/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110630.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, June 30, 2011, Vol. 15, No. 179 Headlines 4KIDS ENTERTAINMENT: Amends Schedules of Assets and Liabilities 524 HOWARD: Charles Maher Okayed as Resolution Advocate AMCARE: Oklahoma Processing Claims on $51-Mil. Insurance Judgment AMERICAN APPAREL: Authorized Common Shares Hiked to 230 Million AMF BOWLING: S&P Cuts CCR to 'CCC+' on Refinancing Risk ANDERSON NEWS: Examiner Spots $75 Million in Avoidable Payments ANNA NICOLE SMITH: Ruling May Limit Bankruptcy Jurisdiction ANTELOPE SQUARE: Continental Takes Ownership; 2 Tenants Open ANTELOPE TECHNOLOGIES: 5th Circ. Affirms Chapter 11 Dismissal BAILEY & ASSOCIATES: Voluntary Chapter 11 Case Summary BARNES BAY: Creditors Oppose to New Bay Chapter 11 Plan BERNARD L MADOFF: Feeder Fund Investors Can't Sue Under SIPA BERNARD L MADOFF: Judge OKs $212M Settlement With Madoff Feeders BLACK CROW: Lease Decision Period Extended Until Sept. 6 BLACK PRESS: S&P Raises CCR to 'B' on Improved Profitability BLOCK 106: Hearing on Voluntary Dismissal Plea on July 12 BLOCKBUSTER INC: U.S. Trustee's Objections to Fees Overruled BOCA BRIDGE: New Lender JMP Boca Says Plan Outline Inadequate BRIARWOOD CAPITAL: Principal Wants Sale Transaction Denied BRONX HEIGHTS: Mismanagement, Unpaid Bills Cue Bankruptcy BRONX HEIGHTS: Voluntary Chapter 11 Case Summary BT MOKLER: Case Summary & 20 Largest Unsecured Creditors CASCADE FINANCIAL: Sale to Opus Bank Expected to Close Today CB HOLDING: Court Approves J.H. Cohn as Tax Accountants CHINA-BIOTICS: To Delist From NASDAQ Due to Officials Resignations CHIQUITA BRANDS: S&P Rates $400-Mil. Credit Facilities at 'BB-' CLUB VENTURES: Can Access LNB's DIP Facility on Final Basis CLUB VENTURES: Plan Filing Exclusivity Extended Until Sept. 28 CLUB VENTURES: Court Approves FTI as Panel's Financial Advisor COLONNADE PROPERTY: Organizational Meeting to Form Panel on July 1 COMMERCIAL CAPITAL: Wants to Hire Sender as Special Counsel COMMERCIAL CAPITAL: Judge Approves Insurance Settlement Agreement COMMERCIAL CAPITAL: Contractors Seeks to Foreclose Property COYOTES HOCKEY: Hulzizer Axes Offer to Acquire Coyotes CROSSOVER FINANCIAL: Sec. 341 Creditors' Meeting Set for July 19 CRYOPORT INC: Incurs $6.15 Million Net Loss in Fiscal 2011 CRYSTAL CATHEDRAL: Creditors Committee Down to 5 Members CRYSTAL CATHEDRAL: Panel Objects to More Work for Lutzker CRYSTALLEX INT'L: Fails to Comply with NYSE's Listing Standards D-SIGNS INC: Voluntary Chapter 11 Case Summary DALLAS STARS: Said to Be Preparing Bankruptcy to Push Sale DAIRY PRODUCTION: Has Until Aug. 8 to Propose Chapter 11 Plan DEB SHOPS: Hires Kurtzman Carson as Claims & Noticing Agent DEB SHOPS: Wins Interim OK for Ableco DIP Financing DENNEY FARMS: Chapter 11 Reorganization Case Dismissed DEUCE INVESTMENTS: No Assets to Administer, Wants Case Dismissed DOT VN INC: Co-Founder & Pres. Shares Vision for Vietnamese IDNs ENRON CORP: 2nd Circ. Denies Appeal of Securities Settlement EVT HOTEL: Case Summary & 4 Largest Unsecured Creditors EZENIA! INC: Chief Financial Officer Thomas McCann Quits FAIRWAY COMMONS II: Roseville Portfolio Wants Stay Lifted FERNANDEZ MOLEDO: Case Summary & 20 Largest Unsecured Creditors FLORIDA EXTRUDERS: Triton Capital OK'd as Financial Advisor FLORIDA EXTRUDERS: Taps McIntyre Panzarella as Legal Counsel FLORIDA EXTRUDERS: Court OKs $12-Mil. Sale to Benada Aluminum FLORIDA EXTRUDERS: Amends List of 20 Largest Unsecured Creditors FULTON HOMES: Settles With Lenders to Emerge From Bankruptcy G.B.S. HOLDING: Court Approves DurretteCrump as Chapter 11 Counsel GANNON INTERNATIONAL: Judge Taps Receiver for Apartments GMX RESOURCES: Files Form S-3; Registers 3.54MM Common Shares GULFSTREAM AIRLINES: Former Workers Cry Foul Over Severance Pay HANMI FINANCIAL: To Sell Common Shares to Woori Investment HARRY & DAVID: First Amended Plan Voting Deadline Set for July 28 HEARUSA INC: Obtains Final Nod of $10 Million DIP Financing HEARUSA INC: Luis Salazar Named Consumer Privacy Ombudsman HEARUSA INC: Hearing on Sale of All Assets Set for Aug. 1 HOSPITAL DAMAS: Court Approves Enrique Peral as Special Counsel HOSPITAL DAMAS: Court OKs FPV&G to Assist in Medicare Cost Report HOSPITAL DAMAS: To Employ Silva CPA Group as Financial Advisor HTRINKEL ENTERPRISES: Case Summary & 4 Largest Unsecured Creditors IMAGINE HOSPITALITY: Case Summary & 5 Largest Unsecured Creditors INDEPENDENCE TAX: Reports $15.98-Mil. Profit in Fiscal 2011 INNKEEPERS USA: Reorganization Plan Wins Court Approval IRON MINING: Negotiating Forbearance with MST Financial ISAACSON STEEL: Files For Chapter 11 Bankruptcy Protection ISAACSON STEEL: Case Summary & 20 Largest Unsecured Creditors JACKSON HEWITT: Creditors Seek to Put Brakes on Plan Process JOHNSON & ASSOCIATES: Case Summary & 20 Largest Unsec. Creditors JOSEPH PALOMBI: Case Summary & 4 Largest Unsecured Creditors JTM DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors KEARNEY LEASING: Case Summary & 3 Largest Unsecured Creditors KOBRA EFS: Sec. 341 Creditors' Meeting Set for July 25 KTLA, LLC: Case Summary & 8 Largest Unsecured Creditors LANDAMERICA FIN'L: Trustee Hits Executives With Fraud Suit LENNY DYKSTRA: SaveLenny.com Solicits Donations From Fans LIBBEY INC: Stephanie Streeter Named Chief Executive Officer LOCATION BASED TECH: Inks Lease Agreement with Irvine Company MAJESTIC TOWERS: Creditors Have Until July 8 to File Claims MAQ MANAGEMENT: Sec. 341 Creditors' Meeting Set for Aug. 1 MAQ MANAGEMENT: Status Conference Set for July 7 MAQ MANAGEMENT: Wins Interim OK to Hire Talarchyk Merrill MAQ MANAGEMENT: Asks Bankruptcy Court to Stay BB&T Actions MARKET STREET: Court Approves Eskew Dumez Ripple as Architects MARKET STREET: Hires Greenberg Traurig for Environmental Matters MARKET STREET: To Employ Cohen Financial as Financial Advisor MERRITT AND WALDING: Sec. 341 Creditors' Meeting Set for July 12 MERRITT AND WALDING: Asks Court to Approve Irvin Grodsky Hiring MILLER HEALTH: Organizational Meeting to Form Panel on July 6 MINOR FAMILY: DLA Piper Withdraws as Counsel Due to Unpaid Fees MINOR FAMILY: Has Until Sept. 1 to Propose Chapter 11 Plan MOKLER PROPERTIES: Case Summary & 6 Largest Unsecured Creditors MYSPACE INC: Acquired by Specific Media for $35 Million NATIONAL ENVELOPE: Court Oks Justis Law Firm for Linde Litigation NEC HOLDINGS: Seeks Stay Pending Appeal of Arbitration Denial NOVADEL PHARMA: Four Directors Elected at Annual Meeting OAKHURST LODGE: Case Summary & 20 Largest Unsecured Creditors OLSEN AGRICULTURAL: Has Interim Okay to Access $675,000 DIP Loans OLSEN AGRICULTURAL: Files Schedules of Assets and Liabilities OLSEN AGRICULTURAL: Seeks to Tap Weatherford Thompson as Counsel ONE PELICAN: Has Green Light to Borrow $30T From Insiders ONE RENAISSANCE: Files Schedules of Assets and Liabilities OPTIMUMBANK HOLDINGS: Receives Non-Compliance Notice from NASDAQ PERI SOFTWARE: Voluntary Chapter 11 Case Summary PETRA FUND: Files Schedules of Assets and Liabilities PETRA FUND: Petra Offshore Files Schedules of Assets and Debts PHILLIPS RENTAL: Plan Provides 100% Payment of Unsecured Claims PINNACLE HILLS: Abandons Assets, Seeks Case Dismissal PLATINUM PROPERTIES: Wants Until Nov. 21 to Decide on Leases POST STREET: Sec. 341 Creditors' Meeting Set for July 19 POST STREET: Status Conference Set for Aug. 8 R & S ST. ROSE: U.S. Trustee Points to L&S Conflict of Interest RACE FACE: Former Employee Acquires Firm Out of Receivership RANCHO HOUSING: Taps Snell & Wilmer as General Insolvency Counsel RANDOLPH MEDICAL: Judge Sawyer Dismisses Chapter 11 Case REED & JETER: Voluntary Chapter 11 Case Summary RITTENHOUSE SQUARE: Court Appoints Carl Dranoff as Receiver RITZ-CARLTON, LAKE TAHOE: Ends Receivership, Gets New Owners RIVER ROAD: 7th Circ. Affirms Proposed Asset Sale Rejection RIVERWOOD HOMES: Case Summary & 6 Largest Unsecured Creditors ROUND TABLE: Court Approves Snell & Wilmer Application RU LLC: Case Summary & 20 Largest Unsecured Creditors SBARRO INC: Incurs $6.3 Million Net Loss for May SEA REAL: Voluntary Chapter 11 Case Summary SHILO INN SEASIDE: Wins Interim OK to Use OneWest Collateral SIGNATURE STYLES: Committee Wants Gift Cards Honored SIGNATURE STYLES: Five Members in Official Creditors Committee SOVEREIGN OFFICE: Case Summary & 7 Largest Unsecured Creditors TELLICO LANDING: Case Summary & 11 Largest Unsecured Creditors TELTRONICS INC: Files For Chapter 11 Protection TELTRONICS, INC.: Case Summary & 20 Largest Unsecured Creditors TERRESTAR NETWORKS: No Auction Today; Assets to Go to Dish THERMOENERGY CORP: Inks Bridge Loan & Warrant Pact with Investors TIRES GALORE: Voluntary Chapter 11 Case Summary TIRES GALORE OF MICHIGAN: Voluntary Chapter 11 Case Summary TOBIANO RESORT: In Receivership After Failing to Keep Current Debt TRANSDEL PHARMACEUTICALS: Files for Chapter 11 to Sell TRANSDEL PHARMACEUTICALS: Case Summary & 20 Largest Unsecureds TRI-STAR ESTATES: Plan Exclusivity Expires Thursday TRITON CONTAINER: S&P Assigns 'BB+' Corporate Credit Rating TWO JAYS: Case Summary & 17 Largest Unsecured Creditors UNITED STATES STEEL: Fitch Cuts Issuer Default Rating to 'BB' USA COMMERCIAL: 9th Circ. Rejects Bingham's to Keep Payments UTSTARCOM INC: Completes Reorganization Merger VERENIUM CORP: Partners with Novus to Develop Animal Nutrition VINEYARD AT SERRA RETREAT: Sec. 341 Creditors' Meeting on July 22 WII COMPONENTS: Commences Tender Offer and Consent Solicitation WATERSCAPE RESORT: U.S. Trustee Appoints 3-Member Creditor's Panel WATERSCOPE RESORT: Committee Objects to Disclosure Statement WESTLAND PARCEL: Wants to Hire David Goodrich as CRO WESTLAND PARCEL: Wants to Sell All Assets to Dubar * Fox Sees These Ten Brands Will Disappear in 2012 * Rhode Island Lawmakers Mull Changes to Receivership Law * IMF Urges Debt Limit Action in U.S. to Avoid Default * Recent Small-Dollar & Individual Chapter 11 Filings ********* 4KIDS ENTERTAINMENT: Amends Schedules of Assets and Liabilities --------------------------------------------------------------- 4Kids Entertainment Licensing, Inc., a debtor-affiliate of 4Kids Entertainment, Inc., filed with the U.S. Bankruptcy Court for the Southern District of New York amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $224,115,130 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $0 E. Creditors Holding Unsecured Priority Claims $125,000 F. Creditors Holding Unsecured Non-priority Claims $48,045,307 ----------- ----------- TOTAL $224,115,130 $48,170,307 4Kids Entertainment, Inc., and other debtor-affiliates also filed amended schedules disclosing: Debtor Assets Liabilities ------ ------ ----------- 4Kids Entertainment, Inc. $78,397,971 $86,515,395 4Kids Ad Sales, Inc. $2,310,193 $148,965,026 4Kids Productions, Inc. $116,441,727 $105,694,687 About 4Kids Entertainment New York-based 4Kids Entertainment, Inc., dba 4Kids, is an entertainment and media company specializing in the youth oriented market, with operations in these business segments: (i) licensing, (ii) advertising and media broadcast, and (iii) television and film production/distribution. The parent entity, 4Kids Entertainment, was organized as a New York corporation in 1970. 4Kids Entertainment, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and notice agent. BDO Capital Advisors, LLC, is the financial advisor and investment banker. An official committee of unsecured creditors has not been appointed by the Office of the United States Trustee. 524 HOWARD: Charles Maher Okayed as Resolution Advocate ------------------------------------------------------- The Hon. Dennis Montali of the U.S. Bankruptcy Court for the Northern District of California authorized the appointment of Charles P. Maher LUCE, FORWARD, HAMILTON & SCRIPPS LLP 121 Spear Street, Suite 200 San Francisco, CA 94105 Tel: (415) 356-4600 as the resolution advocate to serve pursuant to a stipulation entered between 524 Howard, LLC, and Howard Street Property Investors, LLC. Mr. Maher is assigned to resolve the relief from the automatic stay filed by Howard Street, which is assigned to the Bankruptcy Dispute Resolution Program in the district. Howard Street holds secured claims against the Debtor. Under the Chapter 11 plan proposed by the Debtor, Howard Street will be paid in full from the proceeds of the sale of its property. If the Debtor is unable to sell the property, it will turnover the property to Howard Street. About 524 Howard, LLC 524 Howard, LLC, owner of a real property located at 524 Howard Street, in San Francisco, California, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-30594) on Feb. 17, 2011. Iain A. Macdonald, Esq., and Reno F.R. Fernandez, Esq., at Macdonald and Associates, in San Francisco, serve as the Debtor's bankruptcy counsel. Napoleon L. Forte serves as appraiser for the purpose of valuing certain real property. An affiliate, CMR Mortgage Fund, LLC, sought Chapter 11 protection (Bankr. N.D. Calif. Case No. 08-32220) on Nov. 18, 2008. Affiliates CMR Mortgage Fund II, LLC (Bankr. N.D. Calif. Case No. 09-30788) and CMR Mortgage Fund III, LLC (Bankr. N.D. Calif. Case No. 09-30802) filed Chapter 11 petitions on March 31, 2009. 524 Howard disclosed $38,859,147 in assets and $29,326,164 in liabilities as of the Chapter 11 filing. AMCARE: Oklahoma Processing Claims on $51-Mil. Insurance Judgment ----------------------------------------------------------------- Wayne Greene at Tulsa World reports that Oklahoma Insurance Commissioner John Doak is processing claims on a $51 million judgment the state will receive from an insolvent insurance company. After a lengthy court dispute, Oklahoma ended up with a $51 million award from the Louisiana Supreme Court earlier this year, according to Tulsa World. The report notes that Shawn Ashley, a spokesman for the Insurance Department, said the state has received some but not all of that money and is working on distributing it to doctors, clinics, ambulance companies, hospitals and other medical providers that AmCare owed money. The Oklahoma distributions will range from $15 to more than $300,000, Mr. Ashley said, the report relates. AmCare is a health maintenance organization that operated in Oklahoma, Texas and Louisiana. AmCare was put into receivership in 2003. AMERICAN APPAREL: Authorized Common Shares Hiked to 230 Million --------------------------------------------------------------- American Apparel, Inc., on June 24, 2011, filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State to increase the total number of shares of common stock that the Company is authorized to issue from 120,000,000 to 230,000,000. A copy of the Charter Amendment is available for free at http://is.gd/0ZbB4Q At the 2011 Annual Meeting of Stockholders held on June 21, 2011, the stockholders: (1) elected Robert Greene and Allan Mayer to serve as Class A directors for a term of three years and until his successor is duly elected and qualified, or such director's earlier death, resignation or removal; (2) ratified the appointment of Marcum LLP as the Company's independent auditors for the fiscal year ending Dec. 31, 2011; (3) approved the amendment to the Company's Amended and Restated Certificate of Incorporation to increase the number of authorized shares of Common Stock to 230,000,000 shares; (4) approved the compensation of the Company's named executive officers; (5) approved the proposal to hold an advisory vote on executive compensation every three years; (6) approved the Warrant Exercise Price Reset Proposal (as defined in the Proxy Statement); (7) approved the American Apparel, Inc., 2011 Omnibus Stock Incentive Plan; (8) approved the potential issuance to certain investors of up to 27,443,173 shares of Common Stock upon the exercise of purchase rights under the Investor Purchase Agreement; and (9) approved the potential issuance to Dov Charney of up to 40,313,316 shares of Common Stock pursuant to the Charney Purchase Agreement, and such additional shares as may be issued pursuant to topping-up and anti-dilution adjustments under the Charney Purchase Agreement. 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. 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 March 31, 2011, showed $333.95 million in total assets, $283.12 million in total liabilities, and $50.83 million in total stockholders' equity. The Wall Street Journal reports that Skadden, Arps, Slate, Meagher & Flom has been advising the company on its recent restructuring efforts alongside investment bank Rothschild Inc. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Going Concern Doubt 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. As of April 30, 2011, the Company had approximately $8,000,000 of cash, approximately $8,900,000 of availability for additional borrowings and $46,100,000 outstanding on the credit facility under the BofA Credit Agreement and $1,400,000 of availability for additional borrowings and $4,000,000 outstanding on the credit facility under the Bank of Montreal Credit Agreement. As May 10, 2011, the Company had approximately $5,941,000 available for borrowing under the BofA Credit Agreement and $1,481,000 available under the Bank of Montreal Credit Agreement. As more fully discussed in Note 13, on April 26, 2011 the Company sold 15,777,000 shares of Common Stock to a group of investors, at a price of $0.90 per share, for the aggregate cash purchase price of approximately $14,200,000 of which $5,000,000 went to satisfy and meet the availability requirement of the amendment to the BofA Credit Agreement. The investors also received the right to purchase up to an additional 27,443,000 shares at the same price within 180 days, subject to shareholder approval and subject to certain anti-dilution and other adjustments. This transaction improved the liquidity position of the Company by approximately $8,000,000. The Company incurred a loss from operations of $13,091,000 for the three months ended March 31, 2011, compared to a loss from operations of $21,556,000 for the three months ended March 31, 2010. The current operating plan indicates that losses from operations may be incurred for all of fiscal 2011. "Consequently, the Company may not have sufficient liquidity necessary to sustain operations for the next twelve months and this raises substantial doubt that the Company will be able to continue as a going concern," the Company said in the Form 10-Q. "If we are not able to timely, successfully or efficiently implement the strategies that we are pursuing to improve our operating performance and financial position, obtain alternative sources of capital or otherwise meet our liquidity needs, we may need to voluntarily seek protection under Chapter 11 of the U.S. Bankruptcy Code." AMF BOWLING: S&P Cuts CCR to 'CCC+' on Refinancing Risk -------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Mechanicsville, Va.-based AMF Bowling Worldwide Inc. "We lowered our corporate credit rating to 'CCC+' from 'B-'. We revised our recovery rating on the company's first-lien senior secured credit facilities to '3', reflecting our expectation for meaningful (50% to 70%) recovery for lenders in the event of a payment default, from '2'. We lowered our issue-level rating on the first- lien senior secured credit facilities to 'CCC+' (the same as the corporate credit rating) from 'B', in accordance with our notching criteria for a recovery rating of '3'. The revised recovery rating reflects our expectation for a more significant decline in cash flow in our simulated default scenario than that used in our previous analysis. We also lowered our rating on the second-lien senior secured credit facility to 'CCC-' (two notches lower than the corporate credit rating) from 'CCC', and maintained our recovery rating of '6', indicating our expectation of negligible (0 to 10%) recovery for lenders in the event of a payment default. The rating outlook is negative," S&P stated. "The downgrade reflects the significant refinancing risk associated with the 2012 and 2013 maturities and our view that a restructuring of at least a portion of its debt obligations is becoming more likely," said Standard & Poor's credit analyst Michael Halchak. Additionally, even in the event AMF does successfully extend maturities, the company would likely face higher interest costs, as financial market conditions have meaningfully changed since the existing credit facilities were put into place and AMF's operating performance has weakened. "We believe AMF would likely have difficulty meeting its fixed charges if it were subject to meaningfully higher interest rates," S&P related. Revenues were flat through the first nine months in AMF's fiscal 2011 (ending June), while EBITDA was down approximately 4% compared with the comparable period last year. AMF has struggled to contain its relatively high fixed costs in recent years as revenues continue to decline. "Based on our expectations for continued gradual declines in EBITDA, we do not foresee an improvement in credit measures. We expect operating lease-adjusted total debt to EBITDA and EBITDA coverage of interest expense to be in the high-8x and mid-1x areas at the end of AMF's fiscal 2011," according to S&P. ANDERSON NEWS: Examiner Spots $75 Million in Avoidable Payments --------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that in a boon for creditors of Anderson News LLC, the defunct magazine wholesaler could go after some $75 million in transfers that company insiders received shortly before its collapse, according to a report the Delaware bankruptcy court issued Friday. After investigating the company's sudden demise in February 2009, a court-appointed examiner pored over $1 billion of transfers to nondebtor affiliates but found no evidence of wrongdoing on the part of Anderson's top brass and advised against consolidating the Anderson entities for the benefit of creditors, Law360 says. Anderson News LLC is a sales and marketing company for books and magazines. In March 2009, Anderson News LLC's creditors filed petitions for the Company's bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The publishing companies claimed that Anderson News owes them a combined $37.5 million. ANNA NICOLE SMITH: Ruling May Limit Bankruptcy Jurisdiction ----------------------------------------------------------- Bingham McCutchen LLP disclosed that on June 23, 2011, the Supreme Court decided Stern v. Marshall, 564 U.S. ___ (2011), which as a practical matter may significantly limit the litigation of state- law claims in bankruptcy courts, and eliminates the previous risk that creditors, by the mere act of filing claims, submit to bankruptcy court jurisdiction with respect to all counterclaims of the debtor. The Court held that, regardless of the authority given by federal statute, bankruptcy courts lack the constitutional authority to enter a final judgment on certain state-law claims asserted by a debtor as counterclaims to a proof of claim. As a constitutional matter, bankruptcy courts now may enter a final judgment only over counterclaims that (i) arise directly out of bankruptcy law or (ii) are so factually intertwined with the proof of claim that they would necessarily have to be resolved in the claims allowance process. The Court did not address the bankruptcy court's jurisdiction over matters "related to" bankruptcy proceedings, for which current federal law authorizes a cumbersome process in which a bankruptcy court may propose findings of fact and conclusions of law, subject to de novo review in the district courts. This decision pares down the bankruptcy court's power to enter final judgments in state-law disputes in connection with the claims allowance process. Prior to this ruling, conventional wisdom was that a claimant who filed a proof of claim thereby submitted to the jurisdiction of the bankruptcy court, opening itself to adjudication by a bankruptcy judge of any counterclaim that could be asserted by a debtor. The decision in Marshall will result in more creditor claims being filed in bankruptcy court, fewer litigations of state-law counterclaims conducted there, and, possibly, a less-coordinated, longer bankruptcy process for all parties. Background Stern v. Marshall resolves an epic dispute between Vickie Lynn Marshall, a.k.a. Anna Nicole Smith, and Pierce Marshall, regarding the estate of J. Howard Marshall, Vickie's deceased husband and Pierce's father. In the midst of probate litigation in Texas, Vickie filed for bankruptcy in California. Pierce filed a claim in the bankruptcy, alleging that Vickie defamed him by persuading her lawyers to state to members of the press that he had engaged in fraud to gain control of the assets of Howard. Vickie filed a counterclaim against Pierce's proof of claim asserting tortious interference with a gift that she expected to receive from Howard. In November 1999, the Bankruptcy Court for the Central District of California granted summary judgment in favor of Vickie on the defamation claim and, after a bench trial, issued a final judgment awarding her hundreds of millions of dollars in damages on her counterclaim. Pierce appealed on numerous grounds, including that the Bankruptcy Court lacked jurisdiction to enter a final judgment on Vickie's counterclaim. Pursuant to 28 U.S.C. Sec. 157, bankruptcy courts may hear and enter final judgments in core proceedings in a bankruptcy case. In non-core proceedings that are "related to" a bankruptcy case, bankruptcy courts may only submit proposed findings of fact and conclusions of law to the district court for review and final judgment. On appeal, the District Court for the Central District of California reversed the Bankruptcy Court's holding, finding that the counterclaim was not core because it was not sufficiently related to Pierce's defamation claim. The District Court treated the Bankruptcy Court's judgment as proposed, not final, and considered it de novo. Before the District Court entered final judgment, a Texas probate court conducted a jury trial on the merits of the parties' dispute over Howard's estate and entered a judgment in Pierce's favor. The District Court nonetheless decided the counterclaim for Vickie after another bench trial and awarded her nearly $90 million in compensatory and punitive damages. The Court of Appeals for the Ninth Circuit reversed, agreeing with the District Court that the Bankruptcy Court lacked authority to enter final judgment on Vickie's counterclaim because the counterclaim "was not so closely related to [Pierce's] proof of claim that the resolution of the counterclaim is necessary to resolve the allowance or disallowance of the claim itself." However, because the Texas probate court's judgment was the earliest final judgment on matters relevant to the counterclaim, the Court of Appeals held that the District Court should have given the state judgment preclusive effect and ruled in Pierce's favor. Supreme Court Decision The Supreme Court concluded that the Bankruptcy Court was authorized to exercise jurisdiction over Vickie's counterclaim by 28 U.S.C. Sec. 157(2)(C), which purports to confer core jurisdiction with respect to "counterclaims by the estate against persons filing claims against the estate." However, in cases like Marshall, the Court found this to be an unconstitutional grant of jurisdiction to a non-Article III court. Article III of the Constitution permits Congress to establish the federal courts, and, as a separation of powers matter, confers on the judiciary exclusive jurisdiction over "cases and controversies," which include suits at "common law, or in equity, or admiralty." The Court reaffirmed that the bankruptcy court falls outside of the Article III judiciary. As the Court explained in Marshall, Congress may confer jurisdiction on bankruptcy courts to decide certain matters involving "public rights." The Northern Pipeline1 case, a seminal decision declaring certain jurisdictional provisions of the Bankruptcy Act of 1978 unconstitutional, acknowledged that the Constitution would permit bankruptcy courts to exercise such jurisdiction. But in Marshall, the Court has limited the public rights exception to "cases in which the claim at issue derives from a federal regulatory scheme [such as the Bankruptcy Code], or in which resolution of the claim by an expert government agency is deemed essential to a limited regulatory objective within the agency's authority." The Court viewed Vickie's counterclaim in Marshall as materially indistinguishable from the state-law claims at issue in Northern Pipeline, and therefore held that these claims did not fall within the "public rights" exception. The Court also rejected Vickie's argument that, by filing his proof of claim, Pierce had voluntarily submitted to the jurisdiction of the Bankruptcy Court. It articulated two instances where a bankruptcy court would have jurisdiction to issue final judgment on a counterclaim: (1) where the debtor is asserting a right of recovery that was created by federal bankruptcy law; or (2) where the counterclaim is so factually intertwined with the proof of claim that the counterclaim would necessarily have to be resolved as part of the claims allowance process. In Marshall, Vickie's counterclaim was a state tort action that would have existed in the absence of any bankruptcy proceeding. Moreover, Vickie's counterclaim could not be resolved "in passing on objections" to Pierce's claim, but required the Bankruptcy Court to make several additional factual and legal determinations, including "(1) the existence of an expectancy of a gift; (2) a reasonable certainty that the expectancy would have been realized but for the interference; and (3) damages," as well as determining whether punitive damages were warranted. Observations Stern v. Marshall could have broad implications on a bankruptcy court's ability to issue final judgments on matters involving state law, or that otherwise do not arise out of federal bankruptcy law. With respect to counterclaims, Marshall holds that state-law claims can be finally adjudicated by a bankruptcy court only where there is a close nexus between the facts or legal issues underlying both the proof of claim and the debtor's counterclaim. Outside of the claims allowance process, the decision appears to eliminate a bankruptcy court's power to exercise core jurisdiction over state-law causes of action on the theory that collection of the claim might augment the bankruptcy estate. While a bankruptcy court can still exercise "related to" jurisdiction over state-law claims (including counterclaims), this allows it only to issue proposed findings of fact and conclusions of law that must be considered de novo by the district court.2 In short, the ruling could have the effect of lengthening the bankruptcy process or, as a practical matter, causing debtors to pursue affirmative state-law claims outside of the bankruptcy court. Moreover, because the decision addresses the jurisdictional power of the bankruptcy court under the Constitution, it will have retroactive effect, and even in decided matters, litigation may now arise contesting certain orders as void. About Anna Nicole Smith Anna Nicole Smith, formally known as Vickie Lynn Hogan, filed under Chapter 11 in 1996 as part of a struggle over the estate of J. Howard Marshall, whom she married in 1994 when she was 26 and died barely a year after they were wed. Ms. Smith, a former Playboy model and actress, died in February 2007. Mr. Marshall left his estate to his son, E. Pierce Marshall, and nothing to Ms. Smith. Ms. Smith, alleging that her husband had promised to leave her a large share of the estate, won a ruling from a bankruptcy judge in 2000 awarding her $475 million from Mr. Marshall's estate. A federal judge in 2002 reduced that amount to $89 million. The U.S. Court of Appeals for the Ninth Circuit in San Francisco threw out the judgment in 2004, holding that the bankruptcy court didn't have jurisdiction over probate matters. The U.S. Supreme Court in May 2006 issued a decision, overruling the appeals court and finding that the bankruptcy court had jurisdiction, even though the issues also could have been decided in the Texas probate court. The Supreme Court remanded the case for the federal appellate court to decide whether her victory in the bankruptcy and district courts was knocked out because a Texas probate court had entered judgment first against her. On remand from the Supreme Court, the 9th Circuit issued its decision in March 2010, concluding that the bankruptcy court didn't have so-called core jurisdiction. The 9th Circuit noted that before the U.S. district court was able to enter judgment in her favor, the Texas probate court had entered judgment against her saying she was entitled to nothing from her deceased husband's estate. In September 2010, the Supreme Court agreed to take a second look at disputes arising in and related to Ms. Smith's 1996 bankruptcy case and her entitlement to payment of the $449 million bankruptcy court judgment. ANTELOPE SQUARE: Continental Takes Ownership; 2 Tenants Open ------------------------------------------------------------ The Press-Enterprise reports that Continental East Development has taken ownership of the languishing Antelope Square shopping center in Murrieta, California. Developers broke ground on the shopping center in 2007, but the project fell into receivership before it was finished. Continental purchased the note on the property, which has 84,000 square feet of retail space, and then foreclosed. Since then, Walgreens and Jack in the Box have opened locations in the center, and Continental East said it has submitted plans to the city to build a drive-thru coffee shop and bistro on an unfinished portion of the property, the report adds. ANTELOPE TECHNOLOGIES: 5th Circ. Affirms Chapter 11 Dismissal ------------------------------------------------------------- Megan Stride at Bankruptcy Law360 reports that the Fifth Circuit affirmed Friday the dismissal of Antelope Technologies Inc.'s Chapter 11 petition, ruling that a bankruptcy court made no mistake in finding that the company filed for protection to improperly help its position in shareholder litigation. A bankruptcy judge had confirmed a Chapter 11 plan for Antelope Technologies but the ruling was later reversed by the district judge. The district judge remanded the case so the bankruptcy judge could decide whether to appoint a Chapter 11 trustee or dismiss the case. After a hearing following remand, the bankruptcy judge concluded that the Chapter 11 petition was designed "to gain an unfair advantage in the shareholder litigation." In July 2010, U.S. District Judge Sim Lake in Houston affirmed the ruling based on the conclusion that the Chapter 11 filing was not in good faith. Antelope Technologies, Inc., dba MCC Computer Company, filed for Chapter 11 (Bankr. S.D. Tex. Case No. 07-31159) on Feb. 14, 2007. The Debtor scheduled total assets of $448,925 and debts of $3,477,515. BAILEY & ASSOCIATES: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Bailey & Associates, Inc. 1805 Radford St. El Paso, TX 79903 Bankruptcy Case No.: 11-31202 Chapter 11 Petition Date: June 22, 2011 Court: United States Bankruptcy Court Western District of Texas (El Paso) Judge: H. Christopher Mott Debtor's Counsel: Wiley France James, III, Esq. JAMES & HAUGLAND, P.C. P.O. Box 1770 El Paso, TX 79949-1770 Tel: (915) 532-3911 Fax: (915) 541-6440 E-mail: wjames@jghpc.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Robert Bailey, vice president. BARNES BAY: Creditors Oppose to New Bay Chapter 11 Plan ------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that several Barnes Bay Development Ltd. creditors rose in opposition Thursday to the Company's new Chapter 11 plan, saying it discriminates between similarly situated creditors and should be scrapped before even voting on it. According to Law360, most of the company's unsecured creditors are individuals or organizations that put down deposits totaling $53 million on residences at the debtors' Viceroy Anguilla resort, but many became disgruntled after the property's opening was repeatedly delayed. Plan Disclosures Hearing Today According to Bloomberg News, Barnes Bay scheduled a June 30 hearing for approving the disclosure statement after the creditors' committee and the developer agreed on a Chapter 11 reorganization plan. The confirmation hearing for approval of the plan is tentatively sets for Aug. 18. Under the Plan, General unsecured creditors are paid in full without interest, while those who signed contracts before bankruptcy to buy units have several options. Prospective buyers can either complete the purchase, and receive full credit for deposits given before bankruptcy, or sue to enforce whatever rights they have under Anguilla law. Or, purchasers can elect to receive 15% to 50% of their cash deposits. The Plan is built around an auction to be held on July 27. Secured creditor Starwood Capital Group LLC is expected to be the winner. Starwood would take title through confirmation of the plan. Starwood, owed $370 million, received final court approval for $5 million in financing for the Chapter 11 effort. The plan gives Starwood nothing on account of the deficiency on its secured claim. Greenwich, Connecticut-based Starwood acquired the secured debt in October. About Barnes Bay Beverly Hills, California-based Barnes Bay Development Ltd., owns the Viceroy Anguilla Resort & Residences on the British West Indies island of Anguilla. Barnes Bay and two affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10792) on March 17, 2011. The Debtor disclosed $3,331,282 in assets and $481,840,435 in liabilities as of the Chapter 11 filing. Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy counsel, and Keithley Lake & Associates is the Debtors' special Anguillan counsel. Kurtzman Carson Consultants LLC is the Debtors' claims, noticing, solicitation and balloting agent. The Debtors' Chapter 11 plan is intended to facilitate the sale of the Viceroy Anguilla Resort and Residences. The U.S. Trustee appointed five members to the official committee of unsecured creditors in the Debtors' cases. Brown Rudnick LLP serves as the Committee's co-counsel, and Womble Carlyle Sandridge & Rice, PLLC, as its Delaware co-counsel. C.R. Hodge & Associates is the Committee's foreign counsel. FTI Consulting, Inc., serves as the Committee's financial advisors. BERNARD L MADOFF: Feeder Fund Investors Can't Sue Under SIPA ------------------------------------------------------------ Carolina Bolado at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Burton R. Lifland ruled Tuesday that investors who bought shares in feeder funds that set up accounts with convicted Ponzi schemer Bernard Madoff's securities firm were not customers of the company under the Securities Investor Protection Act. Law360 relates Judge Lifland said that because the investors bought ownership interests in the feeder funds and signed over their rights to make investment decisions to the managers of the funds, they did not have claims with Bernard L. Madoff Investment Securities LLC. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping $50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of Feb. 18, 2011, a total of $6.85 billion in claims by investors has been allowed, with $791.1 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BERNARD L MADOFF: Judge OKs $212M Settlement With Madoff Feeders ---------------------------------------------------------------- Eric Hornbeck at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Burton R. Lifland gave his stamp of approval Tuesday to a $212 million settlement between the trustee overseeing the liquidation of Bernard L. Madoff Investment Securities LLC and two of the notorious Ponzi schemer's feeder funds. The settlement between the trustee, Irving Picard, and feeder funds Greenwich Sentry LP and Greenwich Sentry Partners LP "resolves a lot of complex issues," Judge Lifland said. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping $50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of Feb. 18, 2011, a total of $6.85 billion in claims by investors has been allowed, with $791.1 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BLACK CROW: Lease Decision Period Extended Until Sept. 6 -------------------------------------------------------- The Hon. Paul M. Glenn of the U.S. Bankruptcy Court for the Middle District of Florida extended until Sept. 6, 2011, Black Crow Media Group, LLC, et al.'s time to assume or reject unexpired leases of non-residential real property. The Debtors relate that the extension will enable them to defer the assumption or rejection of the leases while they negotiate with creditors regarding the plan. About Black Crow Daytona Beach, Florida-based Black Crow Media Group, LLC, owns and operates 17 FM and 5 AM radio stations in Daytona Beach, Live Oak, Valdosta, Huntsville, Alabama, and Jackson, Tennessee. Black Crow filed for Chapter 11 protection two days before a hearing in U.S. district court where GECC was seeking appointment of a receiver following default on term loans and a revolving credit. The Company filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-00172) on Jan. 11, 2010. The Company's affiliates -- Black Crow Media, LLC, et al. -- also filed separate Chapter 11 petitions. H. Jason Gold, Esq., Valerie P. Morrison, Esq., and Dylan G. Trache, Esq., at Wiley Rein LLP, in McLean, Virginia, serve as the Debtors' counsel. Mariane L. Dorris, Esq., and R. Scott Shuker, Esq., at Latham, Shuker, Eden & Beaudine, LLP, have been tapped as co-counsel. Protiviti Inc. is the Debtors' financial advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Brian G. Rich, Esq., and Douglas Bates, Esq., at Berger Singerman, P.A., represent the Official Committee of Unsecured Creditors. Black Crow disclosed $14,661,198 in assets and $48,830,319 in liabilities. BLACK PRESS: S&P Raises CCR to 'B' on Improved Profitability ------------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit rating on Victoria, B.C.-based Black Press Ltd. to 'B' from 'B-'. The outlook is stable. "At the same time, we raised our issue-level ratings on Black Press' wholly owned Canadian subsidiary Black Press Group Ltd. and wholly owned U.S. subsidiary Black Press U.S. Partnership two notches to 'B+' from 'B-'. The bank facilities comprise a $25 million term loan A-1 due 2013 (U.S. borrower), a $140 million term loan B-1 due 2013 (U.S. borrower), and a US$85 million term loan B-2 due 2013 (Canadian borrower). We also revised our recovery rating on this debt to '2' from '4'. A '2' rating indicates our expectation of substantial (70%-90%) recovery in the event of default, in contrast to a '4' recovery rating, which indicates our expectation of average (30%-50%) recovery. The higher recovery rating reflects better recovery prospects given the reduction in senior secured debt upon the refinancing," S&P related. "The upgrade reflects the ongoing progress Black Press has made in improving profit margins and credit protection measures despite lower revenue in fiscal 2011, ended Feb. 28. Ongoing cost cutting by management and lower newsprint costs have been the main drivers," said Standard & Poor's credit analyst Lori Harris. In addition, near-term refinancing risk was eliminated as Black Press completed a refinancing of its maturing debt on June 24, 2011. The company issued C$110 million subordinated notes due February 2014 (not rated), the proceeds of which were used to repay the remaining balances outstanding on Black Press' C$63 million term loan A and C$55 million revolving credit facility, both due August 2011 and now terminated. The ratings on Black Press reflect what Standard & Poor's considers the company's high debt leverage, weak performance in the U.S., tight leverage covenant cushion, and lack of revenue diversification outside of the newspaper industry. "Partially offsetting these factors, in our opinion, are the company's improving credit protection measures, better performance in Canada (which makes up the bulk of revenue and profit), and solid market position within several of its regions," S&P said. The stable outlook reflects Standard & Poor's expectation that Black Press will maintain its current operating performance in the near term given the gradual economic recovery and better advertising environment, that credit protection measures will continue to strengthen, and that the company will maintain a minimum 10% EBITDA cushion on the leverage covenant when it tightens on Aug. 31, 2011. "We could lower the ratings if the company's financial flexibility weakens materially because of poor operating performance, resulting in adjusted debt to EBITDA above 5.5x or less than 10% cushion on the leverage ratio. We are not contemplating higher ratings within the next year," S&P said. Black Press is a private company and does not release financial information publicly. BLOCK 106: Hearing on Voluntary Dismissal Plea on July 12 --------------------------------------------------------- Block 106 Development, LLC, asks the U.S. Bankruptcy Court for the District Of New Jersey to dismiss its Chapter 11 case, or, in the alternative, classify the case as single asset real estate. The Hon. Donald H. Steckroth will convene a hearing on July 12, 2011, at 10:00 a.m., to consider the Debtor's case dismissal request. The Debtor waives oral argument unless opposition to its motion is filed. If any party wish to oppose the motion, it must file with the Office of the Clerk of the Bankruptcy Court responding papers stating with particularity the basis of the opposition to the motion. The Debtor is represented by: Gary K. Norgaard, Esq. John O'Boyle, Esq. STERN, LAVINTHAL, FRANKENBERG & NORGAARD 184 Grand Avenue Englewood, NJ 07631 Tel: (201) 871-1333 About Block 106 Development Block 106 Development, LLC, filed for Chapter 11 bankruptcy (Bankr. D. N.J. Case No. 11-27050) on June 1, 2011. Judge Donald H. Steckroth presides over the case. