/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110713.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, July 13, 2011, Vol. 15, No. 192 Headlines 2271 ASSOCIATES: Case Summary & 18 Largest Unsecured Creditors 3900 BISCAYNE: U.S. Trustee Unable to Form Committee AERIE RESORT: Receiver Cuts Asking Price to $3.95 Million AES THAMES: Seeks Access to Cash to Get Market Participant Status ALIZE: Case Summary & 20 Largest Unsecured Creditors AMBAC FINANCIAL: Hearing on Plan Disclosures Set for Aug. 12 AMBAC FINANCIAL: Plan Does Not Benefit Policyholders, Says OCI AMBAC FINANCIAL: Wisc. Court Okays R. Peterson as Consultant AMERA WINTER: Case Summary & 20 Largest Unsecured Creditors ANDRE ROCHAT: French Restaurants File for Bankruptcy in Las Vegas ARTS DES PROVINCES: Files for Chapter 7 Bankruptcy BABY FOX: Terminates 868,262 Common Shares Registration BANK OF AMERICA: Treads Lightly on Involuntary Filers BANKUNITED FINANCIAL: Partial Settlement With FDIC Approved BARZEL INDUSTRIES: Plan Outline Hearing Rescheduled to July 25 BEAR VALLEY: Opposes Ronen Armony Motion to Dismiss Case BEARINGPOINT INC: Stern v. Marshall Affects Judge's Ruling BERNARD L MADOFF: SIPC Says Bankruptcy Court Should Hear Suits BORINQUEN FEDERAL: NCUA Liquidates Credit Union Due to Insolvency BPP TEXAS: Obtains Court Nod to Hire FTI Consulting as Advisor CATHOLIC CHURCH: Lay Committee Proposes to Tap Buck Consultants CATHOLIC CHURCH: Milw. Parties Agree on Oct. 15 Claims Bar Date CATHOLIC CHURCH: Cemetery Trust Sues Milw. Creditors Committee CENTURION PROPERTIES: Can Use GECC Cash Collateral Until Sept. 30 CENTURION PROPERTIES: Employs Michael Hines as Special Counsel CENTURION PROPERTIES: D. Kirby, Et Al. Seek Trustee Appointment CHARLESTON ASSOCIATES: Wants Plan Filing Exclusivity Until July 29 CHRISTIAN BROTHERS: Court OKs Gordon Tilden as Litigation Counsel CHRISTIAN BROTHERS: Newmark Okayed as Broker for School Property CHURCH AT SOUTH LAS VEGAS: Files for Chapter 11 Protection CMC CAPITAL: Court Affirms Chapter 7 Conversion COBALIS CORPORATION: Case Summary & 20 Largest Unsecured Creditors CONTINENTAL COMMON: Extends Access to Cash Collateral to July 31 COPPER CREEK: Court Tosses Bid to Reject Chief Industries' Deal CORBIN PARK: Aspen Square Agrees to Buy Project for $14 Million CREATIVE CAPITAL: Default Judgment Against Wells Fargo Vacated CRYSTAL CATHEDRAL: Said to Be Interested in Other Offers DEAN BENNETT: Case Summary & 18 Largest Unsecured Creditors DEB SHOPS: Gets Court OK to Tap Kurtzman Carson as Claims Agent DYNEGY HOLDINGS: Moody's Sees Distressed Debt Exchange EMISPHERE TECHNOLOGIES: Mark Rachesky Holds 47.6% Equity Stake ENERGYCONNECT GROUP: Merger Sub Merges with ECI EVERGREEN INTERNATIONAL: S&P Hikes CCR to 'B-' After Refinancing FAITHSHARES TRUST: To Close and Liquidate Four Funds FEDERAL-MOGUL: 6th Circuit Clears Insurer of Asbestos Liability FINANCIAL RESOURCES: Court Rules in Avoidance Suit v. Migliaccios FIRST FOLIAGE: U.S. Trustee Asks Court to Convert or Dismiss Case FRONTIER OIL: Moody's Upgrades CFR to 'Ba1' on Diversification FRUITVILLE ASSOCIATES: Case Summary & Creditors List GAMETECH INT'L: Board Approves $190,000 Annual Salary for CEO GENERAL GROWTH: Court Closes 73 GGP Affiliates' Chapter 11 Cases GENERAL GROWTH: Appeals Default Interest for NY Comptroller GENTA INC: Five Directors Elected at Annual Meeting GSC GROUP: Wins Formal Approval to Sell to Black Diamond GULF LANDINGS: Case Summary & 11 Largest Unsecured Creditors HARRY & DAVID: Hearing on Exclusivity Extensions Set for July 26 HB LOGISTICS: Case Summary & 20 Largest Unsecured Creditors HEARTLAND MEMORIAL: District Court Affirms Dismissal of Lawsuit HINGHAM CAMPUS: Fights Sovereign Bank's Request for Mediation HOLLOW CAFE: Amesbury Restaurant to File Ch. 11 to Stop Sale HYMAN COMPANIES: Court Rejects Bid for Attorney's Fees JCK HOTELS: To Tap Gordon & Rees as General Litigation Counsel JCK HOTELS: To Tap Dae Hyun & Associates as Financial Advisors KMC REAL ESTATE: Hearing on Case Dismissal Plea Today LA JOLLA: Has 34.62 Million Outstanding Common Shares LAKE PLEASANT: Court OKs Zwillinger Greek for Sale of Assets LEVELLAND/HOCKLEY: Court Approves Haynes as Committee's Counsel LIFECARE HOLDINGS: Debt Trials Remain After Refinancing LOS ANGELES DODGERS: Seeks Nod for Dewey & LeBoeuf as Attorneys LOS ANGELES DODGERS: Asks for OK for Epiq as Claims Agent LOS ANGELES DODGERS: Spokeswoman Says MLB Aware of Highbridge Fee LOUIS JONES: $24,856 SteelFab Claim Is Unsecured MILLENNIUM GLOBAL: BCP Securities Object to Provisional Relief MIRAMAR REAL ESTATE: Taps Agosto and FVP as External Auditors MWM CARVER: Court OKs $12.5-Mil. Assets Sale to William C. Smith MXENERGY HOLDINGS: Now a Wholly-Owned Subsidiary of Constellation NEBRASKA BOOK: Mesirow, Lowenstein Represent Creditors NEW ULM RETAIL: Court Dismisses Involuntary Chapter 11 Case NORANDA OPERATING TRUST: DBRS Downgrades Issuer Rating to 'BB' NORTEL NETWORKS: $4.5 Billion Patent Sale Approved by Judges OLSEN'S MILL: Sale of BNP Paribas' Security Interest Erroneous ONOFF AB: Seeks Bankruptcy Protection OUTSOURCE HOLDINGS: Cole Schotz as Examiner's Counsel Gets Okay OXIGENE INC: Sells Add'l 3MM Shares Under at Market Sales Pact PACIFICA MESA: Facing Plan Objection from Workers PETER MCFARLAND: No Proof of Hiding Flying Tuna Assets PLAIN GOOD: Case Summary & 11 Largest Unsecured Creditors POINT BLANK: Toyobo Makes $6 Million Settlement PRIMUS TELECOMMUNICATIONS: Moody's Assigns B3 Ratings to Notes PROVIDENT ROYALTIES: Liquidating Trustee May Sue D&Os PURSELL HOLDINGS: Lawson Amends Lift Stay Motion to Sell Property QUINCY MEDICAL: Atty. Gen. Wants More Time to Review Sale QUIZNOS CORP: Hires Lawyers, Bankers to Avert Covenant Default REAL MEX: Two Directors Resign from Board REAL MEX: S&P Keeps 'CCC' Corp. Credit Rating; Outlook Negative REITTER CORP: Amended Plan Outline Filing Extended Until Aug. 31 REYNOLDS GROUP: Moody's Confirms 'B2' Corporate Family Rating RIO RANCHO: Has Stipulation for Cash Collateral Until July 31 RIO RANCHO: Agrees to Lift Stay for Wilshire Bank to Pursue Suit RIVER EAST: Bankruptcy Case Now Assigned to Judge Eugene R. Wedoff RIVER EAST: Amends Plan to Change Secured Lender's Treatment RIVER ROAD: Wants PSAV's Continued Audiovisual Services Until 2016 RIVER ROAD: Has Approval to Use Cash Collateral Until Oct. 12 ROBB & STUCKY: Seeks Approval of Bank of America Settlement ROBB & STUCKY: CIRS Wants Additional Adequate Protection ROSSCO HOLDINGS: Plan Filing Period Further Extended to Sept. 30 ROUND TABLE: Wants to Use Cash Collateral to Pay Professional Fees ROUND TABLE: First Bankers Appointed as Sole Trustee for ESOP ROUND TABLE: Wants Examiner Appointed to Probe Plan Feasibility ROUND TABLE: GE Capital, Unsecureds Oppose Plan Disclosures RUMSEY LAND: Court Approves Sale of Assets to Successful Bidders SECOND CHANCE: Court Approves $5MM Settlement of Toyobo Dispute SEAHAWK DRILLING: Full-Payment Plan Set for Aug. 30 Hearing SHAP LLC: Lone Creditor Wins Dismissal of Chapter 11 Case SIGNATURE STYLES: Spiegel Owner Takes Contract With Siriano SIGNATURE STYLES: Hires Polsinelli Shughart as Counsel SIGNATURE STYLES: Committee Taps Cooley LLP as Lead Counsel SITEL LLC: Moody's Affirms 'B3' Corporate Family Rating SOCIETY OF JESUS: Northwest's Jesuits Chapter 11 Plan Confirmed SOUTH BAY EXPRESSWAY: Property Not Exempt From Taxation STANDARD STEEL: Moody's Upgrades CFR to B3; Outlook Stable STATION CASINOS: Deadline to Submit Administrative Claims July 18 STATION CASINOS: GV Ranch Claims Bar Date Set for Aug. 12 STATION CASINOS: GV Committee Proposes to Double GLC Flat Fee STERLING ESTATES: Can Access Cash Collateral Until July 29 STERLING ESTATES: Court Grants Lender Motion to Withdraw ORIX Plan SUPERIOR ACQUISITIONS: Case Converted to Chapter 7; Plan Withdrawn TABS 2005-2: DBRS Confirms Ratings on Various Notes at 'C' TELMARK PROPERTIES: High Court Winds Up Firm Over Rent Debts TEN X CAPITAL: Cole Taylor Bank Wants to Prohibit Cash Use TEN X CAPITAL: Court Wants Chapter 11 Plan by Oct. 28 TWEETER OPCO: Buyer Schultze Liable for WARN Act Claims UNITED GILSONITE: James Patton to Handle Future Asbestos Claimants URBAN WEST: Has Until Aug. 22 to Propose Chapter 11 Plan UTGR INC: Court Withholds Final Decree, Wants Status Report VENSURE FEDERAL: NCUA Orders Closure Due to Insolvency VICTOR VALLEY: Prime Healthcare to Buy Hospital for $35-Mil. VITRO SAB: Beats Back 12 Renewed Involuntary Petitions VITRO SAB: Bondholders Not Required to Disclose Holdings VITRO SAB: Noteholders Skeptical Mediation Will Lead to Accord VITRO SAB: Credit Agricole Wants to Pursue Claims v. Norteamerica WALL STREET: S&P Assigns 'B' Corporate Credit Rating WESTLAKE EVERGREEN-DE: Needs More Time to File Schedules WESTLAKE EVERGREEN-DE: Sec. 341 Creditors Meeting Set for Aug. 9 WESTPORT PROPERTY: Court Cites Flaws in Plan Outline WII COMPONENTS: Suspending Filing of Reports with SEC * Gay Bankruptcy Won't Be Going to U.S. Supreme Court * Upcoming Meetings, Conferences and Seminars ********* 2271 ASSOCIATES: Case Summary & 18 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: 2271 Associates Inc. fka Palazzolo Holding IV Corp 23 Dycke Lane Wesley Hills, NY 10952 Bankruptcy Case No.: 11-23351 Affiliates simultaneously filing separate Chapter 11 petitions: Entity Case No. ------ -------- 2345 Associates Inc 11-23352 2350 Associates Inc 11-23353 3212 Associates Inc 11-23354 735 Associates Inc 11-23355 Pipedreams Realty II Corp 11-23356 Pipedreams Realty IV Corp 11-23357 Pipedreams Realty V Corp 11-23358 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court Southern District of New York (White Plains) Judge: Robert D. Drain Debtor's Counsel: Mark A. Frankel, Esq. BACKENROTH FRANKEL & KRINSKY, LLP 489 Fifth Avenue New York, NY 10017 Tel: (212) 593-1100 Fax: (212) 644-0544 E-mail: mfrankel@bfklaw.com 2271 Associates' Scheduled Assets: $1,771,489 2271 Associates' Scheduled Liabilities: $16,875,172 A list of 2271 Associates' 18 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nysb11-23351.pdf The petitions were signed by Chayim Kirschenbaum, president. 3900 BISCAYNE: U.S. Trustee Unable to Form Committee ---------------------------------------------------- The U.S. Trustee advises that a committee under 11 U.S.C. Sec. 1102 in the Chapter 11 case of 3900 Biscayne, LLC, has not been appointed until further notice. The U.S. Trustee reserves the right to appoint a committee should interest develop among the creditors. 3900 Biscayne, LLC, is a Florida limited liability company which owns real property located at 3900 Biscayne, in Miami, currently leased to Miami Arts, Inc., a tuition-free public charter school offering college-preparatory academic curriculum and conservatory- style training in the visual and performing arts. The Company filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 11-22948) on May 12, 2011, in Miami, Florida. Judge A. Jay Cristol presides over the case. James C. Moon, Esq., and Peter D. Russin, Esq., at Meland Russin & Budwick, P.A., in Miami, represent the Debtor in its Chapter 11 effort. The Debtor disclosed $14,857,484 in total assets and $13,691,533 in total liabilities as of the Chapter 11 filing. AERIE RESORT: Receiver Cuts Asking Price to $3.95 Million --------------------------------------------------------- Postmedia News reports that the receiver in charge of the insolvent Aerie Resort has dropped the asking price for the property for the third time to $3.95 million. Court appointed trustee Ken Glover listed the property with DTZ Barnicke at $6.9 million in 2009, a price that was dropped to $5.9 million and then to $4.75 million, Postmedia News discloses. Postmedia News relates that Mr. Glover said there has been plenty of interest in the resort, but either financing has been a problem or would-be buyers shy away from pulling the trigger on a deal. The Aerie was on the market in 2004 for $13 million, at that point being sold by original owner Maria Schuster. Ms. Schuster closed the Aerie in November 2010 following three difficult years. A sale must be approved by the courts. Aerie Resort is a luxury hotel on the Malahat, British Columbia. The hotel is set on 33 hectares and includes three buildings with 35 guestrooms. Glover-Drennan is the receiver of the property. AES THAMES: Seeks Access to Cash to Get Market Participant Status ----------------------------------------------------------------- AES Thames L.L.C., asks the U.S. Bankruptcy Court for the District of Delaware for authorization to use the property of the estate, including cash that may constitute cash collateral for the purpose of obtaining market participant status, and grant Connecticut Light and Power Company (CL&P) adequate protection. The Debtor will also use the property of the estate to: -- post the MPS deposit, including authorization to post cash or similar form of deposit; -- pay the application fee; -- take the application steps; -- execute the MPS agreement; and -- make further use of the Debtor's property other than in the ordinary course of business as the Debtor deems necessary. The Debtor relates that CL&P failed to obtain control over any deposit accounts or to take possession of cash of the Debtor as required by the UCC to perfect its security interest. The Debtor stated that the interest of CL&P, if any, that is entitled to protection is minimal. As adequate protection for any diminution in value of the lenders' collateral, the Debtor will grant CL&P a replacement lien on substantially the same terms as the fifth interim order. The Debtor set a July 26 hearing on its request to use the cash collateral. About AES Thames Uncasville, Connecticut-based AES Thames, L.L.C., owns and operates a coal-fired power plant located in Montville, Connecticut. The facility generates and sells electricity to Connecticut Light and Power Company. It also supplies processed steam to a recycled paperboard mill owned by Smurfit-Stone Container Corp. AES Thames is a unit of AES Corp., the Arlington, Virginia-based power producer with operations in 29 countries. AES Thames filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10334) on Feb. 1, 2011. The increased cost of energy production and the "uneconomic and onerous provisions" of a steam sale agreement with Smurfit-Stone's predecessor led AES Thames to seek bankruptcy protection. Adam G. Landis, Esq., Kerri K. Mumford, Esq., and Landon Ellis, Esq., at Landis Rath & Cobb LLP, serve as the Debtor's bankruptcy counsel. The Debtor tapped Murtha Cullina LLP as its special counsel; Charles River Associates as its regulatory consultant, and Houlihan Lockey Capital, Inc., as financial advisor and investment banker. According to court filings, based on the balance sheet as of Dec. 1, 2010, total assets were $162 million, and the Debtor has $52 million in short term liabilities and $122.6 million in long term debt. The TCR reported on March 30, 2011, that the Debtor disclosed $156,747,507 in assets and $5,929,775 in liabilities. On Feb. 15, 2011, the U.S. Trustee appointed an official Committee of Unsecured Creditors in the Debtor's case. The Committee tapped FTI Consulting Inc. as its restructuring and financial advisor, and Blank Rome LLP as its counsel. ALIZE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------- Debtor: Alize, A Nevada Corporation aka Alize At The Top Of The Palms Alize, Inc. 5145 Rogers Street, #C Las Vegas, NV 89118 Bankruptcy Case No.: 11-20804 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Richard McKnight, Esq. LAW OFFICES OF RICHARD McKNIGHT, P.C. 330 S. Third Street, #900 Las Vegas, NV 89101 Tel: (702) 388-7185 Fax: (702)388-0108 E-mail: rmcknight@lawlasvegas.com Scheduled Assets: $375,144 Scheduled Debts: $3,392,893 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nvb11-20804.pdf The petition was signed by Andre Rochat, president. AMBAC FINANCIAL: Hearing on Plan Disclosures Set for Aug. 12 ------------------------------------------------------------ Ambac Financial Group, Inc. submitted to Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York a disclosure statement on July 8, 2011, explaining its Chapter 11 Plan of Reorganization dated July 6, 2011. AFG President and Chief Executive Officer Diana G. Adams states that the form of the Plan will depend on whether the proposed Plan Settlement is effectuated on or before July 29, 2011. Following months of negotiations among stakeholders, the Debtor and its major creditor constituencies have developed the proposed Plan Settlement, the structure and terms of which the Debtor believes will benefit all parties, Ms. Adams says. If, on or before the Plan Settlement Deadline, each of the Office of the Commissioner of Insurance for the State of Wisconsin, as regulator of Ambac Assurance Corporation; and the Commissioner of Insurance for the State of Wisconsin, as rehabilitator of AAC's Segregated Account; and AAC agree to the Plan Settlement, the Plan will take the form of the "Plan Settlement Option." The Plan Settlement Option provides that the Reorganized Debtor will retain ownership of AAC, and the Reorganized Debtor will not otherwise take any action that will result in a Deconsolidation Event, which is defined as any event that results in neither AAC nor any entity that, pursuant to Section 381 of the Internal Revenue Code, succeeds to the tax attributes of AAC described in Section 381(b) of the Internal Revenue Code being characterized as an includible corporation with the affiliated group of corporations of which the Debtor, the Reorganized Debtor, or any successor is the common parent, all within the meaning of Section 1504 of the Internal Revenue Code. If the OCI and AAC do not agree to the Plan Settlement, the Plan will proceed with a "Deconsolidation Option." The Deconsolidation Option provides that the Reorganized Debtor will: (i) reject July 18, 1991 Tax Sharing Agreement; (ii) cause a deconsolidation of the AAC Subgroup from the Ambac Consolidated Group for U.S. federal income tax purposes; and (iii) either (x) make an election pursuant to applicable Treasury Regulations to allocate to the Reorganized Debtor the maximum amount of net operating losses held by the Ambac Consolidated Group, or (y) take a worthless stock loss in respect of its ownership of stock in AAC. However, if the Debtor determines that it will be unable to effect the transactions contemplated by the Deconsolidation Option, the Debtor may choose to convert the Chapter 11 Case to a case under Chapter 7 of the Bankruptcy Code. Plan Settlement Option vs. Deconsolidation Option Plan Settlement Deconsolidation Option Option --------------- --------------- Transaction Debt for equity exchange: Holders of Senior Notes Claims are to receive New Common Stock in the amount set forth in the Plan. Holders of General Unsecured Claims are to receive New Common Stock and General Unsecured Warrants in the amounts Set forth in the Plan. Holders of Subordinated Notes Claims are to receive Subordinated Notes Warrants in the amount set forth in the Plan, and if the Class of Subordinated Notes Claims votes in favor of the Plan, New Common Stock in the amount set forth in the Plan. Economic Reorganized AFG retains Reorganized AFG causes a Interest in ownership of AAC stock. Deconsolidation of the AAC Reorganized AFG also Ambac Consolidated Group obtains an economic by transferring more interest in AAC in the than 20% of its AAC form of $350 million stock or transferring in Junior Surplus Notes the economic rights of issued by AAC's more than 20% of stock Segregated Account and in AAC to either AFG through the transactions Prime, a third party giving effect to the Plan unrelated to Reorganized Settlement, namely, the AFG. Cost Allocation Agreement, the Tax Sharing Agreement and applicable TSA Amendment. TSA TSA assumed and amended TSA rejected pursuant to pursuant to the Plan. the Plan. NOLs Pursuant to TSA Reorganized AFG will Amendment A, the either (i) elect to Allocated NOLs will be reattribute up to the available for use by AAC maximum amount of AAC's and will be equal to NOLs to AFG, or (ii) (a) the lesser of take a worthless stock (i) $4 billion and loss with respect to AAC (ii) the amount of NOLs stock to the maximum available for use by extent permitted under the Ambac Consolidated the Internal Revenue Group minus the amount Code and applicable (ii) the shelter Treasury Regulations. Debt-related income realized pursuant to the Plan, less (b) AAC's attributable share of any NOLs surrendered pursuant to a settlement with the IRS. Subject to the applicable credits set for in TSA Amendment A, AAC may utilize the Allocated NOLs in exchange for a payment equal to 40% of the aggregate amount of AAC's regular tax Liability and, without duplication, alternative minimum tax liability for the taxable year in which the NOLs are used that would otherwise have been paid by AAC if those NOLs were not available for its use. Under TSA Amendment B, the Allocated NOLs will be available for use by AAC and will be equal to (a) the lesser of (i) $4 billion and (ii) the amount of NOLs available for use by the Ambac Consolidated Group minus the amount needed to shelter debt- related income realized under the Plan, less (b) AAC's attributable share of any NOLs surrendered pursuant to a settlement with the IRS. AAC may utilize the first 40% of the Allocated NOLs at no cost. Under the TSA Amendment C, the Allocated NOLs will be available for use by AAC in exchange for cash payments of $60 million paid. Claims AFG will release any A litigation trust will Against claims, avoidance actions be established to AAC and causes of action, preserve and prosecute which have been or could any and all claims and be brought against AAC, causes of action arising the Segregated Account or before the Effective the OCI by or on behalf Date, which could be of AFG's estate, brought against AAC, the including preference Segregated Account, or or fraudulent transfer the OCI by or on claims with respect behalf of AFG's to tax refund related estate. payments made to AAC by AFG in September 2009 and February 2010, and any possible misallocation of tax refunds in exchange for (i) transactions giving effect to the Plan Settlement, including the Cost Allocation Agreement, the TSA and applicable TSA Amendment, (ii) a $30 million Cash Grant from AAC to AFG, and (iii) $350 million in Junior Surplus Notes issued by the Segregated Account. Expense Expense sharing will be Unresolved Sharing governed by an amended Cost Allocation Agreement, providing for payment of AFG's operating expenses up to a $6 million per annum cap. AAC's obligation to reimburse AFG operating expenses will be reduced by 50% of the sum of: (a) the amount paid by AAC for the use of NOLs and (b) the amount of distributions received by AFG from any Target multi- plied by the proportion of the purchase of the Target was funded by the Cash Grant. AAC will pay 85% of the costs incurred since the Petition Date related to the IRS Dispute. The acceptance by OCI and AAC of the Plan Settlement, which is predicated on an equitable sharing of the savings resulting from the use by AAC of the NOLs, should reduce AAC's tax liabilities and increase cash available to pay AAC's policyholders, Ms. Adams tells the Court. The Plan Settlement is designed so that a majority of the savings resulting from the use by AAC of the NOLs will be retained by AAC. If, however, the Deconsolidation Option pushes through and the NOLs are reattributed from AAC to the Debtor, AAC would not have the ability to utilize the NOLs, Ms. Adams points out. As a result, AAC could incur hundreds of millions of dollars of increased tax liability to the detriment of policyholders and other parties with an interest in AAC, she notes. In sum, the Plan Settlement would materially benefit the Debtor and its creditors, and AAC and its policyholders. Pursuant to the Plan, on the Effective Date, in full and final satisfaction and discharge of and in exchange for their Claims, each Holder of a Senior Notes Claim will receive New Common Stock, and each Holder of a General Unsecured Claim and Subordinated Notes Claim will receive New Common Stock and Warrants as set forth in the Plan. The Disclosure Statement also provides a detailed background of the Debtor's Chapter 11 case and related proceedings. The Debtor will file with the Court a liquidation analysis before the Disclosure Statement hearing. The Debtors will also provide later on valuation analysis and financial projections. Hearing on Plan Outline Set for August 12 Judge Chapman will hold a hearing on August 12, 2011, to consider approval of the Disclosure Statement as containing adequate information within the meaning of Section 1125(a) of the Bankruptcy Code. Objections to the Disclosure Statement, if any, must be in writing and be filed with the Court and served upon certain parties so as to be received on or before August 8, 2011: * Counsel for the Debtor Dewey & LeBoeuf LLP Attn: Jeffrey Chubak, Esq. 1301 Avenue of the Americas New York, New York 10019 * Counsel for the Official Committee of Unsecured Creditors Morrison & Foerster LLP Attn: Anthony Princi, Esq. 1290 Avenue of the Americas New York, New York 10104 * Counsel for the OCI Foley & Lardner LLP Attn: Frank W. DiCastri, Esq. 777 East Wisconsin Avenue, Milwaukee, Wisconsin 53202 * The Office of the United States Trustee for Region 2 Brian S. Masumoto 33 Whitehall Street 21st Floor New York, New York, 10004 The Court is also set to consider at the August 12 hearing: -- approval of procedures for soliciting, receiving and tabulating votes to accept or reject the Plan and for filing objections to the Plan; and -- the appointment of Kurtzman Carson Consultants LLC as the Debtor's voting agent. The solicitation packages for holders of General Unsecured Claims, Senior Note Claims and Subordinated Notes Claims will include a copy of the disclosure statement order, a copy of the disclosure statement including the Plan, customized ballot and voting instructions, and a notice of the confirmation hearing. Holders of Priority Non-Tax Claims, Secured Claims, Section 510(b) Claims, Intercompany Claims and Equity Interests will receive a Confirmation Hearing Notice and a notice of non-voting status. Each holder of a General Unsecured Claim, a Senior Notes Claim or a Subordinated Notes Claim must vote all of its claims in one class either to accept or reject the Plan and may not split its votes within the class. The proposed deadline by which ballots and master ballots with respect to the Plan will be accepted by the Debtor on Sept. 23, 2011. The Debtor has engaged KCC to assist in the balloting and tabulation of ballots and master ballots for Class 3, 4, and 5, the classes who are entitled to vote on the Plan. The proposed Voting Deadline is Sept. 23, 2011. The Debtor proposes October 5, 2011, as the hearing to consider confirmation of the Plan. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/Ambac_July8DS.pdf About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed $30.05 billion in total assets, $31.47 billion in total liabilities, and a $1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of ($394.5 million) and total liabilities of $1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about $1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. AMBAC FINANCIAL: Plan Does Not Benefit Policyholders, Says OCI -------------------------------------------------------------- The Office of the Commissioner of Insurance for the State of Wisconsin, in its capacity as rehabilitator of Ambac Assurance Corporation's Segregated Account, related in a July 7, 2011, public statement that it does not believe the reorganization plan proposed by Ambac Financial Group, Inc. is in the best interests of policyholders of the Segregated Account, or those of the AFG creditors. The Rehabilitator engaged in discussions for several months with AFG and the Official Committee of Unsecured Creditors to see if mutually agreeable terms could be arrived at for equitably allocating net-operating-loss tax attributes and certain other resources among AFG, AAC and the Segregated Account. The Rehabilitator's objectives in those discussions have been to protect the interests of and maximize value for policyholders and policy beneficiaries of the Segregated Account. Despite the Rehabilitator's best efforts to facilitate a fair resolution of issues, the parties reached an impasse. AFG, pushed by its creditors, has filed a proposed bankruptcy plan of reorganization to restructure the debt of AFG on terms which are inconsistent with the consensual direction of the recent negotiations with the Rehabilitator. The AFG plan proposes to employ litigation to try to divert value from the Segregated Account. The Rehabilitator says it will vigorously contest that litigation. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed $30.05 billion in total assets, $31.47 billion in total liabilities, and a $1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of ($394.5 million) and total liabilities of $1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about $1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. AMBAC FINANCIAL: Wisc. Court Okays R. Peterson as Consultant ------------------------------------------------------------ Judge William D. Johnston of the Circuit Court for Dane County in Wisconsin approved the engagement of Roger Peterson as Special Deputy Commissioner for the Segregated Account of Ambac Assurance Corporation. As manager of the Segregated Account, AAC will pay Mr. Peterson $600,000 annually plus a $375 bonus after 40 months, according to a separate report by Cary Spivak of The Journal Sentinel. The report relates that Mr. Peterson's job as former deputy division administrator for regulator and enforcer pays him just more than $100,000 yearly. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed $30.05 billion in total assets, $31.47 billion in total liabilities, and a $1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of ($394.5 million) and total liabilities of $1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about $1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. AMERA WINTER: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Amera Winter Garden, Ltd. 2900 University Drive Coral Springs, FL 33065 Bankruptcy Case No.: 11-29048 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: John K. Olson Debtor's Counsel: Bradley S. Shraiberg, Esq. SHRAIBERG, FERRARA, & LANDAU P.A. 2385 NW Executive Center Drive, #300 Boca Raton, FL 33431 Tel: (561) 443-0801 Fax: (561) 998-0047 E-mail: bshraiberg@sfl-pa.com Scheduled Assets: $7,873,257 Scheduled Debts: $13,297,912 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flsb11-29048.pdf The petition was signed by George Rahael, president of Amera Associates, Inc. ANDRE ROCHAT: French Restaurants File for Bankruptcy in Las Vegas ----------------------------------------------------------------- France native Marius Andre Rochat, his Alize restaurant at the top of the Palms Casino Resort, Andre's at Monte Carlo, and Mr. Rochat's restaurant-management company, Gastronomy Management Group filed Chapter 11 petitions (Bankr. D. Nev. Case No. 11- 20808) on July 8, 2011. Mr. Rochat's petition estimated $100,000 to $500,000 in assets and $1 million to $10 million in debts. Mr. Rochat is represented by: Richard McKnight, Esq. THE LAW OFFICES OF RICHARD MCKNIGHT 330 S. Third Street, Suite 900 Las Vegas, NV 89101 Tel: 702-388-7185 According to Jacqueline Palank at Dow Jones' Daily Bankruptcy Review, court papers show Alize lost $93,000 last year while Andre's lost $290,000. They took on too much debt while the economy tanked, Joseph Marsco, Gastronomy's director of operations told Vegas Inc. DBR relates Mr. Rochat and his three companies all listed $2.3 million in claims held by Plaza Bank in their Chapter 11 petitions. According to DBR, Vegas Inc. reported that Plaza Bank has alleged that the borrowers are in default on the loans. Plaza has raised its voice in the bankruptcy that Rochat affiliate A&A Inc. launched in January, objecting to the sale of the site of the original Andre's restaurant on the Las Vegas Strip (that closed at the end of 2008, according to the Las Vegas Sun). ARTS DES PROVINCES: Files for Chapter 7 Bankruptcy -------------------------------------------------- Furniture Today reports that Arts des Provinces de France, Inc., the parent of high-end country French home furnishings retailer Pierre Deux, has filed for Chapter 7 bankruptcy liquidation and its showrooms across the United States appear to be closed. Furniture Today relates that Arts des Provinces de France filed for protection in U.S. Bankruptcy Court in Newark, N.J., on June 23, 2011, disclosing assets of $12.1 million and debts of $53.9 million. Until recently, the Company operated 23 stores in 13 states, with the largest concentration in California and the Northeast, Furniture Today discloses. According to the report, Sharon Levin, an attorney representing the company in the filing, said the Pierre Deux parent "no longer exists." According to the filing, unsecured supplier creditors and their claims include Nourison Inds., $123,354; Motif Designs, $64,970; Highland House, $52,605; Kai Wi Kreations, $37,888; French Market Collection, $37,212 and Dessau Home, $34,353. French supplier claims include Tissus D'Avesnieres, $205,431; and Tissages de Gravigny, $101,724. Based in Secaucus, New Jersey, Arts Des Provinces De France, Inc. owns and operates home furnishing store. BABY FOX: Terminates 868,262 Common Shares Registration ------------------------------------------------------- The Securities and Exchange Commission, on Aug. 6, 2010, declared effective a registration statement on Form S-1 of Baby Fox International, Inc., initially filed with the SEC on May 12, 2008, originally registering the resale by the selling shareholders identified in the prospectus of an aggregate of 868,262 shares of our common stock. This offering has been terminated. Pursuant to the undertaking contained in the Registration Statement, the Company filed a post-effective amendment to the Registration Statement to terminate the Registration Statement and deregister all of the shares of Common Stock that remain unsold. About Baby Fox International Shanghai Minhang District, P.R.C.-based Baby Fox International, Inc., is a Nevada corporation organized on Aug. 13, 2007, by Hitoshi Yoshida, a Japanese citizen, as a listing vehicle to acquire Shanghai Baby Fox Fashion Co., Ltd. The Company is a growing specialty retailer, developer, and designer of fashionable, value-priced women's apparel and accessories. The Company's products are aimed to target women aged 18 to 40 in China. The Baby Fox brand was initially registered in Italy in May of 2003 and it is promoted as an international brand in China. The Company reported a net loss of US$435,531 on US$25.2 million of revenue for fiscal year ended June 30, 2010, compared to a net loss of US$4.5 million on US$24.3 million of revenue for fiscal 2009. Following the fiscal 2010 results, Friedman LLP, in Marlton, N.J., expressed substantial doubt about the Company's ability as a going concern. The independent auditors noted of the Company's losses, negative cash flows from operations and working capital deficiency. The Company's balance sheet at March 31, 2011, showed US$12.94 million in total assets, US$21.04 million in total liabilities and a US$8.10 million total stockholders' deficit. BANK OF AMERICA: Treads Lightly on Involuntary Filers ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Bank of American NA is magnanimous in victory over 25 individuals who filed an unsuccessful involuntary bankruptcy petition last month against the San Francisco-based bank. The bankruptcy judge in Denver dismissed the involuntary petition on June 21, four days after it was filed. The judge gave the bank until July 8 to file a motion seeking the imposition of sanctions on the individuals for filing the failed petition. According to the report, in its motion for sanctions, the bank said it is "far more concerned about preventing a further involuntary bankruptcy filing than in obtaining monetary damages." Consequently, the bank requested that the bankruptcy court hold off from collecting its "substantial" costs so long as the individuals don't file another involuntary bankruptcy. On June 17, 2011, tens of individuals launched an involuntary Chapter 11 case (Bankr. D. Colo. Case No. 11-24503) against Bank of America N.A. The petitioners claim to be owed roughly $60 million in the aggregate. The petitioners identify themselves in the signature pages of the Chapter 11 petition as members of either the "Independent Rights Political Party" or the "Independent Rights Party." BANKUNITED FINANCIAL: Partial Settlement With FDIC Approved ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Federal Deposit Insurance Corp. and the official creditors' committee for BankUnited Financial Corp. were authorized by the bankruptcy judge on July 8 to settle enough of the their disputes so the court could schedule an Aug. 9 hearing for approval of the disclosure statement explaining the committee's liquidating Chapter 11 plan. Mr. Rochelle recounts that BankUnited has filed a proposed Chapter 11 plan but confirming a plan was being blocked by the FDIC's $1.47 billion claim based on the bank's capital deficiency. The FDIC contended the claim should be paid in full under bankruptcy law. There is a separate dispute over ownership of tax refunds. According to the report, the settlement, hammered out with Francis Carter as mediator, has the FDIC and BankUnited cooperating in pursuit of a $48 million tax refund. Whatever the government pays will be held in an escrow account until resolution of the conflicting claims to the refund. The settlement lays out how the FDIC and the holding company will divide whatever refunds they receive. About BankUnited Financial BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) -- http://www.bankunited.com/-- was the holding company for BankUnited FSB, the largest banking institution headquartered in Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed by regulators and the Federal Deposit Insurance Corporation facilitated a sale of the bank to a management team headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank, and a group of investors led by W.L. Ross & Co. BankUnited, FSB, had assets of $12.8 billion and deposits of $8.6 billion as of May 2, 2009. The Company and its affiliates filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-19940) on May 22, 2009. Stephen P. Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen LLP; Mark D. Bloom, Esq., and Scott M. Grossman, Esq., at Greenberg Traurig, LLP; and Michael C. Sontag, at Camner, Lipsitz, P.A., represent the Debtors as counsel. Corali Lopez-Castro, Esq., David Samole, Esq., at Kozyak Tropin & Throckmorton, P.A.; and Todd C. Meyers, Esq., at Kilpatrick Stockton LLP, serve as counsel to the official committee of unsecured creditors. In its bankruptcy petition, BankUnited Financial Corp. disclosed $37,729,520 in assets against $559,740,185 in debts. Aside from those assets, BankUnited said that a "valuable" asset is its $3.6 billion net operating loss carryforward. Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York were listed among the company's largest unsecured creditors in their roles as trustees for security issues. BankUnited estimated the Bank of New York claim tied to convertible securities at $184 million. U.S. Bank and Wilmington Trust are owed $120 million and $118.171 million on account of senior notes. BARZEL INDUSTRIES: Plan Outline Hearing Rescheduled to July 25 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has rescheduled to July 25, 2011, at 4:00 p.m. (Eastern Time), the hearing to consider adequacy of the Disclosure Statement explaining Barzel Industries Inc., et al.'s plan of liquidation. The hearing was previously scheduled for July 21, at 1:00 p.m. As reported in the June 1, 2011 edition of the Troubled Company Reporter, the Plan provides that holders of "miscellaneous secured claims" will receive cash or recover the property securing the claim. Prepetition secured noteholders will receive cash upon payment of all administrative claims, priority claims, the miscellaneous secured claims, and the wind-down reserve. These secured creditors are impaired under the Plan. Holders of general unsecured claims will share pro rata from the cash reserved for general unsecured creditors. They are impaired under the Plan. Shareholders of the Debtors will retain no ownership interests. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/BARZEL_DS_01.PDF About Barzel Industries Norwood, Massachusetts-based Barzel Industries, Inc., was in the business of processing and distributing steel. The Company manufactured steel for the construction and industrial manufacturing industries, and produces finished commercial racking products. Barzel Industries -- aka Novamerican Steel Inc. and Symmetry Holdings Inc. -- and seven affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13204) on Sept. 15, 2009. Judge Christopher S. Sontchi presides over the cases. J. Kate Stickles, Esq., and Patrick J. Reilley, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Wilmington, Delaware, and Gerald H. Gline, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Hackensack, N.J., serve as the Debtors' counsel. On the same day, Barzel Industries filed applications for relief under the Canadian Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice -- Commercial List. Barzel Industries recorded assets of $370,145,000 against debts of $375,412,000 as of May 30, 2009. Barzel sold most of the assets in November 2009 for $75 million to Norwood, Massachusetts-based Chriscott USA Inc. Secured lenders agreed to a settlement later where they received a release of claims in return for giving up $800,000. BEAR VALLEY: Opposes Ronen Armony Motion to Dismiss Case -------------------------------------------------------- Party-in-interest Ronen Armony, the General Partner and 80% owner of Bear Family Valley Family Partnership, asks the U.S. Bankruptcy Court for the Central District of California to dismiss the Chapter 11 bankruptcy case of Bear Valley pursuant to 11 U.S.C. Sec. 1112(b). The Debtor opposes the dismissal request. The Debtor contends that the Chapter 11 case was filed to ensure the payoff of all creditors of the Debtor. In its dismissal petition, Mr. Armony says that the petition was filed without authorization and was also filed in bad faith and for an improper purpose. According to Mr. Armony, Gary Kanter, Managing Member of VV Bear Valley LLC, did not have proper authorization to file the petition. Mr. Armony explains the petition falsely claims as assets properties that were sold by the Debtor to him two years ago, and was filed to gain a litigation advantage in an ongoing dispute between him and Mr. Kanter in connection with the development of a shopping center in Victorville California. The lawsuit was initiated by Mr. Armony against Mr. Kanter in the Superior Court, State of California, County of San Bernardino, Case No. CIV-VS- 1101628). In the lawsuit, Mr. Armony alleged breach of contract and fraud based on Mr. Kanter's failure to perform on several agreements. On May 31, 2011, the hearing on Mr. Armony's motion for preliminary injunction and writ of attachment was scheduled to be heard on June 16, 2011. On June 2, 2011, Mr. Kanter filed this petition. In its opposition to the motion, the Debtor says it intends to file a plan calling for the completion of the leasing and the selling of the properties to pay all creditors. The Debtor further states that VV Bear Valley, LLC, is the general partner of the Debtor and has authority to file. The Debtor disputes Mr. Armony's assertions that there are falsehoods contained in the petition that demonstrate bad faith, and that the petition was filed for an improper litigation tactic. About Bear Valley Family Based in Costa Mesa, California, Bear Valley Family Limited Partnership filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17893) on June 2, 2011. Christopher P. Walker, Esq., at the Law Office of Christopher P. Walker, P.C., at Anaheim Hills, Calif., serves as the Debtor's general bankruptcy counsel.Judge Robert N. Kwan presides over the case. The Debtor scheduled assets of $14,006,000 and liabilities of $7,353,409. BEARINGPOINT INC: Stern v. Marshall Affects Judge's Ruling ---------------------------------------------------------- Bankruptcy Judge Robert E. Gerber modified the order confirming BearingPoint, Inc.'s plan of reorganization to allow John DeGroote Services, LLC, the Liquidating Trustee, to pursue any claims against BearingPoint's former officers and directors outside of the Bankruptcy Court. The targets of the litigation that the Trustee wishes to bring -- BearingPoint's former CEO, Edwin Harbach, and eight directors -- oppose the motion. In a July 11, 2011 Bench Decision, Judge Gerber explained that if the claims are litigated in bankruptcy court, the action would be bogged down in procedural complications, aggravated by the Supreme Court's recent decision in Stern v. Marshall. "I normally would be quite reluctant to modify a confirmation order -- even where, as here, there are no issues of unscrambling eggs and no detrimental reliance by the objecting parties on the provisions in question," Judge Gerber said. Judge Gerber further said, "While there is no issue, even after Stern v. Marshall, as to the subject matter jurisdiction of the bankruptcy court to hear this controversy, the claims here are not 'core.' If I require this action to be litigated here in the bankruptcy court -- or, more precisely, initially in the bankruptcy court -- there is a material risk, in my mind, that especially with the inspiration of Stern v. Marshall, and the Targets' pointed reminder that I wouldn't be authorized to enter final judgment, this action will be tied in procedural knots by motion practice, here and in the District Court, exploiting asserted or actual inabilities on my part, as an Article I bankruptcy judge, to issue findings and orders." A copy of Judge Gerber's ruling is available at http://is.gd/eTHSwUfrom Leagle.com. Attorneys for F. Edwin Harbach are: Robert A. Van Kirk, Esq. George A. Borden, Esq. Steven M. Pyser, Esq. WILLIAMS & CONNOLLY LLP, 725 Twelfth Street, N.W. Washington, D.C. 20005 Tel: 202-434-5163 Fax: 202-434-5029 E-mail: rvankirk@wc.com gborden@wc.com spyser@wc.com Attorneys for the Former Directors are: Paul C. Curnin, Esq. William T. Russell, Jr., Esq. Paul C. Gluckow, Esq. Craig S. Waldman, Esq. SIMPSON, THACHER & BARTLETT, LLP 425 Lexington Avenue New York, NY 10017-3954 Tel: (212) 455-2519 Fax: (212) 455-2502 E-mail: pcurnin@stblaw.com wrussell@stblaw.com pgluckow@stblaw.com cwaldman@stblaw.com About BearingPoint Inc. BearingPoint, Inc. -- http://www.BearingPoint.com/-- was one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in more than 60 countries worldwide. BearingPoint, Inc., fka KPMG Consulting, Inc., together with its units, filed for Chapter 11 protection (Bankr. S.D.N.Y., Case No. 09-10691) on Feb. 18, 2009. BearingPoint disclosed total assets of $1.655 billion and debts of $2.201 billion as of Dec. 31, 2008. The Debtors' legal advisor was Weil, Gotshal & Manges, LLP. Their restructuring advisor was AlixPartners LLP, and their financial advisor and investment banker was Greenhill & Co., LLC. Jeffrey S. Sabin, Esq., at Bingham McCutchen LLP represented the Creditors' Committee. Garden City Group served as claims and notice agent. On the petition date, BearingPoint filed a Chapter 11 plan of reorganization negotiated with lenders prepetition. BearingPoint, however, changed course and pursued a sale of its units, after determining that creditor recoveries would be maximized through sales of the businesses. On Dec. 22, 2009, the Bankruptcy Court entered an order confirming the Debtors' Modified Second Amended Joint Plan. On Dec. 31, 2009, a Notice of Effective Date of the Plan was filed with the Bankruptcy Court. John DeGroote was appointed as liquidating trustee under the Plan. The liquidating trustee is represented by Katherine Dobson, Esq., at Bingham McCutchen, in Hartford, Connecticut. The trustee also has retained McKool Smith P.C. and Whiteford, Taylor & Preston L.L.P. to pursue claims against former company officers. BERNARD L MADOFF: SIPC Says Bankruptcy Court Should Hear Suits -------------------------------------------------------------- Linda Sandler, writing for Bloomberg News, reports that the Securities Investor Protection Corp. opposed a move by investors in Bernard Madoff's Ponzi scheme to seek a U.S. district judge's review of lawsuits by the Madoff firm's liquidator, who is seeking to recapture so-called fictitious profits. Bloomberg recounts that U.S. District Judge Jed Rakoff in Manhattan agreed last month to review so-called clawback actions against James Greiff and other investors. Their lawyer, Helen Chaitman, Esq., said the suits violate investor protection and securities laws. According to the report, SIPC said the profits belong to other investors, and the job of taking them back should be handled in bankruptcy court. The case is Picard v. Greiff, 11-cv-3775 (S.D.N.Y.). 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. BORINQUEN FEDERAL: NCUA Liquidates Credit Union Due to Insolvency ----------------------------------------------------------------- The National Credit Union Administration (NCUA) liquidated Borinquen Federal Credit Union of Philadelphia on July 8, 2011. NCUA made the decision to liquidate Borinquen Federal and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations. Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA's Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the credit union within one week. Borinquen Federal Credit Union served 8,600 members and had deposits of approximately $6 million. Chartered in 1974, Borinquen Federal Credit Union was a full-service financial institution that served a low-income community in Philadelphia for 37 years. It is the eleventh federally insured credit union liquidation in 2011. BPP TEXAS: Obtains Court Nod to Hire FTI Consulting as Advisor -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Texas on June 15, 2011, authorized BPP Texas, LLC, et al. to employ FTI Consulting, Inc., as their financial advisor. To address the objection filed by Citizens Bank of Pennsylvania, the Court held that nothing in the Order will be construed as authorizing the payment of any fees or expenses to FTI by the Debtors or from property of the estates, and that nothing in the Order will be construed as authorizing any payment to FTI from "cash collateral" as defined in the Bankruptcy Code or from any surcharge against any property or creditors. As reported in the Troubled Company Reporter's June 23, 2011 edition, FTI's services as financial advisor include, among other things, (a) calculating appropriate cramdown interest rate under the Debtors' Chapter 11 plan; (b) reviewing the Debtors' current and forecasted capital structure related to market terms; and (c) analyzing feasibility of the Debtors' Chapter 11 plan. About BPP Texas Pittsburgh, Pennsylvania-based BPP Texas, LLC, along with BPP Illinois, LLC, BPP Iowa, LLC, BPP Michigan, LLC, BPP Minnesota, LLC, and BPP Wisconsin, LLC, own and operate 22 hotels located in Texas, Illinois, Iowa, Michigan, Minnesota, and Wisconsin. BPP Texas and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Lead Case No. 10-44378) on Dec. 21, 2010. Davor Rukavina, Esq., and Jonathan Lindley Howell, Esq., at Munsch Hardt Kopf & Harr, P.C., serve as the Debtors' bankruptcy counsel. In its schedules, BPP Texas disclosed $3,731,144 in assets and $65,892,831 in liabilities as of the petition date. Affiliates BPP Illinois, BPP Iowa, BPP Michigan, BPP Minnesota, and BPP Wisconsin filed separate Chapter 11 bankruptcy petitions. BPP Wisconsin estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. Bankruptcy Judge Brenda T. Rhoades approved a disclosure statement filed by six units of BPP LLC after the hotel operator agreed to amend both the document and its plan to sell off its hotels. Judge Rhoades set a July 28 confirmation hearing for the debtor's liquidation plan. Under that plan, BPP intends to sell off 22 hotels in Texas, Wisconsin. CATHOLIC CHURCH: Lay Committee Proposes to Tap Buck Consultants --------------------------------------------------------------- The Official Committee of Lay Employees appointed in the Chapter 11 case of the Catholic Diocese of Wilmington, Inc., seeks authority from the U.S. Bankruptcy Court for the District of Delaware to retain Buck Consultants as its pension consultants, nunc pro tunc to May 23, 2011. The professional services that the Lay Employees Committee expects that Buck Consultants will be called upon to render may include, but are not limited to: -- providing actuarial and valuation services with respect to the Lay Employees Pension Plan; -- analyzing claims against the Lay Pension Fund; -- advising the Lay Employees Committee with respect to pension issues under any plan filed in the Case; and -- performing all other pension consulting services for the Lay Employees Committee that may be necessary or desirable in the Chapter 11 proceedings. Buck Consultants will be paid according to its customary hourly rates. The current hourly rates applicable to the principal advisors proposed to represent the Lay Employees Committee are: Professional Title Rate Per Hour ------------ ----- ------------- Aaron Shapiro Director $568 David Scharf Director $568 Michael Rozsa Senior Consultant $475 Kandace Kreider Senior Associate $284 Other professionals may render services to the Lay Employees Committee as needed. Generally, Buck Consultants' hourly rates are in these ranges: Principal $734 Director $568 Senior Consultant $475 Consultant $356 Senior Associate $284 Associate $239 Administrative Staff $170 Aaron Shapiro, a director at Buck Consultants, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The Diocese filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC, is the financial advisor. The petition says assets range $50 million to $100 million while debts are between $100 million to $500 million. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin Oct. 19, 2009. There were 131 cases filed against the Diocese, with 30 scheduled for trial, as of the bankruptcy filing. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Milw. Parties Agree on Oct. 15 Claims Bar Date --------------------------------------------------------------- At a hearing held June 22, 2011, the Archdiocese of Milwaukee and the Official Committee of Unsecured Creditors advised the U.S. Bankruptcy Court for the Eastern District of Wisconsin that they had reached a resolution on the Archdiocese's request to establish deadlines for filing proofs of claim. Specifically, the Parties agreed to set October 15, 2011, as the claims bar date for general claimants, and February 1, 2012, as the claims bar date for abuse survivors. Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin noted that the Archdiocese preserves its right to object to claims on any grounds. James I. Stang, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California noted that the agreed proposed order will not require parishes and schools to provide information regarding the claims process, but will provide that the Debtor asks schools and parishes to provide the information. He stated the Committee reserves its right to seek to extend the claims bar date if the parishes and schools do not cooperate with the Debtor's request. The Parties further agreed that proofs of claim of abuse survivors will not be filed on the docket but will be marked personal and confidential to the attention of the Clerk of Court's Office. About the Diocese of Milwaukee The Diocese of Milwaukee was established on Nov. 28, 1843, and was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius IX. The region served by the Archdiocese consists of 4,758 square miles in southeast Wisconsin which includes counties Dodge, Fond du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington and Waukesha. There are 657,519 registered Catholics in the Region. The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wisc. Case No. 11-20059) on Jan. 4, 2011, to address claims over sexual abuse by priests on minors. The Archdiocese became at least the eighth Roman Catholic diocese in the U.S. to file for bankruptcy to settle claims from current and former parishioners who say they were sexually molested by priests. Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The Official Committee of Unsecured Creditors in the bankruptcy case has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and Howard, Solochek & Weber, S.C., as its local counsel. The Archdiocese estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CATHOLIC CHURCH: Cemetery Trust Sues Milw. Creditors Committee -------------------------------------------------------------- The Archdiocese of Milwaukee Catholic Cemetery Perpetual Care Trust has filed a complaint against the Official Committee of Unsecured Creditors of the Chapter 11 case of the Archdiocese of Milwaukee seeking a declaration from the U.S. Bankruptcy Court for the Eastern District of Wisconsin that the Trust and certain funds are not property of the Debtor's estate. The Debtor has owned various Catholic cemeteries and mausoleums since its inception. The Debtor's ownership of the Milwaukee Catholic Cemeteries includes all burial facilities within the Debtor's geographic boundaries including, without limitation, individual burial plots, crypts, niches and property dedicated for future use as burial facilities. The Cemetery Property currently consists of 1,000 acres of land, in which over 500,000 remains are interred. An estimated 3,000 new burials take place each year. Parties wishing to utilize the Cemetery Property deliver payments to the Debtor. A portion of each Cemetery Payment is paid in exchange for perpetual caretaking services of the Cemetery Property, including preservation and maintenance of the Cemetery Property; the portion is held in trust for the perpetual care of the Milwaukee Catholic Cemeteries. In 2008, funds then held in trust for the benefit of the perpetual care of the Milwaukee Catholic Cemeteries were used to fund the Trust, which was established under both Wisconsin law and Canon Law to formalize the existing trust relationship under which the Debtor held the funds. Funds designated for perpetual care continue to be deposited into the Trust for those purposes. Timothy F. Nixon, Esq., at Godfrey & Kahn S.C., in Milwaukee, Wisconsin, relates that the Trust constitutes a separate and distinct legal entity from the Debtor, rather than a division or asset of the Debtor, as evidenced by all accounting related to the Trust, its independent creation and management, and its unique tax identification. Mr. Nixon contends that the Debtor does not have any rights to terminate or revoke the Trust because it holds no supervisory or other authority over the Trust. He asserts that the Trust is solely controlled by the terms set forth in its formation documents. About the Diocese of Milwaukee The Diocese of Milwaukee was established on Nov. 28, 1843, and was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius IX. The region served by the Archdiocese consists of 4,758 square miles in southeast Wisconsin which includes counties Dodge, Fond du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington and Waukesha. There are 657,519 registered Catholics in the Region. The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wisc. Case No. 11-20059) on Jan. 4, 2011, to address claims over sexual abuse by priests on minors. The Archdiocese became at least the eighth Roman Catholic diocese in the U.S. to file for bankruptcy to settle claims from current and former parishioners who say they were sexually molested by priests. Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The Official Committee of Unsecured Creditors in the bankruptcy case has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and Howard, Solochek & Weber, S.C., as its local counsel. The Archdiocese estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CENTURION PROPERTIES: Can Use GECC Cash Collateral Until Sept. 30 ----------------------------------------------------------------- Bankruptcy Judge Frank L. Kurtz has authorized Centurion Properties III, LLC, to continue using cash collateral of pre- petition lender General Electric Capital Corp. through Sept. 30, 2011, in accordance with an approved budget. To provide adequate protection of GECC's interest in the property securing its prepetition secured claims, the Debtor will pay GECC $330,000 on or before the 1st day of each month. The Debtor is current on such payments. To provide further protection, GECC is granted a first priority perfected security interest in and lien upon all "Mortgaged Property" and all products and proceeds. A copy of the Fourth Cash Collateral Order is available at: http://ResearchArchives.com/t/s?7670 As reported in the Troubled Company Reporter, the Bankruptcy Court has already signed three stipulations providing the Debtor access to cash collateral through June 30, 2011. About Centurion Properties Kennewick, Washington-based Centurion Properties III, LLC, was established in 2006 for the sole purpose of acquiring, owning, operating and managing the real estate project known as the Battelle Leaseholds located in Richland, Washington. Its sole asset is its leasehold interests in the Battelle Memorial Institute Campus and improvements, valued in excess of $90 million. CPIII filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 10-04024) on July 9, 2010. John D. Munding, Esq., at Crumb & Munding, in Spokane, Washington, assists the Company in its restructuring effort. In its schedules, the Debtor disclosed $98,907,255 in assets and $115,334,775 in liabilities as of the Petition Date. The United States Trustee was unable to appoint a creditors committee in the case. CENTURION PROPERTIES: Employs Michael Hines as Special Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Washington at Spokane has authorized Centurion Properties III LLC to employ Michael J. Hines, Esq., at Lukins & Annis P.S. as special litigation counsel. About Centurion Properties Kennewick, Washington-based Centurion Properties III, LLC, was established in 2006 for the sole purpose of acquiring, owning, operating and managing the real estate project known as the Battelle Leaseholds located in Richland, Washington. Its sole asset is its leasehold interests in the Battelle Memorial Institute Campus and improvements, valued in excess of $90 million. CPIII filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 10-04024) on July 9, 2010. John D. Munding, Esq., at Crumb & Munding, in Spokane, Washington, assists the Company in its restructuring effort. In its schedules, the Debtor disclosed $98,907,255 in assets and $115,334,775 in liabilities as of the Petition Date. The United States Trustee was unable to appoint a creditors committee in the case. CENTURION PROPERTIES: D. Kirby, Et Al. Seek Trustee Appointment --------------------------------------------------------------- Equity Interest Holders National Elite Financial Services LLC, Daniel Kirby, and Lori Rhodes, ask the U.S. Bankruptcy Court for the Eastern District of Washington at Spokane for entry of an order appointing a Chapter 11 trustee. About Centurion Properties Kennewick, Washington-based Centurion Properties III, LLC, was established in 2006 for the sole purpose of acquiring, owning, operating and managing the real estate project known as the Battelle Leaseholds located in Richland, Washington. Its sole asset is its leasehold interests in the Battelle Memorial Institute Campus and improvements, valued in excess of $90 million. CPIII filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 10-04024) on July 9, 2010. John D. Munding, Esq., at Crumb & Munding, in Spokane, Washington, assists the Company in its restructuring effort. In its schedules, the Debtor disclosed $98,907,255 in assets and $115,334,775 in liabilities as of the Petition Date. The United States Trustee was unable to appoint a creditors committee in the case. CHARLESTON ASSOCIATES: Wants Plan Filing Exclusivity Until July 29 ------------------------------------------------------------------ Charleston Associates, LLC, asks the U.S. Bankruptcy Court for the District of Delaware to further extend its exclusive periods to file a plan and to obtain acceptances of that plan until July 29, 2011, and Sept. 28, 2011, respectively. The Debtor is seeking this extension to attempt to negotiate a consensual plan of reorganization. This is the Debtor's sixth motion for an extension of its exclusivity periods. The Debtor says that on June 1, 2001, it closed on the sale of the Great Indoors site to Fry's Electronics, Inc. Prior to the closing of the Fry's sale, the secured lender was unwilling to engage in negotiations with the Debtor regarding a consensual plan. The Debtor hopes to commence those discussions soon. About Charleston Associates Based in Las Vegas, Nevada, Charleston Associates, LLC, is the successor by merger to Boca Fashion Village Syndications Group. It owns a portion of a large community shopping center located in Las Vegas. The entire shopping center is known as The Shops at Boca Park. It encompasses almost 55 acres and is situated at the northeast corner of the intersection of Charleston Boulevard and Rampart Boulevard. Charleston's current portion of the shopping center consists of a 20.4 acre parcel located at 700-750 S. Rampart Boulevard, Las Vegas, that is commonly known as Boca Fashion Village. Boca Fashion contains, among other things, a 130,000+ square foot parcel of real estate that is currently leased to Sears Roebuck & Company. Charleston Associates filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11970) on June 17, 2010. Judge Kevin J. Carey presides over the case. Neal L. Wolf, Esq., Dean C. Gramlich, Esq., and Jordan M. Litwin, Esq., at Neal Wolf & Associates, LLC, in Chicago, Ill., represent the Debtor as counsel. Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Del., represents the Debtor as Delaware counsel. In its schedules, the Debtor disclosed $92,348,446 in assets and $65,064,894 in liabilities. Attorneys at Brinkman Portillo Ronk, PC, represents the Official Committee of Unsecured Creditors as counsel. Thomas M. Horan, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in Wilmington, Del., represents the Official Committee of Unsecured Creditors as Delaware counsel. CHRISTIAN BROTHERS: Court OKs Gordon Tilden as Litigation Counsel ----------------------------------------------------------------- The U.S. Bankruptcy Court Southern District of New York has approved The Christian Brothers' Institute's application to employ Gordon Tilden Thomas & Cordell LLP as special litigation counsel, nunc pro tunc to April 29, 2011. The Debtor says it has tapped Gordon Tilden so that it can defend Christian Brothers' and its affiliate in lawsuits. The firm's hourly rates are: Personnel Rates --------- ----- Attorneys and Associates $250-$425 Legal Assistants/Aides $130-$160 Legal Clerks $80 About Christian Brothers' Institute The Christian Brothers' Institute in New Rochelle, New York, is a domestic not-for-profit 501(c)(3) corporation organized under Sec. 102(a)(5) of the New York Not-for-Profit Corporation Law. CBI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout New York State. The Christian Brothers of Ireland, Inc., in Chicago, Illinois, is a domestic not-for-profit 501(c)(3) corporation organized under the Not-for-Profit Corporation Law of the State of Illinois. CBOI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout the State of Illinois, as well as other spiritual and temporal affairs of the former Brother Rice Province of the Congregation of Christian Brothers. CBI and CBOI depend upon grants and donations to fund a portion of their operating expenses. The Christian Brothers' Institute and The Christian Brothers of Ireland filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011. Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves as the Debtors' bankruptcy counsel. CBI estimated its assets at $50 million to $100 million and debts at $1 million to $10 million. CBOI estimated its assets at $500,000 to $1 million and debts at $1 million to $10 million. CHRISTIAN BROTHERS: Newmark Okayed as Broker for School Property ---------------------------------------------------------------- The U.S. Bankruptcy Court Southern District of New York has approved The Christian Brothers' Institute's application to employ Newmark & Company Real Estate, Inc. as exclusive real estate broker. Newmark & Company, doing business as Newmark Knight Frank, will as real estate broker with respect to the marketing and sale of real property located at 74 W. 124th Street, New York. The Property is currently used as a Catholic high school (Rice High School) and has approximately 400 students. Recently, Rice High School announced that it would be closing at the end of this school year. Newmark has advised the Debtor that: (a) Newmark is a "disinterested person" within the meaning of 11 U.S.C. Sec. 101(14), (b) Newmark's officers, directors, shareholders and employees have no connection with the Debtor, its creditors or any other interested party, and (c) Newmark neither holds nor represents an interest adverse to the Debtor's estate in the matters upon it is to be engaged Under the Agreement, in the event Newmark procures an acceptable, qualified buyer for the Property and the sale is approved by the Court pursuant to 11 U.S.C. Sec. 363, it will receive a commission equal to 3% of the total sale price of the Property. These rates, according to the Debtors, are commensurate with the rates charged by other firms for comparable services with respect to real property of this nature. About Christian Brothers' Institute The Christian Brothers' Institute in New Rochelle, New York, is a domestic not-for-profit 501(c)(3) corporation organized under Sec. 102(a)(5) of the New York Not-for-Profit Corporation Law. CBI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout New York State. The Christian Brothers of Ireland, Inc., in Chicago, Illinois, is a domestic not-for-profit 501(c)(3) corporation organized under the Not-for-Profit Corporation Law of the State of Illinois. CBOI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout the State of Illinois, as well as other spiritual and temporal affairs of the former Brother Rice Province of the Congregation of Christian Brothers. CBI and CBOI depend upon grants and donations to fund a portion of their operating expenses. The Christian Brothers' Institute and The Christian Brothers of Ireland filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011. Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves as the Debtors' bankruptcy counsel. CBI estimated its assets at $50 million to $100 million and debts at $1 million to $10 million. CBOI estimated its assets at $500,000 to $1 million and debts at $1 million to $10 million. CHURCH AT SOUTH LAS VEGAS: Files for Chapter 11 Protection ---------------------------------------------------------- The Church at South Las Vegas sought Chapter 11 protection Friday. Katy Stech, writing for The Wall Street Journal's SpeakEasy, says the church's pastors put some of the megachurch's money toward transitional housing called Destiny House for ex-prostitutes struggling to escape the dangerous industry with the help of Hookers for Jesus -- a name that's about as subtle as Las Vegas itself. CMC CAPITAL: Court Affirms Chapter 7 Conversion ----------------------------------------------- Bankruptcy Judge Joel B. Rosenthal upheld a prior ruling converting the Chapter 11 case of CMC Capital Management Co., LLC, to a liquidation under Chapter 7. Judge Rosenthal denied five motions filed by the Debtor on July 8, 2011: a Motion Seeking Short Notice to Order Attorney to Refund Legal Fees to Obtain New Counsel, and Order Approval to Use Rents to Retain Counsel; a Motion Seeking Short Notice to Extend Time to File Notice of Appeal; a Motion Seeking Short Notice for Removal of Automatic Stay in addition to Motion for 2004 Examination and Opportunity to bring in all documents given to Trustee; a Motion Seeking Short Notice to Provide New Evidence to Support and Execute Chapter 11 Plan and Request Conference with both banks to adopt a modification plan; and a Motion Seeking Short Notice to Order a Stay in Chapter 7 to allow time to retain new counsel, get reimbursement from prior counsel, and order/authorize use of rental funds to retain new counsel. The Court issued the Conversion Order and an Order Granting Motion for Relief from Stay for the reasons set forth on the record at the June 13, 2011 hearing including, but not limited to, the Debtor's lack of proper insurance, the Debtor's failure to provide adequate protection and failure to make post petition payments and pay taxes, the Debtor's use of cash collateral without a court or creditor's consent; and the need to make repairs to real property which were provided by the City of New York and created a lien of approximately $40,000.00 on the real property. The Court had denied the Debtor's Motion to Reconsider Chapter 11 Conversion to Chapter 7 and Order Stay Back for failure to allege any newly discovered evidence, any manifest error of law, or any significant change in the law that would affect Court's June 13 decision. The Court held that the Debtor's time to file an appeal from the July 13 decision has passed. Pursuant to Bankruptcy Rule 8002(a), appeals must be filed within 14 days of the date of entry of the Court's order. The Debtor does not assert nor does the Court find excusable neglect on behalf of the Debtor to warrant an extension of the time to file a notice of appeal, and the Court does not believe that it can extend the time to file an appeal under Bankruptcy Rule 8002(c)(1)(A). A copy of the Court's July 11, 2011 Decision and Order is available at http://is.gd/uyTGdvfrom Leagle.com. CMC Capital Management Co., LLC, filed for Chapter 11 bankruptcy (Bankr E.D.N.Y. Case No. 11-42852) on April 6, 2011. The petition, filed pro se, estimated under $1 million in both assets and debts. COBALIS CORPORATION: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Cobalis Corporation 14462 Allegen Whittier, CA 90604 Bankruptcy Case No.: 11-39429 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Debtor's Counsel: Blake Lindemann, Esq. BLAKE LINDEMANN, ATTORNEY-AT-LAW 433 N. Camden Drive, 4th Floor Beverly Hills, CA 90210 Tel: (310) 279-5269 Fax: (310) 279-5370 E-mail: blindemann@llgbankruptcy.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/cacb11-39429.pdf The petition was signed by Chaslav Radovich, president. CONTINENTAL COMMON: Extends Access to Cash Collateral to July 31 ---------------------------------------------------------------- Continental Common, Inc., and its secured lender PNC Bank, N.A., agreed to modify and supplement the cash collateral use budget and extend the Debtor's time to use cash collateral until July 31, 2011. PNC Bank is represented by: William L. Wallander, Esq. Bradley R. Foxman, Esq. VINSON & ELKINS L.L.P. Trammell Crow Center 2001 Ross Avenue, Suite 3700 Dallas, Texas 75201-2975 Tel: 214.220.7700 Fax: 214.220.7716 E-mail: bwallander@velaw.com bfoxman@velaw.com A full-text copy of the Amended Cash Collateral Budget is available for free at http://ResearchArchives.com/t/s?7674 About Continental Common, Inc. Dallas, Texas-based Continental Common, Inc., has primary assets consist of various real estate holdings in multiple states. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10-37542) on Oct. 28, 2010. Melissa S. Hayward, Esq., at Franklin Skierski Lovall Hayward LLP, represents the Debtor. The Company disclosed $29,250,424 in assets and $25,150,836 in liabilities. The U.S. Trustee has not appointed a creditors' committee or examiner in the case. COPPER CREEK: Court Tosses Bid to Reject Chief Industries' Deal --------------------------------------------------------------- Bankruptcy Judge Timothy J. Mahoney denied the request of Copper Creek Estates - Grand Island, L.L.C., to reject contracts held by Chief Industries, Inc. The Court held that Chief has no ongoing obligations under the agreement and, therefore, the agreement is not executory. It cannot be rejected under Sec. 365 of the Bankruptcy Code. The Debtor entered into an agreement with Chief Industries, whereby Chief would deliver to the debtor $1 million to be used by the Debtor to develop land. As consideration for the payment, Chief received an exclusive right to sell lot purchasers modular homes built by a division of Chief called "Bonna Villa Homes." The agreement provided that once a lot was purchased, the purchaser could only place upon that lot a modular home manufactured by Bonna Villa. Judge Mahoney noted that it is clear from the testimony of the representative of the Debtor at the first meeting of creditors that the real intent of this whole case is to eliminate the restrictive covenant which has been filed, recorded, and runs with the land. That restrictive covenant includes the requirement that only Bonna Villa homes can be placed on the lots. Judge Mahoney said that portion of the restrictive covenant can only be amended by the agreement of both the Developer/Debtor and Chief. Even if the Agreement was determined to be executory and rejected, the rejection does not affect the restrictive covenant or the right of Chief under the covenant. A copy of Judge Mahoney's July 8, 2011 Order is available at http://is.gd/H0k2j9from Leagle.com. About Copper Creek Estates Based in Sutton, Nebraska, Copper Creek Estates-Grand Island, LLC, develops land in Hall County, Nebraska. Once developed, the platted lots were to be sold for use by purchasers for construction of personal residences. Copper Creek filed for bankruptcy (Bankr. D. Neb. Case No. 11-40496) on Feb. 28, 2011. Trev Peterson, Esq. -- tpeterson@knudsenlaw.com -- at Knudsen Berkheimer Richardson Endacott, serves as the Debtor's counsel. The Debtor scheduled assets of $2,766,657 and debts of $4,807,631. The petition was signed by Jim Van Kirk, manager. CORBIN PARK: Aspen Square Agrees to Buy Project for $14 Million --------------------------------------------------------------- Krista Klaus, staff writer at the Kansas City Business Journal, reports that developer Aspen Square Inc. has agreed to pay $14 million for Overland Park's Corbin Park retail project. According to the report, stalking horse bidder Aspen Square, led by Michael Schlup, agreed to buy the project from Omaha-based Corbin Park LP, though other interested parties have until August 30 to bring offers to the table, according to court documents. The report says CB Richard Ellis began marketing the property earlier this year. Interested parties have included Kansas City- based RED Development LLC, Block & Co. LLC and Denver-based Alberta Development Partners. Mr. Schlup faced criminal charges in the state of Missouri in 2007 for tax evasion relating to not deducting and paying employment taxes on undocumented workers for a Lake of the Ozarks condominium project. Mr. Schlup paid nearly $1 million in back taxes, fines and court fees. The report notes a lending syndicate led by Bank of America is owed more than $33 million for the project. A July 21 hearing is scheduled in the case. Based in Omaha, Neb., Corbin Park, L.P., acquired part of a 97- acre, partially developed, shopping center known as Corbin Park in 2008. Corbin Park sought Chapter 11 protection (Bankr. D. Kan. Case No. 10-20014) on Jan. 5, 2010. Carl R. Clark, Esq., and Jeffrey A. Deines, Esq., at Lentz Clark Deines PA, represent the Debtor. The Debtor estimated $50 million to $100 million in assets and $10 million to $50 million in debts as of the Petition Date. CREATIVE CAPITAL: Default Judgment Against Wells Fargo Vacated -------------------------------------------------------------- Chief Bankruptcy Judge Peter W. Bowie vacated a default judgment entered against Wells Fargo Home Mortgage, Inc., in a lawsuit filed by the Chapter 7 Trustee of Creative Capital Leasing. The default judgment was entered against Wells Fargo Home Mortgage as a result of its failure to respond to the complaint. Judge Bowie said the failure here to answer the Complaint appears to have been an honest mistake, with no evidence of bad faith. WFHM made a loan to David Winick, principal of the Debtor, in September 2003, secured by a first trust deed on Mr. Winick's condominium. An equity line second deed of trust in favor of Wells Fargo Bank, N.A., was later placed on the condo. WFHM recorded a Notice of Default in March 2008, and the property sold at a Trustee's Sale to a third party with WFHM receiving a full payoff in September 2008. The Debtor filed for Chapter 11 relief shortly after the WFHM loan went into default. The case was converted to a Chapter 7 proceeding in October 2008. Leslie T. Gladstone, Chapter 7 Trustee, v. Wells Fargo Home Mortgage, Inc., a California corporation, Adv. Proc. No. 09-90454 (Bankr. S.D. Calif.), claims that the Debtor made the payments on the WFHM loan, rather than Mr. Winick, and seeking damages under fraudulent transfer theories. A copy of Judge Bowie's June 29, 2011 Written Decision is available at http://is.gd/JUfyYxfrom Leagle.com. Creative Capital Leasing Group, L.L.C., based in San Diego, California, provided industrial equipment for leasing and rent. It filed for Chapter 11 bankruptcy (Bankr. S.D. Calif. Case No. 07-04977) on Sept. 10, 2007. John L. Smaha, Esq., served as the Debtor's counsel. In its petition, it estimated assets and debts of $1 million to $100 million. The case was converted to a Chapter 7 proceeding in October 2008. Leslie T. Gladstone was appointed as Chapter 7 Trustee. CRYSTAL CATHEDRAL: Said to Be Interested in Other Offers -------------------------------------------------------- Nicole Santa Cruz at the Los Angeles Times reports that the Crystal Cathedral church's bankruptcy filings made Monday appear to indicate that the church is actively interested in offers beyond one made by an Orange County real estate development group two months ago. LA Times relates that the church requested partial withdrawal from a plan that would make Greenlaw Partners the primary bidder for the property, entitling the group to a fee if outbid. In an exit plan filed by the church in May, Greenlaw would purchase the Crystal Cathedral property for $46 million, lease the church and other buildings back to the ministry and construct apartments on other parts of the campus. Two other potential buyers have expressed interest in the property. The report relates a separate plan, filed by the church's unsecured creditors, would allow Chapman University to purchase the 40-acre campus for $46 million and lease back core buildings for a lower price than Greenlaw. The school would use the space for a health sciences campus. The Greenlaw plan pays creditors back over a period of two years, while the Chapman plan pays creditors when the sale is complete. LA Times says lawyers for both the church and creditors had no comment. As reported by the Troubled Company Reporter on July 8, 2011, the Roman Catholic Diocese of Orange said it was exploring the possibility of joining the list of potential buyers for the property. According to LA Times, Crystal Cathedral said in a document dated late last week that the Chapman plan is a "thinly disguised attempt" to liquidate the church's assets. The Bankruptcy Court was set to consider the sales procedures at a hearing yesterday. A separate hearing regarding the church's reorganization plan is scheduled for today. 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, represents the Committee. DEAN BENNETT: Case Summary & 18 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Dean Bennett Site Contractor, Inc. 216 S. Wilderness Trail Ponte Vedra Beach, FL 32082 Bankruptcy Case No.: 11-05047 Chapter 11 Petition Date: July 9, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Bryan K. Mickler, Esq. LAW OFFICES OF MICKLER & MICKLER 5452 Arlington Expressway Jacksonville, FL 32211 Tel: (904) 725-0822 Fax: (904) 725-0855 E-mail: court@planlaw.com Scheduled Assets: $1,554,400 Scheduled Debts: $2,507,381 A list of the Company's 18 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-05047.pdf The petition was signed by Dean Bennett, president. DEB SHOPS: Gets Court OK to Tap Kurtzman Carson as Claims Agent --------------------------------------------------------------- DSI Holdings, Inc. and its debtor-affiliates obtained late last month bankruptcy court permission to employ Kurtzman Carson Consultants LLC as their claims and noticing agent, effective as of June 26, 2011. As reported in the June 30, 2011 edition of Troubled Company Reporter, the Debtors estimate that they have thousands of creditors; accordingly, a claims and noticing agent is required to assist the clerk of court. 