/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110407.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, April 7, 2011, Vol. 14, No. 96 Headlines 1031 TAX GROUP: Cordell Can't Enforce Injunction in Fraud Case 6414 URBAN: Case Summary & 2 Unsecured Creditors AEP INDUSTRIES: Moody's Affirms 'B1' CFR, Cuts Outlook to Neg. AEP INDUSTRIES: S&P Holds 'B' Corp. Credit Rating; Outlook Pos. AEQUICAP INSURANCE: Regulator Places Firm Into Liquidation AGS LLC: S&P Maintains 'B-' Corporate Credit Rating; Outlook Neg. ALEXICO GROUP: Receiver Appointed for Two Manhattan Hotels ALLISON TRANSMISSION: S&P Upgrades Sr. Secured Debt Rating to 'B+' AMBAC FINANCIAL: Mediation With IRS to Begin May 1 AMBAC FINANCIAL: Wins Approval of One State Settlement AMBAC FINANCIAL: Wins Nod to Hire Cornerstone as Consultant AMERICAN APPAREL: Taps Rothschild to Assist Potential Sale AMERICAN POST TENSION: Recurring Losses Cue Going Concern Doubt AMERICAN ROCK: Moody's Puts B2 Rating on Proposed $250MM Term Loan AMERICAN ROCK: S&P Puts 'B' Corp. Credit Rating; Outlook Stable AMR HOLDCO: Moody's Puts B1 Rating to Proposed Sr. Sec. Term Loan AMSCAN HOLDINGS: Delays Filing of 2010 Annual Report ARAMARK HOLDINGS: Moody's Puts 'B3' Rating on $600MM Sr. Notes ARAPAHOE LAND: Case Summary & 4 Largest Unsecured Creditors ARTECITY MANAGEMENT: To Present Plan for Confirmation on June 22 ASARCO LLC: Clerk Reports on Claims Transfers for February BALM IN GILEAD: Case Summary & 19 Largest Unsecured Creditors BATAA/KIERLAND: Court Approves Polsinelli as Bankruptcy Counsel BEDFORD SURREY: Case Summary & Largest Unsecured Creditor BERNARD L. MADOFF: SIPC Joins Trustee's $6.4-Bil. JPM Battle BJH JOHNSON: Voluntary Chapter 11 Case Summary BLUEGREEN CORP: Incurs $21.7-Mil. Net Loss in Fourth Quarter BLYTH INC: Moody's 'B2' Corporate Unaffected by Midwest CBK Sale BLOCKBUSTER INC: Selects DISH Network as Winning Bidder BOB REAL ESTATE: Case Summary & 9 Largest Unsecured Creditors BORDERS GROUP: Files Rule 2015.3 Report BORDERS GROUP: Random House & Penguin Have $116-Mil. in Claims BOUNDARY BAY: Chapter 11 Case Transferred to Judge Robert N. Kwan BOUNDARY BAY: Section 341(a) Meeting Scheduled for April 28 BUILDERS FIRSTSOURCE: Moody's Assigns 'Caa2' Corporate BYSYNERGY LLC: Committee Asks Court to Convert Case to Chapter 7 CAPMARK FINANCIAL: To Auction Management Stake in $1-Bil. Fund CAPTAIN VAN DYKE: Plan Confirmation Hearing Continued to May 19 CAPTAIN VAN DYKE: Obtains Interim Approval to Use Cash Collateral CAR WASH: Involuntary Chapter 11 Case Summary CARGO TRANSPORTATION: Taps Ruden McClosky as Special Counsel CELCIUS HOLDINGS: Sherb & Co. Raises Going Concern Doubt CHOA VISION: Disclosure Statement Hearing on May 17 CJY INVESTMENT: Case Summary & 4 Largest Unsecured Creditors CONVERTED ORGANICS: CCR LLP Raises Going Concern Doubt COPANO ENERGY: 83% Sign Indenture to Eliminate Note Defaults CORNERSTONE WORLD: Prepares to Sell Assets at Auction CREDIT ONE: Moss Krusick Raises Going Concern Doubt CROSS COUNTY: Section 341(a) Meeting Scheduled for May 6 CRYSTALLEX INTERNATIONAL: Gets Delisting Notice from NYSE Amex CYPHERMINT INC: Service on Russian Corporations Was Adequate DBSI INC: Foley & Lardner, Young Conaway Move Malpractice Suit DJO FINANCE: Moody's Puts 'B3' Rating to $300MM Note Offering EFD, LTD.: Case Summary & 20 Largest Unsecured Creditors ELM STREET: Court Sets June 15 Claims Bar Date DOC'S JAGS: Voluntary Chapter 11 Case Summary EARTH GROUP: Voluntary Chapter 11 Case Summary EAU TECHNOLOGIES: HJ & Associates Raises Going Concern Doubt ECF NORTH RIDGE: Case Summary & 22 Largest Unsecured Creditors EMMIS COMMUNICATIONS: Amalgamated Gadget Holds 1.9% Equity Stake ENCORIUM GROUP: Delays Filing of 2010 Annual Report ENERTECK CORP: Delays Filing of 2010 Annual Report ENRON CORP: Beats Appeal Over Bank's $50M Ch. 11 Claim EXPRESSWAY DEV'T: Can Hire Marion Kordic as Real Estate Appraiser EXPRESSWAY DEV'T: Gets Court's Nod to Hire Hayes Brokerage EXPRESSWAY DEV'T: Has Court OK to Hire Smith Carney as Accountant EXPRESSWAY DEV'T: Has Court's OK to Hire Randel Shadid as Attorney EXTENDED STAY: Hotel Chain HQ Moves to Charlotte FAIRFIELD SENTRY: Sues Abu Dhabi Fund to Claw Back $300 Million FARLEY'S & SATHERS: S&P Assigns 'B' Corporate Credit Rating FAYETTEVILLE MARKETFAIR: Court Dismisses Chapter 11 Case FENTURA FINANCIAL: James Wesseling Had 7,177 Share at Dec. 29 FIRSTSOURCE INC: S&P Affirms Junk Corporate Credit Rating FLORIDA GAMING: Incurs $4.84 Million Net Loss in 2010 FMC VENTURE: Case Summary & 8 Largest Unsecured Creditors FORD MOTOR: U.S. March Sales Up 19%; Year-to-Date Sales Up 16% FRANCISCAN COMMUNITIES: Court Confirms Chapter 11 Liquidating Plan FRANKLIN TOWERS: Delays Filing of 2010 Annual Report GBI CROUP: Case Summary & 20 Largest Unsecured Creditors GEMCRAFT HOMES: Case Summary & 20 Largest Unsecured Creditors GIBSON GUITAR: Moody's Assigns 'B3' to $130-Mil. Credit Facility GLENDALE INTERNATIONAL: Trustee Sells 48% Firan Stake to Oakwest GORDON'S MUSIC: Case Summary & 20 Largest Unsecured Creditors GREATER ATLANTA BROKERAGE: Case Summary & Largest Unsec. Creditors GREDE HOLDINGS: S&P Withdraws Preliminary 'B+' Corp. Credit Rating LADY FOREST: Case Summary & 20 Largest Unsecured Creditors HOMELAND SECURITY: Amends 2009 Annual Report; Addresses Comments HYTHIAM INC: Incurs $19.99 Million Net Loss in 2010 IDO SECURITY: Delays Filing of 2010 Annual Report INDIGO-ENERGY: Delays Filing of 2010 Annual Report INFUSION BRANDS: Meeks International Raises Going Concern Doubt INNOVIDA HOLDINGS: Receiver Becomes Chapter 11 Trustee INT'L TEXTILE: Incurs $46.30 Million Net Loss in 2010 JEMA ENTERPRISES: Case Summary & Largest Unsecured Creditor JOHN D OIL: Incurs $1.38 Million Net Loss in 2010 JUST MARSE: Case Summary & 4 Largest Unsecured Creditors KIDS VIEW: Case Summary & 8 Largest Unsecured Creditors KV PHARMACEUTICAL: Incurs $44.66 Million Net Loss in Dec. 31 Qtr. LAW ENFORCEMENT ASSOCIATES: Frost PLLC Raises Going Concern Doubt LNR PROPERTY: Moody's Puts 'B2' Corporate Under Review for Upgrade MAC THE ANTIQUE: Case Summary & 20 Largest Unsecured Creditors MACCO PROPERTIES: Creditors Panel Wants Dennis Maley as Accountant MACCO PROPERTIES: Objects to Creditors Panel's Hiring of Welch MACCO PROPERTIES: Wants Pinkerton as Special Litigation Counsel MASONITE INT'L: Moody's Assigns 'B2' Corporate Family Rating MASTER SILICON: Reports $232,979 Net Profit in 2010 MCMILLAN-NARO: Case Summary & 16 Largest Unsecured Creditors MICHAELS STORES: S&P Revises Outlook to Positive, Holds B- Rating MIDWAY RAYFORD: Voluntary Chapter 11 Case Summary MITOO CORPORATION: Case Summary & 3 Largest Unsecured Creditors MMFX CANADIAN: Court Okays Pachulski Stang as Committee Counsel MMRGLOBAL INC: Rose Snyder Raises Going Concern Doubt MOOD MEDIA: Moody's Puts 'B2' Corp. Family Rating; Outlook Stable MORTGAGEBROKERS.COM: Delays Filing of 2010 Annual Report MPG OFFICE: Disposes of Non-Core Assets; Eliminates $33.8MM Debt MUKAT INC: Case Summary & 3 Largest Unsecured Creditors M-WISE INC: Incurs $1.94 Million Net Loss in 2010 NBC ACQUISITION: Weak Liquidity Cues S&P's CCC Corp. Credit Rating NEDAK ETHANOL: Incurs $2.08 Million Net Loss in 2010 NEW SAIGON: Case Summary & 20 Largest Unsecured Creditors NNN 2003: Sevens Building Sold to GECE for $17.40 Million NUMOBILE INC: Incurs $2.99 Million Net Loss in 2010 NXT NUTRITIONALS: Incurs $17.40 Million Net Loss in 2010 NXT NUTRITIONALS: Delays 29-Mil. Shares Registration OLD AUGUSTA: Commissioners Face Fraud & Negligence Suit OMNICOMM SYSTEMS: Incurs $3.13 Million Net Loss in 2010 ONE RENAISSANCE: Wants to Use Wells Fargo's Cash Collateral ONE RENAISSANCE: Has Until June 7 to File Chapter 11 Plan OSI RESTAURANT: Swings to $27.8-Mil. Profit in 2010 PARKWAY NORTH: Voluntary Chapter 11 Case Summary PARK OHIO: Moody's Corrects April 1 Release, Assigns B3 Rating PARRIS PROPERTIES: Case Summary & 5 Largest Unsecured Creditors PATTON STREET: Case Summary & 7 Largest Unsecured Creditors PENN VIRGINIA: S&P Affirms 'BB-' Corporate Credit Rating PHYSICAL PROPERTY: Incurs HK$640,000 Net Loss in 2010 PLATINUM ENERGY: Delays Filing of 2010 Annual Report POINT BLANK: Seeks to Hire Baker & McKenzie as Counsel PURADYN FILTER: Delays Filing of 2010 Annual Report PURSELL HOLDINGS: Creditors Have Until May 2 to File Claims PURESPECTRUM INC: Delays Filing of 2010 Annual Report QWEST COMMUNICATIONS: Common Stock Delisted From NYSE RALPH FAIR: Case Summary & 17 Largest Unsecured Creditors REAL ESTATE ASSOCIATES: Reports $171,000 Net Income in 2010 REALOGY CORP: Files Form S-1; Issues $2.11BB of 11.00% Sr. Notes RED MOON: Case Summary & 20 Largest Unsecured Creditors ROANOKE HEALTH: Case Summary & 20 Largest Unsecured Creditors ROYAL INVEST: Delays Filing of 2010 Annual Report S & S FOOD: Case Summary & 8 Largest Unsecured Creditors SAN ANGELO HOTEL: Voluntary Chapter 11 Case Summary SATELITES MEXICANOS: Files Prepackaged Chapter 11 Petition SBARRO INC: Proposes $35 Million of DIP Financing SBARRO INC: Taps Epiq Bankruptcy as Notice & Claims Agent SBARRO INC: Asks Court to Extend Time for Filing of Schedules SBARRO INC: Wants OK to Pay Critical Vendors' Prepetition Claims SCI REAL ESTATE: Files Schedules of Assets And Liabilities SEAHAWK DRILLING: Creditors Object to Duff and Phelps Hiring SOLAR THIN: Delays Filing of 2010 Annual Report STANADYNE HOLDINGS: Incurs $9.98 Million Net Loss in 2010 SUMMIT BUSINESS: Hires Clark Schaefer as Accountants STEWART ENTERPRISES: Moody's Assigns B1 to Proposed $200MM Notes SW OWNERSHIP: Hires CB Richard Ellis as Appraiser SWORDFISH FINANCIAL: Delays Filing of 2010 Annual Report TABI INTERNATIONAL: Closing All 76 Stores Across Canada TAPATIO SPRINGS: Returns to Chapter 11 to Stop Foreclosure TAPATIO SPRINGS: Case Summary & 3 Largest Unsecured Creditors TAYLOR BEAN: Farkas' Mortgage Fraud Trial Set to Start April 4 TCC GROUP: Case Summary & 20 Largest Unsecured Creditors TEAM NATION: Delays Filing of 2010 Annual Report TEMPUS RESORTS: Taps Marcum as Financial Advisors THERMOENERGY CORP: Incurs $9.85 Million Net Loss in 2010 THORNBURG MORTGAGE: Ch.11 Trustee Has Go-Signal to Hire Consultant TIB FINANCIAL: Files Form 10-K; Posts $560,000 Net Income TIGRENT INC: Incurs $697,000 Net Loss in 2010 TILE HOUSE: Case Summary & 20 Largest Unsecured Creditors TJ HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors TVMJ INVESTMENTS: Case Summary & 5 Largest Unsecured Creditors ULTIMATE ACQUISITION: Hires Real Estate Consultant and Advisor VERINT SYSTEMS: Moody's Puts B1 Rating to Proposed Secured Debt VIA DEL ORO: Case Summary & 18 Largest Unsecured Creditors VIKANIS LLC: Case Summary & 3 Largest Unsecured Creditors WATERSCAPE RESORT: To Sell Cassa Hotel via Chapter 11 WATERSCAPE RESORT: Case Summary & 6 Largest Unsecured Creditors WEB2B PAYMENT: Case Summary & 7 Largest Unsecured Creditors WESTERN APARTMENT: Days Inn Maui in Chapter 11 for the 3rd Time WESTERN APARTMENT: Case Summary & 20 Largest Unsecured Creditors WESTLAND PARCEL: Has Green Light to Hire Kallman as Accountants WINDEMERE APARTMENTS: Voluntary Chapter 11 Case Summary WJO INC: Wins OK to Hire Special Counsel for TMR Cases WJO INC: Ombudsman Gets OK to Hire Eckert Seamans as Counsel * First Quarter Consumer Bankruptcy Filings Fall 6% from 2010 * Five Hunton Partners Head to DLA's New Miami Outpost * Recent Small-Dollar & Individual Chapter 11 Filings ********* 1031 TAX GROUP: Cordell Can't Enforce Injunction in Fraud Case -------------------------------------------------------------- Bankruptcy Law360 reports that Judge Richard J. Holwell in the U.S. District Court for the Southern District of New York rejected a request by Cordell Consultants Inc. to enforce a bankruptcy court's injunction that would have spared it from aiding and abetting claims related to a massive fraud at 1031 Tax Group LLC. About 1031 Tax Group Headquartered in Richmond, Virginia, The 1031 Tax Group LLC -- http://www.ixg1031.com/-- was a privately held consolidated group of qualified intermediaries created to service real property exchanges under Section 1031 of the Internal Revenue Code. 131 Tax Group had total assets of $164.23 million and total liabilities as of Sept. 30, 2007. The Company and 15 of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 07-11448) on May 14, 2007. Gerard A. McHale, Jr., was appointed Chapter 11 trustee. Jonathan L. Flaxer, Esq., and David J. Eisenman, Esq., at Golenbock Eiseman Assor Bell & Peskoe LLP, represent the Chapter 11 trustee. Kurtzman Carson Consultants LLC acts as claims and notice agent. Thomas J. Weber, Esq., Melanie L. Cyganowski, Esq., and Allen G. Kadish, Esq., at Greenberg Traurig, LLP, represent the Official Committee of Unsecured Creditors. Former CEO Edward H. Okun is in federal prison at Northern Neck Regional Jail in Warsaw, Virginia, after being convicted of mail fraud and other charges. Mr. Okun allegedly engaged in several misappropriations of funds of 1031 Tax Group and other entities. The funds were used for Mr. Okun's lavish lifestyle including acquiring properties and luxury asset. 6414 URBAN: Case Summary & 2 Unsecured Creditors ------------------------------------------------ Debtor: 6414 Urban South, LP 1115 Kinney Ave. #38 Austin, TX 78704 Bankruptcy Case No.: 11-10803 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: Craig A. Gargotta Debtor's Counsel: Stephen W. Sather, Esq. BARRON & NEWBURGER, P.C. 1212 Guadalupe, Suite 104 Austin, TX 78701 Tel: (512) 476-9103 Ext. 220 Fax: (512) 476-9253 E-mail: ssather@bnpclaw.com Scheduled Assets: $3,096,631 Scheduled Debts: $1,835,984 A list of the Company's two unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb11-10803.pdf The petition was signed by Peter Kehle, president of general partner. AEP INDUSTRIES: Moody's Affirms 'B1' CFR, Cuts Outlook to Neg. -------------------------------------------------------------- Moody's Investors Service revised the ratings outlook for AEP Industries Inc. to negative from stable and affirmed the B1 corporate family rating. Moody's also assigned a B2 rating to the new $200 million senior notes due 2019. The proceeds from the offering will be used to purchase the existing $160.16 million 7.875% Senior Notes due 2013 and pay the fees and expenses related to the offering and the tender offer and consent solicitation and, to the extent necessary, to redeem any remaining 7.875% Senior Notes due 2013 upon the completion of the tender offer and consent solicitation. The Company intends to use the remaining proceeds to repay all or a portion of the amounts outstanding under the Company's credit facility. Moody's took these actions for AEP Industries, Inc.: * Affirmed B1 Corporate Family Rating; * Affirmed B1 Probability of Default Rating; * Assigned $200 million senior notes due 2019, B2 (LGD 5, 73%); * Affirmed $161.16 million senior notes due 2013, B2 (LGD 5, 75%) (to be withdrawn after the transaction closes); * Revised outlook to negative from stable. Ratings Rationale The revision of the ratings outlook to negative from stable reflects the sustained weakness in the company's EBIT margin to below the stated rating triggers and weakening of leverage and interest coverage from the proposed debt issuance. The EBIT margin remains below the stated rating trigger due to raw material price increases and strong price competition. While the competitive environment has exhibited some signs of improvement, price competition remains strong and the pace and extent of any improvement remains uncertain. AEP may be challenged to restore margins to a level commensurate with the rating category over the horizon without further significant improvement in the competitive environment. AEP's B1 Corporate Family Rating reflects the company's exposure to a fragmented market with significant price competition and overcapacity and exposure to some cyclical end markets. The company's operating margins remain weak for the rating category and may continue to be negatively impacted by the competitive environment. The rating also reflects the predominance of commodity products and dearth of long-term contracts with cost pass through provisions with customers. The rating is supported by certain credit metrics that provide some cushion in the rating category as well as strong liquidity. Additionally, the company's continuing focus on profitability and cost-cutting also help support the rating. Strengths in the credit profile also include a high percentage of packaging for food products, scale relative to most competitors and strong liquidity. What Could Change the Rating -- Up The ratings could be upgraded if there is a sustainable improvement in credit metrics and the operating and competitive environment. Additionally, the company would need to maintain adequate liquidity. Specifically, the ratings could be upgraded if the EBIT margin improves to above 9.75% with leverage remaining below 5.0 times, EBIT to interest coverage above 2.0 times and free cash flow to total debt above 6%. What Could Change the Rating -- Down The ratings could be downgraded if the company fails to improve credit metrics or if there is a lack of improvement in the competitive and operating environment. The ratings could also be downgraded if there is a material debt-financed acquisition or if AEP fails to maintain adequate liquidity. The rating is especially sensitive to the EBIT margin as it remains weak for the rating category. Specifically, the rating could be downgraded if AEP fails to improve the EBIT margin to the high single digits while maintaining free cash flow to debt in the mid single digits, EBIT interest coverage above 1.6 times and EBITDA to total debt below 5.5 times. The principal methodologies used in this rating were Global Packing Manufacturers: Metal, Glass, and Plastic Containers published in June 2009, Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009, and Speculative Grade Liquidity Ratings published in September 2002. AEP INDUSTRIES: S&P Holds 'B' Corp. Credit Rating; Outlook Pos. --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on AEP Industries Inc. and revised the outlook to positive from stable. At the same time, Standard & Poor's assigned a 'B-' issue-level rating and a '5' recovery rating to the company's proposed $200 million senior unsecured notes maturing April 2019. The '5' recovery rating indicates Standard & Poor's expectation for modest (10%-30%) recovery in the event of a payment default. The company plans to use the proceeds from the proposed senior unsecured notes to repay $160 million in existing debt, with the remainder applied toward its asset-based revolving credit facility and fees and expenses. "The outlook revision reflects our expectation of improving operating trends supported by increased volumes and manageable raw material costs," said Standard & Poor's credit analyst Henry Fukuchi. "We expect that these trends will lead to an improving financial profile and adequate liquidity, which could warrant a modestly higher rating." South Hackensack, N.J.-based AEP is a large producer of polyvinyl chloride food wrap, industrial films, and polyethylene pallet-wrap stretch films. The company has leading market positions in a number of flexible packaging niches, but the industry's competitiveness limits its ability to pass on input cost increases to customers, particularly during cyclical periods of weaker demand. This introduces volatility into operating earnings that can meaningfully constrain free cash flow and liquidity. In the past, the company responded to volume declines and intensified competition by disposing of less-profitable businesses, especially in Europe. AEP is now focused on the North American market. AEQUICAP INSURANCE: Regulator Places Firm Into Liquidation ---------------------------------------------------------- RiskandInsurance.com reports that the Florida Department of Financial Services ordered AequiCap Insurance Co. into liquidation after the regulators said the Company lacked the financial resources for a successful rehabilitation. AequiCap Insurance Company was ordered into receivership for purposes or rehabilitation by the Second Judicial Circuit Court in Leon County, Fla., in February. The liquidation announcement was made March 7 with policies being canceled as of April 6. RiskandInsurance.com relates that regulators said the Florida Workers' Compensation Insurance Guaranty Association will help pay outstanding claims for workers' comp policies with the amounts paid on claims limited to the amount of coverage provided by the policies. "However, Florida does not limit benefits paid to injured workers and pays 100 percent of the statutorily defined workers' comp benefits. For unearned premium claims, the FWCIGA's obligation is limited to $50,000 and covers only policies in force on the date of liquidation," according to documents on the DFS Web site obtained by RiskandInsurance.com. The state guaranty associations for the additional three states are being activated to help pay outstanding claims there. About AequiCap Insurance AequiCap Insurance Company provided workers' comp and commercial auto coverage in Florida and had 2,330 policies in force. It was also licensed in Georgia, Oklahoma, and South Carolina. As reported in the Troubled Company Reporter on March 14, 2011, A.M. Best Co. downgraded the financial strength rating to E (Under Regulatory Supervision) from C++ (Marginal) and issuer credit rating to "rs" from "b" of AequiCap Insurance Company (Fort Lauderdale, FL). On Feb. 28, 2011, The State of Florida issued a consent order of rehabilitation of AequiCap. AGS LLC: S&P Maintains 'B-' Corporate Credit Rating; Outlook Neg. ----------------------------------------------------------------- Standard & Poor's Ratings Services said t it withdrew all its ratings on AGS Holdings LLC. The ratings withdrawal follows the company's decision not to move forward with plans to issue $150 million in new senior secured notes to refinance its existing credit facility. "We continue to maintain ratings on AGS LLC, a subsidiary of AGS Holdings, and the borrower on the existing credit facility. Our corporate credit rating on AGS LLC is 'B-' and the rating outlook is negative. Our rating on AGS LLC reflects our expectation the company will not be able to remain in compliance with financial covenants absent the use of the equity cure provision or a waiver and amendment to its existing credit facility," S&P stated. ALEXICO GROUP: Receiver Appointed for Two Manhattan Hotels ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that a Manhattan condo and hotel developer has lost control of two Midtown luxury hotels following a ruling by a New York state Supreme Court judge. In a foreclosure proceeding last month, Judge Joan Madden appointed a receiver for the Flatotel and the Alex Hotel, which have been run by Alexico Group. In her ruling, Judge Madden noted that while Alexico failed to pay the hotels' mortgage payments or real-estate taxes for two years, the developer's principals paid themselves $570,000 in management fees. According to DBR, the creditor group claims that the Alex Hotel owes it $107 million, and the Flatotel $209 million. At the same time, the judge's ruling said that the principals, Izak Senbahar and Simon Elias, transferred hotel funds to various affiliated properties. That includes their flagship property, the newly renovated Mark Hotel on the Upper East Side, which has been struggling to sell co-op apartments as part of a conversion plan. ALLISON TRANSMISSION: S&P Upgrades Sr. Secured Debt Rating to 'B+' ------------------------------------------------------------------ Standard & Poor's Ratings Services said it raised its issue-level rating on Indianapolis-based global auto component supplier Allison Transmission Inc.'s senior secured debt to 'B+' from 'B'. The recovery rating is revised to '2' from '3'. "At the same time, we affirmed our 'B' corporate credit rating on the company. The outlook is stable," S&P said. "The ratings on Indianapolis-based Allison Transmission Inc. reflect the company's highly leveraged financial risk profile, which in our view overshadows the company's good profitability and strong market shares as the leading U.S. supplier of automatic transmissions for commercial vehicles," said Standard & poor's credit analyst Lawrence Orlowski. "We consider Allison's business risk profile to be fair, reflecting its good market position but also the highly cyclical North American commercial- vehicle supplier business," Mr. Orlowski continued. "We also believe Allison's leverage could remain somewhat elevated until end-market demand rebounds more strongly. Nevertheless, the company filed for an initial public offering of stock of up to $750 million on March, 18, 2011. Though we believe that the timing of the IPO and the amount of debt reduction are uncertain, the transaction, if successful, could accelerate the gradual reduction in leverage the company has already achieved through improved profitability during the past few quarters. For example, a $500 million debt reduction would reduce leverage to 5.4x from 6.3x at Dec 31, 2010," S&P said. "As of March 1, 2011, The Carlyle Group and Onex Corporation each owned about 49.8% of Allison's common stock and we expect that these sponsors will continue to hold a controlling stake of the common stock upon the potential completion of the IPO," S&P added. AMBAC FINANCIAL: Mediation With IRS to Begin May 1 -------------------------------------------------- Ambac Financial Group, Inc. and the U.S. Internal Revenue Service have mutually selected retired Judge James Robertson of JAMS, Inc., to serve as mediator in the adversary proceeding commenced by the Debtor against the IRS, according to the Debtor's counsel, Lawrence M. Hill, Esq., at Dewey & LeBoeuf LLP, in New York's letter to Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District Court of New York. Despite the selection of the mediator, the IRS continues to assert that the reference of the matter should be withdrawn to the U.S. District Court for the Southern District of New York. The parties thus acknowledge that in the event the District Court grants the IRS' Motion to Withdraw Reference to the District Court, the mediation before Judge Robertson may be discontinued, unless the District Court or all the parties agree that mediation should proceed. Judge Robertson served as a federal judge for the District of Columbia from 1994 until 2010. Mr. Hill says Judge Robertson's selection is conditioned on a conflicts check and execution of a retention agreement with JAMS. The selection is also conditioned on internal government approval that is being sought by the IRS. Mediation in the adversary proceeding will commence on May 1, 2011, unless all issues in the adversary proceeding are settled at an earlier date, according to a previous order of the Bankruptcy Court. Ambac Financial has commenced an adversary proceeding seeking a declaratory judgment on whether the IRS can seize $700 million in tax refunds the Debtor has received. IRS has answered the lawsuit and asserts that the complaint should be dismissed as the Bankruptcy Court "lacks jurisdiction". The IRS has filed a motion to withdraw reference before the U.S. District Court for the Southern District of New York. The Debtor, however, points out that it is vigorously opposing the Motion to Withdraw, and the adversary proceeding is not stayed pursuant to F.R.B.P. Rule 5011(c). To avoid unnecessary delay while the Motion to Withdraw is pending, it is proper for the administration of the Adversary Proceeding to proceed in Bankruptcy Court, Ambac asserts. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed $30.05 billion in total assets, $31.47 billion in total liabilities, and a $1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of ($394.5 million) and total liabilities of $1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about $1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. AMBAC FINANCIAL: Wins Approval of One State Settlement ------------------------------------------------------ Ambac Financial Group, Inc., received permission from Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York to enter into a settlement, discontinuance and release agreement with One State Street, LLC. In January 1992, Ambac Indemnity Corporation, the predecessor of Ambac Assurance Corporation, and South Ferry Building Company, the predecessor of One State Street, LLC, entered into a real property lease for floors 15 through 18 of the property commonly known as One State Street Plaza, New York. AAC and South Ferry entered into a letter agreement in August 1997, extending the lease term through September 30, 2019, and adding the 19th floor to the leased premises. In December 2002, AAC and the Debtor entered into an agreement, whereby AAC assigned all of its right, title and interest in the Lease to the Debtor and the Debtor accepted the assignment. OSS LLC executed a consent expressly approving the assignment of AAC's interests in the Existing Headquarters Lease to the Debtor. The Debtor and OSS LLC also entered into a letter agreement in December 2002, pursuant to which the 20th floor was added to the leased premises and fixed rent over the term of the Existing Headquarters Lease was increased by about $18.5 million. The Debtor has since occupied the leased premises and fulfilled all of the tenant's obligations under the Existing Headquarters Lease, except for the prepetition rent for the period from November 1 to 8, 2010. In March 2010, the Wisconsin's Office of the Insurance Commissioner commenced rehabilitation of AAC's segregated account that contained, among other things, certain policies and liabilities of AAC and any obligations AAC may have to the Existing Headquarters Lease. The Circuit Court of Dane County, Wisconsin entered an Injunction Order on March 24, 2010, to promote the equitable and orderly rehabilitation of the segregated account of AAC. OSS LLC filed a motion in AAC's rehabilitation proceedings, seeking the dissolution or modification of the Injunction Order, asserting that AAC is the primary obligor under the Existing Headquarters Lease. OSS LLC also challenged the jurisdiction of the Rehabilitation Court and the Contingent Disputed Liabilities and objected to the confirmation of the Plan of Rehabilitation of the Segregated Account. Certain of those challenges and objections are subject to a stipulation among the AAC, the OCI, and OSS LLC filed with the Wisconsin Court of Appeals. Peter A. Ivanick, Esq., at Dewey & LeBoeuf LLP, in New York, tells the Court that the Debtor pays average monthly rental payments of about $767,000 to OSS LLC in 2011 which, per the terms of the Existing Headquarters Lease, are projected to increase over the term of the Existing Headquarters Lease. While AAC reimburses the Debtor for AAC's proportional share of this expense and thereby pays the bulk of the rent, the Debtor is responsible for the entire rental payment, he elaborates. The Debtor believes that this monthly rental payment greatly exceeds the current market rental value for the Existing Premises. The Existing Premises also contain greater space than the Debtor and AAC need to conduct their businesses, and a portion of the Existing Premises is not being utilized, Mr. Ivanick points out. To resolve all disputes relating to the Existing Headquarters Lease, the Debtor, OSS LLC, AAC and the Segregated Account entered into a settlement and release agreement, the salient terms of which are: (1) The Existing Headquarters Lease will be terminated; (2) AAC and OSS LLC will execute a new lease for a reduced monthly rent and reduced space, which will also have the effect of mitigating damages with respect to the Existing Headquarters Lease. (3) OSS LLC will receive an allowed general unsecured claim against the Debtor for $14,302,367, which amount represents the maximum claim that OSS would receive pursuant to Section 502(b)(6) of the Bankruptcy Code had the Debtor rejected the Existing Headquarters Lease pursuant to Section 365 of the Bankruptcy Code, as opposed to negotiating a consensual termination of the Existing Headquarters Lease, which will be adjusted downward to reflect any payments made by Debtor pursuant to the Existing Headquarters Lease between March 1, 2011 and the effective date of the Settlement Agreement; and (4) Parties agree to exchange mutual releases, subject to certain exceptions specified in the Settlement Agreement. In a regulatory filing with the U.S. Securities and Exchange Commission on March 7, 2011, the Debtor disclosed that the amount to be paid to OSS LLC will be made in the same form as payment is made to the Company's other creditors in accordance with a confirmed Chapter 11 plan of reorganization. The Settlement Agreement further provides that the Segregated Account will issue junior surplus notes to OSS LLC. The amount of the junior surplus notes will be determined on the Effective Date and will equal to: (i) the net present value using a 7% discount rate of certain amounts owed under the Existing Lease; minus (ii) the net present value of amounts owed under the New AAC Lease; minus (iii) 83.33% of the value of any distribution received by OSS LLC from the Company's bankruptcy estate on account of OSS LLC's lease termination claim; minus (iv) the net present value of amounts paid for any extension of term of the New AAC Lease. The Effective Date of the Settlement Agreement will occur on the date on which certain conditions have been satisfied, so long as those conditions are satisfied prior to June 30, 2011, including, without limitation, approvals from (i) the OCI (ii) the Dane County Circuit Court, (iii) the Bankruptcy Court, and (iv) OSS LLC's mortgage holder. AFG Managing Director, Secretary and Assistant General Counsel Anne Gill Kelly related that on March 1, 2011, AAC entered into the New AAC Lease with OSS LLC for an initial term commencing on the Effective Date through December 31, 2015. The New AAC Lease provides for the rental of a reduced amount of space at AFG's current location, One State Street Plaza, at a current market rate of approximately $20 million in the aggregate over the initial term. The New AAC Lease also provides that its term may be extended through September 30, 2019, under certain circumstances. A full-text copy of the Settlement Agreement is available for free at http://bankrupt.com/misc/Ambac_OSSSettlementPact.pdf Mr. Ivanick maintains that the Settlement Agreement results in: (i) a reduction in the square footage utilized by the Debtor and AAC commensurate with their actual current business needs; and (ii) a significant reduction in the monthly rent paid from an estimated $767,000 per month owed by Debtor in 2011 to an estimated $368,000 per month owed by AAC in 2011, with similar reductions over the term of the lease. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed $30.05 billion in total assets, $31.47 billion in total liabilities, and a $1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of ($394.5 million) and total liabilities of $1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about $1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. AMBAC FINANCIAL: Wins Nod to Hire Cornerstone as Consultant ----------------------------------------------------------- Ambac Financial Group, Inc. received the Bankruptcy Court's permission to employ Cornerstone Research as its litigation consultant, nunc pro tunc to Jan. 14, 2011. As the Debtor's litigation consultant, Cornerstone will provide certain litigation consulting services to the Debtor and Wachtell Lipton, Rosen & Katz, the Debtor's special counsel, including, among other things, compiling, modeling and analyzing trading activity for certain of the Debtor's securities. Cornerstone has indicated its willingness to serve as the Debtor's litigation consultants with respect to certain putative securities and derivatives class actions and to perform those services. To the extent that Cornerstone provides consulting services to Wachtell Lipton, counsel to the Debtor in the Litigations, or any of the Debtor's other retained counsel in connection with litigation matters, Cornerstone's work will be performed at the sole direction of Debtor's counsel and will be solely and exclusively for the purpose of assisting counsel in their representation of the Debtor, AFG Senior Vice President and General Counsel Kevin Doyle clarifies. Consequently, Mr. Doyle says Cornerstone's work may be of fundamental importance in the formulation of mental impressions and legal theories by counsel, which may be used in counseling the Debtor, representing the Debtor, and negotiating a settlement on behalf of the Debtor. In order for Cornerstone to carry out its responsibilities, it may be necessary for Debtor's counsel to disclose to Cornerstone their legal analysis, as well as other privileged information and attorney work product, he notes. Accordingly, the Debtor asks the Court to deem that the status of any writings, analysis, communications, and mental impressions formed, produced or created by Cornerstone in connection with its assistance of Wachtell Lipton or any of the Debtor's other retained counsel in litigation matters is the work product of Wachtell Lipton or any of the Debtor's other retained counsel in their capacity as counsel to the Debtor. The Debtor further seeks an order providing that the confidential or privileged status of the Cornerstone Litigation Work Product (i) will not be affected by the fact that Cornerstone has been retained by the Debtor rather than by Wachtell Lipton or any of the Debtor's other retained counsel; and (ii) will not be affected if certain aspects of Cornerstone's work are shared with Debtor's lead counsel in these Chapter 11 cases, any of the Debtor's other retained counsel, the Official Committee of Unsecured Creditors, or its counsel. Cornerstone's professionals will be paid at an hourly rate, and that total fees will not exceed $65,000 without seeking further approval by the Court. The current hourly rates for damages estimation services to be rendered by Cornerstone professionals are: Professional Rate per Hour ------------ ------------- Partner/Managing Director $550 Associate $375 Staff $235 to $300 Cornerstone will be entitled to seek reimbursement for actual and necessary expenses incurred. David Marcus, vice president at Cornerstone Research -- dmarcus@cornerstone.com -- assures Judge Chapman that Cornerstone is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed $30.05 billion in total assets, $31.47 billion in total liabilities, and a $1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of ($394.5 million) and total liabilities of $1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about $1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. AMERICAN APPAREL: Taps Rothschild to Assist Potential Sale ---------------------------------------------------------- Reuters reports that American Apparel is working with advisor Rothschild to help it explore a potential sale, as the Company contends with a falling stock price and the threat of bankruptcy. According to Reuters, if the Company is sold, it is unlikely that the buyer will permit American Apparel CEO Dov Charney to remain with the organization. Mr. Charney has been named a defendant in multiple lawsuits, including one from a former employee who alleges that she was Mr. Charney's sex slave, the report said. Reuters relates that according to one source who is working with a potential buyer, Mr. Charney has been buying stock in American Apparel, which has seen its share price plummet following the revelation on March 31 that it faces bankruptcy. American Apparel's shares were trading for 82 cents on Tuesday, down from a 52-week high of $3.62. Its market cap is just under $64 million. Reuters notes it is believed Mr. Charney controls more than 60% of the Company now, although recent reports peg his ownership closer to 54%. Mr. Charney has been converting his American Apparel debt holdings to equity, according to the source working with a potential buyer. The source said American Apparel's creditor, Lion Capital, hired Miller Buckfire in anticipation of any significant event that pushes the company closer to a Chapter 11 bankruptcy filing. Lion Capital recently removed its two directors, Lyndon Lea and Neil Richardson, from American Apparel's board. About American Apparel Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP) -- http://www.americanapparel.com/-- is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel. As of Sept. 30, 2010, American Apparel employed over 10,000 people and operated 278 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. The Company's balance sheet at Dec. 31, 2010 showed $327.95 million in total assets, $252.93 million in total liabilities, and $75.02 million in total stockholders' equity. Bankruptcy Warning American Apparel, Inc., if unable to improve its operating performance and financial position, obtain alternative sources of capital or otherwise meet its liquidity needs, may need to voluntarily seek protection under Chapter 11 of the U.S. Bankruptcy Code, the retailer said in its annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. American Apparel reported a net loss of $86.31 million on $532.99 million of net sales for the year ended Dec. 31, 2010, compared with net income of $1.11 million on $558.77 million of net sales during the prior year. Marcum LLP, in New York, in its audit report on American Apparel's financial statements for the year ended Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a substantial loss from operations and had negative cash flow from operations for the year ended Dec. 31, 2010. As a result of noncompliance with certain loan covenants, debt with carrying value of approximately $138.0 million at Dec. 31, 2010, could be declared immediately due and payable. Notwithstanding the foregoing, the Company has minimal availability for additional borrowings from its existing credit facilities, which could result in the Company not having sufficient liquidity or minimum cash levels to operate its business. AMERICAN POST TENSION: Recurring Losses Cue Going Concern Doubt --------------------------------------------------------------- American Post Tension, Inc., filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Moss, Krusick & Associates, LLC, in Winter Park, Florida, expressed substantial doubt about the American Post Tension's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and operating cash outflows. The Company reported a net loss of $1.8 million on $7.0 million of sales for 2010, compared with a net loss of $1.9 million on $7.9 million of sales for 2009. At Dec. 31, 2010, the Company's balance sheet showed $1.8 million in total assets, $3.1 million in total liabilities, all current, and a stockholders' deficit of $1.3 million. A complete text of the Form 10-K is available for free at: http://is.gd/0FvsqX Henderson, Nev.-based American Post Tension, Inc., provides slab- on-grade post-tensioning products and services. In addition, the Company also provides materials to its customers on a freight-on- board ('FOB') basis so the buyer assumes the responsibility for the shipment and shipping charges of the materials purchased from the Company. AMERICAN ROCK: Moody's Puts B2 Rating on Proposed $250MM Term Loan ------------------------------------------------------------------ Moody's Investors Service assigned a B2 Corporate Family Rating (CFR) to American Rock Salt Company LLC (ARSC), a B2 rating to its proposed $250 million senior secured Term Loan B due 2017, and a B3 rating to the proposed $200 million senior secured second lien notes due 2018. The proceeds of the proposed debt will be used to refinance ARSC's outstanding debt, repay debt at ARSC's holding company parent and fund a distribution to the company's owners. The transaction is expected to close in the second quarter of 2011. The outlook is stable. This is a summary of the ratings activity. Ratings assigned: American Rock Salt Company LLC -- Corporate Family Rating -- B2 -- Probability of Default -- B2 -- $250mm Sr sec term loan B due 2017 -- B2 (LGD4, 51%) -- $200mm Sr sec second lien notes due 2018 -- B3 (LGD4, 58%) Outlook -- Stable Ratings Rationale ARSC's B2 CFR is supported by its strong margins, cost advantages associated with operating a relatively new mine, historically favorable meteorological conditions in its markets including "lake effect" snow, relatively stable (although seasonal) yearly cash flows that are insulated from economic cycles, modest capex requirements and a diverse customer base. The ratings are further supported by the rock salt industry's relatively benign industry competitive dynamics, natural cost advantage ARSC enjoys over competitors in the markets adjacent to its mining operations and barriers to entry for new competitors. The ratings also reflect ARSC's high leverage (approximately 5.8x for FY2010 after pro forma adjustments for the proposed financing and taking into account Moody's standard analytical adjustments), and high balance sheet debt $450 million) relative to the size of the company (less than $200 million in revenues). In addition, ARSC's ratings are limited by its business profile, single mine operation (Hampton Corners Mine), focused product line (rock salt for highway de- icing), and a geographically narrow market (primarily western Pennsylvania and upstate New York). The stable outlook reflects Moody's expectation that ARSC will continue to experience favorable winter weather patterns in its main markets and reduce debt with excess cash balances. Moody's sees limited upside to ARSC's CFR due to its current business profile (including risks associated with operating a single mine), modest size and history of repeatedly re-levering the company. There could be negative pressure on the ratings if the company were not able to maintain its sales volumes and EBITDA to levels that could support its debt service requirements, or if adequate liquidity is not maintained. American Rock Salt Company LLC, headquartered in Retsof, New York, is a producer of highway deicing rock salt. It operates a single mine (Hampton Corners Mine) in upstate New York and sells its product primarily to state and local government agencies in the northeastern US. The firm is a wholly owned subsidiary of American Rock Salt Holdings LLC, which is closely held by private investors, including some members of management. The company generated revenues of $191 million for the twelve months ended December 31, 2010. The principal methodology used in this rating was Global Chemical Industry rating methodology published in December 2009. AMERICAN ROCK: S&P Puts 'B' Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned a preliminary 'B' corporate credit rating to Mount Morris, N.Y.