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Michael Sciarra of Ursa Development Group, LLC, co- managing member of the Debtor. Block 106 is affiliated with Tarragon Corporation and various related entities which filed for bankruptcy (Bankr. D. N.J. Lead Case No. 09-10555) Jan. 12, 2009. Based in New York City, Tarragon Corp. (NasdaqGS:TARR) -- http://www.tarragoncorp.com/-- is a developer of multifamily housing for rent and for sale. Tarragon's operations are concentrated in the Northeast, Florida, Texas, and Tennessee. Judge Steckroth presided over the Tarragon case. Michael D. Sirota, Esq., Warren A. Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz, represent the Tarragon Debtors as bankruptcy counsel. Tarragon's Second Amended and Restated Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection in July 2010. BLOCKBUSTER INC: U.S. Trustee's Objections to Fees Overruled ------------------------------------------------------------ Erik Gruenwedel at Home Media Magazine reports that the U.S. Bankruptcy Court Judge Burton Lifland overseeing the Chapter 11 filing of Blockbuster Inc. ruled the movie rental chain can pay its legal fees and related expenses -- despite objections raised by the U.S. Trustee. Judge Lifland ordered Blockbuster Inc. pay 80% of nearly $9 million in legal fees to 12 firms who handled its bankruptcy from Sept. 23, 2010, through Jan. 31, 2011. The judge Lifland also mandated Blockbuster pay more than $220,000 in related in expenses. According to the report, in a June 17 filing, Tracy Hope Davis, the U.S. Trustee for Region 2, filed a motion objecting to the scope of the fees charged by nine firms, including Weil, Gotshal & Manges LLP, Cooley LLP, and PricewaterhouseCoopers LLP, among others. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA, BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. Blockbuster Inc. and 12 U.S. affiliates initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan (Bankr. S.D.N.Y. Case No. 10-14997) on Sept. 23, 2010. It disclosed assets of $1 billion and debts of $1.4 billion at the time of the filing. Blockbuster's non-U.S. operations and its domestic and international franchisees, all of which are legally separate entities, were not included in the filings and are not parties to the Chapter 11 proceedings. Martin A. Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. A steering group of senior secured noteholders is represented by James P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley Austin LLP. U.S. Bank National Association as trustee and collateral agent for the senior secured notes is represented by David McCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter & Hampton LLP. BDO Consulting is the financial advisor for U.S. Bank. Lenders led by Wilmington Trust FSB are providing the DIP financing. The DIP Agent is represented by Peter Neckles, Esq. and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York. The Official Committee of Unsecured Creditors has retained Cooley LLP as its counsel. The Bank of New York Trust Company, N.A., as trustee under that certain indenture, dated as of Aug. 20, 2004, with respect to the 9% Senior Subordinated Notes due 2012 issued by Blockbuster Inc., is represented by Edward P. Zujkowski, Esq., at Emmet, Marvin & Martin, LLP. The Ad Hoc Studio Committee of Blockbuster Inc. et al. is represented by Robert J. Feinstein, Esq., at Pachulski Stang Ziehl & Jones LLP. Blockbuster on Feb. 21, 2011, entered into an Asset Purchase and Sale Agreement providing for the sale of substantially all of their assets or the proceeds of those assets to a newly formed entity named Cobalt Video Holdco LLC. For purposes of entering into the Purchase Agreement, the Purchaser was established by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management, LLC, and Varde Partners, Inc. who collectively hold more than 50% of the Senior Secured Notes and each of which is a member of the Steering Committee. Cobalt Video Holdco LLC, the stalking horse purchaser, was represented by Mark Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP. The auction was held earlier in April and Dish Network Corp. won with an offer having a gross value of $320 million. BOCA BRIDGE: New Lender JMP Boca Says Plan Outline Inadequate ------------------------------------------------------------- Boca Bridge LLC asks the U.S. Bankruptcy Court for the Southern District of Florida, to extend until Sept. 10, 2011, its exclusive period to solicit acceptances for the proposed chapter 11 plan. The Debtor needs more time to negotiate consensual terms of a plan of reorganization with the new lender -- JMP Boca Bridge Lender, LLC. The Debtor's secured lender was NS/CSE Finance LLC. While the Debtor was negotiating consensual terms of a plan with NorthStar, in early January, the Debtor was notified that the new lender purchased the mortgage held by NorthStar. The Debtor has also agreed to stay the Court's determination of conditional approval of the disclosure statement through the various joint stay motions. New Lender Objects to Conditional Approval of Plan Outline JMP as successor in interest to CapitalSource Finance LLC, CSE Mortgage LLC and NS/CS Boca, LLC, filed with the Court numerous deficiencies in the disclosure statement explaining the Debtor's plan of reorganization. JMP said that the disclosure statement in its current form is inadequate and must be substantially modified and supplemented before conditional approval. JMP noted that the disclosure statement, among other things: -- failed to meet the minimum threshold for providing adequate information, there was inadequate description of unclassified claims, JMP secured claim, GFS secured claim, prepetition lender claims; -- failed to provide a statement of sources and uses; and -- there was an inadequate liquidation analysis. In addition, before setting a hearing on confirmation of the Debtor's proposed Plan, JMP requested that a status conference be held to fix a schedule. About Boca Bridge LLC In August 2010, 10 creditors owed $69,400 filed an involuntary Chapter 11 petition (Bankr. S.D. Fla. Case No. 10-34538) against Boca Bridge LLC, the owner of the Boca Raton Bridge Hotel. In November, the bankruptcy judge entered ruling placing the Boca Bridge LLC into Chapter 11. The Debtor disclosed $10,286,336 in assets and $11,850,060 in liabilities as of the Chapter 11 filing. BRIARWOOD CAPITAL: Principal Wants Sale Transaction Denied ---------------------------------------------------------- Nicolas Marsch III, a principal for Briarwood Capital LLC, asks the U.S. Bankruptcy Court for the Southern District of California to conduct an evidentiary hearing to determine whether Leslie T. Gladstone, Chapter 11 trustee, has met her burden of proving that the Court must accept her recommendation to approve the proposed sale and settlement. Mr. Marsch has scheduled a June 30, 2011, evidentiary hearing at 8:30 a.m., before the Hon. Peter W. Bowie. Further, after the hearing, the Court must reject the proposed transaction. If, however, the proposed transaction is approved, at minimum the Court must decline to make any finding that the transaction falls within the Section 363 of the Bankruptcy Code. As reported in the Troubled Company Reporter on May 26, 2011, the Chapter 11 trustee asked that the Court authorize the private asset sale; and compromise of controversy embodied in the settlement agreement dated April 29. The Briarwood trustee proposes to sell any and all interests the Briarwood bankruptcy estate has in HCC Investors, LLC, and Lennar Bridges. Pursuant to the proposed Settlement Agreement, Lennar agreed to purchase the Briarwood bankruptcy estate's interests in HCC and Lennar Bridges for $4 million. The Briarwood Trustee believes that a payment of $4 million for the estate's interests in HCC and Lennar Bridges constitutes fair value for the assets and will allow for a meaningful distribution to creditors. Additionally, the Briarwood trustee relates that the sale will facilitate a global settlement of claims with Lennar and the Briarwood bankruptcy estate's largest creditors and to liquidate any interest the estate has in HCC and Lennar Bridges. The Proposed Settlement Agreement The Settlement Agreement was entered among the Briarwood trustee, Lennar Corporation, Lennar Homes of California, KBR Group, LLC, KRMW REal Estate Investment Group, LLC, and City National Bank, including the Gordon & Holmes Settlement and Release Agreement among the Briarwood trustee, Lennar, KBR, KRMW,CNB, and Gordon & Holmes, Frediric Gordon, and Rhonda Holmes. The material terms of the Settlement Agreement, include: -- Lennar will pay $4 million to the Briarwood Trustee in exchange for any and all interests in HCC held by the Briarwood Estate and any and all interests in Lennar Bridges held by the Briarwood Estate. Within five business days after the Agreement date, Lennar will pay the Briarwood Trustee $500,000, which payment will be nonrefundable. Lennar will pay the Briarwood Trustee the remaining $3,500,000 on the Effective Date. -- The Briarwood Trustee will deliver to Lennar requests or stipulations for dismissals with prejudice of: (i) Briarwood's appeal of the Bridges Action, (ii) the Lakes/McCrink Action, (iii) the HCC action, (iv) the Florida Action Stay Adversary Proceeding, and (v) the HCC Adversary Proceeding. -- The Briarwood trustee will seek to retain Gordon & Holmes as special litigation counsel. This agreement was made on the express condition that Gordon & Holmes will waive any and all claims for fees, costs or expenses for providing services to the Briarwood and Marsch bankruptcy estates under its Contingency Fee Agreement. The Chapter 11 trustee is represented by: Jesse S. Finlayson, Esq. Jared M. Toffer, Esq. FINLAYSON WILLIAMS TOFFER ROOSEVELT & LILLY LLP 15615 Alton Parkway, Suite 250 Irvine, CA 92618 Tel: (949) 759-3810 Fax: (949) 759-3812 E-mail: jfinlayson@fwtrl.com jtoffer@fwtrl.com About Nicolas Marsch, Briarwood and Colony Based in Rancho Santa Fe, California, Briarwood Capital, LLC's primary business prepetition was land acquisition and organizing financing for real estate development. Briarwood filed for Chapter 11 bankruptcy protection on Feb. 23, 2010 (Bankr. S.D. Calif. Case No. 10-02677). In its schedules, the Debtor disclosed $292,798,759 in assets and $18,563,641 in liabilities as of the Petition Date. Colony Properties International, LLC -- Colony I -- (Bankr. S.D. Calif. Case No. 10-02937) and Colony Properties International II, LLC -- Colony II -- (Bankr. S.D. Calif. Case No. 10-03361) also filed for Chapter 11. Rancho Santa Fe, California-based Nicolas Marsch, III, filed for Chapter 11 bankruptcy protection on Feb. 25, 2010 (Bankr. S.D. Calif. Case No. 10-02939). Mr. Marsch estimated assets at $100 million to $500 million and debts at $10 million to $50 million. Mr. Marsch has a 100% membership interest in Briarwood, which he valued at over $274 million. He also has a 100% membership interest in Colony Properties. Mr. Marsch also asserts more than $2 million in claims against Briarwood and is a guarantor of debt owed by Briarwood and by to KBR Opportunity Fund II. He is also the guarantor of Colony's debt to KBR. Colony asserts more than $668,000 in claims against Mr. Marsch. Colony also asserts more than $50,000 in claims against Briarwood. The cases are separately administered. Jeffry A. Davis, Esq., at Mintz Levin Cohn Ferris Glovsky & Popeo, represents the Debtors in their restructuring efforts. In July 2010, the Court held that Mintz Levin was ineligible to represent the estates of Mr. Marsch, Briarwood and Colony Properties, or any two of them. Chapter 11 trustees have been appointed in each of the cases. Richard M. Kipperman serves as the Chapter 11 trustee for Colony Properties International, LLC and Colony Properties International II, LLC; and Leslie T. Gladstone serves as the Chapter 11 trustee for Briarwood. BRONX HEIGHTS: Mismanagement, Unpaid Bills Cue Bankruptcy --------------------------------------------------------- Bronx Heights Neighborhood Community Corp. filed for Chapter 11 bankruptcy on June 25, 2011. Amanda Fung, writing for Crain's New York Business, reports that the bankruptcy was anticipated as the nonprofit has been under fire in recent years for neglecting and mismanaging affordable housing properties in the Morris Heights section of the Bronx. The housing organization owns 10 buildings in Bronx. According to Crain's, the organization's unpaid bills on its portfolio of properties has reached $3.7 million. Crain's reports that Peter Anderson Jr., Esq., the attorney representing Bronx Heights, said previous managers of the organization had mismanaged the nonprofit, but he declined to elaborate. Mr. Anderson said Bronx Heights sought bankruptcy protection "to reorganize and streamline their debt." Crain's recounts that in 2010, one of Bronx Heights's buildings, at 99 Featherbed Lane, was lost to a sheriff's sale, with the city recovering its $414,000 mortgage on the building. The past week three properties were sold in a foreclosure auction conducted by a court-appointed referee. The city was the winning bidder on the three buildings. Bronx Heights accumulated arrears of more than $1 million on those three properties since 2007, according to Housing Preservation and Development. According to the bankruptcy filing, Bronx Heights currently has interest, valued at $12 million, in four properties: 1664 Davidson Ave., 1694 Davidson Ave., 1702 Davidson Ave. and 1484 Inwood Ave. BRONX HEIGHTS: Voluntary Chapter 11 Case Summary ------------------------------------------------ Joint Debtors: Bronx Heights Neighborhood Community Corporation Heights Interneighborhood Council HDFC 1484 Inwood Avenue Bronx, NY 10452 Bankruptcy Case No.: 11-13104 Chapter 11 Petition Date: June 27, 2011 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Debtors' Counsel: Peter F. Anderson, Jr., Esq. LAW OFFICES OF PETER F. ANDERSON, JR. 370 E. 149th Street, Suite C Bronx, NY 10455 Tel: (718) 993-2336 Fax: (718) 993-3407 E-mail: pandersonbronx@aol.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Joint Debtors did not file a list of creditors together with its petition. The petition was signed by Sergio Clark, president. BT MOKLER: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: BT Mokler Properties, LLC 110 Cimarron Ct. Oshkosh, WI 54901 Bankruptcy Case No.: 11-29929 Chapter 11 Petition Date: June 22 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Judge: Pamela Pepper Debtor's Counsel: Leonard G. Leverson, Esq. LEVERSON & METZ S.C. 225 East Mason Street, Suite 100 Milwaukee, WI 53202 Tel: (414) 271-8503 E-mail: lgl@levmetz.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb11-29929.pdf The petition was signed by Christopher J. Mokler, member. CASCADE FINANCIAL: Sale to Opus Bank Expected to Close Today ------------------------------------------------------------ Opus Bank has received the necessary regulatory approvals from the California Department of Financial Institutions and the FDIC for the proposed acquisition of Cascade Financial Corporation and its bank subsidiary, Cascade Bank. Additionally, Opus Bank has received a requested waiver and the non-objection from the Federal Reserve Bank of San Francisco. Cascade shareholders approved the acquisition at a special meeting of shareholders held on May 31, 2011. The acquisition is expected to close on June 30, 2011, after the applicable waiting period has expired. Occurring simultaneously with the completion of the acquisition of Cascade, Cascade Bank will be merged with and into Opus Bank. On March 4, 2011, Cascade Financial announced its entry into a definitive agreement, providing for Opus Bank to acquire the Company and Cascade Bank, and for the merger of the Bank into Opus Bank. Opus Bank is a California-chartered bank with its executive offices located in Irvine, California. According to the terms of the merger agreement, Opus Bank will pay approximately $16.25 million to retire the Company's $39.0 million in preferred stock and associated warrants issued to the United States Department of the Treasury under the Treasury's Capital Purchase Program, and $5.5 million in cash to the holders of the Company's common stock. The purchase price for the Company's common stock represents approximately $0.45 cash per share outstanding. In addition, Opus Bank will assume all of the Company's obligations with respect to the trust preferred securities issued by the Company's trust subsidiaries. About Opus Bank Opus Bank is an FDIC insured California-chartered commercial bank with $708.0 million of total assets, $182.0 million of total loans, $293.8 million in total deposits, and $399.9 million of total equity, as of March 31, 2011. Opus Bank provides high value, relationship-based banking products and exceptional service to its clients comprised of small and mid-sized commercial businesses, entrepreneurs, real estate investors, high-net-worth individuals, professionals, and consumers. About Cascade Bank Established in 1916, Cascade Bank, the only operating subsidiary of Cascade Financial Corporation, is a Washington-chartered commercial bank headquartered in Everett, Washington. Cascade Bank is a highly regarded community bank with $1.5 billion of total assets, $1.1 billion of total deposits, and $1.0 billion of total loans, as of March 31, 2011. About Cascade Financial Everett, Washington-based Cascade Financial Corporation (NASDAQ: CASB) -- http://www.cascadebank.com/-- is a bank holding company incorporated in the state of Washington in 2003. At March 31, 2011, the Company's wholly-owned subsidiaries were Cascade Bank, and Cascade Capital Trusts I, II, and III, formed to hold trust preferred securities. On July 20, 2010, the Board of Directors of Cascade Bank stipulated to the entry of a consent order with the Federal Deposit Insurance Corp. and the Washington State Department of Financial Institutions, effective July 21, 2010. Under the terms of the FDIC Order, the Bank cannot pay any cash dividends or make any payments to its stockholders without the prior written approval of the FDIC and the Washington State DFI. The Company's balance sheet at March 31, 2011, showed $1.457 billion in total assets, $1.402 billion in total liabilities, and stockholders' equity of $54.6 million. Cascade Financial reported a net loss of $70.3 million on $36.4 million of net interest income (before provision for loan losses) for 2010, compared with a net loss of $23.5 million on $43.3 million of net interest income (before provision for loan losses) for 2009. Cascade Financial reported a net loss of $2.6 million on net interest income (before provision for loan losses) of $8.8 million for the three months ended March 31, 2011, compared with a net loss of $32.1 million on net interest income (before provision for loan losses) of $9.7 million for the same period last year. CB HOLDING: Court Approves J.H. Cohn as Tax Accountants ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized CB Holdings Corp. and its debtor-affiliates to employ J.H. Cohn LLP as their tax accountants to prepare federal and state income tax returns for the fiscal years ending September 30, 2010 and 2011, and to advise the Debtors with respect to the tax filings. The Debtors agreed to pay to the firm a fixed fee of $75,000 for the preparation of these federal and state income tax returns for each of 2010 and 2011. The Debtor assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About CB Holding New York-based CB Holding Corp. operated 20 Charlie Brown's Steakhouse, 12 Bugaboo Creek Steak House, and seven The Office Beer Bar and Grill restaurants when it filed for bankruptcy protection. The Company closed 47 locations before filing for Chapter 11. CB Holding sold off its The Office restaurant chain and 12 Bugaboo Creek stores in separate auctions. Villa Enterprises Ltd. won the bidding for The Office chain with its $4.68 million. RRGK LLC acquired the 12 Bugaboo Creek stores for $10.05 million, more than tripling the $3.175 million first bid from an affiliate of Landry's Restaurants Inc. CB Holding and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-13683) on Nov. 17, 2010. Christopher M. Samis, Esq., and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., assist the Debtors in their restructuring effort. The Garden City Group, Inc., is the Debtors' notice, claims and solicitation agent. Jeffrey N. Pomerantz, Esq., Jason S. Pomerantz, Esq., and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Official Committee of Unsecured Creditors. CB Holding estimated its assets at $100 million to $500 million and debts at $50 million to $100 million. CHINA-BIOTICS: To Delist From NASDAQ Due to Officials Resignations ------------------------------------------------------------------ China-Biotics, Inc. intends to voluntarily delist the Company's common stock from the Nasdaq Global Stock Market. The Board of Directors of the Company unanimously determined that maintaining the listing has imposed difficult burdens on the Company. These burdens have been compounded by the recent resignations of the Company's former auditor, BDO Limited, and the Company's Chief Financial Officer, Travis Cai, as reported by the Company in a Current Report on Form 8-K filed with the United States Securities and Exchange Commission on June 23, 2011, and the resignation of Mr. Simon Yick, the former Chairman of the Audit Committee of the Board, as reported by the Company in a Current Report on Form 8-K filed with the SEC on June 28, 2011. On June 29, 2011, the Company provided written notice to Nasdaq of its intent to file a Notification of Removal from Listing on Form 25 with the SEC on or around July 11, 2011. The Company expects the delisting from Nasdaq to become effective on July 21, 2011, ten days after filing Form 25 with the SEC. Upon delisting from Nasdaq, the Company expects that trading by stockholders of shares of the Company's common stock may be effected through quotations on the Pink OTC Market (a centralized quotation service that collects and publishes market maker quotes for securities). This will require at least one market maker to quote the Company's common stock on the Pink OTC Market after the market maker complies with the Pink OTC Market rules; there is no assurance that a market maker will comply with those rules. The Company has not arranged for its shares to be quoted on any securities exchange. Notwithstanding any of the foregoing, the Company will remain subject to the periodic reporting requirements of the Exchange Act. The Company previously reported its receipt from Nasdaq of a letter stating that, because the Company has not yet filed its Annual Report on Form 10-K for the fiscal year ended March 31, 2011, and based upon disclosures made by the Company in its recently filed Form 12b-25 and additional information provided to Nasdaq, the Company no longer complies with Nasdaq Listing Rules for continued listing. In addition, the Nasdaq Letter requested that the Company provide to Nasdaq a formal "plan of compliance" setting forth the steps that the Company proposes to take to regain compliance for continued listing of the Company's common stock on the Nasdaq, as well as certain other information relevant to Nasdaq's evaluation of the plan of compliance. In light of the Company's decision to seek voluntary delisting of its stock from Nasdaq, the Company has determined that it will not provide Nasdaq with such plan of compliance or other requested information. The Board has determined that the effort required to challenge Nasdaq's determination, and the uncertain outcome of any such challenge, as well as the uncertainty of when, if ever, the Company will be able to satisfy Nasdaq's concerns in light of the recent resignation of its auditor, support its decision to seek delisting of its common stock from Nasdaq in the best interests of the Company and its stockholders. The Company will comply with all applicable provisions of Delaware law, under which the Company is incorporated, as well as applicable provisions of the Nasdaq Marketplace Rules and the SEC rules applicable to the delisting process. About China-Biotics China-Biotics, Inc. -- http://www.chn-biotics.com/-- a leading manufacturer of biotechnology products and supplements, engages in the research, development, marketing, and distribution of probiotics dietary supplements in China. Through its wholly owned subsidiary, Shanghai Shining Biotechnology Co., Ltd., the Company develops and produces its proprietary product portfolio, including live microbial nutritional supplements under the "Shining" brand. Currently, the products are sold OTC through large distributors to pharmacies and supermarkets in Shanghai, Jiangsu, and Zhejiang provinces. In February 2010, China-Biotics began its commercial production in China's largest probiotics production facility to meet growing demand in China. CHIQUITA BRANDS: S&P Rates $400-Mil. Credit Facilities at 'BB-' --------------------------------------------------------------- Standard & Poor's Ratings Services is assigning preliminary issue- level and recovery ratings to Cincinnati-based Chiquita Brands International Inc.'s proposed $400 million senior secured credit facilities, consisting of a $150 million revolving credit facility and a $250 million term loan, each due 2016. "We assigned them a preliminary 'BB-' issue-level rating (two notches higher than the corporate credit rating on Chiquita), with a preliminary recovery rating of '1', indicating our expectation for very high (90% to 100%) recovery in the event of a payment default. Chiquita Brands LLC would be the borrower under the proposed credit facilities," S&P said. The company intends to use the proceeds from these new facilities to refinance its existing $310 million senior secured credit facilities at CBLLC and to partially fund a tender offer for $100 million of the outstanding $177 million 8.875% senior notes due 2015 issued by CBII. "As a result of these transactions, which include an increase in senior secured debt at the operating company level, we have lowered the issue-level ratings for the senior unsecured notes at CBII (and Chiquita's senior unsecured shelf registration preliminary rating) to 'B-' from 'B' and revised the associated recovery ratings to '5' from '4'. We took these rating actions because of our reduced recovery expectations for these notes, given the increased amount of priority secured debt following the proposed refinancing. We will withdraw the ratings on the company's existing senior secured credit facilities upon the close of this refinancing transaction. Issue-level ratings are based upon preliminary documentation and are subject to review upon final documentation," S&P related. The 'B' long-term corporate credit rating on Chiquita and the stable outlook remain unchanged. "We characterize Chiquita's business risk profile as vulnerable and its financial risk profile as highly leveraged. Standard & Poor's ratings on the company reflect the company's high debt leverage and participation in the competitive, commodity-oriented, seasonal, and volatile fresh produce industry, which we believe is subject to political and economic risks. Following these proposed transactions, we expect Chiquita's liquidity to remain adequate and its covenant cushion to remain well above 20%," S&P added. Ratings List Chiquita Brands International Inc. Corporate credit rating B/Stable/-- Ratings assigned Chiquita Brands LLC Senior secured $150 mil. revolver due 2016 BB-(Prelim.) Recovery rating 1(Prelim.) $250 mil. term loan due 2016 BB-(Prelim.) Recovery rating 1(Prelim.) Issue-level ratings lowered; Recovery ratings revised To From Chiquita Brands International Inc. Senior unsecured 4.25% notes due 2016 B- B Recovery rating 5 4 8.875% notes due 2015 B- B Recovery rating 5 4 7.5% notes due 2014 B- B Recovery rating 5 4 Shelf registration B-(Prelim) B(Prelim) CLUB VENTURES: Can Access LNB's DIP Facility on Final Basis ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Club Ventures Investments LLC, et al., to obtain, on a final basis, junior secured superpriority postpetition financing from LNB Holding LLC. The Debtors provided a 13-Week cash flow forecast from May 28, 2011, to Aug. 20, 2011, which is available for free at: http://bankrupt.com/misc/CLUBVENTURES_DIP_Budget.pdf As reported in the March 10, 2011 edition of the Troubled Company Reporter on March 10, 2011, David B. Shemano, Esq., at Peitzman, Weg & Kempinsky LLP, explained that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties. The DIP Lender has committed to provide up to $800,000. The DIP Facility will mature five months after the Petition Date. A copy of the DIP financing agreement is available for free at: http://bankrupt.com/misc/CLUB_VENTURES_dipfinancingpact.pdf The DIP facility will incur interest at the Applicable Federal Rate. In the event of default, the Debtors will pay an additional 2.0% default interest per annum. Applicable Federal Rate will mean, with respect to any month, the interest rate in effect for the month which would avoid imputation of interest or other items under Section 7872 of the Internal Revenue Code of 1986, as amended from time to time. The DIP Lender is granted automatically perfected, valid and enforceable junior security interests in and liens on all of the DIP collateral, including all property constituting cash collateral. The DIP Lender is granted allowed superpriority administrative expense claims in the cases for the DIP Facility and all obligations owing thereunder and under the DIP Documents, including all indemnification obligations of the Debtors thereunder. The DIP Superpriority Claim will be subordinate only to the carve-out and the adequate protection claims granted to Bank of America, N.A. The DIP lien is subject to an up to 50,000 carve-out for U.S. Trustee and Clerk of court fees; fees payable to professional employed in the Debtors' case; and fees of the committee in pursuing actions challenging the DIP Lenders' lien. Each of the DIP Lender and the prepetition lenders will have the right to credit bid with respect to any sale of assets or equity. Cash Collateral Use The Debtors are also allowed to use cash collateral of prepetition secured lenders. Currently, the Debtors are indebted to: (a) Bank of America, N.A., in the approximate amount of $11,115,000, which indebtedness is secured by substantially all of the Debtors' assets, (b) Praesidian Capital Investors, LP, Praesidian II SPV 1 LP and Praesidian II SPV 2, LP, in the approximate amount of $30.6 million, which indebtedness is secured by substantially all of the Debtors' assets, and (c) LNB in the approximate amount of $22.4 million, which indebtedness is secured by substantially all of the Debtors' assets. All of the Debtors' existing cash, and all of the Debtors' forecasted cash receipts, are the cash collateral of the Prepetition Secured Creditors and cannot be used without the consent of the Prepetition Secured Creditors or court order. Each of the Prepetition Lenders consents to the Debtors' use of the Prepetition Lenders' cash collateral and the priming of the Prepetition Liens to the extent and solely on the terms and conditions provided for in the interim court order. As adequate protection of the interests of the Prepetition Lenders in the Prepetition Collateral against any diminution in value of the interests, the Prepetition Lenders are granted continuing valid, binding, enforceable, non-avoidable and automatically perfected postpetition security interests in and liens on the DIP collateral. As further adequate protection, the Prepetition Lenders are each granted allowed superpriority administrative expense claim in the bankruptcy cases. As further adequate protection, the Debtors will provide adequate protection to (i) the Prepetition Lenders in the form of ongoing payment of the reasonable legal fees and expenses incurred after the Petition Date, and (ii) BofA in the form of payment of accrued interest at the rate provided for in and pursuant to the terms of the BofA Note and the BofA Loan Agreement. Hearing The Court has set a final hearing for March 24, 2011, at 11:00 a.m. (Eastern Time), on the Debtors' request to obtain DIP financing and use cash collateral. About Club Ventures New York-based Club Ventures Investments LLC, aka DavidBartonGym, is a boutique gym company. Club Ventures owns DavidBartonGym, an operator of upscale health clubs in four cities. Founded in 1992 by David Barton, DavidBartonGym has grown to operate health clubs in New York, Miami, Chicago, and Seattle (Bellevue). Club Ventures filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-10891) on March 2, 2011. It estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. Affiliates Club Ventures II, LLC (Bankr. S.D.N.Y. Case No. 11- 10892), et al., filed separate Chapter 11 petitions. David B. Shemano, Esq., at Peitzman, Weg & Kempinsky LLP, serves as the Debtors' bankruptcy counsel. The Debtors' cases are jointly administered. Club Ventures Investments LLC is the lead case. CLUB VENTURES: Plan Filing Exclusivity Extended Until Sept. 28 -------------------------------------------------------------- The Hon. Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York extended the exclusive periods of Club Ventures LLC to file a plan of reorganization to Sept. 28, 2011, and solicit acceptances of that plan to Nov. 28, 2011. According to the Troubled Company Reporter on June 3, 2011, the Debtors are workings with the Creditors' Committee and their financial advisors to achieve agreement on a consensual treatment of general unsecured creditors. The Creditors' Committee is currently performing due diligence to confirm the Debtors' financial condition. Until the Creditors' Committee completes its reasonable due diligence and meaningful negotiations occur, the Debtors believe it would be premature to file a plan. The Debtors are optimistic that such negotiations will occur within the next several weeks. About Club Ventures New York-based Club Ventures Investments LLC, aka DavidBartonGym, is a boutique gym company. Club Ventures owns DavidBartonGym, an operator of upscale health clubs in four cities. Founded in 1992 by David Barton, DavidBartonGym has grown to operate health clubs in New York, Miami, Chicago, and Seattle (Bellevue). Club Ventures and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-10891) on March 2, 2011. Club Ventures disclosed $327,921 and $71,037,100 in liabilities as of the Chapter 11 filing. David B. Shemano, Esq., at Peitzman, Weg & Kempinsky LLP, in Los Angeles, serves as the Debtors' bankruptcy counsel. The Official Committee of Unsecured Creditors retained Klestadt & Winters LLP as its counsel. CLUB VENTURES: Court Approves FTI as Panel's Financial Advisor -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Club Ventures Investments LLC, et al., to retain FTI Consulting, Inc., as its financial advisor nunc pro tunc to March 30, 2011. According to the Troubled Company Reporter on May 16, 2011, FTI will receive (a) a monthly fixed fee; and (b) reimbursement of FTI's expenses. To the best of the Committee's knowledge, FTI is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Club Ventures New York-based Club Ventures Investments LLC, aka DavidBartonGym, is a boutique gym company. Club Ventures owns DavidBartonGym, an operator of upscale health clubs in four cities. Founded in 1992 by David Barton, DavidBartonGym has grown to operate health clubs in New York, Miami, Chicago, and Seattle (Bellevue). Club Ventures and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-10891) on March 2, 2011. Club Ventures disclosed $327,921 and $71,037,100 in liabilities as of the Chapter 11 filing. David B. Shemano, Esq., at Peitzman, Weg & Kempinsky LLP, in Los Angeles, serves as the Debtors' bankruptcy counsel. The Official Committee of Unsecured Creditors proposes retained Klestadt & Winters LLP as its counsel. COLONNADE PROPERTY: Organizational Meeting to Form Panel on July 1 ------------------------------------------------------------------ Roberta DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on July 1, 2011, at 10:00 a.m. in the bankruptcy case of Colonnade Property, LLC. The meeting will be held at: Office of the United States Trustee 833 Chestnut Street, Suite 501 Philadelphia, PA 19107 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. COMMERCIAL CAPITAL: Wants to Hire Sender as Special Counsel ----------------------------------------------------------- James T. Markus, the duly appointed Chapter 11 trustee in the Chapter 11 cases of Commercial Capital, Inc., asks the U.S. Bankruptcy Court for the District of Colorado for permission to retain Sender & Wasserman, P.C. as special Counsel to represent the Trustee and estate in connection with an adversary proceeding. In order to avoid even an appearance of impropriety or a potential conflict, the Trustee's counsel, Markus Williams Young & Zimmerman, LLC, does not seek to represent the Trustee in connection with an adversary proceeding (Markus v. Wells Fargo Home Mortgage, Inc., Adv. Pro. No. 11-1250 MER). The firm will charge the Debtor's estates in accordance with its the customary rates of its attorneys and staff: Harvey Sender $425 per hour John B. Wasserman $425 per hour David V. Wadsworth $300 per hour Mark A. Larson $240 per hour David J. Warner $210 per hour Matthew T. Faga $185 per hour Paralegals $115 per hour The Trustee also seeks authorization to provide Sender & Wasserman a retainer in the amount of $10,000. John B. Wasserman, Esq., assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Wasserman can be reached at: David W. Wadsworth, Esq. SENDER & WASSERMAN, P.C. 1660 Lincoln Street, Suite 2200 Denver, CO 80264 Tel: (303) 296-1999 Fax: (303) 296-7600 About Commercial Capital Greenwood Village, Colorado-based Commercial Capital, Inc. -- http://www.commercialcapitalinc.com/-- and its affiliate, CCI Funding I, LLC, are commercial real estate lenders and investment partners engaging in short-term commercial mortgage. Commercial Capital and CCI Funding filed separate petitions for Chapter 11 protection on April 22, 2009, and April 24, 2009, respectively (Bankr. D. Colo. Lead Case No. 09-17238). Robert Padjen, Esq., at Laufer and Padjen LLC, assists Commercial Capital in its restructuring efforts. In its bankruptcy petition, Commercial Capital estimated between $100 million and $500 million in assets, and between $50 million and $100 million in debts. CCI Funding estimated between $100 million and $500 million each in assets and debts. COMMERCIAL CAPITAL: Judge Approves Insurance Settlement Agreement ----------------------------------------------------------------- Judge Michael E. Romero has approved the release and settlement agreement among Commercial Capital, Inc., and CCI Funding I, LLC, Trimont Real Estate Advisors, Inc., and Great American Assurance Company. The settlement agreement relates to water damage to collateral at 301 Harrison Street in Denver, Colo., which is comprised of a six-unit condominium project located in Denver's Cherry Creek neighborhood. Prior to the filing of their respective bankruptcy petitions, Commercial Capital, Inc. (CCI), and CCI Funding I, LLC, were engaged in the commercial real estate lending business. CCI made numerous commercial real estate mortgage loans, which were secured by deeds of trust or mortgages encumbering various parcels of real property. CCI Funding claims that the Mortgage Loans were sold by CCI to CCI Funding, which paid for them with funds borrowed from WestLB AG, New York Branch. WestLB claims a security interest in the Mortgage Loans. The Chapter 11 Trustee of CCI has filed claims seeking to avoid the alleged transfer of the Mortgage Loans to CCI Funding and West LB alleged security interest. On December 15, 2009, an automatic fire protection sprinkler pipe in Unit 106 burst, resulting in significant water damage to all six units of the Harrison Street Properties. All six units of the Harrison Street Properties were under the care of TriMont Real Estate Advisors, Inc., which maintained a policy of insurance with Great American Assurance Company. Great American has declined coverage under the Harrison Place Policy and has commenced litigation, Great American Assurance Company v. TriMont Real Estate Advisors, Inc., Civil Action No. 1:10-cv-02445-CMA, in the U.S. District Court for the District of Colorado, seeking a declaration of non-liability on the Harrison Place Policy. Under the settlement agreement, Great American will pay TriMont $300,000. TriMont will pay its attorneys and then turnover the balance of the fund to the CCI Funding Trustee to be held in trust for the benefit of the CCI Funding bankruptcy estate and/or the CCI bankruptcy estate, pending the resolution of the Ownership Proceeding. The Insurance Agreement provides monies to restore a damaged property in which CCI currently claims an interest, without the necessity of further ongoing litigation and its related fees and costs. In addition, the Insurance Agreement will have no effect upon the Dispute between the Estates or the outcome of the Ownership Proceeding. About Commercial Capital Greenwood Village, Colorado-based Commercial Capital, Inc. -- http://www.commercialcapitalinc.com/-- and its affiliate, CCI Funding I, LLC, are commercial real estate lenders and investment partners engaging in short-term commercial mortgage. Commercial Capital and CCI Funding filed separate petitions for Chapter 11 protection on April 22, 2009, and April 24, 2009, respectively (Bankr. D. Colo. Lead Case No. 09-17238). Robert Padjen, Esq., at Laufer and Padjen LLC, assists Commercial Capital in its restructuring efforts. In its bankruptcy petition, Commercial Capital estimated between $100 million and $500 million in assets, and between $50 million and $100 million in debts. CCI Funding estimated between $100 million and $500 million each in assets and debts. COMMERCIAL CAPITAL: Contractors Seeks to Foreclose Property ----------------------------------------------------------- Lightning Ventures, Inc., and Yenter Companies, Inc., as well as Slaton Brothers, Inc., Brannon Sand and Gravel Company, LLC, Dana Kepner Company, Inc., and R. Nichols Excavating, Inc., seek further orders of the Bankruptcy Court of the District of Colorado to permit the Jefferson County District Court to issue its orders permitting the mechanic's lien claimants to foreclose on the real property and sell the real property to satisfy the mechanic's lien claimants. The Bankruptcy Court previously permitted the parties to proceed with the foreclosure action in the Jefferson County District Court on their mechanic's liens, but further ordered that any judgment pertaining to property of the estate may not be enforced without further orders of the Court. The District Court initially made a determination and finding that the mechanic's liens of the subcontractors with valid mechanic's liens on the Property had priority under Colorado law, and set the claim amount with respect to each of the mechanic's lien claimants: Slaton Brothers $379,114 Lightning Ventures 188,672 Brannon 55,732 Yenter 122,842 R. Nichols 111,214 ---------- Total $1,505,035 John S. Finn, at Stettner Miller, P.C., representing the contractors, states that all of the subcontractors involved in this matter completed their work on the Project during 2009 and were required to pay for all costs, employee expenses, materials, fuel and related expenses at that time. Mr. Finn notes that the remedy that is provided under Colorado law to contractors that have not been paid for services is to proceed with a lien foreclosure sale whereby the sheriff sells the property in order for the mechanic's lien claimants to realize from the proceeds of the sale monies to compensate them for their mechanic's lien claims. In the alternative, the mechanic's lien claimants can bid their lien amounts at the sale and take title to the property subject to the owner's rights of redemption and the rights of all deed of trust holders to redeem. About Commercial Capital Greenwood Village, Colorado-based Commercial Capital, Inc. -- http://www.commercialcapitalinc.com/-- and its affiliate, CCI Funding I, LLC, are commercial real estate lenders and investment partners engaging in short-term commercial mortgage. Commercial Capital and CCI Funding filed separate petitions for Chapter 11 protection on April 22, 2009, and April 24, 2009, respectively (Bankr. D. Colo. Lead Case No. 09-17238). Robert Padjen, Esq., at Laufer and Padjen LLC, assists Commercial Capital in its restructuring efforts. In its bankruptcy petition, Commercial Capital estimated between $100 million and $500 million in assets, and between $50 million and $100 million in debts. CCI Funding estimated between $100 million and $500 million each in assets and debts. COYOTES HOCKEY: Hulzizer Axes Offer to Acquire Coyotes ------------------------------------------------------ Sports Network reports that Matthew Hulsizer, once a leading candidate to buy the financially-strapped Phoenix Coyotes, pulled out of his purchase bid on Monday. According to the Phoenix Business Journal, the Chicago investment executive is still interested in buying an NHL franchise, but not the Coyotes. Chicago Bulls and White Sox owner Jerry Reinsdorf and another unnamed group, along with Hulsizer, a co-founder of PEAK6 Investments, were talking to the city of Glendale about purchasing the team, according to the Phoenix Business Journal. The report says the team, which is currently owned by the NHL, has been in turmoil ever since former owner Jerry Moyes filed for Chapter 11 bankruptcy in 2009. Several bids for the team have fallen through, including some potential buyers that had hoped to move the team. About Coyotes Hockey Dewey Ranch Hockey LLC, Arena Management Group, LLC, Coyotes Holdings, LLC, and Coyotes Hockey, LLC -- owners and affiliates of the Phoenix Coyotes National Hockey League team -- filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 09-09488) on May 5, 2009. The Debtors are represented by Thomas J. Salerno, Esq., at Squire, Sanders & Dempsey, LLP, in Phoenix, and estimate their assets and liabilities are between $100 million and $500 million. In the third quarter of 2009, Judge Redfield T. Baum approved the sale of the Phoenix Coyotes to the National Hockey League, which had bought the team to quash a plan by bidder Jim Balsillie's to move the team to Ontario, Canada. Coyotes was sent to Chapter 11 to effectuate a sale by owner Jerry Moyes to Mr. Balsillie. CROSSOVER FINANCIAL: Sec. 341 Creditors' Meeting Set for July 19 ---------------------------------------------------------------- The United States Trustee for Region 19 will convene a Meeting of Creditors pursuant to Sec. 341(a) of the Bankruptcy Code in the Chapter 11 case of Crossover Financial I, LLC, on July 19, 2011, at 10:00 a.m. at US Trustee Room C. Set per Directive from the US Trustee's office. According to the case docket, the Debtor's Chapter 11 Plan and Disclosure Statement are due by Oct. 13, 2011. Crossover Financial I, LLC, based in Elizabeth, Colorado, filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-24257) on June 15, 2011. Judge Sidney B. Brooks presides over the case. Stephen C. Nicholls, Esq., at Nicholls & Associates, P.C., serves as bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Mitchell B. Yellen. CRYOPORT INC: Incurs $6.15 Million Net Loss in Fiscal 2011 ---------------------------------------------------------- Cryoport, Inc., filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $6.15 million on $475,504 of revenue for the year ended March 31, 2011, compared with a net loss of $5.65 million on $117,956 of revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $11.03 million in total assets, $5.08 million in total liabilities and $5.94 million in total stockholders' equity. KMJ Corbin & Company LLP expressed substantial doubt about CryoPort's ability to continue as a going concern, following the Company's results for fiscal year ended March 31, 2010. The firm noted that the Company has incurred recurring losses and negative cash flows from operations since inception. The Company reported a net loss of $5.6 million on $117,956 of revenues for the fiscal year ended March 31, 2010, compared with a net loss of $16.7 million on $35,124 of revenues for the year ended March 31, 2009. KMJ Corbin & Company did not include a going concern qualification in its report on the Company's fiscal 2011 results. A full-text copy of the Form 10-K is available for free at: http://is.gd/rk48k7 About CryoPort Inc. Headquartered in Lake Forest, Calif., CryoPort, Inc. (OTC BB: CYRXD) -- http://www.cryoport.com/-- provides innovative cold chain frozen shipping system dedicated to providing superior, affordable cryogenic shipping solutions that ensure the safety, status and temperature of high value, temperature sensitive materials. The Company has developed a line of cost-effective reusable cryogenic transport containers capable of transporting biological, environmental and other temperature sensitive materials at temperatures below 0-degree Celsius. CRYSTAL CATHEDRAL: Creditors Committee Down to 5 Members -------------------------------------------------------- The U.S. Trustee for Region 16 filed a notice amending the list of unsecured creditors on the Official Committee of Unsecured Creditors of Crystal Cathedral Ministries. The Committee now comprises: 1. Advantage Mailing Inc. Brett Noss, Chief Financial Officer 1600 N. Kraemer Blvd. Anaheim, CA 92806 Tel: (714) 538-3881 Fax: (714) 282-3903 2. Media Services Agency John S. Casoria 2442 Michelle Dr. Tustin, CA 92780 Tel: (714) 665-2102 Fax: (714) 665-2868 3. World Marketing - Los Angeles Richard Pane 10918 Emiline Street Omaha, NE 68128 Tel: (402) 408-1419 Fax: (402) 408-1421 4. Promotional Media, Inc. Denise Bodourian, VP Sales 727 N. Main Street Orange, CA 92868 Tel: (714) 639-6390 Fax: (714) 639-6270 5. Kristina Oliver, c/o Dorie Oliver 33677 Mojonnier Way Wildomar, CA 92695 Tel: (951) 741-1922 Fax: (951) 674-6116 A-1 Building Maintenance, Inc. and FGS - CA were in the original list of members. About Crystal Cathedral Crystal Cathedral Ministries is a Southern California-based megachurch founded by television evangelist Robert Schuller. The church is known for its television show "The Hour of Power." Crystal Cathedral filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. 