adversely classified in any report of examination of BOHR, (d) review and revise, as appropriate, current policy and maintain sound processes for determining, documenting, and recording an adequate allowance for loan and lease losses, (e) improve management of BOHR's liquidity position and funds management policies, (f) provide contingency planning that accounts for adverse scenarios and identifies and quantifies available sources of liquidity for each scenario, (g) reduce the Bank's reliance on brokered deposits, and (h) improve BOHR's earnings and overall condition. The Company said in its Form 10-Q for the Sept. 30, 2010 quarter that due to its financial results, the substantial uncertainty throughout the U.S. banking industry, and the Written Agreement the Company and BOHR have entered into, doubts existed regarding the Company's ability to continue as a going concern through the second quarter of 2010. However, management believes this concern has been mitigated by the initial closing of the Private Placement that occurred on Sept. 30, 2010. The Company reported a net loss of $210.35 million on $122.20 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $201.45 million on $149.44 million of total interest income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $2.90 billion in total assets, $2.71 billion in total liabilities and $190.79 million in total shareholders' equity. Yount, Hyde & Barbour, P.C., in Winchester, Va., expressed substantial doubt about the Company's ability to continue as a going concern in its report on the Company's restated consolidated financial statements for the year ended Dec. 31, 2009. The independent auditors noted that quantitative measures established by regulation to ensure capital adequacy require the Company and its subsidiary banks to maintain minimum amounts and ratios of total and Tier I capital to risk-weighted assets, and Tier I capital to average assets. In addition, the Company has suffered recurring losses from operations and declining levels of capital. HARRY & DAVID: Organizational Meeting to Form Panel on April 7 -------------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on April 7, 2011, at 11:00 a.m. in the bankruptcy case of Harry and David Holding, Inc. The meeting will be held at J. Caleb Boggs Federal Building, 844 King Street, Room 5209, Wilmington, Delaware. 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. About Harry & David Medford, Oregon-based 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. It has 70 stores across the country. Products are also available online at http://www.harryanddavid.com/, http://www.wolfermans.com/, and http://www.honeybell.com/ Harry & David is controlled by The Medford, Oregon-based retailer, owned by investment funds controlled by Wasserstein & Co., which hold 63% of the shares. Affiliates of funds sponsored by Highfields Capital Management LP own 34%. The Company has $304.3 million in total assets, $360.8 million in total liabilities, and a stockholders' deficit of $56.5 million at Dec. 25, 2010. Harry & David and its units filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 11-10884) on March 28, 2011, to implement an agreed upon restructuring. Harry & David reached an agreement with holders of approximately 81% of its senior notes on the terms of a reorganization that will eliminate substantial indebtedness and provide equity financing to restructure the Company's balance sheet. Under a Plan Support Agreement, the Debtors must file a Chapter 11 plan on the terms agreed by the parties no later than May 16, 2011. The Plan must be confirmed by Sept. 12, 2011, and the Debtors must exit bankruptcy by Oct. 1, 2011. Judge Mary F. Walrath presides over the case. David G. Heiman, Esq., Brad B. Erens, Esq., and Timothy W. Hoffman, Esq., at Jones Day; and Daniel J. DeFranceschi, Esq., Paul Noble Heath, Esq., Zachary I Shapiro, Esq., at Richards Layton & Finger, serve as bankruptcy counsel. Rothschild Inc. serves as investment bankers, Alvarez & Marsal LLC as financial advisors. Garden City Group Inc. serves as claims and notice agent. Kristopher M. Hansen, Esq., and Erez E. Gilad, Esq., at Stroock & Stroock & Lavan LLP; Thomas B. Walper, Esq., at Munger, Tolles & Olson LLP; and Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, serve as counsel to Principal Noteholders. Moelis & Company act as financial advisors to the Principal Noteholders. HERCULES OFFSHORE: Gets Early Termination Notice From Seahawk ------------------------------------------------------------- Hercules Offshore, Inc., received notice of the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the previously announced planned acquisition by the Company and its wholly owned subsidiary, SD Drilling LLC, of 20 jackup rigs and related assets and enumerated liabilities from Seahawk Drilling, Inc., and certain of its subsidiaries. The transaction will be effectuated pursuant to Section 363 of the Bankruptcy Code, and closing is subject to bankruptcy court approval as well as other conditions as provided in the asset purchase agreement. Assuming those conditions are achieved, the Company anticipates closing of this transaction to occur during the second quarter of 2011. About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. The Company reported a net loss of $134.59 million on $657.48 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $91.73 million on $742.85 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.99 billion in total assets, $1.14 billion in total liabilities and $853.13 million in stockholders' equity. The Troubled Company Reporter said on November 17, 2010, Moody's Investors Service downgraded the Corporate Family Rating of Hercules Offshore Inc. and the Probability of Default Rating to Caa1 from B2. Moody's also downgraded Hercules' 10.5% senior secured notes due 2017, its senior secured revolving credit facility due 2012, and its senior secured term loan B due 2013, all to Caa1 with LGD3, 45%. The outlook remains negative. "The inability of Hercules to generate meaningful free cash flow despite limited reinvestment in its aging fleet of rigs is cause for concern," commented Stuart Miller, Moody's Senior Analyst. "Without a significant de-leveraging of its balance sheet, Hercules is following a path that could lead to financial hardship at the first sign of a market softening." Hercules' Caa1 CFR rating reflects its highly leveraged balance sheet and limited ability to generate free cash flow. The Caa1 rating on the senior secured notes reflects their pari passu secured position in Hercules' capital structure relative to the senior secured credit facilities. HOLBROOK SHOPPING: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Holbrook Shopping Plaza LLC P.O. Box 22546 Oklahoma City, OK 73123 Bankruptcy Case No.: 11-11235 Chapter 11 Petition Date: March 17, 2011 Court: United States Bankruptcy Court Western District of Oklahoma (Oklahoma City) Judge: T.M. Weaver Debtor's Counsel: G. Rudy Hiersche, Jr., Esq. HIERSCHE LAW FIRM 105 North Hudson Hightower Building, Suite 300 Oklahoma City, OK 73102 Tel: (405) 235-3123 E-mail: rudy@hlfokc.com Scheduled Assets: $2,106,020 Scheduled Debts: $1,382,850 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/okwb11-11235.pdf The petition was signed by Lew McGinnis, president of Macco Prop. Inc., Debtor's managing member HRAF HOLDINGS: DR Horton Wins Auction for 22 Sleepy Ridge Lots -------------------------------------------------------------- Bankruptcy Judge R. Kimball Mosier authorized HRAF Holdings, LLC, and Harbor Real Asset Fund, LP, to sell 22 single-family residential lots in Sleepy Ridge Subdivision in Orem City, Utah, free and clear of liens and interests, to D.R. Horton, Inc. Richmond American Homes of Utah, Inc., committed to purchase the Property pursuant to a Purchase and Sale Agreement, dated Jan. 25, 2011, for a gross purchase price of $1,540,000. Prior to the hearing on HRAF Holdings' sale motion, however, the Debtor received a competing offer from Horton for a gross purchase price of $1,672,000. An auction was held March 30, 2011 at 11:00 a.m. Horton won after raising its offer to $1,716,000. Richmond's final bid was $1,694,000. A copy of the Court's April 1, 2011 Findings of Fact and Conclusions of Law is available at http://is.gd/jyLagZfrom Leagle.com. Lender Bank of America, N.A., is represented by: David E. Leta, Esq. SNELL & WILMER L.L.P. 15 W South Temple #1200 Salt Lake City, UT 84101-1531 Tel: 801-257-1928 E-mail: dleta@swlaw.com D.R. Horton is represented by: Craig B. Terry, Esq. PARSONS BEHLE & LATIMER. ALL RIGHTS RESE 201 South Main Street, Suite 1800 Salt Lake City, UT 84111 Tel: 801-532-1234 Fax: 801-536-6111 E-mail: cterry@parsonsbehle.com DBillings@parsonsbehle.com About HRAF Holdings Midvale, Utah-based HRAF Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Utah Case No. 10-32433) on Sept. 9, 2010. Affiliate Harbor Real Asset Fund L.P. also sought Chapter 11 protection (Case No. 10-32436). The two cases are consolidated and jointly administered under the case of HRAF. George B. Hofmann, Esq., at Parsons Kinghorn & Harris, assists the Debtors in their restructuring effort. The Debtors each estimated assets and debts at $10 million to $50 million as of the Petition Date. HUDSON RIVER: Case Summary & 15 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Hudson River Radiology Center, LLC 120-152 48th Street Union City, NJ 07087 Bankruptcy Case No.: 11-17984 Chapter 11 Petition Date: March 17, 2011 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Donald H. Steckroth Debtor's Counsel: Tomas Espinosa, Esq. 4005 Bergenline Ave., Apt. 1 Union City, NJ 07087 Tel: (201) 223-1803 Fax: (201) 223-1893 E-mail: drtomasespinosa@yahoo.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb11-17984.pdf The petition was signed by Juan De Dios De la Cruz, manager and sole member. INNKEEPERS USA: Bidding Protocol Okayed; Appaloosa Suffers Setback ------------------------------------------------------------------ Bankruptcy Judge Shelley C. Chapman on Friday denied Appaloosa Investment L.P. I, Palomino Fund, Ltd., Thoroughbred Fund L.P., and Thoroughbred Master Ltd., standing to be heard as a certificateholder in the Innkeepers USA Trust bankruptcy. Judge Chapman acknowledged that Appaloosa holds beneficial interests in real estate mortgage investment conduits and the C-6 and C-7 Trusts, that own the Fixed Rate Loan, which is collateralized by 45 of the Debtors' hotel properties. This, according to Judge Chapman, merely makes Appaloosa "an investor in a creditor." Before the Court is a motion by Innkeepers (i) for authority to enter into a commitment letter with Five Mile Capital II Pooling REIT LLC), Lehman ALI Inc., and Midland Loan Services, a division of PNC Bank, National Association, in its capacity as special servicer for the Debtors' fixed rate mortgage loan, (ii) approving the New Party/Midland Commitment between the Debtors and Midland, (iii) approving bidding procedures, (iv) approving bid protections, (v) authorizing an expense reimbursement to a certain "Bidder D," and (vi) modifying cash collateral order to increase expense reserve. According to Judge Chapman, "I find that Appaloosa cannot be given 'party in interest' standing to be heard on the Motion in its capacity as a certificateholder, although it does have standing to be heard in its capacity as a holder of preferred shares and as a DIP lender." Original Five Mile/Lehman Bid In January 2011, the Debtors sought permission to enter into the Commitment Letter with Five Mile and Lehman, which contemplated an enterprise-level transaction involving the Debtors' entire portfolio of 71 hotels. In connection with the stalking horse proposal, Midland agreed to provide "stapled financing" to fund the Original Five Mile/Lehman Bid or any other qualified bid at the auction which (i) contained a debt-to-capitalization ratio for the reorganized enterprise of not greater than 70% and (ii) provided for payment to Lehman of not less than $200.3 million in cash. Although the Original Five Mile/Lehman Bid was supported by Lehman -- as holder of the Floating Loan -- and Midland -- as special servicer for the Fixed Rate Loan -- together comprising over $1 billion in principal amount of secured debt, the chorus of objections to the Motion remained loud and clear. After the filing of the Motion, the Debtors and their advisors actively continued the marketing process. Moelis & Company LLC compiled a list of potential buyers and made contact with over 200 of these parties, sending teasers to nearly 120 of them. The Debtors also executed more than 30 non-disclosure agreements and responded to detailed diligence requests from approximately 30 potential investors. Moelis also contacted nine potential financing sources, four of which executed non-disclosure agreements. The Debtors received multiple competing bid proposals, which were described in the sealed pleadings filed with the Court. As late as March 10, 2011, the date on which the hearing on the Motion commenced, interested parties continued to contact the Debtors to express interest in the Debtors' assets. On Feb. 25, 2011, formal objections to the Motion were filed by (i) the Ad Hoc Committee of Preferred Shareholders; (ii) LNR Securities Holdings, LLC and the ML-CFC 2006-4 and CSFB 2007-C1 Trusts; (iii) TriMont Real Estate Advisors, Inc.; (iv) Appaloosa; (v) CWCapital Asset Management LLC and CIII Asset Management LLC; and (vi) the Official Committee of Unsecured Creditors. A statement in response to the objections was filed by Apollo Investment Corporation. Midland, in its capacity as special servicer, filed (i) a Statement in Support of the Motion, (ii) an Omnibus Reply to the Objections to the Motion, and (iii) a Supplemental Statement in Support of the Motion. Five Mile also filed a Reply to Objections and Statement in Support of the Motion. Revised Five Mile/Lehman Bid and Final Five Mile/Lehman Bid The Original Five Mile/Lehman Bid was modified -- not once, but twice. First, it was revised to remove seven hotel properties that are secured by individual mortgages, leaving only the hotels covered by the Fixed Rate Loan and Floating Rate Loan in the revised proposed transaction. Prior to the continuation of the hearing on March 11, 2011, the Revised Five Mile/Lehman Bid was altered again, and the Debtors submitted further revised, final documents to the Court -- Final Five Mile/Lehman Bid -- which eliminated the payment of any break-up fee to Five Mile/Lehman. According to Judge Chapman, the changes "exemplify[y] a chapter 11 process at its best." "Simply put, the creditors and preferred shareholders spoke and the Debtors listened," Judge Chapman said. The Final Five Mile/Lehman Bid proposes these significant terms: -- The Final Five Mile/Lehman Bid contemplates an enterprise transaction involving certain Debtors -- Fixed/Floating Debtors -- and is valued at $970.7 million. The Final Five Mile/Lehman Bid is comprised of a capital structure that includes approximately $622.5 million of debt financing and approximately $348.2 million of equity. -- The bid covers only the properties securing the Fixed Rate Loan and the Floating Rate Loan, and the Debtors will continue to market the Seven Sisters independent of the Fixed/Floating Debtors. -- Midland will provide "stapled financing" for the Final Five Mile/Lehman Bid. -- General unsecured creditors with claims against the Fixed/Floating Debtors will share in a distribution of up to $3.75 million, but not to exceed a recovery of 65% of the face amount of allowed general unsecured claims against such Debtors. -- Apollo will contribute $375,000, all of which will be included in the amounts distributed to general unsecured creditors of the Fixed/Floating Debtors. Apollo will retain whatever rights it may have with respect to Debtors and property that are not covered by the Final Five Mile/Lehman Bid. -- Nothing in the Final Five Mile/Lehman Bid will impact the rights of any person or entity with respect to the $7.4 million in cash that is currently held in a bank account of Debtor Innkeepers USA Limited Partnership, which is not subject to the Final Five Mile/Lehman Bid. No amount of the cash will be distributed in connection with the bid. -- Confirmation of the plan encompassing the Final Five Mile/Lehman Bid will not be tied to the confirmation of any plan related to the Seven Sisters' Debtors. -- Five Mile/Lehman will receive an expense reimbursement of up to $3.0 million. Objections to the Final Five Mile/Lehman Bid On March 9 and 10, 2011, each of the objecting parties filed a statement indicating to the Court whether or not it intended to pursue its objection to the Motion in light of the revisions to the Original Five Mile/Lehman Bid. Based on each of the statements and the representations made at the hearing held on March 10 and 11, 2011, only Appaloosa continues to object to the Motion. Appaloosa believes that the revised Bidding Procedures are an impediment to competitive bidding; it specifically asserts that the revised Bidding Procedures do not permit a non-enterprise bid to be "Qualified" for the purpose of an auction and that, along with the "Overbid Allocation," the Bidding Procedures restrict bidders' ability to separately value and bid on "pool assets." Appaloosa further contends that the Lehman "cash-out" provision is a further deterrent to competitive bidding and that the "fiduciary out" contained in the Bidding Procedures does not cure any of these shortcomings. Appaloosa further objects on the basis that the revised Bidding Procedures improperly mandate terms of a plan of reorganization. Judge Chapman held that Appaloosa's concerns need not be addressed at this time. "The Debtors are asking the Court to approve Bidding Procedures and a stalking horse bid so that they may conduct an auction. The winner of the auction will gain the right to sponsor a plan of reorganization. The proposed plan will still be required to meet all confirmation requirements set forth in the Bankruptcy Code, and parties in interest will be afforded the right to make relevant objections in the event that they believe the proposed plan falls short of such requirements," Judge Chapman pointed out. "Ultimately, the transaction contemplated in the Final Five Mile/Lehman Bid, or any other bid ultimately selected by the Debtors, will not be consummated absent confirmation of a plan. The rights of all parties in interest to object to confirmation at the appropriate time are reserved and preserved." A copy of Judge Chapman's April 1 Bench Decision is available at http://is.gd/qSMiKMfrom Leagle.com. 