/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110719.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, July 19, 2011, Vol. 15, No. 198 Headlines 12 BYFIELD: Exit Financing to Fund Completion, Sale of Project AGRISOLAR SOLUTIONS: HKCMCPA Company Raises Going Concern Doubt ALLEN FAMILY: 30 Employees to Lose Jobs at Maryland Plant ALLEN FAMILY: Rejects Agreement With VP of Sale H. Schwartz ALLEN FAMILY: Files Schedules of Assets and Liabilities ALLIED IRISH: Exceeds EBA Stress Test Threshold AMERICAN POST: Board Consents to Plan of Re-Organization APPLIED DNA: Sells 105.26 Million Common Shares for $5 Million ARCTIC GLACIER: In Discussions With Lenders to Amend Credit Pact AURA SYSTEMS: Incurs $2.02 Million Net Loss in May 31 Quarter AVALON OIL: Bernstein & Pinchuk Raises Going Concern Doubt AVION POINT: Orlando Apopka Condo Developer in Chapter 11 BESO LLC: Investors Want Court to Appoint Chapter 11 Trustee BLACK GAMING: Regulators Recommend Licensing of Mesquite Gaming BLOCKBUSTER INC: Posts $268 Million Net Loss in Yr. Ended Jan. 2 BORDERS GROUP: No Bids to Keep Afloat, To Liquidate Assets BORDERS GROUP: DJM Realty to Dispose All Real Estate in U.S. BORDERS GROUP: Creditors Committee Opposes Sale of Mortgage Loans BORDERS GROUP: Committee Opposes Harrisburg Termination Deal BORDERS GROUP: Opposes 49 Waukegan Admin. Claims Application BRUNSWICK CORP: Moody's Assigns 'B1' Corporate Family Rating CANO PETROLEUM: Names Former NGP Head J. Homier as New CFO CAPISTRANO TERRACE: Failed to Sell Mobile-Home Park Due to Lawsuit CARBON ENERGY: Files List of Six Largest Unsecured Creditors CARBON ENERGY: Sec. 341 Creditors' Meeting Slated for Aug. 1 CARBON ENERGY: Hearing on Joint Administration Set for Aug. 5 CARGO TRANSPORTATION: Terms of Proposed Reorganization Plan CATHOLIC CHURCH: Wilm. Confirmation Hearing to Continue on July 28 CATHOLIC CHURCH: Settlement Party Objects to Wilm. Plan CATHOLIC CHURCH: Abuse Survivors Oppose 2nd Plea for Pensions CENTAUR LLC: Luna's Fortune Valley Renovation Nears Completion CHURCH AT SOUTH: Church Members Won't Pay Mortgage Owed to Bank CIRCUIT CITY: DIVX Patent Portfolio Auction on Aug. 16 COMPOSITE TECHNOLOGY: BCC Advisory OK'd as Investment Banker CORDIA COMMUNICATIONS: Sells Business to Birch Communications CREDITRON FINANCIAL: RDI Marketing Offers $1.4-Mil. for Assets CRISTAL INORGANIC: Moody's Upgrades Corp. Family Rating to 'B1' CRYSTAL CATHEDRAL: My Father's Church Bids $50 Million for Assets DAVID BROWN: 50 Cent Doubts Young Buck's Repayment Plan DAVIE YARDS: Ends Sale Talks With Fincantieri; CCAA Stay Extended DAYBREAK OIL: Posts $154,400 Net Loss in May 31 Quarter DBSI INC: DBSI Trustee Sues 6 Brokers Over $500 Mil. Ponzi Scheme DEAN FOODS: Moody's Says Antitrust Deal Won't Affect on Ba3 Rating DELIVERANCE CHRISTIAN: Case Summary & 15 Largest Unsec. Creditors DLH MASTER: Court Approves 380 Project Settlement DYNEGY INC: Lawyers Meet With Potential Lenders on Spinoff Plans EAST COAST: Jonathan W. Washburn OK'd as Broker for Certain Assets EAST COAST: Finalizing Deal for New Investor, Wants Time for Plan EASTMAN KODAK: 2013 Bonds Fall Below Face Value EB CAPITAL: S.D.N.Y. Court Transfers Case to South Dakota ELBIT VISION: Brightman Almagor Raises Going Concern Doubt ELLIPSO INC: Auctioneers Put Patents & Trademark Up For Sale ENCAP GOLF: Wisler Gets Medical Continuance Until Dec. 1 EVERGREEN ENERGY: MR&E Defaults Under Purchase Agreement EVERGREEN SOLAR: Fails to Pay $4.16MM Notes Interest Payments FALLS AT TOWNE: Asks Court to Approve Ravich Meyer Hiring FALLS AT TOWNE: Sec. 341 Creditors' Meeting Set for Aug. 15 FEC RESOURCES: Posts C$3.2 Million Net Loss in 2010 FIGUEROA TOWER: Files for Chapter 11 Protection FLOWER FACTORY: Urges Creditors to Vote for Reorganization Plan FREE CLEAR: Meeting of Creditors Continued Until July 28 GEO POINT: Hansen Barnett Raises Going Concern Doubt GLAZIER GROUP: Creditors Panel Wants Settlement Agreement Denied GLAZIER GROUP: Asks Court to Approve Disclosure Statement GLOBAL INVESTOR SERVICE: RBSM LLP Raises Going Concern Doubt GP WEST: Bufete Roberto Approved as Bankruptcy Attorneys GP WEST: Has Deal for Cash Collateral Access Until Nov. 30 HARVEST OAKS: Can Access Cash Collateral Until July 31 HAWAII MEDICAL: Committee Opposes $14 Million Loan From MidCap HB LOGISTICS: Truck McGriff in Chapter 11 One Year After Buyout HINGHAM CAMPUS: Says Appointment of Mediator is Not Necessary HORIZON VILLAGE: Files For Chapter 11 Bankruptcy Protection HORIZON VILLAGE: Case Summary & 7 Largest Unsecured Creditors IMPERIAL CAPITAL: Disclosures Okayed; Aug. 12 Ballot Deadline Set IMPERIAL PETROLEUM: Annalee Wilson Resigns as Director INSIGHT GLOBAL: Moody's Raises Corporate Family Rating to 'B1' IQT SOLUTIONS: Laying Off, Not Paying Workers JACKSON GREEN: Creditors Seek Case Dismissal JACKSON GREEN: Files Schedules of Assets and Liabilities JACKSON GREEN: Hires Byrne Law Office as Bankruptcy Counsel JACKSON GREEN: Sec. 341 Creditors' Meeting Set for Aug. 3 JASMINE PLACE: Condo Complex in Receivership JOURNAL REGISTER: Alden Acquires Business 2 Years After Exit KEENE BROTHERS: Case Summary & 20 Largest Unsecured Creditors KEYSTONE SURPLUS: Chapter 7 Trustee Can Amend Suit v. Principal KMC REAL ESTATE: Court Grants Control of Assets to RL BB Financial KNOLLWOOD PROPERTIES: Case Summary & Largest Unsecured Creditor KTLA LLC: Files Schedules of Assets & Liabilities LA BOTA DEVELOPMENT: Gets Court OK to Enter Into Insurance Premium LAMBUTH UNIVERSITY: To Pay Out Remaining Employees $4,156 LEE ENTERPRISES: Fails to Comply with NYSE's Listing Standards LEHMAN BROTHERS: JPM Reserves Rights for Jury Trial LEXICON UNITED: Completes Acquisition of Accres Global LITHIUM TECHNOLOGY: Provides Battery Cells for Volkswagen LOS ANGELES DODGERS: Seeks to Tap Blackstone as Investment Banker LOS ANGELES DODGERS: MLB Offers Longer Repayment Terms LV KAPOLEI: Carlsmith Ball OK'd to Aid in Declaration Enforcement LYONDELL CHEMICAL: Ex-Workers Fight to Keep $10-Mil. Race Claims MAGNUM HUNTER: Subsidiary Purchases Two New Drilling Rigs MAQ MANAGEMENT: Wants Access to BB&T Cash Collateral MERRITT AND WALDING: Meeting of Creditors Continued Until July 19 MERRITT AND WALDING: Has Until July 31 to Use Cash Collateral MICROBILT CORP: Has Until Nov. 15 to Propose Chapter 11 Plan MICROBILT CORP: Lease Decision Period Extended Until Oct. 17 MICROTECH SMALL: Case Summary & 22 Largest Unsecured Creditors MILE HIGH: Case Summary & 18 Largest Unsecured Creditors MOHEGAN TRIBAL: Files Statistical Report for Mohegan Sun MONEYGRAM INT'L: $100,000 Relocation Expenses for EVP Approved MOTORS LIQUIDATION: Inks First Amendment to GUC Trust Agreement NEW JERSEY MOTORSPORTS: Chapter 11 Plan Approved at Hearing NEXTWAVE WIRELESS: In Talks With Woteholders on Waiver NORTHERN BERKSHIRE: Taps Huron Consulting as Financial Advisor NORTHERN BERKSHIRE: Committee Objects to Cash Collateral Use NOVEMBER 2005: Wants Schedules Filing Deadline Moved to Aug. 3 NOVEMBER 2005: Sec. 341 Creditors' Meeting Set for Aug. 8 NOVEMBER 2005: Hiring Greene Infuso as Chapter 11 Counsel OCEAN PLACE: Court Approves Stephen M. Herbstman as Auditor OLSEN'S MILL: Court Says BNP Paribas to Recover Losses OPEN TEXT: Moody's Affirms 'Ba2' Corporate Family Rating OPTI CANADA: Provides Update on Q2 2011 Joint Venture Operations PEREGRINE PHARMA: Ernst & Young Raises Going Concern Doubt PREMIER GOLF: Taps Charles E. Brumfield as In-House Counsel PREMIER GOLF: Wolfgang F. Hahn OK'd to Handle State Litigation PREMIER GOLF: Court OKs Jack Fitzmaurice as Bankruptcy Counsel PREMIER GOLF: Court OKs Darvy Cohan as Special Bankruptcy Counsel PUBLIC MEDIA: Incurs $2.89 Million Net Loss in May 31 Quarter QUANTITATIVE ALPHA: Grant Thornton Raises Going Concern Doubt RANCHER ENERGY: Posts $674,059 Net Loss in Year Ended March 31 REAL MEX: Appoints Edie Ames as EVP and COO REID PARK: Meeting of Creditors Continued Until July 28 RIVER EAST: Receiver Can Access Cash Collateral Until July 31 ROYAL HOSPITALITY: Can Use Cash Collateral Until July 27 ROYAL HOSPITALITY: U.S. Trustee Seeks to Convert Case to Chapter 7 SAVANNAH OUTLET: Can Access Cash Collateral until July 31 SBARRO INC: Creditors Demand E&Y Earnings Report SBARRO INC: Wants Plan Filing Exclusivity Until Nov. 30 SBARRO INC: Seeks More Time to Engineer Restructuring SCC/HARMONY GROVE: Court Dismisses Chapter 11 Involuntary Case SECUREALERT INC: Completes Acquisition of MM&S SEVERN BANCORP: Incurs $846,000 Net Loss in Q2 2011 SHILO INN: Court OKs Coldwell Banker as Real Estate Broker SHOPS AT PRESTONWOOD: Banks Want Case Converted to Chapter 7 SOUPMAN INC: Posts $1.6 Million Net Loss in May 31 Quarter SOUTH DAKOTA: A.M. Best Upgrades Issuer Credit Rating to 'bb+' SOUTHWEST GEORGIA: Has Until Aug. 4 to Propose Chapter 11 Plan SOUTHWEST GEORGIA: Has Until Aug. 30 to Assume or Reject Leases SPOT MOBILE: LV Administrative Demands Payment of $1.32 Million WASHINGTON LOOP: ROBI Wants Case Dismissed or Converted WASHINGTON MUTUAL: Starts Second Try for Chapter 11 Plan Approval WASHINGTON MUTUAL: Shareholders Question Value of Reorganized WaMu WATERSCAPE RESORT: Loses Bid to Exit From Bankruptcy WECK CORP: Plan Confirmation Hearing Scheduled for Aug. 24 WESTERN INSURANCE: A.M. Best Downgrades FSR to 'B' XAVIER REALTY: Case Summary & Largest Unsecured Creditor XODTEC LED: Delays Filing of Quarterly Report on Form 10-Q XZERES CORP: Posts $2 Million Net Loss in May 31 Quarter YAVAPAI COUNTY: Files For Chapter 7 Bankruptcy YELLOWSTONE CLUB: Patten Says Court Can't Hear Malpractice Suit * 2nd Circ. Backs Matrix's $9-Mil. Breach for Dunkin Donuts Stores * Right to Jury Trial Waived by Filing Copyright Claim * Spending $300 Monthly on Cigarettes Not Unreasonable * U.S. Bank Failures Slow So Far But Will Likely Remain Elevated * Economic Crisis Threatens Greek Community Paper in Istanbul * New Legislation Aims to Bar Bankruptcy-Venue Shopping * U.S. Business Bankruptcy Filings Drop in June * More Small Business Owners Sell as Values Remain Depressed * Large Companies With Insolvent Balance Sheets ********* 12 BYFIELD: Exit Financing to Fund Completion, Sale of Project -------------------------------------------------------------- In May, the U.S. Bankruptcy Court for the Southern District of New York approved the disclosure statement explaining the Debtor's Chapter 11 plan, as amended. The Plan will be implemented by and through the proceeds of an exit financing, a loan from TDC Secured Strategies Fund, LLC secured by a first priority priming lien on the Debtor's single family residence project in the approximate amount of $3 million for a term of 18 months, with two extension options of three months each. The proceeds of the exit financing will be sufficient to permit the Reorganized Debtor to fund the initial distribution to creditors, payment of allowed administrative claims (including professional fees), payment of allowed priority tax claims, completion of the Project, interest payments to USA Ban, and carry costs for a reasonable time period to market and sell the Project so as to maximize value. To the extent that there is a shortfall, the holders of the equity interests have agreed to infuse up to an additional $250,000. Secured creditor USA Bank will be paid in full from the proceeds of the sale of the Project. Holders of mortgage options, a separate group of secured creditors, will also be paid in full. Holders of allowed priority claims will be paid in cash, in full. Holders of general unsecured Claims will be paid 50% of their allowed claims on the later of the effective date or the date any such claim becomes an allowed claim and 50% of their allowed claims from the proceeds of the sale of the Project after payment of the higher ranked creditors. Under the Plan, holders of existing equity interests (Class 6), namely, James Scheckter and Susan Scheckter, will be issued new interests in the Reorganized Debtor. In exchange for the new interests, James Scheckter and Susan Scheckter will contribute as capital to the Reorganized Debtor an amount up to $250,000 in the aggregate if, when and as needed by the Reorganized Debtor, as well as guarantee the exit financing and continue their guarantees of the allowed secured claim of USA Bank. A copy of the Amended Disclosure Statement is available at: http://bankrupt.com/misc/12byfield.amendedDS.pdf Redding, Connecticut-based 12 Byfield, LLC, was formed in May 2007 to construct a single family residence at the property, 2.69 acres located at 12 Byfield Road, Greenwich, Connecticut. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-22740) on April 16, 2010. Richard J. Bernard, Esq., and Alissa M. Nann, Esq., at Baker & Hostetler LLP, assist the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and $1 million to $10 million in debts as of the Chapter 11 filing. AGRISOLAR SOLUTIONS: HKCMCPA Company Raises Going Concern Doubt --------------------------------------------------------------- AgriSolar Solutions, Inc., filed last week its annual report on Form 10-K for the fiscal year ended March 31, 2011. HKCMCPA Company Limited, in Hong Kong, expressed substantial doubt about AgriSolar Solutions' ability to continue as a going concern. The independent auditors noted that the Company has suffered from negative operating cash flows and accumulated deficit. The Company reported net income of $214,554 on $9.9 million of revenue for fiscal 2011, compared with a net loss of $921,995 on $4.6 million of revenue for fiscal 2010. The Company's balance sheet at March 31, 2011, showed $11.09 million in total assets, $5.94 million in total liabilities, and stockholders' equity of $5.15 million. A copy of the Form 10-K is available at http://is.gd/YUKQom Denver, Colorado-based AgriSolar Solutions, Inc., through its operating affiliate, Shenzhen Fuwaysun Technology Company Limited, a Peoples Republic of China corporation, is engaged primarily in the development, production and sale of solar products, including a solar insect killer and other products designed for agricultural and commercial use. Its manufacturing facility is located in Shenzhen, PRC, and a substantial majority of its current sales and business operations are in China. ALLEN FAMILY: 30 Employees to Lose Jobs at Maryland Plant --------------------------------------------------------- Bryan Spyros at WBOC-TV 16 reports that at least 30 workers are expected to be laid off from Allen Family Foods poultry processing plant in Cordova, Maryland. The move comes after the Seaford, Del.-based company applied for Chapter 11 bankruptcy last month. The report says the Seaford Milling Company, an affiliate of poultry giant Mountaire Farms, is hoping to buy Allen's assets at an auction scheduled for July 28. It is still unclear if more layoffs at the Cordova plant will happen after, or if the facility will be shut down. About Allen Family Foods Allen Family Foods Inc. is a 92-year-old Seaford, Del., poultry company. Allen Family Foods, along with two affiliates, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-11764) on June 9, 2011. It estimated assets and liabilities between $50 million and $100 million in its petition. Affiliates that filed separate Chapter 11 petitions are Allen's Hatchery Inc. and JCR Enterprises Inc. BMO Capital Markets is the Debtors' investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Lowenstein Sandler PC and Womble Carlyle Sandridge & Rice, PLLC, serve as counsel for the official committee of unsecured creditors. J.H. Cohn LLP serves as the Committee's financial advisor. ALLEN FAMILY: Rejects Agreement With VP of Sale H. Schwartz ----------------------------------------------------------- Allen Family Foods, Inc., and its debtor affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to reject an employment agreement with Harry S. Schwartz, effective as of July 6, 2011. Pursuant to the agreement, Mr. Schwartz is employed as vice president of sale for Allen's Family Foods, Inc. The agreement establishes the terms and duration of his employment with the company, including his compensation, benefits, and post-employment obligations. As a result of the pending proposed sale of the Debtors' assets, the Debtors are analyzing their current employment needs during the transitional period and have determined that the rejection of the agreement is in the best interest of the Debtors' estates and will result in significant savings, Andrew L. Magaziner, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, tells the Court. About Allen Family Foods Allen Family Foods Inc. is a 92-year-old Seaford, Del., poultry company. Allen Family Foods, along with two affiliates, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-11764) on June 9, 2011. It estimated assets and liabilities between $50 million and $100 million in its petition. Affiliates that filed separate Chapter 11 petitions are Allen's Hatchery Inc. and JCR Enterprises Inc. Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. FTI Consulting is the financial advisor. BMO Capital Markets is the Debtors' investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Lowenstein Sandler PC and Womble Carlyle Sandridge & Rice, PLLC, serve as counsel for the official committee of unsecured creditors. J.H. Cohn LLP serves as the Committee's financial advisor. ALLEN FAMILY: Files Schedules of Assets and Liabilities ------------------------------------------------------- Allen's Hatchery, a debtor-affiliate of Allen Family Foods, Inc., filed with the U.S. Bankruptcy Court for the District of Delaware its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $19,251,001 B. Personal Property $93,140,071 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $82,842,894 E. Creditors Holding Unsecured Priority Claims $31,961 F. Creditors Holding Unsecured Non-priority Claims $6,427,990 ----------- ----------- TOTAL $112,391,072 $89,302,845 Two other debtors also filed their respective schedules, disclosing: Assets Liabilities ----------- ----------- Allen Family Foods, Inc. $55,349,567 $142,841,217 JCR Enterprises, Inc. $8,794,064 $87,061,788 About Allen Family Foods Allen Family Foods Inc. is a 92-year-old Seaford, Del., poultry company. Allen Family Foods, along with two affiliates, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-11764) on June 9, 2011. It estimated assets and liabilities between $50 million and $100 million in its petition. Affiliates that filed separate Chapter 11 petitions are Allen's Hatchery Inc. and JCR Enterprises Inc. Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. FTI Consulting is the financial advisor. BMO Capital Markets is the Debtors' investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Lowenstein Sandler PC and Womble Carlyle Sandridge & Rice, PLLC, serve as counsel for the official committee of unsecured creditors. J.H. Cohn LLP serves as the Committee's financial advisor. ALLIED IRISH: Exceeds EBA Stress Test Threshold ----------------------------------------------- Allied Irish Banks, p.l.c., noted the announcements of the EU-wide stress testing exercise co-ordinated by the European Banking Authority under the supervision of the Central Bank of Ireland. The Educational Building Society was not included in the EBA exercise. The result of the EBA Stress test takes into account the recapitalisation measures announced following the Prudential Capital Assessment Review. The EBA methodology includes a number of differences to the methodology applied in the PCAR exercise conducted by the CBI in March 2011. The EBA stress test set a 5% Core Tier 1 capital requirement in the stress scenario, while a level of 6% was applied in PCAR. The PCAR was applied on a three year horizon from 2011-2013 compared to the two year 2011-2012 timeline applied by the EBA. The EBA 2012 stress scenario expects AIB, post recapitalisation, to have a Core Tier 1 capital ratio of 11.7% (including euro 1.4bn contingent capital). There were also additional significant methodology differences applied to AIB in the EBA stress test versus PCAR including future balance sheet size, higher risk weightings, application of higher funding costs and treatment of sovereign and bank credit losses. The published results confirm that in all scenarios tested, AIB exceeds the EBA stress test threshold of 5% Core Tier 1 capital ratio and a significant capital surplus is evident in both the base and stress scenarios. To view the summary results including the EBA disclosure templates for AIB please click on this link http://is.gd/QWj7Xh About Allied Irish Banks, p.l.c. Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a major commercial bank based in Ireland. It has an extensive branch network across the country, a head office in Dublin and a capital markets operation based in the International Financial Services Centre in Dublin. AIB also has retail and corporate businesses in the UK, offices in Europe and a subsidiary company in the Isle of Man and Jersey (Channel Islands). Since the onset of the global and Irish financial crisis, AIB's relationship with the Irish Government has changed significantly. As at Dec. 31, 2010, the Government, through the National Pension Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary shares of the Company (the share of the voting rights at shareholders' general meetings), 10,489,899,564 convertible non- voting ("CNV") shares and 3.5 billion 2009 Preference Shares. On April 8, 2011, the NPRFC converted the total outstanding amount of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby increasing its holding to 92.8% of the ordinary share capital. In addition to its shareholders' interests, the Government's relationship with AIB is reflected through formal and informal oversight by the Minister and the Department of Finance and the Central Bank of Ireland, representation on the Board of Directors (three non-executive directors are Government nominees), participation in NAMA, and otherwise. As reported by the TCR on May 31, 2011, KPMG, in Dublin, Ireland, noted that there are a number of material economic, political and market risks and uncertainties that impact the Irish banking system, including the Company's continued ability to access funding from the Eurosystem and the Irish Central Bank to meet its liquidity requirements, that raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of EUR10.16 billion on EUR1.84 billion of interest income for 2010, compared with a net loss of EUR2.33 billion on $2.87 billion of interest income for 2009. The Company's balance sheet at Dec. 31, 2010, showed EUR145.2 billion in total assets, EUR140.9 billion in total liabilities, and stockholders' equity of EUR4.3 billion. AMERICAN POST: Board Consents to Plan of Re-Organization -------------------------------------------------------- American Post Tension, Inc., on June 24, 2011, entered into an Agreement and Plan of Reorganization approved by unanimous written consent of its Board of Directors. A vote or written consent of the Company's shareholders was not required under Delaware law, except to approve the amendment to Company's Articles of Incorporation to change the corporate name to Crown City Pictures, Inc. The transactions contemplated by the Agreement were closed on July 6, 2011, effective June 30, 2011, except for the corporate name change, which will be effective 20 days after the mailing of a definitive Information Statement to Company's shareholders disclosing the approval of the corporate name change. The Agreement provided for these transactions: (1) The Company acquired all of the issued and outstanding stock of Crown City Pictures, Inc., from Crown City Holdings, Inc., effective June 30, 2011, in exchange for 20,000,000 shares of the Company's common stock and 1,000,000 shares of a new class of convertible preferred stock, with voting rights equal to 51 percent of the total vote of all classes of stock entitled to vote and convertible at the discretion of the holder into 51 percent of the then outstanding common stock of the Company at any time commencing one year after closing. (2) The Company also transferred its existing operating subsidiary. Nevada Post Tension, Inc., and all of the post tension business and all related debts and liabilities, to the former majority shareholders of the Company, Edward Hohman and John Hohman, also effective June 30, 2011, in exchange for cancellation of 23,324,425 shares of common stock held by them, representing 64 percent of then issued and outstanding shares of common stock before the transaction. (3) The Board of Directors of the Company also approved the amendment of the Articles of Incorporation of the Company in Delaware to change the corporate name to Crown City Pictures, Inc., and to apply for a change in the trading symbol on the OTC Bulletin Board from APTI to a new symbol consistent with the new corporate name. Crown City Pictures, Inc., is a holding company with two operating subsidiaries in the movie and film industry, United Front, LLC, and The Uprising Film and Television, LLC. On June 23, 2011, the Company, the two majority shareholders of Company and CCHI entered into an Acquisition Agreement, pursuant to which the Company agreed to redeem 23,324,425 shares of the outstanding common stock of the Company from the Majority Shareholders, representing approximately 64 percent of the outstanding shares, in exchange for the transfer of the operating assets of the Company to a new limited liability company formed by the Majority Shareholders, the transfer of its ownership in the operating subsidiary, Post Tension of Nevada, Inc., to the Majority Shareholders, and the assumption of all of the outstanding debt of the Company by Post Tension of Nevada, Inc. The transfer of the post tension business in exchange for the common stock cancellation was approved unanimously by the Board of Directors of Registrant. No shareholder vote or approval was required under Delaware law to approve the transaction. As a result of the closing of the transactions, Edward Hohman and John Hohman resigned as officers of the Company effective June 30, 2011, and Michael W. Abbott was appointed as Chairman, President and CEO of the Company, effective June 30, 2011. In addition, Edward Hohman and John Hohman resigned as directors of the Company, effective as of July 11, 2011, and Michael W. Abbott and Trip Taylor have been appointed to replace them as Directors, also effective July 11, 2011. Paul Lisak has remained as a Director before and after the transactions. A full-text copy of the Form 8-K is available for free at: http://is.gd/J9Le8i About American Post Henderson, Nev.-based American Post Tension, Inc., provides slab- on-grade post-tensioning products and services. In addition, the Company also provides materials to its customers on a freight-on- board ('FOB') basis so the buyer assumes the responsibility for the shipment and shipping charges of the materials purchased from the Company. As reported by the TCR on April 7, 2011, Moss, Krusick & Associates, LLC, in Winter Park, Florida, expressed substantial doubt about the American Post Tension's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and operating cash outflows. The Company reported a net loss of $1.8 million on $7.0 million of sales for 2010, compared with a net loss of $1.9 million on $7.9 million of sales for 2009. The Company's balance sheet at March 31, 2011, showed $1.73 million in total assets, $3.50 million in total liabilities, all current, and a $1.77 million total stockholders' deficit. APPLIED DNA: Sells 105.26 Million Common Shares for $5 Million -------------------------------------------------------------- Applied DNA Sciences, Inc., on July 15, 2011, closed a private placement of its common stock, par value $0.001 per share. The Company issued and sold 105,263,158 shares of Common Stock at a purchase price of $0.0475 per share to "accredited investors," as defined in regulations promulgated under the Securities Act of 1933, as amended, for gross proceeds of $5,000,000. The Etico Capital division of Halcyon Cabot Partners Ltd., a registered broker dealer firm, acted as the Company's placement agent with respect to the Private Placement. In connection with the Private Placement, the Company paid placement agent commissions and discounts aggregating $265,000. In addition, the placement agent or its designees were issued warrants with a seven-year term to purchase an aggregate of 7,578,948 shares of Common Stock with an exercise price of $0.0475 per share. On July 11, 2011, the Company's Board of Directors approved the terms of employment for each of James A. Hayward, the Company's Chief Executive Officer, and Kurt H. Jensen, the Company's Chief Financial Officer. It is anticipated that new employment agreements will be entered into as soon as practicable reflecting these terms. The terms of Dr. Hayward's employment provide that he will be the Chief Executive Officer of the Company, and will continue to serve on the Board of Directors. The term of employment will be from July 1, 2011, through June 30, 2014, with automatic one-year renewals subject to ninety days' prior notice of non-renewal by either party. Dr. Hayward will receive an initial annual salary of $225,000, subject to annual review. Dr. Hayward's annual salary would be increased to $350,000 per annum after the first quarter in which the Company's revenues exceed $1 million. The Board of Directors, acting in its discretion, may grant annual bonuses to Dr. Hayward. Dr. Hayward will be eligible for a special cash bonus of up to $750,000, 40% of which would be payable if and when annual revenue reaches $6 million and 10% of which would be payable for each $2 million of annual revenue in excess of $6 million. Dr. Hayward will be entitled to certain benefits and perquisites and will be eligible to participate in retirement, welfare and incentive plans available to other employees of the Company. Dr. Hayward was granted options to purchase 40 million shares of the Company's Common Stock at an exercise price per share equal to the average of the bid and asked prices of the Company's Common Stock on the Over The Counter (OTC) Bulletin Board on the date of grant. Dr. Hayward agreed to participate in the Private Placement and purchased 10,526,316 shares of the Company's Common Stock in the Private Placement using $500,000 recently advanced to the Company. The Company has also agreed to issue a one-year senior secured convertible note bearing interest at a rate of 4% per annum in the principal amount of $250,000. The terms of Mr. Jensen's employment provide that he will be the Chief Financial Officer, or Executive Vice President, Chief Operating Officer of the Company, with changes in title and duties as determined from time to time by the Chief Executive Officer. The term of employment will be from July 1, 2011, through June 30, 2014, with automatic one-year renewals subject to ninety days' prior notice of non-renewal by either party. Mr. Jensen will receive an initial annual salary of $225,000, subject to annual review. Mr. Jensen's annual salary would be increased to $250,000 per annum after the first quarter in which the Company's revenues exceed $1 million. The Board of Directors, acting in its discretion, may grant annual bonuses to Mr. Jensen. In addition, Mr. Jensen will be entitled to certain benefits and perquisites and will be eligible to participate in retirement, welfare and incentive plans available to other employees of the Company. Mr. Jensen was granted options to purchase 10 million shares of the Company's Common Stock at an exercise price per share equal to the average of the bid and asked prices of the Company's Common Stock on the Over The Counter (OTC) Bulletin Board on the date of grant. A full-text copy of the filing is available for free at: http://is.gd/QOUEmW About Applied DNA Stony Brook, N.Y.-based Applied DNA Sciences, Inc., is principally devoted to developing DNA embedded biotechnology security solutions in the United States. The Company's balance sheet at March 31, 2011, showed $1.23 million in total assets, $3.36 million in total liabilities, all current, and a $2.12 million total stockholders' deficiency. * * * As reported in the Troubled Company Reporter on Dec. 21, 2010, RBSM LLP, in New York, expressed substantial doubt about Applied DNA Sciences' ability to continue as a going concern, after auditing the Company's financial statements for fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has suffered recurring losses and does not have significant cash or other material assets, nor does it have an established source of revenues sufficient to cover its operations. The Company reported a net loss of $7.91 million on $519,844 of sales for fiscal 2010, compared with net income of $3.94 million on $295,162 of sales for fiscal 2009. ARCTIC GLACIER: In Discussions With Lenders to Amend Credit Pact ---------------------------------------------------------------- Arctic Glacier Income Fund disclosed that its subsidiary, Arctic Glacier Inc., is in discussions with its lenders to amend certain terms of its credit agreements. The discussions principally aim to revise financial covenants with which Arctic Glacier must comply under the terms of its credit agreements, including those governing maximum leverage ratio, interest coverage ratio, fixed charge coverage ratio and minimum EBITDA levels. Arctic Glacier's sales and EBITDA (earnings before interest and finance costs, income taxes, depreciation and amortization) for the second quarter of 2011 have been negatively impacted by poor weather in most of Arctic Glacier's markets. As a result, it is expected that the second quarter results, once they have been finalized, will show the Fund will not be in compliance with certain of its financial covenants for this period and this is, in the absence of amendment to its credit agreements, a default under the terms of the agreements. If the requested amendments to the credit agreements are not made and those defaults are not cured or waived, the lenders under either or both of the credit agreements may elect to accelerate the outstanding amounts owed to them. The credit agreements provide first and second charge security interests on all of Arctic Glacier's assets in favour of those lenders. Indebtedness under the Fund's outstanding convertible debentures is subordinated to amounts owing under these credit agreements. The amendments under consideration, if approved by Arctic Glacier's lenders, will enable the Fund to continue evaluating alternatives as part of the strategic and financing review that is currently in progress. Based upon the Fund's anticipated second quarter financial results, and in the absence of amendments to its credit agreements, the Fund projects that Arctic Glacier will be unable to comply with certain of its covenants in future quarters. Accordingly, additional amendments to Arctic Glacier's credit agreements may be required in the future. The Fund will maintain an ongoing dialogue with its lenders in this regard although there can be no assurance that such amendments will be approved. About Arctic Glacier Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America, primarily under the brand name of Arctic Glacier(R) Premium Ice. Arctic Glacier operates 39 production plants and 48 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail locations. Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 39.0 million trust units outstanding. AURA SYSTEMS: Incurs $2.02 Million Net Loss in May 31 Quarter ------------------------------------------------------------- Aura Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $2.02 million on $951,171 of net revenues for the three months ended May 31, 2011, compared with a net loss of $2.82 million on $587,988 of net revenues for the same period during the prior year. The Company's balance sheet at May 31, 2011, showed $5.21 million in total assets, $16.55 million in total liabilities, and a $11.34 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/EcdFf1 About Aura Systems El Segundo, Calif.-based Aura Systems, Inc., designs, assembles, tests and sells its proprietary and patented Axial Flux induction machine ("AF") known as the AuraGen(R) for industrial and commercial applications and VIPER for military applications. Kabani & Company, Inc., in Los Angeles, Calif., expressed substantial doubt about Aura Systems' ability to continue as a going concern, following the Company's results for the fiscal year ended Feb. 28, 2011. The independent auditors noted that the Company has historically incurred substantial losses from operations and may not have sufficient working capital or outside financing available to meet its planned operating activities over the next twelve months. AVALON OIL: Bernstein & Pinchuk Raises Going Concern Doubt ---------------------------------------------------------- Avalon Oil & Gas, Inc., filed on July 14, 2011, its annual report on Form 10-K for the fiscal year ended March 31, 2011. Bernstein & Pinchuk, LLP, in New York, expressed substantial doubt about Avalon Oil's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses from operations since its inception and has a working capital deficiency. The Company reported a net loss of $1.3 million on $187,913 of oil and gas sales for fiscal 2011, compared with a net loss of $2.3 million on $262,660 of oil and gas sales for fiscal 2010. The Company's balance sheet at March 31, 2011, showed $2.7 million in total assets, $1.7 million in total liabilities, and stockholders' equity of $1.0 million. A copy of the Form 10-K is available at http://is.gd/h7Kcut Minneapolis, Minn-based Avalon Oil & Gas, Inc., Avalon Oil & Gas, Inc., was originally incorporated in Colorado in April 1991 under the name Snow Runner (USA), Inc. The Company is currently in the process of raising funds to acquire oil and gas properties and related oilfield technologies, which the Company plans to develop into commercial applications. AVION POINT: Orlando Apopka Condo Developer in Chapter 11 --------------------------------------------------------- Scott Powers at Orlando Sentinel reports that James Thompson filed reorganization in U.S. Bankruptcy Court in Orlando for Avion Point West LLC and Orlando Country Aviation Services Inc. The report says Mr. Thompson is the developer of Orlando Apopka Airport in northwest Orange County. During the past decade, Mr. Thompson has transformed Orlando Apopka Airport, on U.S. Highway 441 between Plymouth and Zellwood, from an old airfield called Orlando Country Airport into a complex of hangar condominiums whose owners now control the facility. The airport itself and its current owner, the Orlando Apopka Airport Association, are not affected by the court filings and are operating as usual, said Bob Jackson, the airport's manager, according to the report. Longwood, Florida, Avion Point West LLC filed for Chapter 11 bankruptcy protection (Bank. M.D. Fla. Case No. 11-10364) on July 8, 2011. Frank M. Wolff, Esq., at Wolff Hill McFarlin & Herron PA, represents the Debtor. The Debtor estimated assets between $10 million and $50 million, and debts between $1 million and $10 million. BESO LLC: Investors Want Court to Appoint Chapter 11 Trustee ------------------------------------------------------------ Steve Green at Vegas Inc. reports that investors Mali and Ronen Nachum filed an emergency motion in the U.S. Bankruptcy Court in Nevada that a Chapter 11 trustee be appointed to supervise Eva Longoria's Beso restaurant. The investors were alarmed over the closure of Beso's Eve nightclub. According to the report, Beso and Eve, doing business together as Beso LLC, filed for bankruptcy in January. But to date, Ms. Longoria and her fellow investors have not filed a plan of reorganization to deal with the firm's $5.68 million in debt. Beso LLC had not responded to the Nachums' motion for appointment of a trustee. About Beso, LLC Beso, LLC, co-owned by "Desperate Housewives" star Eva Longoria, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-10202) on Jan. 6, 2011. 