-based American Rock Salt Co. LLC (ARS). The rating outlook is stable. "At the same time, we assigned a preliminary 'BB-' issue-level rating (two notches above the corporate credit rating) to ARS' proposed $250 million term loan B due 2017. The preliminary recovery rating is '1', indicating our expectation of very high (90%-100%) recovery for lenders in the event of a payment default," S&P stated. "In addition, we assigned a preliminary 'CCC+' issue-level rating (two notches below the corporate credit rating) to ARS' proposed $200 million second-lien notes due 2018. The preliminary recovery rating is '6', indicating our expectation of negligible (0%-10%) recovery for noteholders in the event of a payment default," S&P continued. S&P does not rate the $40 million revolving credit facility. The company expects to use proceeds from the proposed term loan and notes to partially refinance existing debt and fund a distribution to shareholders. "The preliminary 'B' corporate credit rating on ARS reflects the combination of what we consider to be its vulnerable business risk profile and aggressive financial risk profile. The business risk assessment incorporates the company's limited diversity, seasonal demand, and narrow financial flexibility. The rating also takes into consideration our view that the company should have adequate liquidity (after giving effect to the proposed financing transactions) to meet its near-term obligations, benefits from its strategic location, and has a recession resistant business," S&P related. AMR HOLDCO: Moody's Puts B1 Rating to Proposed Sr. Sec. Term Loan ----------------------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family and Probability of Default Rating to Emergency Medical Services Corporation (EMSC). Moody's also assigned a B1 (LGD3, 34%) rating to the proposed $1,440 million term loan due 2018. Concurrently, Moody's assigned a Speculative Grade Liquidity Rating of SGL-1. Moody's understands that the proceeds of the term loan, along with an equity contribution and an issuance of unsecured debt, will be used to fund the acquisition of the company by Clayton, Dubilier and Rice, LLC and to retire the company's existing debt at AMR Holdco, Inc. Moody's understand that EMSC is also expected to obtain a $350 million asset-based revolving credit facility due 2016 (not rated by Moody's) and has committed financing for an unsecured bridge facility of up to $950 million. The ratings outlook is stable. The existing ratings of AMR Holdco, Inc. (the borrower in the existing corporate structure) remain unchanged. Moody's expect to withdraw the ratings of AMR Holdco, Inc. upon the closing of this transaction, at which time the outstanding debt will be repaid. The rating actions are subject to the conclusion of the transaction, as proposed, and Moody's review of final documentation. This is a summary of Moody's actions. Ratings assigned: Emergency Medical Services Corporation: -- $1,440 million senior secured term loan due 2018, B1 (LGD3, 34%) -- Corporate Family Rating, B2 -- Probability of Default Rating, B2 -- Speculative Grade Liquidity Rating, SGL-1 Ratings unchanged and to be withdrawn at the close of the transaction: AMR Holdco, Inc.: -- $125 million senior secured revolving credit facility due 2015, Baa3 (LGD2, 26%) -- $425 million senior secured term loan due 2015, Baa3 (LGD2, 26%) -- Corporate Family Rating, Ba1 -- Probability of Default Rating, Ba2 -- Speculative Grade Liquidity Rating, SGL-1 Ratings Rationale "EMSC's B2 Corporate Family Rating reflects the considerable debt load the company will operate with following the proposed leveraged buyout," said Dean Diaz, a Moody's Senior Credit Officer. "While most of the company's credit metrics will be detrimentally affected by the significant debt load, we expect the company to maintain very good liquidity with the expectation of stable free cash flow that could be used to repay debt," continued Diaz. Moody's estimate that this transaction will increase leverage to around 6.8 times, which is very high for the B2 rating and leaves only a modest equity cushion based on the current estimated purchase multiple. Moody's expect pro forma cash flow generation to decline due to the related interest burden. However, Moody's also expect the company to focus on reducing debt with available free cash flow following the transaction. The rating also reflects the benefits of the company's scale in each of its operating segments, which are otherwise very fragmented among other providers. The stable outlook reflects Moody's expectation that the company should continue to benefit from both organic expansion of operations as well as moderate sized acquisitions. Additionally, while cash flow generation is expected to be negatively impacted by the increased interest burden associated with the considerable debt load, Moody's believe the company will continue to generate sufficient free cash flow and focus on debt reduction. The outlook also reflects Moody's anticipation that the company will remain disciplined in its acquisition strategy with respect to leverage and its expansion into newer service areas. The Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectation that the company will have very good liquidity over the four quarters following the transaction, characterized by sufficient cash flow to fund working capital, capital expenditure needs and mandatory amortization requirements over the forecast period and access to a proposed $350 million asset based revolving credit facility. Upward pressure on the rating is somewhat limited in the near term given the significant increase in leverage with the proposed transaction. However, if the company improves operating results or repays debt such that debt to EBITDA is sustained below 5.5 times and free cash flow to debt is expected to be sustained above 5%, Moody's could upgrade the ratings. If the company takes on additional debt to fund acquisitions or incurs operating difficulties such that leverage were not be reduced from current levels, Moody's could downgrade the ratings. Additionally, if government reimbursement levels are significantly reduced in either segment of the company's business, professional liability claims rise materially above current levels, or if payor mix shift materially impacts pricing, such that the company was expected to have negative free cash flow for a sustained period, Moody's could downgrade the ratings. For further details refer to Moody's Credit Opinion for Emergency Medical Services Corporation on moodys.com. This is the first time Moody's has assigned a rating to Emergency Medical Services Corporation, the borrower in this transaction. The last rating action on AMR Holdco was on March 4, 2010, when Moody's upgraded the company's Corporate Family Rating to Ba1 from Ba2. The company's existing debt was also upgraded at that time and ratings were assigned to the company's new credit facility. Finally, the Speculative Grade Liquidity Rating was upgraded to SGL-1 from SGL-2. The principal methodologies used in this rating were Global Business & Consumer Service Industry published in October 2010 and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Emergency Medical Services Corporation is a leading provider of emergency medical services in the U.S. EMSC operates through two business segments: EmCare is the company's emergency department and hospital physician outsourcing segment and AMR is a leading provider of medical transport in the U.S. For the year ended December 31, 2010, the company reported revenues of approximately $2.9 billion. AMSCAN HOLDINGS: Delays Filing of 2010 Annual Report ---------------------------------------------------- Amscan Holdings, Inc., notified the U.S. Securities and Exchange Commission that it was unable, without unreasonable effort or expense, to file its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2010, by March 31, 2011. This delay, according to the Company, is attributable to the delay on the resolution of certain tax accounts arising from purchase accounting. The Company expects to file its 2010 Form 10-K within the 15 calendar day extension period afforded by SEC Rule 12b-25 under the Securities and Exchange act of 1934, as amended. About Amscan Holdings Based in Road Elmsford, New York, Amscan Holdings, Inc., designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery. The Company also operates retail party goods and social expressions supply stores in the United States under the names Party City, Party America, The Paper Factory, Halloween USA and Factory Card & Party Outlet, and franchises both individual stores and franchise areas throughout the United States and Puerto Rico principally under the names Party City and Party America. The Company is a wholly owned subsidiary of AAH Holdings Corporation. The Company's balance sheet at Sept. 30, 2010, showed $1.71 billion in total assets, $1.17 billion in total liabilities, and stockholders' equity of $524.32 million. * * * Amscan Holdings carries Standard & Poor's Ratings Services' 'B' corporate credit rating, and Moody's Investors Service's 'B2' Corporate Family and Probability of Default Ratings. As reported in the TCR on Nov. 23, 2010, S&P affirmed the 'B' rating after the Company stated that it will use the proceeds from the proposed term loan facility to pay a roughly $310 million special dividend to its equity sponsors and repay borrowings under its existing term loan facility ($342 million outstanding as of Sept. 30, 2010). "The affirmation of Amscan's credit ratings reflect S&P's view that, following payment of its debt-financed dividend payment to its equity sponsors," said Standard & Poor's credit analyst Linda Phelps, "it will have a highly leveraged financial risk profile and its financial policy has become more aggressive." ARAMARK HOLDINGS: Moody's Puts 'B3' Rating on $600MM Sr. Notes -------------------------------------------------------------- Moody's Investors Service assigned a B3 to the $600 million of proposed senior notes of ARAMARK Holdings Corporation and a Ba3 to the proposed amended revolving credit facility of ARAMARK Corporation (ARAMARK). ARAMARK Holdings is the holding company parent of ARAMARK. ARAMARK's B1 Corporate Family Rating, B1 Probability of Default Rating and SGL-2 Speculative Grade Liquidity rating were affirmed and transferred to ARAMARK Holdings, the borrower under the proposed senior notes. The rating outlook is stable. The company plans to use the proceeds from the $600 million note offering and approximately $133 million of borrowings under an amended revolver to fund a $712 million dividend to shareholders and pay related fees and expenses. Moody's assigned these ratings (LGD assessments): ARAMARK Holdings: * $600 million senior unsecured notes due 2016, B3 (LGD 6, 95%); * Corporate Family Rating, B1; * Probability of Default Rating, B1; * Speculative grade liquidity rating, SGL-2; ARAMARK Corporation: * $500 million senior secured amended revolver, Ba3 (LGD 3, 30%). Moody's affirmed these ratings (LGD assessments): ARAMARK Corporation: * $165 million (down from $600 million) senior secured revolver due 2013, Ba3 (to LGD 3, 30% from LGD 3, 34%); * $200 million senior secured letter of credit facility due 2014/2016, Ba3 (to LGD 3, 30% from LGD 3, 34%); * $1.9 billion senior secured term loan due 2014, Ba3 (to LGD 3, 30% from LGD 3, 34%); * $1.4 billion senior secured term loan due 2016, Ba3 (to LGD 3, 30% from LGD 3, 34%) * $1.3 billion senior unsecured 8.5% notes due 2015, B3 (to LGD 5, 78% from LGD 5, 84%); * $500 million senior unsecured floating rate notes due 2015, B3 (to LGD 5, 78% from LGD 5, 84%); * $250 million senior unsecured 5% notes due 2012, B3 (to LGD 6, 92% from LGD 6, 96%). Moody's withdrew these ratings: ARAMARK Corporation: * Corporate Family Rating, B1; * Probability of Default Rating, B1; * Speculative grade liquidity rating, SGL-2. The Corporate Family Rating, Probability of Default Rating and Speculative Grade Liquidity ratings were withdrawn at the ARAMARK Corporation level and assigned at the ARAMARK Holdings Corporation level. Ratings Rationale "The proposed financing and dividend will increase pro forma debt to EBITDA to 6.5 times at Dec. 31, 2010, a leverage level that is high for a B1 rated service company. The affirmation of the B1 CFR reflects Moody's expectation that ARAMARK will reduce debt to EBITDA to the mid 5 times over the next 12 to 18 months", stated Lenny Ajzenman, Senior Vice President. The CFR remains constrained by high financial leverage, modest free cash flow to debt and sensitivity of the company's uniform, business and industry, and sports and entertainment service lines to changes in employment levels and discretionary consumer spending. The ratings are supported by the company's leading market positions, significant geographic, customer and end market diversity, and solid financial performance of the company's less cyclical business lines during the economic downturn. The stable outlook reflects Moody's expectation of low single digit organic revenue growth and a moderate improvement in EBITDA over the next year driven by slowly improving conditions across most service lines and a continued focus on efficiency gains. The ratings could be downgraded if the company fails to materially improve credit metrics over the next 12 to 18 months. Specifically, a downgrade is possible if debt to EBITDA is not reduced to less than 6 times by the end of fiscal 2012 (year ending Sept. 30) or free cash flow to debt is expected to be sustained below 2%. Given the company's high leverage pro forma for the financing and dividend, upward rating momentum in unlikely in the near term absent a de-levering event such as an IPO. Over the intermediate term, the ratings could be upgraded if the company achieves sustained revenue and profitability growth and demonstrates conservative financial policies such that Moody's expects debt to EBITDA to be sustained at or below 4.5 times. The principal methodologies used in this rating were Global Business & Consumer Service Industry published in October 2010, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. ARAMARK, headquartered in Philadelphia, Pennsylvania, is a leading provider of a broad range of managed services to business, educational, healthcare and governmental institutions and sports, entertainment and recreational facilities. The company's uniform and career apparel business is the second largest in the United States and provides both rental and direct marketing services. ARAMARK Holdings Corporation is the holding company parent of ARAMARK. The company is principally owned by a consortium of private equity sponsors (GS Capital Partners, CCMP Capital Advisors, J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LL) and the company's management team. Reported revenues for the 12 month period ended Dec. 31, 2011 were approximately $12.7 billion. ARAPAHOE LAND: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Arapahoe Land Investments, LP 5116 Pine River Trail Castle Rock, CO 80108 Bankruptcy Case No.: 11-80194 Chapter 11 Petition Date: April 5, 2011 Court: U.S. Bankruptcy Court Southern District of Texas (Galveston) Judge: Letitia Z. Paul Debtor's Counsel: Barbara Mincey Rogers, Esq. ROGERS & ANDERSON, PLLC 1415 North Loop West, Suite 1020 Houston, TX 77008 Tel: (713) 868-4411 Fax: (713) 868-4413 E-mail: brogers@ralaw.net Scheduled Assets: $13,475,002 Scheduled Debts: $8,513,138 The petition was signed by Darrell G. Schmidt of DH Land Investments LLC, general partner. Debtor's List of four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Crinion Davis Richardson LLP Goods and Services $5,156 formerly Asby Crinion LLP 17040 El Camino Real, Suite 200 Dannenbaum Engineering Corp. Goods and Services $5,046 3100 West Alabama Houson, TX 77098 Storm Water Solutions Goods and Services $3,738 12200-A Duncan Road Houston, TX 77066 Shelmark Engineering LLC Goods and Services $1,037 8419 E.F. Lowry Expressway, Suite 120 Texas City, TX 77591 ARTECITY MANAGEMENT: To Present Plan for Confirmation on June 22 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida approved the adequacy of the disclosure statement explaining the proposed Second Amended Chapter 11 Plan of Liquidation of Artecity Management LLC and its debtor-affiliates. A hearing is set for June 22, 2011, at 3:00 p.m., at 51 SW First Ave Room 1410, Miami, to consider confirmation of the Debtors' plan. The principal means of funding the Plan are proceeds of the sale of condominium units comprising the Artecity Project that will be collected and distributed to holders of allowed claims on a quarterly basis, with the exception of the Corus Construction Venture LLC (CCV) secured claim, which will be paid upon the closing of unit sales. In addition, the Debtors will also receive exit funding under the Plan to pay the CCV DIP loan, administrative claims and priority claims due on the effective date of the plan, which is estimated to be July 1, 2011, and to fund the completion of construction of two of the five buildings comprising the Artecity Project. The Artecity Project includes 202 condominium units in five multi- level buildings. Under the terms of the Plan: a) Unpaid allowed administrative expense claims, about $305,000, will be paid in full on the effective date of the Plan; b) Any balance remaining under the second tranche of the CCV DIP loan plus interest, about $2 million as of July 1, 2011, will be paid on the effective date; c) Holders of election B priority deposit claims in Class 1 will be paid the allowed amount of their claims of the effective date or, if any claims are not allowed on the effective date, the Debtors will reserve funds sufficient to pay class 1 claims if and when they are deemed allowed; d) The secured claims of the Miami-Dade County Tax Collector in Class 2 will be paid from sale proceeds upon the earlier of the closing of the sales of condominium units or before two years after the delinquency date of ad valorem real estate taxes for unsold units; e) The CCV secured claim in class 3 will be paid an amount equal to the CCV secured claim payment upon the closings of units sales; f) Holders of Class 4a election A secured deposit claims will be paid from prepetition purchase deposits currently held in escrow and receive an amount equal to 10% of the purchase price under their pre-construction agreement, less $1,000, on the effective date, with the Debtors to retain $1,000 plus accrued interest on each deposit; g) Holders of Class 4B election B secured deposit claims will not receive a distribution of the effective date, but will retain their rights to assert their election B secured deposit claims after the effective date; h) Allowed unsecured claims in Class 4 will receive an estimated 33.8% of their allowed claims if the CCV does not elect to have its claims treated under Section 111(b) of the Bankruptcy Code, which will be paid under quarterly pro rata distributions equal to the amount of the unsecured claims payment upon repayment of the exit loan; and i) Equity interest will continue to exist, but holders of equity interest will not have any rights to authorize or direct the Debtors in any manner and all property, voting, and any associated decision-making rights will be extinguished upon the effective date. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?758f A full-text copy of the Plan of Liquidation is available for free at http://ResearchArchives.com/t/s?7590 About Artecity Park LLC Miami Beach, Florida-based Artecity Park LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-31410) on July 26, 2010. Thomas R. Lehman, Esq., at Levine Kellogg Lehman Schneider & Grossman LLP, in Miami, Fla., represents the Debtors as counsel. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. Affiliates Artecity Management IXC (Case No. 10-41406), Artecity Holding Ltd. (Case No. 10-31407), Artepark South Development LLC (Case No. 10-31412, BKC-AJC), Artecity Plaza LLC (Case No. 10-31411), Artecity Governor LLC (Case No. 10-31409), and Park Villas Development LLC (Case No. 10-31413) filed separate Chapter 11 petitions. The cases are jointly administered under Artecity Management, LLC. The Debtors are engaged in the development of a real estate condominium project in Miami Beach, Florida, known as the Aretecity. The Project includes 202 condominium units in five multi-level buildings, together with retail spaces, two pools, a fitness and spa facility, and a parking garage. Artecity Management manages the Debtors' operations and is the general partner of Artecity Holding, Ltd. Artecity Holding owns 100% of the membership interests in Artecity Park LLC, Artecity Plaza LLC, Artecity Governor LLC, Artepark South Development LLC, and Park Villas Development LLC. ASARCO LLC: Clerk Reports on Claims Transfers for February ---------------------------------------------------------- The Bankruptcy Clerk recorded several claims that changed hands in February 2011. They are: Transferor Transferee Claim No. Claim Amt. ---------- ---------- --------- ---------- Adherolt Specialty JMB Capital 325 $15,820,035 Company, Inc. Partners, LP Adherolt Specialty JMB Capital 427 $15,820,035 Company, Inc. Partners, LP Adherolt Specialty JMB Capital 506 $15,820,035 Company, Inc. Partners, LP Adherolt Specialty JMB Capital 656 $15,820,035 Company, Inc. Partners, LP Adherolt Specialty JMB Capital 593 $15,820,035 Company, Inc. Partners, LP Colasanti Specialty JMB Capital 274 -- Services Inc. Partners, LP The Clerk previously recorded the transfer of a claim for $35,000 from BNSF Railway Company to The Seaport Group LLC on May 27, 2010. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) BALM IN GILEAD: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Balm In Gilead For All People, Inc. 1210 S. 61st Street Milwaukee, WI 53214 Bankruptcy Case No.: 11-24699 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Judge: Pamela Pepper Debtor's Counsel: Rollie R. Hanson, Esq. LAW OFFICE OF ROLLIE R. HANSON, S.C. 6737 W. Washington Street, Suite 1420 West Allis, WI 53214-5649 Tel: (414) 321-9733 Fax: (414) 321-9601 E-mail: rollie@hansonlaw.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb11-24699.pdf The petition was signed by Walter L. Bates, president. BATAA/KIERLAND: Court Approves Polsinelli as Bankruptcy Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona authorized Bataa/Kierland, LLC, to employ Polsinelli Shughart PC. PS has agreed to, among other things: a. prepare pleadings and applications; b. conduct examinations incidental to the administration of the Debtor's bankruptcy; c. advise the Debtor of its rights, duties, and obligations under Chapter 11 of the U.S. Bankruptcy Code; and d. formulate and prepare a plan of reorganization and disclosure statement. PS will be paid based on the hourly rates of its professionals: Partners $275-$600 Associates $220-$250 Paralegals $150 Mark W. Roth, Esq., a shareholder at PS, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Bataa/Kierland, LLC, owns and operates a Class "A" office building known as Kierland Corporate Center located at 7047 E. Greenway Parkway, Scottsdale, Arizona. It filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-05850) on March 9, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. BEDFORD SURREY: Case Summary & Largest Unsecured Creditor --------------------------------------------------------- Debtor: Bedford Surrey Oaks, LLC 3001 Crystal Springs Bedford, TX 76021 Bankruptcy Case No.: 11-42046 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: Chad Aubrey Norcross, Esq. CHAD A. NORCROSS, PLLC 5430 Glen Lakes, Suite 260 Dallas, TX 75231 Tel: (214) 368-9300 Fax: (214) 368-9306 E-mail: chad.norcross@norcrosslaw.com Scheduled Assets: $7,048,000 Scheduled Debts: $4,507,500 The list of 20 largest unsecured creditors contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Contemporary Contractors Repairs to units $12,500 P.O. Box 177453 Irving, TX 75017 The petition was signed by Viz Ajro, managing partner. BERNARD L. MADOFF: SIPC Joins Trustee's $6.4-Bil. JPM Battle ------------------------------------------------------------ Bankruptcy Law360 reports that Judge Colleen McMahon of the U.S. District Court for the Southern District of New York ruled Monday that the Securities Investor Protection Corp. can challenge JPMorgan Chase & Co.'s bid to move to district court a $6.4 billion lawsuit from the trustee liquidating Bernard L. Madoff's investment company. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping $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 $6.85 billion in claims by investors has been allowed, with $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. BJH JOHNSON: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: BJH Johnson Properties, Ltd. 921 Amber Lane Oak Point, TX 75062 Bankruptcy Case No.: 11-32346 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Howard Marc Spector, Esq. SPECTOR & JOHNSON, PLLC 12770 Coit Road Banner Place, Suite 1100 Dallas, TX 75251 Tel: (214) 365-5377 Fax: (214) 237-3380 E-mail: hspector@spectorjohnson.com Estimated Assets: $0 to $50,000 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 George L. Johnson, III, partner. BLUEGREEN CORP: Incurs $21.7-Mil. Net Loss in Fourth Quarter ------------------------------------------------------------ Bluegreen Corporation reported a net loss of $21.71 million on $76.31 million of total operating revenue for the three months ended Dec. 31, 2010, compared with a net loss of $15.78 million on $90.03 million of total operating revenue for the same period during the prior year. John M. Maloney Jr., President and Chief Executive Officer of Bluegreen, commented, "We were pleased with Bluegreen's progress in 2010. During 2010, we continued to focus on the development of our fee-based services business. This is reflected by, among other things, a 19% increase in VOI system-wide sales driven by incremental sales on behalf of our fee-based clients and a 56% increase in total fee-based services revenues. We began earning commissions in our sales and marketing fee-based services in July 2009 and as of Dec. 31, 2010, we had entered into six contracts to provide fee-based services, up from four as of Dec. 31, 2009. We believe our fee-based service business will require significantly less capital for growth as compared to our historical traditional timeshare business." 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 press release announcing the fourth quarter and full year 2010 financial results is available for free at http://is.gd/KXMWmz 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. The Company reported 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. BLYTH INC: Moody's 'B2' Corporate Unaffected by Midwest CBK Sale ---------------------------------------------------------------- Moody's said that Blyth, Inc.'s proposed sale of Midwest CBK, its North American premium wholesale seasonal and home decor business for an undisclosed amount will not likely affect the company's B2 Corporate Family Rating or stable outlook. Blyth announced that MVP Group International, based in Charleston, South Carolina, would buy Midwest CBK, maker of Colonial Candles. MVP Group manufactures and markets various private label and branded candles and home fragrance products under brand names such as Harry & David and Paula Deen candles, and Green Matters cleaning products. Midwest-CBK represents the majority of Blyth's $160 million in sales (last 12 month period ending October 31, 2010) wholesale business excluding its Sterno foodservice brand, which it will retain. "The benefits of the transaction for Blyth is the elimination of an unprofitable, highly working capital intensive, seasonal business and will allow the company to focus on its other consumer brands in the direct selling and catalog segment," says Moody's Vice President and Senior Credit Officer Janice Hofferber. "The divestment completes the company's multi-year strategy to focus on its direct selling business, which generated a reported $600 million in operating income with a 9.5% operating margin in the last 12 months compared with a $3 million operating loss and margin of -1.9% for its wholesale segment," adds Ms. Hofferber. Furthermore, Moody's believe that the sale will improve Blyth's liquidity position because seasonal working capital needs will be greatly reduced. This is critical given Blyth no longer has a committed revolving credit facility and needs to rely on its significant cash balances to fund operations. We expect that Blyth's cash balances for the period ending January 2011 should improve significantly when it reports its year-end result later this week. This is consistent with its historical periodic cash buildup following strong holiday season sales. Blyth's B2 Corporate Family Rating is dependent on the company maintaining its relatively strong credit metrics, excellent liquidity and modest debt balance of approximately $111.3 million, offset by organic sales declines in its core direct selling candle business, modest size, exposure to volatile input costs and the highly discretionary nature of its product portfolio. Moody's will continue to monitor free cash flow and financial policies including the company maintaining its conservative dividend policy given the large concentration of ownership by the Goergen family. Moody's last rating action on Blyth was on September 15, 2010, when the company's ratings were downgraded, including its Corporate Family Rating to B2 from B1 with a stable outlook. The principal methodologies used in rating Blyth, Inc., were Global Packaged Goods Industry published in July 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Greenwich, Connecticut, Blyth, Inc., designs, manufactures and markets a line of candles and home fragrance products, tabletop heating products, candle accessories and home decor and giftware products under brand names such as PartyLite, Miles Kimball, Colonial Candle, Walter Drake and Sterno. Products are sold through home parties, catalogs, internet and retailers in North America, Europe and Australia. The company's three segments, direct selling, catalog & internet, and wholesale account for approximately 66%, 18%, and 16% of annualized revenues, respectively. Total sales for the last 12 month period ending October 31, 2010, were approximately $920 million. BLOCKBUSTER INC: Selects DISH Network as Winning Bidder ------------------------------------------------------- Blockbuster Inc. announced Wednesday that the Company has selected an offer of $320.6 million for substantially all of Blockbuster's assets presented by DISH Network Corporation as the successful bid following a robust auction conducted under the supervision of the U.S. Bankruptcy Court for the Southern District of New York. Under the terms of the DISH purchase agreement, the Blockbuster estate is to receive approximately $227 million in cash distributions. The auction process was designed to achieve the highest and best offer for the Company's assets and was conducted in accordance with Section 363 of the U.S. Bankruptcy Code. Pursuant to the Bid Procedures Order previously entered by the Bankruptcy Court, Cobalt Video Holdco LLC has been selected as the Back Up Bidder in the event the DISH transaction is not consummated. Cobalt's bid was for a purchase price of $308.1 million with a cash payment to the Blockbuster estate of approximately $210 million. Blockbuster believes the sale represents the best means of maximizing value for the Company's stakeholders. A hearing before the Bankruptcy Court to approve the sale is scheduled to occur on Thursday, April 7, 2011. Jim Keyes, Chairman and Chief Executive Officer, commented, "We are delighted that a strategic bidder, DISH Network, recognized the value not only of Blockbuster's assets, but also of our people, our store base and multi-channel offering. A robust auction process with multiple parties participating helped to ensure that our stakeholders will receive the highest possible value. We look forward to a successful conclusion of the sale in the near future and express our appreciation to customers, employees, and suppliers for their support throughout this process." About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA, BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. Blockbuster Inc. and 12 U.S. affiliates initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan (Bankr. S.D.N.Y. Case No. 10-14997) on Sept. 23, 2010. It disclosed assets of $1 billion and debts of $1.4 billion at the time of the filing. Blockbuster's non-U.S. operations and its domestic and international franchisees, all of which are legally separate entities, were not included in the filings and are not parties to the Chapter 11 proceedings. Martin A. Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. A steering group of senior secured noteholders is represented by James P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley Austin LLP. U.S. Bank National Association as trustee and collateral agent for the senior secured notes is represented by David McCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter & Hampton LLP. BDO Consulting is the financial advisor for U.S. Bank. Lenders led by Wilmington Trust FSB are providing the DIP financing. The DIP Agent is represented by Peter Neckles, Esq. and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York. The Official Committee of Unsecured Creditors has retained Cooley LLP as its counsel. The Bank of New York Trust Company, N.A., as trustee under that certain indenture, dated as of Aug. 20, 2004, with respect to the 9% Senior Subordinated Notes due 2012 issued by Blockbuster Inc., is represented by Edward P. Zujkowski, Esq., at Emmet, Marvin & Martin, LLP. Cobalt Video Holdco LLC, the purchaser, is represented by Mark Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP. The Ad Hoc Studio Committee of Blockbuster Inc. et al. is represented byRobert J. Feinstein, Esq., at Pachulski Stang Ziehl & Jones LLP. BOB REAL ESTATE: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: BOB Real Estate Holdings, LP 1203 Dragon St. Dallas, TX 75207 Bankruptcy Case No.: 11-32246 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: Mark I. Agee, Esq. 5401 N. Central Expressway, Suite 220 Dallas, TX 75205 Tel: (214) 320-0079 Fax: (214) 320-2966 E-mail: dallasbankruptcylawyer@gmail.com Scheduled Assets: $1,360,590 Scheduled Debts: $2,714,091 A list of the Company's nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb11-32246.pdf The petition was signed by Turner Duncan, manager of general partner. BORDERS GROUP: Files Rule 2015.3 Report --------------------------------------- Borders Group Inc. and its units filed with the Bankruptcy Court on March 30, 2011, a report on the value, operations and profitability of entities in which they hold a substantial or controlling interest, as required by Rule 2015.3 of the Federal Rules of Bankruptcy Procedure. The Debtors hold a substantial or controlling interest in these entities: % of Ownership Interest Entity Held by Debtors ------ ----------------------- Borders/JGE Joint Venture, LLC 74% Borders Fulfillment, Inc. 100% Borders Bookstore (M) SDN.BHD 100%, Indirect Ownership BGI Franchise PTY Limited 100%, Indirect Ownership BGI(UK), Limited 100% Borders Superstores (UK), Limited 100% Bookshop Acquisitions, Limited 20%, Indirect Ownership The estimated net book value of the Debtors' ownership interest in each of the Entity as of January 29, 2011, is $0. The Debtors also appended in the reported balance sheets, statements of income as of and for the year ended Jan. 29, 2011, and general notes supplementing all of the financial statements. Balance Sheet for Direct Subsidiaries of Borders Group, Inc. As of January 29, 2011 Total Total Liabilities Entity Assets and Equity ------ -------- ----------------- Borders/JGE Joint Venture, LLC $126,463 $126,463 Borders Fulfillment, Inc. - - Borders Bookstore (M) SDN.BHD - - BGI Franchise PTY Limited - - BGI(UK), Limited - - Borders Superstores (UK), Limited - - Bookshop Acquisitions, Limited - - Statement of Income for Direct Subsidiaries of Borders Group, Inc. Entity Net Income ------ ---------- Borders/JGE Joint Venture, LLC ($479,864) Borders Fulfillment, Inc. 16,228,517 Borders Bookstore (M) SDN.BHD (13,870) BGI Franchise PTY Limited (52,096) BGI(UK), Limited 145,716,832 Borders Superstores (UK), Limited (3,935,957) Bookshop Acquisitions, Limited - Borders Bookstores (M) SDN.BHD is a former retailer based in Malaysia that is implementing a voluntary dissolution. BGI Franchise PTY Limited ceased operations as of January 2011. Borders Fulfillment, Inc. is an inactive company. BGI(UK), Limited and Borders Superstores (UK) Limited are also inactive companies that formerly owned UK-based retailers. Bookshop Acquisitions, Limited, a former UK retailer, was placed in administration on November 26, 2009. A full-text copy of the Rule 2015.3 report is available for free at http://bankrupt.com/misc/Borders_Mar30Rule2015.3Report.pdf About Borders Group Borders Group is a leading operator of book, music and movie superstores and mall-based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders- branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. Two of Borders' flagship stores (along with other less prominent stores) are located in Manhattan. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e- commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner. Esq, Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. National law firm Lowenstein Sandler has been appointed to represent the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group has sought approval to sell merchandise and owned furniture, fixtures and equipment located at approximately 200 of their stores and, at Borders' option, up to 75 of 136 potential other stores, through store closing sales. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000) BORDERS GROUP: Random House & Penguin Have $116-Mil. in Claims -------------------------------------------------------------- Simon & Schuster, Inc., Random House, Inc. and Penguin Group Inc. filed with the Bankruptcy Court last month notices of substantial ownership of Borders Group, Inc. claims. Random House asserts that it beneficially owns a $37,288,534 claim against the Debtors for invoices from July 22, 2010, through January 7, 2011. Penguin reveals that it owns a claim worth $44,904,776 against the Debtors for invoices dated between January 29, 2009, and February 24, 2011. Specifically, Simon & Schuster disclosed that it beneficially owns a $36,223,773 claim against the Debtors for invoices between August 19, 2010 and January 4, 2011. LeBow Gamma Limited Partnership also filed a notice of substantial ownership of Borders stock. LeBow said it owns shares of Borders common stock and options to acquire shares of Borders common stock, but redacted the amount of shares owned. About Borders Group Borders Group is a leading operator of book, music and movie superstores and mall-based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders- branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. Two of Borders' flagship stores (along with other less prominent stores) are located in Manhattan. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e- commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner. Esq, Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. National law firm Lowenstein Sandler has been appointed to represent the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group has sought approval to sell merchandise and owned furniture, fixtures and equipment located at approximately 200 of their stores and, at Borders' option, up to 75 of 136 potential other stores, through store closing sales. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000) BOUNDARY BAY: Chapter 11 Case Transferred to Judge Robert N. Kwan ----------------------------------------------------------------- Judge Mark S. Wallace has been removed from Boundary Bay Capital, LLC's Chapter 11 bankruptcy case. Judge Robert N. Kwan will take Judge Wallace's place. About Boundary Bay Irvine, California-based Boundary Bay Capital, LLC, a California LLC, fka Covenant Bancorp, Inc., filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-14298) on March 28, 2011. Hutchison B. Meltzer, Esq., at Weiland, Golden, Smiley, Wang Ekvall & Strok, LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. Affiliate Cartwright Properties, LLC, filed a separate Chapter 11 petition on June 9, 2010 (Bankr. C.D. Calif. Case No. 10-17823). BOUNDARY BAY: Section 341(a) Meeting Scheduled for April 28 ----------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of Boundary Bay Capital, LLC's creditors on April 28, 2011, at 1:00 p.m. The meeting will be held at Room 1-157, 411 W Fourth Street, Santa Ana, California. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Boundary Bay Irvine, California-based Boundary Bay Capital, LLC, a California LLC, fka Covenant Bancorp, Inc., filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-14298) on March 28, 2011. Hutchison B. Meltzer, Esq., at Weiland, Golden, Smiley, Wang Ekvall & Strok, LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. Affiliate Cartwright Properties, LLC, filed a separate Chapter 11 petition on June 9, 2010 (Bankr. C.D. Calif. Case No. 10-17823). BUILDERS FIRSTSOURCE: Moody's Assigns 'Caa2' Corporate ------------------------------------------------------ Moody's Investors Service assigned Caa2 Corporate Family Rating and Caa2 Probability of Default Rating to Builders FirstSource, Inc. In a related rating action Moody's assigned a Caa2 rating to the proposed $250 million senior secured notes due 2019. Proceeds from the notes issuance will be used to refinance approximately $165 million of existing debt, to pay about $14.5 million of debt repayment premium and related fees and expenses with the balance used for general corporate purposes. A speculative grade liquidity rating of SGL-4 is assigned as well. The rating outlook is stable. These ratings/assessments were affected by this action: * Corporate Family Rating assigned Caa2; * Probability of Default assigned Caa2; and, * Senior secured notes due 2019 assigned Caa2 (LGD4, 59%). The company is assigned a speculative grade liquidity of SGL-4. Ratings Rationale The Caa2 Corporate Family Rating results from very weak operating performance due to ongoing pressures in the residential new construction end market, the primary driver of BLDR's revenues. Although some areas within BLDR's primary geographic markets of North Carolina and South Carolina may have some pockets of strength, overall, Moody's does not expect substantial improvement in new housing starts in 2011 relative to 2010. The company's products are highly price sensitive to competition and ongoing market conditions, making it difficult for it to pass on substantial price increases. It is also exposed to fluctuating costs associated with lumber, its major raw material, adding to earnings volatility. For 2010, adjusted operating margins are inadequate at negative 7.6% and free cash flow-to-debt is insufficient at negative 15.3% (adjusted per Moody's methodology). The company's inability to generate positive earnings will result in very weak credit metrics for the foreseeable future and will require cash to fund operating shortfalls. Moody's believes that BLDR's ongoing restructuring initiatives continue to be insufficient, leaving its cost position untenably high at current volumes. Notwithstanding efforts to rationalize its facilities and reduce staff, BLDR's credit metrics remain untenably weak. For example, Moody's projects, in a best case scenario, that it will be a few years before the company is able to generate sufficient free cash flow to cover (EBITDA - CAPEX)/interest expense at least 1.0 times (adjusted per Moody's methodology). BLDR's SGL-4 speculative grade liquidity rating reflects Moody's view that the company will need to use its cash on hand to make up for anticipated operating shortfalls and its working capital and capital expenditure needs. Assuming placement of the proposed notes and extension of the company's revolving credit facility at anticipated levels, cash on hand would be at least $195 million on a pro forma basis. Combined with pro forma revolver availability of about $40 million at FYE10, BLDR will have some financial flexibility over the intermediate term. The stable outlook is predicated on the successful syndication of the proposed notes, leaving BLDR with no near-term maturities and adequate liquidity of at least $235 million on a pro forma basis at FYE10 to fund future cash shortfalls for the next few years. Moody's does not anticipate favorable rating pressures over the intermediate term until the company's end markets improve. BLDR needs to demonstrate its ability to generate positive levels of earnings and free cash flow, resulting in improved credit metrics and a better liquidity profile. Over the longer term, (EBITDA - CAPEX)/interest expense improving towards 0.75 times could result in positive rating actions. Moody's believes that BLDR's must preserve a certain level of liquidity to maintain itself as a viable operating entity, limiting its cash burn. While some cash on hand is expected to fund operating shortfalls, combined cash on hand and revolver availability nearing $100 million would indicate that operating losses are higher than anticipated and would likely result in negative rating actions. The Caa2 rating assigned to the proposed $250 million senior secured notes due 2019, the same rating as the corporate family rating, reflects their position as the preponderance of debt in BLDR's capital structure. These notes will have a first lien on the company's non-current assets and a second lien on its current assets. The last rating action was on September 3, 2009, at which time Moody's downgraded BLDR's Probability of Default Rating to Caa3 from Caa1. The principal methodologies used in this rating were Global Manufacturing Industry published in December 2010, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Builders FirstSource, Inc., headquartered in Dallas, Texas, supplies and manufactures structural and related building products to homebuilders for the residential new construction and repair and remodeling sectors in the United States. Its products include prefabricated components, windows and exterior doors, lumber and lumber sheet goods, millwork products, and other building products and services. JLL Partners and Warburg Pincus (collectively "Sponsors"), through their respective affiliates own approximately 50% of BLDR. Revenues for 2010 totaled approximately $700 million. BYSYNERGY LLC: Committee Asks Court to Convert Case to Chapter 7 ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Bysynergy LLC asks the U.S. Bankruptcy Court for the District of Arizona to convert the Chapter 11 case to a Chapter 7 liquidation proceeding to protect the rights of all creditors in any remaining assets of the Debtor. A hearing is set for April 8, 2011, at 9:00 a.m., at U.S. Magistrate Courtroom, 123 N. San Francisco St., Flagstaff, Arizona, to consider the Committee's request. The Committee relates that under the terms of the Dec. 17, 2010 stipulated order previously entered by the Court, Verdant Technology Solutions LLC was to deposit $3.1 million by end of business on Jan. 14, 2011, to fund a post-dismissal claims process to be supervised by the Creditors Committee. Three days before that deadline, certain sub-group of unsecured creditors filed a letter listing 23 names of people who now purported to object to the stipulated order despite that the order was already fully noticed to them, approved and non-appealable. According to the Committee, the letter had the desired effect: "Nervous about allegations that VTS had somehow done something wrong in reaching terms of the final Stipulated Order, VTS did not fund. VTS has told counsel for the UCC that they are still considering possibilities of funding a plan of reorganization or perhaps another stipulated order if the objections were resolved. However, at this time, VTS remains undecided, and the Debtor remains in the same limbo it has been in for over two years, with no ongoing operation and no tangible, viable exit strategy." "Therefore, the only logical step to close this case is either dismissal or conversion," notes the Committee. About Bysynergy, LLC Based in Sedona, Arizona, Bysynergy, LLC is a single purpose, single asset Delaware limited liability company, which primarily owns 103 single family dtached Finally Platted Lots in Yavapai County, known as Bella Terra on Oak Creek. Bysynergy filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 08-07680) on June 25, 2008. Jonathan P. Ibsen, at Jaburg & Wilk, PC, represents the Debtor as its counsel. Steven J. Brown, Esq., at Steve Brown & Associates, LLC, represents the Official Committee of Unsecured Creditors as counsel. When Bysynergy, LLC filed for protection from its creditors, it estimated assets of between $10 million and $50 million, and debts of between $10 million and $50 million. CAPMARK FINANCIAL: To Auction Management Stake in $1-Bil. Fund -------------------------------------------------------------- Bankruptcy Law360 reports that Capmark Financial Group Inc. won bankruptcy court approval Monday to auction its management stake in a $1 billion real estate debt investment fund, with a Pacific Coast Capital Partners LLC unit providing a $7.5 million stalking horse bid. Capmark will hold an auction for its equity in the fund, Capmark Structured Real Estate Partners LP, on April 29, attorneys for the commercial mortgage lender said at a hearing, Law360 reports. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- provides financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On Oct. 25, 2009, Capmark Financial and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors in Capmark Financial Group's cases tapped Kramer Levin Naftalis & Frankel LLP as its counsel and JR Myriad LLC as its commercial real estate business advisors. The Committee also retained Cutler Pickering Hale and Dorr LLP as its attorneys for the special purpose of providing legal services in connection with Federal Deposit Insurance Corporation matters. Protech Holdings C LLC, an affiliate of Capmark, filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-12387) on July 29, 2010. The Debtor estimated assets and debts in excess of $1 billion as of the filing date. Since filing for Chapter 11, Capmark completed three sales to generate more than $1 billion in cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. CAPTAIN VAN DYKE: Plan Confirmation Hearing Continued to May 19 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida set the hearing to consider confirmation of the Plan of Reorganization filed by Captain Van Dyke Trust to May 19, 2011, at 1:30 p.m. The hearing was originally set for March 17, 2011, but was pushed back to May. A full-text copy of the Plan dated Sept. 13, 2010, may be accessed for free at http://bankrupt.com/misc/CaptVanDyke_PLan.pdf A full-text copy of the Disclosure Statement explaining the Plan, which gained the Court's conditional approval on Sept. 20, 2010, may be accessed for free at: http://bankrupt.com/misc/CaptVanDyke_DS.pdf Plan Terms The Debtors' Plan, as amended on Sept. 27, 2010, provides for distributions to creditors with allowed claims over time. Holders of equity interests will receive no distributions until allowed claims have been paid pursuant to the terms of the Plan. It is anticipated that distributions will be funded principally with Cash in the Debtors' bank accounts and funds generated by future business operations. Claims under the Plan are classified into six classes: Class Description ----- ----------- 1 Priority Claims 2 Secured Claim of iStar FM Loans, LLC 3 Mechanics Lien Claims 4 Pappas Retail Leasing & Management 5 General Unsecured Claims 6 Equity Interests The Plan provides for a 100% distribution to its secured creditor with interest of over five years, a 90% distribution to Mechanics Lien Claims within one year, and a 90% distribution to its unsecured creditors over five years. Moreover, the Plan provides that the Debtors will continue to exist after the effective date of the Plan as separate entities. From and after the Effective Date, Clark D. East will continue to serve as the Trustee of Captain Van Dyke, and the Member of Treasure Chest, LLC. With the exception of iStar, all voting creditors have voted in favor of the Plan. A full-text copy of the Debtors' Ballot Tabulation may be accessed for free at: http://bankrupt.com/misc/CaptVanDyke_BallotSummary.pdf A copy of revised projections attesting to the feasibility of the Plan may be accessed for free at: http://bankrupt.com/misc/CaptVanDyke_IncomeBudget.pdf The Debtors' confirmation affidavit and memorandum in support of Plan confirmation dated January 7, 2011, may be accessed for free at http://bankrupt.com/misc/CaptVanDyke_ConfAffidavit.pdf About Captain Van Dyke Saint Petersburg, Florida-based Captain Van Dyke Trust, dba Van Dyke Commons, aka Van Dyke Shopping Center, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-14973) on June 23, 2010. Russell M. Blain, Esq., at Stichter, Riedel, Blain & Prosser, assists the Company in its restructuring effort. Verona Law Group, P.A., serves as the Company's Special Landlord/ Tenant Counsel. Michael Healy and Michael Moecker & Associates serve as the Company's Expert Witness. The Company estimated its assets and debts at $10,000,001 to $50,000,000 as of the Chapter 11 filing. CAPTAIN VAN DYKE: Obtains Interim Approval to Use Cash Collateral ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida issued an order on March 24, 2011, allowing Captain Van Dyke Trust's use of cash collateral pending a final hearing on the request to be conducted by the Court on May 19, 2011, at 1:30 p.m. A status conference on all other pending matters has also been scheduled for May 19. Judge K. Rodney May held that the Debtors' continued use of Cash Collateral is granted on an interim basis to the extent and on the terms and conditions set forth in the Court's prior orders. About Captain Van Dyke Saint Petersburg, Florida-based Captain Van Dyke Trust, dba Van Dyke Commons, aka Van Dyke Shopping Center, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-14973) on June 23, 2010. Russell M. Blain, Esq., at Stichter, Riedel, Blain & Prosser, assists the Company in its restructuring effort. Verona Law Group, P.A. serves as the Company's Special Landlord/ Tenant Counsel. Michael Healy and Michael Moecker & Associates serve as the Company's Expert Witness. The Company estimated its assets and debts at $10,000,001 to $50,000,000 as of the Chapter 11 filing. CAR WASH: Involuntary Chapter 11 Case Summary --------------------------------------------- Alleged Debtor: Car Wash Resources, L.P. 17194 Preston Rd. #102-326 Dallas, TX 75248 Bankruptcy Case No.: 11-41101 Involuntary Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Eastern District of Texas (Sherman) Petitioner'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 Creditor who signed the Chapter 11 petition: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Glast, Phillips & Murray P.C. Legal Fees owed $56,532 c/o James S. Robertson, III, authorized representative of the petitioner. 14801 Quorum Dr. Suite 500 Dallas, TX 75254 CARGO TRANSPORTATION: Taps Ruden McClosky as Special Counsel ------------------------------------------------------------ Cargo Transportation Services Inc. asks the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Ruden McClosky P.A. as its special counsel to provide legal services and advice in connection with legal matters arising in connection with employment law matters, corporate law matters relating to transaction that form the basis of any plan of reorganization. The firm will bill the Debtor pursuant to the hourly rates of its professionals: Partners $380-$450 Associates $250-$315 Paralegals $115-$150 The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Cargo Transportation Sunrise, Florida-based Cargo Transportation Services, Inc., provides transportation services to clients nationwide, including customized consolidation, distribution, logistics and warehousing services. It has 140 employees and averages $100,000,000 in gross revenue per year. Cargo Transportation filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-00432) on Jan. 12, 2011. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, serves as the Debtor's bankruptcy counsel. The Official Committee of Unsecured Creditors has tapped Hunton & Williams LLP as its counsel. The Debtor disclosed $11,728,760 in assets, and $11,869,375 in liabilities in its schedules. CELCIUS HOLDINGS: Sherb & Co. Raises Going Concern Doubt -------------------------------------------------------- Celcius Holdings, Inc., filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Sherb & Co., LLP, in Boca Raton, Fla., expressed substantial doubt about Celcius Holdings' ability to continue as a going concern. The independent auditors noted that the Company has suffered losses from operations, and has an accumulated deficit and net cash used in operations of $14,222,786 for the year ended Dec. 31, 2010. The Company reported a net loss of $19.5 million on $8.3 million of revenue for 2010, compared with a net loss of $7.8 million on $5.9 million of revenue for 2009. At Dec. 31, 2010, the Company's balance sheet showed $4.3 million in total assets, $6.8 million in total liabilities, and a stockholders' deficit of $2.5 million. A complete text of the Form 10-K is available for free at: http://is.gd/IxMtfG Boca Raton, Fla.-based Celcius Holdings, Inc., is engaged in the development, marketing, sale and distribution of "functional" calorie-burning fitness beverages under the Celsius(R) brand name. CHOA VISION: Disclosure Statement Hearing on May 17 --------------------------------------------------- CHOA Vision LLC delivered to the U.S. Bankruptcy for the Central District of California a proposed Chapter 11 plan of reorganization and an explanatory disclosure statement. A hearing is set for on May 17, 2011, at 2:00 p.m., to consider the adequacy of the disclosure statement. The Debtor can begin soliciting votes on the Plan, and scheduled a confirmation hearing after obtaining approval of the disclosure statement. According to the Debtor, under the Plan, the timing of distributions to many creditors is determined by the "effective date," which is expected to be July 1, 2011. The Plan is funded through the use of cash collateral, if any, and balance of fund from the Debtor's reserve account. On the Effective Date, the Plan pays an amount estimated to be $110,922.00, which includes payment of all administrative expenses and initial plan payments to unclassified claims and Classes 1, 2 and 4. Holders of secured claims (Classes 1 and 2) will receive quarterly payments beginning July 1, 2011 and ending April 1, 2016, with interest on principal and interest. Unsecured creditors (Class 4) owed a total of $1,260,265 will have the option of (i) receiving quarterly payments of $3,000 beginning July 1, 2011 and ending in April 1, 2016, with 0% interest rate, and (ii) receiving a lump sum payment of $40,000 on July 1, 2016. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?7591 A full-text copy of the Plan Of Reorganization is available for free at http://ResearchArchives.com/t/s?7592 About Choa Vision CHOA Vision LLC owns the Crowne Plaza hotel just north of downtown Hartford, Connecticut. The 350-room hotel is being managed by Packard Hospitality Group. CHOA is owned by the Christian Hotel Owners Association, a group of primarily Korean American investors led by Chan Soo Cho. CHOA Vision filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-44798) on Aug. 18, 2010. Michael Jay Berger, Esq., at the Law Offices Of Michael Jay Berger, in Beverly Hills, California, serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. CJY INVESTMENT: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: CJY Investment, L.L.C. 2750 E. George Bush Highway Richardson, TX 75082 Bankruptcy Case No.: 11-41079 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Judge: Brenda T. Rhoades Debtor's Counsel: Eun-Hyuk Yi, Esq. LAW OFFICE OF NATHAN YI 3010 LBJ Freeway, Suite 1237 Dallas, TX 75234 Tel: (972) 888-6070 Fax: (972) 888-6071 E-mail: nathanyi.lawoffice@gmail.com Scheduled Assets: $2,600,000 Scheduled Debts: $3,406,898 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txeb11-41079.pdf The petition was signed by Chun W. Chung, member. CONVERTED ORGANICS: CCR LLP Raises Going Concern Doubt ------------------------------------------------------ Converted Organics Inc. filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. CCR LLP, in Glastonbury, Connecticut, expressed substantial doubt about Converted Organics' ability to continue as a going concern. The independent auditors noted that the Company has an accumulated deficit at Dec. 31, 2010, and has suffered significant net losses and negative cash flows from operations. The Company reported a net loss of $50.7 million on $3.5 million of revenues for 2010, compared with a net loss of $21.1 million on $2.1 million of revenues for 2009. At Dec. 31, 2010, the Company's balance sheet showed $19.6 million in total assets, $16.4 million in total liabilities, and stockholders' equity $3.2 million. A complete text of the Form 10-K is available for free at: http://is.gd/ea7uTF Boston, Mass.-based Converted Organics Inc. utilizes innovative clean technologies to establish and operate environmentally friendly businesses. Converted Organics currently operates in three business areas: Organic Fertilizer, Industrial Wastewater Treatment, and Vertical Farming. COPANO ENERGY: 83% Sign Indenture to Eliminate Note Defaults ------------------------------------------------------------ Copano Energy, L.L.C., announced on April 5, 2011, that it had received, as of 5:00 p.m., New York City time, on April 4, 2011, tenders and consents from holders of approximately 83% in aggregate principal amount of its outstanding 8.125% Senior Notes due 2016 (CUSIP No. 217203 AB4) in connection with its previously announced tender offer and consent solicitation for such notes, which commenced on March 22, 2011 and is described in the Offer to Purchase and Consent Solicitation Statement dated March 22, 2011. Copano intended to execute on April 5, 2011, a supplemental indenture with respect to the indenture governing the 2016 Notes that will eliminate most of the covenants and certain events of default applicable to the 2016 Notes. The Supplemental Indenture will not become operative until a majority in aggregate principal amount of the 2016 Notes has been purchased by Copano pursuant to the terms of the Offer to Purchase. Copano's obligation to accept for purchase, and to pay for, any 2016 Notes pursuant to the Tender Offer is subject to a number of conditions that are set forth in the Offer to Purchase, including the closing of Copano's previously announced public offering of $360 million of 7.125% Senior Notes due 2021. Subject to the satisfaction or waiver of these conditions, all holders who validly tendered (and did not validly withdraw) their 2016 Notes prior to the Consent Expiration will receive total consideration equal to $1,044.00 per $1,000 principal amount of the 2016 Notes accepted for purchase, which includes a consent payment of $3.375 per $1,000 principal amount of the 2016 Notes accepted for purchase, plus accrued and unpaid interest on such notes to the payment date. Holders who tender their 2016 Notes after the Consent Expiration and prior to the expiration of the Tender Offer will be entitled to receive consideration equal to $1,040.625 per $1,000 principal amount of the 2016 Notes accepted for purchase, plus any accrued and unpaid interest on such notes to the payment date. Holders of 2016 Notes tendered after the Consent Expiration will not receive a consent payment. The Tender Offer will expire at 11:59 p.m., New York City time, on April 18, 2011, unless extended by Copano in its sole discretion. Any 2016 Notes not tendered and purchased pursuant to the Tender Offer will remain outstanding, and the holders will be subject to the terms of the Supplemental Indenture even though they did not consent to the amendments. Copano has engaged J.P. Morgan Securities LLC as the dealer manager for the Tender Offer. About Copano Energy Headquartered in Houston, Texas, Copano Energy LLC (Nasdaq: CPNO) -- http://www.copanoenergy.com/-- is a midstream natural gas company with natural gas gathering, intrastate pipeline and natural gas processing assets in the Texas Gulf Coast region and in Central and Eastern Oklahoma. * * * As reported in the Troubled Company Reporter on March 24, 2011, Moody's Investors Service assigned a 'B1' (LGD5, 74%) rating to Copano Energy, L.L.C.'s proposed $360 million senior unsecured notes due 2021. The 'Ba3' Corporate Family Rating and the negative outlook were not affected by this action. Copano plans to use the proceeds of the new notes to finance the tender offer for up $332 million of its 8.125% senior notes due 2016. CORNERSTONE WORLD: Prepares to Sell Assets at Auction ----------------------------------------------------- KTIV.com reports that Cornerstone World Outreach is set to be put on the auction block. Cornerstone will have a year after the sale to find other means to get them out of debt, and stop the sale. Cornerstone owes over $3 million to a Cincinnati, Ohio, contractor, for construction of this worship center. According to the report, no deal has been hammered out just yet, so the parties' names won't be divulged. According to KTIV, one place Cornerstone won't be getting funding: the bank. Pastor Cary Gordon says the church's only option is to go the non-traditional route to getting a loan. The Woodbury County Sheriff's Department says Cornerstone's assets, worth around $8 million, will be up for auction May 3rd, including the worship center, a recording studio, and land they were going to build houses on. Possible Bankruptcy Filing As reported in the March 30, 2011 edition of the Troubled Company Reporter, Cornerstone World Outreach, owner of a 118- acre property in Sioux City, Iowa, may seek bankruptcy protection. Cornerstone's new worship center will go on the auction block in May as part of a sheriff's sale to settle a dispute between the Sioux City church and an Ohio building company. KTIV.com said that according to a Cornerstone official, Pastor Doug Daniels, after the sheriff's sale, the church will have six to 12 months to come to an agreement with a creditor to keep their land. If an agreement cannot be reached, they will file for Chapter 11 bankruptcy, which could potentially save their property from falling into someone else's hands. CREDIT ONE: Moss Krusick Raises Going Concern Doubt --------------------------------------------------- Credit One Financial, Inc., filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Moss, Krusick & Associates, LLC, in Winter Park, Florida, expressed substantial doubt about Credit One's ability to continue as a going concern. The independent auditors noted that the Company had a net loss from continuing operations and an accumulated deficit. The Company reported net income of $60,977 on $5,932 of advertising revenue for 2010, compared with a net loss of $498,993 on zero revenue for 2009. At Dec. 31, 2010, the Company's balance sheet showed $2.96 million in total assets, $145,606 in total liabilities, and stockholders' equity of $2.81 million. A complete text of the Form 10-K is available for free at: http://is.gd/Ezvls6 New York-based Credit One Financial, Inc.'s main business, until Nov. 30, 2010, was processing and distribution of mineral products, primarily graphite products, in China. On Aug. 26, 2010, E&M International Limited, the newly established, wholly-owned subsidiary of the Company, entered into an advertising agreement with Macau Lotus Satellite TV Media Limited, pursuant to which Lotus TV authorizes E&M as its exclusive agent to operate all of its advertising businesses. The term of this agreement is ten years from Sept. 1, 2010, to Aug. 31, 2020. CROSS COUNTY: Section 341(a) Meeting Scheduled for May 6 -------------------------------------------------------- The U.S. Trustee for Region 6 will convene a meeting of Cross County National Associates, LP's creditors on May 6, 2011, at 10:30 a.m. The meeting will be held at 2000 E. Spring Creek Parkway, Plano, Texas. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Plano, Texas-based Cross County National Associates, LP, dba Cross County Mall, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Case No. 11-40915) on March 28, 2011. John P. Lewis, Jr., Esq., who has an office in Dallas, Texas, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. CRYSTALLEX INTERNATIONAL: Gets Delisting Notice from NYSE Amex -------------------------------------------------------------- Crystallex International Corporation has received notice, dated April 5, 2011, that the NYSE Amex LLC intends to proceed with an application to the United States Securities and Exchange Commission to remove the Company's common shares from listing on the Exchange. This determination, which the Company intends to appeal, was made in light of the Exchange staff's position that the Company is not in current compliance with certain standards for continued listing on the Exchange set forth in Part 10 of the NYSE Amex LLC Company Guide. Specifically, the Exchange staff believes that the Company is not in compliance with (i) Section 1003(c)(i) of the Company Guide on the basis that the Company has "substantially discontinued the business that it conducted at the time it was listed or admitted to trading" with the Exchange, and is no longer an operating company for purposes of continued listing on the Exchange, and (ii) Section 1002(c) of the Company Guide, which states that "the Exchange, as a matter of policy, will consider the suspension of trading in, or removal from listing or unlisting trading of, any security when, in the opinion of the Exchange the issuer has sold or otherwise disposed of its principal operating assets, or has ceased to be an operating company". The Exchange staff has made this determination based on information disclosed by the Company in its Annual Information Form for the year ended Dec. 31, 2010, dated March 31, 2011 (which forms a part of the Company's Annual Report on Form 40-F). Specifically, the Exchange staff referred to events surrounding the termination of the Company's Mine Operating Contract by the Corporacion Venezolana de Guayana on Feb. 3, 2011 because of the lack of progress to the Las Cristinas Project for more than one year and for reasons of "opportunity and convenience"; the Company's filing of a request for arbitration against Venezuela before the Additional Facility of the World Bank's Centre for Settlement of Investment Disputes, which is currently pending; the Company's commencement of an orderly handover of the Las Cristinas Project including, but not limited to, the security for the site, personnel and social projects; and the fact that the Company's main asset is the pending arbitration, and that no other properties are currently owned or operated by the Company and mine exploration has ceased. The Exchange staff also noted that over the last 30 trading days, the price per share of the Company's common shares has averaged US$0.15 per share and as of April 1, 2011, it closed at US$0.16 per share. Based on this low selling price, along with the information referred to above, the Exchange staff believe that the Company's common shares are not suitable for continued listing. In accordance with Sections 1009(d) and 1203 of the Company Guide, within seven calendar days of the date of the receipt of the notice from the Exchange, the Company plans to appeal the Exchange staff's determination by requesting an oral hearing before a Listing Qualifications Panel. There can be no assurance that the Company's request for continued listing following the appeal will be granted. The Company reasonably believes that there is value in the Company and is continuing to take steps to seek, through the arbitration process, full restitution by Venezuela of its investments, including the MOC, and the issuance of the Authorization to Affect Natural Resources permit from the Ministry of Environment and Natural Resources and compensation for interim losses suffered, or, alternatively full compensation for the value of its investment in an amount in excess of US$3.8 billion. While pursuing the arbitration claim, the Company is continuing to seek settlement alternatives with the government of Venezuela, which would result, if completed successfully, in value to the Company's stakeholders. The Company's common shares will continue to trade on the Toronto Stock Exchange and will recommence trading on the Exchange while the Company's appeal is pending. The Company will continue its normal course of business operations notwithstanding the status of its Exchange listing. About Crystallex International Based in Toronto, Canada, Crystallex International Corporation (TSX: KRY) (NYSE Amex: KRY) -- http://www.crystallex.com/-- is a Canadian-based company, which has been granted the Mine Operating Contract to develop and operate the Las Cristinas gold properties located in Bolivar State, Venezuela. The Company's balance sheet at Sept. 30, 2010, showed US$63.62 million in total assets, US$108.10 million in total liabilities, and a stockholders' deficit of US$44.48 million. "As at Sept. 30, 2010, the Company had working capital of US$12.50 million, including cash of $21.47 million. Management estimates that these funds will be sufficient to meet the Company's obligations and budgeted expenditures for the foreseeable future, but will not be sufficient to repay the US$100.00 million notes payable due on December 23, 2011." CYPHERMINT INC: Service on Russian Corporations Was Adequate ------------------------------------------------------------ WestLaw reports that a Chapter 7 trustee's service of process on two Russian corporations that were the defendants in the trustee's avoidance proceedings, which was accomplished through registered mail in accordance with the laws of the Russian Federation, as authorized by the bankruptcy court, was sufficient and proper. Service of process pursuant to the Hague Service Convention was rendered impossible due to unilateral action by the Russian Federation's central authority, and the corporations were aware of the pending adversary proceedings, had retained local counsel to appear in those proceedings to represent their interests, and would have ample opportunity to defend themselves consistent with due process. In re Cyphermint, Inc., --- B.R. ----, 2011 WL 718512 (Bankr. D. Mass.). About Cyphermint Cyphermint, Inc. -- http://www.cyphermint.com/-- a privately owned New York corporation, headquartered in Marlborough, Mass., says it's a leading provider of secure business-to-business electronic payment solutions. Three creditors filed an involuntary chapter 7 petition (D. Mass. Case No. 08-42682) against Cyphermint, Inc., on August 21, 2008, together with an emergency motion to appoint an independent chapter 7 trustee. The Honorable Joel B. Rosenthal granted that emergency motion and quickly approved the U.S. Trustee's appointment of Joseph Baldiga, Esq., at Mirick, O'Connell, DeMallie & Lougee, LLP, as the Chapter 7 Trustee pursuant to 11 U.S.C. Sec. 303(g). The Chapter 7 Trustee is represented by Christine E. Divine, Esq., and Gina M. Barbieri, Esq., at Mirick, O'Connell, DeMallie & Lougee, LLP, at 100 Front Street Worcester, Massachusetts. DBSI INC: Foley & Lardner, Young Conaway Move Malpractice Suit -------------------------------------------------------------- Bankruptcy Law360 reports that Foley & Lardner LLP and Young Conaway Stargatt & Taylor LLP won their bid on Thursday to move from Idaho to Delaware a malpractice suit they face from the trustee of a liquidated affiliate of commercial real estate investment firm DBSI Inc. Judge B. Lynn Winmill of the U.S. District Court for the District of Idaho denied the law firm defendants' motion to dismiss the case but granted their bid to transfer, according to Law360. About DBSI Inc. Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates were engaged in numerous commercial real estate and non-real estate projects and businesses. On Nov. 10, 2008, and other subsequent dates, DBSI and 180 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-12687). DBSI estimated assets and debts between $100 million and $500 million as of the Chapter 11 filing. Lawyers at Young Conaway Stargatt & Taylor LLP represent the Debtors as counsel. The Official Committee of Unsecured Creditors tapped Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' notice claims and balloting agent. Joshua Hochberg, a former head of the Justice Department fraud unit, served as an Examiner and called the seller and servicer of fractional interests in commercial real estate an "elaborate shell game" that "consistently operated at a loss" in his report released in October 2009. McKenna Long & Aldridge LLP was counsel to the Examiner. On Sept. 11, 2009, the Honorable Peter J. Walsh entered an Order appointing James R. Zazzali as Chapter 11 trustee for the Debtors' estates. On Oct. 26, 2010, the trustee of DBSI Inc. won court confirmation of its Chapter 11 plan of liquidation, paving the way for it to pay creditors and avoid years of expensive litigation over its complex web of affiliates. The plan, which was declared effective Oct. 29, 2010, was jointly proposed by DBSI's unsecured creditors and the bankruptcy trustee in charge of DBSI and its 170-plus affiliates. Pursuant to DBSI Inc.'s confirmed Chapter 11 plan, the DBSI Real Estate Liquidating Trust was established as of the effective date and certain of the Debtors' assets, including the Debtors' ownership interest in Florissant Market Place was transferred to the RE Trust. Mr. Zazzali and Conrad Myers were appointed as the post-confirmation trustees. Messrs. Zazzali and Myers are represented by lawyers at Blank Rime LLP and Gibbons P.C. DJO FINANCE: Moody's Puts 'B3' Rating to $300MM Note Offering ------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to DJO Finance LLC's (DJO) proposed offering of $300 million of senior unsecured notes due 2018. Proceeds are expected to fund the acquisition of Dr. Comfort for $255 million, repay $25.4 million of outstanding revolver draw and related fees and expenses associated with the financing. Dr. Comfort is a specialty manufacturer of therapeutic shoes and hosiery products servicing the diabetic market, with total fiscal 2010 sales of about $72 million. Moody's also affirmed the other ratings of DJO, including the B2 Corporate Family and Probability of Default Ratings. The outlook is stable. This is a summary of Moody's rating actions. DJO Finance LLC: Ratings assigned: * $300 million senior unsecured notes due 2018 at B3 (LGD 4, 68%) Ratings affirmed/LGD assessments revised: * Corporate Family Rating at B2; * Probability of Default Rating at B2; * Speculative Grade Liquidity Rating at SGL-3; * $100 million senior secured revolving credit facility due 2013 at Ba2 (LGD 2, 17%) from (LGD 2, 21%); * $928 million senior secured term loan due 2014 at Ba2 (LGD 2, 17%) from (LGD 2, 21%); * $680 million senior unsecured notes due 2014 at B3 (LGD 4, 68%) from (LGD 5, 70%); * $300 million senior subordinated notes due 2017 at Caa1 (LGD 6, 93%) from (LGD6, 94%). Ratings Rationale DJO's B2 Corporate Family Rating continues to reflect the company's considerable financial leverage, limited interest expense coverage and modest free cash flow generation. Credit metrics did not improved significantly in fiscal 2010 and margins have deteriorated somewhat, mostly due to a change in the company's sales mix. However, the ratings also capture DJO's ongoing cost savings and organic improvement in revenue growth. The stable rating outlook reflects Moody's expectation that achieved cost savings and an improving economic environment will help support stable profitability and moderate cash flow generation in future periods. Moody's also that expects DJO will use a portion of free cash flow to further deleverage from current levels. Moody's could consider downgrading the rating if the company is not able to meaningfully deleverage through improvements in operating performance, if there is a weakening of the company's liquidity profile, such as sustained negative free cash flow or leverage approaching 7 times debt-to-EBITDA. Given the weak financial metrics, Moody's does not foresee an upgrade of the ratings in the near term. However, Moody's could consider a ratings upgrade if adjusted debt to EBITDA was expected to decline below 5.5 times or free cash flow to debt increased above 8% on a sustained basis. These levels would be more consistent with the upper end of the single B rating category under Moody's Global Medical Products and Device Rating Methodology. The principal methodologies used in this rating were Global Medical Products & Device Industry published in October 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. DJO Finance LLC (DJO), through its subsidiaries, is a provider of orthopedic devices used in rehabilitation, pain management and physical therapy. The company also develops, manufactures and distributes a broad range of reconstructive joint implant products. DJO has been owned by private equity sponsors Blackstone Capital partners V LP since 2006. Revenues were approximately $966 million for the twelve months ending Dec. 31, 2010. EFD, LTD.: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: EFD, Ltd. dba Blanco San Miguel fdba Blanco San Miguel, Ltd. 13200 Bee Cave Parkway Austin, TX 78738 Bankruptcy Case No.: 11-10846 Chapter 11 Petition Date: April 5, 2011 Court: U.S. Bankruptcy Court Western District of Texas (Austin) Judge: Craig A. Gargotta Debtor's Counsel: Eric J. Taube, Esq. HOHMANN TAUBE & SUMMERS, LLP 100 Congress Avenue, Suite 1800 Austin, TX 78701 Tel: (512) 472-5997 Fax: (512) 472-5248 E-mail: erict@hts-law.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by S. Frank Bright, manager of general partner. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Driftwood Land Co - Loans Loan $723,342 13200 Bee Cave Parkway Austin, TX 78738 Driftwood Land Co - Loans Loan $463,812 13200 Bee Cave Parkway Austin, TX 78738 Driftwood Land Co - Loans Loan $282,789 13200 Bee Cave Parkway Austin, TX 78738 Willaim J. Maddux Exempt Trust Loan $250,000 13200 Bee Cave Parkway Austin, TX 78738 Connecticut Avenue Properties, Inc Services $96,250 Dillocopter LLC -- $75,368 Land Sculptors Inc Services $73,469 Ranchhes and Rivers Realty Services $72,457 Driftwood Land Co - Grazing Lease Loan $62,102 CLMI Trust - Loans Loan $35,828 Ranch 122, LLC Loan $28,228 Maxwell Locke & Ritter, LLP Services $12,206 Blanco County Appraisal Property Taxes $7,430 Whiteside Insurance / S&W Insurance Premium $5,088 Premium Financ Burnet County Appraisal District Property Taxes $4,673 Stone & Bruce PC -- $4,073 Ranchhes and Rivers Realty Services $2,257 Stone & Bruce PC -- $2,109 Sheiness, Scott, Grossman, & Cohn -- $2,104 LLP Ranchhes and Rivers Realty -- $1,924 ELM STREET: Court Sets June 15 Claims Bar Date ---------------------------------------------- The Hon. Peter Carroll of the U.S. Bankruptcy Court for the Central District of California set June 15, 2011, as the deadline for creditors of Elm Street Partners LLC to file proofs of claim. Santa Monica, California-based Elm Street Partners, LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11- 20225) on March 9, 2011. James R. Selth, Esq., at Weintraub & Selth, APC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. DOC'S JAGS: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Doc's Jags, Inc. dba World of Jaguars 23047 N. 15TH LANE PHOENIX, AZ 85027 Bankruptcy Case No.: 11-09147 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: George B. Nielsen Jr. Debtor's Counsel: Dennis J. Wortman, Esq. DENNIS J. WORTMAN, P.C. 202 East Earll Drive, Suite 490 PHOENIX, AZ 85012 Tel: (602) 257-0101 Fax: (602) 279-5650 E-mail: djwortman@azbar.org Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Peter Scadron, president. EARTH GROUP: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Earth Group, LP aka Earth Group Investment LLC dba Earth Group, LP dba Bellaire Village 14634 Bellaire Blvd, Suite c Houston, TX 77083 Bankruptcy Case No.: 11-32915 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Letitia Z. Paul Debtor's Counsel: Robert Hohenberger, Esq. ROBERT HOHENBERGER, P.C. 2500 Wilcrest, Suite 107 Houston, TX 77042 Tel: (713) 680-9454 Fax: (713) 680-1264 E-mail: rhohenberger-ecf@law-tex.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Anthony Chanh Le, manager. EAU TECHNOLOGIES: HJ & Associates Raises Going Concern Doubt ------------------------------------------------------------ EAU Technologies, Inc., filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. HJ & Associates, LLC, in Salt Lake City, Utah, expressed substantial doubt about EAU Technologies' ability to continue as a going concern. The independent auditors noted that the Company has a working capital deficit as well as a deficit in stockholders equity. The Company reported net income of $2.4 million on $697,555 of revenues for 2010, compared with a net loss of $2.2 million on $724,510 of revenues for 2009. At Dec. 31, 2010, the Company's balance sheet showed $2.8 million in total assets, $6.9 million in total liabilities, and a stockholders' deficit of $4.1 million. A complete text of the Form 10-K is available for free at: http://is.gd/RjBe7B Kennesaw, Ga.-base EAU Technologies, Inc., is in the business of developing, manufacturing and marketing equipment that uses water electrolysis to create non-toxic cleaning and disinfecting fluids for food safety applications as well as dairy drinking water. ECF NORTH RIDGE: Case Summary & 22 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: ECF North Ridge Associates, LP 6731 Bridge Street, Suite 373 Fort Worth, TX 76112 Bankruptcy Case No.: 11-42017 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: Robert A. Simon, Esq. BARLOW GARSEK & SIMON, LLP 3815 Lisbon Street Fort Worth, TX 76107 Tel: (817) 731-4500 Fax: (817) 731-6200 E-mail: rsimon@bgsfirm.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 22 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb11-42017.pdf The petition was signed by Neil Crouch, authorized agent. EMMIS COMMUNICATIONS: Amalgamated Gadget Holds 1.9% Equity Stake ---------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Amalgamated Gadget, L.P., disclosed that it beneficially owns 693,698 shares of the Common Stock, which constitutes approximately 1.9% of the 34,174,528 shares of the Common Stock deemed to be outstanding thereunder. Amalgamated may be deemed to be the beneficial owner of 272,050 shares of the Preferred Stock, which constitutes approximately 9.7% of the 2,809,170 shares of the preferred stock deemed to be outstanding thereunder. A full-text copy of the filing is available for free at http://is.gd/oxaEnc About Emmis Communications 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. ENCORIUM GROUP: Delays Filing of 2010 Annual Report --------------------------------------------------- Encorium Group, Inc., informed the U.S. Securities and Exchange Commission that it needs additional time to file its Annual Report on Form 10-K for the period ended Dec. 31, 2010, as the Company's independent registered public accounting firm has not completed their review for the period ended Dec. 31, 2010. About Encorium Group Wayne, Pa.