10-24771) on Oct. 18, 2010. The Debtor disclosed $72,872,165 in assets and $48,460,826 in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 16 appointed seven members to the official committee of unsecured creditors in the Chapter 11 case of Crystal Cathedral Ministries. CRYSTAL CATHEDRAL: Panel Objects to More Work for Lutzker --------------------------------------------------------- The Official Committee of Creditors Holding Unsecured Claims of Crystal Cathedral Ministries objects to the Debtor's application to amend the terms of employment and compensation of Lutzker & Lutzker LLP. The Committee submits that the Debtor has failed to demonstrate the need for expanded services by Lutzker & Lutzker LLP. Crystal Cathedral and the Firm should, provide sufficient information to allow the Court, the Committee and all interested parties to understand the claims or issues that Debtor believes require the assistance of counsel and how those issues impact the debtor's reorganization efforts. Todd C. Ringstad, Esq., at Ringstad & Sanders, LLP, counsel for the committee, notes that financial information presently before the Court reflects that the Debtor has incurred substantial operating losses post-petition. The incurring of additional professional fees, unless absolutely necessary to the reorganization effort will only exacerbate this already tenuous situation. About Crystal Cathedral Crystal Cathedral Ministries is a Southern California-based megachurch founded by television evangelist Robert Schuller. The church, known for its television show "The Hour of Power." Crystal Cathedral filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. 10-24771) on Oct. 18, 2010. The Debtor disclosed $72,872,165 in assets and $48,460,826 in liabilities as of the Chapter 11 filing. Marc J. Winthrop, Esq., at Winthrop Couchot P.C. represent the Debtor. The U.S. Trustee for Region 16 appointed seven members to the official committee of unsecured creditors in the Chapter 11 case of Crystal Cathedral Ministries. Todd C. Ringstad, Esq., at Ringstad & Sanders, LLP, represent the Committee. CRYSTALLEX INT'L: Fails to Comply with NYSE's Listing Standards --------------------------------------------------------------- Crystallex International Corporation reported as required pursuant to Section 402 of the NYSE Amex Company Guide and as requested by NYSE Regulation, that it has been advised it has fallen below compliance with the minimum continued listing standards in Section 1003(a)(i), (ii) and (iii) of the NYSE Amex Company Guide. In a letter dated June 22, 2011, the Company was informed by NYSE Regulation that, as of June 15, 2011, the Company's market capitalization was below the minimum required $50 million for thirty consecutive trading days. On June 6, 2011, the Company reported that trading of the Company's common stock was suspended on the NYSE Amex exchange subject to the Company's appeal to remain listed on that Exchange. Subsequent to the NYSE Amex suspension, on June 7, 2011, the shares began trading in the US on the OTCQB Marketplace under the symbol CRYXF. The Company shares continue to trade on both the Toronto Stock Exchange and the OTCQB. The Company also reports that the resolution authorizing the Company to consolidate its common shares did not gain shareholder approval at the Company's annual and special meeting held on June 22, 2011. The resolution required approval of at least two- thirds of the votes cast. Approximately 64% of the votes cast were in favour of the resolution. Shareholders were asked to approve the share consolidation resolution as a consolidation may be necessary for the Company to maintain the listing of its common shares on the NYSE Amex. The Company also announced that Mr. Bill Faust, Crystallex's Chief Operating Officer, will be leaving the Company effective June 30, 2011. The Company held its Annual Meeting on June 22, 2011. PricewaterhouseCoopers LLP were appointed as auditors of the Corporation for the ensuing year and the directors of the Corporation were authorized to fix the remuneration of the auditors. Five directors were elected to hold office for the ensuing year or until their successors are elected or appointed: (1) Robert A. Fung (2) Michael J.H. Brown (3) Harry J. Near (4) Marc J. Oppenheimer (5) Johan C. van't Hof The resolution relating to the approval of the Corporation's New Incentive Share Option Plan to increase the maximum number of common shares issued and issuable thereunder by 3,000,000 common shares as set out in the Corporation's management information circular dated May 11, 2011, was ratified by shareholders at the Meeting. The special resolution to authorize an amendment to the articles of the Corporation to consolidate the issued and outstanding common shares of the Corporation, on the basis of a consolidation ratio of not more than one post-consolidation share for every ten pre-consolidation shares as set out in the Circular was defeated by shareholders at the Meeting. The resolution relating to the approval of the sale of mining equipment of the Corporation as set out in the Circular was ratified by shareholders at the Meeting. About Crystallex International Based in Toronto, Canada, Crystallex International Corporation (TSX: KRY) (NYSE Amex: KRY) -- http://www.crystallex.com/-- is a Canadian-based company, which has been granted the Mine Operating Contract to develop and operate the Las Cristinas gold properties located in Bolivar State, Venezuela. "As at Sept. 30, 2010, the Company had working capital of US$12.50 million, including cash of $21.47 million. Management estimates that these funds will be sufficient to meet the Company's obligations and budgeted expenditures for the foreseeable future, but will not be sufficient to repay the US$100.00 million notes payable due on December 23, 2011." The Company's balance sheet at March 31, 2011, showed US$38.41 million in total assets, US$114.80 million in total liabilities and a US$76.39 million total deficit. D-SIGNS INC: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: D-Signs, Inc. 2602 National Place Garland, TX 75041 Bankruptcy Case No.: 11-34092 Chapter 11 Petition Date: June 26, 2011 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser Debtor's Counsel: Howard Marc Spector, Esq. SPECTOR & JOHNSON, PLLC 12770 Coit Road Banner Place, Suite 1100 Dallas, TX 75251 Tel: (214) 365-5377 Fax: (214) 237-3380 E-mail: hspector@spectorjohnson.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Christopher Jason Horton, president. DALLAS STARS: Said to Be Preparing Bankruptcy to Push Sale ---------------------------------------------------------- Rivals drop out, clear Rudin deal for St. Vinny Appeal in St. Vincent's bankruptcy dropped; NFL fans won't be seeing the league's logo on that medical campus. Barbara Benson, writing for Crain's New York Business, reports that the group consisting of former City Councilmember Alan Gerson, Dudley Gaffin, and Dr. Robert Adelman, which opposed the sale of St. Vincent's Hospital campus to the Rudin family, has voluntarily dismissed its appeal last week. Although the group made an emotional plea to keep a hospital open at the St. Vincent's site, no rival bid ever emerged to unseat the $260 million deal with the Rudins. The group had asked the court to delay the proposed sale, filing an appeal on April 18. The group objected to the sale, saying it was talking to an unnamed New York City-based real estate developer and an unnamed New York City medical center and medical school that could buy the campus for the same price as the Rudins. Crain's notes the group said its intent was to build and operate a hospital and develop the remainder of the property. By appealing the sale order, the group wanted to buy time while it solicited "offers from major real estate investors and hospital operators that will better serve the communities" and generates more money for creditors, according to court papers. Crain's says the group cited only one possible collaborator: the National Football League Alumni Association, which it said indicated "that they may like to be involved in establishing a hospital to treat their members [as well as the general public]. They would bring the NFL logo to any such development." Crain's says the group withdrew the appeal last week without explanation. According to Crain's, Mark Toney, St. Vincent's chief restructuring officer and a partner at Grant Thornton, said, "We believe it's probably the best situation, and allows the transaction to go forward." Crain's also reports that lawyers for St. Vincent's are in court on Thursday to address several other matters, including the eviction of some doctors who refuse to vacate the hospital's property. The holdouts were served with eviction notices when the medical system reached an agreement to sell its campus to the Rudins. About Saint Vincents Saint Vincents Catholic Medical Centers of New York, doing business as St. Vincent Catholic Medical Centers -- http://www.svcmc.org/-- was anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Saint Vincent Catholic Medical Centers of New York and six of its affiliates first filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14945 through 05-14951). St. Vincents Catholic Medical Centers returned to bankruptcy court by filing another Chapter 11 petition (Bankr. S.D.N.Y. Case No. 10-11963) on April 14, 2010. The Debtor estimated assets of $348 million against debts totaling $1.09 billion in the new petition. Although the hospitals emerged from the prior reorganization in July 2007 with a Chapter 11 plan said to have "a realistic chance" of paying all creditors in full, the bankruptcy left the medical center with more than $1 billion in debt. The new filing occurred after a $64 million operating loss in 2009 and the last potential buyer terminated discussions for taking over the flagship hospital. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter 11 effort. DAIRY PRODUCTION: Has Until Aug. 8 to Propose Chapter 11 Plan ------------------------------------------------------------- The Hon. James D. Walker, Jr., of the U.S. Bankruptcy Court for the Middle District of Georgia, extended Dairy Production Systems - Georgia, LLC, and its debtor affiliates' exclusive periods to file and solicit acceptances for the proposed Chapter 11 plan and solicit acceptances until Aug. 8, 2011, and Oct. 3, respectively. As reported in the Troubled Company Reporter on May 13, the Debtors requested for exclusive periods to file a plan until Sept. 5, and solicit acceptances of that plan until Nov. 4. The Debtors related that they needed more and sufficient time to allow Morgan Joseph TriArtisan LLC, as financial advisor and investment banker of the Debtors, to identify and contact prospective investors and lenders. Further, the Debtors require additional time to allow the firm to solicit indication of interest in a transaction among prospective investors and lenders. About Dairy Production Baconton, Georgia-based Dairy Production Systems - Georgia LLC, dba Dairy Production Systems, was formed in November of 2008 and owns the operating assets acquired from Aurora Dairy - Georgia, LLC, exclusive of the real property owned by Aurora-Georgia. DPS Georgia owns approximately 3,490 head of cattle, along with equipment and dairy improvements located on a 1,065-acre farm leased from Aurora-Georgia. DPS Georgia filed for Chapter 11 bankruptcy protection (Bankr. M.D. Ga. Case No. 10-11752) on Oct. 7, 2010. Neil C. Gordon, Esq., Sean C. Kulka, Esq., and Zachary D. Wilson, Esq., at Arnall Golden Gregory LLP, in Atlanta, Ga., serve as the Debtor's bankruptcy counsel. Morgan Joseph TriArtisan LLC serves as their financial advisor and investment banker. DPS Georgia disclosed assets of $6,178,324 and debts of $19,182,907 as of the Petition Date. Affiliates Dairy Production Systems - Mississippi, LLC (Bankr. M.D. Ga. Case No. 10-11755), Dairy Production Systems, LLC (Bankr. M.D. Ga. Case No. 10-11754), Heifer Haven, LLC (Bankr. M.D. Ga. Case No. 10-11757), and New Frontier Dairy, LLC (Bankr. M.D. Ga. Case No. 10-11756), filed separate Chapter 11 petitions. Dairy Production Systems, LLC, estimated its assets and debts at $10 million to $50 million at the Petition Date. The cases are jointly administered, with Dairy Production Systems - Georgia as lead case. Ward Stone, Jr., and David L. Bury, Jr., at Stone & Baxter, LLP, in Macon, Ga., serve as the official committee of unsecured creditors' bankruptcy counsel. DEB SHOPS: Hires Kurtzman Carson as Claims & Noticing Agent ----------------------------------------------------------- DSI Holdings, Inc. and its debtor-affiliates seek bankruptcy court permission to employ Kurtzman Carson Consultants LLC as their claims and noticing agent. The Debtors estimate that they have thousands of creditors; accordingly, a claims and noticing agent is required to assist the clerk of court. Prior to the Petition Date, the Debtors paid KCC a $50,000 retainer. Albert H. Kass, vice president of corporate restructuring at KCC, attests that his firm is a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code, as modified by Sec. 1107(b). KCC may be reached at: Drake D. Foster, Esq. KURTZMAN CARSON CONSULTANTS LLC 2335 Alaska Ave. El Segundo, CA 90245 Tel: 310-823-9000 Fax: 310-823-9133 E-mail: dfoster@kccllc.com About Deb Shops Deb Shops Inc., is a closely held women's-clothing retailer based in Philadelphia. Deb Shops sells junior and large-size clothing for girls and women ages 13 to 25 through more than 320 U.S. stores and through debshops.com. It was bought out by the New York investment firm Lee Equity Partners in October 2007. DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363. As of April 30, 2011, the Debtors' unaudited financial statements reflected assets totaling $124.4 million and liabilities totaling $270.1 million. Lawyers at Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Rothschild Inc. serves as the Debtors' investment banker and financial advisors. Kurtzman Carson Consultants, LLC, serves as claims agent. Sitrick & Company serves as public relations consultants. The DIP Agent is represented by lawyers at Klee Tuchin Bogdanoff & Stern LLP. Conway Del Genio serves as financial advisors to the First Lien Lenders. Schulte Roth serves as corporate and tax advisors to the First Lien Lenders. Lender Lee DSI Holdings is represented by Fried Frank Harris Shriver & Jacobson LLP. DEB SHOPS: Wins Interim OK for Ableco DIP Financing --------------------------------------------------- Deb Shops Inc. won interim Court authority to obtain postpetition loan of up to $15 million, on an interim basis from Ableco, LLC, which serves as administrative agent and collateral agent. The DIP lenders have committed to provide up to $21.7 million in postpetition financing. The DIP Lenders and their loan commitments are: Revolving Credit Revolving Commitment Percentage Credit (Upon Final of Total Commitment Facility Revolving (Upon Interim Effective Credit Lender Effective Date) Date) Commitment ------ --------------- ----------- ---------- Ableco LLC $11,316,301.58 $16,370,916.29 75.4420% Orpheus $2,867,371.13 $4,148,130.24 19.1158% Holdings LLC Credit Suisse $816,327.28 $1,180,953.47 5.4422% Loan Funding --------------- ----------- ---------- Total $15,000,000.00 $21,700,000.00 100.0000% The Court will hold a final hearing to consider the DIP Facility on July 21. Dep Shops is seeking to sell its assets pursuant to a deal also with Ableco, this time as agent for the prepetition first lien lenders. Consideration to be provided by the First Lien Lenders consists of: -- payment in cash of no less than $77 million plus the Debtors' outstanding obligations under the DIP Facility plus the wind-down costs of the Debtors, plus expense reimbursement; -- replacement of outstanding letters of credit posted by the Lee entities; -- assumption of certain company liabilities. Ableco has committed to credit bid $75 million of the first-lien debt. The DIP Facility requires the Debtors to obtain Court approval of bid procedures by July 25, 2011, commence the auction by Aug. 31, obtain approval of the sale to the highest bidder by Oct. 4, 2011, and close the deal 21 days after entry of the sale order. Competing bids are due Aug. 24. If the Debtors struck a deal with a rival buyer, they will reimburse Ableco's expenses up to $500,000. The DIP Facility charges interest at LIBOR Rate plus 9.00% per annum or Reference Rate plus 8.50% per annum. The DIP Facility matures on the earlier of six months from the date of the credit agreement; the effective date of a plan of reorganization in the Debtors' case; or the date of sale or liquidation of substantially all of the equity interests or assets of the Debtors. DSI Holdings Inc. and its other debtor-affiliates act as guarantor under the DIP credit agreement. The Debtors are also seeking to use cash collateral securing their obligations to their prepetition lenders. The Debtors' first lien lenders and the so-called Lee Parties have consented to the Debtors' use of cash collateral, entry into the DIP Facility, and the proposed adequate protection. The second lien lenders have waived their right to object to the DIP Facility or the proposed adequate protection. Among other things, the Debtors propose to grant the DIP Agent and the DIP Lenders liens on and security interests in avoidance actions under Chapter 5 of the Bankruptcy Code. The Debtors owe the first lien lenders $129.9 million under a 2007 First Lien Credit Agreement. The term loan portion of the facility matures April 23, 2014, and the revolver portion matures Oct. 23, 2013. Ableco serves as successor first lien administrative agent. Deb Shops is also a borrower under a 2009 Sponsor Loan Agreement with Lee DSI Holdings LLC as lender. Deb Shops owes $4.8 million under this facility as of the bankruptcy filing date. Deb Shops is also a borrower under a 2009 Credit Support Agreement with Lee DSI Holdings as lender. Under this agreement, Lee DSI would cause Citibank N.A., to issue for the benefit of Ableco, as first lien administrative agent, two standby letters of credit for $3 million -- Revolving Loan LC -- and $12 million -- Term Loan LC -- each with a final expiry date of July 23, 2014. On June 15, 2011, the First Lien Lenders assigned $15 million of First Lien Obligations to Lee DSI. As of the bankruptcy petition date, roughly $19.8 million is owed under the agreements with Lee DSI. Another $5.2 million in accrued fees and interest is owed in connection with the agreements with Lee DSI. Dep Shops is also a borrower under a 2007 Second Lien Credit Agreement with Barclays Capital, as sole lead arranger and bookrunner, Crystal Capital Fund Management L.P., as syndication agent, and Barclays Bank PLC as documentation agent and second lien administrative agent. As of the petition date, $58.6 million was outstanding under the Second Lien Facility, including payment- in-kind interest. The Debtors have prepared a 13-week DIP budget from the week ending July 2 to Sept. 24. During the period, the Debtors expect total receipts to be roughly $76.4 million and total disbursements to be $83.3 million. The DIP Agent may be reached at: Joe Naccarato ABLECO LLC 299 Park Avenue, 22nd Floor New York, NY 10171 Tel: 212-891-2100 Fax: 212-891-1541 E-mail: jnaccarato@ablecofinance.com About Deb Shops Deb Shops Inc., is a closely held women's-clothing retailer based in Philadelphia. Deb Shops sells junior and large-size clothing for girls and women ages 13 to 25 through more than 320 U.S. stores and through debshops.com. It was bought out by the New York investment firm Lee Equity Partners in October 2007. DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363. As of April 30, 2011, the Debtors' unaudited financial statements reflected assets totaling $124.4 million and liabilities totaling $270.1 million. Lawyers at Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Rothschild Inc. serves as the Debtors' investment banker and financial advisors. Kurtzman Carson Consultants, LLC, serves as claims agent. Sitrick & Company serves as public relations consultants. The DIP Agent is represented by: Michael L. Tuchin, Esq. David A. Fidler, Esq. KLEE TUCHIN BOGDANOFF & STERN LLP 1999 Avenue of the Stars, 39th Floor Los Angeles, CA 90067 Tel: 310-407-4000 E-mail: mtuchin@ktbslaw.com dfidler@ktbslaw.com Conway Del Genio serves as financial advisors to the First Lien Lenders. Schulte Roth serves as corporate and tax advisors to the First Lien Lenders. Lender Lee DSI Holdings is represented by: Jennifer Rodburg, Esq. FRIED FRANK HARRIS SHRIVER & JACOBSON LLP One New York Plaza New York, NY 10004 Fax: 212-859-4000 E-mail: jennifer.rodburg@friedfrank.com DENNEY FARMS: Chapter 11 Reorganization Case Dismissed ------------------------------------------------------ The Hon. Arthur S. Weissbrodt of the the U.S. Bankruptcy Court for the Northern District of California dismissed the Chapter 11 case of Denney Farms. As reported in the Troubled Company Reporter on May 23, 2011, the Debtor related that pursuant to the order of the Bankruptcy Court, secured creditor, Farm Credit West, PCA, and Farm Credit West, FLCA, obtained relief from the automatic stay regarding the Debtor's real property consisting of a residential home, vineyards and open farm lands located 72120 Jolon Road, Bradley, Monterey County, California. Farm Credit West, PCA, and Farm Credit West, FLCA, and the Debtor have entered into agreement to settle the claims of the secured creditor in this Chapter 11 case. Mr. Moncrief added that there is no equity value in the remaining assets of the Debtor's estate and that there is no reasonable likelihood of the Debtor obtaining an order confirming a Plan of Reorganization. About Denney Farms Bradley, California-based Denney Farms, a California Limited Partnership, produces wine grapes on over 1,000 acres of vineyards in south Monterey County. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 10-59704) on Sept. 17, 2010. Paul W. Moncrief, Esq., at Johnson & Moncrief, PLC, in Salinas, Calif., assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million. DEUCE INVESTMENTS: No Assets to Administer, Wants Case Dismissed ---------------------------------------------------------------- Deuce Investments, Inc., asks the U.S. Bankruptcy Court for the Eastern District of North Carolina to dismiss its Chapter 11 case. The Debtor explains that it has no assets to administer and believes it is in the best interest of all parties for the case to be dismissed. Clayton, North Carolina-based Deuce Investments, Inc., filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 10-01083) on Feb. 12, 2010. Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. The Company scheduled assets of $17,334,282, and total debts of $21,297,698 as of the bankruptcy filing. DOT VN INC: Co-Founder & Pres. Shares Vision for Vietnamese IDNs ---------------------------------------------------------------- Lee Johnson, Co-Founder and President of Dot VN, Inc., writes to shareholders as follows: Dear Friends: Close to two months ago, on April 28, 2011, Dot VN and VNNIC launched the Vietnamese Native Language Internationalized Domain Name System ("Vietnamese IDNs"), a separate system of Domain Names that are written in native Vietnamese. We believe that the IDNs represent the next stage of evolution in the Vietnamese Internet. An internet that speaks to the Vietnamese people in their own language; accessed, searched and used in their native tongue. We believed that the IDNs would be the next big thing in the Vietnamese Internet. Based on the response we have received, we think the Vietnamese people agree with us. Since the official launch, we are proud to report that we have registered over 229,000 Vietnamese IDNs. As of today, the total number of IDNs registered has exceeded the standard Vietnamese ccTLD (English alphabet). To put it succinctly, we have accomplished in two months what had before taken ten years. In the coming months we hope to continue the rapid expansion of the Vietnamese Native Language Internet as well as add new products and services to enrich its value and enhance the overall user experience. Vietnam's population in the past few years has grown into a sophisticated and savvy technological society. The overwhelming adoption of the Vietnamese IDNs clearly demonstrates that point. Moreover, their thirst for online services and demands for better and more reliable applications pushes us to offer new and exciting programs integrated into the IDN offering. We believe that the IDNs will become a tremendous tool for businesses both in Vietnam and internationally to reach Vietnamese consumers in their language. In addition to IDN registration services, we look forward to offering these businesses a variety of value added services from web hosting to search engine marketing. In the coming weeks, we will be launching our all-new IDN web designer application. Each IDN user will have the option of designing their own webpage, with our application, which can be customized with their own photos, videos and text. We have also integrated an INFO.VN news feed into the web designer templates and in the coming months expect to upgrade the service with cutting edge communications tools, daily deals and entertainment offerings to enhance the users experience and generate revenues for the Company. We will continue to strive towards building an online network that delights and energizes the Vietnamese Internet user while supporting social exchange and commerce. As we move forward, we will continue to update you on the latest Company news including exciting new services on our INFO.VN platform. We also recommend you visit our website frequently for important information: www.DotVN.com. I thank you for your support and shared belief in Dot VN as we look ahead to our promising future. Warm regards, Lee Phuoc Johnson President & Co-Founder Dot VN, Inc. About Dot VN Dot VN, Inc. (OTC BB: DTVI) -- http://www.DotVN.com/-- provides Internet and telecommunication services for Vietnam and operates and manages Vietnam's innovative online media web property, www.INFO.VN. The Company is the "exclusive online global domain name registrar for .VN (Vietnam)." Dot VN is the sole distributor of Micro-Modular Data Centers(TM) solutions and E-Link 1000EXR Wireless Gigabit Radios to Vietnam and Southeast Asia region. Dot VN is headquartered in San Diego, California with offices in Hanoi, Danang and Ho Chi Minh City, Vietnam. Dot VN was incorporated in the State of Delaware on May 27, 1998, under the name Trincomali Ltd. The Company's balance sheet at Jan. 31, 2011, showed $2.74 million in total assets, $10.92 million in total liabilities and $8.18 million in total shareholders' deficit. Dot VN reported a $7.3 million net loss on $1.1 million of revenues for the fiscal year ended April 30, 2010, compared with a $5.4 million net loss on $1.0 million of revenues for the same period a year ago. Following the Company's results for fiscal 2010, Chang G. Park CPA expressed substantial doubt against Dot VN's ability to continue as a going concern, citing the Company's losses from operations. ENRON CORP: 2nd Circ. Denies Appeal of Securities Settlement ------------------------------------------------------------ Ian Thoms at Bankruptcy Law360 reports that the Second Circuit refused Tuesday to force investment funds to return more than $50 million worth of commercial paper to a creditors recovery body for bankrupt energy giant Enron Corp. In a 2-1 decision, Law360 relates, the appeals court determined that the paper constituted settlement payments and were protected from avoidance actions under a safe harbor provision of the Bankruptcy Code. About Enron Corp. Based in Houston, Texas, Enron Corporation filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 01-16033) on Dec. 2, 2001, following controversy over accounting procedures that caused its stock price and credit rating to drop sharply. Enron hired lawyers at Togut Segal & Segal LLP; Weil, Gotshal & Manges LLP; Venable; Cadwalader, Wickersham & Taft, LLP for its bankruptcy case. The Official Committee of Unsecured Creditors in the case tapped lawyers at Milbank, Tweed, Hadley & McCloy LLP. The Debtors won confirmation of their Plan in July 2004, and the Plan was declared effective on Nov. 17, 2004. After approval of the Plan, the new board of directors decided to change the name of Enron Corp. to Enron Creditors Recovery Corp. to reflect the current corporate purpose. ECRC's sole mission is to reorganize and liquidate certain of the operations and assets of the "pre- bankruptcy" Enron for the benefit of creditors. ECRC has been involved in the MegaClaims Litigation, an action against 11 major banks and financial institutions that ECRC believes contributed to Enron's collapse; the Commercial Paper Litigation, an action involving the recovery of payments made to commercial paper dealers; and the Equity Transactions Litigation, which ECRC filed against Lehman Brothers Holdings, Inc., UBS AG, Credit Suisse and Bear Stearns to recover payments made to the four banks on transactions involving Enron's stock while the company was insolvent. EVT HOTEL: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------- Debtor: EVT Hotel, Inc. PMB 300 PO Box 4956 Caguas, PR 00726 Bankruptcy Case No.: 11-05346 Chapter 11 Petition Date: June 24, 2011 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Luis D. Flores Gonzalez, Esq. LUIS D FLORES GONZALEZ LAW OFFICE 80 Calle Georgetti Suite 202 San Juan, PR 00925-3624 Tel: (787) 758-3606 Fax: (787) 753-5317 E-mail: ldfglaw@coqui.net Scheduled Assets: $3,361,772 Scheduled Debts: $3,971,859 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-05346.pdf The petition was signed by Ezequiel Vazquez Toro, president. EZENIA! INC: Chief Financial Officer Thomas McCann Quits -------------------------------------------------------- Thomas McCann, the Chief Financial Officer of Ezenia! Inc., departed the Company. Until a new Chief Financial Officer is appointed, Larry Snyder will serve as principal financial and accounting officer of the Company. Information regarding Mr. Snyder can be found in the Company's definitive proxy statement filed with the SEC on June 24, 2011. The Company has engaged Brighton Company LLC, Burlington, Massachusetts, a licensed certified public accounting firm, to provide the Company with accounting and financial services on an interim basis. Mr. McCann will be available to assist in the transition. About Ezenia! Inc. Nashua, New Hampshire-based Ezenia! Inc. (OTC BB: EZEN) -- http://www.ezenia.com/-- develops and markets products that enable organizations to provide technically advanced high-quality group communication to commercial, governmental, consumer and institutional users. The Company's balance sheet at March 31, 2011, showed $3.2 million in total assets, $3.3 million in total liabilities, and a stockholders' deficit of $92,000. The Company reported a net loss of $2.8 million on $2.7 million of revenue for 2010, compared with a net loss of $3.4 million on $3.5 million of revenue for 2009. As reported in the TCR on April 11, 2011, McGladrey & Pullen, LLP, in Boston, Mass., expressed substantial doubt about Ezenia! Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has had recurring losses, and negative cash flows from operations and has limited existing resources available to meet 2011 commitments. FAIRWAY COMMONS II: Roseville Portfolio Wants Stay Lifted --------------------------------------------------------- Roseville Portfolio MSCI 2006-HQ8 LLC asks the Bankruptcy Court for relief from the automatic stay in the bankruptcy case of Fairway Commons II LLC so it may issue and record by July 5, 2011, a trustee's deed upon sale to fully perfect its ownership interests in certain property previously owned by Fairway Commons II. Roseville Portfolio also seeks stay relief so it may take any other action that may be necessary to perfect its title to the property pursuant to California Civil Code Section 2924h(c). Roseville Portfolio is represented by: H. Mark Mersel Esq. BRYAN CAVE LLP 3161 Michelson Drive, Suite 1500 Irvine, CA 92612-4414 Tel: 949-223-7000 Fax: 949-223-7100 E-mail: mark.mersel@bryancave.com About Kobra EFS and Fairway Commons II Kobra EFS, in Roseville, California, filed for Chapter 11 bankruptcy (Bankr. E.D. Calif. Case No. 11-35250) on June 20, 2011. Affiliates that also sought Chapter 11 protection are Fairway Commons II, LLC (Case No. 11-35255) and Eureka Ridge, LLC (Case No. 11-35256). Judge Christopher M. Klein presides over the case. Paul A. Warner, Esq., serves as the Debtors' bankruptcy counsel. Kobra EFS and Fairway Commons II separately estimated $10 million to $50 million in both assets and debts. Affiliates that previously sought Chapter 11 protection are: Entity Case No. Petition Date ------ -------- ------------- Kobra Petroleum I, LLC 11-23348 02/10/11 Sierra Valley Associates, Inc. 09-40212 09/18/09 Central Valley Food Services, Inc. 09-40214 09/18/09 Kobra Associates, Inc. 09-40068 09/18/09 Food Service Management, Inc. 09-40066 09/18/09 Douglas Pointe, LLC 09-32854 06/23/09 Rocky Ridge Center, LLC 08-38105 12/09/08 Kobra Properties 08-37271 11/25/08 Vernon Street Associates, LLC 08-37273 11/25/08 Kobra Preserve, LLC 08-37272 11/25/08 FERNANDEZ MOLEDO: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Fernandez Moledo Inc. PO Box 13346 San Juan, PR 00908-3346 Bankruptcy Case No.: 11-05334 Chapter 11 Petition Date: June 24, 2011 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Charles Alfred Cuprill, Esq. CHARLES A CURPILL, PSC LAW OFFICE 356 Calle Fortaleza, 2nd Floor San Juan, PR 00901 Tel: (787) 977-0515 E-mail: cacuprill@cuprill.com Scheduled Assets: $3,861,827 Scheduled Debts: $7,183,013 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-05334.pdf The petition was signed by Donato J. Fernandez, president. FLORIDA EXTRUDERS: Triton Capital OK'd as Financial Advisor ----------------------------------------------------------- The Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida authorized Florida Extruders International, Inc., to employ Triton Capital Partners, LTD as financial advisor and investment banker. To the best of the Debtor's knowledge, Triton Capital is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Sanford, Florida, Florida Extruders International, Inc. -- http://www.floridaextruders.com/-- was formed in 1989 and is a low cost, vertically integrated aluminum extruder, window, sliding glass door, and patio screen door manufacturer, and building products distributor. It filed a bare- bones Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-07761) on April 25, 2011. The case has been assigned to Judge K. Rodney May. Christopher C. Todd, Esq., at McIntyre, Panzarella, Thanasides, serves as the Debtor's counsel. The Company disclosed $33,816,432 in assets and $23,958,630 in liabilities as of the Chapter 11 filing. The Debtor disclosed $26.3 million in assets and $16.9 million in debt, mainly owed to lender Wells Fargo & Co., in its original schedules. The secured lender Wells Fargo Bank NA, owed $13.2 million, offered financing for the Chapter 11 case. FLORIDA EXTRUDERS: Taps McIntyre Panzarella as Legal Counsel ------------------------------------------------------------ The Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida authorized Florida Extruders International, Inc., to employ McIntyre, Panzarella, Thanasides, Hoffman, Bringgold & Todd, P.L. as legal counsel. To the best of the Debtor's knowledge, McIntyre Panzarella is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Sanford, Florida, Florida Extruders International, Inc. -- http://www.floridaextruders.com/-- was formed in 1989 and is a low cost, vertically integrated aluminum extruder, window, sliding glass door, and patio screen door manufacturer, and building products distributor. It filed a bare- bones Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-07761) on April 25, 2011. The case has been assigned to Judge K. Rodney May. Christopher C. Todd, Esq., at McIntyre, Panzarella, Thanasides, serves as the Debtor's counsel. Triton Capital Partners, LTD serves as financial advisor and investment banker. The Company disclosed $33,816,432 in assets and $23,958,630 in liabilities as of the Chapter 11 filing. The Debtor disclosed $26.3 million in assets and $16.9 million in debt, mainly owed to lender Wells Fargo & Co., in its original schedules. The secured lender Wells Fargo Bank NA, owed $13.2 million, offered financing for the Chapter 11 case. FLORIDA EXTRUDERS: Court OKs $12-Mil. Sale to Benada Aluminum ------------------------------------------------------------- The Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida authorized Florida Extruders International, Inc., to sell substantially all of its assets to Benada Aluminum Products, LLC. At the June 14 auction, Benada Aluminum submitted the final bid of $11,800,000, representing the highest and best offer received for the Debtor's assets. The Court approved Speyside Acquisition Company LLC as a back-up bidder with a bid in the cash amount of $10,000,000. Counsel RB Capital, LLC, the stalking horse bidder, offered to buy the Debtor's assets for $8,000,000. Counsel RB will receive a break-up fee in the amount of up to 3% of the purchase price as provided in the purchase agreement and the overbid protection in the amount of $400,000. Counsel RB will receive payment at the time of the closing of the sale with such third party buyer. About Florida Extruders International, Inc. Sanford, Florida-based Florida Extruders International, Inc. -- http://www.floridaextruders.com/-- was formed in 1989 and is a low cost, vertically integrated aluminum extruder, window, sliding glass door, and patio screen door manufacturer, and building products distributor. It filed a bare-bones Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-07761) on April 25, 2011. The case has been assigned to Judge K. Rodney May. Christopher C. Todd, Esq., at McIntyre, Panzarella, Thanasides, serves as the Debtor's counsel. Triton Capital Partners, LTD serves as financial advisor and investment banker. The Company disclosed $33,816,432 in assets and $23,958,630 in liabilities as of the Chapter 11 filing. The Debtor disclosed $26.3 million in assets and $16.9 million in debt, mainly owed to lender Wells Fargo & Co., in its original schedules. The secured lender Wells Fargo Bank NA, owed $13.2 million, offered financing for the Chapter 11 case. FLORIDA EXTRUDERS: Amends List of 20 Largest Unsecured Creditors ---------------------------------------------------------------- Florida Extruders International, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida amended list of its largest unsecured creditors, disclosing: Name of Creditor Nature of Claim Amount of Claim ---------------- --------------- --------------- Lehman, Joel Shareholder Loan $4,972,860 3117 Pennwa Court Longwood, FL 32779 Elrad Martin H. Shareholder Loan $300,000 550 SE 5th Ave., Apr. 906-S Boca raton, FL 33432 The Castle 2000 Trust Shareholder Loan $249,900 Yanowitz, Bennett Shareholder Loan $207,600 Florida Power & Light Utility $183,198 Dupont Powder Coating USA Inc. Trade Debt $161,234 FELA Realty Trust Lease for Sarasota $136,842 Property Akerman, Senterfit & Eidson Professional Fees $124,777 Northeast Metal Traders, Inc. Trade Debt $115,330 CMC Commonwealth Metals Trade Debt $86,687 Alder, Norman Shareholder Loan $83,400 Alder, Dale Shareholder Loan $83,400 Youngstown Tool & Die Trade Debt $77,911 Arnson, Gerald I. Shareholder Loan $75,000 AGC Flat Glass North America Inc. Trade Debt $70,618 Bulk Chemical, Inc. Trade Debt $55,986 Huttig Building Products, Inc. Settlement Case $50,000 Guardian Industries Corp. Trade Debt $46,972 Zenith Insurance Co. Insurance $42,667 Thumb Tool & Engineering Co. Trade Debt $39,790 Sanford, Florida-v-based, Florida Extruders International, Inc. -- http://www.floridaextruders.com/-- was formed in 1989 and is a low cost, vertically integrated aluminum extruder, window, sliding glass door, and patio screen door manufacturer, and building products distributor. It filed a