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 protection 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, D.C., 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. INNOLOG HOLDINGS: Delays Filing of Annual Report ------------------------------------------------ Innolog Holdings Corporation notified the U.S. Securities and Exchange Commission that it will be late in filing its annual report on Form 10-K because it does not yet have all the information it needs to complete the preparation of its financial statements. About Innolog Holdings Fairfax, Virginia-based Innolog Holdings Corporation is a holding company designed to make acquisitions of companies in the government services industry. The Company's first acquisition, Innovative Logistics Techniques, Inc., is a solutions oriented provider of logistics services primarily to agencies of the U.S. government, but also to state and local agencies and to private businesses. The Company's balance sheet at Sept. 30, 2010, showed $1.19 million in total assets, $7.74 million in total liabilities, all current, and a stockholders' deficit of $6.55 million. "The Company has sustained substantial operating losses in the prior year and increasing losses in the current periods, and has a stockholders' deficit of $6.54 million and $2.49 million at Sept. 30, 2010, and Dec. 31, 2009, respectively," the Company said in its Form 10-Q for the quarter ended Sept. 30, 2010. "There are many delinquent claims and obligations, such as payroll taxes, employee income tax withholdings, employee benefit plan contributions, loans payable and accounts payable, that could ultimately cause the Company to cease operations." J&A FINISHING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: J&A Finishing Company, Inc. 1003 Orchard Street Huntsville, Al 35801 Bankruptcy Case No.: 11-81246 Chapter 11 Petition Date: March 30, 2011 Court: United States Bankruptcy Court Northern District of Alabama (Decatur) Debtor's Counsel: Kevin D. Heard, Esq. HEARD ARY, LLC 307 Clinton Ave. W., Suite 310 Huntsville, AL 35801 Tel: (256) 535-0817 Fax: (256) 535-0818 E-mail: kheard@heardlaw.com Scheduled Assets: $170,001 Scheduled Debts: $2,479,951 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/alnb11-81246.pdf The petition was signed by William B. Noojin, president/CEO. JUMA TECHNOLOGY: Incurs $10.14 Million Net Loss in 2010 ------------------------------------------------------- Juma Technology Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $10.14 million on $1.96 million of sales for the year ended Dec. 31, 2010, compared with a net loss of $12.40 million on $1.08 million of sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.45 million in total assets, $23.28 million in total liabilities, and a $19.83 million stockholders' deficiency. Seligson & Giannattasio, LLP, in White Plains, New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring losses. The realization of a major portion of its assets is dependent upon its ability to meet its future financing needs and the success of its future operations. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/ZSzvgZ About Juma Technology Farmingdale, N.Y.-based Juma Technology Corp. is a highly specialized convergence systems integrator with a complete suite of services for the implementation and management of an entity's data, voice and video requirements. LA JOLLA PHARMACEUTICAL: Delays Filing of Annual Report ------------------------------------------------------- La Jolla Pharmaceutical Company's Annual Report on Form 10-K for the year ended Dec. 31, 2010 cannot be filed on or prior to the March 31, 2011 due date without unreasonable effort or expense due to the time spent by the Registrant in performing the Dec. 31, 2010 valuation of the financial instruments issued in conjunction with the Company's May 2010 financing. Details related to this financing were disclosed in a Form 8-K filed with the Securities and Exchange Commission on May 28, 2010. The Report is expected to be filed within the 15 calendar day extension permitted by the rules of the Securities and Exchange Commission. About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. The Company's balance sheet at Sept. 30, 2010, showed $7.43 million in total assets, $8.15 million in total liabilities, all current, and $92,000 in convertible preferred stock, and a stockholders' deficit of $806,000. Ernst & Young LLP, in San Diego, Calif., 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 incurred recurring operating losses, an accumulated deficit of $424.3 million as of Dec. 31, 2009, and has no current source of revenues or financing. LAKE AT LAS VEGAS: Avoidance Suits Stay in Bankr. Court ------------------------------------------------------- District Judge Gloria M. Navarro denied motions by: -- 820 Management Trust, Lee M. Bass, Sid R. Bass, Sid R. Bass Management Trust, and BSF Partners for withdrawal of reference to the Bankruptcy Court of the Parties' Adversary Proceedings, Case No. 10-01284-LBR (Case No. 2:10-cv-1679); and -- David Cox, John R. Plunkett, Jr., Stephen Shapiro and David Voorhies for withdrawal of reference to the Bankruptcy Court of the Parties' Adversary Proceedings, Case No. 10-01284-LBR (Case No. 2:10-cv-1680). Larry Lattig, in his capacity as Trustee of the LLV Creditor Trust created in accordance with the Third Amended Chapter 11 Plan Of Reorganization proposed by Lake at Las Vegas Joint Venture, LLC and LLV-1, LLC, filed a response in the Bankruptcy Court. The Plan Trustee alleges that 820 Management et al. received a portion of a $470 million dollar distribution of loan proceeds from a $560 million loan made in 2004 from a syndicate of banks led by Credit Suisse. The Plan Trustee asserts, among other things, that the loan was a fraudulent conveyance. 820 Management et al. asked the District Court to withdraw the reference to the bankruptcy court and requested a jury trial. According to Judge Navarro, the District Court will not withdraw the reference at this time. Although the right to the jury trial does weigh in favor of withdrawing the reference, the remaining factors favor a denial. The main causes of action alleged in the adversary proceeding are fraudulent conveyance and avoidance and recovery of preferential transfers which are core bankruptcy matters best dealt with by the bankruptcy court. Allowing the Bankruptcy Judge to handle the pretrial matters will ensure uniformity in the bankruptcy process. Finally, judicial economy and efficiency is promoted by permitting the bankruptcy court to preside over the pretrial matters because of the "bankruptcy court's unique knowledge of Title 11 and familiarity with the actions before them." The case before the District Court is LARRY LATTIG, in his capacity as trustee of the LLV CREDITOR TRUST created in accordance with the THIRD AMENDED CHAPTER 11 PLAN OF REORGANIZATION PROPOSED BY LAKE AT LAS VEGAS JOINT VENTURE, LLC AND LLV-1, LLC, Plaintiff, v. 820 MANAGEMENT TRUST, et al., Defendants, Case No. 2:10-cv-1679-GMN-PAL, No. Consolidated with Case No. 2:10-cv-1680-GMN-PAL (D. Nev.). A copy of Judge Navarro's March 31, 2011 Order is available at http://is.gd/cRhMD0 from Leagle.com. Lake Las Vegas Resort is a 3,592 acre master-planned residential development and resort community located approximately 20 miles east of the center of Las Vegas, Nevada. Lake at Las Vegas Joint Venture, LLC, and LLV-1, LLC and their jointly-affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code, in the District of Nevada, on July 17, 2008. On June 21, 2010, the Debtors filed the Third Amended Chapter 11 Plan of Reorganization, which was confirmed by Order dated July 1, 2010. LAKE TAHOE: Hearing on Conversion to Chapter 7 Tomorrow ------------------------------------------------------- Adam Jensen at the Tahoe Daily Tribune reports that on April 5, 2011, a federal bankruptcy court judge will consider whether to dismiss Lake Tahoe Development Company's Chapter 11 case or convert the case to Chapter 7 liquidation proceedings. According to the report, the possible dismissal of the bankruptcy case follows foreclosure proceedings on many of the 29 parcels composing the project site. Foreclosures began in December after a federal judge began lifting orders preventing such action. The judge's orders and foreclosures "simply transformed liens on part of a project into ownership in part of a project," said Daniel Egan, an attorney for Lake Tahoe Development Company in a federal court filing. The Tahoe Daily Tribune reports that the development company opposes any move to dismiss or convert the case to Chapter 7. Lake Tahoe Development Company hopes to have a reorganization plan filed prior to the April hearing. The Plan would convert some of Lake Tahoe Development's debt and provide for the distribution of cash on hand to the company's unsecured creditors. About Lake Tahoe Development Based in Zepher Cove, Nevada, Lake Tahoe Development Co., LLC, is a real estate development company with substantial expertise in the real estate land entitlement and permitting areas in the unique geographic location of South Lake. Its principal, Randy Lane, who is the sole owner of Mountain Ventures, LLC, which is the managing member of the Debtor, has resided and developed real estate in South Lake Tahoe since 1976. The Company owns an interest in two separate real estate development projects. The first project owned exclusively by the Debtor is a large, mixed use, condominium, 19 hotel and retail space development comprised of 29 separate real estate parcels with multiple lien holders holding liens against various parcels located at the California/Nevada state line on Highway 50, South Lake Tahoe, California. The second is property owned by the Debtor located at 1259 Emerald Bay Road, South Lake Tahoe, CA (the "Gateway Project"), which is separate and apart from the Project, 24 and is being developed by Danny Freeman pursuant to a development agreement. The Company filed for Chapter 11 protection (Bankr. E.D. Calif. Case No. 09-41579) on Oct. 5, 2009. Daniel L. Egan, Esq., Megan A. Lewis, Esq., and Jason G. Cinq-Mars, Esq., at Wilke, Fleury, Hoffelt, Gould & Birney, LLP, serve as counsel to the Debtor. The Debtor estimated assets at $100 million and $500 million, and debts at $50 million and $100 million in its Chapter 11 petition. LENOX CONDOMINIUM: Confirmation Hearing Adjourned to May 6 ---------------------------------------------------------- The Lenox Condominium LLC, through counsel, has informed Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York that all matters schedules in its Chapter 11 proceeding, including the confirmation hearing and relief from stay motion by secured creditor Capital One, have been adjourned on consent of all parties, from March 24, 2011, to May 6, 2011, at 10:00 a.m. As reported in the TCR on Dec. 21, 2010, The Lenox Condominium LLC submitted to the Bankruptcy Court a proposed Plan of Reorganization and an explanatory Disclosure Statement. According to the Disclosure Statement, distributions to creditors will be funded from the sale of the Debtor's condominium units over a two-year period. The net sale proceeds will be used as follows: (a) 82% of the proceeds to Capital One on account of its secured claim; (b) 5% to fund the Unsecured Creditor Fund; (c) fund all other classified or unclassified Claims; and (d) to finally fund sales commissions, marketing costs and general operations. In exchange for the guaranty by Uptown Partners, LLC, the sole member of the Debtor, of the distribution to the unsecured creditors, the holder of the allowed interests will retain its allowed interest in the Debtor in proportion as existed prior to the filing of the case. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/LenoxCondominium_DS.pdf About The Lenox Condominium New York-based The Lenox Condominium LLC is in the real estate development business. It currently is the owner of 18 condominium units in a 77-unit, 12-story, full-service luxury condominium located on Lenox Avenue between 129th Street and 130th Street, in New York, New York. The Debtor's sole member is Uptown Partners LLC, but its day-to-day affairs are managed by its president, Lewis Futterman. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-11391) on March 17, 2010. Adam Greene, Esq., Robert R. Leinwand, Esq., and Robert M. Sasloff, Esq., at Robinson Brog Leinwand Greene Genovese Gluck. P.C., in New York, represent the Debtor. The Company estimated assets and debts at $10 million to $50 million. LIFECARE HOLDINGS: Reports $2.63 Million Net Income in 2010 ----------------------------------------------------------- LifeCare Holdings, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting net income of $2.63 million on $358.25 million of net patient service revenue for the year ended Dec. 31, 2010, compared with net income of $2.96 million on $360.31 million of net patient service revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $477.19 million in total assets, $488.67 million in total liabilities, and a $11.48 million total stockholders' deficit. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/NBRAts About LifeCare Holdings Plano, Tex.-based LifeCare Holdings, Inc. -- http://www.lifecare-hospitals.com/-- operates 19 hospitals located in nine states, consisting of eight "hospital within a hospital" facilities (27% of beds) and 11 freestanding facilities (73% of beds). Through these 19 long-term acute care hospitals, the Company operates a total of 1,057 licensed beds and employ approximately 3,200 people, the majority of whom are registered or licensed nurses and respiratory therapists. Additionally, the Company holds a 50% investment in a joint venture for a 51-bed LTAC hospital located in Muskegon, Michigan. * * * LifeCare Holdings carries "Caa1" corporate family and probability of default ratings, with negative outlook, from Moody's Investors Service and a 'CCC-' corporate credit rating, with negative outlook from Standard & Poor's Ratings Services. In November 2010, Standard & Poor's Ratings lowered its corporate credit rating on LifeCare Holdings to 'CCC-' from 'CCC+'. "The downgrade reflects the imminent difficulty the company may have in meeting its bank covenant requirements and the risk of it successfully refinancing significant debt maturing in 2011 and 2012," said Standard & Poor's credit analyst David Peknay. The likelihood of a debt covenant violation is heightened by the company's lack of appreciable operating improvement coupled with a large upcoming tightening of is debt covenant in the first quarter of 2011. Additional equity by the company's financial sponsor may be necessary to avoid a covenant violation. Accordingly, S&P believes the chances of bankruptcy have increased. LOCAL INSIGHT: Court OKs Hiring of Mesirow Financial ---------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court approved Local Insight Media's official committee of unsecured creditors' motion to retain Mesirow Financial Consulting LLC as forensic accountant and litigation advisor. As reported in the March 28, 2011 edition of the Troubled Company Reporter, the Creditors Committee has sought to retain Mesirow Financial Consulting, nunc pro tunc to Feb. 10, 2011. As accountants and advisor, MFC will review and analyze these and related information and documents: -- Indenture dated as of Nov. 30, 2007, among Windstream Regatta Holdings, Inc. and Wells Fargo Bank N.A.; -- Windstream Regatta Holdings, Inc. Offering Memorandum for 11.00% Senior Subordinated Notes due 2017; -- Local Insight Regatta Holdings, Inc. Confidential Information Memorandum for $365 million senior secured credit facilities dated April 2008; -- the Debtors' calculation of the Leverage Ratio as of April 23, 2008; and -- intercompany claims. MFC will be paid for services rendered based on its current normal and customary hourly rates: Senior Managing Director Managing Director and Director $745 - $795 Senior Vice-President $635 - $695 Vice President $535 - $595 Senior Associate $435 - $495 Associate $255 - $375 Paraprofessional $125 - $220 MFC has agreed to cap its blended hourly rate to no more than $500 per hour. MFC will also be reimbursed for its necessary expenses incurred. Ben Pickering, a Senior Managing Director of MFC, assures the Court that MFC is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Local Insight Media Wilmington, Delaware-based Local Insight Media Holdings, Inc., is a publisher of print and online yellow page directories in the United States. Local Insight, along with affiliates, including Local Insight Regatta Holdings, Inc., filed for Chapter 11 bankruptcy protection on (Bankr. D. Del. Lead Case No. 10-13677) on Nov. 17, 2010. Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis LLP, serve as the Debtors' bankruptcy counsel. Curtis A. Hehn, Esq., Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl & Jones LLP, are the Debtors' co-counsel. The Debtors' investment banker and financial advisor is Lazard Freres & Co. LLC. The Debtors' independent auditor is Deloitte & Touche LLP. The Debtors' interim management and restructuring advisors are Alvarez & Marsal North America, LLC, and Avarez & Marsal Private Equity Performance Improvement Group, LLC. Kurtzman Carson Consultants LLC is the Debtors' notice and claims agent. Local Insight Media Holdings estimated assets of less than $50,000 and liabilities of $100 million to $500 million in its Chapter 11 petition. Local Insight Regatta reported consolidated assets of $796,270,000 against consolidated debts of $669,612,000 as of Sept. 30, 2010, according to its Form 10-Q filed with the Securities and Exchange Commission. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP as its counsel; Morris, Nichols, Arsht & Tunnel LLP as Delaware co-counsel; and Houlihan Lokey Howard & Zukin Capital Inc. as its financial advisor and investment banker. MARGAUX ORO: Taps Coffin & Driver as Counsel -------------------------------------------- Margaux Oro Partners LLC asks the U.S. Bankruptcy Court for the Northern District of Texas for permission to employ Coffin & Driver PLLC as counsel to advise and represent the Debtor with respect to all reorganization, litigation, and general corporate law matters. The firm's associate attorneys will charge between $150 and $275 per hour, and legal assistant or law clerk bill between $50 and $95 per hour for this engagement. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Margaux Oro Dallas, Texas-based Margaux Oro Partners, LLC, owns 83,400 square foot Plaza Del Oro Shopping Center in Cockrell Hill, Dallas County, Texas. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-30337) on Jan. 11, 2011. Vickie L. Driver, Esq., Alexandra P. Olenczuk, Esq., and Courtney J. Hull, Esq., at Coffin & Driver, PLLC, in Dallas, serves as the Debtor's bankruptcy counsel. No creditors' committee has been appointed in this case. In its schedules, the Debtor disclosed $13,171,602 in assets and $10,934,144 in liabilities as of the petition date. Donald Lewis Silverman, the sole manager of the Debtor, filed a voluntary petition for personal relief under Chapter 7 of the Bankruptcy Code (Bankr. N.D. Tex. Case no. 10-31785). Silverman received his discharge on November 12, 2010. MARGAUX ORO: Gets Interim Approval to Use Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas entered a second interim order to allow Margaux Oro Partners LLC to access cash collateral of Wells Fargo under the budget. The Debtor asserted that an immediate and critical need exists for the Debtor to obtain funds in order to continue the operation of its business. Without such funds, the Debtor asserts that it will not be able to (i) fund post-petition operating expenses, and (ii) will be unable to obtain goods and services needed to carry on its business during this interim period. Accordingly, the Debtor asserts that the inability to use cash collateral will cause irreparable harm to the Debtor's estate. The Debtor further asserts that its ability to use cash collateral is necessary to preserve and maintain the going concern value of the Debtor's estate. The Wells Fargo Claim is secured by, among other things, the real estate commonly known as the Plaza Del Oro Shopping Center located at 4402 W. Jefferson Blvd., Dallas, Texas 75211. The Debtor will provide adequate protection, and liens and security interests. A full-text copy of the Cash Collateral Budget is available for free at http://ResearchArchives.com/t/s?758b About Margaux Oro Dallas, Texas-based Margaux Oro Partners, LLC, owns 83,400 square foot Plaza Del Oro Shopping Center in Cockrell Hill, Dallas County, Texas. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-30337) on Jan. 11, 2011. Vickie L. Driver, Esq., Alexandra P. Olenczuk, Esq., and Courtney J. Hull, Esq., at Coffin & Driver, PLLC, in Dallas, serves as the Debtor's bankruptcy counsel. No creditors' committee has been appointed in this case. In its schedules, the Debtor disclosed $13,171,602 in assets and $10,934,144 in liabilities as of the petition date. Donald Lewis Silverman, the sole manager of the Debtor, filed a voluntary petition for personal relief under Chapter 7 of the Bankruptcy Code (Bankr. N.D. Tex. Case no. 10-31785). Silverman received his discharge on November 12, 2010. METAMORPHIX INC: Hearing on Conversion Motion Set for April 20 -------------------------------------------------------------- The hearing on the motion of MetaMorphix, Inc., and MMI Genomics, Inc.'s motion to convert their cases from Chapter 11 to Chapter 7 is set for April 20, 2011, at 10:30 a.m. Objections to the motion, if any, must be filed by April 11, 2011, at 4:00 p.m. As reported in the TCR on March 23, 2011, following the sale of its assets to noteholders for a $6 million credit bid, MetaMorphix, Inc., asked the U.S. Bankruptcy Court for the District of Delaware to convert its Chapter 11 case into a Chapter 7 liquidation proceeding. On March 8, 2011, Branhaven LLC, acting as collateral agent to the holders of 12.5% Notes (issued by MetaMorphix on Nov. 14, 2003), was the winning bidder of substantially all of the assets of the Debtors. The Court approved the Sale on March 9, 2011. About MetaMorphix, Inc. Beltsville, Maryland-based Metamorphix, Inc. -- http://www.metamorphixinc.com-- a life sciences company, along with its subsidiary MMI Genomics, Inc., develops tools, technologies, and products for livestock and companion animal health and productivity. The Company offers systems for DNA-based parent verification and diagnostic testing in livestock and companion animals. Metamorphix had been forced into Chapter 7 bankruptcy by 14 creditors who are owed $1.69 million. The original case was filed on Jan. 28, 2010, in the U.S. Bankruptcy Court for the District of Delaware. On Sept. 30, 2010, the Court converted the case from an involuntary Chapter 7 to a voluntary Chapter 11 case (Bankr. D. Del. Case No. 10-10273). MetaMorphix's subsidiary, MMI Genomics Inc., filed for Chapter 11 (Bankr. D. Del. Case No. 10-13775) on Nov. 18, 2010. Adam Hiller, Esq., Donna L. Harris, Esq., and Kevin M. Capuzzi, Esq., at Pinckney, Harris & Weidinger, LLC, in Wilmington, Del., represent the Debtors as counsel. Metamorphix disclosed assets of $314,000 and debt of $79.5 million in its Schedules of Assets and Liabilities. MMI Genomics disclosed assets of $1.28 million and debt of $10.9 million. The cases are jointly administered under Case No. 10-10273. MILESTONE SCIENTIFIC: Incurs $614,508 Net Loss in 2010 ------------------------------------------------------ Milestone Scientific Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $614,508 on $9.75 million of product sales for the year ended Dec. 31, 2010, compared with a net loss of $1.53 million on $8.55 million of product sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $6.61 million in total assets, $4.27 million in total liabilities and $2.33 million in total stockholders' equity. Holtz Rubenstein Reminick LLP, in New York, noted that the Company has suffered recurring losses from operations since inception, which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/gEEW50 About Milestone Scientific Piscataway, N.J.-based Milestone Scientific Inc. (OTC BB: MLSS) -- http://www.milestonescientific.com/-- is engaged in pioneering proprietary, highly innovative technological solutions for the medical and dental markets. Central to the Company's IP platform and product development strategy is its patented CompuFlo(R) technology for the improved and painless delivery of local anesthetic. NATIONAL HOME: Court Confirms Plan of Liquidation ------------------------------------------------- The Hon. Ben T Barry of the U.S. Bankruptcy Court for the Western District of Arkansas confirmed National Home Centers Inc.'s Chapter 11 plan of liquidation, as amended Feb. 21, 2011. Under the plan, among other things, holders of unsecured claims will periodically receive its pro rata share of cash available for distribution after reserving sufficient cash to pay in full administrative expenses. Holders will be entitled to receive periodic distribution until all allowed unsecured claims are paid in full without interest. Interests in the Debtor will be cancelled as of the Plan's effective date. The Plan set no specific date on which the dissolution agent will make an initial distribution to the unsecured holders. The initial distribution will occur promptly upon the dissolution agent determining that the Debtor holds cash in an amount equal to at least $250,000 more that the estimated amount of cash required to pay in full all allowed and disputed administrative expenses. A full-text copy of the Amended Plan of Liquidation is available for free at http://ResearchArchives.com/t/s?758a About National Home Centers National Home Centers, Inc., operated retail home centers in Springdale, Russellville, Little Rock, Bentonville, North Little Rock, Conway, Fort Smith and Clarksville, Arkansas and retail flooring centers in Springdale and Conway, Arkansas. The Company filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ark. Case No. 09-76195) on Dec. 8, 2009. Charles T. Coleman, Esq., Judy Simmons Henry, Esq., and Kimberly Wood Tucker, Es., at Wright, Lindsey & Jennings LLP assist the Debtor in its restructuring effort. The Debtor retained CRG Management, L.L.C., as its financial advisors in its Chapter 11 case. Michael Traison, Esq., and Marc N. Swanson, Esq., at Miller, Canfield, Paddock & Stone, P.L.C., in Chicago, Ill., and David Nixon, Esq., at The Nixon Law Firm, in Fayetteville, Ark., represent the official committee of unsecured creditors as counsel and local counsel, respectively. In its schedules, the Debtor disclosed $42,427,298 in assets and $26,986,359 in liabilities. NCO GROUP: Incurs $155.71 Million Net Loss in 2010 -------------------------------------------------- NCO Group, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $155.71 million on $1.60 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of $88.14 million on $1.58 billion of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.23 billion in total assets, $1.15 billion in total liabilities and $86.92 million in total stockholders' equity. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/8FbdmJ About NCO Group Inc. Based in Horsham, Pennsylvania, NCO is a global provider of business process outsourcing services, primarily focused on accounts receivable management and customer relationship management. NCO has over 25,000 full and part-time employees who provide services through a global network of over 100 offices. The company is a portfolio company of One Equity Partners and reported revenues of about $1.2 billion for the twelve month period ended Sept. 30, 2007. As reported by the Troubled Company Reporter on Feb. 2, 2011, Moody's Investors Service downgraded NCO Group, Inc.'s CFR to Caa1 from B3 and changed the outlook to negative. Simultaneously, Moody's has also downgraded each of NCO's debt instrument ratings by one notch and lower the Speculative Grade Liquidity rating to SGL-4 from SGL3. The downgrade reflects Moody's concern that greater than expected revenue declines and continued earnings pressure will extend beyond current levels due to deteriorating consumer payment patterns and weaker volumes. In addition, Moody's expects financial flexibility will be further aggravated by tightening headroom under its financial covenants and a potential breach of covenants which will limit the company's ability to draw upon its revolver. Also, the company faces an impending maturity on its $100 million senior secured revolving credit facility due November of 2011. NEW JERSEY MOTORSPORTS: TRG Drops Plans for $5-Mil. Milville HQ --------------------------------------------------------------- Brian Ianieri at pressofAtlanticCity.com reports that The Racing Group (TRG), a California-based motorsports company, has pulled plans for a $5 million East Coast headquarters at the New Jersey Motorsports Park. According to the report, TRG had ambitious plans for a location at the 3-year-old Cumberland County raceway, including a "country club environment for racers," garages, offices, racing simulators, and a wine and cigar bar. TRG, a racing organization that has operations in Petaluma, California, and Mooresville, North Carolina, said its plans have since changed. In a statement, TRG cited the facility's management and the park's recent Chapter 11 bankruptcy protection filing as reasons for shelving the plan. The company began removing equipment, personnel and signs. Millville, New Jersey-based New Jersey Motorsports Park, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. N.J. Case No. 11-16752) on March 7, 2011. Nella M. Bloom, Esq., at Cohen Seglias Pallas Greenhall & Furman, PC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $100,001 to $500,000 and debts at $10 million to $50 million. Affiliates New Jersey Motorsports Park Operating Company, LLC (Bankr. D. N.J. Case No. 11-16772), New Jersey Motorsports Park Development Association (Bankr. D. N.J. Case No. 11-16776), and New Jersey Motorsports Park Urban Renewal, LLC (Bankr. D. N.J. Case No. 11-16778) filed separate Chapter 11 petitions on March 7, 2011. NORD RESOURCES: Incurs $21.20 Million Net Loss in 2010 ------------------------------------------------------ Nord Resources Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $21.20 million on $28.64 million of net sales for the year ended Dec. 31, 2010, compared with net income of $392,438 on $19.91 million of net sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $63.60 million in total assets, $61.47 million in total liabilities and $2.13 million in total stockholders' equity. Mayer Hoffman McCann P.C., in Phoenix, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted as of Dec. 31, 2010 and 2009, the Company reported a deficit in net working capital of $39,929,666 and $7,652,818, respectively. The Company's significant historical operating losses, lack of liquidity, and inability to make the requisite principal and interest payments due under the terms of the Company's credit agreement with its senior lender raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/pFZpI4 About Nord Resources Based in Tuczon, Arizona, Nord Resources Corporation (TSX:NRD/OTCBB:NRDS.OB) -- http://www.nordresources.com/-- is a copper mining company whose primary asset is the Johnson Camp Mine, located approximately 65 miles east of Tucson, Arizona. Nord commenced mining new ore on February 1, 2009. Nedbank, the Company's senior lender, has declined to extend the forbearance agreement with respect to the scheduled principal and interest payment in the approximate amount of $2,150,000 that was due on March 31, 2010 under the Company's $25,000,000 secured term-loan credit facility with Nedbank. Nedbank Capital has also declined to extend the forbearance agreement regarding the Company's failure to make the payment of $697,869 due on April 6, 2010 under the Copper Hedge Agreement between the parties. Both forbearance agreements expired at midnight on May 13, 2010. The Company is now in default of its obligations under the Credit Agreement and the Copper Hedge Agreement with Nedbank. On June 2, 2010, Nord Resources appointed FTI Consulting to advise on refinancing structures and strategic alternatives. NORTHGATE PROPERTIES: Taps Darby Law as Bankruptcy Counsel ---------------------------------------------------------- Northgate Properties, Inc., asks the U.S. Bankruptcy Court for the District of Nevada for permission to employ Kevin A. Darby, Esq., of Darby Law Practice, Ltd. as its counsel nunc pro tunc to the petition date. The Debtor believes that Darby Law Practice is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code as required by Section 327(a) of the Bankruptcy Code and tha Darby Law Practice does not hold or represent an interest adverse to the Debtor or its estate. The Debtor proposes to pay Darby Law Practice its customary hourly rates in effect on the date the services are rendered. Reno, Nevada-based Northgate Properties, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-50451) on Feb. 14, 2011. In its schedules, the Debtor disclosed $12,053,476 in assets and $5,811,393 in liabilities as of the petition date. OM SHIVAI: Court Rejects Plan & Dismisses Chapter 11 Case --------------------------------------------------------- Bankruptcy Judge David R. Duncan rejected Om Shivai, Inc.'s Small Business Disclosure Statement and denied confirmation of its Small Business Plan, both filed Feb. 16, 2011. Judge Duncan said the Plan is not feasible. Instead, Judge Duncan dismissed the bankruptcy case. The United States Trustee objected to the Plan and sought dismissal of the case. First Citizens Bank & Trust Co. also objected. The Debtor filed for chapter 11 protection (Bankr. D. S.C. Case No. 10-04588) on June 29, 2010, and designated itself as a small business debtor in its petition. The Debtor owns and operates a Days Inn motel franchise in Richburg, South Carolina. The Debtor purchased the 27 room motel in April 1999. The Debtor's Schedule D shows secured debt of $1,137,385, including a $1,083,585 mortgage with First Citizens Bank and two tax liens with Chester County and the South Carolina Department of Revenue. The Debtor's Schedule F shows unsecured debt of $84,503.41, and Schedule E shows priority debt of $2,000 owed to the IRS. The Plan proposes to pay First Citizens' claim over a 120-month period at 6% interest, with monthly payments of $3,706.91. At the end of the 120-month period, a balloon payment will be due. The Debtor proposes to pay Chester County's claim over a 60-month period at 5.25% interest. The Debtor will pay the $75,624.85 owed to Chester County in monthly installments of $1,430. The Debtor proposes to pay the $800 claim of the South Carolina Department of Revenue over a 60-month period at 5.25%. This debt will be paid in monthly installments of $15.12 per month. The Debtor's priority debt to the IRS will be paid over a 60-month period at 5.25%, in monthly installments of $37.81. Proposed payments to all other classes are minimal. Since the beginning of the case, the Debtor's monthly operating reports show a total of only $1,000 in repair expenses. The motel is currently in need of approximately $95,000 for repairs. The Debtor's motel is located near an exit off of Interstate 77. There are at least five other motels at the same exit. Testimony established that the Debtor's occupancy is generally between 26 and 28 percent, and that this figure is much lower than the other five motels. The Debtor's motel is also older than the majority of the other motels. The U.S. Trustee objects to confirmation largely based on the fact that the Debtor has not shown an ability to fund its Plan. The Bank's Objection sets forth numerous problems with the Debtor's Plan, including improper classification of claims, violation of the absolute priority rule, and lack of feasibility. An Order Conditionally Approving Disclosure Statement was entered Feb. 18, 2011. A copy of Judge Duncan's April 1, 2011 Order is available at http://is.gd/G4y70yfrom Leagle.com. PARK CENTRAL: Section 341(a) Meeting Scheduled for April 28 ----------------------------------------------------------- The U.S. Trustee for Region 17 will convene a meeting of Park Central Plaza 32, LLC's creditors on April 28, 2011, at 2:00 p.m. The meeting will be held at 300 Las Vegas Boulevard, South, Room 1500, Las Vegas, Nevada. 