-based Encorium Group, Inc. (Nasdaq: ENCO) is a clinical research organization (CRO) that engages in the design and management of complex clinical trials for the pharmaceutical, biotechnology and medical device industries. The Company was initially incorporated in August 1998 in Nevada. In June 2002, the Company changed its state of incorporation to Delaware. In November 2006, the Company expanded its international operations with the acquisition of its wholly-owned subsidiary, Encorium Oy, a CRO founded in 1996 in Finland, which offers clinical trial services to the pharmaceutical and medical device industries. Since 2006 the Company has conducted substantially all of its European operations through Encorium Oy and its wholly-owned subsidiaries located in Denmark, Estonia, Sweden, Lithuania, Romania, Germany and Poland. On July 16, 2009, the Company sold substantially all of the assets relating to the Company's U.S. line of business to Pierrel Research USA, Inc., the result of which the Company no longer has any employees or significant operations in the United States. The Company's balance sheet as of June 30, 2010, showed US$10.0 million in total assets, US$10.6 million in total liabilities, and a stockholders' deficit of US$620,000. As reported in the Troubled Company Reporter on April 23, 2010, Deloitte and Touche, LLP, in Philadelphia, Pa., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's recurring losses from operations, current available cash, and anticipated level of capital requirements. ENERTECK CORP: Delays Filing of 2010 Annual Report -------------------------------------------------- EnerTeck Corporation notified the U.S. Securities and Exchange Commission that its Annual Report on Form 10-K for the year ended Dec. 31, 2010 cannot be filed within the prescribed time period because the Company requires additional time for compilation and review to insure adequate disclosure of certain information required to be included in the Form 10-K. The Company's Annual Report on Form 10-K will be filed on or before the 15th calendar day following the prescribed due date. About Enerteck Corporation EnerTeck Corporation (OTC BB: ETCK.OB) -- http://www.enerteck.net/ -- was incorporated in 1935 and is based in Stafford, Texas. The Company develops, acquires and manufactures combustion enhancement, emission reduction and other performance improvement technologies for the heavy duty transportation industry. EnerTeck's flagship product, EnerBurn(TM), is a diesel fuel specific combustion catalyst, delivered to the engine via the diesel fuel, to improve the combustion rate of the fuel. The Company's balance sheet at Sept. 30, 2010, showed $1.8 million in total assets, $2.1 million in total liabilities, and a stockholders' deficit of $335,743. During the nine months ended Sept. 30, 2010, and the year ended Dec. 31, 2009, the Company incurred net losses of $1.4 million and $2.1 million, respectively. In addition, at the nine months ended Sept. 30, 2010, and year ended Dec. 31, 2009, the Company has an accumulated deficit of $22.9 million and $21.5 million, respectively. "These conditions raise substantial doubt about the Company's ability to continue as a going concern." ENRON CORP: Beats Appeal Over Bank's $50M Ch. 11 Claim ------------------------------------------------------ Bankruptcy Law360 reports that 576 National City Bank, an indenture and property trustee in Enron Corp.'s bankruptcy proceedings in New York, failed Thursday in an appeal to use its most favored nation status in the case to extract $50 million in claims. Judge Richard J. Sullivan of the U.S. District Court for the Southern District of New York backed the bankruptcy court's March 2009 determination, according to Law360. About Enron Corp. Based in Houston, Texas, Enron Corporation filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 01-16033) on Dec. 2, 2001, following controversy over accounting procedures that caused Enron's stock price and credit rating to drop sharply. Enron hired lawyers at Togut Segal & Segal LLP; Weil, Gotshal & Manges LLP, Venable; Cadwalader, Wickersham & Taft, LLP for its bankruptcy case. The Official Committee of Unsecured Creditors in the case tapped lawyers at Milbank, Tweed, Hadley & McCloy LLP. The Debtors won confirmation of their Plan in July 2004, and the Plan was declared effective on Nov. 17, 2004. After approval of the Plan, the new board of directors decided to change the name of Enron Corp. to Enron Creditors Recovery Corp. to reflect the current corporate purpose. ECRC's sole mission is to reorganize and liquidate certain of the operations and assets of the "pre- bankruptcy" Enron for the benefit of creditors. ECRC has been involved in the MegaClaims Litigation, an action against 11 major banks and financial institutions that ECRC believes contributed to Enron's collapse; the Commercial Paper Litigation, an action involving the recovery of payments made to commercial paper dealers; and the Equity Transactions Litigation, which ECRC filed against Lehman Brothers Holdings, Inc., UBS AG, Credit Suisse and Bear Stearns to recover payments made to the four banks on transactions involving Enron's stock while the company was insolvent. EXPRESSWAY DEV'T: Can Hire Marion Kordic as Real Estate Appraiser ----------------------------------------------------------------- Expressway Development, LLC, sought and obtained authorization from the Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma to employ Marion Kordic & Associates to provide commercial real estate appraisal services. The Debtor will pay Marion Kordic $150 per hour for its services. Marion Kordic, President of Marion Kordic, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Oklahoma City, Oklahoma-based Expressway Development, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-12088) on April 9, 2010. Charles E. Wetsel, Esq., at Robertson & Williams, represents the Debtor. The Company estimated assets and debts at $10 million to $50 million. EXPRESSWAY DEV'T: Gets Court's Nod to Hire Hayes Brokerage ---------------------------------------------------------- Expressway Development, LLC, sought and obtained authorization from the Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma to employ Hayes Brokerage Co., Inc., to provide commercial real estate brokerage services. Hayes will be paid for its brokerage services on a commission basis. For direct sales, Hayes will be paid a commission of 5% of the gross sales price. A direct sale is a sale in which the ultimate buyer is originated by Hayes. For indirect sales, Hayes will be paid a commission of 3% and a 3% commission will be paid to the originating broker on the gross sales price. These commission rates are in keeping with the standard commission arrangement in the commercial brokerage business. Don Hayes, president of Hayes, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Oklahoma City, Oklahoma-based Expressway Development, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-12088) on April 9, 2010. Charles E. Wetsel, Esq., at Robertson & Williams, represents the Debtor. The Company estimated assets and debts at $10 million to $50 million. EXPRESSWAY DEV'T: Has Court OK to Hire Smith Carney as Accountant ----------------------------------------------------------------- Expressway Development, LLC, sought and obtained authorization from the Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma to employ Smith, Carney & Co., P.C., to provide tax, accounting, and bookkeeping services to the Debtor. Smith Carney will be paid at these hourly rates: Accountant $175 Staff $100-$115 Bookkeeping $85 Joseph W. Hornick, an accountant and managing officer of Smith Carney, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Oklahoma City, Oklahoma-based Expressway Development, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-12088) on April 9, 2010. Charles E. Wetsel, Esq., at Robertson & Williams, represents the Debtor. The Company estimated assets and debts at $10 million to $50 million. EXPRESSWAY DEV'T: Has Court's OK to Hire Randel Shadid as Attorney ------------------------------------------------------------------ Expressway Development, LLC, sought and obtained authorization from the Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma to employ Randel Shadid, Attorney at Law, to provide legal services related to planning commission and presentations to Edmond City Council to the Debtor. Mr. Shadid will charge the Debtor $225 per hour for all services rendered. Mr. Shadid, who has an office in Edmond, Oklahoma, assured the Court that he is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Oklahoma City, Oklahoma-based Expressway Development, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-12088) on April 9, 2010. Charles E. Wetsel, Esq., at Robertson & Williams, represents the Debtor. The Company estimated assets and debts at $10 million to $50 million. EXTENDED STAY: Hotel Chain HQ Moves to Charlotte ------------------------------------------------ HVM LLC, the company that manages Extended Stay Hotels, is planning to move the hotel chain's corporate headquarters to Charlotte, North Carolina, according to a March 31, 2011 report by Spartanburg Herald Journal. The company plans to create 170 jobs in Charlotte over the next three years and will invest $3.6 million in its headquarters facility, Spartanburg Herald Journal reported, citing a statement from N.C. Governor Beverly Perdue's office. The state of North Carolina incentivized Extended Stay's move. The company is eligible to receive a grant equal to 75% of the state personal income withholding taxes derived from the creation of new jobs for each of the 12 years in which it meets performance goals. That could potentially yield the company $4.7 million, Spartanburg Herald Journal reported. The corporate headquarters will provide administrative support, including human resources, financial administration, advertising and marketing and guest services, according to a March 30, 2011 report by WSOC-TV. While wages for the 170 jobs will vary by job function, the overall average for the new jobs will be $83,580 a year, not including benefits, WSOC-TV reported. The move will be effective in August 2011 and will affect approximately 50 employees. Some support staff will remain in Spartanburg, News Channel 7 reported. "After careful consideration, we have determined that, as a leader in the hospitality industry, the company's growing business and commercial needs will be better served from corporate headquarters in a major, national market and transportation hub," HVM Chief Executive Officer Gary DeLapp said. "A travel industry corporate headquarters is a perfect fit for North Carolina, with our steady and growing flow of visitors, corporate travelers and vacationers," Governor Perdue said in a statement. Extended Stay and certain of its affiliates filed petitions under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York on June 15, 2009. Seventy-four of Extended Stay's affiliates got confirmation of their joint bankruptcy plan in July 2010, and eventually emerged from bankruptcy protection in October 2010. About Extended Stay Extended Stay is the largest owner and operator of mid-price extended stay hotels in the United States, holding one of the most geographically diverse portfolios in the lodging sector with properties located across 44 states (including 11 hotels located in New York) and two provinces in Canada. As a result of acquisitions and mergers, Extended Stay's portfolio has expanded to encompass over 680 properties, consisting of hotels directly owned or leased by Extended Stay or one of its affiliates. Extended Stay currently operates five hotel brands: (i) Crossland Economy Studios, (ii) Extended Stay America, (iii) Extended Stay Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe Studios. Extended Stay Inc. and its affiliates filed for Chapter 11 on June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M. Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, in New York, represents the Debtors. Lazard Freres & Co. LLC is the Debtors' financial advisors. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors tapped Gilbert Backenroth, Esq., Mark T. Power, Esq., and Mark S. Indelicato, Esq., at Hahn & Hessen LLP, in New York, as counsel. Extended Stay had assets of $7.1 billion and debts of $7.6 billion as of the end of 2008. Extended Stay Inc. in October successfully emerged from Chapter 11 protection. An investment group including Centerbridge Partners, L.P., Paulson & Co. Inc. and Blackstone Real Estate Partners VI, L.P. has purchased 100 percent of the Company for $3.925 billion in connection with the Plan of Reorganization confirmed by the Bankruptcy Court in July. Bankruptcy Creditors' Service, Inc., publishes Extended Stay Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings undertaken by Extended Stay Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). FAIRFIELD SENTRY: Sues Abu Dhabi Fund to Claw Back $300 Million --------------------------------------------------------------- Bankruptcy Law360 reports that Fairfield Sentry Ltd., the largest feeder fund implicated in Bernard L. Madoff's Ponzi scheme, lodged a suit in New York on Monday seeking to claw back $300 million in redemption payments made during the fraud to Abu Dhabi's state- owned investment fund. The money used to redeem Abu Dhabi Investment Authority's shares in Sentry were - unbeknownst to Sentry - the misappropriated assets of other Madoff investors, and must be recovered, according to Law360. About Fairfield Sentry Fairfield Sentry is being liquidated under the supervision of the Commercial Division of the High Court of Justice in the British Virgin Islands. It is one of the funds owned by the Fairfield Greenwich Group, an investment firm founded in 1983 in New York City. Fairfield Sentry and other Greenwich funds had among the largest exposures to the Bernard L. Madoff fraud. Fairfield Sentry Limited, filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-13164) in June 2010. Greenwich Sentry, L.P., and an affiliate filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-16229) on Nov. 19, 2010, hoping to settle lawsuits filed against it in connection with its investments with Bernard L. Madoff. On May 18, 2009, Irving H. Picard, the trustee liquidating the estate of Mr. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC, filed a lawsuit against Fairfield Sentry and Greenwich, seeking the return of $3.55 billion that Fairfield withdrew from Madoff during the period from 2002 to Madoff's arrest in December 2008. Since 1995, the Fairfield funds invested about $4.5 billion with BLMIS. Mr. Picard claims that Fairfield knew or should have known about the fraud give that it received from BLMIS unrealistically high and consistent annual returns of between 10% and 21% in contrast to the vastly larger fluctuations in the S&P 100 Index. FARLEY'S & SATHERS: S&P Assigns 'B' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'B' corporate credit rating to Round Lake, Minn.-based Farley's & Sathers Candy Co. Inc. "We also assigned our 'B+' issue-level ratings to Farley's & Sathers $60 million revolving credit facility due 2016, and $170 million term loan B due 2018. The recovery rating is '2', indicating our expectation of substantial (70% to 90%) recovery in the event of a payment default. The company used proceeds to refinance existing debt. The outlook is stable. We estimate Farley's & Sathers has about $181 million in total debt outstanding, including revolver borrowings at close," S&P stated. "The ratings on Farley's & Sathers reflect our view of the company's vulnerable business profile and highly leveraged financial profile, given the company's narrow product focus, limited international presence, and high debt leverage," said Standard & Poor's credit analyst Alison Sullivan. Farley's & Sathers states it is the third-largest player within the fragmented U.S. nonchocolate confectionery industry. Historically, Farley's & Sathers' acquisitions and organic expansion have helped drive growth. However, operating performance weakened in 2010. Sales declined 2.3% in 2010, and estimated lease adjusted EBITDA declined about 3.7% from cost inflation and lower volume, despite productivity initiatives. "We believe operating performance could decline further in the first half of 2011 from rising commodity costs such as sugar, corn syrup, and fuel," said Ms. Sullivan. "However, we also expect performance to improve in the second half of the year as the effects of net price increases and productivity are realized." FAYETTEVILLE MARKETFAIR: Court Dismisses Chapter 11 Case -------------------------------------------------------- The Hon. Randy D. Doub of the U.S. Bankruptcy Court for the District of North Carolina dismissed the Chapter 11 bankruptcy case of Fayetteville Marketfair Investors, LLC, pursuant to an order authorizing the stipulation the Debtor signed with Stefan Johansson, Jackson Ward, and Capmark Finance, Inc., for the compromise and settlement of their mutual claims, was entered on Nov. 23, 2010. The pertinent terms of the stipulation proposed to surrender the Debtor's property to Capmark, deem the Debtor's plan and disclosure statement withdrawn, and the parties were to exchange mutual releases. The stipulation also provided for the termination of the automatic stay with respect to Capmark, who will be permitted to exercise all of its remedies under the loan documents and against the collateral. About Fayetteville Marketfair Miami, Florida-based Fayetteville Marketfair Investors, LLC, filed for Chapter 11 protection (Bankr. E.D. N.C. Case No. 09-10859) on Dec. 14, 2009. William P. Janvier, Esq., and Samantha J. Younker, Esq., at Janvier Law Firm, PLLC, in Raleigh, North Carolina, represent the Debtor. The Company estimated assets and debts at $10 million to $50 million. FENTURA FINANCIAL: James Wesseling Had 7,177 Share at Dec. 29 ------------------------------------------------------------- In a Form 5 filing with the U.S. Securities and Exchange Commission, James Wesseling, a director at Fentura Financial Inc., disclosed that he acquired 892 shares of common stock of the Company on Dec. 29, 2010 at $1.75 per share. At the end of the transaction, Mr. Wesseling beneficially owned 7,177.8768 shares. About Fentura Financial Based in Fenton, Michigan, Fentura Financial, Inc., is a registered bank holding company, owns and controls The State Bank, Fenton, Michigan, and West Michigan Community Bank, Hudsonville, Michigan, both state nonmember banks, and two nonbank subsidiaries. Fentura Financial shares are traded over the counter under the FETM trading symbol. The Company's balance sheet at Dec. 31, 2010 showed $424.22 million in total assets, $408.17 million in total liabilities and $16.05 million in total shareholders' equity. As reported in the Troubled Company Reporter on March 22, 2010, Crowe Horwath LLP, in Grand Rapids, Mich., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred net losses in 2009 and 2008, primarily from higher provisions for loan losses, and non-compliance with the higher capital requirements of the Consent Orders. Fentura Financial, Inc., entered into a Written Agreement with the Federal Reserve Bank of Chicago on November 4, 2010. Among other things, the Written Agreement requires that the Company obtain the approval of the FRB prior to paying a dividend; requires that the Company obtain the approval of the FRB prior to making any distribution of interest, principal, or other sums on subordinated debentures or trust preferred securities; prohibits the Company from purchasing or redeeming any shares of its stock without the prior written approval of the FRB; requires the submission of a written capital plan by January 3, 2011, and; requires the Company to submit cash flow projections for the Company to the FRB on a quarterly basis. The Company reported a net loss of $5.38 million on $13.87 million of interest income for the year ended Dec. 31, 2010, compared with a net loss of $16.98 million on $16.24 million of interest income during the prior year. FIRSTSOURCE INC: S&P Affirms Junk Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'CCC+' corporate credit rating on Dallas-based Builders FirstSource Inc. The rating outlook is negative. "At the same time, we assigned a 'CCC' (one notch lower than the corporate credit rating) issue-level rating to the company's proposed $250 million senior secured notes due 2019. The recovery rating is '5', indicating our expectation of modest (10% to 30%) recovery for lenders in the event of a payment default. The ratings are based on preliminary terms and conditions," S&P stated. "The company will use proceeds from the proposed transaction to redeem its 2012 and 2016 notes, to repay amounts outstanding under its asset-based revolving credit facility -- excluding $15.9 million in outstanding letters of credit -- to pay the related fees and expenses associated with the offering, and for working capital and general corporate purposes," said Standard & Poor's credit analyst Tobias Crabtree. In addition, the company intends to amend and extend the existing asset-based revolving credit facility commitment, which is not rated," S&P said. "The ratings affirmation reflects our belief that Builders FirstSource will likely continue to generate negative free cash flow over the upcoming year, given the ongoing weakness in new residential housing markets. While the company's liquidity position, which we currently view as adequate, is likely to somewhat improve due to the increased cash balances following the planned refinancing and the extended maturity of its revolving credit facility, it will likely continue to rely primarily on its cash balances to meet its interest and operating obligations until total housing starts improve at least 35% from 2010's level. If housing starts were to remain at its recent historically low levels, we believe the proposed refinancing would allow Builders FirstSource to fund its anticipated cash shortfall for approximately two years. The ratings also reflect what Standard & Poor's Ratings Services considers to be the company's vulnerable business profile given its significant exposure to highly cyclical new residential construction markets and its narrow end-market focus and geographic scope," S&P elaborated. S&P continued, "The negative rating outlook reflects our concerns about the continued weak operating environment and the effect this will have on the company's operating performance and cash flow. For the next year, we expect the company to use cash on hand to fund its cash flow shortfall, which will result in some depletion in cash balances. Specifically, we expect the company's cash burn could be in excess of $55 million, assuming negative adjusted EBITDA that is only modestly improved from 2010's level. In addition, we do not expect the company to be able to borrow meaningful additional amounts under the ABL facility because of the low level of the eligible borrowing base." "We could lower the ratings if the company was not able to successfully complete its proposed refinancing or if the new residential construction market fails to modestly improve from its recent depressed levels, resulting in higher than projected operating losses and potentially causing a steeper decline in total liquidity to below $100 million," S&P said. "A positive rating action seems unlikely in the next year given our expectations that total housing starts are unlikely to meaningfully improve to more than 750,000 units, or a level that we believe Builders FirstSource could begin to generate positive EBITDA. However, one could occur during 2012 if a greater-than- expected recovery in total housing starts were to result in the company being able to sustain its interest coverage at 1x or more," S&P added. FLORIDA GAMING: Incurs $4.84 Million Net Loss in 2010 ----------------------------------------------------- Florida Gaming Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $4.84 million on $4.11 million of Jai-Alai Mutuel revenue for the year ended Dec. 31, 2010, compared with a net loss of $4.87 million on $6.85 million of Jai-Alai Mutuel revenue during the prior year. The Company's balance sheet at $16.65 million in total assets, $21.81 million in total liabilities and $5.16 million in total stockholders' deficit. King + Company, PSC, in Louisville, Kentucky, noted that the Company has suffered recurring losses from operations and cash flow deficiencies which 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/TxNsg9 About Florida Gaming Florida Gaming Corporation operates live Jai Alai games at frontons in Ft. Pierce, and Miami, Florida through its Florida Gaming Centers, Inc. subsidiary. The Company also conducts intertrack wagering (ITW) on jai alai, horse racing and dog racing from its facilities. Poker is played at the Miami and Ft. Pierce Jai-Alai, and dominoes are played at the Miami Jai-Alai. In addition, the Company operates Tara Club Estates, Inc., a residential real estate development located near Atlanta in Walton County, Georgia. Approximately 46.2% of the Company's common stock is controlled by the Company's Chairman and CEO either directly or beneficially through his ownership of Freedom Holding, Inc. The Company is based in Miami, Florida. FMC VENTURE: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------- Debtor: FMC Venture, LLC aka Space Station Storage 10617 Fuqua Street Houston, TX 77089-2403 Bankruptcy Case No.: 11-32994 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Southern District of Texas (Houston) Judge: Jeff Bohm Debtor's Counsel: J. Craig Cowgill, Esq. J. CRAIG COWGILL & ASSOCIATES, P.C. 8100 Washington, Suite 120 Houston, TX 77007 Tel: (713) 956-0254 Fax: (713) 956-6284 E-mail: jccowgill@cowgillholmes.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/txsb11-32994.pdf The petition was signed by Ormond Farine, Jr., president. FORD MOTOR: U.S. March Sales Up 19%; Year-to-Date Sales Up 16% -------------------------------------------------------------- Ford Motor Company said that consumer demand for its fuel- efficient vehicles continues to grow as March sales increased 19 percent versus a year ago. Year-to-date, Ford sales totaled 496,720, up 16 percent. "With gasoline prices eclipsing $3.50 a gallon, consumers are placing a high priority on fuel efficiency in every size and kind of vehicle," said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service. "Customers are rewarding Ford for our investment in new products as well as more efficient engines and transmissions, which save them money at the pump whether they drive Fiestas or F-Series trucks." Ford offers 12 vehicles that lead their sales segments in fuel economy, including four vehicles with EPA certified 40 mpg or higher fuel economy ratings - a claim no other full-line automaker can match. Cars Ford's new Fiesta set a record in March as monthly sales reached 9,787, up 56 percent from February. Fiesta's retail share of its segment has increased every month since it was introduced last summer, and Los Angeles continues to be the No. 1 sales region for Fiesta. Fusion also set a new record with sales of 27,566, up 21 percent versus a year ago. The Ford Mustang (up 47 percent) and Lincoln MKZ (up 28 percent) also posted higher sales than a year ago. Sales of the MKZ Hybrid reached a record 615, accounting for 20 percent of MKZ retail sales. Total Focus sales were lower than a year ago (down 12 percent) as the all-new model is just starting to arrive at Ford dealers, but the nameplate's retail sales were up 16 percent. Utilities Sales of Ford's utility vehicles were paced by the all-new Ford Explorer, which had its best sales month since June 2007. Explorer sales totaled 12,482, up 111 percent, making the new Explorer Ford's fastest-turning vehicle in the showroom for a third straight month. Explorer's class-leading EPA estimated highway fuel economy of 25 mpg is attracting owners of other makes. Its current conquest rate is 43 percent. The Escape set a new March sales record - and its second best month overall - with sales of 23,975, up 25 percent versus a year ago. Sales of the new Ford Edge (up 21 percent) and Lincoln MKX (up 12 percent) also were higher as were sales of the Ford Expedition (up 40 percent) and Lincoln Navigator (up 10 percent). Trucks Strong sales to commercial fleet customers as well as higher sales to retail customers powered Ford truck sales growth in March. Sales of Ford's F-Series truck totaled 53,272, up 25 percent versus a year ago. In January, Ford launched the 2011 F-150 with four all-new powertrains including two V6s - a 3.7-liter and a 3.5-liter EcoBoost. In March, V6-equipped F150s accounted for 37 percent of all 2011 F-150 retail sales. "The No. 1 unmet need for full-size pickup truck owners has been fuel economy," said Doug Scott, Truck Group marketing manager. "The good news is the 2011 Ford F-150 has best-in-class fuel economy, best-in-class capability and power, plus more powertrain choices to suit customers' different needs." Ford's commercial vehicles also posted strong year-to-year increases. Econoline sales totaled 11,827 (up 13 percent) and Transit Connect sales were 2,690 (up 47 percent). Sales Summary In March, total sales were 212,777, up 19 percent. Retail sales were up 14 percent and fleet sales were up 29 percent (commercial was up 50 percent, government was up 33 percent and daily rental was up 13 percent). In the first quarter, total sales were 496,720, up 16 percent. Retail sales were up 20 percent and fleet sales were up 8 percent (commercial was up 34 percent, government was up 11 percent, and daily rental was down 8 percent). Two independent market research studies cited the growing strength of the Ford brand in March. Ford was named the most considered auto brand among new-car shoppers in Kelley Blue Books' Market Intelligence Brand Watch study, and Ford was named top full-line automotive brand in the 2011 Harris Poll EquiTrend study. "Our newest products are helping Ford to connect with customers beyond our traditional geographic areas of strength," said Czubay. "In the first quarter, our largest retail sales increases were on the west coast and in the northeast with major contributions from the Fiesta and Edge. We believe the new Focus and Explorer will help us to achieve further growth in these and other key markets as even more customers look for fuel-efficient, high-quality vehicles with technology they truly value." About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The Company provides financial services through Ford Motor Credit Company. Ford Motor's balance sheet at Sept. 30, 2010, showed $177.07 billion in total assets, $178.81 billion in total liabilities, and a stockholders' deficit of $1.77 billion. * * * Ford Motor has a 'BB' issuer default rating, with positive outlook, from Fitch Ratings; 'Ba2' corporate family rating and probability of default rating from Moody's Investors Service; and a 'BB-' corporate credit rating, with positive outlook, from Standard & Poor's. Fitch said at the end of January 2011 that Ford's ratings reflect its continued strong financial performance and the substantial debt reduction accomplished in the fourth quarter of 2010, both of which outperformed Fitch's previous expectations. FRANCISCAN COMMUNITIES: Court Confirms Chapter 11 Liquidating Plan ------------------------------------------------------------------ The U.S. Bankruptcy Court confirmed the Chapter 11 plan of liquidation of Franciscan Communities Villa De San Antonio's As reported in the Feb. 17, 2011 edition of the Troubled Company Reporter, the Debtor has sold substantially all its assets to KSL San Antonio, L.L.C., for $17,225,281, plus the assumption or satisfaction of certain assumed and the provision of certain funds regarding minimum payments to or on behalf of certain claims. The Debtor has used the proceeds of that sale to make certain distributions to secured lenders and to pay necessary costs and expenses of the sale. Any remaining proceeds from the Sale of the assets, together with any remaining Cash Collateral and funds received from KSL, will be used to make payments under the Plan. Allowed secured claims have been paid in full to the extent that payment will be made on any allowed secured claim from the proceeds of the Asset Sale. The secured lenders will not have any allowed unsecured or undersecured claim. Allowed unsecured claims will be paid in cash, a pro-rata payment of at least $100,000 from current available cash and further cash available from KSL. There will be no distribution to the owner of the Debtor and it is anticipated that, following the consummation of the Plan, the Debtor will take such steps as are necessary under applicable state law to dissolve and cease to exist as a legal entity. A copy of the First Amended Disclosure Statement is available for free at http://bankrupt.com/misc/FranciscanCommunities.DS.pdf About Franciscan Communities San Antonio, Texas-based Franciscan Communities Villa De San Antonio is an Illinois not-for-profit corporation that, prior to the sale of substantially all of its assets to KSL San Antonio, L.L.C., operated a senior living community consisting of 114 independent living apartments, 24 independent living garden homes and 55 assisted living units near what is generally referred to as the "medical center area" of San Antonio, Texas. The sale closed in June 2010. The Company filed for Chapter 11 bankruptcy protection (Bankr. W.D. Texas Case No. 10-50712) on Feb. 26, 2010. Ronald Hornberger, Esq., at Plunkett & Gibson, Inc., in San Antonio, Tex., assists the Company in its restructuring effort. In its schedules, the Debtor disclosed $35,470,922 in assets and $39,456,816 in liabilities. FRANKLIN TOWERS: Delays Filing of 2010 Annual Report ---------------------------------------------------- Franklin Towers Enterprises, Inc., said it was unable to compile the requisite financial data and other narrative information necessary to prepare complete financial statements to be included in the annual report on Form 10-K for the year ended Dec. 31, 2010, and is unable to file the periodic report within the prescribed time period without unreasonable effort or expense. The Company expects to file the report within the extension period. About Franklin Towers Chongqing, China-based Franklin Towers Enterprises, Inc., was incorporated on March 23, 2006, under the laws of the State of Nevada. The Company is focused on the production and sale of silk and silk products. The Company started its test production at the end of June 2007 and commenced operations from the third quarter of 2007. The Company's balance sheet at Sept. 30, 2010, showed $4.1 million in total assets, $7.9 million in total liabilities, all current, and a stockholders' deficit of $3.8 million. Michael T. Studer, CPA, P.C., in Freeport, New York, expressed substantial doubt about Franklin Towers, Inc.'s ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred a net loss of $1.6 million and $8.7 million, for the years ended Dec. 31, 2009, and 2008, respectively, has an accumulated deficit of $21.7 million at Dec. 31, 2009, and is in default on its Convertible Notes payments. GBI CROUP: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: GBI Croup LLC 9950 Westpark Drive, Suite 600 Houston, TX 77063 Bankruptcy Case No.: 11-33010 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Southern District of Texas (Houston) Judge: Jeff Bohm Debtor's Counsel: Alan Sanford Gerger, Esq. DUNN, NEAL & GERGER 3050 Post Oak Boulevard, Suite 400 Houston, TX 77056 Tel: (713) 403-7400 Fax: (713) 960-0204 E-mail: asgbkp@dnglegal.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/txsb11-33010.pdf The petition was signed by Keith Truong, president. GEMCRAFT HOMES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Gemcraft Homes, Inc. dba The Mini Group Inc. 9950 Westpark Drive, Suite 600 Houston, TX 77063 Bankruptcy Case No.: 11-33021 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Jeff Bohm Debtor's Counsel: Alan Sanford Gerger, Esq. DUNN NEAL ET AL 3050 Post Oak Blvd, Suite 400 Houston, TX 77056 Tel: (713) 403-7400 Fax: (713) 960-0204 E-mail: asgbkp@dnglegal.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-33021.pdf The petition was signed by Keith Truong, president. GIBSON GUITAR: Moody's Assigns 'B3' to $130-Mil. Credit Facility ---------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to Gibson Guitar Corp.'s $130 million senior secured credit facility, while at the same time upgrading its corporate family rating to B3 and probability of default rating to Caa1. The outlook was revised to stable from developing. The rating on the existing secured credit facility was withdrawn. "The upgrade in the corporate family rating and the stable outlook reflect the elimination of the looming liquidity concerns, driven by the new credit facility along with Moody's increased confidence that Gibson will be able to regularly issue its unaudited quarterly and audited annual financial statements on time," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service. Rating Rationale Gibson's B3 corporate family rating reflects the revenue volatility exhibited during the recession, its relatively small scale, with revenue under $300 million, and Moody's continuing concern over its corporate governance structure. Gibson's significant customer concentration with Guitar Center also constrains the rating. Gibson's prominent market share in guitars, improving credit metrics, strong brand recognition, diversification within guitars and geographic diversification supports the rating. The company's cash generating ability also benefits the rating as does the lack of any debt maturities until 2016. A material and unexpected deterioration in operating performance could trigger a downgrade as would a violation of a quarterly maintenance financial covenant. If the company has problems issuing its quarterly unaudited and/or annual audited financial statements on time its rating could be downgraded. Another upgrade is not likely in the near term. Over the longer term, the rating could be upgraded if operating performance and credit metrics were to improve and the company's corporate governance atmosphere gets better. Key credit metrics necessary to consider an upgrade would be adjusted debt/EBITDA sustained below 3x and EBITA margins consistently around 13% to 15%. The stable outlook reflects Moody's increased confidence in Gibson's financial reporting processes highlighted by the timely reporting of their 2010 quarterly financial statements. The company's improved operating performance and enhanced liquidity profile with no debt maturities for five years are also reflected in the stable outlook. The B3 rating on the secured revolver and term loan reflect a Caa1 probability of default rating and a LGD 3. The credit facility is secured on a first lien all asset basis and is guaranteed by operating subsidiaries. These ratings were upgraded: * Corporate family rating to B3 from Caa1; * Probability-of-default rating to Caa1 from Caa2; These ratings were assigned: * $50 million senior secured revolving credit facility due 2016 at B3 (LGD 3, 32%); * $80 million Term Loan due 2016 at B3 (LGD 3, 32%). Moody's subscribers can find additional information in Gibson's Credit Opinion published on Moodys.com. The last rating action was on November 16, 2010, where Moody's affirmed Gibson's ratings at Caa1 with a developing outlook. The principal methodology used in rating Gibson was the Global Consumer Durables rating methodology published in October 2010 and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Other methodologies and factors that may have been considered in the process of rating Gibson can also be found on Moody's Web site. Headquartered in Nashville, Tennessee, Gibson Guitar Corp. primarily manufactures and markets acoustic and electric guitars under the Gibson and Epiphone brand names. The Company also sells other stringed instruments and instruments related accessories such as amplifiers, speakers, and picks/straps. Revenues for the 12 months ended Dec. 31, 2010, were approximately $300 million. GLENDALE INTERNATIONAL: Trustee Sells 48% Firan Stake to Oakwest ---------------------------------------------------------------- On March 31, 2011, Ernst & Young Inc., in its capacity as trustee in bankruptcy of the estate of Glendale International Corp. and not in its personal capacity entered into an agreement to sell 8,541,987 common shares of Firan Technology Group Corporation to Oakwest Corporation Limited, representing approximately 48% of the total issued and outstanding common shares of Firan. Upon the entering into of the Agreement, Ernst & Young sold 8,301,987 common shares of Firan. The remaining 240,000 common shares of Firan will be sold under the terms of the Agreement pursuant to certain conditions being met. Ernst & Young currently owns 240,000 common shares of Firan, representing approximately 1.35% of the total issued and outstanding common shares of Firan. The securities were sold through a private sale at a price of $0.31 per common share. At this time, Ernst & Young, in its capacity as trustee in bankruptcy of the estate of Glendale has no intention of acquiring further common shares of Firan. About Glendale International Glendale International Corp. manufactures and sells recreational vehicles in the United States and Canada. The company operates in two divisions, Glendale Recreational Vehicles (Glendale RV) and Travelaire Canada (Travelaire). On Jan. 19, 2011, Glendale International Corp. made a decision to file a voluntary assignment in bankruptcy under the Bankruptcy & Insolvency Act (Canada). All Directors of the Corporation have resigned and the Corporation expects the Official Receiver to appoint Ernst & Young Inc. as Trustee of the estate of the Corporation. "The recent economic downturn, the rising Canadian dollar and higher gas prices have had a devastating effect on the recreational vehicle industry in North America," said Edward Hanna, Chairman and CEO of the Corporation. "Over the past few months the Corporation has undertaken an extensive internal review as well as engaged outside consultants to assist it in reviewing all available options and strategies which it could pursue to rebuild the recreational vehicle division, its primary business. However, given that there does not appear to be a significant rebound of the Canadian RV industry and the commercial structure business for the energy sector in the near term, the Board of Directors determined that a voluntary assignment in bankruptcy was in the best interests of the Corporation's stakeholders." GORDON'S MUSIC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Gordon's Music and Sound, Inc. dba Gordons Music and Sound 810 Texas Street Fairfield, CA 94533 Bankruptcy Case No.: 11-28452 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Ronald H. Sargis Debtor's Counsel: C. Anthony Hughes, Esq. ANTHONY HUGHES LC 1395 Garden Highway, Suite 150 Sacramento, CA 95833 Tel: (916) 440-6666 Scheduled Assets: $247,552 Scheduled Debts: $2,270,930 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/caeb11-28452.pdf The petition was signed by Clifford Gordon, CEO. Affiliate that previously sought Chapter 11 protection: Entity Case No. Petition Date ------ -------- ------------- Clifford and Dale Gordon 10-32958 05/25/10 GREATER ATLANTA BROKERAGE: Case Summary & Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: Greater Atlanta Brokerage Solutions, LLC dba RE/MAX Greater Atlanta 5591 Chamblee-Dunwoody Road, Bldg 1300 Atlanta, GA 30338 Bankruptcy Case No.: 11-60628 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: J. Robert Williamson, Esq. SCROGGINS AND WILLIAMSON 1500 Candler Building 127 Peachtree Street, N.E. Atlanta, GA 30303 Tel: (404) 893-3880 E-mail: rwilliamson@swlawfirm.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/ganb11-60628.pdf The petition was signed by Stephen M. Klein, chief restructuring officer. GREDE HOLDINGS: S&P Withdraws Preliminary 'B+' Corp. Credit Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said it withdrew its preliminary 'B+' corporate credit rating and preliminary 'B+' issue-level rating on Southfield, Mich.-based casting supplier Grede Holdings LLC. "The company is not pursuing the financing that was the basis for our assignment of ratings on March 16, 2011," S&P explained. LADY FOREST: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Lady Forest Farms, Inc. 345 Highway 35 South Forest, MS 39074 Bankruptcy Case No.: 11-01259 Chapter 11 Petition Date: April 5, 2011 Court: U.S. Bankruptcy Court Southern District of Mississippi (Jackson Divisional Office) Debtor's Counsel: Craig M. Geno, Esq. HARRIS JERNIGAN & GENO, PLLC 587 Highland Colony Parkway P.O. Box 3380 Ridgeland, MS 39157 Tel: (601) 427-0048 Fax: (601) 427-0050 E-mail: cmgeno@hjglawfirm.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Hugh H. Haralson, III, treasurer and director. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Forest Packing Company 11-00627 02/21/11 Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Delta Western Grain, Inc. -- $586,486 1842 Highway 82 W P.O. Box 878 Indianola, MS 38751 Bunge -- $517,057 P.O. Box 802711 Kansas City, MO 64180-2711 Phillips Farms -- $494,223 4042 Highway 16 West Yazoo City, MS 39194 Magnolia Grain Co. Inc. -- $462,200 P.O. Box 336 Cary, MS 39054 Hubbard LLC -- $301,421 195 Main Street Warpole, NH 03608 Cobb-Vantress, Inc. -- $219,908 CHS -- $125,456 Freedom Trans USA -- $102,065 Riceland Foods, Inc. -- $94,544 The Durham Company -- $73,889 Evonik Industries -- $71,617 Cargill, Inc. -- $65,439 Gulf Packaging, LLC -- $62,723 Jackson Commodities -- $57,749 H & S Transportation, Inc. -- $42,100 Kansas City Southern Railway -- $35,455 AmFed Companies, LLC -- $31,560 Hansen-Mueller Co. -- $30,223 Merial Select, Inc. -- $29,567 Ameropa -- $28,446 HOMELAND SECURITY: Amends 2009 Annual Report; Addresses Comments ---------------------------------------------------------------- Homeland Security Capital Corporation filed with the U.S. Securities and Exchange Commission Amendment No. 2 on Form 10-K/A to the Annual Report on Form 10-K for the fiscal year ended June 30, 2009, originally filed with the SEC on Sept. 28, 2009, and as amended on March 31, 2011 by Amendment No. 1 to the Annual Report on Form 10-K/A. The amendment is being filed for the purpose of responding to certain comments made by the SEC by letter dated March 17, 2011. In response to the Comment Letter, the Company is refiling all of its financial statements and notes thereto in addition to the amended Report of Independent Registered Public Accounting Firm that the SEC had requested the Company to file by way of its first letter to the Company dated Feb. 15, 2011. No changes have been made to the financial statements or the amended Report of Independent Registered Public Accounting Firm. Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended, the Company is also including with this Amendment certain certifications. The Company posted a net loss attributable to common stockholders of $362,367 for the six months ended Dec. 31, 2009, from a net loss of $2,960,052 for the same period a year ago. Net contract revenue was $26,572,415 for the fiscal second quarter ended Dec. 31, 2009, from $22,212,461 for the fiscal 2008 second quarter. Net contract revenue was $47,421,857 for the six months ended Dec. 31, 2009, from $39,879,692 for the same period in 2008. At Dec. 31, 2009, the Company had total assets of $35,815,519 against total liabilities of $38,018,448 and Warrants Payable -- Series H Preferred Stock of $169,768. Stockholders' deficit was $2,372,697 at Dec. 31, 2009. About Homeland Security Homeland Security Capital Corporation is an international provider of specialized technology-based radiological, nuclear, environmental disaster relief and electronic security solutions to government and commercial customers. Homeland Security reported net income of a $1,636,720 on $53,266,167 of net contract revenue for the six months ended Dec. 31, 2010, compared with net income of $555,251 on $47,421,857 of net contract revenue for the same period a year earlier. The Company's consolidated balance sheet at Dec. 31, 2010, showed $40,025,852 in assets, $39,940,470 in total liabilities, warrants payable -- Series H Preferred Stock of $169,768, non-controlling interest of $228,830, and a stockholders' deficit of $84,386. Stockholders' deficit was $1,059,210 at June 30, 2010. HYTHIAM INC: Incurs $19.99 Million Net Loss in 2010 --------------------------------------------------- Catasys, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $19.99 million on $448,000 of total revenues for the twelve months ended Dec. 31, 2010, compared with a net loss of $9.15 million on $1.53 million of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $7.94 million in total assets, $18.12 million in total liabilities and $10.18 million in total stockholders' deficit. Rose, Snyder & Jacobs, in Encino, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2010. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/meWg8D About Hythiam, Inc. Based in Los Angeles, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. IDO SECURITY: Delays Filing of 2010 Annual Report ------------------------------------------------- IDO Security Inc. said that its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2010 could not be filed by the prescribed due date of March 31, 2011 because it had not yet finalized its treatment and disclosure of certain material events that occurred during the fourth quarter and fiscal year 2010. As a result, the audit of Company's 2010 financial statements is ongoing. Accordingly, the Company is unable to file such report within the prescribed time period without unreasonable effort or expense. The Company anticipates that the subject annual report will be filed on or before April 15, 2011. About IDO Security IDO Security Inc. is engaged in the design, development and marketing of devices for the homeland security and loss prevention markets that are intended for use in security screening procedures to detect metallic objects concealed on or in footwear, ankles and feet through the use of electro-magnetic fields. The Company's common stock trades on the OTC Bulletin Board under the symbol IDOI. The Company is headquartered in New York City. The Company's balance sheet at Sept. 30, 2010, showed $2.69 million in total assets, $16.03 million in total liabilities, and a stockholders' deficit of $13.34 million. Rotenberg Meril Solomon Bertiger & Guttilla, P.C., in Saddle Brook, N.J., 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 not achieved profitable operations, has incurred recurring losses, has a working capital deficiency and expects to incur further losses in the development of the business. INDIGO-ENERGY: Delays Filing of 2010 Annual Report -------------------------------------------------- Indigo-Energy, Inc., said that its Annual Report on Form 10-K for the fiscal year ending Dec. 31, 2010, could not be completed without unreasonable effort and expense, despite diligent efforts on the part of the Company and its management. Those difficulties prevent the Company from filing the report because the information being completed is integral to the balance of the report. The Company expects to be able to file within the additional time allowed. About Indigo-Energy Henderson, Nev.-based Indigo-Energy, Inc., is an independent energy company, currently engaged in the exploration of natural gas and oil. The Company's balance sheet at Sept. 30, 2010, showed $5.05 million in total assets, $11.35 million in total liabilities, and a stockholders' deficit of $6.30 million. Mark Bailey & Company, Ltd., in Reno, Nevada, expressed substantial doubt about Indigo-Energy's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency. INFUSION BRANDS: Meeks International Raises Going Concern Doubt --------------------------------------------------------------- Infusion Brands International, Inc., formerly OmniReliant Holdings, Inc., filed on March 31, 2011, its transition report on Form 10-K-T for the transition period from July 1, 2010, to Dec. 31, 2010. On Dec. 17, 2010, the Company changed its fiscal year end from June 30 to Dec. 31. Meeks International LLC, in Tampa, Florida, 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 from operations and is dependent on outside sources of financing for continuation of its operations and management is restructuring and redirecting its operating initiatives that require the use its available capital resource. The Company reported a net loss of $6.11 million on $4.07 million of revenues for the transition period ended Dec. 31, 2010, compared with a net loss of $20.95 million on $13.63 million of revenues for the corresponding period ended Dec. 31, 2009. At Dec. 31, 2010, the Company's balance sheet showed $6.77 million in total assets, $4.04 million in total liabilities, $9.50 million in redeemable preferred stock, and a stockholders' deficit of $6.77 million. A complete text of the Form 10-K is available for free at: http://is.gd/xSfihY Clearwater, Fla.