/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110715.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, July 15, 2011, Vol. 15, No. 194 Headlines 1031 TAX: Clients Lose Bid for Class Certification 2001 PROPERTIES: Secured Creditors Want Lift Stay to Foreclose 3480 E.: Voluntary Chapter 11 Case Summary 5TH AVENUE: Closes $49-Mil. Sale of All Assets to KHP Hotel ADELPHIA COMMS: FPL Group Can No Longer Raise Safe Harbor Defense ALLIED IRISH: DBRS Downgrades Subordinated Debt Ratings to 'D' AMBAC FINANCIAL: Targets October Plan Confirmation Hearings AMBAC FINANCIAL: Proposes KCC as Plan Voting Agent AMERICAN APPAREL: Receives Non-Compliance Notice from NYSE Amex AMERICAN COMMERCE: Incurs $69,610 Net Loss in May 31 Quarter AMERICAN COUNSELLING: Case Summary & 3 Largest Unsecured Creditors ANDRE'S FRENCH: Case Summary & 20 Largest Unsecured Creditors APEX DIGITAL: Court OKs Lewis Brisbois as Corporate Counsel ARCHBROOK LAGUNA: Court Approves $50-Mil. Ch. 11 Financing ARTECITY PARK: Settlement Deal With Corus on Plan Approved ARTECITY PARK: Court Confirms Liquidating Plan ARTECITY PARK: ST Residential Wins Auction, Takes Over Project AUGUSTA APARTMENTS: Trustee Wants to Auction Real Property Assets BATAA/KIERLAND: Hearing Set July 25 for Plan Disclosures BARNES BAY: Resort Sets Aug. 17 Plan Confirmation BEACHWAY DEVELOPMENT: Voluntary Chapter 11 Case Summary BERNARD L MADOFF: Traders May Have Been Overpaying for Claims BERNARD L MADOFF: 1st Distribution of 4.1% to Customers Okayed BERNARD L MADOFF: Feeder Fund Investors Appeal Claims Ruling BESO LLC: Closes Business in Effort to Save Money BEST BUY PLAZA: Landlord Files Bare-Bones Chapter 11 BOCA BRIDGE: Plan Solicitation Exclusivity Expires Sept. 10 BV GREENFIELD: Case Summary & 20 Largest Unsecured Creditors CAESARS ENTERTAINMENT: Board Okays Amended Incentive Plan CAPMARK FINANCIAL: Schedules Aug. 19 Plan Confirmation Hearing CAPMARK FINANCIAL: Judge Rejects $2M Claim Over Mortgage Servicing CARGO TRANSPORTATION: Hires Englander to Probe Claims vs. Banks CARGO TRANSPORTATION: DLA Piper as Committee's New Counsel Okayed CATHOLIC CHURCH: Victims Accept Wilm. Deal Ahead Confirmation CHAMELEON CUSTOM: Case Summary & 20 Largest Unsecured Creditors CHOCTAW RESORT: Cut by S&P to 'B-' as FBI Investigates CHURCH AT SOUTH: Receiver Motion Denied Due to Bankruptcy Filing CHURCH AT SOUTH: Case Summary & 4 Largest Unsecured Creditors CIT GROUP: To Prepay $500 Million of First Lien Term Loan COLONY CAPITAL: In Receivership; Brenner Real Named Receiver COPPER KING: Skye and Partners to Acquire Utah Copper Project CORDIA COMMS: Thermo Credit Insists on Objections to Assets Sale COUNTRYVIEW MHC: Has Access to Cash Collateral Until July 30 COUNTRYVIEW MHC: BofA Wants Chapter 11 Case Dismissed DAVID'S WESTMINSTER: Case Summary & 20 Largest Unsecured Creditors DEB SHOPS: Projects 13-Week Negative Cash Flow DEER TRACK: Owners File For Chapter 11 Bankruptcy Protection DENNIS BROWN: Voluntary Chapter 11 Case Summary DIABETES AMERICA: Court Rejects Apelles Plea for Ch. 11 Trustee DIABETES AMERICA: Hearing Set For July 15 on Lease Extension Plea DIAMOND SPRINGS: Bankruptcy Plan Not Confirmable DIVERSIFIED TRAFFIC: County to Pay $42,000 to Settle Claim DM2 ENTERPRISES: Voluntary Chapter 11 Case Summary DREIER LLP: Trustee Can Pursue Recovery Suit vs. 3 Hedge Funds ENERGYCONNECT GROUP: Suspending Filing of Reports with SEC EPICOR SOFTWARE: S&P Assigns 'B' Corporate Credit Rating EQK BRIDGEVIEW: Amends Ch. 11 Plan as Foreclosure Looms FIRST NATIONAL: Files Plan; Solicitation Exclusivity Until Sept. 2 FREMONT GENERAL: 53 Claims Remain Unresolved GAGE FAMILY: Case Summary & 20 Largest Unsecured Creditors GARDENS OF GRAPEVINE: Portion of Property Sold for $6.9 Million GASTRONOMY MANAGEMENT: Case Summary & 20 Largest Unsec. Creditors GEORGIA HYDRAULIC: Case Summary & 20 Largest Unsecured Creditors GEOFFREY THOMPSON: Plans to Convert Case to Chapter 7 GM PINE: Bankruptcy Filing Delays Building's Foreclosure Sale GM PINE: Seeks to File Remainder of Schedules by Aug. 8 GM PINE: Contractor Wants Stay Relief to Pursue State Court Suit GREAT ATLANTIC: Court OKs Togut Segal as Conflicts Counsel GREDE FOUNDRIES: 7th Cir. Says Reedsburg Not Exempted From Stay GREENBRIER COS: Execs.' Base Salaries Restored as Targets Met HARVEST OAKS: Court Denies Request to Disgorge Retainers HARVEST OAKS: Bankr. Administrator Wants Plan Confirmation Denied HCA HOLDINGS: Beverly Wallace to Retire as Parallon President HERITAGE CONSOLIDATED: Can Use Cash Collateral Through July 31 HILLSIDE VALLEY: Sec. 341(a) Creditors' Meeting Set for July 19 HILLSIDE VALLEY: Hires Fitzpatrick Lentz as Bankruptcy Counsel HILLSIDE VALLEY: Bank Wants Property to Stay With Receiver HOLLYWOOD MOTION: Marilyn Monroe Dress Sold for $4.6-Mil. HW PARTNERS: Case Summary & 10 Largest Unsecured Creditors INDENTURE INVESTMENTS: Swan Group Calls Default, Takes JDC INMAR INC: S&P Assigns Prelim. 'B+' Corporate Credit Rating INNKEEPERS USA: Ontario Debtors' Plan Effective IRISH LIFE: DBRS Cuts Dated Subordinated Debt Rating to 'D' ISAACSON STRUCTURAL: Passumpsic Wants Working Capital Loan Denied JAMES F. BYRNES: School Files Reorganization Plan JARA: Suddenly Closed; USB Signs Up With New Firm JAMES DONNAN: Seeks Bankruptcy Protection After GLC Counter Claim JOHN HOLDEN: North Carolina Mayor Seeks Bankruptcy Protection K-V PHARMACEUTICAL: Amends 20MM Class A Common Shares Offering K-V PHARMACEUTICAL: Amends 9.95MM Class A Common Shares Offering KAZI FOODS: Frontline to Provide Real Estate Advisory Services KTLA LLC: Sec. 341 Creditors' Meeting Set for July 26 KTLA LLC: Chapter 11 Status Conference Set for Aug. 8 LAKEVIEW BASEBALL CLUB: $3 Million Foreclosure Judgment Issued LAMBUTH UNIVERSITY: Court OKs Payment of Wages to Employees LAND TEJAS: Unit Files for Bankruptcy Protection LAX ROYAL: Can Access Cash Collateral Until Sept. 9 LEHMAN BROTHERS: U.S. Trustee Opposes Add'l Pachulski Services LEHMAN BROTHERS: Caisse des Depots Wants to File Late $3MM Claim LEHMAN BROTHERS: LBI Trustee Seeks OK for NYSDTF Tax Agreements LEHMAN BROTHERS: LBI Trustee Wants RBS Forced to Pay $345.9-Mil. LEHMAN BROTHERS: FX Cash Claims Determination Upheld LEVEL 3: Inks Conversion Agreement with Fairfax Financial LEVI STRAUSS: Posts $20.51 Million Net Income in May 29 Quarter LIMESTONE FURNITURE: In Ch. 11 Just Week After Owner's Arrest LOCAL INSIGHT: Plan Filing Exclusivity Extended to Aug. 14 LOS ANGELES DODGERS: Paid $5.25 Million Secret Fee to Lender LOS ANGELES DODGERS: MLB Limited on Dodgers' Lender Documents LOS ANGELES DODGERS: Players Union, Radio Station on Committee LOWER BUCKS: County Commissioners Support Re-Emergence MACDERMID INC: S&P Puts 'B-' on Watch Positive as IPO Looms MDA ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors MERIT GROUP: Court Sets Aside Stonehenge Credit Bid Dispute MESA AIR: Receives Recognition For "Impressive" Turnaround MESA AIR: RollsRoyce Sells $28.7-Mil. Claim to Bridge Business METROPARK USA: Court Expands Omni's Scope of Employment METROPARK USA: Challenge for Bricoleur Liens Extended Sine Die METROPARK USA: Files Schedules of Assets & Liabilities MITCHELL LEONARD: Allowed to Continue Cattle Sales Despite Scam MOHEGAN TRIBAL: Files Statistical Report for Mohegan Sun NEW STREAM: Has Settlement With Objecting Investors NORTEL NETWORKS: Canadian Ministry to Review Patent Sale NORTH GENERAL: Court Confirms Plan of Liquidation NOVEMBER 2005: Insiders Have $15.2-Mil. Stalking Horse Bid OFFICEMAX INC. Downgraded to 'B-' by S&P Following Losses OLSEN AGRICULTURAL: Can Borrow Up to $3-Mil. from Rabo Agrifinance OLSEN AGRICULTURAL: Can Access Secured Creditors' Cash Collateral OMEGA NAVIGATION: Lenders Hint Motion to Dismiss Is Possible OPTI CANADA: S&P Cuts Corp. Credit Rating to 'D' on CCAA Filing PAMPLICO HIGHWAY: Case Summary & 11 Largest Unsecured Creditors PAPERWORKS INDUSTRIES: S&P Assigns Prelim. 'B' Corporate Rating PERKINS & MARIE: Has Final Approval of $10.1 Million PERKINS & MARIE: Taps Landis Rath as Delaware Counsel PERKINS & MARIE: Creditors Have Until Aug. 16 to File Claims PETTUS PROPERTIES: VFC Says Ch. 11 Plan Violates Settlement PHILADELPHIA ORCHESTRA: Has $682,568 in Fees in 1st Six Weeks PLATINUM ENERGY: Suspending Filing of Reports with SEC PLEASE MUM: Closes 68 Stores; 750 Workers Lost Jobs POINT BLANK: Delays F.R.C.P. Rule 60(B) Motion Until September PONIARD PHARMACEUTICALS: Reverse Stock Split to Avoid Delisting PROQUEST LLC: S&P Affirms 'B' Corporate Credit Rating QUINCY MEDICAL: Has Deal to Sell to Steward Health for $38-Mil. QUINCY MEDICAL: Taps Mintz Levins as Special Counsel QUINCY MEDICAL: Taps O'Neil & Assoc. as Public Relations Officer QUINCY MEDICAL: Wants Until July 29 to File Schedules & Statements R&M GOURMET FOODS: Market At Pavilions Store Closes Shop R & S ST. ROSE: Court OKs David Merrill P.C. as Special Counsel RAY ANTHONY: Sells Assets to Red White for $9.6 Million RAY ANTHONY: Huntington Has Interim Deal on Adequate Protection RENAISSANCE SURGICAL: Involuntary Chapter 11 Case Summary RLB FRIENDSHIP: Case Summary & 8 Largest Unsecured Creditors RVTC LP: In Chapter 11 Amid Dispute With Bank RVTC LP: Can Assume Executory Contracts With Powell RW LOUISVILLE: Court Grants 6.75% Interest to Secured Creditors SAN JUNG: Voluntary Chapter 11 Case Summary SAVANNAH OUTLET: Court Approves Steven H. Spears as Accountant SBARRO INC: Reports Discussions With Two Buyer Groups SCHOOL HOUSE: Owner Contemplating on Sale or Restructuring SCOVILL FASTENERS: Sells Business, Converts to Ch. 7 Liquidation SHORE HOUSE: Restaurant to Pursue Reorganization SK FOODS: Appeal Not Moot if Settlement Can Be Unwound SMALL PLATES: Detroit Tapas Seeks Chapter 11 Protection SOMERSET PROPERTIES: Cash Collateral Hearing on July 19 SOUTHWEST GEORGIA: Makes Final $4.9-Mil. Critical Vendor Payments SPECIALTY TRUST: Northlight Completes $28.5 Mill. Exit Financing SPORTSMAN'S WAREHOUSE: To Reopen Store at Centennial Gateway STERLING MINING: No Objections to Confirmation Filed by Due Date STRASBURG-JARVIS: Retail Group Buys Assets for $2.2 Mil. SUMMER REGIONAL: Secured Creditors Object to Plan Confirmation SW BOSTON: Prudential Files Rival Reorganization Plan TAREK IBN: Files For Chapter 11 Bankruptcy Protection TELLICO LANDING: Hires Hagood Tarpy as Bankruptcy Counsel TELLICO LANDING: Discovery in State Court Lawsuit Sought TELLICO LANDING: Sec. 341 Creditors' Meeting Set for July 27 TELTRONICS INC: U.S. Trustee Names 7-Member Creditors Panel TELTRONICS INC: Hires Stichter Riedel as Chapter 11 Counsel THORNWOOD FURNITURE: Get Approval to Use Cash Collateral TRANSPECOS FOODS: Bankruptcy Hearing This Week TUMBLEWEED AND CUSTOM: Emerges With New Tex-Mex Theme UNLIMITED POTENTIAL: Case Summary & 20 Largest Unsecured Creditors VEY FINANCE: Court Set to Issue Further Ruling on Cash Collateral VICTOR VALLEY: Wants to Sell All Assets to Prime for $35 Million VITRO SAB: Asks Dallas Judge to Enforce Mexican Plan ZUESY, LLC: Case Summary & Largest Unsecured Creditor * U.S. Has 50% Chance of Downgrade in 3 Months, Says S&P * Sharewell Capital Buying Two Properties in Chapter 11 * Epiq Systems Says U.S. Business Bankruptcy Filings Drop in June * US Entrepreneurship Climate Favorable, Bankruptcies Prevail * BOOK REVIEW: Competition in the Health Care Sector ********* 1031 TAX: Clients Lose Bid for Class Certification -------------------------------------------------- Megan Stride at Bankruptcy Law360 reports that two groups of clients of The 1031 Tax Group LLC on Tuesday lost their bid for class certification in a consolidated suit in California over the $126 million Ponzi scheme that pushed the exchange firm into bankruptcy. According to Law360, U.S. District Court Judge James Ware found that the proposed class was both under- and overinclusive, and that the plaintiffs had failed to establish that issues common to the class predominated over issues affecting only individual members. About 1031 Tax Group Headquartered in Richmond, Virginia, The 1031 Tax Group LLC -- http://www.ixg1031.com/-- was a privately held consolidated group of qualified intermediaries created to service real property exchanges under Section 1031 of the Internal Revenue Code. 131 Tax Group had total assets of $164.23 million and total liabilities as of Sept. 30, 2007. The Company and 15 of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 07-11448) on May 14, 2007. Gerard A. McHale, Jr., was appointed Chapter 11 trustee. Jonathan L. Flaxer, Esq., and David J. Eisenman, Esq., at Golenbock Eiseman Assor Bell & Peskoe LLP, represent the Chapter 11 trustee. Kurtzman Carson Consultants LLC acts as claims and notice agent. Thomas J. Weber, Esq., Melanie L. Cyganowski, Esq., and Allen G. Kadish, Esq., at Greenberg Traurig, LLP, represent the Official Committee of Unsecured Creditors. Former CEO Edward H. Okun is in federal prison at Northern Neck Regional Jail in Warsaw, Virginia, after being convicted of mail fraud and other charges. Mr. Okun allegedly engaged in several misappropriations of funds of 1031 Tax Group and other entities. The funds were used for Mr. Okun's lavish lifestyle including acquiring properties and luxury asset. 2001 PROPERTIES: Secured Creditors Want Lift Stay to Foreclose -------------------------------------------------------------- Secured creditors and parties-in-interest Boundaries Unlimited, Inc., DHM Design, Landform Development, Inc., and Resource Engineering, Inc., ask the U.S. Bankruptcy Court for the District of Colorado to: -- grant them relief from stay to allow them to proceed with a foreclosure of certain real property owned by the Debtor; and -- exercise their state law rights and remedies with respect to the property, including foreclosing their mechanic's lien interests. The Debtors' indebtedness consists of: a. $302,116 from Boundaries; b. $177,602 from Landform; c. $31,474 from Resource; d. $87,142 from DHM. The secured creditors set a July 21 hearing on their motion for relief of stay. About 2001 Properties Mission Hills, Kansas-based 2001 Properties, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 10- 32331) on Aug. 31, 2010. Guy B. Humphries, Esq., in Denver, Colorado, assists the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $35,000,032 in total assets and $44,404,244 in total liabilities as of the Petition Date. The trustee has not appointed a trustee, an examiner or an unsecured creditors committee in Debtor's case. 3480 E.: Voluntary Chapter 11 Case Summary ------------------------------------------ Debtor: 3480 E. 14th St., LLC 3440 Wilshire Blvd., Suite 480 Los Angeles, CA 90010 Bankruptcy Case No.: 11-39696 Chapter 11 Petition Date: July 11, 2011 Court: United States Bankruptcy Court Central District of California (Los Angeles) Debtor's Counsel: Kyungsoo Ken Park, Esq. LAW OFFICES OF PARK & ASSOCIATES 3600 Wilshire Blvd Ste 1722 Los Angeles, CA 90010 Tel: (213) 427-9727 Fax: (213) 427-9757 E-mail: kspark_law@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Victor Cho, president. 5TH AVENUE: Closes $49-Mil. Sale of All Assets to KHP Hotel ----------------------------------------------------------- 5th Avenue Partners LLC, notified the U.S. Bankruptcy Court for the Central District of California of the closing of the sale substantially all of its assets of the estate to KHP Hotel Holding, LLC, or its designee for $49 million. As reported in the Troubled Company Reporter on June 28, 2011, at the May 23 auction, in consultation with the Creditors Committee and WestLB AG New York Branch, the Debtor selected the purchaser as the successful bidder. About 5th Avenue Partners Newport Beach, California-based 5th Avenue Partners owns and operates the Se San Diego hotel located in San Diego, California's financial district. The hotel has 184 guestrooms, a 5,500-square- foot spa, a restaurant, rooftop bar and lounge, 20,000 square feet of banquet space and meeting rooms, an outdoor rooftop pool, fitness center and 23 unsold condominium units. 5th Avenue also owns next to the Se San Diego hotel building a 31,000-square-foot building, which it leases to the House of Blues music club. 5th Avenue Partners, LLC, filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-18667) on June 25, 2010. Marc J. Winthrop, Esq., at Winthrop Couchot PC, in Newport Beach, California, assists the Company in its restructuring effort. Blitz Lee & Company serves as its accountant. The Company estimated assets at $10 million to $50 million and debts at $50 million to $100 million. The Official Committee of Unsecured Creditors tapped Baker & McKenzie LLP as counsel. ADELPHIA COMMS: FPL Group Can No Longer Raise Safe Harbor Defense ----------------------------------------------------------------- Adelphia Recovery Trust, v. FPL Group, Inc., et. al., Adv. Proc. No. 04-03295 (Bankr. S.D.N.Y.), seeks to recover from FPL Group and West Boca Security, Inc., an alleged constructive fraudulent transfer arising out of Adelphia Communications Corporation's January 1999 repurchase of its stock, in a private transaction, for approximately $149 million. FPL Group seeks leave to amend its earlier answer, filed by FPL Group's predecessor counsel, to raise an additional defense to the Trust's claims -- that the transaction is subject to section 546(e) of the Bankruptcy Code which provides a "safe harbor" defense to transactions where avoidance could upset trading markets -- or, in the view of a fair amount but considerably less than all of the analysis on point, irrespective of the effect on trading markets, where the literal text of the statutory language would exempt the transaction from the normal requirements of the Bankruptcy Code and bankruptcy policy. In a July 13, 2011 decision and order, Bankruptcy Judge Robert E. Gerber denied FPL Group's request. Judge Gerber said the request for leave to amend is grossly untimely under the Court's earlier scheduling orders -- four years after the deadline. FPL Group has not come close to showing good cause for the delay. "The issue here does not, however, turn on the merits of the asserted Safe Harbor Defense. Rather, it turns on consideration of the Federal Rules of Civil Procedure-and requires a discretionary determination under two Rules of Civil Procedure that tend to cut in different directions where, as here, the time for amending pleadings has come and gone under an earlier scheduling order," Judge Gerber explained. Fed. R. Civ. P. 15(a) provides that "the court should freely give leave when justice so requires," and Rule 15(a) caselaw focuses heavily on the prejudice to the nonmoving party. But Fed. R. Civ. P. 16(b) provides that scheduling orders may be modified only for "good cause," and Rule 16(b) caselaw requires a showing of diligence. "[T]t appears here that the late request arises not by reason of ignorance of the potential defense, but because FPL Group's predecessor counsel thought it could lie back and raise the Safe Harbor Defense whenever it chose to -- a tactic that the Court finds to be debatable in its legal reasoning, and offensive in its gamesmanship," Judge Gerber said. A copy of Judge Gerber's decision is available at http://is.gd/D5FElSfrom Leagle.com. Counsel to the Adelphia Recovery Trust are: David M. Friedman, Esq. Joseph A. Gershman, Esq. Michael C. Harwood, Esq. KASOWITZ, BENSON, TORRES & FRIEDMAN LLP 1633 Broadway New York, NY 10019 Tel: (212) 506-1740 E-mail: DFriedman@kasowitz.com jgershman@kasowitz.com mharwood@kasowitz.com Attorneys for FPL Group and West Boca Security are: George A. Zimmerman, Esq. Jessica Barcus, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Four Times Square New York, NY 10036 Tel: 212-735-2047 E-mail: george.zimmerman@skadden.com About Adelphia Communications Based in Coudersport, Pennsylvania, Adelphia Communications Corporation was once the fifth-biggest cable company. Adelphia served customers in 30 states and Puerto Rico, and offered analog and digital video services, Internet access and other advanced services over its broadband networks. Adelphia collapsed in 2002 after disclosing that founder John Rigas and his family owed $2.3 billion in off-balance-sheet debt on bank loans taken jointly with the company. Mr. Rigas is serving 12 years in prison, and his son Timothy is serving 15 years. Adelphia Communications and its more than 200 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on June 25, 2002. Willkie Farr & Gallagher represented the Debtors in their restructuring effort. PricewaterhouseCoopers served as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas-Managed Entities, were entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision LLC. The RME Debtors filed for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31, 2006. Their cases were jointly administered under Adelphia Communications and its debtor-affiliates' Chapter 11 cases. The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan of Reorganization on Jan. 5, 2007. That plan became effective on Feb. 13, 2007. About Adelphia Recovery Trust The Adelphia Recovery Trust is a Delaware Statutory Trust formed pursuant to the First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization of Adelphia Communications Corporation and certain affiliated debtors. The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests. ALLIED IRISH: DBRS Downgrades Subordinated Debt Ratings to 'D' -------------------------------------------------------------- DBRS Inc. has downgraded the ratings of the GBP 368.253 million Dated Subordinated Debt due 2019 issued by Allied Irish Banks p.l.c. to "D" from "C". The downgrade follows the settlement of the proceedings before the High Court of Ireland involving certain holders of the Notes and the Minister for Finance. In respect of the Notes, the High Court has declared that the subordinated liabilities order issued by the High Court on 14 April 2011 under the Credit Institutions (Stabilisation) Act 2010 is effective as of April 22, 2011. The SLO amends the terms of the subordinated debt, including interest due, so that it is payable only at the option of AIB; and the maturity date of the Notes has been extended to June 2035. Additionally, in accordance with the amendments, AIB announced that no payment of interest that would have been due to holders of the Notes on 25 June 2011 will be made by AIB. The downgrade reflects the halting of interest payments on the Notes by AIB and DBRS's expectation that the future interest payments of these outstanding subordinated instruments will be halted, as allowed by the High Court. Further, the downgrade considers the aforementioned extension of the final maturity date. Given that bondholders are unlikely to receive interest as agreed upon and that the expected maturity has been extended, DBRS views these actions as disadvantageous to bondholders, which is considered a default under DBRS policy. AMBAC FINANCIAL: Targets October Plan Confirmation Hearings ----------------------------------------------------------- Ambac Financial Group, Inc. asks Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York to approve the Disclosure Statement explaining its proposed Chapter 11 Plan of Reorganization as containing adequate information within the meaning of Section 1125(a) of the Bankruptcy Code. Ambac Financial Group, Inc. seeks the Court's permission to commence solicitation of the Chapter 11 Plan of Reorganization in accordance with a proposed schedule and protocol. The Debtor intends to follow this solicitation timetable: Event Deadline ----- -------- Disclosure Statement Hearing Aug. 12, 2011 Voting Record Date Aug. 12, 2011 Solicitation Deadline Aug. 19, 2011 Deadline for Filing Rule 3018(a) Motion Sept. 9, 2011 Plan Objection Deadline Sept. 21, 2011 Voting Deadline Sept. 23, 2011 Vote Certification Deadline Sept. 28, 2011 Plan Omnibus Reply Deadline Sept. 28, 2011 Confirmation Hearing Oct. 5, 2011 Judge Chapman will convene a hearing to consider approval of the Disclosure Statement and Solicitation Procedures on Aug. 12, 2011. Objections to the Disclosure Statement, if any, must be in writing and be filed with the Court and served on these 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 Office of the Insurance Commissioner for the State of Wisconsin 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 Chapter 11 Plan 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. 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: Proposes KCC as Plan Voting Agent -------------------------------------------------- Ambac Financial Group, Inc. seeks the Bankruptcy Court's permission to employ Kurtzman Carson Consultants LLC as its voting agent in connection with the solicitation and confirmation of its Chapter 11 Plan of Reorganization. As the Debtor's Voting Agent, KCC will perform all tasks relating to the solicitation of votes and the performance of related services, as appropriate, including noticing, balloting, and tabulation services, in furtherance of confirmation of a chapter 11 plan. As previously reported, KCC also serves as claims and noticing agent to the Debtor. KCC will coordinate its personnel to avoid the duplication of effort and prevent the Debtor's estate from incurring needless expense. The fees and expenses of KKC incurred as Voting Agent would be treated as administrative expense priority claims against the Debtor's estates and will be paid by the Debtor after the 10th day after each KCC invoice has been received by the Debtor unless an objection to the invoice is filed. In that case, the Debtor would remit to KKC only the disputed portion of the invoice, and if applicable, would pay the remainder to KKC upon resolution of the disputed portion. Albert Kass, vice president of corporate restructuring services for KCC -- akass@kccllc.com -- maintains that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed $30.05 billion in total assets, $31.47 billion in total liabilities, and a $1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of ($394.5 million) and total liabilities of $1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about $1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. AMERICAN APPAREL: Receives Non-Compliance Notice from NYSE Amex --------------------------------------------------------------- American Apparel, Inc., received a letter from the NYSE Amex LLC relating to the composition of the Company's Audit Committee and Board of Directors. The letter from the Exchange states that (i) the Company is not in compliance with Section 803(B)(2)(a) of the NYSE Amex Company Guide, which requires that the Audit Committee consist of at least three members, and (ii) the Company's Board of Directors has a structure which is not in compliance with Section 802(d) of the Company Guide, which the Exchange interprets as requiring that classes of a classified board be of approximately equal size and that a majority of directors be elected every two years. As a result of resignations of certain of the Company's directors previously disclosed by the Company, the Company's Audit Committee currently consists of two members instead of three members as required by the rules of the Exchange, and the Company's Board of Directors currently consists of three Class A directors, one Class B director (with two Class B vacancies reserved for the designees of Lion/Hollywood L.L.C), and two Class C directors (with one Class C vacancy). The letter from the Exchange provides that the Company has until the earlier of the Company's next annual meeting of stockholders or July 1, 2012, to regain compliance with the Exchange's standards. The Company intends to fill the vacancy on the Audit Committee and realign the Company's Board of Directors in accordance with the Exchange's standards as expeditiously as possible prior to the expiration of the cure period. A full-text copy of the filing is available for free at: http://is.gd/sTOOsL About American Apparel Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP) -- http://www.americanapparel.com/-- is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel. As of Sept. 30, 2010, American Apparel employed over 10,000 people and operated 278 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. American Apparel reported a net loss of $86.31 million on $532.99 million of net sales for the year ended Dec. 31, 2010, compared with net income of $1.11 million on $558.77 million of net sales during the prior year. The Company's balance sheet at March 31, 2011, showed $333.95 million in total assets, $283.12 million in total liabilities, and $50.83 million in total stockholders' equity. The Wall Street Journal reports that Skadden, Arps, Slate, Meagher & Flom has been advising the company on its recent restructuring efforts alongside investment bank Rothschild Inc. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Going Concern Doubt Marcum LLP, in New York, in its audit report on American Apparel's financial statements for the year ended Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. As of April 30, 2011, the Company had approximately $8,000,000 of cash, approximately $8,900,000 of availability for additional borrowings and $46,100,000 outstanding on the credit facility under the BofA Credit Agreement and $1,400,000 of availability for additional borrowings and $4,000,000 outstanding on the credit facility under the Bank of Montreal Credit Agreement. As May 10, 2011, the Company had approximately $5,941,000 available for borrowing under the BofA Credit Agreement and $1,481,000 available under the Bank of Montreal Credit Agreement. The Company incurred a loss from operations of $13,091,000 for the three months ended March 31, 2011, compared to a loss from operations of $21,556,000 for the three months ended March 31, 2010. The current operating plan indicates that losses from operations may be incurred for all of fiscal 2011. "If we are not able to timely, successfully or efficiently implement the strategies that we are pursuing to improve our operating performance and financial position, obtain alternative sources of capital or otherwise meet our liquidity needs, we may need to voluntarily seek protection under Chapter 11 of the U.S. Bankruptcy Code," the Company said following its first quarter results. AMERICAN COMMERCE: Incurs $69,610 Net Loss in May 31 Quarter ------------------------------------------------------------ American Commerce Solutions, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss available to common stockholders of $69,610 on $677,586 of net sales for the three months ended May 31, 2011, compared with a net loss available to common stockholders of $65,035 on $655,314 of net sales for the same period during the prior year. The Company's balance sheet at May 31, 2011, showed $5.05 million in total assets, $4.66 million in total liabilities and $393,355 in total stockholders' equity. The Company has incurred substantial operating losses since inception and has used approximately $29,641 of cash in operations for the three months ended May 31, 2011. Current liabilities exceed current assets by $808,231 at May 31, 2011. Additionally, the Company is in default on several notes payable. The Company said these factors raise substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its ability to reverse negative operating trends, raise additional capital, and obtain debt financing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/mveHK5 About American Commerce Bartow, Florida-based American Commerce Solutions, Inc., is a multi-industry holding company for its operating subsidiaries. As of the close of its most recently completed fiscal year end, the Company had one wholly owned subsidiary operating in the manufacturing segment. The operating subsidiary is International Machine and Welding, Inc., located in Bartow, Florida. International Machine and Welding, Inc., provides specialized machining services for heavy industry. The Company reported a net loss of $385,280 on $2.28 million of sales for the fiscal year ended Feb. 28, 2011, compared with net income of $711,531 on $2.35 million of sales for the fiscal year ended Feb. 28, 2010. As reported by the TCR on June 6, 2011, Peter Messineo, CPA, of Palm Harbor, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. Mr. Messineo noted that the Company has incurred recurring losses from continuing operations, has negative working capital and has used significant cash in support of its operating activities. Additionally, as of February 2011 the Company is in default of several notes payable. AMERICAN COUNSELLING: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: American Counselling Education Center Inc. dba Breeze Acres, ALF 1864 NW 175th Street Miami Gardens, Fl 33056 Bankruptcy Case No.: 11-29155 Chapter 11 Petition Date: July 11, 2011 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Laurel M. Isicoff Debtor's Counsel: Lerone M. Thurston, Esq. 550 NE 124 St North Miami, FL Tel: (305) 398-9646 Fax: (305) 398-9651 E-mail: attythurston@gmail.com Scheduled Assets: $2,970,346 Scheduled Debts: $1,588,428 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb11-29155.pdf The petition was signed by Bobbie J. Rolle, president. ANDRE'S FRENCH: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Andre's French Restaurant, Inc. aka Andre's at Monte Carlo 5145 Rogers St., #C Las Vegas, NV 89118 Bankruptcy Case No.: 11-20807 Chapter 11 Petition Date: July 8, 2011 Court: United States 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 St. #900 Las Vegas, NV 89101 Tel: (702) 388-7185 Fax: (702) 388-0108 E-mail: rmcknight@lawlasvegas.com Scheduled Assets: $190,628 Scheduled Debts: $3,137,040 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb11-20807.pdf The petition was signed by Andre Rochat, president. APEX DIGITAL: Court OKs Lewis Brisbois as Corporate Counsel ----------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has approved Apex Digital, Inc.'s application to hire Lewis Brisbois Bisgaard & Smith LLP as special counsel. As reported in the Troubled Company Reporter on June 29, 2011, Lewis Brisbois will act as corporate counsel to handle various corporate matters as they arise during the Debtor's case. Lewis will also represent the Debtor in connection with the prosecution of the Debtor's pending case against Marketing Plus. The case against Marketing Plus is ending in the Circuit Court of Cook Count located in Chicago, Illinois. The hourly rates of Lewis' personnel are: Senior Partner $275 Partner $250 Senior Associate $225 Associate $200 Paralegal/Law Clerk $125 The professionals with primary responsibility in the Debtor's case are: Siobhan M. Murphy $275 Michael H. Carter $275 As of the Petition Date, the Debtor owed $1,764 to Lewis. Lewis received a postpetition retainer of $2,500. To the best of the Debtor's knowledge, Lewis is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Apex Digital Walnut, California-based Apex Digital, Inc. -- aka AW XEPA Technologies Inc., AW Apex R&D Shangai, AW Apex, AW E2Go, AW Entertainment to Go -- is a privately held company that provides and markets consumer electronics, including high-definition LCD televisions, home entertainment media devices, solar powered lights and digital set top boxes. Apex Digital filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-44406) on Aug. 17, 2010. Juliet Y. Oh, Esq., in Los Angeles, California, represents the Debtor. The Debtor estimated assets and debts at $10 million to $50 million as of the Petition Date. ARCHBROOK LAGUNA: Court Approves $50-Mil. Ch. 11 Financing ---------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that a New York bankruptcy court on Tuesday authorized ArchBrook Laguna Holdings LLC to tap into $50 million in Chapter 11 financing while it focused on finding a buyer. About ArchBrook Laguna ArchBrook is a procurement and distribution intermediary between production companies and end retailers. It distributes consumer electronics, computers and appliances to principal customers that include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale Corp. ArchBrook disclosed assets of $246.2 million against debt totaling $176.4 million as of March 31, 2011. ArchBrook Laguna Holdings LLC and certain of its affiliates filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on July 8, 2011. The Company is being advised by Macquarie Capital (USA) Inc. with respect to the sale process and by Hawkwood Consulting LLC, whose founder Stephen J. Gawrylewski is Chief Restructuring Officer of the Company. Macquarie Capital (USA) Inc. is the financial advisor. PricewaterhouseCoopers LLP is a consultant. The Debtors filed together with the petitions a motion seeking authority to sell substantially all of their assets pursuant to a bankruptcy auction. The Company will seek to have the bankruptcy auction held on Aug. 8, 2011. No buyer is under contract to start the auction. ARTECITY PARK: Settlement Deal With Corus on Plan Approved ---------------------------------------------------------- Judge A. Jay Cristol approved Artecity Park LLC's settlement agreement with Corus Construction Ventures, LLC, regarding the Debtor's joint plan of liquidation. Under the settlement agreement, the Debtors will conduct an auction for the sale in bulk of the unsold units in the Debtors' buildings in accordance with section 363 of the Bankruptcy Code. At the auction, CCV will have the right to credit bid the entire amount of its debt, which is $51,000,000 and shall serve as the stalking horse bidder in the amount of $50,000,000, and will have the right to take title as a bulk assignee under Florida's Distressed Condominium Relief Act. The Debtors will amend the current Plan to provide for a sale and liquidation. All holders of allowed unsecured claims against the Debtors will receive in full satisfaction of such claims, their pro rata share of the assets allocated to the Debtors. Of the current fund as of April 30, 2011, of $743,000 of Purchaser Settlements, up to $340,000 may be used to pay: (a) Debtors' attorneys' fees and expenses already awarded by the Bankruptcy Court; (b) attorneys' fees and expenses, for the period of March 1, 2011 through April 30, 2011, to be awarded by the Bankruptcy Court; and (c) any future fees and expenses for Sale and Plan confirmation awarded by the Bankruptcy Court. The settlement agreement states that CCV will receive $403,000. After paying awards of attorneys' fees and expenses directly related to recoveries of Purchasers' Settlement Payments, one half of the Purchasers' Settlement Payments recoveries after April 30, 2011, will be paid to CCV and the other half may be used to fund fees and expenses of litigation experts and attorneys' expenses in connection with Debtors' claims against Soares da Costa and Chubb. Debtors' unpaid attorneys' fees total $22,940.83 and unreimbursed expenses total $1,957.59 through April 30, 2011, for attorneys' fees and expenses directly related to recoveries of Purchasers' Settlement Payments. CCV will not be obligated to provide any further funding for the Soares da Costa litigation and the Chubb litigation. Future Purchasers' Settlement Payments include any recoveries of purchaser deposits pursuant to the Plan of Reorganization. Under the settlement, the Citizens' insurance refund balance in the amount of $57,204 will be disbursed to CCV. Each individual guarantor of the Debtors' obligations to CCV will be released from the individual guarantor's obligations under the guarantees on the Effective Date and on delivery to CCV of the individual guarantor's completed financial statement using the Corus Bank financial statement form. CCV will receive 50% of recoveries on the Chubb claim after payment of attorneys' and experts' fees and expenses. After payment of attorneys' and experts' fees and expenses, CCV will receive 25% of the net recoveries on the Soares da Costa claims over the amount of $3,000,000. CCV will not have any decision making authority with respect to the litigation of these claims. The portion of Permitted Affiliate Expenses held in Debtors' attorneys' trust account ($61,500 as of April 30, 2011) will be disbursed to the respective Affiliates on the Effective Date of the amended Plan, unless any Affiliate fails to cooperate with confirming the Plan as determined by the Bankruptcy Court. A copy of the settlement agreement is available for free at http://bankrupt.com/misc/ARTECITYsettlementagreement.pdf About Artecity Park LLC Miami Beach, Florida-based Artecity Park LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-31410) on July 26, 2010. Thomas R. Lehman, Esq., at Levine Kellogg Lehman Schneider & Grossman LLP, in Miami, Fla., represents the Debtors as counsel. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. Affiliates Artecity Management IXC (Case No. 10-41406), Artecity Holding Ltd. (Case No. 10-31407), Artepark South Development LLC (Case No. 10-31412, BKC-AJC), Artecity Plaza LLC (Case No. 10-31411), Artecity Governor LLC (Case No. 10-31409), and Park Villas Development LLC (Case No. 10-31413) filed separate Chapter 11 petitions. The cases are jointly administered under Artecity Management, LLC. The Debtors are engaged in the development of a real estate condominium project in Miami Beach, Florida, known as the Aretecity. The Project includes 202 condominium units in five multi-level buildings, together with retail spaces, two pools, a fitness and spa facility, and a parking garage. Artecity Management manages the Debtors' operations and is the general partner of Artecity Holding, Ltd. Artecity Holding owns 100% of the membership interests in Artecity Park LLC, Artecity Plaza LLC, Artecity Governor LLC, Artepark South Development LLC, and Park Villas Development LLC. ARTECITY PARK: Court Confirms Liquidating Plan ---------------------------------------------- Judge A. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, on June 30, 2011, confirmed the third amended joint plan of reorganization of Artecity Management LLC and its debtor affiliates and approved the disclosure statement explaining the plan. The principal means of funding the Plan are proceeds of the sale of condominium units comprising the Artecity Project and a percentage of proceeds of potential litigation recoveries. The Confirmation Order states that upon the occurrence of the Effective Date of the Plan, the Disbursing Agent will pay to Corus Construction Ventures LLC: (a) $403,000, less $1,950 paid to the Miami Herald for advertising the Sale of the Unsold Units, from recoveries received by the Debtors through April 30, 2011 in connection with resolving claims concerning the Preconstruction Agreements during the Chapter 11 Cases; (b) $57,204 in insurance premium refunds received by the Debtors from for overpayment of windstorm insurance premiums paid postpetition; (c) 50% of net recoveries that may be received by the Reorganized Debtors from their claim against Chubb Insurance for soft costs in connection with a loss resulting from rainfall on June 5, 2009, after payment of attorneys' fees, any experts' fees and expenses/costs; (d) 25% of net recoveries above $3 million that may be received by the Reorganized Debtors from their Claims against Soares da Costa and its parent company, Soares da Costa Constucao, SGPS, S.A., after payment of attorneys' fees, any experts' fees and expenses/costs; (e) 50% of net recoveries received by the Debtors and Reorganized Debtors after April 30, 2011 concerning Preconstruction Agreements, after payment of Court-awarded attorneys' fees and expenses directly related to such recoveries; (f) the proceeds of the Sale if CCV is not the Successful Bidder; and (g) any and all undisbursed rental proceeds and security deposits collected through the date of the Sale in connection with the current leases for any units in the Governor Building. The Court will conduct a post-confirmation status conference on Sept. 27, 2011, at 2:00 p.m. A full-text copy of the Confirmation Order is available for free at Your shortlink is http://ResearchArchives.com/t/s?7679 A full-text copy of the Third Amended Plan is available for free at http://ResearchArchives.com/t/s?7678 About Artecity Park LLC Miami Beach, Florida-based Artecity Park LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-31410) on July 26, 2010. Thomas R. Lehman, Esq., at Levine Kellogg Lehman Schneider & Grossman LLP, in Miami, Fla., represents the Debtors as counsel. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. Affiliates Artecity Management IXC (Case No. 10-41406), Artecity Holding Ltd. (Case No. 10-31407), Artepark South Development LLC (Case No. 10-31412, BKC-AJC), Artecity Plaza LLC (Case No. 10-31411), Artecity Governor LLC (Case No. 10-31409), and Park Villas Development LLC (Case No. 10-31413) filed separate Chapter 11 petitions. The cases are jointly administered under Artecity Management, LLC. The Debtors are engaged in the development of a real estate condominium project in Miami Beach, Florida, known as the Aretecity. The Project includes 202 condominium units in five multi-level buildings, together with retail spaces, two pools, a fitness and spa facility, and a parking garage. Artecity Management manages the Debtors' operations and is the general partner of Artecity Holding, Ltd. Artecity Holding owns 100% of the membership interests in Artecity Park LLC, Artecity Plaza LLC, Artecity Governor LLC, Artepark South Development LLC, and Park Villas Development LLC. ARTECITY PARK: ST Residential Wins Auction, Takes Over Project -------------------------------------------------------------- ST Residential, an asset-management company led by Greenwich, CT- based Starwood Capital Group and private-equity firm TPG of Fort Worth, TX, along with WLR LeFrak and Perry Capital, has assumed ownership of Artecity, a mixed-use residential and retail development in Miami Beach. Artecity is a residential-condominium project comprised of six buildings located at the 2100 block of Park Avenue, Miami Beach, two blocks from the ocean. There are a total of 202 units, of which 43 units have closed to date. The remaining asset consists of 159 condominiums as well as 4,000 square feet of retail space. "Artecity has the potential to be a world-class property given its great location," says CEO Wade Hundley, who leads ST with 20 years of experience in various aspects of the real estate and hospitality businesses. "We are excited to own this property as we believe we can finish the development with a few enhancements that will make it a jewel amongst our already desirable portfolio." ST was formed after Chicago-based Corus Bank failed on Sept. 11, 2009. At that time, the Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver and became responsible for numerous residential real estate assets and construction loans. The FDIC needed a financially stable and real estate savvy partner to maximize the value of Corus' real estate portfolio by infusing critical financial capital and knowledge, to market and sell the properties to individual home owners. ST outbid seven rivals to win Corus Bank's $4.5 billion real estate loan portfolio with a combined bid of $554 million for 40% of the equity in the joint venture with the FDIC. "One of our greatest strengths is the confidence and peace of mind we bring to prospective buyers that their purchase will be well developed and well managed into the future, and to real estate brokers who will have the confidence that their transactions will successfully close," said Hundley. About ST Residential ST Residential leads a public-private partnership between the FDIC and a consortium of esteemed private-equity investors, and manages a nationwide condominium-construction project portfolio. Members of the private equity consortium include Starwood Capital, TPG, Perry Capital and WLR LeFrak. By managing its portfolio with an unmatched level of detail and tailoring projects to the communities they serve, the company strives to be the standard bearer for luxury condominium projects. About Artecity Park LLC Miami Beach, Florida-based Artecity Park LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-31410) on July 26, 2010. Thomas R. Lehman, Esq., at Levine Kellogg Lehman Schneider & Grossman LLP, in Miami, Fla., represents the Debtors as counsel. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. Affiliates Artecity Management IXC (Case No. 10-41406), Artecity Holding Ltd. (Case No. 10-31407), Artepark South Development LLC (Case No. 10-31412, BKC-AJC), Artecity Plaza LLC (Case No. 10-31411), Artecity Governor LLC (Case No. 10-31409), and Park Villas Development LLC (Case No. 10-31413) filed separate Chapter 11 petitions. The cases are jointly administered under Artecity Management, LLC. The Debtors are engaged in the development of a real estate condominium project in Miami Beach, Florida, known as the Artecity. The Project includes 202 condominium units in five multi-level buildings, together with retail spaces, two pools, a fitness and spa facility, and a parking garage. Artecity Management manages the Debtors' operations and is the general partner of Artecity Holding, Ltd. Artecity Holding owns 100% of the membership interests in Artecity Park LLC, Artecity Plaza LLC, Artecity Governor LLC, Artepark South Development LLC, and Park Villas Development LLC. AUGUSTA APARTMENTS: Trustee Wants to Auction Real Property Assets ----------------------------------------------------------------- Robert L. Johns, Chapter 11 trustee in the bankruptcy estates of Augusta Apartments, LLC, et al., asks the U.S. Bankruptcy Court for the Northern District of West Virginia for authorization to sell assets of the Debtor in an auction led by West Virginia University Board of Governors, on Behalf of West Virginia University, a State Institution of Higher Education. WVU offered to purchase the assets for $11,000,000. The assets for sale consist of certain real property owned by the Debtors' bankruptcy estates, including a multi-story apartment complex with 158 units and a parking garage located at 49 Falling Run Road, Morgantown, West Virginia known as "The Augusta on the Square", five other related parcels of real property, including two student rental houses, and certain rights and personal property associated therewith. The trustee says that any party submitting upset bid must offer at least $11,325,000 for the real property on substantially the same terms as offered in the purchase agreement and is accompanied by a deposit of $550,000 in immediately available funds. If the trustee deems an upset bid to be a qualified upset bid, the trustee will convene an auction for the real property in the courtroom immediately prior to the sale hearing. Upset bids are due July 11. In the event of any competing bids for the assets, resulting in WVU not being the successful buyer, it will receive a breakup fee of the lesser of WVU's out-of-pocket expenses relating to the transactions that are the subject of the sale motion or 2% of WVU's original purchase price of $11,000,000 for the real property at the time of the closing of the sale with such third party buyer. In a separate filing, Fountain Residential Partners, LLC, a party- in-interest in the Debtors' bankruptcy cases, asks the Court to extend until July 20, 2011, the time to submit deposit in connection with $12,000,000 upset bid. Fountain Residential relates that the hearing on the sale motion is scheduled for July 21, at 10:00 a.m. (EST). Fountain Residential is represented by: Paul J. Cordaro, Esq. 1700 Grant Building Pittsburgh, PA 15219-2399 Tel: (412) 261-0310 Fax: (412) 261-5066 E-mail: pjc@camlev.com Richard W. Wilhelm, Esq. Kathleen M. Patrick, Esq. MUNSCH HARDT KOPF & HARR, P.C. 3800 Lincoln Plaza 500 N. Akard Street Dallas, TX 75201-6659 Tel: (214) 855-7500 Fax: (214) 855-7584 E-mails: rwilhem@munsch.com kpatrick@munsch.com Objections Landau Building Company, first priority lien holder on the Augusta's assets, objects to the distribution of any sale proceeds to any party unless and until Landau is paid the amount of its liens at closing. Landau believes an escrow of no less than $2,750,000 would be appropriate to adequately protect its interest. Landau is represented by: BLUMLING & GUSKY, LLP Michael Kaminski, Esq. 1200 Koppers Building Pittsburgh, PA 15219 Tel: (412) 277-2500 E-mail: mkaminski@blumlinggusky.com Secured creditor First United Bank and Trust also asks that the Court direct the trustee to establish an appropriate reserve from the sale proceedsfor the payment to First United of the value of its lien interest in the McCoy sale property. First United is represented by: SCHLOSSBERG & ASSOCIATES Roger Schlossberg, Esq. 134 West Washington Street P.O. Box 4227 Hagerstown, MD 21741-4227 Tel: (301) 739-8610 About Augusta Apartments, LLC Morgantown, West Virginia-based Augusta Apartments, LLC, filed for Chapter 11 bankruptcy protection on February 19, 2010 (Bankr. N.D. W.Va. Case No. 10-00303). Robert O. Lampl, Esq., at Robert O Lampl Law Office, assists the Company in its restructuring efforts. The Company estimated its assets and debts at $10,000,001 to $50,000,000 as of the Petition Date. The Hon. Patrick M. Flatney approved the appointment of Robert L. Johns as Chapter 11 trustee in the reorganization cases of the Debtors. BATAA/KIERLAND: Hearing Set July 25 for Plan Disclosures -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona has set a hearing for July 25, 2011, at 10:00 a.m. to consider the approval of the disclosure statement filed by Bataa/Kierland, LLC, filed June 7, 2011, relating to the Debtor's plan of reorganization dated June 7, 2011. JMPCC 2007-CIBC 19 East Greenway, LLC, has asserted a claim against the Debtor, allegedly secured by the Kierland Corporate Center located at 7047 E. Greenway Parkway, in Scottsdale, Arizona, in the amount of approximately $22.2 million. The Debtor estimates the total amount of general unsecured claims, not including the tenant security deposits or any deficiency claim of JMPCC, as approximately $41,881.01. The Plan designates five Classes of Claims and Interests. The Plan will be funded by the funds on hand, operations of the Property, and a capital infusion in the amount of the New Value by the Interest Holders or the Successful Bidder, if an auction is held. With the exception of the Classes 1-A through 1-C (the "Priority Claims"), which will be paid in full, all the creditors of the Debtor are impaired under the terms of the Plan. The amount of JMPCC's Allowed Secured Claim will be determined by the Court. The remainder of JMPCC's Allowed Claim will be treated as a general unsecured claim in Class 4. The Debtor intends to pay JMPCC's Allowed Secured Claim in full, with interest at the Plan Rate, over a period of seven years. Holders of Class 4 Allowed Unsecured Claims will share, pro-rata, in a distribution of the sum of $40,000 in cash (the "Unsecured Distribution Amount") paid by the Reorganized Debtor from the New Value contribution. Holders of Allowed Unsecured Claims will receive the first half of their pro rata portion of the Unsecured Distribution Amount on the 90th day following the Effective Date of the Plan and the second half on the 120th day following the Effective Date of the Plan. Class 5 Interests will purchase the equity interests in the Reorganized Debtor by the contribution of cash to the Reorganized Debtor in the total amount of $240,000, payable in monthly payments of $10,000 for a period of twenty-four (24) months commencing thirty (30) days after the Effective Date (i.e., the New Value). If the Court determines that, under the circumstances, the New Value to be contributed by the Interest Holders is insufficient, or that other parties-in-interest should be allowed to bid for the equity interests in the Reorganized Debtor, then other interested parties may bid for the equity interests in the Reorganized Debtor. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/bataakierland.DS.pdf About Bataa/Kierland Bataa/Kierland, LLC, owns and operates a Class "A" office building known as Kierland Corporate Center located at 7047 E. Greenway Parkway, Scottsdale, Arizona. The Debtor's sole member is Bataa Oil, Inc., a Colorado corporation. David J. Calvin and Anne Calvin each hold a 50% interest in Bataa Oil, Inc. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-05850) on March 9, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. John J. Hebert, Esq., Mark W. Roth, Esq., and Mary B. Martin, Esq., at Polsinelli Shughart PC, in Phoenix, Ariz., serve as the Debtor's bankruptcy counsel. Judge Sarah Sharer Curley originally presided over the Debtor's Chapter 11 case. On March 24, 2011, the Court entered an order transferring the case to the Honorable Randolph J. Haines pursuant to Local Rule 1015-1(A), on the basis that the bankruptcy estates of David Calvin (Bankr. D. Ariz. Case No. 10-37014 filed Nov. 17, 2010) and the Debtor are extremely intertwined. The United States Trustee's Office has been unable to appoint a Committee of Unsecured Creditors in the Debtor's bankruptcy case. BARNES BAY: Resort Sets Aug. 17 Plan Confirmation ------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Viceroy Anguilla Resort and Residences on Anguilla in the British West Indies received approval from the bankruptcy judge of the disclosure statement after the resort owner clarified the treatment of claims resulting from contracts to purchase units. The hearing for approval of the plan is set for Aug. 17. Unit purchasers who object to how their claims are classified must file their objections in time for a hearing Aug. 4. Mr. Rochelle relates that the bankruptcy judge in Delaware is allowing purchasers to have the court in Anguilla declare what their rights are. Secured creditor Starwood Capital Group LLC is expected to be the winner of a July 27 auction on which the plan is based. Owed $370 million, Starwood would take ownership when the plan is confirmed and implemented. About Barnes Bay Beverly Hills, California-based Barnes Bay Development Ltd., owns the Viceroy Anguilla Resort & Residences on the British West Indies island of Anguilla. Barnes Bay and two affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10792) on March 17, 2011, to facilitate the sale of the resort. Barnes Bay disclosed $3,331,282 in assets and $481,840,435 in liabilities as of the Chapter 11 filing. Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy counsel, and Keithley Lake & Associates is the Debtors' special Anguillan counsel. Kurtzman Carson Consultants LLC is the Debtors' claims, noticing, solicitation and balloting agent. The U.S. Trustee appointed five members to the official committee of unsecured creditors in the Debtors' cases. Brown Rudnick LLP serves as the Committee's co-counsel, and Womble Carlyle Sandridge & Rice, PLLC, as its Delaware co-counsel. C.R. Hodge & Associates is the Committee's foreign counsel. FTI Consulting, Inc., serves as the Committee's financial advisors. BEACHWAY DEVELOPMENT: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Beachway Development, Inc. 11045 Orangewood Dr. Bonita Springs, FL 34134 Bankruptcy Case No.: 11-13128 Chapter 11 Petition Date: July 11, 2011 Court: United States Bankruptcy Court Middle District of Florida (Ft. Myers) Judge: Barry S. Schermer Debtor's Counsel: Timothy W. Gensmer, Esq. TIMOTHY W GENSMER, PA 2831 Ringling Blvd, Suite 202-A Sarasota, FL 34237 Tel: (941) 952-9377 Fax: (941) 954-5605 E-mail: timgensmer@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Robert McClain, president. BERNARD L MADOFF: Traders May Have Been Overpaying for Claims ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the 70 cents on the dollar that traders have been paying to buy claims against Bernard L. Madoff Investment Securities Inc. may end up being too high a price if the Madoff trustee loses the multibillion dollar lawsuits among the 1,000 suits he's prosecuting. Several of the trustee's largest lawsuits have already been take away from the bankruptcy judge in whole or in part while district judges decide if the trustee has overstepped his authority or is suing third parties not responsible for policing Madoff. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping $50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of Feb. 18, 2011, a total of $6.85 billion in claims by investors has been allowed, with $791.1 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BERNARD L MADOFF: 1st Distribution of 4.1% to Customers Okayed -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the trustee liquidating Bernard L. Madoff Investment Securities Inc. was given authorization from the bankruptcy judge to make a first interim distribution of 4.1% to customers with approved claims. With funds supplied by the Securities Investor Protection Corp., the trustee already has distributed up to $500,000 toward the so-called net equity of any customer with an approved claim. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping $50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of Feb. 18, 2011, a total of $6.85 billion in claims by investors has been allowed, with $791.1 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BERNARD L MADOFF: Feeder Fund Investors Appeal Claims Ruling ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that 18 appeals were filed from the bankruptcy judge's ruling in June that investors in feeder funds don't have customer claims in the Madoff liquidation. U.S. Bankruptcy Judge Burton R. Lifland concluded in his 33-page opinion that the investors' claims are against the feeder firms, not against the Madoff firm. Only the feeder funds have claims, Judge Lifland said. Those taking appeals include the Trustees of Tufts College, Axa Private Management, National Bank of Kuwait SAK, and Aozora Bank Ltd. Access International Advisors LLC has joined customers asking a district judge to remove from the bankruptcy court a lawsuit filed by the Madoff trustee. 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. BESO LLC: Closes Business in Effort to Save Money ------------------------------------------------- Michael Quintanilla at Express-News, citing report from the Associated Press, says Eve Nightclub at the Crystals plaza in MGM's CityCenter closed Monday in an effort to save money. The report says looming financial troubles have caused a Las Vegas nightclub owned by Eva Longoria to temporarily shut its doors. Ms. Longoria is a 32.33% investor in Beso LLC. About Beso, LLC Beso, LLC, co-owned by "Desperate Housewives" star Eva Longoria, filed for Chapter 11 bankruptcy protection on January 6, 2011 (Bankr. D. Nev. Case No. 11-10202). Beso, LLC, runs a Las Vegas restaurant that opened two years ago. It disclosed assets of $2,512,007 and liabilities of $5,680,339 in the schedules attached to the Chapter 11 petition. Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm, in Las Vegas, Nevada, serves as counsel to the Debtor. The petition was signed by William M. Braden, manager. BEST BUY PLAZA: Landlord Files Bare-Bones Chapter 11 ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Best Buy Plaza LP, the owner of the building housing the Best Buy Co. electronics store in Gulfport, Mississippi, filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 11-35881) on July 6 in Houston, where the owner is based. The papers say the property is worth $9.5 million while there are $6.82 million in mortgages. Regions Bank holds the $6.56 million first mortgage. There is a $1.75 million second mortgage. The law firm of James B. Jameson & Associates, in Houston, serves as counsel. BOCA BRIDGE: Plan Solicitation Exclusivity Expires Sept. 10 ----------------------------------------------------------- Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, extended Boca Bridge, LLC's exclusive deadline to solicit acceptances of its plan of reorganization until Sept. 10, 2011. The Debtor asked for an extension because it needs more time to negotiate consensual terms of a plan of reorganization with the new lender -- JMP Boca Bridge Lender, LLC. The Debtor's secured lender was NS/CSE Finance LLC. While the Debtor was negotiating consensual terms of a plan with NorthStar, in early January, the Debtor was notified that the new lender purchased the mortgage held by NorthStar. The Court gave the Debtor until July 11 to send amended plan documents, but the Debtor, instead, asked for an extension of the deadline to file the amended plan documents because of its continued negotiations with JMP regarding a consensual plan. The Debtor said it also needs more time to determine if those negotiations can be successfully concluded. Hearing on the Debtor's request for extension of time to file the amended plan documents is scheduled for July 28, 2011, at 02:30 p.m. About Boca Bridge LLC In August 2010, ten creditors owed $69,400 filed an involuntary Chapter 11 petition (Bankr. S.D. Fla. Case No. 10-34538) against Boca Bridge LLC, the owner of the Boca Raton Bridge Hotel. In November, the bankruptcy judge entered ruling placing the Boca Bridge LLC into Chapter 11. The Debtor disclosed $10,286,336 in assets and $11,850,060 in liabilities as of the Chapter 11 filing. BV GREENFIELD: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: BV Greenfield LLC 130 N. West Streeet Crown Point, IN 46307 Bankruptcy Case No.: 11-08617 Chapter 11 Petition Date: July 8, 2011 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: James K. Coachys Debtor's Counsel: John M. Rogers, Esq. RUBIN & LEVIN, P.C. 500 Marott Center 342 Massachusetts Avenue Indianapolis, IN 46204 Tel: (317) 634-0300 E-mail: johnr@rubin-levin.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/insb11-08617.pdf The petition was signed by Ryan Zeleznak, member, BV Indy Apartments, LLC, a member of the Debtor. CAESARS ENTERTAINMENT: Board Okays Amended Incentive Plan --------------------------------------------------------- The Human Resources Committee of the Board of Directors of Caesars Entertainment Corporation approved amendments to the Company's Management Equity Incentive Plan and to outstanding stock options which were granted pursuant to the Plan. A copy of the Plan is available for free at http://is.gd/3NuLuy As a result of the amendments, "Performance-Based Options" will vest and become exercisable upon attainment by the "Majority Stockholder" of an "MoM" of at least 2.0 (rather than 2.5, which applied prior to the amendments), and if the Majority Stockholder realizes an MoM of less than 2.0 but equal to or greater than 1.75, a pro rata portion of such Performance Based Options will vest based on straight line interpolation. The exercise price of outstanding 1.5X Performance Options was reduced to $35 per share, which is at least equal to the fair market value of the Shares. All outstanding 2.5X Performance Options were amended to reflect the Vesting Adjustment. Additionally, the exercise price for all outstanding Time-Based Options was reduced to $35 per share, provided that such reduced exercise price will be phased in between a four to seven year period, depending on grant date, as set forth in each individual award agreement. Prior to such phase in, any vested options may still be exercised at the original exercise price, subject to the terms of the Plan. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's on mid-November 2010. Harrah's carries 'Caa3' long term corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service. It has a 'B-' issuer credit rating, with 'stable' outlook, from Standard & Poor's. As reported by the TCR on March 3, 2011, Moody's Investors Service upgraded Caesars Entertainment's Corporate Family ratings and Probability of Default ratings to Caa2. CET's Caa2 Corporate Family Ratings reflect very high leverage, weak interest coverage, the company's debt financed growth strategy, and Moody's view that the company's current capital structure in unsustainable in the long-term. The ratings reflect Moody's expectation that gaming demand will rebound very slowly over the next several years. However, in the absence of a material de-leveraging transaction, Moody's do not expect the company's capital structure to improve materially over the next few years. Additionally, given CEC's weak credit profile, there is a possibility that the company could again pursue transactions that will result in impairment of debt holder claims as a means to improve its capital structure. The Company's balance sheet at March 31, 2011, showed $28.40 billion in total assets, $26.84 billion in total liabilities and $1.56 billion in total stockholders' equity. CAPMARK FINANCIAL: Schedules Aug. 19 Plan Confirmation Hearing -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Capmark Financial Group Inc. scheduled an Aug. 19 confirmation hearing to approve the Chapter 11 reorganization plan when the bankruptcy judge said at a hearing that he will approve the disclosure statement and allow creditors to vote. The company will reorganize around its non-bankrupt bank subsidiary. Unsecured creditors will receive cash and new stock. Secured creditors already were paid off as the result of a settlement approved by the bankruptcy judge in November. The settlement paid secured lenders 91 percent in cash on the $1.1 billion they were still owed, plus interest and reimbursement of fees spent in the Chapter 11 case. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- provides financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On Oct. 25, 2009, Capmark Financial and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors in Capmark Financial Group Inc.'s cases tapped Kramer Levin Naftalis & Frankel LLP as its counsel and JR Myriad LLC as its commercial real estate business advisors. The Committee also retained Cutler Pickering Hale and Dorr LLP as its attorneys for the special purpose of providing legal services in connection with Federal Deposit Insurance Corporation matters. Protech Holdings C LLC, an affiliate of Capmark, filed for Chapter 11 protection on July 29, 2010 (Bankr. D. Del. Case No. 10-12387). The Debtor estimated assets and debts in excess of $1 billion as of the filing date. Since filing for Chapter 11, Capmark completed three sales to generate more than $1 billion in cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. In April 2011, Greenline Ventures LLC completed the acquisition of the New Markets Tax Credit division of Capmark Financial Group Inc. Since inception of the NMTC program, Capmark's NMTC division has closed over $1.1 billion of NMTC investment funds and financed over $2.5 billion of projects and businesses in low income communities nationwide. CAPMARK FINANCIAL: Judge Rejects $2M Claim Over Mortgage Servicing ------------------------------------------------------------------ Samuel Howard at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Christopher Sontchi, the bankruptcy judge overseeing Capmark Financial Group Inc.'s reorganization in Delaware, on Wednesday rejected National Life Insurance Co.'s bid to recover more than $2 million relating to mortgage loans the debtor serviced. According to Law360, Judge Sontchi denied National's attempt to modify the terms of Capmark's 2009 sale of its mortgage servicing business to Berkadia Commercial Mortgage LLC or otherwise ensure that National is compensated for $2 million in delinquent real estate taxes Capmark allegedly failed to pay. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- provides financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On Oct. 25, 2009, Capmark Financial and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors in Capmark Financial Group Inc.'s cases tapped Kramer Levin Naftalis & Frankel LLP as its counsel and JR Myriad LLC as its commercial real estate business advisors. The Committee also retained Cutler Pickering Hale and Dorr LLP as its attorneys for the special purpose of providing legal services in connection with Federal Deposit Insurance Corporation matters. Protech Holdings C LLC, an affiliate of Capmark, filed for Chapter 11 protection on July 29, 2010 (Bankr. D. Del. Case No. 10-12387). The Debtor estimated assets and debts in excess of $1 billion as of the filing date. Since filing for Chapter 11, Capmark completed three sales to generate more than $1 billion in cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. In April 2011, Greenline Ventures LLC completed the acquisition of the New Markets Tax Credit division of Capmark Financial Group Inc. Since inception of the NMTC program, Capmark's NMTC division has closed over $1.1 billion of NMTC investment funds and financed over $2.5 billion of projects and businesses in low income communities nationwide. CARGO TRANSPORTATION: Hires Englander to Probe Claims vs. Banks --------------------------------------------------------------- Cargo Transportation Services Inc. seeks permission from the U.S. Bankruptcy Court for the Middle District of Florida to employ Leonard S. Englander of the law firm of Englander and Fischer, LLP as special counsel for the Debtor. The Debtor wishes to retain Englander to investigate potential claims and causes of action against Comerica Bank and BBK, Ltd. arising out of certain actions taken by Comerica and BBK and/or their employees and agents during a period of time commencing in the late spring of 2010 and culminating in the events immediately preceeding the Petition Date. Englander estimates the fees associated with this initial assessment will be at least $10,000 and will not exceed $15,000, applying Englander's standard hourly rates, which range between $450 and $225 per hour. About Cargo Transportation Sunrise, Florida-based Cargo Transportation Services, Inc., provides transportation services to clients nationwide, including customized consolidation, distribution, logistics and warehousing services. It has 140 employees and averages $100,000,000 in gross revenue per year. Cargo Transportation filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-00432) on Jan. 12, 2011. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, serves as the Debtor's bankruptcy counsel. Jennis & Bowen, P.L., serves as substitute counsel. 1 Source Partners Inc. and Accell Audit & Compliance P.A., serve as its certified public accountants. The Debtor also tapped Ruden McClosky P.A. as its special counsel. Donald F. Walton, U.S. Trustee for Region 21, appointed an Official Committee of the Official Committee of Unsecured Creditors in the Debtor's case. Hunton & Williams LLP represents the Committee in the Debtor's Chapter 11 proceedings. The Committee tapped DLA Piper as its general counsel. The Debtor disclosed $11,728,760 in assets, and $11,869,375 in liabilities as of the Chapter 11 filing. CARGO TRANSPORTATION: DLA Piper as Committee's New Counsel Okayed ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized the Official Committee of Unsecured Creditors of Cargo Transportation Services Inc. to retain DLA Piper (US) as its counsel. According to the Troubled Company Reporter on June 23, 2011, the Committee sought to retain DLA to replace Hunton & Williams LLP as general counsel to the Committee after Craig Rasile, Esq., resigned from his position with Hunton to join DLA on April 1, 2011. As the Committee's counsel, DLA will, among other things: (a) advise the Committee with respect to its rights, powers, and duties in this cases; (b) advise and consult with the Committee concerning various legal, financial and operational issues arising from the administration of the Debtor's estate; (c) advise and consult with the Committee concerning the unsecured creditors' rights and remedies with respect to the assets of the Debtor's estate and the claims of administrative, secured, priority and general unsecured creditors as well as other parties in interest; (d) prosecute, defend and represent the Committee's interests in actions arising in or related to the case; and (e) assist in the preparation of such pleadings, motions, notices and orders as are required for the orderly administration of the rights of the Committee and general unsecured creditors. Compensation will be payable to DLA on an hourly basis, less agreed-upon 10% fee discount, plus reimbursement of actual, necessary expenses and other charges incurred by the firm. The normal hourly rates, prior to the application of the 10% discount for professional services rendered by DLA range from $55 to $290 per hour for legal assistants, from $220 to $465 per hour for associates, and from $465 to $835 per hour for counsel and partners. The Committee assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Cargo Transportation Sunrise, Florida-based Cargo Transportation Services, Inc., provides transportation services to clients nationwide, including customized consolidation, distribution, logistics and warehousing services. It has 140 employees and averages $100,000,000 in gross revenue per year. Cargo Transportation filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-00432) on Jan. 12, 2011. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, serves as the Debtor's bankruptcy counsel. The Debtor also tapped Ruden McClosky P.A. as its special counsel. Donald F. Walton, U.S. Trustee for Region 21, appointed an Official Committee of the Official Committee of Unsecured Creditors in the Debtor's case. Hunton & Williams LLP represents the Committee in the Debtor's Chapter 11 proceedings. The Debtor disclosed $11,728,760 in assets, and $11,869,375 in liabilities as of the Chapter 11 filing. CATHOLIC CHURCH: Victims Accept Wilm. Deal Ahead Confirmation ------------------------------------------------------------- Dow Jones' DBR Small Cap reports that nearly all of the sexual- abuse victims entitled to vote on the Roman Catholic Diocese of Wilmington's bankruptcy-exit plan cast their ballots in favor of a settlement deal, setting the diocese on course to pursue confirmation of its settlement plan. 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). CHAMELEON CUSTOM: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Chameleon Custom Solutions Corp. dba Associated Printing 4907 N. Florida Ave. Tampa, FL 33603 Bankruptcy Case No.: 11-13159 Chapter 11 Petition Date: July 11, 2011 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Bernard J. Morse, Esq. MORSE & GOMEZ PA 11268 Winthrop Main Street, Suite 102 Riverview, FL 33578 Tel: (813) 341-8400 Fax: (813) 463-1807 E-mail: chipmorse@morsegomez.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb11-13159.pdf The petition was signed by Carolyn Lawson, president. CHOCTAW RESORT: Cut by S&P to 'B-' as FBI Investigates ------------------------------------------------------ Standard & Poor's Ratings Services lowered its issuer credit rating on Philadelphia, Miss.-based Choctaw Resort Development Enterprise to 'B-', from 'B+'. "We also lowered all issue-level ratings by two notches. At the same time, we placed all ratings on CreditWatch with developing implications," S&P related. "In addition to our concerns about the FBI investigation and its potential implications regarding internal controls at CRDE, the downgrade reflects our view that refinancing risk for CRDE's approximately $71 million term loan B, maturing in November, has heightened. The investigation comes when there is some disruption within the government of the Mississippi Band of Choctaw Indians. On July 5, 2011, the Band held elections for tribal chief, but on July 8, the council voted to nullify the results and hold a new election in September. We believe disruption within a tribal government could raise concerns among lenders, further increasing refinancing risk," S&P said. "The CreditWatch Developing placement reflects the potential for further rating downside as more details emerge or if the CRDE is unable to successfully refinance its term loan over the coming weeks," said Standard & Poor's credit analyst Ariel Silverberg. "It also signals the potential for rating upside in the event of a successful refinancing and upon our conclusion that any internal controls issues stemming from the investigation have been addressed. In resolving our CreditWatch placement, we will closely monitor CRDE's progress towards refinancing in the next several weeks, as well as assess any further information surrounding the investigation." CHURCH AT SOUTH: Receiver Motion Denied Due to Bankruptcy Filing ---------------------------------------------------------------- Steve Green at Vegas Inc. reports that the Church at South Las Vegas won an initial court victory in its legal struggle with a bank trying to foreclose on its property. According to the report, U.S. District Judge Philip Pro denied a motion by lender First Bank of St. Louis in a civil lawsuit that a receiver be appointed to supervise the bank's finances. Judge Pro, though, made it clear he denied the motion not on the merits -- but because of the church's bankruptcy filing. Litigation is automatically stayed by bankruptcy filings. An attorney for First Bank told Judge Pro during the hearing that the bank wants to keep its civil foreclosure lawsuit open as it may ask the bankruptcy court to lift the automatic stay of litigation. The Las Vegas Sun reports that in fighting efforts to have a receiver appointed to supervise the church, church attorneys have argued the church is so far underwater on its mortgage that it doesn't make sense to continue making mortgage payments and that it needs to preserve cash to build a larger church. The church says it has offered to pay the mortgage if the bank will write down the principal amount of the mortgage. The report says the building is worth just $2.375 million against the $7.653 million owed to the bank, church attorneys say. Attorneys for the bank say the church's resistance to making mortgage payments is all the more reason it should be allowed to appoint a receiver to supervise the church while it continues its foreclosure. The Church at South Las Vegas filed for Chapter 11 protection (Bankr. D. Nev. Case No. 11-20839) on July 8, 2011, to prevent the lender from having a receiver appointed. First Bank from St. Louis is owed $6.53 million on a mortgage. The church claims in a court filing that the facilities have been appraised as being worth $2.4 million. CHURCH AT SOUTH: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: The Church at South Las Vegas 3051 Horizon Ridge Parkway Henderson, NV 89052 Bankruptcy Case No.: 11-20839 Chapter 11 Petition Date: July 8, 2011 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: John P. Witucki, Esq. GORDON SILVER 3960 Howard Hughes Parkway Las Vegas, NV 89169 Tel: (702) 796-5555 Fax: (702) 369-2666 E-mail: jwitucki@gordonsilver.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 four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb11-20839.pdf The petition was signed by Benjamin Perez, president. CIT GROUP: To Prepay $500 Million of First Lien Term Loan --------------------------------------------------------- CIT Group Inc. has given notice that it will prepay $500 million of its $3 billion senior secured first lien term loan on July 15, 2011. Including this prepayment, CIT will have eliminated more than $10.5 billion of first lien and second lien debt since the beginning of 2010, including $5 billion of first lien debt, $3.5 billion of Series A Notes, and its entire $2.1 billion of Series B Notes. The voluntary prepayment will be made with available holding company cash and will not be subject to any call premium. About CIT Founded in 1908, CIT Group Inc. (NYSE: CIT) -- http://www.cit.com/ -- is a bank holding company with more than $35 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT Group Inc. and affiliate CIT Group Funding Company of Delaware LLC announced a Chapter 11 filing on Nov. 1, 2009 (Bankr. S.D.N.Y. Case No. 09-16565). Evercore Partners, Morgan Stanley and FTI Consulting served as the Company's financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel in connection with the restructuring plan. Sullivan & Cromwell served as legal advisor to CIT's Board of Directors. CIT emerged from bankruptcy protection on Dec. 11, 2009, after receiving confirmation of its prepackaged Chapter 11 plan of reorganization. * * * In May 2011, Moody's Investors Service upgraded CIT Group Inc.'s Corporate Family Rating to 'B2' from 'B3'. The rating outlook is stable. The upgrade reflects the progress CIT has made addressing its most immediate organizational, operational, and financial challenges subsequent to its bankruptcy reorganization in December 2009. Moody's, however, notes that CIT's weak margins and uncertainty regarding the pace and adequacy of future margin improvements are constraints on the firm's ratings. By repaying and refinancing high-cost debt, CIT has reduced its cost of funds and improved its net finance margin, adjusted to exclude accretion income associated with fresh-start accounting (FSA) and other distortions such as debt prepayment expense. However, CIT's pre- tax margins are well below pre-crisis levels, a function of high funding costs and elevated, though declining credit costs. COLONY CAPITAL: In Receivership; Brenner Real Named Receiver ------------------------------------------------------------ Brenner Real Estate Group, a full service commercial real estate firm based in Fort Lauderdale, has recently been selected for new roles with two properties in Miami and one in Cape Coral, FL. Scott Brenner, Esq., CCIM, SIOR, RPA, President/Broker of Brenner Real Estate Group, has announced the following appointments and agreements: * Receivership for Colony Capital - Office Building On June 9, 2011, the 20th Judicial Circuit of Lee County, Florida appointed Scott Brenner as Receiver for Colony Capital, mortgagee, for an 8,000 SF office building at 703 Cape Coral Parkway in Cape Coral, FL, Lee County. Brenner Real Estate Group will provide Receivership services, property management, sales and leasing. *Sales Listing Agreement for 1st United Bank - Grove Plaza On June 17, 2011, 1st United Bank, a Florida Banking Corporation, took title to Grove Plaza, a 32,300 SF, seven story vacant office building located in Coconut Grove at 2900 SW 28th Terrace, Miami, FL 33133, and has assigned management and sales listing agreements for the property to Brenner Real Estate Group. Brenner associates Helen Weissman and Suzanne Lopez will represent the property for sale. On December 12, 2010, the Miami-Dade County, FL Circuit Court of the 11th Judicial Circuit assigned Brenner Real Estate Group the Property Management Agreement for Grove Plaza on behalf of 1st United Bank which was at that time mortgagee. * Management Assignment for 1st United Bank - Office Building 1st United Bank, a Florida Banking Corporation, has assigned Brenner Real Estate Group the property management and brokerage responsibilities for a 14,482 SF office building located at 1450 NE 123 Street, Miami, FL. The building is currently under contract to close in July. Brenner Real Estate Group is a full-service commercial real estate firm providing asset solutions, brokerage, development, sales investment, property management, asset management, and receivership services for office, multi-family, industrial/commercial, and retail properties. The firm has been serving South Florida since 1987. COPPER KING: Skye and Partners to Acquire Utah Copper Project ------------------------------------------------------------- Pure Nickel Inc. reached a binding letter of intent with a group led by Skye Mineral Partners, LLC, relative to Pure Nickel's position in the Milford, Utah copper project currently controlled by the Western Utah Copper Company. Western Utah Copper Company and its parent Copper King Mining Corporation filed for bankruptcy in May 2010. Skye has already purchased the majority of the secured debt of the project, making Skye the largest secured creditor of WUCC thus putting it in a position of being the leading candidate to provide the fastest resolution to the bankruptcy case. This letter of intent paves the way for Skye and its partners to ultimately acquire the project once the current bankruptcy situation is resolved. About Copper King Milford, Utah-based Copper King Mining Corporation, aka Western Utah Copper Company, filed for Chapter 11 bankruptcy protection on May 18, 2010 (Bankr. D. Nev. Case No. 10-51912). The Company estimated assets and debts at $100 million to $500 million in its Chapter 11 petition. The Company's affiliate, Western Utah Copper Company, filed a separate Chapter 11 petition (Bankr. D. Nev. Case No. 10-51913) on May 18, 2010. The Company estimated assets at $50 million to $100 million in assets and $500 million to $1 billion in debts. McGuireWoods LLP serves as counsel to the Official Committee of Unsecured Creditors. CORDIA COMMS: Thermo Credit Insists on Objections to Assets Sale ---------------------------------------------------------------- Thermo Credit, LLC, the prepetition factor of the accounts receivable generated by Cordia Communications Corp., et al., asks the U.S. Bankruptcy Court for the Middle District of Florida to sustain its objection to the assets sale. The Debtor sought permission to sell substantially all of their assets to Birch communications, Inc. Thermo understands that the sale is expected to result in proceeds totaling approximately $7 million. Although the amount of sale proceeds that will remain after payment of allowed cure claims and other expenses payable at closing is presently unknown, Thermo is concerned that adequate funds will not remain in the Debtors' estate after the sale process to satisfy judgment in favor of Thermo in the litigation. The auction for the assets was not held on July 1, 2011. Instead, the Debtors represented to Thermo that they did not receive any bids to compete with the Birch APA prior to the bid deadlines such that the Debtors are moving forward with the sale to Birch as contemplated in the APA. Thermo also asks that that any order approving the sale provide these protections: i) require the Debtors to reconcile and provide notice of the proposed ILEC payments so that Thermo and all other creditors are assured that the ILEC payments are not greater than they must be; ii) require that the Debtors and Birch reach and agreement acceptable to Therm with respect to the collection of the preclosing receivables; iii) require that any proceeds from the sale remaining after payment of allowed ILEC payments and other amounts required to be paid in connection with the sale closing be escrowed and will not be used by the Debtors absent further order of the Court upon prior notice to Thermo and an opportunity to be heard; and iv) require that the proceeds from the pre-closing receivables that are not needed to pay the Debtors' budgeted wind-down and collection expenses, will be escrowed up to the escrow amount and will not be used by the Debtors absent further order of the court upon prior notice to Thermo. ILEC payments are cure payments to effectuate the transfer of its vendor contracts and the redesignation of its user lines to Birch and will be paid from sale proceeds in the approximate amounts of $5.6 million. Thermo is represented by: Elizabeth A. Green, Esq. Tiffany D. Payne, Esq. BAKER & HOSTETLER LLP 200 S. Orange Avenue Suntrust Center, Suite 2300 Orlando, FL 32801-3432 Tel: (407) 649-4000 Fax: (407) 841-0168 E-mails: egreen@bakerlaw.com tpayne@bakerlaw.com Paige L. Ellerman, Esq., of counsel TAFT STETTINIUS & HOLLISTER LLP 425 Walnut Street, Suite 1800 Cincinnati, OH 45202-3957 Tel: (513) 381-2838 Fax: (513) 381-0205 E-mail: ellerman@taftlaw.com About Cordia Communications Cordia Corporation -- through its operating subsidiaries, Cordia Communications Corp., CordiaIP Corp., My Tel Co, Inc., Northstar Telecom, Inc., Cordia Prepaid Corp., and Cordia International Corp. -- offers business, residential, and wholesale customers local and long distance telecommunications services in more than 60 countries utilizing traditional wireline and Voice over Internet Protocol -- VoIP -- technologies. CCC currently holds licenses to operate in 28 states throughout the contiguous United States, and CCCVA is licensed in Virginia. Winter Garden, Florida-based Cordia Communications Corp. filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11- 06493) on May 1, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates Cordia Communications Corp. of Virginia (Bankr. M.D. Fla. Case No. 11-06494), et al. simultaneously sought Chapter 11 protection. The cases are jointly administered, with Cordia Communications Corp. as lead case. Scott L. Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, serves as the Debtors' bankruptcy counsel. The Debtors tapped Source Capital Group, Inc. as their investment banker, Trustee Services, Inc., as claims, notice, and balloting agent, and Development Specialists, Inc., to provide restructuring and management services, including the appointment of Joseph J. Luzinski as Chief Restructuring Officer. COUNTRYVIEW MHC: Has Access to Cash Collateral Until July 30 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois authorized Countryview MHC Limited Partnership to use cash collateral during the period July 1, 2011, through July 30, 2011, to the extent set forth in a cash budget for the month of June 2011, plus no more that 10% of the total proposed expense payments, unless otherwise agreed by Bank of America as successor by merger to LaSalle Bank National Association, in its capacity as Trustee for the registered holders of LB-UBS Commercial Mortgage Trust 2006-C4, Commercial Mortgage Pass-Through Certificates, Series 2006-C4, or upon further of the Court. As adequate protection to the Lender for the use of its cash collateral, Lender will be granted post-petition replacement liens in the cash collateral to be generated by the Debtor post- petition. A final hearing on the cash collateral motion is scheduled before the Court on July 28, 2011, at 10:30 a.m. A full-text copy of the July 2011 cash collateral budget is available at http://bankrupt.com/misc/COUNTRYVIEW About Countryview MHC Countryview MHC Limited Partnership is an Illinois limited partnership that owns a manufactured home community, consisting of approximately 275 sites, situated in Franklin, Indiana. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-52722) on Nov. 29, 2010. Eugene Crane, Esq., at Crane Heyman Simon Welch & Clar, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. COUNTRYVIEW MHC: BofA Wants Chapter 11 Case Dismissed ----------------------------------------------------- Bank of America, as successor by merger to LaSalle Bank National Association, asks the Hon. Carol A. Doyle of the U.S. Bankruptcy Court for the Northern District of Illinois to dismiss the Chapter 11 case of Countryview MHC Limited Partnership or, in the alternative, grant for relief from the automatic stay to foreclose on property of the estate. According to the bank, the Debtor is a "single asset real estate" debtor whose sole property-a manufactured housing community in Johnson County, Indiana -- is worth substantially less than the secured debt owed to the Trust, demonstrating there is absolutely no equity remains in the Debtor. The bank says the value of the Debtor's property has diminished during the pendency of this case as a result of, inter alia, increased vacancies and delinquent and uncollectible rents, the Debtor's practice of allowing non-debtor entities use of its property without charging rent, the use of estate funds to pay the expenses of non-debtor entities and the Debtor's failure to maintain and repair its facilities. The bank notes that the Debtor has filed a patently unconfirmable Plan and a woefully inadequate Disclosure Statement and has made no attempt to amend either document. Perkins Coie LLP represents the bank. About Countryview MHC Countryview MHC Limited Partnership is an Illinois limited partnership that owns a manufactured home community, consisting of approximately 275 sites, situated in Franklin, Indiana. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-52722) on Nov. 29, 2010. Eugene Crane, Esq., at Crane Heyman Simon Welch & Clar, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. DAVID'S WESTMINSTER: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: David's Westminster, Inc. dba David's Jewelers fka Hossler Jewelry, Inc. 15 S. Cranberry Rd. Westminster, MD 21157 Bankruptcy Case No.: 11-24222 Chapter 11 Petition Date: July 11, 2011 Court: United States Bankruptcy Court District of Maryland (Baltimore) Judge: James F. Schneider Debtor's Counsel: Edward M. Miller, Esq. MILLER AND MILLER, LLP 202 E. Main St., 1st Floor Westminster, MD 21157 Tel: (410) 751-5444 Fax: (410) 751-6633 E-mail: mmllplawyers@verizon.net Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb11-24222.pdf The petition was signed by Stephen W. Hossler, president. DEB SHOPS: Projects 13-Week Negative Cash Flow ---------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that court papers filed by retailer Deb Shops Inc. show how preparing for bankruptcy can be costly. From October through the filing of the Chapter 11 petition June 26, Deb paid Weil Gotshal & Manages LLP, its bankruptcy counsel, $3.1 million, including a retainer for the reorganization. Mr. Rochelle adds another court filing includes a projection showing a $6.9 million negative cash flow over the first 13 weeks of bankruptcy on total receipts of $78.4 million. Mr. Rochelle also reports that the U.S. Trustee appointed an official creditors' committee with five members. One is landlord Simon Property Group Inc. About Deb Shops Deb Shops Inc., is a closely held women's-clothing retailer based in Philadelphia. Deb Shops sells junior and large-size clothing for girls and women ages 13 to 25 through more than 320 U.S. stores and through debshops.com. It was bought out by the New York investment firm Lee Equity Partners in October 2007. DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363. As of April 30, 2011, the Debtors' unaudited financial statements reflected assets totaling $124.4 million and liabilities totaling $270.1 million. Lawyers at Weil Gotshal & Manges LLP and Richards, Layton & Finger P.A. serve as bankruptcy counsel. Rothschild Inc. serves as the Debtors' investment banker and financial advisors. Kurtzman Carson Consultants, LLC, serves as claims agent. Sitrick & Company serves as public relations consultants. 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. DEER TRACK: Owners File For Chapter 11 Bankruptcy Protection ------------------------------------------------------------ Alan Blondin at The Sun News reports that the owners of the former Deer Track North Course at Deerfield Plantation has sought Chapter 11 bankruptcy protection. According to the report, a foreclosure auction for the property, which consists of 168.5- and 22-acre tracts of land in the Surfside Beach area, was canceled because of the filing. Sammy Truett of Surfside Beach and potential partners Dr. Brian Adler and Linwood Foster planned to bid on the 37-year- old course and want to reopen it. National Bank of South Carolina, owed $2.9 million, sought the foreclosure auction. The Sun News recounts that partners McCray Smith and Jerry Pettus purchased the North Course in March 2006 through their formed company Deertrack Investors LLC and closed it six months later with intentions of redeveloping the property. But their plans have been held up by lawsuits that are unresolved. DENNIS BROWN: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Dennis Brown Shaolin Wu-Shu Training Center, LLC 982 Largo Center Dr., Largo, MD 20744 Bankruptcy Case No.: 11-24192 Chapter 11 Petition Date: July 8, 2011 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Debtor's Counsel: Sharon Theodore-Lewis, Esq. PATRCIK HENRY LLP 9470 Annapolis Rd., Suite 312 Lanham, MD 20706 Tel: (240) 296-3488 E-mail: stlewis@patrickhenry.net Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Dennis Brown, manager. DIABETES AMERICA: Court Rejects Apelles Plea for Ch. 11 Trustee --------------------------------------------------------------- The Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas denied the request to appoint a Chapter 11 trustee for Diabetes American Inc. filed by Apelles Master Fund I Ltd. In its request for a Chapter 11 trustee, Apelles said it is concerned with the incompetence, gross mismanagement and self- interestedness of the current Board. "There is an urgent need to appoint a chapter 11 trustee. Otherwise, there may not be anything left for the creditors, especially given that the Debtor's operations will cease if financing is not forthcoming by July 15, 2011," Apelles noted. Apelles pointed out that the incompetence and gross mismanagement by the Debtor's current board of directors has resulted in deterioration of the Debtor's operations and finances, and further diminution of the Debtor's estate is inevitable absent the immediate appointment of a trustee, especially in light of the Board's recent termination of the Debtor's CRO Monte B.Tucker, financial advisor Healthcare Markets Group and bankruptcy counsel Looper Reed & McGraw, P.C. About Diabetes America Houston, Texas-based Diabetes America, Inc., fka Diabetes Centers of America, Inc., operates a network of 17 centrally-managed medical clinics that provide comprehensive outpatient medical care, primarily to patients with Type 1, Type 2 and Gestational Diabetes. The company's clinics are located in Texas and Houston and generate 51,000 patient visits per year. Diabetes America filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10-41521) on Dec. 21, 2010. H. Joseph Acosta, Esq., and Micheal W. Bishop, Esq., at Looper Reed & McGraw, P.C., in Dallas, represent the Debtor as bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Judy A. Robbins, the U.S. Trustee for Region 7, appointed three members to the Official Committee of Unsecured Creditors in Diabetes America's Chapter 11 case. The Committee has tapped Butler, Snow, O'Mara, Stevens & Cannada, PLLC, as its counsel. DIABETES AMERICA: Hearing Set For July 15 on Lease Extension Plea ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas will convene a hearing on July 15, 2011, at 11:00 p.m., whether to extend, until Oct. 19, 2011, the assumption or rejection of certain unexpired nonresidential real property assets of Diabetes America Inc. According to the Debtor, it is currently a party to 14 pre- petition nonresidential real property leases. Many of the leases are critical to the Debtor's ongoing business operations. The Debtor anticipates assuming many of the leases pursuant to a chapter 11 plan and possibly negotiating agreements concerning payoff terms for any outstanding cure amounts. The Debtor anticipates proposing a chapter 11 plan in the next 60-90 days. About Diabetes America Houston, Texas-based Diabetes America, Inc., fka Diabetes Centers of America, Inc., operates a network of 17 centrally-managed medical clinics that provide comprehensive outpatient medical care, primarily to patients with Type 1, Type 2 and Gestational Diabetes. The company's clinics are located in Texas and Houston and generate 51,000 patient visits per year. Diabetes America filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10-41521) on Dec. 21, 2010. H. Joseph Acosta, Esq., and Micheal W. Bishop, Esq., at Looper Reed & McGraw, P.C., in Dallas, represent the Debtor as bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Judy A. Robbins, the U.S. Trustee for Region 7, appointed three members to the Official Committee of Unsecured Creditors in Diabetes America's Chapter 11 case. The Committee has tapped Butler, Snow, O'Mara, Stevens & Cannada, PLLC, as its counsel. DIAMOND SPRINGS: Bankruptcy Plan Not Confirmable ------------------------------------------------ Bankruptcy Judge Terry L. Myers granted the request of secured creditor Global Credit & Mortgage, LLC, for relief from the automatic stay in the bankruptcy case of Diamond Springs Ranch, LLC. The Court said confirmation of the plan of reorganization filed by the Debtor is doubtful. It has no income. It is totally dependent on infusions from parent R & R Development Inc. to make any payments, not only to creditors but to its own professionals and on U.S. Trustee's fees and other administrative expenses. The Debtor has insufficient resources with which to perform its plan. According to the Idaho County assessor, the total value of all the Debtor's lots securing Global is $426,793, an amount that is $119,465 less than Global's $546,258 claim. Global provided financing in 2004 to allow the Debtor to acquire the real estate. Judge Myers also denied the disclosure statement explaining the plan. A copy of the Court's July 13, 2011 Memorandum of Decision is available at http://is.gd/dcUGOnfrom Leagle.com. About Diamond Springs Ranch Diamond Springs Ranch LLC is a wholly owned subsidiary of R & R Development, Inc. It owns real estate upon which it and R & R are developing a large-lot, residential subdivision near the Little Salmon River, south of Riggins, in Idaho County, Idaho. The president of R & R and the manager of Diamond Springs Ranch is Ray Hamell. Mr. Hamell has been involved in real estate since 1972 in Ada, Valley and Idaho Counties and has lived in Riggins, Idaho since 1984. Diamond Springs Ranch filed a voluntary Chapter 11 petition (Bankr. D. Idaho Case No. 11-20034) on Jan. 12, 2011, listing under $1 million in assets and debts. The Debtor concedes that the case is a "single asset real estate case" under 11 U.S.C. Sec. 101(51B). DIVERSIFIED TRAFFIC: County to Pay $42,000 to Settle Claim ---------------------------------------------------------- Jason Deal at the Blackshear Times reports that Pierce County will pay $42,355 to settle a claim and preserve its credit rating after being found liable by a federal bankruptcy judge. According to the report, in a ruling handed down June 8 by United States Bankruptcy Court Judge John H. Dalis, Pierce County was found liable in failing to pay Presidential Financial Corporation of Alpharetta for a road striping contract awarded to Diversified Traffic Services, Inc. of Blackshear. Diversified Traffic Services is owned by Neal and Arlene Howard. The report says commissioners unanimously voted to pay the judgement, but also authorized county attorney Franklin Rozier to seek to recover funds the county paid directly to Diversified Traffic Services, Inc. Willis Blacknall of Waycross, an attorney specializing in bankruptcy proceedings, will represent the county in the case. Diversified Traffic filed for chapter 11 bankruptcy protection (Bankr. S.D Ga. Case No. 09-51227) in November 2009. DM2 ENTERPRISES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: DM2 Enterprises, LLC 3105 E. Main Street Mesa, AZ 85213 Bankruptcy Case No.: 11-19817 Chapter 11 Petition Date: July 11, 2011 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: George B. Nielsen Jr. Debtor's Counsel: Kyle A. Kinney, Esq. LAW OFFICE OF KYLE A. KINNEY 3844 N. 32nd Street, Suite 10 Phoenix, AZ 85018 Tel: (480) 650-2292 E-mail: kyle@kinneylaw.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Dennis M. Mikulich, member. DREIER LLP: Trustee Can Pursue Recovery Suit vs. 3 Hedge Funds -------------------------------------------------------------- Chip Giambrone at Westlaw Journal Bankruptcy reports that the Chapter 11 trustee for convicted fraudster Marc Dreier's law firm can continue to press fraudulent-transfer claims against three hedge funds that allegedly knew or should have known they received money from the now-disbarred lawyer's Ponzi scheme. According to the report, Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York rejected the bulk of a defense motion to dismiss the case. He held that the trustee can move past the pleading stage with her efforts to recover more than $16 million in pre-petition transfers made to the hedge fund defendants. About Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On Dec. 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier, currently in prison, was charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09-cr-00085). Dreier LLP sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. Sheila M. Gowan, a partner with Diamond McCarthy, was appointed Chapter 11 trustee. Wachovia Bank National Association, the Chapter 11 trustee, and Steven J. Reisman as post-confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on Jan. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier, 60, pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. ENERGYCONNECT GROUP: Suspending Filing of Reports with SEC ---------------------------------------------------------- EnergyConnect Group, 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 common stock, no par value. Pursuant to Rule 12h-3, the Company is suspending reporting because there is only one holder of record of the common shares as of July 12, 2011. On July 1, 2011, Eureka, Inc., merged with and into EnergyConnect Group, Inc., pursuant to that certain Agreement and Plan of Merger, dated as of March 2, 2011, by and among Johnson Controls Holding Company, Inc., the parent of Merger Sub or "Parent" and the Company. The Company is the surviving corporation in the Merger and is a wholly-owned subsidiary of Parent. 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. EPICOR SOFTWARE: S&P Assigns 'B' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating midmarket enterprise resource planning solutions provider Epicor Software Corp. "Additionally, we assigned a 'B+' issue-level and a '2' recovery rating to the company's $945 million senior secured credit facilities, consisting of a $75 million revolver due 2016 and a $870 million term loan B due 2017. The '2' recovery rating indicates our expectation of substantial (70-90%) recovery in the event of a payment default," S&P related. "We are also assigning a 'CCC+' issue-level rating and a '6' recovery rating to the company's $465 million senior unsecured notes due 2019. The '6' recovery rating indicates our expectation of negligible (0%-10%) recovery in the event of a payment default," S&P said. The company used the proceeds, along with a an equity contribution from Apax Partners and cash on hand at both Epicor and Livermore, Calif.-based Activant Solutions, to fund the purchase of the two companies by Apax Partners. Apax completed the acquisitions on May 16, 2011. "The ratings on the newly combined Epicor Software Corp. reflect our view that its proposed combination with Activant Solutions will create a leadership position in the market for midtier ERP solutions," said Standard & Poor's credit analyst Jennifer Pepper, "but that operating lease-adjusted leverage will be very high--at about 7x--at inception." "The combined company's business profile will remain focused on the manufacturing, retail, distribution, and services verticals and we expect that a significant amount of recurring revenue should lead to relatively consistent profitability and cash flows." EQK BRIDGEVIEW: Amends Ch. 11 Plan as Foreclosure Looms ------------------------------------------------------- EQK Bridgeview Plaza Inc. delivered to the U.S. Bankruptcy Court for the Northern District of Texas a Second Amended Chapter 11 Plan Of Reorganization. The Plan provides that the Reorganized Debtor will use net cash flow from the properties, funds on deposit in its debtor-in- possession accounts, including, but not limited to, funds within any tax escrow accounts, funds received from Transcontinental Realty Investors, Inc., sale proceeds from sales of the properties, and any additional monies obtained by the Debtor to fund the distributions required under the Plan. Additionally, TCI will advance sufficient funds to the Debtor to enable the Debtor to make pay all administrative costs, expenses, priority claims, and other amounts necessary and required to effectuate and implement the Plan and will create and deposit into a restricted, segregated special-purpose account $200,000 to secure its commitment to fund the initial plan payments, which amount is to be deposited into an account held by the Debtor and/or the Reorganized Debtor within five days of the Effective Date. TCI will also advance sufficient funds to the Debtor and Branch Banking & Trust Company, the secured lender for the Windmill Farms Property, throughout the term of the Plan and to enable the Debtor to pay timely all expenses associated with the Windmill Farms Property and all amounts required to pay allowed secured claim of BB&T arising after the Confirmation Date, including, without limitation, payment of all interest payments to BB&T, post- petition real property taxes, and operating and maintenance expenses incurred with respect to the Windmill Farms Property. TCI will receive 100% of the equity interests in the reorganized Debtor on account of its contributions and the new value TCI is providing in funding the Plan, which include all amounts needed to service the Windmill Farms Property and debt to BB&T, which is estimated to be approximately $7,000,000. Holders of general unsecured claims will receive pro-rata distributions from the proceeds from any sale of property after payment of all secured claims holders will be satisfied in full, without interest, through such sales of property within five years from the plan's effective date. A full-text copy of the Plan is available for free at http://bankrupt.com/misc/EQK_Amended_Plan.pdf Aug. 31 Deadline EQK Bridgeview Plaza, Inc., received some breathing room after Bankruptcy Judge Stacey Jernigan denied motions for relief from the automatic stay filed by: -- Grand Pacific Finance Corp., pertaining to certain real property sometimes referred to as the "Dunes Plaza Property"; and -- Wells Fargo Bank, N.A., as Indenture Trustee for the Grand Pacific Business Loan Trust 2005-1, pertaining to certain real property sometimes referred to as the "Bridgeview Plaza Property". However, Judge Jernigan conditioned her ruling on the Debtor's continued provision of monetary adequate protection to the Grand Pacific and Wells Fargo. Judge Jernigan also said she will list the automatic stay as to Grand Pacific and Wells Fargo on Aug. 31, 2011, if by that time the Debtor has not obtained confirmation of a plan. The court will allow no more than a one-day hearing for a confirmation hearing. A copy of the Court's June 16, 2011 Findings of Fact, Conclusions of Law and Order is available at http://is.gd/pjK1YHfrom Leagle.com. About EQK Bridgeview Plaza Based in Dallas, Texas, EQK Bridgeview Plaza Inc. owns four separate pieces of real property valued collectively at $74,312,000: Windmill Farms, an undeveloped land in Forney, Texas; the Dunes Plaza Property, a shopping center in Michigan City, Indiana; the Bridgeview Plaza Property, a shopping center in LaCrosse, Wisconsin; and the Eagle Crest Property, an office building and the site of a former warehouse in Farmers Branch, Texas. EQK Bridgeview Plaza sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 10-37054 on Oct. 4, 2010, and is represented by Melissa S. Hayward, Esq. -- MHayward@FSLHlaw.com -- at Franklin Skierski Lovall Hayward LLP. In its schedules, the Debtor disclosed total assets of $76,458,815 and total liabilities of $74,763,048. FIRST NATIONAL: Files Plan; Solicitation Exclusivity Until Sept. 2 ------------------------------------------------------------------ First National Building I, LLC and First National Building II, LLC filed with the U.S. Bankruptcy Court for the Western District of Oklahoma a plan of reorganization and an accompanying disclosure statement on July 5, 2011. The Debtors' exclusive period to obtain acceptance of a plan or plans of reorganization is extended through and including September 2, 2011. Administrative claims filed against the Debtors, estimated to total $250,000 will be paid in full on the effective date. The Plan also provides for these classification and treatment of claims: * Class 1-A Allowed Capmark Bank Claim will be paid $250,000 on the effective date. Capmark Bank will receive a new note with a principal balance equal to the Allowed Capmark Bank Claim. The Bank Restructured Note will mature and all unpaid principal and accrued but unpaid interest will be fully due and payable on the seventh anniversary of the Effective Date. The Bank Restructured Note will bear interest at a per annum rate equal to the greater of 5.25% or the applicable rate determined by the Bankruptcy Court at the Confirmation Hearing. The Bank Restructured Note will be amortized according to a 30-year amortization schedule. * Class 1-B Allowed Capmark Subfund Claim will receive a new note with a principal balance equal to the Allowed Capmark Subfund Claim. Capmark Subfund will be paid $250,000 which will be applied to reduce the principal balance of the Subfund Restructured Note. The Subfund Restructured Note will mature and all unpaid principal and accrued but unpaid interest will be fully due and payable on the New Maturity Date. The Subfund Restructured Note will bear interest at the New Interest Rate. The Subfund Restructured Note will be amortized according to a 30-year amortization schedule. * Class 2-A Allowed Williams Secured Claim and Clas 2-B Allowed LVI Secured Claim will each receive a promissory note from the Debtors in the amount of their Allowed Claims. * Class 3 Allowed Priority Claims will receive cash in an amount equal to the Allowed Class 3 Priority Claim. * Class 4 Allowed General Unsecured Claims will receive Cash in an amount equal to each holder of the Allowed Class 4 General Unsecured Claim's pro rata share of $250,000. Thereafter, each holder of an Allowed Class 4 General Unsecured Claim will receive Cash on the first anniversary of the Effective date in an amount equal to each holder of the Allowed Class 4 General Unsecured Claim's pro rata share of an additional $250,000. * Class 5-A Allowed Interests in FNB I and Class 5-B Allowed Interests in FNB II will be canceled and the holders of Allowed Interests in FNB I will neither receive nor retain any property on account of those Interests. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?767a About First National Sherman Oaks, California-based First National Building I, LLC, and First National Building II, LLC, are the co-owners of the real property commonly known as the First National Center and located at 120 N. Robinson Avenue in Oklahoma City. The property is a 33- story historic office building located in the central business district in Oklahoma City and contains approximately 950,000 square feet of rentable space. The Honorable Geraldine Mund entered an order directing the transfer of the Chapter 11 cases of First National Building I, LLC, and First National Building II, LLC, from the Central District of California to the Western District of Oklahoma. Capmark Bank and Capmark CDF Subfund VI LLC, (together, the "Lender"), made the request, and Judge Mund agreed to the venue change. Capmark is represented by H. Mark Mersel, Esq., at Bryan Cave LLP in Irvine, Calif. First National Building I, LLC, filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 10-22745) in Woodland Hills, Calif., on Oct. 7, 2010, and the case was transferred (Bankr. W.D. Okla. Case No. 10-16334) to Oklahoma City on Oct. 13, 2010. First National Building II, LLC, filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 10-22747) in Woodland Hills, Calif. on Oct. 7, 2010, and the case was transferred (Bankr. W.D. Okla. Case No. 10-16335) to Oklahoma City on Oct. 13, 2010. The Debtors each estimates assets and debts at $10 million to $50 million. The Debtors are affiliated with Roosevelt Lofts, LLC (Bankr. C.D. Calif. Case No. 09-14214). The Debtors are represented by Mark B. Toffoli, Esq., at Andrews Davis, P.C., in Oklahoma City, Okla. FREMONT GENERAL: 53 Claims Remain Unresolved -------------------------------------------- Signature Group Holdings, Inc., said in a press release that during Fremont General Corp.'s bankruptcy proceedings, there were nearly 1,000 claims made that aggregated $1.14 billion. To date, the Company has resolved all but 53 claims, which total $14.3 million in the aggregate. "We've made significant progress resolving these legacy claims," Craig Noell, president and chief executive officer, commented. "Of the outstanding claims, more than $10 million relates to claims made by former employees and another $2 million relates to litigation where the Company previously was the prevailing party. While we would like to resolve these claims as soon as possible, we are focused on dealing with these claims in the best interest of the Company and its shareholders," Mr. Noell continued. 2010 Results The Company is actively seeking the voluntary withdrawal of these remaining claims. However, several of the claims are in actual dispute and to the extent the Company is unable to obtain voluntary withdrawals by the claimants, or reach satisfactory settlement, it intends to vigorously defend against them. Signature Group has recently filed with the Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. The Company concurrently filed its quarterly reports on Forms 10-Q for the quarters ended March 31, 2010, June 30, 2010, and Sept. 30, 2010. For fiscal 2010, the Company reported a net loss from "Continuing Operations" of $25.4 million and a net loss from "Discontinued Operations" of $14.1 million. As of Dec. 31, 2010, the Company had total assets of $135.5 million and total shareholders' equity of $73.7 million. The majority of Signature's assets include cash and cash equivalents, liquid, short-term investments and residential mortgage-related assets. In addition, the Company maintains a federal net operating loss carryforward estimated at approximately $882.7 million at Dec. 31, 2010. Signature was formerly known as "Fremont General Corporation", which emerged from bankruptcy proceedings on June 11, 2010. Under a plan of reorganization confirmed by the bankruptcy court, the Company currently has a new management team and business model, which utilizes certain legacy assets of Fremont General as part of the Company's new businesses. The Company no longer engages in banking or residential mortgage lending. Noell said, "The 2010 results reflect the performance of the legacy assets and discontinued operations of Fremont General prior to our emergence from bankruptcy proceedings, as well as the fact that we are in the early stages of utilizing these legacy assets to reposition the Company to implement our new business plan. Our continuing business plan is to transition the company through special situation credits and acquisitions of middle market businesses and specialty assets." "The filing of our 2010 10-K and the 10-Qs brings us one step closer to becoming current in our SEC reporting. We anticipate that we will begin filing our SEC reports for 2011 during the third quarter of 2011." More details about the Company's plans are included in the 10-K and the plan of reorganization. The filing of the 10-K and the 10-Qs with the SEC follows the recent completion and filing of a comprehensive annual report on Form 10-K that included, in one comprehensive filing, business and financial information for the fiscal years ended December 31, 2007, 2008 and 2009, and the quarterly periods of 2008 and 2009. About Fremont General Based in Santa Monica, California, Fremont General Corp. (OTC: FMNTQ) -- http://www.fremontgeneral.com/-- was a financial services holding company with $8.8 billion in total assets at Sept. 30, 2007. Fremont General ceased being a financial services holding company on July 25, 2008, when its wholly owned bank subsidiary, Fremont Reorganizing Corporation (f/k/a Fremont Investment & Loan) completed the sale of its assets, including all of its 22 branches, and 100% of its $5.2 billion of deposits to CapitalSource Bank. Fremont General filed for Chapter 11 protection on June 18, 2008, (Bankr. C.D. Calif. Case No. 08-13421). Robert W. Jones, Esq., and J. Maxwell Tucker, Esq., at Patton Boggs LLP, Theodore Stolman, Esq., Scott H. Yun, Esq., and Whitman L. Holt, Esq., at Stutman Treister & Glatt, represent the Debtor as counsel. Kurtzman Carson Consultants LLC is the Debtor's noticing agent and claims processor. Lee R. Bogdanoff, Esq., Jonathan S. Shenson, Esq., and Brian M. Metcalf, at Klee, Tuchin, Bogdanoff & Stern LLP, represent the Official Committee of Unsecured Creditors as counsel. Fremont's formal schedules showed $330,036,435 in total assets and $326,560,878 in total debts. Fremont General Corporation emerged from bankruptcy and filed Amended and Restated Articles of Incorporation with the Secretary of State of Nevada on June 11, 2010, which, among other things, changed the Debtor's name to Signature Group Holdings, Inc. Signature's plan of reorganization became effective on June 11, 2010. As of that date Fremont General changed its name to Signature Group Holdings, Inc. GAGE FAMILY: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Gage Family Entertainment, LLC 7 North Boardwalk Branson, MO 65616 Bankruptcy Case No.: 11-61485 Chapter 11 Petition Date: July 12, 2011 Court: U.S. Bankruptcy Court Western District of Missouri (Springfield) Judge: Arthur B. Federman Debtor's Counsel: David E. Schroeder, Esq. DAVID SCHROEDER LAW OFFICES, PC 1524 East Primrose Street, Suite A Springfield, MO 65804-7915 Tel: (417) 890-1000 Fax: (417) 886-8563 E-mail: bk1@dschroederlaw.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/mowb11-61485.pdf The petition was signed by Justin Gage, managing member. GARDENS OF GRAPEVINE: Portion of Property Sold for $6.9 Million --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that former Major League Baseball player Rafael Palmeiro was given authority by the bankruptcy judge to sell part of the property owned by his Gardens of Grapevine Development LP. The bankruptcy judge authorized Lincoln Property Co. Southwest Inc. to buy 16.8 acres of the 192 acres of undeveloped land of the Debtor for $6.9 million. The project has a $19 million first mortgage and $8 million in second mortgages. The entire project was appraised for $53.3 million in October, according to a court filing. About Gardens of Grapevine The Gardens of Grapevine Development, L.P., a real-estate development controlled by former Major League Baseball player Rafael Palmeiro, filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 11-43260) in Fort Worth, Texas, on June 6, 2011. Frank Jennings Wright, Esq., at Wright Ginsberg Brusilow P.C., in Dallas, Texas, serves as counsel to the Debtor. In its schedules, the Debtor disclosed $57,276,000 in assets and $37,954,633 in liabilities. Mr. Palmeiro played for the Texas Rangers, Baltimore Orioles and Chicago Cubs from 1986 to 2005, and had 569 home runs and 3,020 hits. He served a suspension for failing a steroid test. GASTRONOMY MANAGEMENT: Case Summary & 20 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: Gastronomy Management Group 5145 Rogers St., #C Las Vegas, NV 89118 Bankruptcy Case No.: 11-20803 Chapter 11 Petition Date: July 8, 2011 Court: United States 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 St. #900 Las Vegas, NV 89101 Tel: (702) 388-7185 Fax: (702) 388-0108 E-mail: rmcknight@lawlasvegas.com Scheduled Assets: $48,085 Scheduled Debts: $3,005,857 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb11-20803.pdf The petition was signed by Andre Rochat, president. GEORGIA HYDRAULIC: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Georgia Hydraulic Cylinders, Inc. 110 Vista Boulevard Arden, NC 28704 Bankruptcy Case No.: 11-10689 Chapter 11 Petition Date: July 12, 2011 Court: U.S. Bankruptcy Court Western District of North Carolina (Asheville) Judge: George R. Hodges Debtor's Counsel: Jessie C. Fontenot, Jr., Esq. STRAUCH FITZGERALD GREEN P.C. 118 South Cherry Street Winston-Salem, NC 27101 Tel: (336) 837-1063 Fax: (336) 725-8867 E-mail: jfontenot@sfandglaw.com - and - Rodney L. Eason, Esq. THE EASON LAW FIRM 6510 Old National Highway Atlanta, GA 30349-4357 Tel: (770) 909-7200 Fax: (770) 909-0644 E-mail: reason@easonlawfirm.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/ncwb11-10689.pdf The petition was signed by Joe H. Bajjanni, president. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- RLB Friendship, LLC 11-10690 07/12/11 GEOFFREY THOMPSON: Plans to Convert Case to Chapter 7 ----------------------------------------------------- Wendy Culverwell at Portland Business Journal reports that Ted Trautman, attorney of Geoff Thompson, confirmed that he will seek conversion of the bankruptcy case of Mr. Thompson to Chapter 7, which means his assets will be liquidated and distributed among creditors. According to the report, an accidental fire on July 10 shuttered the inn and forced dozens of brides and grooms to seek alternate accommodations for their summer weddings. Business Journal previously reported that Geoffrey Thompson, who owns the historic View Point Inn in Corbett, Oregon, with his partner, Angelo Simione, filed for Chapter 11 bankruptcy to prevent an auction to satisfy debts to contractors. Mr. Thompson, according to the report, said the bankruptcy move protects the real estate while providing breathing room to reorganize his finances. He pledged to work out a payment schedule for creditors. He disclosed approximately $1.7 million in unsecured debt on his bankruptcy petition. Geoffrey Thompson filed for Chapter 11 protection (Bankr. D. Ore. Case No. 11-35376) on June 20, 2011. GM PINE: Bankruptcy Filing Delays Building's Foreclosure Sale ------------------------------------------------------------- Eric Pryne at the Seattle Times reports that GM Pine Street Garage, the owner of the Macy's parking garage in downtown Seattle, filed for Chapter 11 bankruptcy protection, hours before a bank was to foreclose on the nine-story building. Lender, Capmark Bank of Utah, filed a notice later that day rescheduling the sale for Sept. 30, 2011. According to the report, in previous filings with King County, Capmark said Pine Street Garage stopped making payments on a 2008 mortgage loan last November, and now owes the bank more than $15 million. A court-appointed receiver took control of the property in March. Based in Portland, Oregon, GM Pine Street Garage LLC filed for Chapter 11 bankruptcy protection on June 23, 2011 (Bankr. W.D. Wash. Case No. 11-17493). Judge Karen A. Overstreet presides over the case. Shelly Crocker, Esq., at Crocker Law Group PLLC, represents the Debtor. The Debtor estimated both assets and debts of between $10,000,001 and $50,000,000. GM PINE: Seeks to File Remainder of Schedules by Aug. 8 ------------------------------------------------------- GM Pine Street Garage LLC asks the Bankruptcy Court to extend its deadline to file its schedules and statement of financial affairs to Aug. 8, 2011. The Debtor's counsel has notified the United States Trustee's office as to the status of the case and reasons why the balance of schedules cannot be finalized for filing and service by the deadline of July 7, 2011. In March 2011, secured creditor Capmark Bank sued the Debtor in King County Superior Court for the State of Washington, case no. 11-2-09678-5SEA, for appointment of a custodial receiver. The state court granted the request and appointed JSH Properties, Inc. Capmark Bank scheduled a foreclosure sale against the Property for June 24, 2011, forcing the Debtor to seek bankruptcy protection. According to the Debtor, until the Company and the receiver can reach an agreement or an order is entered for turnover of the assets, at this time it will not be able to submit an accurate and complete set of Schedules. About GM Pine Street Garage GM Pine Street Garage LLC is a single asset limited liability company, with 100% ownership interest in real and personal property that consists of a parking garage at 1601 Third Avenue, in Seattle, Washington. GM Pine Street Garage filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 11-17493) on June 23, 2011. Judge Karen A. Overstreet presides over the case. Shelly Crocker, Esq., and Crocker Law Group PLLC serves as the Debtor's bankruptcy counsel. The Debtor estimated assets and debts between $10 million and $50 million in its petition. The petition was signed by Jimmy Drakos, Willamette Capital Group LLC, as manager. GM PINE: Contractor Wants Stay Relief to Pursue State Court Suit ---------------------------------------------------------------- PCL Construction Services, Inc., asks the Bankruptcy Court to lift the automatic stay in GM Pine Street Garage LLC's bankruptcy case so PCL may proceed to trial in a King County Superior Court action against a so-called Release of Lien Bond issued by Old Republic Surety Company on behalf of Capmark Bank to secure and guarantee PCL's Claim of Lien against the Pine Garage property. PCL was the general contractor for a parking garage renovation project in downtown Seattle initiated by Pine Garage LLC and ultimately assigned to debtor GM Pine Street Garage LLC. PCL performed extensive improvements in accordance with its contract with GM Pine, but was not paid for more than $2.2 million of work performed. PCL timely filed and recorded a mechanic's lien and a subsequent amendment to that lien, as provided by Washington statute. On Dec. 9, 2009, PCL initiated the lien foreclosure action against the Debtor in King County Superior Court, PCL Construction Services, Inc. v. Pine Garage, LLC et al., Case No. 09-2-44446-3. secured creditor Capmark was named as defendant in the State Court Litigation because of its interest in the Debtor's property. On Jan. 29, 2010, Old Republic issued a Release of Lien Bond in the penal sum of $3,439,140, naming Capmark as Grantor and PCL as Grantee. Under Washington law, the Release of Lien Bond serves to guarantee PCL's lien claim and to sever the Lien from the GM Pine property. On June 2, 2010, PCL duly amended its complaint in the State Court Litigation to add Old Republic as a defendant. According to PCL, the result of recording the Release of Lien Bond is that PCL no longer seeks the sale of the Debtor's property through foreclosure. Instead, PCL seeks confirmation on the validity of its lien and for judgment upon the lien against the Old Republic Release of Lien Bond. By operation of RCW 60.04.061, the effect of filing the Release of Lien Bond was to release the Property from the PCL Lien. PCL does not seek to proceed against the Debtor's Property. As of May 6, 2011, PCL's claim, including principal, interest and attorneys fees, totalled $3,193,133.40, significantly less than the amount of the Release of Lien Bond. To the extent PCL prevails in the State Court Litigation, PCL's claim will be paid from the Bond. PCL contends the Bond constitutes non-estate property. Trial in the State Court Litigation is scheduled for August 8, 2011. The Bankruptcy Court is slated to hear PCL's request at a July 22 hearing. PCL is represented by: Christine M. Tobin-Presser, Esq. BUSH STROUT & KORNFELD LLP 5000 Two Union Square 601 Union Street Seattle, WA 98101-2373 Tel: (206) 292-2110 Fax: (206) 292-2104 E-mail: ctobin@bskd.com About GM Pine Street Garage GM Pine Street Garage LLC is a single asset limited liability company, with 100% ownership interest in real and personal property that consists of a parking garage at 1601 Third Avenue, in Seattle, Washington. GM Pine Street Garage filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 11-17493) on June 23, 2011, to stave off a foreclosure sale by secured lender Capmark Bank. Judge Karen A. Overstreet presides over the case. Shelly Crocker, Esq., and Crocker Law Group PLLC serves as the Debtor's bankruptcy counsel. The Debtor estimated assets and debts between $10 million and $50 million in its petition. The petition was signed by Jimmy Drakos, Willamette Capital Group LLC, as manager. GREAT ATLANTIC: Court OKs Togut Segal as Conflicts Counsel ---------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has approved Great Atlantic & Pacific's application to employ Togut, Segal & Segal LLP as conflicts counsel. Togut will perform services for matters that are not appropriately handled by lead bankruptcy counsel Kirkland & Ellis LLP, or other counsel to the Debtors, because of a potential or actual conflict of interest, or alternatively, matters which the Debtors or K&E request be handled by the Togut. The Debtors say Togut is a "disinterested person" as defined by Section 101(14), and used in Section 327(a) (as qualified by Section 1107(b)) of the Bankruptcy Code. Togut's current standard hourly rates are: (i) partners $800 to $935; (ii) associates and counsel $215 to $715; (iii) paralegals and law clerks $145 to $285. The firm will also seek reimbursement of out-of-pocket expenses. About Great Atlantic & Pacific Founded in 1859, Montvale, New Jersey-based Great Atlantic & Pacific is a leading supermarket retailer, operating under a variety of well-known trade names, or "banners" across the mid- Atlantic and Northeastern United States. It operates 395 supermarkets, combination food and drug stores, beer, wine, and liquor stores, and limited assortment food stores in Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and the District of Columbia. "Banners" include A&P (101 stores), Food Basics (12 stores), Pathmark (128 stores), Super Fresh (57 stores), The Food Emporium (16 stores), and Waldbaum's (59 stores). A&P employs roughly 41,000 employees, including roughly 28,000 part-time employees. Roughly 95% of the workforce are covered by collective bargaining agreements. A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010 in White Plains, New York. In its petition, A&P reported total assets of $2.5 billion and liabilities of $3.2 billion as of Sept. 11, 2010. Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C. Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. Lazard Freres & Co. LLC is the financial advisor. Huron Consulting Group is the management consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represent the Official Committee of Unsecured Creditors. GREDE FOUNDRIES: 7th Cir. Says Reedsburg Not Exempted From Stay --------------------------------------------------------------- The U.S. Court of Appeals for the Seventh Circuit held that the Reedsburg Utility Commission's efforts to collect on delinquent utility charges from Grede Foundries, Inc., violated the automatic stay. When Grede entered bankruptcy, the Wisconsin smelting plant owed more than $1.3 million in delinquent utility charges to the local municipal utility, Reedsburg Utility Commission. Months after Grede filed for bankruptcy, and despite the automatic stay that accompanied Grede's filing, Reedsburg implemented the process pursuant to state law by which it could collect on Grede's arrearage. Grede sought to enforce the stay. The bankruptcy court and the district court found that none of the exceptions to the automatic stay applied to Reedsburg's efforts to collect on Grede's debt, which is substantial considering that Grede's billings constituted more than one-third of Reedsburg's operating revenue. "We are sympathetic to Reedsburg's plight but the exceptions to the automatic stay do not apply to Reedsburg's efforts to collect on Grede's debt. We affirm," said Circuit Judge John Daniel Tinder, who wrote the opinion. The appellate case is Reedsburg Utility Commission, Plaintiff- Appellant, v. Grede Foundries, Inc., Debtor-Appellee, No. 10-2509 (7th Cir.). A copy of the Seventh Circuit's July 13, 2011 decision is available at http://is.gd/gxu24Zfrom Leagle.com. The panel consists of Circuit Judges Tinder and David Hamilton, and District Judge G. Patrick Murphy of the Southern District of Illinois, sitting by designation. About Grede Foundries Based in Reedsburg, Wisconsin, Grede Foundries, Inc. -- http://www.grede.com/-- produces ductile iron, grey iron and specialty metal parts. The Company serves the automotive, heavy truck, off-highway, diesel engine and industrial markets and is one of the largest cast-iron foundry companies in the United States. The Company sought Chapter 11 protection (Bankr. W.D. Wisc. Case No. 09-14337) on June 30, 2009. Daryl L. Diesing, Esq., Jerard J. Jensen, Esq., and Daniel J. McGarry, Esq., at Whyte Hirschboeck Dudek S.C., represent the Debtor. The Debtor selected Conway Del Genio Gries & Co. as its restructuring advisor; Leverson & Metz S.C. as special counsel; and Kurtzman Carson Consultants LLC as claims agent. The Debtor reported total assets of $143,983,000 and total debts of $148,243,000 at the petition date. Wayzata Investment Partners LLC purchased the business of Grede Foundries for $106.5 million in Feb. 2010 and merged it with Citation Corp. GREENBRIER COS: Execs.' Base Salaries Restored as Targets Met ------------------------------------------------------------- As disclosed June 1, 2011, the Compensation Committee conditionally approved the full restoration of annual base salaries of The Greenbrier Companies, Inc.'s executive officers to levels in place prior to the reductions made effective March 1, 2009, and base salary increases for certain of the Company's executive officers, subject to, among other things, the Company achieving profitability in the third fiscal quarter of 2011, such increases to be effective July 1. At its meeting on July 6, 2011, the Compensation Committee determined that the conditions for effectiveness were satisfied. As a result of the Committee's determination, the executive officer salary increases and the full restoration of executive officers' base salaries conditionally approved on May 25, 2011, were implemented, effective July 1, 2011. The Compensation Committee approved the amendment and restatement of the Greenbrier Leasing Company LLC Target Benefit Plan, a supplemental retirement plan which covers certain of the Company's executive officers, including named executive officers Mark J. Rittenbaum, Timothy A. Stuckey and Alejandro Centurion. The Target Benefit Plan was amended to make certain administrative and clarifying changes, to conform the definition of "change of control" to the definition used in the Company's compensation plans and agreements generally, and to limit the Company's obligation to pre-fund benefits in the event of a change of control to apply only with respect to certain participants whose employment terminates within 24 months following the change of control. The Compensation Committee approved the grant of 30,000 shares of the Company's common stock to William A. Furman. Half of the shares awarded are subject to time-based vesting and half are subject to performance-based vesting. A full-text copy of the filing is available for free at: http://is.gd/qR86Ra About Greenbrier Cos. Based in Lake Oswego, Oregon, The Greenbrier Companies Inc. operates in three primary business segments: manufacturing, refurbishment and parts, and leasing and services. The manufacturing segment, operating from four facilities in the United States, Mexico and Poland, produces double-stack intermodal railcars, conventional railcars, tank cars and marine vessels. The refurbishment & parts segment performs railcar repair, refurbishment and maintenance activities in the United States and Mexico. The leasing & services segment owns roughly 8,000 railcars and provides management services for roughly 225,000 railcars. The Company's balance sheet at May 31, 2011, showed $1.21 billion in assets, $853.76 million in liabilities and $363.97 million in total equity. * * * As reported by the TCR on April 5, 2011, Moody's Investors Service upgraded the ratings for The Greenbrier Companies Inc. Corporate Family Rating to 'B3' from 'Caa1'. The upgrade of the CFR reflects Moody's expectations that Greenbrier's earnings, revenues and financial performance will improve over the next 12 to 18 months as a result of growing demand for rail cars. Greenbrier is well position to benefit from improving industry conditions in the rail car manufacturing and leasing businesses, where continued growth in overall railroad freight volume will likely result in robust demand growth for new railcars. Greenbrier carries 'B-' issuer credit ratings from Standard & Poor's Ratings Services. S&P said in May 2010 that the ratings on Greenbrier reflect the company's fair business risk profile stemming from the cyclicality of the freight car manufacturing industry; the dramatic decline in demand for new railcars as a result of slower economic growth and weaker carloadings; and limited customer diversity. The Company, according to S&P, also has a highly leveraged financial risk profile, marked by increased debt balances as a result of acquisitions completed in recent years. HARVEST OAKS: Court Denies Request to Disgorge Retainers -------------------------------------------------------- Judge Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina denied the request to reconsider an order entered on March 23, 2011, denying disgorgement of retainers totaling $36,038 received by Trawick H. Stubbs, Jr. and Stubbs & Perdue, P.A., to represent Harvest Oaks Drives Associates, LLC. CSMC 2006-C5 Strickland Road, LLC, through its special servicer, LNR Partners, LLC, successor-in-interest to Column Financial, Inc., requested for the reconsideration. CSMC is the original mortgage lender and holder of a promissory note from Harvest Oaks in the principal amount of $13,475,000. At present, the status of the $5,808 is that counsel is prohibited from using those funds without further court order. The Court, in the order of March 23, 2010, stated that "[i]f the parties are unable to reach consensus on the issue of using cash collateral with respect to the retainer balance, they may file the appropriate cash collateral pleading to bring the matter back before the Court." About Harvest Oaks Harvest Oaks Drive Associates, LLC, owns a shopping center located at 9650 Strickland Road and 8801 Lead Mine Road, in Raleigh, North Carolina. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 10-03145) on April 21, 2010. Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. In its schedules, the Company disclosed $15,832,000 in assets and $14,634,161 in debts. HARVEST OAKS: Bankr. Administrator Wants Plan Confirmation Denied ----------------------------------------------------------------- Marjorie K. Lynch, U.S. Bankruptcy Administrator for the Eastern District of North Carolina, asks the U.S. Bankruptcy Court to deny confirmation of Harvest Oaks Drives Associates, LLC's First Amended Plan of Reorganization, until such time as the conditions set forth under Section 1129 of the Bankruptcy Code are met at the confirmation hearing. According to the Bankruptcy Administrator, the Debtor's Amended Plan names these classes and claims, among other things: -- Class 2 - Ad Valorem Taxes: The only amendment to this Class is the amount owed to Wake County Revenue Department. The initial amount was $222,000; it was amended to $155,635. Additionally, the Debtor states the 2010 property taxes were paid on Dec. 29, 2010 and is unaware of any other claims in this class. -- Class 4 - CSMC 2006-C5 Strickland Road, LLC. The Debtor objected to the claim, and pursuant to an Order dated Jan. 14, 2011, the Debtor's objection was allowed to the extent CSMC sought to recover interest at the default from August 2006 through Aug. 11, 2009, and denied to the extent that CSMC sought to recover at the default rate from Aug. 11, 2009, through April 21, 2010. The Debtor estimates that on the petition date, CSMC had a secured claim in the amount of $14,909,208, which includes $230,246 in taxes that CSMC paid on behalf of the Debtor for the 2010 property taxes. Since the Petition Date, the Debtor has been making monthly adequate protection payments to CSMC based on the Debtor's monthly cash collateral budgets. The total of these payments through May 1, 2011 are $451,279. The Debtor's obligation to CSMC shall remain secured by the same collateral as existed prior to the Petition Date. -- Class 7 - General Unsecured Claims: Debtor's previous Plan estimated the total amount owed this case to be $187,679. The Debtor has amended that amount to $2,625,665 and states it intends to file an objection to Claim Number 6 filed by Harvest Plaza Developers, LLC and asserts no amounts are due. The Debtor proposes this class to be paid in full, over a period of five years, with quarterly payments, commencing 18 months after the Effective Date and continuing thereafter for a period of five years. This figure has been calculated at $9,499 per quarter. -- Means of Implementation and Execution of Plan V-A: Debtor amended to remove the language of funds advanced by the guarantors of the Wachovia obligation as a source of implementing the Plan. The Debtor continues to intend to on making Plan payments through continued operations. -- Means of Implementation and Execution of Plan V-K: - Debtor amended to add Max Barbour, Individually and Harvest Oaks, LLC v. Horsley Law Firm, P.A. and Charles Jeffrey Horsley, 10 CVS 4273. The Debtor will be entitled to apply the proceeds from the Tax Lawsuit to payment of its Administrative Expenses without the need for such funds to be paid into the lockbox maintained by SCMC. -- Means of Implementation and Execution of Plan V-N: - Debtor amended the original Plan to shorten the number of months from 18 to 12 for the owner draws of president, Max Barbour, not to exceed $5,000 per month. The Bankruptcy Administrator is represented by: Parker M. Worth, Esq., staff attorney Eastern District of North Carolina 434 Fayetteville Street, Suite 620 Raleigh, NC 27601 Tel: (919) 856-4886 Fax: (919) 856-4692 E-mail: Parker_Worth@nceba.uscourts.gov About Harvest Oaks Harvest Oaks Drive Associates, LLC, owns a shopping center located at 9650 Strickland Road and 8801 Lead Mine Road, in Raleigh, North Carolina. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 10-03145) on April 21, 2010. Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. In its schedules, the Company disclosed $15,832,000 in assets and $14,634,161 in debts. HCA HOLDINGS: Beverly Wallace to Retire as Parallon President ------------------------------------------------------------- Beverly B. Wallace, President - Parallon Business Solutions of HCA Holdings, Inc., announced her retirement effective Dec. 31, 2011. The Company will select a successor to her position in due course. About HCA Inc. Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company with 162 hospitals and 104 freestanding surgery centers (including eight hospitals and eight freestanding surgery centers that are accounted for using the equity method) as of Sept. 30, 2010. For the twelve months ended Sept. 30, 2010, the company recognized revenue in excess of $30 billion. The Company's balance sheet at March 31, 2011, showed $23.81 billion in total assets, $31.59 billion in total liabilities, and a $7.78 billion stockholders' deficit. * * * As reported by the TCR on May 27, 2011, Moody's Investors Service upgraded the Corporate Family and Probability of Default Ratings of HCA Inc. (HCA) to B1 from B2. "The upgrade of HCA's rating reflects the considerable progress the company has made in improving financial metrics and managing the company's maturity profile since the November 2006 LBO," said Dean Diaz, a Moody's Senior Credit Officer. "While the funding of distributions to shareholders at the end of 2010 increased debt levels, the growth in EBITDA and debt repayment since the LBO have improved leverage metrics considerably from the high levels seen just after the company went private," continued Diaz. In the March 16, 2011, edition of the TCR, Fitch Ratings has upgraded its ratings for HCA Inc. and HCA Holdings Inc., including the companies' Issuer Default Ratings which were upgraded to 'B+' from 'B'. The Rating Outlook is revised to Stable from Positive. The ratings apply to approximately $28.2 billion in debt outstanding at Dec. 31, 2010. Fitch noted that HCA has made significant progress in reducing debt leverage since it was taken private in 2006 in a LBO which added $17 billion to the company's debt balance; at Dec. 31, 2006, immediately post the LBO, debt-to- EBITDA was 6.7x. Most of the reduction in debt leverage over the past four years was accomplished through growth in EBITDA, which Fitch calculates has expanded by $1.7 billion or 40% to $5.9 billion for 2010 versus $4.2 billion in 2006. Although the company did not undertake a significant organizational restructuring post the LBO, management has nevertheless been successful in growing EBITDA and significantly expanding discretionary free cash flow (FCF). Fitch believes this was accomplished through various operational initiatives, including expansion of profitable service lines and the divestiture of some under performing hospitals, as well as the generally resilient operating trend of the for-profit hospital industry during the recent economic recession despite the pressure of increased levels of uncompensated care and generally weak organic patient volume trends. HERITAGE CONSOLIDATED: Can Use Cash Collateral Through July 31 -------------------------------------------------------------- Heritage Consolidated, LLC and Heritage Standard Corporation and the Official Committee of Unsecured Creditors entered into a stipulation extending the Debtors' access of cash collateral through July 31, 2011, in accordance with a budget. Pursuant to the U.S. Bankruptcy Court for the Northern District of Texas' previous order authorizing the Debtors' use of cash collateral through June 30, 2011, the Debtors and the Committee are authorized to extend the use of cash collateral by written agreement filed with the Court. About Heritage Consolidated Heritage Consolidated LLC is a privately held company whose core operations consist of exploration for, and acquisition, production, and sale of, crude oil and natural gas. Heritage Consolidated filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 10-36484) on Sept. 14, 2010, in Dallas, Texas. Its affiliate, Heritage Standard Corporation, also filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 10-36485). Kevin D. McCullough, Esq., in Dallas, Texas, serves as counsel to the Debtors. The Debtors each estimated assets and debts of $10 million to $50 million. HILLSIDE VALLEY: Sec. 341(a) Creditors' Meeting Set for July 19 --------------------------------------------------------------- The United States Trustee for Region 3 will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of Hillside Valley LP on July 19, 2011, at 1:00 p.m. at 833 Chestnut Street, Suite 501, in Philadelphia. The Debtor's representative must be present at the meeting to be questioned under oath by the trustee and by creditors. Creditors are welcome to attend, but are not required to do so. The meeting may be continued and concluded at a later date without further notice. About Hillside Valley Hillside Valley, L.P., in Watchung, New Jersey, filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case No. 11-21689) on June 23, 2011. Judge Richard E. Fehling presides over the case. Fitzpatrick Lentz & Bubba, P.C., serves as the Debtor's chapter 11 counsel. The Debtor estimated assets and debts between $10 million and $50 million in its petition. The petition was signed by Richard J. Colasuonno, manager of the Debtor's general partner. HILLSIDE VALLEY: Hires Fitzpatrick Lentz as Bankruptcy Counsel -------------------------------------------------------------- Hillside Valley LP seeks Bankruptcy Court permission to employ Fitzpatrick Lentz & Bubba, P.C., as chapter 11 counsel. Douglas J. Smillie, Esq., a shareholder at the firm, attests that it doesn't hold or represent any interest adverse to the Debtor in connection with the bankruptcy proceeding. The firm served as pre-bankruptcy counsel to the Debtor but, as of the petition date, no amounts are owed for legal fees. During the 90-day period prior to the bankruptcy filing, the firm received from the Debtor $15,000 in the aggregate. The firm has billed $8,339 against the retainer. About Hillside Valley Hillside Valley, L.P., in Watchung, New Jersey, filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case No. 11-21689) on June 23, 2011. Judge Richard E. Fehling presides over the case. The Debtor estimated assets and debts between $10 million and $50 million in its petition. The petition was signed by Richard J. Colasuonno, manager of the Debtor's general partner. HILLSIDE VALLEY: Bank Wants Property to Stay With Receiver ---------------------------------------------------------- Investors Savings Bank is asking the Bankruptcy Court to let Altman Management Company continue as receiver of Hillside Valley, L.P.'s property located at 301-359 River Drive, Allentown, Lehigh County, Pennsylvania, and excuse Altman from the turnover requirements of 11 U.S.C. Sec. 543(b). Investors Savings Bank said the Debtor is insolvent and unable to pay its debts as they come due. Investors Savings Bank said it is a judgment creditor and asserts a first lien over the Debtor's Allentown property. The bank said the Debtor defaulted on an $18,650,000 construction and permanent loan it provided. The bank sued in the Court of Common Pleas of Lehigh County to place the Debtor in the hands of a receiver. The Court scheduled a sheriff's sale for June 24. The Debtor sought bankruptcy protection on the eve of the sale. About Hillside Valley Hillside Valley, L.P., in Watchung, New Jersey, filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case No. 11-21689) on June 23, 2011. Judge Richard E. Fehling presides over the case. The Debtor estimated assets and debts between $10 million and $50 million in its petition. The petition was signed by Richard J. Colasuonno, manager of the Debtor's general partner. HOLLYWOOD MOTION: Marilyn Monroe Dress Sold for $4.6-Mil. --------------------------------------------------------- Kristen MacBeth at BankruptcyHome.com reports that actress Debbie Reynolds is in the midst of a Chapter 11 bankruptcy but has several assets at her disposal that could assist her through the proceedings. According to the report, the Hollywood Motion Picture and Television Museum, a nonprofit organization in California that Reynolds founded in 1972, is seeking reorganization under Chapter 11, and recently held an auction to sell off some of its most prized memorabilia. That includes the iconic dress that Marilyn Monroe wore during the infamous subway scene in The Seven Year Itch. The dress, which was originally purchased for $200, was sold for $4.6 million, according to Reuters. The organization's bankruptcy lawyer, Peter Susi, told the Bankruptcy Beat that the filing occurred over confusion concerning how much the museum owed on a $1 million loan. He added that filing for bankruptcy protection under Chapter 11 will halt any impending lawsuit. About Hollywood Motion Picture Creston, California-based Hollywood Motion Picture and Television Museum -- http://www.hmpc.tv/-- is a California non-profit organization that actress Debbie Reynolds founded to build a museum for her collection of Hollywood memorabilia. It owns the artifacts of Hollywood's Golden Age that Ms. Reynolds collected over several decades. The Hollywood Motion Picture and Television Museum filed for Chapter 11 bankruptcy protection on June 12, 2009 (Bankr. C.D. Calif. Case No. 09-12311). Judge Robin Riblet presides over the case. Peter Susi, Esq. -- cheryl@msmlaw.com -- in Santa Barbara, California, serves as counsel to the Debtor. In its petition, the Debtor estimated assets of $10 million to $50 million and debts of $1 million to $10 million. Hollywood Motion Picture Trust filed for Chapter 11 bankruptcy on February 24, 2010 (Bankr. C.D. Calif. Case No. 10-10864) also before Judge Riblet. Peter Susi, Esq., also serves as counsel to the Trust. In schedules filed together with the petition, the Trust disclosed total assets of $5,261,474, and total debts of $5,556,944. The bankruptcy judge confirmed the Debtor's liquidation plan in September 2010. HW PARTNERS: Case Summary & 10 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: HW Partners, LLC 10 N. Madison Walla Walla, WA 99362 Bankruptcy Case No.: 11-03366 Chapter 11 Petition Date: July 8, 2011 Court: United States Bankruptcy Court Eastern District of Washington (Spokane/Yakima) Debtor's Counsel: Timothy J. Carlson, Esq. CARLSON BOYD & BAILEY PLLC 230 S 2nd St., Suite 202 Yakima, WA 98901 Tel: (509) 834-6611 Fax: (509) 834-6610 E-mail: tcarlson@cbblawfirm.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 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/waeb11-03366.pdf The petition was signed by Justin M. Wylie, member. INDENTURE INVESTMENTS: Swan Group Calls Default, Takes JDC ---------------------------------------------------------- The Swan Group of Companies, Inc. reported that a special meeting of the Board of Directors of James Denverson Corporation ("JDC"), an 80%-owned subsidiary of Indenture Investments, Ltd. of Ontario, Canada was held on June 6, 2011 to resolve several continuing breaches and defaults pursuant to a Share Exchange Agreement by and between Swan Group and Indenture, which was prepared in May, 2009, but never fully executed by the parties. Despite repeated demands and notices by Swan Group for Indenture to complete the terms of the Agreement and to fulfill its responsibilities and liabilities thereunder, Swan Group has asserted that Indenture had failed to do so. In addition, Swan Group has for the past several months attempted to communicate with Indenture and, to the best of Swan Group's knowledge and belief, Indenture has abandoned any and all of its operations, caused its common shares to be delisted from the Frankfurt Stock Exchange, its officers and directors have either resigned or failed to communicate with anyone from the Company and no public announcements with respect to Indenture's intentions have been released. In light of the above, the Board of Directors of James Denverson Corporation ("JDC"), consisting solely of one Director, David W. Dube, who was appointed to the JDC Board on October 1, 2010 and who is also a Director of the Company, convened a special meeting of the JDC Board on June 6, 2011 in accordance with the laws of the State of Nevada. At such meeting, the sole Director recognized and accepted the resignations of the prior Directors and appointed a new Director, Mr. Stephen A. Cerrone, to the JDC Board. In addition, the new Board formally declared in default the Agreement and voted to proceed to dissolve any and all of the terms of the Agreement and to return both control and the operations of James Denverson Corporation to Swan Group. At such meeting, the Board appointed David W. Dube as President and Chief Executive Officer to formally effect the dissolution of the Agreement and to proceed with the commencement of operations under the full control of Swan Group. Swan Group can be reached at: For Swan Group of Companies, Inc. James Denverson Corporation Mr. David W. Dube, Tel: (727) 536-7100 President - or - Investor Relations: Swan Group of Companies Karl Burghart E-mail: burghart@activist.com INMAR INC: S&P Assigns Prelim. 'B+' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B+' corporate credit rating to the Winston-Salem, N.C.-based Inmar Inc. The outlook is stable. "At the same time, we assigned a preliminary 'B+' rating (the same as the corporate credit rating) to the company's proposed $240 million senior secured credit facilities consisting of a $210 million term loan B and a $30 million revolving credit facility. We also assigned a preliminary '4' recovery rating to the debt, indicating our expectations of substantial (30%-50%) recovery of principal in the event of default," S&P stated. The company intends to use the proceeds of the term loan to repay its existing term loan and subordinated notes, fund a dividend to equityholders, and pay fees associated with the transaction. "The speculative-grade ratings on Inmar reflect our expectation that the company will have stable operating performance in the near term and enhance credit ratios with debt reduction from free cash flow," said Standard & Poor's credit analyst Charles Pinson- Rose. "We view the company's financial risk profile as aggressive. We also assess its business risk as weak. This incorporates our belief that Inmar generally has stable and recurring businesses, but that unfavorable macroeconomic and industry conditions could have a negative effect on the company's reverse logistics business and overall profits." INNKEEPERS USA: Ontario Debtors' Plan Effective ----------------------------------------------- BankruptcyData.com reports that Innkeepers USA Trust's Ontario Debtors' have emerged from Chapter 11 protection. The other Debtors have yet to emerge from bankruptcy. As reported in the Troubled Company Reporter on June 30, 2011, Innkeepers USA Trust and its affiliates disclosed that less than a year after the Company entered Chapter 11, the United States Bankruptcy Court for the Southern District of New York entered an order confirming the Company's chapter 11 plan of reorganization. The Court's approval of the plan, which was supported by the Company's secured lenders and has been accepted by more than 90 percent of Innkeepers' unsecured creditors and shareholders, clears the way for Innkeepers to emerge from Chapter 11. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and 91 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-13800) on July 19, 2010. Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in Washington, D.C., serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. Attorneys at Morrison & Foerster, LLP, represent the Official Committee of Unsecured Creditors. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. The confirmation hearing for approval of Innkeepers' Chapter 11 plan is set for June 23. IRISH LIFE: DBRS Cuts Dated Subordinated Debt Rating to 'D' ----------------------------------------------------------- DBRS Inc. has downgraded the Dated Subordinated Debt rating of Irish Life & Permanent plc to "D" from "C". The downgrade follows the execution of the Group's note tender offer. The default status for the purchased and now-extinguished notes reflects DBRS's view that bondholders were offered limited options and that a distressed exchange has now occurred, which is considered a default under DBRS policy, as discussed in DBRS's press release dated June 8, 2011. This rating action affects the following securities issued by IL&P and rated by DBRS; Variable Rate Notes due March 2023 (ISIN XS0165027664), Callable Subordinated Floating Rate Notes due 2015 (ISIN XS0226352713), Step-Up Floating Rate Notes due 10 August 2015 (ISIN XS0226430022), Floating Rate Notes due 2016 (ISIN XS0274209583), Subordinated Callable Floating Rate Notes due 2017 (ISIN XS0295772189), Fixed/Floating Rate Step-Up Callable Subordinated Notes due 2017 (ISIN XS0299987288), Floored CMS Linked Notes due June 2018 (ISIN XS0369699623) and Subordinated Callable Fixed Rate Notes due 2018 (ISIN XS0371760363). ISAACSON STRUCTURAL: Passumpsic Wants Working Capital Loan Denied ----------------------------------------------------------------- Creditor Passumpsic Savings Bank asks the U.S. Bankruptcy Court District of New Hampshire to deny Isaacson Structural Steel, Inc.'s request to enter into a working capital financing arrangement with Cate Street Capital, Inc. Passumpsic is the Debtor's largest creditor, holding approximately $13 million in claims against the Debtor, which claims are secured by priority security interests in all of the Debtor's assets, including real estate, equipment, inventory and accounts receivable and the proceeds thereof. Passumpsic relates that, under the terms of the financing to be entered, only the professional fees of Debtor's counsel will be potentially payable from the DIP Loan funds. By contrast, it appears that none of the borrowed funds will be available to pay any other professionals that the Debtor or the creditors committee may seek to retain in the case. As reported in the Troubled Company Reporter on July 12, 2011, the Debtor sought for Bankruptcy Court approval of up to $500,000 in bridge financing with Cate Street. The loan will bear interest at the rate of 5.25%, and will mature Sept. 30, 2011. The loan will be paid from the proceeds of collateral for the financing or from the proceeds of a $2.25 million financing expected to be made by the New Hampshire Business Finance Authority and the North Country Industrial Development Corporation through a New Market Tax Credits financing transaction. According to Passumpsic, the Debtor cannot meet the requirements with regard to the proposed financing agreement outlined in the DIP Loan motion. The Debtor would grant Cate a first-priority security interest in and to the proceeds of a future postpetition loan from Cate Street to the Debtor in the amount of approximately $2,250,000. About Isaacson Structural Steel Based in Berlin, New Hampshire, Isaacson Structural Steel, Inc., filed for Chapter 11 bankruptcy (Bankr. D. N.H. Case No. 11-12416) on June 22, 2011. Bankruptcy Judge J. Michael Deasy presides over the case. William S. Gannon PLLC serves as the Debtor's counsel. Isaacson Structural Steel estimated both assets and debts of $10 million to $50 million. The petition was signed by Arnold P. Hanson, Jr., president. An official committee of unsecured creditors has been appointed in Isaacson Structural Steel's case. A bankruptcy petition was also filed for Isaacson Steel, Inc. (Bankr. D. N.H. Case No. 11-12415) on June 22, 2011, estimating assets and debts of $1 million to $10 million. The petition was signed by Arnold P. Hanson, Jr., president. William S. Gannon, Esq., also represents Isaacson Steel. William K. Harrington, the U.S. Trustee, appointed five members to the Official Committee of Unsecured Creditors in the Debtor's case. JAMES F. BYRNES: School Files Reorganization Plan ------------------------------------------------- Tucker Mitchell at SCnow.com reports that the Byrnes Schools has filed a reorganization plan in its Chapter 11 bankruptcy proceedings and is awaiting a judge's decision before proceeding with payments to creditors. The report recounts that First Citizens Bank's decision to call Byrnes' $1.6 million loan last winner led to a foreclosure auction being scheduled. The Debtor negotiated a repayment plan but the bank turned down the proposal. The auction was cancelled after the bankruptcy filing. Led by headmaster John Colby, the school has filed a Chapter 11 plan, which provides that smaller creditors will be paid in full. Colby did not say if First Citizen's would be paid the full amount. The bank is expected to object to the plan. About James F. Byrnes The Byrnes Schools was established in Quinby, South Carolina, in 1965. It is the only non-for-profit private institution that teaches children from pre kindergarten to 12th grade. James F. Byrnes Academy, doing business as The Byrnes Schools, filed for Chapter 11 reorganization (Bankr. D. S.C. Case No. 11- 00538) on Jan. 31, 2011. H. Flynn Griffin, III, Esq., at Anderson Law Firm, in Columbia, South Carolina, serves as counsel to the Debtor. The Debtor estimated assets and debts of $1 million to $10 million. JARA: Suddenly Closed; USB Signs Up With New Firm ------------------------------------------------- IBT said in a statement that it has signed up a new client, Union State Bank, in Kewaunee, Wisconsin. USB, according to the press release, had been working with Jara, a check processing vendor that unexpectedly and abruptly announced its sudden closure. Cedar Park, Texas-based IBT provides real time channel integration software applications. JAMES DONNAN: Seeks Bankruptcy Protection After GLC Counter Claim ----------------------------------------------------------------- James Donnan, III and hits wife filed a joint Chapter 11 petition (Bankr. M.D. Ga. Case No. 11-31083) on July1, 20 11. Bill Rosenberger at the Herald-Dispatch reports that Donnan, a former Marshall University head football coach, estimated his liabilities between $10 million and $50 million and assets of between $1 million to $10 million. The report says the federal documents state the largest creditor to be GLC Limited at $8.25 million, though it is listed as "disputed." A May 9 court filing in the Chapter 11 case of GLC limited listed Donnan as GLC's first investor. It only stated Donnan "invested a substantial amount" and received "certain commissions as alleged therein" for his work in soliciting additional investors for the company. GLC, now being led by James Burritt as chief restructuring officer, has asked the bankruptcy court in Ohio for permission to get its hands on the bank records and local, state and federal incomes tax returns from 2007 to present of James Donnan. Mr. Donnan is listed individually as a creditor as well as an officer with J &M Brands of Jacksonville, Florida, and having an interest in Mountaineer Wings of Huntington with Dr. Victor York of Chesapeake. J&M is one of the 20 largest unsecured creditors in the case, holding $588,500 in claims. The next largest claim is from Donnan Dyleski LLC of Watkinsville, Georgia, at $550,000. The representative listed is Todd Donnan, James Donnan's son. About GLC Limited Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection on Feb. 28, 2011 (Bankr. S.D. Ohio Case No. 11-11090). Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. JOHN HOLDEN: North Carolina Mayor Seeks Bankruptcy Protection ------------------------------------------------------------- John Wayne Holden, real estate figure filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 11-05177) on July 5, 2011. Wayne Faulkner at StarNewsOnline.com reports that John Wayne Alan Holden is the mayor of Holden Beach, North Carolina and a prominent real estate figure. According to the report, among debts listed by Mayor Holden are more than $48,000 to his own town and $126,000 to Brunswick County, most of the latter in property taxes. Assets were not listed in the initial filing, though the document put them at $10 million to $50 million. Mayor Holden emphasized that all his licenses and companies -- Alan Holden Realty, Alan Holden Vacations and Re/Max at the Beach -- are in good standing. He said customers wouldn't experience anything different. Mayor Holden emphasized that all debts will be paid and that the ratio of his assets to debts are "well within the green light," even though real estate prices have dropped 50 percent. Star News reports that among other Holden creditors are Security Savings Bank, of Southport, owed more than $1 million, and Wachovia Bank, owed more than $400,000, according to court records. Of the debts to Holden Beach, $18,000 is for a road assessment. Brunswick County is owed $18,000 for a sewer assessment, according to the filing. K-V PHARMACEUTICAL: Amends 20MM Class A Common Shares Offering -------------------------------------------------------------- K-V Pharmaceutical Company filed with the U.S. Securities and Exchange Commission a Pre-Amendment No.1 to Form S-1 registration statement relating to the selling stockholders' offer and sell from time to time up to 20,038,410 shares of the Company's Class A Common Stock issuable upon the exercise of warrants held by the selling stockholders. The Company will not receive any of the proceeds from the exercise of the warrants or from the sale of the shares of the Company's Class A Common Stock by the selling stockholders. Except for underwriting discounts and selling commissions, which may be paid by the selling stockholders, the Company has agreed to pay the expenses incurred in connection with the registration of the shares of Class A Common Stock covered by this prospectus. The selling stockholders may sell the shares of Class A Common Stock from time to time at market prices prevailing at the time of sale, prices related to prevailing market prices or privately negotiated prices. The selling stockholders may sell the shares of Class A Common Stock to or through underwriters, brokers or dealers or directly to purchasers. Underwriters, brokers or dealers may receive discounts, commissions or concessions from the selling stockholders, purchasers in connection with sales of the shares of Class A Common Stock, or both. The Company's Class A Common Stock is traded on the New York Stock Exchange under the symbol "KV.A". On July 5, 2011, the closing price of the Company's Class A Common Stock on the NYSE was $2.98 per share. A full-text copy of the amended prospectus is available for free at http://is.gd/cgf7sy About K-V Pharmaceutical Company K-V Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. The Company reported a net loss of $174.0 million on $27.3 million of net revenues for fiscal 2011, compared with a net loss of $283.6 million on $9.1 million of net revenues for fiscal 2010. The loss from continuing operations was $156.2 million and $285.6 million in fiscal 2011 and fiscal 2010, respectively. The Company's balance sheet at March 31, 2011, showed $564.7 million in total assets, $938.7 million in total liabilities, and a stockholders' deficit of $374.0 million. BDO USA, LLP, in Chicago, Illinois, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suspended the shipment of all but one of the products manufactured by the Company and must comply with a consent decree with the Food and Drug Administration before approved products can be reintroduced to the market. K-V PHARMACEUTICAL: Amends 9.95MM Class A Common Shares Offering ---------------------------------------------------------------- K-V Pharmaceutical Company filed with the U.S. Securities and Exchange Commission Pre-Effective Amendment No.1 to Form S-1 registration statement relating to selling stockholders' offer and sell from time to time up to 9,950,000 shares of the Company's Class A Common Stock. The Company will not receive any of the proceeds from the sale of shares of the Company's Class A Common Stock by the selling stockholders. This prospectus does not cover the issuance of any shares of Class A Common Stock by the Company to the selling stockholders. Except for underwriting discounts and selling commissions, which may be paid by the selling stockholders, the Company has agreed to pay the expenses incurred in connection with the registration of the shares of Class A Common Stock covered by this prospectus. The selling stockholders may sell the shares of Class A Common Stock from time to time at market prices prevailing at the time of sale, prices related to prevailing market prices or privately negotiated prices. The selling stockholders may sell the shares of Class A Common Stock to or through underwriters, brokers or dealers or directly to purchasers. Underwriters, brokers or dealers may receive discounts, commissions or concessions from the selling stockholders, purchasers in connection with sales of the shares of Class A Common Stock, or both. The Company's Class A Common Stock is traded on the New York Stock Exchange under the symbol "KV.A". On July 5, 2011, the closing price of the Company's Class A Common Stock on the NYSE was $2.98 per share. A full-text copy of the amended prospectus is available for free at http://is.gd/fHzq3N About K-V Pharmaceutical Company K-V Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. The Company reported a net loss of $174.0 million on $27.3 million of net revenues for fiscal 2011, compared with a net loss of $283.6 million on $9.1 million of net revenues for fiscal 2010. The loss from continuing operations was $156.2 million and $285.6 million in fiscal 2011 and fiscal 2010, respectively. The Company's balance sheet at March 31, 2011, showed $564.7 million in total assets, $938.7 million in total liabilities, and a stockholders' deficit of $374.0 million. BDO USA, LLP, in Chicago, Illinois, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suspended the shipment of all but one of the products manufactured by the Company and must comply with a consent decree with the Food and Drug Administration before approved products can be reintroduced to the market. KAZI FOODS: Frontline to Provide Real Estate Advisory Services -------------------------------------------------------------- Frontline Real Estate Partners, LLC, a real estate consulting and advisory firm, has been retained to act as real estate advisor for the real estate assets involved in Kazi Foods' Chapter 11 bankruptcy proceedings. Frontline Real Estate Partners will provide real estate advisory and disposition services to market Kazi Foods' portfolio of fee properties and restructure existing leases. "This engagement requires the ability to manage a complex real estate portfolio, an understanding of property values across numerous assets and markets and the expertise to perfect a seamless and streamlined marketing, disposition and leasehold restructuring process to produce maximum proceeds and cost savings," said Joshua Joseph, principal at Frontline Real Estate Partners. "We'll draw upon our deep understanding of the intricacies of the restaurant industry to confront the challenges associated with the volume and geographic breadth of Kazi Foods' real estate assets and to maximize their value for the company." Frontline won a competitive bid to serve as real estate advisor in the Kazi Foods bankruptcy proceedings because of the firm's track record of successful portfolio valuation, disposition and restructuring engagements in other high-profile bankruptcies, and its expertise in the restaurant industry, including past engagements with: Lone Star Steakhouse & Saloon, Cooker Restaurants, Granite City Food & Brewery and Uno Chicago Grill Pizzeria. About Frontline Frontline Real Estate Partners, LLC focuses on providing real estate consulting and advisory services in bankruptcy and distressed situations. Frontline serves as a trusted advisor to lenders, bankruptcy attorneys, turnaround consultants and companies with real estate restructuring needs. Principal services include strategic advising and consulting on portfolio management, restructuring, disposition, receivership and turnarounds. The company is an experienced and sophisticated buyer of real estate assets, with the company's leadership having acquired a substantial portfolio of retail and industrial assets, including sale-leasebacks and empty facilities. The company is headquartered outside of Chicago, Ill. About Kazi Foods Kazi Foods is the second-largest Kentucky Fried Chicken franchisee and the 11th-largest restaurant franchisee in the world. The bankruptcy filing by four of its 11 entities affects approximately 130 restaurant locations across Michigan, Florida, New York, New Jersey and Maryland. Kazi Foods of Annapolis, Inc., filed a Chapter 11 petition (Bankr. E.D. Mich. Case No. 11-47556) on March 21, 2011. Kazi Foods of New York, Inc., simultaneously sought Chapter 11 protection (Case No. 11-47551). Two affiliates, Kazi Foods of Michigan, Inc. (Case No. 11-43971) and Kazi Foods of Florida, Inc. (11-43986), filed for Chapter 11 in February 2011. KTLA LLC: Sec. 341 Creditors' Meeting Set for July 26 ----------------------------------------------------- The United States Trustee for the Northern District of California will hold a First Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of KTLA LLC on July 26, 2011, at 10:30 a.m. at the U.S. Trustee Office at 235 Pine Street, Suite 850, in San Francisco. Proofs of claim are due in the case by Oct. 24, 2011. The Debtor's representative must be present at the meeting to be questioned under oath by the trustee and by creditors. Creditors are welcome to attend, but are not required to do so. The meeting may be continued and concluded at a later date without further notice. San Francisco, California-based KTLA LLC filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-32401) on June 27, 2011. Judge Thomas E. Carlson presides over the case. Reno F.R. Fernandez, Esq., at MacDonald and Assoc. Iain A. Macdonald, Esq., and Reno F.R. Fernandez, Esq. -- iain@macdonaldlawsf.com and r.fernandez@macdonaldlawsf.com -- at Macdonald and Associates, serve as bankruptcy counsel. In its petition, KTLA estimated assets and debts of $10 million to $50 million. The petition was signed by Graham Seel, SVP, California Mortgage and Realty. KTLA LLC: Chapter 11 Status Conference Set for Aug. 8 ----------------------------------------------------- The Bankruptcy Court will hold a Chapter 11 Status Conference on Aug. 8, 2011, at 9:30 a.m. at San Francisco Courtroom 23. Status Conference Statements are due by Aug. 1. San Francisco, California-based KTLA LLC filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-32401) on June 27, 2011. Judge Thomas E. Carlson presides over the case. Reno F.R. Fernandez, Esq., at MacDonald and Assoc. Iain A. Macdonald, Esq., and Reno F.R. Fernandez, Esq. -- iain@macdonaldlawsf.com and r.fernandez@macdonaldlawsf.com -- at Macdonald and Associates, serve as bankruptcy counsel. In its petition, KTLA estimated assets and debts of $10 million to $50 million. The petition was signed by Graham Seel, SVP, California Mortgage and Realty. LAKEVIEW BASEBALL CLUB: $3 Million Foreclosure Judgment Issued -------------------------------------------------------------- Ameet Sachdev at Chicago Tribune reports that a suburban bank has obtained a foreclosure judgment of more than $3 million against the owners of a building that houses a Wrigley Field rooftop club. According to the report, the Lakeview Baseball Club, 3633 N. Sheffield Ave., has been operating in receivership since last year when First Personal Bank, based in Orland Park, filed a foreclosure suit alleging that the building's owners defaulted on two loans. The report relates that the lender issued a $2.8 million loan in 2006 and a second, junior loan for $350,000. Cook County Circuit Judge Darryl Simko ordered July 8 that the property be sold at public auction next month, the report notes. But the owners are negotiating to sell the building privately before the public sale, said their attorney Martin Oberman, a former Chicago alderman, Chicago Tribune says. Mr. Oberman represents the children of Robert Racky, a Chicago developer, who started the first rooftop business in 1988 as a private club, Chicago Tribune says. The Lakeview Baseball Club is best known for the tote board under its rooftop seats that details the years elapsed since the Cubs' last division, league and World Series titles. Chicago Tribune discloses that since then many of the apartment buildings surrounding Wrigley have opened rooftop businesses, turning a novelty into multi-million-dollar businesses. Chicago Tribune relates that the rooftops pay royalties to the Cubs as part of a 2004 legal settlement. Even in an uncertain economy, the Racky property is expected to draw much interest, Chicago Tribune notes. Chicago Tribune also discloses Mr. Simko appointed a receiver last year after the lender expressed concerns that money from Lakeview bookings was being diverted to unrelated purposes. The Rackys did not contest the foreclosure proceedings. Earlier this year the judge entered a default order against the various Racky corporate entities that own the building, Chicago Tribune says. In the foreclosure judgment, Mr. Simko also held the defendants liable for money owed to Bauch & Michaels, a Chicago law firm, a general contractor and an architect whose debts were secured by the building, Chicago Tribune adds. LAMBUTH UNIVERSITY: Court OKs Payment of Wages to Employees ----------------------------------------------------------- Tajuana Cheshier at the Jackson Sun reports that employees on salary at Lambuth University will receive their first full paycheck after a bankruptcy judge's approval authorizing the school to issue the payment. According to the report, attorneys were in court this morning to discuss two issues -- to request authorization to pay about $87,000 in payroll and making an assurance of payment to Jackson Energy Authority. Lambuth University in Jackson, Tennessee, said in its Web site that the trustees of the liberal arts school, founded in 1843, decided to close the school effective June 30. Lambuth filed for Chapter 11 protection (Bankr. W.D. Tenn. Case No. 11-11942) in Jackson, Tennessee on the same day. Steven N. Douglass, Esq., at Harris Shelton Hanover Walsh, PLLC, serves as counsel to the Debtor. The Debtor estimated assets of up to $10 million and debts of $10 million to $50 million as of the Chapter 11 filing. LAND TEJAS: Unit Files for Bankruptcy Protection ------------------------------------------------ Jennifer Dawson at the Houston Business Journal reports that an affiliate of Land Tejas Cos. -- one of the most prolific residential developers in Houston over the last decade -- was forced into bankruptcy by its creditors in connection with the 1,150-acre Discovery at Spring Trails community. According to the report, in addition, a distressed note held by Amegy Bank on the Montgomery County community was acquired in May by Austin-based Forestar Real Estate Group Inc. for $21 million. Land Tejas Spring Trails Ltd., the partnership that is developing Discovery, also changed its general partner last month. LAX ROYAL: Can Access Cash Collateral Until Sept. 9 --------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California authorized Lax Royal Airport Center LP to continue to use cash collateral of secured creditor MSCI 2006-IQ11 West Century Limited Partnership through the earlier of Sept. 9, 2011, or the effective date of a sale of Debtor's real property. The proceeds of the cash collateral will be used for operating and maintenance expenses, property taxes, insurance -- for the property and workers compensation and medical insurance for non- insider employees -- non-insider salaries and, to the extent available, mortgage payments. Debtor is authorized to pay the foregoing expenses in their actual amounts, which shall not exceed the Debtor's budget plus a 10% variance. About LAX Royal Airport Center, LP Los Angeles, California-based LAX Royal Airport Center, LP, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-12333) on Jan. 19, 2011. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. No request for the appointment of a trustee or examiner was made. LEHMAN BROTHERS: U.S. Trustee Opposes Add'l Pachulski Services -------------------------------------------------------------- Tracy Hope Davis, the U.S. Trustee for Region 2, has criticized Lehman Brothers Holdings Inc.'s application to authorize Pachulski Stang Ziehl & Jones LLP to represent the company in two civil cases pending before a district court in California. LBHI previously asked Judge Peck to allow Pachulski Stang to handle the cases against Beverly Hills Estates Funding Inc. and U.S. Bank N.A. The cases, which were previously handled by Severson & Werson, were filed on behalf of Aurora Bank FSB, a Lehman subsidiary. Ms. Davis says LBHI failed to prove that Pachulski "could have been retained as of September 18, 2009." "A review of the court's docket in the California actions reveals that . . . there neither has been an order entered nor an application requesting the substitution of LBHI for Aurora," the U.S. Trustee points out in court papers. Ms. Davis asks Judge Peck to order Pachulski to "disgorge" at least $8,750 in fees that the law firm received from LBHI as payment for the expanded services. Judge Peck will hold a hearing on July 20, 2011, to consider the U.S. Trustee's request. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Caisse des Depots Wants to File Late $3MM Claim ---------------------------------------------------------------- Caisse des Depots et Consignations seeks a court ruling allowing the late filing of its claim against Lehman Brothers Special Financing Inc. CDC holds a claim against LBSF in the sum of $3,077,434, which stemmed from an ISDA master agreement it entered into with the company. CDC was not able to file its claim because it allegedly did not receive a notice of the deadline for filing proofs of claim, according to its lawyer, Jay Hellman, Esq., at SilvermanACampora LLP, in Jericho, New York. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: LBI Trustee Seeks OK for NYSDTF Tax Agreements --------------------------------------------------------------- James W. Giddens, as trustee for the liquidation of the business of Lehman Brothers Inc. pursuant to the Securities Investor Protection Act of 1970, asks the Court to approve his agreements with the New York State Department of Taxation and Finance to resolve certain disputes regarding sales and compensating use tax and withholding tax. Tax Disputes Prior to the September 19, 2008 filing date of the SIPA Proceeding, Lehman Brothers Inc. was under audit by the state of New York for sales and compensating use tax with respect to the audit periods March 1, 1997, through February 29, 2004, and March 1, 2004 through August 31, 2008. The New York State Department of Taxation and Finance filed an unsecured priority status prepetition claim in the SIPA Proceeding asserting that LBI was liable with respect to sales and compensating use tax for these periods and amounts: Period End Tax Interest Total ---------- --- -------- ----- 02/29/2004 -- $2,667,760 $2,667,760 05/31/2008 $1,936,648 $446,771 $2,383,420 08/31/2008 $113,920 -- $113,920 --------- Total: $5,165,101 On June 25, 2010, the LBI Trustee, on behalf of LBI, submitted a request to the NYSDTF for a sales and compensating use tax refund to the NYSDTF for $3,110,280 for the period March 1, 1997, through February 29, 2004. The NYSDTF requested additional information with respect to LBI's request for a sales and compensating use tax refund; when the Trustee's personnel were unable to produce this information, the NYSDTF denied the request, relates James B. Kobak, Jr., Esq., at Hughes Hubbard & Reed LLP, in New York. He adds that the LBI Trustee has requested a conciliation conference to protest the disallowance, and even if allowed, the refund could be offset by any prepetition New York State tax liabilities assessed by the NYSDTF. LBI was also under audit by New York for income tax withholding prior to and continuing after the Filing Date, for the audit period of January 1, 2007, through December 31, 2008. On August 10, 2009, the NYSDTF issued assessments of LBI's liability for withholding taxes owed to these localities for these periods and amounts: Period End Yonkers N.Y. City N.Y. State ---------- ------- --------- ---------- 06/30/2007 $1,487 $239,156 $732,226 12/31/2007 $2,348 $381,671 $912,376 06/30/2008 $1,402 $228,567 $699,807 12/31/2008 $2,716 $441,644 $1,035,744 --------- Total: $4,679,150 The NYSDTF issued notices of deficiency and filed audit adjustments regarding LBI's withholding tax liability. On March 6, 2009, the LBI Trustee submitted a request for a withholding tax refund to the NYSDTF for $2,837,000 for the period July 1, 2008, through September 30, 2008. On August 29, 2009, the NYSDTF denied the claim in full. The Trustee reserved his right to appeal the NYSDTF's denial. Mr. Kobak says that although the NYSDTF failed to timely file a claim against LBI for withholding tax, the NYSDTF nonetheless may set off any refund of withholding tax owed to the LBI Trustee for prepetition periods against any prepetition New York State tax liabilities assessed by the NYSDTF. Closing Agreements The Closing Agreements, which were negotiated at arm's-length between the LBI Trustee and Trustee's tax advisors, and the NYSDTF, include these material terms: Closing Sales and Use Tax Withholding Tax Agreements Closing Agreement Closing Agreement ---------- ----------------- ----------------- Assessment The NYSDTF agrees to The NYSDTF agrees to abate the balance due on abate the balance due the Sales and Use Tax on the Withholding Tax Audit Period Audit Period Releases by The Trustee agrees: The Trustee agrees: the LBI * to waive any rights to * to waive any rights Trustee protest and withdraw to protest and pending protests withdraw pending relating to the Sales protests relating to and Use Tax Audit the Withholding Tax Period Audit Period * to withdraw pending * to withdraw pending requests for refund requests for refund or credit * that he is not entitled to any refund * to refrain from filing any future * that he will not file application or any future application claims for refund or claims for refund or credit Face Amount $3,110,280 $2,837,000 of Disputed or Disallowed Refund Claims Waived by the LBI Trustee Amounts of $5,165,101 $4,679,150 Assessments and Claims Waived by the NYSDTF The NYSDTF agrees to these releases with respect to the Sales and Use Tax Closing Agreement: -- to waive any rights to assess and to file proofs of claim in the SIPA Proceeding; -- to withdraw all pending assessments and proofs of claim asserted against LBI in the SIPA Proceeding; and -- that it is not entitled to any tax, interest or penalties from any person who may be deemed responsible or liable for LBI's taxes, interest, or penalties under the New York State Tax Law. The NYSDTF also agrees to these releases with respect to the Withholding Tax Closing Agreement: -- to waive any rights to assess and to file proofs of claim in the SIPA Proceeding; -- to withdraw all pending assessments and proofs of claim asserted against LBI in the SIPA Proceeding; -- that it is not entitled to any tax, interest, or penalties from any person who may be deemed responsible or liable for LBI's taxes, interest, or penalties under the New York State Tax Law or the New York City Administrative Code; and -- that it reserves its right to investigate and pursue additional tax, interest, or penalties with respect to a "reportable transaction" referenced in Section 25 of the Tax Law or an "abusive tax avoidance transaction" referenced in Section 683(c)(11) of the Tax Law. Mr. Kobak contends that the LBI Trustee's decision to waive his right to seek refunds of tax paid during the Sales and Use Tax Audit Period and the Withholding Tax Audit Period in exchange for the NYSDTF's agreement to waive any rights to assess, assert potential claims, and withdraw its pending claim against LBI represents a reasonable exercise of the Trustee's business judgment. The Court will convene a hearing on July 20, 2011, to consider the request. Objections are due on July 13. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: LBI Trustee Wants RBS Forced to Pay $345.9-Mil. ---------------------------------------------------------------- James W. Giddens asks the Court for an order (i) enforcing the automatic stay and stays in the order commencing liquidation of LBI, and (ii) compelling payment for $345,938,625 in cash, plus interest, to LBI owed by RBS N.V., acquirer of and successor-in- interest to ABN AMRO Bank N.V. The $347,501,344 amount constitutes the net amount owed as a result of early termination under the terms of a 1992 International Swap Dealers Association, Inc. Master Agreement, dated as of March 16, 1998, between LBI and ABN, which agreement covered currency exchange transactions between LBI and ABN. That amount has been reduced by $1,562,719, which LBI understands to be ABN's calculation of funds due it under certain securities lending transactions and underwriting. Richard G. Menaker, Esq., at Menaker & Herrmann, in New York, contends that RBS has purported to justify its refusal to pay back the Withheld Funds on the basis of (a) a claimed right of setoff that RBS asserts against an LBI affiliate, (b) a claimed right of setoff that RBS's affiliate Royal Bank of Scotland plc asserts against LBI, and (c) a claimed right of setoff that Royal Bank of Scotland plc asserts against another LBI affiliate. He asserts that RBS predicates those so-called "triangular setoff" claims not upon the ISDA Master Agreement but upon an unsigned writing entitled "Terms of Agreement" that it alleges created a purported separate contract between LBI and Greenwich Capital Markets, Inc., yet another RBS affiliate. The LBI Trustee objects to RBS's various setoff claims as without merit. To the contrary, the LBI Trustee has a right to recover the Withheld Funds based on simple and straightforward principles of contract law and applicable bankruptcy law, like the requirement of mutuality with respect to the setoff of prepetition debts, together with the clear limitations on the scope of safe harbor insulation, Mr. Menaker contends. He points out that these legal principles are reinforced by the purposes underlying SIPA and a balance of the equities that weighs heavily against RBS and in favor of the LBI Trustee and those that the LBI Trustee is charged to protect. Mr. Menaker notes that the $345,938,625 that RBS is holding includes $293,502,344 in "close out amount" owed to LBI as a result of early termination of the foreign currency transactions and in funds owed to LBI for terminated but unsettled foreign currency transactions, and $53,999,000 for cash collateral transferred by LBI to ABN. Samuel F. Abernethy, a partner at Menaker & Herrmann, filed a declaration in support of the request. The Court will convene a hearing on September 13, 2011, to consider the request. Objections are due on August 10. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: FX Cash Claims Determination Upheld ---------------------------------------------------- The bankruptcy court at the behest of James W. Giddens, as trustee for the liquidation of the business of Lehman Brothers, Inc., upheld a ruling determining t hat certain claims arising out of forward foreign currency transactions closed out pursuant to certain International Swap Dealers Association Master Agreements entitled Multicurrency-Cross Border. Mr. Giddens says these claimants have objected to the Trustee's determination that claims arising out of forward transactions to purchase or sell foreign currency are not "customer" claims within the meaning of SIPA: -- Banco de Mexico (Claim No. 900004741); -- Absa Bank Limited (Claim No. 900003370); -- Lehman Brothers GTAA (Claim No. 800003085); and -- RIC-RIF Non-US Fund (Claim No. 900004642). James B. Kobak, Jr., Esq., at Hughes Hubbard & Reed LLP, in New York, contends that the Trustee's determinations, which deny each of the ISDA FX Claimants customer status under SIPA and convert their asserted customer claims to general creditor claims, should be confirmed because the ISDA FX Claimants are not customers under SIPA. "The ISDA FX Claimants are sophisticated parties who entered into contracts with LBI to purchase or sell designated foreign currencies at designated dates subsequent to the [Petition Date], and now claim damages for LBI's breach. They never entrusted 'securities' to be held in a 'securities account' with LBI as a securities broker dealer, essential elements of customer status under SIPA. Likewise, they did not deposit cash with LBI for the purpose of purchasing securities. Even assuming, contrary to fact, that entrustment of property had occurred, the forward foreign currency transactions underlying these claims are expressly excluded from SIPA's definition of 'security' which also clearly places these claims outside the statutory coverage." Mr. Kobak points out that the objections filed by the ISDA FX Claimants to the Trustee's determinations fail to take account of the relevant statutory provisions, including the definition of customer and the exclusion of currency transactions from SIPA coverage. "Instead they largely rely on the Commodity Broker Liquidation subchapter of chapter 7 of the Bankruptcy Code, which is codified as subchapter IV of chapter 7 in the U.S. Bankruptcy Code. However, even under those provisions the ISDA FX Claims are based on contracts -- forward contracts that were simply bilateral agreements between the claimants and LBI -- that are specifically excluded from coverage under the Commodities Subchapter," Mr. Kobak asserts. According to Mr. Kobak, as contracting parties that dealt with LBI under ISDA Agreements, the ISDA FX Claimants are, at best, unsecured creditors of the LBI general estate. "Upon the commencement of [the bankruptcy] proceeding, the ISDA FX Claimants exercised rights to terminate the ISDA Agreements under Bankruptcy Code safe harbor provisions and are now claiming breach damages, together with interest and attorneys' fees, as additional contractual remedies under the ISDA Agreements. These are unsecured claims against general funds of the LBI estate, not claims entitling their holders to share in the fund of 'customer property' held by the Trustee for distribution to customers." "Where the type of forward contract activity that is the basis for the ISDA FX Claims is specifically excluded by both SIPA and the Commodities Subchapter, and the minimum conditions for customer status under SIPA are plainly not met, the Trustee's position must be confirmed," Mr. Kobak asserts. The Trustee asks the Court to (1) confirm his determination denying the ISDA FX Claimants' claims as customer claims and reclassify them to general unsecured claims in an undetermined amount, and (2) expunge the ISDA FX Objections. Daniel T. McIsaac filed an affidavit in support of Trustee's motion. Mr. McIsaac was retained by Hughes Hubbard & Reed LLP to provide expert analysis and opinions on various matters related to the regulatory provisions applicable to LBI as a United States broker-dealer subject to regulation by the Securities and Exchange Commission. Mr. McIsaac's Affidavit explains the regulatory provisions applicable to money obligations relating to foreign currency trades owed among counterparties of ISDA Agreements. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). LEVEL 3: Inks Conversion Agreement with Fairfax Financial --------------------------------------------------------- Level 3 Communications, Inc., on July 6, 2011, entered into a Conversion Agreement with Fairfax Financial Holdings Limited and certain of its subsidiaries and certain other investors, including Robert E. Julian, a member of the Company's Board of Directors and certain entities affiliated with Mr. Julian pursuant to which the Investors agreed to convert a total of $127,962,000 in aggregate principal amount of the Company's 15% Convertible Senior Notes due 2013. Upon conversion, the Company will issue an aggregate of 71,090,008 shares of the Company's common stock, representing the approximately 555.5556 shares per $1,000 note into which the notes are currently convertible. The Company will also pay an aggregate of $28,791,450 in cash, equivalent to $225 per $1,000 note, representing interest that would be due from conversion through maturity date. Closing is subject to customary conditions. Closing is expected to occur on July 15, 2011. The Conversion Agreement contains customary representations, warranties and covenants for a transaction of this type. About Level 3 Communications Headquartered in Broomfield, Colorado, Level 3 Communications, Inc., is a publicly traded international communications company with one of the world's largest communications and Internet backbones. Level 3 Communications carries a 'Caa1' corporate family rating, and 'Caa2' probability of default rating, with negative outlook from Moody's, a 'B-' issuer default rating from Fitch, and 'B-' long term issuer credit ratings from Standard & Poor's. The Company's balance sheet at March 31, 2011, showed $8.80 billion in total assets, $9.06 billion in total liabilities, and a $265 million total stockholders' deficit. LEVI STRAUSS: Posts $20.51 Million Net Income in May 29 Quarter --------------------------------------------------------------- Levi Strauss & Co. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting net income of $20.51 million on $1.07 billion of net sales for the three months ended May 29, 2011, compared with a net loss of $18.39 million on $957.96 million of net sales for the three months ended May 30, 2010. The Company also reported net income of $59.68 million on $2.17 billion of net sales for the six months ended May 29, 2011, compared with net income of $37.48 million on $1.97 billion of net sales for the six months ended May 30, 2010. The Company's balance sheet at May 29, 2011, showed $3.11 billion in total assets, $3.24 billion in total liabilities and a $135.43 million total stockholders' deficit. "I am pleased to report that revenues and net income improved for the second quarter," said John Anderson, president and chief executive officer of Levi Strauss & Co. "Our top-line improvement demonstrates that our global strategies are working. Around the world, the Levi's(R) brand is performing well as consumers are responding to our craftsmanship and compelling products." A full-text copy of the Form 10-Q is available for free at: http://is.gd/AFhwNH About Levi Strauss & Co. Headquartered in San Francisco, California, Levi Strauss & Co. -- http://www.levistrauss.com/-- is one of the world's leading branded apparel companies. The Company designs and markets jeans, casual and dress pants, tops, jackets and related accessories, for men, women and children under the Levi's(R), Dockers(R) and Signature by Levi Strauss & Co.(TM). The Company markets its products in three geographic regions: Americas, Europe, and Asia Pacific. The Company reported net income of $149.44 million on $4.33 billion of net sales for the year ended Nov. 28, 2010, compared with net income of $150.71 million on $4.02 billion of net sales for the year ended Nov. 29, 2009. * * * The Company carries a 'B+' corporate credit rating from Standard & Poor's, a 'B1' corporate family rating from Moody's Investors Service and a 'B+' issuer default rating from Fitch Ratings. As reported by the TCR on March 24, 2011, Fitch Ratings downgraded its Issuer Default Rating on Levi Strauss & Co. to 'B+' from 'BB-'. The downgrade of the IDR reflects Levi's soft operating trends and margin compression, continued high financial leverage, and Fitch's expectation that Levi's financial profile will not show meaningful improvement in the next one to two years. LIMESTONE FURNITURE: In Ch. 11 Just Week After Owner's Arrest ------------------------------------------------------------- Limestone Furniture Mart, Inc., filed a Chapter 11 petition (Bankr. N.D. Ala. Case No. 11-82314) on July 6, 2011, estimating assets and debts in the range of $100,000 to $500,000. Clint Engel at Furniture Today reports that that Ashley Furniture is listed as the largest unsecured creditor, with a $110,000 claim. Also on the list in Somnus Mattress Corp. of Double Springs, Ala., with a $5,069 claim. Limestone Furniture owner Scott Connell has been in Limestone County Jail since his June 29 arrest on charges of five counts of first-degree theft and one count of second-degree theft, the Athens, Ala., News-Courier reported. Customers had complained that Connell required cash or large deposits up front, but never delivered the goods. According to the story, 107 people filed complaints against the store. After the arrest, Connell's wife Brandi Connell attempted a liquidation sale, but angry customers protested -- some staking out their claims on furniture by sitting on it in the store, according to Furniture Today. Huntsville attorney JoLayne Hall, one of the customers who never received ordered furniture, filed a temporary restraining order and within hours Brandi Connell closed the store, the report said. In bankruptcy documents, Mr. Hall is listed among the largest unsecured creditors with a $1,800 claim. According to the report, a hearing had been set to decide whether the furniture in the store could be liquidated as the Connells wanted or "held as proceeds of a crime," but the Connells' attorney asked for a postponement and a new date has not been set. See http://bankrupt.com/misc/alnb11-82314p.pdf http://bankrupt.com/misc/alnb11-82314c.pdf LOCAL INSIGHT: Plan Filing Exclusivity Extended to Aug. 14 ---------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court approved Local Insight Media Holdings' motion to extend the exclusive period during which only the Company can file a Chapter 11 plan and solicit acceptances thereof through and including Aug. 14, 2011 and Oct. 14, 2011, respectively. About Local Insight Wilmington, Delaware-based Local Insight Media Holdings, Inc., is a publisher of print and online yellow page directories in the United States. Local Insight, along with affiliates, including Local Insight Regatta Holdings, Inc., filed for Chapter 11 bankruptcy protection on (Bankr. D. Del. Lead Case No. 10-13677) on Nov. 17, 2010. Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis LLP, serve as the Debtors' bankruptcy counsel. Curtis A. Hehn, Esq., Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl & Jones LLP, are the Debtors' co-counsel. The Debtors' investment banker and financial advisor is Lazard Freres & Co. LLC. The Debtors' independent auditor is Deloitte & Touche LLP. The Debtors' interim management and restructuring advisors are Alvarez & Marsal North America, LLC, and Avarez & Marsal Private Equity Performance Improvement Group, LLC. Kurtzman Carson Consultants LLC is the Debtors' notice and claims agent. Local Insight Media Holdings estimated assets of less than $50,000 and liabilities of $100 million to $500 million in its Chapter 11 petition. Local Insight Regatta reported consolidated assets of $796,270,000 against consolidated debts of $669,612,000 as of Sept. 30, 2010, according to its Form 10-Q filed with the Securities and Exchange Commission. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP as its counsel; Morris, Nichols, Arsht & Tunnel LLP as Delaware co-counsel; Houlihan Lokey Howard & Zukin Capital Inc. as its financial advisor and investment banker; and Mesirow Financial Consulting LLC as its forensic accountant and litigation advisor. LOS ANGELES DODGERS: Paid $5.25 Million Secret Fee to Lender ------------------------------------------------------------ Delaware Online reports that the Los Angeles Dodgers paid the lender temporarily financing the team while in bankruptcy a $5.25 million fee that wasn't properly disclosed, Major League Baseball claimed in a court filing. According to the report, the filing is part of a dispute between baseball and Dodgers' owner Frank McCourt over who will fund the team while it tries to reorganize and exit bankruptcy. U.S. Bankruptcy Judge Kevin Gross on June 28 gave the team temporary approval to borrow as much as $60 million from JPMorgan Chase & Co.'s Highbridge Capital Management LLC. The report says MBIA, Merrill drop suit over mortgage-debt protection MBIA Inc. and Bank of America Corp.'s Merrill Lynch told a judge they want to dismiss a breach-of-contract lawsuit over protection sold against mortgage-debt defaults as the firms seek to resolve cases stemming from souring U.S. home loans. The report relates that both companies agreed to voluntarily dismiss the case and not bring it again and pay their own legal fees. The suit is among several between the MBIA bond insurer that guaranteed Wall Street's toxic mortgage debt and Bank of America and units including Countrywide. 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: MLB Limited on Dodgers' Lender Documents ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Los Angeles Dodgers baseball club has a pivotal hearing on July 20 where the bankruptcy judge will decide whether to give final approval of $150 million in financing from Highbridge Principal Strategies LLC, the team's choice to make the loan. Major League Baseball has a competing offer it says is superior. In preparing for the hearing, the bankruptcy judge trimmed back a request by the MLB commissioner to compel Highbridge to produce documents. The commissioner was the previous victor in a discovery spat. The judge blocked the Dodgers from requiring MLB to turn over confidential financial information about other teams. 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. Epiq Bankruptcy Solutions LLC is the claims and notice agent. 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: Players Union, Radio Station on Committee -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the players' union is one of five members named on July 13 to the official creditors' committee for the Los Angeles Dodgers baseball club. Formally named the Major League Baseball Players Association, the union is joined on the committee by Los Angeles radio station KABC. Also on the committee are the legal representatives of Bryan Stow, the man who was beaten in a stadium parking lot early this season. Mr. Rochelle notes that the committee has been formed in time to take a position at the pivotal hearing on July 20 where the bankruptcy judge will decide whether to give final approval for $150 million in financing from Highbridge Principal Strategies LLC, the team's choice to make the loan. Major League Baseball has a competing offer it says is superior. 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. LOWER BUCKS: County Commissioners Support Re-Emergence ------------------------------------------------------ PhillyBurbs.com reports that the Lower Bucks Hospital property has been designated a "blighted" area by the county commissioners, another step toward helping the hospital re-emerge from bankruptcy later this year. According to the report, the redevelopment plan approval was unanimous Wednesday, though Bucks Commissioner Diane Marseglia expressed concern about a lack of information about the hospital's long-term plans to turn around financially. The plan will allow for mixed use, including residential development, on vacant or unused lands belonging to the hospital, whose property is in both Bristol and Bristol Township. It also certifies the hospital's 36 acres as "blighted," a necessary step before the Bucks County Redevelopment Authority can take the hospital's title and borrow $14 million to help the hospital emerge from Chapter 11 bankruptcy. Under the plan, the authority will take title to the hospital's property as collateral and the hospital will repay the loan with interest over 20 years and buy back the property. Lower Bucks Hospital will repay the loan using its 0.5 percent of the revenue from table games at Parx Casino in Bensalem. The total amount paid by the hospital would add up to almost $30 million. The report says the $14 million will not be used for renovations or repairing vacant or dilapidated buildings on the property. The hospital owns four empty houses and one empty lot located on its main property, spokesman John Coffman said. Mr. Coffman added that as part of the pending restructuring plan, the hospital has designated "millions of dollars" for future capital improvements to the hospital building and property. The hospital is finalizing its restructuring plan, which could be submitted to U.S. bankruptcy court before the end of the week, hospital CEO and President Al Mezzaroba said. The public document outlines the hospital's financial plans for re-emerging from bankruptcy. About Lower Bucks Hospital Bristol, Pennsylvania-based Lower Bucks Hospital is a non-profit hospital based in Bristol, Pennsylvania. The Hospital is currently licensed to operate 183 beds. Together with affiliates Advanced Primary Care Physicians and Lower Bucks Health Enterprises, Inc., Lower Bucks owns a 36-acre campus with several medical facilities. The Hospital's emergency room serves approximately 30,000 patients annually. For the fiscal year ending June 30, 2009, Lower Bucks had $114 million in consolidated revenues. The Hospital filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 10-10239) on Jan. 13, 2010. The Hospital's affiliates -- Lower Bucks Health Enterprises, Inc, and Advanced Primary Care Physicians also filed Chapter 11 petitions. Jeffrey C. Hampton, Esq., and Adam H. Isenberg, at Saul Ewing LLP, assist the Hospital in its restructuring effort. Donlin, Recano & Company, Inc., is the Hospital's claims and notice agent. The Debtors tapped Zelenkofske Axelrod LLC for the provision of tax preparation services. The Hospital estimated assets and liabilities at $50 million to $100 million . MACDERMID INC: S&P Puts 'B-' on Watch Positive as IPO Looms ----------------------------------------------------------- Standard & Poor's Ratings Services's ratings, including its 'B-' corporate credit rating, on Denver-based MacDermid Inc. remain on CreditWatch with positive implications. Standard & Poor's initially placed the ratings on MacDermid on CreditWatch on March 31, 2011, reflecting the company's improved operating performance and financial profile. "MacDermid's credit metrics improved meaningfully over the past several quarters, though the company remains highly leveraged," said Standard & Poor's credit analyst Seamus Ryan. Subsequent to this rating action, MacDermid announced plans for an initial public offering of common stock. The CreditWatch listing indicates the potential that Standard & Poor's would upgrade MacDermid after reviewing its continued gradual improvement in operating performance and proposed equity offering, if completed successfully, with partial debt repayment. "We will consider the effect of this transaction on the company's credit metrics and assess any changes to financial policy," Mr. Ryan said. MacDermid has about $700 million in annual sales and benefits from leading market positions in niche markets, some product diversity, and good geographic diversification. However, the company sells a significant portion of its products to cyclical end markets, so it is vulnerable to economic or industry-specific downturns. MDA ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: MDA Enterprises, LLC 193 Bares Run Drive Loveland, OH 45140 Bankruptcy Case No.: 11-14252 Chapter 11 Petition Date: July 8, 2011 Court: United States Bankruptcy Court Southern District of Ohio (Cincinnati) Judge: Jeffery P. Hopkins Debtor's Counsel: Eric W. Goering, Esq. GOERING & GOERING 220 West Third Street, Third Floor Cincinnati, OH 45202 Tel: (513) 621-0912 E-mail: eric@goering-law.com Scheduled Assets: $66,260 Scheduled Debts: $1,039,418 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ohsb11-14252.pdf The petition was signed by Maxwell Monks, member. Affiliate that previously filed Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Maxwell William Monks 11-12025 04/05/11 MERIT GROUP: Court Sets Aside Stonehenge Credit Bid Dispute ----------------------------------------------------------- Bankruptcy Judge Helen E. Burris overruled an objection by the official Committee of Unsecured Creditors of The Merit Group Inc., which seeks to prohibit or limit Stonehenge Opportunity Fund II, L.P.'s right to credit bid at the auction of the Debtors' assets. The Committee asks, inter alia, that the Court require the full amount of the credit bid portion of any Stonehenge credit bid be secured by immediately available funds to be deposited in an escrow account. The Committee further requests that such posted collateral be held in an escrow account pending a determination by the Court as to the validity and enforceability of Stonehenge's claims against the estates. The Committee also argues that its ability to officially challenge Stonehenge's position is hampered by the speed of the case. Stonehenge contends that it has a right to credit bid under 11 U.S.C. Sec. 363(k) and that any determination of whether a credit bid should be accepted and approved by the Court is premature. The Debtors are seeking to sell substantially all assets pursuant to Sec. 363 free and clear of all liens, outside of a Chapter 11 plan, and without a disclosure statement on file. The Sale Motion contemplates a sale price to a Stalking Horse Bidder, MG Distribution, LLC, in the amount of $46 million plus other assumed liabilities, cure amounts, etc., with an auction on July 20 to entertain higher and better offers. The sale contemplates a transaction fee to Morgan Joseph of $750,000. Judge Burris said both parties' arguments have some merit. She, however, said that the cases cited by the Committee to support its argument do not impose on the Court an obligation to deny or condition the credit bid right at this point in time on these facts. The Court is not convinced that it should exercise its discretion to do so at this time. "This decision does not prejudice the rights of the Committee or any other party to bring any matter to the Court's attention or object to the Debtors' proposed sale after the auction is held and the selected bidder and final sales terms are presented to the Court for approval. In addition, the Court reserves the right to revisit the appropriateness of any credit bid by Stonehenge and to consider any conditions or safeguards requested by the Committee or any other party that may be in the best interest of the estate at that time," Judge Burris said. A copy of Judge Burris' July 12 Order is available at http://is.gd/KHTIBwfrom Leagle.com. About Merit Group Based in Spartanburg, South Carolina, The Merit Group Inc., formerly Lancaster Distributing Company, serves as one of the leading paint sundries distributors in the United States. Its markets also include Mexico, the Caribbean Islands, Central America and South America. Merit Group filed for Chapter 11 bankruptcy protection (Bankr. D. S.C. Lead Case No. 11-03216) on May 17, 2011. Judge Helen E. Burris presides over the case. Michael M. Beal, Esq., McNair Law Firm PA, represents the Debtors. The Debtors selected Kurtzman Carson Consultants LLC as their claims agent; and Morgan Joseph TriArtisan LLC, investment banker, and Alvarez & Marsal North America, LLC, as financial advisors. Merit Group disclosed 7,004,048 in assets and $66,609,946 in liabilities as of the Chapter 11 filing. DIP Lender Regions Bank is represented by lawyers at Nexsen Pruet Jacobs & Pollard and Parker, Hudson, Rainer & Dobbs, LLP. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee is represented by Cole, Schotz, Meisel, Forman & Leonard, P.A. The Committee tapped McCarthy Law Firm LLC as co-counsel, J.H. Cohn LLP as its financial advisor. MESA AIR: Receives Recognition For "Impressive" Turnaround ---------------------------------------------------------- Mesa Air Group, Inc. and its reorganization team received the 2011 Corporate Turnaround Deal of the Year at the Turnaround Atlas Award Gala held in June in Chicago. Mesa's President and Chief Financial Officer Michael Lotz was also named 2011 Corporate Turnaround Executive of the Year for leading the completion of "a complex and challenging reorganization." The awards, presented by Global M&A Network, honor Mesa's transformation from a financially troubled company to a leaner and more financially sound operation. The reorganization team of Imperial Capital, Pachulski Stang Ziehl & Jones, Macquarie Capital, and Morrison Foerster worked closely with Mr. Lotz and Mesa management to complete the restructuring of $700,000,000 in capitalized leases and $50,000,000 in debt, according to the company's statement. During this same period, Mesa's operational performance placed it as one of the top-performing regional airlines in the U.S. as measured by the DOT. Having completed its turnaround, Mesa is well-positioned to fulfill its current contracts and seek additional business, the company said. "Mike and I have known each other since 1995 at Continental, where Mike was deeply involved in another turnaround. We have worked together ever since, and he has proven himself to be one of the top executives in the airline industry, a friend, and a trusted advisor. I commend Mike and the reorganization team for their leadership to transform Mesa into a more solid company in an impressive 12 months. Both Turnaround Atlas Awards reinforce the corporate world's recognition of their outstanding performance," Mesa Chairman and Chief Executive Officer Jonathan Ornstein said in the statement. "We were able to take a very difficult situation and quickly turn it around and create a profitable company well-positioned for future growth in the regional airline industry. I'd like to thank Paul Foley, Chief Operating Officer; David Butler, Senior Vice President for Administration and Human Resources; Brian Gillman, previous General Counsel; Gary Appling, Senior Vice President for Technical Service and Engineering; Keith Kranzow, Senior Vice President for Finance and everyone at Mesa for their incredible support and dedication," Mr. Lotz responded. Mesa currently operates 76 aircraft with 440 daily departures to 94 cities, 34 states, the District of Columbia, and Mexico. It flies as US Airways Express and United Express under agreements with those airlines and independently as go! Mokulele in Hawaii. Mesa was founded by Larry and Janie Risley in New Mexico in 1982. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 10-10018) on Jan. 5, 2010, in New York, listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on Jan. 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MESA AIR: RollsRoyce Sells $28.7-Mil. Claim to Bridge Business -------------------------------------------------------------- Rolls-Royce PLC intends to sell, trade, or otherwise transfer Claim Nos. 1220 and 1222 to Bridge Business Services, LLC. Claim No. 1222 asserts a $28,628,122 claim against Mesa Airlines, Inc. Claim No. 1220 asserts a $28,628,122 claim against Mesa Air Group, Inc. The Claims and certain other general unsecured claims of Rolls-Royce have been allowed pursuant to a post- Effective Date Settlement Agreement, dated April 22, 2011. Bridge Business is also notifying the Court of its intention to purchase, acquire, or otherwise accumulate Claim Nos. 1220 and 1222. It currently beneficially owns no amount of Allowed or Disputed Claims against the Debtors and zero shares of New Common Stock, zero New Warrants, and zero 2023 Notes or 2024 Notes. Once the proposed transfer occurs, Bridge Business will beneficially own Claims against the Debtors in the aggregate principal amount of $57,256,244, plus an additional $50,070,451 of claims being sold to it by other creditors. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 10-10018) on Jan. 5, 2010, in New York, listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on Jan. 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). METROPARK USA: Court Expands Omni's Scope of Employment ------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Metropark USA Inc. to expand the scope of employment of Omni Management Group. The firm will provide services with respect to the preparation of the Debtor's schedules of assets and liabilities and statement of financial affairs. The Debtor previously obtained authorization from the Court to employ Omni Management Group as claims and noticing agent, nunc pro tunc to May 2, 2011. Omni will, among other things: a. prepare and serve required notices in the Debtor's Chapter 11 case; b. within five business days after the service of a particular notice, prepare for filing with the Clerk an affidavit of service that includes (i) a copy of the notice served, (ii) an alphabetical list of persons on whom the notice was served, along with their addresses, and (iii) the date and manner of service; c. assist the Debtor in filing its Schedules of Assets and Liabilities, Schedules of Executory Contracts and Unexpired Leases, and Statements of Financial Affairs; and d. provide the filing location for all proofs of claim and proofs of interest, and receive and maintain copies of all proofs of claim and proofs of interest filed in this case. The hourly rates of the firm's personnel are: Senior Consultants $195-$275 Consultants/Project Specialists $75-$150 Programming $130-$185 Clerical Support $35-$95 Quality Assurance $35-$75 Brian K. Osborne, member of Omni, assured the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Metropark USA Metropark USA, Inc. -- http://www.metroparkusa.com/-- is a Los Angeles retail chain with 70 stores in 21 states. Metropark was founded in 2004 to capitalize on the large Gen Y segment (the 25- 35 year old customer) in demand for fashion-forward apparel and accessories. Its headquarters, distribution centers, and e- commerce site located in Los Angeles, California. Metropark filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-22866) on April 26, 2011. Cathy Hershcopf, Esq., and Jeffrey L. Cohen, Esq., at Cooley LLP, serve as the Debtor's bankruptcy counsel. CRG Partners Group, LLC, is the Debtor's financial advisor. The Debtor disclosed total assets of $28,933,805 and total debts of $28,697,006 as of April 2, 2011. METROPARK USA: Challenge for Bricoleur Liens Extended Sine Die -------------------------------------------------------------- Metropark USA, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York, to approve a stipulation entered with Bricoleur Capital Partners, LP, as second lien agent, and The Official Committee of Unsecured Creditors. The Debtor relates that there was a balance owing under the Prepetition Subordinated Credit Agreement in the amount of $825,000 on the petition date. The Debtor states that through the stipulation, the parties desire to resolve the need for a hearing on the Ex Parte motion by stipulating that no bar date exists under the terms of the motion as to the filing of any motions or actions to challenge the purported liens of Bricoleur by the Debtor, the Committee, or any other party in-interest. The stipulation provides for: 1. there exists no deadline under the terms of any cash collateral motion, stipulation, or order related to the instant case to file motions or actions challenging, inter alia, the enforceability, priority, or amount of any purported secured liens of Bricoleur regarding the Debtor's assets. 