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. BLACK GAMING: Regulators Recommend Licensing of Mesquite Gaming --------------------------------------------------------------- Chris Sieroty at Las Vegas Review-Journal reports that the state Gaming Control Board recommended the licensing of Mesquite Gaming LLC, a new company formed following the bankruptcy of Randy Black's Mesquite casino properties. According to the report, the company will oversee the Casablanca, Virgin River and Oasis casinos located in Mesquite about 75 miles northeast of Las Vegas. The board's recommendation to allow Mesquite Gaming to operate the casinos will now be considered by the Nevada Gaming Commission on July 28. Mr. Black, who will be chief operations officer of the new company and hold a 10% ownership stake, said the bottom line was once their bankruptcy plan is approved, Mesquite Gaming will be reorganized and recapitalized. Under the Company's plans, investment company Newport Global Advisors LP of Woodland, Texas, would hold a 40% stake, and Anthony Toti, CEO of Mesquite Gaming, would own 25%. Under the terms of Black Gaming's bankruptcy filing, a $15 million loan held by Wells Fargo was paid off, while the company's total debt was reduced from $235 million to $62.5 million. According to the report, Mesquite Gaming also will have access to a $10 million line of credit from Nevada State Bank once regulators approve the bankruptcy plan, said Greg Garman, an attorney with Gordon Silver of Las Vegas. The reorganization also reduced the company's debt service from $22 million to $5.3 million annually. About Black Gaming Headquartered in Las Vegas, Nevada, Black Gaming, LLC, is a holding company and is an owner and operator of three gaming entertainment properties located in Mesquite, Nevada. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-13301) on March 1, 2010. Gregory E. Garman, Esq., and Talitha B. Gray, Esq., at Gordon & Silver, Ltd., assist the Company in its restructuring effort. Kurtzman Carson Consultants is the Company's claims and notice agent. In its petition, the Company estimated $10 million to $50 million in assets and $100 million to $500 million in debts. The Company's affiliates -- B&BB, Inc.; R. Black, Inc.; Casablanca Resorts, LLC; Casablanca Resorts, LLC; Oasis Interval Ownership, LLC; Oasis Interval Management, LLC; Oasis Recreational Properties, Inc.; RBG, LLC; and Virgin River Casino Corporation -- filed separate Chapter 11 petitions. BLOCKBUSTER INC: Posts $268 Million Net Loss in Yr. Ended Jan. 2 ---------------------------------------------------------------- Blockbuster Inc. filed on Jan. 13, 2011, its annual report on Form 10-K for the fiscal year ended Jan. 2, 2011. The Company reported a net loss of $268.0 million on $3.241 billion of revenues for the fiscal year 2010, compared with a net loss of $558.2 million on $4.051 billion of revenues for fiscal year 2009. Revenues decreased $810.0 million as a result of declining same- store comparables, lower by-mail subscribers and 17.4% fewer company operated stores offset by a favorable foreign currency exchange impact. Loss from continuing operations before reorganization items and income taxes decreased $277.2 million to $224.6 million in fiscal year 2010. The Company recognized charges of $9.7 million for reorganization items as a result of its filing for bankruptcy protection under Chapter 11. These charges were primarily related to professional fees and DIP Credit Agreement financing fees, partially offset by expense reductions related to rejections of store leases. Loss from discontinued operations, net of tax was $26.3 million for fiscal year 2010 compared to $44.6 million for fiscal year 2009). Discontinued operations for fiscal 2010 include a $19.2 million loss on the disposal of its Argentina operations. The Company's balance sheet at Jan. 2, 2011, showed $1.184 billion in total assets, $1.736 billion in total liabilities, and stockholders' of $552.0 million. A copy of the Form 10-K is available at http://is.gd/fujnHE About Blockbuster Inc. Blockbuster Inc., the movie rental chain with a library of more than 125,000 titles, along with 12 U.S. affiliates, initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan (Bankr. S.D.N.Y. Case No. 10-14997) on Sept. 23, 2010. It disclosed assets of $1 billion and debts of $1.4 billion at the time of the filing. Martin A. Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the U.S. Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. The Official Committee of Unsecured Creditors retained Cooley LLP as its counsel. In April 2011, Blockbuster conducted a bankruptcy court-sanctioned auction for all the assets. Dish Network Corp. won with an offer having a gross value of $320 million. As a result of the asset sale and Chapter 11 cases, the Company is not currently conducting any business operations. The Company expects to file a plan of liquidation with the Bankruptcy Court and anticipates that the Bankruptcy Court will approve the appointment of a Chapter 7 trustee to oversee liquidation of the Company within the next several months. Since the asset sale proceeds are significantly less than the Company's pre-petition liabilities, holders of secured and unsecured debt will receive substantially less than payment in full for their claims and its stockholders will receive no value for their shares of the Company's common and preferred stock. BORDERS GROUP: No Bids to Keep Afloat, To Liquidate Assets ---------------------------------------------------------- Borders Group reported that, in accordance with the terms of its financing agreement, it will submit to the Bankruptcy Court for approval the previously-announced proposal from Hilco and Gordon Brothers to purchase the store assets of the business and administer the liquidation process. Borders said that, in the absence of a formal proposal from a going concern bidder, it did not require an auction prior to presenting the proposal to the Court at a scheduled hearing on Thursday, July 21, 2011. "Following the best efforts of all parties, we are saddened by this development," said Borders Group President Mike Edwards. "We were all working hard towards a different outcome, but the headwinds we have been facing for quite some time, including the rapidly changing book industry, eReader revolution, and turbulent economy, have brought us to where we are now," he added. "For decades, Borders stores have been destinations within our communities, places where people have sought knowledge, entertainment, and enlightenment and connected with others who share their passion. Everyone at Borders has helped millions of people discover new books, music, and movies, and we all take pride in the role Borders has played in our customers' lives," Edwards continued, "I extend a heartfelt thanks to all of our dedicated employees and our loyal customers." Borders currently operates 399 stores and employs approximately 10,700 employees. Subject to the Court's approval, under the proposal, liquidation is expected to commence for some stores and facilities as soon as Friday, July 22, with a phased rollout of the program which is expected to conclude by the end of September. Borders intends to liquidate under Chapter 11 of the Bankruptcy Code and, as a result, Borders expects to be able to pay vendors in the ordinary course for all expenses incurred during the bankruptcy cases. Last Minute Bid? Borders Group Inc. inched closer to liquidation Sunday after a bidding deadline passed without offers that would keep the U.S.'s second-largest bookstore chain in business, said people familiar with the matter. Bids for Borders were due at 5:00 p.m. EDT Sunday ahead of a bankruptcy-court auction scheduled for Tuesday. Still, Borders is likely to entertain offers right up until the scheduled auction in the hopes a white knight will emerge to save the chain. According to The Wall Street Journal's Mike Spector and Jeffrey A. Trachtenberg, people familiar with the matter said that by late Sunday Borders was in discussions with Books-A-Million Inc., a bookstore chain based in Birmingham, Ala., on some kind of potential deal. Books-A-Million's 2011 annual report said it operates 231 stores in 23 states and the District of Columbia and sells on the Internet. The Journal separately interviewed Borders President Mike Edwards and bidder Jahm Najafi on Sunday. Mr. Edwards said Borders had received some inquiries over the weekend. "Hopefully we'll see a positive outcome," he said at that time. Mr. Najafi told the Journal his company wouldn't bid again for Borders. "We have reluctantly made a decision not to participate in the auction," said Mr. Najafi, who heads Phoenix-based Najafi Cos. The Journal recounts Mr. Najafi had been willing to relinquish a clause in his offer allowing him to liquidate Borders to appease creditors. But in exchange, he wanted large publishers to commit to shipping merchandise to Borders on normal terms that allowed bills to be paid later instead of right away. Mr. Najafi wanted those terms so he would have a level playing field with rivals such as Barnes & Noble and Amazon. At least one publisher wouldn't budge, and Mr. Najafi declined to alter his terms, causing the deal to fall. The Journal also reports that Gordon Brothers Group named a new chief executive, Gary Talarico. Mr. Talarico said in an email that he wouldn't rule out making a run at Borders's intellectual property -- its brand name, website, and customer lists, among other things. In a separate report, Messrs. Spector and Trachtenberg relate that Borders' demise could speed the decline in sales of hardcover and paperback books as consumers increasingly turn to downloading electronic books or having physical books mailed to their doorsteps; and may also make it more difficult for new writers to be discovered. "When you lose literally miles of bookshelves, it's going to have an impact," said David Young, chief executive of Lagardere SCA's Hachette Book Group, according to the Journal. "I hope other retailers will now step up and make offers for what they consider to be the prime sites," Mr. Young said. "It's a tragedy Borders didn't make it through." "The liquidation of Borders is an irreplaceable loss of a big part of the book-discovery ecosystem," said Michael Norris, a senior analyst at Simba Information, a unit of MarketResearch.com "Thousands of people whose job consisted of talking up and selling books will eventually being doing something else, and that's bad for authors, agents, and everyone associated with the value chain in books." Borders owed Hachette Book Group $36.9 million at the time of its bankruptcy filing. According to the Journal, Mr. Norris said other booksellers, including Barnes & Noble Inc. and Amazon.com Inc., will go after the shoppers who formerly considered themselves Borders customers. "They won't be able to pick up everyone," he added. "If shopping at your local Borders is part of your weekly routine, and then Borders is gone, you may end up doing something other than buying books." About Borders Group Borders Group operates book, music and movie superstores and mall- based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e-commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. Lowenstein Sandler represents the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group has sought approval to sell merchandise and owned furniture, fixtures and equipment located at approximately 200 of their stores and, at Borders' option, up to 75 of 136 potential other stores, through store closing sales. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000) BORDERS GROUP: DJM Realty to Dispose All Real Estate in U.S. ------------------------------------------------------------ DJM Realty, a Gordon Brothers Group company, has been retained to exclusively manage the disposition of all remaining Borders Group and Waldenbooks real estate in the United States. Borders Group, Inc., a leading specialty retailer of books as well as other educational and entertainment items operated over 900 stores in the US prior to its Chapter 11 bankruptcy protection filing on February 16, 2011. "This group of Borders' stores has generated very strong interest from retailers. With a lack of new real estate development and restrictive barriers of entry in several key markets, surplus real estate like Borders becomes a very good opportunity for a number of growing retailers looking to open for business during the next 4-12 months. It is not every day a portfolio becomes available which includes premier real estate sites in northern and southern California, the cities and surrounding suburbs of New York, Illinois, Texas, the north east corridor and mid-Atlantic states," said Andy Graiser, Co-President of DJM Realty. The 259 remaining leases that are available for assignment in this bankruptcy disposition range from 10,000 - 40,218 square feet and are available in the following locations: Arizona (3), California (31), Colorado (7), Connecticut (3), Delaware (2), Florida (7), Georgia (7), Hawaii (3), Iowa (3), Idaho (2), Illinois (16), Indiana (4), Kansas (2), Kentucky (3), Louisiana (1), Massachusetts (8), Maryland (8), Maine (3), Michigan (13), Minnesota (3), Mississippi (1), Missouri (5), Montana (2), North Carolina (4), Nebraska (3), New Hampshire (3), New Jersey (8), New Mexico (3), Nevada (6), New York (18), Ohio (10), Oklahoma (1), Oregon (6), Pennsylvania (14), Puerto Rico (1), Rhode Island (2), South Dakota (1), Tennessee (5), Texas (12), Utah (1), Virginia (10), Vermont (1), Washington (9), Wisconsin (2) and West Virginia (2). About Borders Group Borders Group operates book, music and movie superstores and mall- based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e-commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. Lowenstein Sandler represents the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group has sought approval to sell merchandise and owned furniture, fixtures and equipment located at approximately 200 of their stores and, at Borders' option, up to 75 of 136 potential other stores, through store closing sales. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000) BORDERS GROUP: Creditors Committee Opposes Sale of Mortgage Loans ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in Borders Group's bankruptcy cases opposes the Debtors' motion to sell their interest in a certain mortgage loan and note and related participation agreement on the grounds that the payment of approximately $2.9 million for the Debtors' interest in the Mortgage Note fails to provide sufficient value to the Debtors. The Mortgage Note is secured by a 36,000 sq. ft. "box store" property located in Torrance, California. The Debtors lease the Property from the Landlord. Given their status as tenant and mortgager of the Torrance Property, the Debtors pay rent by way of setoff or a credit against the obligations under the Mortgage Note. The Debtors now seek to sell their interest in the Mortgage Note for an immediate cash payment of $2,773,374 on or before July 31, 2011, and an additional $163,751.67 payable on October 31, 2011. The proposed purchaser is an affiliate of Kin Properties, a large national owner of real estate. The Debtors are also seeking to enter into a participation agreement pursuant to which the Debtors would have the right to share in a portion of the future debt service payments due under the Mortgage Note. "It appears that rather than attempting to fully maximize value, the Debtors entered into the proposed transaction to monetize their interest in the Mortgage Note for the purpose of paying down the Revolver portion of the DIP Loan," Paul Kizel, Esq., at Lowenstein Sandler PC, in New York, contends, on behalf of the Creditors Committee. Upon information and belief, the market value of the Torrance Property is approximately $5 million, according to Mr. Kizel. Based on the substantial value of the Torrance Property, he points out, the most effective means of maximizing the value of the Debtors' interest in the Mortgage Note is to reject the Torrance Lease, thereby terminating Borders' obligations to pay rent and, if the Landlord fails to make the payments under the Mortgage Note, commence an action to collect on the Mortgage Note. Although the Torrance Property may not have sufficient value to satisfy the full amount of the Mortgage Note, it has value far in excess of the $2.9 million that the Debtors are willing to accept for the purchase of the Mortgage Note, the Creditors Committee argues. While accepting the $2.9 million now may be in the best interest of the DIP Lenders who are merely interested in the repayment of the DIP Loan as quickly as possible, the proposed sale is not in the best interests of unsecured creditors or the Debtors' estates as a whole, Mr. Kizel says. In this light, the Creditors Committee asks the Court to deny the Debtors' Motion to Sell. About Borders Group Borders Group operates book, music and movie superstores and mall- based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e-commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. Lowenstein Sandler represents the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group has sought approval to sell merchandise and owned furniture, fixtures and equipment located at approximately 200 of their stores and, at Borders' option, up to 75 of 136 potential other stores, through store closing sales. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000) BORDERS GROUP: Committee Opposes Harrisburg Termination Deal ------------------------------------------------------------ The Official Committee of Unsecured Creditors in Borders Group Inc.'s bankruptcy cases opposes the Borders Group's motion to approve a settlement agreement related to the termination of a lease of a warehouse facility near Harrisburg, Pennsylvania, on the grounds that (i) the payment of the $375,000 termination fee and (ii) waiver of claims falls far short of providing sufficient value in exchange for the Debtors' waiver of their $1.6 million claim against the landlord. Representing the Creditors Committee, Paul Kizel, Esq., at Lowenstein Sandler PC, in New York, contends, that based on the substantial value of the Harrisburg Property, it is clear that the most effective means of maximizing the value of the Debtors' interest in the Harrisburg Property is not to accept $375,000 and hand the property back to the landlord. Entry into the proposed lease termination agreement, he maintains, is not a reasonable exercise of the Debtors' business judgment. Rather, the Debtors should be directed to immediately reject the Lease thereby terminating Borders' payment obligations and, if the Landlord defaults under the terms of the Mortgage Note, commence appropriate proceedings to collect the full amount of the note. Given that the $1.6 million due under the Harrisburg Note is secured by real estate having an appraised market value of in excess of $3 million, it is highly likely that the Debtors would recover all or substantially all of the debt owed to it by the Landlord, Mr. Kizel avers. In this light, the Creditors Committee asks the Court to deny the Debtors' Motion. About Borders Group Borders Group operates book, music and movie superstores and mall- based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e-commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. Lowenstein Sandler represents the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group has sought approval to sell merchandise and owned furniture, fixtures and equipment located at approximately 200 of their stores and, at Borders' option, up to 75 of 136 potential other stores, through store closing sales. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000) BORDERS GROUP: Opposes 49 Waukegan Admin. Claims Application ------------------------------------------------------------ Borders Group Inc. filed with the bankruptcy court an objection, claiming that the applications for administrative expense claims payment filed by 49 Waukegan Road Limited Partnership, Eliason Combination Fund LLC, and Books and Music LLC are premature and an inappropriate attempt to recover on their claims ahead of other similarly situated creditors. The Applications seek the allowance and immediate payment of estimated, contingent and unbilled amounts relating to real estate taxes that allegedly accrued postpetition and pre- rejection. While the Debtors do not dispute that the amounts alleged in the Claims may become due at a future date, the Debtors currently object to the Creditors' requests for payment until the amounts have actually been billed to the Creditors by the respective taxing authorities, following which the Creditors may invoice such specific amounts in the ordinary course and the Debtors can analyze the merits of the requests Moreover, none of the Creditors have demonstrated why the Court should exercise its discretion to direct payment now to the Creditors on their Claims, says Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York. Furthermore, he relates, none of the Creditors have attempted to address why the Debtors will not be prejudiced if payment is required or what hardship will befall the Creditors if payment is not immediately ordered. Accordingly, the Debtors ask the Court to deny approval of the Claim Payment Applications. About Borders Group Borders Group operates book, music and movie superstores and mall- based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e-commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. Lowenstein Sandler represents the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group has sought approval to sell merchandise and owned furniture, fixtures and equipment located at approximately 200 of their stores and, at Borders' option, up to 75 of 136 potential other stores, through store closing sales. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000) BRUNSWICK CORP: Moody's Assigns 'B1' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service upgraded Brunswick Corporation's Corporate Family Rating to B1 from B2 due to expectations that its earnings will continue to improve over the near to mid-term amid stabilizing demand trends and a significantly lower cost structure. The following ratings were also upgraded: Probability- of-Default Rating to B1 from B2; secured notes to Ba2 from Ba3 and unsecured notes to B3 from Caa1. The speculative grade liquidity rating was affirmed at SGL-1. The outlook is stable. "We believe that the combination of stable boating participation trends, the increasing age of licensed boats and fewer used boats for sale should help drive demand for new boats in the near to mid-term," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service. "Brunswick's significantly improved cost structure, health of its dealership network and stabilizing demand trends have led to much better earnings and credit metrics," he added. RATING RATIONALE Brunswick's B1 Corporate Family Rating reflects the highly discretionary nature of pleasure boats and marine related products, which makes Brunswick's revenues and earnings highly sensitive to economic weakness. This was demonstrated during the economic downturn when the company suffered a dramatic revenue and earnings decline The ratings also reflect the company's high leverage and weak interest coverage. Ratings also incorporate Moody's expectation of additional operating improvements in the near to mid-term as the company continues to adjust its business model to address the weak, but stabilizing, marine industry. Moody's expects credit metrics to improve from their current levels with financial leverage (debt/Ebitda) approaching 4 times in the next 12 to 18 months. A critical component of the B1 Corporate Family Rating is Brunswick's strong liquidity profile. Other factors supporting the rating are its higher-end consumer base, good operating performance of its dealership network, stable parts and accessory business, stable Bowling & Biiliards and Fitness businesses, stable boating participation trends, seasoned management team and its joint venture agreement with General Electric Capital Corporation for its floorplan financing. The stable outlook reflects Moody's expectation that demand trends will not significantly deteriorate and that the company will continue to maintain or possibly expand on its cost efficiency efforts. Moody's anticipates modest improvements in overall marine retail demand as well as operating margin and credit metric improvements. These factors are reflected in the stable outlook as is Moody's assumption of Brunswick's maintainance of a strong liquidity profile. In order for an upgrade to be considered, total marine industry units need to stay at around 140,000 units or more and demand for fiberglass boats needs to show further signs of improvement. If industry units fall below this amount, the rating could still be upgraded over the longer term assuming Brunswick's cost rationalization efforts reap the benefits Moody's expects and Brunswick maintains its strong liquidity profile. Because of Brunswick's sensitivity to macroeconomic conditions, its credit metrics need to be stronger than other similarly-rated consumer durable companies. Credit metrics necessary for an upgrade to be considered would be financial leverage (debt/Ebitda) approaching 3.5 times (currently 4.8 times), mid to high single digit operating (Ebita/revenue) margins (currently around 5.5%), interest coverage (EBITA/interest) approaching 2 times and retained cash flow/net debt around 20% (presently at about 10%). If the company's liquidity profile were to deteriorate, the long term rating and liquidity rating could be downgraded. Erosion in the operating performance of the company's dealership network could also trigger a downgrade as could a decrease in demand with North American industry units falling meaningfully below 120,000 (currently around 140,000). Credit metrics which could prompt a downgrade would include debt/EBITDA approaching 5 times, low single digit operating margins, interest coverage approaching 1.25 times or low double digit retained cash flow/net debt percentages. The following ratings were upgraded: Corporate Family Rating to B1 from B2; Probability of Default Rating to B1 from B2; $575 million senior unsecured notes due 2013-2027 ($423 million outstanding) to B3 (LGD 6, 90%) from Caa1 (LGD 5, 88%); $350 million senior secured notes due 2016 to Ba2 (LGD 2, 27%) from Ba3 (LGD 2, 29%); The following rating was affirmed: Speculative grade liquidity rating at SGL-1 For additional information, please refer to Moody's Credit Opinion of Brunswick published on Moodys.com. The principal methodology used in rating Brunswick was the Global Consumer Durables rating methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Brunswick is headquartered in Lake Forest, Illinois. The company manufactures marine engines, pleasure boats, bowling capital equipment and fitness equipment, and operates retail bowling centers. Sales for the twelve months ended April 2011 approximated $3.5 billion. CANO PETROLEUM: Names Former NGP Head J. Homier as New CFO ---------------------------------------------------------- Cano Petroleum, Inc., on July 11, 2011, appointed John H. Homier as Chief Financial Officer and Secretary and entered into a Consulting Agreement dated effective July 11, 2011, with Mr. Homier, pursuant to which Mr. Homier will serve as Chief Financial Officer and Secretary of Cano and provide other consulting services to Cano in exchange for a fee of $30,000 per month, paid monthly in advance, and advance payment of estimated expenses that Mr. Homier will incur in performing those services. The term of the Consulting Agreement ends on June 30, 2012, and will be automatically extended for successive one-year terms, unless terminated by (a) the death or disability of Mr. Homier or (b) by Cano or Mr. Homier for any reason upon written notice to the other party. Mr. Homier, age 59, served as the President and Chief Executive Officer of NGP Capital Resources from July 2004 to February 2011. A full-text copy of the Consulting Agreement is available for free at http://is.gd/upupPE About Cano Petroleum Cano Petroleum, Inc., is an independent Texas-based energy producer with properties in the mid-continent region of the United States. Cano's primary focus is on increasing domestic production from proven fields using enhanced recovery methods. Cano trades on the NYSE Amex Stock Exchange under the ticker symbol CFW. The Company's balance sheet at March 31, 2011, showed $257.88 million in total assets, $137.10 million in total liabilities, and $120.78 million in total stockholders' equity. The Company reported a net loss of $11.5 million on $22.8 million of revenue for fiscal year ended June 30, 2010, compared with a net loss of $231,000 on $23.4 million of revenue for fiscal 2009. The Company reported a net loss of $12.53 million on $18.62 million of total operating revenue for the nine months ended March 31, 2011, compared with a net loss of $11.77 million on $16.36 million of total operating revenue for the same period a year ago. As reported by the Troubled Company Reporter on Sept. 28, 2010, the Company said if it is unable to successfully execute one of its strategic alternatives, restructure its existing indebtedness, obtain further waivers or forbearance from its existing lenders or otherwise raise significant additional capital, it is unlikely that it will be able to meet its obligations as they become due and to continue as a going concern. As a result, the Company will likely file for bankruptcy or seek similar protection. Moreover, it is possible that the Company's creditors may seek to initiate involuntary bankruptcy proceedings against it or against one or more of its subsidiaries, which would force it to make a defensive voluntary filing of its own. CAPISTRANO TERRACE: Failed to Sell Mobile-Home Park Due to Lawsuit ------------------------------------------------------------------ Brittany Levine at the Orange County Register reports that Capistrano Terrace Ltd.,, which has filed for Chapter 11 bankruptcy protection, owns the mobile-home park east of I-5 along Valle Road, in California. According to Ray Poulter, a spokesman for Capistrano Terrace, the Company has seen mounting liabilities caused by geological issues, deteriorating infrastructure, lawsuits by tenants over park issues, and failure of insurers to handle resolution of those claims. The report says Mr. Poulter related that Capistrano Terrace's bankruptcy comes after its president, Advanced Real Estate Services Vice President Richard Julian, severed ties with the limited partnership. Capistrano Terrace is a limited partnership of Advanced Real Estate Services. The Orange County Register report says park owners have been trying to close the park and residents have been trying to buy it for years. Capistrano Terrace Ltd. originally bought the park for $3.5 million. A 2007 resident-funded assessment valued the park at $7 million. In 2008, the park and residents agreed to an $11 million price tag. However, the failure-to-maintain lawsuit complicated the sale. Ms. Levine notes that the most recent attempt to close the park began in 2006. Capistrano Terrace Ltd. has paid for two relocation reports, the most recent of which cost about $70,000 and values the mobile homes in a range of $28,000 to $154,000. Capistrano Terrace Ltd. filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-19767) on July 12, 2011. D. Edward Hays, Esq., at Marshack Hays LLP, in Irvine, California, serves as counsel to the Debtor. The Debtor estimated assets of $1 million to $10 million and debts of up to $50 million. A case summary for Capistrano Terrace is in the July 18, 2011 edition of the Troubled Company Reporter. CARBON ENERGY: Files List of Six Largest Unsecured Creditors ------------------------------------------------------------ Carbon Energy Holdings, LLC, filed with the Bankruptcy Court a list of its six largest unsecured creditors: Creditor Nature of Claim Claim Amount -------- --------------- ------------ Weed & Co. LLP Fees for legal $50,000 Attn: Rick Weed, Esq. services 4695 MacArthur Ct., Suite 1430 Newport Beach, CA 92660 Tel: 949-475-9086 Skelly and Loy, Inc. Fees for $38,000 Attn: Accounts Receivable engineering 2601 North Front St. services Harrisburg, PA 17110 Tel: 800-892-3652 Davis Graham & Stubbs LLP Fees for legal $35,876 Attn: Les Woodward, Esq. services 1550 Seventeenth St., Suite 500 Denver, CO 80202 Tel: 303-892-9400 Southside Law Center Fees for legal $13,949 services Ronald R. Chadwick P.C. Fees for $5,820 Accounting services X-Clearing Corp. Fees for transfer $2,615 agent services About Carbon Energy Based in Wickenburg, Arizona, Carbon Energy Holdings, LLC, and Carbon Energy Reserve, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case Nos. 11-52099 and 11-52101) on June 28, 2011. Judge Bruce T. Beesley presides over the cases. Bart K. Larsen, Esq., at Kolesar & Leatham, Chtd., serves as the Debtors' bankruptcy counsel. In their petitions, both Debtors estimated assets of $10 million to $50 million, and debts of $1 million to $10 million. The petitions were signed by Gordon F. Lee, president. CARBON ENERGY: Sec. 341 Creditors' Meeting Slated for Aug. 1 ------------------------------------------------------------ The United States Trustee for Region 17 in Nevada will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy cases of Carbon Energy Holdings, LLC, and Carbon Energy Reserve, Inc., on Aug. 1, 2011, at 3:00 p.m. Young Bldg., Rm 3024. The meeting was originally set for 2:00 p.m. that same day. The last day to file proofs of claim is Oct. 31, 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 Carbon Energy Based in Wickenburg, Arizona, Carbon Energy Holdings, LLC, and Carbon Energy Reserve, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case Nos. 11-52099 and 11-52101) on June 28, 2011. Judge Bruce T. Beesley presides over the cases. Bart K. Larsen, Esq., at Kolesar & Leatham, Chtd., serves as the Debtors' bankruptcy counsel. In their petitions, both Debtors estimated assets of $10 million to $50 million, and debts of $1 million to $10 million. The petitions were signed by Gordon F. Lee, president. CARBON ENERGY: Hearing on Joint Administration Set for Aug. 5 ------------------------------------------------------------- The Bankruptcy Court will convene a hearing Aug. 5, 2011, at 10:00 a.m. at BTB RN-Courtroom 2, Young Bldg., on the request to consolidate the Chapter 11 cases of Carbon Energy Holdings, LLC, and Carbon Energy Reserve, Inc., for procedural purposes. The lead case is Case No. 11-52099. Based in Wickenburg, Arizona, Carbon Energy Holdings, LLC, and Carbon Energy Reserve, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case Nos. 11-52099 and 11-52101) on June 28, 2011. Judge Bruce T. Beesley presides over the cases. Bart K. Larsen, Esq., at Kolesar & Leatham, Chtd., serves as the Debtors' bankruptcy counsel. In their petitions, both Debtors estimated assets of $10 million to $50 million, and debts of $1 million to $10 million. The petitions were signed by Gordon F. Lee, president. CARGO TRANSPORTATION: Terms of Proposed Reorganization Plan ----------------------------------------------------------- As reported in yesterday's Troubled Company Reporter, Cargo Transportation Services, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida a request to extend its exclusive period to solicit acceptances of its proposed Chapter 11 plan. In the extension request, the Debtor needs additional time to solicit acceptances of its Plan because the Debtor: i) is awaiting court approval of the settlement agreement with Old Dominion; ii) is still negotiating with the Committee as to the amount and timing of payments to Class 7; iii) has not finalized negotiations with Comerica Bank; and iv) is continuing to investigate claims of creditors who were not scheduled and is assessing whether publication notice of an extended claims bar date is necessary. Cargo Transportation filed its proposed plan and disclosure statement in May this year. The Debtor anticipates that its continuing operations and payments to be made under the Plan will be funded by (1) Cash on hand on the Effective Date, (2) the Exit Funding, or (3) Cash generated and/or collected by the Reorganized Debtor in the ordinary course of business on and after the Effective Date. The amount of the Exit Funding is anticipated to be at least $1,000,000-$1,500,000 from a third party funder plus the potential Exit Capital Contribution of $1,500,000, if available. Pursuant to the Plan, the Holder of the Class 2 Secured Claim of Comerica Bank, estimated at $6,576,289.40, will receive the Comerica Note from the Reorganized Debtor which will provide for deferred Cash payments (i) of (a) interest only determined at the Comerica Interest Rate for the first 18 months and (b) monthly payments of principal and interest thereafter based on a 15-year amortization with a balloon payment due 84 months for the Effective Date. Class 7 General Unsecured Claims, estimated at $3,600,000, will receive Cash equal to 50% payment of the amount of their Allowed Claim payable over a 5-year period. In the event that the total Exit Funding Available exceeds $3,000,000, with at least $1,500,000 of the Exit Funding being derived from Exit Capital Contributions, the Debtor will provide notice of the opportunity for the Holders of Allowed Class 7 Unsecured Claims to make an Unsecured Creditor Election, wherein any Holder of a Class 7 General Unsecured Claim that makes a timely election will receive payment of 20% of their Allowed Claim within 6 months from the Effective Date. Class 8 Equity Interests will be canceled and reissued to the existing shareholders of the Debtor or their designee and on account of the Exit Capital Contribution. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/cargotransportation.DS.pdf 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. CATHOLIC CHURCH: Wilm. Confirmation Hearing to Continue on July 28 ------------------------------------------------------------------ Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware refused to confirm the Catholic Diocese of Wilmington, Inc.'s Chapter 11 Plan of Reorganization, The Associated Press reports. At the confirmation hearing held July 14, 2011, Judge Sontchi expressed his opposition to the possibility of what the church calls "sustenance" payments from the Diocese to known pedophile priests, the report says. Judge Sontchi has said that in asking him to approve a plan that impairs potential recoveries for victims of priest sex abuse while not impairing the abusers themselves, the Diocese had not proposed a plan in good faith, as required under the Bankruptcy Code. "I'm not going to confirm a plan unless there is some prohibition on that because I don't think debtor would be operating in good faith," Judge Sontchi is quoted by AP as saying. He added that the Diocese's lack of good faith also was demonstrated in its disparate treatment of two law firms representing abuse survivors because of prior court filings in the case that its attorneys found offensive. According to AP, the Diocese refused to include the two law firms among the parties that would be exculpated from malpractice or other claims related to their actions in the bankruptcy case unless they agreed to withdraw the offensive pleadings. "Either exculpate everybody, or nobody gets exculpated. It's your decision," Judge Sontchi has told the Diocese's attorneys. Although the Diocese and its counsel told the Court they would need three weeks to determine how to proceed with the matter, Judge Sontchi ordered that the confirmation hearing resume in two weeks -- on July 28, 2011 -- during which time all parties must give him a status update. At that time, he said, the only plan he will consider moving forward is the $77.4 million settlement and not an alternate "cram down" plan that the Diocese drafted if the settlement plan failed, according to Sean O'Sullivan of delawareonline.com. The Diocese's Plan is based on the payment of settlements aggregating $77.4 million to 150 alleged victims of sex abuse in exchange for the Diocese's, its parishes' and affiliated entities' release from legal claims related to the church sex abuse scandal. Sustenance Issue The Court has rejected the Diocese's arguments that while the likelihood of sustenance payments was remote, it was a matter of canon law and outside the Court's civil jurisdiction, AP reports. Judge Sontchi noted that the Diocese was a civil entity that filed for bankruptcy protection in a secular court and was seeking the civil remedy of having its reorganization plan confirmed. "I think this issue of allowing future financial payments, however they are characterized, to the priests who have been acknowledged by the diocese to be abusers is an issue not just of economics and not just of technicalities of the bankruptcy code," the judge added. "I think it goes to the very heart of this case." As previously reported, Bishop Malooly said in his testimony that the Diocese tried to be fair to all survivors and victims of priest sex abuse, and that the Diocese won't be providing pension payments or other benefits to known child abusers. Bishop Malooly also told the Court that he must reserve the right to provide charity to abuser priests as a part of the Plan because church law requires him to provide "sustenance" to the men as long as they have not been kicked out of the priesthood by the pope. On behalf of the Diocese, Patrick A. Jackson, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, said at the July 14 Hearing that the issue of sustenance payments had been blown out of proportion by attorneys for the abuse victims, an observation that drew a rebuke from Judge Sontchi, AP said. "I would take issue that it got blown out of proportion," said the judge, prompting a later apology by Mr. Jackson, who said his remark was based on the amount of money in question. "We get it. The bishop gets it," Mr. Jackson said, according to AP, referring to the outrage felt by abuse survivors about their tormentors possibly getting financial help from the Diocese. Prior to the July 14 Hearing and at the direction of the Court, Mr. Jackson submitted a letter brief to address the canonical obligation of a Roman Catholic diocesan bishop to provide sustenance or charity to clergy. He explains that the immediate source of a bishop's obligation to see to it that clergy attached to his diocese receive the remuneration and sustenance to which they are entitled is Canon 281 of the 1983 Code. He notes that remuneration as referred to in the canon is the financial and other kinds of support due to clergy as a result of the ministerial work they do when actively engaged in ecclesial ministry -- similar to what would ordinarily be thought of as a person's "salary." In response to the letter, Stephen J. Neuberger, Esq., at The Neuberger Firm P.A., in Wilmington, Delaware, contends that Mr. Jackson is admittedly unqualified to render the expert opinions he offers in his letter. Mr. Neuberger also argues that Mr. Jackson's letter flatly contradicts the testimony of Bishop Malooly regarding obligations to provide sustenance and charity to priests, who have been laicized and dismissed from the clerical state. Diocese Needs $10 Million Loan Monsignor Joseph P. Corsini, the Diocese's chief financial officer, told Judge Sontchi at the July 14 Hearing that the Diocese needs to borrow nearly $10 million to make its bankruptcy reorganization plan work, according to an AP report. Mr. Corsini, however, noted that the Diocese has yet to reach a final agreement with a commercial lender. During the previous confirmation hearing held July 8, 2011, Judge Sontchi called attorneys into his chambers for a private discussion after questioning Mr. Corsini about how the Diocese planned to make promised payments to its lay employee pension fund and cover an estimated $5 million in fees for attorneys and other professionals in the bankruptcy case, including an existing unpaid balance of more than $929,000. Mr. Corsini had said the Diocese planned to borrow and would use money from existing sources and the sale or potential sale of property to meet the pension payments. The AP report noted that attorneys for the Diocese and its non- debtor Catholic entities did not reveal which real estate holdings of the church would be put up as collateral for the 25-year-loan, which carries a variable interest rate starting at 4.5%. An attorney representing the Catholic Diocese Foundation and other non-debtor Catholic entities told Judge Sontchi that he did not want the property that would be used to secure the loan identified in court. After meeting privately with attorneys, Judge Sontchi resumed the hearing to consider approval of the Diocese's reorganization plan with no further mention of the proposed loan collateral, AP says. Mr. Corsini has assured the Court that the Diocese has a "willing" lender, but that the lender wants the Diocese's external auditor to finish a review, which may take another week or two to complete, before entering into a formal loan agreement. If the loan arrangement falls through, the Diocese has a backup plan involving a one-year $8.4 million bridge loan at 6% interest that has been arranged with unnamed non-debtor Catholic entities, which loan could be extended another five years with a 2% extension fee, he revealed. Court Sides with Abuse Survivors Committee As previously reported, attorneys representing the majority of abuse survivors in an ad hoc committee have accused the Diocese of trying to renege on certain settlement terms. The ad hoc committee claimed that a settlement term sheet requires the Diocese to pay $77.4 million into a trust within 60 days of confirmation of the reorganization plan. The Diocese argued that the Catholic Diocese Foundation and insurers would not contribute the money needed to fund the plan until a final order had been entered and any possibility of an appeal had been eliminated. Judge Sontchi ruled at the July 14 Hearing in favor of the ad hoc committee, saying the settlement needs to be fully funded within 60 days of confirmation, and that only upon full funding will the plan contributors get the legal releases they demand, reports AP. "It's a two-way street," said the judge, noting that if the non- debtor entities aren't willing to fund the Diocese's reorganization plan on those terms, then the Plan is not feasible and cannot be confirmed. Attorneys for the insurers and the non-debtor entities told Judge Sontchi they would need time to consult before deciding how to proceed, relates the report. Tentative Agreement with J. Curry Meanwhile, attorneys for the Diocese and abuse victim Joseph Curry told Judge Sontchi they had reached a tentative agreement resolving his objections to the reorganization plan, according to the AP report. Mr. Curry reached a $1.7 million settlement with St. Dennis parish in Galena, Md., in January, months after church officials already had decided to accept the money from the Catholic Diocese Foundation on condition that all parishes would be released from liability. Mr. Curry's attorney accused the Diocese of acting with "unclean hands" and giving Mr. Curry an "empty promise" because Bishop Francis Malooly agreed to the settlement with Mr. Curry after having already determined that all parishes, including St. Dennis, would be released from liability under the bankruptcy plan, reports AP. Under the tentative agreement, which needs approval from St. Dennis and the Catholic foundation, Mr. Curry would be allowed to seek additional money from the parish if his recovery in the bankruptcy case and his share of proceeds from any litigation or settlement in sexual abuse lawsuits against Catholic religious orders amount to less than what he was promised by St. Dennis, the report says. Settlement on the Verge of Collapse Due to Judge Sontchi's June 14 rulings, the plan to end bankruptcy for the Wilmington Diocese and resolve more than 100 priest sex abuse lawsuits is on the verge of collapse, according to attorneys, Mr. O'Sullivan said in his report. "The settlement has fallen apart," said Mr. Neuberger. "The next move is up to the diocese," adds the report. Attorney Donald Detweiler, Esq., who is representing Diocese lay employees, urged all sides to talk during the coming days and think about how to rescue the deal. If the plan that was hammered out over months of negotiation falls apart, "then we are in a lot of trouble," delawareonline quoted him as saying. "The survivors' counsel has blown up the plan, so it can't be approved today [July 14]," said Mr. Detweiler. "We'll see if it can be fixed. If it can't, I don't know where we're going from here." The Diocese, through attorney Anthony Flynn, Esq., declined to comment about the case or the dire predictions of collapse. AP says Bishop Malooly declined to comment as he left the courtroom. "I need to kind of think this through," he said. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The Diocese filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC, is the financial advisor. The petition says assets range $50 million to $100 million while debts are between $100 million to $500 million. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin Oct. 19, 2009. There were 131 cases filed against the Diocese, with 30 scheduled for trial, as of the bankruptcy filing. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Settlement Party Objects to Wilm. Plan ------------------------------------------------------- Joseph Curry filed with the U.S. Bankruptcy Court for the District of Delaware a bench memorandum in support of his objection to the Catholic Diocese of Wilmington, Inc.'s Plan of Reorganization in light of the evidence presented at the recent confirmation hearing. Mr. Curry reached a $1.7 million settlement with St. Dennis parish in Galena, Maryland, in January 2011. St. Dennis Roman Catholic Church of Maryland is a non-Debtor entity. On behalf of Mr. Curry, Joseph W. Benson, Esq., in Wilmington, Delaware, relates that at the July 8, 2011 confirmation hearing, he cross-examined two witnesses -- Bishop Francis Malooly and Monsignor Joseph P. Corsini, the Diocese's chief financial officer. During his testimony, the Bishop admitted that he would have to approve the placement of any encumbrance upon a parish asset, and that he would have to approve any payment in excess of $25,000 by a parish. Mr. Benson contends that Bishop Malooly must authorize expenditures of more than $25,000 by a parish. Mr. Curry urges the Court to deny the Diocese's request that his final judgment and lien against property of St. Dennis be enjoined because of their "unclean hands." Under its equitable power, the Court should refuse to grant an injunction denying Mr. Curry's right to enforce the January 4, 2011 judgment and lien against St. Dennis, Mr. Benson argues. Mr. Curry also insists that his objection to his lien being affected by the Plan should be approved and the channeling injunction denied. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The Diocese filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC, is the financial advisor. The petition says assets range $50 million to $100 million while debts are between $100 million to $500 million. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin Oct. 19, 2009. There were 131 cases filed against the Diocese, with 30 scheduled for trial, as of the bankruptcy filing. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Abuse Survivors Oppose 2nd Plea for Pensions ------------------------------------------------------------- The Unofficial Group of Abuse Survivors represented by The Neuberger Firm P.A. and Jacobs & Crumplar P.A. filed with the U.S. Bankruptcy Court for the District of Delaware a bench memorandum in opposition to the Catholic Diocese of Wilmington, Inc.'s renewed request for authority to continue providing pensions, sustenance and medical coverage to certain retired or removed priests accused of sexual abuse submitted in light of Bishop Francis Malooly's testimony at the recent confirmation hearing. Thomas S. Neuberger, Esq., at The Neuberger Firm P.A., in Wilmington, Delaware, contends that the request sought various benefits for seven of the eight living admitted child abusers: -- Pension, medical and housing benefits for James E. Richardson, Douglas W. Dempster and John A. Sarro; -- Medical benefits for Joseph A. McGovern, Charles W. Wiggins, Kenneth J. Martin and Francis G. DeLuca; and -- Sustenance payments for Messrs. Wiggins, McGovern and Martin as the Diocese in its sole discretion determined to be required. In its Plan of Reorganization, the Diocese has sought renewed authority to provide pensions, medical benefits and other funds to persons on its published list of child abusers under the guise of charity or sustenance payments, Mr. Neuberger alleges. He accuses the Diocese of intending to bury the request in the minutiae of its lengthy Plan and Disclosure statement, but its purpose was ferreted out and the Unofficial Committee opposed this attempt in its opposition to the Disclosure Statement. It is clear from the testimony of the Diocese's sole witness on the issue, Bishop Francis Malooly, that it has simply renewed its November 19, 2009 motion with the caveat that the Court should trust him to do the right thing on the matter and accept his promise that he would only pay these child abusers money in the future reluctantly, Mr. Neuberger contends. He asserts that the bishop candidly admitted "[i]t's possible" in the future he would give money to these abusers, and that he serves under orders in a hierarchical world wide organization. Mr. Neuberger argues that the Diocese's own unclean hands bar the relief it seeks. He asserts that the Bishop's testimony revealed the Diocese's unclean hands in making its renewed motion before the Court. He points out that the equitable doctrine of unclean hands is "rooted in the historical concept of the court as a vehicle for affirmatively enforcing the requirements of conscience and good faith, requires that the parties have acted fairly and without fraud or deceit as to the controversy in issue," citing Crown Packaging Technology, Inc. v. Rexam Beverage Can Co., 679 F.Supp.2d 512, 521 (D.Del. 2010). Just as the Diocese in its confirmation order seeks the power to hold survivors in contempt should they for any reason violate the discharge injunction it seeks, the Diocese should be subject to a binding order preventing it from continuing its decades long cover-up and paying hush money to its acknowledged child abusers under the guise of charity, Mr. Neuberger tells the Court. He adds that protection is needed since the Bishop admitted there are no internal rules of his organization, which prevent him or his successor or designee from giving child abusers money in the future. 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). CENTAUR LLC: Luna's Fortune Valley Renovation Nears Completion -------------------------------------------------------------- Penny Parker at Denver Post reports that Fortune Valley Casino in Central City is ready for its close-up after undergoing a more than $20 million facelift. According to the report, Luna Gaming Central City paid $10 million for the property, which was in Chapter 11 bankruptcy, and took possession of the property in January. Six months later, only a handful of the 118 hotel rooms and suites remain in remodeling that will have each room named and themed in honor of musicians or bands. About Centaur LLC Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana, LLC -- http://www.centaurgaming.net/-- is an company involved in the development and operation of entertainment venues focused on horse racing and gaming. The Company and its affiliates filed for Chapter 11 bankruptcy protection on March 6, 2010 (Bankr. D. Del. Case No. 10-10799). Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, assists the Company in its restructuring effort. The Company disclosed assets of $584 million and debt of $681 million as of the Petition Date. Affiliates Centaur PA Land LP and Valley View Downs LP filed for bankruptcy reorganization in October 2009 to keep alive a project to develop a racetrack in Pennsylvania. The filings were made following the failure to make payments due in October on a $382.5 million first-lien debt and a $192 million second-lien credit. All the companies are subsidiaries of closely held Centaur Inc., which isn't in bankruptcy. Centaur was authorized in August 2010 to sell the Fortune Valley Hotel & Casino 40 miles west of Denver to Luna Gaming Central City LLC for $7.5 million cash, plus a $2.5 million note. CHURCH AT SOUTH: Church Members Won't Pay Mortgage Owed to Bank --------------------------------------------------------------- Alex Murashko at Christian Post Reporter reports that members of the Church at South Las Vegas agreed to not pay the church's mortgage after they found out that they owed the bank more than three times the amount that the church building was worth. "After much deliberation, the leaders and the congregation said, we don't want our donations to keep going down a black hole with no light at the end of the tunnel," the report quotes Pastor Benny Perez to The Christian Post on Wednesday. "So, it became a stewardship issue. We stopped making payments [on] May 1." The Church at South Las Vegas sought Chapter 11 protection. Church at South Las Vegas -- http://www.thechurchlv.com/-- operates a church at 3051 Horizon Ridge Parkway. It filed a Chapter 11 petition (Bankr. D. Nev. Case No. 11-20839) on July 8, 2011. John P. Witucki, Esq., at Gordon Silver, in Las Vegas, Nevada, serves as counsel to the Debtor. The Debtor estimated assets and debts of up to $10 million. CIRCUIT CITY: DIVX Patent Portfolio Auction on Aug. 16 ------------------------------------------------------ The Circuit City Stores Inc. Liquidating Trust has entered into an agreement to sell its remaining patent portfolio to Imaging Transfer Co. LLC for a cash purchase price of $750,000. The sale is subject to higher and better offers. Streambank LLC has been engaged by the Trust to conduct the sale process. Competitive bids are due by Aug. 12 and an auction will be held on Aug. 16. A motion is being filed with the Bankruptcy Court for the Eastern District of Virginia seeking entry of an order granting the sale free and clear status. The portfolio consists primarily of patents developed in connection with Circuit City's former Digital Video Express (a/k/a DIVX) initiative. The portfolio consists of 22 U.S. patents and patent applications as well as multiple related foreign patents. Circuit City launched Digital Video Express in the late 1990's to develop an internet based, direct to home video rental solution that eliminated late fees for consumers and protected digital content. Although the DIVX system is no longer available, the technology developed by DIVX remains relevant to the areas of compression, distribution, security, usage tracking of movie content, anti-piracy, digital media and watermarking. "These patents were developed by Circuit City in order to leapfrog the traditional video rental process. Although Circuit City was not able to capitalize on its inventions, the video distribution model it envisioned has become the mainstream," said Gabe Fried, Managing Principal of Streambank. "Patents such as those developed by Circuit City play a central role in the evolving dynamic of technology companies creating digital delivery solutions as evidenced by the recent sale by Nortel of its patent portfolio for $4.5 Billion." The Nortel patents were sold through a chapter 11 bankruptcy sale to a consortium that included Apple, Microsoft and RIM, who outbid Google, the stalking horse bidder at $900 Million. Information concerning the sale process can be obtained by contacting Jack Hazan at jhazan@streambankllc.com or Gabe Fried at gfried@streambankllc.com, or by calling Streambank at: 781-444- 4940. About Streambank Streambank is an advisory firm, specializing in the valuation, marketing, and sales of intangible assets for businesses at all stages. Streambank identifies, preserves, and extracts value for clients through the application of experience, diligence and creativity. The firm's recent experience includes Anchor Blue Holdings, Robb & Stucky Furniture, Movie Gallery, Circuit City Stores, KB Toys and other notable brands and related intellectual property. Additionally, Streambank provides intangible asset valuation services to stakeholders in a variety of contexts including compliance and reporting, lending, and for the resolution of disputes. Streambank provides sound advice on value maximization strategies and liquidity options. Streambank is headquartered in Needham, MA and has offices in New York, NY. About Circuit City Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. 08-35653) on Nov. 10, 2008. InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of August 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases in Jan. 2009. In May 2009, Systemax Inc., a multi-channel retailer of computers, electronics, and industrial products, acquired certain assets, including the name Circuit City, from the Debtors through a Court- approved auction. COMPOSITE TECHNOLOGY: BCC Advisory OK'd as Investment Banker ------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California authorized Composite Technology Corporation, et al., to employ BCC Advisory Services LLC, BCC Ho1dco LLC's FINRA registered Broker/Dealer, as investment banker to provide exclusive equity financing services and debt financing services. As reported in the Troubled Company Reporter on June 27, 2011, pursuant to the Engagement Agreement, CTC is seeking approximately $5.0 million of senior debt financing and $25.0 million of equity financing for its emergence from its Chapter 11 bankruptcy case, working capital and growth capital. The firm will render services to CTC based on these compensation arrangement: * Monthly compensation. A non-refundable monthly retainer fee in the amount of $10,000 payable: (i) $10,000 upon the execution of the Engagement Agreement or as soon as approved by the Bankruptcy Court; plus (ii) $10,000 payable each 30 days after the execution of the Engagement Agreement until the conclusion of the engagement. * Equity Financing Success Fee. Upon CTC's receipt of funds from the equity financing, the firm will be compensated by a success fee of 5% of the first million dollars of consideration; plus 5% of the second million dollars of consideration; plus 4% of the third million dollars of consideration; plus 4% of the fourth million dollars of consideration; plus 3% of the fifth milion dollars of consideration; plus 3% of the sixth milion dollars of consideration; plus 2% of the seventh million dollars of consideration; plus 2% of the eighth million dollars of consideration; plus 1% of any remaining consideration received. * Debt Financing Success Fee. Immediately upon closing a transaction for debt securities acceptable to CTC, the Firm will be compensated by a success fee of 2% of the amount of financing received by CTC. The financing provided in a debt securities transaction is defined as the greater of (i) the amount of funds provided to CTC pursuant to the terms and conditions of the debt securities documentation; and/or (ii) the amount of funds borrowed by or invested in CTC from each financing source provided by the Firm to CTC for a period of 18 months from the first placement by that source(s). * To the extent that any prospective investor or lender that the Firm introduces to CTC provides Financing for are within 18 months following any termination of the Engagement Agreement, then the Firm will be entitled to receive, with respect to such subsequent Financing, a success fee. * The Firm has been advised that CTC is in discussions with certain parties that may provide debt or equity financing to CTC. Should one of these parties become a lender to or an investor in CTC, the Firm agrees to adjust its success fees by 40% on the amount of financing received from one of these parties. Edward M. Bixler, managing partner at BCC Advisory Services LLC, BCC Holdco LLC's FINRA registered Broker/Dealer, assured the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Composite Technology Headquartered in Irvine, California, Composite Technology Corporation - http://www.compositetechcorp.com/-- develops, produces, markets and sells energy efficient and renewable energy products for the electrical utility industry. As of March 31, 2011, the Company has one business segment: CTC Cable Corporation. CTC Cable produces and sells ACCC(R) conductor products and related ACCC(R) hardware products. ACCC(R) conductor has been sold commercially since 2005 and is currently marketed worldwide to electrical utilities, transmission companies and transmission design/engineering firms. Composite Technology filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-15058) on April 10, 2011, with Judge Mark S. Wallace presiding over the case. The Debtor's bankruptcy case was reassigned to Judge Scott C. Clarkson on April 13, 2011. BCC Advisory Services LLC, BCC Ho1dco LLC's FINRA registered Broker/Dealer, serves as investment banker to provide exclusive equity financing services and debt financing services. Composite Technology disclosed $5,855,670 in assets and $12,395,916 in liabilities as of the Chapter 11 filing. CTC Cable Corporation (Bankr. C.D. Calif. Case No. 11-15059) and Stribog, Inc. (Bankr. C.D. Calif. Case No. 11-15065) also filed for Chapter 11 protection. The cases are jointly administered, with Composite Technology as the lead case. Paul J. Couchot, Esq., at Winthrop Couchot PC, serves as the Debtors' bankruptcy counsel. The Debtors also tapped Marsch Fischmann & Breyfogle LLP as special intellectual property approval counsel; Knobbe, Martens, Olson & Bear, LLP as special patent litigation counsel; McIntosh Group as special intellectual property counsel. Peter C. Anderson, the U.S. Trustee for Region 16, appointed five members to the official committee of unsecured creditors in the Debtor's cases. Steptoe & Johnson LLP represents the Committee. CORDIA COMMUNICATIONS: Sells Business to Birch Communications ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Cordia Communications Inc. was authorized last week by the bankruptcy judge in Orlando, Florida, to sell the business to Birch Communications Inc. For Birch to take over a contract with Verizon Communications Inc., Verizon must be paid $4.4 million, according to the order approving the sale. 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 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., along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Lead Case No. 11-06493) on May 1, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Scott L. Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, serves as the Debtors' bankruptcy counsel. Source Capital Group, Inc., serves as investment banker. Development Specialists, Inc., is providing restructuring and management services, including Joseph J. Luzinski as chief restructuring officer. CREDITRON FINANCIAL: RDI Marketing Offers $1.4-Mil. for Assets -------------------------------------------------------------- Ed Palatella at Erie Times-News reports that RDI Marketing Services Inc. is prepared to buy Erie-based Telatron Marketing Group Inc. at auction in U.S. Bankruptcy Court in Erie, Pennsylvania. According to the report, RDI Marketing has offered to buy Telatron's assets, including its contracts, data and records, for $800,000 upfront, with another $600,000 to come in January if Telatron hits a revenue goal. The report says proceeds from the sale would go to creditors of Creditron Financial Corp., which does business as Telatron, including the Internal Revenue Service, owed $2 million, according to court records. The creditors also would divide another $1 million in Telatron's cash and receivables, according to court records. If RDI were to buy Telatron for $1.4 million, the total amount of money available to the creditors would be $2.4 million, according to Erie Times-News. Based in Erie, Pennsylvania, Creditron Financial Corporation dba Telatron Marketing Group Inc. filed for Chapter 11 bankruptcy protection (Bankr. W.D. Penn. Case No.: 08-11289) on July 3, 2010. Stephen H. Hutzelman, Esq., Plate Shapira Hutzelman Berlin May, et al., represents the Debtor. As of July 2008, the Debtor had $3 million in total assets, and $4.8 million in total debts. CRISTAL INORGANIC: Moody's Upgrades Corp. Family Rating to 'B1' --------------------------------------------------------------- Moody's Investors Service upgraded Cristal Inorganic Chemicals Ltd.'s Corporate Family Rating and Probability of Default ratings to B1 from B2. The ratings on the company's first and second lien debt were upgraded one notch to Ba2 and B2, respectively. The upgrade reflects the company's improved leverage and operating performance as a result of strong titanium dioxide (TiO2) industry dynamics, and the expectations of continued robust TiO2 industry fundamentals. The outlook is positive. The following summarizes the ratings activity: Cristal Inorganic Chemicals Ltd. Ratings upgraded: -- Corporate Family Rating to B1 from B2 -- Probability of Default Rating to B1 from B2 -- Revolving Credit Facility due 2012 to Ba2 (LGD2/28%) from Ba3 (LGD3/31%) -- First Lien Term Loan due 2014 to Ba2 - (LGD2/28%) from Ba3 - (LGD3/31%) -- Second Lien Term Loan due 2014 to B2 -- (LGD5/73%) from B3 -- (LGD5/76%) Outlook to Positive from Stable RATINGS RATIONALE Cristal's B1 CFR reflects the company's improved operating performance and credit metrics along with Moody's expectation that the favorable TiO2 industry conditions will continue. Low TiO2 inventory levels and tight supply -- demand conditions, the result of industry de-stocking and permanent capacity shutdowns during the 2008-2009 economic downturn, have led to high industry operating rates and producers enjoying their greatest profit margins since the early-1990s. TiO2 industry wide pricing was up around 35% year-over year through March 31, 2011, and significant price increases have been announced since that time that are expected to be realized. In addition, cost savings implemented during 2009 have helped boost the company's overall margins and strengthened credit metrics. Cristal's ratings are limited by the company's third party balance sheet debt (approximately $620 million as of June 30, 2011 -- a reduction of approximately $102 million during the second quarter of 2011), and single product line within a historically cyclical industry. The positive outlook reflects Moody's expectations that Cristal will continue to generate strong margins and meaningful amounts of positive free cash flow over the next 12-18 months. The ratings could be upgraded if the company continues to maintain its strong margins into 2012 as titanium ore prices increase, strong liquidity and credit metrics supportive a higher rating. The company's revolver is currently undrawn and matures within the next year (May 2012). The principal methodology used in rating Cristal Inorganic Chemicals was the Global Chemical Industry Methodology published in December 2009. Cristal Inorganic Chemicals Ltd., headquartered in Hunt Valley, Maryland, is the world's second largest producer of titanium dioxide. The company is also a producer TiCl4 and ultrafine TiO2. Revenues were approximately $1.5 billion for the twelve months ended March 31, 2011. Cristal is a wholly owned subsidiary of The National Titanium Dioxide Company Limited (Cristal Global), which operates a large, low-cost, TiO2 facility in Yanbu, Saudi Arabia. CRYSTAL CATHEDRAL: My Father's Church Bids $50 Million for Assets ----------------------------------------------------------------- The Associated Press reports that Norco-based My Father's House Church International made a $50 million offer to buy Garden Grove's Crystal Cathedral. According to the report, the Crystal Cathedral's attorney Marc Winthrop told the newspaper he hadn't seen a formal offer yet. Crystal Cathedral Ministries has already withdrawn a proposal to have Greenlaw Partners LLC open the auction for its assets. For $46 million, Greenlaw would have acquired the facility and leased a portion back to the church with a purchase option. The sale and leaseback would have been part of a Chapter 11 reorganization plan. The Cathedral dropped support for Greenlaw to be the stalking- horse after receiving two offers or indications of interest: * Chapman University made a similar $46 million proposal. The creditors' committee was behind the Chapman offer, saying it had "clear benefits to the ministry." * The Roman Catholic Bishop of Orange County, California, filed papers in bankruptcy court this week laying out interest in acquiring the facility and maintaining operations as a place of worship. The bishop said his church had outgrown its existing Holy Family cathedral which has only 900 seats. The bankruptcy judge told the parties to return to court on Aug. 1 for a status conference. About Crystal Cathedral Crystal Cathedral Ministries is a Southern California-based megachurch founded by television evangelist Robert Schuller. The church, known for its television show "The Hour of Power." Crystal Cathedral filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. 10-24771) on Oct. 18, 2010. The Debtor disclosed $72,872,165 in assets and $48,460,826 in liabilities as of the Chapter 11 filing. Marc J. Winthrop, Esq., at Winthrop Couchot P.C. represent the Debtor. The U.S. Trustee for Region 16 appointed seven members to the official committee of unsecured creditors in the Chapter 11 case of Crystal Cathedral Ministries. Todd C. Ringstad, Esq., at Ringstad & Sanders, LLP, represent the Committee. DAVID BROWN: 50 Cent Doubts Young Buck's Repayment Plan ------------------------------------------------------- Philip Nannie at the Nashville Post reports that Rapper Curtis J. Jackson III, better known in the entertainment world as 50 Cent, is not convinced his former business partner's repayment plan submitted to the bankruptcy court is feasible. According to the report, 50 Cent filed an objection July 11 to rapper Young Buck's plan to repay G-Unit, 50 Cent's label, to which Young Buck owes money and has an obligation to record. Young Buck's real name is David Darnell Brown. The report says the filed objection documents 50 Cent's concern that Young Buck can't sufficiently manage his financial affairs to repay his creditors, of which 50 Cent -- through G-Unit -- is one. A hearing is scheduled for July 19. Young Buck filed for Chapter 13 bankruptcy in 2010. In January 2011, a federal judge converted the bankruptcy proceedings of Nashville rapper Young Buck, whose real name is David Darnell Brown, to Chapter 11 bankruptcy proceeding. The ruling comes as Well Fargo is attempting to repossess the Mr. Buck's BMW over missed payments. Jeanne Burton was named Chapter 11 trustee in Young Buck's case. DAVIE YARDS: Ends Sale Talks With Fincantieri; CCAA Stay Extended ----------------------------------------------------------------- Davie Yards has terminated discussions with Fincantieri - Cantieri Navali Italiani, regarding the proposed acquisition of the shipyard. "The interested parties have concluded that it is not possible to reach an agreement within the time allowed to submit a bid on July 21st for the National Shipbuilding Procurement Strategy ("NSPS")" said the President and CEO of Davie, Mr. Gustav Johan Nydal. He continued, "Unfortunately, the two-week extension granted by the federal government to submit a valid bid was not sufficient to conclude a deal with Fincantieri, we have tried but the delay is too short." Davie also obtained an order from the Quebec Superior Court extending the stay of proceedings ordered by the Court to July 22, 2011, the whole pursuant to the Companies' Creditors Arrangement Act. This extension will allow Davie to consider all options for the future of the yard. About Davie Yards Davie Yards Inc. -- http://www.davie.ca/ -- owns and operates the Davie yard in Quebec. With over 185 years of operating experience, the shipyard is the largest in Canada and among the largest and most sophisticated in North America. The Corporation has a focus on building large and complex offshore service vessels and rigs, and other sophisticated vessels for commercial and governmental use. DAYBREAK OIL: Posts $154,400 Net Loss in May 31 Quarter ------------------------------------------------------- Daybreak Oil and Gas, Inc., reported a net loss of $154,446 on $380,357 of oil and gas sales for the three months ended May 31, 2011, compared with a net loss of $385,696 on $193,051 of oil and gas sales for the three months ended May 31, 2010. The Company's balance sheet at May 31, 2011, showed $3.14 million in total assets, $3.18 million in total liabilities, and a stockholders' deficit of $41,601. A copy of the Form 10-Q is available at http://is.gd/i25SDg As reported in the TCR on June 1, 2011, MaloneBailey, LLP, in Houston, expressed substantial doubt about Daybreak Oil's ability to continue as a going concern, following the Company's results for the fiscal year ended Feb. 28, 2011. The independent auditors noted that the Company suffered losses from operations and has negative operating cash flows. Daybreak Oil and Gas, Inc. is an independent oil and natural gas exploration, development and production company. The Company is headquartered in Spokane, Washington and has an operations office in Friendswood, Texas. The Company's common stock is quoted on the OTC Bulletin Board market under the symbol DBRM.OB. Daybreak has over 20,000 acres under lease in the San Joaquin Valley of California. DBSI INC: DBSI Trustee Sues 6 Brokers Over $500 Mil. Ponzi Scheme ----------------------------------------------------------------- Christie Smythe at Bankruptcy Law360 reports that a trustee seeking recovery for investors in DBSI Inc. sued six securities brokerage firms in Delaware on Thursday alleging they were complicit in a $500 million Ponzi scheme that landed the company in bankruptcy court. James R. Zazzali, a trustee representing the interest of DBSI creditors, lodged the suit against companies including Berthel Fisher & Co. Financial Services Inc., DeWaay Financial Network LLC, Independent Financial Group LLC, G.A. Repple & Co., Girard Securities Inc. and J.P. Turner & Co. LLC, according to Law360. About DBSI Inc. Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates were engaged in numerous commercial real estate and non-real estate projects and businesses. On Nov. 10, 2008, and other subsequent dates, DBSI and 180 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-12687). DBSI estimated assets and debts between $100 million and $500 million as of the Chapter 11 filing. Lawyers at Young Conaway Stargatt & Taylor LLP represent the Debtors as counsel. The Official Committee of Unsecured Creditors tapped Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' notice claims and balloting agent. Joshua Hochberg, a former head of the Justice Department fraud unit, served as an Examiner and called the seller and servicer of fractional interests in commercial real estate an "elaborate shell game" that "consistently operated at a loss" in his report released in October 2009. McKenna Long & Aldridge LLP was counsel to the Examiner. On Sept. 11, 2009, the Honorable Peter J. Walsh entered an Order appointing James R. Zazzali as Chapter 11 trustee for the Debtors' estates. On Oct. 26, 2010, the trustee of DBSI Inc. won court confirmation of its Chapter 11 plan of liquidation, paving the way for it to pay creditors and avoid years of expensive litigation over its complex web of affiliates. The plan, which was declared effective Oct. 29, 2010, was jointly proposed by DBSI's unsecured creditors and the bankruptcy trustee in charge of DBSI and its 170-plus affiliates. Pursuant to DBSI Inc.'s confirmed Chapter 11 plan, the DBSI Real Estate Liquidating Trust was established as of the effective date and certain of the Debtors' assets, including the Debtors' ownership interest in Florissant Market Place was transferred to the RE Trust. Mr. Zazzali and Conrad Myers were appointed as the post-confirmation trustees. Messrs. Zazzali and Myers are represented by lawyers at Blank Rime LLP and Gibbons P.C. DEAN FOODS: Moody's Says Antitrust Deal Won't Affect on Ba3 Rating ------------------------------------------------------------------ Moody's said the proposed $140 million settlement agreement announced by Dean Foods to settle litigation brought on behalf of a class of dairy farmers in various southeastern states will not affect its current ratings on Dean (CFR at Ba3) or the negative outlook. "While the amount is large, the settlement reduces uncertainty and the potential for greater costs going forward and could have been much worse for the company" said Linda Montag, Moody's Senior Vice President. Dean has sufficient liquidity under both its revolver and accounts receivable facility to cover the amounts under the proposed payment schedule, and the charge will be allowed as an adjustment (add back to EBITDA) under its credit facility for covenant calculation purposes. On an after tax basis, the company estimates that the net present value of the settlement amount will be approximately $75 million. Moody's believes that leverage will be just slightly higher following the initial payment, but that it will not rise enough to derail Dean from its plan to reduce leverage as the year progresses, assuming operating performance improves as expected. Dean's Ba3 rating is supported by the company's leading market share and national scale in the US Dairy industry, the potential for cost efficiencies/productivity improvements as management focuses on internal integration, streamlining of operations and further cost reduction initiatives. Ratings are also supported by its strong distribution network with comprehensive refrigerated direct store delivery systems. These positives are offset by very narrow margins inherent in its largest, commodity-oriented milk business, as well as more limited product, geographic and customer diversification than certain other large global food and agriculture companies. Ratings are also constrained by the potential for both volatility in milk prices as well as shifts in the pricing strategies of retailers creating increased price competition among processors to erode profitability. The negative outlook reflects the pressure on profitability that the company has continued to experience amid price and mix pressures in its Fresh Dairy Direct business, which is driving credit metrics into weaker ranges than previously expected. The principal methodology used in this rating was the Global Packaged Goods published in July 2009. With annual net sales of approximately $12 billion, Dean Foods ("Dean") is the largest processor and distributor of milk and various other dairy products in the United States and a European leader in branded soy foods and beverages. It is headquartered in Dallas, Texas. DELIVERANCE CHRISTIAN: Case Summary & 15 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: Deliverance Christian Church 2130 31st Street N.W. Canton, OH 44709 Bankruptcy Case No.: 11-62306 Chapter 11 Petition Date: July 13, 2011 Court: United States Bankruptcy Court Northern District of Ohio (Canton) Judge: Russ Kendig Debtor's Counsel: David A. Mucklow, Esq. DAVID A. MUCKLOW 919 E Turkeyfoot Lake Rd #B Akron, OH 44312 Tel: (330) 896-8190 Fax: (330) 896-8201 E-mail: davidamucklow@yahoo.com Scheduled Assets: $3,080,264 Scheduled Debts: $1,283,712 A list of the Company's 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ohnb11-62306.pdf The petition was signed by Warren P. Chavers, senior pastor. DLH MASTER: Court Approves 380 Project Settlement ------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas approved the settlement agreement between DLH Master Land Holding LLC and The Allen Group Inc. regarding the "380 project development and financing agreement" with the city of Hutchins, Texas. The terms and conditions of the settlement agreement are: follows: * The Allen Group will seek to obtain the written consent of the City, as required by the 380 Agreement, to assign the 380 Agreement to DLH, and upon receipt of such written consent will in fact assign the 380 Agreement to DLH. * Upon assignment of the 380 Agreement by the Allen Group to DLH, the benefits and proceeds derived from the 380 Agreement will first be used to pay in full the cure claim, if any owed to ADESA Texas, Inc. under the ADESA Lease as determined by this Court or by agreement between DLH and ADESA. * Once the cure claim owed to ADESA, if any, under the ADESA Lease has been satisfied in full from the benefits and proceeds of the 380 Agreement, any future benefits and proceeds under the 380 Agreement will be shared equally by DLH and the Allen Group for the remainder of the life of the 380 Agreement. The Official Committee of Unsecured Creditors was the only party that objected to the original settlement specifically objecting to any remaining sums payable under the 380 Agreement being divided 50% to DLH and 50% to the Allen Group. To resolve the Creditors Committee objection, counsel for DLH negotiated a modified settlement under which the remaining payments under the 380 Agreement are to be split 75% to DLH and 25% to the Allen Group, only after ADESA has been paid the full $600,000 plus interest pursuant to that certain Compromise Settlement Agreement and Release between ADESA, DLH, and the Allen Group. A full-text copy of the 380 Project Development & Financing Agreement is available for free at: http://bankrupt.com/misc/DLHMASTER_Financing_Agreement.pdf About Allen Capital Allen Capital Partners LLC and subsidiary DLH Master Land Holding LLC, are the developers of Dallas Logistics Hub, a 6,000-acre multimodal logistics park 12 miles (19 kilometers) from downtown Dallas. Allen Capital Partners, LLC, dba The Allen Group, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10- 30562) on Jan. 25, 2010. Mark MacDonald, Esq., at MacDonald + MacDonald, P.C., represents the Debtor. Lain, Faulkner & Co. is the Debtor's financial advisor. The Company disclosed $220,325,201 in assets and $160,622,236 in liabilities as of the Chapter 11 filing. The Debtor's affiliate -- DLH Master Land Holding, LLC, dba The Allen Group -- filed a separate Chapter 11 bankruptcy petition. Another affiliate, Visalia, California-based Richard S. Allen, Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Texas Case No. 10-33211) on May 3, 2010. Patrick J. Neligan, Jr., Esq., at Neligan Foley LLP, represents the Debtor. The Company disclosed $76,158,469 in assets and $53,728,982 in liabilities as of the petition date. The Debtors' proposed Reorganization Plan contemplates that the Debtors will obtain sufficient exit financing from sales and loans from insiders to enable them to pay all Administrative and non-tax Priority Claims in full on the effective date. No trustee or examiner has been appointed in any of the cases administratively consolidated with those of the Debtors. An Official Committee of Unsecured Creditors has been appointed. DYNEGY INC: Lawyers Meet With Potential Lenders on Spinoff Plans ---------------------------------------------------------------- Matt Wirz, writing for The Wall Street Journal, reports that Dynegy Inc.'s lawyers, led by Thomas Lauria, Esq., head of restructuring practice at White & Case LLP, on Wednesday sought to assuage potential lenders' concerns about any legal liability they might face if the company were to file for bankruptcy-court protection. According to the report, Mr. Lauria said Wednesday's conference call was arranged in response to close to 100 inquiries from interested investors. The Journal says Mr. Lauria focused primarily on questions concerning the possibility that Dynegy bondholders could sue new lenders, alleging fraudulent transfer of the company's assets, if Dynegy were to seek bankruptcy-court protection. On the call, Mr. Lauria said he saw little risk of liability for fraudulent transfer because the contemplated reorganization won't transfer any assets outside the Dynegy Holdings family of companies. On Monday, Dynegy launched a $1.7 billion loan package tied to a planned corporate restructuring. The corporate-debt restructuring will be managed by its investment bank, Credit Suisse. Under the proposal, the company will split its coal and natural-gas generating assets into two separate entities that will be bankruptcy remote from the parent holding company, Dynegy Holdings Inc. The Journal notes the while proceeds from the new deal will pay off some existing secured loans at the parent company, it will add $1 billion of incremental debt to the company's heavily levered balance sheet. According to the Journal, the unveiling of the plan has weighed down Dynegy's $3 billion of bonds issued at the holding-company level, most notably the $550 million of 7.50% notes due 2015. More than $130 million of the bonds, or 24% of those outstanding, traded this week, as the price of the debt fell 9% to 73.50 cents on the dollar. According to the Journal, Mr. Lauria said that if the new financing and operational split go off as planned, the two new entities -- Dynegy Power LLC (GasCo) and Dynegy Midwest Generation LLC (CoalCo) -- may avoid bankruptcy if Dynegy Holding defaulted on its bonds and filed for Chapter 11 protection. The Journal notes that while lender conference calls are common in leveraged loan financings, the dialogue between investors and borrowers typically focus on the collateral for the debt and the rate of interest it will pay. The Journal says the need for a call to address potential bankruptcy risk reflects Dynegy's heavily levered balance sheet, the operational head winds it faces from persistently low natural-gas prices and the aggressive nature of the planned restructuring. The Journal says Dynegy and Credit Suisse didn't return requests for comment. EAST COAST: Jonathan W. Washburn OK'd as Broker for Certain Assets ------------------------------------------------------------------ The Hon. Randy D. Doub of the U.S. Bankruptcy Court for the Eastern District of North Carolina authorized East Coast Development II, LLC, to employ Jonathan W. Washburn Coldwell Banker Commercial Sun Coast Partners 4301 Commonwealth Drive No. 102 Wilmington, NC 28403 Mr. Washburn of Coldwell Banker, as broker, on a non-exclusive basis, will list for lease the real property known as the building at 125 Market Street, Wilmington, North Carolina and the parking lot at 127 Market Street, Wilmington, North Carolina. The Debtor will pay commissions in the amount of 6% of the gross rent of the property. The Debtor related that it has also entered into another non- exclusive right to lease listing agreement and has filed an application to employ and to approve commissions to broker Keith Saieed of Blue Sky Services Real Estate. Mr. Washburn, who also has a non-exclusive right to lease listing agreement with the Debtor, has a potential tenant for the building and it is critical to the estate to get the building rented. To the best of the Debtor's knowledge, Coldwell Banker is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About East Coast Development II Wilmington, North Carolina-based East Coast Development II, LLC, dba 100 Block of Market Street, LLC, is in the business of renting real property located in Onslow County, New Hanover County, Guilford County, Wake County, Brunswick County, North Carolina, and Greenville County, Charleston County, and Richland County, South Carolina. East Coast filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11-02792) on April 8, 2011. Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., serves as bankruptcy counsel. Laurie R. Brown, CPA, serves as accountant. Keith Saieed of Blue Sky Services Real Estate serves as broker for the sale of the Debtor's properties. The Debtor disclosed $24,792,275 in assets and $12,172,815 in liabilities as of the Chapter 11 filing. The U.S. Trustee has not yet appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. EAST COAST: Finalizing Deal for New Investor, Wants Time for Plan ----------------------------------------------------------------- East Coast Development II, LLC, asks the U.S. Bankruptcy Court for the Eastern District of North Carolina to extend its exclusive period to file a proposed plan of reorganization until Aug. 6, 2011. The Debtor filed its request for an extension before the exclusive periods was set to expire on July 7. The Debtor explains that it needs more time to finalize the terms of an agreement whereby an investor will inject new capital. About East Coast Development II Wilmington, North Carolina-based East Coast Development II, LLC, dba 100 Block of Market Street, LLC, is in the business of renting real property located in Onslow County, New Hanover County, Guilford County, Wake County, Brunswick County, North Carolina, and Greenville County, Charleston County, and Richland County, South Carolina. East Coast filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11-02792) on April 8, 2011. Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., serves as bankruptcy counsel. Laurie R. Brown, CPA, serves as accountant. Keith Saieed of Blue Sky Services Real Estate serves as broker for the sale of the Debtor's properties. The Debtor disclosed $24,792,275 in assets and $12,172,815 in liabilities as of the Chapter 11 filing. The U.S. Trustee has not yet appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. EASTMAN KODAK: 2013 Bonds Fall Below Face Value ----------------------------------------------- Matt Wirz and Dana Mattioli, writing for The Wall Street Journal, report that Eastman Kodak Co. bonds that come due in 2013 have been dumped for prices well below face value and now yield more than 16%, a sign investors are demanding higher compensation for the risk of lending to Kodak. The Journal further reports that shareholders also are bailing out. Bill Miller, the Legg Mason Inc. fund manager who buys beaten-down stocks he thinks will rebound, sold off his holdings in Kodak in the six months ended April 30 after more than a decade of betting on a rebound. The company's shares fell 8% to $2.52 in 4 p.m. composite trading Monday on the New York Stock Exchange, their lowest level in more than two years. The Journal notes that, of the 100 most actively traded bonds Monday, only a handful -- including those issued by Lehman Brothers Holdings Inc. and OPTI Canada Inc., two companies that have sought protection from creditors -- offer higher yields than Kodak's, according to market data firm MarketAxess. According to the Journal, negative sentiment has been building since a late-June setback in a patent suit that Kodak hoped would provide a fresh injection of cash to help fund its turnaround. Yet the concerns run deeper, to whether the company's bet that it can patch the hole in its film business with new consumer and commercial printers will pay off in time. According to the Journal, Kodak, which had $1.3 billion in cash at the end of March, said it has enough funds. Kodak spokesman Dave Lanzillo said, "We have the resources to fully pay our obligations, and we are confident that will continue to be the case." Kodak has $50 million in debt coming due this year and next, and another $350 million to pay off in 2013. The company burned through $324 million in cash in the first quarter. Kodak still has a vast portfolio of intellectual property that it hopes to use to generate royalties that will keep the company afloat until 2012, when the company has said it will become profitable. As reported by the Troubled Company Reporter on July 7, 2011, Bill Rochelle, the bankruptcy columnist for Bloomberg News, said Kodak credit default swaps imply a 74% probably of default within five years as the result of the deferral of a decision by the U.S. International Trade Commission on a patent dispute with Apple Inc. and Research In Motion Ltd. The swaps in December were implying a 50% possibility of default, according to data compiled by Bloomberg. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Company (NYSE:EK) -- http://www.kodak.com/-- provides imaging technology products and services to the photographic and graphic communications markets. The Company's balance sheet at March 31, 2011, showed $5.88 billion in total assets, $7.15 billion in total liabilities, and a $1.27 billion total deficit. * * * As reported by the Troubled Company Reporter on March 2, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Eastman Kodak to 'CCC' from 'B-'. S&P removed the rating from CreditWatch, where S&P placed it with negative implications on Jan. 26, 2011. The rating outlook is negative. Issue-level ratings on the company's debt were also lowered and removed from CreditWatch in conjunction with the corporate credit rating change. The 'CCC' corporate credit rating reflects S&P's expectation that Eastman Kodak's pace of cash consumption will remain high over the near term. It also reflects S&P's expectation of continued secular volume decline of the traditional photographic products and services business, that the company's consumer digital imaging businesses will not quickly turn convincingly profitable, and that intellectual property earnings, which constitute a significant portion of the company's EBITDA, could decline significantly from 2010 levels. These factors underpin S&P's view of Kodak's business risk as vulnerable and support S&P's view that revenue and EBITDA will decline in 2011. S&P views the company's financial risk profile as highly leveraged because of the risk that its earnings and cash flow could become insufficient to support its debt. In the March 16, 2011 edition of the TCR, Fitch Ratings has affirmed its 'CCC' Issuer Default Rating on Kodak. The ratings and Negative Outlook reflect Kodak's continued struggles to gain traction in its digital businesses as secular declines persist and broaden to entertainment film within the traditional film business. In March, Moody's Investors Service demoted Kodak's corporate rating to Caa1 coupled with a judgment the company "could" consume $600 million to $700 million in cash during 2011. Moody's noted that Kodak has no material debt maturities until November 2013. EB CAPITAL: S.D.N.Y. Court Transfers Case to South Dakota --------------------------------------------------------- Bankruptcy Judge Martin Glenn transferred the bankruptcy case of EB Capital Management LLC to the Bankruptcy Court for the District of South Dakota, at the behest of Tracy Hope Davis, the United States Trustee for Region 2. The U.S. Trustee points to the lack of connection between the Debtor and the Southern District of New York. The U.S. Trustee asserts that this case should be transferred to the District of South Dakota in the "interest of justice" and for the "convenience of the parties." The second amended petition lists the Debtor's street address as 110 Wall Street, 11th Floor, in New York. However, the second amended petition and the Debtor's schedules and statement of financial affairs also indicate that the location of principal assets of the Debtor, the shareholders of the Debtor and the majority of the Debtor's creditors are located in Sioux Falls, South Dakota. A rambling objection, in the form of an "Affidavit"submitted by a member of the Debtor, Ronald Goldberg, was filed by the Debtor in response to the U.S. Trustee's request. The Debtor submits, in substance, that venue lies in this district because the Debtor has conducted business in the city and state of New York for over 20 years at 110 Wall Street. The Debtor further asserts that Mr. Goldberg's address, as well as the business address of the Debtor, has always been 110 Wall Street and the only reason for his visiting Sioux Falls, South Dakota was to oversee the construction and improvement of a house in Sioux Falls and to visit his 18- month old son who resided at the Sioux Falls house with his estranged wife, Kyriel Treloar, until Ms. Treloar and the child were recently evicted. Mr. Goldberg filed an individual chapter 13 in the Southern District of New York on April 23, 2009, Case No. 09-12497. The chapter 13 case was dismissed for failure to timely file required documents. Mr. Goldberg filed a personal bankruptcy case in the Bankruptcy Court for the District of South Dakota in May 2011 on the eve of a state court eviction hearing. The U.S. Trustee in South Dakota moved to dismiss the personal bankruptcy case due to the Debtor's failure to file schedules and statements. The Bankruptcy Court for the District of South Dakota granted the motion to dismiss and barred Mr. Goldberg or "his LLC,"EB Capital Management LLC, from re-filing for one year. Also in May 2011, the state court in South Dakota concluded that the automatic stay did not apply to an eviction proceeding instituted against Mr. Goldberg because a different entity, EB Capital Management LLC, was the lessee of the property and not subject to the automatic stay. During the hearing on the Motion, the Debtor's counsel said that Mr. Goldberg is currently living in a hotel in Minnesota. The Debtor also argued that the "more important"reason that the Court should deny the Motion is because transfer to South Dakota would work severe prejudice on the Debtor because the only bankruptcy judge in South Dakota is a "golfing buddy"of Kent Cutler, Esq., attorney for Dennis and Susan Yungwirth. The Yungwirths are owners of the house in Sioux Falls that is the subject of two purchase agreements allegedly executed in favor of Mr. Goldberg and which the Debtor has moved to assume in the bankruptcy case. Mr. Goldberg further asserts that he has "spoken to just about every bankruptcy counsel in South Dakota"and has been unable to secure counsel for his personal bankruptcy case or agree to act as local counsel for the Debtor in the case. Mr. Goldberg argues that the South Dakota bankruptcy court should not handle the Debtor's bankruptcy filing because it refused to enforce the automatic stay in his personal bankruptcy case in South Dakota and entered a filing injunction against the Debtor for a period of one year. According to Judge Glenn, even if venue lies in the Southern District of New York by virtue of the Debtor's address at 110 Wall Street, the case should be transferred to the District of South Dakota. A copy of Judge Glenn's July 14, 2011 Memorandum Opinion is available at http://is.gd/U66Pm7from Leagle.com. EB Capital Management LLC filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-12646) on May 31, 2011, estimating under $1 million in assets and debts. A copy of the petition is available at http://bankrupt.com/misc/nysb11-12646.pdf The Law Office of Robert A. Mahler, Esq., serves as the Debtor's bankruptcy counsel. He may be reached at: LAW OFFICE OF ROBERT A. MAHLER, ESQ. 419 East 64th Street, Suite 2C New York, NY 10065 ELBIT VISION: Brightman Almagor Raises Going Concern Doubt ---------------------------------------------------------- Elbit Vision Systems Ltd. filed on July 14, 2011, its annual report on Form 20-F for the fiscal year ended Dec. 31, 2010. Brightman Almagor Zohar & Co., in Tel Aviv, Israel, expressed substantial doubt about Elbit Vision Systems' ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and accumulated deficit. The Company reported net income of $2.6 million on $3.9 million of revenues for 2010, compared with a net loss of $7.7 million on $2.2 million of revenues for 2009. Loss for the year before discontinued operation was $863,000 and $2.1 million for 2010 and 2009, respectively. The Company's balance sheet at Dec. 31, 2010, showed $2.1 million in total assets, $4.9 million in total liabilities, and stockholders' deficit of $2.8 million. A copy of the Form 20-F is available at http://is.gd/8dyDiN Based in Caesarea, Israel, Elbit Vision Systems Ltd. (OTC BB: EVSNF.OB) offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency. ELLIPSO INC: Auctioneers Put Patents & Trademark Up For Sale ------------------------------------------------------------ National Commercial Auctioneers and IpAuctions, Inc. are currently entertaining offers for the sale of a valuable patent and trademark portfolio consisting of 21 patents, a patent application and 2 trademarks on behalf of Wendell Webster, Esq., Chapter 11 Trustee in bankruptcy for Ellipso, Inc., Mobile Communications Holdings, Inc., ESBH, Inc., and Virtual Geosatellite, LLC. "When the company was raising money, they had commitments for hundreds of millions of dollars for development" The assets of Ellipso are just now becoming available to the marketplace through the court-appointed sale consultants, National Commercial Auctioneers and IpAuctions, Inc. "These are extremely valuable telecommunications assets that every player in that industry need to own," comments Stephen Karbelk, CAI, CEO & Founder of National Commercial Auctioneers. "When the company was raising money, they had commitments for hundreds of millions of dollars for development," notes Joe Popolo, President of IpAuctions, Inc. "Now these intellectual property assets are available for purchase through the bankruptcy sale process." About IpAuctions(TM) Established in 2000, -- http://www.ipauctions.com/-- provides a platform for monetizing Intellectual Property for investors, corporations and other technologists. Its online environment has a proprietary worldwide database of corporate and private buyers, IP attorneys and venture capitalists who wish to maximize the value of their IP assets. About National Commercial Auctioneers National Commercial Auctioneers is a nationwide auction company that specializes in the commercial sales of banks, special servicers, receivers, Trustee's and bankruptcy courts. About Ellipso, Inc. Ellipso, Inc. is a privately held communications satellite system design company, now in bankruptcy. Ellipso's subsidiaries include Mobile Communications Holdings, Inc., ESBH, Inc., and Virtual Geosatellite, LLC. Through these subsidiaries, Ellipso has compiled this portfolio of intellectual property for various communications satellite systems and high performance technology. Utilizing unique and patented elliptical orbits, the systems were intended to provide low cost voice, data, facsimile, paging and geolocational services to subscribers around the world at prices lower than competing systems. Ellipso, Inc., filed for Chapter 11 bankruptcy (Bankr. D. D.C. Case No. 09-00148) on Feb. 25, 2009. Kermit A. Rosenberg, Esq., at Tighe Patton Armstrong Teasdale, PLLC, in Washington, DC, serves as the Debtor's counsel. In its petition, the Debtor estimated under $50,000 in assets and $1 million to $10 million in debts. ENCAP GOLF: Wisler Gets Medical Continuance Until Dec. 1 -------------------------------------------------------- John Brennan at the Record reports that attorney Eric Wisler, the former lead attorney for the Meadowlands EnCap project who was indicted last fall for allegedly funneling bribes to a former state senator, has been granted a third medical continuance by a federal judge. According to the report, Mr. Wisler, a former partner in the DeCotiis law firm, is suffering from colorectal cancer and other serious ailments, according to Michael Critchley, his attorney. U.S. District Judge Faith Hochberg who granted Mr. Wisler a three- month continuance in January and two more months in April, this week agreed with Mr. Critchley's motion for another continuance until Dec. 1. The report says the defense and the prosecution informed Hochberg that Mr. Wisler is not competent to stand trial. Mr. Wisler was ordered to disclose to the court and to the prosecution by Nov. 14 any changes to his medical condition or his drug prescriptions. Mr. Wisler said he is alleged to have secretly arranged for former state Sen. Wayne Bryant, D-Camden, to be paid $8,000 per month for a fictitious job from 2004-06 in exchange for Bryant writing legislation favorable to the EnCap golf and housing project. Both men have pleaded not guilty. The controversial EnCap plan, which was to be built atop landfills in Lyndhurst, Rutherford and North Arlington, collapsed in 2009, when a Chapter 11 bankruptcy reorganization failed. About EnCap Golf Headquartered in East Rutherford, New Jersey, EnCap Golf Holdings, LLC, a subsidiary of Cherokee Investment Partners of North Carolina, develops closed landfills and other brownfield properties into golf courses. The company and its affiliate, NJM Capital LLC, filed for Chapter 11 protection on May 8, 2008 (Bankr. D. N.J. Lead Case No. 08-18581). Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Hackensack, New Jersey, represents the Debtors. The U.S. Trustee for Region 3 appointed five creditors to serve on an Official Committee of Unsecured Creditors. Greenberg Traurig LLP represents the Committee in this case. The Debtors' schedules disclose total assets of $70,056,038 and total liabilities of $458,587,968. The Debtors filed their chapter 11 plan on September 30, 2008. Trump Organization delivered a competing plan the following day. EVERGREEN ENERGY: MR&E Defaults Under Purchase Agreement -------------------------------------------------------- Evergreen Energy Inc., on April 12, 2011, disclosed that it had entered into a Asset Purchase Agreement with MR&E Ltd. as an agent for a third party for the sale of the Company's 700,000 pound per hour Circulating Fluidized Bed boiler island, for $2.9 million. The cash payments due from the third party were as follows: (i) $100,000 upon the signing of the asset purchase agreement; (ii) $300,000 on or before May 23, 2011; and (iii) $2.5 million on or before July 9, 2011. The Company received the first $100,000 payment upon the signing of the agreement. However, the purchaser of the Boiler Island has not made the final two payments and as a result, is in default of the Asset Purchase Agreement as of July 11, 2011. The Company is considering its remedies against the purchaser. The Company has also initiated a fresh process for selling the Boiler Island. About Evergreen Energy Evergreen Energy Inc. has developed two, proprietary, patented, and green technologies: the GreenCert(TM) suite of software and services and K-Fuel(R). GreenCert, which is owned exclusively by Evergreen, is a science-based, scalable family of environmental intelligence solutions that quantify process efficiency and greenhouse gas emissions from energy, industrial and agricultural sources and may be used to create verifiable emission reduction credits. K-Fuel technology significantly improves the performance of low-rank coals, yielding higher efficiency and lowering emissions. The Company reported a net loss of $21.02 million on $403,000 of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $58.53 million on $423,000 of total operating revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $33.50 million in total assets, $37.62 million in total liabilities, and a $4.12 million total stockholders' deficit. Hein & Associates LLP, in Denver, Colo., expressed substantial doubt about Evergreen Energy's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has had recurring cash used in operations. EVERGREEN SOLAR: Fails to Pay $4.16MM Notes Interest Payments ------------------------------------------------------------- The Board of Directors of Evergreen Solar, Inc., on July 14, 2011, determined that in light of its current liquidity and capital resources, it will not make the interest payments due on July 15, 2011, to the holders of its 4.0% Senior Convertible Notes due 2013 and its 4.0% Convertible Subordinated Additional Cash Notes due 2020 under their respective indentures. The amount of interest due is $4,076,120 with respect to the Senior Convertible Notes and $90,444 with respect to the Senior Subordinated Notes. Under each indenture, the failure to pay interest, if continued for 30 days, will constitute an Event of Default. Accordingly, if the Company has not made these interest payments by Aug. 15, 2011, U.S. Bank National Association, as Trustee of the Senior Notes, or the holders of at least 25% in principal amount of each class of the outstanding Senior Notes, will then have the right to provide an acceleration notice to the Company declaring the principal and unpaid interest on all the applicable Senior Notes due and payable. The Company's total outstanding obligations, including accrued but unpaid interest, as of July 15, 2011, under the indenture governing the Senior Convertible Notes are $207,882,120 and under the indenture governing the Senior Subordinated Notes are $5,590,444. In addition, if the Company fails to make these interest payments before the expiration of the grace period on Aug. 15, 2011, the Senior Notes are accelerated and if such acceleration has not been rescinded within 30 calendar days, such events will result in an event of default under the indenture governing its 13% Convertible Senior Secured Notes due 2015. This would then allow U.S. Bank National Association, as Trustee of the Senior Secured Notes, or the holders of at least 25% in principal amount of the outstanding Senior Secured Notes to provide an acceleration notice to the Company declaring the principal and unpaid interest on all the Senior Secured Notes due and payable. As of July 15, 2011, there was $170,362,500 outstanding under the indenture governing the Senior Secured Notes, including both principal and accrued but unpaid interest. As previously disclosed, the Company is continuing to aggressively pursue opportunities to address its excess debt and debt service requirements in the near term, including a significant restructuring of its existing debt, and is in discussions with holders of its debt in connection therewith, in order to significantly deleverage and better position it to execute its strategy of developing and supplying the lowest cost industry standard sized wafers to the world's leading solar panel manufacturers. About Evergreen Solar Evergreen Solar, (NasdaqCM: ESLR) -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon(R) solar power products using its proprietary, low-cost silicon wafer technology. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. As reported in the TCR on May 17, 2011, Evergreen Solar, Inc., incurred a $33.4 million net loss in its fiscal first quarter and said that it has hired financial and legal advisors to actively evaluate restructuring alternatives. The Company said its near-term liquidity has been negatively impacted as a result of its low year-to-date sales volume and potentially slower sales for the remainder of this year combined with expected increased pricing pressure. Furthermore, cash to be realized through the reduction in accounts receivable and inventory from the recently closed Devens facility will be less than previously expected and will take longer than expected to realize. Accordingly, the Company believes it will need to secure additional sources of cash sooner than expected and has retained financial and legal advisors to actively evaluate restructuring alternatives. FALLS AT TOWNE: Asks Court to Approve Ravich Meyer Hiring --------------------------------------------------------- The Falls at Towne Crossing, LLC, asks the Bankruptcy Court to approve the employment of Michael L. Meyer, Esq., and the law firm of Ravich Meyer Kirkman McGrath Nauman & Tansey, A Professional Association, to represent it in connection with all matters relating to the discharge of its responsibilities as debtor-in- possession in the Chapter 11 case. The attorneys and paralegal that will provide services and their hourly rates are: Michael L. Meyer, Esq. $450 Michael F. McGrath, Esq. $375 Will Tansey, Esq. $305 Paralegal $150 Mr. Meyer, a shareholder at Ravich Meyer, attests neither the firm nor any of its shareholders have any connection with any party holding a claim or other interest adverse to the Debtor or its estate. About The Falls at Towne Crossing and Geneva Multi-Family Exchange XIV Geneva Multi-Family Exchange XIV LLC owns the 336-unit Falls at Towne Crossing apartment project in Mansfield, Texas. Geneva Multi-Family Exchange XIV and affiliate The Falls at Towne Crossing, LLC, c/o Exchange Realty Inc., based in Minneapolis, Minnesota, filed separate Chapter 11 bankruptcy petitions (Bankr. D. Minn. Case Nos. 11-44562 and 11-44563) on July 5, 2011. Judge Dennis D. O'Brien presides over the case. Geneva Multi-Family Exchange XIV LLC disclosed $25.5 million in assets and $24.3 million in debts in its petition. Falls at Towne Crossing estimated assets and debts of $10 million to $50 million. The petitions were signed by Duane H. Lund, chief manager. FALLS AT TOWNE: Sec. 341 Creditors' Meeting Set for Aug. 15 ----------------------------------------------------------- The United States Trustee for the District of Minnesota will hold a Meeting of Creditors pursuant to Sec. 341(a) of the Bankruptcy Code in the Chapter 11 cases of The Falls at Towne Crossing, LLC, and Geneva Multi-Family Exchange XIV on Aug. 15, 2011, at 1:30 p.m. at Mtg Minneapolis - US Courthouse, 300 S 4th St 10th Floor. The last day to object to discharge is Oct. 14, 2011. Proofs of claim are due in the case by Nov. 14, 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 The Falls at Towne Crossing and Geneva Multi-Family Exchange XIV Geneva Multi-Family Exchange XIV LLC owns the 336-unit Falls at Towne Crossing apartment project in Mansfield, Texas. Geneva Multi-Family Exchange XIV and affiliate The Falls at Towne Crossing, LLC, c/o Exchange Realty Inc., based in Minneapolis, Minnesota, filed separate Chapter 11 bankruptcy petitions (Bankr. D. Minn. Case Nos. 11-44562 and 11-44563) on July 5, 2011. Judge Dennis D. O'Brien presides over the case. Michael L. Meyer, Esq., and the law firm of Ravich Meyer Kirkman McGrath Nauman & Tansey, PC, serves as the Debtor's bankruptcy counsel. Geneva Multi-Family Exchange XIV LLC disclosed $25.5 million in assets and $24.3 million in debts in its petition. Falls at Towne Crossing estimated assets and debts of $10 million to $50 million. The petitions were signed by Duane H. Lund, chief manager. FEC RESOURCES: Posts C$3.2 Million Net Loss in 2010 --------------------------------------------------- FEC Resources Inc. filed on July 15, 2011, its annual report on Form 20-F for the fiscal year ended Dec. 31, 2010. The Company reported a net loss of C$3.2 million for 2010, compared with a net loss of C$1.2 million for 2009. The Company did not generate any revenue for 2010 and 2009. The Company's balance sheet at Dec. 31, 2011, showed C$2.6 million in total assets, C$386,740 in total liabilities, all current, and stockholders' equity of C$2.2 million. "We have experienced significant operating losses and cash outflows from operations in the years ended Dec. 31, 2010, 2009 and 2008, and have no producing properties. Our ability to continue as a 'going concern' is dependent on achieving profitable operations and upon obtaining additional financing. The outcome of these matters cannot be predicted at this time." A copy of the Form 20-F is available at http://is.gd/8Erp0q Prior to May 18, 2005, FEC Resources Inc. owned 66 2/3% of Forum Exploration, Inc. ("FEI") a Philippine-based oil and gas company. On May 18, 2005, the Company sold its interest in FEI to Forum Energy Plc ("FEP") for shares of FEP and cash. The Company currently holds 25.63% of the issued and outstanding capital of FEP, and in addition it holds a 35% interest in Metalore Mining Corporation ("MMC"), a Philippine-based company that holds the rights to a 64 hectare license which has been abandoned. The Company also owns a 40% interest in MPSA 148, a gold exploration project, through Lascogon Mining Corporation in the Philippines. The Company is engaged in the acquisition, exploration, and, when warranted, development of natural resource and mineral properties. Although it currently is not the operator with respect to interests it holds, it is actively seeking projects where its involvement would be more than management and advisory. The Company is currently focused on the development of one (1) mineral license in the Philippines. The license is held by Lascogon Mining Corporation which was acquired from Philex Gold Philippines Inc., a subsidiary of Philex Mining Corporation, its largest shareholder. The Company's head office is located at 46 Royal Ridge Rise NW, Calgary, Alberta T3G 4V2. FIGUEROA TOWER: Files for Chapter 11 Protection ----------------------------------------------- Dow Jones' DBR Small Cap reports that Milbank Real Estate's Figueroa Tower skyscraper in Los Angeles has filed for bankruptcy protection, the fourth of the real-estate investor's trophy commercial properties to enter Chapter 11 in recent years. FLOWER FACTORY: Urges Creditors to Vote for Reorganization Plan --------------------------------------------------------------- CantonRep.com reports that Flower Factory has sent letters to creditors asking for their votes of support for a reorganization plan. "We are pleased that as a result of the negotiations we have had with our lenders and the Creditors Committee (which represents the interests of unsecured trade creditors), we have submitted a Plan of Reorganization that will end the Chapter 11, allow us to emerge from the process as an operating company and that we think is a much preferable alternative to a liquidation or sale of the business," the report quotes Christopher Mulqueen, the Flower Factory's vice president and chief operating officer, as saying. The report says the confirmation hearing for the plan of reorganization will take place Aug. 11 in bankruptcy court, according to Marc Merklin, an attorney with Brouse McDowell in Akron, representing the Flower Factory. Based in North Canton, Ohio, Flower Factory Inc. filed for Chapter 11 bankruptcy protection (Bank. N.D. Ohio. Case No. 11-60406) on Feb. 15, 2011. Judge Russ Kendig presides over the case. Marc Merklin, Esq., Brouse McDowell LPA, represents the Debtor. The Debtor estimated assets of between $1 million and $10 million, and debts of between $10 million and $50 million. FREE CLEAR: Meeting of Creditors Continued Until July 28 -------------------------------------------------------- The U.S. Trustee for Region 17 has continued until July 28, 2011, at 12:00 p.m., the meeting of creditors in the Chapter 11 case of Free and Clear Holding Company III LLC. As reported in the Troubled Company Reporter on June 14, the U.S. Trustee set a June 30 for the meeting of creditors at 341s - Foley Bldg., Room 1500. Free and Clear Holding Company III LLC, based in Las Vegas, Nevada, filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-18289) on May 27, 2011. Judge Bruce A. Markell presides over the case. The Law Offices of Christina Ann-Marie DiEdoardo serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Garth Johnson, managing member. GEO POINT: Hansen Barnett Raises Going Concern Doubt ---------------------------------------------------- Geo Point Technologies, Inc., filed on July 14, 2011, its annual report on Form 10-K for the fiscal year ended March 31, 2011. Hansen, Barnett & Maxwell, P.C., in Salt Lake City, expressed substantial doubt about Geo Point Technologies' ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses and negative cash flows from operating activities since inception, has negative working capital and an accumulated deficit, and is dependent on additional debt or equity financing in order to continue its operations. The Company reported a net loss of $793,136 on $1.06 million of revenues for fiscal 2011, compared with a net loss of $9,691 on $0 revenue for fiscal 2010. The Company's balance sheet at March 31, 2011, showed $6.08 million in total assets, $2.30 million in total liabilities, and stockholders' equity of $3.78 million. A copy of the Form 10-K is available at http://is.gd/PoUyKq Salt Lake City-based Geo Technologies, Inc., owns and operates an oil refinery in Karatau, Kazakhstan, that refines crude oil into diesel fuel, gasoline, and mazut, a heating oil. GLAZIER GROUP: Creditors Panel Wants Settlement Agreement Denied ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 case of The Glazier Group, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to disapprove the settlement among the Debtor, D'Arrigo Food Service, Inc., Foodland Distributors, Inc., and certain of the Debtor's non-debtor affiliates. As reported in the Troubled Company Reporter on July 6, 2011, the Debtor sought permission from Judge Allan L. Gropper of the Court to enter into a settlement agreement with D'Arrigo Food Service, Inc. and Foodland Distributors, Inc. In January 2009, D'Arrigo and Foodland commenced an action in the U.S. District Court for the Southern District of New York against the Debtor and certain of the Debtor's affiliates, directors and employees, asserting a claim against the PACA Defendants for $209,212 for alleged violations of the Perishable Agricultural Commodities Act in connection with the sale and delivery of fresh fruits and vegetables to certain of the Debtor's Affiliates' restaurants. Both D' Arrigo and Foodland have filed proofs of claim in the Debtor's Chapter 11 Case, asserting secured claims for $278,265 -- Claim No. 26 -- and $47,467 -- Claim No. 27. The Parties entered into a formal agreement settling all claims and disputes between the Parties with these salient terms: * D'Arrigo's claims are recognized as qualified under the PACA Trust in the principal amount of $179,000, and D' Arrigo will receive payment by check in a single, lump-sum payment by the earlier of the date the Debtor's Plan of Reorganization is approved by the Court or Sept. 30, 2011; * Foodland's claims are recognized as qualified under the PACA Trust in the principal amount of $30,000, and Foodland will receive payment by check in a single, lump-sum payment by the earlier of the date the Debtor's Plan of Reorganization is approved by the Court or September 30, 2011; and * D'Arrigo and Foodland will execute a general release covering all P ACA Defendants. The Settlement Agreement provides for a speedy resolution of two secured claims and fixes these secured claims at roughly 65% of the total amounts claimed by D'Arrigo and Foodland in the Chapter 11 Case. The Debtor believes that the resolution of the claims at an approximate 35% discount is beneficial to its estate and will obviate the need for additional legal costs which would otherwise be expended in fixing those claims. The Committee explains that the settlement which provides for the reduction of D'Arrigo's claim from $278,265 to $179,000, and Foodland's claim from $47,467 to $30,000 appears reasonable and well within the acceptable parameters for settlements in the Court. However, the Committee objects to the mutual releases by D'Arrigo, Foodland, and all of the PACA Defendants, which is prohibited by applicable case law. The motion, according to the Committee fails to demonstrate or explain why the Debtor's estate must pay the full amount due under the Settlement Agreement, without contribution from the other PACA Defendants. The settlement agreement also impermissibly provides for a distribution to certain creditors before plan confirmation which is unfair to the unsecured creditors in the case. On June 21, the Debtor represented to the Court that within the next few weeks it will be consummating a sale of assets of certain of its non-debtor affiliates, and thereafter filing a plan of reorganization. In light of that representation, the Committee respectfully submits that the prudent course would be to deny approval of the settlement at this time, and consider the settlement in conjunction with the confirmation of a chapter 11 plan. About The Glazier Group New York-based The Glazier Group, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-16099) on Nov. 15, 2010. Frederick E. Schmidt, Esq., Joshua Joseph Angel, Esq., and Seth F. Kornbluth, Esq., at Herrick, Feinstein LLP, represent the Debtor in its restructuring effort. The Company disclosed assets of $15.2 million and liabilities of $26.8 million as of the Petition Date. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three creditors to serve on an Official Committee of Unsecured Creditors. The Committee tapped SilvermanAcampora LLP as its counsel. GLAZIER GROUP: Asks Court to Approve Disclosure Statement --------------------------------------------------------- The Glazier Group, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to approve the disclosure statement explaining their plan of reorganization and proposed procedures governing the solicitation of votes on the plan. The plan and accompanying disclosure statement were filed on July 12, 2011. Joshua J. Angel, Esq., at Herrick, Feinstein LLP, in New York -- jangle@herrick.com -- asserts that the disclosure statement contains adequate information, of a kind and in sufficient detail, as far as is reasonably practicable in light of the nature and history of the Debtor and the conditions of the Debtor's books and records. The Debtor proposes to transmit, after approval of the disclosure statement, to creditors and equity interest holders solicitation packages containing the plan, the disclosure statement, notice of time within which acceptances and rejections of the plan may be filed, and other information as the court may direct. The ballots will be distributed to holders of allowed claims and interest in Class 2 Joint Legacy claims and Class 3 Unsecured Claims, the only impaired classes entitled to vote to accept or reject the Plan. Equity interests in the Debtor, classified as Class 5 under the Plan, will receive no distributions under the Plan and are deemed to have rejected the Plan. Class 1 Claim of the Debtor's secured lender, General Electric Credit Corporation, and Class 4 Affiliate Claims are unimpaired and conclusively deemed to have accepted the Plan. The highlights and benefits of the Plan are: * The Plan provides for the reorganization and recapitalization of the Debtor. Under the Plan, the Debtor will be reorganized and emerged from Chapter 11 with a de-levered capital structure. * The Debtor believes that the Plan will enable it to emerge from Chapter 11 as a viable business in concert with the Debtor's remaining affiliates. * GECC's allowed secured claim will be paid in full in cash from the proceeds of the sale of the Debtor's assets. * Holders of Joint Legacy Claims will be paid in accordance with the terms set forth in separate stipulations settling the Claims entered into by and between the Debtor and Restaurant Affiliates and each holder of a Joint Legacy Claim. * Holders of Allowed Unsecured Claims will receive a cash distribution equal to 20% of the amount of those Claims, payable in four equal quarterly installments commencing on the Effective Date. The recovery, according to Mr. Angel, is significantly greater recovery than those creditors would receive if the Debtor was liquidated under Chapter 7 of the Bankruptcy Code. * Allowed Administrative Claims, Priority Tax Claims, and Non Tax Priority Tax Claims will be paid in full. * On the Effective Date, the Equity Holders, as holders of 100% of the membership interests in the Restaurant Affiliates, will transfer all membership interests to the reorganized Debtor, Glazier Holdings, LLC. In consideration thereof, the Equity Holders will receive new equity interests comprising 100% of the equity interests in Glazier Holdings, LLC. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?767c About The Glazier Group New York-based The Glazier Group, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-16099) on Nov. 15, 2010. Frederick E. Schmidt, Esq., Joshua Joseph Angel, Esq., and Seth F. Kornbluth, Esq., at Herrick, Feinstein LLP, represent the Debtor in its restructuring effort. The Company disclosed assets of $15.2 million and liabilities of $26.8 million as of the Petition Date. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three creditors to serve on an Official Committee of Unsecured Creditors. The Committee tapped SilvermanAcampora LLP as its counsel. GLOBAL INVESTOR SERVICE: RBSM LLP Raises Going Concern Doubt ------------------------------------------------------------ Global Investor Service, Inc., filed on July 14, 2011, its annual report on Form 10-K for the fiscal year ended March 31, 2011. RBSM LLP, in New York, expressed substantial doubt about Global Investor Service's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a net accumulated deficiency as of March 31, 2011. The Company reported a net loss of $9.97 million on $2.01 million of revenues for fiscal 2011, compared with a net loss of $7.10 million on $1.14 million of revenues for fiscal 2010. The Company's balance sheet at March 31, 2011, showed $1.54 million in total assets, $6.18 million in total liabilities, and stockholders' deficit of $4.64 million. A copy of the Form 10-K is available at http://is.gd/pgQV1D Orem, Utah-based Global Investor Service, Inc., was incorporated in the state of Nevada on Aug. 1, 2005. Effective Sept. 18, 2006, the Company changed its name to TheRetirementSolution.com, Inc., and on Oct. 1, 2008, the Company changed its name to Global Investor Services, Inc. The Company was initially formed to market portfolios of stocks via subscription. In 2007, a new chief executive officer was installed and a strategy was developed to create and market a diverse portfolio of products and services for the financial education and financial information industry. This strategy included strategic acquisitions, such as the acquisitions of Razor Data, LLC, and Investment Tools and Training, LLC, which have provided the Company with an integrated platform in which it can market and deliver investor education products and investor services. The stock symbol is GISV. GP WEST: Bufete Roberto Approved as Bankruptcy Attorneys -------------------------------------------------------- The Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico authorized GP West, Inc., to employ Bufete Roberto Corretjer Piquer as its bankruptcy lawyers. As reported in the Troubled Company Reporter on July 5, 2011, the Debtor said that it is not sufficiently familiar with the law to be able to plan and conduct the Chapter 11 proceedings without competent legal counsel. The Debtor has provided BRCP a $50,000 retainer, against which the law firm will bill on the basis of $175 per hour, plus expenses, for work performed or to be performed by Roberto Corretjer Piquer, Eduardo J. Corretjer Reyes, and any associates and $75 for paralegals. BRCP served as pre-bankruptcy outside general counsel for GP West, its affiliate Swiss Chalet Inc., GP West's shareholder, Camape S.E., and GP West's director, Pedro Feliciano Benitez. Eduardo J. Corretjer Reyes, Esq., an associate at BRCP, attested that his firm is a disinterested person as defined in 11 U.S.C. Sec. 101(14). About GP West GP West, Inc., based in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-04954) on June 9, 2011. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultant. In its schedules, the Debtor disclosed $13,384,251 in assets and $132,825,590 in debts. The petition was signed by Jose Teixidor Mendez, president. GP WEST: Has Deal for Cash Collateral Access Until Nov. 30 ---------------------------------------------------------- GP West, Inc., asks the U.S. Bankruptcy Court for the District of Puerto Rico to approve a stipulation with CPG/GS PR NPL LLC, as purchaser and successor in interest of certain assets of First Bank Puerto Rico including, among others, credit facilities pursuant to the loans of approximately $10 million made by FBPR to Debtor. The Debtor requires the use of cash collateral to satisfy operating expenses pending the approval and consummation of the sale of certain assets and other approved expenses until Nov. 30, 2011. As of June 9, 2011, the outstanding principal balance claimed by CPG/GS under the loan agreements was approximately $8,272,539 (pending reconciliation) plus accrued and unpaid interest. To secure certain of Debtor's obligations to FBPR, on Dec. 19, 2007, the Debtor subscribed certain Deed of Mortgage, deed number 105 of Michele Rachid Pi¤eiro, granting FBPR, the right to receive the proceeds and rents generated by Debtor's non-residential real property. The stipulation provides for, among other things: 1. CPG/GS consents to the Debtor's limited use of certain of CPG/GS's cash collateral to satisfy certain operating expenses. 2. The Debtor is not authorized to use cash collateral for any expenditure other than the permitted expenditures, nor beyond the stipulation end date, with a variance of 10% of the budgeted amounts, in the aggregate. 3. The monthly payments to CPG/GS, from the cash, receivables collections, and other revenues received by Debtor during the previous month from Debtor's operations, in excess of its operating costs. Therefore, the monthly payments to be made by Debtor to CPG/GS as adequate protection will be (i) an initial payment of $85,000 on Aug. 1; and thereafter (ii) any cash on hand in the accounts of the Debtor in excess of $12,000 as of the last day of each month. The payments will be applied to the principal balance of CPG/GS secured claim. 4. the Debtor also grants CPG/GS a replacement lien and a postpetition security interest on all of the assets and collateral acquired by Debtor after the Petition Date, as entered into prepetition, to the same extent and priority, and on the same types of property, as CPG/GS's liens and security interests in the prepetition Collateral and a superpriority administrative claim status. 5. As additional adequate protection: -- the Debtor agrees that upon the consummation of any sale of Debtor's current real property or future real property acquired with the proceeds of the sale of Debtor's current real property, all of the net proceeds of such sale will be paid immediately and indefeasibly to CPG/GS for its benefit at the closing of the sale(s) in an amount equivalent to the outstanding balance of the loans, plus any postpetition interest and charges that may have accrued to the extent permitted by the Bankruptcy Code, after deducting all and any sales related costs previously approved by CPG/GS; -- the Debtor will grant CPG/GS access to monitor its debtor- in-possession accounts and the payments and deposits made therein or therefrom; -- the postpetition collateral under the replacement liens and the prepetition collateral will all serve as cross-collateral for the loans and any and all other amounts disbursed by CPG/GS to Debtor under the financing agreements. CPG/GS is represented by: David P. Freedman, Esq. Hermann D. Bauer, Esq. O'NEILL & BORGES American International Plaza 250 Mu¤oz Rivera Avenue, Suite 800 San Juan, Puerto Rico 00918-1813 Tel: (787) 764-8181 Fax: (787) 753-8944 E-mail: David.Freedman@oneillborges.com Hermann.bauer@oneillborges.com About GP West GP West, Inc., based in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-04954) on June 9, 2011. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultant. In its schedules, the Debtor disclosed $13,384,251 in assets and $132,825,590 in debts. The petition was signed by Jose Teixidor Mendez, president. No trustee or examiner has been appointed in this Chapter 11 case, and no official committee of creditors or otherwise has been appointed or designated. HARVEST OAKS: Can Access Cash Collateral Until July 31 ------------------------------------------------------ On July 6, 2011, the U.S. Bankruptcy Court for the Eastern District of North Carolina entered its tenth interim order authorizing Harvest Oaks Drive Associates, LLC, to use cash collateral of CSMC 2006-C Strickland Road, LLC, for its post- petition, necessary and reasonable operating expenses, as agreed to by the parties for the period July 1, 2011, to July 31, 2011. CSMC 2006-C Strickland Road and its special servicer, LNR Partners, Inc., are referred to in the order as the "Secured Lender." It will be a default under the Cash Collateral Order for any one or more of the following to occur: a. the Debtor will fail to comply with any of the terms or conditions of the Cash Collateral Order; b. the Debtor will fail to maintain insurance on the properties or will fail to name Secured Lender as loss payee on that insurance policy; c. the Debtor will use cash collateral other than as permitted by the Cash Collateral Order; or d. appointment of a trustee or examiner in the Debtor's bankruptcy proceeding, or the conversion of the Debtor's case to a proceeding under Chapter 7 of the Bankruptcy Code. On July 1, 2011, the Debtor will pay to Secured Lender as adequate protection an amount equal to the total balance of the DIP general account as of June 30, 2011, less the sum of any advance rents received and any outstanding checks for budgeted expenses. On Aug. 1, 2011, the Debtor will pay to Secured Lender as adequate protection an amount equal to the total balance of the DIP general account as of July 31, 2011, less the sum of any advance rents received and any outstanding checks for budgeted expenses. If the Debtor's Plan is not confirmed prior to Aug. 31, 2011, then on Sept. 1, 2011, the Debtor will pay pay to Secured Lender as adequate protection an amount equal to the total balance of the DIP general account as of Aug. 31, 2011, less the sum of any advance rents received and any outstanding checks for budgeted expenses. The Debtor will segregate and disclose to Secured Lender all advance rents promptly following receipt. Secured Lender is granted a first priority, perfected lien in all post-petition rents, income, and other proceeds of the Property, but only to the same extent as Secured Lender has a first priority, perfected lien in such collateral pre-petition. A further hearing on the use of cash collateral will be heard on Aug. 8, 2011, at 10:00 a.m. 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. HAWAII MEDICAL: Committee Opposes $14 Million Loan From MidCap -------------------------------------------------------------- Hawaii Medical Center, et al., ask the U.S. Bankruptcy Court for the District of Hawaii for authorization, on an interim basis, to obtain postpetition financing of up to $14 million from MidCap Financial, LLC, and enter into a postpetition amendment to the Prepetition MidCap Revolving Loan Agreement dated Aug. 17, 2010. The Debtors relate that the postpetition financing is necessary to enable them to operate their businesses and to preserve the Debtors' going concern value. The DIP Facility will be secured by valid court-authorized (a) first priority perfected priming security interests and liens in (i) all now existing and hereafter acquired pre-petition and post- petition First Lien Collateral, and (ii) subject to the approval set forth in a DIP Order, proceeds from all causes of action under Chapter 5 of the Bankruptcy Code, (b) junior security interests (subject only to the prior perfected security interests of St. Francis) in the Second Lien Collateral, (c) first priority security interests in all encumbered property, and (d) all proceeds and products of the foregoing. The DIP Liens will be accorded super-priority administrative claim priority status under Section 364(c)(1) of the Bankruptcy Code. The Debtors also request the Bankruptcy Court for authorization to use cash collateral, subject to the DIP Budget, and the interim order upon this Motion. The significant terms of the DIP Facility are: Borrower : Hawaii Medical Center, Hawaii Medical Center East, and Hawaii Medical Center West DIP Lender : MidCap Financial LLC Senior DIP Credit Facility : Senior secured debtor-in-possession revolving credit facility to provide ongoing working capital requirements and, if authorized under any DIP Order, to pay in full the Existing Indebtedness. Maximum Loan Amount : $14,000,000 Term : The earlier of (a) 12 months from entry of the Interim Order approving the DIP Facility; or (b) the occurrence of a DIP Credit Facility Termination Event. Interest : payable monthly in arrears at an annual rate of 30-day, reserve adjusted, LIBOR (subject to a 2.50% floor) plus 5.50%, reset monthly. A copy of the Motion is available at: http://bankrupt.com/misc/hawaiimedical.DIPFacilityMotion.pdf The Official Committee of Unsecured Creditors opposes the motion. The Committee objects on the following grounds: a) The transactions could just as easily be accomplished outside of the chapter 11 process. The only purpose of these Chapter 11 cases appears to be to eliminate in their entirety the claims of general unsecured creditors for the benefit of the Prepetition Lenders, while preserving preference and other avoidance claims against unsecured creditors also for the benefit of the Prepetition Lenders. b) The Proposed Plan is neither "consensual,"nor is it in the best interest of the Debtors or their estates or creditors. The Proposed Plan offers nothing to the holders of general unsecured claims. c) The primary purpose of the DIP Financing appears to be to fill any possible "holes"in the Prepetition Lenders' collateral positions and pre-ordain the Proposed Plan. d) The DIP Lender receives many extraordinary or inappropriate protections in return for the purported "benefits"to the estate of the DIP Financing. e) St. Francis -- which is advancing no funds toward the Debtors' operations and whose primary asserted collateral is not even cash collateral but is the real estate -- is given even more extraordinary and inappropriate grants under the DIP Facility. About Hawaii Medical Center The Hawaii Medical Center, along with its affiliates, filed for Chapter 11 bankruptcy (Bankr. D. Hawaii Lead Case No. 11-01746) on June 21, 2011, just a year after exiting court protection. Hawaii Medical Center owns two hospital campuses -- HMC East in North Honolulu and HMC West in Ewa Beach. The two hospitals have 342 licensed beds and have a total of more than 1,000 employees. The hospitals were known as St. Francis Medical Center before Hawaii Medical purchased the hospitals in 2007. Judge Robert J. Faris presides over the 2011 case. Lawyers at Moseley Biehl Tsugawa Lau & Muzzi, in Honolulu, Hawaii, and McDonald Hopkins LLC, in Cleveland, Ohio, serve as the Debtors' counsel. The Debtors' financial advisors are Scouler & Company, LLC. In its petition, Hawaii Medical Center estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petitions were signed by Kenneth J. Silva, member of the board of directors. Attorneys at Wagner Choi & Verbrugge, in Honolulu, Hawaii, and Pachulski Stang Ziehl & Jones LLP, in Los Angeles, represent the Official Committee of Unsecured Creditors as counsel. The Debtors' prepetition debt structure is comprised of (i) the Prepetition Revolving Loan with MidCap Financial, LLC, and the Prepetition Term Loan with St. Francis Healthcare Systems of Hawaii. As of the petition Dte, the aggregate outstanding principal on the Prepetion MidCap Revolving Loan and the Prepetition St. Francis Term Loan is approximately $46,851,772. The principal balance of the Prepetion MidCap Revolving Loan is approximately $7,676,495. The amount owed under the Prepetition St. Francis Term Loan is approximately $39,175,277, secured by St. Francis's first priority lien on, among other things, all real property of the Debtors. Through this Chapter 11 filing, the Debtors plan to return the hospitals to the control of St. Francis. In the prior case, HMC and its affiliated debtors were converted to new, Hawaii non-profit corporations. CHA Hawaii, one of HMC's affiliated debtors and a subsidiary of Cardiovascular Hospitals of America, LLC, discontinued management of the reorganized Debtors. Wichita, Kansas-based CHA Hawaii LLC, and its affiliates -- including Hawaii Medical Center LLC -- filed for Chapter 11 protection on Aug. 29, 2008 (Bankr. D. Del. Case No. 08-12027). Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their restructuring efforts. CHA Hawaii estimated assets of up to $10 million and debts between $50 million and $100 million when it filed for bankruptcy. The Debtors obtained confirmation of their Chapter 11 plan in May 2010 and emerged from bankruptcy in August 2010. HB LOGISTICS: Truck McGriff in Chapter 11 One Year After Buyout --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Trucker McGriff Transportation, which was purchased by the current owners in March 2010, filed for Chapter 11 protection a week ago in Decatur, Alabama. Formally named HB Logistics LLC, the company operates 160 tractors and 400 trailers in the U.S. Southeast and Midwest. Based in Cullman, Alabama, McGriff generated $26 million of revenue during the last 10 months of 2010. Secured lenders are owed $11.5 million. Another $1 million is owing to unsecured creditors, court papers say. "This is a planned reorganization, and the good news is that it was not a knee-jerk reaction," the Cullman Times quotes McGriff Transportation CFO Conner Burns as saying. "We have a plan for going in and a plan for getting out, and we have funding secured. We're altering the business model somewhat as we go forward, and typically this process lasts between six months to a year." The Cullman Times notes HB Logistics bought McGriff Transportation from the McGriff family of Cullman in March of 2010 and continued to operate under the McGriff Transportation name. HB Logistics Inc., filed a Chapter 11 petition (Bankr. N.D. Ala. Case No. 11-82362) on July 8, 2011. Stuart M. Maples, Esq., at Maples & Ray, PC, in Huntsville, Alabama, serves as counsel to the Debtor. The Debtor estimated assets of up to $10 million and debts of $10 million to $50 million in its Chapter 11 petition. A case summary for HB Logistics is in the July 13, 2011 edition of the Troubled Company Reporter. HINGHAM CAMPUS: Says Appointment of Mediator is Not Necessary ------------------------------------------------------------- Hingham Campus, LLC, and Linden Ponds, Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas their objection to Sovereign Bank's motion for order directing mediation. The Debtors say that the appointment of a mediator is not necessary or warranted in the Chapter 11 cases. The Debtor relate that on June 8, 2011, the Debtors and the Consenting Holders entered into the Restructuring, Lockup, Plan Support and Forbearance Agreement (the Lockup Agreement). Pursuant to the Lockup Agreement, the Consenting Holders, which entities hold approximately 62% of the Series 2007 A Bonds and approximately 40% of all of the 2007 Bonds, have agreed to support and vote in favor of the Debtors' Joint Plan of Reorganization, filed contemporaneously with the filing of the Chapter 11 cases. The Debtors explain that the mediation would require them to breach the Lockup Agreement. A breach of the Lockup Agreement would necessarily result in the loss of support of one of the largest constituencies in the chapter 11 cases and would require the Debtors to renegotiate a consensual plan and, subsequently, re-solicit votes to approve such plan. This process would cause a substantial delay, increase costs to the Debtors' estates and create concern amongst the Debtors' residents which could result in lower absorption rates or residents deciding to leave the Debtors' continuing care retirement community. The Debtors intend to continue to engage in settlement discussions with the bank. Despite the Bank's protestations tothe contrary, the Lock-up Agreement provides the Debtors with sufficient flexibility to reach a settlement with the bank without losing the support of the Consenting Holders who have signed the Lock-up Agreement. Thus, this is a two-party negotiation that does not require the involvement of the Consenting Holders. The hearing on confirmation of the Plan is scheduled to begin on Aug. 18, 2011. The Debtors intend to continue to pursue good faith negotiations with the Bank up until the confirmation hearing (if necessary) in order to attempt to reach a consensual resolution of the outstanding issues. About Hingham Campus Linden Ponds Inc. operates a 108-acre continuing care retirement community located at 300 Linden Ponds Way in Hingham, Massachusetts. The facility has 988 independent living units (with an occupancy rate of 87.9%) and 132 skilled nursing beds (68% occupancy rate). Linden Ponds leases the facility and the property upon which it is built from Hingham Campus LLC. Hingham is the owner of the facility and owns the fee simple interest in the property upon which the facility is built. Senior Living Retirement Communities, LLC, formerly known as Erickson Retirement Communities, LLC, owns 100% of the membership interests in Hingham. Hingham Campus and Linden Ponds filed a pre-negotiated Chapter 11 petition (Bankr. N.D. Tex. Lead Case No. 11-33912) in Dallas on June 15, 2011. Hingham Campus estimated assets and debts of $100 million to $500 million. Debt includes $156.4 million owing on bonds issued by the Massachusetts Development Finance Agency, with Wells Fargo Bank, National Association, as the bond trustee. Erickson Retirement Communities sought bankruptcy protection (Bankr. N.D. Tex. Case No. 09-37010) on Oct. 19, 2009. Erickson, the owner of 20 senior living facilities, won approval of its reorganization plan in April 2010. The Erickson plan provided for a sale to Redwood Capital, the highest bidder at the auction in December 2009. Redwood won the auction with an all-cash bid of $365 million. Attorneys at DLA Piper LLP (US) represent Hingham in the Chapter 11 case. Attorneys at McGuire, Craddock & Strother, P.C., and Whiteford, Taylor And Preston, L.L.P., represent Linden Ponds. HORIZON VILLAGE: Files For Chapter 11 Bankruptcy Protection ----------------------------------------------------------- Steve Green at Vegas Inc. reports that four associated Las Vegas companies file for Chapter 11 bankruptcy protection. The companies are: * Horizon Village Square LLC, owner of the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. * Ten Saints LLC, owner of the 134-room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. * Beltway One Development Group LLC, owner of the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. * Nigro HQ LLC, owner of an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. According to the report, these businesses are owned or managed by local business people and firms including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Vegas Inc. notes that a fifth related business, Russell Boulder LLC, filed for bankruptcy in October. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Vegas Inc. relates that Todd Nigro said the four bankruptcies Wednesday were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to- value ratios at specified levels. For instance, in the Horizon Village Square case, Nigro said the company was current on its payments but Wells Fargo demanded a $1.64 million payment to reduce the loan balance to $9.36 million to keep the ratio at less than 80%. The bankruptcy filings estimated assets and liabilities that were unspecified but ranged from $1 million to $10 million each for Nigro HQ; and more than $10 million apiece in both assets and liabilities for Horizon Village, Ten Saints and Beltway One. HORIZON VILLAGE: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Horizon Village Square LLC 9115 W. Russel Road, Suite 210 Las Vegas, NV 89148 Bankruptcy Case No.: 11-21034 Affiliates that simultaneously sought Chapter 11 protection: Debtor Case No. ------ -------- Beltway One Development Group LLC 11-21026 Nigro HQ LLC 11-21014 Ten Saints LLC 11-21028 Chapter 11 Petition Date: July 13, 2011 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtors' Counsel: Candace C. Clark, Esq. Gerald M. Gordon, Esq. GORDON SILVER 3960 Howard Hughes Parkway, 9th Floor Las Vegas, NV 89169 Tel: (702) 796-5555 Fax: (702) 369-2666 E-mail: bankruptcynotices@gordonsilver.com Horizon Village's Estimated Assets: $10,000,001 to $50,000,000 Horizon Village's Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Todd A. Nigro, manager of Nigro Development LLC, manager of Debtor. Affiliate that previously sought Chapter 11 protection: Petition Debtor Case No. Date ------ -------- ---- Russell Boulder, LLC 10-29724 10/19/10 Horizon Village Square's List of Seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Ellsworth Gilman $2,500 Johnson & Stout LLC Attn: Managing Member 7881 W. Charleston Blvd Suite 155 Las Vegas, NV 89117 Real Cleaning $1,361 Attn: Managing Member 10152 Climbing Lily St. Las Vegas, NV 89183 Total Safety Inc. $825 Attn: Managing Member 9555 Del Webb Blvd. Las Vegas, NV 89134-8317 EDS Electronics $750 Nevada Illumination Inc. $473 Webco Sweeping $387 JS Pest Control $131 IMPERIAL CAPITAL: Disclosures Okayed; Aug. 12 Ballot Deadline Set ----------------------------------------------------------------- On June 28, 2011, the U.S. Bankruptcy Court for the Southern District of California entered an order approving the Company's Second Amended Disclosure Statement regarding the Company's Amended Chapter 11 Liquidating Plan of Reorganization, dated April 15, 2011. The deadline for creditors to vote on the Plan is Aug. 12, 2011. In the Order, the Bankruptcy Court scheduled a hearing on confirmation of the Plan for Sept. 22, 2011, at 10:30 a.m. A copy of the Disclosure Statement is available at http://is.gd/PPmhTS As described in the Disclosure Statement, if the Plan is confirmed by an order of the Bankruptcy Court, based upon assets available for distribution, creditors of the Company will not be paid in full under the Plan. Consequently, the Company predicts that, after payment to the Company's unsecured creditors, there will be no assets available for distribution to the holders of the Company's common stock. With no available assets to distribute to stockholders, as contemplated in the Plan, the Company expects the Bankruptcy Court to extinguish the Company's common stock upon approval of the Plan. As reported in the TCR on June 21, 2011, the U.S. Bankruptcy Court signed an order in the Imperial Capital Bancorp case declaring the Debtors' Disclosure Statement "not approved because Debtor's counsel has not lodged an order and this order is not approved as to form." The order continues, "While court is sympathetic that Debtor may miss its confirmation hearing deadline, Debtor had ample opportunity to lodge an order and chose not to do so. If the confirmation hearing must be continued, a hearing date/time is available on 8/25/11 at 10:30 a.m.; however, Debtor must contact the courtroom deputy to confirm this date." About Imperial Capital Bancorp La Jolla, California-based Imperial Capital Bancorp, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Calif. Case No. 09-19431) on Dec. 18, 2009. Gregory K. Jones, Esq., at Stutman, Treister & Glatt, P.C., serves as the Company's bankruptcy counsel. FTI Consulting Inc. serves as its financial advisor. The Company disclosed $40,439,363 in assets and $98,721,610 in liabilities. Tiffany L. Carroll, the U.S. Trustee for Region 15, appointed three members to the official committee of unsecured creditors in the Debtor's case. The Debtor's proposed Liquidating Plan of Reorganization provides that based upon assets available for distribution, creditors of the Company will not be paid in full under the Plan. The Company predicts that, after payment to the Company's unsecured creditors, there will be no assets available for distribution to the holders of the Company's common stock. IMPERIAL PETROLEUM: Annalee Wilson Resigns as Director ------------------------------------------------------ Imperial Petroleum, Inc., announced that Annalee Wilson has resigned as a Director of the Company and has been replaced by Ben Campbell until the next regularly schedule shareholders meeting. "We're happy to welcome Ben to the Board as an independent director. Ben is a petroleum engineer and has over 35 years of experience in the oil and gas business including public company management experience," said Jeffrey T. Wilson, President of Imperial. About Imperial Petroleum Headquartered in Evansville, Ind., Imperial Petroleum Inc. (OTC BB: IPMN) operates as a diversified energy and mineral mining company in the United States. It oil and natural gas properties include the Coquille Bay field located in Plaqumines Parish, Louisiana; the Haynesville field located in Claiborne and Webster Parishes in north Louisiana; the Bastian Bay field located in Plaquemines parish, Louisiana; LulingField located in Guadalupe county, Texas; and the Shrewsbury field in Grayson County and the Claymour field in Todd County, western Kentucky. The Company's balance sheet at April 30, 2011, showed $20.01 million in total assets, $28.03 million in total liabilities and a $8.02 million total stockholders' deficit. As reported by the TCR on June 24, 2011, the Company anticipates its current working capital will not be sufficient to meet its required capital expenditures and that the Company will be required to either access additional borrowings from its lender or access outside capital. Currently the Company projects it will require non-discretionary capital expenditures of approximately US$500,000 in the next fiscal year to re-establish and maintain economic levels of production at Coquille Bay. Without access to such capital for non-discretionary projects, the Company's production may be significantly curtailed or shut in and jeopardize its leases. INSIGHT GLOBAL: Moody's Raises Corporate Family Rating to 'B1' -------------------------------------------------------------- Moody's Investors Service upgraded Insight Global, Inc.'s corporate family rating to B1 from B2 and affirmed the probability of default rating at B2. Moody's also assigned a B1 rating to the proposed amended/extended credit agreement, consisting of a revolving credit facility and term loan. The company is seeking to amend the terms of the existing term loan, extending the maturity to 2017 from 2016 and issuing an incremental $41 million term loan. In addition, the company will reduce the revolving credit facility commitment to $20 million from $27.5 million and extend the maturity date to 2016. The ratings outlook remains stable. Ratings assigned: -- Proposed amended $20 million senior secured revolving credit facility due 2016 at B1 (LGD3, 34%); -- Proposed amended $157 million senior secured term loan due 2017 at B1 (LGD3, 34%). Rating upgraded: -- Corporate family rating to B1 from B2. Rating affirmed: -- Probability of default rating at B2. Ratings affirmed and to be withdrawn at transaction closing: -- Existing senior secured revolving credit facility due 2016 at B1 (LGD3, 39%); -- Existed senior secured term loan due 2016 at B1 (LGD3, 39%). RATINGS RATIONALE The upgrade of Insight Global's corporate family rating reflects favorable organic revenue and earnings growth trends that have resulted in improved leverage and interest coverage as well as Moody's expectation that this trend will continue. Insight Global's revenue increased approximately 49% in 2010, supported by growth from new and existing locations, and year-to- date revenue trends remain strong. Because of earnings growth, leverage (as measured by debt to EBITDA and including Moody's standard analytical adjustments) has declined to approximately 4.0 times from an initial level of 5.0 times when Harvest Partners purchased the business in mid-2010. Moody's expects this metric to approach 3.5 times by 2011 year-end. The upgrade also reflects Moody's expectation that the company could withstand deterioration in demand, if that were to occur, given its highly variable cost structure and the counter-cyclical nature of its cash flows. Proceeds from the incremental term loan and revolving credit facility borrowings will be used to redeem the company's $36 million subordinated debt due 2017 (unrated) and to pay fees and expenses. The stable outlook reflects Moody's expectation that Insight Global will sustain double-digit revenue growth and maintain its current level of operating margins such that debt to EBITDA is reduced below 4.0 times near-term. The rating also reflects Moody's expectation that the company will generate modest free cash flow and that it will maintain an adequate liquidity profile. While Insight Global's relatively moderate scale constrains the rating, in the event that it increases its relative scale and sustainably reduces debt to EBITDA below 3.0 while generating positive free cash flow, the ratings could be upgraded. A positive action would also require that the company demonstrate a track- record of conservative policy. The ratings could be pressured if the weak environment causes Insight Global's growth trends to reverse, such that debt to EBITDA is sustained above 4.5 times. Continued negative cash flow could also pressure the ratings. The ratings are subject to the conclusion of the transactions, as proposed, and Moody's review of final documentation. Additional information can be found in the Insight Global Credit Opinion published on Moodys.com. The principal methodology used in rating Insight Global Inc was the Global Business & Consumer Service Industry methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Insight Global, headquartered in Atlanta, Georgia, is a specialized provider of temporary and project professionals in the field of information technology. Affiliates of Harvest Partners purchased the company in 2010. IQT SOLUTIONS: Laying Off, Not Paying Workers --------------------------------------------- Newschannel5.com reports that metro government laid out the red carpet to bring a company to downtown Music City, in Nashville, Tennessee, but new information is putting that company in a different light. IQT solutions, a Canadian company, said it would be setting up its U-S headquarters on 2nd Avenue South in Nashville, according to the report. The report relates that the company has received a city grant worth $1.6 million. However, the report notes, several Canadian news outlets are reporting that they have closed several call centers, laying off people without paying them, and some reports say they have declared bankruptcy and gone into receivership. JACKSON GREEN: Creditors Seek Case Dismissal -------------------------------------------- Wells Fargo Bank, N.A., and MCZ Development Corporation are separately seeking dismissal of Jackson Green, LLC's second bankruptcy case within the last 2-1/2 years. Wells Fargo, which is the Trustee for the Registered Holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2006-C4, argues that the order confirming the plan of reorganization in the prior case expressly provided that Wells Fargo is entitled to foreclosure on the Debtor's properties if the Debtor defaulted under the Original Plan. Wells Fargo says the Debtor filed for bankruptcy to stay a pending foreclosure proceeding in Cook County, Illinois. The Chapter 22 case was filed on the eve of a hearing seeking the appointment of a receiver in that Foreclosure Action. MCZ Development is a Class 7 creditor under the Original Plan. Pursuant to the terms and conditions of that Plan, the Debtor was required to execute certain documents and take certain steps which the Debtor has neglected and failed to do despite repeated requests from MCZ. MCZ wants the Bankruptcy Court to: -- dismiss the chapter 11 case; or, alternatively -- modify the automatic stay to permit MCZ to reopen the Debtor's prior Chapter 11 case and obtain the Debtor's compliance with the terms of the original Plan of Reorganization confirmed in that case May 18, 2010. MCZ contends the Debtor lacks the ability to successfully reorganize. MCZ asserts that sufficient cause exists to require the dismissal of the case under 11 U.S.C. Sec. 1112(b), and that the case is essentially a single asset or two asset real estate case. Wells Fargo is represented by: Jill L. Nicholson, Esq. Joanne Lee, Esq. FOLEY & LARDNER LLP 321 North Clark Street, Suite 2800 Chicago, IL 60654 Tel: (312) 832-4500 Fax: (312) 832-4700 E-mail: jnicholson@foley.com - and - Erik G. Weidig, Esq. FOLEY & LARDNER LLP 777 E Wisconsin Avenue Milwaukee, WI 53202 Tel: (414) 297-5509 Fax: (414) 297-4900 E-mail: eweidig@foley.com MCZ is represented by: Randi L. Osberg, Esq. RUDER WARE, L.L.S.C. 402 Graham Avenue P.O. Box 187 Eau Claire, WI 54702-0187 Tel: 715-834-3425 Fax: 715-834-9240 About Jackson Green Based in Minocqua, Wisconsin, Jackson Green LLC owns a commercial office building and parking lot in Chicago. Jackson Green originally filed for Chapter 11 bankruptcy (Bankr. W.D. Wis. Case No. 09-10099) on Jan. 9, 2009. The Court confirmed the Debtor's chapter 11 plan on May 18, 2010. Jackson Green returned to bankruptcy (Bankr. W.D. Wis. Case No. 11-14038) on June 23, 2011. Judge Thomas S. Utschig presides over the so-called Chapter 22 case. The Law Office of Terrence J. Byrne serves as the Debtor's Chapter 22 counsel. In its schedules, the Debtor disclosed $25,194,530 in assets and $22,838,968 in liabilities. The petition was signed by Paula Heyes, member. JACKSON GREEN: Files Schedules of Assets and Liabilities -------------------------------------------------------- Jackson Green LLC filed with the Bankruptcy Court its schedules of assets and liabilities, disclosing: Name of Schedule Total Assets Total Liabilities ---------------- ------------ ----------------- A - Real Property $25,000,000 B - Personal Property $194,530 C - Property Claimed as Exempt N/A D - Creditors Holding Secured Claims $22,378,360 E - Creditors Holding Unsecured Priority Claims $0 F - Creditors Holding Unsecured Nonpriority Claims $460,608 ------------ ----------------- Total $25,194,530 $22,838,968 About Jackson Green Based in Minocqua, Wisconsin, Jackson Green LLC owns a commercial office building and parking lot in Chicago. Jackson Green originally filed for Chapter 11 bankruptcy (Bankr. W.D. Wis. Case No. 09-10099) on Jan. 9, 2009. The Court confirmed the Debtor's chapter 11 plan on May 18, 2010. Jackson Green returned to bankruptcy (Bankr. W.D. Wis. Case No. 11-14038) on June 23, 2011. Judge Thomas S. Utschig presides over the so-called Chapter 22 case. The Law Office of Terrence J. Byrne serves as the Debtor's Chapter 22 counsel. The petition was signed by Paula Heyes, member. Secured lender Wells Fargo is represented by lawyers at Foley & Lardner LLP. JACKSON GREEN: Hires Byrne Law Office as Bankruptcy Counsel ----------------------------------------------------------- Jackson Green LLC seeks Bankruptcy Court permission to employ the Law Office of Terrence J. Byrne as its bankruptcy counsel under a general retainer. Mr. Byrne charges $275 per hour. Mr. Byrne attests that his firm has no adverse interest to the Debtor's estate. About Jackson Green About Jackson Green Based in Minocqua, Wisconsin, Jackson Green LLC owns a commercial office building and parking lot in Chicago. Jackson Green originally filed for Chapter 11 bankruptcy (Bankr. W.D. Wis. Case No. 09-10099) on Jan. 9, 2009. The Court confirmed the Debtor's chapter 11 plan on May 18, 2010. Jackson Green returned to bankruptcy (Bankr. W.D. Wis. Case No. 11-14038) on June 23, 2011. Judge Thomas S. Utschig presides over the so-called Chapter 22 case. In its schedules, the Debtor disclosed $25,194,530 in assets and $22,838,968 in liabilities. The petition was signed by Paula Heyes, member. Secured lender Wells Fargo is represented by lawyers at Foley & Lardner LLP. JACKSON GREEN: Sec. 341 Creditors' Meeting Set for Aug. 3 --------------------------------------------------------- The United States Trustee will convene a Meeting of Creditors in the bankruptcy case of Jackson Green LLC on Aug. 3, 2011, at 2:00 p.m. at Wausau Meetings. 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 Jackson Green Based in Minocqua, Wisconsin, Jackson Green LLC owns a commercial office building and parking lot in Chicago. Jackson Green originally filed for Chapter 11 bankruptcy (Bankr. W.D. Wis. Case No. 09-10099) on Jan. 9, 2009. The Court confirmed the Debtor's chapter 11 plan on May 18, 2010. Jackson Green returned to bankruptcy (Bankr. W.D. Wis. Case No. 11-14038) on June 23, 2011. Judge Thomas S. Utschig presides over the so-called Chapter 22 case. The Law Office of Terrence J. Byrne serves as the Debtor's Chapter 22 counsel. In its schedules, the Debtor disclosed $25,194,530 in assets and $22,838,968 in liabilities. The petition was signed by Paula Heyes, member. Secured lender Wells Fargo is represented by lawyers at Foley & Lardner LLP. JASMINE PLACE: Condo Complex in Receivership -------------------------------------------- The Los Angeles Times reports that an upscale condominium complex that opened in 2009 in the heart of Little Saigon in Westminster has been placed in receivership and converted to apartments. The 136-unit development has been renamed Jasmine Place. The four-story complex has a French-inspired design with Asian overtones and was originally valued at more than $57 million, receiver Taylor B. Grant said, according to LA Times. The property was developed by Moran Property Limited Partnership and Asian Gardens II. Eight condo owners remain in the complex at 15100-15200 Moran St. Western National Property Management has been hired to manage and lease the other units, said Grant, who heads Newport Beach-based Real Estate Receiverships, the report notes. The LA Times says that the complex will officially reopen July 19. JOURNAL REGISTER: Alden Acquires Business 2 Years After Exit ------------------------------------------------------------ Alden Global Capital has purchased Journal Register Company, according to the latter's Web site. "This is a great vote of confidence from Alden in our strategy and the work of our employees who I want to personally thank for their efforts during this turnaround. While we clearly have more work to do, our strategy is fast becoming a model for the future of journalism that can properly serve local communities and be economically self-sustaining and profitable," said John Paton, Journal Register Company's Chief Executive Officer. "With Alden's support of our Digital First strategy we look forward to expanding our Company going forward." Since emerging from bankruptcy protection in August 2009, and under the new leadership, the Journal Register Company has been transformed into an innovative, digitally focused multi-media company. It has doubled its digital audience in the past year and is growing its digital revenues at approximately 70% (Q1/11), which is about seven times greater than the newspaper industry average in the first quarter of 2011. The Company's Digital First strategy, which is centered on developing innovative, cost-effective methods for creating, distributing and monetizing content on multiple platforms while reducing legacy costs tied to print, turned the company from bankrupt in 2009 to an EBITDA of $41 million in 2010. While details of the transaction were not disclosed, all lenders have been paid in full as well receiving the equity consideration paid by Alden. The transaction was unanimously approved by the Journal Register Company's Board of Directors. About Journal Register Yardley, Pennsylvania-based Journal Register Company (PINKSHEETS: JRCO) -- http://www.JournalRegister.com/-- owns 20 daily newspapers, more than 180 non-daily publications and operates over 200 individual Web sites that are affiliated with the Company's daily newspapers, non-daily publications and its network of employment Web sites. All of the Company's operations are strategically clustered in six geographic areas: Greater Philadelphia; Michigan; Connecticut; Greater Cleveland; and the Capital-Saratoga and Mid-Hudson regions of New York. The Company also owns JobsInTheUS, a network of 20 employment Web sites. Journal Register, along with its affiliates, filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 09-10769) on Feb. 21, 2009. Marc Abrams, Esq., Rachel C. Strickland, Esq., Shaunna D. Jones, Esq., and Jennifer J. Hardy, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors as counsel. William M. Silverman, Esq., Scott L. Hazan, Esq., and Jeanette A. Barrow- Bosshart, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C., represent the official committee of unsecured creditors as counsel. Conway, Del Genio, Gries & Co., LLC, provides restructuring management services to the Debtors. Robert P. Conway is the Company's chief restructuring officer. At the time of the filing, the Company estimated its assets at less than $500 million in and $500 million to $1 billion in total debts. Journal Register emerged from Chapter 11 protection under the terms of a pre-negotiated plan of reorganization declared effective in August 2009. KEENE BROTHERS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Keene Brothers, Inc. 4946 Land O' Lakes Blvd Land O Lakes, FL 34639 Bankruptcy Case No.: 11-13257 Chapter 11 Petition Date: July 13, 2011 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: David W. Steen, Esq. DAVID W. STEEN, P.A. 13902 N. Dale Mabry Hwy., Suite 110 Tampa, FL 33618 Tel: (813) 251-3000 Fax: (813) 251-3100 E-mail: dwsteen@dsteenpa.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb11-13257.pdf The petition was signed by Daniel Keene, president. KEYSTONE SURPLUS: Chapter 7 Trustee Can Amend Suit v. Principal --------------------------------------------------------------- Chief Bankruptcy Judge Stephen Raslavich authorized Robert H. Holber, the Chapter 7 Trustee of Keystone Surplus Metals, Inc., d/b/a Keystone Specialty Metals, Inc., to amend a lawsuit against the Debtor's principal to avoid and recover certain prepetition transfers. The principal objects on various grounds, primarily untimeliness. The suit is Robert H. Holber, Trustee, v. Albert Kauffman, Adv. Proc. No. 11-0278 (Bankr. E.D. Pa.). A copy of the Bankruptcy Court's July 14, 2011 Opinion is available at http://is.gd/khcbxdfrom Leagle.com. About Keystone Surplus Metals Headquartered in Bensalem, Pennsylvania, Keystone Surplus Metals Inc., dba Keystone Specialty Metals Inc. -- http://www.keystonespecialtymetals.com-- offered home furnishing services. The Debtor filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case No. 08-16450) on October 3, 2008. David A. Kasen, Esq. -- dkasen@kasenlaw.com -- at Kasen Kasen & Braverman, served as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. On March 22, 2010, the U.S. Trustee filed a motion to convert Keystone's Chapter 11 case to a Chapter 7 case because Keystone had failed to: (1) file its operating report for the month of February of 2010; and (2) pay any quarterly fees to the United States Trustee for the fourth quarter of 2009. On March 30, 2010, the Court entered an Order granting the U.S. Trustee's motion. On May 14, 2010, the Chapter 7 Trustee filed a Motion to Sell Debtor's Business Assets Free and Clear of Interests, Claims and Encumbrances Pursuant to 11 U.S.C. Sec. 363. The Chapter 7 Trustee explained that "[w]hile Wachovia holds a lien against the Assets, it has agreed to pay from the Net Proceeds of the auction the allowed administrative expenses of the Trustee and his counsel plus an additional five percent of the Net Proceeds to be paid to unsecured creditors." KMC REAL ESTATE: Court Grants Control of Assets to RL BB Financial ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Indiana granted secured creditor RL BB Financial, LLC, relief from stay on KMC Real Estate Investors, LLC's assets. The relief from stay is effective on July 25, 2011, at the close of business. RL BB Financial requested for (i) relief from stay, (ii) dismissal of the Debtor's Chapter 11 case for lack of good faith; or (iii) abstention. James P. Moloy represented RL BB Financial, LLC. About KMC Real Estate Investors LLC Clarksville, Indiana-based KMC Real Estate Investors LLC owns certain real property located in Clark County, Indiana, commonly known as 4601 Medical Plaza Way, Clarksville, Indiana. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No. 11-90930) on April 1, 2011. Gary Lynn Hostetler, Esq., Courtney Elaine Chilcote, Esq., and Jeffrey A. Hokanson, Esq., at Hostetler & Kowalik, P.C., serve as the Debtor's bankruptcy counsel. The Debtor disclosed it has undetermined assets and $24,810,090 in liabilities as of the Chapter 11 filing. Affiliate Kentuckiana Medical Center, LLC, previously sought Chapter 11 protection (Bankr. S.D. Ind. Case No. 10-93039) on Sept. 9, 2010. KNOLLWOOD PROPERTIES: Case Summary & Largest Unsecured Creditor --------------------------------------------------------------- Debtor: Knollwood Properties II, LLC 67 Mill Street Rhinebeck, NY 12572 Bankruptcy Case No.: 11-36998 Chapter 11 Petition Date: July 13, 2011 Court: United States Bankruptcy Court Southern District of New York (Poughkeepsie) Judge: Cecelia G. Morris Debtor's Counsel: Thomas Genova, Esq. GENOVA & MALIN, ATTORNEYS Hampton Business Center 1136 Route 9 Wappingers Falls, NY 12590-4332 Tel: (845) 298-1600 Fax: (845) 298-1265 E-mail: genmallaw@optonline.net Scheduled Assets: $2,195,610 Scheduled Debts: $2,663,673 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Mark Graminski $15,000 13 Elm Street Red Hook, New York 12571 The petition was signed by Frank Stortini, member. KTLA LLC: Files Schedules of Assets & Liabilities ------------------------------------------------- KTLA LLC with the U.S. Bankruptcy Court for the Northern District of California, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------- ----------- A. Real Property $25,500,000 B. Personal Property $43,987 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $18,553,388 E. Creditors Holding Unsecured Priority Claims $206,789 F. Creditors Holding Unsecured Non-priority Claims $38,210 ----------- -------------- TOTAL $25,543,987 $18,798,387 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. LA BOTA DEVELOPMENT: Gets Court OK to Enter Into Insurance Premium ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Texas authorized La Bota Development Company, Inc., and Laredo Rock Tech Sand & Gravel, LP, to enter into insurance premium finance agreement with Premium Financing Specialists, Inc. As reported in the Troubled Company Reporter on June 27, 2011, La Bota's current general insurance policy expired June 15, 2011, according to Simon Mayer, Esq., at Hughes WattersAskanase, LLP, in Houston, Texas. Mr. Mayer related that after due deliberation and consideration of viable alternatives, the Debtor determined that it is in the best interest of its estate to finance its general liability policy premiums through PFS. In the ordinary course of business, the Debtor must maintain various insurance policies, including a general liability policy, which covers the Debtor's real property located in Webb County, Texas, he says. Mr. Mayer said the Debtor cannot presently obtain an insurance coverage unless the premiums are financed, and Bank Midwest, N.A., the Debtor's lender, is granted a security interest in the unearned premiums and other sums which may become payable under those policies. The total cash price for the insurance premiums is $5,507. PFS will finance the remaining $3,943 insurance policy premiums at an 17.20 annual percentage rate ($287) provided: i. The Debtor pays the $1,564 down payment, which the Debtor has paid. ii. The $4,231 remaining balance will be paid in nine monthly payments of $470, with the first payment due on June 30, 2011. iii. The Debtor grants PFS a security interest in any unearned premiums or other sums which may become payable under the insurance policies to secure payment of all amounts due under the Agreement. About La Bota Development Sugar Land, Texas-based La Bota Development Company, Inc., is a real estate development company that owns and sells residential and commercial real estate to developers. It also owns a mobile home park in Nueces County, Texas and a mini-storage facility in Harris County, Texas. La Bota filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10-20376) on May 3, 2010. The Company estimated $50 million to $100 million in assets and $10 million to $50 million in liabilities in its petition. Debtor-affiliate Laredo Rock Tech Sand & Gravel, L.P., mines, extracts and sells sand and gravel in Webb County, Texas. Laredo Rock filed a separate petition for Chapter 11 bankruptcy protection on May 3, 2010 (Bankr. S.D. Tex. Case No. 10-20377). In its petition, the Debtors disclosed assets of $1,244,770 and debts of $1,501,506. The cases are jointly administered under Case No. 10-23076. LAMBUTH UNIVERSITY: To Pay Out Remaining Employees $4,156 --------------------------------------------------------- Tajuana Cheshier at the Jackson Sun reports that a judge granted an emergency motion to pay nine hourly Lambuth University employees. The total amount to be paid out is $4,156. According to the report, school officials are expected to appear in court at 9:30 a.m. Wednesday to discuss case management of its creditors and at 2 p.m. Aug. 10. The report notes the City of Jackson, Jackson Energy Authority, Madison County and West Tennessee Healthcare have offered to purchase the campus for $7.9 million, which is $2 million more than the initial offer and $1.5 million less than Lambuth's counter-proposal. Jackson Mayor Jerry Gist said the cost includes $100,000 in legal and other fees. Mayor Gist said each stakeholder would pay $2 million in the new proposal. Lambuth has accepted the proposal of the stakeholders. Lambuth filed for Chapter 11 protection on the same day (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. LEE ENTERPRISES: Fails to Comply with NYSE's Listing Standards -------------------------------------------------------------- Lee Enterprises, Incorporated, has been notified by the New York Stock Exchange that its 30-trading-day average share price has fallen below the $1.00 minimum standard and will need to cure the deficiency within six months for continued listing. In a letter dated July 8, 2011, the NYSE noted that as of July 1, 2011, the 30-trading-day average closing price of Lee common stock was $0.99. The LEE stock symbol will be assigned a ".BC" indicator to denote that the company is below compliance with listing standards. Under the NYSE rules related to the average share price, Lee common stock is allowed to continue to be listed on the exchange during a six-month cure period. Mary Junck, Lee chairman and chief executive officer, said Lee will provide the NYSE with an outline of its plans to return to compliance, beginning with steps to refinance its $1.0 billion of debt before maturity in April 2012. The NYSE determination has no impact on Lee's debt agreements. "We are in substantive and productive discussions with key lenders about an extension of our credit agreement and fully expect a satisfactory outcome, though the process will likely take several months." she said. "We believe that investor sentiment will improve when questions about our refinancing are resolved, especially as our revenue outlook strengthens." She said same property revenue for Lee's third fiscal quarter ended June 26, 2011, is expected to total 4.2 percent below a year ago "with significant improvement in the month of June." She added: "Fourteen of our markets reported positive year-over-year revenue in June, with several showing better than 5 percent gains. Still, our progress toward overall revenue growth continues to be slowed by the uncertainty of a still-lagging economy." She said Lee's cost outlook also continues to improve. For Lee's 2011 fiscal year, which ends in September, despite the increased cost of newsprint, the latest forecast is for operating expenses, excluding depreciation, amortization and unusual matters, to decrease approximately 3 percent in the June 2011 quarter and 4-5 percent in the quarter ending Sept. 25, 2011. Cash costs for the 2012 fiscal year are expected to decrease another 1-2 percent from the 2011 level. Carl Schmidt, Lee vice president, chief financial officer and treasurer, said Lee expects to record an impairment charge related to the recent decline in its stock price when it reports results on August 5. The charge has no impact on cash flows, but will reduce reported earnings, resulting in a loss for the quarter. He said that depending on the amount of the charge, Lee also may be in noncompliance with the NYSE minimum stockholders' equity and market capitalization standard. If the company's stockholders' equity falls below $50 million at the same time its market capitalization remains below $50 million, he said, the NYSE would likely notify Lee of its noncompliance with this continued listing standard, as well, which would require a separate, longer cure period for this potential issue. Stockholders' equity at the end of March 2011 totaled $77.7 million. The impairment testing is being performed in accordance with generally accepted accounting principles, which, among other factors, require consideration of differences between current book value and the fair value of all of the company's assets, including current market capitalization. About Lee Enterprises Based in Davenport, Iowa, Lee Enterprises, Incorporated -- http://www.lee.net/-- is a premier provider of local news, information and advertising in primarily midsize markets, with 49 daily newspapers and a joint interest in four others, rapidly growing online sites and more than 300 weekly newspapers and specialty publications in 23 states. Lee's newspapers have circulation of 1.5 million daily and 1.8 million Sunday, reaching four million readers daily. Lee stock is traded on the New York Stock Exchange under the symbol LEE. The Company's balance sheet at March 27, 2011, showed $1.40 billion in total assets, $1.32 billion in total liabilities, and $77.65 million in total equity. * * * As reported by the Troubled Company Reporter on April 14, 2011, Standard & Poor's Ratings Services Lee Enterprises its preliminary 'B' corporate credit rating. S&P also said, "At the same time, we assigned our preliminary 'B' rating (the same as the corporate credit rating) to the company's offering of $675 million first- priority lien senior secured notes due 2017 with a preliminary recovery rating of '3', indicating our expectation of meaningful (50%-70%) recovery for lenders in the event of a payment default. We also rated the company's second-priority lien senior secured notes due 2018 a preliminary 'CCC+', with a preliminary recovery rating of '6', indicating negligible (0%-10%) recovery for lenders." The TCR on April 13, 2011, said Moody's Investors Service assigned first time ratings to Lee Enterprises, including a Caa1 Corporate Family Rating (CFR), Caa1 Probability of Default Rating (PDR) and SGL-3 speculative-grade liquidity rating. Moody's also assigned a B1 rating to the company's proposed $50 million 5-year senior secured first-lien first-out revolver, a B3 rating to its proposed $675 million senior secured first-lien notes maturing 2017, and a Caa2 rating to its proposed $375 million senior secured second- lien notes maturing 2018. The rating outlook is stable. LEHMAN BROTHERS: JPM Reserves Rights for Jury Trial --------------------------------------------------- JPMorgan Chase Bank N.A. reserved its right to a review of Lehman Brothers Holdings Inc.'s lawsuit in U.S. District Court and a trial by jury, according to a July 7, 2011 report by Bloomberg News. LBHI sued JPMorgan early last year to recover billions of dollars that the bank allegedly seized as collateral. JPMorgan defended itself by arguing that it was protected by so-called safe harbor law when it took the collateral. JPMorgan said it has a right to have the issues reviewed "de novo" by a district court and to seek a jury trial "in any case, controversy or proceeding related" to the lawsuit, Bloomberg News reported. In a related development, LBHI filed a revised scheduling order, which sets a timetable for the conduct of investigation and the filing of court papers in connection with the lawsuit. A full-text copy of the proposed scheduling order dated July 11, 2011, is available for free at: http://bankrupt.com/misc/LBHI_JPMorgan4thAmSchedOrder.pdf k. 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) LEXICON UNITED: Completes Acquisition of Accres Global ------------------------------------------------------ A Special Meeting of the directors of Accres Holding, Inc., formerly known as Lexicon United Incorporated, was held on July 15, 2011, at 10:00 a.m. At said meeting, the directors appointed Jerry Gruenbaum as the Company's General Counsel and Corporate Secretary. At said meeting, Edward Meijers, the Chairman and CEO stated that the acquisition approved by the shareholders of Accres Holding on July 11, 2011, has been completed on July 15, 2011, to acquire Accres Global AG, from Vela Heleen Holding GMBH and ZUG Investment Group AG. An Amendment and Restatement of the Acquisition Agreement was also executed on July 15, 2011. Accres Global AG is engaged in the trade in rough and polished diamonds. They have a unilateral, non-negotiable contract with Accres Mineral Trading BVBA, based in the diamonds city of Antwerp and with Mostland International FZC, based in Dubai, the United Arab Emirates Under both the Original and Amended Agreement the Company purchased from the Sellers Accres Global AG for 8,875,021 Series B Preferred Shares of Lexicon, each Preferred Shares is convertible to ten Common Shares of the Company and have the voting power equal to ten Common Shares of the Company. Under both the Original and Amended Agreement, Jerry Gruenbaum, Esq., a licensed attorney and the Company's Secretary and counsel has been appointed as Escrow Agent to complete the acquisition. The escrow agent has received from the Sellers in his IOLTA- Lawyers Trust Account with JPMorgan Chase Bank, N.A., US$110,000, for the benefit of the Company to be used to pay audit fees in the United States and Brazil for the benefit of the Company to bring the Registrant current in its filings with the U.S. Securities and Exchange Commission. The Company and the Sellers agreed to use the services of a qualified accounting firm in Brazil and a PCAOB qualified auditing firm in the U.S. for those services. Under both the Original and Amended Agreement, the Company has delivered to the Escrow Agent a note for US$40,000 payable to the order of Elie Saltoun or his assign which note will be paid by the Company US$10,000 per month by wire transfer to the Escrow Agent's IOLTA-Lawyers Trust Account with JPMorgan Chase Bank, N.A., for four consecutive months, first payment due one month from the closing date. The Saltoun Note is secured by the Lexicon Shares held in escrow by the Escrow Agent. Under both the Original and Amended Agreement, the Company has delivered to the Escrow Agent a note for US$30,000 payable to the order of Prime Atlas LLC or its assign which note will be paid US$10,000 per month by wire transfer to the Escrow Agent's IOLTA- Lawyers Trust Account with JPMorgan Chase Bank, N.A., for three consecutive months, first payment due one month after the Saltoun Note is paid off. The Atlas Note is secured by the Lexicon Shares held in escrow by the Escrow Agent. The Company agreed to spin-off its existing subsidiaries United Oil Services, Inc., and Engepet Energy Enterprises, Inc., and any and all other existing assets and operations of the Company existence prior to the Agreement to Elie Saltoun or his assigns. Under the Amended Agreement, US$10,000 from the funds held by the escrow agent for the benefit of the Company will be paid to Nannarone Law Group, PC, to pay the legal fees for the spinoff. Under the Amended Agreement, the parties agreed that any and all deposits, escrow amounts or accounts receivable, related to business conducted or actions undertaken by the Company prior to the Amended Agreement, if returned or paid to the Company after the Closing Date is the personal property of Elie Saltoun solely. At said meeting, the directors approved and amended the Company's Bylaws to reflect the Company's change of name from Lexicon United Incorporated to Accres Holding, Inc. No other changes were made to the Bylaws. The directors took notice that the Certificate of Amendment of Certificate of Incorporation filed by the Company's Secretary with the Delaware Division of Corporations in Dover, Delaware on July 11, 2011, was officially recorded by the Delaware Division of Corporations on July 11, 2011 at 11:31am EST. About Lexicon United Austin, Tex.