-based Infusion Brands International, Inc. -- http://www.infusionbrands.com/-- is a global consumer products company. Its wholly owned operating subsidiary, Infusion Brands, Inc., specializes in building and marketing profitable brands through international direct-to-consumer channels of distribution. INNOVIDA HOLDINGS: Receiver Becomes Chapter 11 Trustee ------------------------------------------------------ Dow Jones' DBR Small Cap reports that Bankruptcy Judge Robert A. Mark in Miami on Monday authorized the appointment of a Chapter 11 trustee for InnoVida Holdings LLC's bankruptcy case, ensuring the company doesn't fall back into the hands of founder Claudio Osorio, who's accused of fraud and mismanagement. According to DBR, the ruling paved the way for the federal bankruptcy watchdog assigned to the case to place Mark S. Meland in the role. Mr. Meland, who had been serving as a receiver for the business in the wake of the allegations against Mr. Osorio, was the one who ushered InnoVida into bankruptcy on March 24. In court papers, he urged the court to allow him to remain at the helm of the business, warning that it would be "entirely inappropriate" to hand Osorio and his wife, Amarilis, the reins of the company. "It is without question that the receiver's investigation has uncovered serious failings of their management of the InnoVida entities," Mr. Meland said. Receiver Mark S. Meland, at Meland Russin & Budwick, PA, filed a Chapter 11 petition for InnoVida Holdings, LLC, fdba COEG, LLC (Bankr. S.D. Fla. Case No. 11-17702) on March 24, 2011. Separate Chapter 11 petitions were also filed for these affiliates: InnoVida MRD, LLC (Case No. 11-17704), InnoVida Services, Inc. (Case No. 11-17705), and InnoVida Southeast, LLC (Case No. 11- 17706). Peter D. Russin, Esq., at Meland Russin & Budwick, P.A., serves as bankruptcy counsel. InnoVida Holdings has under $50,000 in assets and $10 million to $50 million in debts, according to the petition. Founder Claudio Eleazar and Amarilis Osorio filed a separate Chapter 11 petition (Bankr. S.D. Fla. Case No. 11-17075) on March 17, 2011. INT'L TEXTILE: Incurs $46.30 Million Net Loss in 2010 ----------------------------------------------------- International Textile Group, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $46.30 million on $616.13 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $216.97 million on $659.26 million of net sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $435.74 million in total assets, $540.34 million in total liabilities, and a $104.60 million stockholders' deficit. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/yThzps About International Textile International Textile Group, Inc., is a global, diversified textile manufacturer headquartered in Greensboro, North Carolina, with current operations principally in the United States, China, Mexico, and Vietnam. ITG's long-term focus includes the realization of the benefits of its global expansion, including reaching full production at ITG facilities in China and Vietnam, and continuing to seek other strategic growth opportunities. JEMA ENTERPRISES: Case Summary & Largest Unsecured Creditor ----------------------------------------------------------- Debtor: Jema Enterprises, LLC 2424 S 23rd McAllen, TX 78503 Bankruptcy Case No.: 11-70218 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Southern District of Texas (McAllen) Judge: Richard S. Schmidt Debtor's Counsel: Antonio Villeda, Esq. LAW OFFICES OF ANTONIO VILLEDA 5414 N. 10th Street McAllen, TX 78504 Tel: (956) 631-9100 E-mail: avilleda@mybusinesslawyer.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Manuel Ramirez, member. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Manuel & Juana P. Ramirez -- 04/04/11 The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kittleman, Thomas, Ramirez, Notice Only unknown Gonzales, PLLC, Attorneys At Law 4900-B North 10th Street P.O. Box 1416 McAllen, TX 78505 JOHN D OIL: Incurs $1.38 Million Net Loss in 2010 ------------------------------------------------- John D. Oil and Gas Company filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $1.38 million on $2.63 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $2.69 million on $4.04 million of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $8.72 million in total assets, $11.89 million in total liabilities, and a $3.17 million total deficit. Maloney + Novotny LLC, in Cleveland, Ohio, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company has suffered recurring losses and has $9.5 million of debt currently due and subject to a forbearance. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/z4nH6e About John D. Oil Mentor, Ohio-based John D. Oil and Gas Company is in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. The Company currently has fifty-eight producing wells. JUST MARSE: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Just Marse, LP 10080 Dyer El Paso, TX 79924 Bankruptcy Case No.: 11-30650 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Western District of Texas (El Paso) Judge: H. Christopher Mott Debtor's Counsel: Sidney J. Diamond, Esq. DIAMOND LAW 3800 N Mesa B-3 El Paso, TX 79902 Tel: (915) 532-3327 Fax: (915) 532-3355 E-mail: usbc@sidneydiamond.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb11-30650.pdf The petition was signed by Maria L. Torres, Manager of Vested Capital, LLC. KIDS VIEW: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Kids View, Inc. 1141 Tower Trail El Paso, TX 79907 Bankruptcy Case No.: 11-30645 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Western District of Texas (El Paso) Judge: H. Christopher Mott Debtor's Counsel: Sidney J. Diamond, Esq. DIAMOND LAW 3800 N. Mesa B-3 El Paso, TX 79902 Tel: (915) 532-3327 Fax: 915-532-3355 E-mail: usbc@sidneydiamond.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 eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/txwb11-30645.pdf The petition was signed by Maria Lourdes Torres, manager. Affiliates that simultaneously filed separate Chapter 11 petitions on April 4: Entity Case No. ------ -------- Kids View V, LLC 11-30646 Kids View I, LLC 11-30647 KV PHARMACEUTICAL: Incurs $44.66 Million Net Loss in Dec. 31 Qtr. ----------------------------------------------------------------- K-V Pharmaceutical Company filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $44.66 million on $5.42 million of net revenues for the three months ended Dec. 31, 2010, compared with net income of $108.58 million on $147.48 million of net revenues for the same period during the prior year. The Company also reported a net loss of $115.78 million on $12.10 million of net revenues for the nine months ended Dec. 31, 2010, compared with a net loss of $402,000 on $157.02 million of net revenues for the same period during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $296.21 million in total assets, $529.66 million in total liabilities, and a $233.45 million shareholders' deficit. There is substantial doubt about the Company's ability to continue as a going concern. The report of the Company's independent registered public accountants BDO USA, LLP, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2010, includes an explanatory paragraph related to the Company's ability to continue as a going concern. The quarterly report on Form 10-Q was delayed due to the time required to complete the filings of the Company's other delayed reports required to be filed with the SEC, including the Company's Quarterly Reports on Form 10-Q for the quarters ended Sept. 30, 2009 and Dec. 31, 2009, which were filed on June 10, 2010, the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2010, which was filed on Dec. 27, 2010, the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, which was filed on March 10, 2011 and the Company's Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2010, which was filed on March 22, 2011. A full-text copy of the Quarterly Report is available for free at: http://is.gd/HG7qG9 About KV Pharmaceutical Company KV Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. LAW ENFORCEMENT ASSOCIATES: Frost PLLC Raises Going Concern Doubt ----------------------------------------------------------------- Law Enforcement Associates Corporation filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Frost, PLLC, in Little Rock, Arkansas, expressed substantial doubt about Law Enforcement Associates' ability to continue as a going concern. The independent auditors noted that the Company has $1.5 million of outstanding redeemable common stock, a working capital deficit, incurred significant operating losses and has limited financial resources. The Company reported a net loss of $4.19 million on $5.58 million of sales for 2010, compared with net income of $127,232 on $11.95 million of sales for 2009. At Dec. 31, 2010, the Company's balance sheet showed $2.55 million in total assets, $2.49 million in total liabilities, and stockholders' equity of $59,471. A complete text of the Form 10-K is available for free at: http://is.gd/q7DDRv A complete text of the 2010 financial statements is available for free at http://is.gd/KXcspl Raleigh, North Carolina-based Law Enforcement Associates Corporation -- http://www.leacorp.com/-- is a U.S. security and surveillance technology company that manufactures and markets a diverse product line to the worldwide law enforcement, military, security and corrections markets. LNR PROPERTY: Moody's Puts 'B2' Corporate Under Review for Upgrade ------------------------------------------------------------------ Moody's Investors Service placed LNR Property LLC's corporate family rating and senior secured bank credit facility rating on review for possible upgrade following the company's announcement that it intends to refinance its senior secured bank credit facility with new $365 million senior secured credit facilities. Moody's also assigned a (P)Ba2 senior secured bank facility rating to the New Facilities, with a stable outlook. Moody's stated that the corporate family rating will likely be rated Ba2 and the rating on the existing senior secured bank credit facility would be withdrawn if and when LNR is successful refinances its current credit facility. These ratings were placed on review for possible upgrade: * LNR Property LLC -- senior secured credit facility at B2; corporate family rating at B2 This rating was assigned with a stable outlook: * LNR Property LLC -- senior secured credit facilities at (P)Ba2 Ratings Rationale These rating actions reflect the resolution of LNR's maturing bank facility and improved credit metrics following its recapitalization in August 2010. Debt maturities have been extended, intermediate term liquidity is strong, and cash flow is improving. LNR is now well-positioned to re-focus on growing its special servicing platform and funds businesses. The rating also reflects the uncertainty surrounding a definitive business plan, specifically whether LNR re-enters its traditional lines of businesses, which may include loan origination and on-balance sheet real estate investments. Moody's expects LNR to fund its growth primarily with free cash flow. Moody's notes that LNR now has the financial flexibility to absorb any negative pressure it might experience in operating performance given its strengthened capital structure. Moody's indicated that a further upgrade would be predicated upon more clarity surrounding LNR's long term business model, success in profitably growing its servicing and funds management businesses, and maintenance of a conservative capital structure consistent with the quality and liquidity of its assets. A downgrade could result if LNR has difficulty in growing its business or adopts a more aggressive, or less transparent, capital structure. Moody's last rating action with respect to LNR Property LLC was on August 5, 2010, when Moody's upgraded LNR's senior secured bank credit facility and corporate family ratings to B2 from Ca. The outlook was stable. LNR Property LLC's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as (i) the business risk and competitive position of the company versus others within its industry, (ii) the capital structure and financial risk of the company, (iii) the projected performance of the company over the near to intermediate term, and (iv) management's track record and tolerance for risk. These attributes were compared against the issuers both within and outside of LNR's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. Other methodologies and factors that may have been considered in the process of rating LNR Property LLC can also be found in the Rating Methodologies sub-directory on Moody's web site. LNR Property LLC is a real estate investment and management company headquartered in Miami Beach, Florida, USA. MAC THE ANTIQUE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Mac The Antique Plumber, Inc. 6325 Elvas Ave Sacramento, CA 95819 Bankruptcy Case No.: 11-28413 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Eastern District of California (Sacramento) Judge: Christopher M. Klein Debtor's Counsel: D. Randall Ensminger, Esq. ENSMINGER LAW OFFICES, P.C. 110 Gateway Dr #260 Lincoln, CA 95648 Tel: (916) 434-0220 Fax: (916) 434-2530 E-mail: jewell@ensmingerlaw.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/caeb11-28413.pdf The petition was signed by Bryan McIntire, president. MACCO PROPERTIES: Creditors Panel Wants Dennis Maley as Accountant ------------------------------------------------------------------ The Official Unsecured Creditors' Committee in Macco Properties, Inc.'s bankruptcy case seeks authorization from the U.S. Bankruptcy Court for the Western District of Oklahoma to employ Dennis Maley, CPA, as accountant. The Committee has identified a need for accounting assistance and determined that it would be beneficial to the Committee and the unsecured creditors for the Committee to engage an accountant to advise the Committee in connection with the complex and interrelated transactions between the Debtor and its affiliates. The Committee has agreed to compensation of Dennis Maley on an hourly basis with Mr. Maley at the rate of $200 per hour, plus reimbursement of reasonable, necessary expenses. Dennis Maley, sole member of Dennis Maley, assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Oklahoma City, Oklahoma-based Macco Properties, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10- 16682) on Nov. 2, 2010. G. Rudy Hiersche, Jr., Esq., at the Hiersche Law Firm, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $50,823,581 in total assets, and $4,323,034 in total liabilities. Ruston C. Welch -- rwelch@welchlawpc.com -- at the Welch Law Firm, P.C., is the attorney for the official unsecured creditors' committee. MACCO PROPERTIES: Objects to Creditors Panel's Hiring of Welch -------------------------------------------------------------- Macco Properties, Inc., has filed with the U.S. Bankruptcy Court for the Western District of Oklahoma an objection to the Unsecured Creditors Committee's employment of Welch Law Firm, P.C., as counsel. As reported by the Troubled Company Reporter on March 8, 2011, the Committee sought and obtained authorization from the Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma to retain Welch as counsel. Welch will be paid $260 per hour for its services. On March 18, 2011, the Debtor filed an unopposed application for order for extension of time to respond to the Committee's application to employ Welch. On that same day, the Court granted the Debtor's unopposed application for extension of time. According to the Debtor, all three of the creditors servicing on the Committee already have counsel. "Employment of counsel by the Committee may only serve to duplicate efforts that may already be performed by the individual member's counsel," the Debtor says. The Debtor states that the separate counsel of each unsecured creditor on the Committee is capable of performing the duties for their clients and the Committee. Oklahoma City, Oklahoma-based Macco Properties, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10- 16682) on Nov. 2, 2010. G. Rudy Hiersche, Jr., Esq., at the Hiersche Law Firm, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $50,823,581 in total assets, and $4,323,034 in total liabilities. MACCO PROPERTIES: Wants Pinkerton as Special Litigation Counsel --------------------------------------------------------------- Macco Properties, Inc., asks for authorization from the U.S. Bankruptcy Court for the Western District of Oklahoma to employ Pinkerton & Finn, P.C., as special litigation counsel. Pinkerton will: a. prepare pleadings, applications, motions, answers, orders, reports and other legal papers as may be necessary during the conduct of the state court proceedings; and b. perform and provide all other and further legal services for the Debtors as may be necessary during the conduct of the state court proceedings. The Debtor will compensate Pinkerton at the hourly billing rate of $295. To the best of the Debtor's knowledge, Pinkerton is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Oklahoma City, Oklahoma-based Macco Properties, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10- 16682) on Nov. 2, 2010. G. Rudy Hiersche, Jr., Esq., at the Hiersche Law Firm, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $50,823,581 in total assets, and $4,323,034 in total liabilities. Ruston C. Welch -- rwelch@welchlawpc.com -- at the Welch Law Firm, P.C., is the attorney for the official unsecured creditors' committee. MASONITE INT'L: Moody's Assigns 'B2' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service assigned first-time ratings since the company's emergence from Chapter 11 proceedings of B2 Corporate Family Rating and B2 Probability of Default Rating to Masonite International Corporation, a wholly-owned subsidiary of Masonite Inc. In a related rating action Moody's assigned a B3 rating to the proposed $250 million senior unsecured notes due 2021. Proceeds from the notes issuance will be used to return up to $125 million of capital to existing shareholders with the balance used for general corporate purposes including financing potential acquisitions and to pay related fees and expenses. The rating outlook is stable. These ratings/assessments were affected by this action: * Corporate Family Rating assigned B2; * Probability of Default assigned B2; and * Senior unsecured notes due 2021 rated B3 (LGD4, 66%). Ratings Rationale Masonite's B2 Corporate Family Rating reflects the increased leverage level following the issuance of the proposed Notes. Moreover, it incorporates Moody's view that management is pursuing a relatively aggressive financial policy by distributing up to $125 million to existing shareholders, reducing financial flexibility at a time when liquidity preservation is paramount. This is a significant dividend, which Moody's calculates to be about five to six years of the company's future free cash flows. Moody's believes that the new home construction and the repair and remodeling sectors, the main drivers of the company's revenues, will experience lackluster growth prospects over the next 12 to 18 months. Additionally, Masonite will likely pursue larger and more complex acquisitions than previous purchases as part of its growth strategy, creating higher degrees of integration risks and potential for increased working capital requirements. Although the company has improved its operating leverage by reducing headcount, closing underutilized factories, and streamlining its administrative and manufacturing processes, its operating margins are expected to remain fragile over the rating horizon. Moody's projects EBITA-to-interest expense will be slightly below 1.25 times, but debt-to-EBITDA to be around 4.5 times (ratios adjusted per Moody's methodology). Overall, Masonite's debt leverage credit metrics are in-line with its rating. The rating is supported by Moody's view that Masonite is well positioned to economically benefit when its end markets return to more normalized levels. It has a significant global footprint with products across all price points and styles for homes and commercial applications such as hotels, offices, and schools. The company maintains strong, long-standing relationships with "big box" retailers, which could further strengthen its market position once the construction sector recovers and demand increases. The stable outlook reflects Moody's expectation that Masonite will generate better operating profits, improving interest coverage ratios to levels that are more appropriate for the rating category. Revolving credit facility availability and the absence of near-term maturities give the company some financial flexibility to contend with ongoing uncertainties in its end markets. Moody's does not anticipate favorable rating pressures over the intermediate term until the company's end markets improve. Masonite needs to demonstrate its ability to generate better levels of earnings and free cash flow, resulting in improved credit metrics. Over the longer term, EBITA-to-interest expense trending towards 3.0 times and debt-to-EBITDA sustained below 4.0 times (all ratios adjusted per Moody's methodology), while improving its liquidity profile, could result in positive rating actions. Masonite must demonstrate that its past cost reduction actions and acquisitions are resulting in better operating performance that result in better credit metrics. EBITA-to-interest expense trending towards 1.0 times or debt-to-EBITDA nearing 5.0 times (adjusted per Moody's methodology), further dividends or share repurchases, or a deteriorating liquidity profile may result in negative rating pressures. The B3 rating assigned to the proposed $250 million senior unsecured notes due 2021, one notch below the corporate family rating, results from their position as the most junior committed debt in Masonite's capital structure. The principal methodologies used in this rating were Global Manufacturing Industry published in December 2010, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Masonite Incorporated, headquartered in Tampa, FL, through its operating subsidiaries, is one of the largest manufacturers of doors in the world. It offers both interior and exterior doors for residences and commercial buildings. Revenues for the 12 months ended Dec. 31, 2010, totaled about $1.4 billion. MASTER SILICON: Reports $232,979 Net Profit in 2010 --------------------------------------------------- Master Silicon Carbide Industries, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting net profit of $232,979 on $12.95 million of revenue for the year ended Dec.31, 2010, compared with a net loss of $1.68 million on $1.77 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $27.57 million in total assets, $9.03 million in total liabilities, $10 million in redeemable preferred stock-A, $10 million in redeemable preferred stock -B, and $1.46 million in total stockholders' deficit. Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has cash flow constraints, an accumulated deficit, and has suffered recurring losses from operations. A full-text copy of the Annual Report is available for free at: http://is.gd/yhnN5e About Master Silicon Lakeville, Conn.-based Master Silicon Carbide Industries, Inc., through its indirectly wholly-owned operating subsidiary Yili China, produces and sells in China high quality "green" silicon carbide and lower-quality "black" silicon carbide (together, hereinafter referred to as "SiC"). SiC is a non-metallic compound that has special chemical properties and a level of hardness that is similar to diamonds, is produced by smelting quartz sand and refinery coke at temperatures ranging from approximately 1,600 to 2,500 degrees centigrade in a graphite electric resistance furnace. MCMILLAN-NARO: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: McMillan-Naro Condominium, Inc. 5825 Patton Street Corpus Christi, TX 78414 Bankruptcy Case No.: 11-20202 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Southern District of Texas (Corpus Christi) Judge: Richard S. Schmidt Debtor's Counsel: Nathaniel Peter Holzer, Esq. JORDAN HYDEN WOMBLE CULBRETH & HOLZER PC 500 N Shoreline Dr, Suite 900 Corpus Christi, TX 78471 Tel: (361) 884-5678 Fax: (361) 888-5555 E-mail: ecf@jhwclaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-20202.pdf The petition was signed by Edward Naro, president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Patton Street Business Park, Inc. 11-20201 04/04/11 MICHAELS STORES: S&P Revises Outlook to Positive, Holds B- Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on Irving, Texas-based Michael Stores Inc. to positive from stable. "In addition, we affirmed our 'B-' corporate credit rating," S&P said. "At the same time, we affirmed our 'B+' issue-level rating (two notches above the corporate credit rating) on the company's $2.2 billion senior secured term loan B-1 and B-2 tranches. The recovery rating of '1' remains unchanged, indicating our expectation that holders would receive very high (90%-100%) recovery in the event of a payment default," S&P continued. "In addition, we affirmed our 'CCC' issue-level ratings (two notches below the corporate credit rating) on the company's $800 million 7.75% senior unsecured notes due 2018, $400 million 11.375% senior subordinated notes due 2016, and $250 million 13% subordinated discount notes due 2016. The recovery rating remain unchanged at '6', indicating our expectation that noteholders would receive negligible (0%-10%) recovery in the event of a payment default. (For the complete recovery analysis, see Standard & Poor's recovery report on Michaels Stores, published on RatingsDirect on Oct. 8, 2010.) "The ratings on Michaels Stores reflect our expectations for modestly higher sales, some widening in operating margins due to cost-saving initiatives and better product sourcing," said Standard & Poor's credit analyst Jayne Ross, "resulting in some strengthening in credit metrics over the near term." The company's financial risk profile is highly leveraged given the substantial amount of debt outstanding, significant upcoming maturities beginning in October 2013 and beyond, and thin cash flow protection measures. "We continue to view the business risk profile as fair based on the risks associated with its participation in the competitive and highly fragmented crafts industry, the challenges of managing new-store growth, weak consumer spending, and the substantial seasonality in its quarterly operating performance (skewed heavily to the fourth quarter)," S&P added. MIDWAY RAYFORD: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Midway Rayford Partners, L.P. 800 Town & Country Boulevard, Suite 200 Houston, TX 77024 Bankruptcy Case No.: 11-33024 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: Edward L. Rothberg, Esq. HOOVER SLOVACEK, LLP 5847 San Felipe, Suite 2200 Houston, TX 77057 Tel: (713) 977-8686 Fax: (713) 977-5395 E-mail: rothberg@hooverslovacek.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Bradley R. Freels, director and president of Midway Rayford, Inc., general partner. Affiliates that simultaneously filed separate Chapter 11 petitions on April 4, 2011: Entity Case No. ------ -------- Midway Eastside Partners, L.P. 11-33046 Midway Metro Partners, L.P. 11-33051 Midway Rice Partners, L.P. 11-33056 Midway LT, L.P. 11-33062 MITOO CORPORATION: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Mitoo Corporation dba Apple Jack dba 7 Days Beer and Wine dba Bottle Locker 3427 Merrifield Dallas, TX 75223 Bankruptcy Case No.: 11-32373 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Patrick Wright, Esq. LAW OFFICE OF PARTRICK WRIGHT 10888 Shady Trail Dallas, TX 75220 Tel: (214) 745-1080 Fax: (214) 745-1140 E-mail: patrick@wrightfirm.com Scheduled Assets: $908,350 Scheduled Debts: $1,595,287 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb11-32373.pdf The petition was signed by Chong S. Na, president. MMFX CANADIAN: Court Okays Pachulski Stang as Committee Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California authorized the Official Committee of Unsecured Creditors of MMFX Canadian Holdings Inc. and its debtor-affiliates to retain Pachulski Stang Ziehl & Jones LLP as its counsel to assist, advise and represent the Committee in its consultations. The firm will charge the Debtor's estate based on the hourly rates of its professionals: Attorneys Billing Rate --------- ------------ Richard M. Pachulski, Esq. $950 James I. Stang, Esq. $895 Dean A. Ziehl, Esq. $895 Laura Davis Jones, Esq. $895 Robert J. Feinstein, Esq. $895 Jeremy V. Richards, Esq. $850 Robert B. Orgel, Esq. $850 Ira D. Kharasch, Esq. $850 Alan J. Kornfeld, Esq. $825 Richard J. Gruber, Esq. $825 Andrew W. Caine, Esq. $825 Debra Grassgreen, Esq. $795 Henry C. Kevane, Esq. $795 Jeffrey N. Pomerantz, Esq. $795 Linda F. Cantor, Esq. $795 John A. Morris, Esq. $795 David J. Barton, Esq. $775 Stanley E. Goldich, Esq. $775 David M. Bertenthal, Esq. $775 Iain A.W. Nasatir, Esq. $750 Kenneth H. Brown, Esq. $750 John D. Fiero, Esq. $725 James E. Mahoney, Esq. $725 James K.T. Hunter, Esq. $725 Samuel R. Maizel, Esq. $725 Steven J. Kahn, Esq. $725 Ellen M. Bender, Esq. $725 Daryl G. Parker, Esq. $725 Bruce Grohsgal, Esq. $705 Maxim B. Litvak, Esq. $675 Bradford J. Sandler, Esq. $675 Shirley S. Cho, Esq. $650 Harry D. Hochman, Esq. $650 Victoria A. Newmark, Esq. $650 James E. O'Neill, Eq. $650 Joshua M. Fried, Esq. $650 Jeffrey W. Dulberg, Esq. $625 Maria Bove, Esq. $625 Scotta E. McFarland, Esq. $595 Gina F. Brandt, Esq. $595 Jonathan J. Kim, Esq. $595 Malhar S. Pagay, Esq. $595 Jeffrey Kandel, Esq. $595 Michael R. Seidl, Esq. $595 Jason S. Pomerantz, Esq. $595 Mary D. Lane, Esq. $575 Gail S. Greenwood, Esq. $575 Robert M. Saunders, Esq. $575 Beth E. Levine, Esq. $575 Jeffrey P. Nolan, Esq. $575 Nina L. Hong, Esq. $575 Curtis A. Hehn, Esq. $575 Gabriella A. Rohwer, Esq. $575 Erin Gray, Esq. $550 Gillian N. Brown, Esq. $550 William L. Ramseyer, Esq. $550 Pamela E. Singer, Esq. $550 Miriam Khatiblou, Esq. $550 Ilan D. Scharf, Esq. $550 Elissa A. Wagner, Esq. $525 Timothy P. Cairns, Esq. $495 John W. Lucas, Esq. $495 Kathleen P. Makowski, Esq. $475 Teddy M. Kapur, Esq. $475 Cia H. Mackle, Esq. $425 Jason H. Rosell, Esq. $395 Peter J. Keane, Esq. $345 Paralegals Billing Rate ---------- ------------ Denise A. Harris $255 Kathleen F. Finlayson $255 Beth D. Dassa $255 Shawn A. Quinlivan $255 Patricia J. Jeffries $255 Monica A. Molitor $255 Felice S. Harrison $255 Jorge Rojas $250 Louise Tuschak $245 Karina K. Yee $245 Patricia E. Cuniff $245 Margaret L. Oberholzer $245 Cheryl A. Knotts $235 Michael A. Matteo $220 Thomas J. Brown $220 Kati L. Suk $200 John F. Bass $175 Andrew C. Sahn $175 Law Library Dir. Billing Rate ---------------- ------------ Leslie A. Forrester $275 Law Clerks/Clerks Billing Rate ----------------- ------------ Rita M. Olivere $175 Sheryle L. Pitman $175 Dina K. Whaley $175 Beatrice M. Koveleski $175 Charles J. Bouzoukis $165 Andrea R. Paul $165 Karen S. Neil $165 The Committee assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About MMFX Irvine, California-based MMFX International Holdings, Inc., and MMFX Canadian Holdings, Inc., filed for Chapter 11 (Bankr. C.D. Calif. Case Nos. 10-10085 and 10-10083) on Jan. 5, 2010. Margaret M. Mann, Esq., at Sheppard Mullin Richter & Hampton LLP assists the Debtors in their restructuring efforts. MMFX Int'l and MMFX Canadian estimated assets and debts both ranging from $50,000,001 to $100,000,000 as of the Chapter 11 filing. MMRGLOBAL INC: Rose Snyder Raises Going Concern Doubt ----------------------------------------------------- MMRGlobal, Inc., filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Rose, Snyder & Jacobs, in Encino, Calif., expressed substantial doubt about MMRGlobal's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2010, and 2009. The Company reported a net loss of $17.9 million on $972,988 of revenues for 2010, compared with a net loss of $10.3 million on $619,249 of revenues for 2009. At Dec. 31, 2010, the Company's balance sheet showed $2.2 million in total assets, $6.6 million in total liabilities, and a stockholders' deficit of $4.4 million. A complete text of the Form 10-K is available for free at: http://is.gd/CY3KIS Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. MOOD MEDIA: Moody's Puts 'B2' Corp. Family Rating; Outlook Stable ----------------------------------------------------------------- Moody's Investors Service assigned first time ratings to Mood Media Corporation (Mood Media) of B2 corporate family rating, B3 probability of default, B1 first lien (LGD2, 23%), Caa1 second lien (LGD4, 68%), and SGL-3 liquidity rating. The outlook is stable. The credit facilities are being put in place to finance the pending acquisition of Muzak Holdings LLC for US$345 million including net debt to be repaid on closing. Assignments: Issuer: Mood Media Corporation Corporate Family Rating: Assigned B2 Probability of Default Rating: Assigned B3 Senior Secured Credit Facility: Assigned B1 (LGD2, 23%) Second Lien Credit Facility: Assigned Caa1 (LGD4, 68%) Speculative Grade Liquidity Rating: Assigned SGL-3 Outlook: Assigned Stable Ratings Rationale Mood Media's B2 CFR rating is influenced primarily by the leverage and coverage measures that result from the company's pending acquisition of Muzak, a provider of music to retail/commercial customers in the U.S. As well, the company has an entrepreneurial management team, has a relatively limited operating history which has featured a series of recent acquisitions and business combinations, and continues to be in a growth phase that may result in additional acquisition or business combination activity. Consequently, while estimated pro forma leverage and coverage are only modestly aggressive and a combination of product line expansion and increased market penetration may facilitate significant organic growth, until there is a track record of both debt repayment and a stable business platform, Moody's anticipates that EBITDA expansion will be approximately equal with that of the general economy. Moody's also expects that should management achieve higher growth, that excess cash flow may be channeled towards business expansion rather than debt repayment and de- leveraging. At the same time, Moody's expects that there should not be much downside to achieving modest positive free cash flow given established customer relationships and the stable nature of repetitive subscriptions. Moody's also recognizes Mood's strong market share in retail/commercial music in both Europe and now the U.S. Rating Outlook The ratings outlook is stable. Pending debt repayment and the business model stabilizing, it is presumed that leverage and coverage measures will remain in a range which, for a small media services company, are indicative of a B2 CFR. What Could Change the Rating -- Up Given the company's very limited operating history and the volatility in its business model , a near term ratings upgrade is not expected. However, should the business model stabilize and should free cash flow be used to repay debt, positive outlook and ratings actions would be considered if Moody's expected the Debt/EBITDA to be sustained below 3.5x with FCF/Debt of no worse than 7.5%. What Could Change the Rating -- Down Should the company encounter setbacks integrating Muzak, or should liquidity deteriorate materially, or should a debt-financed acquisition transpire, downwards rating pressure would result. As well, were Debt/EBITDA to increase beyond 5.0x, adverse outlook and ratings pressure would result. The principal methodologies used in this rating were Probability of Default Ratings and Loss Given Default Assessments published in June 2009, Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009 and Speculative Grade Liquidity Ratings Published in September 2002. Should the company encounter setbacks integrating Muzak, or should liquidity deteriorate materially, or should a debt-financed acquisition transpire, downwards rating pressure would result. As well, were Debt/EBITDA to increase beyond 5.0x, adverse outlook and ratings pressure would result. MORTGAGEBROKERS.COM: Delays Filing of 2010 Annual Report -------------------------------------------------------- MortgageBrokers.com Holdings, Inc., notified 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. The Company did not obtain all information prior to filing date and attorney and accountant could not complete the required legal information and financial statements and management could not complete Management's Discussion and Analysis of such financial statements by March 31, 2011. About MortgageBrokers.com Holdings Based in Toronto, Canada, MortgageBrokers.com Holdings, Inc., provides mortgage brokerage services in the Canadian provincial markets of Newfoundland, Nova Scotia, New Brunswick, Prince Edward Island, Ontario, Saskatchewan and Alberta. The Company's balance sheet at Sept. 30, 2010, showed $1.35 million in total assets, $2.13 million in total liabilities, and a stockholders' deficit of $775,734. As reported in the Troubled Company Reporter on April 22, 2010, McGovern, Hurley, Cunningham, LLP, in Toronto, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's operating losses, negative working capital, and total capital deficiency. MPG OFFICE: Disposes of Non-Core Assets; Eliminates $33.8MM Debt ---------------------------------------------------------------- MPG Office Trust, Inc., stated it is continuing to implement its strategic plan to own and manage a core set of assets, reduce and modify the Company's obligations, and enhance long-term value for stockholders. On March 31, 2011, following notices from the Company, the mortgage loans on U.S. Bank Tower and Wells Fargo Tower were placed into special servicing. This step permits the Company to engage in discussions with the respective special servicers regarding these mortgages. The Company also delivered a notice of imminent default to the master servicer for the mortgage loan on Gas Company Tower requesting it be placed in special servicing. The mortgage loans secured by these assets are not in default. On April 1, 2011, the Company completed the disposition of 701 N. Brand in Glendale, California to the project's lender and largest tenant, California Credit Union. As part of the disposition, California Credit Union provided the Company with a cash payment and retained the Company as property manager for the asset for a period of up to 18 months. The disposition of this non-core asset eliminated the $33.8 million of debt secured by the property. The Company remains optimistic about the prospects for Downtown Los Angeles as a whole and for its core portfolio. About MPG Office Trust MPG Office Trust, Inc., fka Maguire Properties Inc. -- http://www.mpgoffice.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high- quality office properties in the Southern California market. MPG Office Trust is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company reported a net loss of $197.94 million on $406.89 million of total revenue for the year ended Dec. 31 2010, compared with a net loss of $869.72 million on $423.84 million of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $2.77 billion in total assets, $3.81 billion in total liabilities and $1.04 billion in total deficit. The Company has been focused on reducing debt, eliminating repayment and debt service guarantees, extending debt maturities and disposing of properties with negative cash flow. The first phase of the Company's restructuring efforts is substantially complete and resulted in the resolution of 18 assets, relieving the Company of approximately $2.0 billion of debt obligations and potential guaranties of approximately $150 million. MUKAT INC: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Mukat Inc. dba Quality Inn & Suites 311 East Gaulbert Avenue Louisville, KY 40208 Bankruptcy Case No.: 11-31702 Chapter 11 Petition Date: April 3, 2011 Court: United States Bankruptcy Court Western District of Kentucky (Louisville) Debtor's Counsel: R. Eric Craig, Esq. HAYDEN & CRAIG, PLLC 718 West Main Street Suite 202 Louisville, KY 40207 Tel: (502) 638-2836 Fax: (502) 805-0705 E-mail: eric@haydencraig.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/kywb11-31702.pdf The petition was signed by Arvind Patel, president. Affiliates that previously sought bankruptcy protection: Petition Debtor Case No. Date ------ -------- ---- Manju And Arvind Patel 10-34914 09/15/10 Sonal Enterprises 10-30919 12/30/10 M-WISE INC: Incurs $1.94 Million Net Loss in 2010 ------------------------------------------------- m-Wise, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss and comprehensive loss of $1.94 million on $2.76 million of sales for the year ended Dec. 31, 2010, compared with net earnings and comprehensive income of $82,985 during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $716,052 in total assets, $2.21 million in total liabilities, and a $1.49 million stockholders' deficit. Stockholders' deficit was $868,610 at Sept. 30, 2010. SF Partnership, LLP, in Toronto, Canada, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/VPm5nJ About m-Wise, Inc. Based in Herzeliya Pituach, Israel, m-Wise, Inc. is a Delaware corporation that develops interactive messaging platforms for mobile phone-based commercial applications, transactions, and information services with internet billing capabilities. The Company's wholly-owned subsidiaries are: m-Wise Ltd., which is located in Israel and was incorporated in 2000 under the laws of Israel; and m-Wise Tecnologia LTDA., which is located in Brazil and was incorporated in 2009 under the laws of Brazil. NBC ACQUISITION: Weak Liquidity Cues S&P's CCC Corp. Credit Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its corporate credit rating on Lincoln, Neb.-based NBC Acquisition Corp. and its wholly owned operating subsidiary Nebraska Book Co. Inc. to 'CCC' from 'B-'. The 'CCC' rating indicates that, in S&P's opinion, NBC Acquisition is vulnerable to default. The outlook is developing. "In addition, we lowered the issue-level rating on the company's $75 million asset-based revolving credit facility due May 31, 2012, to 'B-' (two notches above the corporate credit rating) from 'B+'. The recovery rating is '1', indicating our expectation for very high (90%-100%) recovery in the event of payment default," S&P said. S&P continued, "Also, we lowered the rating on Nebraska Book's $200 million 10% senior secured notes due 2011 to 'CCC+' (one notch above the corporate credit rating) from 'B'. The recovery rating is '2', indicating our expectation for very high (70%-90%) recovery in the event of payment default." "Finally, we lowered the ratings on Nebraska Book's $175 million subordinated notes due 2012 and NBC Acquisition's $77 million subordinated notes due 2013 to 'CC' (two notches below the corporate credit rating) from 'CCC'. The recovery ratings on the issues are '6', indicating our expectation of negligible (0-10%) recovery in the event of a payment default," S&P related "The ratings on NBC Acquisition and its subsidiary, Nebraska Book Co., reflect weak liquidity, given our opinion that the company needs to refinance its debt or restructure because of near-term maturities," said Standard & Poor's credit analyst Jayne Ross. This may be somewhat difficult given that the company's results are highly seasonal (September quarter is the strongest) and, in our view, operating results have been weak over the past several quarters," S&P noted. "Overall, we view its financial risk profile as highly leveraged, given the substantial amount of debt outstanding, upcoming maturities, modest cash flow, and thin cash flow protection measures. In addition, we assess the business risk profile as vulnerable because of its relatively small size, highly seasonal operating results, increasing competition, lack of business diversification, and a weak economic environment," S&P added. NEDAK ETHANOL: Incurs $2.08 Million Net Loss in 2010 ---------------------------------------------------- Nedak Ethanol, LLC, filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $2.08 million on $94.77 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $9.23 million on $67.53 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $88.88 million in total assets, $55.35 million in total liabilities, and $33.53 million in total members' equity. McGladrey & Pullen, LLP, in Sioux Falls, South Dakota, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that there is uncertainty as to the Company's ability to cure credit agreement defaults and, therefore, to secure additional funds needed to fund ongoing operations. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/FnAuI1 About NEDAK Ethanol Atkinson, Neb.-based NEDAK Ethanol, LLC -- http://www.nedakethanol.com/-- operates a 44 million gallon per year ethanol plant in Atkinson, Nebraska, and produces and sells fuel ethanol and distillers grains, a co-product of the ethanol production process. Sales of ethanol and distillers grains began in January 2009. NEW SAIGON: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: New Saigon Development, LLC 9950 Westpark Drive, Suite 600 Houston, TX 77063 Bankruptcy Case No.: 11-32968 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Karen K. Brown Debtor's Counsel: Alan Sanford Gerger, Esq. DUNN NEAL ET AL 3050 Post Oak Blvd., Suite 400 Houston, TX 77056 Tel: (713) 403-7400 Fax: (713) 960-0204 E-mail: asgbkp@dnglegal.