/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110425.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, April 25, 2011, Vol. 14, No. 113 Headlines 207 REDWOOD: Wants to Delay Disclosure Statement Hearing to July 5 ADOBE TRUCKING: PNC, et al., Want Case Converted to Chapter 7 AEOLUS PHARMACEUTICALS: Engages Duke for Scientific Research AES CORPORATION: Fitch Affirms 'B+' Issuer Default Rating AES CORPORATION: Moody's Affirms 'B1' CFR, Outlook Now Positive ALONDRA & VIRGINIA: Case Summary & Largest Unsecured Creditor AMBAC FINANCIAL: AAC Delays Commencement of Claim Payments AMERICAN APPAREL: Obtains Up to $43MM Funding to Avert Bankruptcy AMERICAN EXPRESS: Fitch Affirms 'B' Individual Rating AMERITOX LTD: S&P Assigns 'B' Corporate Credit Rating AMBASSADORS INT'L: Court Okays Quick Assets Sale Timeline AMBASSADORS INT'L: Sec. 341 Meeting of Creditors Set for May 10 AMBASSADORS INT'L: Taps Stroock & Stroock as Bankruptcy Counsel AMBASSADORS INT'L: Pachulski/Kelley Out; Bifferato/Lowenstein In AMTRUST FINANCIAL: Says Proposed Harbor-Led Sale Process Fair ANGIOTECH PHARMA: Outside Date Under Support Deal Extended May 12 ARK DEVELOPMENT/OCEANVIEW: Florida Properties Owner in Ch. 11 ASPIRE INTERNATIONAL: Incurs $2.51 Million Net Loss in 2010 ASSET ACCEPTANCE: Moody's Affirms 'B1' Ratings; Outlook Negative ASSET ACCEPTANCE: S&P Affirms 'BB-' Counterparty Credit Rating AXION INTERNATIONAL: Delays Filing of Annual Report BANKATLANTIC BANCORP: Gets OTS OK for Sale of 19 Tampa Branches BANKUNITED FINANCIAL: Seeks to Hire Structured Capital as Advisor BBB ACQUISITION: Asks for Plan Exclusivity Until June 20 BLAST ENERGY: GBH CPAs Raises Going Concern Doubt BOWE BELL + HOWELL: Taps Garden City as Notice & Claims Agent BROOKLYN NAVY: Fitch Affirms & Withdraws B+ Rating & Neg. Outlook BROOKS SIMMONS: Lender Obtains Relief from Stay CAPITAL AV: Case Summary & 4 Largest Unsecured Creditors CAPITOL BANCORP: Lee Hendrickson Retires as Company CFO CAREFREE WILLOWS: Seeks to Employ Alan R. Smith as Co-Counsel CAREFREE WILLOWS: Wants Marquis Aurbach for AG/ICC Claims Issue CARPENTER CONTRACTORS: Court Approves Crowe Horwath as Accountant CARPENTER CONTRACTORS: Inks New CBA with Chicago Carpenters Union CATALYST PAPER: Snowflake Loses Half of Paper Inventory to Fire CHESAPEAKE CORP: Canal's Amended Joint Liquidation Plan Effective CHINA RITAR: Receives Nasdaq Staff Deficiency Letter CLAIRE'S STORES: Bank Debt Trades at 5% Off in Secondary Market CLEAR CHANNEL: Bank Debt Trades at 11% Off in Secondary Market CLEARWIRE CORP: K. Rae and J. Vogel Nominated to Board COLIN-G PROPERTIES: Case Summary & 18 Largest Unsecured Creditors COMMUNITY CENTRAL: Receives Delisting Notice From NASDAQ COMPTON PETROLEUM: To Hold Annual and Special Meeting on May 10 CONTECH CONST'N: Bank Debt Trades at 13% Off in Secondary Market CREDIT-BASED ASSET: Court Convenes Confirmation Hearing Today CREEKSIDE-DOUBLE: Case Summary & 3 Largest Unsecured Creditors DANCING BEAR: To Make Sec. 362(d)(3) Payments on April 29 DB CAPITAL: Aspen HH's Seeks Appointment of Ch. 11 Trustee DEL-A-RAE INC: Unbridled Optimism Leads to Relief from Stay DEL-A-RAE INC: Oversecured Creditor Gets Default Interest Rate DEX MEDIA EAST: Bank Debt Trades at 21% Off in Secondary Market DEX MEDIA WEST: Bank Debt Trades at 10% Off in Secondary Market DLGC II: Section 341(a) Meeting Scheduled for May 17 DOVE VALLEY: Voluntary Chapter 11 Case Summary DTO HOLDINGS: Voluntary Chapter 11 Case Summary DUKE REALTY: Fitch Downgrades Preferred Stock Rating to 'BB' DYNAVAX TECHNOLOGIES: Purchase and Sale Pact Kept Confidential ELLIPSO INC: Court Affirms CEO's $3,167 Expense Claim ELM STREET: Amends List of 20 Largest Unsecured Creditors ELM STREET: Creditors Have Until June 15 to File Proofs of Claim ELM STREET: Files Schedules of Assets and Liabilities EMIVEST AEROSPACE: Court Approves Sale of San Antonio Headquarters ENCINO CORPORATE: Files for Chapter 11 in California ENCINO CORPORATE: Case Summary & 20 Largest Unsecured Creditors FAIRPOINT COMMUNICATIONS: District Judge Affirms Plan Approval FIRST SECURITY: Incurs $44.34 Million Net Loss in 2010 FIRST SECURITY: Kelly Kirkland Elected to Board of Directors FONIX CORP: G. Steedley and B. Jordan Resign From Board FREEDOM COMMUNICATIONS: Creditors Pursue Hoiles Family GAMETECH INTERNATIONAL: Four Directors Elected at Annual Meeting GARRISON ROAD: Court Dismisses Involuntary Chapter 11 Case GATEHOUSE MEDIA: Bank Debt Trades at 56% Off in Secondary Market GEORGE MASSEY: Court Affirms Ruling on Law Firm's Fees GLC LIMITED: Wants to Hire Leon E. Ebbert as Accountants GLC LIMITED: Taps James Burritt as Chief Restructuring Officer GLC LIMITED: Court Okays Morrison Manning as Committee's Counsel GLOBAL MED: Case Summary & 8 Largest Unsecured Creditors GMX RESOURCES: S&P Assigns 'B-' Corporate Credit Rating GRAPHIC PACKAGING: Fitch Holds 'B' IDR; Revises Outlook to Pos. GREAT ATLANTIC & PACIFIC: Teamsters Balk at Bid to Reject Pensions GREYSTONE LOGISTICS: Incurs $101,558 Loss in Feb. 28 Quarter HANOVER INSURANCE: Fitch Affirms 'BB' Jr. Sub. Debenture Rating HARRY & DAVID: Creditors Committee Balks at Rights Offering HASSEN REAL ESTATE: Court Extends Filing of Schedules Until May 27 HASSEN REAL ESTATE: Section 341(a) Meeting Scheduled for May 23 HASSEN REAL ESTATE: Wants to Use Cash Collateral; Lenders Object HAWKER BEECHCRAFT: Bank Debt Trades at 12% Off in Secondary Market HERITAGE ORGANIZATION: Bankr. Ct. Won't Hear TUFTA Claims HORIZON BANCORP: Incurs $5.77 Million Net Loss in 2010 HORSESHOE POINT: Court Grants Lender Relief From Stay HOVNANIAN ENTERPRISES: Fitch Affirms 'CCC' IDR; Outlook Now Stable HSRE-CDS: Creditor Wants Chapter 11 Case Dismissed IMPERIO DE SIMON: Case Summary & 15 Largest Unsecured Creditors INOVA TECHNOLOGY: Amends 2008 10-K; Posts $1.45 Million Net Loss INOVA TECHNOLOGY: Awarded $570,000 Network Solutions Project INTELSAT SA: Amends Form S-1; Stockholders to Sell $190MM Notes INTERNATIONAL GARDEN: Selling Assets to Gardens Alive at Auction IVOICE INC: Rosenberg Rich Raises Going Concern Doubt JACOBS FINANCIAL: Incurs $344,701 Net Loss in Feb. 28 Quarter JENNIFER CONVERTIBLES: Reports $32.1MM Net Income in Feb. 26 Qtr. JETBLUE AIRWAYS: Donald Smith Discloses 10.06% Equity Stake KARLEN MANAGEMENT: Case Summary & 8 Largest Unsecured Creditors KCXP INVESTMENTS: Wins Approval to Employ Darby Law as Counsel KH FUNDING: U.S. Trustee Gets More Time to Object to BDO Hiring KM ALLIED OF NAMPA: May Restructure Zions Bank Claim KM ALLIED OF NAMPA: Can't Use Plan Outline as Legal Brief LA JOLLA: To Effect a 1-for-100 Reverse Stock Split LAKE PLEASANT: Section 341(a) Meeting Scheduled for May 17 LEGACY AT JORDAN: Court Denies Confirmation of Plan LITTLE REST: Seeks Dismissal of Involuntary Petition LITTLE TOKYO: Court Approves First-Citizens Deal to Exit Chap. 11 LOCATEPLUS HOLDINGS: Derrick Spatorico Elected to Board M&M CONTRACTING: Case Summary & 20 Largest Unsecured Creditors MANSIONS AT HASTINGS: Taps Joyce McFarland as Special Counsel MARONDA HOMES: Taps Manion McDonough as Bankruptcy Counsel METAMORPHIX INC: Court OKs Chapter 7 Conversion METISCAN INC: Large Accumulated Deficit Cues Going Concern Doubt MFJT LLC: Seeks to Employ Crane Heyman as Counsel MFJT LLC: Seeks to Employ Tailwind Services as Financial Advisor MGIC INVESTMENT: Posts Third Straight Quarterly Loss MICHAEL R MASTRO: Case Trustee Rejects $7.1MM Judgment Offer MIDWAY GAMES: Judge Gross Won't Hear Mortal Kombat Dispute MK NETWORK: Bankruptcy Court Dismisses Chapter 11 Cases MMFX CANADIAN: Court Okays Pillsbury as Special Corporate Counsel MMFX CANADIAN: Committee Authorized to File Documents Under Seal MONEYGRAM INT'L: Completes Syndication Process of $540MM Facility MORTGAGEBROKERS.COM: Incurs $494,009 Net Loss in 2010 NACHSHON DRAIMAN: Court Rejects Plan, Mulls Dismissal or Chapter 7 NARAYAN KRUPA: Case Summary & 17 Largest Unsecured Creditors NEWPAGE CORP: Curtis Short Elected Interim SVP and CFO NORTEL NETWORKS: Canada Balks at Bid to Sell Internet Addresses NPS PHARMACEUTICALS: Converts $30.57MM Notes to Common Shares NPS PHARMACEUTICALS: Completes 12.65MM Common Stock Offering PARTSEARCH TECHNOLOGIES: Committee Hires BDO for Tax Services PAYMENT DATA: Incurs $464,168 Net Loss in 2010 PINNACLE HILLS: Section 341(a) Meeting Scheduled for May 24 PINNACLE HILLS: Taps Bond Law as Bankruptcy Counsel PLATINUM ENERGY: Incurs $5.13 Million Net Loss in 2010 PLAYLOGIC ENTERTAINMENT: Changes Name to Donar Ventures POLI-GOLD LLC: Exclusive Plan Filing Period Extended Until June 15 PURESPECTRUM INC: Incurs $7.97 Million Net Loss in 2010 QUALITY BODY: Case Summary & 5 Largest Unsecured Creditors RADIANT OIL: Incurs $2.97 Million Net Loss in 2010 RADIENT PHARMACEUTICALS: Sees $68MM to $74MM Net Loss in 2010 RCI REGIONAL: Section 341(a) Meeting Scheduled for May 18 RED MOUNTAIN: Separate Classification of Deficiency Claim Okay REGAL PLAZA: Taps Charles E. Jack as Real Estate Appraisers REGEN BIOLOGICS: Potential Bidder Provides Bankruptcy Loan RITE AID: Board Approves Adoption of 2012 Bonus Plan RIVER ISLAND: Wants to Hire Sandler & Sandler as Attorneys RIVER ISLAND: Files Schedules of Assets and Liabilities ROYAL PUBLIC: Voluntary Chapter 11 Case Summary SCHMITT CONSTRUCTION: Case Summary & Creditors List SEAHAWK DRILLING: Shareholders Dispute Bonus Program SEALY CORP: Nine Directors Elected at Annual Meeting SENEZ ROOFING: Case Summary & 8 Largest Unsecured Creditors SEVERN BANCORP: Announces $1.0 Million Increase in 1Q Earnings SHIPPERS' CHOICE: Creditor Challenges Motion for Final Decree SI INVESTMENTS: 11th Cir. Affirms Ruling on 99-Year Lease SILVIA JIMENEZ: House Necessary for Effective Reorganization SINOBIOMED INC: Dismisses Schumacher & Associates as Accountants SKINNY NUTRITIONAL: Incurs $6.91 Million Net Loss in 2010 SONJA TREMONT: Court Denies Hannibal Pictures' Motion to Dismiss SOUTH PADRE: Files Schedules of Assets and Liabilities SUPERIOR BANCORP: Bank Closed by OTS; FDIC Appointed Receiver SWORDFISH FINANCIAL: Incurs $2.69 Million Net Loss in 2010 TAYCO, LLC: Case Summary & 4 Largest Unsecured Creditors TBS INTERNATIONAL: Agrees to Modify Loan Covenants TELTRONICS INC: May Sell Maintenance Contracts to Raise Capital TENET HEALTHCARE: Board to Review CHS's Revised Proposal THORNBURG MORTGAGE: Officers' Counterclaims Survive Dismissal Bid THORNBURG MORTGAGE: Ch. 11 Trustee Can't Block Docs in Fraud Suit TONGJI HEALTHCARE: Incurs $56,232 Net Loss in 2010 TOP SHIPS: In Breach of Financial Covenants with Certain Banks TRADE UNION: Taps Tatum LLC as Reorganization Consultant TRADE UNION: Employs Shulman Hodges as General Counsel TRADE UNION: Court Junks Request for Appointment of Ch. 11 Trustee TRANSAX INTERNATIONAL: Incurs $2.09 Million Net Loss in 2010 TREY RESOURCES: Enters Into $550,000 Promissory Notes TRIBUNE CO: Bank Debt Trades at 30% Off in Secondary Market TRICO MARINE: Units Escape Ch. 11 as Deal with Lenders Reached TSP CO: Bankruptcy Judge Won't Hearing KOSHA Proceedings ULTIMATE ACQUISITION: Streambank to Auction Intangible Assets ULURU INC: Lane Gorman Raises Going Concern Doubt VILICA LLC: Creditors Meeting Scheduled for May 4 VITRO SAB: Affiliates Seek Extension of Schedule Filing Deadline VIVAKOR INC: Matthew Nicosia Appointed as Chief Financial Officer WASHINGTON MUTUAL: Fund Seeks Docs Backing Investor's Claims WEGENER CORP: Incurs $970,584 Net Loss in March 4 Quarter WILLIAM LYON: Expects to Complete Financials Within Grace Period WIRELESS TELECOM: Court Rules on Pepper Hamilton's Fee Request WITS END: Voluntary Chapter 11 Case Summary YRC WORLDWIDE: Parties Finalizing Definitive Agreements * Grant Analyzes Factors Behind Automobile Loans Performance * Fitch: Global CDS Spreads Widen Across All Sectors * S&P's 2011 Global Corporate Defaults Now Total 13 * U.S. Corporate Credit Risk Falls to Two-Week Low on Earnings * Filings Under Wisconsin Bankruptcy Statutes Increase * Value of Bankruptcy Claims Traded Jumped in First Quarter * A&M's Business Consulting Group Gets Kalakota, Rawal * BOND PRICING -- For Week From April 18 - April 22 ********* 207 REDWOOD: Wants to Delay Disclosure Statement Hearing to July 5 ------------------------------------------------------------------ 207 Redwood LLC is asking the U.S. Bankruptcy Court for the District of Maryland to extend its exclusive period to solicit acceptances to its proposed plan of reorganization to June 2, 2011. The Debtor is actively engaged in negotiations with its secured lender, RL BB Financial LLC and other parties-in-interests on a consensual resolution of the Chapter 11 case. While the Debtor expects those negotiations to conclude shortly, they were not finalized and implemented within the current exclusive solicitation period. The Debtor further notes that if the extension is granted, that period will overlap with the currently scheduled May 5, 2011 hearing on the Disclosure Statement accompanying the Plan. Against this backdrop, the Debtor asks the Court to continue the Disclosure Statement hearing to July 5, 2011. About 207 Redwood Columbia, Maryland-based 207 Redwood LLC filed for Chapter 11 protection (Bankr. D. Md. Case No. 10-27968) on Aug. 6, 2010. James A. Vidmar, Jr., Esq., and Lisa Yonka Stevens, Esq., at Logan, Yumkas, Vidmar & Sweeney LLC, assist the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $14,500,000 in total assets and $24,097,109 in total liabilities as of the Petition Date. ADOBE TRUCKING: PNC, et al., Want Case Converted to Chapter 7 ------------------------------------------------------------- PNC Bank, National Association, M& I Business Credit, LLC, Land Holding, LLC, and Paul Frank ask Judge Ronald B. King of the U.S. Bankruptcy Court for the Western District of Texas to convert Adobe Trucking, Inc.'s Chapter 11 case to a case under Chapter 7 of the Bankruptcy Code. According to the Bank Parties, the Debtor's representative testified at the meeting of creditors that the Debtor has no employees and no real plans to restart its business. When asked by the U.S. Trustee for Region 6, the Debtor was unable to articulate any plan to restart the business or to reorganize, they point out. The Debtor also has no income, the Bank Parties point out. In its statement of financial affairs, the Debtor admits that it had zero gross income from the operations of its business for 2010, and only $142,925 for 2009. The Debtor has no cash or income to pay its administrative expenses, including legal and professional fees and the U.S. Trustee's fees. "It appears that the Debtor's principal or affiliates are partially funding the costs of the bankruptcy case as part of the Adobe parties' litigation against us," the Bank Parties allege. Moreover, the Debtor, according to the Bank Parties, has failed to comply with its statutory duties as a debtor-in-possession. The Debtor has not filed any monthly operating reports during the entire pendency of it Chapter 11 case and it is unclear whether the Debtor submitted missing federal tax returns to the U.S. Trustee. The Debtor has also not filed any motions seeking approval for any financing or investment or to enter into any business transactions to restart its business operations. The Bank Parties stress that the Debtor has not filed a disclosure statement or proposed a plan of reorganization. For those reasons, the Bank Parties insist that cause exists to convert the Debtor's Chapter 11 case to Chapter 7 because this shuttered business belongs to Chapter 7. The Court will consider PNC's request on April 26, 2011, at 1:45 p.m. The Bank Parties are represented by: Michael D. Morfey, Esq. ANDREWS KURTH LLP 600 Travis, Suite 4200 Houston, Texas 77002 Tel: (713) 220-4163 Fax: (713) 238-7259 E-mail: michaelmorfey@andrewskurth.com - and - Pat Long Weaver, Esq. STUBBEMAN, MCRAE, SEALY, LAUGHLIN & BROWDER, INC. Fasken Center, Tower Two, Suite 800 Midland, Texas 79702 Tel: (432) 682-1616 Fax: (432) 682-4884 About Adobe Trucking, Inc. Odessa, Texas-based Adobe Trucking, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Texas Case No. 10-70353) on Nov. 23, 2010. Wiley France James, III, Esq., at James & Haugland, P.C., serves as the Debtor's bankruptcy counsel. The Debtor disclosed $10,339,616 in assets and $9,685,743 in liabilities. AEOLUS PHARMACEUTICALS: Engages Duke for Scientific Research ------------------------------------------------------------ Aeolus Pharmaceuticals, Inc., entered into a Sponsored Research Agreement with Duke University, pursuant to which the Company engaged Duke to perform a program of scientific research entitled "Murine Studies for the Development of AEOL 10150 as a Medical Countermeasure Against ARS and DEARE," which will include, among other things, studies and models of optimum dosing of AEOL 10150 in mice. The Company entered into the Sponsored Research Agreement in furtherance of the Company's efforts under the development agreement with the Office of Biomedical Research and Development Authority for the development of AEOL 10150, the Company's lead compound, as a medical countermeasure against the pulmonary sub-syndrome of acute radiation syndrome that the Company announced on Feb. 15, 2011. The Sponsored Research Agreement is a cost plus fee agreement inclusive of all direct and indirect costs. The term of the Sponsored Research Agreement will continue through Feb. 10, 2012, which is the end of the first year base period of performance under the BARDA Contract, provided that the Sponsored Research Agreement will be renewable for additional periods upon the mutual written consent of the parties and provided further that after Feb. 10, 2012, either party may terminate the Sponsored Research Agreement effective as of any anniversary date of the Sponsored Research Agreement by giving the other party at least 60 days' prior written notice. In addition, the Company has agreed to indemnify Duke for liability incurred in connection with matters resulting from or arising out of the Sponsored Research Agreement except in the event of Duke's negligence or willful misconduct, and Duke has agreed to indemnify the Company for liability incurred in connection with matters resulting from or arising out of the Sponsored Research Agreement except in the event of the Company's negligence or willful misconduct. About Aeolus Pharmaceuticals Based in Mission Viejo, California, Aeolus Pharmaceuticals Inc. (OTC BB: AOLS) -- http://www.aeoluspharma.com/-- is developing a variety of therapeutic agents based on its proprietary small molecule catalytic antioxidants, with AEOL 10150 being the first to enter human clinical evaluation. AEOL 10150 is a patented, small molecule catalytic antioxidant that mimics and thereby amplifies the body's natural enzymatic systems for eliminating reactive oxygen species, or free radicals. Studies funded by the National Institutes for Health are currently underway evaluating AEOL 10150 as a treatment for exposure to radiation, sulfur mustard gas and chlorine gas. A second compound, AEOL 11207, has demonstrated efficacy in animal models of Parkinson's disease and is currently being evaluated as a potential treatment for epilepsy. Haskell & White LLP, in Irvine, California, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has suffered recurring losses, negative cash flows from operations and management believes the Company does not currently possess sufficient working capital to fund its operations past the second quarter of fiscal 2012. The Company reported a net loss of $25.9 million, which included a non-cash charge of $21.3 million related to increases in the fair value of warrants, for fiscal 2010, compared with a net loss of $2.3 million for fiscal 2009. The Company did not generate any revenue during fiscal 2010 or fiscal 2009. AES CORPORATION: Fitch Affirms 'B+' Issuer Default Rating --------------------------------------------------------- Fitch Ratings has affirmed the ratings of AES Corporation (AES), including its 'B+' Issuer Default Rating (IDR), following announcement that it has reached a definitive agreement to acquire DPL Inc. (DPL) in an all cash transaction valued at approximately $4.7 billion including the assumption of $1.2 billion of DPL debt. At the same time, Fitch has downgraded and placed on Rating Watch Negative DPL's IDR to 'BBB+' from 'A-' and the IDR of its primary subsidiary, Dayton Power & Light Company (DP&L) to 'BBB+' from 'A'. After completion of the transaction, DPL will become a wholly owned subsidiary of AES. Under the terms of the agreement, DPL shareholders would receive $30 for each share held. AES has secured bridge financing for the acquisition. Permanent financing will consist of $1.25 billion of debt to be issued at DPL (non- recourse to AES), $2.05 billion of parent debt at AES and balance with cash on hand. The transaction is subject to several state and federal approvals such as the Public Utilities Commission of Ohio, the Federal Energy regulatory Commission and the customary antitrust review under hart-Scott-Rodino Act, as well as approval of DPL shareholders. AES expects to complete the transaction by the first quarter of 2012. Fitch views the acquisition of a regulated utility supportive of AES' credit quality since it increases the contribution of stable, regulated earnings in the overall portfolio mix, thus, lowering the business risk. Fitch estimates that the regulated cash flows from DPL will be approximately 20% of the consolidated cash flows. The re-leveraging at the parent level reflects in large part the re-issuance of corporate debt that was paid down in 2010 from $1.58 billion of equity sale proceeds received from China Investment Corporation (CIC). The impact on AES' credit metrics from the resulting incremental leverage is largely offset by cash flow contribution from DPL, which comprises upstream dividend payments and benefit to AES of including DPL in its tax filing. The ratings of AES reflect the diversity of subsidiary distributions, the stability of cash flows from contracted generation and distribution utilities, the high level of corporate debt, which is subordinate to its non-recourse project debt and the event risk associated with investments in developing markets. Fitch expects an increase in distributions from recently completed projects and projects to be completed in coming years that are currently either under development or in construction. The potential for further weakening of global economies is a credit concern. The downgrade of DPL and placement on Rating Watch Negative reflect the expected substantial weakening of the company's credit profile from the proposed issuance of approximately $1,250 million of acquisition debt resulting in a highly leveraged capital structure. Fitch estimates that pro forma for the debt issuance, DPL's projected 2012 Funds Flow From Operations/Debt ratio will fall by roughly half to 15-17% range. Should the acquisition be consummated on terms and conditions as outlined by AES, a further downgrade of DPL is likely although Fitch expects DPL to retain an investment grade rating. Pro-forma for the acquisition debt, Fitch expects DPL to maintain an EBITDA/Interest coverage measure above 4.0x in 2012. Similarly, the downgrade of DP&L reflects Fitch's expectation that the leveraged intermediate parent DPL will rely heavily on upstream dividend payments from its subsidiary in order to meet the debt servicing requirements of its additional $1,250 million debt burden. Given the utility's strong financial condition and conservative leverage profile, Fitch cannot rule out additional leverage at the utility. A further downgrade of DP&L is possible depending upon the terms of any ring-fencing provisions that may be required by the Public Utility Commission of Ohio. Fitch expects DP&L's IDR to remain in the investment grade category. Fitch expects the corporate and financing structure of DPL and DP&L to mirror that of AES' other domestic regulated utility and holding company, Indianapolis Power & Light and IPALCO. Given the terms of conditions of the proposed acquisition by AES, even if the acquisition is not completed, Fitch believes that DPL would likely entertain or engage in other transactions that would be inconsistent with its ratings prior to the announced transaction and management has demonstrated a higher threshold for financial leverage than Fitch had previously factored into its ratings. Fitch has affirmed these ratings with a Stable Outlook: AES -- Long-term IDR at 'B+'; -- Senior Secured debt at 'BB+/RR1'; -- Senior Unsecured debt at 'BB/RR1'; -- Short-term IDR at 'B'. AES Trust III -- Trust Preferred at 'B+/RR4' IPALCO Enterprises, Inc. -- Long-term IDR 'at BBB-'; -- Senior secured debt at 'BBB-'; Indianapolis Power & Light Co. -- Long-term IDR at 'BBB-'; -- Senior secured debt at 'BBB+'; -- Secured pollution control revenue bonds at 'BBB+'; -- Unsecured pollution control revenue bonds at 'BBB'; -- Preferred stock at 'BB+'. Fitch has downgraded and placed these ratings on Rating Watch Negative: DPL -- Long-term IDR to 'BBB+' from 'A-'; -- Senior unsecured notes to 'BBB+' from 'A-'. Dayton Power & Light Company -- Long-term IDR to 'BBB+' from 'A'; -- Senior secured debt to 'A' from 'AA-'; -- Preferred stock to 'BBB' from 'A-'; -- Short-term IDR and commercial paper to 'F2' from 'F1'. DPL Capital Trust II. -- Junior subordinated debt to 'BBB-' from 'BBB'. AES CORPORATION: Moody's Affirms 'B1' CFR, Outlook Now Positive --------------------------------------------------------------- Moody's Investors Service affirmed the ratings for The AES Corporation (AES: B1 CFR) and changed its rating outlook to positive from stable. This rating action was driven by AES' announcement that it has executed a definitive agreement to acquire DPL Inc. for cash consideration of approximately $3.5 billion. Separately, Moody's affirmed AES' speculative grade liquidity rating at SGL-2. Outlook Actions: Issuer: The AES Corporation -- Outlook, Changed To Positive from Stable Affirmations: Issuer: The AES Corporation -- Senior Secured Bank Credit Facilities, Affirmed at Ba1 -- Senior Unsecured Regular Bond/Debenture, Affirmed at B1 -- Trust Preferred Securities, Affirmed at B3 -- Corporate Family Rating, Affirmed at B1 Rating Rationale "The rating affirmation and change in outlook to positive is supported by the sound rationale for the proposed acquisition which, if consummated, would reduce AES' business risk profile and help to improve financial performance from current levels," said Moody's Vice President Scott Solomon. "The acquisition would also offset some of AES' business concentration in South America and materially increase the degree of cash flows generated by regulated utility subsidiaries" added Solomon. AES has considerable financial flexibility to acquire a company the size of DPL. This flexibility has resulted in large part by an investment completed in March 2010 from a wholly-owned subsidiary of China Investment Corporation that resulted in approximately $1.6 billion in new equity proceeds to AES. These proceeds were used in part to temporarily reduce parent debt while AES considered incremental growth investment opportunities and now will be "re-borrowed". Modestly higher AES parent debt levels (relative to the $5.5 billion outstanding at 2009 year-end) resulting from the anticipated financing of the proposed acquisition are offset by the scale, quality, and predictability of the distributions expected from DPL. Upward rating pressure could build if AES was able to demonstrate a sustained improvement in key parent level financial metrics whereby adjusted parent operating cash flow to parent level debt and parent level interest coverage achieved levels of approximately 10% and 2.3 times, respectively. Moody's calculated these metrics at approximately 9% and 2 times, respectively, for the twelve months ended December 31, 2010; however, they were driven in part by AES' decision to temporarily reduce parent level debt in 2010 with the new equity proceeds. Excluding the debt reduction that occurred in 2010 (and therefore using 2009 year-end debt balances), AES' metric of parent operating cash flow to parent level debt in 2010 would have been approximately 7.5%. Completion of the DPL acquisition, combined with near-term improvement in the financial performance of certain subsidiaries, including AES Gener and Masinloc, could trigger an upgrade for AES. The affirmation of AES' speculative grade liquidity rating at SGL- 2 reflects the company's considerable liquidity position, which at December 2010 included approximately $1.1 billion of cash at AES and qualified holding companies and $715 million of availability under a credit facility due 2015, and adequate headroom under its existing financial covenants. In addition to DPL shareholder approval, the acquisition will require the approval of the Public Utility Commission of Ohio and the Federal Energy Regulatory Commission (FERC). Approvals are expected to be completed by the first quarter of 2012. Moody's intends to revisit AES' rating and positive outlook prior to the closing of the acquisition. The principal methodology used in this rating was Global Unregulated Utilities and Power Companies published in August 2009. The AES Corporation is a global power company with generation and distribution assets in Europe, Asia, Latin America, Africa and the United States. ALONDRA & VIRGINIA: Case Summary & Largest Unsecured Creditor ------------------------------------------------------------- Debtor: Alondra & Virginia, LLC 11726 San Vicente Boulevard, Suite 290 Los Angeles, CA 90049 Bankruptcy Case No.: 11-27551 Chapter 11 Petition Date: April 22, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Alan M. Ahart Debtor's Counsel: Robert S. Altagen, Esq. LAW OFFICES OF ROBERT S. ALTAGEN 1111 Corporate Center Drive, #201 Monterey Park, CA 91754 Tel: (323) 268-9588 Fax: (323) 268-8742 E-mail: rsaink@earthlink.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Bryan Mashian, managing member. The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Haleh Lahijlani Services Provided $250,000 522 25th Street Santa Monica, CA 90402 AMBAC FINANCIAL: AAC Delays Commencement of Claim Payments ---------------------------------------------------------- Ambac Assurance Corporation disclosed that, based on conversations with the Special Deputy Commissioner for the Segregated Account of Ambac Assurance Corporation (Segregated Account), it no longer expects that the Segregated Account will begin paying policy claims in May 2011 as previously announced. The effectiveness of the Plan of Rehabilitation and the commencement of policy claim payments are subject to the terms of, and the satisfaction of the conditions set forth in, the Plan, and there can be no assurances as to when policy claim payments will resume. Ambac Assurance will continue to update the market as additional information regarding the timing of the resumption of claims payments from the Segregated Account becomes available. About Ambac Assurance Ambac Assurance is a guarantor of public finance and structured finance obligations, and is the principal operating subsidiary of Ambac Financial Group, Inc. (Ambac Financial). 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: Obtains Up to $43MM Funding to Avert Bankruptcy ----------------------------------------------------------------- James Covert, writing for The New York Post, reports that sources have said American Apparel has secured rescue financing that will inject as much as $43 million into the company in the coming months, helping it avert the threat of Chapter 11 bankruptcy. According to the NY Post, sources close to the situation said the retailer's board has approved a financing package from a group of Canadian investors that will immediately pump $15 million into American Apparel's operations in exchange for common stock priced at 90 cents a share -- a discount of more than 27% to the company's closing share price on April 20 of $1.24. The Canadian investors will also be given stock warrants, also priced at 90 cents a share, that could bring their total cash infusion to as much as $43 million over the next six months -- giving them nearly one-third of the company's total outstanding shares. The issuance of new stock and warrants will dilute current shareholders, but "the return on equity looks very attractive to everybody longer term," said Roy Sebag, a managing partner of Essentia Equity, one of several lenders in the rescue package, which was led by Canadian investor Michael Serruya, the NY Post reports. Sources told the Post American Apparel CEO Dov Charney is ponying up $700,000 of his own money as part of the deal. Mr. Charney, the sources added, will be given the opportunity to counteract dilution from the deal with stock options that will vest if American Apparel's stock continues an upward climb during the next four years. Specifically, Mr. Charney's options will vest if the company's stock hits $3.25 next year, $4.25 in 2013 and $5.25 in 2014. While the Canadian investors' warrants are exercisable during the next 180 days, their steep discount to the company's current stock price will likely drive them to cash in sooner rather than later, pumping additional liquidity into American Apparel in the coming weeks, people close to the situation told the Post. The Post also notes that, to placate lender Bank of America, which provides American Apparel's credit line, American Apparel will carry an additional $5 million in available cash on its balance sheet, on top of the current minimum requirement of $7.5 million. 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. Bankruptcy Warning American Apparel, 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. 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. 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 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. The Wall Street Journal notes American Apparel currently owes about $81 million to Lion Capital and an additional $58 million on a credit line with Bank of America Corp. According to the Journal, Skadden, Arps, Slate, Meagher & Flom has been advising the company on its recent restructuring efforts alongside investment bank Rothschild Inc. AMERICAN EXPRESS: Fitch Affirms 'B' Individual Rating ----------------------------------------------------- Fitch has affirmed American Express Company's (AXP) long-term Issuer Default Rating (IDR) at 'A+' and short-term IDR at 'F1'. The Rating Outlook is Stable. Approximately $72.9 billion of unsecured debt, deposits, and hybrid capital is affected by these actions. Fitch affirmed these ratings with a Stable Outlook: American Express Co. -- Long-term IDR at 'A+'; -- Short-term IDR at 'F1'; -- Short-term debt at 'F1'; -- Senior debt at 'A+'; -- Subordinated debt (hybrid capital instrument) at 'A-'; -- Individual at 'B'; -- Support at '5'and; -- Support Floor at 'NF'. The ratings affirmation reflects AXP's strong franchise, spend- centric business model, market position in the payments industry, solid asset quality, consistent profitability, diverse funding base, ample liquidity, continued capital generation, and strong risk-adjusted capitalization. Ratings are constrained by limited revenue diversity and heightened legislative scrutiny of consumer products. Net charge-offs on the lending portfolio improved to 5.6% for full year 2010, and further to 3.7% in 1Q11, from 8.4% for full year 2009, even with a decline in average loans outstanding, as short-term employment indicators continued to improve. The 1Q11 portfolio loss rate was approximately 319 basis points better than the average loss rate for the other top credit card issuers. AXP recorded negative provision expense of $120m in the first quarter, but reserve coverage remained solid at 5.1%. Fitch expects 2011 net charge-offs to be below 2010, with loss rates stabilizing at- or-near current levels. Operating earnings rose 90.5% in 2010, to $4.06 billion, as billed business growth of 15.1% and reduced credit provisioning offset lower revenues from implementation of the CARD Act and higher operating and reward expenses. Similar trends continued in 1Q11, with 17% year-over-year billed business growth and a 33% increase in net income. Improved operating efficiencies remain a priority as AXP continues to restructure certain operations with the goal of generating $500 million of annual cost saves by the end of 2012. Fitch expects consumer spending and improved credit will continue to support earnings growth in 2011, but an end to reserve releases and the absence of Visa and MasterCard litigation proceeds will be headwinds in 2012. Capital ratios remained strong in 2010, even with the consolidation of off-balance sheet assets in January, thanks to earnings growth and asset contraction. Tangible common equity as a percent of tangible assets was 8.8% at year-end, compared to 7.6% a year earlier. Capital generation continued in 1Q11, and the tier 1 common equity to risk-weighted assets ratio grew 70 basis points from year-end to 11.8%, which compares favorably to similarly-rated peers, given the company's high quality equity base. Fitch expects additional capital generation in 2011, although share repurchase activity is expected to increase relative to 2010 levels. AXP has maintained its dividend at $0.18 per share throughout the financial crisis, and the dividend payout ratio was 21.4% in 2010. AXP's liquidity profile remains a rating strength, with approximately $26 billion of readily available cash and marketable securities being sufficient to cover operating cash, short-term obligations, and $17 billion of long-term debt maturities over the next 12 months. Parent company maturities amount to $400 million in 2011 versus year-end cash and equivalents of approximately $5.3 billion. On Oct. 4, 2010, the Department of Justice (DOJ) filed a complaint against AXP alleging that the company's policies prohibiting merchants from steering a customer to use another network's card, another type of charge or credit card, or another method of payment violate antitrust laws. AXP has vowed to fight the lawsuit and the case is currently in discovery. Additionally, there is legislation pending with the Durbin Amendment to Dodd- Frank that would allow merchants to offer discounts to customers who use debit products rather than credit products. While Fitch believes allowing merchant steering could yield a decrease in AXP billed business volumes, it is unclear what percentage of merchants would actually offer discounts to consumers for alternative forms of payment, especially considering the loyalty consumers have to their card reward programs. If merchant discounting becomes widespread and there is a real shift in payment activity, Fitch would need to consider the impact on AXP's market share and merchant discount revenue, which accounted for 54.3% of net operating revenue in 2010. Still, Fitch believes resolution of the matter is likely to take several years. The Stable Outlook reflects the expectation that AXP will continue to generate strong billed business growth, with its spend-centric business model, and that expansion into consulting services, and online and digital payments will provide additional revenue opportunities in coming years. Earnings are expected to remain strong in 2011 and capital is likely to grow, even with an expected increase in share repurchase activity. Additionally, the company's liquidity profile is expected to remain a rating strength, with liquid assets covering short-term operating needs and near-term debt maturities. Deterioration in credit metrics, material reductions to earnings, absent non-recurring items, a weakening liquidity profile, significant declines in capitalization, regulatory/legislative changes (including the DOJ lawsuit) that negatively impact the company's business model and longer-term earnings potential, and/or significant shifts in consumer payment trends which reduce AXP's ability to compete, could result in negative rating action. Conversely, Fitch believes the company's positive rating momentum is relatively limited given the concentration in payments and consumer products. AXP, headquartered in New York, NY, was founded in 1850 as a joint stock association and was incorporated in 1965 as a New York corporation. The company has evolved over the years and is now a focused payments, network, and travel company with substantial charge and credit card businesses. Billed business volume was $713.3 billion in 2010 and managed receivables amounted to approximately $102.3 billion at year-end. The company is listed on the NYSE under the ticker symbol AXP. Fitch also affirmed these ratings with a Stable Outlook: American Express Credit Corp. -- Long-term IDR at 'A+'; -- Short-term IDR at 'F1'; -- Short-term debt at 'F1'and; -- Senior debt at 'A+'. American Express Centurion Bank -- Long-term IDR at 'A+'; -- Short-term IDR at 'F1'; -- Senior debt at 'A+'; -- Long-term deposits at 'AA-'. -- Short-term deposits at 'F1+'; -- Individual at 'B'; -- Support at '5'and; -- Support Floor at 'NF'. American Express Bank, FSB -- Long-term IDR at 'A+'; -- Short-term IDR at 'F1'; -- Senior debt at 'A+'; -- Long-term deposits at 'AA-'. -- Short-term deposits at 'F1+'; -- Long-term FDIC guaranteed debt at 'AAA'; -- Short-term FDIC guaranteed debt at 'F1+'; -- Individual at 'B'; -- Support at '5'and; -- Support Floor at 'NF'. American Express Travel Related Services Company, Inc. -- Long-term IDR at 'A+'; -- Short-term issuer at 'F1'and; -- Senior debt at 'A+'. American Express Canada Credit Corp. -- Long-term IDR at 'A+'; -- Short-term IDR at 'F1'and; -- Senior debt at 'A+'. AMERITOX LTD: S&P Assigns 'B' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services said it assigned its preliminary 'B' corporate credit rating to Baltimore, Md.-based Ameritox Ltd. The rating outlook is stable. "At the same time, we assigned the company's proposed $425 million term loan due 2018 and $25 million revolving credit agreement due 2016 a preliminary rating of 'B', the same as the corporate credit rating. We also assigned this debt a preliminary recovery rating of '4', indicating our expectation for average (30%-50%) recovery of principal in the event of a payment default," S&P stated. "Our low speculative-grade rating on Ameritox reflects the company's extremely narrow business focus in an immature niche of the clinical laboratory services industry and its highly leveraged, owner-friendly financial risk profile. The business risk profile is weak, in our view," said Standard & Poor's credit analyst Gail I. Hessol. Ameritox's rapid growth, evidenced by nearly a doubling of revenues over the past two years, is accompanied by meaningful challenges and vulnerabilities. Third-party payors clearly are interested in the company's ability to inform physicians about patient adherence to prescribed pain medication regimens. Yet, with less than 10% market penetration for this type of testing, which involves the analysis of collected urine samples to detect prescribed, illicit and other drugs, there is ample room for potential competition. If such a testing approach becomes more widely accepted, it could attract competition from companies with cost advantages and much greater financial and technical resources than Ameritox's. In addition, Ameritox has been using exclusively licensed algorithms that normalize drug levels for patient-specific factors and compare them to expected ranges. However, next month, it plans to shift to newer patented technology. Such a significant change entails some risk. AMBASSADORS INT'L: Court Okays Quick Assets Sale Timeline --------------------------------------------------------- Ambassadors International, Inc. disclosed that at a hearing on April 19, 2011, the U.S. Bankruptcy Court for the District of Delaware approved the timeline for the proposed sale by Ambassadors of substantially all of its assets, including its principal operating unit, Windstar Cruises. The sale is expected to close by May 23, 2011. Hans Birkholz, CEO of Ambassadors and Windstar, said, "We are thrilled that the court approved our sale timeline, which allows the sale to move quickly as planned. With the sale timeline firmly in place, we look forward to positioning Windstar for long- term profitability and success under new ownership. This is great news for Windstar, and our guests and travel partners can rest assured that Windstar will be providing luxury travel experiences for many years to come." As previously announced on April 1, 2011, Ambassadors has entered into an agreement with Whippoorwill Associates, Inc., as agent for its discretionary funds and accounts ("Whippoorwill") providing for the sale of its assets. Whippoorwill intends to maintain Windstar's business and operations and invest in Windstar's growth following the completion of the sale. The court has already approved requests by Ambassadors to ensure that Windstar continues its normal operations and is sailing as scheduled as it moves forward through the sales process including: maintaining all of Windstar's programs and policies and honoring all Windstar fares and reservations, including charter contracts; providing commissions and payments to travel partners as usual; and paying employees and crewmembers in the usual manner and continuing their benefits without disruption. Ambassadors continues to expect that Windstar vendors and suppliers for goods and services received both before and during the reorganization process will be paid in connection with the sale. Under the terms of the agreement, the sale to Whippoorwill is subject to court approval and other specified closing conditions. In compliance with Section 363 of the U.S. Bankruptcy Code, qualifying bidders will also have an opportunity to submit higher and better offers for evaluation through a court-supervised competitive bidding process. A hearing to consider the sale has been scheduled for May 18, 2011. May 13 Deadline for Competing Bids Pete Brush at Bankruptcy Law360 reports that a Delaware bankruptcy judge on Tuesday approved Whippoorwill Associates Inc.'s $40 million stalking horse bid to take control of assets owned by Ambassadors International Inc., in spite of unsecured creditors' objections. Bankruptcy Judge Kevin Gross set a May 13 deadline for competing bids, which must be accompanied by a $1 million escrow payment to demonstrate an ability to make good, according to Law360. Dow Jones' DBR Small Cap reports that Ambassadors International won court permission to place its luxury Windstar Cruises line on the auction block next month. The Debtors had proposed an April 29 deadline for bids and an auction on May 2. Agreement to Sell to Whippoorwill On April 1, 2011, Ambassadors announced an agreement to sell substantially all of its assets, including Windstar, to Whippoorwill Associates, as agent for its discretionary funds and accounts. Whippoorwill intends to maintain Windstar's business and operations and invest in Windstar's growth following completion of the anticipated sale. In addition, the financing facility that received interim Court approval is being provided to Windstar and Ambassadors by Whippoorwill. As reported in the April 6, 2011 edition of the Troubled Company Reporter, the Debtors are asking the Bankruptcy Court to approve bid protections, auction process and sale procedures where a newly created designee of Whippoorwill will be the stalking horse bidder at the auction. Whippoorwill, through certain of its discretionary funds and accounts, is currently the sole lender under the prepetition working capital facility, the beneficial owner of approximately 88% of the senior secured notes and a significant shareholder of Ambassadors International, Inc. Thus, according to the Debtors, Whippoorwill represents the most logical purchaser for the assets. The Stalking Horse Bidder's bid sets a "floor" on bids for the assets by providing for a consideration of $40 million payable in the form of (i) the payment in full in cash and assumption by the buyer of the Debtors' obligations under a prepetition working capital facility and the DIP Facility; (ii) a credit bid and release of the Debtors' obligations under the 10% senior secured notes due 2010 in an amount of not less than $19 million; and (iii) assumption of other liabilities. About Ambassadors International Headquarters in Seattle, Washington, Ambassadors International, Inc. (NASDAQ: AMIE) -- http://www.ambassadors.com/-- operates Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought- after destinations. Carrying 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. Ambassadors International Inc. and 11 affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11002) on April 1, 2011. Kristopher M. Hansen, Esq.; Sayan Bhattacharyya, Esq.; Marianne Mortimer, Esq.; and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, serve as the Debtors' bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Michael Joseph Merchant, Esq., at Richards, Layton & Finger, serve as the Debtors' co-counsel. Imperial Capital, LLC, is the Debtors' financial advisor. Phase Eleven Consultants, LLC, is the Debtors' claims and notice agent. The Debtors disclosed $86.4 million in assets and $87.3 million in debts as of Dec. 31, 2010. AMBASSADORS INT'L: Sec. 341 Meeting of Creditors Set for May 10 --------------------------------------------------------------- Roberta A. DeAngelis, the United States Trustee for Region 3, will convene a meeting of creditors of Ambassadors International Inc. and its debtor affiliates May 10, 2011, at 12:00 p.m., at J. Caleb Boggs Federal Building, 2nd Floor, Room 5209, 844 King Street, Suite 2207, Lockbox 35, in Wilmington, Delaware 19801. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in the Debtors' bankruptcy cases. Attendance by the Debtors' creditors at the meeting is welcome, but not required. The Section 341(a) meeting offers the creditors a one-time opportunity to examine the Debtor's representative under oath about the Debtor's financial affairs and operations that would be of interest to the general body of creditors. About Ambassadors International Headquarters in Seattle, Washington, Ambassadors International, Inc. (NASDAQ: AMIE) -- http://www.ambassadors.com/-- operates Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought- after destinations. Carrying 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. Ambassadors International Inc. and 11 affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11002) on April 1, 2011. Kristopher M. Hansen, Esq.; Sayan Bhattacharyya, Esq.; Marianne Mortimer, Esq.; and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, serve as the Debtors' bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Michael Joseph Merchant, Esq., at Richards, Layton & Finger, serve as the Debtors' co-counsel. Imperial Capital, LLC, is the Debtors' financial advisor. Phase Eleven Consultants, LLC, is the Debtors' claims and notice agent. The Debtors disclosed $86.4 million in assets and $87.3 million in debts as of Dec. 31, 2010. AMBASSADORS INT'L: Taps Stroock & Stroock as Bankruptcy Counsel --------------------------------------------------------------- Ambassadors International Inc. and its debtor affiliates ask for authority from the U.S. Bankruptcy Court for the District of Delaware to employ Stroock & Stroock & Lavan LLP as their attorneys in connection with their Chapter 11 cases, nunc pro tunc to the Petition Date. As counsel, Stroock will, among other things, advise the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation of their business and properties, advise and consult on the conduct of the cases, and attend meetings and negotiate with representatives of creditors and other parties-in-interest. Mark Detillion, Ambassadors International's chief financial officer, says that the Debtors also intend to employ Richards, Layton & Finger, P.A., to act as co-counsel with Stroock. He asserts that the Debtors are mindful of the need to avoid duplication of services and appropriate procedures will be implemented to ensure that there is minimal, if any, duplication. During the 90-day period prior to the Petition Date, Stroock received $1,123,738 in fees and expenses from the Debtors. No additional payments have been made for services rendered in contemplation or in connection with the filing of the Chapter 11 Cases during the one-year period prior to the Petition Date. On March 7, 2011, the Debtors paid $500,000 to Stroock as a retainer. Stroock continued to bill the Debtors and replenish the retainer up to the Petition Date. As of the Petition Date, there were no amounts remaining under the retainer. To the extent the Debtors owed any amounts to Stroock on account of fees and expenses incurred but not paid as the Petition Date, Stroock has waived those fees and expenses, Mr. Detillion says. Stroock will be paid for its services in accordance with its ordinary and customary rates in effect on the date the services are rendered, and will be reimbursed for its expenses incurred in connection with the cases. The current hourly rates for Stroock's bankruptcy and other professionals and paraprofessionals, who are expected to render services to the Debtors, range from $130 to $995. Kristopher M. Hansen, Esq., a partner at Stroock and co-chair of its Financial Restructuring Department, assures the Court that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Hearing to consider the application is on April 26, 2011. Objections were due on April 19. About Ambassadors International Headquarters in Seattle, Washington, Ambassadors International, Inc. (NASDAQ: AMIE) -- http://www.ambassadors.com/-- operates Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought- after destinations. Carrying 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. Ambassadors International Inc. and 11 affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11002) on April 1, 2011. Imperial Capital, LLC, is the Debtors' financial advisor. Phase Eleven Consultants, LLC, is the Debtors' claims and notice agent. The Debtors disclosed $86.4 million in assets and $87.3 million in debts as of Dec. 31, 2010. AMBASSADORS INT'L: Pachulski/Kelley Out; Bifferato/Lowenstein In ---------------------------------------------------------------- Pachulski Stang Ziehl & Jones LLP and Kelley Drye & Warren LLP withdrew their appearances as counsel for the Official Committee of Unsecured Creditors in the bankruptcy cases of Ambassadors International Inc. and its debtor affiliates. Both firms reserve their rights to seek compensation and reimbursement related to the services performed to date in the cases. Garvan F. McDaniel, Esq., at Bifferato Gentilotti LLC, and Kenneth A. Rosen, Esq., and John K. Sherwood, Esq., both at Lowenstein Sandler PC, have entered their appearances as co-counsel for the Creditors Committee. They ask that copies of all notices and pleadings given or filed in the cases be given and served upon: Garvan F. McDaniel (No. 4167) BIFFERATO GENTILOTTI LLC 800 North King Street, Plaza Level Wilmington, DE 19801 Tel: (302) 429-1900 - and - Kenneth A. Rosen John K. Sherwood LOWENSTEIN SANDLER PC 65 Livingston Avenue Roseland, NJ 07068 Tel: (973) 597-2500 About Ambassadors International Headquarters in Seattle, Washington, Ambassadors International, Inc. (NASDAQ: AMIE) -- http://www.ambassadors.com/-- operates Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought- after destinations. Carrying 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. Ambassadors International Inc. and 11 affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11002) on April 1, 2011. Kristopher M. Hansen, Esq.; Sayan Bhattacharyya, Esq.; Marianne Mortimer, Esq.; and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, serve as the Debtors' bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Michael Joseph Merchant, Esq., at Richards, Layton & Finger, serve as the Debtors' co-counsel. Imperial Capital, LLC, is the Debtors' financial advisor. Phase Eleven Consultants, LLC, is the Debtors' claims and notice agent. The Debtors disclosed $86.4 million in assets and $87.3 million in debts as of Dec. 31, 2010. AMTRUST FINANCIAL: Says Proposed Harbor-Led Sale Process Fair ------------------------------------------------------------- BankruptcyData.com reports that AmTrust Financial filed with the U.S. Bankruptcy Court a reply to the previously-filed objection of U.S. Bank National Association, in its capacity as indenture trustee, and RBS Citizens, National Association to the Debtors' motion for an order (A) approving proposed sale procedures, (B) authorizing AmFin Real Estate Investments to sell certain assets to Harbor Group International free and clear of liens, claims and encumbrances, (C) approving the employment of Hilco Real Estate, pursuant to 11 U.S.C. Section 327, (D) waiving the Bankruptcy Rule 6004(h) 14-Day Stay and (E) waiving the local Bankruptcy Rule 9013-2 memorandum requirement. Among other things, the reply maintains, "Debtors are not prepared to waive the requirement that the Lenders execute the same purchase agreement required of all other bidders under the bid procedures. The Debtors have gone to great lengths to structure sale procedures which treat all prospective bidders fairly. The Debtors believe that creating an ad hoc exception to the requirement of a signed purchase agreement for the benefit of the Lenders might chill bidding, and is not in the best interests of the Debtors, the estate, other bidders, or, ultimately, the Lenders." As reported in the April 4, 2011 edition of the Troubled Company Reporter, AmTrust Financial Corp. filed with the bankruptcy court a motion for approval to sell a parking garage in Cleveland, Ohio, to Harbor Group International for $7.5 million. The Debtors wish to employ Hilco Real Estate as broker, in connections with the sale, for a fee of $75,000 plus reimbursement of expenses, together with a 10% premium on that portion of any purchase price received by the Debtors exceeding $7.5 million. About AmTrust Financial AmTrust Financial Corp (PINK: AFNL) was the owner of the AmTrust Bank. AmTrust was the seventh-largest holder of deposits in South Florida, with $4.7 billion in deposits and 21 branches. In November 2008, the Office of Thrift Supervision issued a cease and desist order requiring AmTrust to improve its capital ratios. AmTrust Financial, together with affiliates that include AmTrust Management Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 09-21323) on Nov. 30, 2009. G. Christopher Meyer, Esq., Christine M. Piepont, Esq., and Sherri L. Dahl, Esq., at Squire Sanders & Dempsey (US) LLP, in Cleveland, Ohio; and Stephen D. Lerner, Esq., at Squire Sanders & Dempsey (US) LLP, in Cincinnati, Ohio, serve as counsel to the Debtors in the Chapter 11 cases. Kurtzman Carson Consultants serves as claims and notice agent. Attorneys at Hahn Loeser & Parks LLP serve as counsel to the Official Committee of Unsecured Creditors. AmTrust Management estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. AmTrust Bank was not part of the Chapter 11 filings. On Dec. 4, 2009, AmTrust Bank was closed by regulators and the Federal Deposit Insurance Corporation was named receiver. New York Community Bank, in Westbury, New York, assumed all of the deposits of AmTrust Bank pursuant to a deal with the FDIC. ANGIOTECH PHARMA: Outside Date Under Support Deal Extended May 12 ----------------------------------------------------------------- Angiotech Pharmaceuticals, Inc. has reached an agreement with the holders of a majority of the principal amount outstanding of the Company's 7.75% Senior Subordinated Notes to extend, to May 12, 2011, the date by which implementation of the previously announced recapitalization transaction must take place pursuant to the Recapitalization Support Agreement, dated as of Oct. 29, 2010, as amended. The Company has also entered into an agreement with holders of a majority of the principal amount outstanding of its Senior Floating Rate Notes due 2013 to extend, to May 12, 2011, the date by which the Company must close its offer to exchange new senior secured floating rate notes due 2013 for all of its Exiting Floating Rate Notes under the previously announced Floating Rate Note Support Agreement, dated as of October 29, 2010, as amended. The Extension Agreements will be filed by the Company on both SEDAR and EDGAR, and the above descriptions of the Extension Agreements are qualified in their entirety by reference to the complete text of the applicable Extension Agreement. The Company also announced that it has extended the expiration time of the Exchange Offer to 11:59 p.m. New York City time on May 9, 2011. The Exchange Offer was last scheduled to expire at 11:59 p.m. New York City time on April 22, 2011. The extension of the Exchange Offer has been made to allow holders of outstanding Existing Floating Rate Notes who have not yet tendered their Existing Floating Rate Notes for exchange to do so.As of the close of business on April 21, 2011, approximately $322,075,000 in aggregate principal amount of the Existing Floating Rate Notes had been validly tendered for exchange and not withdrawn. Other than the extension described in this announcement, all of the terms of the Exchange Offer remain unchanged. About Angiotech Pharmaceuticals Based in Vancouver, British Columbia, in Canada, Angiotech Pharmaceuticals, Inc. (TSX: ANP) -- http://www.angiotech.com/-- is a global specialty pharmaceutical and medical device company. Angiotech discovers, develops and markets innovative treatment solutions for diseases or complications associated with medical device implants, surgical interventions and acute injury. Alvarez & Marsal Canada Inc., as monitor and foreign representative, filed Chapter 15 petitions for Angiotech Pharmaceuticals Inc. and its units (Bankr. D. Del. Lead Case No. 11-10269) on Jan. 30, 2011, to seek recognition of their insolvency proceedings under the Companies' Creditors Arrangement Act in Canada as a "foreign main proceeding" under 11 U.S.C. Sec. 1517. The Company's balance sheet at Sept. 30, 2010, showed US$326.80 million in total assets, US$60.30 million in current liabilities, and US$622.16 million in non-current liabilities and a stockholders' deficit of US$355.67 million. The foreign representative has tapped Mary Caloway, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, and Ken Coleman, Esq., at Allen & Overly LLP, in New York, as counsel in the Chapter 15 case. John Grieve, Esq., at Fasken Martineau DuMoulin LLP, in Vancouver, B.C., represents A&M in the CCAA case. As reported by the Troubled Company Reporter on Feb. 21, 2011, the Supreme Court of British Columbia accepted for filing a plan of compromise or arrangement, with terms and conditions materially consistent with Angiotech's recapitalization transaction. The Canadian Court granted an order authorizing the holding of a meeting of the affected creditors of the Angiotech Entities on April 4. The purpose of the meeting is for the Affected Creditors to consider and vote on the Plan. If the Plan is approved by the required majority of Affected Creditors, the Angiotech Entities intend to bring a further motion on or about April 6 seeking a sanctioning of the Plan by the Court. The Canadian Court also granted an order establishing a procedure for the adjudication, resolution and determination of claims of Affected Creditors for voting and distribution purposes under the Plan and fixing a claims bar date of March 17, 2011. ARK DEVELOPMENT/OCEANVIEW: Florida Properties Owner in Ch. 11 ------------------------------------------------------------- Carla Main at Bloomberg News reports that Ark Development/ Oceanview LLC, owner of properties located at 1431, 1427 and 1423 North Atlantic Boulevard, Fort Lauderdale, Florida, is in Chapter 11 bankruptcy. A voluntary bankruptcy filing is "in the best interests of the company, its creditors, shareholders, and other interested parties," the debtor concluded in a corporate resolution. Secured creditors include BB&T Mortgage, Broward County Revenue Collection, Midland Loan Services, Inc. and Northern Trust, N.A. Unsecured nonpriorty claims total $33,431. Ark Development/Oceanview, LLC, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 11-20382) in Forth Lauderdale, Florida, on April 18, 2011. In its schedules, the Debtor disclosed $12,000,000 in assets and $9,772,531 in liabilities. Philip J. Landau, Esq., at Shraiberg, Ferrara, & Landau P.A., in Boca Raton, Florida, represents the Debtor. A Chapter 11 case summary and a list of 20 largest unsecured creditors for Ark Development/Oceanview are in the April 21, 2011 edition of the Troubled Company Reporter. ASPIRE INTERNATIONAL: Incurs $2.51 Million Net Loss in 2010 ----------------------------------------------------------- Aspire International, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $2.51 million on $0 of sales for the year ended Dec. 31, 2010, compared with a net loss of $1.69 million on $71,169 of sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $838,020 in total assets, $9.49 million in total liabilities, all current, and a $8.65 million total stockholders' deficit. DNTW Chartered Accountants, LLP, in Markham, Canada, noted that the Company's significant cumulative operating losses 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/28pDfQ About Aspire International Markham, Ontario-based Aspire International, Inc., has acquired MYGOS.NET, an online business-to-consumer shopping mall, headquartered in Shenzhen, in the Guangdong province of China. Mygos operates as a platform to allow users to start their own businesses online and currently hosts over 80,000 active stores. ASSET ACCEPTANCE: Moody's Affirms 'B1' Ratings; Outlook Negative ---------------------------------------------------------------- Moody's Investors Service affirmed Asset Acceptance Capital Corp.'s ratings and maintained the firm's rating outlook at negative. The affirmation of the ratings is in conjunction with AACC's pending refinancing of its core senior secured revolving credit and term loan facilities. The ratings reflect the company's position as a significant player in the US debt collection industry, as well as its solid balance sheet, leverage, debt service coverage metrics and its satisfactory liquidity profile. The negative outlook reflects the fact that, despite recent enhancements, the company's collections productivity continues to lag its primary competitors as well as its own targets. Moreover, the company has experienced substantial turnover in its senior management, with approximately two-thirds of the senior leadership team having changed since the appointment of Rion Needs as CEO in January 2009. Though in Moody's view the overall quality of management has been upgraded, the significant turnover creates some uncertainty regarding the successful execution of multiple reengineering initiatives currently underway in collections, strategy and analytics, and information technology. In order to change the outlook to stable from negative, Moody's would need to see concrete progress in improving collections productivity as evidenced by key metrics such as operating expenses as percent of collections, as well as improved accuracy and performance in portfolio forecasting and pricing as evidenced by a sustained moderation in frequency and magnitude of impairment charges. AACC's current ratings are: -- Corporate Family Rating B1 -- Senior Secured Bank Credit Facility B1 Headquartered in Warren, Michigan, AACC purchases charged-off consumer debt from credit issuers, and then uses proprietary methods to collect on these receivables. As of December 31, 2010, AACC reported total assets of $364 million. ASSET ACCEPTANCE: S&P Affirms 'BB-' Counterparty Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB-' long-term counterparty credit rating on Asset Acceptance Capital Corp. (AACC). The outlook is stable. "At the same time, we assigned a 'BB+' issue-level rating and a recovery rating of '1' to AACC's planned term loan B and revolving credit facility," S&P noted. AACC plans to refinance its $233 million in existing debt with a new term loan B and revolving credit facility. S&P expects the offerings to increase the company's leverage modestly while pushing out its debt maturities. "The '1' recovery ratings on both the term loan B and revolving credit facility reflect our expectation that lenders would realize a very high (90%-100%) recovery of principal in the event of a payment default," S&P stated. "The stable outlook is based on our belief that AACC's earnings will improve in 2011 following net losses in 2009 and 2010. It also reflects our view that a regulatory complaint against the company from the Federal Trade Commission (FTC) will not materially affect its business model or financial strength. AACC, which received a proposed consent decree from the FTC in 2010 over alleged violations of collection rules, was in discussions with the regulatory agency as of early April 2011 to resolve the matter. Although there is significant uncertainty surrounding the matter, we do not expect the resolution to impair AACC's financial strength materially or put it at a major disadvantage to other debt collectors. The rating could come under pressure if either of these conditions is not met. The company's concentration in a highly competitive industry with substantial regulatory risk limits upward movement of the rating from its current level," S&P added. AXION INTERNATIONAL: Delays Filing of Annual Report --------------------------------------------------- Axion International Holdings, Inc., informed the U.S. Securities and Exchange Commission that its Form 10-K for the ended Dec. 31, 2010, could not be filed within the prescribed time because the Company's previous audit firm was acquired by a new independent registered public accounting firm and accordingly additional time was required by Company's management and new auditors to prepare certain information to be included in that report. About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) -- http://wwwaxionintl.com/-- is a structural solution provider of cost-effective alternative infrastructure and building products. The Company's "green" proprietary technologies allow for the development and manufacture of innovative structural products made from virtually 100% recycled consumer and industrial plastics. The Company's balance sheet at Sept. 30, 2010, showed $1.7 million in total assets, $2.1 million in total liabilities, and a $439,000 stockholders' deficit. Jewett, Schwartz, Wolfe and Associates, in Hollywood, Florida, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the fiscal years ended Sept. 30, 2009 and 2010. The independent auditors said the Company's need to seek new sources or methods of financing or revenue to pursue its business strategy, raise substantial doubt about the Company's ability to continue as a going concern. BANKATLANTIC BANCORP: Gets OTS OK for Sale of 19 Tampa Branches --------------------------------------------------------------- BankAtlantic Bancorp, announced the Office of Thrift Supervision, their primary regulator, has approved BankAtlantic's sale of its Tampa - St. Petersburg franchise to PNC Bank, N.A., part of the PNC Financial Services Group Inc. BankAtlantic has agreed to sell its 19 branches and 2 related facilities in the Tampa - St. Petersburg area and the associated deposits to PNC. PNC previously received regulatory approval for its purchase of the Tampa - St. Petersburg franchise. The transaction, which remains subject to the terms and conditions of the acquisition agreement and regulatory requirements, is anticipated to close during the first week of June 2011. "We are pleased to announce that both BankAtlantic and PNC have received the required regulatory approvals in support of this transaction," commented Alan B. Levan, BankAtlantic Bancorp's Chairman and Chief Executive Officer. "The sale of the Tampa locations will allow BankAtlantic to focus its efforts on its primary footprint, its 79 branches in Southeast Florida. Once completed, we anticipate recording a net gain on this transaction which, combined with the reduction in assets from the sale and based on current deposit levels and financial statements, is estimated to add over 130 basis points to our regulatory capital ratios." The 19 affected branches will operate normally through completion of the transaction. Customer ATM cards, checks and accounts will function as usual. Customers of these branches need not take any action at this time. They will be contacted by PNC prior to the branch transfer. About BankAtlantic Bancorp BankAtlantic Bancorp (NYSE: BBX) -- http://www.BankAtlanticBancorp.com/-- is a bank holding company and the parent company of BankAtlantic. BankAtlantic -- "Florida's Most Convenient Bank" with a Web presence at http://www.BankAtlantic.com/-- has nearly $6.0 billion in assets and more than 100 stores, and is one of the largest financial institutions headquartered junior in Florida. BankAtlantic has been serving communities throughout Florida since 1952 and currently operates more than 250 conveniently located ATMs. The Company's balance sheet at Dec. 31, 2010 showed $4.50 billion in total assets, $4.49 billion in total liabilities, and $14.74 million in total equity. The Company reported a net loss of $143.25 million on $176.31 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $185.82 million on $223.59 million of total interest income during the prior year. * * * In September 2010, Fitch Ratings downgraded the long-term Issuer Default Ratings of BankAtlantic Bancorp. to 'CC' from 'B-' and its primary operating subsidiary, BankAtlantic FSB to 'CC' from 'B+. The 'CC' long-term IDR indicates a high default probability. Fitch said it believes that BBX will likely require external capital support given the high level of credit costs that continue to impact BBX's financial performance and erode its existing weak level of tangible common equity, which stood at just 1.39% at June 30, 2010. Although BFSB's regulatory capital levels remain 'well-capitalized', Fitch believes the company needs additional capital in order to provide absorption for future losses, particularly since earnings generation on a pre-provision net revenue basis is weak. As reported by the TCR on March 1, 2011, Fitch has affirmed its current Issuer Default Ratings for BankAtlantic Bancorp and its main subsidiary, BankAtlantic FSB at 'CC'/'C' following the announcement regarding the regulatory order with the Office of Thrift Supervision. BankAtlantic has announced that it has entered into a Cease and Desist Order with the OTS at both the bank and holding company level. The regulatory order includes increased regulatory capital requirements, limits to the size of the balance sheet, no new commercial real estate lending and improvements to its credit risk and administration areas. Further, the holding company must also submit a capital plan to maintain and enhance its capital position. BANKUNITED FINANCIAL: Seeks to Hire Structured Capital as Advisor ----------------------------------------------------------------- BankUnited Financial Corporation and its debtor affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Florida to employ Structured Capital Solutions as investment advisor. As reported by the Troubled Company Reported on Nov. 25, 2010, BUFC filed a Chapter 11 plan on Nov. 22, 2010, that contemplates an equity investment transaction by an investor. While the Debtors continue to negotiate with potential investors, SCS has made a proposal to bring a potential Transaction counter-party to the Debtors and assist in structuring and advising on the Transaction, in exchange for payment of (a) a contingent fee equal to 15% of all amounts distributed to all holders of allowed prepetition claims against BUFC in respect of securities issued to those BUFC Creditors in a Transaction as and when amounts are distributed on any of those securities, plus (b) an advance payment of $5,000 per calendar quarter, for four calendar quarters through Dec. 31, 2011, for reimbursement of documented reasonable out-of-pocket travel and hotel expenses incurred for travel from New York City in connection with the Transaction. As investment advisor, SCS will: (a) introduce BUFC to potential counterparties for a potential equity investment transaction; (b) work with BUFC and its advisors in developing a proposed structure for any potential Transaction with an SCS Counterparty; and (c) work with BUFC in connection with preparation of documentation related to a potential Transaction. SCS's fee is entirely contingent and would be payable over the life of an investment transaction, only in the event the Debtors close a transaction with an SCS Counterparty under a confirmation Chapter 11 plan on or before Dec. 31, 2011. Mark McTigue, a managing director of Structured Capital Solutions, LLC, assures the Court that his firm is a "disinterested party" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors' estates. About BankUnited Financial BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) -- http://www.bankunited.com/-- was the holding company for BankUnited FSB, the largest banking institution headquartered in Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed by regulators and the Federal Deposit Insurance Corporation facilitated a sale of the bank to a management team headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank, and a group of investors led by W.L. Ross & Co. BankUnited, FSB, had assets of $12.8 billion and deposits of $8.6 billion as of May 2, 2009. The Company and its affiliates filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-19940) on May 22, 2009. Stephen P. Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen LLP; Mark D. Bloom, Esq., and Scott M. Grossman, Esq., at Greenberg Traurig, LLP; and Michael C. Sontag, at Camner, Lipsitz, P.A., represent the Debtors as counsel. Corali Lopez-Castro, Esq., David Samole, Esq., at Kozyak Tropin & Throckmorton, P.A.; and Todd C. Meyers, Esq., at Kilpatrick Stockton LLP, serve as counsel to the official committee of unsecured creditors. In its bankruptcy petition, BankUnited Financial Corp. disclosed $37,729,520 in assets against $559,740,185 in debts. Aside from those assets, BankUnited said that a "valuable" asset is its $3.6 billion net operating loss carryforward. Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York were listed among the company's largest unsecured creditors in their roles as trustees for security issues. BankUnited estimated the Bank of New York claim tied to convertible securities at $184 million. U.S. Bank and Wilmington Trust are owed $120 million and $118.171 million on account of senior notes. BBB ACQUISITION: Asks for Plan Exclusivity Until June 20 -------------------------------------------------------- BBB Acquisition, LLC, asks Judge Peter J. McNiff of the U.S. Bankruptcy Court for the District of Wyoming to extend until June 20, 2011, its exclusive period to solicit acceptances of its Chapter 11 plan of reorganization. In court papers, Brent R. Cohen, Esq., at Rothgerber Johnson & Lyons LLP, in Denver, Colorado, said the Debtor needs further extension of its exclusive plan solicitation period to allow it to submit evidence at the April 16 Disclosure Statement Hearing demonstrating that its Plan provides adequate information under Section 1125 of the Bankruptcy Code. Further extension will also allow the Debtor sufficient time to move its Plan to a confirmation hearing, Mr. Cohen said. Mr. Cohen asserted that, although the Court has previously expressed some concern regarding any subsequent requests to extend exclusivity, a subsequent extension of the exclusivity period for the Debtor is not only appropriate under the circumstances but is well within the statutory limitations provided by the Bankruptcy Code. As reported by the Troubled Company Reporter on Jan. 20, 2011, the Bankruptcy Court denied, without prejudice, the disclosure statement explaining BBB Acquisition's Plan, citing areas that are insufficient. The Debtor on March 1 amended the disclosure statement explaining its Plan of Reorganization. The Plan was filed Nov. 22, 2010. An evidentiary hearing is scheduled for April 26, 2011, at 9:30 a.m. to consider approval of the Amended Disclosure Statement. Under the original Plan, Reorganized BBB will be responsible for administering the Plan and making distributions to the remaining creditors. Reorganized BBB will also continue the operation of its business in the same fashion as it did prior to the Petition Date. The members making up to the Class 7 equity interests in the Debtor will retain their ownership interest. Creditors holdings allowed unsecured claims -- under Class 6 -- will receive their pro rata share of distributions on a quarterly basis from the creditor fund after payment of allowed administrative claims, allowed general priority claims, allowed convenience class claims and the allowed Fifth Third Claim until paid in full, plus simple interest at the rate of 4% per annum, calculated from the Petition Date. Payment of allowed Class 6 Claims will be made from funds generated from the sale of real estate within the Bar-B-Bar Ranch in Teton County, Wyoming. Holders of unsecured claims classified as convenience claims -- under Class 5 -- will be paid in full on the distribution date. Holders of Class 5 claims will receive cash in an amount equal to their allowed claim, without interest, not exceeding $2,500 on the distribution date. A copy of the Disclosure Statement dated Nov. 22 is available for free at http://bankrupt.com/misc/BBBAcquisition_DS.pdf About BBB Acquisition BBB Acquisition, LLC, in Cincinnati, Ohio, filed for Chapter 11 bankruptcy (Bankr. D. Wyo. Case No. 10-21002) on Aug. 24, 2010, represented by Brent R. Cohen, Esq. -- bcohen@rothgerber.com -- and Chad S. Caby, Esq. -- ccaby@rothgerber.com -- at Rothgerber Johnson & Lyons LLP in Denver, Colorado. The Debtor disclosed $57,239,218 in assets and $35,613,501 in liabilities. BLAST ENERGY: GBH CPAs Raises Going Concern Doubt ------------------------------------------------- Blast Energy Services, Inc., filed on April 12, 2011, its annual report on Form 20-F for the fiscal year ended Dec. 31, 2010. GBH CPAs, PC, in Houston, Tex., expressed substantial doubt about Blast Energy's ability to continue as a going concern. The independent auditors noted that the Company incurred a loss from continuing operations for the year ended Dec. 31, 2010, and has an accumulated deficit at Dec. 31, 2010. The Company reported a net loss of $1.5 million on $109,443 of revenue for 2010, compared with a net loss of $1.7 million on $20,000 of revenue for 2009. At Dec. 31, 2010, the Company's balance sheet showed $3.6 million in total assets, $2.1 million in total liabilities, and stockholders' equity of $1.5 million. A complete text of the Form 10-K is available for free at: http://is.gd/toMFpk About Blast Energy Houston, Tex.-based Blast Energy Services, Inc., is seeking to become an independent oil and gas producer with additional revenue potential from its applied fluid jetting technology. The Company plans to grow operations initially through the acquisition of oil producing properties and then eventually, to acquire oil and gas properties where its applied fluid jetting process could be used to increase the field production volumes and value of the properties in which it owns an interest. On Sept. 23, 2010, Blast closed on a sales agreement with Sun Resources Texas, Inc., a privately-held company based in Longview, Texas, to acquire Sun's oil and gas interests in the North Sugar Valley Field located in Matagorda County, Texas for a total purchase price of $1,181,000. Under the terms of the agreement, the purchase price was paid in cash, common stock and through the issuance of a promissory note (which has since been repaid) for Sun's approximately 65% working interest (net revenue interest of approximately 50%) in three wells. The acquired wells are currently producing a total of approximately 43 gross barrels of oil per day from the Gravier Sand formation, which the Company's year end reserve report estimates contains approximately 75,000 barrels of recoverable reserves net to the interest acquired by Blast. In October 2010, Blast entered into a letter of intent with Solimar Energy LLC, which provided Blast the right to participate in a field extension drilling project to exploit an undeveloped acreage position in the Guijarral Hills Field located in the San Joaquin basin of central California. Under the terms of the letter of intent with Solimar, Blast had an option to participate in the Guijarral Hills project on a promoted basis of 66-2/3 percent (%) of the costs to drill and complete the initial planned exploratory well. After the drilling of the initial well, Blast will earn a 50% working interest, with net revenue interest of 38% in the entire project's acreage position and will be required to contribute on an equal heads up basis (i.e., 50% of all costs) on any additional wells that may be drilled in the project. Pursuant to the letter of intent, Blast paid Solimar a non- refundable fee of $100,000 in return for the exclusive right for a period of 90 days to execute a definitive agreement. BOWE BELL + HOWELL: Taps Garden City as Notice & Claims Agent ------------------------------------------------------------- Bowe Systec, Inc., et al., ask for authorization from the U.S. Bankruptcy Court for the District of Delaware to employ The Garden City Group, Inc., as notice, claims and balloting agent. GCG will, among other things: a. prepare and serve required notices in the Chapter 11 cases; b. maintain copies of all proofs of claim and proofs of interest filed; c. provide access to the public for examination of copies of the proofs of claim or proofs of interest filed in these cases without charge during regular business hours; and d. provide balloting services in connection with the solicitation process for any Chapter 11 plan for which the Court has approved a disclosure statement. GCG will bill the Debtor pursuant to the hourly rates of its professionals: Administrative & Data Entry $45-$55 Mailroom and Claims Control $55 Customer Service Representatives $57 Project Administrators $70-$85 Quality Assurance Staff $80-$125 Project Supervisors $95-$110 Systems & Technology Staff $100-$200 Graphic Support for web site $125 Project Managers $125-$175 Directors, Sr. Consultants and Asst VP $200-$295 Vice President and above $295* * Services provided by Vice President Jeff Stein in connection with solicitation (including of public securities) and tabulation will be at a rate of $310 per hour. Under the Garden City Agreement, the Debtors paid GCG a retainer of $50,000 to be applied immediately in satisfaction of the Debtors' obligations under the Garden City Agreement, a copy of which is available for free at: http://bankrupt.com/misc/BOWE_gccpact.pdf To the best of the Debtors' knowledge, GCG is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About BOWE BELL + HOWELL Headquartered in Wheeling, Ill., BOWE BELL + HOWELL -- http://www.bowebellhowell.com/-- is a leading provider of high- performance document management solutions and services. In 1936, the company pioneered gripper arm mail-inserting systems and has one of the world's largest installed bases of such inserters as a result of the technology's flexibility, performance and reliability. The company's complete portfolio of inserting, sorting, plastic card, integrity, cutting, packaging, print-on- demand and software solutions is one of the most comprehensive product offerings for paper-based communications. These solutions are supported by one of the largest dedicated service organizations in the industry. In addition to its headquarters offices, the company maintains major manufacturing and service locations in Durham, N.C. and Bethlehem, Penn. Bowe Bell + Howell sought bankruptcy protection in the U.S. as part of a deal to itself to creditor Versa Capital Management Inc. to pay off debt. Bowe Systec, Inc., Bowe Bell + Howell Holdings, Inc., and other affiliates, including Bowe Bell + Howell Holdings, Inc., filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 11-11186) on April 18, 2011. Bowe Systec estimated assets and debt of $100 million to $500 million as of the bankruptcy filing. Lee E. Kau fman, Esq., and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel. McDermott Will & Emery is the Debtors' special corporate counsel. Focus Management Group is the Debtors' financial advisors. Lazard Middle Market LLC is the Debtors' investment banker. Bowe Bell + Howell International Ltd., BBH's Canadian subsidiary, commenced parallel ancillary proceeding under Part IV of the Companies' Creditors Arrangement Act. BBH Canada, as the proposed foreign representative for the Debtors in the ancillary proceeding, will ask an Ontario Superior Court judge to recognize the bankruptcy proceedings in the U.S. PricewaterhouseCoopers Inc. is the prospective Information Officer in the Canadian Proceeding. BROOKLYN NAVY: Fitch Affirms & Withdraws B+ Rating & Neg. Outlook ----------------------------------------------------------------- Fitch Ratings has affirmed and withdrawn the 'B+' rating and Negative Outlook on these bonds of Brooklyn Navy Yard Cogeneration Partners (BNY): -- $58.9 million of taxable senior secured notes issued by BNY; -- $307 million of tax-exempt senior secured bonds issued by the New York City Industrial Development Agency on behalf of BNY. Fitch has withdrawn the ratings as BNY has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for BNY. Brooklyn Navy Yard is a nominally rated 286 megawatt (MW) natural gas-fired cogeneration facility located in New York City, NY. The facility is designed to provide 220 MW of electricity year-round and steam ranging from 550,000 lbs/hour in the summer to 800,000 lbs/hour in the winter. Under an Electric Sales Agreement, BNY sells nearly its entire output of electrical and steam energy to ConEd rated 'BBB+' with a Stable Outlook by Fitch. BROOKS SIMMONS: Lender Obtains Relief from Stay ----------------------------------------------- WestLaw reports that farmland which an individual Chapter 11 debtor had not farmed for more than two years, after his last two years of farming ended with substantial losses, and which, following amputation of the debtor's leg, he was currently incapable of farming, was not necessary for his effective reorganization, especially where rental income from the property was insufficient to service the debt that the property secured. Indeed, the property constituted a drain on the debtor's finances. Thus, the stay would be lifted based on the debtor's lack of equity in the property, once the costs of sale were taken into account. In re Simmons, --- B.R. ----, 2010 WL 6522462 (Bankr. S.D. Ga.) (Davis, J.). Brooks Lanier Simmons and Heather L. Williams (aka Heather Strickland) filed a chapter 11 petition (Bankr. S.D. Ga. Case No. 10-60323) on Apr. 2, 2010, and are represented by Jesse C. Stone, Esq., and Jon A. Levis, Esq., at Merrill & Stone, LLC, in Swainsboro, Ga. A copy of the Debtors' chapter 11 petition is available at http://bankrupt.com/misc/gasb10-60323.pdfat no charge. CAPITAL AV: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Capital AV I, LLC 6755 Bright Avenue Whittier, CA 90601 Bankruptcy Case No.: 11-27070 Chapter 11 Petition Date: April 20, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: M. Jonathan Hayes, Esq. LAW OFFICE OF M. JONATHAN HAYES 9700 Reseda Boulevard, Suite201 Northridge, CA 91324 Tel: (818) 882-5600 Fax: (818) 882-5610 E-mail: jhayes@polarisnet.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 four largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-27070.pdf The petition was signed by Javier Jimenez. CAPITOL BANCORP: Lee Hendrickson Retires as Company CFO ------------------------------------------------------- Capitol announced the retirement of its Chief Financial Officer, Lee W. Hendrickson. Mr. Hendrickson has served in this capacity since 1991. Mr. Hendrickson will continue to provide services to Capitol until his successor has been identified. On April 15, 2011, in connection with Mr. Hendrickson's retirement, Capitol and Mr. Hendrickson entered into an agreement whereby: (a) Mr. Hendrickson's employment agreement with Capitol dated Nov. 15, 2010 was terminated effective as of the date of his retirement; (b) Mr. Hendrickson has agreed to provide consulting services to Capitol upon its request; and (c) Mr. Hendrickson provided a general release from all claims against Capitol. About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE: CBC) -- http://www.capitolbancorp.com/-- is a $5.1 billion national community banking company, with a network of bank operations in 16 states. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan and Phoenix, Arizona. The Company reported a net loss of $254.36 million on $163.69 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $264.54 million on $197.78 million of total interest income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.54 billion in total assets, $3.57 billion in total liabilities and a $38.68 million total deficit. In September 2009, Capitol and its second-tier bank holding companies entered into a written agreement with the Federal Reserve Bank of Chicago under which Capitol has agreed, among other things, to submit to the Reserve Bank a written plan to maintain sufficient capital at Capitol on a consolidated basis and at Michigan Commerce Bank (as a separate legal entity on a stand- alone basis); and a written plan to enhance the consolidated organization's risk management practices, a strategic plan to improve the consolidated organization's operating results and overall condition and a cash flow projection. Certain of Capitol's bank subsidiaries have entered into formal agreements with their applicable regulatory agencies. Those agreements provide for certain restrictions and other guidelines and/or limitations to be followed by the banks. In 2009, Capitol commenced the deferral of interest payments on its various trust-preferred securities, as is permitted under the terms of the securities, to conserve cash and capital resources. The payment of interest may be deferred for periods up to five years. During such deferral periods, Capitol is prohibited from paying dividends on its common stock (subject to certain exceptions) and is further restricted by Capitol's written agreement with the Federal Reserve Bank of Chicago. Accrued interest payable on such securities approximated $18.1 million at June 30, 2010. CAREFREE WILLOWS: Seeks to Employ Alan R. Smith as Co-Counsel ------------------------------------------------------------- Carefree Willows, LLC, seeks the U.S. Bankruptcy Court for the District of Nevada's permission to employ the Law Offices of Alan R. Smith as its counsel, nunc pro tunc to March 15, 2011. As the Debtor's counsel, the Law Offices of Alan R. Smith will: (a) render legal advice with respect to the powers and duties of the Debtor that continue to operate its business and manage its properties as debtor-in -possession; (b) negotiate, prepare and file a plan or plans of reorganization and disclosure statements in connection with those plans, and otherwise promote the financial rehabilitation of the Debtor; (c) take all necessary action to protect and preserve the Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, negotiations concerning all litigation in which the Debtor is or will become involved, and the evaluation and objection to claims filed against the Debtor's estate; (d) prepare, on behalf of the Debtor, all necessary applications, motions, answers, orders, reports and papers in connection with the administration of the Debtor's estate, and appear on behalf of the Debtor at all Court hearings in connection with the Debtor's case; (e) render legal advice and perform general legal services; and (f) perform all other necessary legal services in connection with the Chapter 11 case. The Debtor will pay the Law Offices of Alan R. Smith's professionals according to their customary hourly rates: Name Title Rate per Hour ---- ----- ------------- Alan R. Smith Member $450 John G. Gezelin Attorney $300 Peggy L. Turk Paraprofessional $205 Merrilyn Marsh Paraprofessional $205 Other paraprofessionals charge at $75 to $105 per hour. Mr. Gezelin is the uncle of Paul Kinne who is married to Kristine Kinne, the bankruptcy analyst for the U.S. Trustee for Region 17. The Debtor will also reimburse the Law Offices of Alan R. Smith for expenses to be incurred. In March 2011, Carefree Holdings, Ltd. paid the Law Offices of 8 Alan R. Smith an advance retainer of $35,000. Mr. Smith anticipates that all payments for services will be made by Carefree Holdings, Ltd. The Law Offices of Alan R. Smith was not retained for any prepetition 11 services. Mr. Smith says -- mail@asmithlaw.com --his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The Court will consider the Debtor's application on May 17, 2011. The firm can be reached at: Alan R. Smith, Esq. LAW OFFICES OF ALAN R. SMITH 505 Ridge Street Reno, Nevada 89501 Tel: (775) 786-4579 Fax: (775) 786-3066 E-mail: mail@asmithlaw.com Carefree Willows LLC is the owner of 300-unit Carefree Senior Living in Las Vegas. Carefree Willows filed a Chapter 11 petition on Oct. 22 (Bankr. D. Nev. Case No. 10-29932). Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm, in Las Vegas, Nevada, serves as counsel to the Debtor. In its Schedules of Assets and Liabilities, the Debtor scheduled $30,604,014 in assets and $36,531,244 in liabilities. CAREFREE WILLOWS: Wants Marquis Aurbach for AG/ICC Claims Issue --------------------------------------------------------------- Carefree Willows, LLC, seeks permission from the U.S. Bankruptcy Court for the District of Nevada to employ Marquis Aurbach Coffing as its special litigation counsel. MAC will represent the Debtor in an action to determine the amount of AG/ICC Willows Loan Owner, LLC's claim. The determination of the claim is important to the Debtor as the amount of debt owed to AG/ICC will be used in the Debtor's plan of reorganization. David T. Duncan, Esq. of MAC -- dduncan@maclaw.com -- discloses that: (a) PSASP Trust, UAD 10/28/94, a revocable trust of which Phillip Aurbach is the Trustee, is a limited partner of Carefree Holdings Lill1ited Partnership; (b) MAC has provided legal services to the Debtor prepetition. As a result of providing these services, MAC is owed $552 for prepetition services that it provided, and is thus a creditor of the Debtor. MAC has agreed to waive its claim for payment of prepetition services provided to the Debtor; (c) MAC is not and was not, within two years before the commencement of this Chapter 11 case, a director, officer, or employee of the Debtor. Mr. Duncan was employed by Templeton Development Corporation (an affiliate of the Debtor) from January 1, 2007 through February 5, 2010 as Vice President of Asset Management. Mr. Duncan maintains that MAQ is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The Court will consider the Debtor's application on May 17, 2011. Carefree Willows LLC is the owner of 300-unit Carefree Senior Living in Las Vegas. Carefree Willows filed a Chapter 11 petition (Bankr. D. Nev. Case No. 10-29932) on Oct. 22, 2010. Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm, in Las Vegas, Nevada, serves as counsel to the Debtor. In its Schedules of Assets and Liabilities, the Debtor scheduled $30,604,014 in assets and $36,531,244 in liabilities. CARPENTER CONTRACTORS: Court Approves Crowe Horwath as Accountant ----------------------------------------------------------------- Judge Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, authorized Carpenter Contractors of America, Inc., and its debtor affiliates to employ Scott L. Spencer and Crowe Horwath, LLP, as their account, nunc pro tunc to the Petition Date. As reported by the Troubled Company Reporter on March 28, 2011, the firm will, among other things, audit and report on the Debtors' consolidated financial statements as of and for the fiscal year ending Jan. 30, 2011. The firm will also prepare the required federal and state tax returns of the Debtors for the fiscal year ended Jan. 30, 2011. The firm attested that it does not have any connection with creditors or other parties-in-interest. As a condition of representation, Crowe is waiving its $13,755 prepetition claim. About Carpenter Contractors Pompano Beach, Florida-based Carpenter Contractors of America, Inc., dba R&D Thiel, provides carpentry services to builders of new homes primarily in Illinois and Florida. It also manufactures building components and distributes construction materials in Illinois, Florida, and North Carolina. CCA Midwest Inc. provides carpentry services to builders of new homes in Illinois. It is a wholly-owned subsidiary of Carpenter Contractors. Carpenter Contractors and CCA Midwest filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Lead Case No. 10-42604) on Oct. 25, 2010. Chad P. Pugatch, Esq., serves as the Debtors' bankruptcy counsel, and Shaw Gussis Fishman Glantz Wolfson & Towbin LLC, serve as special counsel. GlassRatner Advisory & Capital Group, LLC, led by Thomas Santoro, is the Debtors' as financial advisor, and Scott L. Spencer, CPA and Crowe Horwath, LLP is the Debtors' accountant for audit work. Carpenter Contractors disclosed $42,900,573 in assets and $25,861,652 in liabilities as of the Chapter 11 filing. CARPENTER CONTRACTORS: Inks New CBA with Chicago Carpenters Union ----------------------------------------------------------------- Carpenter Contractors of America, Inc., seeks authority from Judge Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, to enter into a new collective bargaining agreement with Chicago Regional Council of Carpenters, Affiliated Local Union 792 of the United Brotherhood of Carpenters and Joiners of America. Prior to the Petition Date, the CBA between the Debtor and the Union expired. After extensive negotiations, the parties reached an agreement on a new CBA, which amends several terms of the original CBA. The New CBA is effective from April 11, 2011 to September 30, 2011. According to papers filed with the court, the new CBA will allow the Debtor substantial savings on labor cost in that employees hired prior to October 1, 2009 will have a pension rate of $2.35 per hour, reducing the pension rate by $1.65 per hour. Further, the parties agreed that employees hired prior to October 1, 2009 are entitled to five paid holidays eliminating two previously paid holidays. Also, the parties have agreed that wages will be frozen for the term of the New CBA. A copy of the motion, together with the NEW CBA, is available at http://ResearchArchives.com/t/s?75b7 About Carpenter Contractors Pompano Beach, Florida-based Carpenter Contractors of America, Inc., dba R&D Thiel, provides carpentry services to builders of new homes primarily in Illinois and Florida. It also manufactures building components and distributes construction materials in Illinois, Florida, and North Carolina. CCA Midwest Inc. provides carpentry services to builders of new homes in Illinois. It is a wholly-owned subsidiary of Carpenter Contractors. Carpenter Contractors and CCA Midwest filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Lead Case No. 10-42604) on Oct. 25, 2010. Chad P. Pugatch, Esq., serves as the Debtors' bankruptcy counsel, and Shaw Gussis Fishman Glantz Wolfson & Towbin LLC, serve as special counsel. GlassRatner Advisory & Capital Group, LLC, led by Thomas Santoro, is the Debtors' as financial advisor, and Scott L. Spencer, CPA and Crowe Horwath, LLP is the Debtors' accountant for audit work. Carpenter Contractors disclosed $42,900,573 in assets and $25,861,652 in liabilities as of the Chapter 11 filing. CATALYST PAPER: Snowflake Loses Half of Paper Inventory to Fire --------------------------------------------------------------- Catalyst Paper advised that a fire in the storage yard at its Snowflake Mill in northeast Arizona has shut down production and destroyed approximately 14,000 tonnes of recovered waste paper. The fire broke out at approximately noon Monday in the waste paper storage area. The mill's emergency team responded immediately and local fire departments from Snowflake, Taylor, Heber, Pinetop, Lakeside and Show Low were called in to help contain the blaze. Fire breaks were put into place to limit the spread of the damage as high winds challenged response team efforts. As the winds eased through Monday evening, responders were able to make better progress in extinguishing the fire. All appropriate authorities were notified and the region's public information officer has been assisting in coordination of local advisories. There were no serious injuries reported. Details on the cause of the incident are not known at this time and the mill will remain down until the full extent of damage to its waste paper feed system is known. Paper production is, however, expected to resume later this week. The Snowflake mill has annual production capacity of 337,000 tonnes of recycled newsprint and uncoated specialty papers and is chain of custody certified to the Forest Stewardship Council standard. The operation supports recovery and domestic recycling of more than 480,000 tons of waste paper annually and is the second largest private sector employer in northeast Arizona. About Catalyst Paper Catalyst Paper -- http://www.catalystpaper.com/-- manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.9 million tons. The Company is headquartered in Richmond, British Columbia, Canada and its common shares trade on the Toronto Stock Exchange under the symbol CTL. The Company posted a net loss of C$398.2 million on sales of C$1.229 billion during 2010. The Company's net loss in 2009 was C$5.6 million on sales of C$1.224 billion. The Company's balance sheet at Dec. 31, 2010, showed C$1.696 billion in total assets, C$1.293 billion in total liabilities, and stockholders' equity of C$403.4 million. * * * Catalyst Paper carried Moody's Investors Service's 'Caa1' corporate family rating. Outlook in Negative. The Company also carries Standard & Poor's CCC+ long-term corporate credit rating, Outlook is Stable. CHESAPEAKE CORP: Canal's Amended Joint Liquidation Plan Effective ----------------------------------------------------------------- BankruptcyData.com reports that Canal Corporation's Second Amended Joint Plan of Liquidation as Revised became effective, and the Company emerged from Chapter 11 protection. As of the effective date, and as contemplated by the Plan, the board of directors of Canal was eliminated, effective immediately, and the rights, powers and duties of Canal's board of directors were vested in the Plan administrator, an officer named under the Plan to govern Canal after the effective date. As a result, each of Canal's directors, Sir David Fell, Andrew J. Kohut, Henri D. Petit, John W. Rosenblum and Beverly L. Thelander, ceased being a director of Canal on the effective date. As reported in the April 1, 2011 edition of the Troubled Company Reporter, Canal Corp. resolved all objections and secured approval of the Chapter 11 plan at the March 28 confirmation hearing. Under the Plan, general unsecured creditors with $200 million in claims are estimated to have a 0.38% recovery. Holders of $50 million in revenue bonds may see 2.28% while holders of $250 million in subordinated notes won't receive anything. About Canal Corp. Headquartered in Richmond, Virginia, Chesapeake Corporation supplies specialty paperboard packaging products in Europe and an international supplier of plastic packaging products to niche end- use markets. The Company has 44 locations in Europe, North America, Africa and Asia. Chesapeake and 18 affiliates filed Chapter 11 petitions (Bankr. E.D. Va. Lead Case No. 08-336642) on Dec. 29, 2008. Lawyers at Hunton & Williams LLP represent the Debtors. Chesapeake tapped Alvarez and Marsal North America LLC, and Goldman Sachs & Co. as financial advisors. Tavenner & Beran PLC serves as conflicts counsel and Hammonds LLP as special counsel. Kurtzman Carson Consultants LLC serves as claims agent. The United States Trustee for Region 4 appointed seven creditors to serve on an Official Committee of Unsecured Creditors for the Debtors' Chapter 11 cases. Lawyers at Greenberg Traurig LLP represent the Committee. In its petition, Chesapeake disclosed $936,600,000 in total assets and $937,100,000 in total debts as of September 28, 2008. In May 2009, Chesapeake sold its assets to entities controlled by Irving Place Capital Management, L.P. and Oaktree Capital Management, L.P. and, following a competitive bidding process which produced no competing bids. The purchase price was about $485 million. The Debtor was renamed to Canal Corp., following the sale. CHINA RITAR: Receives Nasdaq Staff Deficiency Letter ---------------------------------------------------- China Ritar Power Corp. received a letter dated April 18, 2011 from the Nasdaq Stock Market (Nasdaq) stating that it failed to timely file its Annual Report on Form 10-K for the year ended December 31, 2010 (10-K), and as a result, no longer complies with the rules required for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5250(c)(1). Nasdaq requires that China Ritar submit a plan of compliance by May 3, 2011 to advise Nasdaq of any action that China Ritar has taken, or will take, to file the 10-K for 2010 and bring China Ritar into compliance with the listing standards. China Ritar intends to submit the required plan by May 3, 2011. If Nasdaq accepts China Ritar's plan, they may grant an extension of 180 calendar days, or until October 12, 2011, during which China Ritar can regain compliance. If Nasdaq does not accept the plan, or if China Ritar does not regain compliance during any applicable extension period, the Nasdaq staff will provide written notice that China Ritar's common stock is subject to delisting. China Ritar intends to file its 10-K for 2010 with the Securities and Exchange Commission as soon as practicable. About China Ritar China Ritar -- http://www.ritarpower.com/-- designs, develops, manufactures and markets environmentally friendly lead acid batteries with a wide range of capacities and applications, including telecommunications, Uninterrupted Power Source (UPS) devices, Light Electrical Vehicles (LEV), and alternative energy production (solar and wind power). China Ritar sells, markets and services six series and 197 models of Ritar-branded, cadmium-free valve-regulated lead-acid (VRLA) batteries. Products are sold worldwide with sales in 81 countries including China, India, and numerous markets in Europe and the Americas. CLAIRE'S STORES: Bank Debt Trades at 5% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Claire's Stores, Inc., is a borrower traded in the secondary market at 94.94 cents- on-the-dollar during the week ended Friday, April 22, 2011, a drop of 0.35 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on May 29, 2014, and carries Moody's B3 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on March 15, 2011, Moody's upgraded Claire's Stores, Inc.'s senior secured bank credit facilities to B3 from Caa1 and its Speculative Grade Liquidity Rating to SGL-2 from SGL-3. All other ratings were affirmed including Claire's Caa2 Corporate Family Rating. The rating outlook is positive. The upgrade of Claire's first lien bank facilities is in response to the repayment of $245 million of the term loan B, which reduced the amount of senior secured first lien bank debt in the capital structure. The upgrade also reflects Claire's recently issued $450 million second lien notes, which provide additional support to the first lien bank facilities. About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- is a specialty retailer offering accessories and jewelry for kids, tweens, teens, and young women in the 3 to 27 age range. The Company is organized based on its geographic markets, which include North American division and European division. As of January 30, 2010, it operated a total of 2,948 stores, of which 1,993 were located in all 50 states of the United States, Puerto Rico, Canada, and the United States Virgin Islands (its North American division) and 955 stores were located in the United Kingdom, France, Switzerland, Spain, Ireland, Austria, Germany, Netherlands, Portugal, and Belgium (its European division). Its stores operate under the trade names Claire's and Icing. In addition, as of Jan. 30, 2010, it franchised 195 stores in the Middle East, Turkey, Russia, South Africa, Poland, Greece, Guatemala and Malta under franchising agreements. It also operates 211 stores in Japan through its Claire's Nippon 50:50 joint venture with AEON Co. Ltd. The Company's balance sheet at Oct. 30, 2010, showed $2.79 billion in total assets, $218.86 million in total current liabilities, $2.62 billion in long-term debt, and a stockholders' deficit of $47.89 million. Claire's Stores carries 'Caa2' corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service, and 'B-' issuer credit ratings, with 'stable' outlook, from Standard & Poor's. Moody's Investors Service in December 2010 upgraded Claire's Stores' ratings, including its Corporate Family Rating and Probability of Default Rating, to Caa2 from Caa3. The upgrade reflects a decrease in Claire's probability of default given that the company can now fully cover its interest expense. This is due to earnings improvement from solid comparable store sales growth, improved merchandise margins, and continued expense discipline. Claire's 'Caa2' Probability of Default Rating reflects Moody's view that although Claire's credit metrics have improved, they remain very weak as a result of its heavy debt load. For the twelve months ending Oct. 30, 2010, Claire's debt to EBITDA was very high at 9.3 times. CLEAR CHANNEL: Bank Debt Trades at 11% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Clear Channel Communications, Inc., is a borrower traded in the secondary market at 88.79 cents-on-the-dollar during the week ended Friday, April 22, 2011, a drop of 1.21 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 365 basis points above LIBOR to borrow under the facility. The bank loan matures on January 30, 2016, and carries Moody's Caa1 rating and Standard & Poor's CCC+ rating. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About CC Media and Clear Channel Clear Channel Communications, Inc. -- http://www.clearchannel.com/--is a diversified media company with three primary business segments: radio broadcasting, outdoor advertising and live entertainment. Clear Channel (OTCBB:CCMO) is the operating subsidiary of San Antonio, Texas-based CC Media Holdings, Inc. CC Media's balance sheet at Dec. 31, 2010, showed $17.48 billion in total assets, $1.25 billion in current liabilities, $20.61 billion in long-term liabilities and a $7.20 billion shareholders' deficit. * * * CC Media Holdings carries 'CCC+' issuer credit ratings from Standard & Poor's. Clear Channel Carries a 'Caa2' corporate family rating from Moody's Investors Service and an issuer default rating of 'CCC' from Fitch Ratings. Fitch said in November 2010, that its ratings concerns center on the company's highly leveraged capital structure, with significant maturities in 2014 and 2016; the considerable interest burden that pressures free cash flow generation; technological threats and secular pressures in radio broadcasting; and the company's exposure to cyclical advertising revenue. The ratings are supported by the company's leading position in both the outdoor and radio industries, as well as the positive fundamentals and digital opportunities in the outdoor advertising space. In February 2011, Standard & Poor's affirmed its 'CCC+' corporate credit rating and positive outlook on CC Media Holdings and operating subsidiary Clear Channel, which S&P views on a consolidated basis. S&P said the 'CCC+' CCR on CC Media Holdings reflects the risks surrounding the longer-term viability of the company's capital structure -- in particular, refinancing risk relating to sizable secured debt maturities in 2014 ($3.2 billion pro forma for the transaction) and 2016 ($10.4 billion). In S&P's view, the Company has a satisfactory business risk profile, due to its position as the largest radio and global outdoor advertising operator, its good geographic and market diversity, and moderate long-term growth prospects at the outdoor business. S&P views the financial risk profile as highly leveraged, given the Company's significant refinancing risk, roughly break-even EBITDA coverage of interest expense, and slim discretionary cash flow. CLEARWIRE CORP: K. Rae and J. Vogel Nominated to Board ------------------------------------------------------ The Board of Directors of Clearwire Corporation nominated Kathleen Rae to stand for election to the Board at the Company's annual stockholders meeting. Ms. Rae was nominated to a position on the Board by the Nominating and Governance Committee, to replace Peter Currie, who on April 13, 2011 informed the Board he would not be standing for re-election. It is expected that Ms. Rae will serve on the Audit Committee and will act as the Company's designated "audit committee financial expert." The Board also nominated Jennifer Vogel to stand for election to the Board at the Annual Meeting. Ms. Vogel was nominated to a position on the Board by Sprint Nextel Corporation, to replace Frank Ianna, who will not be standing for re-election. Sprint had the right to nominate a replacement for Mr. Ianna pursuant to the terms of the Equityholders' Agreement dated Nov. 28, 2008 by and among the Company, Sprint, Intel Corporation, Google Inc., Comcast Corporation, Time Warner Cable Inc., Bright House Networks LLC, and Eagle River Holdings, LLC. On April 14, 2011, the Board also appointed Mufit Cinali to fill a vacancy on the Audit Committee of the Board. The Audit Committee now has three members, in compliance with NASDAQ listing rules. About Clearwire Corporation Kirkland, Wash.-based Clearwire Corporation (NASDAQ: CLWR) -- http://www.clearwire.com/-- through its operating subsidiaries, is a leading provider of wireless broadband services. Clearwire's 4G mobile broadband network serves 68 markets, including New York City, Los Angeles, Chicago, Dallas, Philadelphia, Houston, Miami, Washington, D.C., Atlanta and Boston. The Company's balance sheet at Dec. 31, 2010 showed $11.04 billion in total assets, $5.17 billion in total liabilities $5.87 billion in total equity. The Company reported a net loss of $2.30 billion on $556.82 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.25 billion on $274.46 million of revenue during the prior year. The Company disclosed in its Form 10-Q for the third quarter ended Sept. 30, 2010, that its expected continued losses from operations and the uncertainty about its ability to obtain sufficient additional capital raise substantial doubt about the Company's ability to continue as a going concern. "Without additional financing sources, we forecast that our cash and short-term investments would be depleted as early as the middle of 2011. Thus, we will be required to raise additional capital in the near-term in order to continue operations. The audit reports of Deloitte & Touche LLP, in Seattle, Washington, on the Company's financial statements for 2009 and 2010 did not include a going concern qualification. * * * As reported by the Troubled Company Reporter on Nov. 11, 2010, Standard & Poor's Ratings Services lowered its corporate credit rating, and all other ratings, on Clearwire Corp. to 'CCC' from 'B-'. At the same time, S&P revised the CreditWatch listing on the company from negative to developing. S&P had initially placed the ratings on CreditWatch with negative implications on Oct. 6, 2010, based on S&P's view that Clearwire faced significant near- term liquidity risks. The downgrade follows the Company's disclosure -- in its Form 10-Q for quarter ended Sept. 30, 2010 -- regarding the uncertainty about its ability to obtain additional capital and continue as a going concern. In Clearwire's 2010 third-quarter earnings report and conference call, the company indicated that it expected to run out cash by mid-2011, which is consistent with S&P's earlier comments. Cash totaled around $1.4 billion as of Sept. 30, 2010. COLIN-G PROPERTIES: Case Summary & 18 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Colin-G Properties, Ltd. dba Hwy 276 Self Storage aka Hwy 276 Self Stor N More P.O. Box 847 Rockwall, TX 75087 Bankruptcy Case No.: 11-32632 Chapter 11 Petition Date: April 19, 2011 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser Debtor's Counsel: Gerald Philip Urbach, Esq. HIERSCHE, HAYWARD, DRAKELEY & URBACH 15303 Dallas Parkway, Suite 700 Addison, TX 75001 Tel: (972) 701-7026 Fax: (972) 701-8765 E-mail: gurbach@hhdulaw.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 18 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/txnb11-32632.pdf The petition was signed by Gerald M. Houser, managing member of general partner. Affiliate that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Colin-G Management, LLC 11-32631 04/19/11 COMMUNITY CENTRAL: Receives Delisting Notice From NASDAQ -------------------------------------------------------- Community Central Bank Corporation received a letter from The Nasdaq Stock Market stating that trading in its common stock will be suspended at the opening of business on April 25, 2011, and the Company's securities would be removed from listing and registration on NASDAQ. This action is being taken in response to the Company's decision not to pay NASDAQ's annual listing fee. As previously announced, the Company has received notices from NASDAQ stating that the Company is not in compliance with the following NASDAQ Listing Rules: (i) Rule 5250(c)(1) because the Company did not timely file its Annual Report on Form 10-K for the year ended Dec. 31, 2010 with the Securities and Exchange Commission; (ii) Rule 5450(a)(1) because the minimum bid price of the Company's common stock was below $1.00 per share for 30 consecutive business days; and (iii) Rule 5550(a)(5) because the minimum market value of the Company's publicly held shares of common stock was below $1,000,000 for 30 consecutive business days. The Company has until May 3, 2011, to regain compliance with the minimum closing bid price requirement and until June 28, 2011, to regain compliance with the minimum market value requirement. The Company has until June 6, 2011 to submit a plan to regain compliance with Rule 5250(c)(1), and if NASDAQ accepts the Company's plan, it can grant an exception of up to 180 calendar days from the Form 10-K due date, or until Sept. 27, 2011, to regain compliance. If the Company does not regain compliance by the applicable date or dates, NASDAQ will provide the Company a written notification that its common stock will be delisted. The Company has the right until April 20, 2011 to appeal NASDAQ Staff's determination to suspend trading in the Company's securities and its delisting and deregistration from NASDAQ, but does not expect to do so due, in part, to the Company's belief that it will be unable to regain compliance with at least one, if not all, of the aforementioned Listing Rules prior to the expiration of the applicable grace periods. The Company, following delisting, will seek to have its shares quoted on the Pink Sheets, LLC, an electronic network through which participating broker-dealers can make markets, and enter orders to buy and sell shares of companies. However, no registered broker-dealer that currently makes a market in the Company's shares has yet indicated an intention to sponsor the Company's shares on the Pink Sheets, or to act as a market maker. The Company can provide no assurance that a market maker will be willing to sponsor the Company's common stock on the Pink Sheets, or that once the Company's common stock is quoted on the Pink Sheets it will continue to be quoted on the Pink Sheets or on any other forum. About Community Central Community Central Bank Corporation is the holding company for Community Central Bank in Mount Clemens, Michigan. The Bank opened for business in October 1996 and serves businesses and consumers across Macomb, Oakland, St. Clair and Wayne counties with a full range of lending, deposit, trust, wealth management and Internet banking services. The Bank operates four full service facilities in Mount Clemens, Rochester Hills, Grosse Pointe Farms and Grosse Pointe Woods, Michigan. Community Central Mortgage Company, LLC, a subsidiary of the Bank, operates locations servicing the Detroit metropolitan area and central and northwest Indiana. River Place Trust and Community Central Wealth Management are divisions of Community Central Bank. Community Central Insurance Agency, LLC, is a wholly owned subsidiary of Community Central Bank. The Corporation's common shares currently trade on The NASDAQ Capital Market under the symbol "CCBD". The Company's balance sheet at Sept. 30, 2010, showed $513.7 million in total assets, $501.6 million in total liabilities, and stockholders' equity of $12.1 million. "As of Sept. 30, 2010, due to the Corporation's significant net loss from operations in the three and nine months ended Sept. 30, 2010, deterioration in the credit quality of the loan portfolio, and the decline in the level of its regulatory capital to support operations, there is substantial doubt about the Corporation's ability to continue as a going concern," the Corporation said in its Form 10-Q for the quarter ended Sept. 30, 2010. The Bank is currently subject to a "consent order" with the Federal Deposit Insurance Corporation and the Michigan Office of Financial and Insurance Regulation and is "significantly undercapitalized" under the FDIC's prompt corrective action (PCA) rules and accordingly is operating under significant operating restrictions. The Consent Order requires Community Central Bank to take corrective measures in a number of areas to strengthen and improve the Bank's financial condition and operations. The Consent Order is effective as of November 1, 2010. By entering into the Consent Order, the Bank is directed and has agreed to increase board oversight and conduct an independent study of management, improve regulatory capital ratios, charge-off certain classified assets, reduce its level of loan delinquencies and problem assets, limit lending to certain borrowers, revise lending and collection policies, adopt and implement new profit, strategic and liquidity plans, and correct loan underwriting and credit administration deficiencies. The Consent Order also requires the Bank to obtain prior regulatory approval before the payment of cash dividends or the appointment of any senior executive officers or directors. The Bank also is not allowed to accept brokered deposits without a waiver from the FDIC and must comply with certain deposit rate restrictions. COMPTON PETROLEUM: To Hold Annual and Special Meeting on May 10 --------------------------------------------------------------- Compton Petroleum Corporation said that the annual and special meeting of the shareholders of the Company will be held in the ENMAX Ballroom, Calgary Chamber of Commerce, Fourth Floor, 517 Centre Street South, Calgary, Alberta, Canada on Tuesday, May 10, 2011, at 3:30 p.m., for the purposes of: * receiving the financial statements for the year ended Dec. 31, 2010, together with the auditors' report thereon; * electing a board of directors to serve until the next annual meeting of shareholders or until their successors are duly elected or appointed; * appointing Grant Thornton LLP, Chartered Accountants, as auditors and authorizing the directors of the Corporation to fix the auditors' remuneration; * approving the ability of the Corporation to issue up to 1,924,992 Common Shares of the Corporation in partial satisfaction of amounts owing to the officers of the Corporation under certain employment arrangements that are described in the accompanying Management Proxy Circular; * approving the ability of the Corporation to issue up to 1,875,000 Common Shares of the Corporation to the independent directors of the Corporation in partial payment of Director's fees under a deferred share unit plan described in the accompanying Management Proxy Circular; and * transacting such other business as may properly be brought before the Meeting, or any adjournment or adjournments thereof. Holders of record of common shares of the Corporation at the close of business on March 25, 2011 will be entitled to vote at the Meeting. About Compton Petroleum Compton Petroleum Corporation is an exploration and production company. The Company explores for, develops, and produces oil and gas in western Canada. Compton's interests include the areas of Shekille, Senex, Deep Basin, Rimbey, and Vulcan/Gladys, all in Alberta, Canada. The Company's balance sheet at Dec. 31, 2010 showed $1.38 billion in total assets, $712.29 million in liabilities and $664.03 million in shareholders' equity. * * * Moody's Investors Service has withdrawn Compton Petroleum's ratings following the repayment of its rated debt. Ratings withdrawn include the 'Caa1' Corporate Family Rating and Probability of Default Rating, and the 'Caa2' senior unsecured notes rating. As reported by the Troubled Company Reporter on Dec. 1, 2010, Standard & Poor's Ratings Services withdrew its 'B' long- term corporate credit rating on Compton Petroleum Corp. At the same time, Standard & Poor's withdrew its 'B-' senior unsecured rating and '5' recovery rating on subsidiary Compton Petroleum Finance Corp.'s US$193.5 million senior unsecured notes. S&P withdrew the ratings at the Company's request. CONTECH CONST'N: Bank Debt Trades at 13% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Contech Construction Products, Inc., is a borrower traded in the secondary market at 86.95 cents-on-the-dollar during the week ended Friday, April 22, 2011, a drop of 0.40 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on January 31, 2013, and carries Moody's Caa1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Contech Construction Headquartered in West Chester, Ohio, Contech Construction Products, Inc. -- http://www.contech-cpi.com/-- makes, distributes, and installs civil engineering products related to environmental storm water, drainage, bridges, walls, and earth stabilization. Contech has dealers, distributors, or manufacturing plants in all 50 U.S. states and a national sales organization of more than 350 people. Investment firm Apax Partners owns Contech. * * * As reported by the Troubled Company Reporter on Dec. 6, 2010, Moody's Investors Service confirmed Contech Construction's 'Caa1' Corporate Family Rating. In a related rating action Moody's changed Contech's Probability of Default Rating to 'Caa2/LD' since it converted approximately $240 million of debt to equity. Moody's will remove the PDR's LD modifier after three business days. Moody's also lowered the ratings of the senior secured bank credit facility to 'Caa1' from 'B3'. The rating outlook is stable. The 'Caa1' Corporate Family Rating reflects ongoing pressures in the North American construction industry, the driver of Contech's revenues, combined with the company's credit metrics even after completing a debt-to-equity conversion. The TCR, on Nov. 4, 2010, reported that Standard & Poor's Ratings Services lowered its corporate credit rating on Ohio-based Contech Construction Products, Inc., to 'SD' from 'CC'. S&P removed the rating from CreditWatch, where it was placed with negative implications on June 18, 2010. This rating action is determined by S&P's criteria for distressed debt exchanges, not due to unexpected business developments. At the same time, S&P revised its CreditWatch implications on Contech's outstanding senior secured debt to positive from negative. "These rating actions follow the completion of Contech's financial restructuring with its debt and equity holders, which reduces the company's outstanding debt by approximately $240 million," said Standard & Poor's credit analyst Thomas Nadramia. CREDIT-BASED ASSET: Court Convenes Confirmation Hearing Today ------------------------------------------------------------- The Hon. Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York will convene a hearing today, April 25, 2011, at 11:00 a.m., to consider the confirmation of Credit-Based Asset Servicing and Securitization LLC, et al.'s Chapter 11 Plan. As reported in the March 9, 2011 edition of the Troubled Company Reporter, the Plan would carry out an agreement reached with secured lenders before the November bankruptcy filing that allows the use of $8.2 million to operate in Chapter 11 and distribute to lower-ranking creditors. The bankruptcy judge approved the explanatory disclosure statement on March 4. According to the Disclosure Statement, senior unsecured creditors with $903 million in claims are told to expect a 0.5% recovery. Holders of $539 million in two types of subordinated claims receive nothing. The holders of $191.6 million in senior lenders' claims receive nothing on account of the pre-bankruptcy agreement, until the liquidating trust recovers more than $15 million. To receive a distribution, unsecured creditors must give releases to the lenders. The senior lenders allowed C-Bass to use $8.2 million of their money to fund C-Bass through bankruptcy, in exchange for broad releases against lawsuits for those lenders. A full-text copy of the disclosure statement, as amended, is available for free at http://ResearchArchives.com/t/s?7479 A full-text copy of the Chapter 11 plan, as amended, is available for free at http://ResearchArchives.com/t/s?747a The Official Committee of Unsecured Creditors has selected Clifford A. Zucker to serve as the liquidation trustee subject to confirmation of the Debtors' Chapter 11 Plan of Liquidation. About Credit-Based Asset Servicing Credit-Based Asset Servicing and Securitization LLC is a subprime mortgage investor based in New York City. C-Bass is a joint venture, owned in part by units of mortgage insurers MGIC Investment Corp. and Radian Group Inc. C-Bass and seven affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-16040) on Nov. 12, 2010. C-Bass disclosed $23.7 million in assets and $2.16 billion in liabilities in its Schedules of Assets and Liabilities. The Debtors' liabilities include $195.8 million of secured debt. Peter S. Partee, Esq., Richard P. Norton, Esq., Robert A. Rich, Esq., and Scott Howard Bernstein, Esq., at Hunton & Williams LLP, represent the Debtors. Donlin, Recano & Company is the claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in C-BASS' chapter 11 cases and that committee is represented by Mark T. Power, Esq., and Jeffrey Zawadzki, Esq., at Hahn & Hessen LLP in New York. The affiliates that filed separate Chapter 11 petitions are C-BASS CBO Holding LLC, C-BASS Credit Corp., C-BASS Investment Management LLC, NIM I LLC, Pledged Property II LLC, Starfish Management Group LLC, and Sunfish Management Group LLC. CREEKSIDE-DOUBLE: Case Summary & 3 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Creekside-Double Diamond, LLC 9190 Double Diamond Parkway Reno, NV 89521 Bankruptcy Case No.: 11-51306 Chapter 11 Petition Date: April 19, 2011 Court: U.S. Bankruptcy Court District of Nevada (Reno) Judge: Bruce T. Beesley Debtor's Counsel: Stephen R. Harris, Esq. BELDING, HARRIS & PETRONI, LTD 417 W. Plumb Lane Reno, NV 89509 Tel: (775) 786-7600 Fax: (775) 786-7764 E-mail: steve@renolaw.biz 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/nvb11-51306.pdf The petition was signed by Jaffra A. Masad, managing member. Affiliates that previously sought Chapter 11 protection: Entity Case No. Petition Date ------ -------- ------------- Waltham Way Development, LLC 11-50948 03/25/11 Creekside Development, LLC 11-50949 03/25/11 DANCING BEAR: To Make Sec. 362(d)(3) Payments on April 29 --------------------------------------------------------- At Dancing Bear Land, LLC's behest, Judge Michael E. Romero of the U.S. Bankruptcy Court for the District of Colorado extended the time by which the Debtor may commence monthly payments to its secured creditor WestLB AG under Section 362(d)(3) of the Bankruptcy Code, through April 29, 2011. According to the Debtor, WestLB and its receiver have refused to turnover the Debtor's real property in Aspen, Colorado, and cash from it and in that the Court has yet to determine the Debtor's motion to access postpetition financing. Under those circumstances, the Debtor insisted that it should not be required to begin payments to WestLB. Snowmass, Colorado-based Dancing Bear Land, LLC filed for Chapter 11 protection (Bankr. D. Colo. Case No. 10-39584) on Nov. 23, 2010. Dancing Bear's affiliates DB Capital Holdings, LLC and Dancing Bear Development, LP filed separate Chapter 11 petitions on June 24, 2010 and Oct. 19, 2010, respectively. In its Chapter 11 petition, Dancing Bear estimated $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. The Debtor is represented by: Robert Padjen, Esq. LAUFER AND PADJEN LLC 5290 DTC Parkway, Suite 150 Englewood, Colorado 80111 Tel: (303) 830-3173 Fax: (303) 830-3135 E-mail: rp@jlrplaw.com - and - Heidi J. Sorvino LEWIS BRISBOIS BISGAARD & SMITH LLP 77 Water Street, 21st Floor New York, New York 10005 Tel: (212) 232-1300 Fax: (212) 232-1399 E-mail: hsorvino@lbbslaw.com DB CAPITAL: Aspen HH's Seeks Appointment of Ch. 11 Trustee ------------------------------------------------------------ Aspen HH Ventures, LLC asks the U.S. Bankruptcy Court for the District of Colorado to appoint a Chapter 11 trustee for DB Capital Holdings, LLC. Aspen seeks appointment of a Chapter 11 trustee because: (i) DB Capital's Operating Agreement, and Colorado law, Prohibit DB Capital's Manager, Thomas DiVenere, from taking action without its Members' unanimous consent in connection with matters that are outside the ordinary course of DB Capital's business. In 2009, DB Capital defaulted on its $58 million mortgage loan; since March, 2010, its real estate assets have been under the control of a state court receiver; it has no operating funds, no employees, and no ability to conduct any business; and the company is subject to an involuntary bankruptcy proceeding. DB Capital is not now, and has not been since at least March 2010, operating its ordinary business. Moreover, its two Members are, and have been since March 2010, hopelessly deadlocked regarding the continuing management of the business. Unless the DB Capital Operating Agreement is ignored, the only way to resolve the management deadlock is through the appointment of an independent, disinterested chapter 11 trustee. (ii) DB Capital's current Manager is hopelessly conflicted, and cannot satisfy his fiduciary responsibilities to all creditors and equity holders. He has also demonstrated, in his own personal chapter 11 bankruptcy case, that he is not forthright, and is either unwilling or unable to comply with the requirements of the Bankruptcy Code. According to Aspen, Mr. DiVenere has proposed a grandiose plan to restructure the Debtors which will require up to $35 million in 15% DIP financing, and the priming of WestLB's loan. However, there is a better way to restructure the Debtors -- one which would likely be more palatable to WestLB, AG and have a much greater chance of success, Aspen insists. Aspen also objects to WestLB's motion for relief from the automatic stay and the Debtors' motion for postpetition financing. Aspen is represented by: Michael H. Moirano NISEN & ELLIOTT 200 West Adams, Suite 2500 Chicago, Illinois 60602 Tel.: (312) 346-7800 Fax: (312) 346-9316 E-mail: mmoirano@nisen.com - and - Lawrence Bass FAEGRE & BENSON LLP 3200 Wells Fargo Center, 1700 Lincoln Street Denver, CO 80203-4532 Tel.: (303) 607-3500 Fax: (303) 607-3600 E-mail: lbass@faegre.com About DB Capital DB Capital Holdings, LLC, is a limited liability company organized under the laws of the State of Colorado. Its assets include its membership interest in Dancing Bear Land, LLC, as well as Dancing Bear Realty, LLC, and LCH, LL. Those entities were used to develop and sell a luxury fractional ownership condominium project (made up of two buildings located across the street from each other) in Aspen, Colorado known as the "Dancing Bear Aspen". Dancing Bear Land holds title to the two parcels of real property on which the Project is being constructed. The Debtor has one Class A member, Aspen HH Ventures, LLC, and one Class B member, Dancing Bear Development, LP. The general partner of Dancing Bear Development, LP, is Dancing Bear Management, LLC, which has no membership or other interest in the Debtor, and is solely owned by Tom DiVenere. The Debtor is managed, pursuant to its Operating Agreement, by Dancing Bear Management, LLC. Fred Funk, William Dennis, G.D.B.S. at Snowmass, Inc., Realty Financial Resources, Inc., and O'Bryan Partnership, Inc., filed an involuntary Chapter 11 bankruptcy petition (Bankr. D. Colo. Case No. 10-25805) against DB Capital Holdings on June 24, 2010. Judge Elizabeth E. Brown presides over the case. Jeffrey S. Brinen, Esq., represents the filers. In its schedules, the Debtor disclosed zero assets and liabilities of $57,456,046. On Oct. 19, 2010, Dancing Bear Development, LP, filed for Chapter 11 relief (Bankr. D. Colo. Case No. 10-36493) in order to stay foreclosure of its membership interest in the Debtor. DB Development estimated assets and debts below $1 million. On Nov. 23, 2010, Dancing Bear Land, LLC, filed for Chapter 11 relief (Bankr. D. Colo. Case No. 10-39584), in order to stay foreclosure of its Property. In its schedules of assets and liabilities, DB Land reported $0 total scheduled assets and $58,000,000 total scheduled liabilities. DEL-A-RAE INC: Unbridled Optimism Leads to Relief from Stay ----------------------------------------------------------- WestLaw reports that the property which secured a creditor's claim, in which the Chapter 11 debtor had no equity, was not logically required for the success of any reorganization plan, but instead was a drain on the solvency of the estate. Therefore, the property was not "necessary to an effective reorganization," and the creditor was entitled to relief from the automatic stay. Although the debtor, based on its belief that the market would rebound and the property would be worth substantially more in five years, proposed to keep the property and make adequate protection payments to the creditor using its equity cushion in other property, any plan that had a reasonable possibility of a successful reorganization would not rely on the property. Unbridled optimism, the court explained, was not a legal foundation sufficient to support a plan. In re Del-A-Rae, Inc., - -- B.R. ----, 2011 WL 1481722 (Bankr. S.D. Ga.). Del-A-Rae, Inc., located in Rincon, Ga., sought chapter 11 protection (Bankr. S.D. Ga. Case No. 09-42267) on Oct. 5, 2009, is represented by C. James McCallar Jr., Esq., in Savannah, Ga., and estimated its assets and debts at $10 million to $50 million at the time of the filing. DEL-A-RAE INC: Oversecured Creditor Gets Default Interest Rate -------------------------------------------------------------- WestLaw reports that an oversecured creditor was entitled to accrue postpetition, pre-plan confirmation interest at the notes' maturity or default rate of interest, as the contract rate of interest, for all times after the maturity of the notes. That interest rate did not violate state law. Moreover, even if a balancing of the equities was warranted in determining whether the creditor could use the notes' maturity or default rate of interest, the equities did not favor precluding the creditor's use of that rate, since the debtor was solvent and any decrease in the interest rate would only benefit the debtor once it emerged from bankruptcy. In re Del-A-Rae, Inc., --- B.R. ----, 2011 WL 1482943 (Bankr. S.D. Ga.). Del-A-Rae, Inc., located in Rincon, Ga., sought chapter 11 protection (Bankr. S.D. Ga. Case No. 09-42267) on Oct. 5, 2009, is represented by C. James McCallar Jr., Esq., in Savannah, Ga., and estimated its assets and debts at $10 million to $50 million at the time of the filing. DEX MEDIA EAST: Bank Debt Trades at 21% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 78.79 cents-on- the-dollar during the week ended Friday, April 22, 2011, a drop of 0.25 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on October 24, 2014. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media East Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) --http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc., and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East LLC is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. (Qwest) in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes due April 15, 2009. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co-Counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DEX MEDIA WEST: Bank Debt Trades at 10% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media West LLC is a borrower traded in the secondary market at 89.75 cents-on- the-dollar during the week ended Friday, April 22, 2011, an increase of 0.25 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on October 24, 2014. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media West Dex Media West LLC is a subsidiary of Dex Media West, Inc., and an indirect wholly owned subsidiary of Dex Media, Inc. Dex Media is a direct wholly owned subsidiary of R.H. Donnelley Corporation. Dex Media West is the exclusive publisher of the official yellow pages and white pages directories for Qwest Corporation, the local exchange carrier of Qwest Communications International, Inc., in Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes due April 15, 2009. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represented the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, served as the Debtors' local counsel. The Debtors' financial advisor was Deloitte Financial Advisory Services LLP while its investment banker was Lazard Freres & Co. LLC. The Garden City Group, Inc., was claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co- counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DLGC II: Section 341(a) Meeting Scheduled for May 17 ---------------------------------------------------- The U.S. Trustee for Region 14 will convene a meeting of DLGC II, LLC's creditors on May 17, 2011, at 11:00 a.m. The meeting will be held at the US Trustee Meeting Room, 230 N. First Avenue, Suite 102, Phoenix, Arizona. 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. Phoenix, Arizona-based DLGC II, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-10174) on April 13, 2011. Mark W. Roth, Esq., at Polsinelli Shughart P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. Affiliate Lake Pleasant Group, LLP (Bankr. D. Ariz. Case No. 11- 10170) filed a separate Chapter 11 petition on April 13, 2011. DOVE VALLEY: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Dove Valley Scottsdale, LLC 16441 N. 90th Street Scottsdale, AZ 85260 Bankruptcy Case No.: 11-11450 Chapter 11 Petition Date: April 22, 2011 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Charles G. Case, II Debtor's Counsel: Mark W. Roth, Esq. POLSINELLI SHUGHART P.C. One East Washington Street CityScape Building, Suite 1200 Phoenix, AZ 85004 Tel: (602) 650-2012 Fax: (602) 926.8562 E-mail: mroth@polsinelli.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Jeffrey Mastro, manager of Mastro Properties LLC, managing member. DTO HOLDINGS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: DTO Holdings, LLC 15703 Dale Street Detroit, MI 48223 Bankruptcy Case No.: 11-51535 Chapter 11 Petition Date: April 22, 2011 Court: U.S. Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Walter Shapero Debtor's Counsel: Robert N. Bassel, Esq. P.O. Box T Clinton, MI 49236 Tel: (248) 677-1234 Fax: (248) 369-4749 E-mail: bbassel@gmail.com Estimated Assets: $100,001 to $500,000 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 Daniel O'Keefe, president. DUKE REALTY: Fitch Downgrades Preferred Stock Rating to 'BB' ------------------------------------------------------------ Fitch Ratings has downgraded these credit ratings of Duke Realty Corporation (NYSE: DRE) and its operating partnership, Duke Realty Limited Partnership: Duke Realty Corporation -- Issuer Default Rating (IDR) to 'BBB-' from 'BBB'; -- Preferred stock to 'BB' from 'BB+'. Duke Realty Limited Partnership -- IDR to 'BBB-' from 'BBB'; -- Senior unsecured notes to 'BBB-' from 'BBB'; -- Senior unsecured exchangeable notes to 'BBB-' from 'BBB'; -- Unsecured revolving credit facility to 'BBB-' from 'BBB'. The Rating Outlook has been revised to Stable from Negative. The rating actions reflect Fitch's view that the company's credit profile is more consistent with a 'BBB-' rating; in particular, Duke Realty's fixed charge coverage ratio is low for the rating category. The actions also reflect continued weakness in suburban office fundamentals that may adversely impact the portfolio, even as Duke Realty continues to shift its portfolio away from suburban office to a higher percentage of industrial and medical office properties. The rating also takes into account the company's credit strengths, which include moderate leverage for the rating level, a large pool of diversified industrial, office and medical office properties, solid unencumbered asset coverage of unsecured debt, and an adequate liquidity position. Duke Realty's fixed-charge coverage ratio (defined as recurring operating EBITDA less Fitch's estimate of recurring capital expenditures and straight-line rent adjustments divided by total interest incurred and preferred dividends) was 1.5 times (x) in 2010, up slightly from 1.4x in 2009. Coverage has remained in the 1.4x to 1.6x range since 2007, and absent significant delevering transactions, over the next few years, Fitch anticipates that fixed charge coverage will remain at similar levels in the near term. Duke Realty has a diversified portfolio of 792 bulk distribution, suburban office, medical office and retail properties located across 18 markets, which Fitch views favorably from a property segment and geographical diversification standpoint. The company's portfolio also benefits from a highly diversified tenant base and well staggered lease expiration schedule. Duke Realty's largest 20 tenants represented just 15.2% of annual base rents at Dec. 31, 2010, thus limiting individual tenant credit risk. In addition, lease expirations are less than 10% of total annual base rent in 2011 and 2012, indicating long-term recurring cash flow throughout the portfolio. Duke Realty has made significant progress on the repositioning of its portfolio, and continues to execute on its strategic plan, which consists of shifting the portfolio mix to increase the exposure to industrial and medical office assets, while reducing the exposure to suburban office. Fitch has a negative outlook on industrial and suburban office fundamentals, and a stable outlook on healthcare fundamentals, and views the company's repositioning strategy positively, although it could take time for such a shift to result in significant improvements in credit metrics absent delevering transactions. There is also the potential for EBITDA dilution from negative spread asset purchases and sales as the company shifts the composition of the portfolio. The company's leverage, defined as net debt to recurring operating EBITDA, was 7.2x at Dec. 31, 2010, up from 6.7x at Dec. 31, 2009. Fitch expects leverage to fluctuate in the near term as the company continues its portfolio repositioning, but eventually to trend back down below 7.0x, which is appropriate for the 'BBB-' rating. The company has curtailed development activities over the past several years in response to market conditions, as the company's wholly owned development pipeline represented just 1.3% of undepreciated book assets as of Dec. 31, 2010, down from 1.4% and 4.2% as of Dec. 31, 2009 and Dec. 31, 2008, respectively. The company has stated that new development starts will focus on build-to-suit projects and medical office buildings, thus minimizing development risk going forward, which Fitch views positively. Duke Realty has adequate liquidity and financial flexibility. As of Dec. 31, 2010, the company had 509 unencumbered properties with a gross book value of $5.8 billion. Unencumbered asset coverage of unsecured debt based on applying an 8.5% cap rate to unencumbered net operating income (NOI) was strong for the 'BBB-' IDR at 2.1x as of Dec. 31, 2010. In addition, total sources of liquidity (unrestricted cash, availability under the unsecured revolving credit facility, and projected retained cash flow from operating activities after dividends) exceed uses of liquidity (pro rata debt maturities, expected recurring capital expenditures, and remaining non-discretionary development costs) by 1.1x for the period Jan. 1, 2011 to Dec. 31, 2012 (assuming that Duke Realty is able to refinance maturing mortgage debt at 80% of the maturing amount). The Stable Outlook is based on Fitch's expectation that leverage and coverage will remain fairly unchanged relative to current levels and the company will maintain adequate liquidity. Fitch's base case assumes that same-store NOI declines by 2% in 2011, grows 1% in 2012 and 2% in 2013. The two notch differential between Duke Realty's IDR and its preferred stock rating is consistent with Fitch's criteria for corporate entities with a 'BBB-' IDR. Based on Fitch's criteria report (Equity Credit for Hybrids & Other Capital Securities'), the company's preferred stock is 75% equity-like and 25% debt-like since it is perpetual and has no covenants but has a cumulative deferral option in a going concern. These factors may have a positive impact on the ratings and/or Outlook: -- Net debt to recurring operating EBITDA sustains below 6.0x (as of Dec. 31, 2010, leverage was 7.2x); -- Fixed-charge coverage sustains above 2.0x (in 2010, coverage was 1.5x). These factors may have a negative impact on the ratings and/or Outlook: -- Fixed-charge coverage sustains below 1.3x; -- Net debt to recurring operating EBITDA sustains above 8.0x. Duke Realty is a self-managed REIT headquartered in Indianapolis that specializes in the ownership, management and development of bulk industrial, suburban office, and medical office buildings. The company owns, maintains an interest in, or has under development 792 properties containing more than 139 million rentable square feet in 18 major U.S. cities. As of Dec. 31, 2010, the company had approximately $8.9 billion in undepreciated book assets. DYNAVAX TECHNOLOGIES: Purchase and Sale Pact Kept Confidential -------------------------------------------------------------- Dynavax Technologies Corporation submitted an application under Rule 24b-2 requesting an extension of a previous grant of confidential treatment for information it excluded from the Exhibits to a Form 10-Q filed on Aug. 4, 2006. Based on representations by Dynavax Technologies Corporation that this information qualifies as confidential commercial or financial information under the Freedom of Information Act, 5 U.S.C. 552(b)(4), the Division of Corporation Finance has determined not to publicly disclose it. Accordingly, a definitive Commercial Agreement with Rhein Biotech NV and Rhein Biotech GmbH dated April 21, 2006, and a Share Sale and Purchase Agreement will not be released to the public until through March 27, 2016 . About Dynavax Technologies Berkeley, Calif.-based Dynavax Technologies Corporation (NASDAQ: DVAX) -- http://www.dynavax.com/-- is a clinical-stage biopharmaceutical company. The Company discovers and develops novel products to prevent and treat infectious diseases. The Company's lead product candidate is HEPLISAV, an investigational adult hepatitis B vaccine designed to enhance protection more rapidly and with fewer doses than current licensed vaccines. As of Sept. 30, 2010, the Company had $61,790,000 in total assets; $21,026,000 total current liabilities, $6,012,000 deferred revenue, $10,540,000 long-term note payable to holdings, $944,000 long-term contingent liability to holdings, and $60,000 other long-term liabilities, and $23,208,000 in stockholders' equity. As reported in the Troubled Company Reporter on March 18, 2010, Ernst & Young LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations since its inception. ELLIPSO INC: Court Affirms CEO's $3,167 Expense Claim ----------------------------------------------------- Bankruptcy Judge S. Martin Teel, Jr., denied the motion of Mann Technologies, LLC, Robert B. Patterson, John B. Mann, and The Registry Solutions Company to alter or amend a Feb. 7, 2011 order allowing David Castiel's claim for $3,167 in expenses. David Castiel, founder and CEO of Ellipso, Inc., filed a proof of claim seeking several million dollars in unpaid wages and unreimbursed expenses. The Mann Creditors filed an objection to Mr. Castiel's proof of claim, and in a Memorandum Decision and separate order entered on Feb. 7, 2011, the Court sustained in part and overruled in part the Mann Creditor's objection, leaving Mr. Castiel with an allowed claim for $3,167 in unreimbursed expenses. The Mann Creditors contend that to the extent that the Court elected to treat Mr. Castiel's expense claim separately from his unpaid compensation claim, Mr. Castiel's $3,167 un-reimbursed expense claim was more than offset by the Debtor's payment of $28,273 of Mr. Castiel's personal expenses in the 12 months prior to the petition date. The Court held that the account reconciliation Mr. Castiel attached to his proof of claim and introduced into evidence at the hearing on the objection to his claim shows that he had been advancing money to Ellipso and had been paying Ellipso expenses since as early as June 2003. A copy of the Court's April 13, 2011 Memorandum Decision is available at http://is.gd/vi78g8from Leagle.com. Ellipso, Inc., filed for Chapter 11 bankruptcy (Bankr. D. D.C. Case No. 09-00148) on February 25, 2009. Kermit A. Rosenberg, Esq. -- krosenberg@tighepatton.com -- at Tighe Patton Armstrong Teasdale, PLLC, in Washington, DC, serves as the Debtor's counsel. In its petition, the Debtor estimated under $50,000 in assets and $1 million to $10 million in debts. ELM STREET: Amends List of 20 Largest Unsecured Creditors --------------------------------------------------------- Elm Street Partners, LLC, filed with the U.S. Bankruptcy Court for the Central District of California an amended list of 20 largest unsecured creditors. The Debtor's 20 largest unsecured creditors as of March 23 are: Entity Nature of Claim Claim Amount ------ --------------- ------------ Construction Management and Lien $198,320 Supervision 1400 Ventura Blvd., #206 Sherman Oaks, CA 91423 Karl Brook Lien $154,132 dba Karl Rex Brook Construction 2774 Sawtelle Blvd. Los Angeles, CA 90064 Clifford Muller Promissory Note $140,000 14200 Ventura Blvd., Suite 206 Sherman Oaks, CA 91423 Jeffrey Segal Legal Fees $90,000 9200 West Sunset Boulevard, 9th Floor Los Angeles, CA 90069 Joseph D. Block Promissory Note $85,000 9200 W. Sunset Blvd., 9th Floor Los Angeles, CA Express Flooring 2000 Lien $61,149 dba Roma Flooring 1440 S. State College Blvd., #6M Anaheim, CA 92806 Loreno Leandro Lien $55,963 dba Ultimate Painting Services 23849 Minnequa Dr. Diamond Bar, CA 91765 Joe And Caron Block Promissory Note $50,000 716 26th Street Santa Monica, CA 90402 Ontario Refrigeration Service Inc. Lien $45,619 6002 San Fernando Rd. Glendale, CA 91202 Steven J. Revitz Legal Fees $21,838 Raieken & Revitz 2049 Century Park East, Suite 3110 Los Angeles, CA 90087 The Floor Club Fees $19,938 8431 Canoga Avenue, Suite A Canoga Park, CA 91304 Hakim Electric Lien $19,068 5618 Venice Blvd. Los Angeles, CA 90019 Vertical Solutions, Inc. Lien $18,865 7428 Redwood Blvd., Suite 101 Novato, CA 94945 Eaglestone Pacific Lien $16,108 15942 Arminta St. Van Nuys, CA 91406 IZ Construction, Inc. Fees $12,963 12165 Branford Street, #Q Sun Valley, CA 91352 Emanuel Napolitano Fees $12,400 Craig Fire Protection Co. Inc. Lien $10,790 Imperial Windows & Doors Fees $10,490 Rolling Stone Tile & Marble Lien $9,437 Pico Cabinets & Contracting, Inc. Lien $9,122 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. ELM STREET: Creditors Have Until June 15 to File Proofs of Claim ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, has set June 15, 2011, for creditors to file proofs of claim against Elm Street Partners, LLC's estate. The exceptions to the Bar Date are (1) claims arising from rejection of executory contracts or unexpired leases, (2) claims of governmental units, and (3) claims arising as the result of the avoidance of transfer pursuant to Chapter 5 of the Bankruptcy Code. For rejection damages, the last day to file a proof of claim is (a) 30 days after the date of entry of the order authorizing the rejection, or (b) June 15, 2011, whichever is later. Governmental units' claims are timely filed if filed before September 5, 2011, or by June 15, 2011. For claims arising from the avoidance of transfer pursuant to Chapter 5 of the Bankruptcy Code, the last day to file a proof of claim is (a) 30 days after the entry of judgment avoiding the transfer, or (b) June 15, 2011, whichever is later. 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. ELM STREET: Files Schedules of Assets and Liabilities ----------------------------------------------------- Elm Street Partners, LLC, filed with the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $0 B. Personal Property $318,418 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $17,316,855 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $225,047 ----------- ----------- TOTAL $318,418 $17,541,903 A copy of the Schedules of Assets and Liabilities is available at http://bankrupt.com/misc/ElmStreet_SAL.pdf 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. EMIVEST AEROSPACE: Court Approves Sale of San Antonio Headquarters ------------------------------------------------------------------ Dow Jones' DBR Small Cap reports that a Delaware bankruptcy judge has granted permission for Emivest Aerospace Corp. to take flight from its San Antonio headquarters. The real-estate lease for the 130,000-square-foot hangar and office space used by the Texas manufacturer, which struggled to profit from its vision for high- speed corporate jet travel, fetched a $1.64 million winning bid at an auction held Wednesday. The deal, which Judge Mary Walrath 2approved Thursday, gives permission for another Texas company called Smart Traveling Inc. to take over the $100,000-a-year lease, which runs until 2016. Representatives for that company couldn't be reached. Smart Traveling agreed to offer $1.25 million as the first bid at auction, but it later competed against another bidder, leading the price to increase. Distressed property specialist Hilco Real Estate helped market the space, which sits at the edge of the San Antonio airport's main runway, as a good spot for companies in the aviation and defense industry. About Emivest Aerospace Emivest Aerospace Corporation -- http://www.sj30jet.com/-- is a U.S.-based aircraft manufacturing company and a subsidiary of Emirates Investment & Development PSC. Emivest Aerospace Corporation produces the SJ30 light jet. Emivest Aerospace Corporation filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-13391) on Oct. 20, 2010. Emivest estimated assets and debts between $50 million and $100 million. Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, serves as counsel to the Debtor. Morgan Joseph & Co. Inc. is the financial advisor to the Debtor. The Debtor also hired DLA Piper LLP (US) as special counsel to assist in the marketing of its assets. Attorneys at Pachulski Stang Ziehl & Jones LLP serve as counsel to the Official Committee of Unsecured Creditors. Deloitte Financial Services LLP is the Committee's financial advisor. ENCINO CORPORATE: Files for Chapter 11 in California ---------------------------------------------------- Encino Corporate Plaza, L.P., filed a bare-bones Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-14917) on April 20, 2011, in San Fernando Valley, California. The Encino, California-based Company estimated assets and debts of $10 million to $50 million as of the Chapter 11 filing. According to the petition, the Debtor is a "Single Asset Real Estate" debtor as defined in 11 U.S.C. Sec. 101(51B). M. Aaron Yashouafar, chief executive of ECP Building, Inc., as general partner of the Debtor, signed the Chapter 11 petition. According to a court filing, the Yashouafar family owns 96.99% of the stock of the Debtor. The Debtor is represented by David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, California. ENCINO CORPORATE: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Encino Corporate Plaza, L.P. 16661 Ventura Boulevard Encino, CA 91436 Bankruptcy Case No.: 11-14917 Chapter 11 Petition Date: April 20, 2011 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Geraldine Mund Debtor's Counsel: David L. Neale, Esq. LEVENE NEALE BENDER RANKIN & BRILL LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 Fax: (310) 229-1244 E-mail: dln@lnbrb.