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. Las Vegas, Nevada-based Park Central Plaza 32, LLC, filed for Chapter 11 bankruptcy protection on March 23, 2011 (Bankr. D. Nev. Case No. 11-14153). Bob L. Olson, Esq., at Greenberg Traurig LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. PATRICK HACKETT: Auction for Ogdensburg Store on April 6 -------------------------------------------------------- David Winters at the Watertown Daily Times reports that the highest bidder will acquire the former Hacketts flagship store on Pickering Street, in Ogdensburg, New York, after a public auction April 6. U.S. Bankruptcy Court Judge Diane Davis ordered the Hacketts department store property to be sold as part of the liquidation action of the assets of the Patrick Hackett Hardware Co. The 53,811-square-foot, single-story building, which sits on nearly 3.2 acres, has an expansive parking lot. The bankruptcy court authorized Anderson Auction & Realty, Buffalo, to handle the auction. The public auction will start at 10 a.m. at the former store, 1223 Pickering St. Inspection of the building starts 90 minutes before the sale begins, the auctioneer said. Those interested in buying the building must bring a $50,000 certified check made payable to the auctioneer, he adds. According to the report, following the building sale, the inventory and equipment inside the former store will be auctioned off, court records show. The auction will not include the former Hacketts space in Canton's Midtown Shopping Plaza. Federal court records have not indicated what will happen with the Canton location. In a separate action, Judge Davis on March 17 approved the sale of a second Hacketts property at 1301 State St. to Leegill Ventures Inc., LaFargeville, for $400,000. The 22,000-square-foot, one- story, steel-framed building formerly housed Hacketts Power Place. About Patrick Hackett Patrick Hackett Hardware Company began in 1830 as a hardware store in upstate New York. Hacketts now operates full-service department stores and a specialty store, selling a full line of clothes, consumer electronics, cell phones, shoes, housewares, hardware and others. Patrick Hackett filed for Chapter 11 (Bankr. N.D. N.Y Case No. 09- 63135) on Nov. 10, 2009. The Debtor estimated less than $10 million in total assets in its Chapter 11 petition. Hackett's Stores, Inc., is the parent company of Patrick Hackett. Hackett's Stores (Pink Sheets:HCKI) is a holding of Seaway Valley Capital Corporation (Pink Sheets:SEVA). Hackett's Stores is not nor has ever been in bankruptcy or bankruptcy protection. PEARL ARTIST: Emerges From Chapter 11 Bankruptcy Protection ----------------------------------------------------------- The Sun Sentinel reports that Pearl Artist & Craft Supply successfully emerged from Chapter 11 bankruptcy proceedings after seeking protection from its creditors last April. "It has taken seven-day work weeks and many 20-hour days," said Rosalind Perlmutter, president of the Fort Lauderdale-based art supply chain. "It's a huge achievement." The 'new' Pearl will focus on building relationships with local fine artists to serve their niche needs, but will also provide products and services for mainstream customers such as custom framing, Ms. Perlmutter said, according to the report. Based in Fort Lauderdale, Florida, Pearl Artist & Craft Supply Corp. filed for Chapter 11 bankruptcy protection on April 10, 2010 (Bankr. S.D. Fla. Case No. 10-19358). Judge John K. Olson presides over the case. Martin L. Sandler, Esq., represents the Debtor. The Debtor estimated assets between $1 million and $10 million, and debts between $10 million and $50 million. PJ FINANCE: Hearing on Further Cash Use on Wednesday ---------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered, on March 17, 2011, its second interim order authorizing PJ Finance Company, LLC, et al., to use the prepetition lenders' cash collateral from the petition date through and including the Termination Date, or the first business day following the final hearing on the motion. The motion is set for final hearing at 9:00 a.m. on April 6, 2011. Thus, the termination date is April 7, 2011. The objection to the motion filed by Torchlight Loan Services, LLC, as special servicer for mortgage-backed securities including $475 million in mortgages on the properties, is preserved in all respects for the Final Hearing. Until the repayment in full in cash of the value of the prepetition collateral securing the prepetition senior obligations or the effective date respecting any order confirming a plan in the Debtors' cases, as adequate protection, the Trustee and Special Servicer, for themselves and for the benefit of the holders of the CMBS, are granted replacement liens in all of the postpetition collateral to the same extent, priority and enforceability held on the prepetition collateral as of the petition date. The Adequate Protection Senior Liens will be subordinate only to the Prepetition Senior Liens, the Prior Liens and Carve-Out. The Trustee and the Special Servicer will also have an allowed super-priority administrative expense claim against each Debtor and its respective estate to the extent of any diminution in the Prepetition Collateral and to the extent the Replacement Liens prove inadequate to protect said interests. The Adequate Protection Senior Claim will be subordinate only to the Carve-Out. The motion is set for a final hearing to be held at 9:00 a.m. on April 6, 2011. In November 2006, Alliance PJRT Limited Partnership and Alliance PJWE Limited Partnerships entered into an amended and restated loan agreement with Column Financial Inc., as originating lender, whereby the originating Lender agreed to make a loan to the partnerships in the principal amount of $475 million with a Nov. 11, 2016 maturity date. In May 2007, the originating lender sold the prepetition loan documents to Credit Suisse First Boston Mortgage Securities Corp. Pursuant to that certain pooling and servicing agreement dated May 1, 2007, Credit Suisse contributed the prepetition loan documents to a trust. Under that agreement, Bank of America, N.A., acts as successor trustee; Wachovia Bank, N.A., acts as the master servicer; and Torchlight Loan Services, LLC, acts as special servicer. The loan is secured by mortgages and deeds of trust encumbering all of the properties in favor of the Trustee. The partnerships are currently indebted on the loan in the amount of $475 million plus accrued and unpaid interest, costs and fees. About PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10688) on March 7, 2011. Affiliates PJ Holding Company Manager, LLC (Bankr. D. Del. Case No. 11-10692); PJ Holding Company, LLC (Bankr. D. Del. Case No. 11-10693); Alliance PJRT GP, Inc. (Bankr. D. Del. Case No. 11-10695); Alliance PJWE GP, L.L.C. (Bankr. D. Del. Case No. 11-10697); Alliance PJRT Limited Partnership (Bankr. D. Del. Case No. 11-10699); and Alliance PJWE Limited Partnership (Bankr. D. Del. Case No. 11-10700) filed separate Chapter 11 petitions. The cases are jointly administered with PJ Finance Company as the lead case. Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. Christopher A. Jarvinen, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, represent the official committee of unsecured creditors as lead counsel. Richard Scott Cobb, Esq., and William E. Chipman, Jr., Esq., at Landis Rath & Cobb, in Wilmington, Del., represent the official committee of unsecured creditors as local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). PJ said it has a commitment for Gaia Real Estate Investments LLC to invest $42 million and serve as the foundation for a reorganization plan. PJ FINANCE: U.S. Trustee Forms 7-Member Creditors Committee ----------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, appointed seven members to the official committee of unsecured creditors in the Chapter 11 cases of PJ Finance Company, LLC, and its affiliates. The Creditors Committee members are: 1. Quantum Asset Development, Inc. Attn: Michael Comar 4225 Lake Forest Dr. Kalamazoo, MI 49008 Tel: (269) 929-7686 Fax: (317) 663-2088 2. Alliance Tax Advisors, LLC Attn: Tony Comparin 433 E. Las Colinas Blvd., Suite 980 Irving, TX 75039 Tel: (214) 496-9800 Fax: (214) 496-9801 3. Genie Services, Inc. Attn: Nicholas Eancheff 2010 W. Parkside Lane, Suite 140 Phoenix, AZ 85027 Tel: (623) 582-6111 Fax: (623) 582-6116 4. Richmond & Associates Landscaping, Ltd. Attn: James Richmond 11359 Kline Dr. Dallas, TX 75229 Tel: (972) 488-4769 Fax: (972) 488-8999 5. Texmenian Contractors Inc., d/b/a Red Carpet Cleaning Attn: Alberto Carrizal P.O. Box 892 Colleyville, TX 76034 Tel: (817) 825-1393 Fax: (817) 633-4087 6. One Call Sourcing International LLC d/b/a Aimsco/MRO Attn: Tim Grout 2399 Midway Rd. Carrollton, TX 75006 Tel: (972) 818-1065 Fax: (972) 818-1069 7. Nature's Paintbrush, Attn: Michael Gossett 3153 Spur Trail Dallas, TX 75234 Tel: (214) 287-6457 Fax: (972) 243-4502 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 PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10688) on March 7, 2011. Affiliates PJ Holding Company Manager, LLC (Bankr. D. Del. Case No. 11-10692); PJ Holding Company, LLC (Bankr. D. Del. Case No. 11-10693); Alliance PJRT GP, Inc. (Bankr. D. Del. Case No. 11-10695); Alliance PJWE GP, L.L.C. (Bankr. D. Del. Case No. 11-10697); Alliance PJRT Limited Partnership (Bankr. D. Del. Case No. 11-10699); and Alliance PJWE Limited Partnership (Bankr. D. Del. Case No. 11-10700) filed separate Chapter 11 petitions. The cases are jointly administered with PJ Finance Company as the lead case. Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. Christopher A. Jarvinen, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, represent the official committee of unsecured creditors as lead counsel. Richard Scott Cobb, Esq., and William E. Chipman, Jr., Esq., at Landis Rath & Cobb, in Wilmington, Del., represent the official committee of unsecured creditors as local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). PJ said it has a commitment for Gaia Real Estate Investments LLC to invest $42 million and serve as the foundation for a reorganization plan. PJ FINANCE: Taps DLA Piper (US) as Bankruptcy Counsel ----------------------------------------------------- PJ Finance Company, LLC, and its affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ DLA Piper LLP (US) as counsel, nunc pro tunc to March 7, 2011. DLA Piper will charge for its legal services on an hourly basis in accordance with its ordinary and customary hourly rates in effect on the date the services are rendered. The Debtors believe that the firm dot not have an interest materially adverse to the Debtors and their respective estates, and that the firm is a "disinterested person", as that term is defined in Sec. 101(14) of the Bankruptcy Code. About PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10688) on March 7, 2011. Affiliates PJ Holding Company Manager, LLC (Bankr. D. Del. Case No. 11-10692); PJ Holding Company, LLC (Bankr. D. Del. Case No. 11-10693); Alliance PJRT GP, Inc. (Bankr. D. Del. Case No. 11-10695); Alliance PJWE GP, L.L.C. (Bankr. D. Del. Case No. 11-10697); Alliance PJRT Limited Partnership (Bankr. D. Del. Case No. 11-10699); and Alliance PJWE Limited Partnership (Bankr. D. Del. Case No. 11-10700) filed separate Chapter 11 petitions. The cases are jointly administered with PJ Finance Company as the lead case. Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. Christopher A. Jarvinen, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, represent the official committee of unsecured creditors as lead counsel. Richard Scott Cobb, Esq., and William E. Chipman, Jr., Esq., at Landis Rath & Cobb, in Wilmington, Del., represent the official committee of unsecured creditors as local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). PJ said it has a commitment for Gaia Real Estate Investments LLC to invest $42 million and serve as the foundation for a reorganization plan. PJ FINANCE: Creditors Committee Taps Hahn & Hessen as Co-Counsel ---------------------------------------------------------------- The official committee of unsecured creditors of PJ Finance Company, LLC, and its affiliates asks the U.S. Bankruptcy Court for the District of Delaware for permission to employ Hahn & Hessen LLP as its co-counsel, effective as of March 16, 2011. To the best of the Committee's knowledge, H&H has and represents no interest adverse to the committee or the Debtors' estates. H&H has agreed to represent the Committee and to be compensated at its customary rates for services rendered and for actual expenses incurred, subject to the approval of the Bankruptcy Court. About PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance filed for Chapter 11 bankruptcy protection on March 7, 2011 (Bankr. D. Del. Case No. 11-10688). Affiliates PJ Holding Company Manager, LLC (Bankr. D. Del. Case No. 11-10692); PJ Holding Company, LLC (Bankr. D. Del. Case No. 11-10693); Alliance PJRT GP, Inc. (Bankr. D. Del. Case No. 11-10695); Alliance PJWE GP, L.L.C. (Bankr. D. Del. Case No. 11-10697); Alliance PJRT Limited Partnership (Bankr. D. Del. Case No. 11-10699); and Alliance PJWE Limited Partnership (Bankr. D. Del. Case No. 11-10700) filed separate Chapter 11 petitions. The cases are jointly administered with PJ Finance Company as the lead case. Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. Christopher A. Jarvinen, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, represent the official committee of unsecured creditors as lead counsel. Richard Scott Cobb, Esq., and William E. Chipman, Jr., Esq., at Landis Rath & Cobb, in Wilmington, Del., represent the official committee of unsecured creditors as local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). PJ said it has a commitment for Gaia Real Estate Investments LLC to invest $42 million and serve as the foundation for a reorganization plan. RADIO ONE: Has 32-Month Contract with Chief Exec. Thompson ---------------------------------------------------------- Radio One, Inc., executed an employment agreement with Peter D. Thompson, the Company's chief financial officer on March 3, 2011. The employment agreement is through Nov. 12, 2013 with an initial annual base salary of $550,000. Under the terms of the agreement, Mr. Thompson is eligible for an annual bonus of $200,000. A copy of the employment agreement is available for free at: http://is.gd/e94od0 About Radio One Based in Washington, Radio One, Inc. (Nasdaq: ROIAK and ROIA) -- http://www.radio-one.com/-- is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation's largest radio broadcasting companies, currently owning 53 broadcast stations located in 16 urban markets in the United States. Radio One operates syndicated programming including the Russ Parr Morning Show, the Yolanda Adams Morning Show, the Rickey Smiley Morning Show, CoCo Brother Live, CoCo Brother's "Spirit" program, Bishop T.D. Jakes' "Empowering Moments", the Reverend Al Sharpton Show, and the Warren Ballentine Show. The Company also owns a controlling interest in Reach Media, Inc. -- http://www.blackamericaweb.com/-- owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Radio One owns Interactive One -- http://www.interactiveone.com/ -- an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful, Community Connect Inc. -- http://www.communityconnect.com/-- an online social networking company, which operates a number of branded Web sites, including BlackPlanet, MiGente, and Asian Avenue and an interest in TV One, LLC -- http://www.tvoneonline.com/-- a cable/satellite network programming primarily to African-Americans. The Company reported a net loss of $26.62 million on $279.90 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $48.55 million on $272.09 million of net revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $999.21 million in total assets, $774.24 million in total liabilities, $30.64 million in redeemable noncontrolling interests and $194.33 million in total stockholders' equity. In its report dated Aug. 23, 2010, for the Company's fiscal 2009 financial statements, Ernst & Young LLP expressed substantial doubt as to the Company's ability to continue as a going concern, given certain covenant violations under the Company's loan agreements which could have resulted in significant portions of the Company's outstanding debt becoming callable by the Company's lenders. The Company noted that these violations were cured as a part of certain refinancing transactions more fully described in our Current Report on Form 8-K filed, Dec. 1, 2010. Having cured these violations, the Company's audited financial statements for 2010 have been prepared assuming that it will continue as a going concern. * * * In the Dec. 10, 2010 edition of the TCR, Moody's confirmed the Caa1 rating for Radio One, Inc.'s Corporate Family Rating and confirmed its Caa2/LD Probability of Default Rating. According to Moody's, the Caa1 corporate family rating will reflect Radio One's high pro forma debt-to-EBITDA leverage of approximately 8.0x (incorporating Moody's standard adjustments) mitigated by improved operating performance due to expected political advertising gains in 4Q10 followed by double digit EBITDA gains in 1Q11 compared to a weak 1Q10. Despite expected growth in EBITDA and improving debt-to-EBITDA leverage ratios, reported debt balances will remain flat at approximately $655 million for the next 12 months due to the anticipated funding of the TV One capital call as well as the potential accretion of the PIK portion of the new 12.5%/15% subordinated notes due 2016. As reported by the Troubled Company Reporter on March 11, 2011, Standard & Poor's Ratings Services said it raised its long-term corporate credit rating on U.S. radio broadcaster Radio One Inc. to 'B-' from 'CCC+'. The rating outlook is stable. "The 'B-' rating and stable outlook reflect S&P's view that the proposed transaction will improve Radio One's financial flexibility by eliminating near-term refinancing risk and increasing headroom under financial covenants," said Standard & Poor's credit analyst Michael Altberg. "Going forward, S&P believes the company's increased ownership in TV One LLC, a growing African American-targeted cable TV network, provides additional diversity to Radio One's business profile and access to a more stable revenue stream." REDDY ICE: Incurs $32.50 Million Net Loss in 2010 ------------------------------------------------- Reddy Ice Holdings, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $32.50 million on $315.45 million of revenue for the year ended Dec. 31, 2010, compared with net income of $14.30 million on $312.33 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $458.82 million in total assets, $510.34 million in total liabilities, and a $51.52 million stockholders' deficit. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/UU3MdX About Reddy Ice Reddy Ice Holdings, Inc. -- http://www.reddyice.com/-- manufactures and distributes packaged ice in the United States. The company serves variety of customers in 31 states and the District of Columbia under the Reddy Ice brand name. * * * Reddy Ice carries 'B-' issuer credit ratings, with "negative" outlook, from Standard & Poor's. As reported by the Troubled Company Reporter on Aug. 17, 2010, Moody's Investors Service lowered Reddy Ice Holdings' corporate family and probability-of-default ratings to B3 from B2, and its $12 million senior discount notes due 2012 to Caa2 from Caa1. Moody's also lowered the rating on Reddy Ice Corporations' $300 million first lien senior secured notes due 2015 to B2 from B1 and the $139 million second lien notes due 2015 to Caa2 from Caa1. The ratings outlook remains negative. The speculative grade liquidity rating was affirmed at SGL-3. The ratings downgrade was prompted by Reddy Ice's elevated financial leverage through the first half of 2010 due to weaker than expected operating performance and the expectation that leverage will remain elevated. The B3 corporate family rating considers ongoing operational risks related to weather as well as increasing acquisition activity. RITE AID: Amends Offer to Exchange Option for Clarification ----------------------------------------------------------- Rite Aid Corporation filed with the U.S. Securities and Exchange Commission an Amendment No. 1 to its tender offer statement to amend and supplement the Tender Offer Statement on Schedule TO filed with the SEC on March 21, 2011, relating to an offer by the Company to certain eligible associates to exchange their outstanding options to purchase shares of the Company's common stock for new options on the terms and conditions set forth in the Offer to Exchange Certain Outstanding Stock Options for New Stock Options, dated March 21, 2011. The Company is amending its Offer to Exchange to clarify that eligible associates may make an election to tender eligible stock options, or to withdraw a previous election to tender eligible stock options, via facsimile. A full-text copy of the filing is available for free at: http://is.gd/7VC7Wk About Rite Aid Drugstore chain Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- based in Camp Hill, Pennsylvania, has more than 4,700 stores in 31 states and the District of Columbia and fiscal 2010 annual revenues of $25.7 billion. Rite Aid carries 'Caa2' probability of default and corporate family ratings from Moody's Investors Service. It has a 'B-' corporate credit rating from Standard & Poor's Ratings Services. The Company's balance sheet at Nov. 27, 2010, showed $7.8 billion in total assets, $9.8 billion in total liabilities, and a stockholders' deficit of $2.0 billion. RIVER ROCK: Posts Income From Operations of $46.43MM in 2010 ------------------------------------------------------------ River Rock Entertainment Authority filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting income from operations of $46.43 million on $124.18 million of net revenues for the year ended Dec. 31, 2010, compared with income from operations of $44.45 million on $123.02 million of net revenues during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $222.15 million in total assets, $215.40 million in total current liabilities and $6.75 million in total net assets. A full-text copy of the Annual Report is available for free at: http://is.gd/YbZ4dF About River Rock Headquartered in Geyserville, California, River Rock Entertainment Authority is a governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized Indian tribe. River Rock Casino is a governmental development project of the Authority. The Casino offers Class III slot and video poker gaming machines, house banked table games, including Blackjack, Three card poker, Mini-baccarat and Pai Gow poker, Poker, featuring Texas Hold' em, comprehensive food and non-alcoholic beverage offerings, and goods for sale on tribal land located in Geyserville, California. As reported by the TCR on March 18, 2011, Moody's Investors Service downgraded River Rock Entertainment Authority's Corporate Family Rating and Probability of Default Rating to Caa1 from B2, and the rating on the $200 million senior notes due 2011 to Caa1 from B2. All ratings are kept under review for further possible downgrade. The downgrade of CFR to Caa1 reflects the significant refinancing risk stemming from upcoming maturity of RREA's $200 million senior notes on Nov. 1, 2011 and lack of evidence that the Authority has made meaningful progress in addressing the maturity since its ratings were initially placed under review for possible downgrade in October 2010. In the Dec. 13, 2010 edition of the Troubled Company Reporter, Standard & Poor's Ratings Services lowered its ratings on Sonoma County, California-based River Rock Entertainment Authority; the issuer credit rating was lowered to 'B-' from 'B+'. At the same time, S&P placed the ratings on CreditWatch with negative implications. RREA was created to operate the River Rock casino for the Dry Creek Rancheria Band of Pomo Indians (the Tribe). "The rating downgrade and CreditWatch listing reflect River Rock's limited progress in addressing near-term refinancing needs associated with its $200 million senior notes due November 2011, as well as other debt held at the Tribe," said Standard & Poor's credit analyst Michael Halchak. "With less than 12 months to the maturity on the senior notes, S&P has become increasingly concerned around River Rock's ability to successfully address these refinancing needs. In addition, S&P believes River Rock faces additional liquidity needs related to the Tribe's memorandum of agreement with Sonoma County, associated with infrastructure spending needs in and around the casino." ROANOKE HEALTH: To File For Chapter 11 Bankruptcy Protection ------------------------------------------------------------ Penny L. Pool at the Randolph Leader reports that, on the advice of Attorney Lee R. Benton of Benton & Centeno LLP in Birmingham, Roanoke Health Care Authority voted to declare Chapter 11 bankruptcy and selected him to handle it. The authority also voted to accept proposals next Wednesday on the sale of Southern Family Health Care and accepted authority chairman Gary Clark's resignation. When chief financial officer Michael Parsons left the building after the meeting, it was most likely for the last time. Mr. Benton recommended the Chapter 11 avenue saying they could pay secured creditors such as Correct Care, the company that provided physicians to the hospital and is owed in the neighborhood of $350,000, according to the Randolph Leader. The Randolph Leader says the board has been trying to find someone to buy, lease or operate the health clinic, which everybody thinks is important. It is not a separate entity so someone could file a claim against it. The authority needs to sell it quickly to keep it operating. Of course the sale would have to approved by bankruptcy court. ROBB CORWIN: Gorilla Cos. Suit Goes Back to Bankr. Court -------------------------------------------------------- District Judge David G. Campbell vacated, in part, the withdrawal of reference of an adversary proceeding commenced by Gorilla Companies, LLC, and the case is referred back to the bankruptcy court for resolution of pending motions for summary judgment. The Plaintiff has filed a status report stating that the automatic stay in the Corwins' chapter 11 bankruptcy has been lifted and the bankruptcy court has set a hearing on the pending summary judgment motions for April 25, 2011. Judge Campbell directed the Plaintiff to file another status report after the motions for summary judgment have been resolved. The Plaintiff's motion for entry of order clarifying status of reference is granted. The case before the District Court is Gorilla Companies, LLC, a Delaware limited liability company, Plaintiff, v. Sharon Van Tassel and Darrell Van Tassel, husband and wife; Robb M. Corwin and Jillian C. Corwin, husband and wife; and 13, LLC, an Arizona limited liability company, Nos. CV-09-1327-PHX-DGC, AP-09-00507- RJH, BK-09-02898-RJH, BK-09-02901-CGC, BK-09-02903-GBN, BK-09- 02905-CGC (D. Ariz.). A copy of the District Court's March 31, 2011 Order is available at http://is.gd/dXHnSjfrom Leagle.com. The Corwins and Gorilla are also locked in another dispute. The Corwins are the sole owners of 13 Holdings, LLC. In June 2007, 13 Holdings and Gorilla entered into an Asset Purchase Agreement under which 13 Holdings sold the assets of an event-management company to Gorilla in exchange for an immediate cash payment, one million shares of Gorilla stock, a promissory note for $1.5 million, and a second note that could pay up to $6 million depending on Gorilla's performance. In early 2008, Gorilla made a large payment to 13 Holdings on the Seller Note. A dispute later arose regarding the amount owed under the Seller Note. Gorilla filed suit against the Corwin Parties in state court, Gorilla Cos. LLC v. Corwin, No. CV2008-032847 (Ariz. Super. Ct. Dec. 23, 2008). The Corwin Parties filed counterclaims. The case was removed to the bankruptcy court after Gorilla filed for Chapter 11 bankruptcy. Gorilla Cos. LLC v. Corwin, No. AP-09- 00266-RJH (Bankr. Ariz. Mar. 10, 2009). The Corwin Parties subsequently filed proofs of claim in the bankruptcy proceedings that mirrored their state-court counterclaims, and Gorilla responded with counterclaims that mirrored its state-court claims. On March 22, 2010, the bankruptcy court issued a judgment in which it adjudicated the proofs of claim filed by the Corwin Parties and the state law counterclaims brought by Gorilla. The bankruptcy court ruled against the Corwin Parties. The bankruptcy court framed the March 22 adjudication as a core proceeding under 28 U.S.C. Sec. 157(b)(2)(B) and (C), and treated the Gorilla claims as "compulsory counterclaims to the Corwin Proof of Claims." The Corwins took an appeal to the District Court. In October 2010, the District Court affirmed the Bankruptcy Court ruling that adjudication was appropriately deemed a core proceeding by the lower court. About Gorilla Companies Based in Tempe, Ariz., Gorilla Companies LLC provides event management services. Gorilla Companies sought Chapter 11 protection (Bankr. D. Ariz. Case No. 09-02898) on Feb. 20, 2009, and is represented by John R. Clemency, Esq., at Greenberg Traurig LLP in Phoenix. At the time of the filing, the Debtor estimated its assets at more than $1 million and its debts at less than $1 million. About Robb Corwin Robb Corwin in Chandler, Arizona, filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 10-21303) on July 8, 2010, Judge Sarah Sharer Curley presiding. Mark W. Roth, Esq. -- mroth@polsinelli.com -- at Polsinelli Shughart P.C., serves as bankruptcy counsel. Mr. Corwin disclosed $1 million to $10 million in total assets and $10 million to $50 million in total debts. SAN JUAN BAUTISTA: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: San Juan Bautista Medical Center Corp. aka Hospital San Juan Bautista P.O. Box 4964 Caguas, PR 00725 Bankruptcy Case No.: 11-02270 Chapter 11 Petition Date: March 18, 2011 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Carmen D. Conde Torres, Esq. C.CONDE & ASSOCIATES 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: (787) 729-2900 Fax: (787) 729-2203 E-mail: notices@condelaw.com Estimated Assets: $0 to 50,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-02270.pdf The petition was signed by Lymari Colon, president of governing board. SAND TECHNOLOGY: Thomas O'Donnell Discloses 15.47% Equity Stake --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Thomas M. O'Donnell and his affiliates disclosed that they beneficially own 4,249,742 of Class A Shares of Sand Technology Inc. representing 15.47% of the shares outstanding. As of Dec. 20, 2010, the date of the Company's last filed report of foreign issuer on Form 6-K, the Company had issued and outstanding 15,889,620 Common Shares. A full-text copy of the filing is available for free at: http://is.gd/1g74XO About SAND Technology Westmount, Quebec-based SAND Technology Inc. (OTC BB: SNDTF) -- http://www.sand.com/-- provides Data Management Software and Best Practices for storing, accessing, and analyzing large amounts of data on-demand while lowering TCO, leveraging existing infrastructure and improving operational performance. SAND/DNA solutions include CRM analytics, and specialized applications for government, healthcare, financial services, telecommunications, retail, transportation, and other business sectors. SAND Technology has offices in the United States, Canada, the United Kingdom and Central Europe. The Company's balance sheet at Jan. 31, 2011 showed C$4.20 million in assets, C$6.25 million in liabilities and C$2.05 million of shareholders' deficiency. In its annual report on Form 20-F for the fiscal year ended July 31, 2010, filed with the U.S. Securities and Exchange Commission, the Company noted it has incurred operating losses in the current and past years. The Company has also generated negative cash flows from operations and has a significant working capital deficiency. "The Company's uncertainty as to its ability to generate sufficient revenue and raise sufficient capital, raise significant doubt about the entity's ability to continue as a going concern," the Company said in the filing. The Company said it is in the process of seeking additional financing for its current operations. Raymond Chabot Grant Thornton LLP in Montreal, Quebec, audited the company's financials but did not issue an adverse going concern opinion in accordance with Canadian reporting standards. SB PARTNERS: Delays Filing of Annual Report ------------------------------------------- SB Partners informed the U.S. Securities and Exchange Commission that it will be late in filing its annual report on Form 10-K for the period ended Dec. 31, 2010. SB Partners has a 30% non-controlling interest in Sentinel Omaha, LLC, an affiliate of the Company's general partner. The investment in Omaha is accounted for at fair value. The controller for Omaha has informed the Company that the audit firm conducting the annual audit for Omaha's calendar year 2010 will complete the audit and issued the audit opinion a day or two prior to the date the Company is require to file its form 10-K. The investment in Omaha constitutes a significant portion of the assets of the Company. As such, the audit firm conducting the annual audit for the Company is required to review both the financial statements of Omaha and the related workpapers prepared by Omaha's auditors. Until the Company's auditors perform their review of the Omaha audit, the Company's auditors cannot issue an audited opinion on the Company's financial statements. About SB Partners Milford, Conn.-based SB Partners is a New York limited partnership engaged in acquiring, operating and holding for investment a varying portfolio of real estate interests. As of June 30, 2010, the partnership owns an industrial flex property in Maple Grove, Minnesota and warehouse distribution centers in Lino Lakes, Minnesota and Naperville, Illinois. The Company's balance sheet at Sept. 30, 2010, showed $37.27 million in total assets, $38.78 million in total liabilities, and a stockholders' deficit of $1.51 million. In addition, the Company has a 30% interest in Sentinel Omaha, LLC. Sentinel Omaha is a real estate investment company which currently owns 24 multifamily properties and 1 industrial property in 17 markets. Sentinel Omaha is an affiliate of the partnership's general partner. As reported in the Troubled Company Reporter on June 15, 2010, Dworken, Hillman, LaMorte and Sterczala, P.C., in Shelton, Connecticut, expressed substantial doubt about SB Partners' ability to continue as a going concern, following its 2009 results. The independent auditors noted that the partnership's unsecured credit facility matured on February 28, 2009, and the partnership has not yet been able to arrange a replacement loan, extension or refinancing. SEITEL INC: Offers to Purchase Outstanding 11.75% Senior Notes -------------------------------------------------------------- On March 30, 2011, Seitel, Inc., offered to purchase any and all of its outstanding 11.75% Senior Notes due 2011. The Company is required by the terms of the indenture for the Notes, entered into as of July 2, 2004, and as amended Jan. 31, 2007, to make this offer because the Company generated excess cash flow (as defined in the Indenture) for the year ended 2010. The offer expires at 5:00 p.m., New York City time, on April 29, 2011. The cash payment required to complete the tender is $1,035.25, which includes accrued and unpaid interest, for each $1,000 of Notes validly tendered and not withdrawn. Payment for any Notes that are accepted for purchase is expected to occur on May 3, 2011. The Company generated excess cash flow for the year ended 2010 in excess of $5.0 million. The terms of the indenture require an offer to purchase Notes with an amount equal to 50 percent of the excess cash flow, at a purchase price equal to 100 percent of the principal amount of the Notes, plus accrued and unpaid interest. The aggregate purchase price (including principal and interest) will not exceed $2,070,500. If Notes are not tendered for the entire amount of the offer, the remaining 50 percent of the excess cash flow will be available for any use not otherwise prohibited by the indenture. This announcement is not an offer to purchase, a solicitation of an offer to purchase, or a solicitation of an offer to sell any Notes. About Seitel Inc. Houston, Tex.