2. upon execution of the stipulation by all parties, the Committee will withdraw the Ex Parte Motion, and schedule any hearings on any motions or actions regarding the purported secured liens, whether currently filed or not, of Bricoleur on regular notice. The Committee is represented by: BLAKELEY & BLAKELEY LLP 100 Park Avenue, Suite 1600 New York, NY 10017 Tel: (212) 984-1033 Fax: (212) 880-6499 Scott E. Blakeley, Esq. Ronald A. Clifford, Esq. David M. Mannion,, Esq. Bricoleur Capital is represented by: SOLOMON WARD SEIDENWURM SMITH LLP Michael D. Breslauer, Esq. About Metropark USA Metropark USA, Inc. -- http://www.metroparkusa.com/-- is a Los Angeles retail chain with 70 stores in 21 states. Metropark was founded in 2004 to capitalize on the large Gen Y segment (the 25- 35 year old customer) in demand for fashion-forward apparel and accessories. Its headquarters, distribution centers, and e- commerce site located in Los Angeles, California. Metropark filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-22866) on April 26, 2011. Cathy Hershcopf, Esq., Jeffrey L. Cohen, Esq., and Alex R. Velinsky, Esq., at Cooley LLP, in New York, serve as the Debtor's bankruptcy counsel. CRG Partners Group, LLC, is the Debtor's financial advisor. The Debtor also tapped Great American Group Real Estate, LLC doing business as GA Keen Realty Advisors as special real estate advisor. The Debtor disclosed total assets of $28,933,805 and total debts of $28,697,006 as of April 2, 2011. Blakeley & Blakeley LLP represents the Committee. METROPARK USA: Files Schedules of Assets & Liabilities ------------------------------------------------------ Dulces Arbor, S. de R.L. de C.V., aka Dulces Arbor, S.A. de C.V., filed with the U.S. Bankruptcy Court for the Western District of Texas, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------- ----------- A. Real Property $12,500,000 B. Personal Property $10,339,569 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $4,527,000 E. Creditors Holding Unsecured Priority Claims $24,447 F. Creditors Holding Unsecured Non-priority Claims $7,067,769 ----------- ------------ TOTAL $19,227,103 $11,619,243 About Dulces Arbor Dulces Arbor, S. de R.L. de C.V., aka Dulces Arbor, S.A. de C.V., is a Mexican corporation that has been doing business for years in the greater El Paso-Ciudad Juarez area. It filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case No. 11-31199) on June 22, 2011. Judge Leif M. Clark presides over the case. In its petition, the Debtor estimated assets of $10 million to $50 million, and debts of $1 million to $10 million. The petition was signed by Raymond Ducorsky, sole administrator. Mr. Ducorsky is also its largest unsecured creditor with a $2,300,000 claim. MITCHELL LEONARD: Allowed to Continue Cattle Sales Despite Scam --------------------------------------------------------------- Eric Berger at Boonville Daily News reports that Mitchell J. Leonard must pay the restitution ordered in a 2009 judgment to the cattle farmers he defrauded and the state of Missouri but is allowed to continue operating a cattle business as part of a Chapter 11 reorganization plan. According to the report, the U.S. Bankruptcy Court for the Western District of Missouri confirmed the plan in September 2010 that allowed Mr. Leonard, who engaged in a bait-and-switch scam where he misrepresented the quality of the cattle he owned and sold them through brokers, to continue selling cattle at auction. Mr. Berger says the order replaced the March 2009 judgment that prohibited Mr. Leonard from any involvement in a livestock business in the state of Missouri. The ruling in bankruptcy court only prohibits Leonard from selling the cattle through private agreements. The report notes the plan requires Leonard pay $134,000 in civil penalties to the state of Missouri, $37,515 to the Attorney General's Missouri Merchandising Practices Act enforcement fund and the amount owed to claimants in a lawsuit. The court waived attorney fees and court costs and imposed a $200,000 penalty that it suspended and would remit if Leonard complies with the terms of the agreement. Noel Magee, a Columbia-based attorney who represented 15 plaintiffs, said his clients were dissatisfied because they estimate it could take more than nine years before they receive the money owed from the lawsuit, notes Mr. Brger. Jay Nixon, as Attorney General, filed the lawsuit in 2006. Based in New Franklin, Missouri, Mitchell J. Leonard filed for Chapter 11 protection (Bankr. W.D. Mo. Case No. 09-21458) on July 14, 2009. James F. B. Daniels, Esq., at McDowell Rice Smith & Buchanan, represents the Debtor in its restructuring efforts. Mr. Leonard scheduled assets of $4,144,275, and debts of $2,854,599. MOHEGAN TRIBAL: Files Statistical Report for Mohegan Sun -------------------------------------------------------- The Mohegan Tribal Gaming Authority posted on its Web site its Slot Machine Statistical Report for Mohegan Sun at Pocono Downs containing statistics relating to slot handle, gross slot win, gross slot hold percentage, Pennsylvania slot tax and weighted average number of slot machines. The Slot Machine Statistical Report includes these statistics on a monthly basis for the nine months ended June 30, 2011, and the fiscal year ended Sept. 30, \ 2010. A copy of the Slot Machine Statistical Report is available for free at http://is.gd/z4o6Xl About Mohegan Tribal Headquartered in Uncasville, Conn., Mohegan Tribal Gaming Authority conducts and regulates gaming activities on Tribal lands, which are federally recognized Indian tribe reservations in southeastern Connecticut. The Authority has noted that its Bank Credit Facility matures on March 9, 2012 and its 2002 Senior Subordinated Notes mature on April 1, 2012. In addition, a substantial portion of the Authority's remaining indebtedness matures over the following three fiscal years. The Authority believes that it will need to refinance all or part of its indebtedness at or prior to each maturity thereof in order to maintain sufficient resources for its operations. The Authority has engaged Blackstone Advisory Partners, L.P. to assist in its strategic planning relating to its debt maturities. The Company's balance sheet at March 31, 2011, showed $2.17 billion in total assets, $2.01 billion in total liabilities, and $161.66 million in total capital. * * * At the end of November 2010, Moody's Investors Service downgraded Mohegan Tribal Gaming Authority's Corporate Family and Probability of Default ratings to Caa2 from B3. All of MTGA's rated long-term debt was also lowered. The rating outlook is negative. The ratings downgrade reflects Moody's view that MTGA could find it difficult to refinance significant upcoming debt maturities without some impairment to bondholders given its high leverage -- debt/EBITDA is over 7 times -- limited near-term growth prospects for Mohegan Sun Casino, the likely continuation of weak consumer gaming demand trends in the Northeastern U.S., and the strong possibility of gaming in Massachusetts. The company's $675 million revolver ($527 million outstanding at Sept. 30, 2010) expires in March 2012 and its $250 million 8% senior subordinated notes mature in April 2012. Combined, these debt items account for about 50% of MTGA's total debt outstanding. MTGA has announced that it hired Blackstone Group to help deal with its capital structure issues, although no details have been made available regarding MTGA's options. Given the company's recently announced weak fiscal fourth quarter results along with the significant near- and long-term challenges previously mentioned, Moody's believes a restructuring that involves some impairment to bondholders will be considered. The negative ratings outlook reflects the relatively short time frame in which MTGA has to address what Moody's believes to be a significant capital structure issue. If MTGA is not able to refinance by March 2011 its $675 million revolver will be become current. The same holds true for the company's $250 million 8% senior subordinated notes to the extent these notes are not refinanced by April 1, 2011. NEW STREAM: Has Settlement With Objecting Investors --------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that New Stream Capital LLC negotiated a settlement with some investors in its U.S. and Cayman Islands funds who filed involuntary bankruptcy petitions and were opposing a prepackaged Chapter 11 plan negotiated in advance of the Chapter 11 filing in March. The settlement was made feasible by completion of the sale in June of New Stream's portfolio of life insurance policies. The sale to an affiliate of McKinsey & Co. Inc. generated $124.3 million, New Stream said in its court papers filed last week. The settlement is scheduled for a hearing in bankruptcy court in Delaware on July 29. Mr. Rochelle recounts that creditors who invested $90 million in U.S. and Cayman Island funds were disputing what New Stream characterized as the "priority and extent of liens." In the settlement, the secured lender, which claims to be owed $107 million as of July 31, will accept $93.75 million. The secured lender will provide $20.3 million for distribution pro rata to U.S. and Cayman investors who grant releases. The report relates that the secured lender will make payment directly to some of the investors and in return take over their claims. The U.S. and Cayman investors had filed involuntary petitions in March against three New Stream funds not among those who filed the prepackaged petitions. About New Stream New Stream is an inter-related group of companies that collectively comprise an investment fund, headquartered in Ridgefield, Connecticut. Founded in 2002, New Stream focuses on providing non-traded private debt to the insurance, real estate and commercial finance sectors. New Stream chiefly invested in the so-called life settlement market, where life insurance policies are purchased for less than the death benefit from owners of policies on individuals' lives. On March 7, 2011, when New Stream was still soliciting votes on the Chapter 11 plan, certain investors filed a petition (Bankr. D. Del. Lead Case No. 11-10690) seeking to force three New Stream funds -- New Stream Secured Capital Fund (U.S.) LLC, New Stream Secured Capital Fund P1 (Cayman), Ltd. and New Stream Secured Capital Fund K1 (Cayman), Ltd. -- to Chapter 11 bankruptcy. The petitioning investors in the New Stream investment enterprise say they are collectively owed over $90 million, representing roughly 28% of the approximately $320 million owed to all U.S. and Cayman investors. The Petitioners are represented by (i) Joseph H. Huston, Jr., Esq., Maria Aprile Sawczuk, Esq., Meghan A. Cashman, Esq., at Stevens & Lee, P.C., in Wilmington, Delaware, and Beth Stern Fleming, Esq., at Stevens & Lee, P.C., in Philadelphia, Pennsylvania, and Nicholas F. Kajon, Esq., David M. Green, Esq., and Constantine Pourakis, Esq., at Stevens & Lee, P.C., in New York, (ii) Edward Toptani, Esq., at Toptani Law Offices, in New York, and (iii) John M Bradham, Esq., and David Hartheimer, Esq., at Mazzeo Song & Bradham LLP, in New York. New Stream Secured Capital, Inc., and three affiliates -- New Stream Insurance, LLC, New Stream Capital, LLC, and New Stream Secured Capital, L.P. -- filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 11-10753) on March 13, 2011, with a proposed prepackaged Chapter 11 plan. Kurt F. Gwynne, Esq., J. Cory Falgowski, Esq., Michael J. Venditto, Esq., and Scott M. Esterbrook, Esq., at Reed Smith LLP, serve as the Debtors' bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' claims and notice agent. NSSC Inc. estimated its assets and debts at up to $50,000. NSC estimated its assets at $100,000 to $500,000 and debts at $50,000 to $100,000. NSI estimated its assets at $100 million to $500 million and debts at $50 million to $100 million. NSSC LP estimated its assets and debts at $500 million to $1 billion. NSI's insurance portfolio is being sold for $184.35 million as part of the Chapter 11 plan. The aggregate indebtedness secured by the investment portfolio of NSSC is $688,412,974. NSI owes $81,573,376 to certain account classes under a Bermuda fund. The Official Committee of Unsecured Creditors hired Kurtzman Carson Consultants LLC as its communications agent; Houlihan Lokey Howard & Zukin Capital, Inc., as its financial advisor and investment banker; and Zolfo Cooper, LLC, as its forensic accountants and litigation support consultants. New Stream completed a sale of its assets on June 3. New Stream sold the portfolio of life-insurance policies to an affiliate of McKinsey & Co. for $127.5 million. There were no competing bids at auction. NORTEL NETWORKS: Canadian Ministry to Review Patent Sale -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that before Nortel Networks Inc. can complete the $4.5 billion sale of the patent portfolio, the Canadian Industry Minister will investigate whether the transfer passes muster under the Investment Canada Act. The act requires a determination that a large acquisition gives Canada a "net benefit." The 6,000 patents are to be sold to a group that includes Apple Inc., Microsoft Corp., Sony Corp., Research In Motion Ltd., Ericsson AB and EMC Corp. Nortel Networks was given authority on Monday by judges in the U.S. and Canada to proceed with the $4.5 billion deal. Google Inc., which opened the auction with a $900 million offer, was outbid. 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. NORTH GENERAL: Court Confirms Plan of Liquidation ------------------------------------------------- Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York confirmed the further revised second amended plan of liquidation of North General Hospital and its debtor affiliates on June 22, 2011. Judge Chapman confirmed the liquidation plan after holding that modifications to the plan are not material and do not adversely affect the treatment of the claim of any creditor or the interest of any equity security holder. The Plan, as modified, was deemed accepted by all holders of Class 1(c), Class 1(d) and Class 3 claims who previously voted to accept the plan prior to modifications. The Plan Modifications reflect the fact that the Plan is being proposed by the Trustee rather than the Debtors. The Trust succeeds to the Debtors' status as plan proponent and, as such, is authorized to propose the Plan Modifications. Moreover, the Plan Modifications modify the injunction, release, and exculpation provisions in Article 12 of the Plan in order to preserve, among other things, (a) claims against parties over which the Court does not have jurisdiction to grant releases, (b) claims arising out of fraud, gross negligence or willful misconduct, and (c) claims arising out of any misadministration of these cases, including the potential claims identified in the Examiner's Report. The Plan Modifications also modify provisions in Article 8 of the Plan relating to the rights and obligations of the Liquidation Trustee. For example, as modified, the Plan provides that: a. the Liquidation Trustee will have the right to abandon or dissolve Estate Assets reasonably deemed to be burdensome to the estate or of inconsequential value and benefit to the estate, without further notice or approval of the Court; b. to the extent any cash derived from Estate Assets remains on account with the Liquidation Trustee, in his or her capacity as such, following a final cash distribution, such cash may be donated by the Liquidation Trustee to a qualified not-for-profit organization in the medical and/or healthcare field; and c. the Liquidation Trustee may settle any Disputed Claim (or aggregate of Claims if held by a single Creditor) in an amount of up to $200,000, respectively, without notice, a Court hearing, or Court approval. Finally, the Plan Modifications correct drafting errors. A full-text copy of the Confirmation Order is available for free at http://bankrupt.com/misc/NORTHGENERAL_planconfirmation.pdf About North General New York-based North General Hospital is a not-for-profit 200-bed community hospital in upper Manhattan that has serviced the communities of East and Central Harlem since the 1970s. The Hospital filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. S.D.N.Y. Case No. 10-13553). Charles E. Simpson, Esq., at Windels, Marx, Lane & Mittendorf, LLP, assists the Debtor in its restructuring effort. Garfunkel Wild, P.C., is the Debtor's special healthcare and regulatory counsel. Healthcare Management Solutions, LLC, is the Debtor's financial and healthcare reimbursement manager. Alston & Bird, LLP, serves as the Official Committee of Unsecured Creditors' counsel. NHB Advisors, Inc., is the financial advisor to the Committee. The Company disclosed $67 million in assets and $293 million in liabilities as of the Petition Date. NOVEMBER 2005: Insiders Have $15.2-Mil. Stalking Horse Bid ---------------------------------------------------------- Steve Green at Vegas Inc. reports that the owner of the stalled Park Highlands planned community in North Las Vegas has filed for bankruptcy protection a second time. This time, however, there's a plan for a quick auction of the 1,340 acres still controlled by the development company - with a bid on the table already for $15.2 million. An affiliate of the Park Highlands development company has offered this "stalking horse bid" -- making this plan similar to the one in which the owners of Station Casinos Inc. bought much of their own company out of bankruptcy with their own stalking horse bid. November 2005 Land Investors LLC, and two affiliates filed for Chapter 11 bankruptcy reorganization last week in U.S. Bankruptcy Court for Nevada. The filing came 19 months after November 2005's first bankruptcy reorganization plan was approved in November 2009. Vegas Inc. relates that the first bankruptcy was filed in May 2009 as the worst recession in memory put a halt to the Park Highlands development plan involving 2,675 acres. Since then, some of the land has been sold, leaving 1,340 acres. The company emerging from the 2009 bankruptcy was carrying $180 million in debt, Park Highlands said in this week's new bankruptcy filing. About November 2005 Land Investors November 2005 is a part owner in the Park Highlands master-planned community in North Las Vegas. November 2005 Land Investors LLC, also in Las Vegas, filed a bare-bones petition (Bankr. D. Nev. Case No. 11-20704). November 2005 is back in Chapter 11 less than two years after confirming a Chapter 11 plan. The 2,675-acre project was purchased from the Bureau of Land Management in 2005. Assets are less than $50 million while debt exceeds $100 million, according to the new petition. James D. Greene, Esq., at Greene Infuso, LLP, in Las Vegas, Nevada, serves as counsel. OFFICEMAX INC. Downgraded to 'B-' by S&P Following Losses --------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that OfficeMax Inc., the third-largest office supply distributor in the U.S., was demoted another notch by Standard & Poor's to a B- corporate rating. The company had investment-grade status until April 2008. S&P said that the company's business is "particularly susceptible to weakening economic conditions." S&P said it also has an "unfavorable reassessment of OfficeMax's competitive position as demonstrated by its greater-than-expected decline in its already weak profitability." Liquidity is "adequate," S&P said. OfficeMax, based in Naperville, Illinois, trails Staples Inc. and Office Depot Inc. in the office-supply market. OLSEN AGRICULTURAL: Can Borrow Up to $3-Mil. from Rabo Agrifinance ------------------------------------------------------------------ On June 23, 2011, the U.S. Bankruptcy Court for the District of Oregon entered its final order authorizing Olsen Agricultural Enterprises LLC to obtain postpetition secured financing from Rabo Agrifinance, Inc. in the aggregate amount of $3,000,000, to fund the necessary and critical ordinary course expenses of maintaining and preserving its business in accordance with the Approved Budget. The DIP Lender is granted an allowed superpriority administrative expense claim. The DIP Loan Obligations will be secured by: (i) first priority senior liens on all now existing and hereafter acquired property of the Debtor (the "Collateral"), pursuant to Section 364(d)(1) of the Bankruptcy Code; (ii) first priority liens on that portion of the Collateral that is unencumbered property of the Debtor; (iii) second priority liens on that portion of the Collateral subject to any Non-Primed Liens. The existing secured creditors that will be affected by the "priming"liens to be granted to the DIP Lender are Rabo; BFS International, LLC; United States of America, acting by and through the Internal Revenue Service; Ledeboer Seed, LLC; Callisons, Inc. d/b/a I.P. Callisons and Sons; and West Coast Bank. All DIP Loan Obligations will be due and payable, and repaid in full, in cash, on the date (the "Maturity Date") that is the first to occur of: (i) Feb. 15, 2012; (ii) the effective date of a plan of reorganization confirmed in this Chapter 11 case; (iii) conversion or dismissal of this Chapter 11 case; (iv) appointment of a trustee in this Chapter 11 case; or (v) the occurrence of an Event of Default under this Order. Interest on the DIP Loan Obligations will be at a fixed rate of ten percent (10%) per annum payable monthly in arrears. The default rate of interest will be four percent (4%) higher than the rate otherwise payable. As adequate protection, each of the Existing Secured Creditors is granted a continuing postpetition lien on the Collateral. The Adequate Protection Liens will be junior in priority only to (i) the DIP Liens, (ii) the Replacement Liens, as such term is defined in the the Final Order Authorizing Debtor to Use Cash Collateral, and (iii) all validly perfected and enforceable security interests in and liens on the Collateral extant as of the Petition Date. As further adequate protection, each of the Existing Secured Creditors will have an administrative expense claim. The Adequate Protection Claims will be junior in priority to (i) the DIP Lender's superpriority claim, and (ii) the superpriority administrative expense claims awarded to the Existing Secured Creditors under the Cash Collateral Orders. A copy of the Final Order is available at: http://bankrupt.com/misc/olsen.dipfacilityfinalorder.pdf As reported in the TCR on June 30, 2011, Judge Frank R. Alley authorized, on an interim basis, Olsen Agriculture Enterprises LLC to obtain advances under the DIP Loan in the aggregate amount of $675,000 from Bacchus Capital, L.P. About Olsen Agricultural Enterprises Based in Monmouth, Oregon, Olsen Agricultural Enterprises LLC operates an agricultural enterprise on roughly 7,762 acres of owned and leased land located in Benton, Linn and Polk Counties. Its business is comprised principally of three divisions: (a) Olsen Seed Company, which produces and sells a variety of grass seed and grains on 5,934 acres; (b) Olsen Agriculture, which grows and sells peppermint, nursery stock, squash, hazelnuts and blueberries on 1,334 acres; and (c) Olsen Family Vineyards, which grows a variety of grapes on 494 acres and produces and sells quality wines under the "Viridian" label as well as private labels. Olsen Agricultural Enterprises is the surviving entity of a merger transaction that was consummated on June 1, 2011. In the merger transaction, Olsen Agricultural Company, Inc., an Oregon corporation, Jenks-Olsen Land Co., an Oregon general partnership, Olsen Vineyard Company, LLC, an Oregon limited liability company and The Olsen Farms Family Limited Partnership were merged with and into Olsen Agricultural Enterprises. Olsen Agricultural Enterprises filed for Chapter 11 bankrutpcy (Bankr. D. Ore. Case No. 11-62723) on June 1, 2011. Judge Frank R. Alley III presides over the case. David A. Foraker, Esq., at Greene & Markley, P.C., in Portland, Oregon, acts as the Debtor's bankruptcy counsel. Clyde A. Hamstreet & Associates, LLC, serves as the Debtor's restructuring consultant and financial advisor. Mary Jo Heston, Esq., at Lane Powell PC, in Seattle, Washington, represents the Official Committee of Unsecured Creditors. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robin G. Olsen, operations director. For the fiscal year ended Dec. 31, 2010, OAC reported total revenues of $6,428,880 and a net loss of $5,791,310. At the time of the merger, on a consolidated basis, the books and records of OAC, JOLC and OVC reflected assets totaling $29.8 million and liabilities totaling $37.2 million. The fair market value of the Debtor's assets, on a going concern basis, is roughly $50 million. OLSEN AGRICULTURAL: Can Access Secured Creditors' Cash Collateral ----------------------------------------------------------------- On June 23, 2011, the U.S. Bankruptcy Court for the District of Oregon entered its final order authorizing Olsen Agricultural Enterprises LLC to access cash collateral of Rabo Agrifinance, Inc., and other secured creditors, to fund expenditures pursuant to a budget. Expenditures may exceed the total budgeted expenses by up to a 15% variance. As adequate protection for the Debtor's use of cash collateral, (a) the Secured Creditors are granted replacement liens on the Debtor's postpetition personal property, and (b) to the extent a replacement lien proves to be inadequate to protect the Secured Creditor's interest in the Debtor's prepetition property, the affected Secured Creditor will be entitled to an allowed administrative expense claim and will be secured by an additional perfected lien on all property of the estate, other than claims and causes of action of the estate arising under Chapter 5 of the Bankruptcy Code, subject only to (A) any and all validly perfected security interests and liens extant as of the Petition Date, (B) the Replacement Liens, and (C) the DIP Liens and Adequate Protection Liens, as such terms are defined in the Final DIP Financing Order. A copy of the approved final cash collateral order is available at http://bankrupt.com/misc/olsen.finalcashcollateralorder.pdf About Olsen Agricultural Enterprises Based in Monmouth, Oregon, Olsen Agricultural Enterprises LLC operates an agricultural enterprise on roughly 7,762 acres of owned and leased land located in Benton, Linn and Polk Counties. Its business is comprised principally of three divisions: (a) Olsen Seed Company, which produces and sells a variety of grass seed and grains on 5,934 acres; (b) Olsen Agriculture, which grows and sells peppermint, nursery stock, squash, hazelnuts and blueberries on 1,334 acres; and (c) Olsen Family Vineyards, which grows a variety of grapes on 494 acres and produces and sells quality wines under the "Viridian" label as well as private labels. Olsen Agricultural Enterprises is the surviving entity of a merger transaction that was consummated on June 1, 2011. In the merger transaction, Olsen Agricultural Company, Inc., an Oregon corporation, Jenks-Olsen Land Co., an Oregon general partnership, Olsen Vineyard Company, LLC, an Oregon limited liability company and The Olsen Farms Family Limited Partnership were merged with and into Olsen Agricultural Enterprises. Olsen Agricultural Enterprises filed for Chapter 11 bankrutpcy (Bankr. D. Ore. Case No. 11-62723) on June 1, 2011. Judge Frank R. Alley III presides over the case. David A. Foraker, Esq., at Greene & Markley, P.C., in Portland, Oregon, acts as the Debtor's bankruptcy counsel. Clyde A. Hamstreet & Associates, LLC, serves as the Debtor's restructuring consultant and financial advisor. Mary Jo Heston, Esq., at Lane Powell PC, in Seattle, Washington, represents the Official Committee of Unsecured Creditors. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robin G. Olsen, operations director. For the fiscal year ended Dec. 31, 2010, OAC reported total revenues of $6,428,880 and a net loss of $5,791,310. At the time of the merger, on a consolidated basis, the books and records of OAC, JOLC and OVC reflected assets totaling $29.8 million and liabilities totaling $37.2 million. The fair market value of the Debtor's assets, on a going concern basis, is roughly $50 million. OMEGA NAVIGATION: Lenders Hint Motion to Dismiss Is Possible ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Omega Navigation Enterprises Inc. received interim approval on July 11 to use cash representing collateral for the secured lenders. The final hearing on the cash use will be scheduled later. Mr. Rochelle also reports that in a court filing, HSH Nordbank AG, the senior lenders' agent, noted that Omega's "connections to the U.S. and this district is unclear." The bank said it is reserving "all rights and defenses regarding jurisdiction, venue, and dismissal." About Omega Navigation Athens, Greece-based Omega Navigation Enterprises Inc. and affiliates, owner and operator of tankers carrying refined petroleum products, filed for Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston. Omega is an international provider of marine transportation services focusing on seaborne transportation of refined petroleum products. The Debtors disclosed assets of US$527.6 million and debt totaling US$359.5 million. Together, the Debtors wholly own a fleet of eight high-specification product tankers, with each vessel owned by a separate debtor entity. Bracewell & Giuliani LLP serves as counsel to the Debtors. Jefferies & Company, Inc., is the financial advisor. OPTI CANADA: S&P Cuts Corp. Credit Rating to 'D' on CCAA Filing --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Calgary, Alta.-based OPTI Canada Inc. to 'D' from 'SD' following the company's announcement that it intends to file for court protection under Canada's Companies' Creditors Arrangement Act At the same time, Standard & Poor's also lowered its senior secured debt ratings on the company's C$190 million revolver and US$825 million first-lien debt to 'D' from 'CCC+'. "Although the existing interest reserve account remains in our view sufficient to fund the first-lien debt interest payments until maturity, our ratings criteria place greater emphasis on the potential implications of insolvency proceedings, which can provide uncertainty as to whether the interest reserve account will remain isolated from OPTI's other assets," said Standard & Poor's credit analyst Michelle Dathorne. "Consistent with our June 16, 2011, rating action, we continue to maintain our '1' and '2' recovery ratings on the company's debt," Ms. Dathorne added. Standard & Poor's expects to maintain the 'D' ratings until the company emerges from CCAA proceedings. "At that time, we will assess the company's credit profile based on the operating assets and capital structure in place," S&P said. PAMPLICO HIGHWAY: Case Summary & 11 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Pamplico Highway Development, LLC dba Jack's Place of Florence 1520-C American Drive Florence, SC 29505 Bankruptcy Case No.: 11-04387 Chapter 11 Petition Date: July 12, 2011 Court: U.S. Bankruptcy Court District of South Carolina (Columbia) Judge: John E. Waites Debtor's Counsel: Reid B. Smith, Esq. PRICE BIRD SMITH & BOULWARE PA 1712 St. Julian Place, Suite 102 Columbia, SC 29204 Tel: (803) 779-2255 E-mail: reid@pricebirdlaw.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 11 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/scb11-04387.pdf The petition was signed by John W. Holt, managing member. PAPERWORKS INDUSTRIES: S&P Assigns Prelim. 'B' Corporate Rating --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B' corporate credit rating to Philadelphia, Pa.-based PaperWorks Industries Holding Corp. The rating outlook is stable. "At the same time, we assigned a preliminary 'B' issue-level rating (the same as the corporate credit rating) and a preliminary '3' recovery rating to the company's proposed $180 million senior secured term loan. The '3' recovery rating indicates our expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default," S&P related. The company intends to use the proceeds to refinance existing debt that was put in place to fund two acquisitions, namely Manchester Industries and Rosmar Packaging Corp., and to pay related fees and expenses. In January 2011, an affiliate of PaperWorks' equity sponsor, Sun Capital Partners, completed these two strategic acquisitions with the plan to merge these businesses into PaperWorks in conjunction with the refinancing of PaperWorks' credit facility. "The preliminary 'B' corporate credit rating on PaperWorks reflects our view of its highly leveraged financial risk profile given the private-equity owned company's limited expected near- term free cash flow generation due to an aggressive 2011 capital- investment strategy, debt-financed acquisition growth strategy, and expectations that pro forma adjusted funds from operations to debt is likely to be below 12% over the upcoming year," said Standard & Poor's credit analyst Tobias Crabtree. "In addition, our ratings reflect our assessment of the company's adequate liquidity position, given our expectations that covenant cushion, albeit somewhat tight over the next two quarters, should improve to 20% by mid-2012." "The ratings also reflect our assessment of the company's weak business risk profile resulting from its modest size relative to significantly larger and more diversified paperboard and folding cartons competitors, participation in the competitive and fragmented folding carton industry, lower profitability relative to more integrated peers, and significant customer concentration. These factors are partially tempered by relatively recession resistant demand from consumer end markets and contractual pass through of raw material price fluctuations for a majority of its customers. In addition, our ratings incorporate near-term integration risks related to the Rosmar and Manchester acquisitions, given the sizeable expansion to PaperWorks existing operations," S&P said. "In our view, industry fundamentals for PaperWorks' paperboard and folding cartons should remain favorable over the near term, in- line with 2011 prices remaining above 2010 levels and a modest increase in demand given a gradual improvement in overall economic conditions. As a result, we expect PaperWorks' sales and adjusted EBITDA over the next 12 months to remain relatively in-line with their pro forma 2010 levels (which include the Rosmar and Manchester acquisitions). Our forecast incorporates adjusted EBITDA margins remaining in the mid-to-high 10% area over this period, with the potential for further improvement in 2012 due to integration benefits from the Manchester and Rosmar acquisitions. A key risk to our forecast is if higher raw materials costs, such as for recycled fiber, are unable to be offset by price increases. This is somewhat mitigated by PaperWorks' customer contracts that provide for contractual pass-through of raw material price fluctuations which support about 50% of the company's revenues. In addition, if volumes sold to its largest customer, Graphic Packaging, were to eventually decline following a recently negotiated new three-year contract, PaperWorks ability to replace the tonnage by expanding its paperboard customer base or through acquisitions of additional folding carton operations would be important for earnings stability," S&P said. "The stable rating outlook reflects our view that the financial profile, including our view of its adequate liquidity position, will remain appropriate for the current ratings, as favorable operating and demand prospects offset the challenges associated with a limited track record and the integration of recently acquired businesses. We expect the company's adjusted leverage to be in the mid-to-high 4x range and liquidity position to be adequate given the expected improvement in covenant cushion to 15% or more over the next year," S&P stated. "A negative rating action could occur if EBITDA declined by 15% or more, which we believe could cause cash flow to decline and liquidity to tighten considerably. This could occur due to customer losses, or if input costs, especially for old corrugated containers, increase materially and sales price increases do not take hold. We could also lower the ratings if free cash flow turns negative for an extended period, or if the key credit metric of total adjusted debt to EBITDA is above 6x on a consistent basis. In addition, we have reservations about financial policy, particularly in light of the private equity ownership and acquisition-driven growth strategy," S&P noted. "If the company successfully completes the integration of the Rosmar and Manchester acquisitions leading to improved earnings and consistent free cash generation, we could raise ratings modestly. For a higher rating, we would expect the company's credit measures to improve to be more in-line with an aggressive financial risk profile given our view of its weak business risk profile. We would view adjusted leverage of about 4x and FFO to debt in the mid-teens range as levels consistent with an aggressive financial risk profile," S&P added. PERKINS & MARIE: Has Final Approval of $10.1 Million ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Perkins & Marie Callender's Inc. received final bankruptcy court approval for $21 million in secured financing provided by Wells Fargo Capital Finance LLC, which is owed $10.1 million. The official creditors' committee was given a budget of $50,000 to investigate the validity of secured lenders' claims. The investigation must be completed by Aug. 23 under the terms of the financing-approval order. The financing gives secured lenders the right to bid their secured claims rather than cash in the event of a sale. About Perkins & Marie Callender's Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka The Restaurant Company, is the owner or franchiser of nearly 600 family-dining restaurants, the Perkins Restaurants and Marie Callender's. Perkins & Marie and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on June 13, 2011. Perkins & Marie disclosed $290 million in assets and $441 million in debt as of the Chapter 11 filing. Judge Kevin Gross presides over the case. Robert S. Brady, Esq., and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt & Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq., and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as bankruptcy counsel. The Debtors' financial advisors are Whitby, Santarlasci & Company. Their claims agent is Omni Management Group, LLC. DIP lender Wells Fargo is represented by lawyers at Paul, Hastings, Janofsky & Walker LLP. PERKINS & MARIE: Taps Landis Rath as Delaware Counsel ----------------------------------------------------- BankruptcyData.com reports that Perkins & Marie Callender's official committee of unsecured creditors filed with the U.S. Bankruptcy Court motions seeking to retain Landis Rath & Cobb (Contact: William E. Chipman, Jr.) as Delaware counsel at hourly rates ranging from $255 to 650 for associates through partner and Ropes & Gray (Contact: Mark R. Somerstein) as counsel at the following hourly rates: partner at $650 to $1,120, special counsel and counsel $495 to $1,030, associate at $285 to $720 and paraprofessional at $145 to $305. About Perkins & Marie Callender's Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka The Restaurant Company, is the owner or franchiser of nearly 600 family-dining restaurants, the Perkins Restaurants and Marie Callender's. Perkins & Marie and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on June 13, 2011. Perkins & Marie disclosed $290 million in assets and $441 million in debt as of the Chapter 11 filing. Judge Kevin Gross presides over the case. Robert S. Brady, Esq., and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt & Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq., and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as bankruptcy counsel. The Debtors' financial advisors are Whitby, Santarlasci & Company. Their claims agent is Omni Management Group, LLC. DIP lender Wells Fargo is represented by lawyers at Paul, Hastings, Janofsky & Walker LLP. Roberta A. Deangelis, U.S.s Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors in the Debtors' cases. PERKINS & MARIE: Creditors Have Until Aug. 16 to File Claims ------------------------------------------------------------ Chapter11Cases.com reports that Judge Kevin Gross of the Delaware bankruptcy court entered an order Tuesday setting the deadline (or bar date) for creditors of the Perkins & Marie Callender's restaurant companies to file proofs of claim on account of certain pre-bankruptcy obligations. The order requires all persons and entities that assert that they hold claims against any of the debtor entities which arose on or prior to the date of the companies' bankruptcy filings to file a proof of claim on account of such claim so that it is actually received on or before August 16, 2011 at 4:00 p.m. Eastern time. The bar date applies to claims asserted under section 503(b)(9) of the Bankruptcy Code, in addition to all other pre-petition claims. Governmental units are required to file proofs of claim so as to be received on or before Dec. 12, 2011, at 4:00 p.m. Eastern. Certain claims are excluded from the bar date by the court's order. Excluded claims include claims that have been paid in full by the debtors. Creditors whose claims are listed in the debtors' schedules of liabilities (which were filed with the bankruptcy court yesterday as well) do not need to file proofs of claim if all three of the following conditions are met: (i) the claim is not described in the schedules as "disputed," "contingent," or "unliquidated"; (ii) the creditor does not dispute the amount or classification of the claim set forth in the schedules; and (iii) the creditor does not dispute that the claim is an obligation of the specific debtor (i.e., legal corporate entity) against which the claim is listed in the schedules. Other exclusions from the bar date can be found in the court's order. About Perkins & Marie Callender's Inc. Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka The Restaurant Company, is the owner or franchiser of nearly 600 family-dining restaurants, the Perkins Restaurants and Marie Callender's. Perkins & Marie and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on June 13, 2011. Perkins & Marie disclosed $290 million in assets and $441 million in debt as of the Chapter 11 filing. Judge Kevin Gross presides over the case. Robert S. Brady, Esq., and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt & Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq., and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as bankruptcy counsel. The Debtors' financial advisors are Whitby, Santarlasci & Company. Their claims agent is Omni Management Group, LLC. DIP lender Wells Fargo is represented by lawyers at Paul, Hastings, Janofsky & Walker LLP. Roberta A. Deangelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors in the Debtors' cases. PETTUS PROPERTIES: VFC Says Ch. 11 Plan Violates Settlement ----------------------------------------------------------- VFC Partners 8 LLC asks the U.S. Bankruptcy Court for the Western District of North Carolina not to confirm Pettus Properties, Inc.'s Chapter 11 Plan of Reorganization. Robert A. Cox, Jr., Esq., at McGuireWoods LLP, in Charlotte, North Carolina, says that VFC does not object to the Plan provisions which provide that VFC's claim will be paid in full by no later than July 31, 2011 in accordance with a certain settlement agreement. However, VFC objects to the provisions which provide that if lots are sold by the Debtor prior to repayment in full, that payment will be made to VFC from those sales in an amount equal to 70% of the sale price. "This provision was not part of the Settlement Agreement and VFC objects to this provision," Mr. Cox argues. "The inclusion of this provision regarding the sale of lots prior to July 31, 2011 is also impractical, given that the Effective Date will not occur until after July 31, 2011," he adds. Under the Plan, the Effective Date will be the first day of the first full calendar month following the date upon which the order confirming the plan becomes final and non-appealable. Mr. Cox points out that if the Plan is confirmed at the confirmation hearing on July 13, 2011, then the Plan would go effective on August 1, 2011. "Since this provision regarding the sale of lots and payment to VFC will not be effective until after VFC is due to be paid in full, this provision should be removed from the Debtor's Plan," he asserts. The Chapter 11 Plan The plan provides for the creation of four classes of claims. The classes and the treatment of creditors in these classes are: a) cost administration: creditors in this class will be paid on the effective date of the plan or in accordance with some other agreement that may be mutually agreed to by the Debtor and the creditor. b) VFC Partners 8 LLC: This claimant will be paid in full not later than July 31, 2011, in accordance with the settlement agreement under the disclosure statement. The source of the funds that will be used to pay this obligation will be either from the funds derived from the sale of real estate owned by Sterling or borrowing by Pettus entities other than the Debtor. However, as to any lots sold by the Debtor prior to payment in full to VFC or July 31, 2011, whichever is earlier, payments will be made to VFC from these sales in an amount equal to an amount that is 70% of the sale price of each lot that is sold. c) General Unsecured Creditors: These creditors will be paid in full with interest at the rate of 3.25% from the effective date of the plan. Payments to this class will be made in quarterly payments from the proceeds of lot sales in pro rata payments in amounts no less than set out under the disclosure statement. Quarterly payments will be equal to an amount that is 70% of the sale price of each lot that is sold. Payments to this class will commence on the 15th day of the month following the end of the first full calendar quarter after VFC has been paid in full. d) Equity Secured Holders: Equity security holders will retain their claims. However, no payment will be made on account of any claim of an equity security holder until all payments provided for all other classes in the plan have been paid in full. A full-text copy of the disclosure statement is available for free at http://bankrupt.com/misc/PETTUS_DS.pdf A full-text copy of the Chapter 11 plan of reorganization is available for free at http://bankrupt.com/misc/PETTUS_PLAN.pdf Charlotte, North Carolina-based Pettus Properties, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D.N.C. Case No. 10- 31632) on June 8, 2010. The Company estimated its assets and debts at $10,000,001 to $50,000,000. PHILADELPHIA ORCHESTRA: Has $682,568 in Fees in 1st Six Weeks ------------------------------------------------------------- Peter Dobrin at Inquirer Music Critic reports that the Philadelphia Orchestra Association accumulated $682,568 in legal fees and other expenses associated with its bankruptcy petition in the first six weeks after the filing. According to the report, these fees, added to others in the run-up to the Chapter 11 filing, bring the tab to more than $1.6 million. In its strategic plan, the association estimated that professional costs in the case would total $2.9 million, plus $3 million for settlement with creditors and $2.5 million to allow for a potential decline in ticket sales and donations. Barry E. Bressler, a Philadelphia lawyer who handles bankruptcy cases at Schnader Harrison Segal & Lewis, estimated that the orchestra's bankruptcy ultimately will cost it $10 million in professional fees. The report relates that filings show that Dilworth Paxson L.L.P., the association's bankruptcy counsel, deployed 14 lawyers and two paralegals, whose professional fees of between $150 and $750 an hour totaled $369,482. The work is described as relating to various filings, conferences with the client, creating a database of the endowment documentation records, analyzing the orchestra's contractual relationships, attending board meetings, evaluating pension obligations, and other matters. Additionally, the law firm, in its initial application to the court for payment for work between April 16 and May 31, is asking for reimbursement of $18,832 for messenger services and postage, meals, and other expenses, notes Mr. Dobrin. Dilworth has previously pointed out that it has made a $75,000 charitable donation to the association. Alvarez & Marsal, the association's bankruptcy adviser, for the six-week period claimed compensation of $218,358 and expenses of $15,780.73. Its five professionals list a fee schedule of between $265 and $500 per hour -- rates discounted about 30 percent, according to Joseph A. Bondi, managing director. "Professionals in this case are mindful that this is a not for-profit organization in financial straits, and are discounting their fees," he said. About the Philadelphia Orchestra The Philadelphia Orchestra -- http://www.philorch.org/-- claims to be among the world's leading orchestras. Bloomberg News says the orchestra became the first major U.S. symphony to file for bankruptcy protection, surprising the music world. Previous conductors include Fritz Scheel (1900-07), Carl Pohlig (1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80), Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and Christoph Eschenbach (2003-08). Charles Dutoit is currently chief conductor, and Yannick Nezet-Seguin has assumed the title of music director designate until he takes up the baton as The Philadelphia Orchestra's next music director in 2012. The Philadelphia Orchestra Association, The Academy of Music of Philadelphia, Inc., and Encore Series, Inc., filed separate Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to 11-13100) on April 16, 2011. Judge Eric L. Frank presides over the case. The Philadelphia Orchestra Association is being advised by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal, its financial advisor. Curley, Hessinger & Johnsrud serves as its special counsel. In its petition, Philadelphia Orchestra estimated $10 million to $50 million in assets and debts. Encore Series, Inc., tapped EisnerAmper LLP as accountants and financial advisors. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed seven members to the official committee of unsecured creditors in the Debtors' case. PLATINUM ENERGY: Suspending Filing of Reports with SEC ------------------------------------------------------ Platinum Energy Resources, 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 common stock. Pursuant to Rule 12h-3, the Company is suspending reporting because there is only one holder of record of the common shares as of July 12, 2011. About Platinum Energy Houston, Tex.