bare-bones Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-07761) on April 25, 2011. The case has been assigned to Judge K. Rodney May. Christopher C. Todd, Esq., at McIntyre, Panzarella, Thanasides, serves as the Debtor's counsel. Triton Capital Partners, LTD seves as financial advisor and investment banker. The Company disclosed $33,816,432 in assets and $23,958,630 in liabilities as of the Chapter 11 filing. The Debtor disclosed $26.3 million in assets and $16.9 million in debt, mainly owed to lender Wells Fargo & Co., in its original schedules. The secured lender Wells Fargo Bank NA, owed $13.2 million, offered financing for the Chapter 11 case. FULTON HOMES: Settles With Lenders to Emerge From Bankruptcy ------------------------------------------------------------ Max Jarman at the Arizona Republic reports that Fulton Homes has reached a settlement with its lenders that will allow it to emerge from bankruptcy protection, after 28 months. According to the report, a group of lenders led by Bank of America has agreed to withdraw a competing reorganization plan in exchange for company founder Ira Fulton forgiving $25 million in personal loans he made to the company. The settlement paved the way for the approval of Fulton's reorganization plan by U.S. Bankruptcy Judge George Nielsen and the company's return to normal operations. Under terms of the reorganization, the lender group will receive an up-front cash payment of $57.5 million and will receive the balance of the total $163 million owed in installments over the next four years. An additional $2.2 million in miscellaneous debts will be paid when the plan becomes effective. Fulton Chief Financial Officer Steve Walters said the company will emerge from Chapter 11 "completely solvent" and able to meet its operating expenses without relying on outside financing. About Fulton Homes Fulton Homes Corporation -- http://www.fultonhomes.com/-- is a Tempe, Arizona-based homebuilder. The Company filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 09-01298) on Jan. 27, 2009. Mark W. Roth, Esq., at Shughart Thomson & Kilroy PC, represents the Debtor in its restructuring efforts. The Debtor estimated assets and debts between $100 million and $500 million in its Chapter 11 petition. G.B.S. HOLDING: Court Approves DurretteCrump as Chapter 11 Counsel ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Virginia authorized G.B.S. Holding, Ltd., to employ DurretteCrump PLC as counsel in its Chapter 11 case. According to the troubled Company Reporter on June 24, 2011, the names, positions, and current hourly rates of the firm's lawyers and paraprofessionals currently expected to have primary responsibility for providing services to the Debtor are: Professional Position Hourly Rate ------------ -------- ----------- Bruce E. Arkema Partner $335 Kevin J. Funk Associate $235 Beth McMillen Legal Secretary $85 DurretteCrump has received a $7,121 retainer for its services to be provided in the Debtor's case. On June 3, 2011, the firm applied $2,039 of the retainer as payment for fees and expenses incurred for the period through and including the Petition Date. Accordingly, as of the Petition Date, $5,081 of the retainer remains unapplied. DurretteCrump represents Roseland Village, LLC in a pending Chapter 11 case, which was filed on Jan. 13, 2011 (Bankr. E.D. Va. Case No. 11-30223). G.B.S. Holding, Ltd. owns 50% of Roseland Village, LLC. Bruce E. Arkema, Esq., a partner and shareholder of DurretteCrump, attested that DurretteCrump neither holds nor represents any interest adverse to the Debtor or its estate in the matters for which DurretteCrump is proposed to be retained. DurretteCrump is a "disinterested person," as defined in section 101(14) of the Bankruptcy Code and as required by section 327(a). About GBS Holding Based in Midlothian, Virginia, G.B.S. Holding, Ltd., filed for Chapter 11 (Bankr. E.D. Va. Case No. 11-33708) on June 3, 2011. Chief Judge Douglas O. Tice Jr. presides over the case. DurretteCrump PLC serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets of $50 million to $100 million and debts $10 million to $50 million. The petition was signed by George B. Sowers, Jr., president, who serves as the Debtor's designee pursuant to a court order. Affiliate Roseland Village, LLC, filed for Chapter 11 (Bankr. E.D. Va. Case No. 11-30223) on Jan. 13, 2011. G.B.S. Holding, Ltd. owns 50% of Roseland Village, LLC. DurretteCrump represents also represents Roseland Village. GANNON INTERNATIONAL: Judge Taps Receiver for Apartments -------------------------------------------------------- STLToday.com reports that a judge has appointed a receiver to take over management of the Suson Pines Apartments in South St. Louis County, Missouri. It's the third residential property owned by Gannon International placed in receivership this year. MLP Investments took over management of Suson Pines after a federal judge approved appointing a receiver on June 2, according to stltoday.com. stltoday.com notes that PNC Bank sought the appointment of a receiver in connection to a loan it made to an affiliate of Creve Coeur-based Gannon that is secured by Suson Pines. In a federal lawsuit, PNC alleges Gannon is in default on a promissory note and owes more than $13 million, the report says. PNC filed a lawsuit in April against several affiliates of Gannon International and its chief executive, William Franke, alleging Gannon is in default on loans secured by real estate, the report recalls. MLP Investments has also been appointed receiver to take over management of two other Gannon-owned properties: Springwood Apartments in Bel-Ridge and the Aspen Cove Townhomes in Ellisville. STLToday.com adds that PNC alleges Gannon is in default on a $5.7 million loan secured by Springwood and $272,438 for Aspen Cove. The Suson Pines Apartments at 5625 Suson Hills Drive has 336 units on 36 acres. GMX RESOURCES: Files Form S-3; Registers 3.54MM Common Shares ------------------------------------------------------------- GMX Resources Inc. filed with the U.S. Securities and Exchange Commission a Form S-3 registration statement relating to the resale of up to 3,542,091 shares of common stock, par value $0.001 per share, of the Company that may be offered and sold from time to time by selling shareholders. The selling shareholders and certain transferees may offer and sell from time to time the shares of common stock at market prices, in negotiated transactions or otherwise, or distribute all or a portion of the shares to its shareholders. The timing and amount of any sale are within the sole discretion of the selling shareholders. The selling shareholders may sell the shares of common stock directly or through underwriters, brokers or dealers or through a combination of these methods. The selling shareholders will pay commissions or discounts to underwriters, brokers or dealers in amounts to be negotiated prior to the sale. The Company will not receive any of the proceeds from the sale of the shares covered by this prospectus. The Company's common stock is listed on The New York Stock Exchange under the symbol "GMXR." On June 23, 2011, the closing sale price of the Company's common stock on The New York Stock Exchange was $4.36 per share. A full-text copy of the prospectus is available for free at: http://is.gd/VU2WBD About GMX Resources GMX Resources Inc. -- http://www.gmxresources.com/-- is an independent natural gas production company headquartered in Oklahoma City, Oklahoma. GMXR has 53 producing wells in Texas & Louisiana, 24 proved developed non-producing reservoirs, 48 proved undeveloped locations and several hundred other development locations. GMXR has 9,000 net acres on the Sabine Uplift of East Texas. GMXR has 7 producing wells in New Mexico. The Company's strategy is to significantly increase production, revenues and reinvest in increasing production. GMXR's goal is to grow and build shareholder value every day. The Company reported a net loss of $138.29 million on $96.52 million of oil and gas sales for the year ended Dec. 31, 2010, compared with a net loss of $181.08 million on $94.29 million of oil and gas sales during the prior year. The Company's balance sheet at March 31, 2011, showed $606.60 million in total assets, $413.10 million in total liabilities and $193.50 million in total equity. * * * GMX Resources got a first time 'Caa1' Corporate Family Rating and SGL-3 Speculative Grade Liquidity rating from Moody's Investors Service in February 2011. GMX's 'Caa1' CFR reflects its small size, limited diversification, production that is 97% natural gas in a low gas price environment, high leverage on production and reserves, and the risks inherent in developing its newly acquired oil focused Bakken and Niobrara acreage while outspending cash flow," commented Jonathan Kalmanoff, Moody's Analyst. "The rating also considers the potential for improvement in both profitability and diversification if GMX is successful in developing its newly acquired acreage, the pre-funding of the majority of 2011 capital spending through both debt and equity offerings, a lack of required drilling to hold acreage in the company's East Texas properties, and hedges in place which add support to realized prices for gas production through 2012." As reported by the TCR on April 25, 2011, Standard & Poor's Ratings Services said it assigned its 'B-' corporate credit rating to Oklahoma City-based GMX Resources Inc. The outlook is stable. "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. GULFSTREAM AIRLINES: Former Workers Cry Foul Over Severance Pay --------------------------------------------------------------- Alison Lowe at The Tribune reports that former Bahamian employees of Gulfstream Airlines are crying foul after the company allegedly defaulted on an obligation to pay them severance monies owed while -- now under new ownership after emerging from Chapter 11 bankruptcy protection -- it expands its operations in this nation. According to the report, ex-assistant general manager for Gulfstream in Nassau, Ian Hutchinson, said he was told by the Department of Labour there was nothing they could do to make the company pay up the money it still owes. He was told the only option he would have would be to seek to recover the money through a legal action. "It will cost me money to get money owed to me. It's not fair," the report quotes Mr. Hutchinson, adding that after 22 years of service he is owed around $30,000 by the company in severance, as saying. Mr. Hutchinson suggested that the Government should require foreign companies to place bonds in the Bahamas, so as to ensure ex-employees do not lose out when companies leave the country abruptly or fail to follow through on financial obligations. He compared the situation to that of the employees of the Royal Oasis resort in Freeport. About Gulfstream International Fort Lauderdale, Florida-based Gulfstream International Airlines (NYSE Amex: GIA) operated a fleet of turboprop Beechcraft 19000 aircraft, and specialized in providing travelers with access to niche locations not typically covered by major carriers. GIA operated more than 150 scheduled flights per day, serving nine destinations in Florida, 10 destinations in the Bahamas, five destinations from Continental Airline's hub under the Department of Transportation's Essential Air Service Program and supports charter service to Cuba through a services agreement with Gulfstream Air Charter, Inc., an entity otherwise unrelated to the Debtors. GIA operated as a Continental Connection carrier, as well as for United Airlines, Northwest Airlines and Copa Airlines, through code share agreements. GIA has 620 employees, including 530 working full-time. Gulfstream International Group, Inc., and its units including Gulfstream International Airline, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Lead Case No. 10-44131) on Nov. 4, 2010. Brian K. Gart, Esq., at Berger Singerman, P.A., serves as the Debtors' bankruptcy counsel. Jetstream Aviation Capital, LLC and Jetstream Aviation Management, LLC, serve as financial advisors to the Debtors. Robert A. Schatzman, Esq., Steven J. Solomon, Esq., and Frank P. Terzo, Esq., at GrayRobinson, P.A., in Miami, Florida, serve as counsel to the Official Committee of Unsecured Creditors. Gulfstream International Airlines disclosed $15,967,096 in total assets and $25,243,099 in total liabilities. Victory Park provided Gulfstream with up to $5 million debtor-in- possession financing to fund the Chapter 11 case. HANMI FINANCIAL: To Sell Common Shares to Woori Investment ---------------------------------------------------------- Hanmi Financial Corporation entered into a Common Stock Purchase Agreement for a private placement transaction to issue shares of the Company's common stock to Woori Investment & Securities. Pursuant to the terms of the Common Stock Purchase Agreement dated June 27, 2011, between Woori and the Company, Woori will be purchasing that number of shares equal to 4.9 percent of the Company's outstanding common stock immediately after the closing of the Company's previously announced public offering, subject to adjustment in certain circumstances, at a price per share equal to the public offering price. The private placement is contingent upon the closing of the Company's public offering. The total amount of common stock being sold in the private placement and the Company's public offering is expected to total $75,000,000, assuming no exercise of the underwriter's over-allotment option. Hanmi President and CEO J.S. Yoo stated, "We are quite pleased that Woori has committed to invest in Hanmi in a private transaction, which is a significant step in our collaborative relationship. We believe that our partnership with Woori Finance Holdings Co. Ltd., which is one of Korea's largest financial institutions and the parent company of Woori Investment & Securities, should benefit both parties in expanding our ongoing business relationship and help to build value for our shareholders." The Company intends to contribute a substantial portion of the net proceeds from the private placement to Hanmi Bank as additional capital and to support future organic and acquisition driven growth. The Company intends to retain the remaining net proceeds at the Company level for use as working capital and other general corporate purposes. A free writing prospectus was filed with the U.S. Securities and Exchange Commission, a full-text copy of which is available for free at http://is.gd/lEldVV About Hanmi Financial Headquartered in Los Angeles, California, Hanmi Financial Corp. (Nasdaq: HAFC) -- http://www.hanmi.com/-- is the holding company for Hanmi Bank, a state chartered bank with headquarters located at 3660 Wilshire Boulevard, Penthouse Suite A, in Los Angeles. Hanmi Bank provides services to the multi-ethnic communities of California, with 27 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan production office in Washington State. The Company reported a net loss of $88.01 million on $144.51 million of total interest and dividend income for the year ended Dec. 31, 2010, compared with a net loss of $122.27 million on $184.14 million during the prior year. The Company's balance sheet at March 31, 2011, showed $2.87 billion in total assets, $2.69 billion in total liabilities, and $184.05 million in total stockholders' equity. Going Concern The Company is required by federal regulatory authorities to maintain adequate levels of capital to support its operations. Hanmi Bank is also required to increase its capital and maintain certain regulatory capital ratios prior to certain dates specified in a Final Order issued by the California Department of Financial Institutions. By July 31, 2010, the Bank was required to increase its contributed equity capital by not less than an additional $100 million and maintain a ratio of tangible stockholders' equity to total tangible assets of at least 9.0%. In addition, the Bank was also required to maintain a ratio of tangible stockholders' equity to total tangible assets of at least 9.5 percent at Dec. 31, 2010 and until the Final Order is terminated. As a result of the successful completion of the registered rights and best efforts offering in July 2010, the capital contribution requirement set forth in the Final Order was satisfied. However, the tangible capital ratio requirement set for in the Final Order has not been satisfied at Dec. 31, 2010. Further, should the Company's asset quality continue to erode and require significant additional provision for credit losses, resulting in added future net operating losses at the Bank, or should the Company otherwise fail to be profitable, the Company's capital levels will additionally decline requiring the raising of more capital than the amount currently required to satisfy the Company' agreements with its regulators. The Company said an inability to raise additional capital when needed or comply with the terms of the Final Order or the Written Agreement with the Board of Governors of the Federal Reserve System, raises substantial doubt about its ability to continue as a going concern. The Company's independent registered public accounting firm in their audit report for fiscal year 2010 has expressed substantial doubt about the Company's ability to continue as a going concern. Continued operations may depend on the Company's ability to comply with the regulatory orders the Company is subject to. HARRY & DAVID: First Amended Plan Voting Deadline Set for July 28 ----------------------------------------------------------------- Ballots containing the votes for or against the first amended plan of reorganization of Harry & David Holdings, Inc., and its debtor affiliates must be duly completed, executed and received by 5:00 p.m., Eastern Time, on July 28, 2011, to be counted. Holders of Class 1 Other Secured Claims, Class 2 Priority Claims, are unimpaired, and Class 6 Equity Interests in Subsidiary Debtors are deemed to have accepted the Plan, and are not entitled to vote. Holders of Class 3 Senior Notes and Claims and Pension Benefit Guaranty Corporation Claims, Class 4 General Unsecured Claims, Class 5 Intercompany Claims, and Class 7 Equity Interests in Harry & David Holdings are impaired and are entitled to vote. According to the Debtors' counsel, David G. Heiman, Esq., at Jones Day, in Cleveland, Ohio, the Debtors' key stakeholders support the Plan, including the Official Committee of Unsecured Creditors of the Debtors and an ad hoc group of holders of the Debtors' public notes that own the vast majority of outstanding notes. The individual members of the Ad Hoc Committee have agreed to vote in favor of the Plan, he added. As previously reported by The Troubled Company Reporter on June 27, 2011, the Debtors' First Amended Plan contemplates the reorganization of the Debtors through (a) the elimination of the PBGC Claims and the Debtors' Senior Notes in exchange for the issuance of new stock and (b) a rights offering (the 'Rights Offering') that will provide the PBGC and the Noteholders that meet certain SEC requirements with the opportunity to purchase stock of the reorganized Debtors in connection with their emergence from chapter 11. The Debtors will utilize the proceeds of the Rights Offering to repay outstanding amounts under their second lien debtor-in-possession term loan and to fund the Debtors' business operations going forward. The Rights Offering permits qualified Noteholders to purchase approximately 74.9 percent of the stock of the reorganized Debtors for $55 million. Because the Plan does not require qualified Noteholders to participate in the Rights Offering, the Debtors also entered into an agreement with a specific group of their Noteholders to 'backstop' the Rights Offering (as amended, the 'Backstop Agreement'). Pursuant to the Backstop Agreement, the Noteholders that are party to that agreement will purchase any remaining stock that was not purchased by other Noteholders or the PBGC as part of the Rights Offering. In consideration for the performance of their obligations under the Backstop Agreement, the Noteholders that are party to the Backstop Agreement will receive 50,000 shares in Reorganized Holdings. The Backstop Agreement ensures that the Debtors will obtain $55 million in new equity financing upon their emergence from these cases. After the Petition Date, the Debtors also obtained Bankruptcy Court approval to enter into a $100 million exit facility that would become effective on the effective date of the Plan. This facility, provided by the same lenders who provided the Debtors with a similar facility prior to the Petition Date and the $100 million first lien debtor-in-possession revolving credit facility, permits the Debtors to maintain their historical working capital financing upon emergence from chapter 11 on terms substantially similar to those that existed prior to the Petition Date. A full-text copy of the Disclosure Statement explaining the First Amended Plan, dated June 21, 2011, is available for free at: http://ResearchArchives.com/t/s?7658 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. The cases are jointly administered, with Harry David Holdings as lead case. 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 Debtor also tapped DJM Realty Services, LLC, as real estate consultants; Alvarez & Marsal North America to provide the Debtors an interim chief executive officer and chief restructuring officer and certain additional officers; and McKinsey Recovery & Transformation Services U.S. LLC as their management consultant. 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. The Debtors' proposed Plan of Reorganization will allow the Company to convert all of its approximately $200 million of outstanding public notes into equity of the reorganized company. The Plan also includes an equity capital raise that will generate $55 million in equity financing upon the Company's emergence from chapter 11. The Plan has the support of the Official Committee of Unsecured Creditors and the holders of approximately 81% of the Company's public notes. HEARUSA INC: Obtains Final Nod of $10 Million DIP Financing ----------------------------------------------------------- Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida authorized HearUSA Inc., on a final basis, to borrow up to $10,000,000 in postpetition financing provided by William Demant Holdings A/S pursuant to the Credit and Security Agreement. The bankruptcy judge acknowledged that the ability of the Debtor to obtain sufficient working capital and liquidity through the new indebtedness for borrowed money and other financial accommodations is vital to the preservation and maintenance of the going concern value of the Debtor and its successful reorganization. The DIP Lender consents to the borrowings of the DIP Loan Amount as necessary to fund all of the proposed disbursements under the DIP budget, including fees due to the clerk of the Court and the U.S. Trustee for Region 21, the DIP Budget will include, and provide for payment during the week of July 1, 2011, the estimated amount of those fees for the remainder of the Debtor's bankruptcy case through consummation of a plan, which fees will be funded through the reserve. The Debtor is also authorized to grant liens, security interests and superpriority claims to the DIP Lender pursuant to this final order. Contemporaneously or prior to the execution of the DIP Credit Agreement, the DIP Lender or its affiliate, the Debtor and Auxiliary Health Corporation entered into an asset purchase agreement for the purchase of substantially all of the Debtor's assets and Auxiliary Health's assets and to serve as the stalking horse bidder under a Section 363 of the Bankruptcy Code sale in the Debtor's bankruptcy case. Prior to the auction of the Debtor's assets, the Debtor will borrow an amount as set forth in the Budget necessary to fund the wind down of the Debtor's Chapter 11 case and the Reserve. The Reserve constitutes funds placed in escrow with the Debtor's counsel for the exclusive benefit of the payment of professionals with the approval of the Court and fees due to the Clerk of the Court and the U.S. Trustee. The Wind Down Amount and Reserve (i) will be retained by the Debtor; (ii) will be free and clear of all liens, claims and encumbrances in favor of any secured creditor, including the Prepetition Lender or the DIP Lender, and will not be sold and transferred to the Purchaser under the APA. The bankruptcy judge also authorized the Debtor to use prepetition collateral, including cash collateral of Siemens Hearing Instruments, Inc., subject to the expense line items in the DIP Budget, including any permitted variances. A copy of the DIP Budget is available for free at: http://bankrupt.com/misc/HearUSA_DIPBudget.pdf The Debtor may use Cash Collateral only to pay reasonable and necessary general operating expenses it incurred in the ordinary course of business. To protect the Prepetition Lender's interest for any diminution in the value of the Prepetition Collateral from, among other things, the use of the Cash Collateral, the Prepetition Lender will have a continuing, perfected replacement lien, and security interest upon all assets of the Debtor's estate acquired after the Petition Date and all other property of the Debtor's estate that is not Prepetition Collateral or Postpetition Like Kind Collateral. All rights and remedies granted to the DIP Lender will at all times be subject to and subordinate to the prior satisfaction of the outstanding obligations under the Prepetition Credit Agreement totaling $31.3 million, the bankruptcy judge ruled. Full-text copies of the final DIP order and the DIP Credit Agreement are available for free at: http://bankrupt.com/misc/HearUSA_FinalDIPOrder.pdf http://bankrupt.com/misc/HearUSA_DIPCreditAgr.pdf About HearUSA HearUSA, Inc., which sells hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S. The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owes $31.3 million to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor ans Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. HearUSA, INC. The Official Committee of Unsecured Creditors was appointed on May 25, 2011. Robert Paul Charbonneau and the law firm of Ehrenstein Charbonneau Calderin represents the Committee. HEARUSA INC: Luis Salazar Named Consumer Privacy Ombudsman ---------------------------------------------------------- Donald F. Walton, the U.S. Trustee for Region 2, appointed Luis Salazar, Esq., at Infante, Zumpano, Salazar & Miloch, in Coral Gables, Florida as the consumer privacy ombudsman in HearUSA Inc.'s Chapter 11 case, on June 2, 2011. Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida directed the U.S. Trustee to appoint a consumer privacy ombudsman in connection with any hearing on approval of the Debtor's sale of substantially all of its assets. The Consumer Privacy Ombudsman will file a report prior to and appear to answer questions at a hearing on approval of the sale. As previously reported by the TCR on May 31, 2011, the assets include personally identifiable consumer information of customers who are subject to the Debtor's privacy policy, necessitating the appointment of a consumer privacy ombudsman under Section 332 of the Bankruptcy Code. About HearUSA HearUSA, Inc., which sells hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S. The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owes $31.3 million to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor ans Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. HearUSA, INC. The Official Committee of Unsecured Creditors was appointed on May 25, 2011. Robert Paul Charbonneau and the law firm of Ehrenstein Charbonneau Calderin represents the Committee. HEARUSA INC: Hearing on Sale of All Assets Set for Aug. 1 --------------------------------------------------------- Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida will consider approval of HearUSA Inc.'s request to sell substantially all of its assets to William Demant Holdings A/S or to the highest and best bidder on August 1, 2011 at 9:30 p.m. The Court also approved the bidding procedures governing the proposed sale. The deadline for submitting bids for the purchased assets is July 21, 2011 at 4:30 p.m. If Qualified Bids, other than the Qualified Bid of the Proposed Purchaser are timely received, the Debtor will conduct an auction on July 29, 2011 at 10:00 a.m. The Proposed Purchaser will be entitled to credit bid each round at the auction using the current outstanding balance of the DIP Loan, and a break-up fee of $2,000,000. The break-up fee will be paid to the Proposed Purchaser in the event the Debtor consummates an alternative transaction, provided that the APA has not been terminated by the Debtor. Objections, if any, to the sale contemplated by the Asset Purchase Agreement with the Proposed Purchaser must be filed on or before July 22, 2011 at 4:30 p.m. All objections to the Debtor's Bidding Procedure Motion or the relief provided that have not been withdrawn, waived or settled, and all reservations of rights included therein, are overruled and denied on the merits, Judge Kimball ruled. A full-text copy of the bidding procedures order is available for free at: http://bankrupt.com/misc/HearUSA_BiddingProcsOrd.pdf About HearUSA HearUSA, Inc., which sells hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S. The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owes $31.3 million to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor ans Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. HearUSA, INC. The Official Committee of Unsecured Creditors was appointed on May 25, 2011. Robert Paul Charbonneau and the law firm of Ehrenstein Charbonneau Calderin represents the Committee. HOSPITAL DAMAS: Court Approves Enrique Peral as Special Counsel --------------------------------------------------------------- Hospital Damas, Inc., obtained approval from the U.S. Bankruptcy Court of the Central District of Puerto Rico to appoint Enrique Peral Law Offices, P.S.C. as special counsel for determining if the project for the expansion of Debtor's obstetrics and gynecology room and the acquisition of a multi slide CT system to be financed by doctors and companies having a relationship with Debtor comply with the Federal Regulations known as Stark I, II, III and the antikickback statutes. Peral Law Offices, its partners and associates, do not represent or hold any interest adverse to Debtor or the estate in respect to the matters on which it is to be employed. The firm's hourly rates are: Personnel Rates --------- ----- Enrique Peralta, Esq. $175 per hour Maria Teresa Figueroa, Esq. $135 per hour Ernesto Blanes, Esq. $125 per hour Guillermo Hernandez, Esq. $125 per hour Paralegals $80 per hour Ponce, Puerto Rico-based Hospital Damas, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 10-08844) on Sept. 24, 2010. Charles A. Cuprill-Hernandez, Esq., at Charles A. Cuprill, P.S.C., Law Offices, serves as the Debtor's bankruptcy counsel. In October 2010, the United States Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors of the Debtor. Todd C. Meyers, Esq., and Colin M. Bernardino, Esq., at Kilpatrick Stockton LLP, represents the Committee as legal counsel, and Edgardo Munoz, Esq., at Edgardo Munoz, PSC, serves the Committee as local counsel. In its schedules, the Debtor disclosed US$24,017,166 in total assets and US$21,267,263 in total liabilities as of the Petition Date. HOSPITAL DAMAS: Court OKs FPV&G to Assist in Medicare Cost Report ----------------------------------------------------------------- Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the Central District of Puerto Rico granted Hospital Damas Inc. authority to employ FPV & Galindez PSC to process and prepare statistical data required for the preparation of the Medicare cost report. FPV&G had acted as the Debtor's external audit firm since the year ended Dec. 31, 2007, and had audited the Debtor's financial statements. The Debtor says FPV&G, its partners, and associates do not represent or hold any interest adverse to the Debtor or the estate. The firm and its members are disinterested persons as defined in 11 U.S.C. Sec. 101(14). The firm's hourly rates are: Consulting director US$165 Consulting staff US$70 The firm's costs will be capped at US$10,800. Ponce, Puerto Rico-based Hospital Damas, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 10-08844) on Sept. 24, 2010. Charles A. Cuprill-Hernandez, Esq., at Charles A. Cuprill, P.S.C., Law Offices, serves as the Debtor's bankruptcy counsel. In October 2010, the United States Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors of the Debtor. Todd C. Meyers, Esq., and Colin M. Bernardino, Esq., at Kilpatrick Stockton LLP, represents the Committee as legal counsel, and Edgardo Munoz, Esq., at Edgardo Munoz, PSC, serves the Committee as local counsel. In its schedules, the Debtor disclosed US$24,017,166 in total assets and US$21,267,263 in total liabilities as of the Petition Date. HOSPITAL DAMAS: To Employ Silva CPA Group as Financial Advisor -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico has approved Hospital Damas Inc's application to employ Silva CPA Group as its financial advisor. The Debtor needs a financial advisor to assist its management in the preparation of a study to oppose a request by the Menonita Health System to the Department of Health Puerto Rico directed to establishing a general hospital in the Municipality of Aibonito. The firm can be reached at: Jose A. Silva, Esq. SILVA CPA GROUP Coto Laurel P.R. 00780-1292 Tel: (787) 284-2884 Fax: (888) 270-1159 The firm will charge a $2,000 fee as to the aforesaid matter plus $100 per hour required visits to the Department of Health upon application(s) and the approval of the Court. These rates are considered reasonable and fair, in line with services comparable to those performed in behalf of clients. About Hospital Damas Ponce, Puerto Rico-based Hospital Damas, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 10-08844) on Sept. 24, 2010. Charles A. Cuprill-Hernandez, Esq., at Charles A. Cuprill, P.S.C., Law Offices, serves as the Debtor's bankruptcy counsel. In October 2010, the United States Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors of the Debtor. Todd C. Meyers, Esq., and Colin M. Bernardino, Esq., at Kilpatrick Stockton LLP, represents the Committee as legal counsel, and Edgardo Munoz, Esq., at Edgardo Munoz, PSC, serves the Committee as local counsel. In its schedules, the Debtor disclosed US$24,017,166 in total assets and US$21,267,263 in total liabilities as of the Petition Date. HTRINKEL ENTERPRISES: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Htrinkel Ensterprises 11125 Portage River Ct. Rancho Cordova, CA 95670 Bankruptcy Case No.: 11-35629 Chapter 11 Petition Date: June 23, 2011 Court: United States Bankruptcy Court Eastern District of California (Sacramento) Judge: Robert S. Bardwil Debtor's Counsel: W. Austin Cooper, Esq. W. AUSTIN COOPER, A PROF. CORP. 2525 Natomas Park Dr #320 Sacramento, CA 95833 Tel: (916) 927-2525 Fax: (916) 920-0355 E-mail: austincooperlaw@yahoo.com Scheduled Assets: $500,001 to $1,000,000 Scheduled 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/caeb11-35629.pdf The petition was signed by Herman Rinkel, general partner. IMAGINE HOSPITALITY: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Imagine Hospitality, Inc. 5622 Havenwood Houston, TX 77066 Bankruptcy Case No.: 11-35389 Chapter 11 Petition Date: June 24, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Jeff Bohm Debtor's Counsel: Samuel L. Milledge, Esq. 10333 Northwest Frwy, Ste 202 Houston, TX 77092 Tel: (713) 812-1409 Fax: (713) 812-1418 E-mail: milledge@milledgelawfirm.com Scheduled Assets: $7,500,000 Scheduled Debts: $4,463,500 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-35389.pdf The petition was signed by Syed Rizwan Mohiuddin, president. INDEPENDENCE TAX: Reports $15.98-Mil. Profit in Fiscal 2011 ----------------------------------------------------------- Independence Tax Credit Plus L.P. II filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting net income of $15.98 million on $7.14 million of total revenues for the year ended March 31, 2011, compared with a net loss of $23.67 million on $6.94 million of total revenues. The Company's balance sheet at March 31, 2011, showed $22.41 million in total assets, $49.83 million in total liabilities and a $27.41 million total partners' deficit. Trien Rosenberg Weinberg Ciullo & Fazzari LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that at March 31, 2011, the Partnership's liabilities exceeded assets by $27,415,490 and for the year then ended incurred net income of $15,984,571, including gain on sale of properties of $20,284,069 and loss on impairment of properties of $1,047,336. Partnership management fees of approximately $4,930,000 will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all other Partnership liabilities have been made and after the Limited Partners have received a 10% return on their capital contributions. As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership's ability to pay them. In addition, where the Partnership has unpaid partnership management fees related to sold properties, such management fees are written off and recorded as capital contributions. A full-text copy of the Form 10-K is available for free at: http://is.gd/73Se7C About Independence Tax Credit Plus L.P. II Based in New York, Independence Tax Credit Plus L.P. II was organized on Feb. 11, 1992, and commenced its public offering on Jan. 19, 1993. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware Corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is in the process of developing a plan to dispose of all of its investments. INNKEEPERS USA: Reorganization Plan Wins Court Approval ------------------------------------------------------- Innkeepers USA Trust and its affiliates disclosed that less than a year after the Company entered Chapter 11, the United States Bankruptcy Court for the Southern District of New York entered an order confirming the Company's chapter 11 plan of reorganization. The Court's approval of the plan, which was supported by the Company's secured lenders and has been accepted by more than 90 percent of Innkeepers' unsecured creditors and shareholders, clears the way for Innkeepers to emerge from Chapter 11. "Given the fact that in 2010 the hospitality industry was still experiencing one of the most challenging operating environments in its history as well as the sluggish economic recovery, the successful restructuring of this company and the preservation of 3,500 jobs is a truly remarkable achievement." Innkeepers' Chief Restructuring Officer, Marc A. Beilinson said that the reorganization plan confirmed by the Court provides maximum recovery to the Company's creditors while ensuring the continued viability of the hotel properties. "Ensuring our secured and unsecured creditors would receive the greatest possible recovery, while at the same time preserving the value of the hotel properties, was our key objective as we examined the various restructuring alternatives available. The Plan of Reorganization confirmed today fulfills these goals and is a great result for our creditors, franchisors, guests and employees." The Company also noted that throughout its restructuring process, Innkeepers has maintained normal business operations at all of its properties, including completing substantial work on the property improvement plans required by franchisors on time and under budget, as well as having successfully maintained its supportive relationships with its franchisors. The Company's plan of reorganization is the result of an extensive marketing process which increased Innkeepers' enterprise value by approximately $150 million. Under the terms of the plan: A joint venture between the private-equity firm Cerberus Capital Management, L.P. and the real estate investment trust Chatham Lodging will purchase for approximately $1.1 billion the equity in entities that own and operate 65 of the Company's hotels. Chatham Lodging will also purchase for approximately $195 million, five of the Company's hotels that serve as collateral for loan trusts serviced by LNR Partners LLC. The majority of the Company's unsecured creditors and all of the holders of the publicly traded Preferred C Shares are expected to receive a meaningful recovery. "Given the fact that in 2010 the hospitality industry was still experiencing one of the most challenging operating environments in its history as well as the sluggish economic recovery, the successful restructuring of this company and the preservation of 3,500 jobs is a truly remarkable achievement," Mr. Beilinson said. "The significant progress we have made during our restructuring is the result of a great deal of hard work from all involved. We are grateful to our creditors who worked with us to achieve a consensual resolution as well as the loyalty our franchisors and suppliers demonstrated during this challenging time." The Company is working diligently to effectuate the transaction outlined in the plan, including closing the sales transactions to Chatham Lodging and the joint venture. The Company expects that the transactions will close in short order. Kirkland & Ellis LLP is Innkeepers' restructuring counsel and Moelis & Company LLC is its financial advisor. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and 91 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-13800) on July 19, 2010. Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in Washington, D.C., serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. Attorneys at Morrison & Foerster, LLP, represent the Official Committee of Unsecured Creditors. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. The confirmation hearing for approval of Innkeepers' Chapter 11 plan is set for June 23. IRON MINING: Negotiating Forbearance with MST Financial ------------------------------------------------------- Iron Mining Group, Inc., on June 17, 2011, received notice from MST Financial, LLC., that the Company was in default under that certain Loan Agreement, dated Dec. 20, 2010, by and among the Company, as borrower, the lenders party thereto, as lenders, and MST, as administrative agent and collateral agent, pursuant to which the Lenders advanced $3,300,000 to the Company. The notice states that the Company failed to pay the Obligations by the Maturity Date. According to the Loan Agreement, if an event of default occurs the Lenders may, among other remedies, accelerate the repayment of all amounts due under the related convertible notes. As of June 27, 2011, the total outstanding balance due under the Notes, including accrued and unpaid interest, is approximately $3,559,521. The Company is presently negotiating a Forbearance Agreement with MST, pursuant to which the Company will, among other things, repay the full amount of all principal and accrued interest within 90 days of the Maturity Date in consideration of the Lenders not pursuing remedies against the Company. About Iron Mining Iron Mining Group, Inc., is a diversified global iron ore company positioned to fuel China's next decade of urbanization and industrial growth through the development of strategic mining and trading opportunities with an emphasis on those located in North and South America. IMG has signed sizeable multi-year offtake agreement with Tianjin Bohai Steel Group for its current and future iron ore supply. IMG consists of a global iron ore trading group and direct mining operations in Mexico and Chile, where it owns and controls a number of iron ore projects in various stages of development. ISAACSON STEEL: Files For Chapter 11 Bankruptcy Protection ---------------------------------------------------------- Sara Young-Knox at Union Leader reports that Isaacson Structural Steel Inc. filed for bankruptcy protection under Chapter 11 in Manchester, New Hampshire. The Company furloughed its 72 shop workers, calling back 42 of them. Berlin Mayor Paul Grenier said he is sure that the company will emerge from bankruptcy protection stronger. Isaacson owners Steve Griffin and co-owner Arnie Hanson are quality people, he added. According to the report, Isaacson was one of the subcontractors on the Berlin Federal Correctional Facility, providing the steel. "ISSI used 3-D modeling extensively to coordinate details with the precast concrete wall panels and to allow the project's units of measure to be easily translated between metric and imperial units," it says on the company's web site. The company did the steel work on the 20-story addition to the Dana-Farber Cancer Institute. Isaacson was founded in 1962 by Eli Isaacson. It provides the steel infrastructure for buildings across the Northeast. ISAACSON STEEL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Isaacson Steel, Inc. PO Box 67 Berlin, NH 03570 Bankruptcy Case No.: 11-12415 Chapter 11 Petition Date: June 22, 2011 Court: United States Bankruptcy Court District of New Hampshire (Manchester) Debtor's Counsel: William S. Gannon, Esq. WILLIAM S. GANNON PLLC 889 Elm Street, 4th Floor Manchester, NH 03101 Tel: (603) 621-0833 Fax: (603) 621-0830 E-mail: bgannon@gannonlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nhb11-12415.pdf The petition was signed by Arnold P. Hanson, Jr., president. JACKSON HEWITT: Creditors Seek to Put Brakes on Plan Process ------------------------------------------------------------ Dow Jones' DBR Small Cap reports that the recently formed unsecured creditors committee in Jackson Hewitt Tax Service Inc.'s bankruptcy case is again calling for a slowdown of the tax preparer's plan process, seeking to have the confirmation hearing delayed for two months so that the group can mull objections to the plan. BankruptcyData.com reports that Jackson-Hewitt Tax Service's official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors' motion (I) for an order (A) scheduling a combined hearing on adequacy of the Company's Disclosure Statement and confirmation of the Plan, (B) approving the form and manner of notice of a combined hearing and commencement of the Chapter 11 cases, (C) establishing procedures for objecting to the Disclosure Statement and Plan and (D) waiving the requirement for a 341-meeting of creditors and (II) for an order (A) approving pre-petition solicitation procedures, (B) approving adequacy of the Company's Disclosure Statement and (C) confirming the Plan of Reorganization. According to the committee, "It is primarily the relief requested in connection with publication notice as it applies to 'known' creditors that the Committee objects to." About Jackson Hewitt Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka JHTS Inc., provides computerized preparation services for federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name Jackson Hewitt Tax Service. The Company has 700 franchisees who collectively operated a total of 4,846 offices. The Company also operates 1,110 company-owned offices. Jackson Hewitt and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11587) on May 24, 2011. Judge Mary F. Walrath presides over the case. Skadden, Arps, Slate, Meagher & Flom LLP, serves as the Debtors' bankruptcy counsel. Alvarez & Marsal North America, LLC, serves as their financial advisor. Moelis & Company LLC acts as investment banker. The Garden City Group, Inc., serves as the Debtors' Claims and Noticing Agent. The Debtors also tapped Deloitte & Touche to serve as tax advisors and Kekst & Company to serve as communications advisors. The Debtors filed a Joint Prepackaged Plan of Reorganization and Disclosure Statement together with their petitions. Under the terms of the Plan, Jackson Hewitt's current secured lenders will receive their pro rata share of a new $100 million term loan and all of the equity in the reorganized enterprise. The Company also anticipates entering into a new $115 million revolving credit facility upon consummation of the Plan. It is anticipated that upon consummation of the proposed Plan, Jackson Hewitt's new equity will be privately held. All of the Company's existing common stock will be cancelled upon Jackson Hewitt's emergence from bankruptcy. On May 23, 2011, the Debtors commenced solicitation of votes on the Plan from the lenders. No other classes of creditors or stockholders were solicited, as each such class is either being paid in full or receiving no recovery and hence, is deemed either to accept or reject the Plan, respectively. The Debtors received overwhelming acceptances to the Plan from the lenders. Mark McDermott, Esq., at Skadden Arps, told the Bankruptcy Court at a May 25 hearing that investor and financier Bayside Capital is in line to be "a significant majority" owner of Jackson Hewitt. Bayside Capital has $4.5 billion under management. Bayside is the largest of 10 secured lenders that Jackson Hewitt owes a total of $357 million. Mr. McDermott also told the Court that Jackson Hewitt, worth an estimated $225 million, does not have sufficient value to cover the secured debt. The Court set a July 8 court date to consider confirmation of Jackson Hewitt's Chapter 11 plan. JOHNSON & ASSOCIATES: Case Summary & 20 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Johnson & Associates Real Estate, Inc. dba Johnson Homes 611 E. Academy Street Cherryville, NC 28021 Bankruptcy Case No.: 11-31641 Chapter 11 Petition Date: June 23, 2011 Court: United States Bankruptcy Court Western District of North Carolina (Charlotte) Judge: George R. Hodges Debtor's Counsel: Richard M. Mitchell, Esq. MITCHELL & CULP, PLLC 1001 Morehead Square Drive, Suite 330 Charlotte, NC 28203 Tel: (704) 333-0630 Fax: (704) 333-4975 E-mail: rmmatty@mitchellculp.com Scheduled Assets: $887,998 Scheduled Debts: $1,471,404 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb11-31641.pdf The petition was signed by Robert Ray Johnson, president. JOSEPH PALOMBI: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Joseph J. Palombi, MD, PC 8424 Dorsey Circle Manassas, VA 20110 Bankruptcy Case No.: 11-14615 Chapter 11 Petition Date: June 23, 2011 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Robert G. Mayer Debtor's Counsel: Madeline A. Trainor, Esq. CYRON & MILLER, LLP 100 N. Pitt Street, Suite 200 Alexandria, VA 22314 Tel: (703) 299-0600 Fax: (703) 299-0603 E-mail: mtrainor@cyronmiller.com Estimated Assets: $0 to $50,000 Estimated Debts: $100,001 to $500,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vaeb11-14615.pdf The petition was signed by Joseph J. Palombi, MD, president. JTM DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: JTM Development Corp. 3704 Pacific Avenue, Suite 200 Virginia Beach, VA 23451 Bankruptcy Case No.: 11-72916 Chapter 11 Petition Date: June 26, 2011 Court: United States Bankruptcy Court Eastern District of Virginia (Norfolk) Judge: Stephen C. St. John Debtor's Counsel: John D. McIntyre, Esq. WILSON & MCINTYRE, PLLC 500 East Main Street, Suite 920 Norfolk, VA 23510 Tel: (757) 961-3900 E-mail: jmcintyre@wmlawgroup.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vaeb11-72916.pdf The petition was signed by John Mamoudis, owner/president. KEARNEY LEASING: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Kearney Leasing, LLC 5309 Parklane Drive Suite 2 Kearney, NE 688458 Bankruptcy Case No.: 11-41725 Chapter 11 Petition Date: June 22, 2011 Court: United States Bankruptcy Court District of Nebraska (Lincoln Office) Debtor's Counsel: Galen E. Stehlik, Esq. LAURITSEN, BROWNELL, BROSTROM, STEHLIK 724 W. Koenig P.O. Box 400 Grand Island, NE 68802 Tel: (308) 382-8010 Fax: (308) 382-8018 E-mail: galens@lauritsenlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/neb11-41725.pdf The petition was signed by Jeffrey S. Sikes, managing member of Kearny Culvers, LLC, sole owner. KOBRA EFS: Sec. 341 Creditors' Meeting Set for July 25 ------------------------------------------------------ The United States Trustee for Region 17 will convene a Meeting of Creditors pursuant to Sec. 341(a) of the Bankruptcy Code in the Chapter 11 cases of Kobra EFS and its affiliates on July 25, 2011, at 2:30 p.m. at Office of the UST (7-500). The last day to oppose discharge in the cases is Sept. 23, 2011. Proofs of claim are due by Oct. 24, 2011. The Bankruptcy Court separately set a Status Conference also on July 25, 2011, at 10:00 a.m. at Sacramento Courtroom 35, Department C. About Kobra EFS and Fairway Commons II Kobra EFS, in Roseville, California, filed for Chapter 11 bankruptcy (Bankr. E.D. Calif. Case No. 11-35250) on June 20, 2011. Affiliates that also sought Chapter 11 protection are Fairway Commons II, LLC (Case No. 11-35255) and Eureka Ridge, LLC (Case No. 11-35256). Judge Christopher M. Klein presides over the case. Paul A. Warner, Esq., serves as the Debtors' bankruptcy counsel. Kobra EFS and Fairway Commons II separately listed $10 million to $50 million in both assets and debts. Affiliates that previously sought Chapter 11 protection are: Entity Case No. Petition Date ------ -------- ------------- Kobra Petroleum I, LLC 11-23348 02/10/11 Sierra Valley Associates, Inc. 09-40212 09/18/09 Central Valley Food Services, Inc. 09-40214 09/18/09 Kobra Associates, Inc. 09-40068 09/18/09 Food Service Management, Inc. 09-40066 09/18/09 Douglas Pointe, LLC 09-32854 06/23/09 Rocky Ridge Center, LLC 08-38105 12/09/08 Kobra Properties 08-37271 11/25/08 Vernon Street Associates, LLC 08-37273 11/25/08 Kobra Preserve, LLC 08-37272 11/25/08 KTLA, LLC: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------- Debtor: KTLA, LLC 62 First Street San Francisco, CA 94105 Bankruptcy Case No.: 11-32401 Chapter 11 Petition Date: June 27, 2011 Court: U.S. Bankruptcy Court Northern District of California (San Francisco) Judge: Thomas E. Carlson Debtor's Counsel: Reno F.R. Fernandez, Esq. MACDONALD AND ASSOC. 221 Sansome Street San Francisco, CA 94104 Tel: (415)362-0449 E-mail: r.fernandez@macdonaldlawsf.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Graham Seel, SVP, California Mortgage and Realty. Debtor's List of eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Los Angeles County Tax Collector Real Property Taxes $71,961 P.O. Box 54018 Los Angeles, CA 90054-0018 Los Angeles County Tax Collector Real Property Taxes $66,389 P.O. Box 54018 Los Angeles, CA 90054-0018 Los Angeles County Tax Collector Real Property Taxes $36,439 P.O. Box 54018 Los Angeles, CA 90054-0018 Los Angeles County Tax Collector Real Property Taxes $32,000 Bear Contractors Inc. Maintenance $29,740 City of Los Angeles Housing Fees $8,266 Specialty Fitness Fitness Equipment/ $115 Service Wal-Mart Stores, Inc. Supplies $90 LANDAMERICA FIN'L: Trustee Hits Executives With Fraud Suit ---------------------------------------------------------- Carolina Bolado at Bankruptcy Law360 reports that the liquidation trustee charged with recovering money for creditors of LandAmerica Financial Group Inc. sued the company's executives Friday in Virginia bankruptcy court, claiming they should have anticipated liquidity problems with a subsidiary's auction rate securities. According to Law360, LFG Liquidation trustee Bruce H. Matson contends that the executives of the title insurance underwriter and its subsidiary LandAmerica 1031 Exchange Services Inc. breached their fiduciary duty to shareholders by failing to act in the face of an impending crisis that contributed to the company's demise. About LandAmerica Financial LandAmerica Financial Group, Inc., provided real estate transaction services with offices nationwide and a vast network of active agents. LandAmerica Financial Group and its affiliate LandAmerica 1031 Exchange Services, Inc. filed for Chapter 11 protection Nov. 26, 2008 (Bankr. E.D. Va. Lead Case No. 08-35994). Attorneys at Willkie Farr & Gallagher LLP and McGuireWoods LLP served as co-counsel. Zolfo Cooper served as the restructuring advisor. Epiq Bankruptcy Solutions served as claims and notice agent. Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner & Beran, PLC, served as counsel to the Creditors Committee of 1031 Exchange. Bingham McCutchen LLP and LeClair Ryan served as counsel to the Creditors Committee of LFG. In its bankruptcy petition, LFG reported total assets of $3,325,100,000, and total debts of $2,839,800,000 as of Sept. 30, 2008. On March 6, 2009, affiliate LandAmerica Assessment Corporation, aka National Assessment Corporation, filed its own Chapter 11 petition. Affiliate LandAmerica Title Company filed for for Chapter 11 relief on March 27, 2009. LandAmerica Credit Services, Inc., filed for Chapter 11 in July 2009. LandAmerica filed a Joint Plan of Liquidation on Sept. 9, 2009. The Bankruptcy Court confirmed that plan on Nov. 23, 2009, and the plan took effect on Dec. 7, 2009. LENNY DYKSTRA: SaveLenny.com Solicits Donations From Fans --------------------------------------------------------- Zachary Cox at NESN reports that SaveLenny.com has been created in an attempt to solicit donations to former Mets and Phillies star Lenny Dykstra's bail payment. According to the report, fans can donate money via Paypal, which also features a glowing profile of "Nails" and letters from fans, including one from a man who describes how Dykstra embodies "all of the qualities and traits [you] will need to succeed in life." The report says, although SaveLenny.com is set up to appear fan- created, NBCSports' Josiah Schlatter points out that the domain is registered to Mr. Dykstra's investment company, Nails Investments. SaveLenny.com said the $500,000 needed for collateral on Mr. Dykstra's bail has been secured, but the former center fielder still needs $40,000 to $50,000 in cash to pay a bail bond agent. He will remain locked up until that money is paid. About Lenny Dykstra Lenny Dykstra is a former Major League Baseball all-star player. He was center fielder for the New York Mets and Philadelphia Phillies. He filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 09-18409) on July 7, 2009, in Woodland Hills, California. The Law Office of M. Jonathan Hayes, in Northridge, California, represents the Debtor. The Debtor estimated up to $50,000 in assets and $10 million to $50 million in debts in his Chapter 11 petition. A Chapter 11 trustee was appointed in September 2009, and the case was converted to a liquidation in Chapter 7 on November 20, 2009. The trustee -- Arturo M. Cisneros -- was investigating the disposition of personal property both before and after the Chapter 11 filing. In August 2010, Mr. Cisneros stepped down as Chapter 7 trustee following issues with his failing to disclose the extent of his business with J.P. Morgan Chase & Co., which happens to be largest creditor in Mr. Dykstra's case. LIBBEY INC: Stephanie Streeter Named Chief Executive Officer ------------------------------------------------------------ The Board of Directors of Libbey Inc. announced that Stephanie A. Streeter has been appointed Chief Executive Officer and will be elected to the Libbey Board of Directors effective Aug. 1, 2011. An accomplished public company CEO and corporate director, Streeter brings to Libbey a diverse background. She has led consumer-facing, industrial manufacturing and service businesses and she has a solid history of building world-class leadership teams that drive business success and innovation. Appointed by the United States Olympic Committee Board of Directors, on which she served from 2004 until 2009, Ms. Streeter served as interim Chief Executive Officer of the United States Olympic Committee from March 2009 to March 2010. Prior to that Ms. Streeter was Chairman, President and CEO of Banta Corporation, a $1.6 billion global market leader in printing and supply-chain management and a public company listed on the NYSE. She served as CEO of Banta from 2002 to 2007, when RR Donnelly & Sons Company acquired Banta. Streeter currently serves on the Boards of Directors of the Goodyear Tire and Rubber Company, Kohl's Corporation, the Green Bay Packers (NFL), and Catalyst (a premier non-profit working to expand opportunities for women in business). William A. Foley, who has been a director of Libbey since 1994, has been named Chairman of the Board. Mr. Foley currently serves as Chairman and CEO of Blonder Home Accents. Mr. Foley is the chair of the Nominating and Governance Committee and a member of the Compensation Committee of the Libbey board of directors. Commenting on the appointment of Ms. Streeter as Libbey's new CEO, Mr. Foley said, "Stephanie is an experienced public company CEO with a proven track record running a complex and capital intensive business." Current Chairman and Chief Executive Officer John F. Meier announced in February 2011 his intention to retire this year. "As my forty one year career with Libbey draws to a conclusion, I look forward to beginning a new journey and I am confident that Stephanie will continue to build on Libbey's many successes." Ms. Streeter said, "I look forward to working with John to achieve a seamless transition and I am excited to have the opportunity to drive the improving performance and cultural transition of the Company. Profitably delivering quality and innovative products to our customers, continuing to reduce leverage and building shareholder value will be key priorities in the coming year." About Libbey Inc. Based in Toledo, Ohio, since 1888, Libbey, Inc., operates glass tableware manufacturing plants in the United States in Louisiana and Ohio, as well as in Mexico, China, Portugal and the Netherlands. Libbey supplies tabletop products to foodservice, retail, industrial and business-to-business customers in over 100 countries. The Company's balance sheet at March 31, 2011, showed $778.87 million in total assets, $758.58 million in total liabilities and $20.29 in million total shareholders' equity. * * * Libbey carries 'B' issuer credit ratings, with stable outlook, from Standard & Poor's Ratings Services. On Oct. 28, 2009, Libbey restructured a portion of its debt by exchanging the old 16% Senior Subordinated Secured Payment-in- Kind Notes due December 2011 of subsidiary Libbey Glass Inc., having an outstanding principal amount as of October 28, 2009, of $160.9 million for (i) $80.4 million principal amount of new Senior Subordinated Secured Payment-in-Kind Notes due 2021 of Libbey Glass, and (ii) 933,145 shares of common stock and warrants exercisable for 3,466,856 shares of common stock of Libbey Inc. On Feb. 8, 2010, Libbey used the proceeds of a $400.0 million debt offering of 10.0% Senior Secured Notes due 2015 of Libbey Glass Inc., as well as cash on hand, to (i) repurchase the $306.0 million then outstanding Floating Rate Senior Secured Notes due 2011 of Libbey Glass, (ii) repay the $80.4 million New PIK Notes and (iii) pay related fees and expenses. Concurrent with the closing of the offering of the Senior Secured Notes, Libbey entered into an amended and restated $110 million Asset Based Loan facility which, among other terms, extended the maturity date to 2014. LOCATION BASED TECH: Inks Lease Agreement with Irvine Company ------------------------------------------------------------- Location Based Technologies, Inc., entered into a lease agreement with The Irvine Company LLC to lease approximately 4,700 square feet of general office space located at 49 Discovery, Suite 260, Irvine, California, for base rent ranging from $6,199 to $7,193 per month over the 48 month lease term. The lease term is from July 1, 2011, through June 30, 2015. The lease agreement is available for free at http://is.gd/F39ImP About Location Based Technologies Headquartered in Irvine, Calif., Location Based Technologies, Inc. (OTC BB: LBAS) -- http://www.locationbasedtech.com/-- designs, develops, and sells personal, pet, and vehicle locator devices and services. As reported in the Troubled Company Reporter on Dec. 22, 2010, Comiskey & Company, in Denver, Colo., expressed substantial doubt about Location Based Technologies' ability to continue as a going concern following its results for the fiscal year ended August 31, 2010. The independent auditors noted that the Company has incurred recurring losses since inception and has an accumulated deficit in excess of $28,800,000 and a working capital deficit in excess of $5,900,000. The Company's balance sheet at Feb. 28, 2011, showed $1.75 million in total assets, $6.96 million in total liabilities, and a $5.21 million stockholders' deficit. MAJESTIC TOWERS: Creditors Have Until July 8 to File Claims ----------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California set July 8, 2011, as deadline for creditors of Majestic Towers Inc. and 3515 Wilshire LLC to file proofs of claim. Los Angeles, California-based, Majestic Towers, Inc., filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 11-28407) on April 28, 2011. Bankruptcy Judge Sheri Bluebond presides the case. Victor A. Sahn, Esq., and Mark S. Horoupian, Esq., at Sulmeyerkupetz, A Professional Corporation, in Los Angeles, California, serve as the Debtor's counsel. The Debtor disclosed $7,685,411 in assets and $9,237,464 in liabilities as of the Chapter 11 filing. MAQ MANAGEMENT: Sec. 341 Creditors' Meeting Set for Aug. 1 ---------------------------------------------------------- The United States Trustee for Region 21 will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of MAQ Management, Inc., on Aug. 1, 2011, at 1:30 p.m. at 1515 N Flagler Dr Room 870, West Palm Beach. The deadline to file a complaint to determine dischargeability of certain debts is Sept. 30, 2011. Proofs of claim are due by Oct. 31, 2011. About MAQ Management Based in Boca Raton, Florida, MAQ Management, Inc., and three other affiliates serve as commercial landlords to convenience stores and gas stations in primarily in South Florida. They filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to 11-26574) on June 15, 2011. Affiliates that sought Chapter 11 protection are Super Stop Petroleum, Inc., Super Stop Petroleum I, Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball presides over the case. Lawyers at Talarchyk Merrill, LLC, serve as the Debtors' counsel. MAQ Management estimated assets and debts of $1 million to $10 million. Super Stop estimated assets and debts of $10 million to $50 million. The petitions were signed by Mahammad A. Qureshi, CEO. MAQ MANAGEMENT: Status Conference Set for July 7 ------------------------------------------------ The Bankruptcy Court will hold an initial Chapter 11 status conference in the Chapter 11 cases of MAQ Management, Inc., and its affiliated debtors on July 7, 2011, at 1:30 p.m. at 1515 N Flagler Dr Room 801 Courtroom B, West Palm Beach. About MAQ Management Based in Boca Raton, Florida, MAQ Management, Inc., and three other affiliates serve as commercial landlords to convenience stores and gas stations in primarily in South Florida. They filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to 11-26574) on June 15, 2011. Affiliates that sought Chapter 11 protection are Super Stop Petroleum, Inc., Super Stop Petroleum I, Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball presides over the case. Lawyers at Talarchyk Merrill, LLC, serve as the Debtors' counsel. MAQ Management estimated assets and debts of $1 million to $10 million. Super Stop estimated assets and debts of $10 million to $50 million. The petitions were signed by Mahammad A. Qureshi, CEO. MAQ MANAGEMENT: Wins Interim OK to Hire Talarchyk Merrill --------------------------------------------------------- The Bankruptcy Court granted interim approval to the application of MAQ Management, Inc., and its affiliated debtors to employ Talarchyk Merrill, LLC, as their counsel. The Court will conduct a final hearing July 7, 2011, on the Application at 1:30 p.m. at the United States Bankruptcy Court, Flagler Waterview Building, 1515 N. Flagler Drive, 8th floor, Courtroom B, West Palm Beach, Florida. The Debtors propose to pay Talarchyk Merrill in accordance with its hourly rates: Associates and members $480 - $170 Paralegals and legal assistants $170 - $130 In their Application, the Debtors said Talarchyk Merrill has provided restructuring services prepetition. On various dates beginning from and after June 15, 2011, Talarchyk Merrill requested and received in total $37,727 as retainer. Aside from the retainer, the firm, within one year of the petition date, received $20,000 for its prepetition services to the Debtors. Tina M. Talarchyk, Esq., attests that her firm does not hold or represent an interest adverse to the Debtors' estates and is a "disinterested person," as that term is defined in Sec. 101(14) of the Bankruptcy Code. About MAQ Management Based in Boca Raton, Florida, MAQ Management, Inc., and three other affiliates serve as commercial landlords to convenience stores and gas stations in primarily in South Florida. They filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to 11-26574) on June 15, 2011. Affiliates that sought Chapter 11 protection are Super Stop Petroleum, Inc., Super Stop Petroleum I, Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball presides over the case. Lawyers at Talarchyk Merrill, LLC, serve as the Debtors' counsel. MAQ Management estimated assets and debts of $1 million to $10 million. Super Stop estimated assets and debts of $10 million to $50 million. The petitions were signed by Mahammad A. Qureshi, CEO. MAQ MANAGEMENT: Asks Bankruptcy Court to Stay BB&T Actions ---------------------------------------------------------- MAQ Management, Inc., and its affiliated debtors are suing Branch Banking and Trust Company from continuing state court actions against affiliates, guarantors and officers of the Debtors. BB&T has pending in the Ninth Circuit Court in and for Orange County, Florida, Case No.: 09-CA-35158, an action to collect to foreclosure and collect a debt against the Debtors and Mahammad A. Qureshi, the president of each of the Debtors and an alleged guarantor on various liabilities owed by the Debtors. BB&T has acknowledged the fact that the automatic stay afforded by 11 U.S.C. Sec. 362 prohibits the continuation of the action as to the Debtors, but is proceeding with its action against Mr. Qureshi. The Debtors contend that the state court action impedes and limits the actions and authorities of the Bankruptcy Court by dealing with matters inexorably linked to property of the four bankruptcy estates as well as affecting the ability of Mr. Qureshi to focus his efforts and resources on finalizing the schedules and statements due, preparing and authorizing "first day" motions of a critical nature and potentially limiting his ability to provide new value which may be required to ultimately prosecute a successful reorganization of the Debtors. Mr. Qureshi, according to the complaint, is involved in the day-to-day operations of the Debtors and is critical to the success of the Chapter 11 cases. Mr. Qureshi is merely a guarantor and not a co-debtor on the debts he is liable for. Accordingly, until the issue of liability is resolved as to the Debtors, it is not possible to know how much, if anything, is owed by him. Branch Banking & Trust Company is represented in the case by: Kevin A. Reck, Esq. FOLEY & LARDNER LLP 111 North Orange Avenue, Suite 1800 Orlando, FL 32801-2386 Tel: 407-244-3269 E-mail: kreck@foley.com khall@foley.com The Debtors separately have filed a motion to enjoin state court actions against their affiliates, guarantors and officers. Fifth Third Bank, which filed a foreclosure action against non- debtor Super Stop #407, Inc., Denise Qureshi and Mr. Qureshi, disputed the motion, saying there are no unusual circumstances present which would justify the extraordinary remedy of injunctive relief in favor of the non-debtor parties in the state court action. Fifth Third Bank is represented by: W. Glenn Jensen, Esq. Mychal J. Katz, Esq. ROETZEL & ANDRESS P.O. Box 6507 Orlando, FL 32802-6507 Tel: 407-896-2224 Fax: 407-835-3596 E-mail: gjensen@ralaw.com mkatz@ralaw.com. About MAQ Management Based in Boca Raton, Florida, MAQ Management, Inc., and three other affiliates serve as commercial landlords to convenience stores and gas stations in primarily in South Florida. They filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to 11-26574) on June 15, 2011. Affiliates that sought Chapter 11 protection are Super Stop Petroleum, Inc., Super Stop Petroleum I, Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball presides over the case. Lawyers at Talarchyk Merrill, LLC, serve as the Debtors' counsel. MAQ Management estimated assets and debts of $1 million to $10 million. Super Stop estimated assets and debts of $10 million to $50 million. The petitions were signed by Mahammad A. Qureshi, CEO. MARKET STREET: Court Approves Eskew Dumez Ripple as Architects -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Louisiana authorized Market Street Properties, LLC, to employ Eskew Dumez Ripple/Manning Architects as architects. Eskew+Dumez+Ripple is a design-driven studio based in New Orleans which produces diverse projects in architecture and planning. Eskew will provide the Debtor with presentations of master plans for the development of the Debtor's properties, such as an approximately 500,000 square foot power plant, two substations and three parcels of vacant land. In particular, Eskew will assist the Debtor in presenting plans at scale the International Convention of Shopping Centers in Las Vegas, Nevada, and in development of final master plans thereafter. Eskew will be paid a flat fee of $320,000 for the services described in the Professional Services Agreement. In addition to the flat fee, the Debtor and Skew anticipate that in order to provide necessary traffic and transportation planning, Eskew will be required to pay a fee to a sub-consultant, Urban Systems, a total amount of $156,500 and that the Debtor will reimburse Eskew for such amount. Additionally, the Profession Services Agreement contemplates that Eskew will be reimbursed for all expenses incurred by it in connection with the services provided, including identifiable expenses that would not have been incurred except for the engagement on behalf of the particular client. To the best of the Debtor's knowledge, Eskew does not hold any interest adverse to the Debtor or the Debtor's estate. About Market Street Properties Oceanside, New York-based Market Street Properties, L.L.C., owns an approximately 500,000 square-foot power plant, two substations, and three parcels of vacant land. It filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 09-14172) on Dec. 23, 2009, represented by Christopher T. Caplinger, Esq., Joseph Patrick Briggett, Esq., and Stewart F. Peck, Esq., at LUGENBUHL WHEATON PECK RANKIN & HUBBARD, in New Orleans. The Company disclosed $52,404,026 in assets and $26,848,596 in liabilities as of the Chapter 11 filing. Cupkovic Architecture LLC serves as the Debtor's architect; and Patrick J. Gros, CPA, as accountant. James E. Fitzmorris, Jr. serves as political consultant and advisor. No trustee or examiner has been appointed in the case. MARKET STREET: Hires Greenberg Traurig for Environmental Matters ---------------------------------------------------------------- Market Street Properties, LLC, obtained permission from the U.S. Bankruptcy Court for the Eastern District of Louisiana to employ Greenberg Traurig LLP, as special environmental counsel. Greenberg will represent the Debtor with regard to resolving certain complex environmental matters relating to its properties. The hourly rates of Greenberg's personnel are: Curtis B. Toll $525 Samantha Corson $440 Paul McIntyre $425 Adam Silverman $220 To the best of the Debtors' knowledge, Greenberg is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Market Street Properties Oceanside, New York-based Market Street Properties, L.L.C., owns an approximately 500,000 square-foot power plant, two substations, and three parcels of vacant land. It filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 09-14172) on Dec. 23, 2009, represented by Christopher T. Caplinger, Esq., Joseph Patrick Briggett, Esq., and Stewart F. Peck, Esq., at LUGENBUHL WHEATON PECK RANKIN & HUBBARD, in New Orleans. The Company disclosed $52,404,026 in assets and $26,848,596 in liabilities as of the Chapter 11 filing. Cupkovic Architecture LLC serves as the Debtor's architect; and Patrick J. Gros, CPA, as accountant. James E. Fitzmorris, Jr. serves as political consultant and advisor. No trustee or examiner has been appointed in the case. MARKET STREET: To Employ Cohen Financial as Financial Advisor ------------------------------------------------------------- The U.S. Bankruptcy Court Eastern District Of Louisiana has approved Market Street Properties, L.L.C.'s application to employ Cohen Financial as financial adviser. As financial advisor, Cohen will: -- assist the Debtor in analyzing and evaluating the business, operations and financial position of the Debtor; -- with the Debtors' assistance prepare, after completing a review of the Debtor, a brief summary of the Debtor, to be utilized in the marketing of the Debtor for any type of transaction; and -- assist the Debtor in developing a strategy to effectuate a transaction, including identifying and soliciting potential investor prospects and marketing a transaction. The Debtor proposes to pay a fixed monthly fee of $5,000 until Dec. 31, 2011. Upon approval of the terms of engagement letter, the Debtor will provide Cohen a $7,000 retainer. To the best of the Debtors' knowledge, Cohen is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Market Street Properties Oceanside, New York-based Market Street Properties, L.L.C., owns an approximately 500,000 square-foot power plant, two substations, and three parcels of vacant land. It filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 09-14172) on Dec. 23, 2009, represented by Christopher T. Caplinger, Esq., Joseph Patrick Briggett, Esq., and Stewart F. Peck, Esq., at LUGENBUHL WHEATON PECK RANKIN & HUBBARD, in New Orleans. The Company disclosed $52,404,026 in assets and $26,848,596 in liabilities as of the Chapter 11 filing. Cupkovic Architecture LLC serves as the Debtor's architect; and Patrick J. Gros, CPA, as accountant. James E. Fitzmorris, Jr. serves as political consultant and advisor. No trustee or examiner has been appointed in the case. MERRITT AND WALDING: Sec. 341 Creditors' Meeting Set for July 12 ---------------------------------------------------------------- The Bankruptcy Administrator will convene a First Meeting of Creditors pursuant to Sec. 341(a) of the Bankruptcy Code in the Chapter 11 case of Merritt and Walding Properties LLP on July 12, 2011, at 2:00 p.m. at Meeting Room, 182 St. Francis Street, in Mobile, Alabama. Objections to discharge are due by Sept. 12, 2011. About Merritt and Walding Properties Merritt and Walding Properties, LLP, in Pt. Clear, Alabama, filed for Chapter 11 bankruptcy (Bankr. S.D. Ala. Case No. 11-02322) on June 10, 2011. Irvin Grodsky, P.C., serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Richard T. Merritt and R. Fred Walding, as general partners. An affiliate of the debtor, Richard T. Merritt (Bankr. S.D. Ala. Case No. 11-00380) filed for bankruptcy on Feb. 1, 2011. MERRITT AND WALDING: Asks Court to Approve Irvin Grodsky Hiring --------------------------------------------------------------- Merritt and Walding Properties LLP seeks Bankruptcy Court permission to employ as bankruptcy counsel: IRVIN GRODSKY P.C. P.O. BOX 3123 Mobile, AL 36652-3123 Tel: (251) 433-3657 E-mail: igpc@irvingrodskypc.com The Debtor has paid the firm $1,039 for the court filing fee and $10,000 as retainer. The firm charges at $250 per hour for Irvin Grodsky, Esq., $200 per hour for Terrie S. Owens, and $60 an hour for paralegal. About Merritt and Walding Properties Merritt and Walding Properties, LLP, in Pt. Clear, Alabama, filed for Chapter 11 bankruptcy (Bankr. S.D. Ala. Case No. 11-02322) on June 10, 2011. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Richard T. Merritt and R. Fred Walding, as general partners. An affiliate of the debtor, Richard T. Merritt (Bankr. S.D. Ala. Case No. 11-00380) filed for bankruptcy on Feb. 1, 2011. MILLER HEALTH: Organizational Meeting to Form Panel on July 6 ------------------------------------------------------------- Roberta DeAngelis, United States Trustee for Region 3, held an organizational meeting on July 6, 2011, at 10:00 a.m. in the bankruptcy case of Miller Health Care, LLC dba, Lawrenceville Nursing Rehabilitation Center. The meeting will be held at: United States Trustee's Office One Newark Center 1085 Raymond Blvd. 21st Floor, Room 2106 Newark, NJ 07102 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Miller Health Care, LLC, filed a Chapter 11 petition (Banrk. D. N.J. Case No. 11-28615) on June 18, 2011, in Trenton, New Jersey. The Debtor has tapped Scott M. Zauber, Esq., at Subranni Zauber LLC, in Atlantic City, as counsel. In its schedules, Miller disclosed $455,462 in assets and $3,139,028 in liabilities. MINOR FAMILY: DLA Piper Withdraws as Counsel Due to Unpaid Fees --------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Virginia granted DLA Piper LLP (US) leave to withdraw as counsel of record for Minor Family Hotels, LLC, and Halsey M. Minor. In connection, with the order to withdraw as counsel, the Debtor has withdrawn it motion to employ DLA Piper as special counsel. DLA Piper related that the Debtor lacked the ability to make any current payments toward the postpetition fees and costs. In addition, Mr. Minor has not made any payments on account of the postpetition fees and costs. DLA Piper added that the adversary proceedings has resulted in more than $2 million in fees and costs. Unpaid prepetition fees and costs for the state court litigation relating to or removed to the adversary proceedings exceed $3 million. About Minor Family Charlottesville, Virginia-based Minor Family Hotels, LLC, is the owner of the Landmark Hotel project in downtown Charlottesville, Virginia. Minor Family filed for Chapter 11 bankruptcy protection (Bankr. W.D. Va. Case No. 10-62543) on September 1, 2010. Benjamin Webb King, Esq., at Woods Rogers Hazlegrove, serves as bankruptcy counsel. Minor Family estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. As reported by the Troubled Company Reporter on September 3, 2010, Dow Jones' DBR Small Cap said Minor Family Hotels filed for Chapter 11 protection to resolve "burdensome" lawsuits that have delayed the hotel's construction. Eight lawsuits have been filed in connection with the project. MINOR FAMILY: Has Until Sept. 1 to Propose Chapter 11 Plan ---------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Virginia extended Minor Family Hotels, LLC's exclusive periods to file and solicit acceptances for the proposed chapter 11 plan until Sept. 1, 2011, and Nov. 1, respectively. Charlottesville, Virginia-based Minor Family Hotels, LLC, is the owner of the Landmark Hotel project in downtown Charlottesville, Virginia. Minor Family filed for Chapter 11 bankruptcy protection (Bankr. W.D. Va. Case No. 10-62543) on September 1, 2010. Benjamin Webb King, Esq., at Woods Rogers Hazlegrove, serves as bankruptcy counsel. Minor Family estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. As reported by the Troubled Company Reporter on September 3, 2010, Dow Jones' DBR Small Cap said Minor Family Hotels filed for Chapter 11 protection to resolve "burdensome" lawsuits that have delayed the hotel's construction. Eight lawsuits have been filed in connection with the project. MOKLER PROPERTIES: Case Summary & 6 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Mokler Properties, Inc. 110 Cimarron Ct. Oshkosh, WI 54902 Bankruptcy Case No.: 11-29932 Chapter 11 Petition Date: June 22, 2011 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Judge: Pamela Pepper Debtor's Counsel: Leonard G. Leverson, Esq. LEVERSON & METZ S.C. 225 East Mason Street, Suite 100 Milwaukee, WI 53202 Tel: (414) 271-8503 E-mail: lgl@levmetz.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 six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb11-29932.pdf The petition was signed by Christopher J. Mokler, president. MYSPACE INC: Acquired by Specific Media for $35 Million ------------------------------------------------------- Specific Media, a digital media company, has acquired MySpace from News Corporation. As part of the agreement, News Corporation will take a minority equity stake in Specific Media. Additional terms of the agreement are confidential and will not be disclosed. Matthew Flamm, writing for Crain's New York Business, reports that MySpace will be sold for $35 million, down from the $580 million News Corp. paid six years ago. "There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest. We look forward to combining our platforms to drive the next generation of digital innovation." "MySpace is a recognized leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online," said Tim Vanderhook, Specific Media CEO. "There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest. We look forward to combining our platforms to drive the next generation of digital innovation." Crain's says Specific Media was reportedly one of four bidders that included MySpace co-founders Chris DeWolfe and Tom Anderson, who each had private equity backing. Crain's also reports that News Corp., which reportedly held onto a less than 5% stake in MySpace, had been determined to unload the site before the close of its fiscal year on Thursday. According to reports, it had hoped MySpace would fetch $100 million. A spokesman for News Corp. declined to comment on the sale. MySpace CEO Mike Jones is expected to leave the company after a brief transition period. In a memo to employees, he said the sale would be followed by restructurings that would involve a "significant reduction in our work force," according to Bloomberg. About Specific Media Specific Media -- http://www.specificmedia.com/-- is an innovative global interactive media company that enables advertisers to connect with consumers in meaningful, impactful and relevant ways. Founded in 1999 by brothers Tim, Chris and Russell Vanderhook, Specific Media is currently headquartered in Irvine, CA and operates offices around the world. About Myspace MySpace Inc. -- http://www.myspace.com/-- is a social networking site. The company is headquartered in Beverly Hills, California. NATIONAL ENVELOPE: Court Oks Justis Law Firm for Linde Litigation ----------------------------------------------------------------- Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware granted National Envelope Corporation and its debtor- affiliates authority to employ The Justis Law Firm LLC as their special litigation counsel for the purpose of reviewing, analyzing, and prosecuting claims relating to the "Linde Litigation." The fee owed to the firm will be determined on a contingent basis. A contingent fee of 20% will be paid on all monies collected from settling potentially responsible parties. A contingent fee of 25% will be paid on (i) any claims settled at any time during the one month period prior to the trial of any lawsuit, of after the commencement of trial or any appeal on any lawsuit or (ii) a judgment in the Debtors' favor. The Debtors assure the Court that the firm is "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About NEC Holdings Uniondale, New York-based National Envelope Corporation was the largest manufacturer of envelopes in the world with 14 manufacturing facilities and 2 distribution centers and approximately 3,500 employees in the U.S. and Canada. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 (Bankr. D. Del. Lead Case No. 10-11890) on June 10, 2010. Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel to the Debtors. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the claims and notice agent. Bradford J. Sandler, Esq., and Robert J. Feinstein, Esq., at Pachuiski Stang Ziehl & Jones LLP, represent the Official Committee of Unsecured Creditors. Morgan Joseph & Co., Inc., is the financial advisor to the Committee. NEC Holdings estimated assets and debts of $100 million to $500 million in its Chapter 11 petition. In September 2010, National Envelope's key assets were bought in a roughly $208 million deal by The Gores Group LLC, a West Coast private equity firm that manages about $2.9 billion of capital. NEC HOLDINGS: Seeks Stay Pending Appeal of Arbitration Denial ------------------------------------------------------------- ACE American Insurance Company and ESIS, Inc. seek a stay pending their appeal of Judge Peter Walsh's denial of their motion to compel arbitration of a cash collateral dispute in the cases of NEC Holdings Corp., et al. As reported by the Troubled Company Reporter, Bloomberg News cited that insurance provider Ace American unsuccessfully argued that its cash collateral dispute with the Debtors should be sent to arbitrators under an arbitration clause in the parties' insurance agreement. The dispute stems from the Debtors asking permission from the Delaware Court to pay bills using what they claim is excess cash held as collateral by Ace. In a June 13, 2011 order, Judge Walsh ruled that the dispute isn't subject to arbitration. Judge Walsh said he'd rule on the other aspects of the dispute at a later date, according to Bloomberg. Ace filed a notice of appeal on June 15 of Judge Walsh's arbitration denial order. Ace argues that it will incur extraordinary risk and irreparable harm if the Debtors are permitted to use the Collateral, even in part or even on a temporary basis: the insurance provider would be required to release its lien, and would, as a practical matter, forever be deprived of that Collateral. In contract, Ace further argues, granting the requested stay will not harm public interest. Moreover, Ace notes, the Debtors have not shown that it will be difficult to administer their cases without the requested cash collateral. Debtors Oppose Stay An appeal of the Arbitration Denial Order is frivolous and cannot proceed, the Debtors contend. Such a ruling would upset the delicate balance between secured creditors and debtors established by Congress in Section 363 of the Bankruptcy Code, the Debtors note. As a result, a stay is wholly unjustified and the Ace entities' attempt to further delay a hearing on the Cash Collateral Motion should be denied, the Debtors assert. About NEC Holdings Uniondale, New York-based National Envelope Corporation was the largest manufacturer of envelopes in the world with 14 manufacturing facilities and 2 distribution centers and approximately 3,500 employees in the U.S. and Canada. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 (Bankr. D. Del. Lead Case No. 10-11890) on June 10, 2010. Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel to the Debtors. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the claims and notice agent. Bradford J. Sandler, Esq., and Robert J. Feinstein, Esq., at Pachuiski Stang Ziehl & Jones LLP, represent the Official Committee of Unsecured Creditors. Morgan Joseph & Co., Inc., is the financial advisor to the Committee. NEC Holdings estimated assets and debts of $100 million to $500 million in its Chapter 11 petition. In September 2010, National Envelope's key assets were bought in a roughly $208 million deal by The Gores Group LLC, a West Coast private equity firm that manages about $2.9 billion of capital. NOVADEL PHARMA: Four Directors Elected at Annual Meeting -------------------------------------------------------- NovaDel Pharma Inc. held its annual meeting of stockholders on June 23, 2011. The stockholders (1) elected Mark J. Baric, Thomas E. Bonney, CPA, Charles B. Nemeroff, M.D., Ph.D., and Steven B. Ratoff to the Company's Board of Directors, (2) approved the amendment to the Company's Restated Certificate of Incorporation and (3) ratified the appointment of J.H. Cohn LLP as the Company's independent registered public accounting firm for 2011. About NovaDel Pharma Bridgewater, N.J.-based NovaDel Pharma Inc. (OTC BB: NVDL) -- http://www.novadel.com/-- is a specialty pharmaceutical company that develops oral spray formulations of marketed pharmaceutical products. The Company's patented oral spray drug delivery technology seeks to improve the efficacy, safety, patient compliance, and patient convenience for a broad range of prescription pharmaceuticals. The Company's balance sheet at March 31, 2011, showed $2.7 million in total assets, $9.4 million in total liabilities, and a stockholders' deficit of $6.7 million. As reported in the TCR on April 1, 2011, J.H. Cohn LLP, in Roseland, New Jersey, expressed substantial doubt about Novadel Pharma's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations and negative cash flows from operating activities. OAKHURST LODGE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Oakhurst Lodge, Inc. a California Corporation PO Box 0297 Oakhurst, CA 93644-0297 Bankruptcy Case No.: 11-17165 Chapter 11 Petition Date: June 22, 2011 Court: United States Bankruptcy Court Eastern District of California (Fresno) Judge: W. Richard Lee Debtor's Counsel: Peter L. Fear, Esq. LAW OFFICE OF PETER L. FEAR 7750 N Fresno St #101 Fresno, CA 93720-1145 Tel: (559) 436-6575 Fax: (559) 436-6580 E-mail: pfear@fearlaw.com Scheduled Assets: $4,795,250 Scheduled Debts: $3,821,549 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb11-17165.pdf The petition was signed by Steven Marshall, CEO. OLSEN AGRICULTURAL: Has Interim Okay to Access $675,000 DIP Loans ----------------------------------------------------------------- Judge Frank R. Alley of the U.S. Bankruptcy Court for the District of Oregon authorized, on an interim basis, Olsen Agriculture Enterprises LLC to obtain advances under the DIP Loan in the aggregate amount of $675,000 from Bacchus Capital, L.P. A hearing to consider final approval of the Debtor's request to obtain DIP Loans will be held on July 13, 2011, commencing at 10:00 a.m. The Debtor seeks authority to borrow $3,000,000 from the DIP Lender on a final basis. The Debtor said they need the financing to allow it to continue the operation of its business, pay payroll and other postpetition operating expenses, and satisfy other working capital and operational needs. The Debtor related that it anticipates that through Dec. 31, 2011, it will be required to spend, on a cumulative basis, approximately $6.2 million for its operational needs and for its restructuring costs and non- operating iterms. Over that period, the Debtor projects that it will generate approximately $4.3 million in cash from its operations. Without additional funding, the Debtor will have a negative cash position during the week of June 13, 2011, and for subsequent periods, its counsel, David A. Foraker, Esq., at Greene & Markley, P.C., in Portland, Oregon, told the Court. Pursuant to the Interim DIP Order, advances under the DIP Loan Documents will be used by the Debtor to fund, in accordance with the DIP Loan Documents, its expenses in accordance with the Approved Budget. The DIP Lender is granted an allowed superpriority administrative expense claim pursuant to Section 364(c)(1) of the Bankruptcy Code for all DIP Loan Obligations, having priority over any and all other administrative expense claims. The DIP Loan Obligations will be secured by first priority senior liens on all of the Debtors' property; first priority senior liens on that portion of the Collateral that is unencumbered property of the Debtor; and second priority liens on that portion of the Collateral subject to any non-primed liens. All DIP Loan Obligations will be due and payable, and repaid in full, in cash, on the date that is the first to occur of: (i) February 15, 2012; (ii) the effective date of a plan of reorganization confirmed in the Debtors' Chapter 11 case; (iii) conversion or dismissal of the Chapter 11 case; (iv) appointment of a trustee in the Chapter 11 case; or (v) the occurrence of an Event of Default under and as defined in the DIP Loan Documents. Interest on the DIP Loan Obligations will accrue at 12% per annum compounding daily and will be payable monthly in arrears. The default rate of interest will be 4% higher than the rate otherwise payable. According to Mr. Foraker, the Debtor's existing prepetition secured creditors -- (i) Rabo Agrifinance, Inc.; (ii) BFS International, LLC; (iii) United States of America, acting by and through the Internal Revenue Service; (iv) Ledeboer Seed, LLC; and (v) Callisons, Inc. d/b/a I.P. Callisons and Sons -- have not consented to the incurrence of the DIP Loan Obligations by the Debtor under the DIP Loan Documents and the Debtor's granting of priming liens in connection therewith. The Existing Secured Creditors are granted adequate protection of their interests in the Debtor's prepetition property in exchange for the priming of their security interests in and liens on the Prepetition Collateral by the DIP Liens being granted to the DIP Lender pursuant to the DIP Loan Documents and the Interim DIP Order. The adequate protections are: -- postpetition lien on the Collateral, which lien will be junior in priority only to (i) the DIP Liens, (ii) the Replacement Liens, and (iii) all validly perfected and enforceable security interests in and liens on the Collateral extant as of the Petition Date; and -- an administrative expense claim under Section 503(b), which claim will be junior in priority to (i) the DIP Lender's Superpriority Claim, and (ii) the superpriority administrative expense claims awarded to the Existing Secured Creditors under the Interim Cash Collateral Order and under any subsequent cash collateral orders. Prior to the occurrence of an Event of Default, the allowed fees and expenses incurred by estate professionals that may be paid prior to the occurrence of an Event of Default will be subject to an aggregate cap of $600,000. Upon the occurrence and during the continuance of an Event of Default with respect to which the DIP Lender provides written notice to the Debtor of the cessation of funding under the DIP Loan Documents, to the extent unencumbered funds are not available to pay allowed administrative expenses in full, the DIP Liens, the Superpriority Claim, the Adequate Protection Claims and the Adequate Protection Liens will be subject to the payment of the "Carve-Out," which will mean: -- an amount not to exceed $300,000 on account of all allowed professional fees and expenses incurred by the estate professionals prior to delivery of the Carve-Out Trigger Notice, but which fees and expenses will not exceed the amounts set forth in the Approved Budget for those items through the date of the notice less any amounts actually paid to or on account of such professionals with respect to that period of time; plus -- $50,000 for the payment of allowed professional fees and expenses, including those of a Chapter 7 trustee and its professionals, incurred by the estate arising after delivery of the Carve-Out Trigger Notice; plus -- fees incurred pursuant to Section 1930(a)(6) of the Judiciary and Judicial Procedures Code and fees payable to the clerk of the Bankruptcy Court, to the extent those fees were incurred prior to delivery of the Carve-Out Trigger Notice. A full-text copy of the Interim DIP Order is available for free at http://ResearchArchives.com/t/s?765a Debtor Seeks Amendment to Interim DIP Order Immediately after receiving interim authority from the Court to access DIP Loans, the Debtor asks the Court to amend the Interim DIP Order to, among other things, correct phrases stricken from the proposed Interim DIP Order submitted by the Debtor. Specifically, the Debtor wants the Court to: (a) make the findings recited in paragraph G, as lodged with the Court prior to its entry, which were stricken on page 8 of the Interim DIP Order; (b) amend paragraph 13 thereof by reinserting the sentence that was stricken on page 20 and which reads "The DIP Lender shall not be subject in any way whatsoever to the equitable doctrine of `marshaling' or any similar doctrine with respect to the Collateral"; (c) to amend paragraph 14 thereof by reinserting subsection (b) that was stricken on page 21; (d) to amend paragraph 27 thereof by reinserting subsection (a) that was stricken on page 31 and which reads "request authorization to obtain postpetition loans or other financial accommodations pursuant to Bankruptcy Code section 364(e) or (d), or otherwise, other than from DIP Lender"; and (e) in light of the deletion by the Court of the phrase "any transaction, occurrence, omission, or action, including, without limitation" in paragraph 27 on page 31 thereof, to amend subsection (ii) by adding the term "DIP Obligations" so that it will read "any action seeking to invalidate, set aside, avoid or subordinate, in whole or in part, the DIP Obligations and/or DIP Liens" and to amend subsection (iii) by adding the term "DIP Obligations" so that it will read "any action that has the effect of preventing, hindering or delaying (whether directly or indirectly) the DIP Lender's assertion, enforcement or realization on the Collateral and DIP Obligations in accordance with the DIP Loan Documents or this Interim Order." About Olsen Agricultural Enterprises Based in Monmouth, Oregon, Olsen Agricultural Enterprises LLC operates an agricultural enterprise on roughly 7,762 acres of owned and leased land located in Benton, Linn and Polk Counties. Its business is comprised principally of three divisions: (a) Olsen Seed Company, which produces and sells a variety of grass seed and grains on 5,934 acres; (b) Olsen Agriculture, which grows and sells peppermint, nursery stock, squash, hazelnuts and blueberries on 1,334 acres; and (c) Olsen Family Vineyards, which grows a variety of grapes on 494 acres and produces and sells quality wines under the "Viridian" label as well as private labels. Olsen Agricultural Enterprises is the surviving entity of a merger transaction that was consummated on June 1, 2011. In the merger transaction, Olsen Agricultural Company, Inc., an Oregon corporation, Jenks-Olsen Land Co., an Oregon general partnership, Olsen Vineyard Company, LLC, an Oregon limited liability company and The Olsen Farms Family Limited Partnership were merged with and into Olsen Agricultural Enterprises. Olsen Agricultural Enterprises filed for Chapter 11 bankrutpcy (Bankr. D. Ore. Case No. 11-62723) on June 1, 2011. Judge Frank R. Alley III presides over the case. Greene & Markley, P.C., acts as the Debtor's bankruptcy counsel. Clyde A. Hamstreet & Associates, LLC, serves as the Debtor's restructuring consultant and financial advisor. An official committee of unsecured creditors has been appointed in the case. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robin G. Olsen, operations director. For the fiscal year ended December 31, 2010, OAC reported total revenues of $6,428,880 and a net loss of ($5,791,310). At the time of the merger, on a consolidated basis, the books and records of OAC, JOLC and OVC reflected assets totaling $29.8 million and liabilities totaling $37.2 million. The fair market value of the Debtor's assets, on a going concern basis, is roughly $50 million. OLSEN AGRICULTURAL: Files Schedules of Assets and Liabilities ------------------------------------------------------------- Olsen Agricultural Enterprises LLC filed with the U.S. Bankruptcy Court for the District of Oregon, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------- ----------- A. Real Property $39,100,00 B. Personal Property $9,895,899 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $31,624,300 E. Creditors Holding Unsecured Priority Claims $135,905 F. Creditors Holding Unsecured Non-priority Claims $3,511,231 ------------ -------------- TOTAL $48,995,899 $35,271,436 A full-text copy of the Schedule is available for free at: http://bankrupt.com/misc/OLSENAGRICULTURAL_sal.pdf About Olsen Agricultural Enterprises Based in Monmouth, Oregon, Olsen Agricultural Enterprises LLC operates an agricultural enterprise on roughly 7,762 acres of owned and leased land located in Benton, Linn and Polk Counties. Its business is comprised principally of three divisions: (a) Olsen Seed Company, which produces and sells a variety of grass seed and grains on 5,934 acres; (b) Olsen Agriculture, which grows and sells peppermint, nursery stock, squash, hazelnuts and blueberries on 1,334 acres; and (c) Olsen Family Vineyards, which grows a variety of grapes on 494 acres and produces and sells quality wines under the "Viridian" label as well as private labels. Olsen Agricultural Enterprises is the surviving entity of a merger transaction that was consummated on June 1, 2011. In the merger transaction, Olsen Agricultural Company, Inc., an Oregon corporation, Jenks-Olsen Land Co., an Oregon general partnership, Olsen Vineyard Company, LLC, an Oregon limited liability company and The Olsen Farms Family Limited Partnership were merged with and into Olsen Agricultural Enterprises. Olsen Agricultural Enterprises filed for Chapter 11 bankrutpcy (Bankr. D. Ore. Case No. 11-62723) on June 1, 2011. Judge Frank R. Alley III presides over the case. Greene & Markley, P.C., acts as the Debtor's bankruptcy counsel. Clyde A. Hamstreet & Associates, LLC, serves as the Debtor's restructuring consultant and financial advisor. An official committee of unsecured creditors has been appointed in the case. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robin G. Olsen, operations director. For the fiscal year ended December 31, 2010, OAC reported total revenues of $6,428,880 and a net loss of ($5,791,310). At the time of the merger, on a consolidated basis, the books and records of OAC, JOLC and OVC reflected assets totaling $29.8 million and liabilities totaling $37.2 million. The fair market value of the Debtor's assets, on a going concern basis, is roughly $50 million. OLSEN AGRICULTURAL: Seeks to Tap Weatherford Thompson as Counsel ---------------------------------------------------------------- Olsen Agricultural Enterprises LLC seeks authority from the U.S. Bankruptcy Court for the District of Oregon to employ Weatherford Thompson Cowgill Black & Schultz P.C. as special counsel for the purposes of advising and assisting it in connection with: (i) completing the partition of property in Brownsville, Linn County, Oregon, (ii) obtaining Measure 49 partition approvals for property in Linn County, and (iii) other land use and real estate matters. The Debtor will pay Michael G. Cowgill, Esq., a principal of the firm, $245 per hour, and Joel D. Kalberer, Esq., a principal of the firm, $230 per hour. In a statement filed pursuant to Rule 2014 of the Federal Rules of Bankruptcy Procedure, Weatherford 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 or its estate. About Olsen Agricultural Enterprises Based in Monmouth, Oregon, Olsen Agricultural Enterprises LLC operates an agricultural enterprise on roughly 7,762 acres of owned and leased land located in Benton, Linn and Polk Counties. Its business is comprised principally of three divisions: (a) Olsen Seed Company, which produces and sells a variety of grass seed and grains on 5,934 acres; (b) Olsen Agriculture, which grows and sells peppermint, nursery stock, squash, hazelnuts and blueberries on 1,334 acres; and (c) Olsen Family Vineyards, which grows a variety of grapes on 494 acres and produces and sells quality wines under the "Viridian" label as well as private labels. Olsen Agricultural Enterprises is the surviving entity of a merger transaction that was consummated on June 1, 2011. In the merger transaction, Olsen Agricultural Company, Inc., an Oregon corporation, Jenks-Olsen Land Co., an Oregon general partnership, Olsen Vineyard Company, LLC, an Oregon limited liability company and The Olsen Farms Family Limited Partnership were merged with and into Olsen Agricultural Enterprises. Olsen Agricultural Enterprises filed for Chapter 11 bankrutpcy (Bankr. D. Ore. Case No. 11-62723) on June 1, 2011. Judge Frank R. Alley III presides over the case. Greene & Markley, P.C., acts as the Debtor's bankruptcy counsel. Clyde A. Hamstreet & Associates, LLC, serves as the Debtor's restructuring consultant and financial advisor. An official committee of unsecured creditors has been appointed in the case. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robin G. Olsen, operations director. For the fiscal year ended December 31, 2010, OAC reported total revenues of $6,428,880 and a net loss of ($5,791,310). At the time of the merger, on a consolidated basis, the books and records of OAC, JOLC and OVC reflected assets totaling $29.8 million and liabilities totaling $37.2 million. The fair market value of the Debtor's assets, on a going concern basis, is roughly $50 million. ONE PELICAN: Has Green Light to Borrow $30T From Insiders --------------------------------------------------------- One Pelican Hill Road North, L.P., won Court authority, on an interim basis, to enter into a post-petition financing agreement with RGSS LLC. The Debtor is authorized to draw up to $30,000 of the funds available under the parties' financing agreement prior to the final hearing on the Motion to pay for property and casualty insurance premium; utility charges; general partner fee; and liability insurance premium. RGSS has committed to provide up to $300,000 in financing. RGSS is a California limited liability company that is owned by certain limited partners of the Debtor. These limited partners also hold junior liens against the property securing more than $6.0 million in debt. According to papers filed by the Debtor, the Villa del Lago will require $105,720 for expenses from June 6 to Sept. 6, 2011. Pursuant to the Court's order, the Interim Draw is secured by a lien against the Debtor's property that is second in priority only to the lien against the Property asserted by OneWest Bank, FSB. The Interim Draw will have priority over all other administrative claims, pursuant to 11 U.S.C. Sec. 364(c)(1). However, RGSS will have no disgorgement rights against other administrative claimants in the event that the sums advanced under the Financing Agreement are not repaid. The Debtor owes OneWest Bank $20 million under a construction loan. The Court will hold a final hearing on the Debtor's request on July 6, 2011, at 11:30 a.m. The Debtor is seeking to sell its property through an auction and intends to embark on a 60-day process to market the property throughout the world. The Debtor said the value of the property is in excess of $30 million. The Debtor expects to close a deal by year end. The Debtor will use the DIP loan to fund operations during the time frame prior to the expected sale. The DIP facility is set to mature on the earlier of Dec. 31, 2011, or an event of default. The DIP Facility carries an 8% interest rate per annum. About One Pelican Hill Road North One Pelican Hill Road North LP, owns the Villa del Lago, a 12.5- acre hillside property, once valued as high as $87 million, featuring a 17,000-square-foot, three-story mansion, a private lake, tennis court, vineyard and horse stables. It filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17998) on June 6, 2011, to halt a foreclosure sale by OneWest Bank that had been scheduled for June 20. Judge Robert N. Kwan presides over the case. Marc J. Winthrop, Esq., at Winthrop Couchot PC, serves as the Debtor's bankruptcy counsel. Spach Capaldi & Waggaman, LLP, serves as the Debtor's special litigation counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The Debtor said the value of the property is in excess of $30 million. The petition was signed by Corey Gulbranson, managing member of VDL One Pelican Hill, LLC, its general partner. ONE RENAISSANCE: Files Schedules of Assets and Liabilities ---------------------------------------------------------- One Renaissance, LLC, filed with the U.S. Bankruptcy Court for the Northern District of North Carolina its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $23,616,118 B. Personal Property $114,143 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $17,111,347 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $83,162 ----------- ----------- TOTAL $27,730,261 $17,194,510 Raleigh, North Carolina-based One Renaissance, LLC, a limited liability company, filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11-01793) on March 9, 2011. Jason L. Hendren, Esq., at Hendren & Malone, PLLC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. No creditors committee has been appointed in the Debtor's case. OPTIMUMBANK HOLDINGS: Receives Non-Compliance Notice from NASDAQ ---------------------------------------------------------------- OptimumBank Holdings, Inc., on June 21, 2011, received a written notice from the Listing Qualifications Staff of The Nasdaq Stock Market notifying the Company that it fails to comply with the audit committee composition requirement set forth in Nasdaq's Listing Rule 5605(c)(2) due to the resignation of Jerry Grace from the Company's board of directors on May 23, 2011. Mr. Grace was the former Chairman of the Company's audit committee. The Audit Committee Rule requires audit committees to have a minimum of three members who meet stringent independence requirements, are financially literate, and one of whom is financial sophisticated. As a result of Mr. Grace's resignation, the Company's audit committee currently has two members, neither of whom has the requisite financial sophistication. The Company has been provided a cure period in order to regain compliance with the Audit Committee Rule until: (a) the earlier of the Company's next annual shareholders' meeting or May 23, 2012, or (b) if the next annual shareholders' meeting is held before Nov. 21, 2011, no later than Nov. 21, 2011. In addition, on June 21, 2011, the Company received another written notice from the Staff notifying the Company that due to Jerry Grace's resignation as a director of the Company, the Company has only two independent directors on its five member board, and, therefore, is no longer eligible for the cure period previously granted by the Staff for the Company's prior failure to comply with the majority independent director requirement set forth in Nasdaq's Listing Rule 5605(b)(1). The Majority Independent Director Rule requires the board of directors to have a majority of members who are independent. The Company had previously been provided a cure period in order to regain compliance with the Majority Independent Director Rule until: (a) the earlier of the Company's next annual shareholders' meeting or Jan. 6, 2012; or (b) if the next annual shareholders' meeting is held before July 5, 2011, no later than July 5, 2011. The Company now has 45 calendar days, or until Aug. 5, 2011, to submit a plan to regain compliance with the Majority Independent Director Rule. If the plan is accepted, the Staff may grant an exception of up to 180 calendar days from the date of Staff's initial notification, until Dec. 18, 2011, to evidence compliance with the Majority Independent Director Rule. If the Staff does not accept the Company's plan, the Company will have the opportunity to appeal that decision before a Hearings Panel. The Company is actively seeking no less than two qualified independent directors to fill the vacancies on its audit committee and board of directors. About OptimumBank Holdings Fort Lauderdale, Fla.-based OptimumBank Holdings, Inc. is a is a one-bank holding company and owns 100% of OptimumBank, a state (Florida)-chartered commercial bank. The Bank offers a variety of community banking services to individual and corporate customers through its three banking offices located in Broward County, Florida. The Bank's wholly-owned subsidiaries are OB Real Estate Management, LLC, OB Real Estate Holdings, LLC, OB Real Estate Holdings 1503, LLC, and OB Real Estate Holdings 1695, LLC, all of which were formed in 2009. OB Real Estate Management, LLC, is primarily engaged in managing foreclosed real estate. OB Real Estate Holdings, LLC, OB Real Estate Holdings 1503, LLC, and OB Real Estate Holdings 1695, LLC, hold and dispose of foreclosed real estate. OptimumBank is currently operating under a Consent Order issued by the Federal Deposit Insurance Corporation ("FDIC") and the State of Florida Office of Financial ("OFR"), effective as of April 16, 2010. As of Sept. 30, 2010, the Bank was considered "undercapitalized" under these FDIC requirements. As an "undercapitalized" institution, the Bank is subject to restrictions on capital distributions, payment of management fees, asset growth and the acceptance, renewal or rollover of brokered and high-rate deposits. In addition, the Bank must obtain prior approval of the FDIC prior to acquiring any interest in any company or insured depository institution, establishing or acquiring any additional branch office, or engaging in any new line of business. "The Bank [OptimumBank] has experienced recent and continuing increases in nonperforming assets, declining net interest margin, increases in provisions for loan losses, continuing high levels of noninterest expenses related to the credit problems, and eroding regulatory capital which raise substantial doubt about the Bank's ability to continue as a going concern," the Company said in its Form 10-Q for the quarter ended Sept. 30, 2010. The Company reported a net loss of $8.45 million on $8.78 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $11.48 million on $14.00 million of total interest income during the prior year. As reported by the TCR on April 20, 2011, Hacker, Johnson & Smith PA, in Fort Lauderdale, Florida, noted that the Company's operating and capital requirements, along with recurring losses raise substantial doubt about its ability to continue as a going concern. The Company's balance sheet at March 31, 2011, showed $183.80 million in total assets, $182.12 million in total liabilities and $1.67 million in total stockholders' equity. PERI SOFTWARE: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Peri Software Solutions Inc. 570 Broad Street Newark, NJ 07102 Bankruptcy Case No.: 11-29067 Chapter 11 Petition Date: June 23, 2011 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Rosemary Gambardella Debtor's Counsel: David Edelberg, Esq. NOWELL AMOROSO KLEIN BIERMAN, P.A. 155 Polifly Road Hackensack, NJ 07601 Tel: (201) 343-5001 Fax: (201) 343-5181 E-mail: dedelberg@njbankruptcy.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Saravanan Periasamy, sole shareholder and officer. PETRA FUND: Files Schedules of Assets and Liabilities ----------------------------------------------------- Petra Fund REIT Corp. filed with the U.S. Bankruptcy Court for the Southern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ---------- ----------- A. Real Property $0 B. Personal Property $5,385,079 C. Property Claimed as Exempt D. Creditors Holding Secured Claims Unknown E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $123,663,104 ----------- ------------ TOTAL $5,358,079 $123,663,104 About Petra Fund Petra Fund REIT Corp. and its affiliates are in the business of originating, investing in, structuring and trading loans secured by commercial real-estate. Petra Fund REIT is a subsidiary of Petra Capital Management. Petra Fund and Petra Offshore sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 10-15500) on Oct. 20, 2010, and are represented by Shaya M. Berger, Esq., and Brian Edward Goldberg, Esq., at Dickstein Shapiro, LLP. At the time of the filing, each of the Debtor estimated its assets at less than $10 million and its debts at more than $100 million. Petra Fund blamed its Chapter 11 filing on the extraordinary and unprecedented collapse of the credit and commercial real estate markets, which caused a mark-to-market value of its assets to plummet. PETRA FUND: Petra Offshore Files Schedules of Assets and Debts -------------------------------------------------------------- Petra Offshore Fund LP filed with the U.S. Bankruptcy Court for the Southern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $0 B. Personal Property $0 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $0 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $65,922,650 ------ ----------- TOTAL $0 $65,922,650 About Petra Fund Petra Fund REIT Corp. and its affiliates are in the business of originating, investing in, structuring and trading loans secured by commercial real-estate. Petra Fund REIT is a subsidiary of Petra Capital Management. Petra Fund and Petra Offshore sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 10-15500) on Oct. 20, 2010, and are represented by Shaya M. Berger, Esq., and Brian Edward Goldberg, Esq., at Dickstein Shapiro, LLP. At the time of the filing, each of the Debtor estimated its assets at less than $10 million and its debts at more than $100 million. Petra Fund blamed its Chapter 11 filing on the extraordinary and unprecedented collapse of the credit and commercial real estate markets, which caused a mark-to-market value of its assets to plummet. PHILLIPS RENTAL: Plan Provides 100% Payment of Unsecured Claims --------------------------------------------------------------- Phillips Rental Properties, LLC submitted to the U.S. Bankruptcy Court for the Eastern District of Tennessee a plan of reorganization and disclosure statement dated June 16, 2011. The Plan reflects a payment schedule for the Debtor's secured loan claims. The Debtor says it is simultaneously pursuing additional refinancing options which would pay secured creditors the full principal balance. Under the Plan, unsecured non-priority claims will be paid over a 60-month period. These claims will have a 100% pay-off of the principal balance of claims, which the Debtor estimates to be $70,264. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/PHILLIPSRENTAL_Jun16DS.pdf The Debtor believes that unsecured creditors will be paid more from the payments described under the Plan from its continued operation than unsecured creditors would receive in liquidation. In light of the proposed Plan, the Debtor's request for an extension of its exclusive plan filing period has been withdrawn. As previously reported by The Troubled Company Reporter, the Debtor sought a 45-day extension from June 4 of its exclusivity period. Several creditors, including TriSummit Bank, Regions Bank and Citizens Bank expressed objection to the request. About Phillips Rental Properties Piney Flats, Tennessee-based Phillips Rental Properties, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case No. 10-53129) on Dec. 7, 2010. Fred M. Leonard, Esq. -- fredmleonard@earthlink.net -- in Bristol, Tennessee, serves as the Debtor's bankruptcy counsel. According to its schedules, the Debtor disclosed $13,499,682 in total assets and $9,650,892 in total liabilities. No unsecured creditors committee has been appointed in the case. PINNACLE HILLS: Abandons Assets, Seeks Case Dismissal ----------------------------------------------------- Pinnacle Hills West LLC asks the U.S. Bankruptcy Court for the Western District of Arkansas to dismiss its Chapter 11 case. The Debtor believes it is in the best interests of the Debtor, to creditors and the estate that the case be dismissed. The Debtor's chief asset was abandoned from the estate by court order and the possibility of an effective reorganization does not exist at this time. Rogers, Arkansas-based Pinnacle Hills West, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ark. Case No. 11-71721). The Debtor disclosed $35,543,490 in assets and $62,302,543 in liabilities as of the Chapter 11 filing. PLATINUM PROPERTIES: Wants Until Nov. 21 to Decide on Leases ------------------------------------------------------------ Platinum Properties, LLC, et al., asks the U.S. Bankruptcy Court for the Southern District of Indiana to extend until Nov. 21, 2011, the deadline to assume leases of nonresidential real property. The Debtor says that it will be in a position to determine whether assumption or rejection of the leases is in the best interests of the estate by Aug. 23, 2011. The Debtor's headquarters are located at 9757 Westpoint Drive, Indianapolis, Indiana 46256. The Debtor leases the office space from Crosspoint Partners VIII, LLC. The lease term will expire Nov. 30, 2015. The Debtor leases a self-storage unit from Shurgard Storage Center. The Shurgard Lease is a month-to-month lease, and neither party has terminated the lease. Absent the extension requested, the Debtor's time to decide to assume or reject the lease will expire on Aug. 23. About Platinum Properties and PPV LLC Indianapolis, Indiana-based Platinum Properties, LLC, is a residential real estate developer. Platinum acquires land, designs the projects, obtains zoning and other approvals, and constructs roads, drainage, utilities, and other infrastructure of residential subdivisions. Platinum then sells the finished, platted lots. Platinum also has an ownership interest in several special purpose entities that in turn own, operate and manage individual projects. PPV LLC is a joint venture between Platinum and a non-debtor entity, Pittman Partners, Inc., each of whom hold an equity interest in PPV. PPV owned four projects directly and owns 100% of the membership interest of Sweet Charity Estates, LLC. Platinum Properties and PPV LLC filed for Chapter 11 protection (Bankr. S.D. Ind. Case Nos. 11-05140 and 11-05141) on April 25, 2011. Lawyers at Baker & Daniels serve as the Debtors' bankruptcy counsel. Platinum Properties disclosed $14,624,722 in assets and $181,990,960 in liabilities as of the Chapter 11 filing. The U.S Trustee has not yet appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. POST STREET: Sec. 341 Creditors' Meeting Set for July 19 -------------------------------------------------------- The United States Trustee for Region 17 will convene a First Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of Post Street LLC on July 19, 2011, at 2:30 p.m. at San Francisco U.S. Trustee Office. Proofs of claim are due by Oct. 17, 2011. Post Street LLC, based in San Francisco, California, filed for Chapter 11 bankruptcy (Bankr. Case No. 11-32255) on June 15, 2011. Judge Thomas E. Carlson presides over the case. Eric D. Goldberg, Esq., at Stutman, Treister and Glatt, serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Stanley W. Gribble, authorized agent. POST STREET: Status Conference Set for Aug. 8 --------------------------------------------- The Bankruptcy Court will hold a status conference in the Post Street LLC's case on Aug. 8, 2011, at 9:30 a.m. at San Francisco Courtroom 23 - Carlson. Post Street LLC, based in San Francisco, California, filed for Chapter 11 bankruptcy (Bankr. Case No. 11-32255) on June 15, 2011. Judge Thomas E. Carlson presides over the case. Eric D. Goldberg, Esq., at Stutman, Treister and Glatt, serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Stanley W. Gribble, authorized agent. R & S ST. ROSE: U.S. Trustee Points to L&S Conflict of Interest --------------------------------------------------------------- August B. Landis, Acting U.S. Trustee for Region 17, asks the U.S. Bankruptcy Court for the District of Nevada to deny R & S St. Rose Lenders, LLC's request for permission to employ Larson & Stephens, LLC, as general bankruptcy counsel. The U.S. Trustee explains that L&S is not disinterested within the meaning of Section 101(14) of the Bankruptcy Code. L&S's retainer was funded by the creditors of the Debtor's estate. The U.S. Trustee adds that L&S should have disclosed the connection to Debtor's creditors who contributed monies to fund the retainer tendered to L&S. The U.S. Trustee maintains that denying the Debtor's request will permit arbitration of disputes concerning L&S' engagement and compensation. As reported in the Troubled Company Reporter on May 26, 2011, the Debtors have tapped L&S to, among other things: a. prepare schedules, statements, applications and reports for which the services of an attorney is necessary; b. advise the Debtors of its rights and obligations and its performance of its duties during the administration of this case; c. assist the Debtors in formulating a plan of reorganization and disclosure statements and obtain approval and confirmation thereof; and d. represent the Debtors in all proceedings before the Court and other courts with jurisdiction over this case. The Debtors will compensate attorneys and paralegals at varying rates as follows: Zachariah Larson $450 Shara Larson $350 Paralegals $175 Zachariah Larson, Esq., assured the Court that Larson & Stephens is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The U.S. Trustee is represented by: Athanasios E. Agelakopoulos, Esq. UNITED STATES DEPARTMENT OF JUSTICE Office of the United States Trustee 300 Las Vegas Boulevard, So., Suite 4300 Las Vegas, NV 89101 Tel: (702) 388-6600 Attorney Ext. 224 Fax: (702) 388-6658 E-mail: athanasios.agelakopoulos@usdoj.gov About R & S St. Rose Lenders R & S St. Rose Lenders, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-14973) on April 4, 2011. Zachariah Larson, Esq., and Sarah Larson, Esq., at Larson & Stephens, LLC, in Las Vegas, serve as bankruptcy counsel. David J. Merrill, P.C. serves as special counsel. The Debtor amended its schedules disclosing $12,041,574 in assets and $24,502,319 in liabilities. The previously schedules filed by the Debtor showed $12,041,574 in assets and $19,688,291 in liabilities. RACE FACE: Former Employee Acquires Firm Out of Receivership ------------------------------------------------------------ The Vancouver Sun reports that former employee and now part-owner Derek Wills has seen Race Face rise, fall and now rise once again as the company is out of receivership and has 17 employees back to work. Two months after hearing the news that their company was in receivership and their jobs were gone, staff at Race Face Performance Products is breathing new life into the company, according to The Vancouver Sun. The report notes that despite booming sales projections for 2011, the company's lenders found some overstated assets in Race Face's financials and pulled the plug in March, cutting 50 local engineering, design, manufacturing, sales and administrative jobs as well as 20 jobs from Race Face's shop in Taiwan. Two former employees, Derek Wills and Chris Tutton, and two silent investors beat out about nine other bids to buy Race Face out of hock and restarted production in May, the report says. Race Face Performance Products is a local mountain bike parts and apparel manufacturer. RANCHO HOUSING: Taps Snell & Wilmer as General Insolvency Counsel ----------------------------------------------------------------- Rancho Housing Alliance, Inc., asks the U.S. Bankruptcy Court for the Central District of California for authority to employ Snell & Wilmer L.L.P. as general insolvency counsel. The firm can be reached at: Michael B. Reynolds, Esq. Robert C. Briseno, Esq. SNELL & WILMER L.L.P. 600 Anton Boulevard, Suite 1400 Costa Mesa, CA 92626-7689 Tel: (714) 427-7000 As the Debtor's general insolvency counsel, Snell & Wilmer will, among other things: (a) advise and assist the Debtor in evaluating this Chapter 11 case and complying with the requirements of the Bankruptcy Code and the Office of the United States Trustee; (b) advise the Debtor regarding matters of bankruptcy law, including rights and remedies of the Debtor with regard to the estate, its assets, and the claims of creditors; (c) consult with the Debtor concerning the administration Of the case; (d) make any court appearances on behalf of, and to represent the Debtor in any proceedings or hearings in the Bankruptcy Court and any other court where the rights of the Debtor may be litigated or affected; and (e) conduct examinations of witnesses, claimants or adverse parties and to prepare and assist in the preparation of reports, accounts and pleadings related to this Chapter 11 case. The firm will be paid on its regular hourly rates: Attorneys 2011 Rates --------- ---------- Michael B. Reynolds $515 Robert C. Briseno $330 Paralegals 2011 Rates ---------- ---------- Heather S. Lourick $230 The firm may utilize professionals in its California or other offices as needed to expedite and facilitate the handling of matters on behalf of the Debtor. These professionals will bill at their standard rates, which range between $150 and $700 per hour. The firm's engagement agreement with the Debtor called for a pre- petition retainer of $50,000, which was funded by DACE. Prior to the filing of the bankruptcy petition, the firm drew down on the retainer to cover pre-petition fees and costs in the amount of $28,227, leaving a retainer balance of $21,873. Michael B. Reynolds, Esq., of Snell & Wilmer L.L.P., assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Rancho Housing Based in Coachella, California, Rancho Housing Alliance, Inc., filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-27519) on May 27, 2011. Judge Scott C. Clarkson presides over the case. Michael B. Reynolds, Esq., at Snell & Wilmer LLP, serves as the Debtor's counsel. The Debtor scheduled $12,882,123 in total assets and $22,404,858 in total liabilities. RANDOLPH MEDICAL: Judge Sawyer Dismisses Chapter 11 Case -------------------------------------------------------- Jason Bacaj at the Anniston Star reports that Judge William R. Sawyer has dismissed Randolph Medical Center's bankruptcy case. According to the report, Judge Sawyer ruled that the Roanoke Health Care Authority is not eligible for Chapter 11 bankruptcy because the authority does not meet the definition of a person under federal bankruptcy code. The rural hospital had been in financial duress and under threat of closure for at least eight years before it was forced to close March 17 after emergency room physicians walked out. It had roughly $9.6 million in debt when it locked the doors. The Anniston Star relates that the health authority filed for Chapter 11 bankruptcy on April 4 because, as a governmental organization, it couldn't file under Chapter 7, Lee Benton, the authority's bankruptcy lawyer, has said in prior interviews. Two days after filing under Chapter 11, the authority petitioned to convert the proceedings to Chapter 7 bankruptcy. The Randolph Medical Center owes $5.9 million in a USDA loan, which is accounted for by the hospital's portion of a Randolph County ad valorem tax. It also owes about $2.2 million in Medicare overpayments and more than $1.5 million to various vendors. REED & JETER: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Reed & Jeter, Inc. aka Wadco Aerospace 5229 Vesta Farley Road Fort Worth, TX 76119-6479 Bankruptcy Case No.: 11-43558 Chapter 11 Petition Date: June 25, 2011 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: D. Michael Lynn Debtor's Counsel: Mark Joseph Petrocchi, Esq. GRIFFITH, JAY & MICHEL, LLP 2200 Forest Park Blvd. Ft. Worth, TX 76110 Tel: (817) 926-2500 Fax: (817) 926-2505 E-mail: mpetrocchi@lawgjm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Brady Reed, president. RITTENHOUSE SQUARE: Court Appoints Carl Dranoff as Receiver ----------------------------------------------------------- Alan J. Heavens at Inquirer Real Estate reports that a Common Pleas Court judge Tuesday appointed developer Carl Dranoff receiver for 10 Rittenhouse Square, the multimillion-dollar high- rise condo building at 130 S. 18th St. in the first of two steps sought last year by the project's senior lender but delayed by an abortive Chapter 11 bankruptcy filing. As reported in the Troubled Company Reporter on Sept. 24, 2010, the senior lender for a luxury high-rise on Philadelphia's tony Rittenhouse Square wants to foreclose on the $300 million project, LDNews reports. According to the report, New York-based Istar Tara L.L.C. filed a suit last week in Common Pleas Court to place the 33-story 10 Rittenhouse Square building in receivership. The report relates that another lender, Delaware Valley Real Estate Investment Fund, filed suit against Istar Tara in July. The report said that building management told The Philadelphia Inquirer that 41 of the project's 135 condos are sold or under contract with five more in negotiation. The units are priced from $600,000 to $15 million, the report added. RITZ-CARLTON, LAKE TAHOE: Ends Receivership, Gets New Owners ------------------------------------------------------------ RJG.com reports that Ritz-Carlton, Lake Tahoe will end its court- appointed receivership later this month as the luxury resort gets new ownership. The report relates Steven Holt, Ritz-Carlton, Lake Tahoe public relations director, said that the resort is scheduled to have its official ownership change on June 27. RJG.com says that Mr. Holt said the name of the resort's new owner will also be announced on that date, and the property will continue to be managed under the Ritz-Carlton brand. The report notes that the new ownership marks the end of a rocky period in the new resort's history, which was at risk for foreclosure after Bank of America filed a notice of default against the property's developer, Avon, Colo.