-based Seitel, Inc. -- http://www.seitel.com/-- provides onshore seismic data to the oil and gas industry in North America. Seitel's data products and services are critical for the exploration for, and development and management of, oil and gas reserves by oil and gas companies. Seitel has ownership in an extensive library of proprietary onshore and offshore seismic data that it has accumulated since 1982 and that it licenses to a wide range of oil and gas companies. Seitel believes that its library of onshore seismic data is the largest available for licensing in North America. Seitel's seismic data library includes both onshore and offshore 3D and 2D data. Seitel has ownership in approximately 43,000 square miles of 3D and approximately 1.1 million linear miles of 2D seismic data concentrated in the major active North American oil and gas producing regions. The Company reported a net loss of $63.4 million on total revenue of $175.6 million for the year ended Dec. 31, 2010, compared with a net loss of $96.8 million on total revenue of $115.3 million for the year ended Dec. 31, 2009. The Company's balance sheet at Dec. 31, 2010, showed $491.0 million in total assets, $498.0 million in total liabilities, and a stockholders' deficit of $7.0 million * * * Seitel carries Standard & Poor's Ratings Services corporate credit rating 'CCC+'. The outlook is developing. SHALOM TORAH: District Court to Hear Suit v. Insurer ---------------------------------------------------- Philadelphia Indemnity Insurance Company seeks to withdraw the reference of Adversary Proceeding No. 10-02415 from the United States Bankruptcy Court for the District of New Jersey. Shalom Torah Centers/Shalom Torah opposes the Motion and argues that the District Court should abstain from hearing the Coverage Action and that the matter should be remanded the Superior Court of New Jersey, Ocean County - Law Division. District Judge Freda L. Wolfson granted the Defendant's Motion to Withdraw and denied the Plaintiff's Cross-Motion to Abstain. One month prior to Shalom's bankruptcy filing, PIC issued three insurance policies to Shalom with an effective date of Jan. 27, 2010. On Oct. 1, 2010, Shalom filed a complaint against Defendant in the Superior Court of New Jersey, Ocean County. The Coverage Action asserts five counts against the Defendants seeking compensatory and punitive damages under New Jersey law based on Shalom's allegations that PIC wrongfully refused to indemnify Shalom in connection with property damage allegedly sustained by Shalom during a windstorm that occurred in March 2010. On Oct. 22, 2010, PIC filed a Notice of Removal pursuant to which the Coverage Action was removed from state court to the District Court. Thereafter, on Dec. 28, 2010, PIC filed a Motion to Withdraw the Reference. The Plaintiff opposed and incorporated a Motion to Abstain that it filed in Bankruptcy Court. The District Court case is SHALOM TORAH CENTERS/SHALOM TORAH, v. PHILADELPHIA INDEMNITY INSURANCE COMPANIES AND JOHN DOES 1-100, Civil Action No. 10-6766 (D. N.J.). A copy of Judge Wolfson's March 31, 2011 Opinion is available at http://is.gd/rIElprfrom Leagle.com. Shalom Torah Centers, a New Jersey non-profit corporation, filed for Chapter 11 bankruptcy (Bankr. D. N.J. Case No. 10-15444) on Feb. 25, 2010. SHERIDAN REHAB: Case Summary & 23 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Sheridan Rehabilitative & Wellness Centers, Inc. 919 Sheridan Street, NW, Suite B Washington, DC 20011 Bankruptcy Case No.: 11-00205 Chapter 11 Petition Date: March 18, 2011 Court: United States Bankruptcy Court District of Columbia (Washington, D.C.) Judge: Judge S. Martin Teel, Jr. Debtor's Counsel: Edward M. Kimmel, Esq. KIMMEL & ROXBOROUGH, LLC 7629 Carroll Avenue, Suite 500 Takoma Park, MD 20912 Tel: (301) 891-8454 Fax: (301) 270-2137 E-mail: em.kimmel@verizon.net Scheduled Assets: $2,746,501 Scheduled Debts: $2,337,319 A list of the Company's 23 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/dcb11-00205.pdf The petition was signed by Jacquelyn L. Wheeler, president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Health Advocacy Centers, Inc. 11-00129 02/21/2011 SHUMATE ENERGY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Shumate Energy Technologies, Inc. 12060 FM 3083 Conroe, TX 77301-6104 Bankruptcy Case No.: 11-32327 Chapter 11 Petition Date: March 18, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Letitia Z. Paul Debtor's Counsel: Leonard H. Simon, Esq. PENDERGRAFT & SIMON LLP 2777 Allen Parkway, Suite 800 Houston, TX 77019 Tel: (713) 737-8207 Fax: (832) 202-2810 E-mail: lsimon@pendergraftsimon.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-32327.pdf The petition was signed by Larry C. Shumate, president. SIMON WORLDWIDE: Incurs $2.33 Million Net Loss in 2010 ------------------------------------------------------ Simon Worldwide, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $2.33 million on $0 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $2.11 million on $0 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $11.29 million in total current assets, $194,000 in total current liabilities and $11.10 million in total stockholders' equity. BDO USA, LLP, in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditor noted that the Company has suffered significant losses from operations, has a lack of any operating revenue and is subject to potential liquidation in connection with a recapitalization agreement. On June 11, 2008, the Company entered into an Exchange and Recapitalization Agreement with Overseas Toys, L.P., the then holder of all the outstanding shares of preferred stock of the Company, pursuant to which all the outstanding preferred stock would be converted into shares of common stock representing 70% of the shares of common stock outstanding immediately following the conversion. The Recapitalization Agreement was negotiated on the Company's behalf by the Special Committee of disinterested directors which, based in part upon the opinion of the Special Committee's financial advisor, determined that the transaction was fair to the holders of common stock from a financial point of view. At a special meeting held on Sept. 18, 2008, the stockholders of the Company approved amendments to the Company's certificate of incorporation proposed in order to effect a recapitalization of the Company pursuant to the terms of the Recapitalization Agreement. Under the Recapitalization Agreement, the Company issued 37,940,756 shares of common stock with a fair value of $15.2 million in exchange for 34,717 shares of preferred stock (representing all outstanding preferred shares) with a carrying value of $34.7 million and related accrued dividends of approximately $147,000. The Company recorded $19.7 million to retained earnings in September 2008 representing the excess of carrying value of the preferred stock received over the fair market value of the common shares issued as such difference essentially represented a return to the Company. A full-text copy of the Annual Report is available for free at: http://is.gd/3MMVZS About Simon Worldwide Based in Los Angeles, Simon Worldwide, Inc. (OTC: SWWI) no longer has any operating business. Prior to August 2001, the Company operated as a multi-national full-service promotional marketing company, specializing in the design and development of high-impact promotional products and sales promotions. At Dec. 31, 2009, the Company held an investment in Yucaipa AEC Associates, LLC, a limited liability company that is controlled by the Yucaipa Companies, a Los Angeles, California based investment firm. Yucaipa AEC in turn principally held an investment in the common stock of Source Interlink Companies, a direct-to-retail magazine distribution and fulfillment company in North America, and a provider of magazine information and front-end management services for retailers and a publisher of approximately 75 magazine titles. Yucaipa AEC held this investment in Source until April 28, 2009, when Source filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. SINOBIOMED INC: Incurs $577,531 Net Loss in 2010 ------------------------------------------------ Sinobiomed Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $577,531 on $0 of revenue for the year ended Dec. 31, 2010, compared with net income of $3.63 million on $0 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $210,176 in total assets, $686,095 in total liabilities and $475,919 in total stockholders' deficit. The Company currently has no operations and no source of income. The Company intends to seek out opportunities to enter or acquire new business operations. The underlying value of the company is entirely dependent on the ability of the Company to find and implement a new business opportunity and obtain the necessary financing to capitalize on such opportunity. Schumacher & Associates, Inc., in Littleton, Colorado, noted that the Company has experienced losses since commencement of operations, and has negative working capital and stockholders' deficit which raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Annual Report is available for free at: http://is.gd/cMpIpN About Sinobiomed Sinobiomed Inc. formerly CDoor Corp. (OTC BB: SOBM) -- http://www.sinobiomed.com/-- was incorporated in the State of Delaware. The Company is a Chinese developer of genetically engineered recombinant protein drugs and vaccines. Based in Shanghai, Sinobiomed currently has 10 products approved or in development: three on the market, four in clinical trials and three in research and development. The Company's products respond to a wide range of diseases and conditions, including: malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration. SMART ONLINE: Incurs $3.95 Million Net Loss in 2010 --------------------------------------------------- Smart Online, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $3.95 million on $1.03 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $9.54 million on $1.42 million of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.49 million in total assets, $20.80 million in total liabilities, and a $19.31 million total stockholders' deficit. Cherry, Bekaert & Holland, LLP, in Raleigh, North Carolina, noted that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2010. These conditions, according to the independent auditors, raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/3aN6vn About Smart Online Headquartered in Durham, North Carolina, Smart Online, Inc. (OTC BB: SOLN) -- http://www.smartonline.com/-- develops and markets software products and services targeted to small businesses that are delivered via a Software-as-a-Service (SaaS), or SaaS, model. The Company also provides Web site consulting services, primarily in the e-commerce retail industry products and services. SOLOMON DWEK: Dist. Ct. Won't Dismiss Corbett & Ocean Circle Cases ------------------------------------------------------------------ Barry Kantrowitz took an appeal from a Bankruptcy Court order dated August 4, 2010, denying a motion to dismiss the Chapter 11 cases of Corbett Holdings I, LLC, and Ocean Circle Holdings, LLC. Mr. Kantrowitz had moved in the Bankruptcy Court to dismiss the cases pursuant to 11 U.S.C. Sec. 1112(b)(1), asserting that Solomon Dwek, who filed the bankruptcy petitions on behalf of Corbett and Ocean, did not have authority to do so. Charles A. Stanziale, Jr., the Liquidating Trustee in Mr. Dwek's Chapter 11 case, filed a responsive brief on the appeal. In his March 31, 2011 Opinion, District Judge Joel A. Pisano affirmed the Bankruptcy Court's decision. On April 3, 2009, and Nov. 17, 2009, Mr. Dwek caused Corbett and Ocean to commence Chapter 11 bankruptcy cases. Mr. Kantrowitz filed his motion to dismiss these cases on Feb. 17, 2010. The basis for Mr. Kantrowitz's motion was his assertion that when Mr. Dwek became a debtor under the bankruptcy code, he lost his legal ability to participate in the management of the Corbett and Ocean -- and thus, lost the ability to cause them to file a petition in bankruptcy -- by virtue of New Jersey's Limited Liability Act, N.J.S.A. 42:2B-1, et seq. Mr. Kantrowitz argued that the Bankruptcy Court lacked subject matter jurisdiction as to the cases. In an Opinion and Order dated Aug. 4, 2010, the Bankruptcy Court concluded that it was premature to rule on the legal issues presented by Mr. Kantrowitz's motion. The Court noted that before it could rule on the issue, "it would have to make the threshold determination of whether Kantrowitz has an actual interest in the LLCs." The Bankruptcy Court was also faced with an alternative cross-motion by the Trustee to consolidate the LLCs with the Dwek bankruptcy estate, and if in addressing that motion the court "were to conclude that there are grounds to substantively consolidate the Dwek bankruptcy proceeding with the assets of the LLCs . . . then the motion to dismiss the LLCs would be moot." According to the Second Amended Chapter 11 Plan of Liquidation that was confirmed, the question of the substantive consolidation of the Dwek estate and the LLC estates was to be determined in the Kantrowitz adversary proceeding. Consequently, "[g]iven the interrelated nature of issues in the adversary proceeding in the main bankruptcy cases and the fact that significant factual disputes exist with regard to the ownership of the LLCs," the Bankruptcy Court determined that the "most efficient course of action" would be to make the determination of Mr. Kantrowitz's interest in the LLCs as part of the adversary proceeding brought by the Trustee. As such, the Court denied the motion to dismiss "without prejudice to Kantrowitz's right to pursue dismissal should he be successful in the adversary proceeding." The appeal followed. Judge Pisano held that a determination of Mr. Kantrowitz's interests in the LLC is threshold to determining whether Mr. Dwek had authority to cause the LLCs to file for bankruptcy protection. Judge Pisano noted that the Bankruptcy Court had before it a motion to consolidate the LLCs and Dwek estate. If the Bankruptcy Court were to grant such a motion and determine that the LLCs should be substantively consolidated with the Dwek estate, there appears to be no dispute that Mr. Kantrowitz's motion to dismiss would be moot. The District Court also pointed to the Second Amended Chapter 11 Plan of Liquidation, which indicated that a determination on the question of substantive consolidation will be made in the Kantrowitz adversary proceeding. The District Court found no substantial prejudice to Mr. Kantrowitz, who may renew his motion to dismiss before the Bankruptcy Court at the appropriate time. The District Court found no abuse of discretion in the Bankruptcy Court's determination that "the most efficient course of action" would be to have certain threshold issues resolved in the adversary proceeding prior to addressing Mr. Kantrowitz's motion to dismiss. The appellate case is In re SOLOMON DWEK, et al., Civil Action No. 10-5952 (D. N.J.). A copy of Judge Pisano's decision is available at http://is.gd/HNbO0Zfrom Leagle.com. About Solomon Dwek Several creditors filed an involuntary Chapter 7 bankruptcy petition against Solomon Dwek (Bankr. D. N.J. Case No. 07-11757) on Feb. 9, 2007. On Feb. 13, 2007, SEM filed for voluntary Chapter 11. On Feb. 22, 2007, the Dwek bankruptcy case was converted to Chapter 11 and it was administratively consolidated with the SEM bankruptcy. Charles A. Stanziale, Jr., has been appointed trustee in Mr. Dwek's Chapter 11 bankruptcy. SPANISH BROADCASTING: Posts $15.04 Million Net Income in 2010 ------------------------------------------------------------- Spanish Broadcasting System, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting net income of $15.04 million on $136.12 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $13.78 million on $139.39 million of net revenue during the prior year. The Company also reported net income of $3.36 million on $34.88 million of net revenue for the quarter ended Dec. 31, 2010, compared with a net loss of $7.83 million on $35.96 million of net revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $474.82 million in total assets, $430.98 million in total liabilities, $92.35 million in 10 3/4% Series B cumulative exchangeable redeemable preferred stock, and $48.51 million in total stockholders' deficit. Raul Alarcon, Jr., Chairman and CEO, commented, "We experienced volatile advertising conditions in many of our markets during 2010, even as we continued to drive strong audience shares across our multi-media platform. We are encouraged with the revenue growth at our television segment during the fourth quarter and we are seeing some improvement in the advertising climate in select markets year-to-date. We have continued to focus on strategically investing in our content and distribution, while carefully managing our costs. As a result, we were able to drive considerable improvement in our operating income for the full year. In 2011, we remain committed to building on our strong Hispanic media brands, growing our multi-media footprint and improving our operating results." A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/EBzcnE About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting System, Inc. -- http://www.spanishbroadcasting.com/-- owns and operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. In November 2010, Moody's Investors Service upgraded the corporate family and probability of default ratings for Spanish Broadcasting System, Inc., to 'Caa1' from 'Caa3' based on improved free cash flow prospects due to better than anticipated cost cutting and the expiration of an unprofitable interest rate swap agreement. Moody's said Spanish Broadcasting's 'Caa1' corporate family rating incorporates its weak capital structure, operational pressure in the still cyclically weak economic climate, generally narrow growth prospects (though Spanish language is the strongest growth prospect) given the maturity and competitive pressures in the radio industry, and the June 2012 maturity of its term loan magnify this challenge. In July 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Miami, Fla.