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by M. Aaron Yashouafar, chief executive officer of ECP Building, Inc., general partner. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kadima Security Services -- $195,652 660 S. Figueroa Street, Suite 1880 Los Angeles, CA 90017 Emercon Construction -- $76,558 500 N. State College Boulevard, Suite 1100 Orange, CA 92868 Chase Construction -- $50,543 1825 Padora Avenue Los Angeles, CA 90025 Department of Water and Power -- $48,959 Cal System -- $14,548 Avis Maid and Janitorial Service -- $4,608 All Safe Electric -- $3,613 City of Los Angeles - Dept of Fire -- $2,652 Elevator Dynamics -- $1,947 Parkway Electric Co -- $1,903 JBS Glass Inc. -- $1,700 Sprint -- $1,677 Waste Management -- $1,419 The Gas Company -- $1,169 Fireguard -- $1,141 Benny's Design -- $1,000 Servicon Systems, Inc. -- $885 Steam N Clean -- $650 Chem Pro Laboratory -- $560 Mobil Delivery Service -- $447 FAIRPOINT COMMUNICATIONS: District Judge Affirms Plan Approval -------------------------------------------------------------- Carla Main at Bloomberg News reports that FairPoint Communications Inc. won affirmation of its reorganization plan by a federal judge who rejected Verizon Communications Inc.'s appeal of bankruptcy court approval. U.S. District Judge Colleen McMahon in New York ruled April 19 that the bankruptcy court had the authority to confirm FairPoint's Chapter 11 plan in January over Verizon's objections. The report recounts that Verizon, the second-largest U.S. telephone company, appealed the confirmation by U.S. Bankruptcy Judge Burton R. Lifland, charging that the plan improperly prevented Verizon from pursuing legal claims against other parties in the case. Judge McMahon said the appeal was moot in part because FairPoint has emerged from Chapter 11 creditor protection. "The plan has been substantially consummated and Verizon waived its right to object by not obtaining a stay of the confirmation order," Judge McMahon wrote. The appeal is In re FairPoint Communications Inc., 11-00946 (D. N.Y.). Under the Plan, lenders would take ownership of the Company. About FairPoint Communications FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. FairPoint and its affiliates filed for Chapter 11 protection on October 26, 2009 (Bankr. S.D.N.Y. Case No. 09-16335). Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP, as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is the claims and notice agent. As of June 30, 2009, FairPoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in stockholders' equity. Andrews Kurth is counsel to the Official Committee of Unsecured Creditors. Altman Vilandrie is the operational consultant to the Creditors' Committee. Verrill Dana is the Creditors' Committee's special regulatory counsel. Jeffries serves as the Creditors' Committee's financial advisor. FairPoint Communications on January 24, 2011, successfully completed its balance sheet restructuring and emerged from Chapter 11. As a result of the restructuring, FairPoint has reduced its outstanding debt by approximately 64%, from approximately $2.8 billion (including interest rate swap liabilities and accrued interest) to approximately $1.0 billion. In addition, the Company has a $75 million revolving credit facility available for working capital and general corporate purposes. Existing stock in the Company was cancelled and holders did not receive any distributions. * * * This concludes the Troubled Company Reporter's coverage of FairPoint Communications until facts and circumstances, if any emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. FIRST SECURITY: Incurs $44.34 Million Net Loss in 2010 ------------------------------------------------------ First Security Group, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $44.34 million on $54.91 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $33.45 million on $64.00 million of total interest income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.16 billion in total assets, $1.07 billion in total liabilities, and $93.37 million in stockholders' equity. Joseph Decosimo and Company, PLLC, in Chattanooga, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred losses from operations for the past two years. The Company is also operating under formal supervisory agreements with the Federal Reserve Bank of Atlanta and the Office of the Comptroller of the Currency and is not in compliance with all provisions of the Agreements. Failure to achieve all of the Agreements' requirements may lead to additional regulatory actions. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/mZ5QCK About First Security Group First Security Group, Inc., is a bank holding company headquartered in Chattanooga, Tennessee, with $1.2 billion in assets as of Sept. 30, 2010. Founded in 1999, First Security's community bank subsidiary, FSGBank, N.A., has 37 full- service banking offices, including the headquarters, along the interstate corridors of eastern and middle Tennessee and northern Georgia and 325 full-time equivalent employees. In Dalton, Georgia, FSGBank operates under the name of Dalton Whitfield Bank; along the Interstate 40 corridor in Tennessee, FSGBank operates under the name of Jackson Bank & Trust. On Sept. 7, 2010, the Company entered into a Written Agreement with the Federal Reserve Bank of Atlanta, the Company's primary regulator, which prohibits the Company from declaring or paying dividends without prior written consent of the Federal Reserve. The Company is also prohibited from taking dividends, or any other form of payment representing a reduction of capital, from the Bank without prior written consent. The Company is also required, within 60 days of the Agreement, to submit to the Federal Reserve a written plan designed to maintain sufficient capital at the Company and the Bank. On April 28, 2010, FSGBank, the Company's wholly-owned subsidiary, consented and agreed to the issuance of a Consent Order by the Office of the Comptroller of the Currency (OCC). Pursuant to that Consent Order, within 120 days of the effective date of the Order, the Bank is required to achieve and thereafter maintain total capital at least equal to 13% of risk-weighted assets and Tier 1 capital at least equal to 9% of adjusted total assets. As of Sept. 30, 2010, the first financial reporting period subsequent to the 120 day requirement, the Bank's total capital to risk-weighted assets was 12.93% and the Tier 1 capital to adjusted total assets was 7.43%. The Bank has notified the OCC of the non-compliance. FIRST SECURITY: Kelly Kirkland Elected to Board of Directors ------------------------------------------------------------ The Board of Directors of First Security Group, Inc., increased the size of its Board of Directors to eight and elected Kelly Peters Kirkland to join the Board of First Security Group, Inc. Ms. Kirkland, age 52, is a 1982 graduate of Mercer University Walter F. George School of Law. Ms. Kirkland was in private practice with the law firm of Leitner, Williams et. al. in Chattanooga for 27 and a half years prior to retiring at the end of 2010. She is a member of the State Bars of Florida, Georgia and Tennessee and a member of the Chattanooga Bar Association. Ms. Kirkland was not selected to serve as a director based on any arrangement or understanding between Ms. Kirkland and any other persons. Ms. Kirkland has not been named to any of the Board's standing committees. In connection with her appointment to the Board, Ms. Kirkland will be entitled to participate in the existing cash and equity compensation programs for the directors of the Company. Specifically, Ms. Kirkland will receive an annual retainer of $19,500. Ms. Kirkland will also be eligible to be paid a $1,000 fee for each Board meeting she attends. In the event she is appointed to one or more committees of the Board, she will be entitled to be paid a $500 fee for each such meeting she attends. Should she participate in a Board or committee meeting via teleconference, she will receive 50% of the standard meeting fee. Like other members of the Board of Directors, Ms. Kirkland will be eligible to receive an annual grant of 5,000 stock options under the Company's 2002 Long-Term Incentive Plan. Prior to her election to the Board of Directors, Ms. Kirkland, members of her family, and her affiliated business interests have engaged in banking transactions with FSGBank in the ordinary course of FSGBank's business. These banking transactions were made in the ordinary course of business, were made on substantially the same terms as those prevailing at the time for comparable transactions with persons not related to FSGBank, and do not involve more than the normal risk of collectability or present other unfavorable features. Ms. Kirkland's spouse is a salaried project manager at Bruce Goodwin, Inc., a general construction firm located in Chattanooga, Tennessee. Over the last three years, Bruce Goodwin, Inc., has provided a variety of construction work for First Security Group, Inc. and FSGBank, for which First Security has paid Bruce Goodwin, Inc. a total of $105 thousand in 2008, $1,186 thousand in 2009, $329 thousand in 2010 and $90 thousand to-date in 2011. Mr. Kirkland occasionally works on projects at Bruce Goodwin, Inc. for First Security, but his compensation is not affected by work done for First Security. Bruce Goodwin, Inc. is wholly-owned by Bruce Goodwin, who is Mr. Kirkland's brother-in-law. First Security believes the construction work provided by Bruce Goodwin, Inc. was done in the ordinary course of business and on substantially the same terms as those prevailing at the time for comparable transactions. About First Security Group First Security Group, Inc., is a bank holding company headquartered in Chattanooga, Tennessee, with $1.2 billion in assets as of Sept. 30, 2010. Founded in 1999, First Security's community bank subsidiary, FSGBank, N.A., has 37 full- service banking offices, including the headquarters, along the interstate corridors of eastern and middle Tennessee and northern Georgia and 325 full-time equivalent employees. In Dalton, Georgia, FSGBank operates under the name of Dalton Whitfield Bank; along the Interstate 40 corridor in Tennessee, FSGBank operates under the name of Jackson Bank & Trust. On Sept. 7, 2010, the Company entered into a Written Agreement with the Federal Reserve Bank of Atlanta, the Company's primary regulator, which prohibits the Company from declaring or paying dividends without prior written consent of the Federal Reserve. The Company is also prohibited from taking dividends, or any other form of payment representing a reduction of capital, from the Bank without prior written consent. The Company is also required, within 60 days of the Agreement, to submit to the Federal Reserve a written plan designed to maintain sufficient capital at the Company and the Bank. On April 28, 2010, FSGBank, the Company's wholly-owned subsidiary, consented and agreed to the issuance of a Consent Order by the Office of the Comptroller of the Currency (OCC). Pursuant to that Consent Order, within 120 days of the effective date of the Order, the Bank is required to achieve and thereafter maintain total capital at least equal to 13% of risk-weighted assets and Tier 1 capital at least equal to 9% of adjusted total assets. As of Sept. 30, 2010, the first financial reporting period subsequent to the 120 day requirement, the Bank's total capital to risk-weighted assets was 12.93% and the Tier 1 capital to adjusted total assets was 7.43%. The Bank has notified the OCC of the non-compliance. The Company reported a net loss of $44.34 million on $54.91 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $33.45 million on $64.00 million of total interest income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.16 billion in total assets, $1.07 billion in total liabilities and $93.37 million in total stockholders' equity. Joseph Decosimo and Company, PLLC, in Chattanooga, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred losses from operations for the past two years. The Company is also operating under formal supervisory agreements with the Federal Reserve Bank of Atlanta and the Office of the Comptroller of the Currency and is not in compliance with all provisions of the Agreements. Failure to achieve all of the Agreements' requirements may lead to additional regulatory actions. FONIX CORP: G. Steedley and B. Jordan Resign From Board ------------------------------------------------------- Gilbert Steedley and Barry Jordan each notified Fonix Corporation that they would resign effective March 30, 2011, from their positions as members of the board of directors of the Company. The Company expresses appreciation to Messrs. Steedley and Jordan for their valuable service. With the resignations, the Company's board of directors now consists of Mr. Roger D. Dudley, Mr. Von H. Whitby, and Mr. Steven G. Jones. On April 15, 2011, the board of directors of the Company approved a plan to spin-off the Company's subsidiary, Fonix Speech, Inc. Under the proposed spin-off, the Company's common and preferred shareholders will receive shares in Fonix Speech proportional to their shareholdings in the Company. Historically, the Company's operations have been conducted through its two wholly-owned subsidiaries, Fonix Speech and Fonix GS Acquisition Co., Inc. Fonix Speech provides value-added speech-enabling technologies, speech interface development tools, and speech solutions and applications, including automated speech recognition and text-to- speech that empower consumers to interact conversationally with information systems and devices. Fonix Speech offers its speech- enabling technologies to markets for personal software for consumer applications including video games, e.Dictionaries and mobile navigation devices with GPS, wireless and mobile devices, computer telephony, and server solutions. The Company's directors believe the proposed spin-off will preserve the value of the speech and voice recognition assets and business of Fonix Speech for the shareholders of the Company. They believe the Spin-off will permit the development of that business by facilitating separate audits of Fonix Speech, and future investment in Fonix Speech, in addition other benefits. The spin-off plan includes the following: * The filing with the Securities and Exchange Commission of a registration statement on Form 10 under the Securities Exchange Act of 1934, for the purpose of registering the common stock of Fonix Speech and causing Fonix Speech to become subject to the information reporting requirements and other conditions of a reporting company under Exchange Act; * The assignment from the Company to Fonix Speech of certain liabilities of the Company primarily associated with the core technologies and speech products of Fonix Speech; * The settlement by the Company or Fonix Speech of other obligations of the Company; and * The distribution to the common and preferred shareholders of the Company, on a pro rata basis, of all outstanding shares of common stock of Fonix Speech. The distribution date for the delivery of shares of Fonix Speech to be issued in the spin-off has not been determined, and is subject to the satisfaction of a number of conditions, including these: * The Form 10 will have been filed with the Commission, and an information statement satisfying the requirements of the Commission will have been filed with the Commission and mailed to all common and preferred shareholders of the Company; * All government approvals and other necessary consents will have been obtained; * Certain waivers and releases of rights, or settlements of claims, will have been obtained from certain creditors and preferred shareholders of the Company; and * No events or developments will have occurred that, in the discretion of the board of directors of the Company, would prohibit the distribution, or would result in the distribution not being in the best interests of the Company, its shareholders and creditors. Even if the foregoing conditions are satisfied, the Company and Fonix Speech may agree to amend or abandon any and all terms of the proposed distribution at any time prior to the distribution. Accordingly, there can be no assurance that the proposed spin-off will take place. If the spin-off is completed, it is anticipated that Fonix Speech will be a separate public reporting company, and that Fonix Speech will take steps to have its shares quoted in an over-the-counter market. About Fonix Corp Fonix Corporation's operations are managed through two wholly owned subsidiaries, Fonix Speech, Inc., and Fonix GS Acquisition Co., Inc. Fonix Speech provides value-added speech-enabling technologies, speech interface development tools, and speech solutions and applications, including automated speech recognition and text-to-speech, that empower users to interact conversationally with information systems and devices. Fonix GS was formed on June 27, 2008, to facilitate the acquisition of Shanghai Gaozhi Software Systems Limited. The acquisition was completed in early 2009. GaozhiSoft is a Chinese software developer and solutions provider in 2G (second-generation) and 3G (third-generation) telecommunication operation support systems in China and throughout the Asian-Pacific region. GaozhiSoft's products are designed to increase data transferring speed, reduce telecommunications data loss, and provide network management, billing accuracy and improved implementation techniques to telecom carriers. Fonix last filed financial statements with the U.S. Securities and Exchange Commission in 2009. As reported by the Troubled Company Reporter on Dec. 7, 2009, Fonix reported net income of $230,000 for the three months ended September 30, 2009, from a net loss of $1,701,000 for the year ago period. Fonix posted a net loss of $50,000 for the three months ended September 30, 2009, from a net loss of $4,035,000 for the year ago period. Fonix said it expects to continue to incur significant losses and negative cash flows from operating activities at least through Dec. 31, 2009, primarily due to expenditure requirements associated with continued marketing and development of its speech-enabling technologies. At Sept. 30, 2009, the Company had $4,133,000 in total assets against $50,132,000 in total liabilities, all current, resulting in $45,999,000 in stockholders' deficit. As of Sept. 30, 2009, the Company had an accumulated deficit of $288,839,000; negative working capital of $46,725,000; derivative liabilities of $36,460,000 related to the issuance of Series P Preferred Stock, Series L Preferred Stock, Series M Preferred Stock, Series N Preferred Stock, Series O Preferred Stock and Series E Convertible Debentures and Series B Preferred Stock of its subsidiary, Fonix Speech; accrued liabilities of $8,942,000; accrued payroll and other compensation of $902,000; accounts payable of $2,215,000; related party accounts payable of $107,000; tax payable of $29,000; deferred tax liabilities of $228,000; related party notes payable of $777,000; and deferred revenues of $465,000. FREEDOM COMMUNICATIONS: Creditors Pursue Hoiles Family ------------------------------------------------------ Dow Jones' Daily Bankruptcy Review reports that creditors are still in hot pursuit of members of the Hoiles family and other former leaders who allegedly let Freedom Communications Inc. sink into bankruptcy while they fretted over their "estate planning." About Freedom Communications Freedom Communications, in Irvine, California, is a national privately owned media company operating print publications, broadcast television stations and interactive businesses. The company's print portfolio includes approximately 100 daily and weekly publications, plus ancillary magazines and other specialty publications. The broadcast company's stations -- five CBS, two ABC network affiliates and one CW affiliate -- reach more than 3 million households across the country. The Company's news, information and entertainment websites complement its print and broadcast properties. Freedom Communications filed for Chapter 11 on Sept. 1, 2009 (Bankr. D. Del. Case No. 09-13046). Attorneys at Young Conaway Stargatt & Taylor, and Latham & Watkins LLP served as Chapter 11 counsel. Houlihan, Lokey, Howard & Zukin, Inc., served as financial advisors while AlixPartners LLC served as restructuring consultants. Logan & Co. served as claims and notice agent. Freedom Communications had $757,000,000 in assets against debts of $1,077,000,000 as of July 31, 2009. The Bankruptcy Court confirmed Freedom Communications' Plan of Reorganization on March 9, 2010. The Plan became effective April 30, 2010. The Plan, which was supported by the Steering Committee of the Company's secured lenders and the Official Committee of Unsecured Creditors, eliminated $450 million of debt from Freedom's balance sheet. GAMETECH INTERNATIONAL: Four Directors Elected at Annual Meeting ---------------------------------------------------------------- The annual meeting of stockholders of GameTech International, Inc., was held on April 13, 2011. At the annual meeting, the Company's stockholders: (i) elected four directors to serve as a Company director until the next annual meeting of stockholders; (ii) approved the appointment of Piercy Bowler Taylor & Kern as the Company's independent public accountants for the fiscal year ending Oct. 30, 2011; and (iii) adopted the Company's 2011 Stock Incentive Plan. The newly elected directors are Richard H. Irvine, Kevin Y. Painter, Scott H. Shackelton, and Donald K. Whitaker. About GameTech Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. Piercy Bowler Taylor & Kern, in Las Vegas, Nevada, expressed substantial doubt about GameTech International, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered reoccurring losses from operations and has been unable to extend the maturity of its debt, or raise additional capital necessary to execute its business plan. The Company's balance sheet at Jan. 30, 2011 showed $40.86 million in current assets, $31.47 million in current liabilities and $9.39 million in total stockholders' equity. GARRISON ROAD: Court Dismisses Involuntary Chapter 11 Case ---------------------------------------------------------- Judge Thomas J. Catliota of the U.S. Bankruptcy Court for the District of Maryland, at Greenbelt, issued an order dismissing the involuntary Chapter 11 case of Garrison Road, LLC, for failure by the parties-in-interest to show cause why the case should not be dismissed. The automatic stay imposed by Section 362(a) is terminated. About Garrison Road, LLC KH Funding Co. filed an involuntary Chapter 11 petition for Potomac, Maryland-based Garrison Road, LLC, on June 25, 2010 (Bankr. D. Md. Case No. 10-24344). Lawrence Coppel, Esq., represents KH Funding. GATEHOUSE MEDIA: Bank Debt Trades at 56% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Gatehouse Media, Inc., is a borrower traded in the secondary market at 44.40 cents- on-the-dollar during the week ended Friday, April 22, 2011, an increase of 0.30 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on February 27, 2014, and carries Moody's Ca rating and Standard & Poor's CCC- rating. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Gatehouse Media, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $26.64 million on $558.58 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $530.61 million on $584.79 million of total revenue for the year ended Dec. 31, 2009. The Company reported net income of $1.10 million on $143.36 million of revenue for the three months ended Dec. 31, 2010, compared with a net loss of $4.27 million on $150.16 million of total revenue for the same period during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $546.32 million in total assets, $1.33 billion in total liabilities and a $792.12 million stockholders' deficit. GateHouse Media, Inc. -- http://www.gatehousemedia.com/-- headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by its 97 daily publications. GateHouse Media currently serves local audiences of more than 10 million per week across 21 states through hundreds of community publications and local Web sites. GEORGE MASSEY: Court Affirms Ruling on Law Firm's Fees ------------------------------------------------------ Bankruptcy Judge Elizabeth W. Magner denied a request by Gordon, Arata, McCollam, Duplantis & Eagan, LLC, for the court to reconsider its prior order denying the firm's Third and Final Application for Allowance of Fees and Costs in the bankruptcy case of George H. Massey and Sharron Beach Massey. The firm represented the Masseys as chapter 11 counsel, before the case was converted to Chapter 7 liquidation. In her April 19, 2011 Reasons for Decision, Judge Magner said nothing presented by the firm's Motion raises any issues that would support its granting. Specifically, the Court held that its Opinion does not contain manifest error of law or fact. The firm's Motion is merely a regurgitation of its prior arguments, facts, and policies already considered by the Court in the Opinion. A copy of the Court's April 19 decision is available at http://is.gd/jrzaq3from Leagle.com. George H. Massey, Jr. and Sharron Beach Massey in New Orleans, Louisiana, filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 06-11338) on Nov. 29, 2006, represented by Phillip K. Wallace, PLC. In their petition, the Masseys estimated $1 million to $100 million in both assets and debts. GLC LIMITED: Wants to Hire Leon E. Ebbert as Accountants -------------------------------------------------------- GLC Limited seeks authority from the U.S. Bankruptcy Court for the Southern District of Ohio, Western Division, to employ Leon E. Ebbert, PC, CPA, as accounts, nunc pro tunc to the Petition Date. Ebbert will be responsible for, among other things, preparing the Debtor's payroll, certain financial statements, tax returns, and bankruptcy schedules. Ebbert's duties and responsibilities will be consistent with the typical responsibilities of an accountant. Leon E. Ebbert assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors' estates. About GLC Limited Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 11-11090) on Feb. 28, 2011. James R. Burritt, chief restructuring officer, signed the Chapter 11 petition. The Debtor estimated its assets and debts at $10 million to $50 million. Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 bankruptcy case has tapped Morris, Manning & Martin, LLP, as counsel. GLC LIMITED: Taps James Burritt as Chief Restructuring Officer -------------------------------------------------------------- GLC Limited seeks authority from Judge Jeffery P. Hopkins of the U.S. Bankruptcy Court for the Southern District of Ohio, Western Division, to employ James Burritt as chief restructuring officer, nunc pro tunc the Petition Date. In December 2010, the Debtor employed Mr. Burritt of MainStream Management as its chief restructuring officer and to provide it management and advisory services. Pursuant to a resolution, the Company's board of directors authorized Mr. Burritt to act on behalf of the Debtor in its Chapter 11 case and in the operation of the businesses of the Debtor. Mr. Burritt, as Chief Restructuring Officer of the Debtor, will be responsible for day-to-day executive management and operational issues of the Debtor. His duties and responsibilities will be comparable to those typically held by a chief executive officer, the Debtor said in court papers. In addition, Mr. Burritt will be responsible for evaluating the assets of the Debtor and determining the method that will return the highest value to creditors and the Debtor's chapter 11 estate. Mr. Burritt will be paid an hourly fee of $315 and receive a success fee equal to 2%, payable on the gross proceeds returned to the creditors and other interested parties pursuant to a plan of reorganization confirmed by the Court. Mr. Burritt will also be reimbursed for any necessary out-of-pocket expenses. The maximum available fee to Mr. Burritt when combining the Weekly Fee with the Success Fee will not exceed $10,000 per week. He will not be entitled to collect a Success Fee on any inventory sales that occur on or after June 18, 2011. Any fees earned or due after June 18, 2011 will be paid on an hourly basis as a Weekly Fee, subject to the $8,820 per week cap and pursuant to a budget agreed to by the Official Committee of Unsecured Creditors. Mr. Burritt assures the Court that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor's estates. Mr. Burritt, however, discloses that, through Mainstream, he received a $30,000 retainer in connection with preparing for the filing of the Debtor's bankruptcy case. He also discloses that within one year prior to the Petition Date, he received a total of $52,921 as payment for prepetition fees and expenses. About GLC Limited Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 11-11090) on Feb. 28, 2011. James R. Burritt, chief restructuring officer, signed the Chapter 11 petition. The Debtor estimated its assets and debts at $10 million to $50 million. Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 bankruptcy case has tapped Morris, Manning & Martin, LLP, as counsel. GLC LIMITED: Court Okays Morrison Manning as Committee's Counsel ---------------------------------------------------------------- Judge Jeffery P. Hopkins of the U.S. Bankruptcy Court for the Southern District of Ohio, Western Division, authorized the Official Committee of Unsecured Creditors of GLC Limited to retain Morris, Manning & Martin, LLP, as its counsel, nunc pro tunc to March 4, 2011. About GLC Limited Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 11-11090) on Feb. 28, 2011. James R. Burritt, chief restructuring officer, signed the Chapter 11 petition. The Debtor estimated its assets and debts at $10 million to $50 million. Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 bankruptcy case has tapped Morris, Manning & Martin, LLP, as counsel. GLOBAL MED: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Global Med Services, Inc. 16429 Berwyn Road Cerritos, CA 90703 Bankruptcy Case No.: 11-27149 Chapter 11 Petition Date: April 20, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Alan M. Ahart Debtor's Counsel: Miyun Lim, Esq. LAW OFFICES MIYUN TERI LIM & ASSOCIATES 3701 Wishire Boulevard, Suite 1025 Los Angeles, CA 90010 Tel: (231) 389-3557 Fax: (323) 927-3623 E-mail: teribklaw@gmail.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/cacb11-27149.pdf The petition was signed by Kwang (John) Chang, CEO. GMX RESOURCES: S&P Assigns 'B-' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'B-' corporate credit rating to Oklahoma City-based GMX Resources Inc. The outlook is stable. S&P noted, "At the same time we assigned a 'B-'issue rating to GMX's $200 million senior unsecured notes due 2019. We assigned a '4' recovery rating to the notes, indicating our expectation of average (30% to 50%) recovery for lenders in the event of a payment default." Proceeds from the notes offering and a concurrent $100 million common stock offering should be used to refinance existing debt as well as fund near-term capital spending. "The ratings on GMX Resources Inc. reflect the company's limited scale of operations, meaningful exposure to weak natural gas prices, a very aggressive near-term spending plan, limited liquidity beyond 2011, and elevated debt leverage," said Standard & Poor's credit analyst Paul B. Harvey. "Near-term credit quality will benefit from the liquidity provided by GMX's $200 million senior unsecured note issuance and concurrent $100 million common equity offering, as well as expectations for growing production from its Haynesville Shale development," S&P related. The stable outlook reflects the benefits from GMX's favorable hedges, expectations for growing production, and the liquidity provided by the concurrent debt and equity offerings. Ratings could be lowered if GMX fails too maintain sufficient liquidity, $30 million or greater, or if its drilling program is unsuccessful. Given the company's aggressive capital spending and less than adequate liquidity, positive rating actions are not currently expected within the next 12 to 18 months. GRAPHIC PACKAGING: Fitch Holds 'B' IDR; Revises Outlook to Pos. --------------------------------------------------------------- Fitch Ratings has revised the Rating Outlook of Graphic Packaging Holding Company's (GPK) debt securities to Positive from Stable. Approximately $2.9 billion in debt and credit commitments are affected. GPK is about to close on a sale to the public of around 40.5 million common shares before underwriters' overallotment, following the placement of 6.5 million shares held by the Coors Trust. Fitch expects the sale will net the company around $200 million. GPK plans to use some portion of the proceeds to pay for Oroville, CA-based Sierra Pacific Packaging Inc. at a cost of $53.5 million. The rest of the proceeds will be used to pay down debt. This decision advances the company almost a year in debt repayment from free cash flow and will lower the company's debt/EBITDA from 4.6 times (x) at last fiscal year-end to approximately 4.3x. GPK is striving to de-leverage a further $200-$220 million with cash from operations this year which, if successful, could see leverage fall below 4.0x. Last year GPK earned $563 million in EBITDA and repaid $221 million in debt. Paperboard pricing and demand favor another decent year in 2011. GPK also has a strong liquidity position with a light debt maturity profile. At the end of last December GPK had almost $139 million in cash on hand and an unused $400 million secured revolver (apart from letters of credit). Near term maturities of debt over the next two years do not exceed $20 million per year. Fitch affirms these ratings: -- Issuer Default Rating (IDR) at 'B'; -- Senior secured revolver at 'BB/RR1'; -- Senior secured term loans at 'BB/RR1'; -- Senior unsecured bonds at 'B/RR4'; -- Senior subordinated notes at 'CCC/RR6'. The Rating Outlook is revised to Positive from Stable. GREAT ATLANTIC & PACIFIC: Teamsters Balk at Bid to Reject Pensions ------------------------------------------------------------------ Dow Jones' Daily Bankruptcy Review reports that Teamsters union, which represents hundreds of retired truck drivers and warehouse workers who once moved products for Great Atlantic & Pacific Tea Co., has raised concerns about the company's plan to void its pension agreement. About Great Atlantic & Pacific Founded in 1859, Montvale, New Jersey-based Great Atlantic & Pacific is a leading supermarket retailer, operating under a variety of well-known trade names, or "banners" across the mid- Atlantic and Northeastern United States. It operates 395 supermarkets, combination food and drug stores, beer, wine, and liquor stores, and limited assortment food stores in Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and the District of Columbia. "Banners" include A&P (101 stores), Food Basics (12 stores), Pathmark (128 stores), Super Fresh (57 stores), The Food Emporium (16 stores), and Waldbaum's (59 stores). A&P employs roughly 41,000 employees, including roughly 28,000 part-time employees. Roughly 95% of the workforce are covered by collective bargaining agreements. A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010 in White Plains, New York. In its petition, A&P reported total assets of $2.5 billion and liabilities of $3.2 billion as of Sept. 11, 2010. Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C. Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. Lazard Freres & Co. LLC is the financial advisor. Huron Consulting Group is the management consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represent the Official Committee of Unsecured Creditors. GREYSTONE LOGISTICS: Incurs $101,558 Loss in Feb. 28 Quarter ------------------------------------------------------------ Greystone Logistics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $101,558 on $4.20 million of sales for the three months ended Feb. 28, 2011, compared with a net loss of $76,298 on $3.54 million of sales for the same period during the prior year. The Company also reported a net loss of $947,894 on $14.25 million of sales for the nine months ended Feb. 28, 2011, compared with a net loss of $2,197 on $11.17 million of sales for the same period during the prior year. The Company's balance sheet at Feb. 28, 2011 showed $10.42 million in total assets, $19.22 million in total liabilities and a $8.80 million total deficit. A full-text copy of the quarterly report on Form 10-Q is available for free at http://is.gd/6QWnKl About Greystone Logistics Tulsa, Okla.-based Greystone Logistics, Inc. (OTC BB: GLGI.OB - News) -- http://www.greystonelogistics.com/-- manufactures and sells plastic pallets through its wholly owned subsidiary, Greystone Manufacturing, LLC. Greystone sells its pallets through direct sales and a network of independent contractor distributors. Greystone also sells its pallets and pallet leasing services to certain large customers direct through its President, Senior Vice President of Sales and Marketing and other employees. As reported in the Troubled Company Reporter on Sept. 17, 2010, HoganTaylor LLP, in Tulsa, Okla., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the fiscal year ended May 31, 2010. The independent auditors noted that at May 31, 2010, the Company has a stockholders' deficit of $7.7 million and a working capital deficit of $12.6 million. HANOVER INSURANCE: Fitch Affirms 'BB' Jr. Sub. Debenture Rating --------------------------------------------------------------- Fitch Ratings has affirmed the 'A-' Insurer Financial Strength (IFS) rating of The Hanover Insurance Company, the principal operating subsidiary of The Hanover Insurance Group (NYSE: THG). Fitch affirms these ratings with a Stable Outlook: The Hanover Insurance Group -- IDR at 'BBB'; -- 7.625% senior unsecured notes due 2025 at 'BBB-'; -- 7.55% senior notes due March 1, 2020 'BBB-'; -- 8.207% junior subordinated debentures due 2027 at 'BB'. The Hanover Insurance Company -- IFS at 'A-'. Citizens Insurance Company of America -- IFS at 'A-'. The Rating Outlook has been revised to Stable from Positive for all ratings. The Outlook revision follows THG's announcement that it has made an offer to acquire Chaucer Holdings PLC (LSE: CHU). While the acquisition would advance THG's specialty strategy and provide scale and earnings diversification benefits, the Rating Outlook revision reflects uncertainty tied to entering a new market outside of the U.S. and ultimately meeting return objectives for the transaction given the cyclical and competitive nature of Chaucer's business, as well as moderate deterioration in several credit factors post-closing. At approximately $500 million, the transaction value is larger than THG's previous acquisitions and represents approximately 20% of its shareholder equity base of $2.5 billion at year-end 2010. In addition, the acquisition is the company's first foray outside the U.S. While THG expects to finance the transaction with a combination of cash on hand and up to $250 million in new senior debt, Fitch notes that this results in pro forma debt-to-capital that will be on the margin of ratings expectations through 2012. Over time however, the transaction is expected to be positive for fixed charge coverage due to expected earnings accretion. Key ratings drivers that could lead to a downgrade include: -- A material addition to CHU's reserves after closing and/or a material deterioration in THG's reserve adequacy; -- A material deterioration in underwriting and investment performance of the combined organization relative to peers; -- Operating leverage greater than 1.8 times (x) and net leverage greater than 4.5x for the combined organization. Key ratings drivers that could lead to a future upgrade include: -- Underwriting and investment performance that causes Fitch to view the combined organization as comparable from a ratings perspective with higher-rated companies, with; -- statutory capitalization and reserve adequacy on U.S. operating subsidiaries maintained at current levels and capital adequacy of CHU improved to be consistent with THG's; -- Holding company debt-to-capital ratio below 25%. HARRY & DAVID: Creditors Committee Balks at Rights Offering ----------------------------------------------------------- Dow Jones' DBR Small Cap reports that unsecured creditors are taking aim at Harry & David Holdings Inc.'s request to launch a backstopped rights offering, arguing that the measure unfairly benefits an equity holder and lender of the company while encroaching on unsecured creditors' rights and recovery prospects. The official committee representing unsecured creditors in the bankruptcy proceedings sprung into action Thursday, filing a slew of objections to everything from the company's final bankruptcy financing bid to its proposed $55 million rights offering. The rights offering objection specifically targets Wasserstein & Co., a firm the creditors say wears "nearly every hat possible" in the case and is using its power to injure the unsecured creditors. About Harry & David Medford, Oregon-based Harry & David Holdings, Inc. -- aka Bear Creek Corporation; Bear Creek Direct Marketing, Inc.; Bear Creek Stores, Inc.; Bear Creek Operations, Inc.; and Bear Creek Orchards, Inc. -- is a multi-channel specialty retailer and producer of branded premium gift-quality fruit and gourmet food products and gifts marketed under the Harry & David(R), Wolferman's(R) and Cushman's(R) brands. It has 70 stores across the country. Harry & David Holdings filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10884) on March 28, 2011. Affiliates Harry and David (Bankr. D. Del. Case No. 11-10885), Harry & David Operations, Inc. (Bankr. D. Del. Case No. 11-10886), and Bear Creek Orchards, Inc. (Bankr. D. Del. Case No. 11-10887) filed separate Chapter 11 petitions. Daniel J. DeFranceschi, Esq.; Paul Noble Heath, Esq.; and Zachary Shapiro, Esq., at Richards Layton & Finger, serve as the Debtors' local counsel. David G. Heiman, Esq.; Brad B. Erens, Esq.; and Timothy W. Hoffman, Esq., at Jones Day, are the Debtors' legal counsel. Rothschild Inc. is the Debtors' investment banker. Alvarez & Marsal LLC is the Debtors' financial advisor. Garden City Group Inc. is the Debtors' claims and notice agent. McKinsey Recovery & Transformation Services U.S. LLC is being tapped as management consultants. The cases are jointly administered, with Harry David Holdings as lead case. Kristopher M. Hansen, Esq., and Erez E. Gilad, Esq., at Stroock & Stroock & Lavan LLP; Thomas B. Walper, Esq., at Munger, Tolles & Olson LLP; and Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP are counsel to principal noteholders. Moelis & Company is the financial advisor to the principal noteholders. Lowenstein Sandler has been retained as counsel to the unsecured creditors committee in the Harry & David bankruptcy case. The Debtors disclosed $304.3 million in total assets and $360.8 million in total debts as of Dec. 25, 2010. HASSEN REAL ESTATE: Court Extends Filing of Schedules Until May 27 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California has extended, at the behest of Hassen Real Estate Partnership and Eastland Tower Partnership, the deadline for the filing of a schedule of assets and liabilities, a schedule of current income and expenditures, a statement of executory contracts and unexpired leases, a statement of financial affairs, and a list of equity security holders until May 27, 2011. The Debtors said that the analysis and compilation of the information for the Schedules and Statements will take significant time because (i) there are urgent other demands upon the Debtors as a result of the filing of these cases that will consume the time of the Debtors' small staff of people, (ii) the Debtors have approximately forty parties in interest and creditors on its creditor matrix, (iii) the Debtors' operations involve numerous contracts, leases, and other agreements, including tenant leases (iv) certain of the Debtor's liabilities may constitute contingent, unliquidated claims relating to obligations that are difficult to quantify, (v) the Debtors and their professionals need time to evaluate the information comprising the Schedules and Statements once compiled, and (vi) the Debtors do not have a large corporate staff available to perform and oversee all work necessary to prepare the Schedules and Statements. Hassen Real Estate Partnership and affiliate Eastland Tower Partnership are each engaged in the business of commercial real estate development and operation in West Covina, California. HREP owns and operates a retail/office center known as the West Covina Village Shopping Center, while ETP owns and operates an office tower known as the Wells Fargo Bank Tower. HREP filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-25499) on April 10, 2011. Christine M. Pajak, Esq., at the Stutman, Treister & Glatt Professional Corporation, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ETP (Bankr. C.D. Calif. Case No. 11-25500) simultaneously filed a separate Chapter 11 petition. HASSEN REAL ESTATE: Section 341(a) Meeting Scheduled for May 23 --------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of Hassen Real Estate Partnership's creditors on May 23, 2011, at 10:00 a.m. The meeting will be held at Room 2610, 725 S Figueroa Street, Los Angeles, 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 Hassen Real Estate Hassen Real Estate Partnership and affiliate Eastland Tower Partnership are each engaged in the business of commercial real estate development and operation in West Covina, California. HREP owns and operates a retail/office center known as the West Covina Village Shopping Center, while ETP owns and operates an office tower known as the Wells Fargo Bank Tower. HREP filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-25499) on April 10, 2011. Christine M. Pajak, Esq., at the Stutman, Treister & Glatt Professional Corporation, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ETP (Bankr. C.D. Calif. Case No. 11-25500) simultaneously filed a separate Chapter 11 petition. HASSEN REAL ESTATE: Wants to Use Cash Collateral; Lenders Object ---------------------------------------------------------------- Hassen Real Estate Partnership and Eastland Tower Partnership seek authority from the U.S. Bankruptcy Court for the Central District of California to use the cash collateral until June 30, 2011. Each of the Debtors is a borrower under one of two promissory notes both dated Nov. 21, 2006, and each in the principal amount of $41 million, which are secured by deeds of trust. Each Note is secured by substantially all of the respective Debtors' assets. The Notes are now held by CSMC 2006-C5 Azusa Avenue Limited Partnership and CSMC 2006-C5 Barranca Street Limited Partnership, respectively, and LNR Partners, LLC, acts as the special asset manager for both partnerships. As of the Petition Date, Azusa Partnership contends that HREP owes approximately $48.6 million, and Barranca Partnership contends that ETP owes approximately $50.5 million. Marina Fineman, Esq., at Stutman, Treister & Glatt Professional Corporation, explains that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties. The Debtors will use the collateral pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/HASSEN_budget.pdf As of the Petition Date, each Debtor has opened a new debtor-in- possession operating bank account at Wells Fargo Bank. All monies collected from the tenants at the Debtors' properties, and any monies that may be forwarded by the Lenders to the Debtors from tenant collections going forward, will be deposited into the respective Debtor accounts at Wells Fargo Bank. All direct obligations of each of the Debtors' properties will be paid from the respective Wells Fargo Bank debtor-in-possession operating accounts. Upon approval of the Debtors' request to use cash collateral, the Debtors will provide notice to their tenants that payments should no longer be made in accordance with the most recent procedures established by the Lenders and the Debtors prepetition. Instead, the Debtors will direct all of their tenants to commence making rent payments directly to the Debtors, which will be deposited in their respective Wells Fargo Bank operating accounts. The Debtors also seek court order directing the Lenders to turnover, within five days of receipt, any and all monies that KeyCorp/KeyBank Real Estate Capital may receive from tenants beginning in May 2011. Each Debtor will open a separate debtor-in-possession reserve bank account at Wells Fargo Bank, into which each Debtor will deposit any amounts that may be turned over to the Debtors, by the Lenders, from the Reserve Accounts in accordance with court order. Each Debtor will also open a utilities reserve account at Wells Fargo Bank. The Debtors assure the Court that its use of cash collateral won't result in any diminution of the value of the Lenders' interests in the collateral. In exchange for the use of cash collateral, the Lenders will replacement liens, subject to the same defenses and rights of avoidance as their lien in cash collateral, on any cash, receivables, or other rights created postpetition relating to the Debtors' properties. Lenders Object The Lenders object to the Debtors' use of cash collateral, saying "the Lenders object to the use of this motion as a vehicle to: (1) cease the funding of tax and insurance reserves and the payment of debt service to the Lender out of excess cash flows from the properties, which is what the parties bargained for almost a year ago; (2) pay management fees to insiders; and (3) pay management fees in excess of the industry standard." The Lenders state that "with respect to the Eastland Property, Eastland is attempting to 'double dip' and seeks management fees not only for Eastland, but also for HDC. There are 'maintenance and repair' costs of $49,500, payroll of $94,500, payroll taxes of $7,230, and 'other' of $4,500. In addition, in the 'G&A Exp.,' Eastland is also seeking 'salaries & wages' of $115,900, payroll taxes of $17,740, 'professional fees' of $3,000, and management fees of $36,000. Adding these amounts and dividing by the total rental income for the same period of $1,024,932 results in a total percentage of 32% for managing and operating only the Eastland Property. Simply taking the management fees of $36,000 and dividing by $1,024,932 equals management fees of 3.5% -- hardly a 'reduced amount' as claimed by Ziad. With respect to Hassen, there is in fact, no reduction as taking only the management fees of $26,355 and dividing by $753,018 is equal to 3.5%." The Lenders are unable to ascertain whether the Debtors' proposed budgets are accurate and reliable. "Pursuant to the budgets provided by the Debtors in June 2010 which have been applied for the past year, the Debtors show Hassen's total collected base rental revenue as $822,711. However, pursuant to Exhibit 1 to the Motion, the Debtors list such amount as $753,018. Other amounts also do not align, such as the payroll taxes increase from $6,660 in the June 2010 Budgets to $10,000 in the Motion Budgets even though the salaries and wages are listed as lower in the Motion Budgets. Thus, it appears that the value of Lender's collateral is actually declining," the Lenders say. According to the Lenders, the Debtors have not met their burden of proof that the Lenders are adequately protected if the Debtors are allowed to revoke the cash management procedures that have been in place since the forbearance period began almost one year ago, and the Court should allow the Debtors' to use cash collateral only for necessary expenses. The Lenders are represented by H. Mark Mersel and Sheri Kanesaka at Bryan Cave LLP. About Hassen Real Estate & Eastland Tower Hassen Real Estate Partnership and affiliate Eastland Tower Partnership are each engaged in the business of commercial real estate development and operation in West Covina, California. HREP owns and operates a retail/office center known as the West Covina Village Shopping Center, while ETP owns and operates an office tower known as the Wells Fargo Bank Tower. HREP filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-25499) on April 10, 2011. Christine M. Pajak, Esq., at the Stutman, Treister & Glatt Professional Corporation, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ETP (Bankr. C.D. Calif. Case No. 11-25500) simultaneously filed a separate Chapter 11 petition. HAWKER BEECHCRAFT: Bank Debt Trades at 12% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hawker Beechcraft is a borrower traded in the secondary market at 87.86 cents-on- the-dollar during the week ended Friday, April 22, 2011, a drop of 0.44 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on March 26, 2014, and carries Moody's Caa1 rating and Standard & Poor's CCC+ rating. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kan., is a leading manufacturer of business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. The Company's balance sheet at Sept. 30, 2010, showed $3.384 billion in assets, $3.482 billion in liabilities, and a deficit of $97.3 million. The Company reported a net loss of $238.6 million on $1.802 billion of net sales for nine months ended Sept. 30, 2010, compared with a net loss of $458.6 million on $2.112 billion of net sales for nine months ended Sept. 27, 2009. Hawker Beechcraft carries 'Caa2' corporate family and probability of default ratings from Moody's Investors Service. HERITAGE ORGANIZATION: Bankr. Ct. Won't Hear TUFTA Claims --------------------------------------------------------- Bankruptcy Judge Barbara Houser held that the bankruptcy court has jurisdiction to certain portions of the suit, Dennis Faulkner, Trustee, v. Eagle View Capital Management, et al., Adv. Pro. No. 10-3357 (Bankr. N.D. Tex.). Dennis Faulkner serves as trustee of the Heritage Creditors Trust, which was established under The Heritage Organization, LLC's bankruptcy plan. The Defendants have asked the Court to dismiss the suit. The Defendants are Gary M. Kornman, Eagle View Capital Management, LLC, Financial Marketing Services, Inc., 618 BR, LLC, TL Marketing, LLC, Valiant Investments 94-1, LP, Valiant Investments 94-3, LP, Valiant Investments 94-5, LP, Valiant Investments 94-6, LP, Valiant Investments 95-4, LP, Valiant Investments 95-5, LP, Intrepid Investments II, LP, The Oak Group, LP, GMK 2002 Friends and Family Trust, Kornman Corporation, Steadfast Investments, LP, Kornman & Associates, Inc., DPK Investments, LP, Life Underwriters of America, Inc., Dorothy P. Kornman - GMK PAS Trust, 814G, LLC, 2002 DPK Descendants Trust I, Ettman Family Trust I, Flagstone Management, LLC, and Treasured Investment, LP. According to Judge Houser, the Court has post-confirmation subject matter jurisdiction under 28 U.S.C. Sec. 1334(b) over the Trustee's claim under section 550 of the Bankruptcy Code. The Court does not have post-confirmation subject matter jurisdiction under 28 U.S.C. Sec. 1334(b) over the Trustee's claim pursuant to Texas's Uniform Fraudulent Transfer Act. Nor does the Court have the ability to exercise ancillary jurisdiction over that claim. Accordingly, the Kornman Defendants' Motion to Dismiss is granted in part, and the Trustee's TUFTA claim is dismissed for lack of jurisdiction. A copy of Judge Houser's April 18, 2011 Memorandum Opinion is available at http://is.gd/LWKY4Sfrom Leagle.com. The bankruptcy case is In re: The Heritage Organization, L.L.C., (Bankr. N.D. Tex. Case No. 04-35574). The Trustee was appointed pursuant to Heritage's plan of reorganization. The Plan was confirmed by order entered on Sept. 12, 2007. HORIZON BANCORP: Incurs $5.77 Million Net Loss in 2010 ------------------------------------------------------ Horizon Bancorporation, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $5.77 million on $58,184 of total operating income for the year ended Dec. 31, 2010, compared with a net loss of $8.12 million on $0 of total operating income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.26 million in total assets, $1.07 million in total liabilities and $190,838 in total shareholders' equity. Francis & Co., CPA's, in Atlanta, Georgia, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered heavy losses in calendar years 2010 and 2009, reducing its capital accounts significantly. Moreover, federal and state regulators, in 2009, imposed a Written Agreement on the Bank mainly due to increasing levels in non-performing assets and eroding regulatory capital. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/rqsICB About Horizon Bancorporation Horizon Bancorporation, Inc. (OTC BB: HZNB) -- http://www.horizonbankfl.com/-- is the bank holding company of Horizon Bank, a commercial bank chartered under the laws of Florida. The Company maintains its corporate offices and main banking center at 900 53rd Avenue East, in Bradenton, Florida. On Sept. 10, 2010, Horizon Bank failed and the Federal Deposit Insurance Corporation was appointed as receiver for the Bank and its assets. The Company's existing management team, consisting of Charles S. Conoley, as President and CEO, and Kathleen M. Jepson, as CFO, and the Company's existing directors will continue to manage the affairs of the Company. Management and the Board of Directors are currently evaluating the possibility of the Company entering into one or more lines of business, which may or may not involve the ownership of a financial institution, while, in the short run, resolving all outstanding issues stemming from Horizon Bank's receivership. The Company intends to maintain, for the foreseeable future, the Company's status as a fully reporting public company. HORSESHOE POINT: Court Grants Lender Relief From Stay ----------------------------------------------------- Bankruptcy Judge Nancy V. Alquist granted Lafayette Financial LLC relief from the automatic stay in the bankruptcy case of Horseshoe Point, LLC, in view of the Debtor's deteriorating finances. Horseshoe Point, LLC, owns a parcel of land located at 1 Norwood Road, Annapolis, Maryland. The Property was purchased with the intent of building a residence for the principals of the Debtor, Mr. Brian McCormick and Ms. Angela Nagel, his spouse. The Property is a waterfront parcel on the Severn River. The Property was purchased with cash; the Debtor obtained financing from the Lender to construct the residence. Before its chapter 11 filing, the Debtor hired a building contractor, Pyramid Builders, Inc., to construct the residence, and to obtain necessary permitting. The Debtor razed the existing structure on the Property, and created on the site an excavation intended to have been the start of the foundation for the future residence. The Debtor ran out of funds. Building has not commenced, and the excavation has remained on the Property for some time, during which it is at constant risk (if not continually pumped), of filling with water from rains or the adjacent river. The Debtor hired Pyramid to pump the water from the Property and to build a secant wall in the excavation site. The secant wall, which was intended to be only temporary, abuts the neighboring residential property (4 Norwood Road) owned by Donald Roland. The wall is intended to hold back erosion and prevent the shifting of earth in and around the excavation. The Lender -- and now the neighbor and the City of Annapolis -- have become concerned about the condition of the secant wall, which they claim has deteriorated and has the potential to shift or collapse, causing damage to the Property and to the neighboring land, house, outbuildings and swimming pool. Judge Alquist said the Lender has established that it is entitled to relief from stay because: (I) there is an obligation owed from the Debtor to the Lender, (ii), the Lender holds a valid security interest and (iii) cause exists to lift the stay because the Lender's interest is not adequately protected. A copy of the Court's April 14, 2011 Memorandum is available at http://is.gd/QA0cx5from Leagle.com. Horseshoe Point, LLC, in Annapolis, Maryland, filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 10-36752) on Nov. 24, 2010. Paul Sweeney, Esq. -- psweeney@loganyumkas.com -- at Logan, Yumkas, Vidmar & Sweeney LLC, serves as the Debtor's counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and debts. HOVNANIAN ENTERPRISES: Fitch Affirms 'CCC' IDR; Outlook Now Stable ------------------------------------------------------------------ Fitch Ratings has revised the Rating Outlook for Hovnanian Enterprises, Inc. (NYSE: HOV) to Stable from Negative. Fitch has also affirmed the company's Issuer Default Rating (IDR) at 'CCC'. The rating for HOV is influenced by the company's execution of its business model, land policies and geographic, price point and product line diversity. The rating also reflects the company's liquidity position, substantial debt and high leverage. The Outlook revision to Stable from Negative takes into account the company's improved liquidity position following the completion of a number of capital markets transactions this year, allowing the company to improve its cash position and further push out its debt maturities. On a pro forma basis, the company had unrestricted cash of roughly $435 million at Jan. 31, 2011, and no major debt maturities until calendar year 2014, when $87 million of debt become due. The Stable Outlook also reflects somewhat better prospects for the housing sector this year. While the company currently has a healthy liquidity position, Fitch is somewhat concerned that the company is willing to lower its cash levels to between $200 million and $275 million to take advantage of land acquisition opportunities. Given that the company terminated its revolving credit facility during the fourth quarter of 2009, Fitch is concerned that this level of cash (around $200 million) does not provide a large enough liquidity cushion in the event that the current low levels of housing activity persist longer than anticipated. The absence of a bank credit facility also means a lack of bank oversight, which is a useful check on management's appetite for risk. HOV spent $287.9 million on new land purchases during its fiscal 2010. Land and development expenditures during the first quarter of 2011 totaled approximately $75 million, flat compared to the same period last year. For the twelve month period ending Jan. 31, 2011, the company generated $86.3 million of cash flow from operations, which included $291.3 million of tax refunds. Excluding tax refunds, the company has been cash flow negative in each of the last seven quarters. For all of fiscal 2011, Fitch expects HOV to be cash flow negative as the company continues to build its land position (through land purchases and development spending). At Jan. 31, 2011, the company controlled 33,442 lots (including unconsolidated joint ventures), of which 56% were owned and the remaining lots controlled through options and joint venture partnerships. Based on the latest 12 month (LTM) closings, HOV controlled 7 years of land and owned roughly 4.2 years of land. Recent macroeconomic housing statistics (new and existing home sales, single-family housing starts) are weak and disappointing, especially during the month of February. However, there seems to be a slight seasonal pick-up in the spring orders compared to the winter. The public builders have reported clear improvement in traffic. Selling incentives appear to be rising, to the disadvantage of near-term margins, although new home prices are relatively stable. Builder comparisons are challenging during the first half of 2011 and then ease in the third and fourth quarters. If the economy continues its advance and a moderate number of jobs are added, macroeconomic housing metrics should, for the most part, rise at a single-digit pace this year. Fitch currently projects new single-family housing starts will increase 8.5% in 2011 following 5.8% growth in 2010. After falling 14.4% in 2010, new home sales are forecast to grow about 1.9% in 2011. Fitch expects existing home sales to stay flat in 2011 after a 4.8% decline in 2010. Future ratings and Outlooks will be influenced by broad housing market trends as well as company specific activity, such as trends in land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, debt levels and especially free cash flow trends and uses, and the company's cash position. Negative rating actions could occur if the anticipated recovery in housing does not materialize and the company prematurely steps up its land /development spending, leading to consistent and significant negative quarterly cash flow from operations. HOV's rating is constrained in the intermediate term due to weak credit metrics and high leverage, but a Positive Outlook may be considered if the recovery in housing is significantly better than Fitch's outlook and the company shows improvement in credit metrics and its liquidity position. Fitch has affirmed these ratings for HOV with a Stable Outlook: -- IDR at 'CCC'; -- Senior secured notes at 'B-/RR3'; -- Senior secured notes (third lien) at 'C/RR6'; -- Senior unsecured notes at 'C/RR6'; -- Series A perpetual preferred stock at 'C/RR6'. Fitch's Recovery Rating (RR) of 'RR3' on HOV's senior secured notes indicates good recovery prospects for holders of these debt issues. The 'RR6' on HOV's senior secured (third lien), senior unsecured notes, senior subordinated notes and preferred stock indicates poor recovery prospects in a default scenario. HOV's exposure to claims made pursuant to performance bonds and the possibility that part of these contingent liabilities would have a claim against the company's assets were considered in determining the recovery for the unsecured debt holders. Fitch applied a liquidation value analysis for these RRs. HSRE-CDS: Creditor Wants Chapter 11 Case Dismissed -------------------------------------------------- Dow Jones' DBR Small Cap reports that GB HoldCo LLC, HSRE-CDS I LLC's biggest creditor, said the debtor has "absolutely no prospects" for a successful restructuring and shouldn't be allowed to remain under the shelter of Chapter 11. According to DBR, GB HoldCo also pointed out that the company has "little or no" cash flow to fund a restructuring because GB HoldCo ultimately owns the rents and income HSRE-CDS collects. "In the absence of any access to income, the debtor's Chapter 11 case is a sham for which no reorganization is possible whatsoever," GB HoldCo said in court papers filed Tuesday. GB HoldCo is owed $22.1 million in secured debt. About HSRE-CDS I Irving, Texas-based HSRE-CDS I, LLC, is a real estate company engaged in the acquisition, ownership, operation, management, leasing, financing, mortgaging and selling of real property. It is a partnership between campus-housing operator Collegiate Management Group and private equity firm Harrison Street Real Estate Capital LLC. HSRE-CDS I filed for Chapter 11 bankruptcy protection on March 31, 2011 (Bankr. D. Del. Case No. 11-10972). The Debtor has not had sufficient time to discuss with the new lender the terms and conditions to use any cash collateral. The bankruptcy case will allow the Debtor the breathing room to negotiate with the new lender about issues likely to be key in this case. R. Craig Martin, Esq., at DLA Piper LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $10 million to $50 million. IMPERIO DE SIMON: Case Summary & 15 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Imperio De Simon Bolivar Inc. 1636 W. 8th Street, # 314 Los Angeles, CA 90017 Bankruptcy Case No.: 11-27107 Chapter 11 Petition Date: April 20, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Barry Russell Debtor's Counsel: M. Jonathan Hayes, Esq. LAW OFFICE OF M. JONATHAN HAYES 9700 Reseda Boulevard, Suite201 Northridge, CA 91324 Tel: (818) 882-5600 Fax: (818) 882-5610 E-mail: jhayes@polarisnet.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 15 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-27107.pdf The petition was signed by Hossein Dallalbashi, president. INOVA TECHNOLOGY: Amends 2008 10-K; Posts $1.45 Million Net Loss ---------------------------------------------------------------- Inova Technology, Inc., filed with the U.S. Securities and Exchange Commission an amended annual report on Form 10-K/a for the fiscal year ended April 30, 2008. Specifically, the amendment was made to record: (1) change in fair value of derivatives liabilities resulting from reclassification of put warrants; (2) additional debt discount amortization as a result of derivative liabilities resulting from reclassification of put warrants; (3) expense for a previously unrecorded liability and common stock issuance; (4) additional net loss as a result items above; and (5) issuance of common stock previously unrecorded. The restated statement of operations reflects a net loss of $1.45 million on $5.44 million of revenue for the year ended April 30, 2008, compared with a net loss of $976,062 on $5.44 million of revenue as originally reported. The Company's restated balance sheet at April 30, 2008 showed $10.58 million in total assets, $10.18 million in total liabilities and $397,764 in total stockholders' equity, compared with $10.48 million in total assets, $9.08 million in total liabilities and $1.40 million in total stockholders' equity. A full-text copy of the annual report on Form 10-K, as amended, is available for free at http://is.gd/0uaRSk About Inova Technology Based in Las Vegas, Nevada, Inova Technology, Inc. (OTC BB: INVA) -- http://www.inovatechnology.com/-- through its subsidiaries, provides information technology (IT) consulting services in the United States. It also manufactures radio frequency identification (RFID) equipment; and provides computer network solutions. The company was formerly known as Edgetech Services Inc. and changed its name to Inova Technology, Inc., in 2007. The Company's balance sheet at Jan. 31, 2011, showed $10.39 million in total assets, $16.32 million in total liabilities, and a $5.93 million stockholders' deficit. As reported in the Troubled Company Reporter on August 26, 2010, MaloneBailey, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following its results for the fiscal year ended April 30, 2010. The independent auditors noted that Inova incurred losses from operations for fiscal 2010 and 2009 and has a working capital deficit as of April 30, 2010. INOVA TECHNOLOGY: Awarded $570,000 Network Solutions Project ------------------------------------------------------------ Inova Technology, through its wholly owned subsidiary, Desert Communications, has been awarded a $570,000 network solutions project for Gallup McKinley school district in New Mexico. "We been expanding our business development efforts beyond Texas and are very happy to be awarded this project in New Mexico," said CEO, Mr. Adam Radly. "The company has also bid on numerous additional projects and we expect to provide the results of those bids in the near future." The company receives projects in two stages: The first stage involves being "awarded" the project and the second stage involves getting approved "funding" for the project (at which time the project is deemed "awarded and funded". Projects that form part of the company's backlog are projects that are both awarded and funded. The Company previously announced that its revenue for the nine months ended January 2011 was up by 32%, compared to the same period a year ago. Inova also previously announced that it paid down $600,000 of debt in February 2011. Inova is filing certain restatements from 2008/2009. All amendments and restatements are non-cash in nature. There is not a significant impact to earnings or EBITDA. The accounting for warrants associated with various notes was incorrect and will result in a reclassification from equity to debt. The original accounting for these transactions classified the warrant values as equity because of the fact that there is not a put liability until the lender exercises its warrants and elects to put the shares back to the Company. Further, the effective dates of 2010-2013 made it appear that the liability wouldn't exist in 2008 and 2009. About Inova Technology Based in Las Vegas, Nevada, Inova Technology, Inc. (OTC BB: INVA) -- http://www.inovatechnology.com/-- through its subsidiaries, provides information technology (IT) consulting services in the United States. It also manufactures radio frequency identification (RFID) equipment; and provides computer network solutions. The company was formerly known as Edgetech Services Inc. and changed its name to Inova Technology, Inc., in 2007. The Company's balance sheet at Jan. 31, 2011, showed $10.39 million in total assets, $16.32 million in total liabilities, and a $5.93 million stockholders' deficit. As reported in the Troubled Company Reporter on August 26, 2010, MaloneBailey, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following its results for the fiscal year ended April 30, 2010. The independent auditors noted that Inova incurred losses from operations for fiscal 2010 and 2009 and has a working capital deficit as of April 30, 2010. INTELSAT SA: Amends Form S-1; Stockholders to Sell $190MM Notes --------------------------------------------------------------- Intelsat S.A. filed with the U.S. Securities and Exchange Commission Pre-Effective Amendment No. 1 to Form S-1 registration statement regarding the sale by the selling securityholders of up to $190,910,000 aggregate principal amount of Intelsat (Luxembourg) S.A.'s 11 1/4% Senior Notes due 2017. The original 11 1/4% Senior Notes due 2017 were issued on June 27, 2008, pursuant to Rule 144A and Regulation S and the notes were issued in exchange for the original notes on Jan. 20, 2010. The selling securityholders are affiliates of the Company and the Company has agreed to file the prospectus to register the notes held by the selling securityholders for resale. The Company will not receive any proceeds from the sale of the notes in this offer. A full-text copy of the amended prospectus is available for free at http://is.gd/iFQSAF About Intelsat Intelsat S.A., formerly Intelsat, Ltd., provides fixed-satellite communications services worldwide through a global communications network of 54 satellites in orbit as of Dec. 31, 2009, and ground facilities related to the satellite operations and control, and teleport services. It had US$2.5 billion in revenue in 2009. Luxembourg-based Intelsat S.A. carries 'B' issuer credit ratings from Standard & Poor's. It has 'Caa1' corporate family and probability of default ratings from Moody's Investors Service. Washington D.C.-based Intelsat Corporation, formerly known as PanAmSat Corporation, is a fully integrated subsidiary of Intelsat S.A., its indirect parent. Intelsat Corp. had US$7.70 billion in assets against US$4.86 billion in debts as of Dec. 31, 2010. The Company reported a net loss of US$507.77 million on US$2.54 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of US$782.06 million on US$2.51 billion of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed US$17.59 billion in total assets, US$18.29 billion in total liabilities, and US$698.94 million in total Intelsat S.A shareholder's deficit. INTERNATIONAL GARDEN: Selling Assets to Gardens Alive at Auction ---------------------------------------------------------------- Dow Jones' DBR Small Cap reports that International Garden Products Inc. will put its assets on the auction block next month with a leading bid from garden-pest control company Gardens Alive Inc. About International Garden Products International Garden Products, Inc. was incorporated in 1996 as a holding company for Iseli Nursery, Inc., California Nursery Supply, Weeks Wholesale Rose Grower, and Old Skagit, Inc. The company's operating businesses, Iseli and Weeks, focus primarily on growing horticultural products for nationwide sale to independent garden centers, landscape suppliers, landscapers and similar parties. Iseli's is known in the industry as the premium source of dwarf conifers, Japanese maples and unique companion plants. Weeks is one of the largest wholesale breeders and growers of premium roses in the U.S. International Garden Products, Inc., and its affiliates filed for Chapter 11 protection on Oct. 4, 2010 (Bankr. Lead Case No. 10- 13207). International Garden estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. Andrew R. Remming, Esq., at Morris, Nichols, Arsht & Tunnell, serves as bankruptcy counsel. Bryan Cave LLP is the legal counsel. FTI Consulting is the restructuring advisor. Garden City Group is the claims and notice agent. The debtor-affiliates are Weeks Wholesale Rose Grower (Bankr. D. Del. Case No. 10-13208), California Nursery Supply (Case No. 10- 13209), Iseli Nursery, Inc. (Case No. 10-13210), and Old Skagit, Inc. (Case No. 10-13211). IVOICE INC: Rosenberg Rich Raises Going Concern Doubt ----------------------------------------------------- iVoice, Inc., filed on April 12, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Rosenberg Rich Baker Berman & Co, in Somerset, New Jersey, expressed substantial doubt about iVoice, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial accumulated deficits. The Company reported a net loss of $1.5 million on $177,198 of sales for 2010, compared with net income of $219,780 on $108,120 of sales for 2009. At Dec. 31, 2010, the Company's balance sheet showed $1.7 million in total assets, $3.4 million in total liabilities, and a stockholders' deficit of $1.7 million. A complete text of the Form 10-K is available for free at: http://is.gd/HfCNa9 Matawan, N.J.-based iVoice, Inc. -- http://www.ivoice.com/-- is focused on the development and licensing of its proprietary technologies. To date the Company has filed fifteen (15) patent applications with the United States Patent and Trademark Office for speech enabled applications that the Company has developed internally. Of the patent applications the Company has filed, four (4) patents have been awarded. JACOBS FINANCIAL: Incurs $344,701 Net Loss in Feb. 28 Quarter ------------------------------------------------------------- Jacobs Financial Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $344,701 on $414,261 of total revenues for the three months ended Feb. 28, 2011, compared with a net loss of $145,865 on $345,638 of total revenues for the same period during the prior year. The Company also reported a net loss of $1.07 million on $1.14 million of total revenues for the nine months ended Feb. 28, 2011, compared with a net loss of $990,190 on $1.04 million of total revenues for the same period a year ago. The Company's balance sheet at Feb. 28, 2011 showed $8.25 million in total assets, $12.95 million in total liabilities, $3.11 million in total mandatorily redeemable preferred stock and a $7.81 million total stockholders' deficit. A full-text copy of the quarterly report on Form 10-Q is available for free at http://is.gd/3Lah9r About Jacobs Financial Jacobs Financial Group, Inc. (OTC Bulletin Board: JFGI) is a Charleston, West Virginia-based holding company for First Surety Corporation, a West Virginia domiciled surety, Triangle Surety Agency, an insurance agency that specializes in coal reclamation surety bonds, and Jacobs & Company, a registered investment advisor. As reported in the Troubled Company Reporter on Sept. 17, 2010, Malin, Bergquist & Company, LLP, in Pittsburgh, Pa., expressed substantial doubt about Jacobs Financial's ability to continue as a going concern, following the Company's results for the fiscal year ended May 31, 2010. The independent auditors noted of the Company's significant net working capital deficit and operating losses. The Company reported a net loss attributable to common stockholders of $2.7 million on $1.4 million of revenue for fiscal 2010, compared to a net loss attributable to common stockholders of $3.1 million on $1.2 million of revenue for fiscal 2009. JENNIFER CONVERTIBLES: Reports $32.1MM Net Income in Feb. 26 Qtr. ----------------------------------------------------------------- Jennifer Convertibles, Inc., filed its quarterly report on Form 10-Q, reporting net income of $32.1 million on $16.7 million of revenues for the thirteen weeks ended Feb. 26, 2011, compared with a net loss of $6.4 million on $19.7 million of revenues for the same period ended Feb. 27, 2010. Results for the second quarter included a one-time gain on discharge of debt of $16.7 million. At Feb. 26, 2011, the Company's balance sheet showed $37.7 million in total assets, $26.3 million in total liabilities, and stockholders' equity of $11.4 million. The Company emerged from bankruptcy under Chapter 11 of the United States Bankruptcy Code on Feb. 22, 2011, and has adopted fresh- start reporting effective Feb. 26, 2011, which is the second quarter period end date. A complete text of the Form 10-Q is available for free at: http://is.gd/MfFNTD About Jennifer Convertibles Based in Woodbury, N.Y., Jennifer Convertibles, Inc. -- http://www.jenniferfurniture.com/-- is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with 64 Jennifer Convertibles(R) stores and is the largest specialty retailer of leather furniture with 8 Jennifer Leather stores. As of April 12, 2011, the Company owned 72 stores and operates six licensed Ashley Furniture HomeStores. The Company and its affiliates filed for Chapter 11 bankruptcy protection on July 18, 2010 (Bankr. S.D.N.Y. Case No. 10-13779). On Feb. 22, 2011, (the "Effective Date"), Jennifer Convertibles, Inc., emerged from bankruptcy. On the Effective Date and pursuant to the Plan, all outstanding equity interests of the Company, including but not limited to all outstanding shares of common stock, par value $0.01 per share (the "Existing Common Stock"), and all outstanding shares of preferred stock, par value $0.01 per share (the "Existing Preferred Stock"), options and contractual or other rights to acquire any equity interests, were canceled and extinguished. Pursuant to the Plan, the Company issued 1,000,000 shares of new common stock, par value $0.01 per share. * * * This concludes the Troubled Company Reporter's coverage of Jennifer Convertibles, Inc., until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. JETBLUE AIRWAYS: Donald Smith Discloses 10.06% Equity Stake ----------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Donald Smith & Co., Inc., disclosed that it beneficially own 29,467,039 shares of common stock of JetBlue Airways Corporation representing 10.06% of the shares outstanding. Donald Smith Long/Short Equities Fund, L.P., also owns 29,574,014. The number of shares outstanding of the Company's common stock as of Jan. 31, 2011 was 294,752,749 shares. About JetBlue Airways JetBlue Airways Corp., based in Forest Hills, New York, operates a low-cost, point-to-point airline from a hub in New York. JetBlue serves 60 cities with 600 daily non-stop flights. The Company's balance sheet at Dec. 31, 2010, showed $6.59 billion in total assets, $4.94 billion in total liabilities, and $1.65 billion in stockholders' equity. * * * JetBlue carries 'Caa1' long term corporate family and probability of default ratings, with positive outlook, from Moody's. It has a 'B-' long term issuer default rating, with stable outlook, from Fitch. It also has a 'B-' issuer credit ratings from Standard & Poor's. In November 2010, Standard & Poor's Ratings Services affirmed its ratings, including its 'B-' corporate credit rating, on Forest Hills, New York-based JetBlue Airways Corp. At the same time, S&P revised its outlook on the rating to positive from stable. The recovery rating on senior unsecured debt remains '6', indicating S&P's expectations of a negligible (0%-10%) recovery in a default scenario. S&P noted that while JetBlue has been profitable in six of the last seven quarters, its financial profile remains highly leveraged, with EBITDA interest coverage of 2.5x, funds flow to debt of 15.7%, and debt to capital of 75.2%. KARLEN MANAGEMENT: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Karlen Management, L.L.C. 684 North Beers Street Holmdel, NJ 07733 Bankruptcy Case No.: 11-22513 Chapter 11 Petition Date: April 21, 2011 Court: U.S. Bankruptcy Court District of New Jersey (Trenton) Judge: Raymond T. Lyons, Jr. Debtor's Counsel: Jules L. Rossi, Esq. LAW OFFICE OF JULES L. ROSSI 208 Main Street Asbury Park, NJ 07712 Tel: (732) 774-5520 Fax: (732) 744-5870 E-mail: jlrbk423@aol.com Scheduled Assets: $1,000,000 Scheduled Debts: $1,447,543 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/njb11-22513.pdf The petition was signed by Leonard Rubinstein, managing member. KCXP INVESTMENTS: Wins Approval to Employ Darby Law as Counsel -------------------------------------------------------------- KCXP Investments, LLC obtained approval from the U.S. Bankruptcy Court for the District of Nevada to employ Darby Law Practice Ltd. as its counsel nunc pro tunc to December 14, 2010. About KCXP Investments Dayton, Nevada-based KCXP Investments, LLC, dba Jet Ranch Hangar Community Association, owns and operates an airplane hangar located at the Carson City Airport in Carson City, Nevada, which consists of 12-buildings totaling 82,400 square feet of hangar and office space situated on 3.3 acres of leased real estate at the east end of the Carson City Airport. KCXP Investments filed for Chapter 11 bankruptcy protection on December 14, 2010 (Bankr. D. Nev. Case No. 10-54847). Kevin A. Darby, Esq., at Darby Law Practice, Ltd., serves as the Debtor's bankruptcy counsel. According to its schedules, the Debtor disclosed $12,588,750 in total assets and $6,027,645 in total debts as of the Petition Date. KH FUNDING: U.S. Trustee Gets More Time to Object to BDO Hiring --------------------------------------------------------------- Bankruptcy Judge Thomas J. Catliota signed off on a stipulation extending the time for the United States Trustee for Region 4 to file an objection to the application by the Official Committee of Unsecured Creditors in KH Funding Company's case to retain BDO Consulting, a division of BDO USA, LLP, nunc pro tunc to Feb. 7, 2011, as financial advisor. The U.S. Trustee was given until April 21, 2011, to file a comment, objection or other responsive pleading to the Application. A copy of the parties' stipulation, approved by Judge Catliota on April 14, 2011, is available at http://is.gd/X4ZzhGfrom Leagle.com. The Troubled Company Reporter ran a story on the committee's application to retain BDO in its April 18 edition. About KH Funding Company Silver Spring, Maryland-based KH Funding Company filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 10-37371) on Dec. 3, 2010. Lawrence Coppel, Esq., at Gordon Feinblatt Rothman Hoffberger & Hollander, LLC, in Baltimore, Maryland, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. W. Clarkson McDow, Jr., United States Trustee for Region 4, appointed seven creditors to serve on the Debtor's Official Committee of Unsecured Creditors. The Committee is represented by Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, and lawyers at McGuireWoods LLP as co-counsel. The Committee has tapped BDO Consulting, a division of BDO USA, LLP, as its financial advisor. KM ALLIED OF NAMPA: May Restructure Zions Bank Claim ---------------------------------------------------- KM Allied of Nampa LLC was formed to develop and construct improvements on certain real property located at 3015 E. Comstock, Nampa, Idaho, such real property ultimately to be leased to Allied Waste of North America, LLC. On July 14, 2008, Kowallis & Mackey Development, LLC, and Zions First National Bank, N.A., entered into a construction loan agreement, promissory note, and commercial security agreement. Zions Bank loaned $1,750,000 to KMD for "Construction Financing for Land and Facilities for Allied Waste located in Nampa, Idaho." KMD is the obligor on the promissory note and the borrower on the construction loan agreement. Zions Bank had financed other KMD projects and developments. John W. Mackey, manager of the Debtor, testified that generally a project-specific limited liability company would be formed to hold title to the property and that such an entity would later be made a borrower or a guarantor of the KMD-Zions Bank construction or development loans on that particular project. That did not occur; the Debtor is not an obligor on, nor is it a guarantor of, the promissory note. On July 14, 2008, contemporaneously with the execution of the note and construction agreement by KMD, the Debtor executed a deed of trust and fixture filing on the Property to the benefit of Zions Bank. An assignment of rents to Zions Bank was also executed by the Debtor the same day. The Debtor asserts that, after construction was concluded and Allied Waste had taken possession and begun paying rent, Zions Bank refused to enter into permanent financing. Zions Bank issued notice of default in the spring of 2010 and a deed of trust sale was set for Sept. 20, 2010. The Debtor filed for Chapter 11 bankruptcy (Bankr. D. Idaho Case No. 10-03056) on Sept. 17, 2010. Randal J. French, Esq. -- rfrench@bauerandfrench.com -- at Bauer & French, serves as bankruptcy counsel. The Debtor scheduled $2,020,600 in assets and $2,626,080 debts. The bankruptcy filing stayed the deed of trust sale. Immediately before filing the Debtor's chapter 11 petition, KM Leasing LLC, the Debtor's sole member, merged into the Debtor. Following that merger, and by an accompanying resolution, the 100% ownership of the Debtor by KML was converted to a situation where Littlewood Landing, LLC had 100% "capital ownership" of the Debtor and an 82.5% "interest in profits and losses," and Kowallis & Mackey Development II LLC had a 10% interest in its profits and losses and an individual, Scott Steed, had a 7.5% interest in its profit and losses. The Debtor filed a proposed chapter 11 plan and disclosure statement on the same day as the petition for relief. An amended chapter 11 plan and an amended disclosure statement were filed on Jan. 14, 2011. On Feb. 2, Zions Bank filed its motion for relief from stay. The issue that underlies all the others debated by the parties is whether the Debtor may properly attempt to restructure under chapter 11 the obligation to Zions Bank when the Debtor is not a party to the note or the construction agreement. Zions Bank argues the Debtor "lacks contractual privity" with Zions Bank in this transaction and therefore cannot modify or restructure the "loan." In an April 14, 2011 Memorandum of Decision, Chief Bankruptcy Judge Terry L. Myers ruled that the Debtor may properly seek to address the "claim" of Zions Bank in the Chapter 11 case. A copy of Judge Myers' decision is available at http://is.gd/Ph64Tofrom Leagle.com. KM ALLIED OF NAMPA: Can't Use Plan Outline as Legal Brief --------------------------------------------------------- Chief Bankruptcy Judge Terry L. Myers directed KM Allied of Nampa LLC to further revise by May 5, 2011, the amended disclosure statement explaining its plan of reorganization. Judge Myers said the Debtor is using its disclosure statement as a legal brief, which is improper. As a general observation, the amended disclosure statement contains extensive argument that should be placed in a separate brief at such time as legal disputes -- such as confirmation -- are properly before the Court. The judge pointed out that, while it is appropriate for the Debtor to disclose a proposed interest rate for the treatment of Zions First National Bank, N.A.'s claim, and even to briefly explain the authority on which such a rate is proposed and believed to be adequate, the discussion goes on far too long, in an unduly adversarial tone, and with at times inappropriately derisive language. The Debtor threatens legal action for sanctions and other relief should Zions Bank "fabricate" a post-confirmation event of default. "This sort of disparaging rhetoric has little if any place in briefing, and no place at all in a disclosure statement," Judge Myers said. The Debtor also must address issues surrounding its post- confirmation management. There are multiple connections and relationships among the Debtor, numerous other Kowallis & Mackey entities, and individuals John Mackey and Douglas Kowallis. The same should be disclosed. Additionally, further disclosure is required as to Messrs. Mackey and Kowallis given their involvement in controlling the Debtor and its operations. The Debtor filed a proposed chapter 11 plan and disclosure statement on the bankruptcy petition date. An amended chapter 11 plan and an amended disclosure statement were filed on Jan. 14, 2011. About KM Allied of Nampa KM Allied of Nampa LLC in Boise, Idaho, was formed to develop and construct improvements on certain real property located at 3015 E. Comstock, Nampa, Idaho, such real property ultimately to be leased to Allied Waste of North America, LLC. It filed for Chapter 11 bankruptcy (Bankr. D. Idaho Case No. 10-03056) on Sept. 17, 2010. Randal J. French, Esq. -- rfrench@bauerandfrench.com -- at Bauer & French, serves as bankruptcy counsel. The Debtor scheduled $2,020,600 in assets and $2,626,080 debts. LA JOLLA: To Effect a 1-for-100 Reverse Stock Split --------------------------------------------------- La Jolla Pharmaceutical Company amended its Certificate of Incorporation to effect a 1-for-100 reverse split of its outstanding common stock. The Reverse Split was approved by the Company's Board of Directors, pursuant to authority delegated to the Board by the Company's stockholders on Aug. 12, 2010. The Reverse Split was effected with the filing of a Certificate of Amendment with the Delaware Secretary of State. No fractional shares will be issued in the Reverse Split and stockholders will instead be entitled to receive the cash value of any fractions of shares that would have been issued as a result of the Reverse Split. A copy of the Certificate of Amendment is available for free at http://is.gd/yO28ID Additionally, effective as of April 14, 2011, the Company amended its bylaws to allow for the issuance of common stock in an uncertificated form. Shares of common stock being issued after the Reverse Split will not be issued in certificated form and will instead be issued only in book-entry form. A copy of the amended and restated bylaws of the Company is available for free at: http://is.gd/EPmYig About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. The Company reported a net loss of $3.76 million on $0 of revenue from collaboration agreement for the year ended Dec. 31, 2010, compared with a net loss of $8.63 million on $8.12 million of revenue from collaboration agreement during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $6.93 million in total current assets, $6.40 million in total current liabilities $47,000 in Series C-1 redeemable convertible preferred stock, and $482,000 in total stockholders' equity. As reported by the TCR on April 18, 2011, BDO USA, LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, an accumulated deficit of $428 million as of Dec. 31, 2010 and has no current source of revenues. LAKE PLEASANT: Section 341(a) Meeting Scheduled for May 17 ---------------------------------------------------------- The U.S. Trustee for Region 14 will convene a meeting of Lake Pleasant Group, LLP's creditors on May 17, 2011, at 10:30 a.m. The meeting will be held at the US Trustee Meeting Room, 230 N. First Avenue, Suite 102, Phoenix, Arizona. 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. Phoenix, Arizona-based Lake Pleasant Group, LLP, filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-10170) on April 13, 2011. Mark W. Roth, Esq., at Polsinelli Shughart P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate DLGC II, LLC (Bankr. D. Ariz. Case No. 11-10174) filed a separate Chapter 11 petition on April 13, 2011. LEGACY AT JORDAN: Court Denies Confirmation of Plan --------------------------------------------------- Bankruptcy Judge Randy D. Doub denied confirmation of the Plan of Reorganization filed by The Legacy at Jordan Lake, LLC, holding the Debtor has failed to prove that its proposed treatment of Capital Bank equals the indubitable equivalent of the bank's claim by even a preponderance of the evidence. Under Option Two provided in the Plan, Capital Bank will not receive the indubitable equivalent of its claim. The claim of Capital does not receive fair and equitable treatment under 11 U.S.C. Sec. 1129(b)(2)(A)(iii). The Debtor filed the Plan and explanatory disclosure statement on July 23, 2010. Capital Bank objected; the Bankruptcy Administrator also responded to the Plan. The Legacy at Jordan Lake was formed in 2005 to develop 628 acres of real property, located in Chatham County, North Carolina, near Jordan Lake, into a 463 residential lot subdivision to be constructed in six phases. The vision of the Debtor was to develop a gated community with meadows and walking trails. Amenities in the Project were to include a clubhouse, pools, spa, short irons golf facility, tennis courts, walking paths and trails, waterfalls, and mini-parks. The Debtor commenced selling both developed and undeveloped lots in Phase I in 2005. Of the 105 platted lots in Phase I, 54 lots were purchased by builders and several lots were purchased by individuals directly from the Debtor. Today, the Debtor owns 37 lots in Phase I that are platted and ready for sale. In addition, the lots in Phase II and Phase III are platted but the infrastructure is not complete. The remaining phases are still raw undeveloped land. The Debtor contends that lots in Phase II could be offered for sale with a relatively minimal capital expenditure based on the previous work completed by the Debtor. Capital Bank was listed as a secured creditor on Schedule D and is owed approximately $17,500,000. The Debtor contends that because of certain unilateral acts of Capital, the Debtor has been unable to complete Phase I, sell any platted lots in Phase II, or move forward with the development of lots in Phases III-VI. Pursuant to the terms of the Plan, the Debtor proposes three treatment options for the claims of Capital. The Plan permits the Debtor to select which option it prefers. (I) Option One Pursuant to Option One, the Debtor would pay Capital a lump sum payment of 50% of its secured claim within 180 days of the effective date. If the Debtor fails to pay the claim in full within 180 days, the Debtor would develop, market, and sell lots. From the lot sales, Capital would receive 40% of the net sales proceeds. 35% of the net sales proceeds would be earmarked for construction of the amenities and the remaining 25% of the net sales proceeds would be retained by the Debtor for continued development in the subdivision. The Plan does not provide a minimum sales price for lots under Option 1. If the Debtor elects Option 1, after the completion of the amenities, the Debtor proposes to pay to Capital 75% of the net sales price for each lot and retain the remaining 25% for its operational costs. The existing amenities would be immediately transferred to the HOA free and clear of Capital's lien and Phase VII amenities will be transferred to the HOA at a later date. Furthermore, the Debtor would be granted access to its money market account to pay its bills. Capital admitted in its Objection that use of this account is currently restricted. (II) Option Two Under Option Two, the Debtor proposes to surrender certain lots in full satisfaction of all indebtedness owed to Capital. The Debtor would retain Lots 2, 4, 5, 7, 17, 21, 23, 43, 67, and 70 in Phase I and surrender the remaining lots in Phase I, the partially developed lots and raw land in Phases II and III, and the raw land in Phase IV. The Debtor would retain the raw land in Phase V and Phase VI. Any property retained by the Debtor would be free and clear of all liens. Furthermore, the Debtor would transfer Phase VII to the HOA and such transfer would be free and clear of any liens. (III) Option Three Option Three provides that the Debtor surrender to Capital all raw land and developed lots in Phases I-VI in full satisfaction of its claims. The Debtor would transfer Phase VII to the HOA and such transfer would be free and clear of any liens of Capital. As part of Option Three, Capital would be required to pay the Debtor $8,000,000 and release the funds, in the amount of approximately $500,000, held in the Debtor's money market account. Plan Objections Capital contends that the Disclosure Statement fails to provide sufficient information about how the Debtor intends to implement its Plan and fails to include adequate information as required by Section 1125 of the Bankruptcy Code. In addition, Capital states that the Plan improperly prefers equity holders; is not feasible; does not satisfy the best interest of creditors test in that it fails to provide Capital with as much as it would receive in a liquidation; is not fair and equitable; improperly releases the collateral of Capital without compensation or its consent; and improperly protects non-debtor guarantors from potential liability in connection with Capital's claims. The Bankruptcy Administrator provided a synopsis of the proposed treatment of Capital's claims and recognized that Capital was likely to object to the Plan. The Bankruptcy Administrator noted that the Plan provided that unsecured creditors are to be paid in full, with payments of $12,416.63 per quarter for five years. Based on the value of the Project espoused by the Debtor, there would be substantial equity in the Project, thereby, requiring payment in full to unsecured creditors plus interest. The Plan fails to provide that interest will be paid to the unsecured creditors' class. In addition to his objection regarding the treatment of unsecured creditors, the Bankruptcy Administrator contends that the Plan is not feasible. Option Two and Option Three contain an exchange of all or a portion of the Project, the real estate collateral or "dirt," in full satisfaction of debt owed to Capital. The proposed exchanges preclude any recovery from Capital on a deficiency claims or claims against any of the guarantors should Capital not recover its claims in full from the Debtor. During the course of the hearing, the Debtor abandoned Plan Options One and Three. Judge Doub said confirmation of the Plan based on the proposed treatment of Capital under Option Two is denied. A copy of the Court's April 14, 2011 Order is available at http://is.gd/iZ5aRBfrom Leagle.com. About The Legacy at Jordan Lake Headquartered in Apex, North Carolina, The Legacy at Jordan Lake, LLC, filed for Chapter 11 bankruptcy protection on April 27, 2010 (Bankr. E.D. N.C. Case No. 10-03317). Trawick H. Stubbs Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million. LITTLE REST: Seeks Dismissal of Involuntary Petition ---------------------------------------------------- Little Rest Twelve Inc. has asked the U.S. Bankruptcy Court for the Southern District of Florida to dismiss the involuntary Chapter 11 case filed by its creditors. Solby+Westbrae Partners, 19 SHC Corp., Ajna Brands Inc., 601/1700 NBC LLC, Axafina Inc. and Oxana Adler LLM filed a petition on March 17, 2011, to force Little Rest and its two affiliates into an involuntary bankruptcy. In a court filing, Little Rest said the claims asserted by the creditors are subject to a "bona fide dispute" and does not meet the requirement of Section 303(b) of the Bankruptcy Code that petitioning creditors must have undisputed claims. Little Rest is questioning in particular the authenticity of a promissory note made in January 2009, which, the company believes, is a fraud. Three of the petitioning creditors, Solby+Westbrae, 19 SHC and 601/1700 NBC, claim to hold a debt stemming from the assignment of that note. Little Rest also argued that the petitioning creditors' claims in the aggregate fail to meet the minimum threshold claim amount of $14,425 pursuant to Section 303(b). The company further said that the petition was filed in bad faith and was intended to prevent the New York Supreme Court from ruling in a lawsuit, styled Little Rest Twelve Inc., et al. v. Raymond Visan, et al., which would determine the issue of ownership and control of the company. In a related development, Little Rest's affiliate Mutual Benefits Offshore Fund Ltd., filed court papers in its Chapter 11 case calling for the dismissal of the creditors' involuntary petition. The Bankruptcy Court will hold a hearing on May 17, 2011, at 3:00 p.m., to consider the proposed dismissal of the involuntary petition. Solby+Westbrae Partners; 19 SHC, Corp.; Ajna Brands, Inc.; 601/1700 NBC, LLC; Axafina, Inc.; and Oxana Adler, LLM, filed an involuntary Chapter 11 petition against Miami Beach, Florida-based Little Rest Twelve, Inc. (Bankr. S.D. Fla. Case No. 11-17061) on March 17, 2011. On the same date, involuntary Chapter 11 petitions were also filed against the Company's affiliates, Mutual Benefits Offshore Fund, LTD (Bankr. S.D. Fla. Case No. 11-17051) and Fisher Island Investments, Inc. (Bankr. S.D. Fla. Case No. 11-17047). LITTLE TOKYO: Court Approves First-Citizens Deal to Exit Chap. 11 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, approved the settlement between Little Tokyo Partners, L.P., and First-Citizen Bank & Trust Company, as successor to First Regional Bank, which provided for the Debtor's exit from bankruptcy. As reported by the Troubled Company Reported on March 29, 2011, the deal provides for the restructuring of the Debtor's loan with FRB, which will be partially guaranteed by certain guarantors. FRB originally extended to the Debtor a $44 million loan in 2007. In 2008, FRB released all obligations under the loan guaranties. In 2009, the Debtor redefined the FRB loan wherein the Debtor borrowed from FRB $33.6 million, by which the Kyoto Grand Hotel was used to secure the new loan -- the Bank Hotel Note. The $10.4 million remaining balance on the Old Loan was secured by the Weller Court mall -- the Bank Weller Note. Under the settlement, the Debtor will pay the Lender (i) $5 million principal pay down on the Hotel Loan; (ii) payment of the Post-December Accrued Interest Amounts for both Loans; (iii) payment of $200,000 for the "Seville Breakup Fee;' and (iv) payment in full of the "Hawaii Land Loan." The settlement also calls for the modification of the loans. The new maturity date is Dec. 31, 2014. Interest only payments will be at the existing floating contract rate of interest with maximum of 1% increase in any 12 month period. Principals will execute new guaranties with respect to each Loan. Moreover, the Parties will exchange mutual releases on their pending disputes. The settlement further provides that the parties will seek dismissal (i) with prejudice of the adversary proceeding commenced by the Bank seeking to avoid the December 2008 releases of the guarantors, and (ii) of the Debtor's bankruptcy case. Accordingly, the Debtor also seeks voluntary dismissal of its Chapter 11 Case. The Debtor asserts that its request is warranted as its bankruptcy case was initiated primarily to restructure the Bank's secured claims and the current settlement achieves that goal. While the Debtor no longer need the protections of Chapter 11 once the settlement is approved, the Debtor seeks that the Court retains jurisdiction on limited matters, including: (a) setting hearings and entering orders on final fee applications to be submitted by professionals employed by the Debtor or the Official Committee of Unsecured Creditors; (b) deciding matters related to disputed claims; (c) overseeing any administrative matter that may arise in connection with implementing the dismissal; and (d) entering ministerial orders as necessary to implement the dismissal; and (4) dismissing the Adversary Proceeding, with prejudice. About Little Tokyo Little Tokyo Partners LP filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-39113) on July 15, 2010, in Los Angeles, California. The Debtor estimated assets and debts of $10,000,001 to $50,000,000 as of the Chapter 11 filing. Little Tokyo, the owner of the Kyoto Grand Hotel in downtown Los Angeles, was facing mortgage foreclosure on July 16. The property has two mortgages totaling $44 million. There was a default since January. Financial problems were caused by a "precipitous drop in revenue starting in the last quarter of 2008," a court filing says. Kyoto Grand is a 21-story hotel built in 1977. It has 434 rooms. It adjoins the three-story Weller Court outdoor mall, which is also in Chapter 11. LOCATEPLUS HOLDINGS: Derrick Spatorico Elected to Board ------------------------------------------------------- The Board of Directors of LocatePLUS Holdings Corporation on March 15, 2011, appointed Derrick Spatorico as director to fill the vacancy arising from the recent resignation of Christian Williamson. Mr. Spatorico has previously served the company and is a former board member. Derrick Spatorico is the son of Anthony Spatorico who is also a Director. About LocatePLUS Holdings Beverly, Mass.