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-32968.pdf The petition was signed by Keith Truong, manager. NNN 2003: Sevens Building Sold to GECE for $17.40 Million --------------------------------------------------------- NNN 2003 Value Fund, LLC said in its current report on Form 8-K filed on Nov. 4, 2010, that it was in default of a loan that the Company, through NNN VF 7777 Bonhomme Avenue, LLC, the Company's wholly owned subsidiary, had entered into with General Electric Capital Corporation, or the lender, on Oct. 25, 2007, in connection with the Company's purchase of Sevens Building, located in St. Louis, Missouri, due to non-payment of the outstanding principal balance upon maturity of the loan on Oct. 31, 2010. The loan with the lender was evidenced by a loan agreement and a non- recourse promissory note in the original principal amount of $23,500,000 and was secured by a deed of trust, security agreement and fixture filing, or the loan agreement. As noted in the Company's annual report on Form 10-K filed on March 18, 2011, the Company had received a letter from the lender on March 7, 2011, indicating that the lender had initiated a foreclosure action on the Sevens Building property pursuant to the Company's default of the loan agreement and that a successor trustee had been appointed by the lender to conduct a public auction for the sale of the Sevens Building property on March 25, 2011. On March 25, 2011, the successor trustee appointed by the lender conducted a public auction and sold the Sevens Building property to General Electric Credit Equities, an entity affiliated with the lender, or the buyer, for a sale price of $17,400,000. As a result of the sale, the Company's 100% ownership interest in the Sevens Building property was sold and conveyed to the buyer and a trustee's deed was recorded on the Sevens Building property in favor of the buyer. The Company did not receive any cash proceeds from the sale of the property as the sale price was less than the outstanding principal balance of the loan, which was $21,494,000 at the time of the sale. The Company's manager, Grubb & Ellis Realty Investors, LLC, was not paid a disposition fee in connection with the sale of the property. About NNN 2003 Santa Ana, Calif.-based NNN 2003 Value Fund, LLC, was formed as a Delaware limited liability company on June 19, 2003. The Company was organized to acquire, own, operate and subsequently sell its ownership interests in a number of unspecified properties believed to have higher than average potential for capital appreciation, or value-added properties. Grubb & Ellis Realty Investors, LLC, serves as the Fund's manager, pursuant to the terms of an operating agreement. The Company reported a consolidated net loss of $493,000 on $6.85 million of rental revenue of operations held for non-sale disposition for the year ended Dec. 31, 2010, compared with a consolidated net loss of $9.09 million on $6.95 million of rental revenue of operations held for non-sale disposition during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $32.68 million in total assets, $44.75 million in total liabilities, and a $12.07 million total deficit. Ernst & Young LLP, in its March 18, 2011 report accompanying the Form 10-K report, noted that the Company has incurred recurring losses and has a working capital deficiency. In addition, the Company has not complied with certain covenants of loan agreements and does not have sufficient cash flow to repay mortgage loans that are past due and in default. These conditions raise substantial doubt about the Company's ability to continue as a going concern. NUMOBILE INC: Incurs $2.99 Million Net Loss in 2010 --------------------------------------------------- NuMobile, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $2.99 million on $403,331 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.50 million on $177,815 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.82 million in total assets, $9.32 million in total liabilities, and a $5.50 million total stockholders' deficit. Gruber and Company, LLC, in Lake St. Louis, Missouri, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss of $2.99 million, used cash for operations of $564,669 for the year ended Dec. 31, 2010, has an accumulated deficit of $12.34 million as of Dec. 31, 2010 and has a working capital deficit of $9.29 million as of Dec. 31, 2010. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/UwAWYc About Numobile Inc. Louisville, Ky.-based NuMobile, Inc. (OTC BB: NUBL) currently conducts its operations through its subsidiaries Enhance Network Communications, Inc. and Stonewall Networks, Inc. Enhance provides a wide variety of services from infrastructure architect to software as a service supplier. Stonewall Networks has built the Cornerstone Security Policy Manager. Cornerstone, a centralized IT security policy manager, is an engine for security policy modeling, implementation, monitoring, enforcement, and auditing. NXT NUTRITIONALS: Incurs $17.40 Million Net Loss in 2010 -------------------------------------------------------- NXT Nutritionals, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $17.40 million on $187,516 of sales for the year ended Dec. 31, 2010, compared with a net loss of $23.95 million on $905,728 of sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $2.24 million in total assets, $14.79 million in total liabilities, and a $12.55 million total stockholders' deficit. Berman & Company, P.A, in Boca Raton, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss of $17,402,736 and net cash used in operations of $3,035,079 for the year ended Dec. 31, 2010; and a working capital deficit and stockholders' deficit of $11,076,205 and $12,547,616, respectively, at Dec. 31, 2010, A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/YxbOxC About NXT Nutritionals Holyoke, Mass.-based NXT Nutritionals Holdings, Inc. (OTC: NXTH) - - http://www.nxtnutritionals.com/-- through its wholly owned subsidiary NXT Nutritionals, Inc., is engaged in developing and marketing of a proprietary, patent-pending, all-natural sweetener sold under the brand name SUSTA(TM) and other food and beverage products. SUSTA(TM) is being sold as a stand-alone product and it is the common ingredient for all of the Company's products. NXT NUTRITIONALS: Delays 29-Mil. Shares Registration ---------------------------------------------------- NXT Nutritionals Holdings, Inc., filed with the U.S. Securities and Exchange Commission an Amendment No. 1 to its Form S-1 registration statement relating to the resale by selling security holders of 29,188,876 shares of the Company's common stock, $0.001 par value, including (i) 22,670,972 shares of common stock issuable upon conversion of the principal amount of the Notes and (ii) 6,517,904 shares of common stock issuable upon exercise of the Series C Warrants, which were issued in the private placement closed on Feb. 26, 2010. The Company amends the Registration Statement to delay its effective date until the Company will file a further amendment which specifically states that the Registration Statement will thereafter become effective. The Company is not selling any shares of its common stock in this offering and, as a result, the Company will not receive any proceeds from the sale of the common stock covered by this prospectus. All of the net proceeds from the sale of the Company's common stock will go to the selling security holders. The Company may, however, receive proceeds in the event that some or all of the Warrants held by the selling security holders are exercised for cash. The selling security holders may sell common stock from time to time at prices established on the OTCBB or as negotiated in private transactions, or as otherwise described under the heading "Plan of Distribution." The common stock may be sold directly or through agents or broker-dealers acting as agents on behalf of the selling security holders. The selling security holders may engage brokers, dealers or agents who may receive commissions or discounts from the selling security holders. The Company will pay all the expenses incident to the registration of the shares; however, the Company will not pay for sales commissions or other expenses applicable to the sale of its common stock registered hereunder. The Company's common stock is quoted on the OTCBB under the symbol "NXTH.OB." On Dec. 28, 2010, the closing bid price of the Company's common stock was $0.23 per share. These prices will fluctuate based on the demand for the Company's common stock. A full-text copy of the prospectus, as amended, is available for free at http://is.gd/66ePZr About NXT Nutritionals Holyoke, Mass.-based NXT Nutritionals Holdings, Inc. (OTC: NXTH) - - http://www.nxtnutritionals.com/-- through its wholly owned subsidiary NXT Nutritionals, Inc., is engaged in developing and marketing of a proprietary, patent-pending, all-natural sweetener sold under the brand name SUSTA(TM) and other food and beverage products. SUSTA(TM) is being sold as a stand-alone product and it is the common ingredient for all of the Company's products. The Company reported a net loss of $17.40 million on $187,516 of sales for the year ended Dec. 31, 2010, compared with a net loss of $23.95 million on $905,728 of sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $2.24 million in total assets, $14.79 million in total liabilities and $12.55 million in total stockholders' deficit. Berman & Company, P.A, in Boca Raton, Fla., in its March 31, 2011 report accompanying the 2010 Annual Report, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss of $17,402,736 and net cash used in operations of $3,035,079 for the year ended Dec. 31, 2010; and a working capital deficit and stockholders' deficit of $11,076,205 and $12,547,616, respectively, at Dec. 31, 2010, OLD AUGUSTA: Commissioners Face Fraud & Negligence Suit ------------------------------------------------------- The Savannah Morning News reports that Benjamin Roach, as chapter 7 bankruptcy trustee for Darrell Morgan, has filed a motion to add Commissioner Reggie Loper and former Commissioners Hubert Sapp, Myra Lewis, Jeffrey Utley and Verna Phillips, along with Crawley, to a suit filed in Effingham County Superior Court on behalf of Mr. Morgan in January. According to the report, the suit alleges county promises to bring water and sewer infrastructure to his property were "misrepresentations" and constitute fraud and negligence. Attorneys for the Old Augusta Development Group also filed a motion in U.S. Bankruptcy Court, in a suit similar to Mr. Morgan's, to add Commissioner Sapp, along with newly elected Commissioners Vera Jones, Phil Kieffer and Steve Mason. The motion also asks to add Crawley and County Engineer Steve Liotta. The report says both complaints allege they each relied on county promises to bring water and sewer to their property in purchasing the land. Mr. Morgan's complaint also alleges the false representations by the county to provide the infrastructure were made to induce he and others to provide letters of credit to help the county obtain loans from the Georgia Environmental Finance Authority. Based in Rincon, Georgia, Old Augusta Development Group, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ga. Case No. 10-41302) on June 23, 2011. James L. Drake, Jr., Esq., represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. Darrell Trent Morgan filed a Chapter 11 petition (Bankr. S.D. Ga. Case No. 09-41270) on June 17, 2009, scheduling assets of $1,906,369 and liabilities of $3,213,701 as of the Chapter 11 filing. J. Michael Hall, Esq., at Hall & Kirkland, PC, in Statesboro, Georgia, serves as counsel to the Debtor. OMNICOMM SYSTEMS: Incurs $3.13 Million Net Loss in 2010 ------------------------------------------------------- OmniComm Systems, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $3.13 million on $12.42 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $8.07 million on $9.55 million of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $4.12 million in total assets, $21.93 million in total liabilities, and a $17.81 million total shareholders' deficit. Greenberg & Company LLC, in Springfield, New Jersey, noted that the Company has incurred losses and has a net capital deficiency that raise substantial doubt about the Company's 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/FYPJR0 Ft. Lauderdale, Fla.-based OmniComm Systems, Inc. (OTC: OMCM.OB) -- http://www.OmniComm.com/-- provides customer-driven Internet solutions to pharmaceutical, biotechnology, research and medical device organizations that conduct life changing clinical trial research. ONE RENAISSANCE: Wants to Use Wells Fargo's Cash Collateral ----------------------------------------------------------- One Renaissance LLC asks the U.S. Bankruptcy Court for the Eastern District of North Carolina for authority to use cash collateral Wells Fargo Bank, N.A., successor by merger to Wells Fargo Bank Minnesota, N.A., as trustee for the registered holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2001-CK1. A hearing is set for April 11, 2011, at 10:30 a.m. to consider the Debtor's request. The Debtor tells the Court that it will require necessary funds for operating its business and other expenses. The Debtor will provide a budget specifying these expenses. The Debtor represents that a reorganization and continuation of its operations will generate the greatest source of funds for creditors, including secured creditors. The Debtor will require access to the cash collateral generated by its operations in order to allow it to remain in business. The Debtor and Wells Fargo are parties to that certain Note and Deed of Trust and Security Agreement Collateral Includes Fixtures, executed on December 15, 2000 and recorded on Dec. 15, 2000. The Debtor proposes to grant Wells Fargo a security interest in and to any and all leases affecting the property all rents, issues, profits, revenue, income and other benefits and rights arising out of, attributable to or generated from all or a portion of the Property from the use, occupancy, operating or management thereof or from the leases. Raleigh, North Carolina-based One Renaissance, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11- 01793) on March 9, 2011. Jason L. Hendren, Esq., at Hendren & Malone, PLLC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ONE RENAISSANCE: Has Until June 7 to File Chapter 11 Plan --------------------------------------------------------- The Hon. Randy D. Doub of the U.S. Bankruptcy Court for the Eastern District of North Carolina set June 7, 2011, as deadline for One Renaissance LLC to file a disclosure statement explaining a Chapter 11 plan. A status conference hearing is set for April 4, 2011, at 10:30 a.m., at Wilson Courtroom. Raleigh, North Carolina-based One Renaissance, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11- 01793) on March 9, 2011. Jason L. Hendren, Esq., at Hendren & Malone, PLLC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million as of the Chapter 11 filing. OSI RESTAURANT: Swings to $27.8-Mil. Profit in 2010 --------------------------------------------------- OSI Restaurant Partners, LLC, filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting net income of $27.84 million on $3.62 billion of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $54.40 million on $3.60 billion of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $2.48 billion in total assets, $2.56 billion in total liabilities, and a $77.93 million total deficit. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/qPmpYt About OSI Restaurant OSI Restaurant Partners, Inc., is the #3 operator of casual-dining spots (behind Darden Restaurants and Brinker International), with more than 1,400 locations in the U.S. and 20 other countries. Its flagship Outback Steakhouse chain boasts more than 950 locations that serve steak, chicken, and seafood in Australian-themed surroundings. OSI also operates the Carrabba's Italian Grill chain, with about 240 locations. Other concepts include Bonefish Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise. Most of the restaurants are company owned. A group led by Chairman Chris Sullivan took the company private in 2007. PARKWAY NORTH: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Parkway North, Inc. fka Transcontinental Westgrove, Inc. 1750 Valley View Lane, Ste. 440 Dallas, TX 75234 Bankruptcy Case No.: 11-32294 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Melissa S. Hayward, Esq. FRANKLIN SKIERSKI LOVALL HAYWARD LLP 10501 N. Central Expry, Ste. 106 Dallas, TX 75231 Tel: (972) 755-7104 Fax: (972) 755-7114 E-mail: MHayward@FSLHlaw.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 Ronald F. Akin, president. PARK OHIO: Moody's Corrects April 1 Release, Assigns B3 Rating -------------------------------------------------------------- Moody's Investors Service has corrected an April 1 release on Park-Ohio Industries, Inc., substituting 'B2' for 'B3' for Corporate Family Rating and Probability of Default Rating in the list of ratings affirmed. The revised release is: Moody's Investors Service assigned a B3 rating to Park-Ohio Industries, Inc.'s new $250 million senior notes due 2021, and affirmed the company's B2 Corporate Family Rating. These new notes replace the previously proposed (but never issued) $250 million senior subordinated notes, the rating on which is being withdrawn concurrent with assignment of rating to the new notes. Park-Ohio intends to refinance its existing asset-based senior secured revolving credit facility, senior secured term loans, and senior subordinated notes with the proceeds of the $250 million senior notes issuance and drawing down on an amended $200 million asset-based senior secured revolving credit facility. This transaction will improve the company's debt maturity profile and liquidity on a pro forma basis. The rating on the existing senior subordinated notes due 2014 will be withdrawn at the completion of the refinancing transaction. The rating outlook is stable. Ratings Rationale The B2 rating favorably reflects a broad product portfolio, relatively diversified customer base, expected cyclical improvement in end markets, and countercyclical cash flows that support liquidity during an economic downturn. A good near-term liquidity position and extension of the company's debt maturity profile by its proposed refinance transaction also support the CFR. The CFR also reflects improved liquidity and leverage metrics for Park-Ohio and Moody's expectations for continued operating improvement. However, the CFR is constrained by small scale, high debt leverage, and exposure to cyclical end markets. Refer to Moody's press release on Park-Ohio dated March 10, 2011, for additional rating rationale information. These summarizes the rating actions: Ratings assigned: -- New $250 million 8.125% senior notes due 2021 at B3 ( LGD 5; 73%) Ratings affirmed: -- Corporate Family Rating at B2 -- Probability of Default Rating at B2 -- $183 million senior subordinated notes due 2014 at B3 (LGD 5; 77%)* * to be withdrawn after completion of refinancing transaction. Ratings withdrawn: -- Proposed $250 million senior subordinated notes due 2021 at B3 (LGD 5; 73%) Outlook remains stable. The principal methodologies used in this rating were Global Automotive Supplier Industry published in January 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Park-Ohio Industries, Inc., headquartered in Cleveland, Ohio, is an industrial supply chain logistics and diversified manufacturing business operating in three segments: Supplier Technologies, Aluminum Products, and Manufactured Products. Park-Ohio's revenues were $814 million in 2010. PARRIS PROPERTIES: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Parris Properties, L.L.C. 740 Winterville Road Athens, GA 30605 Bankruptcy Case No.: 11-30583 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Middle District of Georgia (Athens) Debtor's Counsel: Ernest V. Harris, Esq. HARRIS & LIKEN, L.L.P. P.O. Box 1586 Athens, GA 30603 Tel: (706) 613-1953 Fax: (706) 613-0053 E-mail: ehlaw@bellsouth.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/gamb11-30583.pdf The petition was signed by Kenneth O. Parris, member/manager. PATTON STREET: Case Summary & 7 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Patton Street Business Park, Inc. 5825 Patton Street Corpus Christi, TX 78414 Bankruptcy Case No.: 11-20201 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Southern District of Texas (Corpus Christi) Judge: Richard S. Schmidt Debtor's Counsel: Nathaniel Peter Holzer, Esq. JORDAN HYDEN WOMBLE CULBRETH & HOLZER PC 500 N Shoreline Dr, Suite 900 Corpus Christi, TX 78471 Tel: (361) 884-5678 Fax: (361) 888-5555 E-mail: ecf@jhwclaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-20201.pdf The petition was signed by Edward Naro, president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- McMillan-Naro Condominium, Inc. 11-20202 04/04/11 PENN VIRGINIA: S&P Affirms 'BB-' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on Radnor, Pa.-based exploration and production (E&P) company Penn Virginia Corp. (PVA) to negative from stable. "At the same time, we affirmed the 'BB-' corporate credit rating on the company. We also assigned a 'BB-' issue rating to the company's proposed $250 million senior unsecured notes due 2019. The recovery rating on this debt is '3', indicating our expectation of meaningful (50% to 70%) recovery in the event of a payment default," S&P said. "The rating action reflects the likelihood of weakened financial performance over the course of 2011 due to poor natural gas prices," said Standard & Poor's credit analyst Patrick Y. Lee. With the increased debt and poor natural gas pricing environment, PVA will see deteriorating credit metrics that it will be unable to offset financially because of its substantial reliance on natural gas (more than 80% of total 2010 production and about 75% of expected 2011 production). "The ratings on Penn Virginia Corp. reflect the oil and gas E&P industry's highly capital-intensive and cyclical nature, PVA's limited scale and product diversity, negative free cash flow, aggressive debt leverage and our view that U.S. natural gas prices are likely to remain weak in the near to intermediate term. The ratings also take into account PVA's positions in industry-leading plays and its adequate liquidity," S&P continued. The outlook is negative, reflecting the company's deteriorating credit metrics and the poor natural gas pricing environment. "We could lower the rating if credit measures continue to worsen and if debt to EBITDAX approaches 3.5x. We could stabilize the rating if natural gas prices markedly improve or if substantial deleveraging occurs so that leverage falls below 3x on a sustained basis. In light of the asset base and poor natural gas prices, the likelihood of an upgrade is minimal unless scope and size substantially increase and credit metrics materially improve," S&P noted. PHYSICAL PROPERTY: Incurs HK$640,000 Net Loss in 2010 ----------------------------------------------------- Physical Property Holdings Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss and total comprehensive loss of HK$640,000 on HK$765,000 of rental income for the year ended Dec. 31, 2010, compared with a net loss and total comprehensive loss of HK$899,000 on HK$602,000 of rental income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $HK$10.68 million in total assets, HK$11.17 million in total liabilities, and a $HK$493,000 stockholders' deficit. Mazars CPA Limited, in Hongkong, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company had a negative working capital as of Dec. 31, 2010 and incurred loss for the year then ended. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/DY91xb Physical Property Holdings Inc. (formerly known as Physical Spa & Fitness Inc.), through its wholly-owned subsidiary Good Partner Limited, owns five residential apartments located in Hong Kong. The Company was incorporated on September 21, 1988, under the laws of the United States of America. PLATINUM ENERGY: Delays Filing of 2010 Annual Report ---------------------------------------------------- Platinum Energy Resources, Inc., notified 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. On Nov. 24, 2010, Maverick Engineering, Inc., a wholly owned subsidiary of the Company filed bankruptcy under Chapter 11 of the Bankruptcy Code. The Company is unable to file, without unreasonable effort and expense, its Form 10-K because the Company and its auditors have not yet completed their review of the segregated financial statements. The Company intends to have the Form 10-K filed as soon as practicable, and in no event later than the fifteenth calendar day following the prescribed due date. About Platinum Energy Houston, Tex.-based Platinum Energy Resources, Inc. -- http://www.platenergy.com/-- is an independent oil and gas exploration and production company. The Company has approximately 37,000 acres under lease in relatively long-lived fields with well-established production histories. The properties properties are concentrated primarily in the Gulf Coast region in Texas, the Permian Basin in Texas and New Mexico, and the Fort Worth Basin in Texas. GBH CPAs, PC, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended Dec. 31, 2009. The independent auditors noted that the Company has experienced significant losses since inception and is currently in default of its debt agreements. The Company has incurred significant losses, resulting in cumulative losses of $113,747,702 through Sept. 30, 2010. At Sept. 30, 2010, the Senior Credit Facility balance was approximately $5.15 million. The Company's current cash on hand of $2,395,820 is not adequate to satisfy the debt. Also, the Company has negative working capital of $8,168,992. Currently the Company is looking at various ways of correcting these issues, including exploring joint venture opportunities as well as a thorough analysis of our specific assets for potential divestiture. Further the Company has assets and liabilities that could be affected by unfavorable outcomes of litigation in progress. POINT BLANK: Seeks to Hire Baker & McKenzie as Counsel ------------------------------------------------------ BankruptcyData.com reports that Point Blank Solutions' official committee of equity security holders filed with the U.S. Bankruptcy Court a motion to retain Baker & McKenzie (Contact: Carmen Lonstein) as counsel for these hourly rates: * partner at $500 to $1000, * of counsel at $400 to $700, * associate at $295 to $600, and * paraprofessional at $100 to $300. About Point Blank Headquartered in Pompano Beach, Florida, Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, as well as select international markets. The Company maintains facilities in Pompano Beach, Florida, and Jacksboro, Tennessee. The Company's former chief executive officer and chief operating officer were convicted in September 2010 of orchestrating a $185 million fraud. Point Blank Solutions, formerly DHB Industries, filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on April 14, 2010. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves as corporate counsel. T. Scott Avila of CRG Partners Group LLC is the restructuring officer. Epiq Bankruptcy Solutions serves as claims and notice agent. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Equity Security Holders in the case. The Equity Committee has tapped Morrison Cohen LLP, and The Bayard, P.A., as counsel. Robert M. Hirsh, Esq., and Heike M. Vogel, Esq., at Arent Fox LLP, serve as counsel to the Creditors Committee, and Frederick B. Rosner, Esq., and Brian L. Arban, Esq., at Messana Rosner & Stern LLP, serve as co-counsel. PURADYN FILTER: Delays Filing of 2010 Annual Report --------------------------------------------------- Puradyn Filter Technologies Incorporated notified 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. The Company said additional time is required to insure that a complete filing is submitted. About Puradyn Filter Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) -- http://www.puradyn.com/-- designs, manufactures, markets and distributes worldwide the puraDYN(R) bypass oil filtration system for use with substantially all internal combustion engines and hydraulic equipment that use lubricating oil. The Company's balance sheet at Sept. 30, 2010, showed total assets of $1,996,583, total liabilities of $7,984,914, and a stockholders' deficit of $5,988,331. Going Concern Doubt Webb and Company, P.A., in Boynton Beach, Florida, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended Dec. 31, 2009. The independent auditors noted that the Company has suffered recurring losses from operations, its total liabilities exceed its total assets, and it has relied on cash inflows from an institutional investor and current stockholder. PURSELL HOLDINGS: Creditors Have Until May 2 to File Claims ----------------------------------------------------------- The Hon. Jerry W. Venters of the U.S. Bankruptcy Court for the Western District of Missouri set May 2, 2011, as deadline for creditors of Pursell Holdings LLC to file proofs of claim. All claims must be filed at: U.S. Bankruptcy Court Charles Evans Whittaker Courthouse 400 East 9th Street, Room 1510 Kansas City, MO 64106 About Pursell Holdings Liberty, Missouri-based Pursell Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Mo. Case No. 11-40999) on March 10, 2011. Frank Wendt, Esq., Brown & Ruprecht, P.C., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $12,204,248 in assets and $23,382,741 in debts. Affiliate Damon Pursell Construction Company filed a separate Chapter 11 petition (Bankr. W.D. Mo. Case No. 10-44965) on Sept. 15, 2010. PURESPECTRUM INC: Delays Filing of 2010 Annual Report ----------------------------------------------------- PureSpectrum, Inc., informed the U.S. Securities and Exchange Commission that its annual report could not be filed within the prescribed time period due to the Company requiring additional time to prepare and review the annual report for the period ended Dec. 31, 2010. Such delay could not be eliminated by the Company without unreasonable effort and expense. In accordance with Rule 12b-25 of the Securities Exchange Act of 1934, the Company will file its Form 10-K no later than fifteen calendar day following the prescribed due date. About PureSpectrum, Inc. Savannah, Ga.-based PureSpectrum, Inc. (OTC: PSRU) -- http://www.purespectrumlighting.com/-- is engaged in the development, marketing, licensing, and contract manufacturing of lighting technology for use in residential, commercial, and industrial applications worldwide. The Company's balance sheet at Sept. 30, 2010, showed $1.14 million in total assets, $2.75 million in total current liabilities, $363,350 in total long-term liabilities, and a stockholders' deficit of $1.97 million. QWEST COMMUNICATIONS: Common Stock Delisted From NYSE ----------------------------------------------------- The New York Stock Exchange LLC notified the U.S. Securities and Exchange Commission regarding the removal from listing or registration of Qwest Communications International Inc.'s common stock. About Qwest Based in Denver, Colorado, Qwest Communications (NYSE: Q) -- http://www.qwest.com/-- offers residential customers a new generation of fiber-optic Internet service, high-speed Internet solutions, as well as digital home phone, wireless service available through Verizon Wireless and DIRECTV services. Qwest is also the choice of 95% of Fortune 500 companies, offering a full suite of network, data and voice services for small businesses, large businesses, government agencies and wholesale customers. Additionally, Qwest participates in Networx, the largest communications services contract in the world, and is recognized as a leader in the network services market by leading technology industry analyst firms. Qwest carries a 'Ba1' corporate family and probability of default ratings from Moody's and has 'BB' issuer credit ratings from Standard & Poor's. "Our high debt levels pose risks to our viability and may make us more vulnerable to adverse economic and competitive conditions, as well as other adverse developments," the Company said in its Form 10-K for the year ended Dec. 31, 2009. At Dec. 31, the Company's consolidated debt was approximately $14.2 billion. Approximately $5.8 billion of its debt obligations come due over the next three years. This amount includes $1.265 billion of our 3.50% Convertible Senior Notes due 2025, which it may elect to redeem at any time on or after November 20, 2010 and holders may require the Company to repurchase for cash on November 15, 2010. Fitch Ratings is maintaining the Rating Watch Positive on the 'BB' Issuer Default Rating assigned to Qwest Communications International, Inc. and its subsidiaries. Concurrently, Fitch has affirmed the 'BBB-' issue rating assigned to Qwest's $1.035 billion senior secured credit facility and the senior unsecured debt issued by Qwest Corporation. Approximately $13.1 billion of debt outstanding as of June 30, 2010, including $7.9 billion of debt outstanding at QC, is affected by Fitch's action. RALPH FAIR: Case Summary & 17 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Ralph Fair, LLC 20079 Stone Oak Parkway, Suite 1105-430 San Antonio, TX 78258 Bankruptcy Case No.: 11-51209 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Western District of Texas (San Antonio) Judge: Ronald B. King Debtor's Counsel: Robert L. Barrows, Esq. WARREN, DRUGAN & BARROWS, P.C. 800 Broadway San Antonio, TX 78215 Tel: (210) 226-4131 Fax: (210) 224-6488 E-mail: rbarrows@wdblaw.com Scheduled Assets: $1,836,000 Scheduled Debts: $1,431,939 A list of the Company's 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb11-51209.pdf The petition was signed by George Atallah, president. REAL ESTATE ASSOCIATES: Reports $171,000 Net Income in 2010 ----------------------------------------------------------- Real Estate Associates Limited VII filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting net income of $171,000 on $0 of interest income for the year ended Dec. 31, 2010, compared with a net loss of $691,000 on $2,000 of interest income during the prior year. Net profit generate in 2010 was on account of investments in limited partners. The Company's balance sheet at Dec. 31, 2010 showed $1.52 million in total assets, $20.80 million in total liabilities and a $19.28 million partners' deficit. Ernst & Young LLP, in Greenville, South Carolina, expressed substantial doubt about the Partnership's ability to continue as a going concern. According to the independent auditors, the Partnership continues to generate recurring operating losses. In addition, notes payable and related accrued interest totaling approximately $15,738,000 are in default due to non-payment. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/C5AdiZ About Real Estate Associates Real Estate Associates Limited VII is a limited partnership which was formed under the laws of the State of California on May 24, 1983. On February 1, 1984, the Partnership offered 2,600 units consisting of 5,200 limited partnership interests and warrants to purchase a maximum of 10,400 additional limited partnership interests through a public offering managed by E.F. Hutton Inc. The Partnership received $39,000,000 in subscriptions for units of limited partnership interests (at $5,000 per unit) during the period from March 7, 1984 to June 11, 1985. The principal business of the Partnership is to invest, directly or indirectly, in other limited partnerships which own or lease and operate Federal, state and local government-assisted housing projects. The general partners of the Partnership are National Partnership Investments Corp., a California Corporation, and National Partnership Investments Associates II. The business of the Partnership is conducted primarily by NAPICO, a subsidiary of Apartment Investment and Management Company, a publicly traded real estate investment trust. The Partnership holds limited partnership interests in 11 local limited partnerships as of both March 31, 2010, and Dec. 31, 2009. The Partnership also holds a general partner interest in Real Estate Associates IV, which, in turn, holds limited partnership interests in nine additional Local Limited Partnerships; therefore, the Partnership holds interests, either directly or indirectly through REA IV, in twenty (20) Local Limited Partnerships. The general partner of REA IV is NAPICO. The Local Limited Partnerships own residential low income rental projects consisting of 1,387 apartment units at both March 31, 2010, and Dec. 31, 2009. The mortgage loans of these projects are payable to or insured by various governmental agencies. Real Estate Associates reported a net loss of $215,000 on zero revenue for the three months ended Sept. 30, 2010, compared with a net loss of $225,000 on zero revenue for the same period a year ago. Real Estate's balance sheet at Sept. 30, 2010, showed $1.62 million in total assets, $20.62 in total liabilities, and a stockholders' deficit of $19.00 million. REALOGY CORP: Files Form S-1; Issues $2.11BB of 11.00% Sr. Notes ---------------------------------------------------------------- Realogy Corporation filed with the U.S. Securities and Exchange Commission a registration statement on Form S-1 relating to the issuance of $2,110,241,196 aggregate principal amount of 11.00% Convertible Senior Subordinated Notes due 2018, consisting of: (i) $1,143,706,000 aggregate principal amount of 11.00% Series A Convertible Senior Subordinated Notes due 2018; (ii) $291,424,196 aggregate principal amount of 11.00% Series B Convertible Senior Subordinated Notes due 2018; and (iii) $675,111,000 aggregate principal amount of 11.00% Series C Convertible Senior Subordinated Notes due 2018 on Jan. 5, 2011 in connection with Realogy's private debt exchange offers. The Series A Convertible Notes, Series B Convertible Notes and Series C Convertible Notes were issued under the same indenture, dated as of Jan. 5, 2011, by and among, Realogy, Domus Holdings Corp., Realogy's indirect parent corporation, the note guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, and are treated as a single class for substantially all purposes under the indenture. This prospectus will be used by the selling securityholders to resell their notes and the Class A Common Stock of Holdings, par value $0.01 per share, issuable upon conversion of the notes. The Company is registering the offer and sale of the notes and the shares of Class A Common Stock issuable upon conversion of the notes to satisfy registration rights the Company has granted. The Series A Convertible Notes bear interest at a rate of 11.00% per annum. The Series B Convertible Notes bear interest at a rate of 11.00% per annum. The Series C Convertible Notes bear interest at a rate of 11.00% per annum. Interest is payable semiannually to holders of record at the close of business on April 1 and October 1 immediately preceding the interest payment dates of April 15 and October 15 of each year. The notes are guaranteed on an unsecured senior subordinated basis by each of Realogy's U.S. direct or indirect restricted subsidiaries that is a guarantor under the 13.375% Senior Subordinated Notes. Subject to certain exceptions, any subsidiary that in the future guarantees the 13.375% Senior Subordinated Notes will also guarantee the notes. Holdings also guarantees the notes on an unsecured junior subordinated basis. The notes are convertible into Class A Common Stock at any time prior to April 15, 2018. Every $1,000 aggregate principal amount of Series A Convertible Notes or Series B Convertible Notes is convertible into 975.6098 shares of Class A Common Stock, which is equivalent to an initial conversion price of approximately $1.025 per share, and every $1,000 aggregate principal amount of Series C Convertible Notes is convertible into 926.7841 shares of Class A Common Stock, which is equivalent to an initial conversion price of approximately $1.079 per share, in each case subject to adjustments under certain conditions as set forth in the indenture. Upon the occurrence of a Qualified Public Offering, and at any time thereafter, Realogy may, at its option, redeem the notes, in whole or in part, at a redemption price, payable in cash, equal to 90% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. If Realogy undergoes a Change of Control, it must offer to repurchase the notes at 101% of the principal amount, plus accrued and unpaid interest and additional interest, if any, to the repurchase date. We are not selling any notes or shares of Class A Common Stock pursuant to this prospectus and will not receive any proceeds from sales of the securities registered herein by the selling securityholders. The selling securityholders may sell all or a portion of their notes and the Class A Common Stock issuable upon conversion thereof from time to time in market transactions, in negotiated transactions or otherwise, and at prices and on terms that will be determined by the prevailing market price or at negotiated prices. For more information regarding the sales of the notes and Class A Common Stock issuable upon conversion of the notes by the selling securityholders pursuant to this prospectus, please read "Plan of Distribution." There is no public market for the notes or Class A Common Stock and the Company does not intend to apply for listing of the notes or the Class A Common Stock on any securities exchanges or for quotation of these securities through any automated quotation systems. About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. It has 'Caa2' corporate family rating and 'Caa3' probability of default rating, with positive outlook, from Moody's. The rating outlook is positive. Moody's said in January 2011 that the 'Caa2' CFR and 'Caa3' PDR reflects very high leverage, negative free cash flow and uncertainty regarding the timing and strength of a recovery of the residential housing market in the US. Moody's expects Debt to EBITDA of about 14 times for the 2010 calendar year. Despite the recently completed and proposed improvements to the debt maturity profile, the Caa2 CFR continues to reflect Moody's view that current debt levels are unsustainable and that a substantial reduction in debt levels will be required to stabilize the capital structure. As reported in the February 8, 2011 edition of TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Realogy Corp. to 'CCC' from 'CC'. S&P removed the rating from CreditWatch, where it was placed with positive implications Jan. 18, 2011. The rating outlook is positive. In addition, S&P revised its recovery rating on the company's non- extended senior secured credit facilities to '1', indicating its expectation of very high (90% to 100%) recovery for lenders in the event of a payment default. S&P raised its issue-level rating on this debt to 'B-' -- two notches higher than the 'CCC' corporate credit rating -- in accordance with its notching criteria for a recovery rating of '1'. RED MOON: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Red Moon, Inc. dba RedMoon Broadband P.O. Box 865087 Plano, TX 75086-5087 Bankruptcy Case No.: 11-41080 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Judge: Brenda T. Rhoades Debtor's Counsel: Areya Holder, Esq. LAW OFFICE OF AREYA HOLDER, P.C. 800 West Airport Freeway, Suite 414 Irving, TX 75062 Tel: (972) 438-8800 Fax: (972) 438-8825 E-mail: areya@holderlawpc.com Estimated Assets: $100,001 to $500,000 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/txeb11-41080.pdf The petition was signed by Bryan Thompson, president. ROANOKE HEALTH: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Roanoke Health Care Authority dba Randolph Medical Center 59928 Highway 22 Roanoke, AL 36274 Bankruptcy Case No.: 11-80502 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Middle District of Alabama (Opelika) Judge: William R. Sawyer Debtor's Counsel: Lee R. Benton, Esq. BENTON AND CENTENO, LLP 2019 Third Avenue, North Birmingham, AL 35203 Tel: (205) 278-8000 Fax: (205) 278-8008 E-mail: lbenton@bcattys.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/almb11-80502.pdf The petition was signed by Trae Wilkinson, board chairman. ROYAL INVEST: Delays Filing of 2010 Annual Report ------------------------------------------------- Royal Invest International Corp. notified the U.S. Securities and Exchange Commission that the compilation, dissemination and audit of the information required to be presented in the form 10-K for the year 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 undertakes the responsibility to file such annual report no later than 15th calendar day after its original date. About Royal Invest Shelton, Conn.