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. Sitrick & Company serves as public relations consultants. Ableco, the DIP Agent is represented by Michael L. Tuchin, Esq., and David A. Fidler, Esq., 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. Another lender, Lee DSI Holdings, is represented by Jennifer Rodburg, Esq., at Fried Frank Harris Shriver & Jacobson LLP. DYNEGY HOLDINGS: Moody's Sees Distressed Debt Exchange ------------------------------------------------------ Holdings, Inc., including its Probability of Default Rating and its senior unsecured rating to Ca from Caa3 along with the ratings of various affiliates. The rating outlook for DHI is negative. RATINGS RATIONALE Downgrades: Issuer: Dynegy Holdings Inc. -- Probability of Default Rating, Downgraded to Ca from Caa3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ca, LGD4, 52% from Caa3, LGD4, 58% -- Multiple Seniority Shelf, Downgraded to (P)Ca, (P)C from (P)Caa3, (P)Ca Issuer: Dynegy Inc. -- Multiple Seniority Shelf, Downgraded to (P)C, (P)C, (P)C from (P)Ca, (P)Ca, (P)Ca Issuer: NGC Corporation Capital Trust I -- Preferred Stock Preferred Stock, Downgraded to C, LGD6, 91% from Ca, LGD6, 96% Issuer: Roseton-Danskammer 2001 -- Senior Secured Pass-Through, Downgraded to Ca, LGD4, 52% from Caa3, LGD4, 58% Issuer: Dynegy Capital Trust II -- Preferred Stock Shelf, Downgraded to (P)C from (P)Ca Issuer: Dynegy Capital Trust III -- Preferred Stock Shelf, Downgraded to (P)C from (P)Ca Assignments Issuer: Dynegy Power, LLC -- $1.3 Billion Senior Secured Term Loan, Assigned (P) B2 LGD1, 05% Outlook Actions: Issuer: Sithe/Independence Funding Corporation -- Outlook, Changed To Stable from Negative "The downgrade of DHI's PDR and senior unsecured notes to Ca reflects the increased likelihood of a distressed debt exchange transaction occurring within the next several months following today's announcement of a corporate reorganization that seeks to modify asset ownership within DHI through the formation of several wholly-owned subsidiaries", said A.J. Sabatelle, Senior Vice President of Moody's. "Separate financing arrangements being established at these subsidiaries will have annual limits placed on the amount of cash flow that can be paid to their indirect parent, which Moody's believes raises default prospects for DHI's senior unsecured notes and the company's lease", added Sabatelle. Moody's also assigned a (P)B2 rating to a $1.3 billion six-year senior secured term loan being established at Dynegy Power, LLC (GasCo), one of the wholly-owned subsidiaries. GasCo will be directly owned by Dynegy Gas Investments Holdings, LLC (DGIH), whose sole purpose will be to hold the stock of GasCo. Both GasCo and DGIH will be owned by Dynegy Gas Holdco, LLC (DGH). The rating outlook for GasCo is negative. The (P) B2 rating assigned to GasCo's senior secured term loan reflects the secured position of this debt relative to DHI's substantial unsecured debt, the modest amount of secured debt in the capital structure and considers the standalone credit quality of GasCo where Moody's expects a high percentage of gross margin and cash flow to be derived from various contractual arrangements in place with credit worthy counterparties over the next several years. As part of the corporate restructuring, GasCo will own 6,771 megawatts (MW) of DHI's natural gas-fired generating plants, which collectively represent eight plants in five markets. Lenders will be secured by a collateral package that includes the plant collateral, with operating company leverage being modest, as debt/KW at closing is expected to be $192/KW based upon all eight plants or $295/KW when one considers only the newest, more efficient natural gas plants. That said, the (P)B2 rating assignment recognizes the existence of additional debt within the DHI family as cash flow being generated by GasCo will be used in some capacity for debt service throughout DHI even after considering the existence of a restricted payments test anticipated to be in the financing documents. While final terms of the transaction have not been determined, Moody's understands that the current terms do not anticipate the existence of financial maintenance covenants, which Moody's considers to be a structural weakness. Proceeds from the GasCo term loan are expected to repay outstanding indebtedness under the existing secured credit facility at DHI (rated B2), repay (at GasCo's option) the approximately $192 million of existing debt relating to Sithe Energies, Inc. (the intermediate holding company that indirectly holds the Independence facility), make a $400 million restricted payment at closing to a parent company of GasCo, fund cash collateral requirements, pay transaction expenses, and fund additional cash for GasCo's working capital requirements. In addition to GasCo, DHI intends to convert Dynegy Midwest Generation LLC (CoalCo) into a bankruptcy remote entity, which will be owned by Dynegy Coal Investments Holdings (DCIH), whose asset will be the stock of CoalCo. Moody's understands that a $400 million six year secured term loan will be initially raised at CoalCo to be used primarily to address collateral and working capital requirements. Collateral securing the term loan will be the 3,132 MW primarily coal-fired portfolio of six plants located in the MISO region. While collateral coverage appears strong, Moody's anticipates the credit metrics for CoalCo to be more volatile than those at GasCo over the next few years because of the sole reliance on a more challenged unregulated power market in the Midwest for earnings and cash flow, the lack of formal capacity market in MISO, as well as the required capital investment program being completed for environmental expenditures. As such, Moody's would anticipate that distributable cash flow from CoalCo through 2013 will be more modest and more volatile (as compared to GasCo) as the environmental capital expenditures are being incurred. DHI remaining assets, including its ownership and leasehold interest in the 1,693 Danskammer and Roseton plants will remain as DHI subsidiaries and will not be included as subsidiaries of GasCo or CoalCo. As part of this reorganization, Moody's understands that DHI intends to implement ring-fencing like measures around DGIH and GasCo and its subsidiaries, and around DCIH and CoalCo and its subsidiaries. DGIH and DCIH and each of their respective subsidiaries, GasCo and CoalCo, will have at least one independent manager or director, and each will have a variety of separateness provisions with the intent to hold itself out as a separate entity. Moody's further understands that unanimous consent of the board of managers, including the independent manager, will be required for any bankruptcy proceeding, and that the independent director will make such decisions based solely on the interests of GasCo or CoalCo and not based upon the interests of DHI or DYN. DHI intends to sell up to 20% of GasCo within one year of formation. Potential owners of 20% of GasCo could include an unrelated third party, DHI shareholders, or DHI creditors. While Moody's has not received or reviewed a final set of related operating documents associated with this corporate reorganization, it would appear that the intent of the reorganization will be for each legal entity to be viewed as a separate organization from a legal standpoint. That said, Moody's believes that the operations of the company will continue to run largely as a consolidated concern. Commercial strategies, fuel and asset management strategies, and capital investment will be directed and guided by DHI and by subsidiaries of DHI excluded from the ring-fenced subsidiaries. For example, the company's marketing and trading subsidiaries, which are critical to the financial performance of the operating subsidiaries and the consolidated concern, are outside of the ring fence. In addition, the company's counterparties will continue to transact with entities outside of both ring-fenced organizations for the benefit of the ring-fenced entities. These activities, many of which are integral to the operating companies' and consolidated parent's performance, will be documented in intercompany agreements. As such, Moody's rating outcome is less affected by the implementation of these ring- fencing like measures and more influenced by the consolidated credit profile at DHI. This is particularly the case given that Moody's believes the primary reason for executing the corporate reorganization has more to do with restructuring DHI's on-balance sheet and off-balance sheet debt obligations in the future and less to do with any operational or synergistic benefits associated with having two subsidiaries. To that end, Moody's believes that should DHI's efforts in future debt exchanges reduce consolidated debt to a level that can be supported by the annual amount of restricted payments available from GasCo and CoalCo, collapsing the ring-fencing like measures may be considered and replaced by a consolidated approach, which exists today. As such, DHI's Caa3 Corporate Family Rating which remains unchanged reflects Moody's concern about continued weak cash flow over the next several years due to challenging market conditions caused by lower power prices due to low natural gas prices and lackluster electric demand. On a consolidated basis, Moody's believes that during 2011 and 2012, in the absence of some form of debt restructuring, the company will generate both negative operating cash flow and negative free cash flow due to weak operating margins, higher required lease payments, and required funding for environmental related capital expenditures. Separately, Moody's has changed the rating outlook for Sithe/Independence Funding Corporation (Sithe: B2 senior secured) to stable from negative based upon Moody's understanding that the assets of Sithe will be moved to GasCo as part of the company's corporate restructuring efforts. Also, Moody's understands that a portion of the net proceeds from the GasCo secured term loan can be used to repay approximately $192 million of debt at Sithe or to cash collateralize Sithe's debt service reserve, which is currently provided via DHI's secured credit facility. To the extent that the Sithe repayment does not occur, additional negative rating pressure would surface at DHI and at GasCo. Moody's views DHI as being a financially distressed company, given its highly levered capital structure relative to its ability to generate sustainable cash flow. The company's cash flow generation is highly exposed to natural gas and power commodity prices, which are expected to remain low over the next several years. The continuing negative rating outlook factors in Moody's expectation that some form of debt restructuring will occur within the next several months. Prospectively, DHI ratings are unlikely to be upgraded over the intermediate term horizon, largely due to Moody's expectations of consolidated negative free cash flow for the next several years and the current uncertainty about the impact of any potential debt restructuring efforts. GasCo's negative outlook largely reflects the negative outlook at DHI, along with the interrelationship and reliance that will continue to exist between GasCo, DHI, and other DHI subsidiaries irrespective of the formation of the ring-fencing like measures being adopted by the company. In light of the lack of specificity concerning DHI's potential restructuring initiatives, including the potential sale of up to 20% of GasCo, the rating outlook for GasCo is likely to mirror that of DHI. The principal methodology used in rating DHI and Dynegy was Rating Methodology: Unregulated Utilities and Power Companies, published in August 2009 and available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. Headquartered in Houston, Texas, DHI is an independent power producer that owns a portfolio of 11,596 MW electric generating assets. DHI is wholly-owned by Dynegy, Inc. EMISPHERE TECHNOLOGIES: Mark Rachesky Holds 47.6% Equity Stake -------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Mark H. Rachesky, M.D., and his affiliates disclosed that they beneficially own 38,369,904 shares of common stock of Emisphere Technologies, Inc., representing 47.6% of the shares outstanding. The number of shares of the Company's common stock, $.01 par value, outstanding as of May 1, 2011 was 52,076,602. A full-text copy of the filing is available for free at http://is.gd/cID7vy About Emisphere Technologies Based in Cedar Knolls, New Jersey, Emisphere Technologies, Inc. (OTC BB: EMIS) -- http://www.emisphere.com/-- is a biopharmaceutical company that focuses on a unique and improved delivery of pharmaceutical compounds and nutritional supplements using its Eligen(R) Technology. The Eligen(R) Technology can be applied to the oral route of administration as well other delivery pathways, such as buccal, rectal, inhalation, intra-vaginal or transdermal. Since its inception in 1986, Emisphere has generated significant losses from operations. Emisphere anticipates it will continue to generate significant losses from operations for the foreseeable future, and that its business will require substantial additional investment that it has not yet secured. The Company reported a net loss of $56.91 million on $100,000 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $16.82 million on $92,000 of revenue during the prior year. ENERGYCONNECT GROUP: Merger Sub Merges with ECI ----------------------------------------------- Pursuant to the Agreement and Plan of Merger, dated as of March 2, 2011, by and among EnergyConnect Group, Inc., Johnson Controls Holding Company, Inc., and Eureka, Inc., a wholly owned subsidiary of JCI Holding or "Merger Sub", Merger Sub merged with and into ECI, with ECI surviving as a wholly owned subsidiary of JCI Holding. Pursuant to the terms of the Merger Agreement, upon completion of the Merger, each share of ECI's common stock, no par value, that is not owned by JCI Holding or its subsidiaries was converted in to the right to receive $0.2253 per share in cash. In connection with the completion of the Merger, ECI has informed the OTC Bulletin Board of the Merger and requested that trading in ECI common stock be suspended and that the ECI common stock be withdrawn from quotation on the OTC Bulletin Board. ECI intends to file a Form 15 to suspend its reporting obligations under Section 13(a) and 15(d) of the Securities Exchange Act of 1934 as soon as practicable. A change in control with respect to ECI occurred on July 1, 2011, when Merger Sub merged with and into ECI, with ECI continuing as the surviving entity and wholly owned subsidiary of JCI Holding. Upon completion of the Merger, the Articles of Incorporation of Merger Sub, as amended by the Plan of Merger filed with the Oregon Secretary of State on July 1, 2011, became the Articles of Incorporation of ECI. The amended version of the Articles of Incorporation is available for free at http://is.gd/kLKQf1 About EnergyConnect Group Campbell, Calif.-based EnergyConnect Group Inc. (OTC BB: ECNG) -- http://www.energyconnectinc.com/-- is a provider of demand response services to the electricity grid. Demand response programs provide grid operators with additional electricity generation capacity by encouraging consumers to curtail their electricity usage. RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the year ended Jan. 2, 2010. The independent auditors noted that the Company is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. The Company's balance sheet at April 2, 2011, showed $15.25 million in total assets, $11.53 million in total liabilities, and $3.72 million in total shareholders' equity. EVERGREEN INTERNATIONAL: S&P Hikes CCR to 'B-' After Refinancing ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on McMinnville, Ore.-based Evergreen International Aviation Inc. to 'B-'from 'CCC' and removing the rating from CreditWatch, where it was placed with negative implications on Dec. 9, 2010. "We are also affirming the ratings we assigned to the company's new credit facility on June 7, 2011, and withdrawing ratings on the debt it replaced. The outlook is stable," S&P related. "The rating actions follow Evergreen's completion of its debt refinancing," said Standard & Poor's credit analyst Lisa Jenkins. "We characterize Evergreen's business risk profile as vulnerable and its financial risk profile as highly leveraged, reflecting the company's participation in the cyclical, competitive, and capital- intensive heavy airfreight business; its highly leveraged capital structure; and liquidity that, while somewhat improved, we still characterize as less than adequate. Offsetting these challenges to some extent are the company's improved financial performance in recent quarters and the generally favorable near- term outlook for the industry. In particular, we expect the airfreight business to benefit from continuing solid military demand and strengthening commercial demand driven by the slowly recovering global economy." Evergreen's refinancing of it debt has improved the company's liquidity somewhat. It remains, however, highly leveraged, especially given the competitive and capital-intensive industry in which it operates. "We believe that liquidity will remain less than adequate given the significant amount of cash flow that the company needs for debt service. The company's private ownership (which limits capital raising options) and its financial history (which includes a payment default a number of years ago and various subsequent covenant defaults) heightens its credit risk," S&P related. The outlook is stable. "Given the company's current liquidity position and onerous debt service," Ms. Jenkins continued, "we don't anticipate raising the ratings over the next 12 months. We believe Evergreen's liquidity has improved modestly as a result of the refinancing. However, we could lower the ratings if market conditions deteriorate, leading to pressures on profitability and a material deterioration in liquidity." FAITHSHARES TRUST: To Close and Liquidate Four Funds ---------------------------------------------------- After careful consideration, the Board of Trustees of the FaithShares Trust has determined to close and liquidate the FaithShares Baptist Values Fund (FZB), the FaithShares Catholic Values Fund (FCV), the FaithShares Lutheran Values Fund (FKL) and the FaithShares Methodist Values Fund (FMV). The Christian Values Fund (FOC) will remain open. The last day of trading of each Liquidating Fund's shares on the NYSE Arca will be July 15, 2011. Shareholders may sell Fund shares through a broker in the standard manner through this date. Customary brokerage charges may apply to such transactions. Each Liquidating Fund will be closed to new investors as of July 15, 2011. Between July 20 and July 27, the Liquidating Funds will be in the process of liquidating their portfolio assets. This will cause the Funds to increase their cash holdings and deviate from the investment objective and strategies stated in the prospectus. Shareholders remaining in a Liquidating Fund on July 27, 2011 will have their shares redeemed automatically on this date and will receive cash in an amount equal to the net asset value of their shares as of the close of business on July 27. This amount includes any accrued capital gains and dividends. Shareholders remaining in a Liquidating Fund on July 27 will not be charged any transaction fees by a Liquidating Fund. The net asset value of a Liquidating Fund will reflect the costs of closing the Liquidating Fund. Whether you sell your shares or are automatically redeemed on July 27, you will generally recognize a capital gain (or loss) equal to the amount you receive for your shares above (or below) or adjusted cost basis in such shares. Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-877-FAITH55 (1.877.324.8455), or by visiting http://www.faithshares.com.Read the prospectus carefully before investing. FaithShares Funds are distributed by SEI Investments Distribution Co., which is not affiliated with FaithShares Advisors, LLC or any of its affiliates. FEDERAL-MOGUL: 6th Circuit Clears Insurer of Asbestos Liability --------------------------------------------------------------- The U.S. Court of Appeals for the Sixth Circuit affirmed a district court order dismissing the lawsuit filed by the Federal- Mogul U.S. Asbestos Personal Injury Trust against Continental Casualty Company for insurance coverage. The Asbestos PI Trust was created by the Chapter 11 bankruptcy plan of Federal-Mogul Corporation. From 1965 to 1981, a division of Federal-Mogul, the Vellumoid Company, manufactured and sold automotive products containing asbestos. Numerous lawsuits were filed against Federal-Mogul for asbestos-related injuries arising from Vellumoid's products. Federal-Mogul's bankruptcy plan established that the Trust bears liability for these claims. In addition, the plan assigned the Trust the right to insurance proceeds and coverage under the insurance policies held by the Federal-Mogul Corporation. The Trust holds three primary-level general insurance policies that cover it for both liability and defense costs arising out of the Vellumoid claims, one each from Travelers Indemnity Company, Globe Indemnity Company, and Liberty Mutual Insurance Company. The Trust alleged that the limits of the Travelers Policy have been exhausted, but the other two primary policies are currently defending the Trust against the Vellumoid claims. The disputed policy held by the Trust is Continental's umbrella policy SRU 3196774. The only primary policy covering the Vellumoid claims that is listed in the umbrella Policy's Underlying Insurance Schedule is the Travelers Policy. The Trust sued Continental seeking declaratory relief in the district court, claiming that the Policy requires Continental to defend the Trust against the Vellumoid claims. Continental moved to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(6), saying the complaint failed to state a claim. At a hearing, the district court orally granted Continental's motion to dismiss. The appellate case is Federal-Mogul U.S. Asbestos Personal Injury Trust, Plaintiff-Appellant, v. Continental Casualty Company, Defendant, Continental Insurance Company, Defendant-Appellee, No. 10-1290 (6th Cir.). The panel consists of Circuit Judges Ransey Guy Cole Jr., David William McKeague, and Richard Allen Griffin. A copy of the Sixth Circuit's July 8, 2011 decision, penned by Judge Cole, is available at http://is.gd/kdZDLdfrom Leagle.com. Plaintiff-Appellant Federal-Mogul U.S. Asbestos Personal Injury Trust is represented by: Andrea K. Hopkins, Esq. Barry Buchman, Esq. GILBERT LLP 1100 New York Avenue, NW, Suite 700 Washington, DC 20005 Tel: (202) 772-2334 E-mail: hopkinsa@gotofirm.com buchmanb@gotofirm.com - and - Cynthia M. Filipovich, Esq. CLARK HILL PLC 500 Woodward Ave, Suite 3500 Detroit, MI 48226 Tel: (313) 965-8373 Fax: (313) 309-6873 E-mail: cfilipovich@clarkhill.com Defendant-Appellee Continental Casualty Company is represented by: Steven M. Crane, Esq. BERKES CRANE ROBINSON & SEAL LLP 515 South Figueroa, Suite 1500 Los Angeles, CA 90071 Tel: 213-955-1150 Fax: 213-955-1155 E-mail: scrane@bcrslaw.com - and - David J. Bloss, Esq. BLOSS BETZ 5136 Cascade Rd, SE - Suite 1A Grand Rapids, MI 49546 Tel: (616) 977-3688 Fax: (616) 285-0045 E-mail: dbloss@blossbetz.com About Federal-Mogul Federal-Mogul Corporation is a supplier of powertrain, chassis and as safety technologies, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy- duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Federal-Mogul was founded in Detroit in 1899. The Company is headquartered in Southfield, Michigan, and employs nearly 41,000 people in 33 countries. The Company filed for Chapter 11 protection (Bankr. Del. Case No. 01-10582) on Oct. 1, 2001. Attorneys at Sidley Austin Brown & Wood, and Pachulski, Stang, Ziehl & Jones, P.C., represented the Debtors in their restructuring effort. The Debtors disclosed $10.15 billion in assets and $8.86 billion in liabilities as of the Chapter 11 filing. Attorneys at The Bayard Firm represented the Official Committee of Unsecured Creditors. The Debtors' Reorganization Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14, 2007. Federal-Mogul emerged from Chapter 11 on Dec. 27, 2007. FINANCIAL RESOURCES: Court Rules in Avoidance Suit v. Migliaccios ----------------------------------------------------------------- Bankruptcy Judge J. Michael Deasy granted, in part, and denied in part, the request by defendants to dismiss the lawsuit, Steven M. Notinger, Chapter 7 trustee for Financial Resources Mortgage, Inc. and C.L. & M., Inc., v. Philip Migliaccio and Melanie Migliaccio, Adv. Proc. No. 10-1075 (Bankr. D. N.H.). In the lawsuit, the Chapter 7 Trustee asked the Court to declare certain promissory notes, mortgages, and other property standing in the name of the Migliaccios as property of FRM's or CLM's bankruptcy estates and to avoid various transfers as fraudulent or preferential. The Migliaccios sought dismissal of the Complaint on the grounds the Trustee has failed to state a claim upon which relief can be granted. A copy of the Court's July 8, 2011 Memorandum Opinion is available at http://is.gd/fQ4Q6tfrom Leagle.com. The defendants are represented by: Bertrand A. Zalinsky, Esq. CRONIN & BISSON, P.C. 722 Chestnut Street Manchester, NH 03104 Tel: 603-624-4333 Fax: 603-623-5626 E-mail: contactus@croninbisson.com Financial Resources Mortgage a/k/a Financial Resources & Assistance of The Lakes Region, Inc., a/k/a Financial Resources National, Inc.; and C L & M, Inc., a/k/a Commercial Project Loan Servicing filed for Chapter 7 bankruptcy (Bank. D. N.H. Case No. 09-14565). Steven M. Notinger, Esq., has been appointed Chapter 7 Trustee. Other affiliated entities are also in separate Chapter 7 proceedings: Scott David Farah (Bankr. D. N.H. Case No. 09-14902); SMM 2007 Realty Trust (Bankr. D. N.H. Case No. 09-14903); and Dodge Financial, Inc. (Bankr. D. N.H. Case No. 10-10278). The Chapter 7 Trustee may be reached at: Steven M. Notinger, Esq. DONCHESS & NOTINGER, PC 547 Amherst Street Nashua, New Hampshire 03063 E-mail: steve@dntpc.com FIRST FOLIAGE: U.S. Trustee Asks Court to Convert or Dismiss Case ----------------------------------------------------------------- Donald F. Walton, United States Trustee for Region 21, pursuant to 11 U.S.C. Section 1112(b), asks the U.S. Bankruptcy Court for the Southern District of Florida to convert or dismiss First Foliage, LC's Chapter 11 case. The U.S. Trustee says the record supports a finding of cause, at minimum, under Section 1112(b)(4)(K). The Debtor has not paid the required statutory fee owed to the U.S. Trustee in the amount of approximately $20,000 for the first quarter of 2011. About First Foliage, L.C. Homestead, Florida-based First Foliage, L.C., once operated a business that supplied tropical plants to retailers. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-27532) on June 23, 2010. Luis Salazar, Esq., at Infante, Zumpano, Hudson & Miloch, LLC, represents the Debtor. Berger Singerman, P.A., serves as counsel to the Official Committee of Unsecured Creditors. The Company estimated $50 million to $100 million in assets and $10 million to $50 million in liabilities in its Chapter 11 petition. As reported in the TCR on Feb. 15, 2011, First Foliage LC has sold its assets to Costa Farms LLC for roughly $22 million. FRONTIER OIL: Moody's Upgrades CFR to 'Ba1' on Diversification -------------------------------------------------------------- Moody's raised the rating on Holly Corp.'s notes to Ba2 from B1 and raised the ratings on Frontier Oil Corporation's notes to Ba2 from Ba3. FTO's notes have been assumed by HOC as part of the acquisition of FTO by HOC, and HOC has changed its name to HollyFrontier Corp. Moody's upgraded HFC's (formerly HOC) CFR to Ba1 from Ba3 and withdrew FTO's CFR. Moody's raised HFC's Speculative Grade Liquidity rating to SGL-1 from SGL-2. The outlook is stable. RATINGS RATIONALE "HFC's Ba1 CFR reflects the increased scale and diversification of the combined company," commented Jonathan Kalmanoff, Moody's Analyst. "The predecessor companies were managed conservatively and Moody's expects the new HollyFrontier will continue to have low financial risk." HFC has an advantaged geographic position which allows for access to heavily discounted crudes in the current commodity price environment and an ability to process a high proportion of heavy crude. The rating also considers the operational risks inherent in the pending integration of the two Tulsa refineries. The SGL-1 liquidity rating reflects HFC's very good liquidity over the next twelve months with a March 31, 2011 pro forma cash balance of $892 million, a $1 billion undrawn senior secured ABL revolver (with approximately $300 million of letters of credit outstanding), and the expectation that cash flows which will cover non-discretionary capital spending. The facility is collateralized by inventory, receivables, and other current assets. Covenants under the facility include a fixed charge coverage ratio of 1.0x. HFC has no debt maturities until 2016. Since HFC's asset base is not fully encumbered by the ABL revolver, it would likely be able to utilize asset sales as a source of backup liquidity if needed. The Ba2 senior unsecured note rating reflects both the overall probability of default of HFC, to which Moody's assigns a PDR of Ba1, and a loss given default of LGD5-83%. The size of the $1 billion secured revolver's potential priority claim relative to the unsecured notes results in the notes being rated one notch beneath the Ba1 CFR under Moody's Loss Given Default Methodology. An upgrade could result if HFC were to establish a longer track record in its post-merger configuration, successfully complete the integration of the two Tulsa refineries, increase its scale with crude distillation capacity above 600 mbbls/d, and maintain debt / complexity barrels below $200/bbl (excluding the debt at Holly Energy Partners). Any upgrade would be contingent upon a review of the quality of the asset base if growth were achieved through acquisitions. A downgrade could result if debt / complexity barrels were to increase to $300/bbl (excluding the debt at Holly Energy Partners), if HFC were to experience material and sustained operational issues, or if HFC's strategy and financial policies were to become significantly less conservative than those of the predecessor companies. The principal methodology used in rating HollyFrontier was the Global Refining and Marketing Industry Methodology published in December 2009. HollyFrontier Corp is an independent refining company headquartered in Dallas, Texas. FRUITVILLE ASSOCIATES: Case Summary & Creditors List ---------------------------------------------------- Debtor: Fruitville Associates LLC 580 Village Boulevard, Suite, 300 West Palm Beach, FL 33409-1951 Bankruptcy Case No.: 11-29052 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman, Jr. Debtor's Counsel: Bradley S. Shraiberg, Esq. SHRAIBERG, FERRARA, & LANDAU P.A. 2385 NW Executive Center Drive, #300 Boca Raton, FL 33431 Tel: (561) 443-0801 Fax: (561) 998-0047 E-mail: bshraiberg@sfl-pa.com Scheduled Assets: $2,904,994 Scheduled Debts: $$2,929,143 A list of the Company's 17 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flsb11-29052.pdf The petition was signed by Stewart F. Denholtz, manager. GAMETECH INT'L: Board Approves $190,000 Annual Salary for CEO ------------------------------------------------------------- The Compensation Committee of the Board of Directors of GameTech International, Inc., approved an annual base salary of $190,000 payable to Kevin Y. Painter as President and Chief Executive Officer of the Company, which will become effective June 27, 2011. Additionally, effective as of June 30, 2011, the Company terminated its April 13, 2011, consulting agreement with Kevin Y. Painter, which called for compensation of $10 thousand per month in exchange for consulting services related to the Company's operations as well as guidance and assistance with the Company's contract manufacturers and suppliers. About GameTech Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. Piercy Bowler Taylor & Kern, in Las Vegas, Nevada, expressed substantial doubt about GameTech International, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered reoccurring losses from operations and has been unable to extend the maturity of its debt, or raise additional capital necessary to execute its business plan. The Company's balance sheet at May 1, 2011, showed $40.19 million in total assets, $32.33 million in total liabilities and $7.86 million in total stockholders' equity. GENERAL GROWTH: Court Closes 73 GGP Affiliates' Chapter 11 Cases ---------------------------------------------------------------- Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York is deemed to have entered a final decree closing the Chapter 11 cases, nunc pro tunc to June 30, 2011, of 73 debtor affiliates of GGP, Inc., according to a final list filed with the Court on July 8, 2011. The 73 Reorganized Debtors referred to as "Group 2 Reorganized Debtors" with closed Chapter 11 cases are: Closing Debtor Case No. -------------- -------- 10 CCC Business Trust 09-12457 Apache Mall, LLC 09-12054 Baltimore Center Associates Limited Partnership 09-12006 Bellis Fair Partners 09-11968 Boise Town Square Anchor Acquisition, LLC 09-12072 Boise Towne Plaza L.L.C. 09-12073 Boulevard Associates 09-12074 Capital Mall L.L.C. 09-12462 Chapel Hills Mall L.L.C. 09-12082 Chula Vista Center, LLC 09-12085 Collin Creek Anchor Acquisition, LLC 09-12086 Columbia Mall L.L.C. 09-12089 Cottonwood Mall, LLC 09-12092 Country Hills Plaza, LLC 09-12093 Faneuil Hall Marketplace, LLC 09-12108 Fashion Place, LLC 09-12109 Fashion Show Mall LLC 09-12026 Franklin Park Mall Company, LLC 09-12115 Franklin Park Mall, LLC 09-12114 GGP Ala Moana Holdings L.L.C. 09-12120 GGP Ala Moana L.L.C. 09-12027 GGP Jordan Creek L.L.C. 09-12028 GGP Kapiolani Development L.L.C. 09-12127 GGP-Gateway Mall L.L.C. 09-12467 GGP-Glenbrook L.L.C. 09-12138 GGP-Grandville L.L.C. 09-11971 GGPLP, L.L.C. 09-11982 GGP-Moreno Valley, Inc. 09-12147 GGP-Newgate Mall, LLC 09-12148 GGP-North Point, Inc. 09-12150 GGP-UC L.L.C. 09-12156 Harbor Place Associates Limited Partnership 09-12009 Ho Retail Properties I Limited Partnership 09-11997 Howard Hughes Properties V, LLC 09-12173 Howard Hughes Properties, Limited Partnership 09-12171 Kapiolani Condominium Development, LLC 09-12178 Lakeview Square Limited Partnership 09-12183 Lancaster Trust 09-12473 Lockport L.L.C. 09-11966 North Town Mall, LLC 09-12208 Northgate Mall L.L.C. 09-12209 Park Mall L.L.C. 09-12219 Park Square Limited Partnership 09-12022 Parkview Office Building Limited Partnership 09-12020 PDC Community Centers L.L.C. 09-12220 PDC-Eastridge Mall L.L.C. 09-12221 Pine Ridge Mall L.L.C. 09-12227 Pioneer Office Limited Partnership 09-12228 Pioneer Place Limited Partnership 09-12229 Price-ASG L.L.C. 09-12231 Prince Kuhio Plaza, Inc. 09-12232 Ridgedale Center, LLC 09-12237 Rogue Valley Mall L.L.C. 09-12242 Rouse-Arizona Retail Center Limited Partnership 09-12012 Rouse-Phoenix Corporate Center Limited Partnership 09-12262 Saint Louis Galleria Anchor Acquisition, LLC 09-12267 Sierra Vista Mall, LLC 09-12269 Sikes Senter, LLC 09-12270 Southland Center Holding, LLC 09-12275 Southland Mall, Inc. 09-12276 Southwest Plaza L.L.C. 09-12278 St. Cloud Mall L.L.C. 09-12033 The Burlington Town Center LLC 09-12025 The Village of Cross Keys, LLC 09-12306 Three Rivers Mall L.L.C. 09-12286 TRC Co-Issuer, Inc. 09-11984 Tysons Galleria L.L.C. 09-12297 VCK Business Trust 09-12301 Victoria Ward Entertainment Center L.L.C. 09-12303 Victoria Ward, Limited 09-12304 Vista Ridge Mall, LLC 09-12310 Ward Plaza-Warehouse, LLC 09-12313 White Marsh General Partnership 09-12000 Judge Gropper entered an order on June 24, 2011, closing the Chapter 11 cases of 67 Reorganized Debtors, referred to as "Group 1 Reorganized Debtors." Judge Gropper also ordered the Reorganized Debtors to submit by July 8, 2011, a final list identifying any of the Group 2 Reorganized Debtors whose Chapter 11 were fully administered on or prior to June 30, 2011. In accordance with the June 24 order, the Chapter 11 cases of the Group 2 Reorganized Debtors identified on the Final List are deemed closed, nunc pro tunc to June 30, 2011. The Court will retain jurisdiction as is provided in the Project Debtors' Joint Plan of Reorganization and GGP TopCo's Third Amended Joint Plan of Reorganization. From and after June 30, 2011, the Reorganized Debtors will not be obligated to pay quarterly fees to the U.S. Trustee for Region 2 in accordance with Section 1930(a)(6) of the U.S. Judiciary and Judicial Procedures Code with respect to the Chapter 11 cases of the Group 2 Reorganized Debtors in the Final List. The Chapter 11 case of any Reorganized Debtor that is not a (i) Group 1 Reorganized Debtor or a (ii) Group 2 Reorganized Debtor identified on the Final List will remain open pending further order of the Court, Judge Gropper ruled. Judge Gropper clarified that entry of the final decree is without prejudice to the rights of any party to seek to reopen the cases of Group 2 Reorganized Debtor identified on the Final List for cause. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 protection on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of Dec. 31, 2008. General Growth Properties on Nov. 9, 2010, successfully completed the final steps of its financial restructuring and emerged from Chapter 11. GGP successfully restructured approximately $15 billion of project-level debt Recapitalized with $6.8 billion in new equity capital Paid all creditor claims in full achieved substantial recovery for equity holders. As part of its plan of reorganization, GGP has split itself into two separate and independent publicly traded corporations. GGP shareholders as of the record date of Nov. 1, 2010, received common stock in both companies. The new GGP, which will commence trading Nov. 10 on The New York Stock Exchange under the ticker symbol "GGP," is the second-largest shopping mall owner and operator in the country, with more than 183 regional malls in 43 states. The spin-off company, The Howard Hughes Corporation, consists of GGP's portfolio of master planned communities and other strategic real estate development opportunities. This company will trade under the ticker symbol "HHC" on The New York Stock Exchange. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Appeals Default Interest for NY Comptroller ----------------------------------------------------------- GGP Limited Partnership and its reorganized debtor affiliates took an appeal from Bankruptcy Judge Allan L. Gropper's order granting default interest to the Comptroller of the State of New York as trustee of the Common Retirement Fund, entered on June 23, 2011. In an accompanying certification, Marcia L. Goldstein, Esq., at Weil, Gotshal & Manges LLP, in New York, states that the judgment involves a question of law as to which there is no controlling decision of the U.S. Court of Appeals for the Second Circuit or the U.S. Supreme Court, or involves a matter of public importance. Specifically, she notes, the judgment involves the question of whether Sections 1123(d) and 1124 of the Bankruptcy Code require a debtor to pay postpetition default interest in order to cure and reinstate a loan to a secured lender and leave the secured lender unimpaired under a plan of reorganization, where the only default triggering the payment of default interest is the commencement of the Debtor's Chapter 11 case. Ms. Goldstein further notes that the matter is of public importance because it determines the effect of a Chapter 11 filing on contractual rights to default rate interest, a matter that will have ramifications for many companies and their creditors as they consider the costs and benefits of Chapter 11 as a financial restructuring mechanism. The judgment also involves a question of law requiring resolution of conflicting decisions, according to Ms. Goldstein. She cites two prior bankruptcy court decisions in this district holding that claims cured under Section 1124(2)(A) of the Bankruptcy Code were not required to pay postpetition interest at the default rate, namely: Levy v. Forest Hills Assocs, (In re Forest Hills Assocs), 40 B.R. 410, 415 (Bankr. S.D.N.Y. 1984); and United States Trust Company of New York v. LTV Steel Co. (In re Chateaguay Corp.), 150 B.R. 529, 542-43 (Bankr. S.D.N.Y. 1993). In contrast, the U.S. District Court for the Southern District of New York reached an opposite conclusion finding that Section 1124(2) "does not provide a statutory basis nullification of a contract right to default rate In re 139-141 Owners Corp., 313 B.R. 364 (S.D.N.Y. 2004), she adds. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 protection on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of Dec. 31, 2008. General Growth Properties on Nov. 9, 2010, successfully completed the final steps of its financial restructuring and emerged from Chapter 11. GGP successfully restructured approximately $15 billion of project-level debt Recapitalized with $6.8 billion in new equity capital Paid all creditor claims in full achieved substantial recovery for equity holders. As part of its plan of reorganization, GGP has split itself into two separate and independent publicly traded corporations. GGP shareholders as of the record date of Nov. 1, 2010, received common stock in both companies. The new GGP, which will commence trading Nov. 10 on The New York Stock Exchange under the ticker symbol "GGP," is the second-largest shopping mall owner and operator in the country, with more than 183 regional malls in 43 states. The spin-off company, The Howard Hughes Corporation, consists of GGP's portfolio of master planned communities and other strategic real estate development opportunities. This company will trade under the ticker symbol "HHC" on The New York Stock Exchange. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENTA INC: Five Directors Elected at Annual Meeting --------------------------------------------------- Genta Incorporated held its 2011 Annual Meeting of Stockholders on July 8, 2011. The stockholders elected five nominees to Board of Directors, namely: (1) Raymond P. Warrell, Jr. M.D., (2) Marvin E. Jaffe, M.D, (3) Christopher P. Parios, (4) Ana I. Stancic and (5) Daniel D. Von Hoff, M.D. The stockholders voted to ratify the appointment of EisnerAmper LLP as the Company's independent registered public accounting firm for the year ended Dec. 31, 2011. The number of outstanding shares of Genta Incorporated common stock par value $0.001 as of July 8, 2011, is 209,189,832. About Genta Incorporated Berkeley Heights, New Jersey-based Genta Incorporated (OTC BB: GNTA) -- http://www.genta.com/-- is a biopharmaceutical company engaged in pharmaceutical (drug) research and development. The Company is dedicated to the identification, development and commercialization of novel drugs for the treatment of cancer and related diseases. EisnerAmper LLP, in Edison, New Jersey, expressed substantial doubt about Genta's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations, negative cash flows from operations and current maturities of convertible notes payable. Amper, Politziner & Mattia, LLP, in Edison, New Jersey, did not include a going concern explanatory paragraph in its audit report on the Company's financial statements for fiscal 2009. The Company reported a net loss of $167.3 million on $257,000 of sales for 2010, compared with a net loss of $86.3 million on $218,000 for 2009. The Company's balance sheet at March 31, 2011, showed $10.82 million in total assets, $14.13 million in total liabilities and a $3.31 million total stockholders' deficit. GSC GROUP: Wins Formal Approval to Sell to Black Diamond -------------------------------------------------------- Black Diamond Capital Management, L.L.C. has secured court approval to complete the acquisition of substantially all of the investment management business and related assets of GSC Group, Inc. and its affiliates. Upon a closing of the acquisition, Black Diamond and affiliated entities will assume active control of GSC's control distressed/private equity, mezzanine, ABS and CLO funds, totaling approximately $7 billion of assets under management. The sale follows a competitive auction process held in accordance with Section 363 of the Bankruptcy Code in October 2010, for which Black Diamond secured final approval at a hearing in the U.S. Bankruptcy Court for the Southern District of New York held on July 7, 2011. With the closing of the deal, which is expected within 30 days, Black Diamond will manage approximately $13.0 billion of assets across its control distressed/private equity, mezzanine hedge fund and CLO vehicles. Following the closing, Black Diamond intends to hire approximately 15 GSC employees to join the Black Diamond team. The acquisition also expands Black Diamond's office network beyond its existing U.S. base into the United Kingdom. Commenting on the completion of the deal, Stephen Deckoff, Managing Principal of Black Diamond said, "I am extremely pleased that following a long and competitive process, Black Diamond has secured approval to complete the acquisition of GSC's assets, and we look forward to working on behalf of a prestigious group of GSC investors representing significant public and corporate pension plans, insurance companies and other financial institutions, endowments, foundations, and family offices globally. Importantly, we believe the transaction will benefit Black Diamond and its investors by enhancing investment and back office resources, adding deal sourcing opportunities and expanding capabilities in Europe, amongst other benefits." Continuing, Mr. Deckoff said, "I am also very pleased that Black Diamond will be joined by a number of GSC's employees, both here in the United States and in London. Their investment experience, industry know- how, and geographic reach will further strengthen the Black Diamond team and I look forward to working with them." * * * Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Chapter 11 trustee for GSC Group received formal authority to sell the business to Black Diamond after two days of hearings last week. According to the report, U.S. Bankruptcy Judge Arthur Gonzalez had ruled earlier last week that the sale proposed by the trustee was preferable to the Chapter 11 plan proposed by a minority group of lenders. The judge saw the sale as the "only plausible exit strategy." Mr. Rochelle notes that the price being paid by the lenders' agent will fully pay $256.8 million in secured claims, with $18.6 million cash left over. Black Diamond as agent will buy most of the assets with a $224 million credit bid, a $6.7 million note, $5 million cash, and debt assumption. With the sale completed, the trustee previously said he would propose a liquidating Chapter 11 plan with $4.6 million for unsecured creditors. Last week Judge Gonzalez also authorized the trustee to pay a $1 million bonus when the sale is completed to Peter R. Frank, GSC's president and senior managing director. The bonus had been opposed by the U.S. Trustee. About Black Diamond Black Diamond Capital Management is a leading alternative asset management firm with over $6 billion in assets under management. With complementary control distressed/private equity, hedge fund and CLO vehicles, Black Diamond invests in performing, stressed and distressed securities. Founded in 1995, Black Diamond has offices in Greenwich, CT and Lake Forest, IL. About GSC Group Florham Park, New Jersey-based GSC Group, Inc. -- http://www.gsc.com/-- is a private equity firm specializing in mezzanine and fund of fund investments. Originally named Greenwich Street Capital Partners Inc. when it was a subsidiary of Travelers Group Inc., GSC became independent in 1998 and at one time had $28 billion of assets under management. Market reverses, termination of some funds, and withdrawal of customers' investments reduced funds under management at the time of bankruptcy to $8.4 billion. GSC Group filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-14653) on Aug. 31, 2010. Michael B. Solow, Esq., at Kaye Scholer LLP, serves as the Debtor's bankruptcy counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice and claims agent. Capstone Advisory Group, LLC, is the Debtor's financial advisor. The Debtor estimated its assets at $1 million to $10 million and debts at $100 million to $500 million as of the Chapter 11 filing. GULF LANDINGS: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Gulf Landings Development Corporation 1170 Gulf Boulevard, #201 Clearwater Beach, FL 33767 Bankruptcy Case No.: 11-13101 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Chad S. Bowen, Esq. JENNIS & BOWEN, P.L. 400 N. Ashley Drive, Suite 2540 Tampa, FL 33602 Tel: (813) 229-1700 Fax: (813) 229-1707 E-mail: ecf@jennisbowen.com Scheduled Assets: $7,325,100 Scheduled Debts: $7,341,750 A list of the Company's 11 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-13101.pdf The petition was signed by Joseph R. Borda, president. Affiliates filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Seaview Place Developers, Inc. 11-05126 3/22/11 Harbor Colony Development, Inc. 11-13103 7/08/11 Scheduled Assets: $1,085,100 Scheduled Debts: $6,665,275 See http://bankrupt.com/misc/flmb11-13103.pdf HARRY & DAVID: Hearing on Exclusivity Extensions Set for July 26 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will convene a hearing on July 26, 2011, at 10:30 a.m., to consider Harry & David Holdings, Inc.'s motion to extend their exclusive periods to file and solicit acceptances for the proposed chapter 11 plan. Objections, if any, are due July 19, at 4:00 p.m. The Debtors are asking that the Court extend their exclusive right to file and solicit acceptances until Sept. 30, and Nov. 30, respectively. The Court entered an order approving the disclosure statement explaining the proposed Chapter 11 plan on June 24. As reported in the Troubled Company Reporter on July 6, 2011, the Debtor modified the plan to gain support from the official unsecured creditors' committee. The modified plan provides for these terms: * Unsecured creditors are to receive 10% in total, with 40% of that coming in 2012 and 60% in 2013. * Pension Benefit Guaranty Corp. and holders of $58.2 million in senior floating-rate notes and $148.2 million in senior fixed- rate notes are in a class together. In return for their claims, they are to receive 146,000 new common shares and the right to purchase another 733,000 shares, or about 74.9%, in a $55 million rights offering. The recovery for noteholders is estimated between 2% and 17.4% for participants in the rights offering. For those not participating, the recovery is 4.2% to 10%, according to the disclosure statement. * The proceeds of the $55 million rights offering will be used to repay the $55 million in second-lien financing for the Chapter 11 case. Noteholders are backstopping the rights offering. As a fee, they will receive 50,000 shares. * Existing lenders providing $100 million in first-lien financing for the bankruptcy case will continue the loan when the company emerges from Chapter 11. The original plan was agreed to before bankruptcy with holders of 81% of the senior notes, including Wasserstein & Co., which also owns 63% of the stock. Wells Fargo Bank is indenture trustee for the noteholders. 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. David G. Heiman, Esq., Brad B. Erens, Esq., and Timothy W. Hoffman, Esq., at Jones Day, are the Debtors' lead counsel. Daniel J. DeFranceschi, Esq., Paul Noble Heath, Esq., and Zachary Shapiro, Esq., at Richards Layton & Finger, serve as the Debtors' local 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. 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. On April 7, 2011, the U.S. Trustee appointed an official committee of unsecured creditors in the Debtors' cases. HB LOGISTICS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: HB Logistics, LLC dba McGriff Transportation, Inc. 539 County Road 1339 Cullman, AL 35058 Bankruptcy Case No.: 11-82362 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court Northern District of Alabama (Decatur) Debtor's Counsel: Stuart M. Maples, Esq. MAPLES & RAY, PC 401 Holmes Avenue, Suite H Huntsville, Al 35801 Tel: (256) 489-9779 Fax: (256) 489-9720 E-mail: smaples@maplesandray.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/alnb11-82362.pdf The petition was signed by Clayton T. Halla, CEO and president. HEARTLAND MEMORIAL: District Court Affirms Dismissal of Lawsuit --------------------------------------------------------------- District Judge Jon E. DeGuilio affirmed a bankruptcy court order dismissing the lawsuit, Heartland Memorial Hospital LLC, v. Vijay K. Gupta MD, et al., Case No. 3:10-CV-396 (N.D. Ind.). Judge DeGuilio denied the appeal filed by Plan Trustee, David Abrams, from the dismissal order. The adversary proceeding implicated 54 defendants and sought a large monetary recovery, on account of allegedly fraudulent transfers. The defendants include Accelerated Health Systems, Harold E. Collins, Collins & Collins, Cheng H. Lin, Theodore Christou, Phillip Guastella, Brian French, Steven French, George Sreckovic, James Gianfrancisco, Laura Smitley, Ray Halum and Vijay K. Gupta. On May 20, 2010, the Bankruptcy Court issued an order dismissing the adversary proceeding for failure to prosecute. A copy of the District Court's July 6, 2011 Opinion and Order is available at http://is.gd/6LZxPxfrom Leagle.com. Heartland Memorial Hospital filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of Indiana. On Nov. 19, 2008, the Bankruptcy Court confirmed a pla n of liquidation for Heartland. David Abrams was appointed as Plan Trustee. HINGHAM CAMPUS: Fights Sovereign Bank's Request for Mediation ------------------------------------------------------------- Dow Jones' DBR Small Cap reports that Linden Ponds Inc. is fighting mediation proposed by secured creditor Sovereign Bank on the grounds that it would force the Massachusetts retirement- community operator to start its restructuring from scratch. Prepetition, the Debtors reached an agreement where holders of 40% of the bonds have pledged to support and vote in favor of a Joint Plan of Reorganization of the Debtors. The Debtors add that the three impaired classes under the Plan have indicated that they will accept the Plan. Redwood Capital Investors LLC, will retain its ownership interest of the Debtors through the Plan. The Debtors have sought a joint hearing on Sept. 15 and Sept. 16 for approval of the disclosure statement and confirmation of the reorganization plan. Redwood is providing $6 million in a postpetition revolving credit facility for Hingham Campus' Chapter 11 case. The DIP financing will mature on Nov. 8, 2011. The DIP financing requires a joint hearing on the Disclosure Statement and the Plan within 120 days of the Petition Date. About Hingham Campus Linden Ponds Inc. operates a 108-acre continuing care retirement community located at 300 Linden Ponds Way in Hingham, Massachusetts. The facility has 988 independent living units (with an occupancy rate of 87.9%) and 132 skilled nursing beds (68% occupancy rate). Linden Ponds leases the facility and the property upon which it is built from Hingham Campus LLC. Hingham is the owner of the facility and owns the fee simple interest in the property upon which the facility is built. Senior Living Retirement Communities, LLC, formerly known as Erickson Retirement Communities, LLC, owns 100% of the membership interests in Hingham. Hingham Campus and Linden Ponds filed a pre-negotiated Chapter 11 petition (Bankr. N.D. Tex. Lead Case No. 11-33912) in Dallas on June 15, 2011. Hingham Campus estimated assets and debts of $100 million to $500 million. Debt includes $156.4 million owing on bonds issued by the Massachusetts Development Finance Agency, with Wells Fargo Bank, National Association, as the bond trustee. Erickson Retirement Communities sought bankruptcy protection (Bankr. N.D. Tex. Case No. 09-37010) on Oct. 19, 2009. Erickson, the owner of 20 senior living facilities, won approval of its reorganization plan in April 2010. The Erickson plan provided for a sale to Redwood Capital, the highest bidder at the auction in December 2009. Redwood won the auction with an all-cash bid of $365 million. Attorneys at DLA Piper LLP (US) represent Hingham in the Chapter 11 case. Attorneys at McGuire, Craddock & Strother, P.C., and Whiteford, Taylor And Preston, L.L.P., represent Linden Ponds. HOLLOW CAFE: Amesbury Restaurant to File Ch. 11 to Stop Sale ------------------------------------------------------------ Dave Rogers, staff writer at Newbury Port News, reports that the Hollow Cafe off Main Street in Amesbury, Massachusetts, and an adjacent condominium is scheduled to be sold to the high bidder this week. According to the report, but restaurant owner Patricia Carey said last week she is hoping to stop Thursday's auction cold by filing for Chapter 11 bankruptcy, which would offer protection from her creditor, Greg Jardis of Jardis Realty Corporation of Amesbury. HYMAN COMPANIES: Court Rejects Bid for Attorney's Fees ------------------------------------------------------ Bankruptcy Judge Richard E. Fehling dismissed the lawsuit filed by Hyman Companies, Inc., seeking payment of attorneys' fees from Four Winds Casino Resort and Pokagon Gaming Authority. The dispute arose from the Debtor's lease of space for the sale of its products with Four Winds Casino Resort, Inc., and Pokagon Gaming Authority, who own and operate a casino located in New Buffalo, Michigan. The lease between the Debtor and Four Winds was executed in May 2007. Pre-bankruptcy, the Debtor assigned the lease to an affiliated company, Landau Casinos, Inc., as part of some non-bankruptcy related corporate reorganization. In January 2010, the Court barred Four Winds from proceeding with any steps to terminate the lease at that time. The Debtor then sued Four Winds for attorneys' fees based solely upon the language of Paragraph 24 of the lease that was the subject of a Jan. 13, 2010 decision. Four Winds denies the right of the Debtor or Landau to recover attorneys' fees pursuant to the lease and has demanded that the Debtor and Landau determine this dispute through the arbitration clause in Paragraph 36.B, of the lease. Four Winds moved to dismiss the adversary proceeding because the matter must be determined solely through the arbitration provisions of the lease. "Reluctantly, I agree," Judge Fehling said. According to Judge Fehling, the Debtor's argument that this is clearly a statutory effort to recover property of the estate is incorrect. At the base, this is a matter of interpretation of the lease pursuant to the laws of the Pokagon Band of the Potawatomi Indians, not pursuant to federal law. "[The] Debtor's argument that the lease is clear and unequivocal in its language and Four Winds is mistaken at best or acting in bad faith at worst may be correct, but Debtor is asking me to interpret what the lease says and means, which I cannot do," Judge Fehling said. "[The] Debtor's argument that it is pursuing, purely and simply, collection of property of the estate is incorrect because the determination that the attorneys' fees constitute property of the estate rests upon interpretation of the lease under tribal law," the judge added. "[The] Debtor's argument that it has an absolute right to attorneys' fees under the terms of Paragraph 24 may or may not be correct, but I cannot get to that decision without ignoring the arbitration provision in the lease." The lawsuit is Hyman Companies, Inc., v. Four Winds Casino Resort and Pokagon Gaming Authority, Adv. Proc. No. 11-2037 (Bankr. E.D. Pa.). A copy of Judge Fehling's July 1, 2011 decision is available at http://is.gd/unt2VBfrom Leagle.com. About Hyman Cos. Allentown, Pennsylvania-based The Hyman Companies, Inc. -- aka Landau, The Landau Collection, Boccelli, Landau Costume Jewelry, and Bijou Bijou -- sells high-end costume jewelry and other merchandise from shopping center, mall, and hotel stores and kiosks throughout the country. Hyman Companies filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 09-20523) on March 3, 2009. Edmond M. George, Esq., at Obermayer Rebmann Maxwell & Hippel, LLP, assists the Company in its restructuring efforts. The Company estimated $1 million to $10 million in both assets and debts. JCK HOTELS: To Tap Gordon & Rees as General Litigation Counsel -------------------------------------------------------------- JCK Hotels, LLC, fka Mira Mesa Hotels, LLC, seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ the law firm Gordon & Rees LLP as general bankruptcy and litigation counsel. It is necessary for the Debtor to employ G&R to undertake such actions as may be appropriate or necessary in connection with the preservation and realization of value of the chapter 11 estate and the reorganization of Debtor. The firm's rates are: Personnel Rates --------- ----- William M. Rathbone, Partner $425 Jeffrey D. Cawrey, Partner $425 Daniel C. Silva, Associate $250 JCK Hotels, LLC, fka Mira Mesa Hotels, LLC, operates the Holiday Inn Express Mira Mesa Hotel and the Comfort Suites Mira Mesa Hotel in San Diego, California. The Hotels are operated under licensing and franchise agreements with Holiday Inn Express and Comfort Suites. JCK Hotels filed for Chapter 11 bankruptcy (Bankr. S.D. Calif. Case No. 11-09428) on June 3, 2011. Judge Louise DeCarl Adler presides over the case. William M. Rathbone, Esq., at Gordon & Rees LLP, serves as bankruptcy counsel. While no formal appraisal has been done recently, the Debtor believes the fair market value of both Hotels exceeds $18 million. The petition was signed by Charles Jung, managing member. JCK HOTELS: To Tap Dae Hyun & Associates as Financial Advisors -------------------------------------------------------------- JCK Hotels, LLC, fka Mira Mesa Hotels, LLC, seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ Dae Hyun Kim, CPA & Associates as financial advisor. The firm has agreed to, among other things: a) assist in the preparation of monthly operating for Debtor; b) provide corporate and partnership tax operations; and c) advise the Debtor regarding financial and business matter. The firm's Sook Hyun Cho will charge the Debtor's estates $1,000 per month. The charges for the facsimiles will be $1 per page for outgoing facsimiles and photocopies rendered on behalf of Debtor will be charged at $.20 per page. About JCK Hotels JCK Hotels, LLC, fka Mira Mesa Hotels, LLC, operates the Holiday Inn Express Mira Mesa Hotel and the Comfort Suites Mira Mesa Hotel in San Diego, California. The Hotels are operated under licensing and franchise agreements with Holiday Inn Express and Comfort Suites. JCK Hotels filed for Chapter 11 bankruptcy (Bankr. S.D. Calif. Case No. 11-09428) on June 3, 2011. Judge Louise DeCarl Adler presides over the case. William M. Rathbone, Esq., at Gordon & Rees LLP, serves as bankruptcy counsel. While no formal appraisal has been done recently, the Debtor believes the fair market value of both Hotels exceeds $18 million. The petition was signed by Charles Jung, managing member. KMC REAL ESTATE: Hearing on Case Dismissal Plea Today ----------------------------------------------------- The Bankruptcy Court for the Southern District of Indiana will convene a continued hearing today, July 13, 2011, at 10:00 a.m., to consider the motion for relief from stay or alternatively motion to dismiss the Chapter 11 case of KMC Real Estate Investors, LLC, for lack of good faith filing or alternatively motion for abstention. On May 6, 2011, RL BB Financial, LLC, a secured creditor of KMCREI, has asked for the dismissal of the case for lack of good faith filing. RL BB Financial explained that the Debtor has failed either file a plan of reorganization that has a reasonable possibility of being confirmed within a reasonable time or commence monthly payments of nondefault contract rate interest to lender within the 90-day period after the filing of its bankruptcy petition. The motion was filed by James P. Moloy on behalf of creditor RL BB Financial, LLC. In a separate filing, the Debtor argued that RLBB failed to establish "cause" which would warrant a dismissal of this proceeding. RLBB has not shown any instances of bad faith on the part of KMCREI and pursuant to the notable points above, one would be hard pressed to find lack of good faith associated with this bankruptcy filing. RLBB asserted that it is entitled to relief from the automatic stay because the property is not necessary for KMCREI to effectively reorganize. However, if KMCREI was forced to surrender the property to RLBB, the hospital's operations would suffer tremendously. About KMC Real Estate Investors LLC Clarksville, Indiana-based KMC Real Estate Investors LLC owns certain real property located in Clark County, Indiana, commonly known as 4601 Medical Plaza Way, Clarksville, Indiana. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No. 11-90930) on April 1, 2011. Gary Lynn Hostetler, Esq., Courtney Elaine Chilcote, Esq., and Jeffrey A. Hokanson, Esq., at Hostetler & Kowalik, P.C., serve as the Debtor's bankruptcy counsel. The Debtor disclosed it has undetermined assets and $24,810,090 in liabilities as of the Chapter 11 filing. Affiliate Kentuckiana Medical Center, LLC, previously sought Chapter 11 protection (Bankr. S.D. Ind. Case No. 10-93039) on Sept. 9, 2010. LA JOLLA: Has 34.62 Million Outstanding Common Shares ----------------------------------------------------- La Jolla Pharmaceutical Company reported that since June 24, 2011, it had converted approximately 34 shares of Series C-1 1 Convertible Preferred Stock into a combined total of 5,658,498 shares of common stock. Following these conversions, the Company had a total of 34,621,819 shares of common stock issued and outstanding as of July 7, 2011. About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. The Company's balance sheet at March 31, 2011, showed $6.74 million in total assets, $12.58 million in total liabilities, all current, $5.57 million in Series C-1 1 redeemable convertible preferred stock, and a $11.41 million total stockholders' deficit. The Company reported a net loss of $3.76 million on $0 of revenue from collaboration agreement for the year ended Dec. 31, 2010, compared with a net loss of $8.63 million on $8.12 million of revenue from collaboration agreement during the prior year. As reported by the TCR on April 18, 2011, BDO USA, LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, an accumulated deficit of $428 million as of Dec. 31, 2010 and has no current source of revenues. LAKE PLEASANT: Court OKs Zwillinger Greek for Sale of Assets ------------------------------------------------------------ The Hon. Redfield T. Baum of the U.S. Bankruptcy Court for the District of Arizona authorized Lake Pleasant Group LLP and DLGC II LLC to employ Zwillinger Greek Zwillinger & Knecht PC as special counsel for the Debtors to provide legal services in connection with the sale of the Debtors' real property and other general matters. Lake Pleasant owns 244 acres of raw land located near State Route 74 and Old Lake Pleasant Road in Peoria, Arizona. DLGC owns 220 acres of raw land located near State Route 74 and Old Lake Pleasant Road in Peoria, Arizona. The firm's fees are based on their standard hourly billing rates, which are $175 to $405 per hour for attorneys and $80 per hour for paralegals. The Debtors assure the Court that the firm is "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Lake Pleasant Phoenix, Arizona-based Lake Pleasant Group, LLP, filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-10170) on April 13, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate DLGC II, LLC simultaneously filed for Chapter 11 (Bankr. D. Ariz. Case No. 11-10174). LEVELLAND/HOCKLEY: Court Approves Haynes as Committee's Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Texas authorized the Official Committee of Unsecured Creditors of the Chapter 11 cases of Levelland/Hockley County Ethanol LLC to retain Haynes and Boone, LLP, as counsel, nunc pro tunc May 11, 2011. As the Committee's counsel, Haynes and Boone will, among other things: (a) advise the Committee with respect to its rights, powers, and duties in this case; (b) assist and advise the Committee in its consultations with the Debtor regarding the administration of this case; (c) assist the Committee in analyzing the claims and interests of the Debtor's stakeholders and in negotiating with such stakeholders; (d) assist with the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtor and of the operation of its business; and (e) assist the Committee in its analysis of, and negotiations with, the Debtor or any third party concerning matters related to, among other things, the terms of a Chapter 11 plan or plans for the Debtor. Haynes and Boone will be paid based on the rates of its professionals: Professionals Hourly Rates ------------- ------------ Stephen M. Pezanosky, Partner $695 Mark Elmore, Associate $490 Erik K. Martin, Associate $375 Jordan Bailey, Associate $280 Dian Gwinnup, Paralegal $190 Haynes and Boone's hourly rates currently range from $190 to $990 for attorneys, and from $75 to $570 for professional consultants, paralegals, and case clerk staff. Haynes and Boone has agreed to reduce Mr. Pezanosky's hourly rate to $595.00 per hour. The foregoing reduction of Mr. Pezanosky's hourly rate is an accommodation to the Committee and parties-in- interest in this case and is not applicable to any other engagement or bankruptcy case. Stephen M. Pezanosky, Esq., a partner at Haynes and Boone, LLP, assured the Court that the firm is a "disinterested person" as that term defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Stephen M. Pezanosky Mark Elmore Erik K. Martin HAYNES AND BOONE, LLP 201 Main Street, Suite 2200 Fort Worth, TX 76102 Tel: (817) 347-6600 Fax: (817) 347-6500 E-mail: stephen.pezanosky@haynesboone.com mark.elmore@haynesboone.com erik.martin@haynesboone.com Levelland/Hockley County Ethanol LLC is a Texas limited liability company that owns and operates a 40 million gallon per annum Ethanol production plant located in Levelland, Hockley county, Texas. The LLC has over 100 members many of whom are local farmers, business people and civic leaders. A recent appraisal of its facility values its assets, with the Plant under full operation, at over $51.5 million. Levelland Ethanol filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 11-50162) on April 27, 2011, represented by lawyers at Block & Garden, LLP, in Dallas. In its petition, the Debtor estimated $50 million to $100 million in assets and $10 million to $50 million in debts. William T. Neary, the U.S. Trustee for Region 6, appointed nine members to the official committee of unsecured creditors in the Chapter 11 cases of Levelland/Hockley County Ethanol LLC. LIFECARE HOLDINGS: Debt Trials Remain After Refinancing ------------------------------------------------------- Dow Jones' DBR Small Cap reports that LifeCare Holdings Inc. bought itself some time with a loan refinancing earlier this year and a subsequent acquisition that will help improve its cash position in the near term, but challenges remain to ensure the company's high debt level is tackled over the next 18 months, analysts said. About LifeCare Holdings Plano, Tex.-based LifeCare Holdings, Inc. -- http://www.lifecare-hospitals.com/-- operates 19 hospitals located in nine states, consisting of eight "hospital within a hospital" facilities (27% of beds) and 11 freestanding facilities (73% of beds). Through these 19 long-term acute care hospitals, the Company operates a total of 1,057 licensed beds and employ approximately 3,200 people, the majority of whom are registered or licensed nurses and respiratory therapists. Additionally, the Company holds a 50% investment in a joint venture for a 51-bed LTAC hospital located in Muskegon, Michigan. The Company's balance sheet at March 31, 2011, showed $454.17 million in total assets, $469.25 million in total liabilities, and a $15.08 million stockholders' deficit. * * * LifeCare Holdings carries "Caa1" corporate family and probability of default ratings, with negative outlook, from Moody's Investors Service and a 'CCC-' corporate credit rating, with negative outlook from Standard & Poor's Ratings Services. In November 2010, Standard & Poor's Ratings lowered its corporate credit rating on LifeCare Holdings to 'CCC-' from 'CCC+'. "The downgrade reflects the imminent difficulty the company may have in meeting its bank covenant requirements and the risk of it successfully refinancing significant debt maturing in 2011 and 2012," said Standard & Poor's credit analyst David Peknay. The likelihood of a debt covenant violation is heightened by the company's lack of appreciable operating improvement coupled with a large upcoming tightening of is debt covenant in the first quarter of 2011. Additional equity by the company's financial sponsor may be necessary to avoid a covenant violation. Accordingly, S&P believes the chances of bankruptcy have increased. As reported by the TCR on May 26, 2011, Standard & Poor's Rating Services affirmed its 'CCC-' corporate credit rating and its senior subordinated debt rating on Plano, Texas-based LifeCare Holdings Inc. "The low-speculative-grade rating on LifeCare reflects its narrow focus in a competitive business heavily reliant on uncertain Medicare reimbursement," said Standard & Poor's credit analyst David Peknay, "and its highly leveraged financial risk profile highlighted by very weak cash flow protection measures, slim liquidity, and very high debt level." LOS ANGELES DODGERS: Seeks Nod for Dewey & LeBoeuf as Attorneys --------------------------------------------------------------- Los Angeles Dodgers LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Dewey & LeBoeuf LLP as their attorney to enable the Debtors to execute their duties as debtors and debtors in possession, and effect their restructure efforts. A hearing is set for July 20, 2011, at 10:00 a.m., to consider the Debtors' request. Objections, if any, are due July 13, 2011, at 4:00 p.m. The hourly rates of the firm's personnel are: Partners $700-$1,200 Counsel $700-$835 Associates $385-$650 Paraprofessionals $200-$295 The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About the Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. LOS ANGELES DODGERS: Asks for OK for Epiq as Claims Agent --------------------------------------------------------- Los Angeles Dodgers LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Epiq Bankruptcy Solutions LLC as official claims, noticing, and balloting agent. A hearing is set for July 20, 2011, at 10:00 a.m., to consider the Debtors' request. Objections, if any, are due July 13, 2011, at 4:00 p.m. According to the Debtors, the appointment of the firm will expedite the distribution of notices and relieve the clerk's office of the administrative burden of processing the notices. The Debtors say that the proposed rates to be charge by the firm are reasonable and appropriate for services of this nature. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About the Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. LOS ANGELES DODGERS: Spokeswoman Says MLB Aware of Highbridge Fee ----------------------------------------------------------------- Eric Morath, writing for Dow Jones' Daily Bankruptcy Review, reports that Major League Baseball said the hedge fund keeping the Los Angeles Dodgers afloat while in bankruptcy has collected a surreptitious $5.25 million fee that the lender and baseball team's owner have intentionally withheld from the court. According to the report, the league is demanding the right to question Highbridge Principal Strategies about the alleged fees connected to the $150 million loan, but the unit of J.P. Morgan Chase & Co. has declined to hand over paperwork or make an official available for a deposition, court papers said. DBR says a Dodgers spokeswoman said in a statement MLB "has been fully aware of the fee and the guarantee since the hearing on the first day of the Chapter 11 process." She said the league made previously made reference to the fee it called "undisclosed" in court papers filed on July 6. DBR says Highbridge didn't respond to requests for comment Monday. About the Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. LOUIS JONES: $24,856 SteelFab Claim Is Unsecured ------------------------------------------------ At the behest of Louis Jones Enterprises, Inc., Bankruptcy Judge Jack B. Schmetterer held that the security asserted for Claim Number 15 of SteelFab, Inc. is valued at zero and SteelFab's claim will be treated in this bankruptcy case as a general unsecured claim. On June 14, 2010, SteelFab filed its proof of claim asserting a secured claim of $24,856. A copy of the Court's July 7, 2011 Findings of Fact and Conclusions of Law is available at http://is.gd/DYgulGfrom Leagle.com. The Debtor acted as the general contractor for Jones Lang LaSalle on a project located in Crestwood, Illinois owned by Bank of America. SteelFab and the Debtor entered into a contract whereby SteelFab would supply labor and materials for the structural steel for the Crestwood Project. Pursuant to the contract, SteelFab was required to execute and deliver waivers of mechanics' liens to the Debtor before the Debtor issued payment to SteelFab. Louis Jones Enterprises, Inc., provides construction management and architecture and engineering consulting services in and around the Chicago metropolitan area. It sought chapter 11 protection (Bankr. N.D. Ill. Case No. 10-11375) on Mar. 16, 2010. A copy of the Debtor's chapter 11 petition is available at http://bankrupt.com/misc/ilnb10-11375.pdfat no charge. The Debtor filed a chapter 11 plan of liquidation on Dec. 17, 2010, a modified plan on Jan. 10, 2011, and a disclosure statement, but provides no estimate of any distribution to unsecured creditors. MILLENNIUM GLOBAL: BCP Securities Object to Provisional Relief -------------------------------------------------------------- BCP Securities, LLC, objects to the request for provisional relief pursuant to 11 U.S.C. Section 1519(a) and permanent relief pursuant to 11 U.S.C. Section 1521 filed by Michael W. Morrison, Richard Heis and Charles Thresh, the court-appointed joint liquidators and foreign representatives for Millennium Global Emerging Credit Master Fund Limited and Millennium Global Emerging Credit Fund Limited in insolvency proceedings pending before the Supreme Court of Bermuda. BCP Securities said the Foreign Representatives are seeking to bypass the Chapter 15 recognition procedures required under the U.S. Bankruptcy Code and request that the Court grant relief prematurely. The Foreign Representatives are seeking discovery; they have asked the Court for an extension of time to commence litigation. The Foreign Representatives have issued summonses. Answers are due July 20. The Court will hold a hearing on July 27. BCP Securities said the Foreign Representatives' move for discovery is beyond that which is envisioned in the 11 U.S.C. Section 1519 as it applies 1521(a). The Foreign Representatives, BCP Securities argued, have not shown an urgent need for discovery during the provisional period prior to the hearing on recognition or for an extension of time to commence actions prior to the hearing on recognition. According to BCP Securities, the funds' liquidation proceedings were commenced almost three years ago when the funds' directors filed wind-up petitions with The Supreme Court of Bermuda, Commercial Court. BCP Securities argued that under the guise of protecting creditors' interests, the Foreign Representatives improperly seek to have the U.S. Bankruptcy Court analyze and determine recognition of foreign liquidation proceedings of the Debtors despite the fact that the Debtors' business operations occurred in jurisdictions outside of Bermuda, including primarily in the United Kingdom (Guernsey) and the United States. Attorneys for BCP Securities, LLC, are: Marc D. Powers, Esq. Oren J. Warshavsky, Esq. Natacha Carbajal, Esq. BAKER & HOSTETLER LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 E-mail: mpowers@bakerlaw.com owarshavsky@bakerlaw.com ncarbajal@bakerlaw.com About Millennium Global Funds Millennium Global Emerging Credit Fund Limited and Millennium Global Emerging Credit Master Fund Limited filed petitions under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case Nos. 11-13171 and 11-13172) on June 30, 2011. The two Millennium entities were a pair of Bermuda-based funds created to invest in sovereign and corporate debt instruments. They were once affiliated with U.K. investment manager Millennium Global Investments Ltd. The two Funds were ill-equipped to survive the financial downturn of late 2008. They went into liquidation in Bermuda in October 2008 following default with their prime brokers. Michael W. Morrison, Charles Thresh and Richard Heis at KPMG Advisory Ltd. have been appointed as liquidators and foreign representatives of the Millennium funds in proceedings pending before the Supreme Court of Bermuda, Commercial Court. Judge Allan L. Gropper presides over the Chapter 15 cases. Susheel Kirpalani, Esq., at Quinn Emanuel Urquhart & Sullivan LLP, serves as counsel to the Foreign Representatives. The Foreign Representatives estimated the assets of Millennium Global Emerging Credit Master Fund between US$10 million and US$50 million, and its debts between US$100 million and US$500 million. Millennium Global Emerging Credit Fund's assets and debts are estimated to be between US$10 million to US$50 million. MIRAMAR REAL ESTATE: Taps Agosto and FVP as External Auditors ------------------------------------------------------------- Miramar Real Estate Management Inc. seeks authority from the United States Bankruptcy Court for the District of Puerto Rico to employ FPV & Galindez, CPAs, PSC, and its principal, Marcos A. Claudio Agosto, as its external auditors and restructuring advisors. The Debtor asserts that services are required in its reorganization process in the areas of Plan Development, Liquidation Analysis, Claims Administration, Feasibility, Negotiations, Investment, Financing and other matters. Miramar wishes to retain Mr. Agosto and FPV as its external auditors and insolvency and restructuring advisors, in the exercise of their powers and duties, on all financial matters pertaining to the reorganization in its Chapter 11 proceedings. FPV has served as external auditors for the Debtor and Debtor's stockholder since December 31, 2005. Mr. Agosto assures the Court that his firm is a disinterested party within the meaning of Section 101(3) and 327 of the Bankruptcy Code. San Juan, Puerto Rico-based Miramar Real Estate Management Inc. filed for Chapter 11 bankruptcy protection on March 2, 2011 (Bankr. D. P.R. Case No. 11-01786). Fausto D. Godreau Zayas, Esq., at Latimer, Biaggi, Rachid & Godreau, LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at US$100 million to US$500 million. MWM CARVER: Court OKs $12.5-Mil. Assets Sale to William C. Smith ---------------------------------------------------------------- Judge S. Martin Teel, Jr. of the U.S. Bankruptcy Court for the District of Columbia authorized MWM Carver Terrace, LLC's sale of its interest in a 407 unit multi-family residential community located at 901 21st Street, in Washington, D.C., free and clear of liens, claims and encumbrances, to William C. Smith & Co., for $12,525,000. The Debtor previously considered an offer from SCD Carver Holdings, LLC for the assets for $13,500,000, which was then lowered to $12,500,000. The Debtor then received a competing bid from William C. Smith & Co., Inc. or its affiliate WCS Carver Terrace Limited Partnership for the assets pursuant to a Purchase and Sale Agreement. Smith has paid into escrow a non-refundable deposit for the Assets for $750,000. SCD however has timely increased its offer to purchase the Assets from $12,500,000 to $12,750,000, but leaving all other prior terms and conditions of the SCD Agreement unaltered. Nonetheless, the Debtor has determined that the Smith bid is higher and better than the SCD Bid because, among other things, closing under the Smith Agreement is expedited and, as a result of a contractual exclusion of Smith from the brokerage agreement of CB Richard Ellis, no broker commission is payable under the Smith Agreement. All objections to the Sale Motion or the relief requested that have not been withdrawn, waived, or settled, and all reservations of rights in those objections, are overruled on the merits, the Court ruled. Fannie Mae will be paid in full at closing of the sale, including payment of the unpaid principal balance, non-default and default interest, yield maintenance and other charges required under the loan documents, including Fannie Mae's costs and expenses, including reasonable attorneys' fees incurred before the Petition Date and during this bankruptcy case in enforcing its rights under the loan documents. Washington, DC-based MWM Carver Terrace, LLC, owns a 407-unit residential apartment building located at 901 21st Street NE, in , Washington D.C. The Property occupies 5.78 acres of land and has approximately 252,000 square feet of enclosed improvements. It filed for Chapter 11 bankruptcy protection (Bankr. D.C. Case No. 11-00168) on March 3, 2011. Brent C. Strickland, Esq., at Whiteford, Taylor, & Preston L.L.P., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. MXENERGY HOLDINGS: Now a Wholly-Owned Subsidiary of Constellation ----------------------------------------------------------------- MXenergy Holdings Inc. became a wholly-owned subsidiary of Constellation Energy Resources, LLC, as a result of the merger of Nutmeg Merger Sub, Inc., with and into Holdings, with Holdings continuing as the surviving corporation in the Merger. The Merger was effected pursuant to the Agreement and Plan of Merger, dated May 12, 2011, by and among Constellation, Merger Sub, Holdings, and Mx SR LLC. Pursuant to the terms of the Merger Agreement, each issued and outstanding share of Class A Common Stock, $0.01 par value per share, of Holdings, Class B Common Stock, $0.01 par value per share, of Holdings and Class C Common Stock, $0.01 par value per share, of Holdings, other than Common Stock held as treasury shares by Holdings and any shares with respect to which appraisal rights have been properly perfected under Delaware law, was converted into the right to receive $3.2554 per share, less any applicable withholding taxes. In addition: * each restricted share of Class C Common Stock that was issued and outstanding immediately prior to the Merger became fully vested and cancelled, and the holders thereof received $3.2554 per share in cash less any applicable withholding taxes; -- each restricted share unit issued under the Holdings 2010 Stock Incentive Plan that was outstanding immediately prior to the Merger became fully vested and cancelled, and the holder thereof received $3.2554 per share in cash, less any applicable withholding taxes; and -- each share of Common Stock held as treasury stock immediately prior to the Merger was cancelled and retired with no payment being made or owed with respect to such shares. On July 1, 2011, and in connection with the Termination and Transfer Agreement, dated as of May 12, 2011, among Sempra Energy Trading LLC, MXenergy Inc., MXenergy Electric Inc., Holdings and Constellation Energy Commodities Group, Inc., Sempra and MXenergy Inc. entered into an Amended and Restated Schedule to the ISDA Master Agreement, dated as of Sept. 22, 2009, between Sempra and MXenergy Inc., as amended. The A&R Gas Schedule amended the Gas ISDA Agreement to remove Sempra's obligation to supply gas to MXenergy Inc. and its obligation to provide credit support for various gas-related commodity transactions. Further, the A&R Gas Schedule amended the Gas ISDA Agreement to remove many representations, warranties, covenants and events of default applicable to MXenergy Inc. and replaced the requirement to provide collateral security in the form of security interests in substantially all of its and its subsidiaries' assets with the requirement to provide a letter of credit as collateral security. On July 1, 2011, and in connection with the Sempra Termination and Transfer Agreement, Sempra and MXenergy Electric Inc. entered into an Amended and Restated Schedule to the ISDA Master Agreement, dated as of Sept. 22, 2009, between Sempra and MXenergy Electric Inc., as amended. The A&R Electric Schedule amended the Electric ISDA Agreement to remove Sempra's obligation to supply electrical energy to MXenergy Electric Inc. and its obligation to provide credit support for various electric power-related commodity transactions. Further, the A&R Electric Schedule amended the Electric ISDA Agreement to remove many representations, warranties, covenants and events of default applicable to MXenergy Electric Inc. and replaced the requirement to provide collateral security in the form of security interests in substantially all of its and its subsidiaries' assets with the requirement to provide a letter of credit as collateral security. Pursuant to the Sempra Termination and Transfer Agreement, effective upon the closing of the Merger, (i) Holdings repurchased shares of Class B Common