-based LocatePLUS Holdings Corporation, through itself and its wholly-owned subsidiaries LocatePLUS Corporation, Worldwide Information, Inc., Entersect Corporation, Dataphant, Inc., and Employment Screening Profiles, Inc. are business-to- business, business-to-government and business-to-consumer providers of public information via its proprietary data integration solutions. In the Form 10-Q for quarter ended Sept. 30, 2010, the Company noted that it has sustained net losses of $639,916 and $2.8 million for the fiscal periods ended Sept. 30, 2010, and Dec. 31, 2009, respectively. The Company has an accumulated deficit of $53.9 million, a stockholders' deficit of $9.0 million and a working capital deficit of $6.3 million at Sept. 30, 2010. These factors raise substantial doubt about the Company's ability to continue as a going concern, the Company said. The Company's balance sheet at Sept. 30, 2010, showed $2.5 million in total assets, $11.5 million in total liabilities, and a stockholders' deficit of $9.0 million. M&M CONTRACTING: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: M&M Contracting of Jasper, Inc. 1950 Highway 53 West Jasper, GA 30143 Bankruptcy Case No.: 11-21665 Chapter 11 Petition Date: April 20, 2011 Court: U.S. Bankruptcy Court Northern District of Georgia (Gainesville) Judge: Robert Brizendine Debtor's Counsel: G. Frank Nason, IV, Esq. LAMBERTH, CIFELLI, STOKES ELLIS & NASON 3343 Peachtree Road, NE, Suite 550 Atlanta, GA 30326 Tel: (404) 262-7373 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/ganb11-21665.pdf The petition was signed by Boyd Lee Mullins, Jr., president. MANSIONS AT HASTINGS: Taps Joyce McFarland as Special Counsel ------------------------------------------------------------- Mansions at Hastings Green, LP, and Mansions at Hastings Green Senior, LP, seek permission from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to employ Joyce, McFarland + McFarland, LLP, as special counsel. As special counsel, Joyce McFarland will provide the Debtors with legal advice and services with respect to: (a) investigating, filing and prosecuting potential claim objections to the claims of Robert Burchfield and Nations Construction Management; (b) to represent the Debtors' interest in the Adversary Proceeding styled James Fred Hofheinz and Nantions Construction Management, Inc., v. Red Capital Markets, LLC, SCDC, LLC, and John Does 1-10, case no. 11-03026 related to the claims asserted by Nations Construction Management and James Fred Hofheinz, including the pursuit of affirmative claims/third party claims of the Debtors against Robert Burchfield, Mansions At Hasting Green I, LLC, Mansions At Hastings Green Senior I, LLC, Nations Construction Management, and James Fred Hofheinz; and (c) to assist, advise and represent the Debtors in filing avoidance actions under Sections 544, 545, 547, 548, 550 and 553 of the Bankruptcy Code as they relate to Robert Burchfield, Mansions At Hastings Green I, LLC, Mansions At Hastings Green Senior I, LLC, Nations Construction Management, James Fred Hofheinz, Feniksas and other affiliated parties. The Debtors will pay the professionals of Joyce McFarland according to their hourly rates: Jeff Joyce, Esq. $550 John H. McFarland, Esq. $435 Karen Chrisholm Brisch, Esq. $400 Lindsey Eubank Simmons, Esq. $295 Benjamin C. Wickert, Esq. $260 Legal Assistants/Paralegals $175 The Debtors will also reimburse the firm for any necessary out-of- pocket expenses. Jeff Joyce, Esq., at Joyce, McFarland + McFarland, LLP, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors' estates. Mr. Joyce, however, discloses that he has represented the Debtors limited partners and affiliates in various matters relating to the Mansions Family and Mansions Senior properties. Specifically, he and his firm represented, and continues to represent, the Debtors' Investor Limited Partners, namely Red Capital Tax Credit Fund XXIV, LLC and Red Capital Tax Credit Fund XXVIII. In addition, Mr. Joyce represents SCDC, LLC, and Red Capital Markets, LLC, in the Insider Litigation. SCDC, LLC, serves as the Debtors' Special Limited Partner. Red Capital Markets, LLC, is an affiliate of SCDC, LLC and the Investor Limited Partners. According to Mr. Joyce, he and his firm will continue to represent SCDC, LLC, and Red Capital Markets, LLC, in the Insider Litigation or related adversary proceedings, and other unrelated matters. However, he and his firm will not represent SCDC, LLC, and Red Capital Markets, LLC, or the Investor Limited Partners in any matter adverse to the Debtors. The Firm may be reached at: Joyce, McFarland & McFarland LLC Attn: Jeff Joyce 712 Main Street, Suite 1500 Houston, Texas 77002 A hearing on the employment application is set for May 10, 2011, at 11:15 a.m. Columbus, Ohio-based Mansions at Hastings Green, L.P., dba The Mansions at Hastings Green, A Multifamily Community, and Mansions at Hastings Green Senior, LP, filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 10-39474) on Oct. 22, 2010, represented by Annie E. Catmull, Esq. -- catmull@hooverslovacek.com -- Edward L. Rothberg, Esq. -- rothberg@hooverslovacek.com -- and T. Josh Judd, Esq. -- judd@hooverslovacek.com -- at Hoover Slovacek LLP; and Vincent P. Slusher, Esq. -- vince.slusher@dlapiper.com -- at DLA Piper (US) LLP. MARONDA HOMES: Taps Manion McDonough as Bankruptcy Counsel ---------------------------------------------------------- Maronda Homes, Inc., et al., ask for authorization from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Manion McDonough & Lucas, P.C., as bankruptcy counsel. Manion McDonough can be reached at: Joseph F. McDonough, Esq. MANION MCDONOUGH & LUCAS USX Tower, Grant Street, Suite 1414 Pittsburgh, PA 15219 Tel: (412) 232-2000 Fax: (412) 232-0206 E-mail: jmcdonough@mmlpc.com Manion McDonough will charge the Debtors based on the hourly rates of its professionals: Joseph F. McDonough $435 James G. McLean $350 Associates $185-$315 Paralegals $115 Joseph F. McDonough, Esq., a member at Manion McDonough, assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Roberta A. DeAngelis, United States Trustee for Region 3, objects to the Debtors' hiring of Manion McDonough as bankruptcy counsel, saying that Manion McDonough's simultaneous representation of a creditor holding substantial claims against the bankruptcy estates of the Debtors raises serious adverse interest and loyalty issues. The Debtors say that more than five years ago, Manion McDonough represented PNC Bank, National Association, and Key Bank National Association in matters having no relationship to or connection with the Debtors. Maronda, based in Clinton, Pennsylvania, near Pittsburgh, builds homes in Florida, Pennsylvania, Georgia and Kentucky. It filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 11- 22418) on April 18, 2011. The Debtor estimated its assets at $100 million to $500 million and debts at $50 million to $100 million. The petition was signed by Ronald W. Wolf, president/CEO. Affiliates Maronda Homes, Inc. of Ohio (Bankr. W.D. Pa. Case No. 11-22422) and Maronda Homes of Cincinnati, LLC (Bankr. W.D. Pa. Case No. 11-22424) simultaneously filed separate Chapter 11 petitions on April 18, 2011. METAMORPHIX INC: Court OKs Chapter 7 Conversion ----------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that after selling its assets to noteholders for a $6 million credit bid, and with its directors and officers absent, MetaMorphix Inc. won a Delaware bankruptcy court's blessing on April 20, 2011, to convert its Chapter 11 case into a Chapter 7 liquidation. About MetaMorphix, Inc. Beltsville, Maryland-based Metamorphix, Inc. -- http://www.metamorphixinc.com-- a life sciences company, along with its subsidiary MMI Genomics, Inc., develops tools, technologies, and products for livestock and companion animal health and productivity. The Company offers systems for DNA-based parent verification and diagnostic testing in livestock and companion animals. Metamorphix had been forced into Chapter 7 bankruptcy by 14 creditors who are owed $1.69 million. The original case was filed on Jan. 28, 2010, in the U.S. Bankruptcy Court for the District of Delaware. On Sept. 30, 2010, the Court converted the case from an involuntary Chapter 7 to a voluntary Chapter 11 case (Bankr. D. Del. Case No. 10-10273). MetaMorphix's subsidiary, MMI Genomics Inc., filed for Chapter 11 (Bankr. D. Del. Case No. 10-13775) on Nov. 18, 2010. Adam Hiller, Esq., Donna L. Harris, Esq., and Kevin M. Capuzzi, Esq., at Pinckney, Harris & Weidinger, LLC, in Wilmington, Del., represent the Debtors as counsel. Metamorphix disclosed assets of $314,000 and debt of $79.5 million in its Schedules of Assets and Liabilities. MMI Genomics disclosed assets of $1.28 million and debt of $10.9 million. The cases are jointly administered under Case No. 10-10273. METISCAN INC: Large Accumulated Deficit Cues Going Concern Doubt ---------------------------------------------------------------- Metiscan, Inc., filed on April 12, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Eugene M Egeberg, CPA, in Baltimore, expressed substantial doubt about Metiscan's ability to continue as a going concern. The independent auditor noted that the Company the Company has a large accumulated deficit through Dec. 31, 2010. The Company reported a net loss of $438,374 on $2.53 million of revenues for 2010, compared with a net loss of $1.42 million on $2.54 million of revenues for 2009. At Dec. 31, 2010, the Company's balance sheet showed $12.03 million in total assets, $4.58 million in total liabilities, all current, and stockholders' equity of $7.45 million. A complete text of the Form 10-K is available for free at: http://is.gd/2sN8bs Dallas, Tex.-based Metiscan, Inc. (OTC PK: MTIZ) -- http://www.metiscan.com/-- is the parent company of a portfolio of enterprises with operations in healthcare, healthcare IT, mobile technology and employment services. MFJT LLC: Seeks to Employ Crane Heyman as Counsel ------------------------------------------------- MFJT, LLC seeks the permission of Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois to employ David K. Welch, Esq., Arthur G. Simon, Esq., Jeffrey C. Dan, Esq., and the law firm of Crane, Heyman, Simon, Welch & Clar as its counsel. As the Debtor's counsel, CHSWC will: (a) prepare necessary applications, motions, answers, orders, adversary proceedings, reports and other legal papers; (b) provide the Debtor with legal advice with respect to its rights and duties involving its property as well as its reorganization efforts; (c) appear in court and to litigate whenever necessary; and (d) perform any and all other legal services that may be required from time to time in the ordinary course of the Debtor's business during the administration of this bankruptcy case. CHSWC is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Before the Petition Date, CHSWC was paid $100,000 as an advance payment retainer for its representation of the Debtor in this bankruptcy case and related matters. All compensation and reimbursement of expenses to CHSWC are subject to the further order of the Court. Alsip, Illinois-based MFJT, LLC -- dba Somerset Park Apartments and Somerset II -- filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-11819) on March 22, 2011. David K. Welch, Esq., at Crane Heyman Simon Welch & Clar, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. MFJT LLC: Seeks to Employ Tailwind Services as Financial Advisor ---------------------------------------------------------------- MFJT, LLC sought and obtained permission from Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois to employ Tailwind Services, LLC as its financial advisor, nunc pro tunc to March 22, 2011. As the Debtor's financial advisor, Tailwind will: (a) assist with the administration of the Chapter 11 case, including the preparation of schedules and monthly operating reports; (b) assist with the restructuring of the mortgage indebtedness on the Debtor's properties; (c) identify and implement a cohesive cash management system for the Debtor's properties; (d) assist with the substantive consolidation of the Debtor's case with related cases; and (e) assist with the formulation of a plan of reorganization and disclosure statement. The Debtor will pay to Tailwind a monthly flat fee amount of $7,500, of which $5,625 per month will be paid by the Debtor, subject to a reduction in the Debtor's share of the monthly amount based on the engagement of Tailwind in other related bankruptcy cases. Tailwind was paid a prepetition advance payment retainer of $7,500 by the Debtor, for its engagement as the Debtor's Financial Advisor. Tailwind is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Alsip, Illinois-based MFJT, LLC -- dba Somerset Park Apartments and Somerset II -- filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-11819) on March 22, 2011. David K. Welch, Esq., at Crane Heyman Simon Welch & Clar, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. MGIC INVESTMENT: Posts Third Straight Quarterly Loss ---------------------------------------------------- Carla Main at Bloomberg News reports that MGIC Investment Corp. posted its third straight loss as the housing slump deepened. The first-quarter net loss of $33.7 million, or 17 cents a share, compares with a loss of $150.1 million, or $1.20, in the year- earlier period, the Milwaukee-based company said in a statement. The operating loss, which excludes some investment results, was 20 cents a share, missing by 7 cents the average estimate by eight analysts surveyed by Bloomberg. MGIC, which pays lenders when homeowners default and foreclosures fail to recoup costs, suffered losses along with rivals PMI Group Inc. and Radian Group Inc. as the number of soured loans surged during the recession. U.S. home prices fell 3.9% in January from a year earlier as the housing market struggled to recover from the worst crash in seven decades. Policy sales advanced 7.2% to $274.5 million from $256.1 million a year earlier. The insurer said that price changes expected from government-backed mortgage insurance may make its coverage more competitive for individuals with high credit scores. MGIC Investment Corporation is a holding company. Through its wholly owned subsidiaries, the Company provides private mortgage insurance in the United States. As of Dec. 31, 2009, the Company's principal subsidiary, Mortgage Guaranty Insurance Corporation, was licensed in all 50 states of the United States, the District of Columbia, Puerto Rico and Guam. During the year ended Dec. 31, 2009, MGIC wrote all of its new insurance throughout the United States. In addition to mortgage insurance on first liens, the Company, through its subsidiaries, provides lenders with various underwriting, and other services and products related to home mortgage lending. There are two principal types of private mortgage insurance: primary and pool. As of Dec. 31, 2009, the Company was not issuing new commitments for pool insurance. MICHAEL R MASTRO: Case Trustee Rejects $7.1MM Judgment Offer ------------------------------------------------------------ Seattle Times business reporter Eric Pryne reported that the bankruptcy trustee seeking millions from Michael R. Mastro and associates rejected a proposed agreement that the bankrupt developer owes $7.1 million but didn't do anything wrong. The report noted that Bankruptcy Judge Marc Barreca said he would rule today on Ms. Ireland's proposal. According to the report, representatives of Mr. Mastro offered on April 19 to accept a court order decreeing Mr. Mastro must pay $7.1 million to his creditors. But Faith Ireland, the guardian representing Mr. Mastro, said the judgment would be uncollectable, because Mr. Mastro is broke. And she said Mr. Mastro won't agree to formal findings that he engaged in fraud, as trustee James Rigby alleges. According to the report, Ms. Ireland's proposal came on the opening day of a trial in federal bankruptcy court in which Mr. Rigby seeks to recover tens of millions from Mr. Mastro and others for what the trustee contends were fraudulent transactions designed to shield assets from creditors. According to the report, Spencer Hall, one of Mr. Rigby's lawyers, said that while the trustee is pleased Mr. Mastro is accepting liability, Ms. Ireland's offer isn't enough. Mr. Hall pointed out that Mr. Mastro essentially is proposing to "leave the courtroom with no adverse consequences." Mr. Hall added, "I just don't think he has the right to do that." The report noted that Mr. Hall said Mr. Mastro wants to avoid formal findings that he did anything wrong because that could influence a Justice Department criminal investigation targeting him. The trustee also believes Mr. Mastro still has concealed assets, his lawyer said. About Michael R. Mastro Michael R. Mastro began working as a real estate lender and developer in 1965. Mr. Mastro, doing business as Mastro Properties, owned and developed residential, multi-family, and commercial real estate. Mr. Mastro's development projects included residential subdivisions, apartment or condominium complexes, warehouses, and office buildings. Mr. Mastro also made real estate secured loans to borrowers who could put up real property for collateral. On July 10, 2009, three banks, Columbia Bank, First Sound Bank, and Venture Bank, filed an involuntary chapter 7 bankruptcy petition against Mr. Mastro. Initially, Mr. Mastro challenged the basis for the filing of the petition. However, in August 2009, Mr. Mastro consented to the bankruptcy petition. Mr. Mastro's bankruptcy filings list total assets of approximately $250 million and total liabilities of more than $550 million. The Securities Administrator of the State of Washington has alleged that Mr. Mastro violated the Securities Act of Washington. Among other things, when offering and selling the promissory note investments, Mr. Mastro caused some investors to believe that their investments would be secured by life insurance policies that had Mastro as the insured. Mr. Mastro failed to disclose to investors that the life insurance policies were not assigned to the investors and that the policies did not name the investors as beneficiaries, so the investors had no protected security interest in the life insurance policies. Earlier in 2011, Mr. Mastro suffered a severe head injury in a fall at his Palm Springs, California, home. The court deemed him incapacitated and appointed Ireland, a former state Supreme Court justice, to act on his behalf. MIDWAY GAMES: Judge Gross Won't Hear Mortal Kombat Dispute ---------------------------------------------------------- WestLaw reports that a Delaware bankruptcy court lacked subject- matter jurisdiction over an adversary proceeding brought by the claimant, which asserted that it held intellectual property interests in a series of the Chapter 11 debtors' videogames, against the debtors and others, and in which, after the debtors' assets were sold, it wished to substitute the asset purchaser as a defendant. The dispute was between two unrelated third parties, and the property at issue no longer comprised part of the bankruptcy estate. The controversy, moreover, did not involve an attempt by the claimant to readjust the terms of the sale or anything which might have even remotely placed the debtors' estate at risk, and nothing required the court to interpret or enforce the sale order. In re Midway Games Inc., --- B.R. ----, 2011 WL 1167757 (Bankr. D. Del.) (Gross, J.). A copy of the Honorable Kevin Gross' Memorandum Opinion dated Mar. 29, 2011, entered in Threshold Entertainment, Inc. v. Midway Games, Inc., et al., Adv. Pro. No. 09-51081 (Bankr. D. Del.), is available at http://is.gd/qu8Pfefrom Leagle.com. MK NETWORK: Bankruptcy Court Dismisses Chapter 11 Cases ------------------------------------------------------- The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York issued an order dismissing the Chapter 11 cases of MK Network, LLC, and its debtor affiliates. As reported by the Troubled Company Reporter on April 20, 2011, Judge Lane authorized the Debtors to enter into a binding term sheet, which memorializes global agreements on the Debtors' Chapter 11 cases and the disposition of the Debtors' prepetition collateral. The term sheet provides that the Debtors' Chapter 11 cases will be closed pursuant to Section 350(a) of the Bankruptcy Code and a final decree will be granted for the Debtors' chapter 11 cases. The Debtors executed the term sheet with Fifth Street Finance Corp. or "FSFC"; Triton Pacific Capital Partners LLC; MedKnowledge Investors, L.P. and MedKnowledge Investors II, L.P.; Erica Keleher, and Michael Keleher, in their individual capacities. Upon review, the Keleher Family Irrevocable Trust u/a 6/19/08 and The Customer Link, Inc. aver that they agree to the terms of the parties' agreement. FSFC is the Debtors' pre-bankruptcy lender. To secure their debt, the Debtors granted to FSFC a lien on all of their assets. Such property and all cash and non-cash proceeds are referred to as the prepetition collateral. When the Debtors filed for bankruptcy, they owed FSFC $16,144,140 in loan obligations plus interest and fees. The term sheet further provides that the Debtors will surrender to FSFC peaceful possession of the Prepetition Collateral to be set from time to time on a list or lists to be prepared by FSFC in its sole discretion, wherever located. The Debtors are only allowed to retain in their account at People's Bank these amounts: -- $50,000 for the reasonable fees incurred by Lowenstein Sandler PC and JH Cohn LLP in connection with the Debtors' cases -- $5,850 for fees due under 28 U.S.C. Section 1930 during the pendency of the Chapter 11 cases -- $1,000 for the renewal of the Debtors' insurance policy issued by Continental Casualty Company The Parties will also exchange mutual releases. About MK Network & Meridian Behavioral MK Network, LLC, and Meridian Behavioral Health Network LLC, along with a number of related entities, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10859). MK Network, LLC and its related affiliates provide medical communication services and assist pharmaceutical and biotechnology brand teams with educating healthcare professionals on the features, benefits and appropriate prescribing of drugs. It collectively employs 47 persons and has a monthly payroll of $270,000. Meridian Behavioral Health Network LLC and its subsidiaries own largest for-profit behavioral healthcare company in Minnesota. It collectively employs approximately 220 persons and have a monthly payroll of approximately $700,000. The MK Network Debtors are MK Network, LLC and its subsidiaries: MedKnowledge Group, LLC; TCL Institute LLC; Insight Interactive Network LLC; MedKnowledge Communications LLC; InteliMed Communications LLC; MK Global Communications LLC; PharMediCom LLC; MES Communications LLC; Center for Health Care Education LLC; Medfinance LLC; Chester Education Group LLC; and The Center for Medical Knowledge LLC. The Meridian Debtors are Meridian Behavioral Health LLC and its subsidiaries: Avalon Programs LLC; Alliance Clinic LLC; Cedar Ridge Treatment Center LLC; Meadow Creek LLC; Odyssey Programs LLC; Tapestry Treatment Center LLC; and, Twin Town Treatment Center LLC. Samuel Jason Teele, Esq., at Lowenstein Sandler, P.C., serves as the Debtors' bankruptcy counsel. Meridian and its subsidiaries had total assets of $13,932,174 and total liabilities of $12,379,110 as of Dec. 31, 2010. MK Network had consolidated assets of $27,334,969 and $29,447,953 as of Dec. 31, 2010. MMFX CANADIAN: Court Okays Pillsbury as Special Corporate Counsel ----------------------------------------------------------------- MMFX Canadian Holdings, Inc. and its debtor affiliates sought and obtained approval from the U.S. Bankruptcy Court for the Central District of California to retain Pillsbury Winthrop Shaw Pittman LLP as their special corporate counsel. Pillsbury was retained to handle the negotiation and the documentation of a potential financial restructuring, debt or equity transaction, licensing transaction or sale of substantially all of the Debtors' assets. Ronald Fleming, Esq., and Jonathan Whitney, Esq., at Pillsbury Winthrop, are anticipated to primarily take the responsibility in representing the Debtors. Other Pillsbury professionals may also be tapped to provide legal services. The Debtors will pay the firm's professionals for their services on an hourly basis and will reimburse them for their expenses. The hourly rates for the firm's attorneys range from approximately $605 to $1,070 for partners and counsel; $365 to $860 for associates; and $115 to $395 for paralegals. Pillsbury and its professionals do not hold or represent interests adverse to the Debtors and their estates. 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 represents the Debtors in their restructuring efforts. MMFX Int'l and MMFX Canadian estimated assets and debts at $50 million to $100 million as of the Chapter 11 filing. MMFX CANADIAN: Committee Authorized to File Documents Under Seal ---------------------------------------------------------------- Judge Robert Kwan has approved a stipulation between the Official Committee of Unsecured Creditors and MMFX Canadian Holdings Inc., which authorizes the Committee to file under seal certain documents containing confidential information. The documents include a motion and other court papers filed by the Committee to terminate the Debtors' exclusive period to file a Chapter 11 plan and solicit votes from their creditors. Judge Kwan ordered that the documents will remain nonpublic and will be made available only to the Court and its staff. The Office of the U.S. Trustee and other parties can also access the documents subject, however, to confidentiality protection and with approval from the Court. 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 represents the Debtors in their restructuring efforts. MMFX Int'l and MMFX Canadian estimated assets and debts at $50 million to $100 million as of the Chapter 11 filing. MONEYGRAM INT'L: Completes Syndication Process of $540MM Facility ----------------------------------------------------------------- MoneyGram International, Inc., announced that the syndication process has been completed for its new $540 million senior secured credit facility consisting of a $150 million, five-year revolving credit facility and a $390 million, six-year term loan. The net proceeds from the term loan under the new credit facility will be used to consummate the Company's previously announced recapitalization and to refinance the Company's existing credit facility. The proposed term loan is expected to bear interest at LIBOR plus 3.25% (with a LIBOR floor of 1.25%). "Completion of the syndication process is an important step toward the consummation of our recapitalization agreement. We are very pleased with the lender group and the terms of this new credit facility and we are hopeful we will be closing on the recapitalization and the new facility in mid-May," said Pamela H. Patsley, MoneyGram's Chairman and Chief Executive Officer." The recapitalization agreement is subject to certain closing conditions, including the approval of the recapitalization by the affirmative vote of a majority of the outstanding shares of the Company's common stock (excluding any common shares held by affiliates of Thomas H. Lee Partners and its co-investors or affiliates of Goldman Sachs) voting on the recapitalization at a special meeting of the Company's stockholders currently scheduled for May 18 and the closing of the new senior credit facility or other satisfactory financing. Closing on the new credit facility is subject to finalization and execution of the new credit agreement with the lenders and customary terms and conditions. Closing on the new credit facility will take place in conjunction with the closing of the recapitalization. About MoneyGram International MoneyGram International, Inc. (NYSE: MGI) -- http://www.moneygram.com/-- is a global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange-listed company with 203,000 global money transfer agent locations in 191 countries and territories. * * * According to the Troubled Company Reporter on July 1, 2010, Fitch Ratings has affirmed the Issuer Default Ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc., at 'B+'. Outlook is stable. Fitch noted that the ratings could be negatively impacted by further declines in remittance volumes driven by macro economic factors or decreases in migrant labor populations worldwide. The Company reported net income of $43.80 million on $1.17 billion of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.91 million on $1.16 billion of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $5.12 billion in total assets, $5.06 billion in total liabilities, $999.35 million in total mezzanine equity, and $942.48 million in total stockholders' deficit. MORTGAGEBROKERS.COM: Incurs $494,009 Net Loss in 2010 ----------------------------------------------------- Mortgagebrokers.com Holdings, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $494,009 on $14.28 million of revenue for the year ended Dec. 31, 2010, compared with net income of $863,679 on $16.85 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $883,248 in total assets, $2.01 million in total liabilities, and a $1.12 million total stockholders' deficit. McGovern, Hurley, Cunningham, LLP, in Toronto, Canada, noted that the Company's operating losses, negative working capital, and total capital deficiency 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/Xl4QDy 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. NACHSHON DRAIMAN: Court Rejects Plan, Mulls Dismissal or Chapter 7 ------------------------------------------------------------------ Bankruptcy Judge John H. Squires denied confirmation of the fourth amended Chapter 11 plan of reorganization filed by Nachshon Draiman amid objections filed by Dynegy Marketing and Trade. Judge Squires, however, rejected Dynegy's bid to dismiss or convert the case. Nonetheless, noting that the case has been pending for approximately two years, the Court set a hearing on May 24, 2011, at 10:00 a.m. to determine whether the case should be converted to Chapter 7 or dismissed. The Court held that the Plan does not satisfy the good faith requirement of Section 1129(a)(3) of the Bankruptcy Code. The Court noted that, although the Debtor is not married and does not have any dependents, the monthly operating reports reflect expensive shopping excursions at women's clothing stores. The Debtor has also withdrawn substantial amounts of cash from his individual bank account during the pendency of his Chapter 11 case. He also has continued to gamble through the pendency of this bankruptcy case. In Dynegy's reply to its motion to dismiss or convert, it attached a response to a subpoena and request for production of documents from Horseshoe Casino Hammond, which was served upon Horseshoe on Dec. 2, 2010 by the Examiner. That response supplied the Debtor's gaming history with Horseshoe Casino Hammond from January 2008 through October 2009. "While casino gambling is not illegal, it is completely unnecessary and unreasonable. The Court finds that such conduct by the Debtor shows a complete lack of regard for repayment of his creditors. Moreover, the Debtor's post-petition gambling is offensive to the integrity of the bankruptcy system," Judge Squires said. A copy of the Court's April 19, 2011 Memorandum Opinion is available at http://is.gd/4zzUp7from Leagle.com. About Nachshon Draiman Nachshon Draiman has interests in healthcare, real estate, and energy procurement (natural gas and electricity). He is the sole proprietor of Future Associates, a management and consulting firm that operates several nursing facilities in the Chicago area, and is the president of Lifescan Laboratory, Inc., a medical testing laboratory. He also is the manager or member in three area nursing home facilities -- Embassy Health Care Center, Inc., Peterson Park Nursing Home, and Burnham Health Care Center; and partner in MNRE Ventures, LLC, a real estate partnership that owns and leases nine residential condominiums in Chicago. MNRE owns six condominium units which are currently in foreclosure. He is also the president and sole shareholder of Multiut Corporation, a supplier of natural gas and electrical energy services. Mr. Draiman filed a voluntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 09-17582) on May 14, 2009. Multiut filed a separate Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 09- 17575) on the same day. Mr. Draiman is represented by Michael L. Ralph, Sr., Esq. -- mralph@rss-chtd.com -- at Ralph, Schwab & Schiever, Chtd. In his petition, Mr. Draiman estimated $1 million to $10 million in assets and $50 million to $100 million in debts. NARAYAN KRUPA: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Narayan Krupa LLC dba Quality Inn Scottsburg 1525 W. McClain Avenue Scottsburg, IN 47170 Bankruptcy Case No.: 11-91165 Chapter 11 Petition Date: April 22, 2011 Court: U.S. Bankruptcy Court Southern District of Indiana (New Albany) Judge: Basil H. Lorch, III Debtor's Counsel: David M. Cantor, Esq. SEILLER WATERMAN LLC 462 4th Street, Suite 2200 Louisville, KY 40202 Tel: (502) 584-7400 E-mail: cantor@derbycitylaw.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 17 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/insb11-91165.pdf The petition was signed by Yogendra Patel, member. NEWPAGE CORP: Curtis Short Elected Interim SVP and CFO ------------------------------------------------------ NewPage Corporation announced that Curtis H. Short, currently controller and chief accounting officer, has been elected as senior vice president and chief financial officer on an interim basis effective May 11, 2011, replacing David J. Prystash, who resigned from NewPage to pursue other opportunities. Mr. Short will serve in the interim role until a permanent replacement is named. Mr. Short joined the company in April, 2009 and is responsible for managing the corporate accounting and reporting process and ensuring that all financial statements and filings are accurate, complete and timely. In addition, he ensures that corporate-wide accounting policies and appropriate controls are in place in accordance with generally accepted accounting principles and works with operations and other finance functions to improve accounting and reporting capabilities. "Curt has a wealth of experience in driving results, enhancing the timeliness and accuracy of financial reporting and improving our finance function," stated George F. Martin, president and chief executive officer for NewPage. "I am confident in his ability to oversee the financial activities for the company as we search for a replacement CFO; and this change in leadership is not expected to have an impact on our business, customers, suppliers or other stakeholders." About NewPage Corp. Headquartered in Miamisburg, Ohio, NewPage Corporation -- http://www.NewPageCorp.com/-- is a coated paper manufacturer in North America, based on production capacity, with $3.1 billion in net sales for the year ended Dec. 31, 2009. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.4 million tons of paper, including approximately 3.2 million tons of coated paper, approximately 1.0 million tons of uncoated paper and approximately 200,000 tons of specialty paper. The Company reported a net loss of $674 million on $3.59 billion of net sales for the year ended Dec. 31, 2010, compared with a net loss of $318 million on $3.10 billion on net sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.51 billion in total assets, $4.39 billion in total liabilities and $875 million in total deficit. * * * NewPage carries a 'CCC+' corporate credit rating from, with negative outlook, from Standard & Poor's. It has 'Caa1' long term corporate family and probability of default ratings from Moody's. Standard & Poor's Ratings Services in November 2010 revised its recovery rating on NewPage Corp.'s senior secured first-lien notes to '4' from '3'. "S&P believes that a '4' recovery more appropriately conveys the risk that the company's postdefault enterprise value may be affected by stresses more severe than what S&P's analysis contemplates given the highly cyclical industry in which NewPage operates," said Standard & Poor's credit analyst Tobias Crabtree. NORTEL NETWORKS: Canada Balks at Bid to Sell Internet Addresses --------------------------------------------------------------- Bert Hill, writing for the Ottawa Citizen, reported that the Canadian federal government objected to Nortel Networks' plan to sell thousands of Internet addresses, warning the action could ultimately help criminals and terrorists. According to the report, Marta Morgan, assistant deputy minister with the industry department in Canada, advised a U.S. bankruptcy court that the sale could create a class of unregulated or "black numbers" beyond the reach of criminal, fraud and antiterrorism investigators. She also said the government disputes the right of Nortel to sell the addresses because it "does not believe that legacy Internet numbers in Canada are property of the persons authorized to use them." The report noted that Nortel unveiled in March that it plans to sell 666,624 Internet addresses to Microsoft for $7.5 million after seeking bids from 80 companies. According to the Ottawa Citizen, the potential sale initially generated interest because it shows how the Internet address on every mobile device and other Internet access point -- the equivalent of house numbers in the real world -- is suddenly becoming a valuable commodity. The reason, the Ottawa Citizen said, is that the current stock of 4.3 billion Internet addresses is expected to start running out later this year. A new almost limitless system, Ipv6, is being introduced but will take time to grow. In the meantime, companies like Microsoft see value in stocking up on old addresses to avoid shortages. According to the Ottawa Citizen, the Canadian government is particularly concerned about legacy addresses issued to Bell Northern Research, a Nortel predecessor, long before the current rules of the Internet took force. It believes the older Nortel numbers are particularly attractive because of "the underlying theory that they are unencumbered and unrestrained by current Internet governance structures." Meanwhile, the Ottawa Citizen noted that Nortel has a deal to sell its former U.S. headquarters campus in Richardson, a suburb of Dallas. Pillar Communications LLC will pay $43 million for two buildings with more than 800,000 square feet of office and lab space and 18.3 surrounding acres. Nortel will keep some space while it winds up operations to the end of this year. Nortel had been trying to sell the space, coming close late last year, before Pillar emerged as the winner among nine bidders. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel Networks divested off key assets while in Chapter 11. In March 2009, the U.S. Bankruptcy Court entered an order approving the sale of the Layer 4-7 assets to Radware Ltd. as the successful bidder at auction. In July 2009, Nortel sold its CDMA and LTE-related assets to Telefonaktiebolaget LM Ericsson (Publ). In September 2009, the Court Nortel sold its Enterprise Solutions business to Avaya Inc. In October 2009, the Court approved the sale of assets associated with Nortel's Next Generation Packet Core network components to Hitachi, Ltd. On Dec. 2, 2009, the Court approved the sale of assets associated with Nortel's GSM/GSM-R business to Telefonaktiebolaget LM Ericsson (Publ) and Kapsch Carriercom AG. In December 2009, the Debtors sold their Metro Ethernet Networks business to Ciena Corporation. In March 2010, Nortel sold its Carrier Voice Over IP and Application Solutions business to GENBAND Inc. In September 2010, Nortel sold its Multi-Service Switch business to Ericsson. Nortel Networks filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. NPS PHARMACEUTICALS: Converts $30.57MM Notes to Common Shares ------------------------------------------------------------- NPS Pharmaceuticals, Inc., received conversion notices from a holder of the Company's 5.75% Convertible Notes due Aug. 7, 2014, converting in the aggregate $30,575,211 of the outstanding principal amount of the Notes. Pursuant to the terms of the Notes, the Notes are convertible into shares of the Company's common stock at any time on or before Aug. 7, 2014 at the conversion rate of $5.44 per share. In connection with the conversion of the Notes, the Company issued 5,620,445 shares of the Company's common stock. The Notes have $16,545,495 of outstanding principal remaining. The Notes were issued on Aug. 7, 2007 in a private placement in reliance on Section 4(2) of the Securities Act of 1933, as amended and Rule 506 promulgated under the Securities Act. About NPS Pharmaceuticals Based in Bedminster, New Jersey, NPS Pharmaceuticals Inc. (Nasdaq: NPSP) -- http://www.npsp.com/-- is developing new treatment options for patients with rare gastrointestinal and endocrine disorders. The Company reported a consolidated net loss of $31.44 million on $89.41 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $17.86 million on $84.15 million of total revenue during the prior year. The Company and its subsidiaries' consolidated balance sheet at Dec. 31, 2010 showed $228.90 million in total assets, $384.18 million in total liabilities and a $155.27 million stockholders' deficit. NPS noted in its Form 10-K for the year ended Dec. 31, 2009, it has not been profitable since its inception in 1986. As of Dec. 31, 2009, it had an accumulated deficit of $922.7 million. "Currently, we are not a self-sustaining business and certain economic, operational and strategic factors may require us to secure additional funds." The Company though believes its existing capital resources at Dec. 31, 2009, along with the receipt of $38.4 million from the sale of its REGPARA royalty stream, should be sufficient to fund its current and planned operations through at least January 1, 2011. NPS PHARMACEUTICALS: Completes 12.65MM Common Stock Offering ------------------------------------------------------------ NPS Pharmaceuticals, Inc., announced the completion of its underwritten public offering of 12,650,000 shares of its common stock, which included 1,650,000 shares sold pursuant to the full exercise of an option granted to the underwriters to purchase additional shares. NPS expects that its net proceeds from the offering will be approximately $107 million after deducting underwriting discounts and commissions and other offering expenses. Citi and Leerink Swann LLC acted as joint book-running managers. Canaccord Genuity Inc. and Needham & Company, LLC are senior co- managers and Brean Murray, Carret & Co., Summer Street Research Partners and ThinkEquity LLC were co-managers for the offering. The securities were offered by NPS pursuant to a registration statement previously filed and declared effective by the Securities and Exchange Commission on Nov. 10, 2010. A final prospectus supplement relating to the offering has been filed with the SEC and is available on the SEC's Web site located at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained by sending a request to the offices of Citi at Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, telephone number (800) 831-9146 or email at batprospectusdept@citi.com or to Leerink Swann LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, telephone number (800) 808-7525, Ext. 4814. About NPS Pharmaceuticals Based in Bedminster, New Jersey, NPS Pharmaceuticals Inc. (Nasdaq: NPSP) -- http://www.npsp.com/-- is developing new treatment options for patients with rare gastrointestinal and endocrine disorders. The Company reported a consolidated net loss of $31.44 million on $89.41 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $17.86 million on $84.15 million of total revenue during the prior year. The Company and its subsidiaries' consolidated balance sheet at Dec. 31, 2010 showed $228.90 million in total assets, $384.18 million in total liabilities and a $155.27 million stockholders' deficit. NPS noted in its Form 10-K for the year ended Dec. 31, 2009, it has not been profitable since its inception in 1986. As of Dec. 31, 2009, it had an accumulated deficit of $922.7 million. "Currently, we are not a self-sustaining business and certain economic, operational and strategic factors may require us to secure additional funds." The Company though believes its existing capital resources at Dec. 31, 2009, along with the receipt of $38.4 million from the sale of its REGPARA royalty stream, should be sufficient to fund its current and planned operations through at least January 1, 2011. PARTSEARCH TECHNOLOGIES: Committee Hires BDO for Tax Services ------------------------------------------------------------- Dow Jones' DBR Small Cap reports that the official committee of unsecured creditors of Partsearch Technologies Inc. is seeking permission to hire BDO USA and BDO Canada as tax-services provider. BDO USA's Randy Schwartzman will primarily provide services to the committee. According to DBR, the firm will provide these services: (A) U.S. Tax Services -- tax compliance services including the preparation of the federal, New Jersey, New York and Texas returns for the fiscal year ending Dec. 31 and for the stub period year ending 2011; and (B) Canadian Tax Services -- tax compliance services including the preparation of the Canadian corporate tax returns and schedules for Partstore Technologies Inc. (Canada) for the taxation years ending Dec. 31, 2009, and 2010 and for the stub period year ending 2011. About Partsearch Technologies Partsearch Technologies Inc., based in Kingston, New York, offers parts for consumer electronics and outdoor power equipment. It doesn't hold inventory of its own. Inventory comes from suppliers. Partsearch filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-10282) on Jan. 27 after discovering it overcharged its largest customer Best Buy Co. Inc. by $5.9 million. William R. Baldiga, Esq., at Brown Rudnick LLP, in New York, serves as counsel. Partsearch disclosed assets for $4 million and total liabilities of $13 million. As reported by the Troubled Company Reporter on March 30, 2011, electronics retailer Best Buy Co. obtained permission to buy Partsearch Technologies for $6.4 million. PAYMENT DATA: Incurs $464,168 Net Loss in 2010 ---------------------------------------------- Payment Data Systems, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $464,168 on $2.62 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $803,526 on $3.22 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.98 million in total assets, $2.12 million in total liabilities, all current, and a $134,309 total stockholders' deficit. Akin, Doherty, Klein & Feuge, P.C., San Antonio, Texas, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has incurred substantial losses since inception, which has led to a deficit in working capital. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/2AZqi3 About Payment Data Systems San Antonio, Tex.-based Payment Data Systems, Inc. provides integrated electronic payment processing services to merchants and businesses, including credit and debit card-based processing services and transaction processing via the Automated Clearinghouse Network. The Company also operates an online payment processing service for consumers under the domain name http://www.billx.com/through which consumers can pay anyone. PINNACLE HILLS: Section 341(a) Meeting Scheduled for May 24 ----------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of Pinnacle Hills West, LLC's creditors on May 24, 2011, at 2:30 p.m. The meeting will be held at the U.S. Federal Building, 35 E. Mountain Street, 4th Floor, Room 416, Fayetteville, Arkansas. 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. Rogers, Arkansas-based Pinnacle Hills West, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ark. Case No. 11-71721). Stanley V. Bond, Esq., at the Bond Law Office, 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. PINNACLE HILLS: Taps Bond Law as Bankruptcy Counsel --------------------------------------------------- Pinnacle Hills West, LLC, asks for authorization from the U.S. Bankruptcy Court for the Western District of Arkansas to employ the Bond Law Office s bankruptcy counsel. Bond Law can be reached at: Stanley V. Bond, Esq. BOND LAW OFFICE P.O. Box 1893 Fayetteville, AR 72701-1893 Tel: (479) 444-0255 Fax: (479) 444-7141 E-mail: attybond@me.com Bond Law will bill the Debtor pursuant to the hourly rates of its professionals: Stanley Bond $250 Branch Fields $175 Stanley V. Bond, Esq., an attorney at the Bond Law, assures the Court that Bond Law is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Rogers, Arkansas-based Pinnacle Hills West, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ark. Case No. 11-71721). The Debtor estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. PLATINUM ENERGY: Incurs $5.13 Million Net Loss in 2010 ------------------------------------------------------ Platinum Energy Resources, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $5.13 million on $20.40 million of oil and gas sales for the year ended Dec. 31, 2010, compared with a net loss of $32.02 million on $17.30 million of oil and gas sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $53.09 million in total assets, $23.73 million in total liabilities, not subject to compromise, $5.10 million in liabilities subject to compromise, related to assets held for sale-discontinued operations, and $24.26 million in total stockholders' equity. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/IOzOXL 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. PLAYLOGIC ENTERTAINMENT: Changes Name to Donar Ventures ------------------------------------------------------- The Board of Directors has decided to change Playlogic Entertainment, Inc.'s name into Donar Ventures, Inc., and no longer use Playlogic Entertainment, Inc. Accordingly, the company started the process with the Securities and Exchange Commission to change the name and the ticker code at the stock exchange. About Playlogic Entertainment Playlogic Entertainment, Inc. (Nasdaq OTC: PLGC.OB) -- http://www.playlogicgames.com/-- is an independent worldwide publisher of digital entertainment software for consoles, PCs, handhelds, mobile devices, and other digital media platforms. Playlogic publishes and distributes products throughout all available channels, both online and offline. Playlogic is headquartered in New York City and in Amsterdam, the Netherlands. The Company's balance sheet at March 31, 2010, showed $14.1 million in assets and $16.5 million of liabilities, for a stockholders' deficit of $2.4 million. As of March 31, 2010, the Company has an accumulated deficit of approximately $82.8 million. In July 2010 Playlogic Entertainment voluntary requested a delay of payments, 'surseance van betaling', the Dutch equivalent of Chapter 11, for its subsidiary Playlogic International N.V and wholly owned subsidiary Playlogic Game Factory B.V. Tough market conditions, late payments by large customers and the delays in projects have forced the company to seek protection under the Dutch bankruptcy laws. POLI-GOLD LLC: Exclusive Plan Filing Period Extended Until June 15 ------------------------------------------------------------------ Judge Randolph J. Haines of the U.S. Bankruptcy Court for the District of Arizona extended the time by which Poli-Gold, L.L.C., has exclusive right to propose a plan of reorganization until June 15, 2011. The time by which the Debtor has exclusive right to solicit acceptances of the plan is likewise extended to August 15. The Troubled Company Reported on March 28, 2011 said David Wm. Engelman, Esq., at Engelman Berger, P.C. in Phoenix, Arizona -- dwe@eblawyers.com -- asserts that the Debtor has been working with its primary secured creditor to formulate a consensual plan of reorganization, and has not, therefore, focused on drafting a unilateral plan. He told the Court that the Debtor sought the secured creditor's consent to the extension request, has not yet heard back on that request and is not expecting to receive opposition to the request. About Poli-Gold Fort Mohave, Arizona-based Poli-Gold, LLC, owns a cabin and RV resort in Panguitch, Utah. It also owns a commercial building/warehouse/storage facility in Fort Mohave, Arizona, as well as a commercial property in Lake Havasu City, Arizona, and some vacant lots in Kingman, Arizona. Poli-Gold filed for Chapter 11 bankruptcy protection on November 17, 2010 (Bankr. D. Ariz. Case No. 10-37018). Engelman Berger, P.C., serves the Debtor as bankruptcy counsel. In its schedules, the Debtor disclosed assets of $30,384,943 and liabilities of $14,401,515 as of the petition date. PURESPECTRUM INC: Incurs $7.97 Million Net Loss in 2010 ------------------------------------------------------- PureSpectrum, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $7.97 million on $79,634 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.31 million on $12,490 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.05 million in total assets, $3.12 million in total assets and a $2.07 million total stockholders' deficit. Going Concern The Company has incurred net losses from operations of $7,972,931 for the year ended Dec. 31, 2010. In addition, at Dec. 31, 2010, the Company has an accumulated deficit of $22,184,093 and negative working capital of approximately $2,560,437. These factors, among others, 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/9QWaKv 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. QUALITY BODY: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Quality Body Shop, Inc. 6753 Thomasville Road, 108-225 Tallahassee, FL 32312 Bankruptcy Case No.: 11-40288 Chapter 11 Petition Date: April 19, 2011 Court: U.S. Bankruptcy Court Northern District of Florida (Tallahassee) Debtor's Counsel: Thomas B. Woodward, Esq. THOMAS B. WOODWARD, ATTY. P.O. Box 10058 Tallahassee, FL 32302 Tel: (850) 222-4818 Fax: (850) 561-3456 E-mail: woodylaw@embarqmail.com Scheduled Assets: $755,100 Scheduled Debts: $1,058,889 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flnb11-40288.pdf The petition was signed by A. Stan Freeman, president. RADIANT OIL: Incurs $2.97 Million Net Loss in 2010 -------------------------------------------------- Radiant Oil & Gas, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $2.97 million on $169,649 of oil and gas revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.27 million on $106,502 of oil and gas revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.27 million in total assets, $6.62 million in total liabilities and a $3.35 million total stockholders' deficit. MaloneBailey LLP, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has recurring losses from operations and has a working capital deficit. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/yHmGTW About Radiant Oil & Gas Houston, Tex.-based Radiant Oil & Gas, Inc., seeks to develop, produce, and acquire oil and natural gas properties along the Gulf Coasts of Texas and Louisiana and on the Outer Continental Shelf of the United States. RADIENT PHARMACEUTICALS: Sees $68MM to $74MM Net Loss in 2010 ------------------------------------------------------------- Radient Pharmaceuticals Corporation announced, as disclosed in the Company's Form 8-K filed with the Securities and Exchange Commission on April 14, 2011, that due to requests for financial information from and related to the Company's deconsolidated Chinese subsidiary Jade Pharmaceuticals, Inc., the Company is not able to complete its audited financial statements for the fiscal year ended Dec. 31, 2010 in a timely manner, and is therefore unable to file its Form 10-K with the SEC by April 15, 2011 as required. JPI indicated they are gathering the requested data and information and RPC expects to receive it shortly. RPC will therefore require additional time to file its Form 10-K for fiscal 2010 with the SEC and expects to file the Form 10-K within the next 30 days. While the Form 10-K has been delayed, RPC provided in the April 14, 2011 Form 8-K, an unaudited consolidated balance sheet as of Dec. 31, 2010 which was presented as an exhibit. The Company expects to report a net loss in the range of $68M-74M compared with net loss of approximately $17M for fiscal 2009. The Company also expects to report approximately $7M-$7.5M as net cash used in operating activities of continuing operations in fiscal 2010 compared to approximately $3.2M in fiscal 2009. As previously reported, the Company requested an appeals hearing before the NYSE Amex Listing Qualifications Panel to explain why the Company's common stock should remain listed on the Exchange. The hearing was held on April 14, 2011 and the Company has not yet received the Panel's determination. The Company will promptly provide an update to the public following receipt of the Panel's determination. About Radient Pharmaceuticals Headquartered in Tustin, Calif., Radient Pharmaceuticals Corporation -- http://www.Radient-Pharma.com/-- is engaged in the research, development, manufacturing, sale and marketing of its ONKO-SURE(TM) a proprietary IVD Cancer Test in the United States, Canada, China, Chile, Europe, India, Korea, Taiwan, Vietnam and other markets throughout the world. Radient said in October 2010 it incurred a trigger event on the 12% Convertible Notes issued in first and second quarter of 2010 due to its failure to have the related registration statement declared effective by June 1, 2010. The Company filed on Sept. 7, 2010, an Event of Default under those same notes occurred since it did not hold the related shareholder meeting by August 31, 2010. As reported in the Troubled Company Reporter on April 19, 2010, KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred a significant operating loss and negative cash flows from operations in 2009 and had a working capital deficit of $4.2 million at Dec. 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $23.56 million in total assets, $34.22 million in total liabilities, and a stockholders' deficit of $10.66 million. RCI REGIONAL: Section 341(a) Meeting Scheduled for May 18 --------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of RCI Regional Grove, LLC's creditors on May 18, 2011, at 2:30 p.m. The meeting will be held at Room 200C, 3685 Main Street, 2nd Floor, Riverside, 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. Temecula, California-based RCI Regional Grove, LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11- 22055) on April 12, 2011. Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and $1 million to $10 million. RED MOUNTAIN: Separate Classification of Deficiency Claim Okay -------------------------------------------------------------- WestLaw reports that a secured lender's deficiency claim was not substantially similar to the general unsecured claims, and the mere fact that the debtors placed the deficiency claim in a separate class from general unsecured claims did not preclude confirmation of their proposed Chapter 11 plan as involving improper gerrymandering of claims to create an impaired, accepting class. The lender's claims, unlike those of general unsecured creditors, was subject to a pending equitable subordination proceeding, and the lender, unlike other general unsecured creditors, could look to the debtors' principals for payment by virtue of their guarantees. Indeed, there was no improper gerrymandering even if the claims were substantially similar, since there were multiple impaired classes accepting the plan. In re Red Mountain Machinery Co., --- B.R. ----, 2011 WL 1428266 (Bankr. D. Ariz.). About Red Mountain Machinery Company Chandler, Ariz.-based Red Mountain Machinery Company (dba Red Mountain Holdings, LLC, Red Mountain Pacific, LLC, and BTH, LLC) and Red Mountain Holdings, LLC, sought chapter 11 protection (Bankr. D. Ariz. Case Nos. 09-19166 and 09-19170) on Aug. 11, 2009. Steven N. Berger, Esq., at Engelman Berger, P.C., represents the Debtors. The Debtors estimated their assets and debts at $10 million to $50 million at the time of the filing. REGAL PLAZA: Taps Charles E. Jack as Real Estate Appraisers ----------------------------------------------------------- Regal Plaza, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Nevada to employ Charles E. Jack Appraisal & Consulting, Inc., as real estate appraisers, nunc pro tunc to September 24, 2010. As appraiser for the Debtor, Jack will provide an appraisal of real property located at 5803, 5831, 5855 West Craig Road, Las Vegas, Nevada, 89130, APN 138-01-312-002, owned by the Debtor. Jack may provide (i) additional appraisals of the Debtor's property as necessary for the completion and verification of the Debtor's schedules and statements, disclosure statement, and plan confirming hearing; and (ii) testimony regarding those appraisals and valuations in conjunction with the Debtor's confirmation hearing. Jack will be paid a fee ranging between $4,000 to $6,000. In the event that further discussions, meetings, expert witness testimony, or report analysis is required, Jack will be paid $275 per hour. Jack will also be reimbursed for any necessary out-of- pocket expenses. Charles E. Jack IV, independent fee appraiser and real estate consultant, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. About Regal Plaza, LLC Las Vegas, Nevada-based Regal Plaza, LLC, owns a shopping center in Las Vegas, Nevada. The shopping center was originally constructed in 2000 on 5.72 acres which are operated as the Regal Plaza. There is 56,097 square feet of rentable space, approximately 22,510 square feet are currently occupied and 23,187 square feet are currently being improved for tenants with signed leases. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-26707) on Sept. 1, 2010. Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm, in Las Vegas, Nev., represents the Debtor as counsel. In its schedules, the Debtor disclosed $10,815,564 in assets and $8,592,879 in liabilities as of the petition date. REGEN BIOLOGICS: Potential Bidder Provides Bankruptcy Loan ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that ReGen Biologics Inc. has lined up bankruptcy financing from a company affiliated with existing stakeholder Ivy Capital Partners LLC, which may also try to buy the maker of orthopedic products out of Chapter 11 protection. ReGen Biologics Inc., filed for Chapter 11 protection following a decision by the Food & Drug Administration in March 2011 to rescind approval of its meniscus implant. ReGen Biologics in Hackensack, New Jersey, sought Chapter 11 protection (Bankr. D. Del. Case No. 11-11083) on April 8, 2011. An affiliate, RBio, Inc., also sought protection from creditors (Case No. 11-11084). Attorneys at Pillsbury Winthrop Shaw Pittman LLP and Phillips, Goldman & Spence represent the Debtors. ReGen disclosed $1,496,261 in assets and $5,208,393 in liabilities as of the Chapter 11 filing. RITE AID: Board Approves Adoption of 2012 Bonus Plan ---------------------------------------------------- The Compensation Committee of the Board of Directors of Rite Aid Corporation approved the adoption of the 2012 Bonus Plan, a cash bonus plan for the Named Executive Officers, other corporate executive officers and key managers, and the performance goals and target bonus percentages under the 2012 Bonus Plan. The 2012 Bonus Plan contains a payout matrix for bonuses based on Rite Aid's attainment of Adjusted EBITDA. Target bonus levels for each participant that are defined as a percentage of base pay were established. Target bonus levels for fiscal year 2012 for each of the Named Executive Officers expressed as a percentage of his or her base pay are: John Standley, the Company's President and Chief Executive Officer, 200%; Frank Vitrano, the Company's Senior Executive Vice President, Chief Financial Officer and Chief Administrative Officer, 125%; Kenneth Martindale, the Company's Senior Executive Vice President and Chief Operating Officer, 125%; and Brian Fiala, the Company's Executive Vice President, Store Operations, 60%. Bonuses equal to a multiple of a participant's target bonus will be paid based on Rite Aid's achievement of the 2012 Adjusted EBITDA performance goals. Bonus payments under the 2012 Bonus Plan increase as performance levels increase between the minimum and the maximum Adjusted EBITDA performance goals. Upon satisfaction of the minimum Adjusted EBITDA performance goal ($810 million), the participant will receive 25% of the target bonus and upon satisfaction of the maximum Adjusted EBITDA performance goal ($980 million), the participant will receive 200% of the target bonus. About Rite Aid Drugstore chain Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- based in Camp Hill, Pennsylvania, has more than 4,700 stores in 31 states and the District of Columbia and fiscal 2010 annual revenues of $25.7 billion. The Company reported a net loss of $555.42 million on $25.21 billion of revenue for the 52 weeks ended Feb. 26, 2011, compared with a net loss of $506.67 million on $25.67 billion of revenue for the 52 weeks ended Feb. 27, 2010. The Company's balance sheet at Feb. 26, 2011, showed $7.55 billion in total assets, $9.76 billion in total liabilities and $2.21 billion in total stockholders' deficit. Rite Aid carries 'Caa2' probability of default and corporate family ratings from Moody's Investors Service. It has a 'B-' corporate credit rating from Standard & Poor's Ratings Services. RIVER ISLAND: Wants to Hire Sandler & Sandler as Attorneys ---------------------------------------------------------- River Island Farms, Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, to employ Martin J. Sandler of the law firm Sandler & Sandler, as attorneys. As attorneys, Sandler will: (a) give advice to the Debtor with respect to its powers and duties as a debtor-in-possession and the continued management of its business operations; (b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's operating guidelines and reporting requirements and with the rules of the court; (c) prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the case; (d) protect the interest of the Debtor in all matters pending before the court; and (e) represent the Debtor in negotiations with its creditors in the preparation of a plan. Martin L. Sandler, Esq., an attorney and shareholder of M.L. Sandler, P.A., dba Sandler & Sandler, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor's estates. Fort Lauderdale, Florida-based River Island Farms, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11- 15410) on Feb. 28, 2011 Martin L. Sandler, Esq., at Sandler & Sandler By M. L. Sandler, P.A., serves as the Debtor's bankruptcy counsel. The Debtor estimated assets and debts at $10 million to $50 million. RIVER ISLAND: Files Schedules of Assets and Liabilities ------------------------------------------------------- River Island Farms, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $23,500,000 B. Personal Property $474,222 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $11,162,034 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $3,305,774 ----------- ----------- TOTAL $23,974,222 $14,467,808 A copy of the Schedules of Assets and Liabilities is available at http://bankrupt.com/misc/RiverIsland_SAL.pdf Fort Lauderdale, Florida-based River Island Farms, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11- 15410) on Feb. 28, 2011 Martin L. Sandler, Esq., at Sandler & Sandler By M. L. Sandler, P.A., serves as the Debtor's bankruptcy counsel. The Debtor estimated assets and debts at $10 million to $50 million. ROYAL PUBLIC: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Royal Public Fort Myers II, LLC 1605 S. State Street, Suite 112 Champaign, IL 61820 Bankruptcy Case No.: 11-07332 Chapter 11 Petition Date: April 19, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Ft. Myers) Debtor's Counsel: Daniel R. Fogarty, Esq. STICHTER, RIEDEL, BLAIN & PROSSER, PA 110 East Madison Street, Suite 200 Tampa, FL 33602 Tel: (813) 229-0144 E-mail: dfogarty.ecf@srbp.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 Michael J. Henneman and Rodrick L. Schmidt, managers. SCHMITT CONSTRUCTION: Case Summary & Creditors List --------------------------------------------------- Debtor: Schmitt Construction, LLC P.O. Box 497 Harrison, TN 37341 Bankruptcy Case No.: 11-12144 Chapter 11 Petition Date: April 20, 2011 Court: U.S. Bankruptcy Court Eastern District of Tennessee (Chattanooga) Judge: John C. Cook Debtor's Counsel: W. Thomas Bible, Jr., Esq. LAW OFFICE OF W. THOMAS BIBLE, JR. 6918 Shallowford Road, Suite 100 Chattanooga, TN 37421 Tel: (423) 424-3116 Fax: (423) 553-0639 E-mail: jessica@tombiblelaw.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/tneb11-12144.pdf The petition was signed by Larry Schmitt, president. SEAHAWK DRILLING: Shareholders Dispute Bonus Program ---------------------------------------------------- Dow Jones' DBR Small Cap reports that Seahawk Drilling Inc. shareholders argue that uncertainty surrounding the value of Hercules Offshore Inc.'s court-approved offer to buy Seahawk Drilling Inc.'s assets warrants holding off on a bonus program for Seahawk employees that's tied to the deal. Seahawk is proposing to pay 17 employees, including senior managers, bonuses that hinge upon the employees' successfully boosting the going-concern value of the company's assets. Seahawk said it expects to pay out $2.3 million under the program, which the U.S. Bankruptcy Court in Corpus Christi, Texas, will take up Monday. According to DBR, the official committee representing Seahawk's equity holders is questioning how the Houston company can determine now the going-concern value of its assets without knowing the exact price at which Hercules is purchasing Seahawk's assets. As reported by the Troubled Company Reporter on April 20, 2011, Seahawk Drilling is seeking permission to pay $2.3 million in bonuses to executives. 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 (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11, 2011. 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. Seahawk filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore, Inc. As reported by the Troubled Company Reporter on April 11, 2011, the Bankruptcy Court approved an Asset Purchase Agreement between Hercules Offshore and its wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling, pursuant to which Seahawk agreed to sell to Hercules, and Hercules agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and related assets, accounts receivable and cash and certain liabilities of Sellers in a transaction pursuant to Section 363 of the U.S. Bankruptcy Code. According to DBR Small Cap, the deal was valued at about $176 million when it received court approval. Based on previous TCR reports, the purchase price for the Acquisition will be funded by the issuance of roughly 22.3 million shares of Hercules Offshore common stock and cash consideration of $25 million, which will be used primarily to pay off Seahawk's Debtor-in-Possession loan. The number of shares of Hercules Offshore common stock to be issued will be proportionally reduced at closing, based on a fixed price of $3.36 per share, if the outstanding amount of the DIP loan exceeds $25 million, with the total cash consideration not to exceed $45 million. Closing of the deal was expected to occur April 20, 2011. SEALY CORP: Nine Directors Elected at Annual Meeting ---------------------------------------------------- Sealy Corporation held its annual meeting of stockholders on April 14, 2011. The stockholders elected all of Sealy's nominees for directors; ratified the appointment of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the fiscal year ending Nov. 27, 2011; held an advisory vote on executive compensation; and held an advisory vote on the frequency of holding an advisory vote on executive compensation. The directors elected at the meeting are: * Simon E. Brown * Deborah G. Ellinger * James W. Johnston * Gary E. Morin * Dean B. Nelson * Paul J. Norris * John B. Replogle * Richard W. Roedel * Lawrence J. Rogers In light of the voting results with respect to the frequency of advisory votes on executive compensation, Sealy's board of directors has determined that the Company currently intends to hold an advisory vote on the compensation of the Company's named executive officers every three years until the next required vote on the frequency of advisory votes on executive compensation. Sealy is required to hold votes on frequency every six years. About Sealy Corp. Trinity, North Carolina-based Sealy Corp. (NYSE: ZZ) -- http://www.sealy.com/-- is the largest bedding manufacturer in the world with sales of $1.5 billion in fiscal 2008. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy(R), Sealy Posturepedic(R), including SpringFree(TM), PurEmbrace(TM) and TrueForm(R); Stearns & Foster(R), and Bassett(R) brands. Sealy operates 25 plants in North America, and has the largest market share and highest consumer awareness of any bedding brand on the continent. In the United States, Sealy sells its products to approximately 3,000 customers with more than 7,000 retail outlets. Sealy carries 'B' local and issuer credit ratings from Standard & Poor's. The Company reported a net loss of $902,000 on $305.53 million of net sales for the three months ended Feb. 27, 2011, compared with net income of $5.71 million on $311.88 million of net sales for the three months ended Feb. 28, 2010. The Company's balance sheet at Feb. 27, 2011 showed $949.09 million in total assets, $1.02 billion in total liabilities, and $74.11 million in total stockholders' deficit. SENEZ ROOFING: Case Summary & 8 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Senez Roofing, LLC 1060 E. Industrial Drive, Unit K Orange City, FL 32763 Bankruptcy Case No.: 11-02832 Chapter 11 Petition Date: April 19, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Walter J. Snell, Esq. SNELL & SNELL, P.A. 436 N. Peninsula Drive Daytona Beach, FL 32118 Tel: (386) 255-5334 E-mail: snellandsnell@mindspring.com Scheduled Assets: $49,100 Scheduled Debts: $1,308,612 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-02832.pdf The petition was signed by Isaac Senez, manager. SEVERN BANCORP: Announces $1.0 Million Increase in 1Q Earnings -------------------------------------------------------------- Severn Bancorp, Inc., parent company of Severn Savings Bank, FSB, today announced an increase of $975,000 in net income for the quarter ended March 31, 2011 compared to the quarter ended March 31, 2010. Net income was $447,000 or $.00 per share for the fist quarter of 2011, compared to a net loss of $528,000 or ($.10) for the first quarter of 2010. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends. "We are pleased to report year-over-year improvement in earnings as we continue to steer through the sluggish economic recovery," said Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued, "We persist in our efforts to balance ensuring sustained shareholder value, increasing regulatory demands being placed on financial institutions and providing excellent full service banking to Anne Arundel County residents and businesses." About Severn Savings Bank Founded in 1946, Severn Savings Bank, FSB -- http://www.severnbank.com/-- is a full-service community bank offering a wide array of personal and commercial banking products as well as residential and commercial mortgage lending. It has assets of nearly $1 billion and four branches located in Annapolis, Edgewater and Glen Burnie. The bank specializes in exceptional customer service and holds itself and its employees to a high standard of community contribution. Severn Bancorp, Inc., (Nasdaq: SVBI) is the parent company of Severn Savings Bank. As reported by the TCR on Nov. 25, 2009, Annapolis, Maryland- based Severn Bancorp along with its Bank unit, has entered into supervisory agreements with the Office of Thrift Supervision, the Bank's primary federal regulator. The agreements set forth steps being taken in response to regulatory concerns with its operating results and effects of the current economic environment facing the financial services industry. The Company's balance sheet at Dec. 31, 2010 showed $962.54 million in total assets, $856.44 million in total liabilities and $106.10 million in total stockholders' equity. SHIPPERS' CHOICE: Creditor Challenges Motion for Final Decree ------------------------------------------------------------- Creditor Commercial Driver Services, Inc., objected to the motion by Shippers' Choice of Virginia, Inc., for final decree closing its bankruptcy case and for filing a Chapter 11 Final Report. CDS also filed a motion to compel distributions, and a motion to dismiss the case. Shippers' Choice and CDS have engaged in settlement discussions in an effort to resolve the Objection. A hearing has been scheduled on the Objection for June 2, 2011, at 2:00 p.m. Shippers' Choice and CDS have agreed that Shippers' Choice will be granted a two-week extension of time in which to respond to the Objection so that its response is due on or before April 29, 2011. A copy of the parties' stipulation, approved April 18 by Judge Nancy V. Alquist, is available at http://is.gd/upvTj9from Leagle.com. Shippers' Choice of Virginia, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 04-17933) in 2004. Shippers' Choice is represented by: Alan M. Grochal, Esq. TYDINGS & ROSENBERG LLP 100 East Pratt Street Baltimore, MD 21202-1062 Tel: (410) 752-9700 E-mail: agrochal@tydingslaw.com Attorneys for Commercial Driver Services, Inc., is represented by: Gary H. Leibowitz, Esq. Cole Schotz Meisel Forman & Leonard, P.A. 300 East Lombard Street #2000 Baltimore, MD 21202 Tel: (410) 230-0660 E-mail: gleibowitz@coleschotz.com SI INVESTMENTS: 11th Cir. Affirms Ruling on 99-Year Lease --------------------------------------------------------- Lori D. Ritenour, Steven G. Ritenour, Plaintiffs-Appellant, v. Les S. Osborne, Defendant-Appellee, No. 10-12627 (11th Cir.), is an appeal from the district court's June 3, 2010 order, confirming two orders of the bankruptcy court in the Chapter 11 case of SI Investments. In the district court, appellants claimed that the bankruptcy court erred in (1) declining to invalidate a 99-year lease that was assigned to the debtor, and (2) concluding that certain escalator provisions of the lease were waived for purposes of determining the cure amount owed to appellants. The district court found no such error and affirmed the challenged bankruptcy court rulings. Having heard argument of counsel, a three-judge panel of the Eleventh Circuit are convinced, for the reasons the district court stated in its June 3 order, that the bankruptcy court did not err as appellants claim. The district court's judgment is affirmed. The three-judge panel consists of Circuit Judges Gerald Bard Tjoflat and Rosemary Barkett, and District Judge John E. Steele of the Middle District of Florida, sitting by designation. A copy of the Eleventh Circuit's April 21, 2011 per curiam decision is available at http://is.gd/1HzGXRfrom Leagle.com. SILVIA JIMENEZ: House Necessary for Effective Reorganization ------------------------------------------------------------ Bankruptcy Judge Margaret M. Mann denied U.S. Bank National Association's request for relief from automatic stay in the bankruptcy case of Silvia Jimenez. Ms. Jimenez filed her Chapter 11 petition (Bankr. S.D. Calif. Case No. 10-18065) on Oct. 9, 2010. Ms. Jimenez, together with her husband Juan Carlos, owns the real property located at 410 Montgomery Street in Chula Vista, California. The Property has three units -- Ms. Jimenez resides in one unit, her father resides in another, and a tenant resides in the third. Currently the monthly rent received from the Property is $1,750. The Property is encumbered by a deed of trust securing a promissory note payable on its face to Alliance Bancorp, executed in connection with a $740,000 loan made by Alliance. A copy of the Note is endorsed as payable to US Bank, as Trustee for Washington Mutual Mortgage Pass through Certificate for WMALT Series 2006-AR7 Trust. The original monthly payment was $2,380.13, however this amount has increased incrementally and US Bank now asserts the monthly payment is $4,197.40. US Bank seeks relief from stay on two statutory grounds: 11 U.S.C. Sec. 362(d)(1) (2011) (cause, including lack of adequate protection of an interest in property), and 11 U.S.C. Sec. 362(d)(2) (2011) (lack of equity and property not necessary for an effective reorganization). Judge Mann said it is undisputed that there is no equity in the Debtor's property, as Ms. Jimenez admits that the fair market value of the Property is $400,000, less than the amount of US Bank's claim. However, the Court must also consider whether the Property is necessary to an effective reorganization. The Property is Ms. Jimenez's residence and the Court cannot conclude at this time that she cannot restructure this debt in her Chapter 11 case. The monthly property report shows rental income for the Property of $1,750, which not only provides sufficient income to make the trial monthly payment of $960.20, but also to cure the default and potentially provide additional income which could fund Jimenez's plan of reorganization. The Court held that the Property is necessary for an effective reorganization. Ms. Jimenez is directed to submit for Court approval an adequate protection plan for curing her post-petition default and providing for future monthly payments. This adequate protection proposal should include default remedies. A status conference will be held on this matter on April 28, 2011 at 2.00 p.m. for further proceedings on the adequate protection to be offered. A copy of Judge Mann's April 11, 2011 Memorandum Decision is available at http://is.gd/wmoVIufrom Leagle.com. SINOBIOMED INC: Dismisses Schumacher & Associates as Accountants ---------------------------------------------------------------- Sinobiomed Inc. dismissed Schumacher & Associates, Inc., as the Company's independent registered public accounting firm on April 14, 2011. On the same date, the Company approved and authorized the engagement of the accounting firm of Burr Pilger Mayer, Inc., as the Company's new independent registered public accounting firm. Schumacher & Associates, Inc.'s report on the Company's financial statements dated March 31, 2011 for the two most recent fiscal years ended Dec. 31, 2010 and 2009 did not contain an adverse opinion or disclaimer of opinion, or qualification or modification as to uncertainty, audit scope, or accounting principles, except that S&A's report contained an explanatory paragraph in respect to the substantial doubt as to the Company's ability to continue as a going concern. In connection with the audit of the Company's financial statements for the two most recent fiscal years ended Dec. 31, 2010 and 2009 through the effective date of dismissal on April 14, 2011, there were no disagreements, resolved or not, with S&A on any matters of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of S&A would have caused them to make reference to the subject matter of the disagreements in connection with their report on the financial statements for those years. During the two most recent fiscal years ended Dec. 31, 2010 and 2009 through the effective date of dismissal of S&A on April 14, 2011, there were no reportable events as described in Item 304(a)(1)(v) of Regulation S-K. During the two most recent fiscal years ended Dec. 31, 2010 and 2009, through the effective date of appointment of Burr Pilger Mayer, Inc., on April 14, 2011, the Company had not, nor had any person on the Company's behalf, consulted with Burr Pilger Mayer, Inc., regarding either the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, nor had Burr Pilger Mayer, Inc., provided to the Company a written report or oral advice regarding those principles or audit opinion on any matter that was the subject of a disagreement as set forth in Item 304(a)(1)(iv) of Regulation S-K or a reportable event as set forth in Item 304(a)(1)(v) of Regulation S-K with the Company's former independent registered public accounting firm. About Sinobiomed Sinobiomed Inc. formerly CDoor Corp. (OTC BB: SOBM) -- http://www.sinobiomed.com/-- was incorporated in the State of Delaware. The Company is a Chinese developer of genetically engineered recombinant protein drugs and vaccines. Based in Shanghai, Sinobiomed currently has 10 products approved or in development: three on the market, four in clinical trials and three in research and development. The Company's products respond to a wide range of diseases and conditions, including: malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration. The Company reported a net loss of US$577,531 on US$0 of revenue for the year ended Dec. 31, 2010, compared with net income of US$3.63 million on US$0 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed US$210,176 in total assets, US$686,095 in total liabilities and US$475,919 in total stockholders' deficit. The Company currently has no operations and no source of income. The Company intends to seek out opportunities to enter or acquire new business operations. The underlying value of the company is entirely dependent on the ability of the Company to find and implement a new business opportunity and obtain the necessary financing to capitalize on such opportunity. Schumacher & Associates, Inc., in Littleton, Colorado, noted that the Company has experienced losses since commencement of operations, and has negative working capital and stockholders' deficit which raise substantial doubt about its ability to continue as a going concern. SKINNY NUTRITIONAL: Incurs $6.91 Million Net Loss in 2010 --------------------------------------------------------- Skinny Nutritional Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $6.91 million on $6.92 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.30 million on $4.14 million of net revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.67 million in total assets, $4.33 million in total liabilities, all current, and a $2.66 million stockholders' deficit. Marcum, LLP, in Bala Cynwyd, Pennsylvania, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company had a working capital deficiency of $3,517,280, an accumulated deficit of $37,827,090, stockholders' deficit of $2,658,043 and no cash on hand. The Company had net losses of $6,914,269 and $7,305,831 for the years ended Dec. 31, 2010 and 2009, respectively. Additionally, the Company is currently in arrears under its obligation for the purchase of trademarks. Under the agreement, the seller of the trademarks may choose to exercise their legal rights against the Company's assets, which includes the trademarks. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/VzlaaW About Skinny Nutritional Bala Cynwyd, Pa.-based Skinny Nutritional Corp. (OTC BB: SKNY.OB) -- http://www.SkinnyWater.com/-- has developed and is marketing a line of enhanced waters, all branded with the name "Skinny Water" that are marketed and distributed primarily to calorie and weight conscious consumers. SONJA TREMONT: Court Denies Hannibal Pictures' Motion to Dismiss ---------------------------------------------------------------- Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York denied, without prejudice, Hannibal Pictures, Inc.'s motion seeking to dismiss or convert the Chapter 11 cases of Sonja Tremont-Morgan and STAM LLC, or, alternatively, to appoint a Chapter 11 trustee. Sonya Tremont is represented by: GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP 1501 Broadway, 22th Floor New York, NY 10036 Tel: (212) 221-5700 Hannibal Pictures are represented by: Robert N. Michaelson, Esq. THE MICHAELSON LAW FIRM 11 Broadway, Suite 615 New York, NY 10004 Tel: (212) 604-0685 Fax: (800) 364-1291 - and - Kenneth C. Greene, Esq. HAMRICK & EVANS, LLP 111 Universal Hollywood Drive Suite 2200 Universal City, CA 91608 Tel: (818) 763-5292 Fax: (818) 763-2308 About Sonja Tremont-Morgan New York City-based Sonja Tremont-Morgan filed for Chapter 11 protection on Nov. 17, 2010 (Bankr. S.D.N.Y Case No. 10-16132). The Debtor disclosed $13,458,749 in assets and $19,839,501 in liabilities as of the Chapter 11 filing. SOUTH PADRE: Files Schedules of Assets and Liabilities ------------------------------------------------------ South Padre Investment, LP filed with the U.S. Bankruptcy Court for the Southern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $12,700,000 B. Personal Property $4,566,680 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $4,711,382 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $11,500 ----------- ----------- TOTAL $17,266,680 $4,722,882 Glendale, California-based South Padre Investment, LP fdba South Padre Investment, Inc. filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 11-20056) on Jan. 29, 2011. James S Wilkins, Esq., at Willis & Wilkins represents the Debtor. SUPERIOR BANCORP: Bank Closed by OTS; FDIC Appointed Receiver ------------------------------------------------------------- Superior Bancorp announced that the Office of Thrift Supervision closed its subsidiary bank, Superior Bank on April 15, 2011, and appointed the Federal Deposit Insurance Corporation as receiver. The Corporation is no longer the parent of Superior Bank. In a virtually simultaneous transaction, Superior Bank, N.A., acquired the operations and deposits and purchased essentially all of the assets of the Bank in a loss-share transaction facilitated by the FDIC and will continue to operate the Bank, according to the FDIC in a press release. The depositors of Superior Bank will automatically become depositors of Superior Bank, N.A., for the full amount of their deposits, and they will continue to have uninterrupted access to their deposits. Customers who have questions about the foregoing matters, or who would like additional information about the closure of the Bank, can visit the FDIC's Web site located at http://www.fdic.gov/bank/individual/failed/superior_al.html, or call the FDIC toll-free at 1-800-640-2538 The Corporation also announced that it received a letter on April 18, 2011 from the NASDAQ Stock Market indicating that in accordance with Listing Rules 5101, 5110(b) and IM-5101-1, the Corporation's shares will be delisted from NASDAQ. The delisting is a result of closure of its wholly-owned subsidiary and principal asset, the Bank, by the Office of Thrift Supervision, and the appointment of the FDIC as received of the Bank. The Corporation does not intend to appeal NASDAQ's decision to delist its common stock. In accordance with this process, trading in the Corporation's common stock will be suspended at the opening of business on April 27, 2011. Trading in the Corporation's common stock was halted by NASDAQ on April 15, 2011. No resumption in trading is expected. As a result of the Bank's receivership, the Corporation is evaluating its alternatives for winding down the affairs of the Corporation, including the possibility of filing a voluntary petition seeking relief under Chapter 7 of Title 11 of the United States Code. About Superior Bancorp Superior Bancorp (NASDAQ: SUPR) is a $3.0 billion thrift holding company headquartered in Birmingham, and the second largest bank holding company headquartered in Alabama. The principal subsidiary of Superior Bancorp is Superior Bank, a southeastern community bank that currently has 73 branches, with 45 locations throughout the state of Alabama and 28 locations in Florida. Superior Bank also operates 23 consumer finance offices in North Alabama as 1st Community Credit and Superior Financial Services. On Sept. 3, 2010, Superior Bancorp entered into a second modification and limited waiver agreement related to a $5.9 million outstanding on its line of credit with a regional bank. The Agreement extends the maturity date to Nov. 3, 2010, and provides a limited waiver of certain rights and covenants under the original loan agreement. In addition, Superior Bancorp has deferred regularly scheduled interest payments on all issues of its junior subordinated debentures relating to its five different issues of trust preferred securities aggregating $118 million in principal amount currently outstanding. During the deferral period, the trusts will likewise suspend the declaration and payment of dividends on the trust preferred securities. The terms of the junior subordinated debentures and the related documents governing the respective issues of trust preferred securities contemplate the possibility of such deferrals and allow Superior Bancorp to defer payments without default or penalty. The deferrals are for up to five years. On Nov. 4, 2010, Superior Bancorp and its principal operating subsidiary, Superior Bank, entered into agreements with the Office of Thrift Supervision, their primary regulator, to continue taking actions to strengthen their financial condition and operations. At Sept. 30, Superior Bancorp had $3.166 billion in total assets and $3.151 billion in total liabilities SWORDFISH FINANCIAL: Incurs $2.69 Million Net Loss in 2010 ---------------------------------------------------------- Swordfish Financial, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $2.69 million on $0 of net sales for the year ended Dec. 31, 2010, compared with a net loss of $1.94 million on $0 of net sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.76 million in total assets, $5.39 million in total liabilities, and a $1.63 million total stockholders' deficit. Patrick Rodgers, CPA, PA, in Altamonte Springs, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the company has suffered recurring losses from operations and negative cash flows from operations the past three years. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/Sh34U4 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. TAYCO, LLC: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Tayco, LLC P.O. Box 32068 Charlotte, NC 28232 Bankruptcy Case No.: 11-31053 Chapter 11 Petition Date: April 21, 2011 Court: U.S. Bankruptcy Court Western District of North Carolina (Charlotte) Judge: George R. Hodges Debtor's Counsel: Travis W. Moon, Esq. MOON WRIGHT & HOUSTON, PLLC 227 West Trade Street, Suite 1800 Charlotte, NC 28202 Tel: (704) 944-6565 Fax: 704-944-0380 E-mail: tmoon@mwhattorneys.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/ncwb11-31053.pdf The petition was signed by Thomas E. Norman, president. TBS INTERNATIONAL: Agrees to Modify Loan Covenants -------------------------------------------------- TBS International plc announced that it and its various lender groups have agreed to modify certain financial covenants through Dec. 31, 2011. Pursuant to the new modifications, the minimum consolidated interest charges coverage ratio has been reduced for the fiscal quarters ending June 30, 2011 through Dec. 31, 2011 from 3.35 to 1.00 to 2.50 to 1.00. In addition, the modifications increased the maximum consolidated leverage ratio for the same periods from 4.00 to 1.00 to 5.10 to 1.00, and reduced the minimum cash requirement from $15 million to $10 million for the period from July 1, 2011 to Dec. 31, 2011. The Company expects that these latest amendments will allow the Company to comply with its various credit facilities through Dec. 31, 2011. Unless the Baltic Dry Index, and the freight and charter rates that TBS obtains, strengthen significantly in the near future, however, it is likely that after Dec. 31, 2011 TBS would fail to meet the tests under certain of its financial covenants. The Company's lenders have agreed to enter into further negotiations at that time, if necessary, to seek further modifications of those financial covenants. About TBS International plc Dublin, Ireland-based TBS International plc (NASDAQ: TBSI) -- http://www.tbsship.com/-- provides worldwide shipping solutions to a diverse client base of industrial shippers through its Five Star Service: ocean transportation, projects, operations, port services and strategic planning. The TBS shipping network operates liner, parcel and dry bulk services, supported by a fleet of multipurpose tweendeckers and handysize/handymax bulk carriers, including specialized heavy-lift vessels and newbuild tonnage. TBS has developed its franchise around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa, the Caribbean and the Middle East. The Company reported a net loss of US$247.76 million on US$411.83 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of US$67.04 million on US$302.51 million of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed US$686.32 million in total assets, US$389.45 million in total liabilities and US$296.87 million in total stockholders' equity. PricewaterhouseCoopers LLP expressed substantial doubt about the Company's ability to continue as a going concern. PwC believes that the Company will not be in compliance with the financial covenants under its credit facilities during 2011, which under the agreements would make the debt callable. According to PwC, this has created uncertainty regarding the Company's ability to fulfill its financial commitments as they become due. As reported in the TCR on Feb. 8, 2011, TBS International on Jan. 31, 2011, announced that it had entered into amendments to its credit facilities with all of its lenders, including AIG Commercial Equipment, Commerzbank AG, Berenberg Bank and Credit Suisse and syndicates led by Bank of America, N.A., The Royal Bank of Scotland plc and DVB Group Merchant Bank (the "Credit Facilities"). The amendments restructure the Company's debt obligations by revising the principal repayment schedules under the Credit Facilities, waiving any existing defaults, revising the financial covenants, including covenants related to the Company's consolidated leverage ratio, consolidated interest coverage ratio and minimum cash balance, and modifying other terms of the Credit Facilities. The Company currently expects to be in compliance with all financial covenants and other terms of the amended Credit Facilities through maturity. As a condition to the restructuring of the Company's credit facilities, three significant shareholders who also are key members of TBS' management agreed on Jan. 25, 2011, to provide up to US$10 million of new equity in the form of Series B Preference Shares and deposited funds in an escrow account to facilitate satisfaction of this obligation. In partial satisfaction of this obligation, on Jan. 28, 2011, these significant shareholders purchased an aggregate of 30,000 of the Company's Series B Preference Shares at US$100 per share directly from TBS in a private placement. TELTRONICS INC: May Sell Maintenance Contracts to Raise Capital --------------------------------------------------------------- Teltronics, Inc., said it is negotiating a possible transaction under which it could sell a portion of its maintenance contracts including the New York City Department of Education to a third party. The decision to negotiate the possible transaction was made to raise additional capital that will allow the Company to focus on its core products. The possible sale is subject to negotiation and execution of an Asset Purchase Agreement with no assurance that an Asset Purchase Agreement will be executed or if executed, the possible sale will occur. The Company is expected to continue to sell new systems and upgrades to the New York City Department of Education. The Company's Annual Report on Form 10-K for the year ended Dec. 31, 2010, will be filed late. The Company needs additional time to finalize its annual Report on Form 10-K. At this time, the Company is uncertain when it will be in a position to file its annual Report on Form 10-K. About Teltronics Inc. Palmetto, Fla.-based Teltronics, Inc. (OTC BB: TELT) -- http://ww.teltronics.com/-- designs, installs, develops, manufactures and markets electronic hardware and application software products, and engages in electronic manufacturing services primarily in the telecommunication industry. The Company's balance sheet at Sept. 30, 2010, showed $10.25 million in total assets, $14.70 million in total current liabilities, $4.43 million in total long-term liabilities, and a stockholders' deficit of $8.88 million. TENET HEALTHCARE: Board to Review CHS's Revised Proposal -------------------------------------------------------- Tenet Healthcare Corporation confirmed that it has received a revised proposal from Community Health Systems, Inc., to acquire all of the outstanding shares of Tenet for $6.00 per share in cash. Consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, Tenet's Board of Directors will review the revised proposal to determine the course of action that it believes is in the best interests of the Company and its shareholders. Tenet's shareholders are advised to take no action at this time pending the review of the revised proposal by the Tenet Board of Directors. Tenet noted that the Community Health revised proposal is for the same price as a previous Community Health proposal received by Tenet on Nov. 12, 2010. On Dec. 6, 2010, the Tenet Board of Directors, after consultation with its financial and legal advisors, sent a letter to Community Health stating that it had unanimously determined that the Community Health proposal grossly undervalued Tenet and was not in the best interests of Tenet or its shareholders. Barclays Capital is acting as financial advisor to Tenet and Gibson, Dunn & Crutcher LLP and Debevoise & Plimpton LLP are acting as Tenet's legal counsel. About Tenet Healthcare Dallas, Texas-based Tenet Healthcare Corporation (NYSE: THC) -- http://www.tenethealth.com/-- is a health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers and diagnostic imaging centers. The Company's balance sheet at Dec. 31, 2010, showed $8.50 billion in total assets, $6.68 billion in total liabilities, and $1.82 billion in total equity. * * * As reported by the TCR on Aug. 5, 2010, Moody's Investors Service affirmed its 'B2' corporate family rating for Tenet. The rating reflects Moody's expectation that the Company will likely see positive free cash flow for the full year ending Dec. 31, 2010, as operating results continue to improve and litigation settlement payments end in the third quarter. However, the ratings also consider the significant headwinds facing the company, and the sector as a whole, with respect to increasing bad debt expense, weak volume trends and changes in mix as commercial volumes decline. S&P's corporate credit rating on Tenet is 'B' and remains unchanged. The ratings agency noted that while the Company has experience recent successes to date of a multiyear turnaround effort, the Company has a still-weak business risk profile and high financial leverage. Fitch Ratings has issued its Recovery Rating review of the U.S. Healthcare sector. This review includes an analysis of valuation multiples, EBITDA discounts applied, and detailed recovery worksheets for issuers with a Fitch Issuer Default Rating of 'B+' or lower in this sector. Fitch Ratings has placed Tenet Healthcare Corp.'s ratings on Rating Watch Positive. Tenet's existing ratings are Issuer Default Rating 'B-'; Secured bank facility 'BB-/RR1'; Senior secured notes 'BB-/RR1'; Senior unsecured notes 'B/RR3. The ratings apply to approximately $4.3 billion of debt outstanding as of Sept. 30, 2010. THORNBURG MORTGAGE: Officers' Counterclaims Survive Dismissal Bid ----------------------------------------------------------------- Counterclaimants Larry A. Goldstone and Clarence G. Simmons, III, filed a two count counterclaim against TMST, Inc., asserting negligent misrepresentation (Count One) and conversion (Count Two). Joel I. Sher, Chapter 11 Trustee for TMST, Inc., f/k/a Thornburg Mortgage, Inc., moves to dismiss both counterclaims. In his April 15, 2011 Memorandum Opinion, District Judge Richard D. Bennett denied TMST's motion to dismiss Messrs. Goldstone and Simmons's Counterclaims. Mr. Goldstone worked at TMST as Director, Chief Executive Officer and President, and Mr. Simmons served as TMST's Chief Financial Officer and Senior Executive Vice President. They resigned from their posts in September 2009, following the Debtor's bankruptcy filing. The case before the District Court is captioned, Joel I. Sher, Chapter 11 Trustee, v. SAF Financial, Inc., et al., Civil Action No. RDB 10-1895 (D. Md.). A copy of the District Court's ruling is available at http://is.gd/vNCiXGfrom Leagle.com. 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 disclosed 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. THORNBURG MORTGAGE: Ch. 11 Trustee Can't Block Docs in Fraud Suit ----------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that a Maryland federal judge on April 19, 2011, allowed the former CEO of TMST Inc. to access documents underlying the Chapter 11 trustee's lawsuit alleging TMST's brass and Orrick Herrington & Sutcliffe LLP looted the company. The trustee cannot prevent third-party witness Protiviti Inc., the debtor's financial adviser, from responding to ex-CEO Larry A. Goldstone's subpoena and handing over documents that the trustee relied on, Law360 says. 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, is tapped as counsel. Orrick, Herrington & Sutcliffe LLP is employed as special counsel. Jim Murray, and David Hilty, at Houlihan Lokey Howard & Zukin Capital, Inc., are tapped as investment banker and financial advisor. Protiviti Inc. is also engaged for financial advisory services. KPMG LLP is the tax consultant. Epiq Systems, Inc., is claims and noticing agent. Thornburg disclosed total assets of $24.4 billion and total debts of $24.7 billion, as of Jan. 