-based East West Resort Development, on March 31, 2010. At the time, records from Placer County showed that the original borrower was late on almost $19 million in payments for loans that totaled about $157 million, the report says. East West also filed for Chapter 11 bankruptcy in 2010 after the developer's real estate sales dropped by 60%, RJG.com notes. The 400,000-square-foot Ritz-Carlton, Lake Tahoe cost $300 million to build and officially opened in Dec. 9, 2009. RIVER ROAD: 7th Circ. Affirms Proposed Asset Sale Rejection ----------------------------------------------------------- The Seventh Circuit affirmed a bankruptcy court's decision that rejected River Road Hotel Partners LLC's proposed asset sale, ruling that the bidding procedures did not offer secured lenders the protections required under the bankruptcy code. According to Law360, the Seventh Circuit said the proposed auctions lacked a "crucial check against undervaluation" by failing to allow secured lenders to credit bid and could not be approved under the Bankruptcy Code, as the debtors -- River Road Hotel Partners, RadLAX Gateway Hotel LLC and related entities - had argued. The decision, which was the subject of the appeal denied approval of the debtors' proposed bid procedures for a sale of substantially all of their assets, which are comprised primarily of the InterContinental Hotel Chicago O'Hare located in Rosemont, Illinois (a suburb of Chicago close to O'Hare International Airport), according to Chapter11Cases.com. Chapter11Cases.com notes that the decision also applies to the denial of substantially similar bidding procedures proposed in the bankruptcy cases of In re RadLAX Gateway Hotel, LLC et al. Those debtors own the Radisson Hotel at Los Angeles International Airport. About River Road Hotel Partners River Road Hotel Partners, LLC, developed and manages the InterContinental Hotel Chicago O'Hare located in Rosemont, Illinois. Affiliate RadLAX Gateway Hotel LLC owns the Radisson hotel at Los Angeles International Airport. Both are ultimately controlled owned by Harp Group. River Road and its affiliates filed Chapter 11 in Chicago (Bankr. N.D. Ill. Lead Case No. 09-30029) on Aug. 17, 2009. Based in Oak Brook, Illinois, River Road estimated assets of as much as $100 million and debt of as much as $500 million in its Chapter 11 petition. River Road disclosed $0 in assets and $14,400,000 in liabilities as of the Chapter 11 filing. Terrence O'Brien & Co. serves as the Debtors' appraiser, and Madigan & Getzendanner as serves as the Debtors' special counsel. RadLAX and its affiliates filed a separate chapter 11 petition (Bankr. N.D. Ill. Case No 09-30047), estimating assets at $50 million to $100 million. David M. Neff, Esq., at Perkins Coie LLP, serves as counsel to the River Road and RadLAX debtors. The two cases, however, are not jointly administered. The Official Committee of Unsecured Creditors is represented by Stephen T. Bobo and Ann E. Pille at Reed Smith LLP. Adam A. Lewis, Esq., and Norman S. Rosenbaum, Esq., of Morrison Foerster LLP of San Francisco, California; and John W. Costello, Esq., and Mary E. Olson, Esq., of Wildman, Harrold, Allen & Dixon LLP of Chicago, Illinois, represent Amalgamated Bank. John Sieger, Esq., and Andrew L. Wool, Esq., of Katten Muchin Rosenman LLP represent U.S. Bank. RIVERWOOD HOMES: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Riverwood Homes, Inc. 2825 NW 12th Avenue Camas, WA 98607 Bankruptcy Case No.: 11-45084 Chapter 11 Petition Date: June 23, 2011 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Brian D. Lynch Debtor's Counsel: John D. Nellor, Esq. NELLOR RETSINAS CRAWFORD PLLC 1201 Main St. PO Box 61918 Vancouver, WA 98666 Tel: (360) 695-8181 E-mail: jd@nellorlaw.com Scheduled Assets: $1,816,288 Scheduled Debts: $1,904,190 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb11-45084.pdf The petition was signed by Matthew Morris, president. ROUND TABLE: Court Approves Snell & Wilmer Application ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of California has permitted Round Table Pizza, Inc., et al. to employ Snell & Wilmer, LLP to advise and represent the Debtor in matters related to franchise law. About Round Table Pizza Based in Concord, California, Round Table Pizza, Inc. -- http://www.roundtablepizza.com/-- is a private, 100% employee- owned company with corporate offices based in Concord, California. Round Table is largely owned by an Employee Stock Ownership Plan, with 3,190 participants. The ESOP is designed and intended to provide a source of retirement income to Round Table's loyal, long-term employees. Round Table filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-41431) on Feb. 9, 2011. Judge Roger L. Efremsky presides over the case. Scott H. McNutt, Esq., at McNutt Law Group serves as the Debtor's bankruptcy counsel. The Debtors also tapped Frank, Rimerman & Co. as an auditor and accountant. Round Table disclosed $1,066,524 in assets and $35,625,649 in liabilities as of the Chapter 11 filing. The case is jointly administered with affiliates -- The Round Table Franchise Corporation, Round Table Development Company, and Round Table Pizza Nevada LLC. The U.S. Trustee formed a three-member official committee of unsecured creditors. The committee has tapped Brownstein Hyatt Farber Schreck, LLP as counsel. The Debtor also tapped First Bankers Trust Services, Inc. as discretionary, independent, and institutional ESOP Trustee, and Johanson Berenson LLP as an ESOP counsel. RU LLC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------- Debtor: RU, LLC 208 E. New Bern Road Kinston, NC 28501 Bankruptcy Case No.: 11-04776 Chapter 11 Petition Date: June 21, 2011 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Randy D. Doub Debtor's Counsel: Michael P. Peavey, Esq. PO Box 1115 Wilson, NC 27894-1115 Tel: (252) 291-8020 Fax: (252) 291-8309 E-mail: mpeavey@peaveylaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb11-04776.pdf The petition was signed by Mahefuja Contractor, member. SBARRO INC: Incurs $6.3 Million Net Loss for May ------------------------------------------------ Chapter11Cases.com reports that Sbarro, Inc. and its affiliates filed their consolidated monthly operating report for May 2-29, 2011 with the bankruptcy court. Chapter11Cases.com discloses that among the key financial disclosures contained in the monthly operating report: * Sbarro reported a net loss of approximately $6.3 million for the month on revenues of $22.1 million. * For the entire bankruptcy period (April 4 - May 29), Sbarro has generated a net loss of $13 million on $46 million of revenues. * Sbarro ended May with $20 million in cash and $33.2 million of current assets. The companies had total assets of slightly more than $446 million. * By comparison, the companies ended May with over $515 million in liabilities. Of the total, $42.4 million were classified as current liabilities and $402.9 million were classified as liabilities subject to compromise. * Sbarro's cash balance decreased by almost $3 million in May. The net cash decrease includes an additional $3.5 million in proceeds from Sbarro's DIP financing received in May. In total, Sbarro has drawn $20 million in DIP financing since its chapter 11 filing. * Including accrued interest, the balance outstanding under the DIP financing facility as of May 29, 2011 was $20.2 million. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. According to its schedules, the Debtor disclosed $51,537,899 in total assets and $460,975,646 in total debts. Sbarro said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SEA REAL: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Sea Real Estate CCHF 101, LLC 25 Englewood Terrace Lakewood, NJ 08701 Bankruptcy Case No.: 11-28764 Chapter 11 Petition Date: June 21, 2011 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Michael B. Kaplan Debtor's Counsel: David C. Steinmetz, Esq. KUNSTLINGER STEINMETZ, LLP 212 2nd St Ste 304 Lakewood, NJ 08701 Tel: (732) 367-1880 Estimated Assets: not indicated Estimated Debts: not indicated The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Sarah L. Newmark, secretary. SHILO INN SEASIDE: Wins Interim OK to Use OneWest Collateral ------------------------------------------------------------ Shilo Inn, Seaside Oceanfront, LLC, won interim authority to use cash collateral securing its obligations to OneWest Bank FSB. Judge Vincent P. Zurzolo will hold a final hearing July 19, 2011, at 11:30 a.m. to consider the Debtor's request. The debt was originally with La Jolla Bank, which originated the loan with the Debtor in 2007 in the amount of $12 million. OneWest Bank assumed the loan after La Jolla Bank was taken over by the Federal Deposit Insurance Corp. through receivership in March 2010. The loan is cross-collateralized with two individually owned and operated Shilo properties -- the hotel property in Pomona Hilltop owned by Shilo Inn Pomona Hilltop, LLC; and the hotel property in Palm Springs owned by Shilo Inn Palm Springs, LLC -- to consummate a September 2009 loan modification. OneWest Bank elected in October 2010 to judicially foreclose on the Pomona Hilltop and Palm Springs properties and moved to take receiverships over both properties. Shilo Inn Palm Springs filed its chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-26501) on April 13, 2011. Shilo Inn Pomona Hilltop filed its chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-26270) on April 14, 2011. Both cases are pending before Judge Zurzolo. OneWest filed judicial foreclosure against Shilo Inn Seaside Oceanfront on May 24, 2011, and requested a receivership hearing on June 9, 2011, forcing the Debtor to seek bankruptcy protection. The Debtor said without use of cash collateral and the ability to operate, existing hotel guests will not receive services and will depart, canceling existing charges. Moreover, without use of cash collateral, future reservations will also be cancelled. Even if the Debtor does not have use of cash collateral on a limited time basis, the public perception associated with the foregoing will certainly hurt, if not eviscerate, the Debtor's business, thereby reducing the value of the estate and potential recovery to creditors. The Debtor said secured creditors are adequately protected in the use of cash collateral by a substantial equity cushion, replacement lien and by the continued operation of the Debtor's business. The Debtor said OneWest is protected by an equity cushion of approximately 60.1%. According to the Debtor, based on the expert opinion of Mark Hemstreet, founder and owner of Shilo Inn hotels, who personally developed the Debtor's Hotel in 1983, the value of the Hotel is at least $21 million. OneWest asserts a first priority security interest in the Debtor's assets to secure an obligation in the amount of roughly $13.04 million. The Debtor said it also owes $104,184.43 in prepetition real property taxes and $12,047.57 in prepetition personal property taxes due to Clatsop County, for roughly $126,250 in total. OneWest has challenged the $21 million value the Debtor assigned to the Property, saying the Debtor's hotel is worth much lower. OneWest also pointed out that the amounts owed by related debtors Pomona Hilltop and Palm Springs are also secured by the Debtor's hotel. When the total debt owed by the three related debtors and all collateral are viewed in the aggregate, there is no equity cushion to provide adequate protection to OneWest. OneWest also argued the Debtor has not made a regular payment on its obligation since September 2009, and although the hotel generates rents in excess of its operating expenses, the Debtor has chosen to divert that cash collateral for purposes other than paying debt service or property taxes. OneWest is represented in the case by: A. Kenneth Hennesay, Jr., Esq. Loraine L. Pedowitz, Esq. ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP 1900 Main Street, Fifth Floor Irvine, CA 92614-7321 Tel: 949-553-1313 Fax: 949-553-8354 E-mail: KHennesay@allenmatkins.com LPedowitz@allenmatkins.com About Shilo Inn Seaside Oceanfront Based in Portland, Oregon, Shilo Inn, Seaside Oceanfront, LLC, operates the Seaside Hotel, a 113-room hotel situated on 1.37 beautiful acres in Seaside, Oregon, pursuant to a franchise agreement with Shilo Franchise International, LLC. The Hotel is located directly on the beach and is the premier fixture of the Seaside promenade. Shilo Inn Seaside Oceanfront filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-34669) on June 7, 2011. David B. Golubchik, Esq., at Levene Neale Bender Rankin & Brill LLP, serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. Debtor-affiliates that previously sought Chapter 11 protection are Shilo Inn, Diamond Bar, LLC (Case No. 10-60884) on Nov. 29, 2010; Shilo Inn, Killeen, LLC (Case No. 10-62057) on Dec. 6, 2010; Shilo Inn, Palm Springs, LLC (Case No. 11-26501) on April 13, 2011; and Shilo Inn, Pomona Hilltop, LLC (Case No. 11-26270) on April 14, 2011. SIGNATURE STYLES: Committee Wants Gift Cards Honored ---------------------------------------------------- Chapter11Cases.com reports that the Official Committee of Unsecured Creditors appointed in the chapter 11 bankruptcy cases of Signature Styles, LLC and Signature Styles Gift Cards, LLC filed its initial pleadings responding to the companies' plans to sell all of their assets to an affiliate of their current owners, who are also affiliates of, among other things, their senior secured creditors and DIP lenders (all of whom are affiliated with Patriarch Partners). The Committee's pleadings also address the companies' decision to stop honoring their outstanding gift cards and merchandise credits owing to customers - a decision which the Committee calls "shocking" and sure to "negatively impact the public perception of this company and alienate its customer base," according to Chapter11Cases.com The report notes that addressing first the debtors' decision not to seek authority to continue honoring their customer programs (gift cards and merchandise credits), the Committee describes the decision as one of several "extraordinary measures designed to make the Debtors' assets appear less desirable to competing bidders." It court filings, the Committee states that it "is not aware of any other recent going concern sale process in this or any other district where the debtor decided to stop honoring gift cards and merchandise credits," Chapter11Cases.com states. Therefore, the Creditors' Committee asked the court in Friday's pleadings to force the debtors to honor outstanding gift cards, merchandise credits and other programs for Spiegel, Newport News and Shape Fx customers "in the ordinary course until the sale of substantially all of their assets." Chapter11Cases.com says that customers holding gift cards, merchandise credits or other credits from Spiegel, Newport News or Shape Fx should note that, at this time, this is only a request by the Creditors' Committee -- it will have to be ruled upon by the bankruptcy court. The Committee also expressed much broader concerns about the proposed sale process, stating on the first page of its pleadings that it "is gravely concerned that the sale process currently proposed by the Debtors is woefully deficient, crafted solely to benefit Patriarch, provides no benefit to the Debtors' estates and is nothing more than half-hearted window dressing intended to cloak Patriarch's efforts to cleanse the Debtors' balance sheet of unsecured indebtedness with the appearance of fairness and equit," Chapter11Cases.com relates. Therefore, the Committee has asked the court to authorize it to take an active role in the sale process and soliciting alternative sale proposals, stating that the Committee's active involvement is necessary to "restore balance and ensure an even playing field for potential bidders, while simultaneously protecting the interests of general unsecured creditors and maximizing value for the Debtors' estates," Chapter11Cases.com discloses. The specific authorizations from the court which the Committee requests in its court filings include: * Subject to certain limitations, the Committee and its professionals be authorized to disseminate confidential information of the debtors to "third parties potentially interested in purchasing any or all of the Debtors' assets and/or sponsoring a plan of reorganization in these chapter 11 cases." * The Committee and its professionals be authorized to "participate in all aspects of the sale process including, but not limited to (i) participate in all in-person and telephonic meetings with management, including management presentations, receive copies of any written materials provided in connection with the same and be provided with reasonable access to management in connection with the Committee's efforts to supplement the sale process, (ii) receive all correspondence from potential bidders within one (1) business day of receipt by the Debtors or their advisors, (iii) participate in weekly sale process update calls with Western Reserve [the debtors' financial advisors], (iv) receive weekly, written updates from Western Reserve concerning potential bidders contacted and the status of each contact, and (v) receive weekly data-room statistics, to the extent available, as reasonably requested by the Committee's advisors." The Committee's advisors be involved in preparing "all communications sent to potential bidders." Separately, Chapter11Cases.com notes that the Committee filed a motion asking for court authority to authorize it to conduct discovery and examination of the debtors and Patriarch pursuant to Bankruptcy Rule 2004. In the motion, the report relates, the Committee notes that the stalking horse bid for the debtors' assets (from an affiliate of Patriarch) is "the assumption of purportedly secured indebtedness held by Patriarch that arose in connection with Patriarch's failed leveraged buyout of the company in 2009." This, according to the Committee, requires an "expedited investigation of the sanctity of such indebtedness," Chapter11Cases.com discloses. Therefore, the Committee has asked the court to direct the production of documents and the examination of individuals from the debtors and Patriarch, as well as to authorize the Committee to issue subpoenas, so far as the Committee deems necessary to investigate "the relationship between Patriarch and the Debtors, the purported prepetition indebtedness of Patriarch and the 2009 Acquisition which, upon information and belief, gave rise to a portion of the purported indebtedness and the negotiations between Patriarch and the Debtors concerning the sale process and stalking horse agreement," Chapter11Cases.com says. Chapter11Cases.com relates that the motion notes that both the debtors and Patriarch have been cooperative with the Committee's requests thus far and that the motion is being filed "in an abundance of caution" given the expedited nature of the proposed sale process. On June 28, Judge Kevin Gross agreed to hear both of the Committee's motions on an expedited basis. The motions will be considered at a hearing to be held on Thursday, June 30, beginning at 3:30 p.m. (Eastern). Objections must be filed and served so as to be received no later than noon (Eastern) on Thursday. About Signature Styles Signature Styles LLC, owner of the Spiegel catalog, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-11733) on June 6, 2011, along with a deal to sell the business to affiliates of the current owners and lenders. New York-based Signature Styles, which filed for bankruptcy together with its affiliates, disclosed assets of $48.6 million and debt of $867.6 million. It purchased the Spiegel business for $21.7 million at a foreclosure sale in June 2009. Debt includes $37.2 million owing on a secured term loan and revolving credit. Unsecured debt totals $35.3 million, which include $9.8 million owing to trade suppliers and $23.2 million in customer obligations. The lenders and owners are funds affiliated with Patriarch Partners LLC. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, serves as counsel to the Debtor. Western Reserve Partners LLC serves as investment bankers. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. A fund affiliated with Patriarch Partners LLC has an agreement to buy the business in return for the assumption of specified debt, including $30 million owing on the term loan and revolving credit. The buyer also will honor some customer obligations. The stalking-horse purchase agreement requires approval of bidding procedures by July 7 and approval of a sale by Aug. 4. SIGNATURE STYLES: Five Members in Official Creditors Committee -------------------------------------------------------------- Roberta A. Deangelis, United States Trustee for Region 3, under 11 U.S.C. SEC 1102(a) and (b), appointed the following amended unsecured creditors who are willing to serve on the Official Committee of Unsecured Creditors of Signature Styles LLC. The Creditors Committee members are: 1. Gould Paper Corp., ATTN: Michael Ritter 11 Madison Ave. New York, NY 10010 Tel: (212) 301-8682 Fax: (212) 247-3409 2. Google, Inc. ATTN: Blake Reese 1600 Amphitheatre Pkwy. Mountain View, CA 94043 Tel: (212) 565-4869 Fax: (650) 253-8616 3. Hearst Communications, Inc. ATTN: Allan Bittner 214 North Tryson St. Charlotte, NC 28202 Tel: (704) 348-8295 Fax: (704) 376-2424 4. Experian Marketing Solutions Inc. ATTN: Stephen Grant 475 Anton Blvd., Costa Mesa CA 92807 Tel: (714) 830-7710 5. X+1 ATTN: Nancy Lazarus 470 Park Ave. South #175, New York, NY 10016 Tel: (203) 663-4321 Fax: (203) 299-182 About Signature Styles Signature Styles LLC, owner of the Spiegel catalog, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-11733) on June 6, 2011, along with a deal to sell the business to affiliates of the current owners and lenders. New York-based Signature Styles, which filed for bankruptcy together with its affiliates, disclosed assets of $48.6 million and debt of $867.6 million. It purchased the Spiegel business for $21.7 million at a foreclosure sale in June 2009. Debt includes $37.2 million owing on a secured term loan and revolving credit. Unsecured debt totals $35.3 million, which include $9.8 million owing to trade suppliers and $23.2 million in customer obligations. The lenders and owners are funds affiliated with Patriarch Partners LLC. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, serves as counsel to the Debtor. Western Reserve Partners LLC serves as investment bankers. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. A fund affiliated with Patriarch Partners LLC has an agreement to buy the business in return for the assumption of specified debt, including $30 million owing on the term loan and revolving credit. The buyer also will honor some customer obligations. The stalking-horse purchase agreement requires approval of bidding procedures by July 7 and approval of a sale by Aug. 4. SOVEREIGN OFFICE: Case Summary & 7 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Sovereign Office Park, LLC PO Box 57627 Oklahoma City, OK 73157 Bankruptcy Case No.: 11-13388 Chapter 11 Petition Date: June 23, 2011 Court: United States Bankruptcy Court Western District of Oklahoma (Oklahoma City) Judge: Sarah A. Hall Debtor's Counsel: Janice D. Loyd, Esq. BELIINGHAM & LOYD, P.C. 620 North Robinson, Suite 207 Oklahoma City, OK 73102 Tel: (405) 235-9371 Fax: (405) 232-1003 E-mail: jdltrustee@bellinghamloyd.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/okwb11-13388.pdf The petition was signed by Michael E. Deeba, Chapter 11 Trustee for Macco Properties, Inc. Affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Holbrook Shopping Plaza, LLC 11-11235 03/17/11 JU Villa Del Mar Apartments, LLC 10-16842 11/11/10 MA Cedar Lake Apartments, LLC 10-16563 10/28/10 Macco Properties, Inc. 10-16682 11/02/10 NV Brooks Apartments, LLC 10-16503 10/27/10 SEP Riverpark Plaza LLC 10-16832 11/11/10 Twin Lakes Apartments, LLC 10-13881 06/25/10 TELLICO LANDING: Case Summary & 11 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Tellico Landing, LLC P.O. Box 4187 Maryville, TN 37802 Bankruptcy Case No.: 11-33018 Chapter 11 Petition Date: June 27, 2011 Court: U.S. Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Richard Stair, Jr. Debtor's Counsel: Thomas Lynn Tarpy, Esq. HAGOOD, TARPY & COX PLLC Suite 2100, Riverview Tower 900 South Gay Street Knoxville, TN 37902-1537 Tel: (865) 525-7313 E-mail: ltarpy@htandc.com Scheduled Assets: $40,444,352 Scheduled Debts: $8,532,455 The petition was signed by Michael L. Ross, chief manager. Debtor's List of 11 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ LTR Properties Management Fees for $628,445 P.O. Box 4187 2008 Reimbursements Maryville, TN 37802 Ward Welchel Management Fees $305,557 3003 River Haven Point Knoxville, TN 37922 Robert Stooksbury Management Fees $300,000 12748 Shady Ridge Lane Knoxville, TN 37934 Loudon County Trustee 2008-2010 Property $276,778 P.O. Box 351 Tellico Landing Loudon, TN 37774 Michael L. Ross Reimbursements $98,848 TN Department of Revenue -- $71,466 APAC Atlantic, Inc Street Paving $68,511 Long, Ragsdale & Water, PC Legal Fees $22,584 Tellico Lake Properties 4% Marketing Fee $21,130 Sun Sigh Graphics Street Signs $710 Rarity Point Comm. Assoc, Inc. Prorated Association $266 Dues TELTRONICS INC: Files For Chapter 11 Protection ----------------------------------------------- Teltronics Inc. has filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-122150) in Tampa, Florida. The Company said sales revenue from its electronics and computer software programs could no longer sustain its operations. The Company is represented by Charles A. Postler of Stichter, Riedel, Blain & Prosser. The Company has also sought immediate approval of its hiring of Michael J. Worrall and Solutions Management as chief restructuring officer. 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. TELTRONICS, INC.: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Teltronics, Inc. 2511 Corporate Way Palmetto, FL 34221-8478 Bankruptcy Case No.: 11-12150 Chapter 11 Petition Date: June 27, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Judge: K. Rodney May Debtor's Counsel: Charles A. Postler, Esq. STICHTER, RIEDEL, BLAIN & PROSSER 110 E Madison Street, Suite 200 Tampa, FL 33602-4700 Tel: (813) 229-0144 E-mail: cpostler.ecf@srbp.com Debtor's Chief Restructuring Offier: Michael J. Worrall SOLUTIONS MANAGEMENT Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Ewen R. Cameron, president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Delco Electrical Corp. -- $480,702 766 5th Avenue Brooklyn, NY 11232-1619 GHT Co. Ltd. -- $437,070 16 Nanyunyi Lu Guangzhou Science City China 00051-0663 Arrow Electronics -- $395,643 P.O. Box 951597 Dallas, TX 75395-1597 Weather Wise Conditioning Corp -- $367,589 333 Stagg Street Brooklyn, NY 11206-1701 Datacomm Consulting Group -- $220,283 Starcom Comm Services, Inc. -- $200,493 Avnet EMG -- $175,342 Expertel Communications Ltd. -- $146,629 Sat Utility Contracting LLC -- $135,474 New York City Dept. of Finance -- $130,954 Gulfcoast Property No. 1, LLC -- $121,722 GM Data Communications Inc. -- $117,004 Active Sales Assoc, Inc. -- $110,189 CBIZ Kirkland, Russ, Murphy & Tapp -- $103,000 Network -- $78,467 Powell Electronics Inc. -- $72,014 Manatee County Tax Collector -- $60,780 Epstein Becker & Green, P.C. -- $58,445 Innovative Circuits Inc. -- $55,948 Anixter, Inc. -- $51,883 TERRESTAR NETWORKS: No Auction Today; Assets to Go to Dish ---------------------------------------------------------- TerreStar Networks filed with the U.S. Bankruptcy Court a notice that the June 30, 2011 auction related to the sale of substantially all of the Debtors' assets has been canceled and a hearing to consider approval of DISH Networks' Gamma Acquisition's $1.375 billion stalking horse bid has been scheduled for July 7, 2011. TerreStar has cancelled the auction after no rival bids were made by a 5 p.m. deadline on June 27. DISH has signed a contract to buy the assets, absent higher and better offers, for a purchase price of $1.375 billion consisting of: (i) $50 million, which will be deposited into the Escrow Account to provide funding for working capital and administrative expenses; (ii) $1.295 billion, which will be payable on or before the Funding Date; (iii) $30 million, less the amount of the Employee Obligations; (iv) the Purchaser's assumption of the Employee Obligations on the Closing Date. About TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which filed on Oct. 19, 2010. The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC's case is jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11-10612 (SHL). The seven Debtor entities who sought joint administration with TSC are TerreStar New York Inc., Motient Communications Inc., Motient Holdings Inc., Motient License Inc., Motient Services Inc., Motient Ventures Holdings Inc., and MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks -- TSN -- the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100 million to $500million in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor. THERMOENERGY CORP: Inks Bridge Loan & Warrant Pact with Investors ----------------------------------------------------------------- ThermoEnergy Corporation, on June 17, 2011, entered into a Bridge Loan and Warrant Amendment Agreement with Robert S. Trump; Focus Fund L.P.; Hughes Capital; Scott A. Fine; Peter J. Richards, Empire Capital Partners, LP; Empire Capital Partners, Ltd; and Empire Capital Partners Enhanced Master Fund, Ltd, who hold warrants for the purchase in the aggregate, of 22,379,232 shares of the Company's Common Stock. Pursuant to the Agreement, the Investors made loans to the Company in the respective principal amounts set forth below opposite the name of each Investor, against the Company's issuance to each Investor the Company's Promissory Note in such amount: Principal Noteholder Amount of Note ---------- -------------- Robert S. Trump $1,522,443 Focus Fund L.P. $390,000 Hughes Capital $20,000 Scott A. Fine $65,000 Peter J. Richards $65,000 Empire Capital Partners, LP $285,728 Empire Capital Partners, Ltd $284,584 Empire Capital Partners Enhanced Master Fund, Ltd $276,543 Pursuant to the Agreement, the Company agreed, subject to the satisfaction of certain conditions, to amend the Warrants (i) to provide that they will be exercisable for the purchase of shares of the Company;s Series B Convertible Preferred Stock instead of Common Stock; and (ii) to change the exercise prices of all Warrants to $1.30 per share of Series B Stock. The Investors agreed, subject to the satisfaction of certain conditions, to exercise all of the Warrants. The principal amount of the Notes is equal to the aggregate exercise price of the Warrants. The terms of the Series B Stock as set forth in the Company's Certificate of Incorporation, as amended, include anti-dilution provisions which automatically reduce, on a weighted-average formula basis, the conversion price of the Series B Stock (currently $2.40 per share, or $0.24 per Common-equivalent share) in the event the Company issues shares of Common Stock (or securities exercisable for, or convertible into, shares of Common Stock) at an issuance, exercise or conversion price that is less than $0.24 per share. The amendment and exercise of the Warrants as contemplated by the Agreement would, under the current applicable provisions of the Company's Certificate of Incorporation, trigger a reduction in the conversion price of all outstanding shares of Series B Stock. Consequently, the Agreement provides that the amendment and exercise of the Warrants will not be effective unless and until the anti-dilution provisions of the Series B Stock are waived. Because the terms of the Company's Series B Stock do not include a provision for the waiver of the anti-dilution provisions, in order to implement fully the Agreement and to consummate the amendment and exercise of the Warrants contemplated thereby, it will be necessary for the Company to amend its Certificate of Incorporation to permit such a waiver. In the Agreement, the Investors (i) consented to the amendment of the Company's Certificate of Incorporation to add a provision excluding from the application of the anti-dilution provisions any transaction that is approved by the holders of a majority of the outstanding shares of Series B Stock and (ii) subject to the effectiveness of such amendment, waived the application of the anti-dilution provisions with respect to the amendment and exercise of the Warrants. Because stockholders holding sufficient shares of the Company's voting stock to effect the proposed amendment and waiver have given their consent, the Company does not intend to submit the matter to a vote at a stockholders' meeting or otherwise to solicit generally the votes of the Company's stockholders with respect to the proposed amendment and waiver. Prior to filing the proposed amendment to the Company's Certificate of Incorporation the Company will prepare an information statement for the Company's stockholders which will be filed with the Securities and Exchange Commission. The information statement and other relevant documents filed with the SEC will be available free of charge at the SEC's Web site, www.sec.gov and stockholders will also be able to obtain copies of the information statement and other relevant documents free of charge by directing their requests to ThermoEnergy Corporation., 124 West Capitol Avenue, Suite 880, Little Rock, Arkansas 72201, Attention: Investor Relations. About ThermoEnergy Corporation Little Rock, Ark.-based ThermoEnergy Corporation is a clean technologies company engaged in the worldwide development of advanced municipal and industrial wastewater treatment systems and carbon reducing clean energy technologies. The Company reported a net loss of $9.85 million on $2.87 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $12.98 million on $4.01 million of revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $3.97 million in total assets, $13.15 million in total liabilities and a $9.18 million total stockholders' deficiency. As reported by the TCR on April 7, 2011, Kemp & Company, a Professional Association, in Little Rock, Arkansas, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred net losses since inception and will require substantial capital to continue commercialization of the Company's technologies and to fund the Companies liabilities. TIRES GALORE: Voluntary Chapter 11 Case Summary ----------------------------------------------- TIRES GALORE OF MICHIGAN: Voluntary Chapter 11 Case Summary ----------------------------------------------------------- Debtor: Tires Galore of Michigan, Inc. 15703 Dale Street Detroit, MI 48223 Bankruptcy Case No.: 11-57485 Affiliate simultaneously filing for Chapter 11: Debtor Case No. ------ -------- Tires Galore of Inkster, Inc. 11-57486 Chapter 11 Petition Date: June 24, 2011 Court: U.S. Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Thomas J. Tucker 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: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 Each Company did not file a list of creditors together with its petition. The petitions were signed by Daniel O'Keefe, president. Affiliate that previously sought Chapter 11 protection: Entity Case No. Petition Date ------ -------- ------------- DTO Holdings, Inc. 11-51535 04/22/11 TOBIANO RESORT: In Receivership After Failing to Keep Current Debt ------------------------------------------------------------------ Cam Fortems at The Daily News reports that B.C. Supreme Court has placed Tobiano Resort in receivership after it failed to keep current on debts totaling more than $27 million. The Bank of Montreal initiated legal action last month after making payment demands on developer Michael Grenier and his companies, including Kamlands Holdings Ltd. and Pagebrook Inc., according to The Daily News. The report relates that the court ordered a Vancouver receiver, Bowra Group, to take control of Grenier's companies on June 9. Mr. Grenier has agreed to stay on to assist the receiver. Mr. Grenier blamed continuing economic fallout from the 1998 recession as well as failure of a number of government agencies to contribute or loan money for a proposed marina for the project's financial problems, The Daily News adds. TRANSDEL PHARMACEUTICALS: Files for Chapter 11 to Sell ------------------------------------------------------ Transdel Pharmaceuticals Inc., a specialty pharmaceutical company, filed for Chapter 11 protection (Bankr. S.D. Calif. Case No. 11- 10497). Transdel has immediately requested court permission to sell its assets, including a drug candidate to treat arthritis, to Cardium Therapeutics. In February 2011, the Company announced that it "ha[d] been exploring strategic alternatives aimed at enhancing shareholder value with two investment banks, American MedTech Advisors and ESC Advisors, a division of KEMA Partners. The goal of this engagement is to continue further development of TDLP-110 (aka Ketotransdel), the Company's lead late stage pain product." Th Debtor is represented by Michael D. Breslauer, Esq., at Solomon Ward Seidenwum & Smith. TRANSDEL PHARMACEUTICALS: Case Summary & 20 Largest Unsecureds -------------------------------------------------------------- Debtor: Transdel Pharmaceuticals, Inc. 4275 Executive Square, Suite 230 La Jolla, CA 92037 Bankruptcy Case No.: 11-10497 Chapter 11 Petition Date: June 26, 2011 Court: United States Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Michael D. Breslauer, Esq. SOLOMON WARD SEIDENWURM & SMITH, LLP 401 B Street, Suite 1200 San Diego, CA 92101 Tel: (619) 231-0303 E-mail: mbreslauer@swsslaw.com Scheduled Assets: $1,771,392 Scheduled Debts: $1,507,122 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/casb11-10497.pdf The petition was signed by John Lomoro, chief financial officer. TRI-STAR ESTATES: Plan Exclusivity Expires Thursday --------------------------------------------------- Tri-Star Estates, LLC's exclusive period to solicit acceptances for its proposed Plan of Reorganization expires June 30, 2011, according to an order signed by Judge Jack B. Schmetterer. As reported in the Troubled Company Reporter on April 13, 2011, according to the Disclosure Statement, the Plan provides for distributions to the holders of Allowed Claims from funds realized from the continued operation of the Debtor's business well as from existing cash deposits and cash resources of the Debtor. The Debtor owns a manufactured home community, consisting of approximately 900 sites located at 43 East 5000 North Road, Bourbonnais, Illinois. To the extent necessary, the payment to Wells Fargo Bank, N.A., as Trustee for the registered holders of Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-1, by and through its special servicer J.E. Robert Company, Inc., may be paid from the proceeds of the refinancing of the underlying mortgage indebtedness due to lender or from the sale of the property. The Debtor will purchase and either rent or sell (with seller financing) new or pre-owned manufactured homes to tenants, increasing occupancy and, therefore, net operating income. Outside lending sources for the financing of manufactured homes would materialize from either banks, credit companies, home manufacturers, conduit lenders, or outside lending sources, further increasing occupancy. Funds for the financing of manufactured homes may also be procured by the syndication of partnership interests. Due to an increase in occupancy and, therefore, net operating income, the refinancing of the property is likely to occur by the end of year three or four with either a credit company, life insurance company, bank, loan securitization group, pension fund, or other lending sources. Treatment of Claims Class 1 - Bank of America -- Interest on its Allowed Class 1 Claims will be paid at the prepetition, non-default contract rate of 5.176%, with interest computed based on a 30 day month/360 day year. Class 2 - Kankakee County Treasurer -- Secured claim will be paid with statutory interest on Effective Date. Class 3 - Tenant Security Deposits will be paid according to terms of tenant leases in ordinary course of Debtor's business. Class 4 - Other Secured Claims: Airco Mobile Home Repair and Rosebrook Carefree Pools will be aid in full in cash with interest based on an annual interest rate of 5.176% and a 30-day/360 day year. Class 5 - John Deere Credit will be paid in full in cash with interest based on an annual interest rate of 5.176% and a 30- day/360 day year. Class 6 - Non-Priority Unsecured Claims Interest will be paid at the annual rate of 5.176%, with interest computed based on a 30 day month/360 day year. Class 7 - The Meadows Limited Partnership will retain its equity interest in the Debtor. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/Tri-StarEstates_AmendedDS.pdf About Tri-Star Estates Chicago, Illinois-based Tri-Star Estates, LLC, is the owner of a manufactured home community, consisting of approximately 900 sites located at 43 East 5000 North Road, Bourbonnais, Illinois. The Company filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 10-49360) on Nov. 3, 2010. The Debtor estimated assets and debts at $10 million to $50 million. No trustee, examiner or committee of unsecured creditors has been appointed to serve in the Debtor's Chapter 11 case. TRITON CONTAINER: S&P Assigns 'BB+' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' corporate credit rating to San Francisco-based Triton Container International Ltd. "At the same time we assigned a 'BBB' rating to the company's proposed $300 million senior notes with a '1' recovery rating, indicating our expectations of a very high (90%-100%) recovery in a payment default scenario. We also assigned a 'BBB' rating to the company's existing $650 million senior secured notes and $335 million term loan, as well as a $400 million revolving line of credit co-issued by Triton and Triton Container Investments LLC, a subsidiary of Triton, with a '1' recovery rating. The outlook is stable," S&P related. "The ratings on Triton reflect its significant position within the marine cargo container leasing industry and the relatively stable earnings and cash flow generated from a substantial proportion of its long-term leases," said Standard & Poor's credit analyst Funmi Afonja. "The ratings also incorporate the cyclicality and capital intensity of the marine cargo container leasing industry. We categorize Triton's business risk profile as fair, its financial risk profile as significant, and its liquidity as adequate." "Our ratings and outlook take into consideration significant incremental debt to fund fleet expansion, higher cash interest expense payments, and the increased operating costs of managing a larger fleet. Nonetheless, we expect the company will maintain its financial profile over at least the next year on increased earnings and strong market fundamentals, which we believe will support high utilization levels and improved lease rates," S&P stated. Triton has historically enjoyed relatively stable earnings and cash flow due to its high proportion of fixed-rate long-term leases. Although term lease rates tend to be lower than those of master leases, term leases result in higher utilization rates and stable cash flow, especially in periods of weaker demand. While master leases command higher rates than term leases, the marine cargo containers may be returned to the lessors in periods of low demand, depressing utilization and increasing costs for the lessor (including storage and redeployment) as it tries to re-lease the marine cargo containers. "The outlook is stable, reflecting our expectation that improving market fundamentals should contribute to increased earnings and help the company maintain a relatively stable financial profile despite its significant incremental debt to finance growth. If earnings do not improve to the levels we expect, leading to a weaker financial profile and FFO to debt falling to the low-teen percentage area for a sustained period, we could lower the ratings," Ms. Afonja continued. "We believe any ratings upgrade is unlikely in the near future, unless we see stronger-than-expected improvement in Triton's earnings or a material reduction in debt, leading to sustained FFO to debt above 25%." TWO JAYS: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Two Jays Spirits, Inc. 383 First Avenue New York, NY 10010 Bankruptcy Case No.: 11-13086 Chapter 11 Petition Date: June 26, 2011 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Paul D. Feinstein, Esq. 102 Sunnyside Drive Yonkers, NY 10705 Tel: (212) 687-2080 E-mail: paulfeinstein@optonline.