Stock and Class C Common Stock held by Sempra, (ii) Holdings cancelled all RSUs held by Sempra, and (iii) it was agreed that Sempra's obligation and right to perform commodity supply services would be terminated. As consideration for the termination of the right to perform commodity supply services, Holdings paid Sempra approximately $5 million. As consideration for the repurchase of Sempra's shares of Class B Common Stock and Class C Common Stock and cancellation of its RSUs, Holdings paid Sempra approximately $11,050,000. In connection with the termination of Sempra's obligation and right to perform commodity supply services, the Guarantee and Collateral Agreement, dated as of Sept. 22, 2009, among Holdings, MXenergy Electric Inc., MXenergy Inc., and the other subsidiaries of Holdings party thereto, as grantors, and Sempra, as secured party, as amended by the First Amendment, dated as of May 28, 2010, was terminated. The consummation of the Merger effectively terminated any and all rights pursuant to any voting agreements and shareholder agreements by and among the holders of Common Stock. As a result of the Merger, a change of control of Holdings occurred and Holdings became a wholly-owned subsidiary of Constellation. Constellation used cash on hand to effect the Merger. Immediately prior to the effective time of the Merger, each of Jeffery A. Mayer, Mark Bernstein, Carl Adam Carte, James N. Chapman, Michael J. Hamilton, William Landuyt, Randal T. Maffett, Wayne Kubicek and Jonathan Moore, each a member of the Board of Directors of Holdings prior to the Merger, ceased to be directors of Holdings, and Mark P. Huston, Kathleen W. Hyle and Edward J. Quinn were appointed as directors of Holdings. Also immediately prior to the effective time of the Merger, (i) Jeffery A. Mayer resigned as President and CEO of Holdings, Chaitu Parikh resigned as Executive Vice President and CFO of Holdings, Robert Blake resigned as Senior Vice President, Regulatory Affairs of Holdings, Gina Goldberg resigned as Senior Vice President, Marketing of Holdings, Ronnie V. Shields resigned as Vice President and Controller of Holdings and Robert Werner resigned as Senior Vice President, Supply of Holdings and (ii) Chaitu Parikh was appointed President and Chief Executive Officer of Holdings and Ronnie V. Shields was appointed Chief Financial Officer of Holdings. Mr. Parikh and Mr. Shields shall serve as President and Chief Executive Officer and as Chief Financial Officer, respectively, until their respective successors are duly elected and qualify. A full-text copy of the Form 8-K is available for free at: http://is.gd/kSY81t About MxEnergy Holdings MxEnergy Holdings Inc. was founded in 1999 as a retail energy marketer. The two principal operating subsidiaries of Holdings are MxEnergy Inc. and MxEnergy Electric Inc. which are engaged in the marketing and supply of natural gas and electricity, respectively. Holdings and its subsidiaries operate in 39 market areas located in 14 states in the United States and in two Canadian provinces. The Company's balance sheet at March 31, 2011, showed $210.07 million in total assets, $102.66 million in total liabilities, and $107.41 million in total stockholders' equity. MxEnergy carries 'Caa3' long term corporate family and 'Ca/LD' probability of default ratings from Moody's Investors Service. NEBRASKA BOOK: Mesirow, Lowenstein Represent Creditors ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports the U.S. Trustee appointed in the Chapter 11 case of Nebraska Book Co. an official creditors' committee composed of two indenture trustees and three trade suppliers. U.S. Bank NA and Bank of New York Mellon Trust Co. NA are the indenture trustees. The trade creditors include subsidiaries of jeans maker VF Corp. and publisher Reed Elsevier Group Plc. For their professionals, the committee selected Lowenstein Sandler LLP as lawyers and Mesirow Financial Inc. as financial advisers, according to the report. About Nebraska Book Company Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the petition date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. NEW ULM RETAIL: Court Dismisses Involuntary Chapter 11 Case ----------------------------------------------------------- On June 16, 2011, Bankruptcy Judge Bruce A. Markell dismissed the involuntary Chapter 11 case filed against New Ulm Retail and Development LLC by petitioning creditors, Clifford Strand, Michael Strand, and Lance Warner. At a status hearing on May 24, 2011, counsel for the petitioning creditors indicated that dismissal of the case was appropriate. On March 7, 2011, three creditors filed an involuntary Chapter 11 petition against Cicero, Indiana-based New Ulm Retail and Development LLC (Bankr. D. Nev. Case No. 11-13110). Robert E. Atkinson, Esq., at Kupperlin Law, in Henderson, Nev., represented the petitioning creditors as counsel. NORANDA OPERATING TRUST: DBRS Downgrades Issuer Rating to 'BB' -------------------------------------------------------------- DBRS has downgraded the Issuer Rating of Noranda Operating Trust from BBB Under Review with Developing Implications to BB (high) with a Stable trend following the Trust's recent announcements regarding its refinancing efforts. Although the Trust's zinc concentrate processing operations have been running at close to capacity levels and generating solid earnings and cash flows since October 2009, it continues to face delays in renewing its long- term financing structure. These delays arise in the light of competing interests of the unitholders of its parent, the Noranda Income Fund (the Fund), that seek restoration of the Fund's distributions and the need to reduce long-term debt levels in advance of the potential expiry (or significant change in terms) in May 2017 of the Trust's concentrate supply and processing agreement with Xstrata Canada Limited that is the foundation of the Trust's earnings and cash flow, adding to the financial uncertainty related to the Trust. The Trust is currently being financed under the auspices of an interim $220 million bridge credit facility maturing on December 2, 2011 following the full repayment of its Senior Secured Notes and senior secured revolving credit facilities, which matured in December 2010. The Trust has indicated that it has executed a commitment letter for and is pursuing a five-year, asset-based secured revolving credit facility for up to $150 million that requires the Trust to concurrently arrange term debt financing having proceeds of at least $90 million (the March 31, 2011 indebtedness of the Trust totaled $157 million). DBRS expects the Trust to be successful in arranging new long-term financing essentially in the form anticipated but DBRS remains vigilant in terms of the implications any financing arranged will have to the pre- and post- May 2017 end of the initial term of the Supply and Processing Agreement. A reduction in concentrate processing for about seven months in 2009 led to a suspension of distributions by the Trust and its parent, the Fund, in July 2009. The suspension of distributions has continued during a protracted period in which the Trust's long-term debt (which matured and was repaid in December 2010) and its short-term borrowing agreements were refinanced with various short-term arrangements. The suspension of distributions and normal operations allowed a $34 million reduction of the Trust's $191 million in total debt at the end of June 2009 to $157 million by March 31, 2011. Consequently, the Trust's financial metrics, which had weakened in 2009, returned to historical levels in 2010 and have added strength in early 2011. Debt as a percentage of total capitalization (45% at March 31, 2011) dropped to under 50% in 2010 for the first time since 2005; cash flow-to-total debt was 39% and EBITDA gross interest coverage was 12.8 times in Q1 2011. The Trust's refinancing efforts have been complicated by a number of factors including the expiry date of the initial term of the Supply and Processing Agreement on May 2, 2017. Under the Supply and Processing Agreement, the Trust has been able to process zinc concentrates supplied by Xstrata Canada and generate earnings and cash flow to fund all of its operating and capital expenditure needs, plus provide sufficient cash to support the Fund's distribution of $51 million per year to its unitholders in each of the five years prior to and including 2008. Going forward, the Trust will face an added income tax burden due to changes in the Canadian taxation of income trusts. Over the longer term, DBRS believes that the cost of processing zinc concentrates under the Supply and Processing Agreement is high compared with current market rates for toll zinc refining and should these difficult market conditions prevail that it is unlikely that the Supply and Processing Agreement will be extended beyond May 2017 under current terms, leading to the expectation of a significant drop in earnings and cash flow for the Trust after that date. In addition, the bulk of zinc concentrate supplied by Xstrata Canada is from its Canadian operations and beyond 2017, the availability of concentrates from those operations is expected to be greatly reduced. DBRS believes that the value of the Trust's zinc refining facilities to Xstrata Canada, in terms of bringing its Canadian zinc production to markets in North America and around the world, would likely result in Xstrata Canada providing financial assistance in the event that the Trust had difficulties in meeting its financial obligations in the short term. Nonetheless, once the initial term of the Supply and Processing Agreement expires, its terms are likely to be renegotiated or it may not be extended. In either case, the Trust's ability to generate earnings and cash flow would be significantly reduced and potentially eliminated as would its ability to support the servicing of long-term debt not related to working capital needs. NORTEL NETWORKS: $4.5 Billion Patent Sale Approved by Judges ------------------------------------------------------------ Nortel Networks Inc. was given authority Monday by judges in the U.S. and Canada to sell a portfolio of 6,000 patents for $4.5 billion to a group including Apple Inc., Microsoft Corp., Sony Corp., Research In Motion Ltd., Ericsson AB and EMC Corp. The auction involved 19 rounds of bidding from June 27 to June 30. A consortium emerged as the winning bidder with a cash purchase price of US$4.5 billion for the remaining patent portfolio of Nortel Networks Inc. The consortium, identified as Rockstar Bidco, LP, consists of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The winning bid is five times Google Inc.'s opening bid of $900 million. Ranger Inc., the entity formed by Google, as the stalking horse bidder, will receive at least $25 million as "break-up fee". Cash generated from the patent auction comes on top of $3 billion Nortel already raised from selling most of its other assets and businesses. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel Networks divested off key assets while in Chapter 11. In March 2009, the U.S. Bankruptcy Court entered an order approving the sale of the Layer 4-7 assets to Radware Ltd. as the successful bidder at auction. In July 2009, Nortel sold its CDMA and LTE-related assets to Telefonaktiebolaget LM Ericsson (Publ). In September 2009, the Court Nortel sold its Enterprise Solutions business to Avaya Inc. In October 2009, the Court approved the sale of assets associated with Nortel's Next Generation Packet Core network components to Hitachi, Ltd. On Dec. 2, 2009, the Court approved the sale of assets associated with Nortel's GSM/GSM-R business to Telefonaktiebolaget LM Ericsson (Publ) and Kapsch Carriercom AG. In December 2009, the Debtors sold their Metro Ethernet Networks business to Ciena Corporation. In March 2010, Nortel sold its Carrier Voice Over IP and Application Solutions business to GENBAND Inc. In September 2010, Nortel sold its Multi-Service Switch business to Ericsson. Nortel Networks filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. OLSEN'S MILL: Sale of BNP Paribas' Security Interest Erroneous -------------------------------------------------------------- BNP Paribas asked the Supreme Court of Wisconsin to review an unpublished opinion of the court of appeals affirming an order of the circuit court. Paribas and Olsen's Mill Inc. entered into a voluntary assignment agreement for the benefit of creditors under Wis. Stat. ch. 128. The circuit court ordered the sale of certain assets free and clear of all liens to Olsen's Mill's Acquisition Company, LLC. As a secured creditor, Paribas argues that the circuit court erred by ordering the sale of its collateral free and clear of Paribas's security interest without its consent. Additionally, it contends that the sale impermissibly contravened the order of distribution of the proceeds of a debtor's estate set forth in Wis. Stat. Sec. 128.17(1). In an Opinion filed July 8, 2011, Justice Ann Walsh Bradley held that the circuit court erred by ordering the sale of Paribas's collateral free and clear of Paribas's security interest without its consent. However, because the value of Paribas's security interest in the assets sold is unclear on the record, the Wisconsin Supreme Court said it is unable to discern if Paribas was harmed as a result of this error. "We further determine that the court contravened the statute by approving an offer that circumvented the order of distribution mandated by Wis. Stat. Sec. 128.17(1). Accordingly, we reverse the court of appeals and remand to the circuit court for a determination of what remedy is available under the circumstances," Justice Bradley said. The case is BNP Paribas as Agent, Plaintiff-Appellant-Petitioner, v. Olsen's Mill, Inc., Defendant-Respondent, No. 2009AP1007 (Wis. Sup. Ct.). A copy of Justice Bradley's decision is available at http://is.gd/1Ilp4cfrom Leagle.com. In 2009, Olsen's Mill, Inc. was one of the largest grain elevators in Wisconsin. Olsen's Mill's largest creditor was French bank BNP Paribas, which had extended Olsen's Mill an $80 million line of credit. Paribas had a properly perfected security interest in certain assets of Olsen's Mill including equipment, real estate, inventory, and general intangibles. At the time Olsen's Mill defaulted on its obligations to Paribas, $58 million was due and owing on the loan. It is unclear from the record, however, what part of the $58 million represented a secured interest. Olsen's Mill had a number of creditors in addition to Paribas. Baylake Bank had a properly perfected security interest in certain assets. Olsen's Mill also had a number of unsecured creditors, including local businesses and farmers. On Feb. 11, 2009, Paribas and Olsen's Mill entered into a written agreement for an assignment for the benefit of creditors under Wis. Stat. ch. 128. The circuit court approved the assignment and appointed Michael S. Polsky as interim receiver of Olsen's Mill's estate pursuant to Wis. Stat. Sec. 128.08(1)(b). Shortly thereafter, the receiver sought authority to sell certain assets, including inventory and owned equipment. BNP Paribas as Agent is represented by: Brady C. Williamson, Esq. Katherine Stadler, Esq. Patricia L. Wheeler, Esq. GODFREY & KAHN, S.C. One East Main Street, Suite 500 P.O. Box 2719 Madison, WI 53701-2719 Tel: (608) 284-2221 Fax: (608) 257-0609 E-mail: bwilliam@gklaw.com kstadler@gklaw.com pwheeler@gklaw.com - and - Joseph J. Wielebinski, Esq. MUNSCH HARDT KOPF & HARR, P.C. 3800 Lincoln Plaza 500 N. Akard Street Dallas, TX 75201-6659 Tel: 214-855-7561 Fax: 214-978-4375 E-mail: jwielebinski@munsch.com Olsen's Mill, Inc., is represented by: Thomas M. Olejniczak, Esq. Colleen M. Kelly, Esq. Patrick M. Blaney, Esq. LIEBMANN, CONWAY, OLEJNICZAK & JERRY, S.C. 231 S. Adams Street Green Bay, WI 54301 Tel: (920) 437-0476 Fax: (920) 437-2868 E-mail: TMO@lcojlaw.com cmk@lcojlaw.com pmb@lcojlaw.com ONOFF AB: Seeks Bankruptcy Protection ------------------------------------- Dow Jones' DBR Small Cap reports that Onoff AB said it filed for bankruptcy following several years of fierce competition in the Swedish home electronics market. Onoff AB is one of Sweden's largest home electronics retailers. OUTSOURCE HOLDINGS: Cole Schotz as Examiner's Counsel Gets Okay --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas on June 27, 2011, authorized Anthony J. Pacchia, the examiner appointed by the United States Trustee, Elizabeth Ziegler, Esq., in the bankruptcy case of Outsource Holdings, Inc., to retain Cole, Schotz, Meisel, Forman & Leonard, P.A., as his counsel effective as of May 18, 2011. As the Examiner's counsel, Cole Schotz will, among other things: (a) take all necessary actions to assist and advise the Examiner with respect to the discharge of his duties and responsibilities under the Examiner Order; (b) assist the Examiner in preparing pleadings and applications as may be necessary in the discharge of the Examiner's Duties; (c) represent the Examiner at all hearings and other proceedings before the Court and any appellate courts with respect to the Examiner's Duties, and advocate and protect the interests of the Examiner before such courts and the U.S. Trustee; (d) represent the Examiner in any dealings he may have with various governmental and regulatory authorities, if required; and (e) represent the Examiner in any dealings he may have with the Debtor's creditors or any third party concerning the discharge of the Examiner's Duties. About Outsource Holdings Lubbock, Texas-based Outsource Holdings, Inc.'s only significant asset is its ownership of all of the outstanding capital stock of Jefferson Bank, which is a state bank with five branch locations in the Dallas/Fort Worth metroplex. Outsource Holdings believes that a sale/merger of its interests in Jefferson Bank before August 2011 offers the best opportunity for maximizing the value of this asset for this bankruptcy estate and its creditors. The Debtor has been unable to obtain consent from its creditors to conduct a sale or merger outside of bankruptcy. Since Outsource Holdings believes that a sale before August 2011 is necessary to avoid significant and sudden further declines in the value of its interests in Jefferson Bank, Outsource Holdings believes its fiduciary duties to its creditor body as a whole required the initiation of the bankruptcy case. Outsource Holdings filed for Chapter 11 bankruptcy protection on April 3, 2011 (Bankr. N.D. Tex. Case No. 11-41938). Jeff P. Prostok, Esq., at Forshey & Prostok, LLP, serves as Outsource Holdings' bankruptcy counsel. The Debtor also tapped Commerce Street Capital, LLP, as investment banker and financial advisor, Fenimore, Kay, Harrison & Ford, LLP as special transaction and regulatory counsel. The Debtor disclosed $10,571,121 in assets and $13,887,431 in liabilities as of the Chapter 11 filing. Anthony J. Pacchia was appointed as Chapter 11 examiner in the Debtor's case. The examiner tapped Cole, Schotz, Meisel, Forman & Leonard, P.A., as counsel and Traxi, LLC, as financial advisors. No creditors' committee has been appointed in the case. OXIGENE INC: Sells Add'l 3MM Shares Under at Market Sales Pact -------------------------------------------------------------- OXiGENE, Inc., on July 8, 2011, filed a prospectus supplement to the Company's shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission relating to the sale of an additional $3,100,000 of OXiGENE common stock from time to time pursuant to the At Market Issuance Sales Agreement, dated July 21, 2010, by and between OXiGENE and McNicoll, Lewis & Vlak LLC, as Agent. The Company previously filed with the SEC a prospectus supplement dated July 21, 2010, relating to the sale of 14,250,000 shares of common stock pursuant to the Agreement, a prospectus supplement dated Jan. 31, 2011, relating to the sale of up to an offering amount of $4,790,000 of common stock pursuant to the Agreement, a prospectus supplement dated June 1, 2011, relating to the sale of up to an offering amount of $6,110,000 of common stock pursuant to the Agreement, and a prospectus supplement dated June 29, 2011, relating to the sale of up to an offering amount of $4,000,000 of common stock pursuant to the Agreement. As of July 8, 2011, shares of common stock in an aggregate offering amount of $19,156,051 have been sold under the July 21, 2010, Jan. 1, 2011, June 1, 2011, and June 29, 2011, prospectus supplements, and no further sales of shares will be made under such prospectus supplements. Sales of common stock under the July 8, 2011, prospectus supplement will be made from time to time as market conditions warrant, in the Company's discretion. As of June 30, 2011, OXiGENE expects to report cash, cash equivalents and restricted cash of approximately $8.5 million, compared with approximately $2.7 million at March 31, 2011. About OXiGENE Inc. South San Francisco, Calif.-based OXiGENE (Nasdaq: OXGN) -- http://www.oxigene.com/-- is a clinical-stage biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases. The Company reported a consolidated net loss of $23.77 million on $0 of license revenue for the year ended Dec. 31, 2010, compared with a consolidated net loss of $28.94 on $0 of license revenue during the prior year. As reported by the Troubled Company Reporter on March 23, 2011, Ernst & Young LLP, after auditing the Company's financial statements for the year ended Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. Ernst & Young noted that the Company has incurred recurring operating losses and will be required to raise additional capital, alternative means of financial support, or both, prior to Jan. 1, 2012 in order to sustain operations. According to Ernst & Young, the ability of the Company to raise additional capital or alternative sources of financing is uncertain. The Company's balance sheet at March 31, 2011, showed $3.85 million in total assets, $2.80 million in total liabilities, nd $1.04 million in total stockholders' equity. PACIFICA MESA: Facing Plan Objection from Workers ------------------------------------------------- Pacifica Mesa Studios, LLC, will be facing an objection at the hearing before the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, on its proposed Chapter 11 plan of reorganization. Workers Realty Trust II, L.P., objects to the confirmation of the Plan. Workers Realty says the Plan's global consensual and non- consensual release and exculpation of numerous individuals and entities from claims of the Debtor's creditors, including workers, contradict established precedent in the Ninth Circuit. The Ninth Circuit, the Workers point out, has unequivocally held that Section 524(e) of the Bankruptcy Code precludes bankruptcy courts from discharging the liabilities of non-debtors. The Workers are represented by: Sara L. Chenetz, Esq. Jerry L. Switzer, Jr., Esq. Monika J. Machen, Esq. BLANK ROME LLP 161 N. Clark Street, Suite 4200 Chicago, IL 60601 Telephone: (312) 819-1900 Facsimile: (312) 819-1910 E-mail: jswitzer@polsinelli.com mmachen@polsinelli.com Plan Supplement Filed The Debtor has filed a supplement to its proposed plan. The supplement includes a management agreement, an amended and restated operating agreement of the reorganized debtor, and a schedule of contracts to be assumed by the Debtor. The managers of the Reorganized Debtors will be James Freel and Joseph LoMonaco. A full-text copy of the Plan Supplement, dated June 30, 2011, is available for free at http://ResearchArchives.com/t/s?7673 About Pacifica Mesa Agoura Hills, California-based Pacifica Mesa Studios, LLC, dba Albuquerque Studios and ABQ Studios, is a California limited liability company that was formed for the purpose of developing and running a state-of-the art production complex in Albuquerue, New Mexico. The Debtor is owned on a 50/50 basis by members Harold Katersky and Dana Arnold. The Debtor is the largest film studio in New Mexico. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 10-18827) on July 20, 2010. Steven T. Gubner, Esq., at Ezra Brutzkus & Gubner, assists the Debtor in its restructuring effort. The Debtor estimated $50 million to $100 million in assets and $100 million $500 million in liabilities in its Chapter 11 petition. PETER MCFARLAND: No Proof of Hiding Flying Tuna Assets ------------------------------------------------------ In the case, Whitney National Bank, v. The Flying Tuna, LLC, et al., Civil Action No. 11-0249-WS-N (S.D. Ala.), the Court barred Flying Tuna from disposing of property which is subject to the bank's security interest lien without court order or plaintiff's consent. Chief District Judge William H. Steele noted that Whitney seeks to impute nefarious conduct to Peter McFarland, the sole shareholder of Flying Tuna's sole member, by stating that a bankruptcy trustee moved to dismiss Mr. McFarland's Chapter 11 bankruptcy petition because, inter alia, he had not filed financial reports for Flying Tuna. "The Court takes judicial notice, however, that the trustee withdrew that motion on June 13, 2011. Thus, there is no information before the Court that McFarland is hiding information about Flying Tuna's assets from any tribunal, so as to give rise to concerns that he would thumb his nose at an order enjoining him from disposing of the collateral pending entry of final judgment in this case," Judge Steele said. Whitney sued Flying Tuna for breach of a promissory note and foreclosure of a security interest lien. Flying Tuna in 2008 executed and delivered to Whitney a promissory note in the principal amount of $200,000, along with a commercial security agreement. Flying Tuna granted Whitney a security interest in its inventory, retail inventory, artwork, intangibles, and other items as collateral to secure the note. The Complaint alleges that Flying Tuna failed to make required monthly payments on the Note beginning on Jan. 5, 2011, and has made no subsequent payments. Despite notice of the default, Flying Tuna failed to cure or to respond to Whitney's demand for payment. A copy of Judge Steele's July 7, 2011 Order is available at http://is.gd/1GFk5sfrom Leagle.com. Peter McFarland filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-06750) on April 10, 2011. PLAIN GOOD: Case Summary & 11 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Plain Good, Inc. dba Fontana 7605 Beach Boulevard Jacksonville, FL 32216 Bankruptcy Case No.: 11-05036 Chapter 11 Petition Date: July 8, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Gust G. Sarris, Esq. AFFINITY LAW FIRM, P.L. 3947 Boulevard Center Drive, #101 Jacksonville, FL 32207 Tel: (904) 398-9510 Fax: (904) 398-9512 E-mail: gsarris@affinitylawfirm.com Scheduled Assets: $480,500 Scheduled Debts: $1,067,589 A list of the Company's 11 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-05036.pdf The petition was signed by Paola P. Navarro, title SEC. POINT BLANK: Toyobo Makes $6 Million Settlement ----------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Point Blank Solutions Inc. negotiated a $6 million settlement of a lawsuit it filed in 2009 against Toyobo Co. Ltd. relating to a fabric made from Zylon. Point Blank used Zylon to make reputedly bullet-proof vests from 1999 until 2005, when the U.S. government released a study saying that the material provided by Osaka-based Toyobo wouldn't stop bullets. Point Blank sued Toyobo for $20 million in 2009. Mr. Rochelle relates that with the trial scheduled in U.S. district court in Florida, Toyobo agreed to settle by paying $6 million. If approved by the bankruptcy judge at a requested July 27 hearing, Point Bank will take in $4.75 million after paying the lawyers' fees. About Point Blank Headquartered in Pompano Beach, Florida, Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, as well as select international markets. The Company maintains facilities in Pompano Beach, Florida, and Jacksboro, Tennessee. The Company's former chief executive officer and chief operating officer were convicted in September 2010 of orchestrating a $185 million fraud. Point Blank Solutions, formerly DHB Industries, filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq., David M. Bertenthal, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves as corporate counsel. T. Scott Avila of CRG Partners Group LLC is the restructuring officer. Epiq Bankruptcy Solutions serves as claims and notice agent. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Equity Security Holders in the case. Ian Connor Bifferato, Esq., and Thomas F. Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein, Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq., at Baker & McKenzie LLP, serve as counsel for the Official Committee of Equity Security Holders. Robert M. Hirsh, Esq., and George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to the Creditors Committee, and Frederick B. Rosner, Esq., and Brian L. Arban, Esq., at the Rosner Law Group LLC, serve as co-counsel. PRIMUS TELECOMMUNICATIONS: Moody's Assigns B3 Ratings to Notes -------------------------------------------------------------- Moody's has assigned definitive B3 ratings to Primus Telecommunications Holding, Inc's (a wholly owned subsidiary of Primus Telecommunications Group, Inc.) proposed $240 million 10% senior secured notes due 2017. The new notes were offered in an exchange for the company's $130 million 13% senior secured notes due 2016, and $90 million 14.25% senior subordinated notes due 2013. The holders have fully tendered the outstanding 14.25% senior subordinated notes, which Moody's does not rate. The holders have tendered over 98% of the 13% senior secured notes. As a result, approximately $2.4 million of the 13% notes remain, and the ratings for these notes have been withdrawn. A complete list of the ratings actions are: Issuer: Primus Telecommunications Holding, Inc. Assignments: -- 10% Senior Secured Notes Due 2017, B3 (LGD4-65%) Issuer: Primus Telecommunications Canada, Inc. and Primus Telecommunications Holding, Inc. Withdrawn: -- 13% Senior Secured Notes due 2016 Outlook is Stable RATINGS RATIONALE The principal methodologies used in rating Primus Telecommunications Holding, Inc was the Moody's Global Telecommunications Industry Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009, and Speculative Grade Liquidity Ratings published September 2002. Primus is a competitive telecom provider headquartered in McLean, VA. The company offers telecommunications, IP and data center services to small and medium-sized enterprises, residential customers and other telecommunications carriers and resellers in the United States, Canada, Australia, and Brazil. PROVIDENT ROYALTIES: Liquidating Trustee May Sue D&Os ----------------------------------------------------- Magistrate Judge Irma Carrillo Ramirez granted the request of Milo H. Segner, the trustee liquidating the estates of Provident Royalties, L.L.C., to lift the stay of proceedings against Henry D. Harrison, Brendan W. Coughlin and Paul R. Melbye. Securities and Exchange Commission, Plaintiff, v. Provident Royalties, L.L.C., et al., Defendants. and Shale Royalties 21, Inc., et. al., Relief Defendants, Civil Action No. 3:09-CV-1238-L (N.D. Tex.), is a securities fraud action against several business entities, including Provident, Shale, and several individuals, including Provident founders and managers Henry D. Harrison, Brendan W. Coughlin, Paul R. Melbye, and Joseph S. Blimline. The SEC has also joined several other business entities that received assets, funds, or other properties derived from the allegedly fraudulent offering as "relief defendants". Dennis S. Roossien, Jr., has been appointed receiver for the estates of Provident, Shale, and certain other defendants and relief defendants. Mr. Roossien also has been appointed the Chapter 11 Trustee for Provident, Shale, and several other business entities. Under the current consolidated plan for liquidation of the debtors' estates, Mr. Segner, as trustee of the Provident Liquidating Trust and a representative of the debtors' estates, has been assigned certain causes of action, including the debtors' claims against their directors and officers for breach of their fiduciary duties. The liquidating trustee moves to lift the stay on litigation to allow him to pursue those claims against the directors and officers of the debtors, including Messrs. Harrison, Coughlin, and Melbye. The receiver has agreed to the motion, the SEC does not oppose the motion, and Messrs. Coughlin and Harrison filed a response in opposition to the motion. A copy of the Court's July 7, 2011 Memorandum Opinion and Order is available at http://is.gd/dJR187from Leagle.com. About Provident Royalties Based in Dallas, Texas, Provident Royalties LLC owned working interests in oil and gas properties primarily in Oklahoma. Provident and its affiliates filed for Chapter 11 (Bankr. N.D. Tex. Case No. 09-33886) on June 22, 2009. Judge Harlin DeWayne Hale presides over the case. Epiq Bankruptcy Solutions, LLC is the claims and noticing agent. The United States Trustee for the Northern District of Texas appointed nine members to the Official Committee of Unsecured Creditors. On July 2, 2009, the Securities and Exchange Commission filed, under seal, a complaint with the District Court for the Northern District of Texas against the Debtors and certain of their principals and managing partners on allegations that they sold stock and limited partnership interest to over 7,700 investors as part of a $485 million Ponzi scheme. On July 2, 2009, the District Court appointed Dennis L. Roossien, Jr., at Munsch Hardt Kopf & Harr P.C. in Dallas, Texas, as receiver for the Debtors. On July 20, 2009, the Bankruptcy Court named Mr. Roossien, Jr., as the Debtors' Chapter 11 trustee. Mr. Roossien, Jr., hired Patton Boggs, LLP, as his special counsel. Patton Boggs, LLP, was Debtors' counsel before the appointment of Mr. Roossien, Jr., as Chapter 11 trustee. Mr. Roossien, Jr., also selected Munsch Hardt Koph & Harr, P.C., as counsel. Gardere, Wynne, Sewell, LLP represents the official committee of unsecured creditors. Rochelle McCullough, LLP represents the official investors committee. The Company, in its petition, estimated between $100 million and $500 million each in assets and debts. As reported in the Troubled Company Reporter on June 21, 2010, the Chapter 11 Trustee, the official committee of unsecured creditors and the official investors committee for Provident Royalties LLC and its affiliates obtained confirmation of their plan of liquidation. The Plan provides 100% return to all creditors on their claims with interest, and creates a liquidating trust to pursue claims against third parties for the benefit of holders of preferred stock interests. PURSELL HOLDINGS: Lawson Amends Lift Stay Motion to Sell Property ----------------------------------------------------------------- Lawson Bank submits to the U.S. Bankruptcy Court for the Western District of Missouri a request to lift the automatic stay to condition the use or sale of the collateral or for adequate protection payments. On Dec. 16, 2003, Pursell Holdings LLC applied for a loan amounting $650,000 from Lawson Bank. On Dec. 16, 2006, the loan was renewed for $596,948 pursuant to the terms of a promissory note of the same date. The Original Note and the renewal are secured by a Deed of Trust on certain real estate located in Buckeye Industrial Park, Kansas City, Missouri. Lawson Bank perfected its interest in the Property by filing the Deed of Trust with the Recorder of Deeds on Dec. 19, 2003. The lien is the first position lien against the real estate. The Debtor scheduled the loan balance as of the filing of the Bankruptcy Petition as $473,839. Under the terms of the Note and the renewal executed by the Debtor, the Debtor is required to make monthly payments equal to $5,210. The loan fully matures on Dec. 16, 2011. Lawson Bank asserts that cause exists for termination of the automatic stay because: a. it lacks adequate protection for repayment; b. the equity in the property does not adequately protect Lawson Bank unless or until the property is sold, making liquidation of the collateral necessary to protect the creditor's debt; c. the Debtor's failure to make its contracted monthly payments harms the subordinate and unsecured creditors by shifting any remaining equity to service the secured debt; Any delay in making payments to creditor harms the subordinate and unsecured creditors; d. the Debtor's escrowing for future taxes does not adequately protect Creditor for the lien on the past due taxes which constitute a lien on the collateral; e. the debtor's reliance on existence or non-existence of a lien on any lease rights or lease income fails to address the breach of the contractual duty to make monthly payments on the debt, regardless of its source; f. if the Debtor is unable to service the debt to Creditor, then confirmation of a Plan is unlikely and the property should be liquidated; g. the Debtor has not acted in good faith by attempting to condition its compliance with the note on the Bank's accepting proposed terms of modification; h. the Property which serves as collateral for the loan is income producing property, such income is sufficient to service the debt to Creditor, but Debtor has made no payments on the loan since filing for bankruptcy; i. despite Lawson Bank's perfected security interests, the Debtor has paid Creditor nothing for Debtor's continued possession of the collateral; j. Lawson Bank's collateral is diminishing in value due to Debtor's continued use of the collateral and use of the income from the collateral; k. on belief, the Debtor is unlikely to be able to present a confirmable plan, and any further delay in liquidating the property will harm Lawson Bank, and the subordinate and unsecure creditors; l. Lawson Bank's interest would be irreparably harmed by continuation of the automatic stay, if the collateral continues to be used by Debtor and depreciated by Debtor without paying the monthly payments due to Creditor; m. the Debtor has materially defaulted with respect to payment of Creditor's secured claims and has caused unreasonable delay, which is prejudicial to Creditor. To remedy this delay to Creditor, and to avoid irreparable harm to Lawson Bank, an Order for Relief from the Automatic Stay should be granted to enable Creditor to foreclose on Creditor's security interest; n. without monthly payments, Lawson Bank will be required to re-classify the loan, which creates prejudice to the creditor. Once re-classified, the defaulted status of the loan will negatively impact the creditor for the remaining life of the loan; o. on information and belief, there is insufficient equity to adequately protect repayment of the debt; p. the collateral is not necessary for an effective reorganization. In the alternative, Lawson Bank seeks adequate protection from the Debtor in the form of the sums which have come due under the loan agreements, curing the arrearage or failed payments, monthly payments which are required under the terms of the loan documents will adequately protect the Creditor for repayment of the loan and use of its money, and for the use of the collateral after the filing of this Motion, and to compensate Creditor for the interest accruing on the debt and the depreciation of the collateral from the Debtor's use. Debtor Responds On behalf of the Debtor, Frank Wendt, Esq., at Brown & Ruprecht PC, in Kansas City, Missouri, reveals that the Clay County Appraiser has appraised the value of Lawson Bank's collateral at $1,168,093 as of January 1, 2011. He adds that Lawson Bank also obtained an appraisal from The Williams Group, dated November 26, 2003, which found that the total value of its collateral at that time was $1,680,000. Mr. Wendt tells the Court that after accounting for a portion of vacant property which was previously sold, the present value of the remaining collateral under that appraisal is in excess of $1,100,000. He further reveals that a recent sale of similar property located in the area by the Debtor on January 22, 2009 supports a similar valuation of Lawson Bank's collateral. "This sale shows the assumptions made in the 2003 appraisal remain valid despite the intervening rise then fall in the economy," Mr. Wendt says. Accordingly, the Debtor asserts that Lawson Bank is not entitled to adequate protection, as it enjoys a substantial equity cushion. Mr. Wendt argues that the Property has substantial equity and is necessary to an effective reorganization. He contends that granting the relief asked by Lawson Bank could substantially impact unsecured creditors and junior lien holders and is not in the best interests of the creditors and the estate. Mr. Wendt also asserts that Lawson Bank should also be denied its attorneys' fees for the filing of its request or amended request as they were not filed in good faith, but rather in response to the Debtor's plan proposal to extend the term of the loan for a period of years and to adjust the interest to a market rate of interest. The Court has scheduled a hearing for July 20, 2011 at 10:30 a.m. to consider Lawson Bank's request and the Debtor's response. About Pursell Holdings Liberty, Missouri-based Pursell Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Mo. Case No. 11-40999) on March 10, 2011. Frank Wendt, Esq., Brown & Ruprecht, P.C., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $12,204,248 in assets and $23,382,741 in debts. Affiliate Damon Pursell Construction Company filed a separate Chapter 11 petition (Bankr. W.D. Mo. Case No. 10-44965) on Sept. 15, 2010. The U.S. Trustee said that a committee under 11 U.S.C. Sec. 1102 has not been appointed because an insufficient number of persons holding unsecured claims against Pursell Holdings LLC have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee should interest develop among the creditors. QUINCY MEDICAL: Atty. Gen. Wants More Time to Review Sale --------------------------------------------------------- Jessica M. Karmasek at Legal Newsline reports that Massachusetts Attorney General Martha Coakley, in a court filing, said her office needs more time to review a medical center's sale procedures. According to the report, Ms. Coakley, in her six-page motion filed in U.S. Bankruptcy Court for the District of Massachusetts Tuesday, said she opposes Quincy Medical Center Inc.'s motion for approval of sale procedures. The time frames and deadlines proposed in the sale procedures motion, she said, may not permit her office to satisfy its statutory obligations under Section 8A(d) of state code. The report says the center's Interim Chief Executive Officer John N. Kastanis said in a recent statement that the Chapter 11 filing will allow Quincy to restructure its debt and reorganize its operations, "providing our selected capital partner a predictable and manageable process forward." The attorney general argued that under state code her office is required to consider "any factors that the attorney general deems relevant," including, but not limited to whether: -- The proposed transaction complies with applicable general nonprofit and charities law; -- Due care was followed by the nonprofit entity; -- Conflict of interest was avoided by the nonprofit entity at all phases of decision making; -- Fair value will be received for the nonprofit assets; and -- The proposed transaction is in the public interest. Ms. Coakley said she also is required to hold at least one public hearing following at least 21 days advance notice by newspaper publication. In her court filing, the attorney general requests the following: -- That the parties to the proposed sale transaction and the court take notice of potential issues that may arise as a result of any discrepancies between the time frames and deadlines proposed in the sale procedures motion and the statutory requirements of Section 8A(d); -- That any sale approval be contingent upon the court holding a hearing on the medical center's motion, with the attorney general's assent, concerning the attorney general's report and findings pursuant to Section 8A(d) with respect to the proposed sale; -- That the attorney general receive notice of all pleadings, orders, notices, motions, demands, requests, applications, objections, and other documents filed in these case; and -- That the court enter such other orders as may be just and proper. According to the Patriot Ledger, under the sale agreement, either Quincy or Stewart can terminate the agreement if all proceedings are not finished by December. Also, if the court dismisses the case without approving the sale to Steward, the deal is off. About Quincy Medical Quincy Medical Center, Inc., doing business as Quincy Hospital, together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. QUIZNOS CORP: Hires Lawyers, Bankers to Avert Covenant Default -------------------------------------------------------------- Quiznos Corp. hired Paul Weiss Rifkind Wharton & Garrison LLP and Moelis & Co. as lawyers and investment bankers to assist in negotiating with lenders, Bloomberg News reported, citing a person familiar with the matter who declined to be identified because it isn't public. The Denver-based company said in an e-mailed statement to Bloomberg that it hired advisers to help "develop a proper financial structure for the company." Bloomberg News reported last month that Quiznos owners are planning to invest about $50 million of equity to help the company refinance debt and avoid a technical default later this year. The company is also working with Deutsche Bank AG to offer new debt in conjunction with the equity. Quiznos faces a debt covenant test this year that it may fail if it doesn't receive new equity. Quiznos Corp. operates the #2 sub sandwich chain (behind Subway), with more than 4,500 franchised quick-service restaurants popular for their made-to-order, oven-toasted sandwiches. The company has locations in more than 20 countries. The chain has about 2,900 stores in the U.S. and 600 international locations. Quiznos started getting toasty in 1981 as a single Denver area restaurant. Founder Rick Schaden and his family control the company with backing from investment firms CCMP Capital and Cervantes Capital. REAL MEX: Two Directors Resign from Board ----------------------------------------- Clarence E. Terry, who represented a certain shareholder, has resigned from Board of Directors of Real Mex Restaurants, Inc., in order to accommodate the appointment of Scott King, a representative of the same shareholder. Also effective July 1, 2011, Craig S. Miller has resigned from the Company's Board of Directors to pursue personal endeavors. The Company has not yet identified a replacement for Mr. Miller. About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. The Company operated 183 restaurants as of March 28, 2010, of which 152 were located in California and the remainder were located in 12 other states, primarily under the trade names El Torito Restaurant(R), Chevys Fresh Mex(R) and Acapulco Mexican Restaurant Y Cantina(R). In addition, the Company franchised or licensed 34 restaurants in 12 states and two foreign countries as of March 28, 2010. The Company's other major subsidiary, Real Mex Foods, Inc., provides internal production, purchasing and distribution services for the restaurant operations and also provides distribution services and manufactures specialty products for sale to outside customers. Real Mex carries a 'Caa2' Corporate Family Rating, and stable Outlook from Moody's Investors Service. At the end of August 2010, Moody's said the 'Caa2' CFR continues to reflect the challenges Real Mex will face to reverse its revenue decline primarily driven by the ongoing, albeit somewhat decelerated, negative same store sales trend, in a very difficult operating environment for casual dining concepts. The rating also incorporates the company's high financial leverage, poor interest coverage and weak free cash flow generation. As reported by the TCR on June 28, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Cypress, Calif.