-based Platinum Energy Resources, Inc. -- http://www.platenergy.com/-- is an independent oil and gas exploration and production company. The Company has approximately 37,000 acres under lease in relatively long-lived fields with well-established production histories. The properties properties are concentrated primarily in the Gulf Coast region in Texas, the Permian Basin in Texas and New Mexico, and the Fort Worth Basin in Texas. The Company reported reported a net loss of $5.13 million on $20.40 million of oil and gas sales for the year ended Dec. 31, 2010, compared with a net loss of $32.02 million on $17.30 million of oil and gas sales during the prior year. The Company's balance sheet at March 31, 2011, showed $52.41 million in total assets, $23.34 million in total liabilities, not subject to compromise, $5.10 million in total liabilities subject to compromise, related to assets held for sale, and $23.96 million total stockholders' equity. GBH CPAs, PC, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended Dec. 31, 2009. The independent auditors noted that the Company has experienced significant losses since inception and is currently in default of its debt agreements. The Company has incurred significant losses, resulting in cumulative losses of $113,747,702 through Sept. 30, 2010. At Sept. 30, 2010, the Senior Credit Facility balance was approximately $5.15 million. The Company's current cash on hand of $2,395,820 is not adequate to satisfy the debt. Also, the Company has negative working capital of $8,168,992. Currently the Company is looking at various ways of correcting these issues, including exploring joint venture opportunities as well as a thorough analysis of our specific assets for potential divestiture. Further the Company has assets and liabilities that could be affected by unfavorable outcomes of litigation in progress. PLEASE MUM: Closes 68 Stores; 750 Workers Lost Jobs --------------------------------------------------- Jenny Lee at The Vancouver Sun reports that children's clothing retailer Please Mum has closed 68 stores and laid off 750 people after filing for protection under the Bankruptcy and Insolvency Act. "There has been a massive increase in competition from the U.S. and other countries," Vancouver Sun quotes founder and CEO Kathryn Adrian as saying in an email interview. "This comes as a result of the recession down south. The recession there, and to a degree here, has changed the market's focus from `hand-me-down' quality to less quality but a lot cheaper prices." Please Mum's ecommerce site, 250 employees and 21 stores remain, including three in Metro Vancouver: the West Broadway, Metropolis at Metrotown and Willowbrook Mall stores, the Vancouver Sun says. According to the report, Ms. Adrian said young mothers are now seeking fast fashion disposable clothing rather than quality, Adrian said. Big chains such as Old Navy and H&M are fighting for the bottom of the market, Ms. Adrian said. This is particularly evident in children's wear as young families endeavour to save as much as possible, Ms. Adrian added, according to the Vancouver Sun. Under the Bankruptcy and Insolvency Act, the company now has 30 days to restructure its affairs, the report notes. Please Mum is a Vancouver-based children's wear company, specializing in high-quality colourful European designs. POINT BLANK: Delays F.R.C.P. Rule 60(B) Motion Until September -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved on July 6, 2011, a third stipulation regarding scheduling of hearing and deadlines related to the motion of Official Committee of Equity Security Holders under F.R.C.P. Rule 60(B) for an order (a) vacating interim and final DIP Financing orders and (B) granting related relief. The stipulation was signed by (i) Point Blank Solutions, Inc., et al, (ii) the Official Committee of Unsecured Creditors, (iii) the Official Committee of Equity Security Holders, (iv) Privet Fund Management LLC, (v) Prescott Group Capital Management and (vi) Lonestar Capital Management. Under the terms of the stipulation, the hearing to consider the Rule 60(b) Motion will be adjourned until Sept. 15, 2011, at 2:00 p.m. Eastern Time. The hearing will be a status conference on the Rule 60(b) Motion, with a date for an evidentiary hearing to be determined. In addition, there will be a stay of all discovery related to the Rule 60(b) Motion until the close of business on September 2, 2011. This stay may be extended by agreement of the parties without further order of the Court. All parties reserve their respective rights and positions with respect to the timing of discovery and submission of proposed discovery scheduling orders. As reported in the Troubled Company Reporter, on April 19, 2011, the reconstituted Point Blank Solutions' official committee of equity security holders filed with the Bankruptcy Court a motion for an order vacating the Debtors' interim and final DIP financing orders). The Equity Committee alleged that that there are facts not disclosed to the court involving conflicts of interest and self- dealing, bad faith, breaches of fiduciary duty and abuse of the bankruptcy process by Privet Fund Management LLC and Prescott Group Capital Management, two former members of the Original Equity, that negotiated both the Replacement DIP Facility and First Plan Support Agreement for their individual pecuniary benefit while purporting to also represent the interests of equity security holders. Allegedly, the Replacement DIP Facility and the First PSAS "form the basis for three hedge DIP lenders exerting onerous leverage and seeking to extract tens of millions in potential litigation recoveries as a "bonus," above and beyond repayment of their Replacement DIP Facility." 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. PONIARD PHARMACEUTICALS: Reverse Stock Split to Avoid Delisting --------------------------------------------------------------- Poniard Pharmaceuticals, Inc. intends to adjourn its annual meeting of shareholders scheduled for Friday, July 8, 2011, until Friday, July 22, 2011, in order to solicit additional proxies to vote in favor of a proposal authorizing the Company's Board of Directors, in its discretion, to effect a reverse stock split in the range of 1-for-15 to 1-for-25. If the proposal is not approved, the Company believes that its common stock will be subject to delisting from the Nasdaq Capital Market, which would adversely impact the liquidity and marketability of its common stock and the completion of Poniard's recently announced merger agreement with ALLOZYNE, Inc., a privately held clinical stage biotechnology company focused on the development of an autoimmune disease product pipeline and proprietary bioconjugated protein therapeutics. The reverse stock split proposal must be approved by a majority of the Company's common shares outstanding. All shareholders of record as of April 11, 2011 are entitled to vote. Of the Company's common shares outstanding and entitled to vote, approximately 49.2 percent have returned proxies to date, with the remaining (approximately 50.8 percent) not yet voted. Among returned proxies, approximately 91.3 percent have voted in favor of the reverse stock split proposal. Approximately 0.5 percent of total shares have abstained, and approximately 3.8 percent of total shares have voted against the proposal. Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co., two of the leading independent U.S. proxy advisory firms, have recommended that shareholders vote "FOR" the proposal. Poniard's Board of Directors unanimously recommends that Company shareholders vote "FOR" the proposal. Poniard's Board of Directors issued the following statement: "Poniard's continued listing on the Nasdaq Capital Market is vital to realizing potential long-term value for the Company's shareholders and is a condition to the successful completion of the proposed merger with ALLOZYNE. The affirmative vote of an additional 5.1% percent of eligible, unvoted shares is required to achieve shareholder approval of the reverse split proposal. The Poniard Board of Directors strongly urges all shareholders who have not yet voted their shares to vote "FOR" the reverse split proposal as soon as possible." After adjournment of the July 8 meeting, the meeting will reconvene on Friday, July 22, 2011 at 9:00 a.m. Pacific Time at the Company's executive offices, 750 Battery Street, Suite 330, San Francisco, CA 94111. Valid proxies submitted by Company shareholders in connection with the June 9 and July 8 meetings will continue to be valid for the purposes of the reconvened meeting. Poniard shareholders are encouraged to read the definitive proxy statement dated April 27, 2011, which includes a comprehensive review of the reverse stock split proposal. About Poniard Pharmaceuticals Poniard Pharmaceuticals, Inc. -- http://www.poniard.com/-- is a biopharmaceutical company focused on the development and commercialization of innovative oncology products. PROQUEST LLC: S&P Affirms 'B' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Ann Arbor, Mich.-based ProQuest LLC to negative from stable. "We affirmed all existing ratings, including the 'B' corporate credit rating," S&P related. "The rating action is based on our concerns that operating performance will likely remain weak over the intermediate term," said Standard & Poor's credit analyst Andy Liu, "which could result in tight covenant compliance and deteriorating credit measures." Many of ProQuest's corporate and government clients are facing significant budgetary pressure and have reduced their budget allocations for libraries. While growth in spending from the company's core academic research library clients offset the revenue decline from corporate and government sources, consolidated organic revenue growth in the first quarter was soft at 1.4%. "Additionally, ProQuest's technology platform migration is consuming more time and resources than planned, contributing to cost and EBITDA decline," added Mr. Liu. It is possible that cost pressure from the technology platform migration will not begin to subside until 2012. QUINCY MEDICAL: Has Deal to Sell to Steward Health for $38-Mil. --------------------------------------------------------------- Jack Encarnacao at the Patriot Ledger reports that the board of the Quincy Medical Center approved a deal to sell the hospital to Steward Health Care System, which last year purchased the Caritas Christi hospital network. According to the report, if Quincy Medical Center can resolve its present $56 million in debt through bankruptcy proceedings, Steward has agreed to pay $38 million for the hospital and make no less than $34 million worth of improvements to its facilities in five years. That $38 million will have to satisfy all the creditors -- from the big bondholders to small creditors who have been supplying the hospital with everything from X-ray frames to cleaning supplies. In 1986, the hospital borrowed $60 million to pay for an expansion. An addition was finished in 1989, and the bonds used to pay for it were refinanced in 1993. In 1996, payments on that debt grew daunting. Losses began piling up after a surgeon removed the wrong kidney from a patient. That incident, coupled with industry changes, caused a steady decline in patient volume. Since 1996, the hospital rarely has been solvent and able to cover its debts, even after the state forgave a $12 million loan it made to the city to help the hospital pay part of the sum it needed to cover employee-related expenses when the hospital privatized in 1999. Three years ago, to take advantage of low interest rates in the bond market, the hospital refinanced the $32.9 million it still owed for the 1980s expansion, and it added $20 million to pay for what were deemed essential upgrades to the emergency room and equipment. The report says the $60 million package pushed payments out to 2038. Interest costs ballooned the total to $135.6 million. By the time the hospital missed making a payment on the debt last month, it was clear that paying off the debt would be impossible without an injection of new investment. Quincy Medical Center's bonds have been sold on the market several times. They are currently held by nine investment firms, the biggest of which are Putnam Investments of Boston and Nuveen Investments of Chicago. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. 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. QUINCY MEDICAL: Taps Mintz Levins as Special Counsel ---------------------------------------------------- Quincy Medical Center Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Massachusetts for permission to employ Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. as their special counsel for non-bankruptcy matters. The firm will charge the Debtors based on the hourly rates of its professionals: Members $540-$1,100 Associates $270-$575 Paralegals $180-$290 The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. 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. QUINCY MEDICAL: Taps O'Neil & Assoc. as Public Relations Officer ---------------------------------------------------------------- Quincy Medical Center Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Massachusetts for permission to employ O'Neill and Associates as public relations advisor to render strategic communications and public relations services related to all aspect of the Debtors' Chapter 11 cases, their planned sale of hospital and related matters. The Firm holds a retainer amount of $10,500 paid by the Debtors out of operating revenues as of the Debtors' bankruptcy filing. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. 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. QUINCY MEDICAL: Wants Until July 29 to File Schedules & Statements ------------------------------------------------------------------ Quincy Medical Center Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Massachusetts to extend the deadline to file their schedules of assets and liabilities, and statement of financial affairs until July 29, 2011. According to the Debtors, due to the complexity of their affairs, and of the computerized billing and accounting system utilized by the Debtors, the Debtors anticipate that they will require additional time beyond July 15, 2011 within which to complete their schedules and statements. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. 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. R&M GOURMET FOODS: Market At Pavilions Store Closes Shop -------------------------------------------------------- Allen Pierleoni at Appetizers reports that the Market at Pavilions, formerly David Berkley, is out of business. According to the report, a sign on the glass front door of the specialty- foods store tells the story: "The Market at Pavilions is no longer open for business effective July 1. Thank you for your loyal patronage." The landlord, Donahue Schriber, is looking for a replacement for the space the Debtor was renting at the Pavilions, in Sacramento. R&M Gourmet Foods, A California LLC, doing business as The Market At Pavilions, formerly doing business as David Berkeley Fine Wines, Etc., filed a Chapter 11 petition (Bankr. E.D. Calif. Case No. 11-30496) in Sacramento on April 28, 2011. Until 2008, the Market had been owned by food-and-wine expert David Berkley for 25 years and was called David Berkley Fine Wines & Specialty Foods. The Company claimed liabilities of $679,631 and assets of $46,522. A copy of the Chapter 11 petition is available at http://bankrupt.com/misc/caeb_11-30496.pdf The Debtor is represented by: Julia P. Gibbs, Esq. 1329 Howe Ave #205 Sacramento, CA 95825-3363 Tel: (916) 646-2800 R & S ST. ROSE: Court OKs David Merrill P.C. as Special Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court District of Nevada has approved R & S St. Rose Lenders, LLC's application to employ David J. Merrill, P.C. as special counsel. Merrill will assist Larson & Stephens, LLC, the Debtor's counsel, to, among other things: -- assist the Debtor in developing legal positions and strategies with respect to all facets of these proceedings; -- advise the Debtor of its state court rights and obligations and performance of its duties during administration of this bankruptcy action; and -- represent the Debtor in all litigation proceedings before the Court or before other courts with jurisdiction over the Debtor. The hourly rates of Merrill's personnel are: David J. Merrill $350 Paralegal $125 To the best of the Debtor's knowledge, Merrill is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About R & S St. Rose Lenders R & S St. Rose Lenders, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-14973) on April 4, 2011. Zachariah Larson, Esq., and Sarah Larson, Esq., at Larson & Stephens, LLC, in Las Vegas, serve as bankruptcy counsel. David J. Merrill, P.C. serves as special counsel. The Debtor amended its schedules disclosing $12,041,574 in assets and $24,502,319 in liabilities. The previously schedules filed by the Debtor showed $12,041,574 in assets and $19,688,291 in liabilities. RAY ANTHONY: Sells Assets to Red White for $9.6 Million ------------------------------------------------------- The Hon. Thomas P. Agresti of the U.S. Bankruptcy Court for the Western District of Pennsylvania confirmed the sale of the property of Ray Anthony International, LLC to Red White & Blue Crane LLC for $9,666,500 under a certain asset purchase agreement. Judge Agresti said the purchase price was a full and a fair price for the property in question. He noted that closing will occur within 30 days of the order. West Mifflin, Pennsylvania-based Ray Anthony International, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 10-26576) on Sept. 15, 2010. The Debtor estimated assets and debts at $50 million to $100 million as of the Chapter 11 filing. Affiliate Ray G. Anthony filed a separate Chapter 11 petition (Bankr. W.D. Pa. Case No. 10-26552) on Sept. 14, 2010. RAY ANTHONY: Huntington Has Interim Deal on Adequate Protection --------------------------------------------------------------- Huntington National Bank sought a court order requiring Ray Anthony International, LLC, to make a $347,141 adequate protection payment for the continued use of the collateral. The Debtors and Huntington are parties to pre-bankruptcy loan agreements, including a $2 million commercial loan and six financing leases. Huntington later informed the Court that it is in talks with the Debtor and United Bank to reach a resolution. Huntington said the parties have reached an agreement but it is contingent on the closing of the sale to Red White & Blue Crane LLC. The closing of the sale is set to take place prior to July 13, 2011. West Mifflin, Pennsylvania-based Ray Anthony International, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 10-26576) on Sept. 15, 2010. The Debtor estimated assets and debts at $50 million to $100 million as of the Chapter 11 filing. Affiliate Ray G. Anthony filed a separate Chapter 11 petition (Bankr. W.D. Pa. Case No. 10-26552) on Sept. 14, 2010. RENAISSANCE SURGICAL: Involuntary Chapter 11 Case Summary --------------------------------------------------------- Alleged Debtor: Renaissance Surgical Arts at Newport Harbor, a Delaware LLC 1640 Newport Blvd Ste 260 Costa Mesa, CA 92627 Case Number: 11-19749 Type of Business: Health Care Business Involuntary Chapter 11 Petition Date: July 11, 2011 Court: Central District Of California (Santa Ana) Judge: Erithe A. Smith Petitioner's Counsel: Robert P. Goe, Esq. GOE & FORSYTHE, LLP 18101 Von Karman, Ste 510 Irvine, CA 92612 Tel: (949) 798-2460 Fax: (949) 955-9437 E-mail: kmurphy@goeforlaw.com Renaissance Surgical's petitioner: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ Dr. Gary Reiter Loans $907,515 1901 Westcliff Dr #9 Newport Beach, CA 92660 Vascular Resources Inc. Use of Equipment $2,462,492 22972 Ariia Mission Viejo, CA 92691 Anthony C. Pings Architectural $266,169 6121 N. Thesta St., Services Ste. 301 Fresno, CA 93710 RLB FRIENDSHIP: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: RLB Friendship, LLC 110 Vista Boulevard Arden, NC 28704 Bankruptcy Case No.: 11-10690 Chapter 11 Petition Date: July 12, 2011 Court: U.S. Bankruptcy Court Western District of North Carolina (Asheville) Judge: George R. Hodges Debtor's Counsel: Jessie C. Fontenot, Jr., Esq. STRAUCH FITZGERALD GREEN P.C. 118 South Cherry Street Winston-Salem, NC 27101 Tel: (336) 837-1063 Fax: (336) 725-8867 E-mail: jfontenot@sfandglaw.com - and - Rodney L. Eason, Esq. THE EASON LAW FIRM 6510 Old National Highway Atlanta, GA 30349-4357 Tel: (770) 909-7200 Fax: (770) 909-0644 E-mail: reason@easonlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/ncwb11-10690.pdf The petition was signed by Joh H. Bajjanni, managing member. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Georgia Hyyraulic Cylinders, Inc. 11-10689 07/12/11 RVTC LP: In Chapter 11 Amid Dispute With Bank --------------------------------------------- Patrick Danner at My San Antonio reports that Rialto Village Town Center has landed in bankruptcy on the heels of a dispute between the project's developer and lender. According to the report, RVTC L.P. has accused Bank of the Ozarks in a lawsuit of hindering the project's development by acting in "bad faith." RVTC cited 17 breaches of contract in the suit filed June 6, including alleging the bank rejected a "reasonable and necessary" application to replat the property. Mr. Danner relates that project plans unveiled three years ago included 185,000 square feet of shops, 41,000 square feet of office condos, about 250 apartments and as many as seven restaurants. Developer Dale Schuparra said he now wants to add more offices and restaurants and reduce the number of apartments to about 180 high- end units to appeal to empty-nesters. So far, though, only infrastructure work and a 3,500-square-foot medical building have been completed. "The bankruptcy is not because we can't pay the bank," the report quotes Mr. Schuparra, who is president and CEO of Schuparra Properties Corp., as saying. "It's an offensive action, not defensive, to get them to stop obstructing and trying to tell us how to do the development." A Rialto Village partnership received a $15.5 million loan from Bank of the Ozarks in 2007, according to a document recorded in Bexar County. RVTC has been unable to extend or refinance the loan, according to its suit. Acccording to the report, RVTC also is seeking bankruptcy court approval to sell two parcels, one for a Taco Cabana restaurant and the other to custom home builder Charles Powell. About RVTC LP Rialto Village Town Center is a proposed $60 million to $70 million mixed-used development on 24 acres on the far Northwest Side in San Antonio, Texas. RVTC Limited Partnership fka Fair Prospects, L.P., owner of the Rialto Village Town Center, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 11-52240) on June 29, 2011. Judge Leif M. Clark presides over the case. Thomas Rice, Esq., at Cox smith Matthews Incorporated, represents the Debtor. The Debtor estimated both assets and debts of between $10 million and $50 million. RVTC LP: Can Assume Executory Contracts With Powell --------------------------------------------------- The Hon. Leif M. Clark of the U.S. Bankruptcy Court for the Western District of Texas authorized RVTC Limited Partnership to assume executory contracts with Charles Vincent Powell II. The Debtor entered a contract with Mr. Powell on April 26, 2011, in the amount of $277,500, at $18.50 per square foot, for a fully platted parcel containing approximately 15,000 square feet. The square footage of the Powell contract represents less than 2% of the available square footage for the property. Judge Clark also authorized the Debtor to enter into the sale of the Debtor's property under the Powell contract. The Court said a broker fee will not exceed 6% of the sales price. About RVTC LP Rialto Village Town Center is a proposed $60 million to $70 million mixed-used development on 24 acres on the far Northwest Side in San Antonio, Texas. RVTC Limited Partnership fka Fair Prospects, L.P., owner of the Rialto Village Town Center, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 11-52240) on June 29, 2011. Judge Leif M. Clark presides over the case. Thomas Rice, Esq., at Cox smith Matthews Incorporated, represents the Debtor. The Debtor estimated both assets and debts of between $10 million and $50 million. RW LOUISVILLE: Court Grants 6.75% Interest to Secured Creditors --------------------------------------------------------------- Orix Capital and Wells Fargo Bank, National Association f/k/a Wells Fargo Bank Minnesota, National Association, submitted a joint objection to RW Louisville Hotel Associates LLC's Chapter 11 Plan of Reorganization. The Objectors assert that the Debtor's Plan may not be confirmed because: -- its classification scheme constitutes a textbook example of "gerrymandering" and cannot withstand scrutiny under applicable case-law requiring a legitimate business reason for separate classification of substantially similar claims; -- even under the Debtor's classification scheme, the Plan does not satisfy Section 1129(a)(1) of the Bankruptcy Code because the affirmative vote of the sole member of the sole accepting impaired class (Class 4 - Sysco) was procured by unlawful solicitation and must be designated under Section 1126(e) of the Bankruptcy Code; -- it provides that current equity will retain ownership of the reorganized Debtor and that unsecured creditors will not be paid in full, and therefore violates the absolute priority rule; -- it is not feasible and is supported by unduly optimistic projections which contrast sharply with historical performance; -- the Plan impermissibly provides for payment of junior claimants with the Noteholder's cash collateral; -- it is not fair and equitable as to the Noteholder because it places all of the risk on the Noteholder without providing for repayment of the Noteholder's claims at an appropriate interest rate; -- it contains an impermissible third-party release provision; and -- it contains a premature "substantial consummation" provision. In addition, the Objectors point out that the Debtor's proposed interest rate of 4.25% to apply to the Noteholder's secured claim and its deficiency claim is insufficient. The Secured Claim and Deficiency Claim is in Class 1 and 7 of the Plan. In Debtor's proposed Chapter 11 plan, the Debtor has bifurcated Wells Fargo's claim in Class 1 into a $11,200,000 secured portion and a $4,012,599 unsecured portion, which is in Class 7. This was based on a stipulated $11,200,000 value of collateral, which consists of a Holiday Inn Hotel and Conference Center located in Louisville, Kentucky. In the Plan, the Debtor proposes to pay 4.25% interest on the Class 1 Amount on a 35-year amortization schedule with a balloon payment due after 17.5 years. The Debtor proposes to pay 4.25% interest on the Class 7 Amount on a 20-year amortization schedule with a balloon payment due after 17.5 years. In both cases, interest will not begin to accrue until 6 months after plan confirmation, lowering the effective interest rates to 4.04% and 4.01%. Wells Fargo asserts that the interest rate applied to the Class 1 Amount should be at least 9.75%. Wells Fargo's proposed interest rates were developed by its hired consultant, Richard W. Ferrell of Realty Capital Solutions, LLC, who prepared a detailed written analysis and report concerning the same. Court Sets Interest Rate for Classes 1 and 7 The Court has bifurcated the confirmation hearing to consider only Wells Fargo's assertion that the interest rate proposed to be applied to the claims in Classes 1 and 7 is too low. The Court finds that Wells Fargo has generally met its burden of proving that an interest rate higher than 4.25% is warranted for both Class 1 and Class 7 claims, but also finds that the interest rate should be 6.75% rather than the amounts proposed by Wells Fargo. Accordingly, the Court ruled that the interest rate to be applied to the Class 1 Amount will be 6.75% and that the interest rate to be applied to the Class 7 Amount will be 6.75%. About RW Louisville Louisville, Kentucky-based RW Louisville Hotel Associates, LLC, aka Holiday Inn Hurstbourne, owns a hotel property located at 1325 South Hurstbourne Parkway, Louisville, Kentucky 40222. It is an independent franchisee of InterContinental Hotels Group and operates a 271-room full-service Holiday Inn on the Real Property and employs approximately 110 employees. RW Louisville filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 10-35356) on Oct. 8, 2010. Emily Pagorski, Esq., and Lea Pauley Goff, Esq., J. Kent Durning, Esq., James S. Goldberg, Esq., Lea Pauley Goff, Esq., and Matthew R. Lindblom, Esq., at Stoll Keenon Ogden PLLC, in Louisville, Ky., assist RW Louisville in its restructuring effort. RW Louisville estimated its assets and debts at $10 million to $50 million at the Petition Date. SAN JUNG: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: The San Jung Hyun Presbyterian Church Segeroh Presbyterian Church of Washington, Inc. 4401 Muncaster Mill Rd Rockville, MD 20853 Bankruptcy Case No.: 11-24207 Chapter 11 Petition Date: July 10, 2011 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Debtor's Counsel: Angela Lee, Esq. WEON G. KIM LAW OFFICE 8214 Peridot Dr. 307 McLean, VA 22102 Tel: (703) 362-5093 E-mail: anglee0425@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Lee Byung Wan, representative pastor. SAVANNAH OUTLET: Court Approves Steven H. Spears as Accountant -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern Districto Georgia has approved Savannah Outlet Shoppes LLC's application to employ Steven H. Spears as accountant. Mr. Spears' firm can be reached at: Steven H. Spears MELLON, JOHNSON & REARDON, CPA'S, LLP 3270 Inland Empire Boulevard, Suite 300 Ontario, California 91764 In the pending case, it is and will be necessary for various accounting-related services to be rendered for which it is necessary to retain an accountant, among these services being to prepare its federal and state income tax returns and providing general accounting and financial statements upon the Debtor's request. The Debtor has selected Mr. Spears as its accountant because Mr. Spears possesses substantial expertise and experience, the Debtor finds Spears to be well-qualified to perform the desired professional services, and because Spears performed professional services for Debtor prepetition and is therefore closely familiar with Debtor's business and financial affairs. Mr. Spears has served as one of Debtor's accountants, assisting Debtor with the preparation of Debtor's annual federal and state income tax returns and providing general accounting services. Mr. Spears proposes to undertake representation of Debtor at the normal hourly rates as follows: Professional Rates ------------ ----- Steven H. Spears, CPA $275.00 Jason Burke, CPA $175.00 Erin Roberts, CPA $110.00 Tim Bozek $70.00 About Savannah Outlet Shoppes, LLC Claremont, California-based Savannah Outlet Shoppes, LLC, owns and operates a business related to the management and leasing of a commercial shopping center located in Savannah, Georgia. Savannah Outlet filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ga. Case No. 10-42135) on Oct. 4, 2010. Karen F. White, Esq., at Cohen Pollock Merlin & Small PC, represents the Debtor. The Debtor estimated assets and debts at $10 million to $50 million. SBARRO INC: Reports Discussions With Two Buyer Groups ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports Sbarro Inc., after dropping its prepackaged plan in May, disclosed this week that a steering committee for first-lien lenders had "recently" made a "preliminary proposal" for a "restructuring transaction." Details weren't disclosed. Mr. Rochelle relates that the revelations were included in a motion for a four-month extension of the exclusive right to propose a Chapter 11 plan. If approved by the bankruptcy judge in New York at a July 26 hearing, the new plan deadline would be Nov. 30. Sbarro, according to the report, said its investment advisers in addition are scouring the market for interest from other potential buyers. MidOcean Partners, Ares Corporate Opportunities Fund II LP, and first-lien lenders concurred with the decision to drop the previously negotiated plan, Melville, New York-based Sbarro said. About Sbarro Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. According to its schedules, the Debtor disclosed $51,537,899 in total assets and $460,975,646 in total debts. Sbarro reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Sbarro dropped the plan in May. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SCHOOL HOUSE: Owner Contemplating on Sale or Restructuring ---------------------------------------------------------- Craig M. Douglas at the Boston Business Journal reports that counsel to Chapter 11 debtor School House Plaza LLC said the Debtor's property's is "cash-flow neutral to cash-flow positive", and the Debtor hopes to either sell one of the properties or restructure the mortgage debt to satisfy creditor demands. School House Plaza LLC, a Plymouth County, Massachusetts, property owner has filed for Chapter 11 bankruptcy protection in an effort to potentially restructure millions in mortgage debt issued by largest creditor, TD Bank. School House Plaza LLC, a firm registered to Charles Mirrione, disclosed two commercial properties in West Bridgewater and South Easton in its Chapter 11 petition. Michael Fencer, Esq., at Jager Smith PC, in Boston, counsel to the Debtor, said the filing is intended to give the operation some breathing room as it assesses its liquidating and financing needs. School House Plaza, LLC, filed a Chapter 11 petition (Bankr. D. Mass. Case No. 11-16268) on June 30, 2011. The Debtor estimated assets and debts of $1 million to $10 million. SCOVILL FASTENERS: Sells Business, Converts to Ch. 7 Liquidation ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the remnant of the Chapter 11 case of Scovill Fasteners Inc. was converted July 12 to a liquidation in Chapter 7 by the U.S. Bankruptcy Court in Gainesville, Georgia. Scovill completed the sale of the fasteners manufacturing business June 24. It acceded to a request by the official creditors' committee and consented to the appointment of a Chapter 11 trustee who immediately decided further reorganization was hopeless and sought conversion to Chapter 7 liquidation. The committee said that lawsuits are virtually the only remaining assets after the business was sold. The purchaser was Gores Group LLC. About Scovill Fasteners Scovill Fasteners Inc. -- dba Scovill Apparel Fasteners Inc. and Scovill Manufacturing Co. -- produced snap fasteners and tack buttons. It manufactured the majority of its products at its 300,000 square foot factory located in Clarkesville, Georgia. Clarkesville is also its headquarters location. Scovill Fasteners along with affiliates filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ga. Lead Case No. 11-21650) on April 19, 2011. Heather N. Byrd, Esq., and John C. Weitnauer, Esq., at Alston & Bird LLP, serve as the Debtors' bankruptcy counsel. BMC Group Inc. is the claims and notice agent. Scovill estimated its assets at $10 million to $50 million and debts at $100 million to $500 million. An Official Committee of Unsecured Creditors was appointed in the case. The Committee is represented by Greenberg Traurig, LLP, as its counsel. SHORE HOUSE: Restaurant to Pursue Reorganization ------------------------------------------------ Sarah Peters at Daily Report notes that Shore House Cafe Inc., a 30-year-old Balboa Peninsula icon, filed for Chapter 11 bankruptcy. According to the report, Stephen Madoni, a Newport Beach attorney representing Shore House and Chief Financial Officer David Beladonna, called the move a "reorganization." The business owes $1.62 million to creditors with the largest unsecured claims. That figure includes five lawsuits and unpaid taxes to the Orange County Treasurer-Tax Collector, the Department of Industrial Relations and the Internal Revenue Service. At least one former employee is suing. Geoffrey Umpleby, a former employee, claims he is owed nearly $33,000 in unpaid overtime and break time. Based in Huntington Beach, California, Shore House Cafe Inc. dba Shore House Cafe filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-18892) on June 23, 2011. Judge Mark S. Wallace presides over the case. Stephen Madoni, Esq., at Law Office of Stephen A. Madoni, represents the Debtor. The Company estimated assets of between $1 million and $10 million, and debts of between $50,000 and $100,000. SK FOODS: Appeal Not Moot if Settlement Can Be Unwound ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that in the process of overturning a settlement approved in bankruptcy court, a district judge in California ruled that the appeal was not moot even though the challenged settlement had been implemented. Explaining why the appeal was not moot, U.S. District Judge Lawrence Karlton in Sacramento, California, said the trustee for the bankrupt company "does not show why these transfers could not be reversed." According to the report, Judge Karlton overturned the settlement because the bankruptcy judge excluded a report by an expert hired by creditors objecting to the settlement. The judge said the bankruptcy court could not "schedule the submission of additional evidence, accept evidence submitted by one side, and then simply reject as untimely the timely-filed evidence submitted by the other side in rebuttal." The case is Salyer v. SK Foods LP (In re SK Foods LP), 10-3467, U.S. District Court, Eastern District California (Sacramento). SK Foods LP ran a tomato processing facility. It filed for Chapter 11 bankruptcy protection after being dropped by its lending group. Creditors filed an involuntary Chapter 11 petition against SK Foods LP and affiliate RHM Supply/ Specialty Foods Inc. (Bankr. E.D. Calif. Case No. 09-29161) on May 8, 2009. SK Foods had said it was preparing to file a voluntary Chapter 11 petition when the creditors initiated the involuntary case. The Company later put itself into Chapter 11 and a Chapter 11 trustee was appointed. The Debtors were authorized on June 26, 2009, to sell the business for $39 million cash to a U.S. arm of Singapore food processor Olam International Ltd. The replacement cost for the assets is $139 million, according to Olam. SMALL PLATES: Detroit Tapas Seeks Chapter 11 Protection ------------------------------------------------------- Click on Detroit reports that Small Plates LLC filed for Chapter 11 protection in U.S. Bankruptcy Court. Small Plates said it owes the Internal Revenue Service $229,248; the Michigan Department of Treasury $176,812; Louisville, Ky.-based Chase Bank $78,086; and Bloomfield Hills-based Larson Realty Group $28,812. Detroit-based Small Plates LLC operates a restaurant known for its tapas-style food. Small Plates debuted in 2002 across the street from the Detroit Opera House. Small Plates Detroit, LLC, doing business as Small Plates, LLC, filed a Chapter 11 petition (Bankr. E.D. Mich. Case No. 11-57408) on June 23, 2011. See http://bankrupt.com/misc/mieb11-57408.pdf Click on Detroit says Small Plates in Royal Oak filed for Chapter 11 protection in September 2008 but never recovered. It closed in February 2009. SOMERSET PROPERTIES: Cash Collateral Hearing on July 19 ------------------------------------------------------- The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina entered an eight interim order granting Somerset Properties SPE LLC permission to use cash collateral, primarily rents, to make payment of its ordinary and necessary operating expenses including utilities, payroll, and maintenance, subject to the limits as set forth in a budget. Unless a further consent order is entered, a final hearing on the continued use of cash collateral will be held on July 19, 2011, at 2:00 p.m. The Debtor is not authorized to use cash collateral for legal fees and expenses, management fees, or other professional fees of any kind, absent court approval. CSFB 2001-CP4 Bland Road, LLC, and CSFB 2001-CP4 Falls of Neuse, LLC, claim to be the current holders of loans to Somerset, each in the original principal amount of $15,500,000, and further claim that the Loans are secured by liens on all of Somerset's assets including but not limited to the Properties and all rents, royalties, issues, profits, revenue, income, deposits, securities, and other "cash collateral" as that term is defined in section 363(a) of the Bankruptcy Code. LNR Partners, LLC is the "Special Servicer" of the Loans, and the nonowner manager and representative of CSFB 2001-CP4 Bland Road, LLC, and CSFB 2001-CP4 Falls of Neuse, LLC, in this Chapter 11 case. CSFB 2001-CP4 Bland Road, LLC, CSFB 2001-CP4 Falls of Neuse, LLC, and LNR are referred collectively and individually as the "Lenders." Midland Loan Services, Inc., the "Master Servicer" of the Loans, asserts that it is not a manager or representative of CSFB 2001- CP4 Bland Road, LLC, and CSFB 2001-CP4 Falls of Neuse, LLC, in this case, and asserts no interest in cash collateral. The Debtor disputes the claims of the Lenders and Midland. The Debtor believes that, at the time of the petition, the Lenders were holding at least $903,000 of the Somerset's rents in lockbox accounts controlled by the Lenders, and at least $376,000 in an escrow account. The Lenders say that the total amount of the funds held by them is less than that contended by the Debtor. The Debtors contends that the Lenders are obligated to turn over the held funds. Lenders contend that the Debtor must seek turnover of the held funds by adversary proceeding rather than by motion. At the Feb. 17, 2011 hearing, counsel for the Debtor and counsel for the Lender proposed, and the court agreed, that consideration of the full turnover relief requested in the ,otion and the objection thereto be deferred to a later date. As adequate protection for the use of cash collateral, Lenders are granted liens in all of the Debtor's post-petition leases, rents, royalties, issues, profits, revenue, income, deposits, securities, and other benefits of the properties to the same extent, priority, and perfection as they have in said collateral pre-petition. The Debtor's use of cash collateral will terminate on the earliest of: (i) the date the Debtors ceases operations of its business; (ii) the non-compliance or default of the Debtors will any terms of the cash collateral order; or (iii) another order concerning cash collateral is entered, or (iv) dismissal or conversion of the Debtor's Chapter 11 case to Chapter 7. A full-text copy of the cash collateral budget is available for free at http://bankrupt.com/misc/SOMERSET_CashCol_Budget.pdf About Somerset Properties SPE, LLC Raleigh, North Carolina-based Somerset Properties SPE, LLC, owns six office buildings in Raleigh, North Carolina. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 10-09210). The law firm of Blanchard, Miller, Lewis & Isley, P.A., in Raleigh, N.C., is the Debtor's special counsel. Samantha J. Younker, Esq., and William P. Janvier, Esq., at Janvier Law Firm, PLLC, is Raleigh, N.C., represent the Debtor as bankruptcy counsel. The Company disclosed $36,496,015 in assets and $28,825,521 in liabilities as of the Chapter 11 filing. SOUTHWEST GEORGIA: Makes Final $4.9-Mil. Critical Vendor Payments ----------------------------------------------------------------- The Post-Searchlight reports that Southwest Georgia Ethanol LLC has made its final 11 U.S.C. Sec. 503(b)(9) admin. claims and critical vendor payments to its vendors and local corn farmers. According to the report, since receiving permission from Judge James D. Walker of the U.S. Bankruptcy Court for the Middle District of Georgia, Albany Division, to pay these unsecured claims, SWGE has made more than $4.9 million in 503(b)(9) and critical vendor payments, including $3.9 million to local corn farmers for corn delivered to the facility in months preceding its Chapter 11 filing on Feb. 1, 2011. The report says 503(b)(9) payments are made to vendors who deliver goods to a company within 20 days before it files for Chapter 11 relief. Critical vendors in SWGE's case included SWGE's corn farmers who delivered corn to SWGE more than 20 days before it filed a petition for Chapter 11 relief, but who chose to not price that corn immediately, thereby delaying payment. The report notes that on Feb. 1, SWGE sought permission from the Bankruptcy Court to pay all of its local corn farmers who had delivered corn to it more than 20 days before the commencement of its bankruptcy case as critical vendors, meaning that those farmers would receive payment for their corn prior to SWGE's exit from Chapter 11. While it is often difficult to obtain permission to pay prepetition unsecured claims before confirmation of a plan of reorganization in a Chapter 11 case, Judge Walker granted SWGE's request and authorized SWGE to pay the prepetition claims of its local corn farmers beginning in early April 2011. About Southwest Georgia Ethanol Southwest Georgia Ethanol LLC, a unit of First United Ethanol Co., sought bankruptcy protection (Bankr. M.D. Ga. 11-10145) in Albany, Georgia, on Feb. 1, 2011. The Debtor owns and operates an ethanol production facility located on 267 acres in Mitchell County, Georgia, producing 100 million gallons of ethanol annually. Ethanol production operations commenced in October 2008. Revenue was $168.9 million for fiscal year ended Sept. 30, 2010. The Debtor said profitability and liquidity have been materially reduced by unfavorable fluctuations in commodity prices for ethanol and corn. John Michael Levengood, Esq., at McKenna Long & Aldridge LLP, in Atlanta, Georgia, serves as counsel to the Debtor. Morgan Keegan & Company, Inc., is the investment banker and financial advisor. The Debtor's balance sheet showed $164.7 million in assets and $134.1 million in debt as of Dec. 31, 2010. Since 2008, at least 11 ethanol-related companies have sought court protection, including VeraSun Energy Corp., once the second- largest U.S. ethanol maker; units of Pacific Ethanol Inc.; and White Energy Holding Co. SPECIALTY TRUST: Northlight Completes $28.5 Mill. Exit Financing ---------------------------------------------------------------- North Nevada Business Weekly reports that the financial reorganization of a Reno real estate lender has taken a major step forward with an infusion of capital led by a New York City firm that also will work out the assets held by Specialty Trust Inc. According to the report, Northlight Financial LLC of New York City said it completed a $28.5 million exit financing to Specialty Trust Inc. Northlight Financial is a manager of private-equity debt instruments. Some former investors in Specialty Trust also participated in the new financing. The report says the new capital provides breathing space for Northlight to find solutions for the troubled assets of Specialty Trust. Those assets, Northlight said, include more than 30 mortgages and properties that were taken back by Specialty in foreclosure actions after developers were unable to repay their loans. Ben Gerig, chief investment officer of Northlight's real estate group, said the company sees "substantial value" in the Specialty Trust assets. But he said the company also recognizes that a disciplined plan to work out the troubled assets, along with the targeted application of some fresh capital, will play a key role in determining the value of the assets. Northlight provided debtor-in-possession financing for Specialty Trust in December. The plan of reorganization that designated Northlight as the manager and loan servicer of the Specialty Trust portfolio was approved by the U.S. Bankruptcy Court in Reno in early June. About Northlight Northlight is an established corporate lender and asset-based investor that currently manages over $500 million in corporate loans, real estate loans and related assets. Mr. Gerig and his real estate team manage the firm's real estate group which currently manages over $300 million in commercial real estate loans and real estate assets with the addition of the Specialty Trust portfolio. Northlight was founded in November 2002 by Michael Jahrmarkt, Robert Woods and Mark Hirschhorn and has been a Registered Investment Advisor since 2006. Senior professionals at Northlight have originated or acquired more than $7 billion of credit-related assets over their careers and the Northlight founders have partnered since 1985 as primary management of significant business units at GE Capital, Heller Financial and Gilman Investment Company. About Specialty Trust Specialty Trust Inc. is a privately held Maryland corporation that acquires and holds, in a tax-advantaged real estate investment trust structure, mortgage loans and mezzanine loans secured by real property located primarily in Nevada, Arizona and California, and interests in entities owning real estate that was acquired through foreclosure of mortgage loans made by ST and mezzanine loans. Reno, Nevada-based Specialty Trust filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-51432) on April 20, 2010. Affiliates Specialty Acquisition Corp. (Bankr. D. Nev. Case No. 10-51437) and SAC II (Bankr. D. Nev. Case No. 10-51440) filed separate Chapter 11 petitions. Sallie B. Armstrong, Esq., and Michelle N. Kazmar, Esq., at Downey Brand LLP, in Reno, Nevada; and Ira D. Kharasch, Esq., Scotta E. McFarland, Esq., and Victoria A. Newmark, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, Calif., serve as the Debtor's bankruptcy counsel. On May 24, 2010, a committee of equity holders was appointed. On Sept. 2, 2010, the Court appointed Grant Lyon as chief restructuring officer of the Debtors. In its schedules, Specialty Trust disclosed assets of $201,452,048 and liabilities of $109,022,194 as of the petition date. In its amended schedules, Specialty Acquisition disclosed assets of $3,886,113 and liabilities of $49,068,173 as of the petition date. In its amended schedules, SAC II disclosed assets of $40,955,000 an liabilities of $39,445,118 as of the petition date. SPORTSMAN'S WAREHOUSE: To Reopen Store at Centennial Gateway ------------------------------------------------------------ Buck Wargo at Las Vegas Sun reports that retail developer Territory Inc. announced that Sportsman's Warehouse will reopen its store at Centennial Gateway and