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. TONGJI HEALTHCARE: Incurs $56,232 Net Loss in 2010 -------------------------------------------------- Tongji Healthcare Group, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $56,232 on $1.92 million of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $324,335 on $1.87 million of total operating revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $6.84 million in total assets, $6.64 million in total liabilities, all current, and $202,078 in total stockholders' equity. Kabani & Company, Inc., in Los Angeles, Calif., noted that the Company's significant operating losses and insufficient capital raise substantial doubt about its ability to continue as a going concern. A full-text copy of the annual report on Form 10-K is available for free at http://is.gd/kbDGuq About Tongji Healthcare Based in Nanning, Guangxi, the People's Republic of China, Tongji Healthcare Group, Inc., was incorporated in the State of Nevada on December 19, 2006. The Company operates Tongji Hospital, a general hospital with 105 licensed beds. TOP SHIPS: In Breach of Financial Covenants with Certain Banks -------------------------------------------------------------- Top Ships Inc. filed on April 12, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Deloitte Hadjipavlou, Sofianos & Cambanis S.A., in Athens, Greece, expressed substantial doubt about Top Ships Inc.'s ability to continue as a going concern. The independent auditors noted that of the Company's inability to comply with financial covenants under its current loan agreements as of Dec. 31, 2010, and 2009, and its negative working capital position. "As of Dec. 31, 2010, the Company was in breach of loan covenants relating to EBITDA, overall cash position (minimum liquidity covenants), adjusted net worth, and asset cover, with certain banks," the Company said in the filing. "As a result of these covenant breaches and due to cross default provisions contained in all its bank facilities, the Company is in breach of all its loan facilities and has classified all its debt and financial instruments as current. The amount of long term debt and financial instruments that have been reclassified and presented together with current liabilities amounts to $304,551,000 and $4,125,000 respectively." The Company reported net income of $2.5 million on $90.9 million of revenues for 2010, compared with a net loss of $50.2 million on $108.0 million of revenues for 2009. At Dec. 31, 2010, the Company's balance sheet showed $622.1 million in total assets, $366.6 million in total liabilities, all current and stockholders' equity of $255.5 million. A complete text of the Form 10-K is available for free at: http://is.gd/TnGY12 Based in Maroussi, Greece, Top Ships Inc. (Nasdaq: TOPS) -- http://www.topships.org/-- is an international maritime shipping company that provides transportation services for crude oil, petroleum products, and dry bulk commodities. TRADE UNION: Taps Tatum LLC as Reorganization Consultant -------------------------------------------------------- Trade Union International, Inc., and Duck House, Inc., seek authority from the U.S. Bankruptcy Court for the Central District of California, Riverside Division, to employ Tatum, LLC, a division of SFN Professional Services LLC, as their reorganization consultant, effective as of March 15, 2011. As reorganization consultant, Tatum will prepare a cash collateral budget and financial plan for the Debtors and prepare a cash forecast for the next five years. Tatum will be paid $250 hour. In no event will the firm be paid more than 80 hours. James Hickey, a partner with Tatum LLC, assures the Court that his firm does not represent any interest adverse to the Debtors and their estates and is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Montclair, California-based Trade Union International Inc. supplies aftermarket aluminum alloy wheels and wheel and truck accessories. It filed for Chapter 11 bankruptcy protection on January 31, 2011 (Bankr. C.D. Calif. Case No. 11-13071). James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Duck House, Inc., a California corporation, filed a separate Chapter 11 petition on January 27, 2011 (Bankr. C.D. Calif. Case No. 11-13072). TRADE UNION: Employs Shulman Hodges as General Counsel ------------------------------------------------------ Trade Union International Inc. and Duck House, Inc., sought and obtained authority from the U.S. Bankruptcy Court for the Central District of California, Riverside Division, to employ Shulman Hodges & Bastina LLP as general counsel. Montclair, California-based Trade Union International Inc. supplies aftermarket aluminum alloy wheels and wheel and truck accessories. It filed for Chapter 11 bankruptcy protection on January 31, 2011 (Bankr. C.D. Calif. Case No. 11-13071). James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Duck House, Inc., a California corporation, filed a separate Chapter 11 petition on January 27, 2011 (Bankr. C.D. Calif. Case No. 11-13072). TRADE UNION: Court Junks Request for Appointment of Ch. 11 Trustee ------------------------------------------------------------------ Judge Deborah Saltzman of the U.S. Bankruptcy Court for the Central District of California, Riverside Division, denied, without prejudice, Cathay Bank's request for the Court to direct the U.S. Trustee to appoint a Chapter 11 trustee in the bankruptcy cases of Trade Union International Inc. and Duck House, Inc. Trade Union appeared through James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP. Cathay Bank, a California corporation, appeared through Michael G. Fletcher, Esq., at Frandzel Robins Bloom & Csato, L.C. The Court rendered the decision after having reviewed the request and supporting declarations and the opposition and supporting declarations of opposition by the Debtors. Montclair, California-based Trade Union International Inc. supplies aftermarket aluminum alloy wheels and wheel and truck accessories. It filed for Chapter 11 bankruptcy protection on January 31, 2011 (Bankr. C.D. Calif. Case No. 11-13071). James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Duck House, Inc., a California corporation, filed a separate Chapter 11 petition on January 27, 2011 (Bankr. C.D. Calif. Case No. 11-13072). TRANSAX INTERNATIONAL: Incurs $2.09 Million Net Loss in 2010 ------------------------------------------------------------ Transax International Limited filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $2.09 million on $0 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $2.80 million on $0 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $823,877 in total assets, $10.82 million in total liabilities, and a $10.00 million total stockholders' deficit. MSPC Certified Public Accountants and Advisors, in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has accumulated losses from operations of approximately $19.3 million, a working capital deficiency of approximately $10.8 million and a stockholders' deficiency of approximately $10.0 million at Dec. 31, 2010. Additionally,the Company sold its sole operating subsidiary. A full-text copy of the Annual Report is available for free at: http://is.gd/cXGG24 About Transax International Transax International Limited -- http://www.transax.com/-- primarily through its 55% owned subsidiary, Medlink Conectividade em Saude Ltda is an international provider of information network solutions specifically designed for healthcare providers and health insurance companies. The Company's MedLink Solution enables the real time automation of routine patient eligibility, verification, authorizations, claims processing and payment functions. The Company has offices located in Plantation, Florida and Rio de Janeiro, Brazil. The Company currently trades on the OTC Pink Sheet market under the symbol "TNSX" and the Frankfurt and Berlin Stock Exchanges under the symbol "TX6". TREY RESOURCES: Enters Into $550,000 Promissory Notes ----------------------------------------------------- Trey Resources, Inc., entered into two promissory notes each in the aggregate face amount of $275,000, with two accredited investors. Pursuant to the terms of each of the Notes, each Investor funded $275,000 to the Corporation (the aggregate amount of such funding equaling $550,000) in consideration of the receipt of the Notes executed in favor of the Investors. Each Note bears 7% interest and has a maturity date of Sept. 15, 2011. All principal and interest due under the Notes is payable in full on the Maturity Date. In consideration of the Investors making and maintaining the Loan and as collateral security for the payment and performance of the obligations of the Corporation under the Notes, the Corporation granted a security interest in all of the Corporation's assets, among other things. The Notes are subject to various default provisions and the occurrence of an Event of Default will cause the outstanding principal amount under the Notes and all other amounts payable thereunder to become immediately due and payable to the Investors. The proceeds paid to the Corporation pursuant to the Notes will be used by the Corporation to satisfy any and all obligations owed as of the date hereof under that certain (i) Secured Convertible Debenture No. CCP-1, dated as of Dec. 30, 2005, as amended, issued by the Corporation to YA Global Investments, L.P., in the original principal amount of $600,000, of which approximately $874,381 is currently owed and outstanding as April 15, 2011; (ii) Secured Convertible Debenture No. CCP-2, dated as of Dec. 30, 2005, as amended, issued by the Corporation to YA Global in the original principal amount of $1,159,047, of which approximately $1,147,867 is currently owed and outstanding as of the date hereof; and (iii) Secured Convertible Debenture No. CCP-2, dated as of May 5, 2006, as amended, issued by the Corporation to YA Global in the original principal amount of $600,000, of which approximately $176,988 is currently owed and outstanding as of the date hereof. On the Effective Date, the Corporation executed two letter agreements, each as accepted and agreed to by the relevant Investor, pursuant to the which the Corporation, inter alia, as an inducement for the Investors advancing the Loans to the Corporation, promised to issue, within 30 days of the Effective Date, two shares of convertible preferred stock with voting rights per share of convertible preferred stock equal to 5,000,000,000 shares of class A common stock of the Corporation, pursuant to the terms and conditions therein contained. About Trey Resources Livingston, N.J.-based Trey Resources, Inc. operates as a business consultant, and value-added reseller and developer of financial accounting software in the United States. The Company reported a net loss of $568,505 on $7.48 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.50 million on $7.41 million of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.02 million in total assets, $6.13 million in total liabilities and $5.11 million in total stockholders' deficit. Friedman LLP, in East Hanover, NJ, expressed substantial doubt about the Company's ability to continue as a going concern. The Company's financial statements for the year ended Dec. 31, 2010 have been prepared assuming the Company will continue as a going concern. The Company has incurred substantial accumulated deficits and operating losses, and at Dec. 31, 2010, has a working capital deficiency of approximately $5.1 million. TRIBUNE CO: Bank Debt Trades at 30% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 69.51 cents-on-the- dollar during the week ended Friday, April 22, 2011, a drop of 0.52 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2014. Moody's has withdrawn its rating on the bank debt. The loan is one of the biggest gainers and losers among 192 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141) TRICO MARINE: Units Escape Ch. 11 as Deal with Lenders Reached -------------------------------------------------------------- Trico Supply AS and Trico Shipping AS, subsidiaries of Trico Marine Services, Inc. and whose subsidiaries include DeepOcean AS and CTC Marine Projects Ltd., disclosed that they have reached an agreement in principle with their working capital facility lenders. The Company also announced that it has accepted for exchange $396,454,000, or over 99.1%, of its 11 7/8% Senior Secured Notes due 2014 that had been tendered in its exchange offer to noteholders. In the Company's out-of-court restructuring, these noteholders, the Company's lenders and Trico Marine entities holding intercompany claims and interests, will be equitized and proportionately share all the common stock (the "New Common Stock") of DeepOcean Group Holding AS, a new Norwegian private limited company. The Company and its subsidiaries will no longer be subsidiaries of Trico Marine but of DeepOcean Group Holding AS, a new company to be based in Europe. Operations will continue in the normal course. The Exchange Offer is expected to conclude on or about April 28, 2011. As the Company expects to finalize the out-of-court restructuring, the Company has set aside its efforts to seek further support for a prepackaged plan of reorganization. "Today's announcement represents a major accomplishment in the Trico Supply Group's financial restructuring efforts and we are very pleased to have received the approval from its noteholders and other creditors," said Richard A. Bachmann, Trico Marine's Chairman of the Board of Directors, President and Chief Executive Officer. "The debt-to-equity swap will enable the Trico Supply Group to reduce total debt to approximately $75 million and provides the Company with increased operating flexibility and a more appropriate capital structure for a company its size. Once the restructuring is complete, we believe that the Company, including its primary business units of DeepOcean and CTC Marine, will be in an excellent position to take advantage of improving market conditions and global growth opportunities." Mr. Bachmann added, "The Trico Supply Group looks forward to an improved liquidity position from which it will be able to better serve its customers. We remain committed to quality, consistency and customer service, and we appreciate the dedication of all our employees, whose hard work is critical to our success. We also thank our customers, vendors and all of our stakeholders for their continued support." The restructuring will reduce the Company's total debt outstanding from $468 million to approximately $75 million. As part of the restructuring, the Company will also receive a new $100 million first priority senior secured credit facility that would be used to refinance some existing debt and fund working capital borrowings. Trico Marine and some of its subsidiaries will receive shares of common stock of DeepOcean Group Holding AS. However, the out-of- court financial restructuring of the Trico Supply Group does not otherwise alter Trico Marine's pending bankruptcy proceeding before the US Bankruptcy Court. About Trico Marine Headquartered in Texas, Trico Marine Services, Inc. -- http://www.tricomarine.com/-- provides subsea services, subsea trenching and protection services, and towing and supply vessels. Trico filed for Chapter 11 protection (Bankr. D. Del. Case No. 10- 12653) on Aug. 25, 2010. John E. Mitchell, Esq., Angela B. Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP, serve as the Debtor's bankruptcy counsel. The Debtor disclosed US$30,562,681 in assets and US$353,606,467 in liabilities as of the Petition Date. Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No. 10-12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico Marine International, Inc. (Case No. 10-12650), Trico Marine Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No. 10-12652) filed separate Chapter 11 petitions. Cahill Gordon & Reindell LLP is the Debtors' special counsel. Alix Partners Services, LLC, is the Debtors' chief restructuring officer. Epiq Bankruptcy Solutions is the Debtors' claims and notice agent. Postlethwaite & Netterville serves as the Debtors' accountant and Ernst & Young LLP serves as tax advisors. Pricewaterhousecoopers LLC provides the independent accountants and tax advisors for the Debtors. Aside from the Cayman Islands holding company, Trico's foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. The Official Committee of Unsecured Creditors tapped Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl & Jones LLP, in Wilmington, Delaware, and Andrew K. Glenn, Esq., David J. Mark, Esq., and Daniel A. Fliman, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, as counsel. TSP CO: Bankruptcy Judge Won't Hearing KOSHA Proceedings -------------------------------------------------------- Bankruptcy Judge Tracey N. Wise abstains from hearing the administrative proceeding, Secretary of the Labor Cabinet, Commonwealth of Kentucky, v. T.S.P. CO., Inc., Adv. Pro. No. 11-5004 (Bankr. E.D. Ky.), and remanded the case to the Kentucky Occupational Safety and Health Review Commission, at the plaintiff's behest. On Oct. 30, 2009, the Debtor was cited by the Commonwealth of Kentucky, Labor Cabinet, for 10 "willful serious" safety violations of Kentucky's Occupational Safety and Health Act and fined a penalty of $42,000 for each violation. The Debtor contested the citations and penalties by forwarding a notice of contest to Jan Williamson, in-house counsel for the Cabinet, on Dec. 30, 2009. Upon receipt of the contest to the citation, Ms. Williamson forwarded the notification of the intent to contest the citations and penalties to the Review Commission on Jan. 4, 2010. A notice of receipt of contest was served on Jan. 5, 2010 to the Debtor's counsel. The Complaint was then officially filed before the Review Commission by the Cabinet on Jan. 13, 2010. On the afternoon of Jan. 19, 2011, the last day of the hearing, the Debtor removed the matter to the Bankruptcy Court pursuant to 28 U.S.C. Sec. 1441. The Debtor argues that the matter is properly removed to the Bankruptcy Court because the Cabinet is attempting to assess and collect a debt. The Cabinet argues that the action is a non-core administrative proceeding and not removable under 28 U.S.C. Sec. 1452. The Cabinet further argues that if the Bankruptcy Court Court is inclined take jurisdiction, the Court should either abstain from hearing this matter based on 28 U.S.C. Sections 1334(c)(1) and 1334(c)(2), or remand based on equitable considerations pursuant to 28 U.S.C. Sec. 1452(b). According to Judge Wise, the Cabinet's action commenced before the Review Commission is based exclusively on Kentucky state law and administrative regulations. There is no diversity of the parties or issues raised giving rise to federal question jurisdiction. Furthermore, the hearing officer is proceeding to determine the validity of the citations but not the proposed penalty, the enforcement and collection of which is the only possible connection to this bankruptcy estate. There is no reason why the administrative proceeding cannot be adjudicated in a timely matter within the parameters set by the hearing officer, particularly considering the Debtor did not remove the action until the eleventh hour immediately prior to the conclusion of the hearing on the merits. All the elements of mandatory abstention exist. A copy of the Court's April 14, 2011 Memorandum Opinion is available at http://is.gd/dH00v5from Leagle.com. About T.S.P. Co. T.S.P. Co., Inc. in Lexington, Kentucky, filed for Chapter 11 bankruptcy (Bankr. E.D. Ky. Case No. 10-53637) on Nov. 14, 2010. David M. Kaplan, Esq. -- DMKap@aol.com -- serves as bankruptcy counsel. The Debtor scheduled $2,448,703 in assets and $2,411,907 in debts. ULTIMATE ACQUISITION: Streambank to Auction Intangible Assets ------------------------------------------------------------- Streambank, LLC will be conducting an auction of the Ultimate Electronics trademarks, domains, and related intellectual property on May 25, 2011 in New York. Ultimate Electronics Inc. has filed a motion with the Delaware Bankruptcy Court seeking approval of the sale of its intellectual property. The assets include the Ultimate Electronics trademarks, 11 related trademarks, 16 related domain names, and the company's social media sites and databases. The hearing to approve the sale is scheduled for May 26, 2011. As of January 2011, Ultimate Electronics operated 46 stores in 16 states including the mid-west, western United States and New England. Ultimate Electronics store locations average approximately 30-40,000 square feet and are primarily located in high traffic retail centers and malls. In 2010 Ultimate achieved over $400 million in retail sales. Ultimate Electronics is best known for its consumer electronics and accessories assortment, installation services and in-home and in-car entertainment solutions. In addition to operating a retail store, the combination of trademarks and domain names can be used to support a variety of new formats including flash or membership sales site, a drop-ship internet business, product review site, and other concepts as well. "Ultimate developed a loyal customer following who took advantage of our service, installation, and warranty offerings," said Bruce Giesbrecht, the company's CEO. "Ultimate really does mean best." About Streambank Streambank -- http://www.streambankllc.com/is an advisory firm specializing in the valuation, marketing, and sale of intangible assets for businesses at all stages. The firm's experience spans a broad range of industries including apparel, automotive, consumer products, food, manufacturing, medical technologies, pharmaceuticals, retail and textiles. Streambank's recent client engagements include Movie Gallery, Anchor Blue, Tavern on the Green, Circuit City Stores, Collins & Aikman and KB Toys. Streambank provides sound advice on value maximization strategies and liquidity options. Streambank is headquartered in Needham, MA and has an office in New York City. About Ultimate Electronics 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. Ultimate Acquisition and CC Retail filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-10245) on Jan. 26, 2011. Ultimate Acquisition estimated assets and liabilities between $100 million and $500 million. 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. The Company was given formal approval from the court in February to conduct going-out-of-business sales at all 46 stores. Controlled by Mark J. Wattles, Ultimate decided to liquidate when no one would provide financing for a reorganization. ULURU INC: Lane Gorman Raises Going Concern Doubt ------------------------------------------------- ULURU Inc. filed on March 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Lane Gorman Trubitt, PLLC, in Dallas, Tex., expressed substantial doubt about ULURU Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations, negative cash flows from operating activities and is dependent upon raising additional funds from strategic transactions, sales of equity, or issuance of debt. The Company reported a net loss of $5.0 million on $1.6 million of revenues for 2010, compared with a net loss of $9.2 million on $667,949 of revenues for 2009. At Dec. 31, 2010, the Company's balance sheet showed $9.0 million in total assets, $1.6 million in total liabilities, and stockholders' equity of $7.4 million. A complete text of the Form 10-K is available for free at: http://is.gd/cGIhJO Addison, Tex.-based ULURU Inc. (NYSE AMEX: ULU) -- http://www.uluruinc.com/-- is a specialty pharmaceutical company focused on the development of a portfolio of wound management and oral care products to provide patients and consumers improved clinical outcomes through controlled delivery utilizing its innovative Nanoflex(R) Aggregate technology and OraDisc(TM) transmucosal delivery system. VILICA LLC: Creditors Meeting Scheduled for May 4 ------------------------------------------------- The Office of the U.S. Trustee for Region 17 announced in a notice that it will be holding a meeting of creditors of Vilica, LLC on May 4, 2011, at 10:30 a.m. The meeting will be held at the U.S. Federal Bldg., 280 South First Street Room 268, San Jose, California. All creditors are invited, but not required, to attend. The meeting offers opportunity 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. The notice also announced an August 2, 2011 deadline for Vilica creditors, except governmental units, to file their proofs of claim. Governmental units are required to file their proofs of claim within 180 days after the date the order for relief was entered. Meanwhile, the deadline to file a complaint to determine dischargeability of certain debts is July 5, 2011, according to the notice. Santa Cruz, California-based Vilica, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 10-62728) on Dec. 13, 2010. Stephen T. Davies, Esq., at Turner Litigation Services, serves as the Debtor's bankruptcy counsel. According to its schedules, the Debtor disclosed $12,757,273 in total assets and $4,245,843 in total debts at the Petition Date. VITRO SAB: Affiliates Seek Extension of Schedule Filing Deadline ---------------------------------------------------------------- Vitro America, LLC and three other U.S. affiliates of Vitro Asset Corp. has sought approval from the U.S. Bankruptcy Court for the Northern District of Texas to file their schedules of assets and liabilities and statements of financial affairs until May 20, 2011. The three affiliates are Super Sky Products Inc., Super Sky International Inc. and VVP Finance Corporation. The Debtors said that based on the amount of work entailed in completing the schedules and statements, they won't be able to complete the schedules and statements within the 14-day period for filing those documents required under Rule 1007 of the Federal Rules of Bankruptcy Procedure. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The judge will decide later about the involuntary petitions filed against eight non-operating Vitro subsidiaries in the U.S. An official committee of unsecured creditors has been appointed in the Chapter 11 cases of Vitro Asset Corp., et al. VIVAKOR INC: Matthew Nicosia Appointed as Chief Financial Officer ----------------------------------------------------------------- The current sole director of Vivakor, Inc., Matthew Nicosia, appointed himself as the Chief Financial Officer of the Company, thereby filling a vacancy in such office. Before that appointment, Matthew Nicosia was, and as of April 12, 2011 Matthew Nicosia continues to be, the Chief Executive Officer of the Company. About Vivakor Inc. Coralville, Iowa-based Vivakor, Inc., is a transdisciplinary research company that develops products in the fields of molecular medicine, electro-optics, biological handling and natural and formulary compounds. The Company's balance sheet at September 30, 2010, showed $2.65 million in total assets, $2.66 million in total liabilities, and a stockholders' deficit of $11,602. As reported in the Troubled Company Reporter on April 9, 2010, McGladrey & Pullen, LLP, in Cedar Rapids, Iowa, expressed substantial doubt about Vivakor, Inc.'s ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company's ability to become a profitable operating company is dependent upon obtaining financing adequate to fulfill its research and market introduction activities, and achieving a level of revenues adequate to support the Company's cost structure. WASHINGTON MUTUAL: Fund Seeks Docs Backing Investor's Claims ------------------------------------------------------------ Evan Weinberger at Bankruptcy Law360 reports that hedge fund Appaloosa Management LP asked a Delaware bankruptcy judge on April 19, 2011, to force a shareholder seeking to block a $10 billion settlement key to Washington Mutual Inc.'s unfinished Chapter 11 reorganization to produce documents to back his insider trading claims. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. Fred S. Hodera, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York City and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unseucred Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired WaMu's assets prior to the Petition Date. On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A., upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. Additionally, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. Washington Mutual has filed with the U.S. Bankruptcy Court for the District of Delaware a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement. The Company believes that the Modified Plan has addressed the Bankruptcy Court's concerns and looks forward to returning to the Bankruptcy Court to seek confirmation of the Modified Plan. The hearing for approval of the Disclosure Statement is set for March 21. WEGENER CORP: Incurs $970,584 Net Loss in March 4 Quarter --------------------------------------------------------- Wegener Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $970,584 on $1.43 million of net revenues for the three months ended March 4, 2011, compared with a net loss of $521,744 on $2.35 million of net revenues for the three months ended Feb. 26, 2010. The Company also reported a net loss of $996,360 on $4.40 million of net revenues for the six months ended March 4, 2011, compared with a net loss of $1.51 million on $4.27 million of net revenues for the six months ended Feb. 26, 2010. The Company's balance sheet at March 4, 2011 showed $7.99 million in total assets, $9.01 million in total liabilities, all current, and a $1.02 million total capital deficit. A full-text copy of the Quarterly Report is available for free at: http://is.gd/4fHHTt About Wegener Corp. Johns Creek, Ga.-based Wegener Corporation -- http://www.wegener.com/-- was formed in 1977 and is a Delaware corporation. The Company conducts its continuing business through Wegener Communications, Inc. (WCI), a wholly-owned subsidiary. WCI, a Georgia corporation, is an international provider of digital video and audio solutions for broadcast television, radio, telco, private and cable networks. In Wegener's annual report filed on Nov. 15, 2010, on Form 10-K for the fiscal year ended Sept. 3, 2010, Habif, Arogeti & Wynne, LLP, in Atlanta, Ga., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a capital deficiency. WILLIAM LYON: Expects to Complete Financials Within Grace Period ---------------------------------------------------------------- As announced in the current report on Form 8-K of William Lyon Homes filed on March 21, 2011, in connection with its annual audit for the year ended Dec. 31, 2010, the Company has been conducting and finalizing its non-cash impairment analysis under the provisions of Financial Accounting Standards Board Accounting Standard Codification Topic 360 Property, Plant and Equipment. On March 30, 2011, the Company filed a Form 12b-25 disclosing that it required additional time to complete the financial statements to be included in the Annual Report on Form 10-K for the year ended Dec. 31, 2010, to reflect this impairment analysis. As of April 15, 2011, the Company has not completed its financial statements for the year ended Dec. 31, 2010. The Company continues to work diligently on its financial statements and expects to complete the process within the 30 day grace period provided in the indentures governing William Lyon Homes, Inc.'s 7 5/8% Senior Notes due 2012, 10 3/4% Senior Notes due 2013 and 7 1/2% Senior Notes due 2014. About William Lyon Homes Based in Newport Beach, California, William Lyon Homes and subsidiaries -- http://www.lyonhomes.com/-- are primarily engaged in designing, constructing and selling single family detached and attached homes in California, Arizona and Nevada. The Company's balance sheet at Sept. 30, 2010, showed $779.64 million in total assets, $639.57 million in total liabilities, and a stockholders' equity of $140.07 million. * * * William Lyon carries 'CCC' issuer credit ratings from Standard & Poor's, and 'Caa2' long term corporate family and probability of default ratings from Moody's. "S&P raised its rating on William Lyon Homes because S&P believes that near-term liquidity pressure has eased somewhat following the partial funding of a secured term loan and reduced maturing credit facility debt," said credit analyst James Fielding in November 2009 when S&P raised the rating on William Lyon to 'CCC' from 'CCC-'. He added, "However, this privately held homebuilder remains very highly leveraged and may face challenges repaying or refinancing intermediate-term debt maturities if its business prospects don't improve in the interim." Standard & Poor's Ratings Services raised its rating on William Lyon Homes' 10.75% senior unsecured notes due 2013 to 'CC' from 'D' after the company repurchased $10.5 million of outstanding principal for $9.0 million. S&P lowered its rating on the notes to 'D' because S&P considered the discounted repurchase to be tantamount to default under its criteria for exchange offers and similar restructurings. In accordance with its criteria, S&P is now raising its rating on these notes because the company completed its repurchase, and S&P is not aware of additional discounted repurchases at this time. WIRELESS TELECOM: Court Rules on Pepper Hamilton's Fee Request -------------------------------------------------------------- Bankruptcy Judge John J. Thomas ruled on final fee applications for general counsel, Pepper Hamilton, LLP; Robert J. Keller, Special FCC counsel; and of Executive Sounding Board Associates, Inc., the business manager, in the bankruptcy case of Wireless Telecommunications Inc. Pepper is seeking an award of $2,164,000. Objections were filed by the United States Trustee and Vermont Telephone, Inc. In his April 18, 2011 Opinion, Judge Thomas held that Pepper has offered to surrender 12.38% of their fee application to voluntarily provide for a nominal distribution to creditors. That calculates to a $267,903.20 reduction in the request. While other administrative creditors are clearly not bound to follow this reduction, it appears abundantly clear that it should be imposed on Pepper, Judge Thomas said. Judge Thomas also noted that objections filed to the fee applications of Robert J. Keller and Executive Sounding Board Associates, Inc., have been reviewed and are not of such material significance as to reduce their award. Judge Thomas' opinion noted that the bankruptcy case of Wireless Telecommunication "had more peaks and valleys than our great Appalachian mountain range." The case started in 2000 as an involuntary filing in the District's Harrisburg division (Bankr. M.D. Pa. Case No. 00-02188) with then Chief Judge, Robert J. Woodside, presiding. Judge Thomas succeeded to Judge Woodside's administration upon his passing in 2002. The involuntary case was followed by the voluntary Chapter 11 filing of a related entity known as Wireless Ventures, III, Inc. (Bankr. M.D. Pa. Case No. 00-03533), which later in 2000 converted to Chapter 7. WTI remained in Chapter 7 for three years while the Trustee appointed by the United States Trustee attempted to effect a liquidation of its sole assets, telecommunication licenses. The effort was unsuccessful, but rather than suffer dismissal, it converted to Chapter 11 in 2003. A private sale was actually arranged for $4.5 million, a figure sufficient only to partly address secured creditors. Subsequently, however, the stock of Wireless was transferred, and under new management, the Debtor was able to arrange a sale in an amount in excess of $12 million, a figure initially thought to be sufficient to pay in full all estate creditors. It was a hollow promise, however. Years of delay in the approval of the license transfer by the FCC and significant litigation over the fees of professionals and management have reduced the pot to insolvency, apparently insufficient to address even the pool of administrative creditors. A copy of the Court's opinion is available at http://is.gd/zk8hDq from Leagle.com. WITS END: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Wits End Guest Ranch & Resort, Inc. 5850 Harbour Preserve Circle Cape Coral, FL 33914 Bankruptcy Case No.: 11-18872 Chapter 11 Petition Date: April 19, 2011 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Michael E. Romero Debtor's Counsel: Daniel Lowenberg, Esq. LAW OFFICE OF DANIEL J. LOWENBERG, LLC P.O. Box 386 Montrose, CO 81402 Tel: (970) 497-2204 E-mail: djl@lowenberglawllc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by James H. Custer, president. YRC WORLDWIDE: Parties Finalizing Definitive Agreements ------------------------------------------------------- YRC Worldwide Inc. has made significant progress in negotiating the terms of the major agreements that are required to achieve the company's financial restructuring by the end of July. John Lamar, YRC Worldwide Chief Restructuring Officer stated, "We have been working closely with JP Morgan, agent for the senior secured lender group, the steering committee, the company's pension funds and the Teamsters National Freight Industry Negotiating Committee and we are very pleased with the progress that has been made and the support we have received. All stakeholders are continuing to finalize definitive agreements to complete the company's financial restructuring." The company had previously announced that it had reached an Agreement in Principle on Feb. 28 that set forth the overall plan for the YRC Worldwide financial restructuring, which will include a very substantial dilution to common shareholders. About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. The Company's balance sheet at Dec. 31, 2010, showed $2.63 billion in total assets, $2.73 billion in total liabilities and $95.84 million in total shareholders' deficit. KPMG LLP's audit reports on the consolidated financial statements of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each contain an explanatory paragraph that states that the Company has experienced significant declines in operations, cash flows and liquidity and these conditions raise substantial doubt about the Company's ability to continue as a going concern. * * * In January 2011, Standard & Poor's Ratings Services placed its 'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on CreditWatch developing. At the same time, S&P is withdrawing the existing issue level ratings on Yellow Corp.'s senior unsecured debt, given the negligible amounts outstanding. "The ratings on Overland Park, Kan.-based YRCW reflect its near- term liquidity challenges, meaningful off-balance-sheet contingent obligations related to multiemployer pension plans, as well as its participation in the competitive, capital-intensive, and cyclical trucking industry," said Standard & Poor's credit analyst Anita Ogbara. "YRCW's substantial (albeit deteriorating) market position in the less-than-truckload (LTL) sector, which has high barriers to entry, partially offsets these characteristics. We characterize YRCW's business profile as weak, financial profile as highly leveraged, and liquidity as weak." As reported by the TCR on March 22, 2011, Moody's Investors Service has lowered the Corporate Family Rating of YRC Worldwide, Inc to Ca from Caa3. The rating outlook is negative. The rating has been downgraded in response to the company's recent disclosure of a "Milestone Failure" relating to requirements under its amended credit agreement. Moody's believes that this development increases the risk in YRC's efforts to conclude critical refinancing that is instrumental to its ability to avoid bankruptcy. * Grant Analyzes Factors Behind Automobile Loans Performance ------------------------------------------------------------ Grant Thornton LLP released its new white paper prepared with the assistance of the Auto Finance Council: Risk-Weighting of Automobile Loans. The paper analyzes the trends behind the above- par performance of automobile loans as compared with other consumer loans that experienced high charge-offs in the nation's latest economic downturn. The study found that consumers became more diligent about making their automobile loan payments during the recession. Consumers who were unable to meet their monthly debt obligations historically made their mortgage payments before making an auto loan payment; however Grant Thornton's Corporate Advisory & Restructuring Services practice found the converse happened in the most recent economic downturn. The analysis, which relied on data from credit ratings agencies Standard & Poor's and Experian, found that auto loans exhibited the lowest default rate among consumer loans when the asset class began outperforming first and second mortgages as of January 2007. Automobile loans produced a 2.41% default rate compared with first and second mortgages that generated default rates of 3.48% and 3.52%, respectively. From July 2004 through April 2010 auto loans had an average default rate of 1.92% when first mortgages recorded a default rate of 2.44% and second mortgages 2.50%. In short, automobile loans have proven to be the least volatile of these three types of consumer credit. "The automobile finance industry withstood the fiscal pressures experienced by mortgage providers during the nation's most recent economic downturn. Credit standards and underwriting processes remained consistent, contributing to lower delinquency and default rates as borrowers continued to make auto loan payments even when many defaulted on their first or second mortgages," said Paul Melville, Grant Thornton Corporate Advisory & Restructuring Services principal. Other key factors discussed in Risk-Weighting of Automobile Loans include: Credit Underwriting -- Lax credit underwriting standards contributed to increased default rates in the mortgage industry, whereas tighter controls and processes in automotive lending helped maintain lower default rates among borrowers of auto loans. Loan Duration -- Auto loans average three-year maturity periods compared with the 15-year and 30-year mortgages consumers take out for home buyers, which help contribute to lower delinquency and default rates. Ease of Repossession -- Repossessing automobiles is easier than foreclosing on homes, enabling lenders to implement collateral recollection in as little as 45 days. Moreover, the automobile finance industry has well-developed and sophisticated markets for disposing of repossessed automobiles. Strategic Defaults -- Borrowers are more diligent about making auto loan payments than mortgage holders, some of whom have chosen to "strategically" default on mortgages when the equity on their home became significantly devalued. Many of these same borrowers, however, continued to meet their auto loan obligations. To read more or download a copy of the Risk-Weighting of Automobile Loans white paper please visit http://www.GrantThornton.com/CARS-PublishedArticles. About Grant Thornton LLP Corporate Grant Thornton LLP's Corporate Advisory & Restructuring Services (CARS) group includes more than 65 professionals in six offices in the U.S. The group also works closely with the Restructuring & Recovery practices of Grant Thornton International member firms, comprised of several hundred restructuring professionals internationally. The group's professionals possess extensive experience with both bankruptcy and out-of-court restructuring, spanning many industries, including energy, automotive, gaming and hospitality, healthcare, manufacturing, real estate and retail. About Grant Thornton LLP The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity. * Fitch: Global CDS Spreads Widen Across All Sectors ---------------------------------------------------- Fitch Solutions said April 20 that, in its latest Risk and Performance Monitor, Global CDS spreads widened across all sectors the week before, driven mainly by European sovereign and financial institutions. European names were behind the financial sector's underperformance last week, selling off 7.8%. On average, CDS on Irish, Portuguese, French and Spanish banks widened the most at 19%, 17%, 14% and 14%, respectively. Meanwhile, CDS on European sovereigns sold off 12.2%. 'Renewed concern over European sovereign credit is likely attributed to fears of a Greek debt restructuring as well as potential ramifications for those countries with significant exposure to Greek debt through their banking systems,' said Diana Allmendinger, the report's author and Director, Fitch Solutions. The five-year Probability of Default (PD) Index grew 2% globally, reversing the positive trend observed over the previous three weeks. * S&P's 2011 Global Corporate Defaults Now Total 13 --------------------------------------------------- One Russian bank and two U.S.-based utilities defaulted last week, raising the 2011 global corporate default tally to 13, said an article published Friday by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (April 15 - 21, 2011) (Premium)." "Eight of this year's defaulters are based in the U.S., two are based in New Zealand, one in Canada, one in the Czech Republic, and one in Russia," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "By comparison, 32 global corporate issuers had defaulted by this time in 2010." Of these defaulters, 23 were from the U.S., one was from Europe, two issuers were from the emerging markets, and six were in the other developed region (Australia, Canada, Japan, and New Zealand). S&P noted that it revised the 2011 figures as part of our quarterly data reconciliation process to account for two issuers that had ratings withdrawn several months prior to default. Also, it added two New Zealand-based issuers that defaulted earlier this month -- one as a result of regulatory action, and the other because of a distressed exchange. "Five of this year's defaults were due to missed interest or principal payments, and another five were due to distressed exchange offers -- both among the top reasons for default in 2010," said Ms. Vazza. Of the remaining three, one issuer defaulted after it filed for bankruptcy, another had its banking license revoked by its country's central bank, and the third was forced into liquidation as a result of regulatory action. Of the defaults in 2010, 28 defaults resulted from missed interest or principal payments, 25 defaults resulted from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships, one from regulatory directives, and one from administration. Standard & Poor's baseline projection for the U.S. corporate trailing 12-month speculative-grade default rate for March 2012 is 1.6%. A total of 24 issuers would need to default from April 2011 to March 2012 to reach the forecast. The projection of 1.6% is another 0.86-percentage-point (or another 35%) decline from the 2.46% default rate in March 2011. This rate of decline would be sharp, but slower than the decline over the past 16 months. Improved lending conditions and a lower cost of capital are keeping our default expectations relatively upbeat in the next 12 months. S&P is seeing stronger credit quality, as reflected in fewer downgrades and lower negative bias. In addition to its baseline projection, S&P forecasts the default rate in our optimistic and pessimistic scenarios. In its optimistic default rate forecast scenario, the economy and the financial markets improve more than expected. As a result, S&P would expect the default rate to be 1.2% (18 defaults in the next 12 months). On the other hand, if the economic recovery stalls and the financial markets deteriorate -- which is our pessimistic scenario-- S&P expects the default rate to be 3.3% (50 defaults) by March 2012. S&P bases its forecasts on quantitative and qualitative factors that we consider, including, but not limited to, Standard & Poor's proprietary default model for the U.S. corporate speculative-grade bond market. S&P updates its outlook for the U.S. issuer-based corporate speculative-grade default rate each quarter after analyzing the latest economic data and expectations. * U.S. Corporate Credit Risk Falls to Two-Week Low on Earnings -------------------------------------------------------------- Carla Main at Bloomberg News reports that the cost of protecting U.S. corporate bonds from default fell to the lowest level in two weeks as companies released positive earnings and outlooks. The Markit CDX North America Investment Grade Index, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, decreased 1.4 basis points to a mid-price of 93.4 basis points as of 8:46 a.m. April 20 in New York, according to index administrator Markit Group Ltd. The credit swaps index is at the lowest level since April 6 as companies from Intel Corp. to International Business Machines Corp. boosted their outlooks, and credit traders wagered that U.S. corporations can grow even as some European countries may restructure their debt. The index gauges perceptions of creditworthiness and falls as investor confidence improves. The cost to protect high-yield, high-risk debt also declined. * Filings Under Wisconsin Bankruptcy Statutes Increase ------------------------------------------------------ Bruce Vielmetti of the Journal Sentinel in Milwaukee, Wisconsin, reported that petitions for so-called voluntary debt amortization, a bankruptcy alternative unique to Wisconsin, have grown exponentially in Milwaukee County the past three years and are on pace to double yet again this year. The report said these court- approved debt repayment plans allow individual debtors who can't get ahead on their bills to obtain a three-year repayment plan in state court that suspends penalties, interest, garnishments and, for now at least, utility disconnections. According to the Journal Sentinel, the relief under Chapter 128 of the Wisconsin statutes has exploded in popularity as lawyers and trustees advertise the option, which is far simpler and cheaper than bankruptcy and generates steady fees for a handful of trustees who distribute debtors' prorated payments to creditors. The report noted that as of April 19, 642 petitions had been filed in 2011, compared with 349 by that date in 2010 -- a year that produced a total of 3,422, triple the number of filings in 2009. That year, just over 1,000 were filed, which was double the number in 2008. Filings were also are up sharply in Waukesha, Racine, Ozaukee and Washington counties last year, though with far fewer cases filed, the report said. * Value of Bankruptcy Claims Traded Jumped in First Quarter ------------------------------------------------------------ American Bankruptcy Institute reports that the value of U.S. bankruptcy claims that traded in the first three months of the year jumped 41% from last year, thanks to several large trades in the Mesa Air Group Inc bankruptcy. * A&M's Business Consulting Group Gets Kalakota, Rawal ------------------------------------------------------ As companies face mounting IT-related regulatory and business risks, global professional services firm Alvarez & Marsal expands its business process and performance capabilities with the addition of Ravi Kalakota and Dhiren Rawal, who join the firm's business consulting group as managing directors based in New York. The former chief technology and information officer of Mercer (Marsh McLennan Companies), Dr. Kalakota adds extensive operational experience and IT performance improvement capabilities, while Mr. Rawal brings 20 years of experience of global operations and technology consulting in the financial services sector. "In the midst of heightened regulatory activity and challenging economic conditions, companies are facing mounting technology- related risks and being forced to take on a two-front battle involving renovation and innovation of both strategy and architecture," said Joe Berardino, national practice leader of the firm's business consulting practice based in New York. "On one hand, they must transform the organization to meet demands for transparency and insight brought on by new regulations, such as Dodd-Frank. On the other, to remain competitive, they must engage in a game of catch-up to bring antiquated business systems in line with consumer technology, which is at least 15 years ahead. And they must do both at a time when budgets are being constrained." "Alvarez & Marsal has a long track record of working with management and chief risk and compliance officers to deliver IT performance improvement and operational excellence to companies across a broad range of industries, including financial services," he added. "Ravi and Dhiren bring impressive backgrounds in IT transformation and will further enhance our ability to serve clients with a range of strategic advisory and interim management services." Dr. Kalakota brings extensive industry experience in the areas of CIO advisory services, interim CIO services, digital strategy (cloud, mobile and social); BI / Analytics; corporate IT transformation and restructuring; IT governance and PMO, cost transformation and economics; shared services optimization, enterprise architecture and complex application development. At Marsh, he was responsible for a $300 million IT spend; 1,200 employees; 15 development centers; 800 applications; and 500 resources in three offshore locations -- India, China and Singapore. Before that, he was the managing partner and vice president of strategy and solutions management for the Global Industries business unit of Unisys. Earlier in his career, he served as CEO of E-Business Strategies (EBS), a technology research and consulting practice, CEO and Chairman of hsupply.com, a B2B technology and held positions at several universities including Georgia State University in Atlanta, Simon Graduate School of Business at the University of Rochester and McCombs School of Business at the University of Texas in Austin. The author of 10 best-selling books on e-commerce, e-business, m- business, service-oriented architecture and global outsourcing, Dr. Kalakota earned his Ph.D. in business administration from the University of Texas at Austin, his master's degree in computer science from the University of Hawaii and his bachelor's degree in computer science from Osmania University in India. With extensive experience in the financial services sector, Mr. Rawal focuses on delivering business transformations, complex systems integration projects and trading solutions, including market and reference data. Over the course of his career, he has worked closely with investment banks in North America, Europe and Asia with major assignments in IT strategy definition and planning for trading and market data platforms, working with two global investment banks to streamline their technology platforms and deliver significant improvements in performance, productivity and cost efficiencies and implementing capital markets solutions, including the integration of multiple OTC trading entities into a single, regulated entity. Additionally, he developed transformational outsourcing arrangements encompassing IT services, AD services and business processes. Prior to joining A&M, he established Accenture as a leading provider of data management consulting and solutions providing services in North America, Europe and Asia. Mr. Rawal earned a bachelor's degree in business information systems from Staffordshire University in the U.K. He has authored numerous papers on data management, electronic execution and algorithmic smart order routing. About Alvarez & Marsal Alvarez & Marsal -- http://www.alvarezandmarsal.com-- is a global professional services firm specializing in turnaround management, performance improvement and business advisory services. Founded in 1983, the firm builds on a distinct restructuring heritage to deliver world-class consulting, operational and industry expertise to management and investors seeking to accelerate performance, solve problems and maximize value across the corporate and investment life cycles. * BOND PRICING -- For Week From April 18 - April 22 --------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- AMBAC INC 9.50% 2/15/2021 10.25 AMBAC INC 7.50% 5/1/2023 13.95 AMBAC INC 5.95% 12/5/2035 11.35 AMBAC INC 6.15% 2/7/2087 1.63 AGCO-CALL05/11 6.88% 4/15/2014 100.63 AHERN RENTALS 9.25% 8/15/2013 50.03 AMBASSADORS INTL 3.75% 4/15/2027 43.52 BANK NEW ENGLAND 9.88% 9/15/1999 13.50 BANKUNITED FINL 6.37% 5/17/2012 5.50 CAPMARK FINL GRP 5.88% 5/10/2012 53.94 CELL THERAPEUTIC 7.50% 4/30/2011 99.63 CELL THERAPEUTIC 7.50% 4/30/2011 99.00 DUNE ENERGY INC 10.50% 6/1/2012 71.25 EDDIE BAUER HLDG 5.25% 4/1/2014 4.00 FORD MOTOR CRED 7.50% 4/25/2011 99.28 FRANKLIN BANK 4.00% 5/1/2027 5.19 FAIRPOINT COMMUN 13.13% 4/2/2018 1.13 GREAT ATLANTIC 9.13% 12/15/2011 26.00 GREAT ATLA & PAC 6.75% 12/15/2012 29.00 HARRY & DAVID OP 9.00% 3/1/2013 25.38 HORIZON LINES 4.25% 8/15/2012 80.00 KEYSTONE AUTO OP 9.75% 11/1/2013 41.35 LEHMAN BROS HLDG 12.12% 9/11/2009 5.39 LEHMAN BROS HLDG 22.65% 9/11/2009 24.00 LEHMAN BROS HLDG 6.00% 4/1/2011 15.00 LEHMAN BROS HLDG 4.50% 8/3/2011 23.75 LEHMAN BROS HLDG 6.63% 1/18/2012 24.25 LEHMAN BROS HLDG 5.25% 2/6/2012 23.80 LEHMAN BROS HLDG 6.00% 7/19/2012 25.13 LEHMAN BROS HLDG 5.63% 1/24/2013 24.25 LEHMAN BROS HLDG 5.10% 1/28/2013 23.65 LEHMAN BROS HLDG 5.00% 2/11/2013 23.05 LEHMAN BROS HLDG 4.70% 3/6/2013 21.00 LEHMAN BROS HLDG 5.00% 3/27/2013 24.26 LEHMAN BROS HLDG 5.75% 5/17/2013 25.13 LEHMAN BROS HLDG 4.80% 3/13/2014 23.88 LEHMAN BROS HLDG 6.20% 9/26/2014 25.75 LEHMAN BROS HLDG 5.15% 2/4/2015 24.25 LEHMAN BROS HLDG 5.25% 2/11/2015 24.00 LEHMAN BROS HLDG 8.80% 3/1/2015 24.55 LEHMAN BROS HLDG 6.00% 6/26/2015 24.00 LEHMAN BROS HLDG 8.50% 8/1/2015 23.25 LEHMAN BROS HLDG 5.00% 8/5/2015 23.50 LEHMAN BROS HLDG 6.00% 12/18/2015 24.25 LEHMAN BROS HLDG 8.92% 2/16/2017 25.75 LEHMAN BROS HLDG 5.88% 11/15/2017 22.28 LEHMAN BROS HLDG 8.05% 1/15/2019 24.25 LEHMAN BROS HLDG 11.00% 6/22/2022 23.25 LEHMAN BROS HLDG 11.00% 8/29/2022 24.38 LEHMAN BROS HLDG 9.50% 12/28/2022 23.50 LEHMAN BROS HLDG 9.50% 1/30/2023 24.50 LEHMAN BROS HLDG 9.50% 2/27/2023 23.38 LEHMAN BROS HLDG 9.00% 3/7/2023 23.63 LEHMAN BROS HLDG 10.00% 3/13/2023 24.38 LEHMAN BROS HLDG 10.38% 5/24/2024 23.00 LEHMAN BROS INC 7.50% 8/1/2026 14.00 LEHMAN BROS HLDG 11.00% 3/17/2028 23.75 LTX-CREDENCE 3.50% 5/15/2011 95.33 MAJESTIC STAR 9.75% 1/15/2011 20.13 MISBAP-CALL05/11 8.20% 5/15/2025 98.28 NEWPAGE CORP 10.00% 5/1/2012 59.50 NEWPAGE CORP 12.00% 5/1/2013 27.49 RESTAURANT CO 10.00% 10/1/2013 15.16 RIVER ROCK ENT 9.75% 11/1/2011 89.20 RASER TECH INC 8.00% 4/1/2013 29.76 SBARRO INC 10.38% 2/1/2015 20.55 THORNBURG MTG 8.00% 5/15/2013 3.00 TRANS-LUX CORP 8.25% 3/1/2012 16.63 TRANS-LUX CORP 9.50% 12/1/2012 15.25 TOUSA INC 9.00% 7/1/2010 19.00 TIMES MIRROR CO 7.25% 3/1/2013 46.00 TRICO MARINE 3.00% 1/15/2027 5.00 TEXAS COMP/TCEH 7.00% 3/15/2013 29.00 VIRGIN RIVER CAS 9.00% 1/15/2012 48.00 WCI COMMUNITIES 7.88% 10/1/2013 0.50 WOLVERINE TUBE 15.00% 3/31/2012 40.19 WASH MUT BANK FA 5.65% 8/15/2014 0.27 ********* 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 ***