-based Royal Invest International Corp. (OTC BB: RIIC) -- http://www.royalinvestinternational.com/-- owns, operates and manages real estate, in Europe. At Sept. 30, 2010, the Company owned 17 properties located in the Netherlands. The properties aggregate approximately 77,594 square meters (approximately 835,215 square feet), which are comprised of office buildings and business centers. Effective June 30, 2010, the Company sold its majority ownership in Royal Invest Germany Properties 1 B.V. ("RIGP1"), a wholly-owned subsidiary which owned the Company's sole property in Germany. The Company has incurred a net loss of $6.4 million for the nine months ended Sept. 30, 2010, has an accumulated deficit of $71.5 million at Sept. 30, 2010, and is in default of its mortgage payable and related debt covenants at Sept. 30, 2010. The Company's balance sheet as of Sept. 30, 2010, showed $85.6 million in total assets, $144.9 million in total liabilities, and a stockholders' deficit of $59.3 million. As reported in the Troubled Company Reporter on April 21, 2010, Meyler & Company, LLC, in Middletown, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss of US$44.0 million for the year ended Dec. 31, 2009, an accumulated deficit of US$65.1 million at Dec. 31, 2009, is in default of one of the mortgages payable and related debt covenants at Dec. 31, 2009, and there are existing uncertain conditions which the Company faces relative to its obtaining financing and capital in the equity markets. S & S FOOD: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------- Debtor: S & S Food Corporation 4848 Military Parkway, Suite A Dallas, TX 75223 Bankruptcy Case No.: 11-32325 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser 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: $1,290,010 Scheduled Debts: $2,280,706 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb11-32325.pdf The petition was signed by Sadrudon Sherali, president. SAN ANGELO HOTEL: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: San Angelo Hotel & Conference Center, LLC 441 Rio Concho Drive San Angelo, TX 76903 Bankruptcy Case No.: 11-60066 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (San Angelo) Judge: Robert L. Jones Debtor's Counsel: Charles Dick Harris, Esq. LAW OFFICE OF DICK HARRIS, PC P.O. Box 3835 Abilene, TX 79604 Tel: (325) 677-3311 Fax: (325) 677-3314 E-mail: dharris_law_firm@swbell.net 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 Mark Harati, manager. SATELITES MEXICANOS: Files Prepackaged Chapter 11 Petition ---------------------------------------------------------- Satelites Mexicanos, S.A. de C.V. announced on April 6, 2011, that, as the next step in the implementation of its previously announced comprehensive balance sheet restructuring, the Company and its subsidiaries Alterna'TV Corporation and Alterna'TV International Corporation have filed voluntary petitions for a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. The petitions were filed in the U.S. Bankruptcy Court in the District of Delaware. Satmex previously announced that it had reached an agreement with the holders of more than two-thirds of the outstanding principal amount of its First Priority Senior Secured Notes due 2011 and Second Priority Senior Secured Notes due 2013 to support the Prepackaged Plan. As part of the implementation of the Prepackaged Plan, on March 8, 2011, the Debtors commenced a solicitation of votes on the Prepackaged Plan from holders of the Company's First Priority Notes and the Second Priority Notes. Based on the preliminary tabulation of votes filed with the Prepackaged Plan, the holders of the First Priority Notes and the Second Priority Notes voted overwhelmingly to accept the Prepackaged Plan. The proposed Prepackaged Plan provides for trade creditors to be unimpaired and paid in full and is structured to expedite the Company's emergence from bankruptcy while avoiding any day-to-day impact on suppliers, customers or employees during the short pendency of the case. As previously announced, Satmex has also entered into a commitment letter with Jefferies Finance LLC providing for $325 million of committed senior secured exit financing, which may be used, along with the proceeds of the previously-announced $96.25 million fully-backstopped rights offering of equity securities to holders of Second Priority Notes, to, among other things, repay the First Priority Notes as outlined in the Prepackaged Plan, fund the timely completion of Satmex 8, a satellite scheduled to be launched in 2012 to replace the Company's Satmex 5 satellite, and to purchase 100% of the current equity in Satmex as set forth in the Company's previous press release. Lazard and its Mexican alliance partner, Alfaro, Davila y Rios, S.C. are serving as financial advisors to Satmex. Greenberg Traurig is serving as U.S. counsel and Santamarina y Steta and Rubio Villegas & Asociados are serving as the Company's Mexican counsels. Jefferies & Company, Inc. is serving as the financial advisor to certain holders of the Second Priority Notes. Ropes & Gray LLP is serving as U.S. counsel and Cervantes Sainz as Mexican counsel to this group. Dechert LLP is serving as U.S. counsel to certain holders of the First Priority Notes. Galicia Abogados, S.C. is serving as Mexican counsel to this group. Bracewell & Giuliani LLP is serving as counsel to the Series B Directors of Satmex's Board. About Satmex SAB Satelites Mexicanos, S.A. de C.V., (Satmex) is a Mexico-based satellite service provider in Latin America. Satmex's fleet offers hemispheric and regional coverage throughout the Americas. Satmex's balance sheet as of June 30, 2010, showed US$438.29 million in assets, US$516.55 million in liabilities, and a US$78.26 million shareholder's deficit. Satmex had a net loss of US$6.12 million on US$53.06 million of revenue for the six months ended June 30, 2010, compared with a net loss of US$8.81 million on US$50.35 million of revenue for six months ended June 30, 2009. Satmex has a 'C' issuer rating and 'Ca' long term corporate family rating, with negative outlook, from Moody's Investors Service. SBARRO INC: Proposes $35 Million of DIP Financing ------------------------------------------------- Sbarro, Inc. and its affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to obtain postpetition secured financing from a syndicate of lenders, led by Cantor Fitzgerald Securities as administrative agent. The DIP Lenders have committed to provide up to (i) $16.5 million on an interim basis; and (ii) $35 million on a final basis (less the amount of the initial DIP Loan actually borrowed). Nicole L. Greenblatt, Esq., at Kirkland & Ellis LLP, explains that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties. A copy of the Debtors' DIP financing agreement is available for free at: http://bankrupt.com/misc/SBARRO_dipfinancingpact.pdf The Debtors seek authority to grant the DIP Agent, for its own benefit and the benefit of the DIP Lenders, senior, first priority, priming DIP Liens on the Collateral securing, and the super-priority claims in respect of, the obligations under the DIP Facility. The obligations of each loan party under the DIP Facility will be secured by: (i) a perfected first priority security interest and lien on all of the assets and property of the loan party; (ii) a perfected junior security interest and lien on the collateral of such Loan Party, to the extent that the collateral is subject to valid, perfected and unavoidable liens that were in existence immediately prior to the Petition Date, or to valid and unavoidable liens that were in existence immediately prior to the Petition Date that were perfected subsequent to the Petition Date; and (iii) a perfected first priority priming security interest and lien on the Collateral of the Loan Party, to the extent that the collateral is subject to the existing liens that secure the obligations of such Loan Party under the Prepetition First Lien Facility or the Prepetition Second Lien Facility or to a valid and enforceable right of setoff by any Prepetition Lender. The DIP Facility will mature six months after the closing of the DIP Facility. At the Debtors' option, the DIP facility may be extended for an additional three months upon satisfaction of certain conditions. The Debtor may elect either: (a) LIBOR plus 7.00% (with a LIBOR floor of 1.75%) or (b) Base Rate plus 6.00%. in the event of default, the Debtors will pay interest rate equal to (a) the Base Rate plus (b) the Applicable Margin applicable to Base Rate Loans (i.e., 6.00%) plus (c) 2.00% per annum; provided, however, that with respect to a Eurodollar Loan, the default rate will be an interest rate equal to the interest rate (including any Applicable Margin, i.e., 7.00%) otherwise applicable to such Loan plus 2.00% per annum. The DIP Credit Agreement contains these deadlines relating to the filing of the Chapter 11 plan and disclosure statement, including: a. filing of plan of reorganization within 60 days of the Petition Date that provides for full payment of administrative claims; b. entry of order by the Court approving the adequacy of the Debtors' disclosure statement for the acceptable plan within 90 days after the Petition Date; c. entry of order by the Court within 170 days of the Petition Date confirming the Acceptable Plan; and d. consummation of such plan within 180 days of the Petition Date (or, if earlier, within 30 days after entry of an order confirming the acceptable plan). The Debtors are required to pay these fees: (i) 0.75% on the unused portion of the outstanding term loan commitments under the DIP Facility; (ii) 2.00% of the total amount of the DIP Facility commitments, payable on the date of closing of the DIP Facility ratably to each DIP Lender on the basis of its respective commitments; and (iii) the term loans under the DIP Facility to be net funded with an original issue discount of 1.00% of the aggregate principal amount thereof. The original issue discount may take the form of an upfront fee. Cash Collateral Use The Debtors also ask the Court to allow them to use the cash collateral. The Debtors have outstanding debt for borrowed money in the aggregate principal amount of $368.2 million, consisting primarily of: (a) $172.7 million in secured debt under their first lien senior secured credit facility, plus $3.5 million in letters of credit; (b) $34.2 million in secured debt under their Prepetition Second Lien Facility; plus fees, costs and other charges and (c) $157.8 million in senior notes (inclusive of the $8 million missed interest payment in March, 2011). The Debtors' principal prepetition funded debt obligations arise under that certain Credit Agreement dated as of Jan. 31, 2007, by and among Sbarro, as borrower, and Sbarro Holdings, LLC, and certain of the other Debtors, as guarantors, Cantor Fitzgerald Securities, as successor administrative agent, and certain lenders from time to time party thereto, which provided the Debtors with a $25.0 million revolving line of credit. All obligations under the Prepetition First Lien Facility are guaranteed by Holdings as well as certain of Sbarro's domestic subsidiaries, all of which are Debtors in these Chapter 11 cases. The Debtors' obligations under the Prepetition First Lien Facility, including the guarantees thereof, are also secured by first priority perfected security interests in substantially all the assets of Sbarro, as well as all capital stock of Sbarro, Inc., and its domestic subsidiaries and up to 65% of the outstanding capital stock of Sbarro's foreign subsidiaries. The Debtors have funded debt obligations arising under that certain Second Lien Credit Agreement dated as of March 26, 2009, by and among Sbarro, as borrower, certain of the Debtors as guarantors, Wilmington Trust FSB as successor administrative agent and collateral agent and certain lenders from time to time party thereto. The Prepetition Second Lien Facility provided the debtor with $25.5 million in secured term loans. All obligations under the Prepetition Second Lien Facility are guaranteed by the Prepetition Guarantors. The Debtors' obligations under the Prepetition Second Lien Facility, including the guarantees thereof, are also secured by second priority perfected liens and security interests in substantially all the assets and capital stock of Sbarro and its domestic subsidiaries as well as up to 65% of the outstanding capital stock of Sbarro's foreign subsidiaries. Prior to the Petition Date, Sbarro issued $150 million in 10.375% Senior Notes due 2015. The Notes are governed by that certain Indenture dated as of Jan. 31, 2007, by and among Sbarro, as issuer, certain domestic subsidiaries of Sbarro, as guarantors, and The Bank of New York, as trustee. The Notes Indenture provides that the Notes rank equally in right of payment with all of the Debtors' existing and future senior indebtedness. The Notes are effectively subordinated to all of the Debtors' secured indebtedness to the extent of the collateral securing such indebtedness. In exchange for the cash collateral use, the Debtors will grant: a. Prepetition First Lien Lenders: (i) a lien junior to the liens securing the DIP Facility on all of the collateral securing the DIP Facility; (ii) a superpriority claim, immediately junior to the claims under Section 364(c)(1) of the U.S. Bankruptcy Code held by the DIP Agent and DIP Lenders; (iii) payment of current cash interest at the contractual default rate in respect of the First Lien Credit Agreement; (iv) payment of all fees and expenses of the Prepetition First Lien Agent in accordance with the terms of the Interim and final DIP court orders; (v) all written information required to be provided to the DIP Agent or DIP Lenders; (vi) application of proceeds from asset sales first to repayment of unpaid obligations under the Prepetition First Lien Facility until such obligations are paid in full and second to the repayment of unpaid obligations under the Prepetition Second Lien Facility; (vii) compliance with certain covenants to be included in the DIP Credit Agreement in respect of the achievement of milestones relating to confirmation of a Chapter 11 plan of reorganization; and (viii) the usual and customary claims, priorities and other protections provided to pre-petition secured creditors in situations of this kind; and b. Prepetition Second Lien Lenders will be entitled to receive as adequate protection liens on all of the collateral securing the obligations under the DIP Facility that are junior to the First Lien Adequate Protection Liens. The Prepetition Agents and the Prepetition Lenders are entitled to adequate protection of their interests in the prepetition collateral, including the cash collateral, for diminution in value of the collateral securing the obligations under the Prepetition Facilities, as well as for any decline in, or diminution of, the value of the Prepetition Lenders' liens or security interests under the Prepetition Facilities. Portion of $35-Mil. Loan Approved Dow Jones' DBR Small Cap reports a judge on Tuesday said Sbarro Inc. can tap nearly half of its $35 million bankruptcy loan from a group of its first-lien lenders, one day after the pizza chain filed for Chapter 11 protection. Judge Shelley C. Chapman of U.S. Bankruptcy Court in Manhattan said Sbarro can immediately access $16.5 million, which will be used to provide the company with working capital and fund its bankruptcy case. DBR notes a lawyer for Sbarro's senior noteholders said his group still doesn't support the restructuring plan, which has not yet been approved by creditors or officially presented to the court. He said it leaves the company with too much leverage. About Sbarro, Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. Sbarro disclosed assets of $471 million and debt of $486.6 million as of the Chapter 11 filing. Sbarro said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SBARRO INC: Taps Epiq Bankruptcy as Notice & Claims Agent --------------------------------------------------------- Sbarro, Inc., et al., ask for authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ Epiq Bankruptcy Solutions, LLC, as notice and claims agent, nunc pro tunc to the Petition Date. Epiq will, among other things: (a) notify potential creditors of the filing of the bankruptcy petitions and of the setting of the first meeting of creditors; (b) prepare and serve required notices in the Debtors' Chapter 11 cases; (c) notify potential creditors of the existence and amount of their respective claims as evidenced by the Debtors' books and records and as set forth in the schedules; and (d) docket all claims received by the Clerk's Office, maintain the official claims registers for each Debtor on behalf of the Clerk's Office, and provide the Clerk's Office with certified duplicate, unofficial Claims Registers on a monthly basis, unless otherwise directed. Epiq will be paid based on the hourly rates of its professionals: Clerk $34-$51 Case Manager (Level 1) $106-$149 IT Programming Consultant $119-$161 Case Manager (Level 2) $157-$187 Senior Case Manager $191-$234 Senior Consultant $250 Jason D. Horwitz, Vice President and Senior Consultant of Epiq, assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Sbarro, Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. Sbarro disclosed assets of $471 million and debt of $486.6 million as of the Chapter 11 filing. Sbarro said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Sard Verbinnen & Co is the Debtors' communications advisor. SBARRO INC: Asks Court to Extend Time for Filing of Schedules ------------------------------------------------------------- Sbarro, Inc., et al., ask the U.S. Bankruptcy Court for the Southern District of New York to extend the deadline for the filing of schedules of assets and liabilities, schedules of current income and expenditures, schedules of executory contracts and unexpired leases and statements of financial affairs for an additional 16 days to a total of 30 days from the Petition Date. The Debtors said that the scope and complexity of the Debtors' businesses, coupled with the limited time and resources available to the Debtors to marshal the required information, necessitate an extension of the deadline to file the Schedules and Statements. About Sbarro, Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. Sbarro disclosed assets of $471 million and debt of $486.6 million as of the Chapter 11 filing. Sbarro said it has reached an agreement with all of its second- lien secured lenders and 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co. is the Debtors' communications advisor. SBARRO INC: Wants OK to Pay Critical Vendors' Prepetition Claims ---------------------------------------------------------------- Sbarro, Inc., et al., ask for authorization from the U.S. Bankruptcy Court for the Southern District of New York to pay certain prepetition claims of critical vendors. Critical vendors include: (i) food and beverage vendors, (ii) liquor distributors, (iii) restaurant supply vendors, (iv) store maintenance service providers, and (v) other essential service providers. The Debtors are seeking authority to pay all or a portion of amounts owing only to a certain class of third-party trade creditors that are "critical" to maintaining the going-concern value of the Debtors' business enterprise. This class of vendors includes suppliers and service providers that (a) provide unique and specialized goods to certain of the Debtors' locations that are otherwise not readily available, (b) provide goods that the Debtors are unable to procure without incurring significant migration costs or compromising quality, (c) don't have long-term written supply contracts such that the vendor could be compelled to continuing providing goods or services in a timely and cost- efficient manner without unduly disrupting the Debtors' operations postpetition, or (d) provide goods to certain of the Debtors' restaurants in locations that are impossible to replace. The Debtors seek authority to pay, in their sole discretion based on their business judgment, up to $1.2 million to Critical Vendors on account of their prepetition claims on an interim basis and up to a maximum aggregate amount of $4.7 million to Critical Vendors on account of their prepetition claims on a final basis. The Debtors estimate that approximately $3,502,100 (approximately 74.5% of the Critical Vendor Cap) constitutes claims that may be entitled to administrative priority status. Because the Debtors typically pay for the food, products, supplies and services provided by the Critical Vendors within 20 to 30 days of receipt, the vast majority of prepetition amounts owed with respect of the food, products, supplies and services (approximately 93.6%) will become due and payable, in the ordinary course of business and consistent with past practice, in the 21 days after the Petition Date, but the Debtors believe they can manage their trade relationships through a final hearing on the Motion if they are provided access to the Interim Critical Vendor Cap. The Debtors also are also requesting authority to pay the prepetition claims of certain third parties who may be entitled to assert various lien claims against the Debtors or their property or other assets if the Debtors fail to pay for prepetition goods or services, and the Debtors seek immediate authority to pay up to $25,000 on account of Lien Claims. To ensure that the Debtors continue to receive a constant supply of fresh fruits and vegetables postpetition, the Debtors seek authority to continue to pay in the ordinary course of business and consistent with their historical practices claims arising, or of the type, under the Perishable Agricultural Commodities Act of 1930 to those vendors who supply the Debtors with fruit and vegetables. In sum, the Debtors are requesting the foregoing authority subject to these caps: Estimated Payables as Interim Final of the Petition Relief Relief Date Sought Sought --------------- -------- ------ Critical Vendor Claims $4,700,000 $1,200,000 $4,700,000 Lien Claims $25,000 $25,000 $25,000 PACA Claims $1,285,000 N/A N/A To prevent any disruption to the Debtors' operations and to facilitate a smooth transition into Chapter 11, the Debtors are seeking an order (a) granting administrative expense priority to all of the Debtors' undisputed obligations arising from the acceptance of goods and services subject to certain prepetition purchase orders outstanding with vendors for goods and services, the delivery of which has not occurred and will not occur until after the Petition Date; and (b) authorizing the Debtors to satisfy the obligations in the ordinary course of business. About Sbarro, Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. Sbarro disclosed assets of $471 million and debt of $486.6 million as of the Chapter 11 filing. Sbarro said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SCI REAL ESTATE: Files Schedules of Assets And Liabilities ---------------------------------------------------------- SCI Real Estate Investments LLC filed with the U.S. Bankruptcy Court for the Central District of California its schedules of assets and liabilities, and statement of financial affairs, disclosing: Name of Schedule Assets Liabilities ---------------- ------------ ----------- A. Real Property B. Personal Property $55,431,222 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $18,225,191 E. Creditors Holding Unsecured Priority Claims $256,252 F. Creditors Holding Unsecured Non-priority Claims $51,031,584 ------------ ------------ TOTAL $55,431,222 $69,514,028 A full-text copy of the Schedules of Assets and Liabilities is available for free at http://ResearchArchives.com/t/s?7594 Los Angeles, California-based SCI Real Estate Investments, LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-15975) on Feb. 11, 2011. Jeffrey W. Dulberg, Esq., at Pachulski Stang Ziehl & Jones LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $50 million to $100 million and debts at $10 million to $50 million. SEAHAWK DRILLING: Creditors Object to Duff and Phelps Hiring ------------------------------------------------------------ BankruptcyData.com reports that Seahawk Drilling's official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors' motion to retain Duff and Phelps as financial advisor. According to BData0, the committee doesn't object to the appointment of D&P, but rather to the payment of success fees to D&P related to the Hercules transaction even though D&P had absolutely no role in its negotiation or execution. As reported in the Troubled Company Reporter on March 21, 2011, the Official Committee of Equity Security Holders appointed in the bankruptcy cases of Seahawk Drilling Inc., et al., seeks permission from the Bankruptcy Court to retain Duff & Phelps Securities, LLC, as its financial advisors. The Equity Committee (among other things) needs assistance in collecting and analyzing financial and other information in relation to the chapter 11 cases. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. The Company and several affiliates filed for Chapter 11 bankruptcy protection on Feb. 11, 2011 (Bankr. S.D. Tex. Lead Case Nos. 11-20089). Berry D. Spears, Esq., and Johnathan Christiaan Bolton, Esq., at Fullbright & Jaworkski L.L.P., serve as the Debtors' bankruptcy counsel. Jordan, Hyden, Womble, Culbreth & Holzer, P.C., serves as the Debtors' co-counsel. Alvarez and Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons And Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Judy A. Robbins, U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor-affiliates. Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the creditors committee. The Debtors disclosed $504,897,000 in total assets and $124,474,000 in total debts as of the Petition Date. SOLAR THIN: Delays Filing of 2010 Annual Report ----------------------------------------------- Solar Thin Films, Inc., informed the U.S. Securities and Exchange Commission that it is in the process of preparing and reviewing the financial and other information for the report on Form 10-K for the year ended Dec. 31, 2010. The Company said the Form 10-K could not be completed on or before the March 31, 2011 prescribed due date without unreasonable effort or expense. About Solar Thin Headquartered in New York, Solar Thin Films, Inc., engages in the design, manufacture and installation of thin-film amorphous silicon ("a-Si") photovoltaic turnkey manufacturing facilities. RBSM LLP, in New York, N.Y., expressed substantial doubt about Solar Thin Films, Inc.'s ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has suffered recurring losses from operations. The Company's balance sheet at Sept. 30, 2010, showed $2.05 million in total assets, $5.40 million in total liabilities, and a stockholders' deficit of $3.35 million. STANADYNE HOLDINGS: Incurs $9.98 Million Net Loss in 2010 --------------------------------------------------------- Stanadyne Holdings, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $9.98 million on $250.59 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $23.70 million on $185.85 million of net sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $382.07 million in total assets, $379.71 million in total liabilities, $794,000 of redeemable non-controlling interest, and $1.57 million in total equity. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/ZieA0O About Stanadyne Holdings Stanadyne Corporation, headquartered in Windsor, Connecticut, is a designer and manufacturer of highly-engineered precision- manufactured engine components, including fuel injection equipment for diesel engines. Stanadyne sells engine components to original equipment manufacturers and the aftermarket in a variety of applications, including agricultural and construction vehicles and equipment, industrial products, automobiles, light duty trucks and marine equipment. Revenues for LTM ended Sept. 30, 2010 were $240 million. As reported by the TCR on Jan. 21, 2011, Moody's Investors Service confirmed Stanadyne Holdings, Inc.'s Caa1 Corporate Family Rating and revised the rating outlook to stable. The CFR confirmation reflects the remediation of the Stanadyne's previous inability to file financial statements in accordance with financial reporting requirements contained in its debt agreements and expectations for modest continued improvement in operating performance. Improved operations, largely the result of positive momentum in key end markets and restructuring activities, have allowed Stanadyne to maintain positive funds from operations despite increased cash interest expense. The company's $100 million 12% senior discount notes began paying cash interest in February 2010. SUMMIT BUSINESS: Hires Clark Schaefer as Accountants ---------------------------------------------------- Summit Business Media Holding Company and its debtor-affiliates seek permission from the Bankruptcy Court to employ Clark Schaefer Hackett & Co. as their general accountants. The Debtors have agreed to pay Clark: -- an audit fee estimated to cost $220,000 plus costs; -- an hourly rate of: Carl Coburn $330 Dan Fales $240 Denice Hertlein $330 Kathleen Ordosh $280 Michelle Argueta $190 Matt Gutzwiller $244 Matt Fabiani $111 The Debtors paid Clark $75,937 in fees in the 90 days before the petition date for accounting services provided. As of the filing date, the Debtors owe Clark $13,561 for services rendered pre- bankruptcy. The firm has agered to waive the right to payment of that amount. Dan Fales, tax shareholder with Clark, attests that his firm does not hold or represent any interest adverse to the Debtors' estates and that it is a "disinterested person" as that phrase is defined in Section 101(14) of the Bankruptcy Code. The Court will convene a hearing in Wilmington on April 12, at 10:00 a.m., to consider the Debtors' request. About Summit Business Media New York-based Summit Business Media Holding Company -- http://www.summitbusinessmedia.com/-- is a business-to-business publisher and event organizer serving the insurance, investment advisory, professional services and mining investment markets. Summit employs nearly 400 employees in ten offices across the United States. The Company was formed through seven acquisitions since 2006. Summit Business is a Delaware corporation that wholly owns Summit Business Media Intermediate Holding Company, LLC, a Delaware limited liability company. Summit Intermediate wholly owns The National Underwriter Company, an Ohio corporation, which in turn wholly owns six distinct subsidiary companies which comprise the remaining Debtors. Summit Business Media Holding Company and eight affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 11-10231) on Jan. 25, 2011. Kimberly E. Lawson, Esq., and Kathleen Murphy, Esq., at Reed Smith LLP, in Wilmington, Delaware; and J. Andrew Rahl, Jr., Esq., at Reed Smith LLP, in New York, serve as counsel to the Debtors. Lincoln Partners Advisors LLC is the financial advisor. Garden City Group is the claims and notice agent. Summit estimated assets and debts of $100 million to $500 million in its Chapter 11 petition. Summit filed on Feb. 1, 2011, their Chapter 11 Plan of Reorganization. The plan was worked out in advance with holders of 83% or more of the first-and second-lien debt. Pursuant to the Plan terms, holders of allowed priority tax claims, which are unimpaired and unclassified under the Plan, will be paid over a period not later than 5 years after the Petition Date. Holders of prepetition first lien secured claims owed $189 million will receive a new $110 million first-priority first lien term loan, 89.4% of the new stock. The first-lien lenders will recover 68 cents on the dollar. Holders of $55 million in prepetition second lien debt will receive $1 million in cash and 5.56% of the new stock. They will have a 4% recovery. Holders of allowed general unsecured claims expected to total $6 million will receive $100,000 cash, resulting in a 2% recovery. Holders of equity interests in Summit will not receive anything and their interests will be cancelled. Equity Interests in the other debtor-affiliates will be reinstated. Summit Business set a May 5 hearing for approval of the Chapter 11 plan. The bankruptcy judge approved the explanatory disclosure statement on March 28. STEWART ENTERPRISES: Moody's Assigns B1 to Proposed $200MM Notes ---------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to $200 million of proposed senior notes of Stewart Enterprises, Inc., and affirmed its Ba3 Corporate Family Rating. Concurrently, Moody's downgraded the company's convertible senior notes to B1 from Ba3 and assigned an SGL-1 speculative grade liquidity rating. The proceeds from the $200 million senior note offering due 2019 are expected to be used to purchase the existing senior notes due 2013 and pay related fees and expenses. The rating outlook remains stable. Moody's took these rating actions: * Assigned $200 million senior notes due 2019, B1 (LGD 4, 60%); * Lowered $86 million senior convertible notes due 2014, to B1 (LGD 4, 60%) from Ba3 (LGD 4, 56%); * Lowered $45 million senior convertible notes due 2016, to B1 (LGD 4, 60%) from Ba3 (LGD 4, 56%); * Affirmed $200 million 6.25% senior notes due 2013, Ba3 (LGD 4, 56%)- rating to be withdrawn upon completion of the refinancing; * Affirmed Corporate Family Rating, Ba3; * Affirmed Probability of Default Rating, Ba3. Ratings Rationale The Ba3 Corporate Family Rating reflects the company's revenue base of approximately $500 million which is moderately small for the rating category, declining funeral volumes, increasing cremation rates, and a reliance on income from trust portfolios for a significant portion of consolidated profitability. The ratings are supported by profitability growth in 2010, solid financial strength metrics, a significant portfolio of funeral and cemetery properties in major metropolitan markets and a track record of steady cash flow generation. In Stewart's latest 10-Q filing, the company disclosed that it has begun discussions with various financial institutions regarding the potential refinancing of its senior secured revolving credit facility to take advantage of favorable market conditions. Based on these discussions, Stewart indicated that it may increase the size of the facility. The B1 rating assigned to the $200 million of proposed unsecured notes and the downgrade of the convertible senior notes to B1 from Ba3 reflects Moody's expectation that the size of the revolver will increase in the near term. The unsecured notes are effectively subordinated to borrowings under the revolver with respect to assets pledged to secure the revolver. If the revolver is not upsized, then the rating on the unsecured notes could be raised to Ba3. The SGL-1 speculative grade liquidity rating reflects a very good liquidity profile characterized by stable cash flow generation, substantial availability under the revolving credit facility and solid expected headroom under financial covenants. The stable outlook reflects Moody's expectation of modest revenue and profitability growth over the next year driven by growth in cemetery sales and improvements in average revenue per funeral. Moody's expects flat to modestly declining funeral volumes in line with recent trends. The ratings could be upgraded if the company demonstrates significant top line growth and improving credit metrics such that Moody's comes to expect debt to EBITDA and free cash flow to debt to be sustained at about 3 times and 12%, respectively. The ratings could be downgraded if Moody's comes to expect debt to EBITDA and free cash flow to debt to be sustained above 4.5 times or below 5%, respectively. Factors that could lead to a weakening of credit metrics include declines in preneed cemetery property sales, lower funeral volumes or an increase in trust realized losses. The last rating action on Stewart was on June 5, 2009, when Moody's withdrew the Baa3 rating on the $125 million revolving credit facility due 2009. The principal methodologies used in this rating were Global Business & Consumer Service Industry published in October 2010, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Stewart is the second largest provider of funeral and cemetery products and services in the United States. As of January 31, 2011, the company owned and operated 218 funeral homes and 141 cemeteries in 24 states within the United States and Puerto Rico. Stewart reported revenues of approximately $505 million in the 12 month period ended January 31, 2011. SW OWNERSHIP: Hires CB Richard Ellis as Appraiser ------------------------------------------------- SW Ownership LLC seeks permission from Judge Craig A. Gargotta to employ CB Richard Ellis, Inc. as its appraiser, valuation consultant and experts. Prior to the Petition Date, the Debtor obtained a development and construction loan from International Bank of Commerce, a Texas state chartered bank, in the principal amount of $30 million for the purpose of developing the "Skywater Over Horseshoe Bay" project. The Pre-Petition Loan is evidenced by, among other loan documents, a Development and Construction Loan Agreement dated as of August 27, 2009. The Pre-Petition Loan was restructured and increased by $5 million in 2010. Subject to the Debtor's claims against IBC, the current balance of the Pre-Petition Loan is $34,189,063.68, and the Pre-Petition Loan is secured by a lien on substantially all of the Debtor's assets, including the Project. On March 1, 2011, IBC filed with the Court its Motion for Relief From Automatic Stay, asserting, inter alia, that the Debtor lacks equity in IBC's Project collateral. On March 4, 2011, the Debtor asked the Court for authority to obtain post-petition secured financing, in which the Debtor seeks, inter alia, to grant priming liens in favor of its proposed DIP lender, on the basis that IBC and other lien claimants of the Debtor's are adequately protected by the Debtor's equity in its Project property. In connection with the Debtor's efforts to reorganize and rehabilitate the Project, the Debtor requires appraisal and valuation consulting services, including expert testimony with respect to same. The testimony is plainly critical to the Debtor in light of the Lift Stay Motion and Financing Motion, both of which raise issues of the Debtor's equity in its Project. In addition, upon the Debtor's projected completion of the Golf Course, it also anticipates it may require additional consulting and valuation services in connection with negotiations with potential builders, developers and other purchasers of lots, villa pods and other Project parcels that the Debtor proposes to sell. Furthermore, it would likely need such consulting, valuation and expert testimony services if these proposed sales are contested, whether individually or in connection with a plan of reorganization to be proposed by the Debtor. Accordingly, since the Petition Date, the Debtor said it has required, and will continue to require, the services of CBRE. CBRE is the first commercial real estate services company in the Fortune 500, and has led the Lipsey Company's Top 25 Commercial Real Estate Brands Survey for seven years running. CBRE maintains worldwide offices, including in Austin, Texas: CB Richard Ellis, Inc. 100 Congress Ave., Suite 500 Austin, TX 78701 Tel: (512) 499-4900 Fax: (512) 499-4999 http://www.cbre.com/austin According to the Debtor, CBRE is also intimately familiar with the Project, having rendered a full and complete appraisal of the Project as of January 6, 2011. Hence, the Debtor continued, it has no need for CBRE, or any other party, to perform such services post-petition. Notwithstanding, since the time of the original Appraisal, CBRE has assisted the Debtor in refining and updating its original analysis with updated information and revised business plans, and in preparation for the Lift Stay Motion and Financing Motion, including the provision of testimony with respect thereto. The Debtor further anticipates that CBRE services would be required by, and beneficial to, the Debtor's overall administration of the bankruptcy case and estate. The Debtor and CBRE have entered into a Valuation Services Appraisal Agreement. The Agreement plainly contemplates that original appraisal services have already been completed by CBRE, and that its single charge for supplemental services to refine and revise its appraisal is $1,000. An indemnification provision is included in the Agreement, but limited in nature and based solely on the Debtor's, rather than CBRE's, conduct. As of the Petition Date, CBRE had been paid its $1,000 retainer provided in the Agreement by certain of the Debtor's indirect equity holders. CBRE has completed all supplemental appraisal services requested by the Debtor under the Agreement. The Agreement also provides for testimony and expert witness services in connection with CBRE's appraisals, at a rate of $400 per hour, in addition to reimbursement of CBRE's actual, out of pocket expenses -- including travel and accommodations, and requires an additional $3,000 retainer for such witness services. The Debtor has not paid this retainer when it filed the application to hire CBRE. CBRE holds a guarantee from two of the Debtor's indirect equity owners, The Patriot Group LLC, and Third Avenue Real Estate Opportunities Fund L.P., although CBRE's engagement is expressly and exclusively with the Debtor. CBRE and the Debtor contemplate that David O. Thibodeaux, a Managing Director for CBRE, will have lead responsibility for this engagement. CBRE believes that it has prior or current engagements with a number of parties in interest in the Debtor's case, including, lender IBC. However, to the best of CBRE's knowledge, neither Mr. Thibodeaux nor CBRE (i) has any connection with any party-in- interest, creditor or their representative attorneys or accountants, relating to the Debtor or the estate; (ii) holds any interests in any such parties in interest, creditors in the bankruptcy case, or any of their attorneys and accountants; (ii) do not have any connection with the United States Trustee or any person employed in the Office of the United States Trustee; (iii) are "disinterested persons," as that term is defined in Section 101(14) of the Bankruptcy Code; and (iv) do not hold or represent any interest adverse to the estate. About SW Ownership SW Ownership LLC is a single member limited liability company owned by SW Ownership Holdings LLC. The Debtor owns the project commonly known as "Skywater Over Horseshoe Bay" that is currently being developed in Llano and Burnet counties and is comprised of a roughly 1,600-acre residential community project with an 18-hole, Jack Nicklaus-designed, Signature Golf Course. SW Ownership LLC does not currently maintain operations (save for Project development) and has no employees. Skywater Management LLC is the pre-petition and current manager of the Project for SWO. SW Ownership LLC filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case No. 11-10485) on Feb. 28, 2011, represented by lawyers at Munsch Hardt Kopf & Harr, P.C. The Debtor estimated its assets at $50 million to $100 million and debts at $10 million to $50 million. SWORDFISH FINANCIAL: Delays Filing of 2010 Annual Report -------------------------------------------------------- Swordfish Financial, Inc., notified 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 Oct. 31, 2010. The Company said that information necessary for the filing of a complete and accurate Form 10-K could not be gathered and reviewed within the prescribed time period without unreasonable effort and expense to the Company. About Swordfish Financial Rockwall, Tex.-based Swordfish Financial, Inc., formerly Nature Vision, Inc., designed, manufactured and marketed outdoor recreation products primarily for the sport fishing and hunting markets. Based on the limited assets, product lines and resources remaining after the M&I Business Credit LLC liquidation, Swordfish Financial, Inc. has decided that there is not enough remaining of the Nature Vision operations to continue as an outdoor recreations products company and will concentrate on the business on being an asset recovery company and using the financial resources recovered to retire the Company's debts and invest in other businesses domestically and internationally. Patrick Rodgers, CPA, PA, expressed substantial doubt against Swordfish Financial Inc.'s ability as a going concern because the Company has suffered recurring losses from operations and negative cash flows from operations the past three years. The Company's balance sheet at Sept. 30, 2010 showed $3.72 million in total assets, $5.33 million in total liabilities and $1.61 million in stockholders' deficit. TABI INTERNATIONAL: Closing All 76 Stores Across Canada ------------------------------------------------------- Tabi International Corporation has filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act and is closing all 78 stores across Canada after 30 years as a leading Canadian retailer. The store closing sales began on Friday, April 1, 2011 and will continue until all merchandise has been sold. Farber Financial Group was appointed as Proposal Trustee and Receiver to assist the Company in this process. Consumers will find terrific savings starting at 20% to 40% off original prices on all apparel including all women's classic shirts, sweaters and cardigans, TABI's Wilson pant, skirts, denim, activewear and accessories. In addition, store fixtures such as apparel racks, shelving, cabinets and more are also for sale. "As a way of expressing our appreciation for their years of patronage, we hope that our customers take advantage of our timeless garments at incredible prices," said the company spokesperson of TABI. "We thank our customers and hope that the savings found at all stores serve as a thank you to them for their great loyalty over the years." A joint venture consisting of Hilco Merchant Resources and Gordon Brothers Group are running the store closing sales on TABI's behalf. "Within TABI's signature blue doors, customers will find new spring arrivals of quality merchandise such as Canada's Favourite Cotton Sweater and the Wilson pant," Jeff Paronto, Chief Operating Officer of Hilco Merchant Resources and Lee Cote, Principal of Gordon Brothers Group jointly stated. "Merchandise will sell out quickly so we encourage customers to shop early when the broadest selection of merchandise is available." * * * Financialpost.com says that a proposal filed last summer in Ontario said Tabi had assets of $39.9-million and liabilities of $52-million; the chain has closed 28 underperforming stores over the last year. Tabi cited a poor economic environment for retailers and an overly aggressive expansion as the reasons behind its downfall. About TABI International TABI International Corporation -- http://www.tabi.ca/-- operates a chain of retail apparel stores for women. The Company offers shirts, white shirts, sweaters, sweater twin sets, vests, pants, jackets and outerwear, mocks and turtkenecks, sleepwear, and active wear. It also offers online shopping services. The company was founded in 1980 and is based in Toronto, Canada. TABI International Corporation is a former subsidiary of Cotton Ginny, Ltd. TAPATIO SPRINGS: Returns to Chapter 11 to Stop Foreclosure ---------------------------------------------------------- Tapatio Springs Real Estate Holdings, LP, filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 11-51263) on April 5, 2011. On the same day the Debtor sought bankruptcy protection, secured creditors Clyde B. Smith and Peggy Smith immediately filed a motion asking the Court to lift the automatic stay to proceed with the foreclosure of the Debtor's assets. According to the Smiths, this is not the first time the Debtor sought bankruptcy protection. Debtors Tapatio Springs Development Company, Inc., and Tapatio Springs Real Estate Holdings, LP, voluntarily filed for Chapter 11 bankruptcy relief (Cases Nos. 11-50050and 11-50054) on Jan. 3, 2011. The Smiths recount that the Debtors filed the First Bankruptcy the day before the Smiths were set to foreclose on certain real estate on January 4, 2011. On Feb. 17, 2011, the Court dismissed the first bankruptcies on the Smiths' motion and without opposition from the Debtors. Once dismissed, the Smiths re-posted the real estate for non-judicial foreclosure on April 5, 2011, at 10:00 a.m. No payments have been made against the Smith debt since February 2010. The Debtors filed the instant second voluntary Chapter 11 petition merely minutes prior to the announced starting time of the posted foreclosure proceedings. The foreclosure proceeded at 10:00 a.m. as announced and concluded with no party bidding more than the Smiths' credit bid. The Debtor is allegedly indebted to the Smiths under a Deed of Trust dated March 1, 1993, and recorded in Volume 393, Page 08 of the Official Records of Kendall County, Texas securing a Real Estate Lien Note in the original amount of $5,204,494 payable to Tapatio Springs, Inc., by Tapatio Springs Development Company, Inc. As of April 5, 2011, the accrued principal and interest due on the Note is $3,453,121. The Deed of Trust identifies the collateral securing the Note, which is generally described approximately 600 acres of undeveloped, raw land in Kendall County, Texas. The Smiths are represented by: Derick J. Rodgers DAVIS, CEDILLO & MENDOZA, INC. 755 E. Mulberry Street, Suite 500 San Antonio, TX 78212 Tel: (210) 822-6666 Fax: (210) 822-1151 - and - Thomas W. McKenzie Thomas W. Mckenzie, Atty. 10107 McAllister Frwy. San Antonio, TX 78216 Tel: (210) 227-2698 Fax: (210) 227-9334 E-mail: tmckenzie@tsslawyers.com TAPATIO SPRINGS: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Tapatio Springs Real Estate Holdings, LP 110 Axis Cricle Boerne, TX 78006 Bankruptcy Case No.: 11-51263 Chapter 11 Petition Date: April 5, 2011 Court: U.S. Bankruptcy Court Western District of Texas (San Antonio) Judge: Ronald B. King Debtor's Counsel: Dean William Greer, Esq. 2929 Mossrock, Suite 117 San Antonio, TX 78230 Tel: (210) 342-7100 Fax: (210) 342-3633 E-mail: dwgreer@sbcglobal.net Scheduled Assets: $20,677,999 Scheduled Debts: $4,004,286 The petition was signed by Michael Shalit, authorized agent. Debtor's List of three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Alan Wasserman Loan $375,000 90 Woodbridge Center Drive, #90 Box 10 Woodbridge, NJ 07095 Kendall County Tax Assessor 2009-2010 Taxes $120,000 Collector Attn: James Hudson 201 E. San Antonio Street Boerne TX 78006 JM Matkin & Associates LTD Land Planning and $26,000 8 Spencer Road, Suite 100 Land Use Area Boerne, TX 78006 TAYLOR BEAN: Farkas' Mortgage Fraud Trial Set to Start April 4 -------------------------------------------------------------- American Bankruptcy Institute reports that the trial of Lee Farkas, the former chief executive and chairman of Taylor, Bean & Whitaker accused of masterminding a nearly $2 billion mortgage fraud scheme, was expected to start on April 4, 2011, in a federal courtroom in Alexandria, Virginia. About Taylor Bean Taylor, Bean & Whitaker Mortgage Corp. grew from a small Ocala- based mortgage broker to become one of the largest mortgage bankers in the United States. In 2009, Taylor Bean was the country's third largest direct-endorsement lender of FHA-insured loans of the largest wholesale mortgage lenders and issuer of mortgage backed securities. It also managed a combined mortgage servicing portfolio of approximately $80 billion. The company employed more that 2,000 people in offices located throughout the United States. Taylor Bean sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 09-07047) on Aug. 24, 2009. Taylor Bean filed the Chapter 11 petition three weeks after federal investigators searched its offices. The day following the search, the Federal Housing Administration, Ginnie Mae and Freddie Mac prohibited the company from issuing new mortgages and terminated servicing rights. Taylor Bean estimated more than $1 billion in both assets and liabilities in its bankruptcy petition. Jeffrey W. Kelly, Esq., and J. David Dantzler, Jr., Esq., at Troutman Sanders LLP, in Atlanta, Ga., and Russel M. Blain, Esq., and Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, in Tampa, Fla., represent the Debtors. Paul Steven Singerman, Esq., and Arthur J. Spector, Esq., at Berger Singerman PA, in Miami, Fla., represent the Committee. BMC Group, Inc., serves as the claims and noticing agent. TCC GROUP: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: TCC Group, Inc. dba Pinnacle Transportation Services Pinnacle Transportation Company 4949 West 34th Street, Suite 12 Houston, TX 77092 Bankruptcy Case No.: 11-33004 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Southern District of Texas (Houston) Judge: Karen K. Brown Debtor's Counsel: William David Weber, Esq. WEBER LAW FIRM 6666 Harwin Drive, Suite 220 Houston, TX 77036 Tel: (713) 789-3300 Fax: (713) 893-6004 E-mail: wlf@weberlaw.com Estimated Assets: $500,001 to $1,000,000 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/txsb11-33004.pdf The petition was signed by Vinnie Lee Barber, president. TEAM NATION: Delays Filing of 2010 Annual Report ------------------------------------------------ Team Nation Holdings Corporation informed the U.S. Securities and Exchange Commission that it could not review and complete its Annual Report on Form 10-K for the period ended Dec. 31, 2010, due to unreasonable delays imposed by audit firm Kelly & Company without incurring unreasonable effort and expense in connection with accurately preparing and presenting all necessary disclosures. The Company will file its Annual Report on Form 10-K as soon as possible. About Team Nation Newport Beach, Calif.