- based Real Mex Restaurants Inc. to 'CCC' from 'B-'. "The rating actions reflect our view that operating performance will remain weak in 2011, likely requiring the company to amend financial covenants," said Standard & Poor's credit analyst Andy Sookram. The Company reported a net loss of $17.78 million on $227.91 million of total revenues for the six months ended Dec. 26, 2010, compared with a net loss of $49.59 million on $500.60 million of total revenues for the fiscal year ended Dec. 27, 2009. The Company's balance sheet at March 27, 2011, showed $276.64 million in total assets, $255.35 million in total liabilities and $21.29 million in total stockholders' equity. REAL MEX: S&P Keeps 'CCC' Corp. Credit Rating; Outlook Negative --------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on Cypress Calif.-based Real Mex Restaurant Inc.'s (CCC/Negative/--) senior secured notes to '4' from '3'. The '4' recovery rating indicates average (30%-50%) recovery in the event of a default scenario. The 'CCC' issue-level rating on the notes (the same as the corporate credit rating) is unchanged. The recovery rating revision reflects continued difficult market conditions and a decline in operating performance that results in lower enterprise value and recovery prospects for lenders. Ratings List Real Mex Restaurants Inc. Corporate Credit Rating CCC/Negative/-- Rating Unchanged; Recovery Rating Revised To From Real Mex Restaurants Inc. Senior Secured CCC CCC Recovery Rating 4 3 REITTER CORP: Amended Plan Outline Filing Extended Until Aug. 31 ---------------------------------------------------------------- The Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico extended until Aug. 31, 2011, Reitter Corporation's time to file its amended disclosure statement. The Court has also rescheduled to Sept. 27, at 2:30 p.m., the hearing to consider adequacy of the disclosure statement. In its request for an extension, the Debtor related that after the appointment of CPA Carrasquillo, he and his team have conducted a comprehensive analysis of Debtor's operations and its proposed plan of reorganization. However, more time is needed in order to complete its analysis insofar as a thorough reconciliation of all claims have to be completed to establish the feasibility of the proposed plan. As such, CPA Carrasquillo has advised the Debtor that the feasibility report will be concluded on or before Aug. 15, 2011. The Debtor added that it has obtained the consent of the IRS and Banco Popular for the use of the cash collateral through Aug. 31. As reported in the Troubled Company Reporter on March 18, the Debtor filed with the Court a proposed Chapter 11 plan and a disclosure statement explaining the plan. Under the plan, Reitter proposed to make payments to its creditors which primarily consist of: (i) payment of all administrative expenses on the later of the effective date of the plan and the date those claims become allowed; (ii) monthly payment of 100% of all allowed priority tax claims to be made within the sixth year of the date of assessment of each particular claim; (iii) payment of 100% of all claims from holders of executory contracts that are being assumed by Reitter; (iv) payment of approximately 2.8% of allowed unsecured claims in 60 monthly payments to begin 30 days after the effective date of the plan; Reitter will also continue to pay its secured creditor, Banco Popular, under an agreed upon payment scheme. The effective date of the proposed plan will be 120 days after an order confirming the plan is final and unappealable. About Reitter Corporation San Juan, Puerto Rico-based Reitter Corporation dba Hospital San Gerardo filed for Chapter 11 protection (Bankr. D. P.R. Case No. 10-07152) on Aug. 6, 2010. In its schedules, the Debtor disclosed $20,440,765 in total assets and $17,250,033 in total debts. Alexis Fuentes-Hernandez, Esq., in San Juan, P.R., represents the Debtor as counsel. REYNOLDS GROUP: Moody's Confirms 'B2' Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service confirmed the B2 corporate family rating and negative outlook of Reynolds Group Holdings Limited and concluded the review initiated on June 17 following Reynolds announcement that it had signed a definitive merger agreement to acquire Graham. Moody's also assigned provisional ratings to the proposed acquisition financing. Moody's assigned a provisional P(Ba3) ratings to the U.S. $2,000 million senior secured Term Loan due 2018 and US $1,500 million senior secured notes due 2018 proposed by RGHL and certain of its subsidiaries. Moreover, Moody's also assigned a provisional P(Caa1) rating to the U.S. $500 million senior unsecured notes due 2019 proposed by RGHL and certain of its subsidiaries. If the transaction closes as proposed, the existing Graham Packaging Company L.P. ("Graham") senior unsecured notes, US$250 million due 2017 and US$250 million due 2018, will be confirmed at Caa1. Moreover, the existing Graham US$375 million subordinated notes due 2014 will also be confirmed at Caa1 and the B2 corporate family rating and review for downgrade will be withdrawn. Ratings of RGHL's existing debt issues are not expected to change, but LGD rates of existing debt issues will likely change once the new debt has been issued and definitive ratings have been assigned. Moody's issues provisional ratings in advance of the final sale of securities and these reflect the rating agency's credit opinion regarding the transaction only. Upon the finalization of the transaction, Moody's will endeavor to assign definitive ratings to the instruments mentioned above. A definitive rating may differ from a provisional rating. RGHL intends to finance the acquisition of Graham and associated transaction costs with a combination of approximately U.S.$2.0 billion of senior secured term loans pursuant to an amendment to its existing credit agreement, approximately U.S.$2.0 billion of new senior indebtedness (currently anticipated to consist of U.S.$1.5 billion of secured and U.S.$500 million of unsecured senior indebtedness) and available cash. RGHL expects to realize approximately U.S.$75 million of operational cost savings as a result of the combination. The synergies will be achieved primarily through reductions in administrative expenses, procurement savings and logistical efficiencies. The proposed financing structure will not require any amendments to the covenants in the indentures governing Graham's outstanding notes. There can be no assurance that the proposed amendment to RGHL 's existing credit agreement will be achieved. RGHL also confirmed that any Graham debt that remains outstanding following the acquisition of Graham is not expected to benefit from guarantees or security from RGHL and its subsidiaries. In addition, Graham's wholly-owned subsidiaries Graham Packaging Company, L.P. and GPC Capital Corp. I commenced tender offers and consent solicitations with respect to any and all of their outstanding 9.875% Senior Subordinated Notes due October 7, 2014, 8.25% Senior Notes due January 1, 2017, and 8.25% Senior Notes due October 1, 2018 (at a price of 102 which includes a one point early tender premium and one and a half points for a related consent fee). Graham is seeking consents that would make RGHL and its affiliates a permitted holder. Under the proposed pro-forma corporate structure, Graham would be a subsidiary of RGHL, but would not guarantee or provide security for any RGHL debt. Any Graham debt left outstanding would also not be guaranteed by RGHL. RGHL would issue Graham a US$2,000 million senior secured intercompany loan due 2018 which would be secured by substantially all of Graham's assets up to the outstanding amount of the note. The interest rate for the loan is to be determined and the annual amortization is expected to be $200 million (the note is also expected to have an excess cash flow sweep). The loan is not expected to contain cross default or cross acceleration provisions. The proceeds of the loan are expected to be used to pay down Graham's existing term loans. Moody's took these rating actions: Reynolds Group Holdings Limited - Confirmed B2 CFR - Confirmed B2 PDR The ratings outlook is negative Reynolds Group Holdings Inc - Assigned provisional Ba3 (LGD 2, 27%) to US $2,000M Sr. Sec. Term Loan due 2018 Reynolds Consumer Products Holdings Inc. - Confirmed Ba3 (LGD 2, 24%) EUR 80.00M Sr. Sec. Revolving Credit Facility due 11/5/2014 - Confirmed Ba3 (LGD 2, 24%) US $120.00M Sr. Sec. Revolving Credit Facility due 11/5/2014 - Confirmed Ba3 (LGD 2, 24%) US $2,325.00M Sr Sec Term Loan E in 2018 - Confirmed Ba3 (LGD 2, 24%) EUR 250.00M Sr Sec Term Loan E in 2018 Reynolds Group Issuer (Luxembourg) S.A., Reynolds Group Issuer Inc. - Assigned provisional Ba3 (LGD 2, 27%) US $1500M Senior Secured Notes due 2019 - Assigned provisional Caa1 (LGD 5, 78%) US $500M Senior Unsecured Notes due 2019 - Confirmed Ba3 (LGD 5, 24%) US $1125.00M 7.750% Senior Secured Global Notes due 10/15/2016 - Confirmed Ba3 (LGD 5, 24%) EUR 450.00M 7.750% Senior Secured Global Notes due 10/15/2016 - Confirmed Ba3 (LGD 5, 24%) US $1,500.00M 7.125% Senior Secured Global Notes due 04/15/2019 - Confirmed Ba3 (LGD 5, 24%) US $1,000.00M 6.875% Senior Secured Global Notes due 02/15/2021 - Confirmed Caa1 (LGD 5, 77%) US $1,000.00M 8.500% Global Bonds due 05/15/2018 - Confirmed Caa1 (LGD 5, 77%) US $1,500.00M 9.000% Senior Global Notes due 04/15/2019 - Confirmed Caa1 (LGD 5, 77%) US $1,000.00M 8.250% Global Notes due 02/15/2021 Beverage Packaging Holdings (Lux) II S.A. - Confirmed Caa1 (LGD 5, 77%) EUR 480.00M 8.000% Global Notes due 12/15/2016 - Confirmed Caa1 (LGD 6, 96%) EUR 420.00M 9.500% Sr. Sub. Global Notes due 06/15/2017 Pactiv Corporation - Confirmed Caa1 (LGD 6, 93%) US $250.00M 5.875% Notes due 07/15/2012 - Confirmed Caa1 (LGD 6, 93%) US $300.00M 8.125% Bonds due 06/15/2017 - Confirmed Caa1 (LGD 6, 93%) US $250.00M 6.400% Notes due 01/15/2018 - Confirmed Caa1 (LGD 6, 93%) US $276.79M 7.950% Bonds due 12/15/2025 - Confirmed Caa1 (LGD 6, 93%) US $200.00M 8.375% Notes due 04/15/2027 The ratings are subject to the receipt and review of the final documentation. RATINGS RATIONALE The confirmation of the B2 corporate family rating and negative outlook reflects RGHL's weak pro-forma credit metrics, integration risk and limited operating history for the combined entity. The rating and outlook also reflect the company's lengthy raw material cost pass-through provisions, concentration of sales within certain segments and financial aggressiveness. Additionally, the company has a complex capital and organizational structure and is owned by a single entity. Pro-forma leverage and debt to revenue are high at over 6.5 times and 100% respectively (excluding synergies and including Moody's standard adjustments) leaving the company little room within the rating category for negative operating or integration variance. Additionally, pro-forma EBIT to interest coverage is approximately 1 time and the company has a significant percentage of variable rate debt. RGHL is still integrating a large acquisition (Pactiv in November 2010) and several smaller acquisitions. The company has only been operating as a combined entity since 2007 and over 50% of pro-forma revenues are from business which were acquired less than one year ago. Strengths in the company's profile include anticipated positive free cash generation and management's commitment to dedicate all free cash flow to debt reduction over the intermediate term and refrain from further significant acquisition activity. Strengths in the company's profile also include its strong brands and market positions in certain segments, scale and blue-chip customer base. Despite the anticipated significant increase in interest and other expenses, RGHL is anticipated to continue to generate some level of free cash flow which management has pledged will be applied to debt reduction. Synergies from Pactiv, Graham and Dopaco (recently acquired) are expected to help bolster free cash generation. The company has strong brands and market positions in certain segments and the blue-chip customer base that comes with that position. Scale, as measured by revenue, is significant for the industry and helps RGHL lower its raw material costs. RGHL is also expected to have good pro-forma liquidity including ample cushion under its financial covenants following the proposed credit facility amendment.The principal methodology used in rating Reynolds Group Holdings Limited and Graham Packaging Company L.P. was the Global Packaging Manufacturers: Metal, Glass, and Plastic Containers Industry Methodology, published June 2009. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. WHAT COULD CHANGE THE RATINGS-DOWN The ratings could be downgraded if the company fails to improve credit metrics on a sustainable basis, undertakes further significant acquisitions and/or continues its aggressive financial policies. The ratings could also be downgraded if there is a deterioration in the operating and competitive environment and/or the company fails to maintain adequate liquidity including ample cushion under financial covenants . Specifically, the ratings could be downgraded if debt to EBITDA remained above 6 times, EBIT to interest expense declined below 1.5 times, free cash flow to debt declined below the low single digits, and/or the EBIT margin decreased to below the high single digits. WHAT COULD CHANGE THE RATINGS-UP The rating could be stabilized if the company sustainably improves its credit metrics within the context of a stable operating and competitive environment, maintains adequate liquidity including ample cushion under financial covenants and pursues less aggressive financial policies. Specifically, RGHL would need to improve debt to EBITDA to below 6 times, EBIT to interest expense to at least 1.5 times and free cash flow to debt to the mid single digits while maintaining the EBIT margin in the high single digits. RIO RANCHO: Has Stipulation for Cash Collateral Until July 31 ------------------------------------------------------------- Rio Rancho Super Mall, LLC, and Wilshire State Bank have entered into a third stipulation authorizing the Debtor to use cash collateral through July 31, 2011, to make payments for post- petition operating expenses, in accordance with an amended budget. Debtor may not exceed in any period any budgeted line item in excess of 15% without prior written consent of WSB. As adequate protection, the Debtor will, among others, make monthly payments of $35,000 to the Debtor. WSB is also granted a replacement lien upon all of the Debtor's post-petition collateral. To the extent that the adequate protection is insufficient, WSB will also have a superpriority administrative expense claim. A copy of the Third Stipulation allowing the use of cash collateral is available at: http://bankrupt.com/misc/riorancho.3rdccstipulastion.pdf WSB and the Debtor had previously entered into a Second Stipulation authorizing the Debtor to use cash collateral through June 30, 2011, which was approved by the Court on June 10, 2011. As of the Petition Date, WSB was owed $9,812,503.4f in principal amount, plus accrued interest of $172,889.89, and late charges of $10,000. Counsel for WSB may be reached at: John H. Choi, Esq. KIM, PARK, CHOI & YI 3435 Wilshire Blvd., Suite 1720 Los Angeles, CA 90010-2003 Moreno Valley, California-based Rio Rancho Supermall, LLC, owns, manages and operates a commercial property known as the Rio Rancho Super Mall that is utilized as an indoor swap-meet and retail mall. It filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-16835) on March 2, 2011. Thomas E. Kent, Esq., who has an office in Los Angeles, California, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $7,691,584 in assets and $12,253,866 in debts as of the Chapter 11 filing. RIO RANCHO: Agrees to Lift Stay for Wilshire Bank to Pursue Suit ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California approved a stipulation between Rio Rancho Super Mall LLC and Wilshire State Bank, resolving the bank's motion for relief from the automatic stay. The Bank will be granted relief from the automatic stay to prosecute the action in the Riverside County Superior Court initiated by the filing of a complaint on February 28, 2011, to completion and judgment as to all defendants in the Action. The Bank however will have the right to file and serve amended pleadings in the Action naming the Debtor as a defendant. The Bank may seek further relief from the automatic stay to prosecute the Action against the Debtor and its estate. Moreno Valley, California-based Rio Rancho Supermall, LLC, owns, manages and operates a commercial property known as the Rio Rancho Super Mall that is utilized as an indoor swap-meet and retail mall. It filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-16835) on March 2, 2011. Thomas E. Kent, Esq., who has an office in Los Angeles, California, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $7,691,584 in assets and $12,253,866 in debts as of the Chapter 11 filing. RIVER EAST: Bankruptcy Case Now Assigned to Judge Eugene R. Wedoff ------------------------------------------------------------------ Chief Judge Carol A. Doyle of the U.S. Bankruptcy Court for the Northern District of Illinois has transferred the Chapter 11 case of River East Plaza, LLC, to Judge Eugene R. Wedoff. The case was previously assigned to Judge Bruce W. Black. Chicago, Illinois-based River East Plaza, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-05141) on Feb. 10, 2011. Michael E. Gosman, Esq., at Whyte Hirschboeck Dudek S.C., serves as the Debtor's bankruptcy counsel. The Debtor disclosed $19,410,255 in assets and $45,268,651 in liabilities as of the Chapter 11 filing. RIVER EAST: Amends Plan to Change Secured Lender's Treatment ------------------------------------------------------------ River East Plaza, LLC, and its plan proponents Geneva Leasing Associates, Inc. and Geneva Investment Management Services, Inc., further amended the plan of reorganization and its accompanying disclosure statement. The Second Amended Plan, according to papers filed with the court, is required only because LNV Corporation, as lender, on June 14, 2011, made its election pursuant to Section 1111(b)(2) of the Bankruptcy Code, electing to have all of its claims treated as though they were secured claims as permitted under Section 1111(b)(2). As a result of Lender's 1111(b)(2) Election, the Allowed Class 2 Claims of Lender are unimpaired and therefore Lender is deemed to accept the Plan pursuant to Section 1126(f). The Second Amended Plan does not alter or revise the treatment of any Creditors other than the Lender as compared to the immediately preceding iteration of the Plan filed with the Court, according to the Debtor's counsel, Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin. Specifically, the Lender's Class 2 Claim will be treated as: (a) Lender's 1111(b)(2) Treatment. Unless the Lender chooses "Consensual Treatment," the Lender's Claims will be treated as: (i) Lender's Primary 1111(b)(2) Treatment. As of the Effective Date, an amount equal to the value of the development commonly known as River East Plaza located at 401-465 East Illinois Street, in Chicago, Illinois, subject to the Lender's Secured Claims, minus the "Reserve" will be invested by the Debtor in a treasury bond elected by the Lender as the collateral for the Lender's Replacement Lien and the sole source of payment for the Lender's Class 2 Claims, other than the Lender's Supplemental 1111(b)(2) Treatment. All interest and principal payments arising from the Treasury Bond will be payable to Lender until the Holder of the Class 2 Claim has received, in no more than 30 years, deferred cash payments totaling at least the full amount of the Class 2 Claimant's Allowed Secured Claim, of a value, as of the Effective Date, of the Lien that secures the Secured Claim. The Debtor will permit the Lender to select from at least two kinds of Treasury Bond, one of which will be a zero coupon bond bearing an imputed interest rate and another of which will be a 30-year Treasury note which will include a stream of interest payments made at stated intervals. (ii) Lender's Supplemental 1111(b)(2) Treatment. To the extent that the Secured Claims Reserve Account is determined to contain funds in excess of those needed to pay Allowed Senior Mechanics Lien Claims and Allowed Other Secured Claims, the Lender will be entitled to receive the excess amounts from the Secured Claims Reserve Account plus per annum interest from the Effective Date through the date that a supplemental payment of any excess amount is paid, with the applicable interest rate to be the per annum rate set forth in the Treasury Bond elected by the Lender. The Supplemental Payments will be made promptly when and as each Mechanics Lien Claim or Other Secured Claim is determined to be Allowed pursuant to a Final Order. To any extent that the Secured Claims Reserve Account does not contain sufficient funds to make all of the required Supplemental Payments, shortfall will be paid from the Lender's Deficiency Claim Set-Aside Account. The "Reserve" will mean an amount equal to: (i) the amount to be deposited in the Secured Claims Reserve Account, which amount will be equal to 150% of the amount of all Mechanics Lien Claims and the amount of all Other Secured Claims; and (ii) all unpaid real estate taxes on the Project accrued prepetition. Conversely, if the Reserve is insufficient to fund Distributions for all Allowed Class 3 Senior Mechanics Lien Claims, Allowed Class 4 Other Secured Claims and all Allowed Claims for unpaid real estate taxes on the Project accrued prepetition, then the Reorganized Debtor may fund the Distributions from the Lender's Deficiency Claim Set-Aside Account. The Reorganized Debtor will use the Clawback Payment to replenish the Reserve and complete the required Distributions to the Holders of the Allowed Claims entitled to be paid from the Reserve pursuant to the Plan. (b) Consensual Treatment. In lieu of the 1111(b)(2) treatment, the Lender may elect to accept this treatment and to not object to confirmation of this Plan: (i) The Lender will be paid on the Effective Date $13,500,000, representing $12,500,000 as the value of its collateral, plus an additional $1,000,000 settlement payment; and (ii) The Lender will receive 50% of the Supplemental Payments. The Lender will elect Consensual Treatment by providing written notice thereof to the Debtor and Geneva and filing the notice with the Court not later than June 30, 2011. (c) Satisfaction of Liens. On the Effective Date, all of the Lender's Liens on and interests in the Debtor's assets will be released and satisfied in exchange for the treatment granted to the Lender under the 1111(b)(2) and consensual treatment. On the Effective Date, the Lender will provide a satisfaction of mortgage and other documents necessary or appropriate to satisfy and release the Lender's mortgage on the Project and all of the pre-Effective Date Liens of the Lender and the Debtor's assets, other than the Lender's rights under the Plan. (d) Payment of Lender's Superpriority Claim. Irrespective of whether Lender is afforded Lender's 1111(b)(2) Treatment or chooses Consensual Treatment, upon the entry of the Confirmation Order, the Debtor will pay to the Lender the amount of its superpriority Claim based on the funds in an amount up to $185,000 advanced by the Lender to fund certain expenses of the Project and interest payable thereon, pursuant to the Court's order entered on June 23, 2011. The Geneva Entities are represented by: Forrest B. Lammiman, Esq. David L. Kane, Esq. MELTZER, PURTILL & STELLE LLC 300 South Wacker Drive, Suite 3500 Chicago, IL 60606 Tel: (312) 987-9900 Fax: (312) 987-9854 The Lender is represented by: Nicholas M. Miller, Esq. NEAL GERBER & EISENBERG LLP 2 North LaSalle Street, Suite 1700 Chicago, IL 60602 A full-text copy of the Second Amended Plan, dated June 23, 2011, is available for free at http://ResearchArchives.com/t/s?766f Chicago, Illinois-based River East Plaza, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-05141) on Feb. 10, 2011. Michael E. Gosman, Esq., at Whyte Hirschboeck Dudek S.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. RIVER ROAD: Wants PSAV's Continued Audiovisual Services Until 2016 ------------------------------------------------------------------ River Road Hotel Partners, LLC, asks the U.S. Bankruptcy Court for the Northern District of Illinois to approve a stipulation assuming the service contract. The stipulation was entered among Amalgamated Bank, as trustee of Longview Ultra Construction Loan Investment Fund, formerly known as Longview Ultra I Construction Loan Investment fund, in its capacity as administrative agent for itself and its co-lender U.S. Bank National Association, successor-in-interest to the Federal Deposit Insurance Corporation as receiver for San Diego national Bank, San Diego, California, and Audio Visual services Group, Inc., doing business as PSAV. The Debtor and PSAV are parties to certain service agreement for audiovisual services. Pursuant to the agreement, upon the effective date: -- PSAV's mechanic lien claim will be deemed an allowed senior mechanics claim in the amount of $54,262; -- the agreement will be deemed amended to make its expiration date July 13, 2016, and assumed and assigned to the plan transferee; -- PSAV will (i) deliver to the plan proponents a full and immediate release of the mechanics lien in recordable form; and (ii) file a motion to dismiss any related litigation with prejudice. 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. RIVER ROAD: Has Approval to Use Cash Collateral Until Oct. 12 ------------------------------------------------------------- Judge Bruce W. Black of the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, authorized River Road Hotel Partners, LLC, to use the cash collateral securing its prepetition indebtedness until Oct. 12, 2011. The cash collateral will be used to pay operating expenses of the hotel, including the hotel's employees, postpetition vendors, insurance, taxes and bankruptcy-related expenses, and in accordance with a budget. A further hearing on the Debtor's use of cash collateral will be held on Oct. 12, 2011, at 10:30 a.m. Objections to the Debtor's further use of cash collateral must be filed on or before Oct. 7, 2011. A full-text copy of the Cash Collateral Order with the budget is available for free at http://ResearchArchives.com/t/s?7672 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. ROBB & STUCKY: Seeks Approval of Bank of America Settlement ----------------------------------------------------------- Robb & Stucky Limited LLLP seeks approval of a Settlement and Release Agreement with Bank of America, N.A., Business Capital Division, in its capacity as revolving lender to the Debtor. As of the Petition Date, the Debtor was indebted to Lender in the amount of $20,024,787, plus certain then unmatured contingent obligations in the approximate amount of $150,000 relating to two unexpired letters of credit. Through negotiations between the Debtor and Lender, the Agreement has been reached, subject to this Court's approval, pursuant to which the parties seek to resolve and allow the claims of Lender. The Agreement provides: a. The Pre-Petition Lender Claims will be finally allowed as fully secured claims and will not be subject to objection, avoidance, reconsideration, setoff, surcharge, recoupment, subordination, recharacterization, disgorgement, or other challenge of any kind by the Debtor, the Committee or any creditor or party in interest in the Bankruptcy Case. b. Lender's claims arising under the DIP Loan Agreement and the Financing Order will be finally allowed as fully secured claims and shall not be subject to objection, avoidance, reconsideration, setoff, surcharge, recoupment, subordination, recharacterization, disgorgement, or other challenge of any kind by the Debtor, the Committee or any creditor or party in interest. c. The Debtor ratifies, acknowledges and consents to the Application of Proceeds and agrees that the Application of Proceeds was appropriate and authorized and will not be subject to objection, avoidance, reconsideration, setoff, surcharge, recoupment, subordination, refund, disgorgement, or other challenge of any kind. d. Lender will be entitled to segregate proceeds of the Sale in an aggregate amount equal to $652,070.10, which consists of $105,000 on account of the Remaining LC, $509,750 on account of treasury management obligations and exposure in respect of the Debtor's bank accounts maintained by Lender, and as an estimate of Lender's unpaid attorneys' fees and legal expenses that have accrued and may accrue in the future, plus $105,000 on account of the Remaining LC. e. In addition to the Lender Reserve, will continue to hold $157,400 as the "Garnishment Reserve Funds." f. To induce Lender to enter into the Agreement, each Estate Party representatives, officers, directors, members, successors and assigns and anyone claiming on behalf of, under or through the Debtor or the Estate, releases, acquits and forever discharges each Releasee from any and all Claims that any Estate Party has or ever has had against Lender in any capacity or the officers, directors, employees, agents, attorneys, representatives, and members of Lender based upon any act or failure to act, or any transaction entered into or concluded, on or before the date of the Agreement, or other facts now in existence, in each case whether such events, transactions or facts are known or unknown. g. After the Approval Order has been entered by the Bankruptcy Court and has become a Final Order, the remaining funds of the Debtor in bank accounts at Bank of America, N.A., may be maintained by the Debtor in such bank accounts subject to compliance with the applicable deposit account agreements and other documents governing such accounts. The Debtor believes that the expense, inconvenience and delay that would be caused by litigating Lender's claims, and the uncertainty of the prevailing on the merits in light of Lender's defenses, would not be in the best interests of the estate. Therefore, it is the belief of the Debtor that settlement of the Lender's claims would be in the best interests of the estate. Additionally, the Debtor is mindful of the additional administrative expenses that will be incurred in the event the Agreement is not approved. North American Bankard Objects North American Bankard, LLC, objects to the Settlement Agreement and Release Agreement between the Debtor and Bank of America N.A. Under the Settlement Motion, the Debtor seeks approval to grant BofA an exceptionally broad release that would have the effect of barring all claims that the Debtor has ever had against BofA through the date of Settlement and Release Agreement. However, those very same claims were surrendered by the Debtor under the terms of the DIP Financing Order. Accordingly, the net effect of the Settlement Motion is a "release" of claims against BofA which have already been extinguished and can never be brought by the Debtor. The Settlement Motion is entirely devoid of any description of the alleged controversy being compromised by the Settlement and Release Agreement. Rather, what they seek is tantamount to a "comfort order," having no legitimate purpose or meaningful effect on this bankruptcy case. Thus, in the absence of a real and substantial controversy between the Debtor and BofA, the Settlement Motion should be denied. North American Bankard is represented by: Scott L. Baena BILZIN SUMBERG BAENA PRICE & AXELROD LLP 1450 Brickell Avenue, Suite 2300 Miami, Florida 33131-3456 Tel: (305) 374-7580 E-mail: sbaena@bilzin.com About Robb & Stucky Sarasota, Florida-based Robb & Stucky Limited LLLP -- dba Robb & Stucky; Robb & Stucky Interiors; Fine Design Interiors, a division of Robb & Stucky; Robb & Stucky Patio; R&S Home of Fine Decorators; and Home of Fine Design by Robb & Stucky -- is a retailer of upscale, high-end, interior-design-driven home furnishings in the U.S. It filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-02801) on Feb. 18, 2011. Paul S. Singerman, Esq., and Jordi Guso, Esq., at Berger Singerman PA, serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., is the Debtor's advisor and Kevin Regan is the Debtor's chief restructuring officer. Bayshore Partners, LLC, is the Debtor's investment banker. AlixPartners, LLP, serves as the Debtor's communications consultants. Epiq Bankruptcy Solutions, LLC, serves as the Debtor's claims and notice agent. In its schedules, the Debtor disclosed $77,705,081 in assets and $91,859,125 in liabilities as of the Chapter 11 filing. Donald F. Walton, U.S. Trustee for Region 21, appointed the Official Committee of Unsecured Creditors in the Debtor's case. The Committee tapped Cooley LLP as its lead counsel; Broad and Cassel as its local bankruptcy counsel; and BDO USA LLP as its financial advisor. ROBB & STUCKY: CIRS Wants Additional Adequate Protection -------------------------------------------------------- CIRS Financing LLC and CIRS Management LLC ask the U.S. Bankruptcy Court for the Middle District of Florida for adequate protection pursuant to Section 363 of the Banktuptcy Code. The Collier Lenders are properly perfected secured lenders of Robb & Stucky Limited LLLP and are owed in excess of $14.6 million. Since the commencement of the Debtor's Chapter 11 case on February 18, 2011, the Debtor has been liquidating its estate. On March 9, 2011, the Court approved the sale of substantially all of the Debtor's assets to Hudson Capital Partners LLC and HYPERARMS LLC for approximately $30.9 million pursuant to a "going out of business" agency agreement. The proceeds of the sale were sufficient to pay in full all debts owing to Bank of America, N.A., in its capacities as the Debtor's prepetition first lien lender. Matthew C. Brown, Esq., at White & Case LLP, in Miami, Florida, says, however that after accounting for the expenses of liquidating the Debtor's estate through the use of the Collier Lenders' cash collateral, the Collier Lenders will not be paid in full. He notes that under the terms of the Interim DIP Orders, the Collier Lenders were only granted replacement liens that attached to the exact same assets that the Collier Lenders already had security over under their prepetition collateral package. "Thus, these replacement liens provide no adequate protection at all to the Collier Lenders," Mr. Brown contends. On March 9, 2011, in response to the lack of adequate protection, the Collier Lenders filed a request for adequate protection. Both the Official Committee of Unsecured Creditors and the Debtor argued that the request was premature since BofA had not yet been paid in full. At the conclusion of the hearing on the Initial Adequate Protection Request, the Court denied the request without prejudice. The Final DIP Order fully preserves the Collier Lenders' rights to reassert a request for adequate protection, as of the Petition Date. On June 22, 2011, the Debtor filed a motion to approve a settlement agreement with BofA pursuant to which the parties agreed that all claims and obligations of BofA under the DIP Agreement and the Final DIP Order DIP had been satisfied in full, thereby effectively terminating BofA's role in the Chapter 11 case. Mr. Brown points out that as a result of BofA's agreement that it has been paid in full and under the terms of the Final DIP Order, the Debtor's use of cash collateral is now subject to the consent and approval of the Collier Lenders. Accordingly, the request for adequate protection in connection with the Debtor's use of cash collateral is now unquestionably ripe, he asserts. In addition, Mr. Brown relates that the Debtor is currently operating under a 26-week budget approved by BofA. The Budget reflects substantial expenditures relating to the wind down of the Debtor's operations that are being funded through the use of the Collier Lenders' cash collateral. Given the direct impact that the expenditures under the Budget have had on the diminution of the Collier Lenders' cash collateral, and the fact that the Collier Lenders are expected to receive significantly less than full payment of their claims, it is without doubt that the Initial Replacement Liens under the Final DIP Order fail to provide the Collier Lenders with adequate protection for the Debtor's use of their cash collateral, Mr. Brown contends. About Robb & Stucky Sarasota, Florida-based Robb & Stucky Limited LLLP -- dba Robb & Stucky; Robb & Stucky Interiors; Fine Design Interiors, a division of Robb & Stucky; Robb & Stucky Patio; R&S Home of Fine Decorators; and Home of Fine Design by Robb & Stucky -- is a retailer of upscale, high-end, interior-design-driven home furnishings in the U.S. It filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-02801) on Feb. 18, 2011. Paul S. Singerman, Esq., and Jordi Guso, Esq., at Berger Singerman PA, serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., is the Debtor's advisor and Kevin Regan is the Debtor's chief restructuring officer. Bayshore Partners, LLC, is the Debtor's investment banker. AlixPartners, LLP, serves as the Debtor's communications consultants. Epiq Bankruptcy Solutions, LLC, serves as the Debtor's claims and notice agent. In its schedules, the Debtor disclosed $77,705,081 in assets and $91,859,125 in liabilities as of the Chapter 11 filing. Donald F. Walton, U.S. Trustee for Region 21, appointed the Official Committee of Unsecured Creditors in the Debtor's case. The Committee tapped Cooley LLP as its lead counsel; Broad and Cassel as its local bankruptcy counsel; and BDO USA LLP as its financial advisor. ROSSCO HOLDINGS: Plan Filing Period Further Extended to Sept. 30 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has approved the motion of Rossco Holdings, Inc., to further extending its exclusive periods to file a plan and to solicit acceptances of that plan through and including Sept. 30, 2011, and Oct. 31, 2011, respectively. About Rossco Holdings College Station, Texas-based Rossco Holdings, Inc., filed for Chapter 11 protection (Bankr. W.D. Tex. Case No. 10-60953) on Aug. 2, 2010. The new California Case No. of Rossco Holdings is LA10- 55951BB. David J Richardson, Esq., and Laura L Buchanan, Esq., at The Creditors' Law Group, represent the Debtor. The Debtor disclosed $28,415,681 in assets and $10,567,302 in liabilities as of the Petition Date. Affiliates Monte Nido Estates, LLC; LJR Properties, Ltd.; WM Properties, Ltd.; Colony Lodging, Inc.; and Rossco Plaza, Inc., filed separate Chapter 11 petitions. ROUND TABLE: Wants to Use Cash Collateral to Pay Professional Fees ------------------------------------------------------------------ The Hon. Roger Efremsky of the U.S. Bankruptcy Court for the Northern District of California will convene a hearing on July 13, 2011, at 2:00 p.m. to consider Round Table Pizza Inc., et al.'s request to use the cash collateral. Oppositions may be filed until the hearing. The Debtors will use the cash collateral to: a) fund the amounts as the Court may award and authorize to be paid in connection with the fee applications set for hearing on July 13, 2011; and b) to fund professional fees consistent with the Court's Knudsen order. The Debtors' motion for authorization, is brought out of an abundance of caution and in response to comments made by GECC / Prudential to the effect that since professional fees are not incorporated in the cash collateral budget, none may be paid. The Debtors submit that no further adequate protection is required to protect GECC/Prudential's interests, and that the Debtor must be authorized to use cash collateral to fund the professional fees as the Court authorizes. As presented in the Debtors' prior pleadings respecting cash collateral, the law contemplates restricting the Debtor's free use of cash only to the extent necessary to provide adequate protection for GECC/Prudential's interests. The Debtors had demonstrated that GECC/Prudential enjoys a very substantial equity cushion, eliminating any need for the provision of adequate protection. In addition, rather than having its interest imperiled by the bankruptcy process - thereby potentially giving rise to a right to adequate protection - GECC/Prudential's interest has been enhanced by the bankruptcy process through store closings and other initiatives. The Debtors note that after the commencement of the case, their EBITDA has increased by many millions of dollars and its cash on hand has increased to more than $6 million. 