at Ann Road and U.S. 95 that it shuttered in 2009. According to the report, the reopening is expected during the first quarter of 2012, and Sportsman's Warehouse will hire more than 100 employees, said Nick Hannon, a Territory senior vice president. About Sportman's Warehouse Headquartered in Midvale, Utah, Sportsman's Warehouse, Inc. -- http://www.sportsmanswarehouse.com/-- and its affiliates has 29 stores selling indoors and outdoor gears and equipment. The Companies filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 09-10990) on March 20, 2009. Gregg M. Galardi, Esq., at Skadden, Arps, Slate, Meagher assists the Companies in their restructuring efforts. Kurtzman Carson Consultants is the Company's claims agent. Roberta DeAngelis, U.S. Trustee for Region 3, appointed seven members to the official committee of unsecured creditors of Sportsman's Warehouse Inc. Greenberg Traurig LLP represents the Committee. The Company disclosed assets of $436 million and debt totaling $452 million as of December 31, 2008. The Company emerged from chapter 11 in August 2009 under the terms of a Second Amended Plan projecting that general unsecured claims, owed $130 million, would recover about 15% from future cash flows. STERLING MINING: No Objections to Confirmation Filed by Due Date ---------------------------------------------------------------- Sterling Mining Company has filed a pre-confirmation report on June 28, 2011, which notes that there have been no objections filed to confirmation of its Chapter 11 Plan of Reorganization by the June 27, 2011 due date. In addition, the Debtor asserts that the Plan complies with all the requirements of Section of 1129 of the Bankruptcy Code and should therefore be confirmed. The confirmation hearing was scheduled for July 5, 2011. About Sterling Mining Based in Coeur d'Alene, Idaho, Sterling Mining Company (OTCBB:SRLM and FSE:SMX) -- http://www.SterlingMining.com/-- is a mineral resource development and exploration company. Sterling is engaged in the business of acquiring, exploring, developing and mining mineral properties primarily those containing silver and associated base and precious metals. Sterling operates the Sunshine Silver Mine in Idaho and has exploration projects in Idaho, U.S.A. Sterling was incorporated under the laws of the State of Idaho on February 3, 1903. Sterling is currently a debtor-in-possession in Chapter 11 Bankruptcy in the District of Idaho, U.S.A. Sterling Mining filed for bankruptcy protection on March 3, 2009 (Bankr. D. Idaho Case No. 09-20178). Bruce A. Anderson, Esq., at Elsaesser Jarzabek Anderson Marks Elliott & McHugh, Chartered represents the Debtor as counsel. As of Sept. 30, 2008, Sterling Mining had $31.9 million in total assets, and $13.2 million in total current liabilities and $1.6 million in total long-term liabilities. STRASBURG-JARVIS: Retail Group Buys Assets for $2.2 Mil. -------------------------------------------------------- Krista Klaus, staff writer at Kansas City Business Journal, Reports that Retail Group of America Inc. is paying $2.2 million to buy Lenexa clothing retailer Strasburg-Jarvis Inc. out of bankruptcy. The sale was slated to close by July 6, 2011. According to records filed with the U.S. Bankruptcy Court in Kansas, the bulk of the sale money -- $1.3 million -- was earmarked to repay secured creditor Steven Craig. The remaining money was to be disbursed to the Michael Merriman Trust, the Marybeth Sotos Trust and the Terry Jarvis Revocable Trust, as well as to a corporate account. Christopher Johnson of Saudi Arabia-based law firm Mohamed Al- Sharif represented Retail Group of America in the transaction. The Business Journal notes that Retail Group of America, a Delaware corporation, appears to be affiliated with Fawaz AlHokair Group, a dominant Saudi Arabia fashion retailer. Based in Lenexa, Kansas, Strasburg-Jarvis Inc. filed for Chapter 11 bankruptcy protection (Bankr. D. Kans. Case No. 09-20622) on March 11, 2009. Judge Robert D. Berger presides over the case. Donald G Scott, Esq., at McDowell Rice Smith and Buchanan, represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. SUMMER REGIONAL: Secured Creditors Object to Plan Confirmation ------------------------------------------------------------- KBC Bank N.V. and the Bank of Nova Scotia object to the confirmation of the plan of liquidation, as amended, of SRHS Bankruptcy Inc. fka Sumner Regional Health Systems Inc. in the U.S. Bankruptcy Court for the Middle District of Tennessee. On April 28, 2011, the Court approved the Debtor's disclosure statement explaining the Debtor's plan wherein all property of the Debtors will revest in the Debtors "free and clear of all Claims against the Debtors, liens, encumbrances, charges, and other rights and interests of Creditors arising on or before the Effective Date," and the plan administrator will liquidate the Debtors' remaining assets, including the property subject to the ground lease. In addition, the Plan further provides that all executory contracts will be rejected except for, inter alia, those executory contract designated for assumption on a schedule in the plan supplement. In April of 2007, Sumner Regional Health Systems Inc., as lessor, leased to Citadel Properties V LLC, as lessee, certain unimproved real estate dated as of April 1, 2007, between Sumner Regional and Citadel. According to the Secured Creditors, the Debtor seeks to reject the ground lease through the Plan, but the Plan does not preserve the rights of Citadel. Moreover, the Plan affirmatively creates an injunction prohibiting Citadel, and all other creditors, from exercising the right to setoff against the Debtors or the plan administrator and affirmatively provides that all property of the Debtors will revest in the Debtors "all Claims against the Debtors, liens, encumbrances, charges, and other rights and interests of creditors arising on or before the effective date." The Secured Creditors argue that the Plan purports to disturb the rights established by the ground lease. About Sumner Regional Summer Regional Health Systems Inc. operates a hospital system with four hospitals in north-central Tennessee and its flagship in Gallatin. Sumner Regional Health Systems, Inc. -- dba Sumner Regional Medical Center, SRHS Professional Services, Sumner Station, Sumner In-Patient Rehabilitation Unit, Westmoreland Pharmacy, Imaging for Women at Sumner Station, Diagnostic Center at Sumner Station, Outpatient Rehab Services at Sumner Station, The Fitness Center at Sumner Station, Sumner Crossroads, and Executive House Apartments -- filed for Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. M.D. Tenn. Case No. 10-04766). Robert A. Guy, Esq., at Frost Brown Todd LLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. SW BOSTON: Prudential Files Rival Reorganization Plan ----------------------------------------------------- The Prudential Insurance Company of America on behalf and solely for the benefit of its Insurance Company Separate Account, PRISA, filed with the U.S. Bankruptcy Court for the District of Massachusetts a disclosure statement explaining their proposed Chapter 11 plan of reorganization for SW Boston Hotel Venture LLC and its debtor-affiliates. The Plan provides for reinstatement of the Debtors' secured debt on the same or similar terms and payment in full to the holders of all Allowed, non-Insider, non-affiliate Unsecured Claims from the income generated by the Debtors' operations, liquidation of the Affiliate Debtors assets and the Prudential Cash Contribution. Under Prudential Insurances' plan, all claim holders will be paid in full. Holders of Prudential Loan claims are expected to receive new Prudential note and 100% of the equity interests in reorganized Debtors. Goodwin Procter LLP represents Prudential Insurance. A full-text copy of Prudential's Disclosure Statement is available for free at http://bankrupt.com/misc/SWBOSTON_DS.pdf A full-text copy of Prudential's Chapter 11 Plan is available for free at http://bankrupt.com/misc/SWBOSTON_plan.pdf Prudential's Objection to Debtors' Plan On June 24, 2011, Prudential Insurance filed an objection to the Chapter 11 plan proposed by the Debtors. Prudential Insurance noted now that the Debtors' hotel assets have been sold, the Plan is simply a straightforward plan of liquidation -- there is no reorganization. Prudential points out that the Plan as proposed is merely a vehicle to subvert the structural priorities of payment under the Bankruptcy Code in order to pay junior creditors, to fund operations and to establish working capital reserves all from the proceeds of Prudential's diminishing collateral. The Debtors propose to make these payments before the payment of Prudential's senior secured claim and its attendant postpetition interest. The Debtors' Plan As reported in the May 26, 2011 edition of the Troubled Compoany Reporter, the Debtors' Plan provides for the payment in full to the holders of all Allowed, non-Insider Claims from the income generated by the Debtors' operations and the sale of certain of the Debtors' assets. On March 28, 2011, SW Boston filed a motion to sell the hotel condominium and the parking condominium to a subsidiary of Pebblebrook Hotel Trust for a purchase price of $89.5 million. The net proceeds of the Hotel Sale will be paid to Prudential and will substantially reduce Prudential's claim. The Residences will be retained by SW Boston and sold in the ordinary course of business with the proceeds paid to creditors in accordance with the Plan. About SW Boston Hotel Boston, Massachusetts-based SW Boston Hotel Venture LLC is the developer of the W Hotel in Boston. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 10-14535) on April 28, 2010. Harold B. Murphy, Esq., and Natalie B. Sawyer, Esq., at Hanify & King, P.C., is the Debtors' bankruptcy counsel. Edwards Angell Palmer & Dodge LLP is the Company's special counsel. The Company estimated its assets and debts at $100 million to $500 million. TAREK IBN: Files For Chapter 11 Bankruptcy Protection ----------------------------------------------------- StarTribune reports that Tarek ibn Ziyad Academy, 4100 E. 66th St., Inver Grove Heights, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in St. Paul, Minnesota (Case No. 11-34372). The Company listed no assets and liabilities of $84,310. Asad Zaman is the Company's executive director. TELLICO LANDING: Hires Hagood Tarpy as Bankruptcy Counsel --------------------------------------------------------- Tellico Landing LLC seeks Bankruptcy Court permission to employ Thomas Lynn Tarpy, Esq., and the law firm of Hagood Tarpy & Cox PLLC as its general counsel. Mr. Tarpy will be paid at $300 an hour for her services. Associates at the firm that will be working on the Debtor's case and their hourly rates are: Allison Jackson, $125 per hour; Jesse Overbay, $175 per hour; and Thomas Leveille, $275 per hour. The Debtor has paid the firm $20,000 as retainer. About Tellico Landing Tellico Landing, LLC, based in Maryville, Tennessee, filed for Chapter 11 bankruptcy (Bankr. E.D. Tenn. Case No. 11-33018) on June 27, 2011. Judge Richard Stair, Jr., oversees the case. The Debtor scheduled $40,444,352 in assets and $8,532,455 in liabilities. The petition was signed by Michael L. Ross, its chief manager. TELLICO LANDING: Discovery in State Court Lawsuit Sought -------------------------------------------------------- Robert T. Stooksbury, Jr., asks the Bankruptcy Court to lift the automatic stay in Tellico Landing, LLC's bankruptcy case to allow two consolidated lawsuits to proceed with discovery, or, in the alternative, allow for the termination of the consolidation of the two lawsuits so the action where the Debtor is not a party to proceed. On March 23, 2009, Mr. Stooksbury filed a Complaint in Blount County Chancery Court, Docket Number 09-050, against LTR Properties, Inc. for the dissolution of Tellico. Thereafter Tellico was made a party and filed an Answer to the lawsuit. On April 2, 2009, Mr. Stooksbury filed a Complaint in Blount County Chancery Court, Docket Number 09-057, against Michael L. Ross; LTR Properties, Inc.; RPL Properties, LLC; LC Development Company, LLC; and Rarity Management Company, LLC. Tellico is not a party to this lawsuit. On Aug. 17, 2009, the two lawsuits were consolidated for the purpose of discovery by agreement of the parties. Attorney for Robert T. Stooksbury, Jr., is: James R. Moore, Esq. MOORE & BROOKS 6207 Highland Place Way, Ste. 203 Knoxville, TN 37919 Tel: (865) 285-7191 About Tellico Landing Tellico Landing, LLC, based in Maryville, Tennessee, filed for Chapter 11 bankruptcy (Bankr. E.D. Tenn. Case No. 11-33018) on June 27, 2011. Judge Richard Stair, Jr., oversees the case. The Debtor scheduled $40,444,352 in assets and $8,532,455 in liabilities. The petition was signed by Michael L. Ross, its chief manager. TELLICO LANDING: Sec. 341 Creditors' Meeting Set for July 27 ------------------------------------------------------------ The United States Trustee for the Eastern District of Tennessee will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of Tellico Landing, LLC, on July 27, 2011, at 9:00 a.m. at BK Meeting Room, First Floor, in Knoxville. Proofs of claim are due by Oct. 25, 2011. The Debtor's representative must be present at the meeting to be questioned under oath by the trustee and by creditors. Creditors are welcome to attend, but are not required to do so. The meeting may be continued and concluded at a later date without further notice. About Tellico Landing Tellico Landing, LLC, based in Maryville, Tennessee, filed for Chapter 11 bankruptcy (Bankr. E.D. Tenn. Case No. 11-33018) on June 27, 2011. Judge Richard Stair, Jr., oversees the case. The Debtor scheduled $40,444,352 in assets and $8,532,455 in liabilities. The petition was signed by Michael L. Ross, its chief manager. TELTRONICS INC: U.S. Trustee Names 7-Member Creditors Panel ----------------------------------------------------------- Donald F. Walton, the United States Trustee for Region 21, appointed seven creditors to the Official Committee of Unsecured Creditors in the bankruptcy case of Teltronics, Inc.: 1. John DeLuca, President Delco Electrical Corp. 766 5th Avenue Brooklyn, NY 11232 Tel: (718) 965-9801 E-mail: JdeLuca@DelcoElectric.net 2. Steven Orlando, President DataComm Consulting Group, Inc. 1276 Castleton Avenue Staten Island, NY 10310-1718 Tel: (718) 448-0807 E-mail: Steven_Orlando@datacommconsulting.com 3. Martin A. Gavin, President StarCom Communications Services, Inc. 41 Central Drive Farmingdale, NY 11735-1201 Tel: (631) 242-5000 E-mail: mgavin@starcomsvcs.com 4. Antonio Jabrane, Owner SAT Utility Contracting LLC 73 Adirondack Drive Selden, NY 11784-3236 Tel: (718) 966-7133 E-mail: Ajabrane@satcontracting.com 5. Michael Gavin, President Expertel Communication Ltd. 199-15 23rd Avenue Whitestone, NY 11357-4123 Tel: (347) 996-7879 E-mail: Ecl1984@aol.com 6. Mike Portoghese, RCDD GM Data Communication, Inc. 48 Woodbine Court Floral Park, NY 11001 Tel: 516 724-3667 E-mail: mportoghese@gmdatacom.com 7. Alex Wu, Owner Active Sales Associates, Inc. 7411 114th Avenue North, Suite 313 Largo, FL 33773-5127 Tel: 727-460-4273 E-mail: pcbalex@gmail.com Delco replaced Powell Electronics, Inc., as committee member. The United States Trustee for Region 21 is represented by: Denise E. Barnett, Esq., Trial Attorney 501 East Polk Street, Suite 1200 Tampa, FL 33602 Tel: (813) 228-2000 Fax: (813) 228-2303 E-mail: denise.barnett@usdoj.gov About Teltronics Inc. Palmetto, Fla.-based Teltronics, Inc. (OTC BB: TELT) -- http://ww.teltronics.com/-- designs, installs, develops, manufactures and markets electronic hardware and application software products, and engages in electronic manufacturing services primarily in the telecommunication industry. Teltronics has three wholly owned subsidiaries, Teltronics Limited, 36371 Yukon Inc., and TTG Acquisition Corp. Teltronics filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-12150) on June 27, 2011. Judge K. Rodney May presides over the case. Charles A. Postler, Esq., at Stichter, Riedel, Blain & Prosser, serves as the Debtor's counsel. The Debtor's Chief Restructuring Officer is Michael J. Worrall at Solutions Management. The petition was signed by Ewen R. Cameron, president. The Company's balance sheet at Dec. 31, 2010, showed $9.1 million in total assets and $19.8 million in total liabilities. TELTRONICS INC: Hires Stichter Riedel as Chapter 11 Counsel ----------------------------------------------------------- Teltronics Inc. seeks Bankruptcy Court authority to hire Charles A. Postler, Esq., and the law firm of Stichter, Riedel, Blain & Prosser, as Chapter 11 counsel. Charles A. Postler, Esq., will lead the engagement. Mr. Postler charges $450 an hour. The firm's standard hourly rates are: Partners $325-$475 per hour Associates $175-$325 per hour Paralegals $90-$150 per hour Mr. Postler attests that Stichter Riedel neither holds nor represents any interest adverse to the Debtor's estate, and is a "disinterested person" within the meaning of Sec. 101(14) of the Bankruptcy Code. Prior to the petition date, the Debtor paid the firm $75,000 as retainer. About Teltronics Inc. Palmetto, Fla.-based Teltronics, Inc. (OTC BB: TELT) -- http://ww.teltronics.com/-- designs, installs, develops, manufactures and markets electronic hardware and application software products, and engages in electronic manufacturing services primarily in the telecommunication industry. Teltronics has three wholly owned subsidiaries, Teltronics Limited, 36371 Yukon Inc., and TTG Acquisition Corp. Teltronics filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-12150) on June 27, 2011. Judge K. Rodney May presides over the case. The Debtor's Chief Restructuring Officer is Michael J. Worrall at Solutions Management. The petition was signed by Ewen R. Cameron, president. The Company's balance sheet at Dec. 31, 2010, showed $9.1 million in total assets and $19.8 million in total liabilities. An official committee of unsecured creditors has been appointed in the case. THORNWOOD FURNITURE: Get Approval to Use Cash Collateral -------------------------------------------------------- Furniture Today reports that Thornwood Furniture Mfg. was extended a ninth order to use cash collateral in the case earlier this month. The court also gave it permission to file an order for additional debtor in possession financing. Thornwood Furniture Manufacturing Inc., filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 10-____) in June 2010. Thornwood estimated assets and debts of $10 million to $50 million in its petition. Founded in 1987, Thornwood manufactures residential and commercial furnishings at its 500,000-square-foot plant in Phoenix, Arizona. Thornwood furnished the showpiece resort and casino of the $8.5 billion City Center project in Las Vegas. TRANSPECOS FOODS: Bankruptcy Hearing This Week ---------------------------------------------- CBS7 News reports that the main bankruptcy hearing for one of Pecos, Texas' biggest employers, Trans Pecos Foods, was set for Thursday July 14. There have already been several preliminary hearings held in the U.S. Bankruptcy Court in El Paso. The Pecos Economic Development Corporation will be represented in the hearing. Trans Pecos Foods had been paying for loans through them to modernize their equipment up until filing Chapter 11. TransPecos Foods LP, a producer and distributor of packaged foods, sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 11-31124) on June 9, 2011, in El Paso, Texas, blaming "an industry-wide shortage of a primary component for its mozzarella stick business." Assets were listed for $6 million with debt totaling $32.9 million. Secured debt owed to several lenders totals $30.7 million. Trade suppliers are owed $2.2 million. TUMBLEWEED AND CUSTOM: Emerges With New Tex-Mex Theme ----------------------------------------------------- The Creative Department reports that Tumbleweed restaurant chain - which had filed for Chapter 11 bankruptcy a mere two years ago - has emerged with a new Tex-Mex theme. According to Business First, the chain's new name will be "Tex-Mex Grill & Margarita Bar." The move is part of an aggressive marketing effort by the company that will take place in July and feature spots on television commercials, online advertising and newspaper inserts. Tumbleweed and Custom Food filed separate petitions for Chapter 11 relief (Bankr. W.D. Ky. Case No. 09-31525 and 09-31526) on March 27, 2009. Ruby D. Fenton-Iler, Esq., at Borowitz & Goldsmith, PLC, David M. Cantor, Esq., at Seiller Waterman LLC, and Gary L. Jones, Esq., at Jones Law Offices, represent Tumbleweed, Inc., as counsel. The Debtor estimated between $10 million and $50 million in assets and debts. UNLIMITED POTENTIAL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Unlimited Potential of Sanford, Inc. dba Millennium Print Group fdba Tailored Text 2015 Production Drive Apex, NC 27539 Bankruptcy Case No.: 11-05318 Chapter 11 Petition Date: July 11, 2011 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Debtor's Counsel: Jason L. Hendren, Esq. HENDREN & MALONE, PLLC 4600 Marriott Drive, Suite 150 Raleigh, NC 27612 Tel: (919) 573-1422 Fax: (919) 420-0475 E-mail: bwood@hendrenmalone.com Scheduled Assets: $1,624,070 Scheduled Debts: $3,273,346 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb11-05318.pdf The petition was signed by Thomas Darrin Spivey, president. VEY FINANCE: Court Set to Issue Further Ruling on Cash Collateral ----------------------------------------------------------------- The Hon. H. Christopher Mott of the U.S. Bankruptcy Court for the Western District of Texas previously entered an order authorizing Vey Finance LLC to use, on an interim basis, cash collateral securing the obligations to its lender. A hearing was set for July 14, 2011, at 10:00 p.m., to consider final approval of the Debtor's request. As reported in the TCR in May, the Debtor sought to use monies collected and revenues generated from the Debtor's notes receivable and real property holdings to fund its operations while in bankruptcy. The funds, the Debtor said, may constitute "cash collateral" as the term is defined in Section 363(a) of the Bankruptcy Code. The Debtor said Bank of the West, Capital Bank and Compass Bank may assert a lien or interest in the cash collateral. According to the Debtor, the lenders' interests are adequately protected by a substantial equity cushion: -- The Debtor believes the value of Bank of the West's collateral exceeds the amount of its debt, $1,422,867. The Debtor estimates that the Bank's real property and promissory notes collateral had a value of $2,293,058 as of May 13, 2011; -- The Debtor believes the value of Capital Bank's collateral exceeds the amount of its debt, $1,470,628. The Debtor estimates that the Bank's real property and promissory notes collateral had a value of $1,612,629 as of May 13, 2011. -- The Debtor believes that the value of Compass Bass' collateral exceeds or is approximately equal to the amount of its debt, $4,500,000. The Debtor estimates that the Bank's real property and promissory notes collateral had a value of $4,600,000 as of May 13, 2011. About Vey Finance El Paso, Texas-based Vey Finance LLC borrows money from banks which it subsequently loans to borrowers at a higher interest rate. The borrowers require real estate and provide Vey Finance with a promissory note and deed of trust. In return, Vey Finance pledges the promissory note and beneficial interest under the deed of trust to its lenders. If the borrowers default, Vey Finance forecloses on its collateral. As a result, Vey Finance currently owns and manages as landlord several parcels of commercial and residential real estate. The rents from that real estate are pledged to the lenders who provide the initial financing. Vey Finance filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case No. 11-30901) on May 13, 2011. Judge H. Christopher Mott presides over the case. Corey W. Haugland, Esq., at James & Haugland, P.C., serves as bankruptcy counsel. John W. (Jay) Dunbar, CPA, serves as its regular accountant. The Debtor scheduled assets of $10,477,513 and liabilities of $12,504,207. The petition was signed by Veronica L. Veytia, managing member. VICTOR VALLEY: Wants to Sell All Assets to Prime for $35 Million ---------------------------------------------------------------- Victor Valley Community Hospital asked the U.S. Bankruptcy Court for the Central District of California for authority to sell substantially all assets. According to Daily Press, Dr. Prem Reddy's nonprofit Prime Healthcare Services Foundation is poised to purchase Victor Valley Community Hospital for $35 million, in the second deal the bankrupt hospital has struck in less than a year. Court document stated that Prime Healthcare made a $5 million good faith deposit for the Debtor's assets. The sale is expected to close by Aug. 31, 2011. Daily Press say's VVCH spokeswoman Lovella Sullivan confirmed that the hospital accepted the offer from Prime. The Ontario-based foundation is the nonprofit arm of Reddy's hospital management company Prime Healthcare Services, which owns Desert Valley Hospital. The deal is pending approval by the U.S. Bankruptcy Court and California Attorney General. Victor Valley Community Hospital: * $17.4 million - Outstanding debt VVCH has accumulated * $35 million - Purchase offer from Prime Healthcare Services Foundation * $20.9 million - Projected net proceeds to the hospital from the sale * $5 million - Nonrefundable good faith deposit Prime wired to VVCH Tuesday A full-text copy of the asset purchase agreement is available for free at http://bankrupt.com/misc/VICTORVALLEY_APA.pdf 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: Asks Dallas Judge to Enforce Mexican Plan ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports Vitro SAB had a pivotal hearing July 14 in U.S. Bankruptcy Court in Dallas, where the Mexican glassmaker will try to persuade the judge to enforce whatever bankruptcy reorganization a court in Mexico eventually approves. The hearing is to decide whether Vitro's Mexican bankruptcy should be recognized as the "foreign main proceeding" under Chapter 15 of U.S. bankruptcy law. According to the report, the Mexican and U.S. bankruptcies are being opposed by holders of some of the $1.2 billion in bonds in default for more than two years. The bondholders contend the U.S. court ultimately shouldn't enforce a Mexican reorganization if Vitro succeeds in persuading the Mexican judge to cram it down on bondholders by using $1.9 billion in intercompany claims voting in favor of the reorganization. The bondholders contend that Vitro is ineligible for Chapter 15 because only the conciliator from the Mexican proceeding is entitled to represent the company in courts abroad. Mr. Rochelle reports that Vitro argued in papers filed this week that the company itself is entitled to file under Chapter 15, just like a U.S. company is a debtor-in-possession in Chapter 11 cases. Mr. Rochelle notes that if the bankruptcy judge in Dallas doesn't approve Vitro's Chapter 15 petition for whatever reason, even a successful outcome in Mexico may be futile since Vitro could be unable to enforce the Mexican reorganization plan in the U.S. 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, namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P., opposed the exchange. 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. ZUESY, LLC: Case Summary & Largest Unsecured Creditor ----------------------------------------------------- Debtor: Zuesy, LLC 304 Genoa Drive Redwood City, CA 94065 Bankruptcy Case No.: 11-52264 Chapter 11 Petition Date: July 12, 2011 Court: U.S. Bankruptcy Court District of Nevada (Reno) Judge: Bruce T. Beesley Debtor's Counsel: Michael Lynn Gabriel, Esq. LAW OFFICE OF MICHAEL LYNN GABRIEL 1271 Fifth Avenue Redwood City, CA 94002 Tel: (650) 508-8345 Fax: (650) 508 8359 E-mail: aetal@earthlink.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Lewis Daniel Rabin, managing member. The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Wiedow Family Trust Loan on Real Estate $930,000 822 Hartz Way, Suite 206 Danville, CA 94526 * U.S. Has 50% Chance of Downgrade in 3 Months, Says S&P -------------------------------------------------------- -- Standard & Poor's has placed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the United States of America on CreditWatch with negative implications. -- Standard & Poor's uses CreditWatch to indicate a substantial likelihood of it taking a rating action within the next 90 days, or in response to events presenting significant uncertainty to the creditworthiness of an issuer. The July 14 CreditWatch placement signals S&P's view that, owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that S&P could lower the long-term rating on the U.S. within the next 90 days. S&P has also placed short-term rating on the U.S. on CreditWatch negative, reflecting its view that the current situation presents such significant uncertainty to the U.S.' creditworthiness. -- Since S&P's revised the outlook on our 'AAA' long-term rating to negative from stable on April 18, 2011, the political debate about the U.S.' fiscal stance and the related issue of the U.S. government debt ceiling has, in S&P's view, only become more entangled. Despite months of negotiations, the two sides remain at odds on fundamental fiscal policy issues. Consequently, S&P believes there is an increasing risk of a substantial policy stalemate enduring beyond any near-term agreement to raise the debt ceiling. -- As a consequence, S&P believes that it could lower its ratings on the U.S. within three months. -- S&P may lower the long-term rating on the U.S. by one or more notches into the 'AA' category in the next three months, if S&P concludes that Congress and the Administration have not achieved a credible solution to the rising U.S. government debt burden and are not likely to achieve one in the foreseeable future. -- S&P still believes that the risk of a payment default on U.S. government debt obligations as a result of not raising the debt ceiling is small, though increasing. However, any default on scheduled debt service payments on the U.S.' market debt, however brief, could lead us to revise the long-term and short-term ratings on the U.S. to 'SD.' Under S&P's rating definitions, 'SD,' or selective default, refers to a situation where an issuer, the federal government in this case, has defaulted on some of its debt obligations, while remaining current on its other debt obligations. -- S&P may also lower the long-term rating and affirm the short-term rating if it concludes that future adjustments to the debt ceiling are likely to be the subject of political maneuvering to the extent that questions persist about Congress' and the Administration's willingness and ability to timely honor the U.S.' scheduled debt obligations. Standard & Poor's Ratings Services on July 14 said it placed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the United States of America on CreditWatch with negative implications. The CreditWatch action reflects S&P's view of two separate but related issues. The first issue is the continuing failure to raise the U.S. government debt ceiling so as to ensure that the government will be able to continue to make scheduled payments on its debt obligations. The second pertains to S&P's current view of the likelihood that Congress and the Administration will agree upon a credible, medium-term fiscal consolidation plan in the foreseeable future. On May 16, 2011, the U.S. government reached its Congressionally mandated ceiling for federal debt of $14.294 trillion. Since then, the government has undertaken exceptional measures to avoid breaching the debt ceiling. Secretary of Treasury Timothy Geithner wrote, "The unique role of Treasury securities in the global financial system means that the consequences of default would be particularly severe. . . . Even a short-term default could cause irrevocable damage to the American economy." The Treasury currently estimates that it will have exhausted these exceptional measures on or about Aug. 2, 2011, at which time it will either have to curtail certain current expenses or risk missing a scheduled payment of interest or principal on Treasury securities held by the public. Standard & Poor's still anticipates that lawmakers will raise the debt ceiling by the end of July to avoid those outcomes. However, if the government is forced to undergo a sudden, unplanned fiscal contraction -- as a result of Treasury efforts to conserve cash and avoid default absent an agreement to raise the debt ceiling -- S&P's thinks that the effect on consumer sentiment, market confidence, and, thus, economic growth will likely be detrimental and long lasting. If the government misses a scheduled debt payment, S&P believes the effect would be even more significant and, under our criteria, would result in Standard & Poor's lowering the long-term and short-term ratings on the U.S. to 'SD' until the payment default was cured. Congress and the Administration are debating various fiscal consolidation proposals. At the high end, budget savings of $4 trillion phased in over 10 to 12 years proposed by the Administration, (separately) by Congressional leaders, as well as by the Fiscal Commission in its December 2010 report, if accompanied by growth-enhancing reforms, could slow the deterioration of the U.S. net general government debt-to-GDP ratio, which is currently nearing 75%. "Under our baseline macroeconomic scenario, net general government debt would reach 84% of GDP by 2013. (Our baseline scenario assumes near 3% annual real growth and a post-2012 phaseout of the December 2010 extension of the 2001 and 2003 tax cuts.) Such a percentage indicates a relatively weak government debt trajectory compared with those of the U.S.' closest 'AAA' rated peers (France, Germany, the U.K., and Canada)," S&P said. "We expect the debt trajectory to continue increasing in the medium term if a medium -- term fiscal consolidation plan of $4 trillion is not agreed upon. If Congress and the Administration reach an agreement of about $4 trillion, and if we to conclude that such an agreement would be enacted and maintained throughout the decade, we could, other things unchanged, affirm the 'AAA' long-term rating and A-1+ short-term ratings on the U.S." Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might agree on. But for any agreement to be credible, S&P believes it would require support from leaders of both political parties. "Congress and the Administration might also settle for a smaller increase in the debt ceiling, or they might agree on a plan that, while avoiding a near-term default, might not, in our view, materially improve our base case expectation for the future path of the net general government debt-to-GDP ratio. U.S. political debate is currently more focused on the need for medium-term fiscal consolidation than it has been for a decade. Based on this, we believe that an inability to reach an agreement now could indicate that an agreement will not be reached for several more years. We view an inability to timely agree and credibly implement medium-term fiscal consolidation policy as inconsistent with a 'AAA' sovereign rating, given the expected government debt trajectory noted above," S&P added. "Further delays in raising the debt ceiling could lead us to conclude that a default is more possible than we previously thought. If so, we could lower the long-term rating on the U.S. government this month and leave both the long-term and short-term ratings on CreditWatch with negative implications pending developments. If Congress and the Administration agree to raise the debt ceiling (with commensurate fiscal adjustments), we aim to review the details of such agreement within the next 90 days to determine whether, in our view, it is sufficient to stabilize the U.S.' medium-term debt dynamics. If we conclude that the agreement would likely achieve this end, all other things unchanged, we would expect to affirm both the long- and short-term ratings and assign a stable outlook." "If a debt ceiling agreement does not include a plan that seems likely to us to credibly stabilize the U.S.' medium-term debt dynamics but the result of the debt ceiling negotiations leads us to believe that such a plan could be negotiated within a few months, all other things unchanged, we expect to affirm both the long- and short-term ratings and assign a negative outlook, pending review of the eventual plan. If such an agreement is reached, but we do not believe that it likely will stabilize the U.S.' debt dynamics, we, again all other things unchanged, would expect to lower the long-term 'AAA' rating, affirm the 'A-1+' short-term rating, and assign a negative outlook on the long-term rating." * Sharewell Capital Buying Two Properties in Chapter 11 ------------------------------------------------------- Sharewell Capital Group Inc. has signed an exclusive letter-of- intent to acquire two large real estate assets located in California, subject to recapitalization and approval from existing lenders at the time of closing. The properties are currently tied up in Chapter 11 bankruptcy, which Sharewell believes will enable the acquisition of these combined assets at a significant discount to current intrinsic values, largely through the issuance of shares of common stock of Sharewell. The first property consists of just over 27,000 contiguous acres of multi-use agricultural land in Central California. This is particularly appealing because of Sharewell's belief in the long- term investment thesis for agriculture, driven largely by consistent demand from a rising global population, coupled with the trend of improving diets, both domestically and abroad. The second property consists of just over 500 acres of commercial, single family residential and multi-family development land in San Diego's North County region. Sharewell contemplates engaging with an experienced development partner to help maximize the long-term potential of this premium property in the midst of continued fragility in the housing and mortgage markets, while concurrently minimizing capital expenditures in the near-term. "This transaction represents an opportunity for us to achieve some immediate investment scale for our shareholders, leveraging our public company structure to effectively acquire long-duration assets and permanent capital at attractive valuations," the report quotes Steve Robertson, Chief Executive Officer of Sharewell, as saying. "We have high conviction about the persistent capital commitment to food-based commodities, and firmly believe that agricultural property will continue to appreciate in the years ahead, while concurrently offering a compelling source of yield and recurring income." About Sharewell Sharewell Capital Group, Inc. is a publicly-traded holding company focused on making strategic acquisitions in undervalued companies and assets with significant growth potential. Sharewell intends to raise and invest significant permanent capital with a "duration agnostic" time horizon in order to maximize shareholder equity, liquidity and transparency. Sharewell is publicly-traded under the symbol SHCG. * Epiq Systems Says U.S. Business Bankruptcy Filings Drop in June ----------------------------------------------------------------- Dow Jones' DBR Small Cap reports that fewer struggling U.S. businesses sought bankruptcy protection in June, leading nationwide filing numbers to drop 1.8% from May, to 6,481 cases, and continuing a pattern that began to take shape earlier this year. * US Entrepreneurship Climate Favorable, Bankruptcies Prevail ------------------------------------------------------------- According to new data released by the Organization for Economic Co-Operation and Development (OECD), the US remains a very supportive environment for small businesses, though high failure rates represent a lasting concern. The report, Entrepreneurship At A Glance 2011, is an annual publication by the OECD. It chronicles the state of entrepreneurship in the various OECD countries through important key indicators. The US fared highly in small business creation, especially in construction, retail and professional services. Support for entrepreneurs was also evident, with the US ranked fourth in terms of administrative ease of starting a business. Financially, venture capital funding in the US totals 0.08% of GDP, which is second only to Israel. However, despite the favorable climate for small business growth, bankruptcy rates continue to cast a pall over the sector. Domestic rates of business failure peaked during the financial crisis and have hardly dropped since. They remain at almost triple that of the UK, France, and the Netherlands. "Business collapse is a real and serious danger for small business owners," said small business expert Phil Holland, founder of My Own Business, Inc. "The reality is that start-ups usually only get one chance to fail and too often will make avoidable mistakes caused by lack of appropriate training and experience before starting. For example, first working for someone else in the same business and gaining accounting and cash flow skills can avoid many pitfalls once in business." The high rate of business failure has not dented the opinions of Americans regarding entrepreneurship. Over 73% of the population surveyed had a favorable image of entrepreneurs. Phil agrees. "Going forward, small business will be a very important mainstay of the American economy. We believe that businesses can still thrive with the right preparation and support. That's a service we try to provide with our free business courses. Every day we see more and more people really getting serious about running their business, and in the end that's just the boost our economy needs." For now, the ongoing support afforded to small business owners by the state and private sources such as My Own Business leaves experts cautiously optimistic. About My Own Business, Inc My Own Business, Inc (MOBI) is a leading provider of free business education to small business owners. We exist to support the vital social and economic contributions of small businesses by nurturing entrepreneurship and helping individuals build their own business. Online at www.myownbusiness.org * BOOK REVIEW: Competition in the Health Care Sector ---------------------------------------------------- Author: Warren Greenberg, Ph.D. Publisher: Beard Books Softcover: 410 pages List Price: $34.95 Review by Henry Berry Competition in the Health Care Sector covers a landmark Federal Trade Commission (FTC) conference in June 1977. The conference was attended by over 600 individuals, including healthcare administrators, government policymakers, sociologists and other academics, and medical doctors. All were present to try to get a better appreciation for the role and impact of economics in healthcare services. At that time (and still true today), Medicaid and Medicare were growing larger, health maintenance organizations (HMOs) were assuming a central place in the healthcare system, payment methods were proliferating and becoming more complicated, and consumers were becoming more informed about and involved with their healthcare options. Both government agencies and the private sector recognized that economic principles and phenomena were at work in the healthcare sector. The FTC conference was called to clarify the economic factors and their effects in healthcare in order to gain better control over the sector, particularly its escalating costs. The 24 chapters in Competition in the Health Care Sector are presented in four sections. The first is "Opening Remarks and Introduction," followed by sections on "Competition in Selected Sectors," "Insurance, Competition, and Alternative Delivery Systems," and "Competition and Regulation." Many of the chapters are titled "Comment," which contain comments by an individual on one of the topics presented in the four major sections. There is also a detailed index that leads readers to specific subjects of interest. Despite its general title, the first section gets right to the substance of the conference as connoted in the title. It is a staff report prepared by the FTC's Bureau of Economics. At the time of the conference, Greenberg was a staff economist with the FTC and presumably he had an appreciable hand in the report. There is a note that the FTC "has not adopted the report in whole or part." But this is a pro forma entry because there is little to adopt or reject in this government paper. The staff report is a summary of the lengthy and often detailed informative and analytic papers that follow in the remaining 400 pages of Competition in the Health Care Sector. In an address opening the conference, Michael Pertschuk, then FTC chairman, stresses that, "The Federal Trade Commission is not a health or medical agency . . . [W]e recognize, along with most Americans, that the delivery of health care is business, an industry of vast proportions and vital effect. Health care has become [the FTC's] business." That the FTC, charged with monitoring and regulating businesses, has come to regard the healthcare industry in the same terms as other business sectors plainly evidences the nature of modern-day healthcare. Healthcare executives and administrators as well as doctors and related health professionals concurred with the perspective of the FTC Chairman. Dr. Theodore Cooper, dean of Cornell University's Medical College at the time, said in his opening remarks that, "I have to admit that one can no longer discuss health policy without an appreciation of the importance of economic factors." Dr. Cooper also stated that, "the political and technical discussions about health policy will continue to expand." And he said that, "if the conference can clarify how competition fits into the 'scheme of things,' this will be a milestone for doctors, patients, and hospitals." The critical issue of competition in the healthcare industry was omnipresent during the conference. Most of the topics covered during the conference addressed, to some degree or another, the effects of competition. The impact of competition on physicians, hospitals, and insurers was analyzed. Another area of discussion focused on the interrelationship between competition and alternative means of payment. Appropriately for a conference sponsored by the FTC, the interrelation of competition and regulation came under study. Analyses follow the introduction of each topic. For example, "Competition Among Physicians," is followed by expert commentary. The style of the papers is, as is well described by the author, "a mix of technical jargon and mathematical exposition common to most economists, and language suitable for non-economists and public policy-makers." The conference did not arrive at definite conclusions about the place and effects of economics on the thriving, sprawling, complex healthcare industry that encompasses innumerable organizations and professionals of many different kinds. It did, however, succeed in its objective of presenting data, offering illuminating analyses, providing knowledgeable perspectives, and eliciting expert commentary. All this is offered in a reprint of a 1978 book that still has a place on everyone's bookshelf as a fundamental text and reference on economics in the healthcare field. Warren Greenberg has a Ph.D. in economics from Bryn Mawr University. Author of many books and articles in the area of industrial organization economics and healthcare, Greenberg is also a professor of Health Economics and of Health Care Sciences at George Washington University. ********* 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 ***