-based Spanish Broadcasting System Inc. to 'B-' from 'CCC+', based on continued improvement in the company's liquidity position. The rating outlook is stable. "The rating action reflects S&P's expectation that, despite very high leverage, SBS will have adequate liquidity over the intermediate term to meet debt maturities, potential swap settlements, and operating needs until its term loan matures on June 11, 2012," said Standard & Poor's credit analyst Michael Altberg. STERLING MINING: Hon. Pappas to Handle Minco Silver Dispute ----------------------------------------------------------- Chief Judge Terry L. Myers of the U.S. Bankruptcy Court for the District of Idaho has referred to the Honorable Jim D. Pappas, bankruptcy judge for the District of Idaho, the unsecured claim objection matter between Debtor Sterling Mining Company and Minco Silver Company for the purpose of conducting a settlement conference. Sterling Mining had asked Judge Myers to refer the claim objection dispute with Minco Silver Company to a mediator for alternative dispute resolution. The dispute involves the claim of Minco Silver for $2,750,000 for a termination fee based on a letter agreement entered into by the parties in July 2008. Minco Silver alleged that contractual damages of $2,750,000 are due from Sterling Mining based on material misrepresentations made by the Debtor. More specifically, Minco Silver alleged that the Debtor misrepresented: * The resources or reserves of Sterling Mining; and * That the mine was a producing mine. The allegations of misrepresentation are fact intensive and, at present, Sterling Mining and Minco Silver are engaged in extensive discovery consisting of depositions and written discovery, Bruce A. Anderson, Esq., at Elsaesser Jarzabek Anderson Elliott & MacDonald, Chtd., in Coeur d'Alene, Idaho, informed Judge Myers in the March 11, 2011 motion. The Debtor believes that the nature of the claims is appropriate for mediation and that "middle ground" could be found in mediation. Whereas if the matter proceeds to trial, the results will be an "all or nothing" decision for either party, Mr. Anderson related. The Debtor also believes that mediation will save valuable resources in this bankruptcy case. Mr. Anderson noted that many of the deponents from Minco Silver reside in China and it has been "very difficult" to arrange for depositions in a timely manner. The Debtor is also unable to determine final payouts to creditors or equity security holders for purposes of a plan of reorganization until the Minco Silver matter is resolved, he told Judge Myers. The Debtor had requested for a U.S. bankruptcy court judge from Idaho or an adjacent district to serve as mediator. Judge Pappas is invited to issue orders and instructions to the parties as he deems appropriate in preparing for the settlement conference. About Sterling Mining Based in Coeur d'Alene, Idaho, Sterling Mining Company (OTCBB:SRLM and FSE:SMX) -- http://www.SterlingMining.com/-- is a mineral resource development and exploration company. Sterling is engaged in the business of acquiring, exploring, developing and mining mineral properties primarily those containing silver and associated base and precious metals. Sterling operates the Sunshine Silver Mine in Idaho and has exploration projects in Idaho, U.S.A. Sterling was incorporated under the laws of the State of Idaho on February 3, 1903. Sterling is currently a debtor-in-possession in Chapter 11 Bankruptcy in the District of Idaho, U.S.A. Sterling Mining filed for bankruptcy protection on March 3, 2009 (Bankr. D. Idaho Case No. 09-20178). Bruce A. Anderson, Esq., at Elsaesser Jarzabek Anderson Marks Elliott & McHugh, Chartered represents the Debtor as counsel. As of Sept. 30, 2008, Sterling Mining had $31.9 million in total assets, and $13.2 million in total current liabilities and $1.6 million in total long-term liabilities. SUNRISE REAL Estate: Delays Filing of Form 10-K ----------------------------------------------- Sunrise Real Estate Group, Inc., notified the U.S. Securities and Exchange Commission that it will be delayed in the filing of its Form 10-K due to a delay in the preparation of its financial statements. About Sunrise Real Headquartered in Shanghai, the People's Republic of China, Sunrise Real Estate Group, Inc. was initially incorporated in Texas on Oct. 10, 1996, under the name of Parallax Entertainment, Inc. On Dec. 12, 2003, Parallax changed its name to Sunrise Real Estate Development Group, Inc. On April 25, 2006, Sunrise Estate Development Group, Inc. filed Articles of Amendment with the Texas Secretary of State, changing the name of Sunrise Real Estate Development Group, Inc. to Sunrise Real Estate Group, Inc., effective from May 23, 2006. The Company and its subsidiaries are engaged in the property brokerage services, real estate marketing services, property leasing services and property management services in China. The Company's balance sheet at Sept. 30, 2010, showed $15.20 million in total assets, $17.15 million in total liabilities, $1.40 million in non-controlling interests of consolidated subsidiaries, and a stockholders' deficit of $3.36 million. As reported in the Troubled Company Reporter on April 21, 2010, Kenne Ruan, CPA, P.C., in Woodbridge, Conn., 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 significant accumulated losses from operations and has a net capital deficiency. TELKONET INC: Incurs $1.77 Million Net Loss in 2010 --------------------------------------------------- Telkonet, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss attributable to common stockholders of $1.77 million on $11.26 million of total revenue for the year ended Dec. 31, 2010, compared with net income attributable to common stockholders of $1.06 million on $10.52 million of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $15.55 million in total assets; $7.43 million in total liabilities; $890,475 in redeemable preferred stock, Series A; $653,371 in redeemable preferred stock, Series B; and $6.58 million in total stockholders' equity. RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. RBSM noted that the Company has incurred significant operating losses in current year and also in the past. "Telkonet delivered solid results for 2010 through aggressively controlling costs and driving working capital improvements while continuing to invest for future growth," Telkonet President and CEO Jason Tienor said. "At the same time we're actively growing our pipeline, increasing traction in target markets and focusing on our platform development. We continue to position Telkonet for profitability in 2011." A full-text copy of the Annual Report is available for free at: http://is.gd/ZrDyRz About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc. is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. TELTRONICS INC: Delays Filing of 2010 Annual Report --------------------------------------------------- Teltronics, Inc., notified the U.S. Securities and Exchange Commission that it is unable to file Form 10-K for the year ended Dec. 31, 2010 within the prescribed time period because not all of the documents and information necessary have been assembled and completed. The Company anticipates filing its Annual Report on Form 10-K on or before the fifteenth calendar day following the prescribed due date. About Teltronics Inc. Palmetto, Fla.-based Teltronics, Inc. (OTC BB: TELT) -- http://ww.teltronics.com/-- designs, installs, develops, manufactures and markets electronic hardware and application software products, and engages in electronic manufacturing services primarily in the telecommunication industry. The Company's balance sheet at Sept. 30, 2010, showed $10.25 million in total assets, $14.70 million in total current liabilities, $4.43 million in total long-term liabilities, and a stockholders' deficit of $8.88 million. THERMOENERGY CORP: IRS Accepts Offer in Compromise of Tax Debts --------------------------------------------------------------- ThermoEnergy Corporation was notified by the U.S. Internal Revenue Service that it had accepted the Company's Offer in Compromise with respect to the Company's tax liabilities relating to (i) employee tax withholding for all periods commencing with the quarter ended Sept. 30, 2005 and continuing through Sept. 30, 2009 and (ii) federal unemployment taxes (FUTA) for the years 2005 through 2008. Pursuant to the Company's Offer in Compromise, the Company has agreed to satisfy its delinquent tax liabilities by paying a total of $2,134,636 (representing the aggregate amount of tax due, without interest or penalties). During the pendency of the IRS review of the Company's Offer in Compromise the Company has made interim payments totaling $1,335,000; a balance of $799,636 remains to be paid in monthly installments of $89,000 each through December 2011. In connection with the Company's Offer in Compromise, the Company has agreed that any net operating losses sustained for the years ending Dec. 31, 2010 through Dec. 31, 2012 will not be claimed as deductions under the provisions of Section 172 of the Internal Revenue Code except to the extent that such net operating losses exceed the amount of interest and penalties abated. The IRS acceptance of the Company's Offer in Compromise is conditioned, among other things, on the Company's filing and paying all required taxes for five tax years commencing on the date of the IRS acceptance. 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. TOWNSENDS INC: Wants Until June 17 to File Plan ----------------------------------------------- Townsends Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to further extend their exclusive periods to file a Chapter 11 plan until June 17, 2011, and solicit acceptances of that plan until August 16, 2011. A hearing is set for April 18, 2011, at 2:00 p.m. (ET) to consider the Debtors' extension request. Objections, if any, are due April 11, 2011, at 4:00 p.m. (ET). The Debtors tell the Court that they are in the process of developing a strategy for the future of these cases and believe that the conservation of estate resources in the best interests of all parties in interest. Consequently, the Debtors believe seeking an extension of the Exclusive Periods will allow both the general bar date and the administrative expense bar date to pass before the termination of the exclusive periods, which in turn will allow the Debtors to review the potential claims against them as soon as possible before determining the strategy for the future of these cases. Absent an extension, the exclusive periods to file a plan and solicit votes will terminate on April 18, 2011 and June 17, 2011, respectively. About Townsends Inc. Founded in 1891, Townsends Inc. is a third-generation, family- owned poultry company. Headquartered in Georgetown, Delaware, Townsends operates production and processing facilities in Arkansas and North Carolina. Townsends Inc. -- fka Townsend Speciality Foods -- and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed $131 million in total assets and $127 million in total debts. Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP serves as special counsel. Huron Consulting Group's Dalton T. Edgecomb serves as the Debtors' chief restructuring officer. SSG Capital Advisors, LLC, serves as investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims, noticing and balloting agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has tapped Lowenstein Sandler PC as its counsel and J.H. Cohn LLP as its financial advisor. TOWNSENDS INC: Wants to Hire PwC as Special Tax Advisor ------------------------------------------------------- Townsends Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for authority to employ PricewaterhouseCoopers LLP as special tax advisor to provide special tax advisory services to the Debtors for the period between Jan. 1, 2010 and Feb. 25, 2011. In addition, the firm will refund claims with the state of Arkansas for overpaid sales and use tax during the period Jan. 1, 2007, until Dec. 31, 2009. Specifically, the special tax advisory services PwC will perform on behalf of the Debtors will be conducted in four phases: * In Phase 1, PwC will review past/current accounts payable and sales/use tax reporting systems within the Debtors' domestic operations to determine an efficient method to quantify, document, and obtain refunds. At the end of Phase I, PwC will determine and, to the extent possible, quantify the potential refund/credit opportunities in order to facilitate a go/no-go decision regarding the reverse sales and use tax audit. * In Phase 2, PwC will expand its review using the plan agreed upon in Phase 1 to include significant accounts payable and tax reporting systems open to refund. Phase 2 may be facilitated through a review of electronic data or existing historical summaries and special reports. Cost/benefit analyses will be performed during this phase so that consideration is given to those identified transactions where the greatest opportunity for refund/credit exists and to those procedures that are the least intrusive to Client's personnel. * In Phase 3, refund claims will be categorized and prepared for review, approval and filing by the Debtors. Once the refund claims are filed by the Debtors, PwC will assist the Debtors in working with the respective taxing authorities and vendors to the extent that verification of any item on the refund claim is requested. PwC's assistance will be to help gather and explain information pertaining to the refund claims. The Debtors will retain all decision making authority and responsibility, as well as responsibility for processing, requesting, and collecting vendor refunds. If other matters arise during such verification that necessitate additional efforts outside the scope of this project, fees for those services will be discussed in advance and will be billed separately. * In Phase 4, PwC will prepare a memorandum that outlines procedures utilized, details the firm's findings, summarizes the refund/credit issues identified during firm's review, and sets forth corrective measures related to any potential system enhancements noted during the project. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Townsends Inc. Founded in 1891, Townsends Inc. is a third-generation, family- owned poultry company. Headquartered in Georgetown, Delaware, Townsends operates production and processing facilities in Arkansas and North Carolina. Townsends Inc. -- fka Townsend Speciality Foods -- and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed $131 million in total assets and $127 million in total debts. Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP serves as special counsel. Huron Consulting Group's Dalton T. Edgecomb serves as the Debtors' chief restructuring officer. SSG Capital Advisors, LLC, serves as investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims, noticing and balloting agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has tapped Lowenstein Sandler PC as its counsel and J.H. Cohn LLP as its financial advisor. TRENTON LAND: Asks for Aug. 31 Deadline to File Chapter 11 Plan --------------------------------------------------------------- Trenton Land Holdings, LLC has asked the U.S. Bankruptcy Court for the Eastern District of Michigan to extend its exclusive periods to file and solicit acceptances for the proposed Chapter 11 plan until August 31, 2011, and October 31, 2011, respectively. The proposed extension would give Trenton Land enough time to negotiate a consensual plan with the Wayne County Treasurer and its other creditors, said the company's lawyer, Karin Avery, Esq., at Silverman & Morris PLLC, in West Bloomfield, Michigan. The Treasurer has a first priority lien on approximately 195 acres of real estate in Trenton, Michigan, which is owned by Trenton Land. The company plans to market the real property to interested buyers given its multiple potential uses. Ms. Avery said the proposed extension, if approved by the Bankruptcy Court, would also enable the company to "determine and implement the best means to liquidate the real property." The Hon. Thomas Tucker will hold a hearing on April 6, 2011, to consider approval of the proposed extension. Trenton, Michigan-based Trenton Land Holdings, LLC, filed for Chapter 11 bankruptcy protection on June 29, 2010 (Bankr. E.D. Mich. Case No. 10-60990). Karin F. Avery, Esq., at Silverman & Morris, P.L.L.C., assists the Debtor in its restructuring effort. The Company disclosed $16,726,075 in assets and $65,925,596 in liabilities. TRIBUNE CO: Bank Debt Trades at 30% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 69.61 cents-on-the- dollar during the week ended Friday, April 1, 2011, an increase of 0.53 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2014. Moody's has withdrawn its rating on the bank debt. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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) UNITED GILSONITE: Court Extends Filing of Schedules by 30 Days -------------------------------------------------------------- The Hon. Robert N. Opel, II, of the U.S. Bankruptcy Court for the Middle District of Pennsylvania has extended, at the behest of United Gilsonite Laboratories, A Pennsylvania Corporation, the deadline for the filing of schedules of assets and liabilities and statements of financial affairs for an additional 30 days. The Debtor's operate facilities in four states, deal with a broad range of suppliers and customers and are also defending asbestos claims asserted by a large number of defendants. Given the resultant size and complexity of its business, the fact that certain prepetition invoices have not yet been received or entered into the Debtor's financial systems, and the breadth of asbestos litigation confronting the Debtor, the Debtor has not had the opportunity to gather all of the information necessary to prepare and file its Schedules and Statements. The Debtor has already commenced the extensive process of gathering the information necessary to prepare and finalize their Schedules and Statements, but believes that the 14-day automatic extension of time to file schedules won't be sufficient to permit completion and submission of the accurate Schedules and Statements. Scranton, Pennsylvania-based United Gilsonite Laboratories, a Pennsylvania Corporation, is a small family-owned corporation engaged in the manufacturing of wood and masonry finishing products and paint sundries. It filed for Chapter 11 bankruptcy protection on March 23, 2011 (Bankr. M.D. Pa. Case No. 11-02032). Mark B. Conlan, Esq., at Gibbons P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. UNITED GILSONITE: Section 341(a) Meeting Scheduled for May 11 ------------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of United Gilsonite Laboratories' creditors on May 11, 2011, at 1:00 p.m. The meeting will be held at Federal Building, Trustee Hearing Room, Room 1160, 11th Floor, 228 Walnut Street, Harrisburg, Pennsylvania. 