-based Team Nation Holdings Corporation is a management and services company specializing in management solutions for title companies and providing title production services. The Company's balance sheet at Sept. 30, 2010, showed $3.03 million in total assets, $7.14 million in total liabilities, and a stockholders' deficit of $4.10 million. Kelly & Company CPAs 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, since beginning operations through a recapitalization in June 2007, has suffered losses from operations and a working capital deficiency. "Team Nation Holdings Corporation incurred a loss from continuing operations for the year ended Dec. 31, 2009 of $3,617,233 and has current liabilities that exceeded current assets by $5,077,197 and total liabilities that exceeded total assets by $4,771,129." TEMPUS RESORTS: Taps Marcum as Financial Advisors ------------------------------------------------- Tempus Resorts International, Ltd., and its debtor-affiliates seek permission from the Bankruptcy Court to employ Barry E. Mukamal and Marcum LLP, as their financial advisors. The firm's hourly rates are: Professional Hourly Rate ------------ ----------- Partners $320-$490 Senior managers $250-$290 Managers $190-$265 Supervisors $175-$225 Accounting seniors $150-$175 Accounting staff $135-$160 To the Debtors' knowledge, Marcum represents no interest adverse to the Debtors in matters upon which it is to be engaged. Marcum does not represent the individual interest of any insider or affiliate of the Debtors. About Tempus Resorts Orlando, Florida-based Tempus Resorts International, Ltd., filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-20709) on Nov. 19, 2010. Elizabeth A. Green, Esq., at Baker & Hostetler LLP, assists the Debtor in its restructuring effort. It estimated its assets and debts at $100 million to $500 million. Affiliates Tempus Palms International, Ltd. (Bankr. M.D. Fla. Case No. 10-20712); Tempus Golf Development, LLC (Bankr. M.D. Fla. Case No. 10-20714); Tempus Select, LLC (Bankr. M.D. Fla. Case No. 10- 20715); Backstage Myrtle Beach, LLC (Bankr. M.D. Fla. Case No. 10- 20716); Tempus Resorts Management, Ltd. (Bankr. M.D. Fla. Case No. 10-20717); Tempus Resorts Realty, LLC (Bankr. M.D. Fla. Case No. 10-20718); Tempus International Marketing Enterprises, Ltd. (Bankr. M.D. Fla. Case No. 10-20719); and Time Retail, LLC (Bankr. M.D. Fla. Case No. 10-20720) filed separate Chapter 11 petition. Tempus Resorts estimated its assets and debts at $100,000 to $500,000. Tempus Golf Debt. estimated its assets and debts at $1 million to $10 million. Tempus Palms International estimated its assets at $100 million to $500 million. An official committee of unsecured creditors has been appointed in the case. THERMOENERGY CORP: Incurs $9.85 Million Net Loss in 2010 -------------------------------------------------------- ThermoEnergy Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $9.85 million on $2.87 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $12.98 million on $4.01 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $6.32 million in total assets, $17.99 million in total liabilities and $11.67 million in total stockholders' deficiency. Kemp & Company, a Professional Association, in Little Rock, Arkansas, expressed substantial doubt about the Company's ability to continue as a going concern. 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 Companies liabilities. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/ibVYuw 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. THORNBURG MORTGAGE: Ch.11 Trustee Has Go-Signal to Hire Consultant ------------------------------------------------------------------ Joel I. Sher, the Chapter 11 Trustee in the bankruptcy case of TMST, Inc., f/k/a Thornburg Mortgage, Inc., won permission to employ BroadStreet Capital Partners, LP, to provide analytic and consulting services to the Chapter 11 Trustee. BroadStreet attests that it does not hold or represent any interest adverse to the Chapter 11 Trustee, the Debtors or their estates, and that it is disinterested as that term is defined in 11 U.S.C. Sec. 101(14). Broadstreet's professionals will bill their time at a blended hourly rate of $525 per hour for all services rendered, provided, however, that expert testimony given by Andrew Smith will be billed at $950 per hour. About Thornburg Mortgage Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA) -- http://www.thornburgmortgage.com/-- was a single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable rate mortgages. It originated, acquired, and retained investments in adjustable and variable rate mortgage assets. Its ARM assets comprised of purchased ARM assets and ARM loans, including traditional ARM assets and hybrid ARM assets. Thornburg Mortgage and its four affiliates filed for Chapter 11 on May 1, 2009 (Bankr. D. Md. Lead Case No. 09-17787). Thornburg changed its name to TMST, Inc. Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, serves as bankruptcy counsel. Orrick, Herrington & Sutcliffe LLP serves as special counsel. Jim Murray, and David Hilty, at Houlihan Lokey Howard & Zukin Capital, Inc., serve as investment banker and financial advisor. Protiviti Inc. provides financial advisory services. KPMG LLP is the tax consultant. Epiq Systems, Inc., is claims and noticing agent. Thornburg listed total assets of $24.4 billion and total debts of $24.7 billion, as of January 31, 2009. On Oct. 28, 2009, the Court approved the appointment of Joel I. Sher as the Chapter 11 Trustee for the Company, TMST Acquisition Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging Strategies, Inc. TIB FINANCIAL: Files Form 10-K; Posts $560,000 Net Income --------------------------------------------------------- TIB Financial Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting net income of $560,000 on $15.68 million of total interest and dividend income for the three months ended Dec. 31, 2010, compared with a net loss of $61.54 million on $81.12 million of total interest and dividend income for the year ended Dec. 31, 2009. The Company's balance sheet at Dec. 31, 2010 showed $1.75 billion in total assets, $1.58 billion in total liabilities and $176.75 million in total shareholders' equity. As reported in the Troubled Company Reporter on April 6, 2010, Crowe Horwath LLP, in Fort Lauderdale, Fla., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred net losses in 2009, 2008 and 2007, primarily from loan and investment impairments. In addition, the Company's bank subsidiary is operating under an informal agreement with bank regulatory agencies that requires, among other provisions, higher regulatory capital requirements. The Bank did not meet the higher capital requirement as of Dec. 31, 2009, and therefore is not in compliance with the regulatory agreement. Failure to comply with the regulatory agreement may result in additional regulatory enforcement actions. The 2010 Annual Report did not contain a going concern doubt. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/BLFHRy About TIB Financial Corp. Headquartered in Naples, Florida, TIB Financial Corp. -- http://www.tibfinancialcorp.com/-- is a financial services company with approximately $1.7 billion in total assets and 28 full-service banking offices throughout the Florida Keys, Homestead, Naples, Bonita Springs, Fort Myers, Cape Coral and Venice. TIB Financial Corp. is also the parent company of Naples Capital Advisors, Inc., a registered investment advisor with approximately $169 million of assets under advisement. TIB Financial Corp., through its wholly owned subsidiaries, TIB Bank and Naples Capital Advisors, Inc., serves the personal and commercial banking and investment management needs of local residents and businesses in its market areas. TIGRENT INC: Incurs $697,000 Net Loss in 2010 --------------------------------------------- Tigrent Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $697,000 on $102.63 million of revenue for the year ended Dec. 31, 2010, compared with net income of $9.78 million on $170.92 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $33.53 million in total assets, $77.77 million in total liabilities, and a $44.24 million stockholders' deficit. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/ZitfQV About Tigrent Inc. Cape Coral, Fla.-based Tigrent Inc. (OTC BB: TIGE) -- http://www.tigrent.com/-- is a provider of practical, high- quality and value-based training, conferences, publications, technology-based tools and mentoring to help customers become financially literate. The Company provides customers with comprehensive instruction and mentoring in the topics of real estate and financial instruments investing and entrepreneurship in the United States, the United Kingdom, and Canada. TILE HOUSE: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Tile House Industries, Inc. 4545 Granite Drive Tucker, GA 30084 Bankruptcy Case No.: 11-60421 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Evan M. Altman, Esq. Building 2, 8325 Dunwoody Place Atlanta, GA 30350-3307 Tel: (770) 394-6466 Fax: (678) 405-1903 E-mail: evan.altman@laslawgroup.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/ganb11-60421.pdf The petition was signed by C. Gregory Gomard, president. TJ HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: TJ Hospitality, Ltd. 3310 Troup Highway Tyler, TX 75701 Bankruptcy Case No.: 11-60315 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Tyler) Debtor's Counsel: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. 12770 Coit Road, Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.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/txeb11-60315.pdf The petition was signed by Raja Virk, managing member of general partner. TVMJ INVESTMENTS: Case Summary & 5 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: TVMJ Investments, Inc. 5140 W. Van Buren Phoenix, AZ 85043 Bankruptcy Case No.: 11-09158 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: George B. Nielsen, Jr. Debtor's Counsel: Lyndon B. Steimel, Esq. LAW OFFICE OF LYNDON B. STEIMEL 14614 N. Kierland Boulevard, #N-135 Scottsdale, AZ 85254 Tel: (480) 367-1188 Fax: (480) 367-1174 E-mail: lyndon@steimellaw.com Scheduled Assets: $360,100 Scheduled Debts: $1,072,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/azb11-09158.pdf The petition was signed by Vincenzo Stalteri, president. ULTIMATE ACQUISITION: Hires Real Estate Consultant and Advisor -------------------------------------------------------------- Ultimate Acquisition Partners, LP and CC Retail, LLC, will return to the Bankruptcy Court on April 12, 2011, at 10:30 a.m. for a hearing on their request to employ Hilco Real Estate, LLC and DJM Realty Services, LLC in a joint venture as their real estate consultant and advisor. The Debtors require Hilco and DJM will to assist in negotiating the termination, assignment or other disposition of leases and waivers or reductions of prepetition cure amounts and 11 U.S.C. Sec. 502(b)(6) claims with respect to their leases. On Feb. 11, 2011, the Court authorized the closing of the Debtors' 46 retail stores, all located in space that is leased by the Debtors. Hilco and DJM attest that they are a "disinterested person," as defined in 11 U.S.C. Sec. 101(14) and as required by 11 U.S.C. Sec. 327(a). Hilco and DJM will be compensated pursuant to certain fixed percentage basis, as specifically described and in accordance with the terms of an Engagement Letter. Hilco and DJM may be reached at: DJM Realty Services, LLC 445 Broad Hollow Road, Suite 225 Melville, NY 11747 Attn: Edward Zimmer Tel: 631-927-0022 Fax: 631-752-1231 E-mail: ezimmer@djmrealty.com - and - Hilco Real Estate Holdings, LLC 5 Revere Drive, Suite 206 Northbrook, IL 60062 Attn: Joseph Malfitano Tel: 847-509-1100 Fax: 847-897-0868 E-mail: jmalfitano@hilcotrading.com About Ultimate Electronics Ultimate Acquisition Partners LP and CC Retail, LLC, which own the U.S. consumer electronics store chain Ultimate Electronics, filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-10245) on January 26, 2011. Ultimate Acquisition estimated assets and liabilities between $100 million and $500 million. Ultimate Acquisition Partners LP and CC Retail, LLC are specialty retailers of high-end entertainment and consumer electronics with 46 stores in over a dozen states, primarily in the mid-west and western United states. Of the 46 stores, 35 are operated by UAP and 11 are operated by CC Retail. All are operated under the name "Ultimate Electronics". UAP and CC Retail have more than 1,500 full-time and part-time employees. Kathleen Campbell Davis, Esq., and Mark T. Hurford, Esq., at Campbell & Levine LLC, in Wilmington, Del., and Jay L. Welford, Esq., and Judith Greenstone Miller, Esq., at Jaffe, Raitt, Heuer & Weiss, P.C., in Southfield, Mich., serve as the Debtor's bankruptcy counsel. Kurtzman Carson Consultants LLC is the claims and notice agent. An Official Committee of Unsecured Creditors was appointed on Feb. 9, 2011. The Panel has hired BDO USA LLP as its financial advisor, and Cooley LLP and Womble Carlyle Sandridge & Rice PLLC as bankruptcy counsel. VERINT SYSTEMS: Moody's Puts B1 Rating to Proposed Secured Debt --------------------------------------------------------------- Moody's Investors Service affirmed Verint System Inc.'s B1 corporate family rating (CFR), and revised the Probability of Default (PDR) Ratings to B1 from B2. Moody's also assigned a B1 rating to its proposed secured credit facilities and raised the Speculative Grade Liquidity rating to SGL-1 from SGL-2. The new facilities will be used to refinance Verint's existing debt. The ratings outlook remains stable. Ratings Rationale Verint's B1 rating reflects its moderately high level of debt to EBITDA, balanced by strong market positions in the workforce optimization software industry, and video and communications security systems industries. The strong positions are bolstered by Verint's expertise in software that analyzes unstructured data (i.e. conversations and video) and their development of analytic software tools for specific industries. The ratings also reflect the expectation the company will continue to moderately use debt for future acquisitions, but in an amount to keep debt to EBITDA below 4.5x. The statement of material weakness in Verint's internal accounting controls is expected to be remedied in the audit for the fiscal year ending January 31, 2011. Nonetheless, until the material weaknesses are fully resolved and expenses of the restatements behind them the ratings are considered weakly positioned in the B1 category. The company's profitability and cash flow have been impacted significantly in the past three years as a result of the costs incurred in the restatement process but Moody's expect cash flow to debt to improve comfortably above 10% over the next year as the process winds down. As part of the re-financing, the company is upsizing its revolving credit facility to $140 (and potentially up to $200) from $75 million currently while the term loan remains the same size. The improvement in liquidity rating to SGL-1 is based on the increased revolver availability, considerable headroom under the financial covenant, cash on hand estimated to be at or above $100 million, as well as Moody's expectation that free cash flow will improve over the coming year as the last of the accounting restatement expenses are paid out. The revolver is expected to be largely undrawn, except for potential acquisitions. These ratings were upgraded: * Probability of Default Rating to B1 from B2 * Speculative Grade Liquidity Rating raised to SGL-1 from SGL-2 These ratings were assigned: * Proposed $140 (up to $200) million senior secured revolver, B1, LGD3, 48% * Proposed $580 million senior secured term loan, B1, LGD3, 48% The existing secured facilities ratings will be withdrawn at closing of the new facilities. Moody's most recent rating action on Verint was August 5, 2010, when Moody's raised the Speculative Grade Liquidity Rating to SGL- 2 from SGL-3. The principal methodology used in this rating was Moody's Global Software Methodology published in May 2009. Verint Systems Inc., headquartered in Melville, NY, is a leading provider of analytic software and related products for the workforce optimization and communications and security intelligence markets. Verint had revenues of $713 million for the twelve months ended October 30, 2010. VIA DEL ORO: Case Summary & 18 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Via Del Oro, LLC 8490 South Power Road, #105-189 Gilbert, AZ 85297 Bankruptcy Case No.: 11-09092 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Blake D. Gunn, Esq. LAW OFFICE OF BLAKE D. GUNN P.O. Box 22146 Mesa, AZ 85277-2146 Tel: (480) 270-5073 E-mail: bgunn@gunnfirm.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 18 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/azb11-09092.pdf The petition was signed by Phyllis Brozzo, manager. VIKANIS LLC: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Vikanis LLC dba Puyallup Chevron 516 S. Meridian Puyallup, WA 98371 Bankruptcy Case No.: 11-42700 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court Western District of Washington (Tacoma) Judge: Paul B. Snyder Debtor's Counsel: Matthew J. Cunanan, Esq. DC LAW GROUP PLLC 1900 S. Puget Drive, Suite 203 Renton, WA 98055 Tel: (206) 494-0400 E-mail: matthew@dcgroupnw.com Scheduled Assets: $777,004 Scheduled Debts: $1,148,831 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/wawb11-42700.pdf The petition was signed by Vikas Sachar, CEO/president. WATERSCAPE RESORT: To Sell Cassa Hotel via Chapter 11 ----------------------------------------------------- Waterscape Resort LLC sought bankruptcy court protection (Bankr. S.D.N.Y. Case No. 11-bk-11593) on April 5, 2011, after defaulting on loan payments. The Company, owner of the 45-story Cassa Hotel and Residences in Midtown Manhattan, estimated more than $100 million each in assets and debt as of the bankruptcy filing. In 2005, Waterscape acquired a property at 66-70 West 45th Street, New York, consisting of the three contiguous buildings at 66, 68 and 70 West 45th Street in Manhattan, for $20,000,000, to develop the property into a 45-story condominium project including a luxury hotel, a world-class restaurant and luxury residential apartments. Construction of the hotel and residential units, given the name "Cassa NY Hotel and Residences," commenced in July 2007 and was completed in September 2010. Cassa NY includes 165 hotel rooms, 57 residences and a restaurant that hasn't opened. As of November 2010, the hotel property was assessed at $128 million in market value, and the condominium segment at a sellout value of $86 million. The Debtor has approximately $134,400,000 of outstanding secured loan principal obligations under credit facilities with US Bank and USB Capital Resources, Inc., secured by liens upon all of the assets of the Debtor. Ezak Assa, executive vice president of the Debtor, relates, "While the national and global economic crisis, as well as economic factors local to New York City, has affected the hospitality industry and the market for residential apartments, and thus the Debtor's business and overall revenue, the Debtor's operations remain strong and significant opportunities remain for the business in the future." Mechanics Lien Disputes "Unfortunately, the Debtor has for several months been embroiled in litigation with numerous contractors and subcontractors who have asserted alleged mechanics lien claims against the Property totaling approximately $20,000,000," Mr. Assa relates. Mr. Assa explains that the Debtor's former construction manager, Pavarini McGovern LLC, has asserted almost half of the total amount of mechanics lien claims against the Debtor's property. Over the three plus years that the project was under construction, many disputes arose between Mr. Pavarini and Waterscape and were submitted to a dispute resolution board. During the course of the project, Mr. Pavarini missed every milestone date, and Waterscape gave Mr. Pavarini over some 20 notices of default dating as far back as May 2009. Unfortunately, while Waterscape and Mr. Pavarini litigate, Mr. Pavarini's mechanics liens remain of record. Because the Debtor has not had sufficient resources to bond the mechanics liens of Mr. Pavarini and other contractors while the parties litigate the underlying claims and counterclaims, the Debtor has not been able to close on pending contracts for the sale of residential apartment units. This impediment has prevented the Debtor from generating revenues which would have been used to pay its debt service obligations to the secured lenders. As a result, Waterscape has defaulted on a principal payment obligation under its secured loan agreements, and has been forced to address that default, and other nonpayment defaults, by seeking bankruptcy relief in the chapter 11 case. Bankruptcy Sale of Hotel According to Mr. Assa, for several months, the Debtor explored possible opportunities to sell its hotel assets as a means of retiring all or substantially all of the mortgage debt currently owed to its Secured Lenders, thereby leaving Waterscape with a largely unencumbered inventory of luxury residential apartments to sell. In recent weeks, the Debtor's efforts focused upon negotiations for a sale of the hotel to 70 West 45th Street Holding LLC, a company with no relationship to Waterscape. Those efforts were rewarded when, on or about March 11, 2010, the Buyer executed a contract to purchase the Debtor's hotel assets for the sum of $126,000,000 (plus a payment of $2,000,000 relating to certain mortgage tax savings that the Buyer would realize on the transaction). According to the court filing, before the Company filed for bankruptcy, Waterscape advised the Buyer that it would likely have to file a bankruptcy case in order to address both its obligations to the Secured Lenders and its numerous mechanics liens disputes. The Buyer in turn advised that it would terminate the contract if Waterscape filed a bankruptcy case. In an attempt to avoid a loss of the March 11 Agreement, the Debtor proposed to the Buyer that the Debtor seek approval of the March 11 Agreement pursuant to a Plan of Reorganization to be filed as soon as practicable after commencing a bankruptcy case, so that the March 11 Agreement could proceed to a closing with little if any delay or disruption of the Debtor's hotel business. After extensive negotiations between the Debtor and the Buyer, and extensive discussions with the Secured Lenders to keep them apprised of the developing situation, the Buyer and the Debtor reached agreement on the terms of a new contract for a sale of the Debtor's hotel assets, and that agreement was memorialized in that certain Agreement of Purchase and Sale of Membership Interests by and between the Debtor and the Buyer, dated as of April 1, 2011. Under the Hotel Sale Contract, the purchase price to be paid for the Debtor's hotel assets remains $126,000,000 (plus the payment of approximately $2,000,000 relating to certain mortgage tax savings that the Buyer would realize on the transaction). The deposit to be paid by the Buyer in the sum of $12,600,000 also remains the same as under the March 11 Agreement. The deposit was already paid in connection with the March 11 Agreement and thus no additional deposit was required. The Hotel Sale Contact does alter the mechanics of the closing. Under the March 11 agreement, the Buyer was to acquire the Debtor's hotel assets directly from the Debtor, whereas, under the Hotel Sale Contract, the Debtor will first contribute its hotel assets to a newly formed limited liability company subsidiary and then, virtually simultaneously, the Buyer will acquire 100% of the membership interests in Waterscape II. In addition, the Hotel Sale Contract includes provisions that specifically address the Debtor's then impending Chapter 11 filing. Thus, pursuant to the Hotel Sale Contract, the parties will seek to have the contract approved and closed pursuant to a plan of reorganization without an auction process. If the Bankruptcy Court does not enter an order approving the sale by on or before May 30, 2011, then the Debtor is required to return one half of the previously paid deposit, leaving a deposit of $6,300,000 with the Debtor. In addition, should an auction process be ordered, the Buyer would be entitled to certain "Stalking Horse Protections" including a Break-Up Fee equal to 3% of the agreed sale price, plus a reimbursement of expenses, in the event that the Debtor were to sell its assets to a different buyer; and the Buyer's deposit shall be reduced to $2,600,000 and the balance returned to the Buyer. Also, the Hotel Sale Contract provides that the Buyer will have the right to terminate the contract if the Bankruptcy Court has not approved the contract within the earlier of July 29, 2011, or the date that is 120 days after the Petition Date. Finally, the Hotel Sale Contract provides that, irrespective of whether an auction process is ordered, the Debtor will reimburse the Buyer for its costs and expenses directly relating to the Chapter 11 Case. WATERSCAPE RESORT: Case Summary & 6 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Waterscape Resort LLC aka Cassa NY Hotel And Residences 15 West 34th Street New York, NY 10001 Bankruptcy Case No.: 11-11593 Chapter 11 Petition Date: April 5, 2011 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Brett D. Goodman, Esq. Lee William Stremba, Esq. TROUTMAN SANDERS LLP The Chrysler Building 405 Lexington Avenue New York, NY 10174 Tel: (212) 704-6170 (212) 704-6143 Fax: (212) 704-5966 (212) 704-6137 E-mail: brett.goodman@troutmansanders.com lee.stremba@troutmansanders.com Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $100,000,001 to $500,000,000 The petition was signed by Ezak Assa, executive vice president. Debtor's List of six Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Mark David Trade Debt $638,504 621 Southwest Street High Point, NC 27260 LOAR Corporate Servicing, Inc. Trade Debt $126,085 P.O. Box 737 Yonkers, NY 10704 Koni Corp. Trade Debt $65,747 9654 Siempra Viva Road, Suite 1-2 San Diego, CA 92154 Canfield Madden Legal Fees $53,195 Holland & Knight Legal Fees $26,782 Miron & Sons Linen Service Trade Debt $21,914 WEB2B PAYMENT: Case Summary & 7 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: WEB2B Payment Solutions, Inc. 222 South 9th Street, Suite 2910 Minneapolis, MN 55402 Bankruptcy Case No.: 11-42325 Chapter 11 Petition Date: April 4, 2011 Court: U.S. Bankruptcy Court District of Minnesota (Minneapolis) Judge: Robert J. Kressel Debtor's Counsel: Kenneth Corey-Edstrom, Esq. LARKIN HOFFMAN DALY & LINGREN LTD 1500 Wells Fargo Plaza 7900 Xerxes Avenue South Minneapolis, MN 55431 Tel: (952) 835-3800 Fax: (952) 896-3333 E-mail: kcoreyedstrom@larkinhoffman.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 seven largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/mnb11-42325.pdf The petition was signed by Ronald D. Schlegel, president. WESTERN APARTMENT: Days Inn Maui in Chapter 11 for the 3rd Time --------------------------------------------------------------- Western Apartment Supply & Maintenance Company filed a Chapter 11 petition (Bankr. D. Hawaii Case No. 11-00941) in Honolulu, Hawaii, on April 5, 2011. The Debtor, the owner and operator of the Days Inn Maui Oceanfront Inn at 2980 S. Kihei Road, Kihei, Maui Hawaii, estimated assets and debts between $10 million and $50 million. The present owner acquired the hotel in February 2000. This is the third time Western Apartment has sought bankruptcy protection. It first filed a Chapter 11 petition (Case No. 04- 00072) in January 2004 then returned to Chapter 11 (Case No. 06- 00459) in July 2006. Both cases were dismissed and Western Apartment continued to operate the hotel. Carroll Davis, sole owner and president of the Debtor, said in a court filing that the latest Chapter 11 case has been filed in order to allow the Debtor to continue its operations, notwithstanding a pending state court proceeding, One West Bank v. Western Apartment Supply & Maintenance Company, Civil No. 10-1- 0045 (Second Circuit, State of Hawaii). "Like all hotel operations, it has been affected by the downturn in the Hawaii and world economy," Ms. Davis relates. "The Debtor has been unable to satisfy all of the financial demands, including large debt service payment to its only secured creditor, OneWest Bank." At the time of the filing, OneWest Bank filed a Uniform Commercial Code Financing Statement, covering the various sales receipts and property of the Estate and the Debtor plans to provide OWB with adequate protection by way of replacement liens and periodic payments. The Debtor believes that with time, the expected recovery of the economy and the recovery among the Debtor's domestic and foreign travelers, and the reduction in monthly debt service payments through adequate protection payments, it will once again be profitable. "This Chapter 11 will give the Company an opportunity to scale back its monthly debt service payments, to streamline operation and begin to pay down the principal amount in the plan," Ms. Davis tells the Court. WESTERN APARTMENT: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Western Apartment Supply & Maintenance Company 2980 S. Kihei Road Kihei, HI 96753 Bankruptcy Case No.: 11-00941 Chapter 11 Petition Date: April 5, 2011 Court: U.S. Bankruptcy Court District of Hawaii (Honolulu) Judge: Robert J. Faris Debtor's Counsel: Jeffery S. Flores, Esq. Jerrold K. Guben, Esq. O'CONNOR PLAYDON & GUBEN LLP Pacific Guardian Center Makai Tower, Suite 2400 733 Bishop Street Honolulu, HI 96813 Tel: (808) 524-8350 Fax: (808) 531-8628 E-mail: jsf@opglaw.com jkg@opglaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Carroll Davis, president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Days Inn Unpaid Franchise $69,765 22 Sylvan Way Fees Parisppany, NJ 07054 Insurance Factors Unpaid Insurance $57,342 1325 South Kihei Road, Suite 210 Kihei, HI 96753 Alii Linen Services Unpaid Linen $25,773 312H Alamaha Street Services Kahului, HI 96732 First Comp Unpaid Worker's $12,004 Compensation Insurance KMH LLP Unpaid Accounting $10,980 Services Department of Water Supply Unpaid Water Service $10,911 Booking.com Unpaid Marketing $7,002 Services Sysco Guest Supply Unpaid Guest Supply $6,841 Hawaii Medical Service Unpaid Health $4,938 Association Insurance Chris Hart & Partners, Inc. Unpaid Legal Fees $3,801 Oceanic Time Warner Cable Unpaid Cable Services $2,173 Andy Schor Landscaping & Unpaid Gardening Work $1,652 Maintenance Scott's Refrigeration Unpaid Repair Work $1,423 Hawaiian Paradise Coffee Unpaid Guest Supplies $1,342 Wavecom Solutions Unpaid Phone Service $1,128 The Gas Company Unpaid Gas Service $972 M3 Accounting Services, Inc. Unpaid Accounting $906 Services First Insurance Company of Hawaii Unpaid Insurance Fees $868 LTD Elavon Unpaid Merchant Fees $686 Saflok Unpaid Hotel Locks $608 and Safe Key/Locks WESTLAND PARCEL: Has Green Light to Hire Kallman as Accountants --------------------------------------------------------------- Westland Parcel J Partners, LLC, won Bankruptcy Court permission to employ Kallman & Co., LLC, to serve as its certified public accountants. Kallman served as the Debtor's pre-bankruptcy accountants since April 2010. The firm has been paid $21,055 for pre-bankruptcy accounting services. The firm will be paid on an hourly basis: Stephen Logan, CPA, Partner $325 Joyce Chang, CPA, Manager $225 Danielle Li, Staff Accountant $150 On Nov. 12, 2010, Kallman received from the Debtor a $10,000 pre- bankruptcy retainer, none of which was earned in the prepetition period. The firm also has provided accounting services to T. Courtney Dubar, the Debtor's managing member, as well as to various entities that Mr. Dubar has an interest in. The firm is not a creditor of the Debtor, but Mr. Dubar is a creditor of the Debtor. Kallman attests that it represents no interest adverse to the Debtor, or its estate, in the matters upon which it is to be engaged. About Westland Parcel J Partners Long Beach, California-based Westland Parcel J Partners, LLC, filed for Chapter 11 bankruptcy protection on November 15, 2010 (Bankr. C.D. Calif. Case No. 10-58987). Jeffrey S Shinbrot, Esq., at The Shinbrot Firm, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate David William Neary (Bankr. C.D. Calif. Case No. 10- 39802) filed separate Chapter 11 petition on July 20, 2010. WINDEMERE APARTMENTS: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Windemere Apartments, LLC 2003 Wesley Drive Arlington, TX 76012 Bankruptcy Case No.: 11-42050 Chapter 11 Petition Date: April 4, 2011 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: D. Michael Lynn Debtor's Counsel: Chad Aubrey Norcross, Esq. CHAD A. NORCROSS, PLLC 5430 Glen Lakes, Suite 260 Dallas, TX 75231 Tel: (214) 368-9300 Fax: (214) 368-9306 E-mail: chad.norcross@norcrosslaw.com Scheduled Assets: $2,238,000 Scheduled Debts: $1,870,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Viz Ajro, managing partner. WJO INC: Wins OK to Hire Special Counsel for TMR Cases ------------------------------------------------------ WJO Inc. won Court permission to employ Pond Lehocky Stern Giordano as special counsel. Pond Lehocky will represent the Debtor in worker's compensation proceedings pertaining to the Therapeutic Magnetic Resonance treatments or defend the Debtor's bills and property payments of those bilsl pertaining to TMR. Pond Lehocky may be compensated from whatever sum is secured by the firm from the worker's compensation cases for TMR treatments from worker's compensation insurance carriers by way of judge's decision, court decision or lump sum resolution, up to 50% for professional services for the first $300,000 in funds settled and collected. After the first $300,000, the firm may be paid up to 25% for professional services. Prior to the filing of the bankruptcy case, Pond Lehocky represented the Debtor in legal matters, and as of the Petition Date, there were no outstanding fees owed by the Debtor for these services. Pond Lehocky's Samuel H. Pond, Esq., attests that his firm has no connection with the Debtor and is not an insider or affiliate of the Debtor. About WJO Inc. Bristol, Pennsylvania-based WJO, Inc., operates six family practices located in Newtown, Bristol, Bensalem, Bustleton, South Philadelphia, and Bethlehem, Pennsylvania and consists of Board Certified Osteopathic Physicians specializing in Family Medicine. Prior to the petition date, and to allow the Company to restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx III, LP, and East Coast TMR, Inc., were merged into WJO. WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 10-19894) on Nov. 15, 2010. Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy counsel. Attorneys at Keifer & Tsarouhis LLP serve as counsel to the official committee of unsecured creditors. The Debtor disclosed $19,923,802 in assets and $6,805,255 in liabilities as of the Chapter 11 filing. The United States Trustee has appointed David Knowlton as patient care ombudsman in the case. The Ombudsman is represented in the case by Karen Lee Turner, Esq., at Eckert Seamans Cherin & Mellott, LLC, as counsel. WJO INC: Ombudsman Gets OK to Hire Eckert Seamans as Counsel ------------------------------------------------------------ David L. Knowlton, the patient care ombudsman appointed in the bankruptcy case of WJO Inc., won Bankruptcy Court permission to employ Eckert Seamans Cherin & Mellott, LLC, to serve as legal counsel. Karen Lee Turner, Esq., at Eckert Seamans, attests that the firm has no connection with the Debtor or any other party-in-interest, and that the firm is a "disinterested person" within the meaning of Sec. 101(14) of the Bankruptcy Code. Eckert Seamans will be paid on an hourly basis at these rates: Karen Lee Turner $510 Paralegals $100 - $155 Associates $220 - $250 Other Partners $375 - $425 The firm may be reached at: Karen Lee Turner, Esq. ECKERT SEAMANS CHERIN & MELLOTT, LLC Two Liberty Place 50 South 16th Street, 22nd Floor Philadelphia, PA 19102 Tel: (215) 851-8400 Fax: (215) 851-8383 E-mail: kturner@eckertseamans.com About WJO Inc. Bristol, Pennsylvania-based WJO, Inc., operates six family practices located in Newtown, Bristol, Bensalem, Bustleton, South Philadelphia, and Bethlehem, Pennsylvania and consists of Board Certified Osteopathic Physicians specializing in Family Medicine. Prior to the petition date, and to allow the Company to restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx III, LP, and East Coast TMR, Inc., were merged into WJO. WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 10-19894) on Nov. 15, 2010. Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy counsel. Attorneys at Keifer & Tsarouhis LLP serve as counsel to the official committee of unsecured creditors. The Debtor disclosed $19,923,802 in assets and $6,805,255 in liabilities as of the Chapter 11 filing. The United States Trustee has appointed David Knowlton as patient care ombudsman in the case. The Ombudsman is represented in the case by Karen Lee Turner, Esq., at Eckert Seamans Cherin & Mellott, LLC, as counsel. * First Quarter Consumer Bankruptcy Filings Fall 6% from 2010 ------------------------------------------------------------- American Bankruptcy Institute reports that consumer bankruptcies for the first quarter of 2011 decreased 6% nationwide from the same time period in 2010, according to ABI, relying on data from the National Bankruptcy Research Center NBKRC. * Five Hunton Partners Head to DLA's New Miami Outpost ------------------------------------------------------ Bankruptcy Law360 reports that DLA Piper LLP said Monday it had lured five Hunton & Williams LLP partners, including that firm's international, bankruptcy and tax practice group leaders, to its brand-new Miami office. According to Law360, Carlos Loumiet and John Haley joined DLA as partners in the corporate practice, Craig Rasile and Andrew Zaron joined as partners in the bankruptcy practice, and Michael Silva climbed aboard. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In Re SS&H, LLC. Bankr. S.D. Ala. Case No. 11-01252 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/alsb11-01252.pdf In Re Rovion Inc. Bankr. C.D. Calif. Case No. 11-14461 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/cacb11-14461.pdf In Re The Family Post Inc. Bankr. C.D. Calif. Case No. 11-14463 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/cacb11-14463.pdf In Re Ivan Lee Bankr. E.D. Calif. Case No. 11-27845 Chapter 11 Petition filed March 30, 2011 In Re Frank Wright Bankr. N.D. Calif. Case No. 11-11128 Chapter 11 Petition filed March 30, 2011 In Re Gary Miller Bankr. N.D. Calif. Case No. 11-11127 Chapter 11 Petition filed March 30, 2011 In Re US Capital Corporation Bankr. S.D. Calif. Case No. 11-05032 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/casb11-05032.pdf In Re Gary Olsen Bankr. D. Conn. Case No. 11-50614 Chapter 11 Petition filed March 30, 2011 In Re Twin Oaks Horticultural Associates, LLC fdba Deepwood Nursery Bankr. D. Conn. Case No. 11-50615 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/ctb11-50615.pdf In Re Signalstar LLC dba Hot Kiss Bankr. M.D. Fla. Case No. 11-05874 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/flmb11-05874.pdf In Re L&J Clark LLC Bankr. D. Mass. Case No. 11-12700 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/mab11-12700.pdf In Re East Tropicana Inv. Bankr. D. Nev. Case No. 11-14624 Chapter 11 Petition filed March 30, 2011 See http://bankrupt.com/misc/nvb11-14624.pdf In Re MOSHOSHAUMO, LLC Bankr D. Nev. Case No. 11-14614 Chapter 11 Petition filed March 30, 2011 filed pro se In Re James Georginis Bankr. D. N.J. Case No. 11-19694 Chapter 11 Petition filed March 30, 2011 In Re Lance Chatkin Bankr. W.D. Pa. Case No. 11-21911 Chapter 11 Petition filed March 30, 2011 In Re John McCombs Bankr. S.D. Ala. Case No. 11-01293 Chapter 11 Petition filed March 31, 2011 In Re Benjamin Kang Bankr. C.D. Calif. Case No. 11-23910 Chapter 11 Petition filed March 31, 2011 In Re Daniel Rodarte Bankr. C.D. Calif. Case No. 11-23824 Chapter 11 Petition filed March 31, 2011 In Re Gary Bodenweiser Bankr. C.D. Calif. Case No. 11-20789 Chapter 11 Petition filed March 31, 2011 In Re Leonor Zimerman Bankr. C.D. Calif. Case No. 11-14045 Chapter 11 Petition filed April 1, 2011 In Re Waheed Akhtar Bankr. E.D. Calif. Case No. 11-27951 Chapter 11 Petition filed March 31, 2011 In Re Alegria Hipolito Bankr. N.D. Calif. Case No. 11-53072 Chapter 11 Petition filed March 31, 2011 In Re Carole Shelton Bankr. N.D. Calif. Case No. 11-11183 Chapter 11 Petition filed March 31, 2011 In Re Mary Henderson Bankr. M.D. Fla. Case No. 11-06181 Chapter 11 Petition filed March 31, 2011 In Re Jeffrey Purtle Bankr. D. Kan. Case No. 11-20880 Chapter 11 Petition filed March 31, 2011 In Re Michael Gallicchio Bankr. D. N.J. Case No. 11-19772 Chapter 11 Petition filed March 31, 2011 In Re Mark Skoda Bankr. W.D. Tenn. Case No. 11-23283 Chapter 11 Petition filed March 31, 2011 In Re Robert Ruiz Patricia Ruiz Bankr. W.D. Texas Case No. 11-30602 Chapter 11 Petition filed March 31, 2011 In Re Bryan Thorell Bankr. D. Utah Case No. 11-24430 Chapter 11 Petition filed March 31, 2011 In Re Allen Ferguson Bankr. E.D. Va. Case No. 11-32141 Chapter 11 Petition filed March 31, 2011 In Re William Warr Bankr. N.D. Ala. Case No. 11-40888 Chapter 11 Petition filed April 1, 2011 In Re Timothy Marine Bankr. S.D. Ala. Case No. 11-01313 Chapter 11 Petition filed April 1, 2011 In Re Huu Tieu Bankr. C.D. Calif. Case No. 11-14686 Chapter 11 Petition filed April 1, 2011 In Re Jacob Jones Bankr. M.D. Fla. Case No. 11-02406 Chapter 11 Petition filed April 1, 2011 In Re Patricia Studier Bankr. S.D. Ga. Case No. 11-40690 Chapter 11 Petition filed April 1, 2011 In Re Jeffrey Geftos Cynthia Geftos Bankr. E.D. Mich. Case No. 11-49372 Chapter 11 Petition filed April 1, 2011 In Re Pamela Rodgers Bankr. E.D.N.Y. Case No. 11-42754 Chapter 11 Petition filed April 1, 2011 In Re Jose Hernandez Bankr. S.D. Texas Case No. 11-32749 Chapter 11 Petition filed April 1, 2011 In Re Randall Byrd Bankr. W.D. Texas Case No. 11-10781 Chapter 11 Petition filed April 1, 2011 In Re Edward Byington Bankr. W.D. Va. Case No. 11-70729 Chapter 11 Petition filed April 1, 2011 In Re William Budigan Bankr. W.D. Wash. Case No. 11-13822 Chapter 11 Petition filed April 1, 2011 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ 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 ***