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 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nysb11-13086.pdf The petition was signed by Adam Goldberg, vice president, secretary and treasurer. UNITED STATES STEEL: Fitch Cuts Issuer Default Rating to 'BB' ------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of United States Steel Corporation to 'BB' from 'BB+'. The Rating Outlook is Stable. The ratings have been downgraded as a result of higher than expected cash burn in 2010 and the possibility of a prolonged period of higher financial leverage. Fitch believes that free cash flow could be negative in the range of $500 million for 2011 following negative free cash flow of $1 billion in 2010 and $736 million (after of $147 million of capital expenditures by variable interest entities) in 2009. While management has a high degree of control over its raw materials, the company has a large fixed cost base and capacity utilization in North America has been less than 80%, thereby pressuring earnings and cash flow. There is no visibility into when capacity utilization in the region will show material improvement. The ratings reflect solid liquidity, weak but slowly improving market conditions, and weak earnings and cash flow. Fitch believes that U.S. Steel will revert to an average annual EBITDA of $2 billion but that it may take as long as 2012 or 2013 to realize. The Stable Outlook reflects Fitch's view that U.S. Steel's liquidity is sufficient to support operations should the recovery remain weak for the next 12-18 months. Operating EBITDA is expected to be about $1.5 billion for the year compared with $520 million for 2010 and a loss of $1.1 billion for 2009. Debt at March 31, 2011 was $3.8 billion. On a GAAP basis, pensions benefit obligations exceeded the fair value of pension plan assets by $1.975 billion at Dec. 31, 2010 and U.S. Steel voluntarily contributed $140 million per year to the main defined pension plan over each of the past five years. Liquidity is solid with cash on hand at quarter-end at $421 million; the $750 million revolver available up to the amount above which the fixed charges coverage ratio requirement is applicable ($637.5 million) and the $525 million accounts receivable facility was fully available. The revolver expires May 11, 2012, and the receivables facility expires July 19, 2013. The revolver has a 1.10:1.00 fixed charges coverage ratio requirement only at such times as availability under the facility is less $112.5 million. As of December 31, 2010, scheduled maturities of debt were $216 million in 2011 and $20 million in 2012, and $300 million in 2013, $863 million in 2014, and $150 million in 2015. In 2011, $196 million of the maturities relate to environmental revenue bonds which the company agreed to refinance related to its separation from Marathon Oil Corporation. The $863 million due in 2014 is an in-the-money convertible issue. Capital expenditure guidance for 2011 was $990 million. Fitch expects interest expense in the range of $230 million to $240 million. A review of the ratings and Outlook would be warranted should liquidity deteriorate beyond current expectations or if results are much weaker than expected. Fitch has downgraded these ratings: -- Long-term IDR to 'BB' from 'BB+'; -- Senior secured credit facility to 'BB+' from 'BBB-'; and -- Senior unsecured notes at to 'BB' from 'BB+'. USA COMMERCIAL: 9th Circ. Rejects Bingham's to Keep Payments ------------------------------------------------------------ Samuel Howard at Bankruptcy Law360 reports that the Ninth Circuit on Friday rejected Bingham McCutchen LLP's attempt to retain $200,000 that USA Commercial Mortgage Co. paid on behalf of an affiliated real estate developer. Issuing a nonprecedential opinion, the appeals court concluded that the $200,000 payment was a constructive fraudulent transfer, agreeing with the district court that the bankruptcy court correctly granted the liquidating trust for USACM summary judgment on its bid to recover the funds, according to Law360. About USA Commercial Based in Las Vegas, Nevada, USA Commercial Mortgage Company, dba USA Capital -- http://www.usacapitalcorp.com/-- provides more than $1 billion in short-term and permanent financing to homebuilders, commercial developers, apartment owners and institutions nationwide. The Company and its debtor-affiliates filed for chapter 11 protection on April 13, 2006 (Bankr. D. Nev. Case Nos. 06-10725 to 06-10729). Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm, and Annette W. Jarvis, Esq., at Ray Quinney & Nebeker, P.C., represented the Debtors in their restructuring efforts. Thomas J. Allison, a senior managing director at Mesirow Financial Interim Management LLC, served as Chief Restructuring Officer for the Debtors. Susan M. Freeman, Esq., and Rob Charles, Esq., at Lewis and Roca LLP represented the Official Committee of Unsecured Creditors of USA Commercial Mortgage Company. Edward M. Burr at Sierra Consulting Group, LLC, provided financial advice to the Creditors Committee of USA Mortgage. Marc A. Levinson, Esq., and Jeffery D. Hermann, Esq., at Orrick, Herrington & Sutcliffe LLP, and Bob L. Olson, Esq., and Anne M. Loraditch, Esq., at Beckley Singleton, Chartered, represented the Official Committee of Equity Security Holders of USA Capital Diversified Trust Deed Fund, LLC. FTI Consulting, Inc., provided financial advice to the Equity Committee of USA Diversified. Candace C. Carlyon, Esq., and Shawn w. Miller, Esq., at Shea & Carlyon, Ltd., and Jeffrey H. Davidson, Esq., Frank A. Merola, Esq., and Eve H. Karasik, Esq., at Stutman, Treister & Glatt, PC, represented the Official Committee of Equity Security Holders of USA Capital First Trust Deed Fund, LLC. Matthew A. Kvarda, at Alvarez & Marsal, LLC, provided financial advise to the Equity Committee of USA First. When the Debtors filed for protection from their creditors, they estimated assets of more than $100 million and debts between $10 million and $50 million. The Debtor's Chapter 11 plan of reorganization was confirmed on Jan. 8, 2007. USACM Liquidating Trust was created pursuant to the Debtors' Third Amended Joint Chapter 11 Plan of Reorganization, which became effective March 12, 2007. Under the Joint Plan, the Trust obtained the right to enforce USACM's causes of action. UTSTARCOM INC: Completes Reorganization Merger ---------------------------------------------- UTStarcom, Inc., and UTStarcom Holdings Corp., announced that the proposed merger to reorganize the Company as a Cayman Islands company was approved by the stockholders of UTStarcom at the annual meeting held on June 24, 2011. The Company announced on June 25, 2011, that the merger has been completed. Pursuant to the approval of the Company's stockholders, UTSI Mergeco Inc., a wholly-owned subsidiary of UTS Holdings, will merge with and into the Company's existing public company, UTStarcom, which is incorporated under the laws of the State of Delaware. As a result of the reorganization, UTS Holdings, currently a wholly-owned subsidiary of UTStarcom, will become the parent company of UTStarcom group of companies. After the reorganization, UTStarcom expects to continue to conduct its business in substantially the same manner. UTStarcom stockholders will have their existing common stock automatically converted into a right to receive an equal number of ordinary shares in UTS Holdings, the new Cayman Islands public company. Upon completion of the Merger, UTS Holdings's shares will be traded on the NASDAQ Stock Market under the same stock symbol "UTSI." Following completion of the Merger, UTS Holdings is expected to qualify as a "foreign private issuer" under the rules and regulations of the Securities and Exchange Commission. The Company will remain subject to the mandates of the Sarbanes-Oxley Act of 2002, and as long as the UTS Holdings' ordinary shares are listed on NASDAQ, the governance and disclosure rules of that stock exchange. The Company announced the official results of its 2011 Annual General Meeting, held on June 24, 2011, in Beijing, China. The shareholders: (1) elected Jack Lu, Baichuan Du and Xiaoping Li as Class II Directors to serve until the 2014 Annual General Meeting of Shareholders; (2) ratified PricewaterhouseCoopers Zhong Tian CPAs Limited Company as the Company's independent auditor for the fiscal year ending Dec. 31, 2011; (3) approved on an advisory basis, the 2010 executive compensation awarded to the Company's named executive officers as disclosed in the proxy statement for the 2011 annual general meeting of stockholders; (4) approved the proposal to hold future advisory votes every year to approve the compensation of the Company's named executive officers; and (5) adopted the Agreement and Plan of Merger and Reorganization, entered into as of April 25, 2011, by and among UTStarcom, UTStarcom Holdings Corp., a Cayman Islands exempted company and a wholly-owned subsidiary of UTStarcom, and UTSI Mergeco Inc. About UTStarcom, Inc. UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. The Company's headquarters are currently in Alameda, California, with its research and design operations primarily in China. The Company reported a net loss of $65.29 million on $291.53 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $225.70 million on $386.34 million of net sales during the prior year. The Company's balance sheet at March 31, 2011, showed $726.30 million in total assets, $488.06 million in total liabilities, and $238.23 million in total equity. VERENIUM CORP: Partners with Novus to Develop Animal Nutrition -------------------------------------------------------------- Verenium Corporation and Novus International Inc. announced a strategic collaboration to jointly develop and commercialize a suite of new enzyme products from Verenium's late-stage product pipeline in the animal nutrition and health area globally. "We are extremely enthusiastic about our partnership with Novus, the potential opportunity it represents for the continued development of our pipeline and for Verenium to become a more active participant in the animal health and nutrition marketplace with our suite of high-performance enzyme products," said James Levine, President and Chief Executive Officer at Verenium. "Novus brings world-class leadership and experience launching products in this market, and with our combined skills, we look forward to working closely as partners to commercialize a series of market- leading products over the coming years." Thad Simons, President and Chief Executive Officer of Novus International adds, "We are very excited about our partnership with Verenium, as it will propel Novus toward new solutions to performance challenges and help us as we work to add further value to our customers' businesses. Verenium's approach to product development is very innovative and based on the highest standards of science. This partnership is a natural alignment and we expect to deliver great results for our industry working together." Key terms and highlights of the collaboration include: * The initial focus of the partnership will be on select late-stage product candidates from Verenium's pipeline targeting the poultry, swine, beef, dairy, aquaculture and companion animals markets; * The global partnership will include equal management representation from Verenium and Novus to direct various activities, including budgeting, development and marketing plans; * The companies will partner equally to fund development and commercialization and share in the profits, as well as provide other resources and expertise that would otherwise have been funded solely by Verenium; * Verenium will receive license payments of $2.5 million upon signing and $2.5 million following regulatory filings or commercial activity; and * In the marketplace, all products will be co-branded by Verenium and Novus. About The Animal Health and Nutrition Market Enzymes are used in the animal health and nutrition market to allow livestock, poultry, aquaculture and companion animals to more readily digest and absorb the nutrients naturally occurring in grains and protein meals. According to industry reports in the animal health and nutrition market, enzymes are experiencing remarkable growth due to their ability to provide better nutrition and an improved environmental impact. Global sales of animal feed enzymes are estimated to have reached $520 million in 2010, and are expected to grow 6 to 7 percent annually to reach over $720 million by 2015, making it one of the largest and fastest growing markets for industrial enzymes. Given the trends of global population growth, increased meat consumption in emerging markets and increased grain prices leading to higher feed costs for producers, enzymes are an effective means of improving the sustainability of animal production both economically and environmentally. About Verenium Corporation Cambridge, Mass.-based Verenium Corporation (NASDAQ: VRNM) -- http://www.verenium.com/-- is a pioneer in the development and commercialization of high-performance enzymes for use in industrial processes. Verenium currently sells enzymes developed using its R&D capabilities to industrial customers globally for use in markets including biofuels, animal health and oil seed processing. The Company's balance sheet at March 31, 2011, showed $73.52 million in total assets, $65.80 million in total liabilities and $7.72 million in stockholders' equity. The Company reported a net loss of $5.35 million on $52.07 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $56.24 million on $48.82 million of total revenue during the prior year. As reported in the Troubled Company Reporter on March 19, 2010, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring operating losses and accumulated deficit of $630.0 million at Dec. 31, 2009. VINEYARD AT SERRA RETREAT: Sec. 341 Creditors' Meeting on July 22 ----------------------------------------------------------------- The United States Trustee for Region 16 will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of The Vineyard at Serra Retreat, LLC, on July 22, 2011, at 10:30 a.m. at RM 105, 21051 Warner Center Lane, in Woodland Hills, California. The meeting was originally set for July 14. The Vineyard at Serra Retreat, LLC, in Malibu, California, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17323) on June 15, 2011. Judge Victoria S. Kaufman presides over the case. The Law Offices of David W. Meadows serves as bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by John Hall, manager. WII COMPONENTS: Commences Tender Offer and Consent Solicitation --------------------------------------------------------------- WII Components, Inc., commenced a cash tender offer and consent solicitation with respect to any and all of its outstanding $105,850,000 aggregate principal amount of 10% Senior Notes due 2012. The tender offer and consent solicitation are being made subject to the terms and conditions set forth in an Offer to Purchase and Consent Solicitation Statement dated June 24, 2011, which more fully sets forth the terms and conditions of the tender offer and consent solicitation. The tender offer and consent solicitation will expire at 11:59 p.m., New York City time, on July 22, 2011, unless extended or earlier terminated. Holders who validly tender (and do not validly withdraw) their Notes on or prior to the consent payment deadline of 5:00 p.m., New York City time, on July 7, 2011, and whose Notes are accepted for payment, will receive total consideration equal to $1,002.50 per $1,000 principal amount of Notes, plus any accrued and unpaid interest on the Notes up to, but not including, the early settlement date. The Total Consideration includes a consent payment of $2.50 per $1,000 principal amount of Notes. Holders who validly tender (and do not validly withdraw) their Notes after the Consent Date, but on or prior to the Expiration Date, and whose Notes are accepted for payment, will receive the tender offer consideration equal to $1,000.00 per $1,000 principal amount of Notes, plus any accrued and unpaid interest on the Notes up to, but not including, the final settlement date described below. Holders of Notes who tender after the Consent Date will not receive a consent payment. Holders who tender Notes on or prior to the Consent Date may withdraw such Notes at any time on or prior to the Consent Date. In connection with the tender offer, the Company is also soliciting consents from the holders of the Notes to certain proposed amendments that would eliminate substantially all of the restrictive covenants and certain events of default contained in the indenture governing the Notes. Adoption of the proposed amendments with respect to the Notes requires the consent of the holders of at least a majority of the outstanding principal amount of the Notes. Holders who tender their Notes will be deemed to consent to the proposed amendments, and holders may not deliver consents to the proposed amendments without tendering their Notes in the tender offer. The tender offer and consent solicitation are subject to customary conditions, including, among others, a financing condition that the Company receive net proceeds from its proposed new senior secured credit facilities and subordinated notes in an amount sufficient to fund all of its obligations under the tender offer and consent solicitation. Provided that the conditions to the tender offer have been satisfied or waived, the Company will pay for Notes purchased in the tender offer, together with any accrued and unpaid interest, on either the early settlement date or the final settlement date, as applicable. Holders of Notes that have been validly tendered (and not validly withdrawn) and accepted by the Company by the Consent Date will receive the Total Consideration and will be paid on the early settlement date, which is expected to be promptly after satisfaction of the financing condition and following the Consent Date, provided that all other conditions to the tender offer have been satisfied or waived at such time. Holders of Notes that have been validly tendered (and not validly withdrawn) and accepted by the Company after the Consent Date, but on or prior to the Expiration Date, will receive the Tender Offer Consideration only, and will be paid on the final settlement date, which is expected to be promptly following the date on which the Expiration Date occurs. The Company may, in its sole discretion, accept for payment on the early settlement date Notes tendered after the Consent Date but prior to the early settlement date. The Company has engaged D.F. King & Co., Inc., to act as tender agent and information agent for the tender offer and consent solicitation. Questions regarding the tender offer and consent solicitation and requests for documents may be directed to D.F. King & Co., Inc., at (888) 628-9011 (toll free) or (212) 269-5550 (collect). About WII Components WII Components Inc. manufactures hardwood cabinet doors and related components in the United States, selling primarily to kitchen and bath cabinet original equipment manufacturers. As reported in the TCR on Oct. 27, 2010, Standard & Poor's Ratings Services assigned its preliminary 'B-' corporate credit rating to St. Cloud, Minn.-based WII Components Inc. The rating outlook is stable. "The 'B-' preliminary corporate credit rating on WII reflects its highly leveraged financial risk profile and vulnerable business risk profile," said Standard & Poor's credit analyst Pamela Rice. In November 2010, S&P withdrew all of its preliminary ratings, including its preliminary 'B-' corporate credit rating, on WII Components because the company's proposed $115 million senior secured notes offering was not completed. The Company reported a net loss of $3.37 million on $145.38 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $15.18 million on $130.45 million of net sales during the prior year. The Company's balance sheet at March 31, 2011, showed $196.13 million in total assets, $130.42 million in total liabilities and $65.70 million in total stockholders' equity. WATERSCAPE RESORT: U.S. Trustee Appoints 3-Member Creditor's Panel ------------------------------------------------------------------ Tracy Hope Davis, the United States Trustee for Region 2, under 11 U.S.C. SEC 1102(a) and (b), appointed unsecured creditors who are willing to serve on the Official Committee of Unsecured Creditors of Waterscape Resort LLC, aka Cassa NY Hotel And Residences. The Committee members are: 1. LOAR Corporate Servicing, Inc. P.O. Box 131 Yonkers, New York 10704 ATTN: Armando Rodriguez, Jr. Tel: (914) 969-0009 2. Council for Economic Education 122 East 42nd Street, 26th Floor New York, New York 10168 ATTN: Cynthia Hallenbeck Acting Chief Financial Officer Tel: (212) 730-7007 3. Tecton N.Y. Management Services, LLC 601 Brickell Key Drive, Suite 902 Miami, Florida 33131 ATTN: John Michael Register Tel: (305) 577-8484 About Waterscape Resort Waterscape Resort LLC, aka Cassa NY Hotel And Residences, is a Delaware limited liability company formed on or about Jan. 24, 2005. The principal office of the Debtor is at 15 West 34th Street, New York, New York 10001. On July 19, 2005, Waterscape acquired the property, consisting of the three contiguous buildings at 66, 68 and 70 West 45th Street in Manhattan, for the sum of $20 million to develop the property into a 45-storey condominium project including a luxury hotel, a restaurant and luxury residential apartments. The purchase was financed with a $17 million acquisition loan and mortgage from U.S. Bank Association. Construction of the hotel and residential units, given the name Cassa NY Hotel and Residences, commenced in July 2007. By the end of September 2010, the hotel and residential units were completed. The Debtor generates its revenue from guests who stay at the hotel and in the Debtor's residential condominium units, and from sales of unsold residential condominium units. The Debtor's hotel and rental business has produced gross revenues of approximately $17 million to $18 million on an annual basis, and by the end of September 2010, the Debtor had sold five residential apartment units for a total of approximately $12,710,340. The Debtor's Cassa NY Hotel and Residences features 165 hotel rooms, and above the hotel units, 57 residences. The Debtor's restaurant will occupy the first level below ground, but will be visible from the ground floor hotel lobby. The Debtor's restaurant is not yet open for business. The Debtor has for several months been embroiled in litigation with numerous contractors and subcontractors who have asserted alleged mechanics lien claims against the Property totaling approximately $20 million. As of the Petition Date, the Debtor had outstanding approximately $134.4 million of secured loan principal obligations under credit facilities with US Bank and USB Capital Resources, Inc. The debt is secured by liens upon all of the assets of the Debtor, including mortgages on the Debtor's real property, together with liens on all rents, proceeds and cash of the Debtor, pledges of member interests in Waterscape, and guarantees by Waterscape members and other third-party grantors. The Debtor's secured debt was incurred under three separate agreements for: (i) an acquisition and project loan; (ii) a construction loan; and (iii) a mezzanine loan; each of which was made in connection with the acquisition or development of the Debtor's property. Over the last several months, the Debtor engaged in extensive negotiations with the Secured Lenders regarding the parameters of a comprehensive restructuring. The Debtor also engaged in extensive marketing efforts and negotiations to sell its hotel assets to a non-insider buyer. The restructuring discussions between the Debtor and the Secured Lenders reached an impasse, and on March 21, 2011, UBS, the junior of the two Secured Lenders, filed a foreclosure action against the Debtor in the Supreme Court of the State of New York, County of New York. The Debtor then filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-11593) on April 5, 2011. Brett D. Goodman, Esq., and Lee William Stremba, Esq., at Troutman Sanders LLP represent the Debtor as Bankruptcy Counsel. Holland & Knight LLP serves as its special litigation counsel. The Debtor disclosed $214,285,027 in assets and $158,756,481 in liabilities as of the Chapter 11 filing. WATERSCOPE RESORT: Committee Objects to Disclosure Statement ------------------------------------------------------------ The Official Committee of Unsecured Creditors asks the U.S. Bankruptcy Court for the Southern District of New York to reject Waterscape Resort LLC's proposed Disclosure Statement and plan of reorganization. Louis T. DeLucia, Esq., at Schiff Hardin LLP, counsel to the Committee, states that although the Plan purportedly provides for payment in full of all allowed unsecured claims, with interest, the Plan fails to: (a) properly disclose or assess the correct amount of the unsecured claims; (b) demonstrate in any way that the Debtor will have the cash on hand or immediately available to pay the allowed unsecured claims on the date(s) provided for under the Plan; and (c) establish that the Plan is "feasible" and not likely to require further financial reorganization or liquidation. About Waterscape Resort Waterscape Resort LLC, aka Cassa NY Hotel And Residences, is a Delaware limited liability company formed on or about Jan. 24, 2005. The principal office of the Debtor is at 15 West 34th Street, New York, New York 10001. On July 19, 2005, Waterscape acquired the property, consisting of the three contiguous buildings at 66, 68 and 70 West 45th Street in Manhattan, for the sum of $20 million to develop the property into a 45-storey condominium project including a luxury hotel, a restaurant and luxury residential apartments. The purchase was financed with a $17 million acquisition loan and mortgage from U.S. Bank Association. Construction of the hotel and residential units, given the name Cassa NY Hotel and Residences, commenced in July 2007. By the end of September 2010, the hotel and residential units were completed. The Debtor generates its revenue from guests who stay at the hotel and in the Debtor's residential condominium units, and from sales of unsold residential condominium units. The Debtor's hotel and rental business has produced gross revenues of approximately $17 million to $18 million on an annual basis, and by the end of September 2010, the Debtor had sold five residential apartment units for a total of approximately $12,710,340. The Debtor's Cassa NY Hotel and Residences features 165 hotel rooms, and above the hotel units, 57 residences. The Debtor's restaurant will occupy the first level below ground, but will be visible from the ground floor hotel lobby. The Debtor's restaurant is not yet open for business. The Debtor has for several months been embroiled in litigation with numerous contractors and subcontractors who have asserted alleged mechanics lien claims against the Property totaling approximately $20 million. As of the Petition Date, the Debtor had outstanding approximately $134.4 million of secured loan principal obligations under credit facilities with US Bank and USB Capital Resources, Inc. The debt is secured by liens upon all of the assets of the Debtor, including mortgages on the Debtor's real property, together with liens on all rents, proceeds and cash of the Debtor, pledges of member interests in Waterscape, and guarantees by Waterscape members and other third-party grantors. The Debtor's secured debt was incurred under three separate agreements for: (i) an acquisition and project loan; (ii) a construction loan; and (iii) a mezzanine loan; each of which was made in connection with the acquisition or development of the Debtor's property. Over the last several months, the Debtor engaged in extensive negotiations with the Secured Lenders regarding the parameters of a comprehensive restructuring. The Debtor also engaged in extensive marketing efforts and negotiations to sell its hotel assets to a non-insider buyer. The restructuring discussions between the Debtor and the Secured Lenders reached an impasse, and on March 21, 2011, UBS, the junior of the two Secured Lenders, filed a foreclosure action against the Debtor in the Supreme Court of the State of New York, County of New York. The Debtor then filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-11593) on April 5, 2011. Brett D. Goodman, Esq., and Lee William Stremba, Esq., at Troutman Sanders LLP represent the Debtor as Bankruptcy Counsel. Holland & Knight LLP serves as its special litigation counsel. The Debtor disclosed $214,285,027 in assets and $158,756,481 in liabilities as of the Chapter 11 filing. WESTLAND PARCEL: Wants to Hire David Goodrich as CRO ---------------------------------------------------- Westland Parcel J. Partners, LLC, asks permission from the U.S. Bankruptcy Court for the Central District of California to employ as chief Restructuring Officer: David M. Goodrich Goodrich Law Corporation 26459 Rancho Parkway South Lake Forest, CA 92630 (949) 709-2662 The Debtor is requesting that the court grant the motion without a hearing, as provided for in LBR 9013-1 (0). Mr. Goodrich will work with the Debtor's current professionals and staff in its efforts to monetize assets and propose a liquidating Chapter 11 Plan. Mr. Goodrich will have all of the powers of a sole managing member of the Debtor. Mr. Goodrich will be compensated at the rate of $250 per hour, with a $5,000, retainer to be paid by the Debtor after approval of the Application. In addition, the Debtor will reimburse Mr. Goodrich for reasonable and necessary expenses incurred in connection with the Chapter 11 case. Mr. Goodrich has not sought, and will not be paid, a success fee. Mr. Goodrich maintains that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Westland Parcel J Partners Long Beach, California-based Westland Parcel J Partners, LLC, is developing a mixed-use commercial project consisting of general aviation, aviation-oriented office, retail, restaurant, and other airport related uses. The Company filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 10-58987) on Nov. 15, 2010. Jeffrey S Shinbrot, Esq., at The Shinbrot Firm, assists the Debtor in its restructuring effort. Kallman & Co., LLC, serves as its certified public accountants. AG Commercial serves as its leasing broker. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate David William Neary (Bankr. C.D. Calif. Case No. 10- 39802) filed separate Chapter 11 petition on July 20, 2010. WESTLAND PARCEL: Wants to Sell All Assets to Dubar -------------------------------------------------- Westland Parcel J Partners, LLC, asks the U.S. Bankruptcy Court for the Central District of California for authority to sell substantially all of the assets of the instant chapter 11 estate to T. Courtney Dubar, free and clear of liens, claims and encumbrances, or to the highest over-bidder. The Debtors also seek authorization to assume and assign leases and executory contracts, including the Debtor's ground lease with the City of Long Beach, to Dubar or the highest over-bidder. The terms of the proposed sale are: a. Dubar will pay the Debtor's prepetition secured real property taxes in full, estimated to be $258,000; b. Dubar will contribute an additional $100,000 to the estate; c.. Dubar will release his secured interests in, and will cause Pacific Western Bank (PWB) to release its secured interest in, an additional $100,000 of the Debtor's cash collateral so that the Debtor has an unencumbered cash balance upon consummation of the transaction of $200,000; d. Dubar will release his secured interests in, and will cause PWB to release its secured interests in, sufficient additional cash collateral to cure any and all defaults in the tenant subleases to be assigned to Dubar, and to the extent unencumbered cash is insufficient to cure such defaults, Dubar will contribute additional funds as determined by this Court to be amounts necessary to cure defaults in assign subleases; e. Dubar will release and re-convey his secured claims against the estate, if Dubar is the successful purchaser and Dubar will subordinate his unsecured claims to the first $200,000 of estate cash. If there are overbidders, Dubar reserves his right to credit bid. f. PWB will release all claims, including PWB's secured claims, which shall be fully re-conveyed. The Debtor will release all claims against PWB. Jeffrey S. Shinbrot, Esq., attorney to the Debtor, states that proposed sale will result in release of in excess of $15,000,000 of secured debt and leave the Debtor with at least of $200,000 of unencumbered assets, which will form the basis of its liquidating chapter 11 plan. About Westland Parcel J Partners Long Beach, California-based Westland Parcel J Partners, LLC, is developing a mixed-use commercial project consisting of general aviation, aviation-oriented office, retail, restaurant, and other airport related uses. The Company filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 10-58987) on Nov. 15, 2010. Jeffrey S Shinbrot, Esq., at The Shinbrot Firm, assists the Debtor in its restructuring effort. Kallman & Co., LLC, serves as its certified public accountants. AG Commercial serves as its leasing broker. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate David William Neary (Bankr. C.D. Calif. Case No. 10- 39802) filed separate Chapter 11 petition on July 20, 2010. * Fox Sees These Ten Brands Will Disappear in 2012 -------------------------------------------------- Chapter11Cases.com reports that Fox Business says that these ten brands will disappear in 2012. -- Sony Pictures -- A&W -- Saab -- American Apparel -- Sears -- Sony Ericsson -- Kellogg's Corn Pops -- MySpace -- Soap Opera Digest -- Nokia * Rhode Island Lawmakers Mull Changes to Receivership Law --------------------------------------------------------- The Associated Press reports that Rhode Island lawmakers are considering changes to a law allowing the state to take over financially troubled cities. A bill scheduled for a hearing would allow elected city leaders to make non-financial decisions, according to the AP. The report relates that the receiver law now allows the governor to appoint a board or a receiver to assume total control of cities facing severe financial distress. Central Falls is the only city so far placed under the control of a receiver. City leaders initially sought state intervention, but objected when the receiver relegated the city council to an advisory board, the report notes. Rep. Agostinho Silva is the bill's sponsor. Mr. Siva said his bill would allow elected leaders to handle day- to-day affairs including city licenses, appointments to boards and planning, while keeping financial decisions in the receiver's hands, the AP adds. * IMF Urges Debt Limit Action in U.S. to Avoid Default ------------------------------------------------------ The International Monetary Fund urged the United States government to raise its borrowing limit, warning that inaction could lead to higher interest rates that would harm the domestic economy and world financial markets. Budget negotiations between U.S. President Barack Obama's Democrats and Republicans fell apart in Washington earlier this week. The amount the U.S. government can borrow to help finance its operations is limited to $14.29 trillion, which was already exhausted in May. U.S. Treasury Secretary Timothy Geithner said that the U.S. needs to raise the statutory limit as the U.S. Treasury Department is due to pay off $30 billion in maturing short-term debt on Aug. 4. Republican lawmakers including Senator Pat Toomey of Pennsylvania and Representative Michele Bachmann of Minnesota, however, have opposed the plan and instead suggested a "prioritization" -- the U.S. would make interest payments on its debt but would defer payment of other obligations. According to Mr. Geithner, the scheme would still cause investors to shun U.S. Treasury securities. "This `prioritization' proposal advocates a radical and deeply irresponsible departure from the commitment by presidents of both parties, throughout American history, to honor all of the commitments our nation has made," Mr. Geithner said. Modest Pace The U.S. economy continues to recover at a modest pace, but has hit a soft patch. Concerns about risks, including the lack of a credible deficit reduction plan, persist, the IMF said after wrapping up its annual review of the world's largest economy. An IMF team, led by IMF Acting Managing Director John Lipsky, met with Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke, senior government officials, and representatives from the private sector during May 27-June 27. "The U.S. economic expansion remains only moderate. At the same time, there are significant challenges ahead that will need to be dealt with decisively if the expansion is to strengthen," said Mr. Lipsky at a press conference on June 29. "The expansion could outpace our forecast if consumer confidence improves faster than we expect, but, on the downside, still-weak fundamentals pose risks to the housing markets. Moreover, a loss of fiscal credibility could cause an increase in interest rates or a sovereign downgrade, with significant global repercussions," he added. Debt Ceiling "At the opposite extreme, an excessively front-loaded adjustment could hurt the recovery. And a worsening of financial turmoil in European sovereign and bank debt markets could hurt U.S. growth through financial sector linkages," Mr. Lipsky noted. The debate over the debt ceiling has not yet been resolved. A failure to raise the debt ceiling would lead to a severe shock to the global economy, the IMF statement said. Taxing the Rich The Wall Street Journal's Carol E. Lee and Janet Hook report that President Obama on Wednesday made the case Wednesday for ending certain tax breaks for "millionaires and billionaires" in a deal to keep the U.S. government from defaulting on its debt, sharpening his tone with just weeks left for Democrats and Republicans to reach an agreement. The Journal says the proposal could raise as much as $64 billion over 10 years, but would do little to dent the $1.5 trillion annual deficit. According to the report, Republicans responded by repeating their opposition to any tax increases, saying they would hurt the fragile economy. Senate Democratic leaders met with Mr. Obama Thursday for a briefing on the budget talks, and he told them he had made a general proposal to Republicans and hoped to get a response by the end of the week, according to a person familiar with the meeting, the Journal says. The Journal notes Democrats and Republicans have agreed on about $1 trillion in spending cuts over at least 10 years. The final sticking point is whether to include some tax changes, as Democrats insist, or none, as Republicans want. The Journal notes negotiators are trying to find ways to get a deficit-reduction deal that can win enough Democratic and Republican votes to pass Congress, clearing the way for an increase in the $14.29 trillion federal borrowing limit. Treasury Department officials warn that the debt ceiling must be lifted before Aug. 2 or the government will run out of cash to pay all its bills, which could shake financial markets and cause another recession. According to the Journal, Moody's Investors Service Inc. said Wednesday that a U.S. debt default would lead not just to a downgrade of the government's top-notch credit rating, but also to lowering of other credit ratings linked to the government. These include ratings on bonds issued by mortgage-finance firms Fannie Mae and Freddie Mac, and bonds issued by banks guaranteed by the U.S. government. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In Re Log Cabin Inn, Inc. fka Bay Minette Days Inn, Inc. Bankr. S.D. Ala. Case No. 11-02412 Chapter 11 Petition filed June 16, 2011 See http://bankrupt.com/misc/alsb11-02412.pdf In Re Hamid Keshavarz Bankr. C.D. Calif. Case No. 11-17414 Chapter 11 Petition filed June 16, 2011 In Re Mohammad Moayery Bankr. C.D. Calif. Case No. 11-17410 Chapter 11 Petition filed June 16, 2011 In Re Subrok, LLC Bankr. C.D. Calif. Case No. 11-29821 Chapter 11 Petition filed June 16, 2011 See http://bankrupt.com/misc/cacb11-29821.pdf In Re Robert Olson Bankr. E.D. Calif. Case No. 11-16894 Chapter 11 Petition filed June 16, 2011 In Re Premier Construction Group, LLC Bankr. M.D. Fla. Case No. 11-04441 Chapter 11 Petition filed June 16, 2011 See http://bankrupt.com/misc/flmb11-04441.pdf In Re Hector Diaz Bankr. D. Nev. Case No. 11-19531 Chapter 11 Petition filed June 16, 2011 In Re Joseph Perconti Bankr. D. N.J. Case No. 11-28397 Chapter 11 Petition filed June 16, 2011 In Re Reel Plumbing, Inc. Bankr. D. N.J. Case No. 11-28377 Chapter 11 Petition filed June 16, 2011 See http://bankrupt.com/misc/njb11-28377.pdf In Re Off the Wall Products LLC fka OTW Safety Bankr. D. Utah Case No. 11-28938 Chapter 11 Petition filed June 16, 2011 See http://bankrupt.com/misc/utb11-28938p.pdf See http://bankrupt.com/misc/utb11-28938c.pdf In Re Garry Vandekieft Bankr. W.D. Wash. Case No. 11-17130 Chapter 11 Petition filed June 16, 2011 In Re Alex Rahmi Bankr. N.D. W.Va. Case No. 11-01129 Chapter 11 Petition filed June 16, 2011 In Re Otto Noriega Bankr. C.D. Calif. Case No. 11-29986 Chapter 11 Petition filed June 17, 2011 In Re Michael Milot Bankr. D. Colo. Case No. 11-24493 Chapter 11 Petition filed June 17, 2011 In Re Denise Roberts-Dude Bankr. S.D. Fla. Case No. 11-26900 Chapter 11 Petition filed June 17, 2011 In Re Troy Reddick Bankr. S.D. Ga. Case No. 11-60324 Chapter 11 Petition filed June 17, 2011 In Re Joseph's Bistro & Pub, Inc. Bankr. D. Mass. Case No. 11-42618 Chapter 11 Petition filed June 17, 2011 See http://bankrupt.com/misc/mab11-42618.pdf In Re Caring Hands Chiropractic, P.C. Bankr. W.D. Mich. Case No. 11-06654 Chapter 11 Petition filed June 17, 2011 See http://bankrupt.com/misc/miwb11-06654.pdf In Re Dewey Furniture, Inc. Bankr. D. Minn. Case No. 11-60629 Chapter 11 Petition filed June 17, 2011 See http://bankrupt.com/misc/mnb11-60629.pdf In Re Gobinder Chopra Bankr. D. Nev. Case No. 11-19571 Chapter 11 Petition filed June 17, 2011 In Re Broco Developement Corp. Bankr. N.D. N.Y. Case No. 11-11942 Chapter 11 Petition filed June 17, 2011 See http://bankrupt.com/misc/nynb11-11942.pdf In Re Duke Bazzel Tobacco and Lounge, LLC Bankr. N.D. N.Y. Case No. 11-11940 Chapter 11 Petition filed June 17, 2011 See http://bankrupt.com/misc/nynb11-11940.pdf In Re Portfolio Investments LLC Bankr. W.D. Wash. Case No. 11-44932 Chapter 11 Petition filed June 17, 2011 filed pro se In Re Steven Nikolich Bankr. W.D. Wash. Case No. 11-44933 Chapter 11 Petition filed June 17, 2011 In Re Laufer Builders Inc. Bankr. E.D. Wis. Case No. 11-29740 Chapter 11 Petition filed June 17, 2011 filed pro se In Re HB Global, LLC Bankr. D. Ariz. Case No. 11-17648 Chapter 11 Petition filed June 18, 2011 See http://bankrupt.com/misc/azb11-17648.pdf In Re David Johnson Bankr. D. Idaho Case No. 11-41001 Chapter 11 Petition filed June 18, 2011 In Re David Allison Bankr. E.D. N.C. Case No. 11-04728 Chapter 11 Petition filed June 18, 2011 In Re Job Cruz Bankr. N.D. Calif. Case No. 11-55761 Chapter 11 Petition filed June 19, 2011 In Re Luisa Barrera Bankr. S.D. Fla. Case No. 11-26953 Chapter 11 Petition filed June 19, 2011 In Re The Greek Magazi, LLC Bankr. N.D. Ill. Case No. 11-25581 Chapter 11 Petition filed June 19, 2011 See http://bankrupt.com/misc/ilnb11-25581p.pdf See http://bankrupt.com/misc/ilnb11-25581c.pdf In Re Susan Angell Bankr. C.D. Calif. Case No. 11-36504 Chapter 11 Petition filed June 20, 2011 In Re Synergy 2002 R.E.I., Inc. Bankr. C.D. Calif. Case No. 11-36567 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/cacb11-36567.pdf In Re Tatiana Khan Bankr. C.D. Calif. Case No. 11-36527 Chapter 11 Petition filed June 20, 2011 In Re James McDilda Bankr. E.D. Calif. Case No. 11-35260 Chapter 11 Petition filed June 20, 2011 In Re Editha Masacayan Bankr. N.D. Calif. Case No. 11-32304 Chapter 11 Petition filed June 20, 2011 In Re Evaristo Rodriguez Bankr. N.D. Calif. Case No. 11-46616 Chapter 11 Petition filed June 20, 2011 In Re Epicurean, Inc. Bankr. S.D. Calif. Case No. 11-10172 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/casb11-10172.pdf In Re Men Women & Youth In Action USA Inc. Bankr. M.D. Fla. Case No. 11-09315 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/flmb11-09315.pdf In Re Seminole Drive Developers LLC Bankr. S.D. Fla. Case No. 11-27032 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/flsb11-27032p.pdf See http://bankrupt.com/misc/flsb11-27032c.pdf In Re Erwin Quinanola Bankr. N.D. Ill. Case No. 11-25768 Chapter 11 Petition filed June 20, 2011 In Re Garden Homes Bankr. S.D. Ind. Case No. 11-07791 Chapter 11 Petition filed June 20, 2011 In Re Top Roofing, Inc. Bankr. D. Md. Case No. 11-22814 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/mdb11-22814.pdf In Re Daniel Sullivan Bankr. D. Mass. Case No. 11-15869 Chapter 11 Petition filed June 20, 2011 In Re Marracci Temple No. 13 of Detroit, MI, A Subordinate Temple of the Imperial Council, Ancient Eqyptian Arabic Order Bankr. E.D. Mich. Case No. 11-57093 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/mieb11-57093.pdf In Re Joel Groshong Bankr. S.D. Miss. Case No. 11-02179 Chapter 11 Petition filed June 20, 2011 In Re Jean-David Daudet Bankr. D. Nev. Case No. 11-196529 Chapter 11 Petition filed June 20, 2011 In Re KCA, LLC dba GW's Pantry Bankr. W.D. N.C. Case No. 11-31616 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/ncwb11-31616.pdf In Re KATN Living Trust Bankr. D. Nev. Case No. 11-19669 Chapter 11 Petition filed June 20, 2011 filed pro se In Re Geoffrey Thompson Bankr. D. Ore. Case No. 11-35376 Chapter 11 Petition filed June 20, 2011 In Re Internal Medicine Associates, PC Bankr. D. S.C. Case No. 11-03870 Chapter 11 Petition filed June 20, 2011 See http://bankrupt.com/misc/scb11-03870.pdf ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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 ***