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. Scranton, Pennsylvania-based United Gilsonite Laboratories, a Pennsylvania Corporation, is a small family-owned corporation engaged in the manufacturing of wood and masonry finishing products and paint sundries. It filed for Chapter 11 bankruptcy protection on March 23, 2011 (Bankr. M.D. Pa. Case No. 11-02032). Mark B. Conlan, Esq., at Gibbons P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. UTILITY LINE: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Utility Line Security, LLC 1501 Ardmore Boulevard Pittsburgh, PA 15221 Bankruptcy Case No.: 11-21630 Chapter 11 Petition Date: March 18, 2011 Court: United States Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Kirk B. Burkley, Esq. BERNSTEIN LAW FIRM PC 2200 Gulf Tower, 707 Grant Street Pittsburgh, PA 15219 Tel: (412) 456-8119 Fax: (412) 456-8135 E-mail: kburkley@bernsteinlaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/pawb11-21630.pdf The petition was signed by Christopher Kerr, president. VAN CHASE: Court Sets April 21 as Claims Bar Date ------------------------------------------------- The U.S. Bankruptcy Court for the District of Colorado set an April 21, 2011 deadline for creditors to file their proofs of claim against Van Chase LLC. Aspen, Colorado-based Van Chase, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 10-31555) on Aug. 24, 2010. John D. LaSalle, Esq., who has an office in Aspen, Colorado, assists the Debtor in its restructuring effort. According to its schedules, the Debtor disclosed $26,528,200 in total assets and $15,150,964 in total liabilities as of the Petition Date. VYTERIS INC: Delays Filing of 2010 Annual Report ------------------------------------------------ Vyteris, Inc., notified the U.S. Securities and Exchange Commission that it is in the process of working through final review of subsequent events disclosure with its auditors and Board of Directors and intends to file its Form 10-K for the year ended Dec. 31, 2010 no later than April 15, 2011, which is the extended filing deadline pursuant to the extension granted under Form 12b-25. About Vyteris, Inc. Based in Fair Lawn, New Jersey, Vyteris, Inc. (formerly Vyteris Holdings (Nevada), Inc., has developed and produced the first FDA- approved electronically controlled transdermal drug delivery system that transports drugs through the skin comfortably, without needles. This platform technology can be used to administer a wide variety of therapeutics either directly into the skin or into the bloodstream. The Company holds approximately 50 U.S. and 70 foreign patents relating to the delivery of drugs across the skin using an electronically controlled "smart patch" device with electric current. According to the Company's 2009 annual report on Form 10-K, Amper, Politziner & Mattia, LLP, in Edison, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring losses and is dependent upon obtaining sufficient additional financing to fund operations and has not been able to meet all of its obligations as they become due. The Company's balance sheet at Sept. 30, 2010, showed $3.62 million in total assets, $19.12 million in total liabilities, and a stockholders' deficit of $15.49 million. WASHINGTON MUTUAL: Court Approves Disclosure Statement ------------------------------------------------------ BankruptcyData.com reports that the U.S. Bankruptcy Court approved Washington Mutual's supplemental disclosure statement for its sixth amended plan of reorganization. The approval came after the Court denied confirmation on Jan. 7, 2011, but at the time suggested changes to the plan that would allow it to be confirmed. The modified plan calls for the distribution of over $7 billion in allowed claims and a hearing on the matter is scheduled for June 6, 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. On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A., upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. Additionally, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. Washington Mutual has filed with the U.S. Bankruptcy Court for the District of Delaware a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement. The Company believes that the Modified Plan has addressed the Bankruptcy Court's concerns and looks forward to returning to the Bankruptcy Court to seek confirmation of the Modified Plan. The hearing for approval of the Disclosure Statement is set for March 21. WEST END: Fights Bid to Appoint Chapter 11 Trustee -------------------------------------------------- Bankruptcy Law360 reports that former SNR Denton partner Raymond J. Heslin, an attorney for West End Financial Advisors LLC, told a New York bankruptcy judge Wednesday that the company's chief manager saved the company after a securities fraud scandal and shouldn't be replaced by a Chapter 11 trustee. As reported in the Troubled Company Reporter on March 25, 2011, Dow Jones' DBR Small Cap said that the U.S. Securities and Exchange Commission, which has accused West End's former leaders of fraud, is joining U.S. trustee Tracy Hope Davis in seeking independent management for the investment firm. In court papers on March 22, the SEC and the U.S. trustee cited concerns about the leadership of Raymond Heslin, West End's current managing member and general partner, as grounds for the appointment of a Chapter 11 trustee. Mr. Heslin isn't among the four ex-West End officials accused of fraud in the SEC's civil complaint . "After almost two years in charge, Heslin has utterly failed to [make] progress [in] important areas," the SEC said, according to DBR. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the bankruptcy judge scheduled a hearing on March 30 to determine if there should be a trustee. About West End Financial West End Financial Advisors LLC, Sentinel Investment Management Corp. and a number of affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-11152) in Manhattan on March 15, 2011. New York-based West End estimated its assets and debts at $1 million to $10 million. Arnold Mitchell Greene, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtors' bankruptcy counsel. William Landberg created WEFA in 2000 as an investment and financial management company. Subsequently he purchased Sentinel Investment Management Corp., a boutique investment advisory company. Sentinel and WEFA targeted individual private clients for investments in fixed income funds and alternative investment products. Mr. Landberg's ultimately resigned from all West End related entities effective June 2, 2009, following a probe on misappropriation of funds. Secured creditors with the largest claims are DZ Bank ($118.1 million), West LB ($41 million), Iberia Bank ($11.3 million), and Suffolk County National Bank ($8.3 million). WII COMPONENTS: Incurs $3.37 Million Net Loss in 2010 ----------------------------------------------------- WII Components, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $3.37 million on $145.38 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $15.18 million on $130.45 million of net sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $197.48 million in total assets, $131.17 million in total liabilities and $66.31 million in total stockholders' equity. A full-text copy of the Annual Report is available for free at: http://is.gd/yyf9fg About WII Components WII Components Inc. manufactures hardwood cabinet doors and related components in the United States, selling primarily to kitchen and bath cabinet original equipment manufacturers. As reported in the TCR on Oct. 27, 2010, Standard & Poor's Ratings Services assigned its preliminary 'B-' corporate credit rating to St. Cloud, Minn.-based WII Components Inc. The rating outlook is stable. "The 'B-' preliminary corporate credit rating on WII reflects its highly leveraged financial risk profile and vulnerable business risk profile," said Standard & Poor's credit analyst Pamela Rice. In November 2010, S&P withdrew all of its preliminary ratings, including its preliminary 'B-' corporate credit rating, on WII Components because the company's proposed $115 million senior secured notes offering was not completed. WILLIAM LYON: Delays Form 10-K Filing for Impairment Analysis ------------------------------------------------------------- As announced in the current report on Form 8-K of William Lyon Homes filed on March 21, 2011, in connection with its annual audit for the year ended Dec. 31, 2010, the Company has been conducting and finalizing its non-cash impairment analysis under the provisions of Financial Accounting Standards Board Accounting Standard Codification Topic 360 Property, Plant and Equipment. As a result of the time required to complete that impairment analysis, the Company requires additional time to complete the financial statements to be included in the Annual Report on Form 10-K for the year ended Dec. 31, 2010, to reflect this impairment analysis. About William Lyon Homes Based in Newport Beach, California, William Lyon Homes and subsidiaries -- http://www.lyonhomes.com/-- are primarily engaged in designing, constructing and selling single family detached and attached homes in California, Arizona and Nevada. The Company's balance sheet at Sept. 30, 2010, showed $779.64 million in total assets, $639.57 million in total liabilities, and a stockholders' equity of $140.07 million. * * * William Lyon carries 'CCC' issuer credit ratings from Standard & Poor's, and 'Caa2' long term corporate family and probability of default ratings from Moody's. "S&P raised its rating on William Lyon Homes because S&P believes that near-term liquidity pressure has eased somewhat following the partial funding of a secured term loan and reduced maturing credit facility debt," said credit analyst James Fielding in November 2009 when S&P raised the rating on William Lyon to 'CCC' from 'CCC-'. He added, "However, this privately held homebuilder remains very highly leveraged and may face challenges repaying or refinancing intermediate-term debt maturities if its business prospects don't improve in the interim." Standard & Poor's Ratings Services raised its rating on William Lyon Homes' 10.75% senior unsecured notes due 2013 to 'CC' from 'D' after the company repurchased $10.5 million of outstanding principal for $9.0 million. S&P lowered its rating on the notes to 'D' because S&P considered the discounted repurchase to be tantamount to default under its criteria for exchange offers and similar restructurings. In accordance with its criteria, S&P is now raising its rating on these notes because the company completed its repurchase, and S&P is not aware of additional discounted repurchases at this time. WOLVERINE TUBE: Taps Deloitte Financial as Financial Advisor ------------------------------------------------------------ Wolverine Tube Inc. and its debtor-affiliates ask the Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware for permission to employ Deloitte Financial Advisory Services LLP as financial advisor to perform financial reporting services. A hearing is set for April 15, 2011, at 9:30 a.m., to consider approval of the Debtors' request. Objections, if any, are due April 8, 2011, at 4:00 p.m. The firm's professionals and their hourly rates: Partner, Principal, Director $500 Senior Manager $420 Manager $360 Senior Associate $280 Associate $220 The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Wolverine Tube Huntsville, Alabama-based Wolverine Tube, Inc., is a global manufacturer and distributor of copper and copper alloy tube, fabricated products, and metal joining products. The Company currently operates seven facilities in the United States, Mexico, China, and Portugal. It also has distribution operations in the Netherlands and the United States. Wolverine Tube sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-13522) on Nov. 1, 2010. Mark E. Felger, Esq., and Simon E. Fraser, Esq., at Cozen O'Connor represent the Debtor. Scott K. Rutsky, Esq., and Adam T. Berkowitz, Esq., at Proskauer Rose LLP, serve as the Debtor's special corporate and tax counsel. Deloitte Financial Advisory Services LLP is the Debtor's financial advisor. Donlin Recano & Company, Inc., is the Debtor's claim agent. The Debtor disclosed $115 million in total assets and $237 million in total debts at the time of the filing. Affiliates Tube Forming, L.P. (Bankr. D. Del. Case No. 10-13523), Wolverine Joining Technologies, LLC (Bankr. D. Del. Case No. 10-13524), TF Investor Inc. (Bankr. D. Del. Case No. 10-13525), and WT Holding Company, Inc. (Bankr. D. Del. Case No. 10-13526) filed separate Chapter 11 petitions. No official committee of unsecured creditors has been appointed in the case. The Debtors filed a prearranged chapter 11 plan proposing to pay unsecured creditors in full and turning ownership of the reorganized company over to their noteholders. ZANETT INC: Delays Filing of 2010 Annual Report ----------------------------------------------- Zanett, Inc., notified the U.S. Securities and Exchange Commission that it is unable to file its Annual Report on Form 10-K for the year ended Dec. 31, 2010 within the prescribed time period on or before March 31, 2011 without unreasonable effort or expense. The delay is attributable to the Company's recent determination that it needs to re-evaluate the accounting treatment of the beneficial conversion feature recorded on Sept. 17, 2010 in connection with the Company's 7.95% convertible promissory note. The Company requires the additional time to complete the preparation of its consolidated financial statements that will be included in the Form 10-K and for the Company's independent accountants to complete their audit of the same. The Company undertakes the responsibility to file its Form 10-K no later than fifteen days after its original due date, April 15, 2011. About Zanett Inc. Based in New York, Zanett Inc. is an information technology company that provides customized IT solutions to Fortune 500 corporations and mid-market companies. Until the disposition of Paragon Dynamics, Inc., the Company also provided those solutions to classified government agencies. At Sept. 30, 2010, the Company had total assets of $29,103,622, total liabilities of $21,165,812, and stockholders' equity of $7,937,810. Zanett Inc. in November 2010 said it remains in discussion to replace its revolving credit facility with Bank of America. Zanett was not in compliance with certain loan covenants as of Sept. 30, 2010. The credit facility matured on June 21, 2010. The Company's line of credit was subject to a forbearance agreement with BofA. ZANETT INC: Form 10-K to be Delayed; Expects Going Concern Doubt ---------------------------------------------------------------- In a regular filing Thursday, Zanett Inc. discloses that the Company's annual report on Form 10-K for the fiscal year ended Dec. 31, 2010, could not be filed within the prescribed time period because it needs to re-evaluate the accounting treatment of the beneficial conversion feature recorded on Sept. 17, 2010, in connection with the Company's 7.95% convertible promissory note. The Company says it will file its Form 10-K no later than April 15, 2011. The Company does not anticipate that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the 2010 annual report. The Company, however, says that its Form 10-K for 2010 will include an explanatory paragraph from the Company's independent registered public accounting firm expressing substantial doubt about its ability to continue as a going concern. About Zanett Inc. New York City-based Zanett, Inc. (NasdaqCM : ZANE) -- http://www.zanett.com/or http://healthcare.zanett.com/-- is a business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) consulting firm serving Fortune 500 corporations and mid-market organizations in Healthcare, Life Sciences, Manufacturing & Distribution, Retail, Gaming & Hospitality, and State & Local Government. Zanett employs over 213 professionals in North America and Asia with offices in Atlanta, Boston, Cincinnati, Indianapolis, Jacksonville, New York City, North Palm Beach, and Manila. At Sept. 30, 2010, the Company had total assets of $29,103,622, total liabilities of $21,165,812, and stockholders' equity of $7,937,810. Zanett Inc. in November 2010 said it remains in discussion to replace its revolving credit facility with Bank of America. Zanett was not in compliance with certain loan covenants as of Sept. 30, 2010. The credit facility matured on June 21, 2010. The Company's line of credit was subject to a forbearance agreement with BofA. * BOND PRICING -- For Week From March 21 to 25, 2011 ---------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- ---------- AMBAC INC 5.950% 12/5/2035 11.500 AMBAC INC 6.150% 2/7/2087 0.250 AMBAC INC 7.500% 5/1/2023 15.200 AMBAC INC 9.500% 2/15/2021 11.000 ADVANTA CAP TR 8.990% 12/17/2026 11.950 AHERN RENTALS 9.250% 8/15/2013 43.660 GMAC LLC 6.000% 4/1/2011 99.990 AMBASSADORS INTL 3.750% 4/15/2027 38.250 APL-CALL04/11 8.125% 12/15/2015 104.125 BANK NEW ENGLAND 8.750% 4/1/1999 11.250 BANK NEW ENGLAND 9.875% 9/15/1999 13.500 BANKUNITED FINL 6.370% 5/17/2012 5.500 BUFFALO THUNDER 9.375% 12/15/2014 36.002 CAPMARK FINL GRP 5.875% 5/10/2012 45.500 CS FINANCING CO 10.000% 3/15/2012 3.000 DNR-CALL04/11 7.500% 4/1/2013 100.500 DUNE ENERGY INC 10.500% 6/1/2012 74.500 EDDIE BAUER HLDG 5.250% 4/1/2014 4.000 FRANKLIN BANK 4.000% 5/1/2027 6.700 FREEPORT-MC C&G 8.250% 4/1/2015 104.140 FRIEDE GOLDMAN 4.500% 9/15/2004 0.950 FAIRPOINT COMMUN 13.125% 4/1/2018 10.375 GREAT ATLA & PAC 5.125% 6/15/2011 37.875 GREAT ATLA & PAC 6.750% 12/15/2012 38.375 GREAT ATLANTIC 9.125% 12/15/2011 37.100 GENERAL MOTORS 7.125% 7/15/2013 28.250 GENERAL MOTORS 7.700% 4/15/2016 27.230 GENERAL MOTORS 9.450% 11/1/2011 24.800 KEYSTONE AUTO OP 9.750% 11/1/2013 25.125 LEHMAN BROS HLDG 4.500% 8/3/2011 23.750 LEHMAN BROS HLDG 4.700% 3/6/2013 22.500 LEHMAN BROS HLDG 4.800% 2/27/2013 22.500 LEHMAN BROS HLDG 4.800% 3/13/2014 25.000 LEHMAN BROS HLDG 5.000% 1/22/2013 22.750 LEHMAN BROS HLDG 5.000% 2/11/2013 24.375 LEHMAN BROS HLDG 5.000% 3/27/2013 25.750 LEHMAN BROS HLDG 5.000% 8/5/2015 24.380 LEHMAN BROS HLDG 5.100% 1/28/2013 24.000 LEHMAN BROS HLDG 5.150% 2/4/2015 22.900 LEHMAN BROS HLDG 5.250% 2/6/2012 25.000 LEHMAN BROS HLDG 5.250% 2/11/2015 24.000 LEHMAN BROS HLDG 5.500% 4/4/2016 25.050 LEHMAN BROS HLDG 5.625% 1/24/2013 25.125 LEHMAN BROS HLDG 5.750% 7/18/2011 25.750 LEHMAN BROS HLDG 5.750% 5/17/2013 25.000 LEHMAN BROS HLDG 6.000% 7/19/2012 25.350 LEHMAN BROS HLDG 6.000% 6/26/2015 24.000 LEHMAN BROS HLDG 6.000% 12/18/2015 23.050 LEHMAN BROS HLDG 6.625% 1/18/2012 25.125 LEHMAN BROS HLDG 8.050% 1/15/2019 24.375 LEHMAN BROS HLDG 8.500% 8/1/2015 25.000 LEHMAN BROS HLDG 8.800% 3/1/2015 25.875 LEHMAN BROS HLDG 8.920% 2/16/2017 25.750 LEHMAN BROS HLDG 9.500% 12/28/2022 23.500 LEHMAN BROS HLDG 9.500% 1/30/2023 24.500 LEHMAN BROS HLDG 9.500% 2/27/2023 24.500 LEHMAN BROS HLDG 10.000% 3/13/2023 22.000 LEHMAN BROS HLDG 10.375% 5/24/2024 24.375 LEHMAN BROS HLDG 11.000% 6/22/2022 23.250 LEHMAN BROS HLDG 11.000% 8/29/2022 24.375 LEHMAN BROS HLDG 11.000% 3/17/2028 23.750 LEHMAN BROS HLDG 12.120% 9/11/2009 5.390 LEHMAN BROS HLDG 18.000% 7/14/2023 22.500 LEHMAN BROS HLDG 22.650% 9/11/2009 24.000 LOCAL INSIGHT 11.000% 12/1/2017 4.000 LTX-CREDENCE 3.500% 5/15/2011 90.000 MACYS RETAIL HLD 6.625% 4/1/2011 100.100 MAJESTIC STAR 9.750% 1/15/2011 15.000 MAGNA ENTERTAINM 7.250% 12/15/2009 3.000 MFCCN-CALL04/11 5.800% 4/15/2031 97.144 NEWPAGE CORP 10.000% 5/1/2012 66.750 NEWPAGE CORP 12.000% 5/1/2013 38.000 RESTAURANT CO 10.000% 10/1/2013 53.500 RESTAURANT CO 10.000% 10/1/2013 8.500 PROTECTIVE LIFE 4.000% 4/1/2011 100.027 RIVER ROCK ENT 9.750% 11/1/2011 87.960 RASER TECH INC 8.000% 4/1/2013 35.000 SBARRO INC 10.375% 2/1/2015 26.600 SHENGDATECH INC 6.000% 6/1/2018 94.495 ISTAR FINANCIAL 5.125% 4/1/2011 100.000 SPHERIS INC 11.000% 12/15/2012 1.500 THORNBURG MTG 8.000% 5/15/2013 2.000 TRANS-LUX CORP 8.250% 3/1/2012 15.700 TRANS-LUX CORP 9.500% 12/1/2012 15.000 TOUSA INC 9.000% 7/1/2010 15.750 TIMES MIRROR CO 7.250% 3/1/2013 43.000 TRICO MARINE SER 8.125% 2/1/2013 10.500 TXU ENERGY CO 7.000% 3/15/2013 29.000 VIRGIN RIVER CAS 9.000% 1/15/2012 48.000 WOLVERINE TUBE 15.000% 3/31/2012 30.000 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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 ***