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. First Bankers Trust Services, Inc., appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel ROUND TABLE: First Bankers Appointed as Sole Trustee for ESOP ------------------------------------------------------------- The Hon. Roger Efremsky of the U.S. Bankruptcy Court for the Northern District of California authorized Round Table Pizza Inc., et al., to: a. appoint First Bankers Trust Services, Inc., as the sole discretionary, independent, and institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust and acknowledges that FBTS's sole and exclusive responsibility will be to the ESOP, its participants and beneficiaries, notwithstanding that its fees and expenses, including its professionals fees and expenses, are paid by the Debtor; b. amend the ESOP's plan document and adopt the new Trust Agreement for the ESOP as requested in the motion and in the form attached hereto as Exhibit A; c. enter into the engagement agreement with FBTS submitted to the Court and in the form attached hereto as Exhibit B; d. pay FBTS's yearly fee of $100,000 to serve as the sole discretionary, independent, and institutional Trustee for the ESOP, with the first such payment made within 30 days of this order; The decisions made by the ESOP fiduciaries with respect to the administration of the ESOP continue to be governed by the Employee Retirement Income Security Act of 1974. A full-text copy of the order and exhibits A and B are available for free at: http://bankrupt.com/misc/ROUNDTABLE_esoptrustee_order.pdf As reported in the Troubled Company Reporter on June 6, 2011, the Debtor related that ESOP is designed and intended as a benefit for Round Table's eligible employees and their beneficiaries. The ESOP participants and beneficiaries are beneficial owners of Round Table and the ESOP Trust is the legal owner of Round Table. GreatBanc Trust Company is the directed trustee of the ESOP; however, it has the responsibility under the Employee Retirement Income Security Act of 1974, as amended, to refrain from following the directions of the ESOP Administrative Committee if they are not proper under ERISA. According to the Debtors, as a realistic matter, adequate representation can be afforded the ESOP participants and beneficiaries only if the expenses of the ESOP trustee and the ESOP's professionals are afforded administrative expense priority. The Debtors added that a formal equity committee could be established, but Round Table believed it more appropriate simply and directly to grant the reasonable fees and costs of the ESOP Trustee and the ESOP's professionals administrative claim status. All of Round Table's capital stock is legally owned by the ESOP and the only person authorized to act on behalf of the ESOP - that is, the only equity holder - is the ESOP Trustee. The ESOP participants and beneficiaries simply have no legal ownership interest in the Round Table capital stock - they are beneficial owners of the stock. The TCR reported that Johanson Berenson LLP serves as an ESOP counsel. Johanson Berenson will advice Round Table's Employee Stock Option Plan to ensure that it appropriately addresses its duties. The ESOP has been Round Table's principal shareholder since the 1990s, and has been its sole shareholder for more than a decade. The ESOP is an independent appraiser valued Round Table at $45 million approximately one year ago. 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. ROUND TABLE: Wants Examiner Appointed to Probe Plan Feasibility --------------------------------------------------------------- Round Table Pizza Inc., et al., ask the U.S. Bankruptcy Court for the Northern District of California for permission to appoint a limited purpose examiner to investigate and report to the Court and the parties on two issues. The limited purpose examiner will evaluate and submit a report respecting: -- the financial feasibility of the June 9th Plan of Reorganization; and -- whether the management compensation regime contemplated by the June 9th Plan is appropriate. The Debtors believe that the June 9th Plan is clearly feasible, even if it involves a cram-down of GECC. At the status conference, counsel for the Committee expressed doubt on that subject, and indicated that her views might be altered had the Debtors retained a financial advisor to validate the financial feasibility of the June 9th Plan. The Debtors are doubtful that a professional it hires will have the persuasive effect suggested by Committee counsel, but acknowledges that the issue is an important one, about which an independent evaluation would likely prove helpful to the Court and the parties, especially if the evaluation could be obtained prior to the Disclosure Statement hearing. As disclosed, the Debtors' ordinary practice is to provide its managers with below-market base compensation, but to offer them incentive compensation to encourage them to achieve certain goals. Although the Debtors provided extensive disclosure on this issue, that disclosure has been consistently mischaracterized as self- interest by GECC/Prudential. That characterization has apparently affected the Court's thinking, since the Court volunteered the possibility that an examiner might inquire into management compensation. The Debtor hope that the limited purpose examiner will reduce rather than increase expenses by providing an objective baseline for one key issue and by avoiding unnecessary litigation over another. The Debtors believe that the investigative functions could best be accomplished by an insolvency professional with a strong finance and business background as Randy Sugarman, David Bradlow or Mohamed Poonja. The Debtors expect that the individual would not require the assistance of additional professionals. The Debtors submit that the prompt appointment of the limited purpose examiner would be in the best interests of creditors and the estate. The limited purpose examiner would be asked to submit its report prior to the Disclosure Statement hearing on July 28, 2011. 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. First Bankers Trust Services, Inc., appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel ROUND TABLE: GE Capital, Unsecureds Oppose Plan Disclosures ----------------------------------------------------------- General Electric Capital Corporation, as administrative agent and collateral agent for the lenders of the prepetition facility, asks the U.S. Bankruptcy Court for the Northern District of California deny the Disclosure Statement explaining Round Table Pizza Inc., et al.'s Plan of Reorganization dated June 9, 2011. The agent relates that as of April 30, the amount outstanding under the prepetition facility was $34,389,740, which includes principal, interest, fees and costs incurred. According to the agent, the Disclosure Statement fails to provide voting constituencies with the facts and information they need to make an informed and independent decision concerning the Plan. Instead, the Disclosure Statement uses false information, half-truths, fanciful opinions and baseless allegations to try to deflect focus from the Plan's inherent deficiencies and risks. The result is a product that misleads and obscures rather than illuminates and informs. In a separate filing, the Official Committee of Unsecured Creditors also asks the Court to disapprove the Disclosure Statement. The Committee states that Disclosure Statement cannot be approved because the Plan submitted by the Debtors is not confirmable on its face. Setting aside the numerous other deficiencies in the Plan and the Disclosure Statement, the treatment of general unsecured creditors provided in the Plan is illusory. Simply stated, the Debtors' proposal to begin payments to unsecured creditors after payment of bonus compensation to insider managers, and then only if and when, there is excess cash flow to pay unsecured creditors is no promise of payment at all. General Electric is represented by: Gregory O. Lunt, Esq. LATHAM & WATKINS LLP 355 South Grand Avenue Los Angeles, CA 90071-1560 Tel: (213) 485-1234 Fax: (213) 891-8763 E-mail: gregory.lunt@lw.com BINGHAM McCUTCHEN LLP William Bates, Esq. 1900 University Avenue East Palo Alto, CA 94303-2223 Tel: (650) 849-4400 Fax: (650) 849-4800 E-mail: bill.bates@bingham.com The Committee is represented by: Karol K. Denniston, Esq. Julia W. Brand, Esq. Michael C. Abel, Esq. BROWNSTEIN HYATT FARBER SCHRECK, LLP 2029 Century Park East, Suite 2100 Los Angeles, CA 90067-3007 Tel: (310) 500-4600 Fax: (310) 500-4602 E-mail: KDenniston@BHFS.com JBrand@BHFS.com MCAbel@BHFS.com The Chapter 11 Plan As reported in the Troubled Company Reporter on June 15, 2011, the Plan provides for these classification and treatment of claims: Class Creditors Treatment ----- --------- --------- 1 GECC/Prudential Interest only in 2011; interest (Owed approximately and 5% of principal each year $35 million secured by thereafter; fully due after 5 all assets) years; terms comparable to original Credit Facility terms 1B Other secured claim Payment, surrender of (Claims secured by collateral or other permissible assets of two Tahoe non-consensual treatment stores, seized from defaulted franchisee) 2 Priority Claims Paid in full on Effective Date ($256,000 obligation to (estimated October 1, 2011) the Employee Share Option Plan) 3A Unsecured claims up to Paid 50% of claim, amount up to $5,000 or who elect $2,500, on the Effective Date Class 3A treatment in full satisfaction of claim 3B Unsecured claims Paid in full with 3.25% greater than $5,000 or interest from February 9, 2011 who elect Class 3B through payments twice a year treatment of all Distributable Cash beginning in 2012, estimated to be completed in 2014 4 ESOP equity ownership Preserved intact, but no in Round Table funding for stock repurchases or additional contributions until all Class 3B claims are paid in full A full-text copy of the Disclosure Statement, dated June 9, 2011, is available for free at: http://bankrupt.com/misc/ROUNDTABLE_disclosure The Court will consider adequacy consider approval of the disclosure statement, including the objections, on July 28, at 10:00 a.m. 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. First Bankers Trust Services, Inc., appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel RUMSEY LAND: Court Approves Sale of Assets to Successful Bidders ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Colorado entered, on June 16, 2011, its order approving the sale of substantially all of the assets of Rumsey Land Co., LLC, to Confluence Resource Holdings, LLC, and Westside Investment Partners, Inc., the successful bidders or Pueblo Bank and Trust Company, as Back-Up Bidder. PB&T holds a first Deed of Trust on multiple properties of the Debtor, including the Evans Property. PB&T filed a claim for $5,640,292.72. Conflunce is the successful bidder for Lots A through D (the water rights of the Evans property; the water storage storage rights of the Evans property; the aggregate mining rights of the Evans property; the residual surface and development rights of the Evans parcel). If the Confluence Sale closes, Westside is the successful bidder for Lots E and F (the Nederland parcel and the Elizabeth parcel). If the Confluence Sale closes, proceeds of sale in the amount of $5,200,000 will be paid to PB&T in satisfaction of the secured portion of its claim. Denver, Colorado-based Rumsey Land Co., LLC, is a privately held company owning real property in Elizabeth, Nederland, and Evans, Colorado with water rights, gravel rights, and additional interests associated with the Evans Property. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 10-10691) on Jan. 15, 2010. Aaron A. Garber, Esq., Benjamin H. Shloss, Esq., and Lee M. Kutner, Esq., at Kutner Miller Brinen,P.C., in Denver, Colorado, assist the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and liabilities as of the Chapter 11 filing. SECOND CHANCE: Court Approves $5MM Settlement of Toyobo Dispute --------------------------------------------------------------- Chief Bankruptcy Judge James D. Gregg approved a settlement agreement in an adversary proceeding brought by James W. Boyd, the Trustee for Second Chance Body Armor, Inc., against Toyobo Co., Ltd., Toyobo America, Inc., Tadao Kuroki, Yoshinari Ohira, and Masakazu Saito. The settlement agreement contemplates a comprehensive mutual release of all claims in the adversary proceeding in exchange for a $5 million cash payment to the estate by the Toyobo Defendants and the withdrawal of Toyobo's proofs of claim in the bankruptcy case. The payment by Toyobo will occur if, and when, the settlement becomes final and the attendant order is nonappealable. As a result of the settlement, Toyobo will no longer be a party in interest in the bankruptcy case, and the adversary proceeding will be dismissed, ending years of contentious litigation. ASM Capital, L.P. and ASM Capital, II, L.P., holders of general unsecured claims totaling approximately $5.3 million, objected to the request. The litigation between the Trustee and the Toyobo Defendants has a long and complicated procedural history. On March 3, 2004, the National Association of Police Organizations, Inc., Thomas Callahan, and the Fort Myers, Florida Police Department filed a breach of warranty action against Second Chance and Toyobo in the Circuit Court for the County of Antrim, Michigan. The lawsuit alleged that bullet-resistant vests manufactured by Second Chance, which contained Zylon fiber produced by Toyobo, did not provide the necessary level of ballistic protection for the duration of Second Chance's five-year warranty period. On April 27, 2004, Second Chance filed a cross-complaint against Toyobo, alleging that the vest durability issues were caused by defects in the Zylon produced by Toyobo and its unexpected degradation under certain conditions. After Second Chance filed a voluntary chapter 11 petition, Toyobo removed the state court lawsuit to the United States District Court for the Western District of Michigan. On Jan. 10, 2005, the district court referred the lawsuit to the bankruptcy court as Adversary Proceeding 05-80019. After the case was removed, Second Chance and Toyobo resolved the dispute with the State Court Plaintiffs. A copy of the Court's July 5, 2011 Opinion is available at http://is.gd/EKwtolfrom Leagle.com. Based in Central Lake, Michigan, Second Chance Body Armor, Inc. -- http://www.secondchance.com/-- manufactured wearable and soft concealable body armor. The Company filed for Chapter 11 protection on Oct. 17, 2004 (Bankr. W.D. Mich. Case No. 04-12515) after recalling more than 130,000 vests made wholly of Zylon, but it did not recall vests made of Zylon blended with other protective fibers. Stephen B. Grow, Esq., at Warner Norcross & Judd, LLP, represented the Debtor. Daniel F. Gosch, Esq., at Dickinson Wright PLLC, represented the Official Committee of Unsecured Creditors. The Debtor's case converted to a Chapter 7 proceeding on Nov. 22, 2005. James W. Boyd, Esq., serves as the chapter 7 trustee and is represented by Ronald A. Schuknecht, Esq., at Lewis Schuknecht & Keilitz PC. When the Debtor filed for protection from its creditors, it estimated assets and liabilities of $10 million to $50 million. SEAHAWK DRILLING: Full-Payment Plan Set for Aug. 30 Hearing ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Seahawk Drilling Inc., which has sold its 20 shallow- water jackup rigs for $155 million, scheduled an Aug. 30 confirmation hearing for approval of the full-payment liquidating Chapter 11 plan. The bankruptcy judge in Corpus Christi, Texas, approved the disclosure statement at a July 7 hearing. Mr. Rochelle relates that for unsecured creditors with claims as much as $18 million, the Plan will pay in full, with pre- and post-bankruptcy interest. Litigation claimants, with claims as much as $4.5 million, will likewise be paid in full, the disclosure statement says. The excess after creditors are paid will go to shareholders. Because they are to receive a distribution, shareholders are entitled to vote on the plan. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. The Company and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11, 2011. Berry D. Spears, Esq., and Jonathan C. Bolton, Esq., at Fullbright & Jaworkski L.L.P., in Houston, serve as the Debtors' bankruptcy counsel. Shelby A. Jordan, Esq., and Nathaniel Peter Holzer, Esq. at Jordan, Hyden, Womble, Culbreth & Holzer, P.C., in Corpus Christi, Texas, serve as the Debtors' co-counsel. Alvarez and Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons & Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Judy A. Robbins, U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor- affiliates. Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the creditors committee. In its amended schedules, Seahawk Drilling disclosed $208,190,199 in assets and $438,458,460 in liabilities as of the petition date. Seahawk filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore, Inc. As reported by the Troubled Company Reporter on April 11, 2011, the Bankruptcy Court approved an Asset Purchase Agreement between Hercules Offshore and its wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling, pursuant to which Seahawk agreed to sell to Hercules, and Hercules agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and related assets, accounts receivable and cash and certain liabilities of Sellers in a transaction pursuant to Section 363 of the U.S. Bankruptcy Code. According to DBR Small Cap, the deal was valued at about $176 million when it received court approval. Based on previous TCR reports, the purchase price for the Acquisition will be funded by the issuance of roughly 22.3 million shares of Hercules Offshore common stock and cash consideration of $25 million, which will be used primarily to pay off Seahawk's Debtor-in-Possession loan. The number of shares of Hercules Offshore common stock to be issued will be proportionally reduced at closing, based on a fixed price of $3.36 per share, if the outstanding amount of the DIP loan exceeds $25 million, with the total cash consideration not to exceed $45 million. The deal closed on April 27, 2011. SHAP LLC: Lone Creditor Wins Dismissal of Chapter 11 Case --------------------------------------------------------- Bankruptcy Judge Thomas J. Tucker granted IberiaBank's request to dismiss the Chapter 11 case of Shap LLC because (1) the Debtor cannot obtain confirmation of its proposed Chapter 11 Plan; (2) the continuation of the Chapter 11 case would be futile; (3) as a result, there is cause to dismiss or convert this case under 11 U.S.C. Sec. 1112(b)(1); and (4) dismissal rather than conversion is in the best interests of creditors and the estate. A copy of Judge Tucker's July 8, 2011 Opinion is available at http://is.gd/SodTmbfrom Leagle.com. Shap LLC is a limited liability company with two members, which was formed in 2006 for the purpose of investing in real estate. Shap LLC commenced a Chapter 11 case (Bankr. E.D. Mich. Case No. 11-42819) on Feb. 4, 2011, listing under $1 million in both assets and debts. A copy of the Debtor's petition is available at http://bankrupt.com/misc/mieb11-42819.pdfat no additional charge. The Debtor's Schedule A indicates that the Debtor's only assets are nine vacant lots located in Florida, with a current value of $14,400. IberiaBank is the only creditor. The Debtor's Schedule D indicates that IberiaBank has a claim in the amount of $243,466, which is secured by a mortgage on the Florida Property, and that the unsecured portion of this claim is $229,066. IberiaBank has filed a proof of a claim in the amount of $277,482.75, stating that the amount of its secured claim (i.e., the value of its collateral) is $45,000 and the amount of its unsecured claim is $232,482. SIGNATURE STYLES: Spiegel Owner Takes Contract With Siriano ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the owner of the Spiegel catalogue changed its mind and decided to renew rather than terminate a contract with designer Christian Siriano. Upon filing under Chapter 11, the company immediately gave notice of its intention to terminate the agreement with New York-based Siriano. After paying Siriano $42,500 to cure defaults on the existing agreement, the contract will be extended to the end of the year. The settlement was approved last week by the bankruptcy court in Delaware. 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. 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. SIGNATURE STYLES: Hires Polsinelli Shughart as Counsel ------------------------------------------------------ Signature Styles LLC and its debtor affiliates sought and obtained authority from the U.S. Bankruptcy Court for the District of Delaware to employ Polsinelli Shughart PC as counsel nunc pro tunc to the Petition Date. Polsinelli Shughart received $75,000 as an evergreen retainer from the Debtors. The Debtors will pay Polsinelli Shughart for its services according to the firm's hourly rates: $250 to $500 per hour for shareholders; $175 to $325 per hour for associates and senior counsel; and $75 to $195 per hour for paraprofessionals. The primary professionals expected to represent the Debtors and their hourly rates are: Christopher A. Ward, Shareholder $425 per hour James E. Bird, Shareholder $425 per hour Justin K. Edelson, Associate $255 per hour Shanti M. Katona, Associate $255 per hour Lindsey M. Suprum, paralegal $185 per hour Christopher A. Ward, Esq., a member of Polsinelli Shughart, previously assured the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. 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. 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. SIGNATURE STYLES: Committee Taps Cooley LLP as Lead Counsel ----------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Signature Styles LLC and its Debtor affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to retain Cooley LLP as its lead counsel. The Committee needs Cooley to: (a) attend the meetings of the Committee; (b) review financial information furnished by the Debtors to the Committee; (c) negotiate the budget and the terms of the debtor-in- possession financing; (d) review and investigate the liens of purported secured parties; (e) review and investigate prepetition transactions in which the Debtors were involved; (f) confer with the Debtors' management and counsel; (g) coordinate efforts to sell or reorganize assets of the Debtors in a manner that maximizes the value for unsecured creditors; (h) review the Debtors' schedules, statements of financial affairs and business plan; (i) advise the Committee as to the ramifications regarding all of the Debtors' activities and motions before this Court; (j) file appropriate pleadings on behalf of the Committee; (k) review and analyze the Debtors' investment banker's work product and report to the Committee; (l) provide the Committee with legal advice in relation to the cases; (m) prepare various applications and memoranda of law submitted to the Court for consideration; (n) assist the Committee in negotiations with the Debtors and other parties-in-interest on the sale process and an exit strategy for these cases; and (o) perform such other legal services for the Committee as may be necessary or proper in these proceedings. Cooley will represent the Committee in coordination with The Rosner Firm, the Committee's proposed Delaware counsel. Cooley's fees will be based on its standard hourly rates. Jeffrey L. Cohen, Esq., a member of Cooley, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. 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. 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. SITEL LLC: Moody's Affirms 'B3' Corporate Family Rating ------------------------------------------------------- Moody's Investors Service affirmed Sitel, LLC's B3 Corporate Family Rating and the B1 and Caa2 ratings for the Company's senior secured credit facility and senior unsecured notes, respectively. The ratings were affirmed in conjunction with Sitel's amendments to a portion of its first lien credit agreement to extend the maturity by three years. The extended tranches of senior secured credit facilities were assigned B1 ratings. Moody's also changed the ratings outlook to negative from stable, reflecting the Company's high financial leverage and challenges in generating free cash flows. These ratings are assigned: -- $31 million first lien revolving credit due 2016 -- B1, (LGD 3, 33%) -- $227 million first lien term loan due 2017 -- B1, (LGD 3, 33%) The following ratings are affirmed: -- Corporate family rating -- B3 Probability of Default rating -- B3 -- $54 million first lien revolving credit due 2013 -- B1 (LGD assessments changed to LGD 3, 33% from LGD 2, 27%) -- $130 million first lien term loan due 2014 -- B1 (LGD assessments changed to LGD 3, 33% from LGD 2, 27%) -- $293 million 11.5% Senior Unsecured Notes due 2018 -- Caa2 (LGD assessments changed to LGD 5, 79% from LGD 5, 81%) Outlook action: The rating outlook changed to negative from stable RATINGS RATIONALE The negative outlook reflects Moody's expectations that Sitel's high leverage and weak cash flows will persist over the next 12 to 18 months. The outlook additionally considers the Company's challenges in generating operating cash flow growth amid an uneven economic recovery and the elevated levels of capital spending needed to support business growth. Moody's notes that the revised levels of financial covenants under the recently executed amendments to its credit agreement afford the Company additional flexibility to execute a turnaround over the next 12 months. However, Sitel's increasing reliance on revolving lines of credit as a result of expected free cash flow shortfalls could potentially weaken the Company's liquidity as $54 million of the $85 million in revolving loan commitments expire in January 2013. The B3 Corporate Family Rating reflects Sitel's high financial risk, including high leverage and weak cash flow generation, and its high business risk from operating in a highly competitive industry. The rating is supported by the Company's good operating scale and well-diversified business across end-market verticals. Though it faces stiff competition, the Company has a good market position and is among the leading providers of outsourced customer care services. Moody's could downgrade Sitel's ratings if operating performance falls short of expectations resulting in an erosion in liquidity or operating cushions under revised financial covenants. Ratings could be downgraded if Total Debt/EBITDA leverage (Moody's adjusted) approaches 6.0x while free cash flow remains negative. Additionally, ratings could come under pressure if near term debt maturities are not addressed well in advance of their expiry. Conversely, Moody's could raise Sitel's ratings if revenue and EBITDA growth leads to free cash flow generation in the range of 3% to 5% of total debt, and if the Company can sustain Moody's adjusted Debt/EBITDA leverage of less than 4.5x. The last rating action on Sitel was on February 16, 2010, when Moody's affirmed Sitel's B3 CFR and assigned Caa2 rating to the Company's $300 million senior notes offering. The principal methodology used in rating Sitel LLC was the Global Business & Consumer Service Industry Rating Methodology Industry Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009 (and/or) the Government-Related Issuers methodology published in July 2010. Headquartered in Nashville, Tennessee, Sitel is a leading customer care and business process outsourcing vendor with annual revenues of $1.3 billion in the LTM 1Q 2011 period. SOCIETY OF JESUS: Northwest's Jesuits Chapter 11 Plan Confirmed --------------------------------------------------------------- Judge Elizabeth L. Perris confirmed on July 7, 2011, The Society of Jesus, Oregon Province, or the Jesuits' Chapter 11 Plan of Reorganization, which paves the way for 534 creditors to receive their share of a $167.8 million settlement, the Oregonian reports. A settlement was previously reached in the Jesuits' bankruptcy case to resolve the claims of hundreds of victims of clergy sexual abuse. Pfau Cochran Vertetis Amala PLLC, in Seattle, Washington, which represents more than a hundred of the claimants, posted on its Web site at http://www.pcvalaw.com/a statement regarding the settlement. According to the Oregonian, the Jesuits will start sending checks for $48.1 million to creditors sometime on August. Insurers will subsequently send payments totaling approximately $120 million in the summer. During the confirmation hearing, a last minute objection was made by the counsel of Beaverton's Jesuit High, Tacoma's Bellarmine Preparatory, Spokane's Gonzaga Preparatory and Seattle Preparatory because he wanted an agreement put in the Plan releasing the high schools from any legal claim that they were part of the Oregon Province. The Official Committee of Unsecured Creditors opposed the objection. After a break, Judge Perris gave the settlement trust a deadline to start any litigation against the high schools of up to nine months. Only one lawsuit is allowed and is limited only to the district court or the bankruptcy court. Kathy Mendez, one of the 525 creditors, says that she felt relieved that the long and emotional process had come to an end, the Oregonian discloses. "It was time to get this put to rest," Blaine Tamaki, Ms. Mendez's lawyer said to the Oregonian. "Because there's a lot of attorneys' fees being charged, and it's time to put a stop to the legal fees and get the claimants their money." Bryan Denson, the Oregonian's reporter, says that lawyers estimate that they will receive about 33 to 40 percent of the Settlement Amount. In a news release to the victims of abuse, the Very Rev. Patrick Lee said: "On behalf of the Oregon Province, I want to express our most sincere sorrow for the pain and hurt caused by the actions of a few men who did not live up to their vows. We will continue to pray for all those who are hurting and hope that today's announcement brings all involved one-step closer to the lasting healing they so richly deserve." Judge Perris says, as quoted by the Oregonian, that the Plan is not a cure-all for the harm done to the victims but that it's "the best we've got." Society of Jesus, Oregon Province, filed for Chapter 11 bankruptcy protection (Bankr. D. Ore. Case No. 09-30938) on Feb. 17, 2009. Alex I. Poust, Esq., Howard M. Levine, Esq., and Thomas W. Stilley, Esq., at Sussman Shank LLP, serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed total assets at $4,820,386 and total debts at $61,775,829 at the Petition Date. SOUTH BAY EXPRESSWAY: Property Not Exempt From Taxation ------------------------------------------------------- South Bay Expressway, L.P. and California Transportation Ventures, Inc., v. County of San Diego, Adv. Proc. No. 10-90497 (Bankr. S.D. Calif.), seeks recovery of almost $14 million in property taxes paid to the County between 2007-2010 and wants the County to assess no further taxes on its property. The Debtor's property is a possessory leasehold interest in a California Streets and Highways Code Sec. 143 privately financed transportation demonstration project consisting of the toll road portion of State Route 125, commonly known as the South Bay Expressway. The Debtor asserts that Sec. 143(o) deems its leasehold interest to be public property exempt from taxation. The Debtor asks the Court to declare that all taxes assessed against its leasehold interest are void as a matter of law, and that the County may not assess further taxes against its leasehold interest. The County opposes the motion and requests entry of a judgment in its favor, asserting that the tax exemption created in Sec. 143(o) is unconstitutional under Article XIII of the California Constitution. The Attorney General for the State of California, through the California Department of Transportation, intervened and filed a statement in opposition, arguing that Sec. 143(o) does not apply to the Debtor's leasehold interest so there is no need to reach the constitutional issue. Alternatively, Caltrans argues the Court's ruling of unconstitutionality should be limited to the statute as applied to the Debtor's leasehold interest. In a July 7, 2011 Memorandum Decision, Bankruptcy Judge Louise De Carl Adler ruled that Sec. 143(o) applies to the Debtor's leasehold interest, but that it is facially unconstitutional. Accordingly, Judge Adler denied the Debtor's motion and entered judgment in favor of the County. A copy of Judge Adler's decision is available at http://is.gd/GiaMAOfrom Leagle.com. About South Bay Expressway South Bay Expressway, L.P., dba San Diego Expressway, L.P., filed for Chapter 11 (Bankr. S.D. Calif. Case No. 10-04516) on March 22, 2010. Its affiliate, California Transportation Ventures Inc., also filed for bankruptcy. The Debtors developed and operate a four lane, nine mile express toll road in Southern California commonly referred to as the South Bay Expressway or State Road 125. Both estimated assets and debts of $500 million to $1 billion in their bankruptcy petitions. Robert Pilmer, Esq., at Kirkland & Ellis LLP, represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is auditor and tax advisor. Imperial Capital LLC is financial advisor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The Debtors say that as of the bankruptcy filing, they have roughly $640 million in book value of total assets and roughly $570 million in book value of total liabilities. On April 14, 2011, the Court confirmed the Debtor's Third Amended Joint Plan of Reorganization, and approved a global settlement with the support of all major creditor constituencies. STANDARD STEEL: Moody's Upgrades CFR to B3; Outlook Stable ---------------------------------------------------------- Moody's Investors Service upgraded Standard Steel, LLC's ratings including its corporate family and probability of default ratings to B3 from Caa1. The outlook is stable. These ratings were upgraded: -- Corporate family rating, to B3 from Caa1 -- Probability of default rating, to B3 from Caa1 -- $140 million senior secured notes due 2015, to B3 (LGD-4, 54%) from Caa1 (LGD-4, 53%) RATINGS RATIONALE The ratings upgrade reflects Moody's expectation of continued improvements in revenues and operating profitability. Standard Steel is well positioned to benefit from improving industry conditions in the rail car manufacturing business, where continued growth in overall railroad freight volume will likely result in robust demand growth for new railcars. In addition, the company's aftermarket business as a percentage of revenues has increased which will add greater revenue stability, partially offsetting the cyclicality inherent in the railcar market. The stable outlook anticipates that Standard Steel will maintain a good liquidity profile supported by positive free cash flow generation and improvement in interest coverage metrics to the 1.0 times level over the next twelve to eighteen months. Although not anticipated over the near term, factors that could lead to a positive outlook or stronger ratings include continued positive free cash flow generation, lowering and sustaining debt/EBITDA towards 4.5 times and demonstrating EBIT/interest coverage in excess of 1.3 times while maintaining a good liquidity profile. Developments that could establish negative pressure on the ratings include loss of key contracts and/or customers, negative free cash flow, an elevation of debt/EBITDA towards 6.0 times and/or EBIT/interest remaining well below the 1.0 times level through 2012. On June 27, 2011, Standard Steel announced that it would be sold to Sumitomo Metals Industries, Ltd. for $340 million from its current owners, Trimaran Capital Partners. The transaction is expected to close before year-end pending regulatory approvals. Moody's anticipates that the acquisition could result in the repayment of Standard Steel's outstanding debt. Terms outlined in the debt agreements contain change of control language which is expected to provide lenders the option of terminating revolver commitments and declaring outstanding loans due and payable as well as requiring the company to offer to repurchase the senior secured notes upon completion of the sale to Sumitomo. If the transaction closes and Standard Steel's rated debt is fully repaid upon closing of the transaction, Moody's ratings would be expected to be withdrawn. The principal methodology used in rating Standard Steel, LLC was the Global Manufacturing Industry Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Standard Steel, LLC, based in Burnham, PA, manufactures forged wheels and axles used in freight and passenger rail cars and locomotives. The company had last twelve months ended April 3, 2011 revenues of approximately $213 million. STATION CASINOS: Deadline to Submit Administrative Claims July 18 ----------------------------------------------------------------- On June 17, 2011, the Effective Date of the First Amended Joint Chapter 11 Plan of Reorganization for Station Casinos, Inc. and its Debtor affiliates and the Prepackaged Joint Plan of Reorganization for the April 12 Subsidiary Debtors and Green Valley Ranch Gaming, LLC, occurred. Pursuant to the confirmed SCI Plan and the April 12 Debtors' Plan, the deadline to submit administrative claims against the SCI Debtors, that arose on or after December 2, 2010, through and including June 17, 2011, is July 18, 2011. The deadline to submit Administrative Claims against the Subsidiary Debtors or GVR is also July 18. The deadline to object to an administrative claim is October 15, 2011. The deadline to file final professional fee applications with respect to the Debtors whose Effective Dates have occurred is August 16, 2011. About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. Station Casinos Inc., together with its affiliates, filed for Chapter 11 protection on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Milbank, Tweed, Hadley & McCloy LLP serves as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP is local counsel. Lazard Freres & Co. LLC is investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. Brad E. Scheler, Esq., and Bonnie Steingart, Esq., at Fried, Frank, Shriver, Harris & Jacobson LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Green Valley Ranch Gaming, LLC and thirty other affiliates of Station Casinos Inc. sought bankruptcy protection under Chapter 11 protection on April 12, 2011. First to file among the April 12 Debtors was Auburn Development, LLC (Bankr. D. Nev. Case No. 11- 51188). The April 12 Debtors filed a prepackaged plan of reorganization together with their Chapter 11 petitions to reorganize debts and consummate the sale of the Green Valley Ranch Resort, Spa & Casino to a group of buyers led by the Fertitta family. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)a STATION CASINOS: GV Ranch Claims Bar Date Set for Aug. 12 --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada has established: * August 12, 2011 at 4:00 p.m. prevailing Pacific Time as the deadline to file a proof of claim for all persons and entities holding or wishing to assert a claim that arose prepetition against any of the April 12 Debtors (Green Valley Ranch Gaming, LLC and thirty other affiliates of Station Casinos Inc.); * the later of the General Bar Date or 30 days after a claimant is served with notice that any Debtor has amended its Schedules, reducing, deleting, or changing the status of a claim not previously scheduled as disputed, contingent or unliquidated of the claimant, as the bar date for filing a proof of claim with respect to the amended scheduled claim; * the later of the General Bar Date or 30 days after the entry of any order authorizing the rejection of an executory contract or unexpired lease as the bar date by which a proof of claim relating to a Debtor's rejection of the contract or lease must be filed; and * October 9, 2011 at 4:00 p.m. prevailing Pacific Time as the deadline for all governmental units to file a proof of claim in the Chapter 11 Cases. The April 12 Debtors will retain the right to: (a) dispute, or assert offsets or defenses against, any filed claim or any claim listed or reflected in their Schedules of Assets and Liabilities as disputed, contingent, or unliquidated as to nature, amount, liability, classification, or otherwise; or (b) subsequently designate any claim as disputed, contingent, or unliquidated; provided, however, that if the April 12 Debtors amend the Schedules to reduce the undisputed, non-contingent and liquidated amounts or to change the nature, status or classification of a claim against a Debtor reflected therein, then the affected claimant will have until the Amended Schedule Bar Date to file a proof of claim or to amend any previously filed proof of claim with respect to the amended scheduled claim. The Court's Order will not preclude the April 12 Debtors from objecting to any claim that is scheduled as disputed, contingent, or unliquidated or for which a proof of claim has been filed, on any grounds. About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. Station Casinos Inc., together with its affiliates, filed for Chapter 11 protection on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Milbank, Tweed, Hadley & McCloy LLP serves as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP is local counsel. Lazard Freres & Co. LLC is investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. Brad E. Scheler, Esq., and Bonnie Steingart, Esq., at Fried, Frank, Shriver, Harris & Jacobson LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Green Valley Ranch Gaming, LLC and thirty other affiliates of Station Casinos Inc. sought bankruptcy protection under Chapter 11 protection on April 12, 2011. First to file among the April 12 Debtors was Auburn Development, LLC (Bankr. D. Nev. Case No. 11- 51188). The April 12 Debtors filed a prepackaged plan of reorganization together with their Chapter 11 petitions to reorganize debts and consummate the sale of the Green Valley Ranch Resort, Spa & Casino to a group of buyers led by the Fertitta family. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)a STATION CASINOS: GV Committee Proposes to Double GLC Flat Fee ------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the Chapter 11 case of Green Valley Ranch Gaming, LLC, previously sought the Bankruptcy Court's authority to retain GLC Advisors & Co., LLC, as its financial advisor, nunc pro tunc to May 6, 2011. The Committee sought to pay the firm $150,000. In a supplemental motion, the Committee seeks the Court's authority to modify the proposed terms of GLC Advisors' employment to a flat fee of $300,000. August B. Landis, acting U.S. Trustee for Region 17, points out that Section 1103(a) of the Bankruptcy Code, in combination with Section 328 of the Bankruptcy Code, authorizes the Committee to employ professionals, with Court approval, "on any reasonable terms and conditions of employment, including on a retainer, on an hourly basis, on a fixed or percentage fee basis, or on a contingent fee basis." However, the Committee is asking a "flat $300,000 advisory fee." The U.S. Trustee tells the Court that the preferred method of compensation for professionals in the 9th Circuit is the "lodestar approach". "Since the 'flat $300,000 advisory fee' would be subject to review under Sections 330 and 331 anyway, [GLC Advisors'] employment should be on the lodestar approach and not a flat fee," the U.S. Trustee contends. It adds that "flat fee employment would just unnecessarily complicate the review." Accordingly, the U.S. Trustee asks the Court to enter an order employing GLC Advisors on an hourly basis. About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. Station Casinos Inc., together with its affiliates, filed for Chapter 11 protection on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Milbank, Tweed, Hadley & McCloy LLP serves as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP is local counsel. Lazard Freres & Co. LLC is investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. Brad E. Scheler, Esq., and Bonnie Steingart, Esq., at Fried, Frank, Shriver, Harris & Jacobson LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Green Valley Ranch Gaming, LLC and thirty other affiliates of Station Casinos Inc. sought bankruptcy protection under Chapter 11 protection on April 12, 2011. First to file among the April 12 Debtors was Auburn Development, LLC (Bankr. D. Nev. Case No. 11- 51188). The April 12 Debtors filed a prepackaged plan of reorganization together with their Chapter 11 petitions to reorganize debts and consummate the sale of the Green Valley Ranch Resort, Spa & Casino to a group of buyers led by the Fertitta family. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)a STERLING ESTATES: Can Access Cash Collateral Until July 29 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois approved on July 1, 2011, the second stipulation of Debtor Sterling Estates (Delaware), LLC, and CF MH Sterling, as successor to ORIX Capital Markets, LLC, authorizing the Debtor to use cash collateral until 5:00 p.m. on July 29, 2011. As adequate protection, Lender is granted a replacement lien upon the same property and assets which secured the Pre-Petition Obligations, including property and assets acquired by the Debtor post-petition. As further adequate protection, Lender is also granted a super-priority administrative expense claim. A further hearing on the cash collateral motion is set for July 29, 2011, at 10:30 a.m. Counsel for Lender CF MH Sterling LLC may be reached at: Louis P. Rochkind, Esq. JAFFE RAITT HEUER & WEISS, PC 27777 Franklin Road, Suite 2500 Southfield, MI 48035-8214 Tel: (248) 351-3000 About Sterling Estates Chicago, Illinois-based Sterling Estates (Delaware), LLC, dba Sterling Estates Manufactured Home Community, owns and operates a manufactured home community, a park consisting of pre-manufactured homes placed on individual sites or "pads" that are leased out to customers. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-22319) on May 17, 2010. Paul M. Bauch, Esq., at Bauch & Michaels LLC, in Chicago, represents the Debtor. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. STERLING ESTATES: Court Grants Lender Motion to Withdraw ORIX Plan ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois has approved the oral motion of CF MH Sterling LLC, as successor to ORIX Capital Markets, LLC, to withdraw the Chapter 11 Plan filed by ORIX. As reported in the TCR on May 16, 2011, the Creditor plan proposed a sale of the Debtor's real property and other assets. About Sterling Estates Chicago, Illinois-based Sterling Estates (Delaware), LLC, dba Sterling Estates Manufactured Home Community, owns and operates a manufactured home community, a park consisting of pre-manufactured homes placed on individual sites or "pads" that are leased out to customers. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-22319) on May 17, 2010. Paul M. Bauch, Esq., at Bauch & Michaels LLC, in Chicago, represents the Debtor. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. SUPERIOR ACQUISITIONS: Case Converted to Chapter 7; Plan Withdrawn ------------------------------------------------------------------ The Hon. Alan Jaroslovsky of the U.S. Bankruptcy Court for the Northern District of California converted the Chapter 11 case of Superior Acquisitions, Inc. to one under Chapter 7 of the Bankruptcy Code. Linda S. Green, Chapter 11 trustee in the Debtor's estate filed the motion to converted the Debtor's case. The Office of the U.S. Trustee is directed to promptly appoint a Chapter 7 Trustee. Separately, the Debtor notified the Court that it has withdrawn its proposed chapter 11 plan of reorganization. About Superior Acquisitions Superior Acquisitions, Inc., in Lakeport, California, owns real property and rents it out to the California Department of Motor Vehicles. Superior Acquisitions filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 10-13730) on Sept. 28, 2010, with Judge Alan Jaroslovsky presiding. The Debtor disclosed $13,889,530 in assets and $14,866,437 in liabilities as of the Chapter 11 filing. The Law Offices of Michael C. Fallon -- mcfallon@fallonlaw.net -- served as bankruptcy counsel to the Debtor. Linda S. Green was later appointed as Chapter 11 trustee. She is represented by John H. MacConaghy, Esq. -- macclaw@macbarlaw.com -- at MacConaghy and Barnier, as counsel. The Chapter 11 trustee has tapped Bachecki Crom & Co. LLP as her accountant. Superior Acquisitions filed with the Bankruptcy Court an Amended Chapter 11 Plan of Reorganization dated June 2, 2011. TABS 2005-2: DBRS Confirms Ratings on Various Notes at 'C' ---------------------------------------------------------- DBRS has confirmed the ratings of various notes issued by TABS 2005-2 Oakville Limited (TABS or the Transaction). The Class A-1 Notes, Class A-2 Notes and Class B Notes (collectively, the Notes) issued by TABS have each been confirmed at C (sf). The Transaction is a managed cash flow collateralized debt obligation of asset-backed securities that consists primarily of U.S. residential mortgage-backed securities. All of the underlying ABS were originally investment grade, with most being rated BBB or BBB (low). As a result of poor performance of the Transaction's underlying securities, the Notes were previously downgraded to C (sf). DBRS expects that the Class A-1 Notes will suffer a partial loss of principal, and it is expected that the Class A-2 Notes and Class B Notes will not receive any return of initial principal over the remaining term of the Transaction. TELMARK PROPERTIES: High Court Winds Up Firm Over Rent Debts ------------------------------------------------------------ Kenilworth Weekly News reports that the High Court has wound up Telmark Properties, formerly Smarter Housing, after failing to protect rents and deposits belonging to students and landlords around Leamington. Telmark Properties repeatedly breached agreements with both landlords and tenants and failed to deal properly with its tenants' deposits, Kenilworth Weekly News says. The company, according to Kenilworth Weekly News, was wound up on public interest grounds after an investigation by the Insolvency Service. "Money that should have been protected was instead used to fund this company's business," the report quotes Company investigations supervisor Chris Mayhew as saying. "Student tenants who could least afford to have their money unfairly withheld and who believed their rent deposits were secure, suffered as a result." According to Kenilworth Weekly News, grounds for winding up the company were that it: -- failed to protect deposits received from tenants in accordance with an authorised scheme; -- failed to collect and or pay rent totalling at least GBP204,346 to landlords; -- failed to file accounts and annual returns; -- failed to maintain proper accounts and present these to the investigator; -- was insolvent and had been abandoned, having effectively ceased to trade in August 2010. The petition to wind up the company in the public interest was presented in the High Court on March 21. About Telmark Properties Telmark Properties is a letting agency. The company was incorporated in July 2005 with the name Smarter Housing. Registered in Althorpe Street, Leamington, it changed its name to Telmark Properties Limited in August 2010. TEN X CAPITAL: Cole Taylor Bank Wants to Prohibit Cash Use ---------------------------------------------------------- Cole Taylor Bank is asking the Bankruptcy Court to prohibit Ten X Capital Partners III, LLC (Series B) from using its cash collateral and requiring the Debtor to conduct an accounting of all cash collateral and sequester cash collateral in an account at the Bank. The Bank said the Debtor is in default of its loans. The Debtor has not made a payment of principal or interest since February 2011, and continues to collect the cash collateral generated from its property. As of July 11, 2011, the current outstanding amount due under the so-called Restated Mortgage Note is $5,678,487.79 plus legal fees and costs, and under the so-called TI Revolver is $922,754.47 plus legal fees and costs. The Bank said the bankruptcy filing is essentially a two-party dispute between the Debtor and Bank and its sole purpose was to confer federal jurisdiction upon a foreclosure proceeding to the detriment of the Bank. On Jan. 17, 2006, the Bank made a $5,400,000 commercial mortgage loan to the Debtor to finance the acquisition of the Property. On Jan. 31, 2007, the Debtor entered into a Revolving Loan Agreement with the Bank for the purposes of refinancing the Mortgage Loan, partially financing tenant improvements at the Property, and purchasing and installing fiber optic cable in downtown Chicago, the Oak Brook area, and the Northbrook area. The rents, issues and profits generated from the Debtor's operation of the Property constitute cash collateral pursuant to 11 U.S.C. Sec. 363(a). Through a series of subsequently recorded memoranda of modification, the maturity date for the Restated Mortgage Note and TI Revolver was extended through and including July 1, 2011. Since March 1, 2011, the Debtor has failed to remit to the Bank the monthly payments of principal and interest due under the Restated Mortgage Note and TI Revolver. The Debtor's failure to make the required payments constitutes an Event of Default under the Mortgage Loan Instruments and Restated Loan Instruments. On May 5, 2011, the Bank filed a foreclosure action in the Circuit Court of Cook County, Chancery Division, Case No. 11 CH 16548. At the Bank's behest, the state court appointed a receiver for the Property on June 30, 2011. Cole Taylor Bank is represented by: Barry A. Chatz, Esq. George P. Apostolides, Esq. Kevin H. Morse, Esq. ARNSTEIN & LEHR LLP 120 S. Riverside Plaza, Suite 1200 Chicago, IL 60606 Tel: (312) 876-7100 Fax: (312) 876-0288 E-mail: bachatz@arnstein.com gpapostolides@arnstein.com Ten X Capital Partners III, LLC (Series B) operates an industrial real property located at 601 W. Polk Street, Chicago, Illinois, as a telecom hotel and storage facility. Ten X Capital Partners III, LLC (Series B) filed a voluntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-27294) on June 30, 2011. Judge John H. Squires presides over the case. The Debtor is represented by Chester H. Foster, Jr., Esq., at Foster & Smith. 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 John W. Branch, manager of RM Advisors, LLC. TEN X CAPITAL: Court Wants Chapter 11 Plan by Oct. 28 ----------------------------------------------------- The Bankruptcy Court directed Ten X Capital Partners III, LLC (Series B) to file a plan of reorganization and disclosure statement by Oct. 28, 2011. Ten X Capital Partners III, LLC (Series B) operates an industrial real property located at 601 W. Polk Street, Chicago, Illinois, as a telecom hotel and storage facility. Ten X Capital Partners III, LLC (Series B) filed a voluntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-27294) on June 30, 2011. Judge John H. Squires presides over the case. The Debtor is represented by Chester H. Foster, Jr., Esq., at Foster & Smith. 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 John W. Branch, manager of RM Advisors, LLC. TWEETER OPCO: Buyer Schultze Liable for WARN Act Claims ------------------------------------------------------- Bankruptcy Judge Mary F. Walrath held that Schultze Asset Management, LLC, is liable with Tweeter Opco LLC as a "single employer" for alleged violations under the Worker Adjustment and Retraining Notification Act. Judge Walrath said the plaintiffs in a class action suit have shown common ownership, common directors and officers and the de facto exercise of control by Schultze over the Debtor. The judge said the latter factor was particularly egregious because Schultze exercised control over the Debtor's hiring and firing decisions. Andrew D'Amico, Eric Welter and Franklin Hemmings on their own behalf and on behalf of all other persons similarly situated, v. Tweeter Opco, LLC, and Schultze Asset Management, LLC, Adv. Proc. No. 08-51800 (Bankr. D. Del.), was filed on the same day Tweeter Opco filed for Chapter 11 bankruptcy. The Plaintiffs' class consists of former employees of the Debtor who were fired without the 60-days' written notice required by the WARN Act. Pursuant to a stipulation, the proceeding is stayed against the Debtor but continuing it as to Schultze. A copy of Judge Walrath's July 8, 2011 Memorandum Opinion is available at http://is.gd/joQIBzfrom Leagle.com. About Tweeter Opco Tweeter Opco LLC, Tweeter Newco LLC, Tweeter Tivoli LLC, and Tweeter Intellectual Property LLC were formed by Schultze Asset Management LLC to acquire the assets of Tweeter Home Entertainment Group, Inc. In July 2007, Old Tweeter sold substantially all of their assets to Tweeter Newco for $38 million. Tweeter Opco and its affiliates filed for Chapter 11 protection on Nov. 5, 2008 (Bankr. D. Del. Case No. 08-12646). Lawyers at Richards, Layton & Finger, P.A., assisted the company in its restructuring effort. The company estimated assets of $50 million to $100 million and debts of $50 million to $100 million. Bankruptcy Judge Mary Walrath converted the Opco Debtors' Chapter 11 cases to Chapter 7 liquidation proceedings effective Dec. 5, 2008. George L. Miller at accounting firm Miller Coffey Tate was appointed to serve as Chapter 7 trustee. The firm may be reached at: MILLER COFFEY TATE LLP 8 Penn Center, Suite 950 1628 John F. Kennedy Boulevard Philadelphia, PA, 19103 Tel: 215-561-0950 Fax: 215-561-0330 E-mail: info@millercoffeytate.com About Tweeter Home Based in Canton, Mass., Tweeter Home Entertainment Group Inc. -- http://www.tweeter.com/-- sold mid-to high-end audio and video consumer electronics products. Tweeter and seven of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case Nos. 07-10787 through 07-10796) on June 11, 2007. Lawyers at Skadden, Arps, Slate, Meagher & Flom, LLP, represented the Debtors. Kurtzman Carson Consultants LLC acted as the Debtors' claims and noticing agent. Lawyers at Pachulski Stang Ziehl & Jones LLP and at Otterbourg, Steindler, Houston & Rosen, P.C., represented the Official Committee of Unsecured Creditors. As of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and total debts of $190,417,285. UNITED GILSONITE: James Patton to Handle Future Asbestos Claimants ------------------------------------------------------------------ The Hon. Robert N. Opel of the U.S. Bankruptcy Court for the Middle District of Pennsylvania appointed James L. Patton, Jr., as legal representative for future asbestos claimants in the Chapter 11 case of United Gilsonite Laboratories. The Debtor related that Mr. Patton is chairman of Young Conaway Stargatt & Taylor, LLP and a partner in the bankruptcy and corporate restructuring group of the firm. Mr. Patton has been ranked as a leading attorney in his field in a range of legal publications. Mr. Patton, will represent future holders of personal injury or wrongful death claims based on alleged exposure to asbestos and asbestos containing products. In furtherance of a comprehensive resolution to its alleged- asbestos related liabilities, the Debtor contemplates that it will negotiate, confirm and consummate a chapter 11 plan of reorganization that will include an injunction to channel Asbestos PI Claims and any demands asserted by the Future Claimants to a properly funded trust pursuant to section 524(g) of the Bankruptcy Code. The Debtor believes that the formation of a trust as part of UGL's plan of reorganization will provide a mechanism for the fair and efficient payment of present asbestos- related claims and future asbestos-related demands and that the related channeling injunction will protect the Debtor from any future liability related to asbestos claims. The Debtor will compensate Mr. Patton at $900 per hour. To the best of the Debtor's knowledge, Mr. Patton is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About United Gilsonite Scranton, Pennsylvania-based United Gilsonite Laboratories, a Pennsylvania Corporation, is a small family-owned corporation engaged in the manufacturing of wood and masonry finishing products and paint sundries. It filed for Chapter 11 bankruptcy protection on March 23, 2011 (Bankr. M.D. Pa. Case No. 11-02032). Mark B. Conlan, Esq., at Gibbons P.C., serves as the Debtor's bankruptcy counsel. Joseph M. Alu & Associates P.C. serves as accountants. K&L Gates LLP serves as special insurance counsel. Lenahan & Dempsey, P.C., Wilbraham, Lawler & Buba, and Steptoe & Johnson LLP serve as professionals in the ordinary course of the Debtor's business. Garden City Group is the claims and notice agent. The Company disclosed $21,084,962 in assets and $3,008,688 in liabilities as of the Chapter 11 filing. Roberta A. DeAngelis, United States Trustee for Region 2, appointed five creditors to serve on an Official Committee of Unsecured Creditors of United Gilsonite Laboratories. Montgomery, McCracken, Walker & Rhoads, LLP, represents the Committee. URBAN WEST: Has Until Aug. 22 to Propose Chapter 11 Plan -------------------------------------------------------- The Hon. Dennis Montali of the U.S. Bankruptcy Court for the Northern District of California extended Urban West Rincon Developers II, LLC, and Rincon Developers Phase II, LLC's exclusive periods to file and solicit acceptances for the proposed chapter 11 plan until Aug. 22, 2011, and Oct. 30, respectively. As reported in the Troubled Company Reporter on June 29, the Debtors sought an extension of the exclusive period for them (i) to file a plan of reorganization until Nov. 4, and (ii) to obtain acceptances for that plan until Jan. 4, 2012. The Court ordered that if the Debtors will seek any further extension of the extended periods, they must file before July 29. The hearing regarding the new motion to extend will proceed on Aug. 22, or other date during the week of Aug. 22, that the Court is available. About Urban West Rincon Developers II San Francisco, California-based Urban West Rincon Developers II, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-30924) on March 9, 2011. Heinz Binder, Esq., and Roya Shakoori, Esq., at the Law Offices of Binder and Malter, serves as the Debtor's bankruptcy counsel. UTGR INC: Court Withholds Final Decree, Wants Status Report ----------------------------------------------------------- Bankruptcy Judge Arthur N. Votolato directed UTGR, Inc., d/b/a Twin River, et al., to file a status report by July 31, 2011. According to the Court's order, beginning in late 2010, and thereafter, the bankruptcy professionals in the case filed Applications for Final Compensation for services rendered, and a hearing on the applications was held on March 22, 2011. On May 23, 2011, the Debtors filed a Motion for Entry of Final Decree, stating that the Plan of Reorganization had been fully consummated -- except for decision on the professional fees -- and that the claims reconciliation process was complete. While the two motions were under advisement and being considered by the Court, several reports concerning the Debtors appeared in The Providence Journal raising issues previously unknown to the Court, but which are clearly of interest as to what is left to be accomplished in these cases, including the Debtors' often stated completion of their goals and initiatives. Because the reports are coming to the Court's attention only through non-judicial sources, Judge Votolato said ordinary prudence calls for a closer look at references to possible conflict of interest, and the Debtors' and the Rhode Island Department of Business Regulation's reluctance to disclose ownership interests or possible conflicts that were not addressed during the pre-confirmation part of the case. Because these issues are not being brought to the Court's attention through traditional channels (i.e., from the Debtors), Judge Votolato said he will temporarily withhold entry of Final Decree and will not rule on any pending applications or motions. "Although the Court is mindful of the sua sponte nature of this inquiry, it is what it is, and with no questions coming from any other quarter, either insider or adversarial, this Court still has the sometimes unpleasant obligation to ask questions, when no one else does," Judge Votolato said. A copy of Judge Votolato's June 28, 2011 Order is available at http://is.gd/IEsohlfrom Leagle.com About UTGR Inc. UTGR Inc. is the operator of the Twin River racetrack-casino in Lincoln, Rhode Island. UTGR filed for Chapter 11 on June 23 (Bankr. D. Rhode Island Case No. 09-12418). The Debtors selected Jager Smith P.C. as counsel, and Winograd, Shine & Zacks P.C. as their co-counsel. It also hired Zolfo Cooper LLC as bankruptcy consultants and special financial advisors. Donlin Recano served as claims and notice agent. In its bankruptcy petition, the Company estimated assets of less than $500 million and debt exceeding $500 million. UTGR implemented its reorganization plan on Nov. 5, 2010. While UTGR had obtained bankruptcy court confirmation of the Plan in June 2010, it needed the state to adopt legislation to implement the reorganization. VENSURE FEDERAL: NCUA Orders Closure Due to Insolvency ------------------------------------------------------ The National Credit Union Administration liquidated Vensure Federal Credit Union of Mesa, Ariz., on July 8, 2011. NCUA made the decision to close Vensure FCU and discontinue its operation after determining the credit union was insolvent and has no prospects for restoring viable operations. At the time of liquidation the credit union served 140 members and had deposits of approximately $8.1 million. Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA's Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the credit union within one week. Vensure Federal Credit Union provided financial services to employees of Vensure Employer Services, its clients, and other corporate entities. Vensure FCU is the twelfth federally-insured credit union liquidation in 2011. VICTOR VALLEY: Prime Healthcare to Buy Hospital for $35-Mil. ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that although Prime Healthcare Services Foundation Inc. didn't win the initial auction to buy Victor Valley Community Hospital, it stands to walk out of bankruptcy court today, July 13, as the new owner of the 101-bed nonprofit hospital in Victorville, California. Mr. Rochelle recounts that the Debtor held an auction in November where someone else won the auction. Prime was the backup bidder. When the winner didn't complete the acquisition, Victor Valley filed papers asking the bankruptcy judge to approve the sale to Prime for $35 million, including debt assumption. The hospital, according to the report, said it expects to net almost $21 million from the sale. About Victor Valley Community Hospital Victor Valley Community Hospital -- http://www.vvch.org/-- operates a 101 acute care bed facility in Victor Valley, in Southern California. Victor Valley Community Hospital filed for Chapter 11 protection on Sept. 13, 2010 (Bankr. C.D. Calif. Case No. 10-39537 The Debtor estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. Debt includes $4.5 million owed to the bank lender. Unsecured creditors are owed $16.5 million. Mary D. Lane, Esq., Samuel R. Maizel, Esq., and Scotta E. McFarland, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, represent the Debtor as counsel. VITRO SAB: Beats Back 12 Renewed Involuntary Petitions ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Vitro SAB won a skirmish with holders of some of the $1.2 billion in defaulted bonds. The bankruptcy judge in Dallas wrote an opinion on July 8 denying a request by bondholders to reconsider rulings in April refusing to put a dozen Vitro subsidiaries into Chapter 11 involuntarily. In his opinion last week, U.S. Bankruptcy Judge Harlin "Cooter" Hale said that the April rulings weren't "manifest error." Judge Hale told Vitro to file papers by July 13 specifying the amount of fees it seeks to recover as a result of beating back the involuntary petitions. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced a voluntary judicial reorganization proceeding under the Ley de Concursos Mercantiles before the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, the United Mexican States. On June 30, 2011, Vitro Packaging filed a chapter 15 petition (Bankr. N.D. Tex. Case No. 11-34224). Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro Packaging de Mexico S.A. de C.V. The Foreign Representatives are represented by David M. Bennett, Esq., Katharine E. Battaia, Esq., and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz, Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley & McCloy LLP. Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P. Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok, LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq., Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert LLP. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC, is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. VITRO SAB: Bondholders Not Required to Disclose Holdings -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that, in a short opinion on July 7, U.S. Bankruptcy Judge Harlin "Cooter" Hale concluded that an ad hoc group of bondholders isn't obliged to disclose details about purchases and sales of Vitro securities. With courts divided on the issue, Judge Hale took sides with bankruptcy judges having a narrow view of the disclosure requirement. Mr. Rochelle relates that Vitro filed papers in U.S. Bankruptcy Court in Dallas charging the bondholder group with failure to abide by Bankruptcy Rule 2019, which requires a "committee representing more than one creditor" to provide details about trading in company securities. But Judge Hale concluded that the group isn't a "committee" because the members represent only themselves and don't purport to advocate the interest of anyone else. Mr. Rochelle notes that the U.S. Supreme Court approved an amendment to Rule 2019 to become effective in December. The revised rule is intended to create uniformity by clarifying who is and who isn't required to disclose trading details. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced a voluntary judicial reorganization proceeding under the Ley de Concursos Mercantiles before the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, the United Mexican States. On June 30, 2011, Vitro Packaging filed a chapter 15 petition (Bankr. N.D. Tex. Case No. 11-34224). Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro Packaging de Mexico S.A. de C.V. The Foreign Representatives are represented by David M. Bennett, Esq., Katharine E. Battaia, Esq., and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz, Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley & McCloy LLP. Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P. Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok, LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq., Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert LLP. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC, is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. VITRO SAB: Noteholders Skeptical Mediation Will Lead to Accord -------------------------------------------------------------- The Ad Hoc Group of Vitro Noteholders said in court filings Thursday they are ready and willing to meet with Vitro, S.A.B. de C.V. and to engage in settlement negotiations. However, the Noteholders are skeptical that going directly to mediation will lead to a settlement because the parties have not had any conversations for several months. According to the Noteholders group, each side blames the other for the lack of dialog, but assessing blame is hardly productive at this point. It is unusual to introduce a third-party (i.e., a mediator) into the equation prior to there being direct communications between the two sides. The group said its members are a different group than the last one that had settlement discussions with Vitro, and believes that the first step in any constructive resolution of this matter would be to have a face-to- face meeting of principals. This should be done before any mediation. The Noteholders suggested that both sides meet during the week of July 18 or July 25. The meeting, the group said, should be a settlement discussion under Federal Rule of Evidence 408, and would take place in the New York metropolitan area. The meeting would consist of decision-makers, not their assignees. In the case of Vitro, it should be a representative of Vitro's board of directors and a representative of the Sada family, Vitro's largest stockholder. The Noteholders group also said former Judge James Garrity is an acceptable mediator to the extent he is available. In its request, Vitro proposed that mediation will commence on a mutually convenient date on or after July 27, 2011, and not later than August __, 2011, and will continue from time to time as may be acceptable to the Mediator and the Participants. Vitro Packaging de Mexico S.A. de C.V., commenced together with its Chapter 15 filing, an adversary proceeding seeking a temporary restraining order and preliminary injunction against ACP Master, Ltd.; Ad Hoc Group of Vitro Noteholders; Aurelius Capital Master, Ltd.; Aurelius Convergence Master, Ltd.; Elliott International L.P.; The Liverpool Limited Partnership; and Does 1-1000, to bar them from initiating any action to collect on the debts during the "gap period," while the Court is considering whether to grant recognition of the Voluntary Mexican Proceeding as a foreign main proceeding under sections 1515 and 1517 of the Bankruptcy Code. The Noteholders objected to the request. On July 7, the Court granted in part Vitro Packaging's motion to compel mediation. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. On June 30, 2011, Vitro Packaging de Mexico S.A. de C.V. filed a chapter 15 petition (Bankr. N.D. Tex. Case No. 11-34224). Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro Packaging de Mexico S.A. de C.V. The Foreign Representatives are represented by: David M. Bennett, Esq. Katharine E. Battaia, Esq. Cassandra A. Sepanik, Esq. THOMPSON & KNIGHT LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201 Tel: (214) 969-1700 Fax: (214) 969-1751 E-mail: david.bennett@tklaw.com katie.richter@tklaw.com cassandra.sepanik@tklaw.com - and - Andrew M. Leblanc, Esq. MILBANK, TWEED, HADLEY & MCCLOY LLP 1850 K Street, NW, Suite 1100 Washington, DC 20006 Telephone: (212) 835-7500 Facsimile: (212) 263-7586 E-mail: aleblanc@milbank.com - and - Risa M. Rosenberg, Esq. Thomas J. Matz, Esq. Jeremy C. Hollembeak, Esq. MILBANK, TWEED, HADLEY & MCCLOY LLP 1 Chase Manhattan Plaza New York, NY 10005-1413 Telephone: (212) 530-5000 Facsimile: (212) 530-5219 E-mail: rrosenberg@milbank.com tmatz@milbank.com jhollembeak@milbank.com Attorneys for the Ad Hoc Group of Vitro Noteholders are: Jeff P. Prostok, Esq. Lynda L. Lankford FORSHEY & PROSTOK, LLP 777 Main St., Suite 1290 Fort Worth, TX 76102 Telephone: (817) 877-8855 Facsimile: (817) 877-4151 E-mail: jprostok@forsheyprostok.com llankford@forsheyprostok.com - and - Allan S. Brilliant, Esq. Benjamin E. Rosenberg, Esq. Craig P. Druehl, Esq. Dennis H. Hranitzky, Esq. DECHERT LLP 1095 Avenue of the Americas New York, NY 10036 Telephone: (212) 698-3500 Facsimile: (212) 698-3599 E-mail: allan.brilliant@dechert.com benjamin.rosenberg@dechert.com craig.druehl@dechert.com Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC, is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. VITRO SAB: Credit Agricole Wants to Pursue Claims v. Norteamerica ----------------------------------------------------------------- Credit Agricole Corporate and Investment Bank on Thursday told the Bankruptcy Court in Dallas, Texas, it wants no part of the mediation requested by Vitro, S.A.B. de C.V. Credit Agricole clarified that it is only a creditor of Vitro Norteamerica S.A. de C.V., and not (a) a party to any adversary proceeding, the chapter 15 Case of either Vitro SAB or Vitro Packaging de Mexico de S.A. de C.V., the concurso mercantil filed by either Vitro or VPM; or (b) a direct or guarantee (or otherwise co-obligated) creditor of either Vitro or VPM. Credit Agricole said it cannot free itself from the litigation entanglements "so earnestly pursued by Vitro and the representatives of its noteholders from which dispute Vitro admits it is entirely estranged." Credit Agricole contends it should be relieved of any restraint to pursue remedies other than as to Vitro and VPM and accordingly, should not be delayed or detained by the mediation motion. Credit Agricole is represented by: Andrew Brozman, Esq. Jeff Butler, Esq. Wendy Rosenthal, Esq. CLIFFORD CHANCE US LLP 31 West 52nd Street New York, NY 10019-6131 Telephone: 212-878-8000 Facsimile: 212-878-8375 E-mail: andrew.brozman@cliffordchance.com jeff.butler@cliffordchance.com wendy.rosenthal@CliffordChance.com - and - Holland N. O'Neil, Esq. Virgil Ochoa, Esq. GARDERE WYNNE SEWELL LLP 1601 Elm Street, Suite 3000 Dallas, Texas 75201-4761 Telephone: 214-999-3000 Facsimile: 214-999-4667 E-mail: honeil@gardere.com vochoa@gardere.com About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced a voluntary judicial reorganization proceeding under the Ley de Concursos Mercantiles before the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, the United Mexican States. On June 30, 2011, Vitro Packaging filed a chapter 15 petition (Bankr. N.D. Tex. Case No. 11-34224). Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro Packaging de Mexico S.A. de C.V. The Foreign Representatives are represented by David M. Bennett, Esq., Katharine E. Battaia, Esq., and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz, Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley & McCloy LLP. Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P. Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok, LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq., Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert LLP. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC, is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. WALL STREET: S&P Assigns 'B' Corporate Credit Rating ---------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B' corporate credit rating to Wall Street Systems Holdings Inc., a U.S. provider of treasury and foreign exchange trade processing software and services and a wholly owned subsidiary of ION Investment Group (unrated). The outlook is stable. "At the same time, we assigned a 'B' rating to the company's $25 million senior secured revolving credit facility (RCF) due 2016 and the $200 million first-lien term loan due 2017. The recovery rating is '3', indicating our expectation for meaningful (50%-70%) recovery in the event of a payment default," S&P related. "We also assigned a 'B-' rating to the company's $125 million second-lien term loan due 2018. The recovery rating is '5', indicating our expectation for a modest (10%-30%) recovery in the event of a payment default," S&P added. "The rating reflects Wall Street Systems' very narrow market position and a highly leveraged financial profile," said Standard & Poor's credit analyst William Backus. "Our expectation that the company will continue to generate stable revenues and positive free cash flow partially offsets those factors." WESTLAKE EVERGREEN-DE: Needs More Time to File Schedules -------------------------------------------------------- Westlake Evergreen-DE, LLC. and its affiliated Debtors ask the Bankruptcy Court for more time to file the remainder of their schedules of assets and liabilities and statement of financial affairs. The remainder of Debtors' Schedules are due on July 12, 2011. The Debtors seek an additional 17 days -- until July 29 -- to prepare and file the schedules. Evergreen Plaza Investment-DE, LLC; 15352 Vanowen Street Apartments-DE, LLC; Normandie Court III-DE, LLC; Westlake Evergreen-DE, LLC, jointly own, as Tenants-in-Common, 100% of real property located at 3637-3755 E. Thousand Oaks Blvd., Thousand Oaks, California. The percentage of ownership is: Evergreen (54.31%), Normandie (10.74%), Westlake (25%), and Vanowen (9.95%). The four entities jointly operate the Real Property pursuant to a Tenancy in Common Agreement executed between them on Oct. 28, 2004. The Real Property is a commercial complex of about 38 units with 21 units rented at this time. The Real Property is managed by Kaufman Properties, owned by Mark Kaufman, and JDS Real Estate, Inc. owned by Jason Schwetz. The leasing broker is JDS Real Estate, Inc. who is presently showing the spaces. The four entities filed for Chapter 11 bankruptcy on June 28, 2011, to stop a foreclosure sale by secured creditor LNR Partners. Evergreen Plaza Investment-DE (Bankr. C.D. Calif. Case No. 11- 17858); Westlake Evergreen-DE, LLC (Bankr. C.D. Calif. Case No. 11-17874); 15352 Vanowen Street Apartments-DE (Bankr. C.D. Calif. Case No. 11-17870); and Normandie Court III-DE (Bankr. C.D. Calif. Case No. 11-17872), estimated $10 million to $50 million in both assets and debts in their petitions. Judge Victoria Kaufman presides over the cases. The law offices of M. Jonathan Hayes serve as the Debtors' counsel. The Debtors value the Real Property at roughly $13 million. Total secured debt exceeds $17 million. Each of the Debtors said their case is a single asset case. WESTLAKE EVERGREEN-DE: Sec. 341 Creditors Meeting Set for Aug. 9 ---------------------------------------------------------------- The United States Trustee for the Central District of California will convene a meeting of creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy cases of Evergreen Plaza Investment-DE, LLC; 15352 Vanowen Street Apartments-DE, LLC; Normandie Court III- DE, LLC; Westlake Evergreen-DE, LLC, on Aug. 9, 2011 at 10:00 a.m. to 12:00 p.m. at RM 105, 21051 Warner Center Lane, in Woodland Hills, California. Evergreen Plaza Investment-DE, LLC; 15352 Vanowen Street Apartments-DE, LLC; Normandie Court III-DE, LLC; Westlake Evergreen-DE, LLC, jointly own, as Tenants-in-Common, 100% of real property located at 3637-3755 E. Thousand Oaks Blvd., Thousand Oaks, California. The percentage of ownership is: Evergreen (54.31%), Normandie (10.74%), Westlake (25%), and Vanowen (9.95%). The four entities jointly operate the Real Property pursuant to a Tenancy in Common Agreement executed between them on Oct. 28, 2004. The Real Property is a commercial complex of about 38 units with 21 units rented at this time. The Real Property is managed by Kaufman Properties, owned by Mark Kaufman, and JDS Real Estate, Inc. owned by Jason Schwetz. The leasing broker is JDS Real Estate, Inc. who is presently showing the spaces. The four entities filed for Chapter 11 bankruptcy on June 28, 2011, to stop a foreclosure sale by secured creditor LNR Partners. Evergreen Plaza Investment-DE (Bankr. C.D. Calif. Case No. 11- 17858); Westlake Evergreen-DE, LLC (Bankr. C.D. Calif. Case No. 11-17874); 15352 Vanowen Street Apartments-DE (Bankr. C.D. Calif. Case No. 11-17870); and Normandie Court III-DE (Bankr. C.D. Calif. Case No. 11-17872), estimated $10 million to $50 million in both assets and debts in their petitions. The cases were originally assigned to different bankruptcy judges but were later transferred to Judge Victoria Kaufman. The law offices of M. Jonathan Hayes serve as the Debtors' counsel. The Debtors value the Real Property at roughly $13 million. Total secured debt exceeds $17 million. Each of the Debtors said their case is a single asset case. WESTPORT PROPERTY: Court Cites Flaws in Plan Outline ---------------------------------------------------- Bankruptcy Judge Thomas J. Tucker declined to grant preliminary approval of disclosure statement explaining the Combined Plan of Reorganization and Disclosure Statement filed by Westport Property Management, Ltd., and its affiliates, citing problems that the Debtors must correct. The revised plan outline was due to be filed no later than July 6, 2011. A copy of the Court's June 30, 2011 Order is available at http://is.gd/DI4rF7from Leagle.com. Westport Property Management, Ltd., based in Saint Clair Shores, Michigan, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 10-75810) on Nov. 29, 2010. Mark H. Shapiro, Esq. -- shapiro@steinbergshapiro.com -- at Steinberg Shapiro & Clark, serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated under $50,000 in assets and between $1 million and $10 million in debts. The petition was signed by Jerry W. Harmon, president. WII COMPONENTS: Suspending Filing of Reports with SEC ----------------------------------------------------- WII Components, Inc., filed a Form 15 notifying of its suspension of its duty under Section 15(d) to file reports required by Section 13(a) of the Securities Exchange Act of 1934 with respect to its 10% senior notes due 2012. Pursuant to Rule 12h-3, the Company is suspending reporting because there are currently less than 300 holders of record of the notes. There are no holders of the notes as of July 8, 2011. 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. * Gay Bankruptcy Won't Be Going to U.S. Supreme Court ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a California bankruptcy won't be the test case regarding constitutionality of the federal Defense of Marriage Act. The U.S. Trustee notified the bankruptcy court last week that he is withdrawing his appeal from a June 13 opinion by bankruptcy judges in California concluding that DOMA violates the Constitution to the extent it prohibits couples in a legal, same- sex marriages from filing joint bankruptcy petitions. The U.S. Trustee recited how the U.S. Attorney General decided earlier this year that DOMA violated the Equal Protection Clause in the Constitution. The case is In re Balas, 11-17831, U.S. Bankruptcy Court, Central District of California (Los Angeles). * Upcoming Meetings, Conferences and Seminars --------------------------------------------- July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* 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 ***