-based Lexicon United Incorporated and its subsidiary, ATN Capital e Participacoes Ltd., a Brazilian limited company, are engaged in the business of purchasing, managing and collecting defaulted consumer receivables for its own account and managing, collecting and servicing portfolios of defaulted and charged-off account receivables for large financial institutions in Brazil. These receivables are acquired from consumer credit originators, primarily credit card issuers in Brazil. As reported in the Troubled Company Reporter on May 25, 2010, Meyler & Company, LLC, in Middletown, N.J., expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2009 results. The independent auditors noted that the Company continues to have negative cash flows from operations, recurring losses from operations, and has a stockholders' deficit. The Company's balance sheet at Sept. 30, 2010, showed $3.02 million in total assets, $3.11 million in total liabilities, and a stockholders' deficit of $86,505. LITHIUM TECHNOLOGY: Provides Battery Cells for Volkswagen --------------------------------------------------------- Lithium Technology Corporation announced that it provided battery cells to Volkswagen through its wholly-owned subsidiary, GAIA Akkumulatorenwerke GmbH, as part of a project involving various parties, including Volkswagen and sponsored by the German Ministry of the Environment. The project is called "Fleet study in electric mobility" and was presented on 28 June 2011 in Berlin. Initiated in July 2008, the project runs until June 2012 and aims to consistently utilize renewable energy sources for electrically powered vehicles. Volkswagen is providing a total of twenty of its Golf Variant tw‹nDRIVE plug-in hybrid electric cars as research vehicles involved in the project. The Golf Variant tw‹nDRIVE is enabled to travel distances of up to 57 km (35 miles) on pure electrical power and has an additional small internal combustion engine which provides for a total range of travel of about 900 km (559 miles). The German federal government is targeting one million electric vehicles in Germany by 2020. Ten of the Volkswagen fleet test vehicles are powered by the GAIA battery cells. The GAIA battery (302V, nominal useable capacity 37 Ah per cell) consists of 86 cells and offers an energy capacity of 11.2 kWh. GAIA has also worked together with Volkswagen on the integration of the battery cells with the Battery Management System (BMS). The battery cells used by the Volkswagen vehicles have been produced at LTC's manufacturing facility located in Nordhausen, Germany. Martin Koster, President and Chief Operating Officer of LTC, comments: "We are very pleased that Volkswagen has chosen to work with GAIA on this important project. We believe that this underlines the performance and quality of our technology which we intend to develop further together with Volkswagen and other automotive OEMs. The automotive sector is in the focus of our activities and we expect growth of this market." About Lithium Technology Plymouth Meeting, Pa.-based Lithium Technology Corporation is a mid-volume production stage company that develops large format lithium-ion rechargeable batteries to be used as a new power source for emerging applications in the automotive, stationary power, and national security markets. The Company reported a net loss of $7.25 million on $6.35 million of products and services sales for the year ended Dec. 31, 2010, compared with a net loss of $10.51 million on $7.37 million of product and services sales during the prior year. $7 Mil. Funding Needed As reported by the TCR on April 8, 2011, the Company entered into a number of financing transactions and is continuing to seek other financing initiatives. The Company said it will need to raise additional capital to meet its working capital needs and to complete its product commercialization process. Such capital is expected to come from the sale of securities and debt financing. The Company believes that if it raises approximately $7 million in debt and equity financings, the Company would have sufficient funds to meet its needs for working capital and capital expenditures and to meet expansion plans during 2011. If the Company is not able to raise such additional capital, the Company will assess all available alternatives including a sale of the Company's assets or merger, the suspension of operations and possibly liquidation, auction, bankruptcy, or other measures. The Company's balance sheet at March 31, 2011, showed $9.96 million in total assets, $36.06 million in total liabilities and a $26.10 million total stockholders' deficit. Going Concern As reported by the TCR on April 8, 2011, Amper, Politziner & Mattia, LLP, Edison, New Jersey, after auditing the Company's financial statements for the year ended Dec. 31, 2010, noted that the Company has recurring losses from operations since inception and has a working capital deficiency that raise substantial doubt about its ability to continue as a going concern. In the Form 10-Q, the Company acknowledged that as of March 31, 2011, it had an accumulated deficit of approximately $158,555,000. The Company has financed its operations since inception primarily through equity financings, loans from shareholders and other related parties, loans from silent partners and bank borrowings secured by assets. The Company has recently entered into a number of financing transactions and are continuing to seek other financing initiatives. The Company will need to raise additional capital to meet its working capital needs and to complete its product commercialization process. Such capital is expected to come from the sale of securities and debt financing. Continuation of the Company's operations in the future is dependent upon obtaining consent from the lenders to extend the respective maturity date of the debentures. LOS ANGELES DODGERS: Seeks to Tap Blackstone as Investment Banker ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Los Angeles Dodgers baseball club is seeking permission to hire Blackstone Advisory Services LP to be the team's investment banker. On top of a $175,000 monthly fee, New York-based Blackstone would earn a $7 million fee when a reorganization plan is consummated. Mr. Rochelle also reports that the U.S. Trustee filed papers on July 15 opposing approval of $150 million in financing the Dodgers are proposing to be loaned by Highbridge Principal Strategies LLC, an affiliate of JPMorgan Chase & Co. The Justice Department's bankruptcy watchdog contends the team hasn't made full disclosure about $4.5 million in fees that Frank McCourt, the team's owner, would be obliged to pay as a breakup fee if the Highbridge loan isn't given final approval. Bud Selig, the commissioner of Major League Baseball, is offering $150 million in unsecured financing on what he says are better terms than Highbridge's. The financing hearing will take place July 20. Mr. Selig, according to the report, filed papers on July 15 contending the team is unfairly discriminating against two senior executives who were fired. While the team seeks authority to honor severance obligations for everyone else, Mr. Selig argues the two senior executives aren't being treated the same because the Dodgers don't propose to fulfill their severance agreement immediately. 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: MLB Offers Longer Repayment Terms ------------------------------------------------------ Kaitlin Ugolik at Bankruptcy Law360 reports that Major League Baseball on Thursday enhanced its bid to finance the Los Angeles Dodgers during its time in Delaware bankruptcy court by offering a longer repayment that would allow the team time to negotiate a new TV contract with Fox. According to Law360, John McHale, an MLB executive vice president, said in a declaration Thursday that if the Dodgers go with the MLB loan, they can have until Nov. 30, 2012, to pay it off, instead of the June 27, 2012, due date stipulated in the original bankruptcy filing. 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. LV KAPOLEI: Carlsmith Ball OK'd to Aid in Declaration Enforcement ----------------------------------------------------------------- The Hon. Robert J. Faris of the U.S. Bankruptcy Court for the District of Hawaii authorized LV Kapolei 54, LLC to employ Carlsmith Ball, LLP, as special counsel. As reported in the Troubled Company Reporter on July 6, 2011, the Debtor, as the declarant and project coordinator of Kapolei Business Park, Phase I, requires assistance of legal counsel with regard to the enforcement of declaration. The Debtor will pay Carlsmith firm's fees and expenses in the ordinary course from the maintenance fees collected from the owners of Phase I without the necessity of seeking Court approval of the fees and expenses. Mark k. Murakami Esq., a partner at Carlsmith firm, assured the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About LV Kapolei 54, LLC San Francisco, California-based LV Kapolei 54, LLC, is the declarant and project coordinator of Kapolei Business Park, Phase 1. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Hawaii Case No. 11-00981) on April 8, 2011. James A. Wagner, Esq., at Wagner Choi & Verbrugge, serves as the Debtor's bankruptcy counsel. The Company disclosed $35,162,973 in assets and $23,955,318 in liabilities as of the Chapter 11 filing. No committee of unsecured creditors has been appointed in the case. LYONDELL CHEMICAL: Ex-Workers Fight to Keep $10-Mil. Race Claims ---------------------------------------------------------------- Christie Smythe at Bankruptcy Law360 reports that two former employees of a Lyondell Chemical Co. affiliate fighting to preserve a $10 million race discrimination suit accused the company Thursday of trying to mislead a New York bankruptcy judge about their efforts. Law360 says the workers, Frederick Royster and Scott Miller, lodged a scathing reply to a debtor filing concerning the claims, saying that the company's alleged misrepresentations warranted sanctions. About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. Luxembourg-based Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the USUS$12.7 billion merger. Len Blavatnik's Access Industries owned the Company prior to its bankruptcy filing. On Jan. 6, 2009, LyondellBasell Industries' U.S. operations, led by Lyondell Chemical Co., and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities filed for Chapter 11. Luxembourg-based LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 protection on April 24, 2009. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, served as the Debtors' bankruptcy counsel. Evercore Partners served as financial advisors, and Alix Partners and its subsidiary AP Services LLC, served as restructuring advisors. AlixPartners' Kevin M. McShea acted as the Debtors' Chief Restructuring Officer. Clifford Chance LLP served as restructuring advisors to the European entities. LyondellBasell emerged from Chapter 11 bankruptcy protection in May 2010, with a plan that provides the Company with US$3 billion of opening liquidity. A new parent company, LyondellBasell Industries N.V., incorporated in the Netherlands, is the successor of the former parent company, LyondellBasell Industries AF S.C.A., a Luxembourg company that is no longer part of LyondellBasell. LyondellBasell Industries N.V. owns and operates substantially the same businesses as the previous parent company, including subsidiaries that were not involved in the bankruptcy cases. LyondellBasell's corporate seat is Rotterdam, Netherlands, with administrative offices in Houston and Rotterdam. MAGNUM HUNTER: Subsidiary Purchases Two New Drilling Rigs --------------------------------------------------------- Magnum Hunter Resources Corporation disclosed that the Company's Appalachian Basin Division has acquired two new 2011 Schramm T200XD trailer mounted hydraulic drilling rigs with a rated vertical working depth capacity of 9,000 feet. The two new Schramm Rigs will join the existing Alpha Hunter Drilling LLC drilling rig fleet comprised of three Schramm T130 rigs. All five of Alpha Hunter's drilling rigs are under term contracts with third parties who are operators active in the Pennsylvania and northwestern West Virginia Marcellus Shale region. When Magnum Hunter acquired Triad Energy early last year out of bankruptcy, the three existing Schramm Rigs were part of the overall acquisition. Alpha Hunter has been successful in contracting its rig fleet out on an improving day rate basis since last year. The existing drilling rig fleet have been primarily used to drill the vertical top hole sections for Marcellus Shale wells for third parties and for Triad Hunter LLC. These two Schramm Rigs can not only drill the surface holes, but they can also perform the directional drilling operations in unconventional resource shales in this region. They are equipped with automatic pipe handling systems, have unparalleled mobility and utilize the smallest footprint available in the market today. Due to the mountainous terrain in Appalachia, utilizing pad drilling and minimizing surface locations significantly reduce the location cost of each well. The two new drilling rigs (including drill pipe) are being purchased for approximately $5.8 million and are being financed under a secured commercial bank term loan. ivalent (67% natural gas). About Magnum Hunter Magnum Hunter Resources, Inc.'s. principal activities are to acquire, operate, explore, exploit and develop oil and gas properties. The Group has interests in 5,612 wells as of December 2002. The Group's operations are carried on mainly in the Mid-Continent Region, Permian Basin and Gulf Coast/Gulf of Mexico. The Group also provides drilling, completion, well-site services, advice regarding environmental and other regulatory compliance, receipt and disbursement functions, expert witness testimony and other managerial and petroleum engineering services. These services are provided to plants located in Texas, Oklahoma, Mississippi, Louisiana, New Mexico and Kansas. During the year 2002, the Group acquired Prize Energy Corp. Exploration and production accounted for 91% of 2002 revenues; gas gathering, marketing and processing, 8% and oil field services, 1%. * * * As reported in the Troubled Company Reporter on Feb. 2, 2005, Moody's placed Magnum Hunter Resource's ratings under review for possible upgrade, including its B1 senior implied and B2 senior unsecured note ratings. MHR's rating outlook had been positive. This follows MHR's announcement that it will be acquired in an all-stock transaction by unleveraged Cimarex Energy (unrated). Cimarex' management will run the merged business. The merger is valued at approximately $2.1 billion, with Cimarex assuming MHR's $645 million of debt as of December 31, 2004. Cimarex is the product of the 2002 merger of Key Production and Helmerich and Paynes's upstream division. The merger adds a substantial Mid-continent dimension to MHR and adds a substantial Permian Basin dimension to Cimarex. There is a degree of overlap in both firm's Gulf Coast activity. Importantly, Cimarex management has long been known for a very conservative leverage philosophy and for its conservative bookings of proven undeveloped reserves. As reported in the Troubled Company Reporter on Jan. 28, 2005, Standard & Poor's Ratings Services placed its 'BB-' corporate credit and 'B+' senior unsecured ratings on oil and gas company Magnum Hunter Resources, Inc., on CreditWatch with developing implications following the company's announcement that it would be acquired by Denver-based Cimarex Energy Co. The CreditWatch developing listing indicates that ratings may be raised, lowered, or affirmed following Standard & Poor's review of the business and financial policies of the combined entity. The stock-for-stock transaction, which includes the assumption of about $645 million of debt, is expected to have a total value of about $2.1 billion. As of Sept. 30, 2004, Irving, Texas-based Magnum Hunter had about $666 million in total debt outstanding, including capital leases and convertible debt. MAQ MANAGEMENT: Wants Access to BB&T Cash Collateral ---------------------------------------------------- MAQ Management, Inc., et al., ask the U.S. Bankruptcy Court for the Southern District of Florida for authorization to use cash collateral of Branch Banking and Trust Company ("BB&T"), who claims to be the successor in interest to Colonial Bank, by acquisition of assets from the FDIC as Receiver for Colonial Bank, an Alabama state bank, nunc pro tunc to the Petition Date. The Debtors require use of cash collateral to, among other things, pay the necessary and critical operating expenses of the Debtors' businesses. As adequate protection, Debtors propose to grant BB&T a replacement lien on the Debtors' receivables and regular payments on all amounts outstanding. About MAQ Management Based in Boca Raton, Florida, MAQ Management, Inc., and three other affiliates serve as commercial landlords to convenience stores and gas stations in primarily in South Florida. They filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to 11-26574) on June 15, 2011. Affiliates that sought Chapter 11 protection are Super Stop Petroleum, Inc., Super Stop Petroleum I, Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball presides over the case. Lawyers at Talarchyk Merrill, LLC, serve as the Debtors' counsel. MAQ Management estimated assets and debts of $1 million to $10 million. Super Stop estimated assets and debts of $10 million to $50 million. The petitions were signed by Mahammad A. Qureshi, CEO. MERRITT AND WALDING: Meeting of Creditors Continued Until July 19 ----------------------------------------------------------------- The Bankruptcy Administrator has continued until July 19, 2011, the meeting of creditors in the Chapter 11 case of Merritt and Walding Properties, LLP. As reported in the Troubled Company Reporter on June 30, the First Meeting of Creditors was set for July 12, at Meeting Room, 182 St. Francis Street, in Mobile, Alabama. Merritt and Walding Properties, LLP, in Pt. Clear, Alabama, filed for Chapter 11 bankruptcy (Bankr. S.D. Ala. Case No. 11-02322) on June 10, 2011. Irvin Grodsky, P.C., serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Richard T. Merritt and R. Fred Walding, as general partners. An affiliate of the debtor, Richard T. Merritt (Bankr. S.D. Ala. Case No. 11-00380) filed for bankruptcy on Feb. 1, 2011. MERRITT AND WALDING: Has Until July 31 to Use Cash Collateral ------------------------------------------------------------- Judge Margaret A. Mahoney of the U.S. Bankruptcy Court for the Southern District of Alabama, Southern Division, authorized, on an interim basis, Merritt and Walding Properties, LLP, to use cash collateral securing its indebtedness to Bryant Bank. The authorization came after the Debtor entered into a stipulation with Bryant Bank regarding the use of cash collateral and the granting of adequate protection to the lender. The Debtor is authorized to collect all Rents, due and owing, through July 31, 2011. Bryant will immediately notify all tenants to whom it sent notice, that those persons are to pay to Debtor the unpaid Rents owed for the month of July, 2011. From the July 2011 Rents collected by Debtor, the Debtor will retain $920 to pay ad valorem taxes on the Mortgage Collateral and $722 for insurance on the Mortgage Collateral. A payment of $10,000 will be paid to Bryant Bank on or before July 15, 2011 to be applied against the Debtor's indebtedness to Bryant Bank. The balance of the July 2011 Rents after paying the Expenses and the Payment will be available for use by the Debtor in the ordinary course of its business. Bryant Bank is owed approximately $1,267,335.25, comprised of a principal balance of $1,249,805.74, accrued interest of $16,279.51 and late charges of $1,250.00, as of the Petition Date, secured by, among other things, certain of the Debtor's personal property, and a first priority mortgage lien in the Debtor's properties located in Mobile, Alabama, and Prichard, Alabama, including all leases, rents, cash and accounts receivable, subject to Bryant's security interest (the "Collateral"). The obligations are also unconditionally guaranteed by Merritt Oil Co., Inc., Fred Raymond Walding and Richard T. Merritt. A final hearing will be held at 8:30 a.m. on July 26, 2011. About Merritt and Walding Properties Merritt and Walding Properties, LLP, in Pt. Clear, Alabama, filed for Chapter 11 bankruptcy (Bankr. S.D. Ala. Case No. 11-02322) on June 10, 2011. Irvin Grodsky, P.C., serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Richard T. Merritt and R. Fred Walding, as general partners. An affiliate of the debtor, Richard T. Merritt (Bankr. S.D. Ala. Case No. 11-00380) filed for bankruptcy on Feb. 1, 2011. An Official Committee of Unsecured Creditors has not been appointed. Bryant Bank is represented by: Jayna Partain Lamar, Esq. J. Leland Murphree, Esq. Guy C. Oswalt, III, Esq. MAYNARD, COOPER & GALE, P.C. 3 South Royal Street, 3rd Floor Mobile, AL 36602 MICROBILT CORP: Has Until Nov. 15 to Propose Chapter 11 Plan ------------------------------------------------------------ The Hon. Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey extended MicroBilt Corporation and CL Verify LLC's exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan until Nov. 15, 2011, and Jan. 12, 2012, respectively. Chex Systems, Inc., a creditor of each of the Debtor, objected to the Debtors' exclusivity motion saying that there is no need to extend the Debtors' exclusivity to file a plan in the Bankruptcy case. MicroBilt has represented that the case exists because of its dispute with Chex regarding the resale agreement and alleges that it will assume the resale agreement. MicroBilt intended to file a plan that operates concurrently with the assumption of the resale agreement. As of the Petition Date, MicroBilt and CLV were indebted to Chex in the approximate amounts of $977,723 and $924,837, respectively. The Debtors have represented that CLV merged with and into MicroBilt, with MicroBilt assuming all of CLV's obligations. Therefore, MicroBilt is indebted to Chex in the aggregate amount of no less than $1,902,560. About MicroBilt Corporation MicroBilt Corporation in Princeton, New Jersey, and CL Verify LLC in Tampa, Florida, offer small business owner solutions for fraud prevention, consumer financing, debt collection, skip tracing and background screening. MicroBilt provides access to over 3 billion debit account records, nearly 30 billion pieces of demographic and public record data and over 100 million unique consumer records to prevent identity fraud, evaluate credit risk and retain customer relationships. MicroBilt and CL Verify filed for Chapter 11 five days apart: MicroBilt (Bankr. D. N.J. Case No. 11-18143) on March 18, 2011, and CL Verify (Bankr. D. N.J. Case No. 11-18715) on March 23, 2011. The Debtors tapped Lowenstein Sandler PC as their counsel, and Maselli Warren, PC, as their special litigation counsel. MicroBilt estimated $10 million to $50 million in both assets and debts. CL Verify estimated $100 million to $500 million in assets, but under $1 million in debts. Court papers say the Debtors have roughly $8.4 million in unsecured debt and no secured debt. The Debtors believe they have an enterprise value of $150 million to $180 million. MICROBILT CORP: Lease Decision Period Extended Until Oct. 17 ------------------------------------------------------------ The Hon. Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey extended until Oct. 17, 2011, MicroBilt Corporation and CL Verify LLC's time to assume or reject their unexpired leases of nonresidential real property. MicroBilt Corporation in Princeton, New Jersey, and CL Verify LLC in Tampa, Florida, offer small business owner solutions for fraud prevention, consumer financing, debt collection, skip tracing and background screening. MicroBilt provides access to over 3 billion debit account records, nearly 30 billion pieces of demographic and public record data and over 100 million unique consumer records to prevent identity fraud, evaluate credit risk and retain customer relationships. MicroBilt and CL Verify filed for Chapter 11 five days apart: MicroBilt (Bankr. D. N.J. Case No. 11-18143) on March 18, 2011, and CL Verify (Bankr. D. N.J. Case No. 11-18715) on March 23, 2011. The Debtors tapped Lowenstein Sandler PC as their counsel, and Maselli Warren, PC, as their special litigation counsel. MicroBilt estimated $10 million to $50 million in both assets and debts. CL Verify estimated $100 million to $500 million in assets, but under $1 million in debts. Court papers say the Debtors have roughly $8.4 million in unsecured debt and no secured debt. The Debtors believe they have an enterprise value of $150 million to $180 million. MICROTECH SMALL: Case Summary & 22 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Microtech Small Arms Research, Inc. 270-D Rutledge Road Fletcher, NC 28732 Bankruptcy Case No.: 11-10693 Chapter 11 Petition Date: July 13, 2011 Court: United States Bankruptcy Court Western District of North Carolina (Asheville) Judge: George R. Hodges Debtor's Counsel: David G. Gray, Esq. 81 Central Avenue Asheville, NC 28801 Tel: (828) 254-6315 E-mail: judyhj@bellsouth.net Scheduled Assets: $171,250 Scheduled Debts: $1,719,372 A list of the Company's 22 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb11-10693.pdf The petition was signed by Susan A. Marfione, president. MILE HIGH: Case Summary & 18 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Mile High Real Estate, LLC 253 Main Street Nashua, NH 03060 Bankruptcy Case No.: 11-12699 Chapter 11 Petition Date: July 13, 2011 Court: United States Bankruptcy Court District of New Hampshire Live Database (Manchester) Judge: J. Michael Deasy Debtor's Counsel: Robert L. O'Brien, Esq. O'BRIEN LAW P.O. Box 357 New Boston, NH 03070-0357 Tel: (603) 459-9965 Fax: (603) 250-0822 E-mail: robjd@mail2firm.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 18 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nhb11-12699.pdf The petition was signed by Vatche Manoukian, manager. MOHEGAN TRIBAL: Files Statistical Report for Mohegan Sun -------------------------------------------------------- The Mohegan Tribal Gaming Authority, on July 15, 2011, posted on its Web site its Slot Machine Statistical Report for Mohegan Sun containing statistics relating to slot handle, gross slot win, gross slot hold percentage, slot win contribution, free promotional slot play contribution 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/Iet8xw 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. MONEYGRAM INT'L: $100,000 Relocation Expenses for EVP Approved -------------------------------------------------------------- The Human Resources and Nominating Committee of the Board of Directors of MoneyGram International, Inc., approved a one-time cash payment of $100,000 to be paid to J. Lucas Wimer, the Company's Executive Vice President, Operations & Technology, for relocation expenses in connection with his relocation to Dallas, Texas, in order to be in closer proximity to the Company's principal executive offices. The terms of the one-time payment are memorialized in the Relocation Assistance Repayment Agreement, by and between MoneyGram Payment Systems, Inc., a wholly-owned subsidiary of the Company, and J. Lucas Wimer, dated July 15, 2011, a full-text copy of which is available for free at: http://is.gd/zLO90j Pursuant to the terms of the Relocation Agreement, the relocation payment is subject to full repayment to the Company by Mr. Wimer if (a) Mr. Wimer's employment is voluntarily terminated for any reason other than death or total disability or Mr. Wimer is terminated for Cause within twenty-four months of the date of the Relocation Agreement or (b) Mr. Wimer fails to relocate within one year of the date of the Relocation Agreement. About MoneyGram International MoneyGram International, Inc. (NYSE: MGI) -- http://www.moneygram.com/-- is a global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange-listed company with 203,000 global money transfer agent locations in 191 countries and territories. The Company reported net income of $43.80 million on $1.17 billion of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.91 million on $1.16 billion of total revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $4.97 billion in total assets, $4.90 billion in total liabilities, $1.03 billion in total mezzanine equity, and a $955.76 million total stockholders' deficit. * * * According to the Troubled Company Reporter on July 1, 2010, Fitch Ratings has affirmed the Issuer Default Ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc., at 'B+'. Outlook is stable. Fitch noted that the ratings could be negatively impacted by further declines in remittance volumes driven by macro economic factors or decreases in migrant labor populations worldwide. MOTORS LIQUIDATION: Inks First Amendment to GUC Trust Agreement --------------------------------------------------------------- On July 8, 2011, Wilmington Trust Company, solely in its capacity as trust administrator and trustee (in such capacity, the "GUC Trust Administrator") of the Motors Liquidation Company GUC Trust, FTI Consulting, Inc., as GUC Trust Monitor, Motors Liquidation Company, f/k/a General Motors Corporation ("MLC"), Chevrolet- Saturn of Harlem, Inc., n/k/a MLC of Harlem, Inc., Saturn, LLC, n/k/a MLCS, LLC, Saturn Distribution Corporation, n/k/a MLCS Distribution Corporation, Remediation and Liability Management Company, Inc., and Environmental Corporate Remediation Company, Inc. (collectively with MLC, the "Debtors"), executed the First Amendment to the Motors Liquidation Company GUC Trust Agreement. A copy of the Amendment is available at http://is.gd/C7G2KU Court Approval and Amendment The GUC Trust Agreement was annexed to the Plan. Section 13.13(b) of the GUC Trust Agreement provides that the agreement may be amended on petition to, and with the approval of, the Bankruptcy Court; provided that (x) no amendment or supplement to the GUC Trust Agreement will be inconsistent with the purpose and intent of the GUC Trust to dispose of its assets in an expeditious but orderly manner, in accordance with the terms of the Plan, the Confirmation Order and the GUC Trust Agreement, and (y) the GUC Trust Agreement will not be amended in a manner that is inconsistent with the Plan in the form confirmed by the Bankruptcy Court, subject to post-confirmation modifications to the Plan. On June 21, 2011, the GUC Trust Administrator filed the Motion of Wilmington Trust Company, as GUC Trust Administrator, to amend the Motors Liquidation Company GUC Trust Agreement along with a related notice of presentment, seeking Bankruptcy Court authority to amend the GUC Trust Agreement. By the Motion, the GUC Trust Administrator sought authority to amend the GUC Trust Agreement to (i) provide for distributions of distributable GUC Trust assets by the GUC Trust on account of non-transferable units to be issued and evidenced by appropriate notation on the books and records of the GUC Trust Administrator; and (ii) shift the end of the GUC Trust's fiscal year, as established in Section 6.7 of the GUC Trust Agreement, from December 31 to March 31. No party objected to the Motion. On July 6, 2011, the Bankruptcy Court issued an order approving the Motion and, pursuant to such order, directed the GUC Trust Administrator, FTI Consulting, Inc. and the Debtors to each execute the Amendment. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. NEW JERSEY MOTORSPORTS: Chapter 11 Plan Approved at Hearing ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that according to court records, New Jersey Motorsports Park will have a confirmed Chapter 11 plan when the appropriate papers are presented to the bankruptcy judge in Camden, New Jersey. According to the report, the plan gives Merrill Lynch, owed $30.4 million, $20 million in new secured notes plus 19.9% of the equity. Alternatively, the lender can have a note for $20.5 million. General unsecured creditors with claims up to $2.4 million were predicted to have a recovery of 21% to 33%, according to the disclosure statement. Merrill Lynch isn't sharing in the unsecured pot on account of its deficiency claim. The remainder of the equity goes to some of the current owners in return for a $2 million cash investment. The plan calls for an auction testing whether there is a better offer. The financing agreement allows Merrill Lynch to bid the debt at auction rather than cash. About New Jersey Motorsports New Jersey Motorsports Park is the owner of tracks for auto and motorcycle racing in Millville, New Jersey. New Jersey Motorsports Park, LLC, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. D. N.J. Lead Case No. 11-16752) on March 7, 2011. Nella M. Bloom, Esq., at Cohen Seglias Pallas Greenhall & Furman, PC, serves as the Debtors' bankruptcy counsel. New Jersey Motorsports estimated its assets at $100,001 to $500,000 and debts at $10 million to $50 million. The Debtors negotiated a Chapter 11 plan with secured lender Merrill Lynch Mortgage Capital Inc. prepetition. NEXTWAVE WIRELESS: In Talks With Woteholders on Waiver ------------------------------------------------------ NextWave Wireless Inc. disclosed that the holders of the Company's Senior Secured Notes, having an aggregate principal amount of approximately $129 million at June 30, 2011, have provided a limited waiver of the Company's obligation to pay such notes in full on July 17, 2011. The limited waiver will expire on August 1, 2011. NextWave is in active negotiations with the holders of all series of its secured notes regarding an agreement whereby such holders would forbear for a longer period of time from exercising their respective rights and remedies relating to certain potential defaults under the agreements relating to each class of notes. NextWave has been engaged in discussions with the holders of its secured notes relating to a maturity extension and related amendments to its note agreements since January 2011. These discussions have not resulted in a maturity extension. An independent committee of NextWave's Board of Directors has authorized the Company's financial advisor to seek alternative sources of financing to repay the Senior Notes and Second Lien Notes. At this time, alternative financing has not been identified and cannot be assured. During the term of a forbearance agreement, if such an agreement is obtained, NextWave would seek to complete a refinancing transaction, negotiate a maturity extension or pursue another alternative with respect to its pending debt maturities. In addition to the First Lien Notes, the Company also has outstanding Senior-Subordinated Secured Second Lien Notes due 2011 (the "Second Lien Notes"), having an aggregate principal amount of $179 million at June 30, 2011, which will mature in November 2011 and Senior-Subordinated Secured Third Lien Notes due 2011 (the "Third Lien Notes"), having an aggregate principal amount of $640 million at June 30, 2011, which will mature in December 2011. As previously disclosed, NextWave's cash reserves are not sufficient to meet these payment obligations. If the limited waiver expires in the absence of a comprehensive forbearance agreement, a refinancing transaction or a maturity extension, an event of default will arise under the First Lien Notes, Second Lien Notes and Third Lien Notes. Based on such default, and subject to the terms of an intercreditor agreement among the various classes of notes, the holders of the secured notes could proceed against the assets pledged to collateralize these obligations, including all of NextWave's domestic wireless spectrum assets. These conditions raise substantial doubt about NextWave's ability to continue as a going concern. Inability to obtain a forbearance agreement, and ultimately a refinancing transaction or maturity extension, would significantly restrict the Company's ability to operate and could cause it to seek relief through a filing in the United States Bankruptcy Court. Any alternative financing, maturity extension or other resolution with respect to the maturities of NextWave's secured notes may be costly to obtain, and could involve the issuance of equity securities that could cause significant dilution to NextWave's existing stockholders. About NextWave Wireless NextWave Wireless Inc. is a wireless technology company that manages and maintains worldwide wireless spectrum licenses. NORTHERN BERKSHIRE: Taps Huron Consulting as Financial Advisor -------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Northern Berkshire Healthcare, Inc., et al., asks the U.S. Bankruptcy Court for the District of Massachusetts for permission to retain Huron Consulting Services LLC as its financial advisor. Huron will provide consulting and advisory services to the Committee and its legal advisor, including but not limited to the following: -- the review and analysis of financial information prepared by the Debtors, their accountants or other financial advisors; -- monitoring and analysis of the Debtors' operations and financial condition, cash expenditures, court filings, business plans, operating forecasts, strategy, projected cash requirements and cash management; and -- attendance at meetings of the Committee, the Debtors, their respective professionals, bankruptcy court hearings and participation in such other matters and on such occasions as the Committee may, from time-to-time, request. The hourly rates charged by Huron's professionals anticipated to be assigned to these cases are: Managing Director $675 - $750 Director $535 - $620 Manager $435 Associate $340 As an accommodation to the Committee, Huron has agreed to permanently reduce each month the total monthly fees invoiced by 15.5%. To the best of the Committee's knowledge, Huron is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc. is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. James Addison Wright, III, Esq., and Steven T. Hoort, Esq., at Ropes & Gray LLP, serve as the Debtors' bankruptcy counsel. Schwartz Hannum PC serves as their special labor counsel. The Debtors' financial advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel. NORTHERN BERKSHIRE: Committee Objects to Cash Collateral Use ------------------------------------------------------------ The Official Committee of Unsecured Creditors objects and reserves its right to object to the request of Northern Berkshire Healthcare, Inc., and its debtor affiliates to use cash collateral pending its receipt of a final revised cash collateral budge and the final form of proposed cash collateral orders. At a minimum, the revised budget should include a "carve-out"for payment of fees and expenses of professionals retained by the Committee, as well as for payment of the fees and expenses of any patient care ombudsman the Court appoints, Jeffrey D. Sternklar, Esq., at Duane Morris LLP, in Boston, Massachusetts, asserts. The Court, he adds, should not approve any use of cash collateral by the Debtor pursuant to a budget that lacks an appropriate carve- out. Mr. Sternklar argues that a carve out is necessary and appropriate. While the Debtor's proposed counsel has received a retainer of $600,000, and the Debtor's proposed financial advisor has received a retainer of $100,000, neither the Committee, its professionals nor a patient care ombudsman have been provided a retainer or other means to pay anticipated fees and expenses, he points out. About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc. is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. James Addison Wright, III, Esq., and Steven T. Hoort, Esq., at Ropes & Gray LLP, serve as the Debtors' bankruptcy counsel. The Debtors' Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel. NOVEMBER 2005: Wants Schedules Filing Deadline Moved to Aug. 3 -------------------------------------------------------------- November 2005 Land Investors LLC; NLV Holding LLC; and BOPH Inc. ask the Bankruptcy Court to extend by 14 days -- until Aug. 3, 2011 -- the time within which they must file schedules of assets and liabilities, schedules of current income and expenditures, schedules of executory contracts and unexpired leases and statements of financial affairs. James D. Greene, Esq., the Debtors' lawyer, said the extension is necessary and appropriate to the orderly administration of the Debtors' chapter 11 cases. Pursuant to Federal Rule of Bankruptcy Procedure 1007(c), the Debtors must file the Schedules no later than 14 days after the Petition Date, or July 20, 2011. Although Counsel is working with Debtors to obtain all documents necessary to prepare the Schedules, the Debtors believe that it will be impossible to obtain the documents, prepare the Schedules thoroughly and accurately, and file them timely. Further, the Debtors and their professionals will need time to evaluate the information comprising the Schedules once the Debtors have compiled the necessary information and documentation. The Debtors simply do not believe that all this can be accomplished completely and accurately by the filing deadline. Mr. Greene said the initial debtor interview has yet to be scheduled, but likely be held on a day between the proposed extension date (Aug. 3, 2011) and the meeting of creditors, which is scheduled for Aug. 11, 2011 at 1:00 p.m. Granting the extension sought herein will therefore not prejudice the United States Trustee and the Debtors' creditors as the Schedules will be filed well before the meeting of creditors. About November 2005 Land Investors November 2005 Land Investors LLC and affiliates, NLV Holding LLC and BOPH Inc. filed separate Chapter 11 petitions (Bankr. D. Nev. Case Nos. 11-20704, 11-20707 and 11-20709) on July 6, 2011, estimating $10 million to $50 million in assets and $100 million to $500 million in debts. Judge Mike K. Nakagawa presides over the cases. James D. Greene, Esq., at Greene Infuso, LLP, serves as the Debtors' bankruptcy counsel. November 2005 Land Investors, L.L.C., first filed for Chapter 11 protection (Bankr. D. Nev. Case No. 09-17474) on May 8, 2009. Judge Nakagawa also handled that case. Richard F. Holley, Esq., at Santoro, Driggs, Walch, Kearney, Holley & Thompson as general bankruptcy counsel. The Debtor disclosed estimated assets and debts of $100 million to $500 million. NOVEMBER 2005: Sec. 341 Creditors' Meeting Set for Aug. 8 --------------------------------------------------------- The United States Trustee in Las Vegas will hold a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341 in the bankruptcy cases of November 2005 Land Investors LLC and affiliates, NLV Holding LLC and BOPH Inc. on Aug. 11, 2011, at 1:00 p.m. at 341s -- Foley Bldg, Rm 1500. The last day to file proofs of claim is Nov. 9, 2011. The Debtors' 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 November 2005 Land Investors November 2005 Land Investors LLC and affiliates, NLV Holding LLC and BOPH Inc. filed separate Chapter 11 petitions (Bankr. D. Nev. Case Nos. 11-20704, 11-20707 and 11-20709) on July 6, 2011, estimating $10 million to $50 million in assets and $100 million to $500 million in debts. Judge Mike K. Nakagawa presides over the cases. James D. Greene, Esq., at Greene Infuso, LLP, serves as the Debtors' bankruptcy counsel. November 2005 Land Investors, L.L.C., first filed for Chapter 11 protection (Bankr. D. Nev. Case No. 09-17474) on May 8, 2009. Judge Nakagawa also handled that case. Richard F. Holley, Esq., at Santoro, Driggs, Walch, Kearney, Holley & Thompson as general bankruptcy counsel. The Debtor disclosed estimated assets and debts of $100 million to $500 million. NOVEMBER 2005: Hiring Greene Infuso as Chapter 11 Counsel --------------------------------------------------------- November 2005 Land Investors LLC; NLV Holding LLC; and BOPH Inc. seek Bankruptcy Court permission to employ James D. Greene, Esq., and the law firm of Greene Infuso, LLP, as Chapter 11 counsel, effective as of July 5, 2011. Mr. Green attests that his firm is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code in that the firm, its directors, counsel and associates (a) is not a creditor or insider of the Debtors; (b) is not and was not, within two years before the date of the application, a director, officer, or employee of the Debtors; and (c) do not have or represent an interest materially adverse to the interest of the estate or any class of creditors or equity holders. The Debtor seeks to retain the firm on an hourly basis at the customary and standard rates that the firm charges for similar representation, plus reimbursement of actual and necessary expenses incurred in performing its duties. On June 30, 2011, the firm received a $50,000 retainer. There were two sources for the retainer; Debtor November 2005 and Hillwood Development Group, an affiliate of November 2005. On the Petition Date, the firm used retainer funds to pay for services rendered between its retention in this matter and the Petition Date and to pay its filing fees in these cases. The total for the pre-petition services (including filing fees for the Chapter 11 cases) is $20,554. The remaining retainer amount of $29,445 is being held in the firm's trust account pending Court allowance of fees and costs, or further Court order. About November 2005 Land Investors November 2005 Land Investors LLC and affiliates, NLV Holding LLC and BOPH Inc. filed separate Chapter 11 petitions (Bankr. D. Nev. Case Nos. 11-20704, 11-20707 and 11-20709) on July 6, 2011, estimating $10 million to $50 million in assets and $100 million to $500 million in debts. Judge Mike K. Nakagawa presides over the cases. James D. Greene, Esq., at Greene Infuso, LLP, serves as the Debtors' bankruptcy counsel. November 2005 Land Investors, L.L.C., first filed for Chapter 11 protection (Bankr. D. Nev. Case No. 09-17474) on May 8, 2009. Judge Nakagawa also handled that case. Richard F. Holley, Esq., at Santoro, Driggs, Walch, Kearney, Holley & Thompson as general bankruptcy counsel. The Debtor disclosed estimated assets and debts of $100 million to $500 million. OCEAN PLACE: Court Approves Stephen M. Herbstman as Auditor ----------------------------------------------------------- The Hon. Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey authorized Ocean Place Development LLC, to employ Stephen M. Herbstman, M. S., C.P.A. as an auditor. The Debtor related that on June 17, 2011, it entered into a WP Settlement and compromise with The West Paces Hotel Group, LLC. The settlement contemplates that an audit will be performed of the Debtor's operations in 2010. AFP 104 Corp., the Debtor's prepetition lender, has also requested that such an audit be done to determine whether, among other things, the Debtor has any claims against West Paces and whether certain employees are entitled to incentive compensation. Herbstman has agreed to perform the audit for a fee of $20,000. As reported in the Troubled Company Reporter on April 20, the Debtor also sought permission to employ Mr. Herbstman as tax accountant. Mr. Herbstman will be preparing the Debtor's federal and state tax returns for the year 2010. To the best of the Debtor's knowledge, Herbstman is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Ocean Place Development Ocean Place Development, LLC, owns a beachfront resort property in Long Branch, New Jersey. The Ocean Place resort is sited on 17- acres featuring 1,000 feet of ocean frontage and is improved with a 254-room hotel that includes 40,000 square feet of meeting space, three restaurants, a bar/lounge, a full-service spa, and numerous resort amenities. It employs between 95 and 340 employees, depending upon the season, through the property management entity West Paces Hotel Group, LLC. Ocean Place filed a voluntary Chapter 11 petition (Bankr. D. N.J. Case No. 11-14295) on Feb. 15, 2011. Kenneth Rosen, Esq., at Lowenstein Sandler, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $50 million to $100 million. As of the petition date, the Debtor owed $57,245,372 to AFP pursuant to a Loan Agreement dated April 25, 2006, as amended from time to time, entered into by and between the Debtor as borrower and Barclays Capital Real Estate Inc. as lender. OLSEN'S MILL: Court Says BNP Paribas to Recover Losses ------------------------------------------------------ Rick Romell at the Journal Sentinel reports that French bank BNP Paribas stands to recover a larger share of its losses in the business collapse of a major Wisconsin grain handler, thanks to a ruling published Friday by the Wisconsin Supreme Court. The justices reversed lower court decisions involved in the receivership sale of Olsen's Mill Inc. in 2009, and directed a Green Lake County circuit judge to fashion a solution that will more fully compensate the bank for its losses, according to the report. The report notes that Olsen's Mill, which handled millions of bushels of grain at 11 elevators across the state, was forced into receivership in February 2009 amid a tangle of complications that included the bankruptcy of the Renew Energy ethanol plant. The report discloses that Olsen's supplied the Jefferson ethanol operation, and ownership of the businesses overlapped. Olsen's was Renew's largest creditor, and after the ethanol firm sought bankruptcy protection, Paribas forced Olsen's into receivership, a state-court alternative to bankruptcy, the report says. At the time, Olsen's owed $58 million to three banks led by Paribas, the report notes. Journal Sentinel says that in receivership, assets can be auctioned off to raise money to at least partly repay creditors. In the auction of Olsen's, the high bid came from a company formed by Paribas and another lender, Journal Sentinel relates. But Green Lake County Circuit Judge William McMonigal, questioning whether the Paribas-backed firm would continue to operate the grain business, allowed the loser in the auction to revise its bid, Journal Sentinel relates. The bid of that firm, a group supported by Olsen's owners, later was approved by McMonigal over Paribas' objections, the report notes. Judge McMonigal shouldn't have done that, the Supreme Court ruled. A receivership sale, the court said, must have the consent of a properly secured creditor, and Paribas didn't consent to a sale to the Olsen's-backed group. But the justices stopped short of unwinding the sale two years after the fact, Journal Sentinel notes. Rather, they sent the matter back to circuit court to determine further compensation for Paribas, the report relates. As it stands, Journal Sentinel relates that the three-bank group Paribas led received about $9 million of the $58?million owed, Timothy F. Nixon, attorney for Paribas, said Friday. But the sale of Olsen's brought about $20 million, he said, and the secured creditors are entitled to more, the report says. "The point was, something that was worth $20 million - we only got $9 million for it (and) it was our collateral," Mr. Nixon said, Journal Sentinel adds. The former Olsen's business continues in operation, owned by a firm called Ag Services of Wisconsin LLC. OPEN TEXT: Moody's Affirms 'Ba2' Corporate Family Rating -------------------------------------------------------- Moody's Investors Service affirmed Open Text, Inc.'s Ba2 corporate family rating and rated the company's proposed new senior debt facilities Ba1, the same as the previous senior debt ratings. The new facilities will be used to replenish cash used to finance the acquisition of Global 360, refinance existing debt and for working capital purposes. The speculative grade liquidity rating was revised to SGL-2 from SGL-1. The ratings outlook remains positive. RATINGS RATIONALE While the proposed debt increases leverage, the increase is modest and the acquisition of The Global 360 furthers Open Text's offerings in the business process management (BPM) software segment. Though often sold as a stand-alone offering, business process management software is often a key component of broader enterprise content management (ECM) systems. Open Text continues to be a leading player in the overall ECM software industry, and the acquisition further cements their position, second only to IBM (rated Aa3). The Ba2 rating reflects the company's leading position within the ECM market with one of the broadest suites of products in the industry. The industry is expected to have mid to high single digit growth over the next several years driven by compliance requirements, the drive for productivity improvements and the ever increasing amount of data enterprises need to organize, track and search. The ratings also reflect the stability of the company's maintenance revenues, EBITDA and cash flow (as highlighted by the minimal disruption experienced by the company in the downturn) and the company's strong credit metrics and conservative financial policies. The rating is constrained by limited diversification outside the ECM sector as well as the company's potential for additional debt financed acquisitions as they continue to consolidate companies within the sector. Though pro forma for the Global 360 acquisition, leverage will increase to approximately [2.2x], leverage is expected to return to under 2x over the next year and remain there except on a temporary basis. The rating is also constrained by competitive threats from larger enterprise software and hardware providers who are also pursuing consolidation strategies within the ECM industry and are increasingly providing bundled offerings putting Open Text at a marketing disadvantage. The rating outlook remains positive reflecting the favorable general trends in the ECM market and expectation of organic revenue growth and positive operating results. The ratings could face upward pressure if the company continues demonstrating organic revenue, profit and cash flow growth while maintaining conservative financial policies, including maintaining leverage under 2x. The ratings could face downward pressure if leverage were to exceed 3.25x . The SGL-2 liquidity rating reflects the decreased cash and revolver availability as a result of the Global 360 acquisition. The acquisition is expected to be funded with cash on hand and draws under the revolver leaving approximately $75-85 million of liquidity until the new loans close. In addition, the company is expected to generate well over $200 million of free cash flow over the next twelve months. If the company is successful in closing the proposed $600 million term loan and new $100 million revolver, cash balances and undrawn revolver capacity are expected to exceed $400 million. Upon closing of the new debt facilities, the liquidity rating will likely be revised back to SGL-1. These ratings were affirmed: Corporate family rating: Ba2 Probability of default: Ba3 The following ratings were assigned: Proposed senior secured revolver, Ba1, LGD2 (26%) Proposed $600 million senior secured term loan, Ba1, LGD2 (26%) Proposed senior secured delayed draw term loan, Ba1, LGD2 (26%) The following ratings were affirmed: $75 million senior secured revolver due 2011, Ba1, LGD2 (21%) $286 million senior secured term loan due 2013, Ba1, LGD2 (21%) The following was revised: Speculative grade liquidity to SGL-2 from SGL-1 The existing term loan ratings will be withdrawn upon closing of the new facilities. The principal methodology used in rating Open Text was the Global Software Industry Methodology published in May 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009 Open Text Corp., headquartered in Waterloo, Ontario, Canada, is the largest independent provider of enterprise content management software. The company's software applications allow users to capture, manage, store, and deliver content (whether documents, email, web-based material or mixed media) related to organizational processes. For twelve months ended March 31, 2011, revenues were $988 million. OPTI CANADA: Provides Update on Q2 2011 Joint Venture Operations ---------------------------------------------------------------- OPTI Canada Inc. announced in a press release Thursday an update on its joint venture operations over the second quarter of 2011. Long Lake bitumen production for the second quarter of 2011 averaged approximately 27,900 barrels per day (bbl/d) (9,800 bbl/d net to OPTI), an increase over the first quarter average of approximately 25,500 bbl/d (8,900 bbl/d net to OPTI). Steam injection also increased to average approximately 152,000 bbl/d following the scheduled hot lime softener maintenance in April, compared to 146,000 bbl/d in the previous quarter. Production improvements are a result of higher steam injection, continued well optimizations and ramp up of new wells at Pad 11. Production at the end of June was approximately 30,000 bbl/d (10,500 bbl/d net to OPTI). At June 30, 2011, OPTI had approximately C$189 million in cash and cash equivalents. In addition, it holds restricted cash of US$73 million in an interest reserve account associated with its US$300 million First Lien Notes. OPTI achieved a positive net field operating margin of C$2 million for the second quarter of 2011, an improvement from a loss of C$8 million in the first quarter. The positive net field operating margin was primarily the result of higher bitumen production and improved West Texas Intermediate prices. The Company defines its net field operating margin or loss as sales related to petroleum products net of royalties and power sales minus operating expenses, diluent and feedstock purchases, and transportation costs. A copy of the press release is available at http://is.gd/MdTIed As reported in the TCR on July 14, 2011, OPTI announced on July 13, 2011, that it had reached agreement with a committee of Secured Notes holders to restructure the Company's balance sheet under the Companies' Creditors Arrangement Act ("CCAA"). About OPTI OPTI Canada Inc. is a Calgary, Alberta-based company focused on developing major oil sands projects in Canada. Its first project, the Long Lake Project, has a design capacity for 72,000 barrels per day (bbl/d), on a 100 percent basis, of SAGD (steam assisted gravity drainage) oil production integrated with an upgrading facility. The Upgrader uses the Company's proprietary OrCrude(TM) process, combined with commercially available hydrocracking and gasification. OPTI's common shares trade on the Toronto Stock Exchange under the symbol OPC. PEREGRINE PHARMA: Ernst & Young Raises Going Concern Doubt ---------------------------------------------------------- Peregrine Pharmaceuticals, Inc., filed on July 14, 2011, its annual report on Form 10-K for the fiscal year ended April 30, 2011. Ernst & Young LLP, in Irvine, California, expressed substantial doubt about Peregrine Pharmaceuticals' ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and recurring negative cash flows from operating activities. The Company reported a net loss of $34.15 million on $13.49 million of revenues for fiscal 2011, compared with a net loss of $14.49 million on $27.94 million of revenues for fiscal 2010. The Company's balance sheet at April 30, 2011, showed $34.77 million in total assets, $19.35 million in total liabilities, and stockholders' equity of $15.42 million. A copy of the Form 10-K is available at http://is.gd/YP7Be9 Tustin, California-based Peregrine Pharmaceuticals, Inc., is a clinical-stage biopharmaceutical company driven to develop and manufacture first-in-class monoclonal antibodies for the treatment of cancer and viral infections. PREMIER GOLF: Taps Charles E. Brumfield as In-House Counsel ----------------------------------------------------------- Premier Golf Properties, LP., asks the U.S. Bankruptcy Court for the Southern District of California for permission to employ Charles E. Brumfield, Esq., as in-house counsel. Pursuant to the terms of the 2004 agreement the Debtor would engage the services of Mr. Brumfield at $3,000 per month, on the understanding that Mr. Brumfield's services contribution and service would exceed and benefit the Debtor in excess of the $3,000 monthly fee. Mr. Brumfield will perform all of these services, subject to the Court's approval: a. local and state permits, applications and development events required to accomplish Debtors goals and to continue to deal with those issues surrounding the (1) golf operations; (2) mineral extraction (sand); (3) wetlands mitigation credits; and (4) raw land at Willow Glen. b. consult on all real property, contract and employment issues including administrative and regulatory (both as to the golf course and as to the surrounding property opportunities). Conduct litigation in concert with outside counsel on employment, contract and real property issues coming to the table. Assist in consulting with issues relative to liquor license and other license owned/operated by Debtor issues. Consult with regard to banking relationship. Assist in litigation primarily sounding in warranty regarding personal property utilized at the course. Prepetition, Mr. Brumfield, received reasonable compensation for actual, and necessary services rendered for Debtor in the sum of $3,000 per month for each month since his engagement with Debtor. The Debtor proposes to pay Mr. Brumfield on a contract basis with a monthly compensation $3,000, effective retroactive as of May, 2, 2011. About Premier Golf Properties, LP El Cajon, California-based, Premier Golf Properties, LP dba Cottonwood Golf Club filed for Chapter 11 protection (Bankr. S.D. Calif. Case No. 11-07388) on May 2, 2011. Peter W. Bowie is presiding the case. Jack F. Fitzmaurice, Esq., at Fitzmaurice & Demergian represents the Debtor. The Debtor estimated assets and liabilities at $10 million to $50 million. PREMIER GOLF: Wolfgang F. Hahn OK'd to Handle State Litigation -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California authorized Premier Golf Properties, LP., to employ Wolfgang F. Hahn, Esq., of Hahn + Associates as special litigation counsel. Prepetiton, the firm represented the Debtor in connection with ongoing state litigations filed by Premier, before the Superior Court of California, County of San Diego against Far East National Bank and Asset Foreclosure Services, Inc., and against Yamaha Golf Car Company and Yamaha Motor Manufacturing Corporation of America. The firm is representing the Debtor in these cases. The Debtor has retained Jack F. Fitzmaurice, Esq., of Fitzmaurice & Demergian as general bankruptcy counsel and Darvy Mack Cohan, Esq., as special bankruptcy counsel. To that regard, the Debtor added that there will be no duplication of services. Prepetition, Mr. Hahn received for work done prepetition relative to Debtor's active state court litigations these sums in these dates: Date of Payment Amount of Payment --------------- ----------------- September 2010 $10,000 December 2010 $10,000 February 2011 $7,500 March 2011 $20,000 TOTAL $47,500 The Debtor noted that no money in trust is held by Mr. Hahn. To the best of the Debtor's knowledge, Mr. Hahn is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Premier Golf Properties, LP El Cajon, California-based, Premier Golf Properties, LP dba Cottonwood Golf Club filed for Chapter 11 protection (Bankr. S.D. Calif. Case No. 11-07388) on May 2, 2011. Peter W. Bowie is presiding the case. Jack F. Fitzmaurice, Esq., at Fitzmaurice & Demergian represents the Debtor. The Debtor estimated assets and liabilities at $10 million to $50 million. PREMIER GOLF: Court OKs Jack Fitzmaurice as Bankruptcy Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California has approved Premier Golf Properties, LP's application to employ Jack F. Fitzmaurice, Esq., as general bankruptcy counsel. Upon retention, the firm, will among other things: a) prepare records and reports as required by the Federal Rules of Bankruptcy Procedure; Local Bankruptcy Rules and the United States Trustee's Operating and Reporting Requirements; b. The preparation of applications, amendments, motions and proposed orders to be submitted to the Court exclusive of matters related to FENB, and cash collateral motion representation; c. The identification and prosecution of claims and causes of action available to Debtor, exclusive of matters related to FENB; Mr. Fitzmaurice will charge the Debtor $375 per hour for his services. El Cajon, California-based, Premier Golf Properties, LP dba Cottonwood Golf Club filed for Chapter 11 protection (Bankr. S.D. Calif. Case No. 11-07388) on May 2, 2011. Peter W. Bowie is presiding the case. Jack F. Fitzmaurice, Esq., at Fitzmaurice & Demergian represents the Debtor. The Debtor estimated assets and liabilities at $10 million to $50 million. PREMIER GOLF: Court OKs Darvy Cohan as Special Bankruptcy Counsel ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California has approved Premier Golf Properties, LP's application to employ Darvy Mack Cohan, Esq., as special bankruptcy counsel. Upon retention, the firm, will among other things: a. prepare applications, amendments, motions and proposed orders to be submitted to the Court relative to creditor FENB and use of cash collateral; b. The examination of any FENB's proofs of claim, and the possible prosecution of objections by creditor FENB; and c. In general assisting the Debtor relative to any matter surrounding creditor FENB and/or cash collateral issues. Mr. Cohan will charge the Debtor $400 per hour for his services. El Cajon, California-based, Premier Golf Properties, LP dba Cottonwood Golf Club filed for Chapter 11 protection (Bankr. S.D. Calif. Case No. 11-07388) on May 2, 2011. Peter W. Bowie is presiding the case. Jack F. Fitzmaurice, Esq., at Fitzmaurice & Demergian represents the Debtor. The Debtor estimated assets and liabilities at $10 million to $50 million. PUBLIC MEDIA: Incurs $2.89 Million Net Loss in May 31 Quarter ------------------------------------------------------------- Public Media Works, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $2.89 million on $20,236 of revenue for the three months ended May 31, 2011, compared with a net loss of $1.57 million on $0 of revenue for the same period a year ago. The Company's balance sheet at May 31, 2011, showed $862,106 in total assets, $1.17 million in total liabilities and a $307,366 in total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VARezo About Public Media Works Sausalito, Calif.-based Public Media Works, Inc., and its wholly- owned subsidiary, EntertainmentXpress, Inc., a California corporation , are engaged in the business of offering self-service kiosks which deliver DVD movies to consumers. Public Media Works, Inc., has historically been engaged in the development, production, marketing and distribution of film, music and television entertainment titles. The Company has an ownership interest in several film and television projects, but expects no revenue from these projects. As of May 4, 2010 with the acquisition of Entertainment Xpress, Inc., the Company has focused exclusively on its kiosk business and intends to continue this focus going forward. In March 2011, the Company installed its first 25 kiosks under the DBA of "Spot. The difference(TM)". Anton & Chia, LLP, in Newport Beach, California, expressed substantial doubt about Pubic Media Works' ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring net losses and negative cash flows from operations through Feb. 28, 2011, and it has an accumulated deficit of $12.83 million as of Feb. 28, 2011. The Company reported a net loss of $7.68 million on $7,139 of revenue for the fiscal year ended Feb. 28, 2011, compared with a net loss of $108,435 on $50,000 of revenue for the fiscal year ended Feb. 28, 2010. QUANTITATIVE ALPHA: Grant Thornton Raises Going Concern Doubt ------------------------------------------------------------- Quantitative Alpha Trading Inc. filed on July 15, 2011, its annual report on Form 20-F for the fiscal year ended March 31, 2011 Grant Thornton LLP, in Toronto, Canada, said that Quantitative Alpha Trading has not generated any revenues from operations to date and further losses are anticipated prior to the generation of any profits. "These conditions, along with other matters . . . ., indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern." The Company reported a net loss of $2.6 million for 2010, compared with a net loss of $599,471 for 2009. The Company doe not generate revenues from operations. It relies on equity financing for its working capital requirements to fund its operations, business and software development activities. The Company's balance sheet at Dec. 31, 2010, showed $9.0 million in total assets, $2.8 million in total liabilities, and stockholders' equity of $6.2 million. A copy of the Form 20-F is available at http://is.gd/S5kJ2v Headquartered in Mississauga, Ontario, Canada, Quantitative Alpha Trading Inc. is a reporting issuer in Canada and trades in Canada on the Canadian National Stock Exchange under the symbol "QAT". The Company has been in the software business and, more specifically, developing and monitoring real-time, intraday, trading software as a service to money managers since January 2010. To date, it has two completed software suites, namely Stealth and the ENAJ Software, and is currently developing additional black-box systems based on its Stealth software, which are the Trend Crawler and the Virtual Condor. RANCHER ENERGY: Posts $674,059 Net Loss in Year Ended March 31 -------------------------------------------------------------- Rancher Energy Corp. filed on July 14, 2011, its annual report on Form 10-K for the fiscal year ended March 31, 2011. The Company reported a net loss of $674,059 for 2011, compared with a net loss of $20.3 million for 2010. The Company had no revenues from continuing operations in 2011 or 2010. Reorganization items for 2011 were $1.4 million, compared to $310,591 for 2010. Loss from continuing operations was $3.1 million for 2011 and $2.8 million for 2010. The Company recorded income from discontinued operations of $2.4 million in 2011, which included a gain of $4.8 million in connection with the sale of substantially all of its assets (for approximately $20 million), effective March 1, 2011. Loss from discontinued operations was $17.5 million in 2010. The Company's balance sheet at March 31, 2011, showed $5.9 million in total assets, $2.4 million in total liabilities, and stockholders' equity of $3.5 million. A copy of the Form 10-K is available at http://is.gd/pf1Wwx About Rancher Energy Denver, Colorado-based Rancher Energy Corp. (OTC BB: RNCHQ) -- http://www.rancherenergy.com/-- is an independent energy company that explores for and develops produces, and markets oil and gas in North America. Through March 2011, the Company operated four oil fields in the Powder River Basin, Wyoming. The Company was formerly known as Metalex Resources, Inc., and changed its name to Rancher Energy Corp. in 2006. Rancher Energy Corp. was incorporated in the State of Nevada on Feb. 4, 2004. Rancher Energy filed for Chapter 11 bankruptcy protection on Oct. 28, 2009 (Bankr. D. Colo. Case No. 09-32943). Herbert A. Delap, Esq., who has an office in Denver, Colorado, assists the Debtor in its restructuring effort. In its petition, the Company estimated assets and debts of between $10 million and $50 million each. On Feb. 24, 2011, the Bankruptcy Court approved the sale of substantially all of the Company's assets to DIP Lender Linc Energy Petroleum, Inc., for the price of approximately $20 million. As reported in the TCR on March 25, 2011, the Company delivered to the Bankruptcy Court a first amended Chapter 11 plan of reorganization, and first amended disclosure statement explaining that plan. REAL MEX: Appoints Edie Ames as EVP and COO ------------------------------------------- As previously announced, Real Mex Restaurants, Inc., appointed Edie Ames as Executive Vice President and Chief Operating Officer, effective July 11, 2011. In connection with her employment with Real Mex, Ms. Ames signed an offer letter with the Company dated July 11, 2011. The offer letter provides for an initial annual base salary of $300,000. Ms. Ames will participate in the Company's bonus program that entitles her to an annual performance bonus with a target of 50% of her base salary, which is guaranteed for 2011 on a prorated basis. In addition, Ms. Ames will receive an option grant consistent with the other executive vice president of the Company. Ms. Ames is eligible for reimbursements related to relocation. In the event Ms. Ames is terminated without cause within 12 or 24 months of her start date, she will be entitled to receive up 6 months or 12 months of salary, respectively, until other employment is secured and continued medical and dental coverage for the same period. About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. The Company operated 183 restaurants as of March 28, 2010, of which 152 were located in California and the remainder were located in 12 other states, primarily under the trade names El Torito Restaurant(R), Chevys Fresh Mex(R) and Acapulco Mexican Restaurant Y Cantina(R). In addition, the Company franchised or licensed 34 restaurants in 12 states and two foreign countries as of March 28, 2010. The Company's other major subsidiary, Real Mex Foods, Inc., provides internal production, purchasing and distribution services for the restaurant operations and also provides distribution services and manufactures specialty products for sale to outside customers. Real Mex carries a 'Caa2' Corporate Family Rating, and stable Outlook from Moody's Investors Service. At the end of August 2010, Moody's said the 'Caa2' CFR continues to reflect the challenges Real Mex will face to reverse its revenue decline primarily driven by the ongoing, albeit somewhat decelerated, negative same store sales trend, in a very difficult operating environment for casual dining concepts. The rating also incorporates the company's high financial leverage, poor interest coverage and weak free cash flow generation. As reported by the TCR on June 28, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Cypress, Calif.- based Real Mex Restaurants Inc. to 'CCC' from 'B-'. "The rating actions reflect our view that operating performance will remain weak in 2011, likely requiring the company to amend financial covenants," said Standard & Poor's credit analyst Andy Sookram. The Company reported a net loss of $17.78 million on $227.91 million of total revenues for the six months ended Dec. 26, 2010, compared with a net loss of $49.59 million on $500.60 million of total revenues for the fiscal year ended Dec. 27, 2009. The Company's balance sheet at March 27, 2011, showed $276.64 million in total assets, $255.35 million in total liabilities and $21.29 million in total stockholders' equity. REID PARK: Meeting of Creditors Continued Until July 28 ------------------------------------------------------- The U.S. Trustee for Region 14 has continued until July 28, 2011, at 12:00 p.m., the meeting of creditors in the Chapter 11 case of Reid Park Properties, LLC. The meeting of creditors was set for July 14, at the U.S. Trustee's Office, United States Bankruptcy Court, 38 S. Scott Ave., Tucson, Arizona. Reid Park Properties LLC is the owner of the Doubletree Hotel Tucson located in South Alernon Way in Tucson, Arizona. The nine- story property has 287 rooms. It was purchased for $31.8 million in 2007 by an affiliate of Transwest Properties Inc. Reid Park filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 11-15267) on May 26, 2011. According to its bankruptcy petition, Reid Park has $52 million in liabilities and $14 million in assets. The Law Offices of Eric Slocum Sparks, P.C., serves as its legal counsel. The U.S. Trustee Christopher Pattock said that an official committee of unsecured creditors has not been appointed because an insufficient number of persons holding unsecured claims against the debtor have expressed interest in serving on a committee. RIVER EAST: Receiver Can Access Cash Collateral Until July 31 ------------------------------------------------------------- On June 23, 2011, the U.S. Bankruptcy Court for the Northern District of Illinois approved the motion of Cindy O'Drobinak, in her capacity as the court-appointed receiver for River East Plaza, and landlord for the Property in 401-465 East Illinois Street, Chicago, Illinois, for approval of certain lease amendments at the Property and for authority to use cash collateral and DIP financing. The amendments are made to the leases of Red Car, Inc., Photogenic, Inc., Evans Construction/Consulting, LLC, and North Pier Dental Associates, P.C. Under the terms of the proposed amendment, Red Car's lease, for 10,732 rsf plus storage, would be extended one year through Aug. 31, 2012, at the current lease terms. Photogenic's lease term is extended into 2018. Photogenic will relocate and expand into approximately 3,477 rsf. The amendment has increasing rent each year after the relocation is complete, at an estimated net effective sf/yr. Evan's lease is extended through June 30, 2012, at the current lease terms. North Per Dental's lease is extended through May 2018. The amendment has increasing rent each year at an estimated $18.61 net effective sf/yr. The interim payment agreement with Vulpes is approved. That interim agreement requires Vulpes to pay $13,013.65 per week starting on June 20, 2011, and continuing through June 30, 2012. The Receiver is permitted to use LNV Corporation's cash collateral and up to an additional $18,000 in DIP financing provided by LNV Corp., through and including July 31, 2011, to fund any amounts provided for in a budget, including, but not limited to, the broker's commissions, tenant improvements and construction fes associated with the Red Car, Photogenic, Evans and North Pier Dental lease amendments. The DIP Financing will be repaid in full, with interest, in cash, at plan confirmation, as a postpetition superpriority expense claim. Such amount will be paid separate and apart from, and in addition to, any prepetition secured claim of LNV Corp. The terms of the Receiver's continued use of cash collateral will be in accordance with the terms set forth in the May 5, 2011 Final Cash Collateral Order, as modified by the budget. Counsel for the Receiver may be reached at: Adam A. Hachikian, Esq. Ryan T. Schultz, Esq. FOX, HEFTER, SWIBEL, LEVIN & CARROLL, LLP 200 West Madison Street, Suite 3000 Chicago, IL 60606 Tel: (312) 224-1200 Fax: (312) 224-1201 Chicago, Illinois-based River East Plaza, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-05141) on Feb. 10, 2011. Michael E. Gosman, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $19,410,255 in assets and $45,268,651 in liabilities as of the Chapter 11 filing. Chief Judge Carol A. Doyle of the U.S. Bankruptcy Court for the Northern District of Illinois has transferred the Chapter 11 case of River East Plaza, LLC, to Judge Eugene R. Wedoff. The case was previously assigned to Judge Bruce W. Black. ROYAL HOSPITALITY: Can Use Cash Collateral Until July 27 -------------------------------------------------------- Royal Hospitality LLC obtained authorization from the Hon. Robert E. Littlefield, Jr., of the U.S. Bankruptcy Court for the Northern District of New York to continue using cash collateral, subject to these conditions: (1) Ittleson Trust is paid $41,000 on or before July 6, 2011; (2) Empire State Certified Development Corp., as Servicing Agent for the United States Small Business Administration, is paid $8,500 on or before July 6, 2011; (3) Peter Shabat is paid $1,500 on or before July 6, 2011; (4) Marilyn Stark, and her sons, George P. Stark and Michael J. Stark, continue to receive only $1,000 per week from the Debtor and George H. Stark receives nothing from the Debtor; (5) All fees due to the Office of United States Trustee are paid. A further hearing on the Debtor's use of cash collateral is scheduled on July 27, 2011 at 10:30 a.m. The Debtor is represented by: Richard L. Weisz, Esq. HODGSON RUSS LLP 677 Broadway, Suite 301 Albany, NY 12207 Tel: (518) 465-2333 About Royal Hospitality LLC Royal Hospitality LLC, dba Comfort Suites, has been operating the Comfort Suites in Lake George, New York since May 2007. It filed for Chapter 11 protection (Bankr. N.D.N.Y. Case No. 10-13090) on Aug. 19, 2010. The Debtor disclosed $13,432,001 in assets and $11,154,770 in liabilities as of the Petition Date. ROYAL HOSPITALITY: U.S. Trustee Seeks to Convert Case to Chapter 7 ------------------------------------------------------------------ Tracy Hope Davis, U.S. Trustee for Region 2, asks the Bankruptcy Court for an order converting Royal Hospitality, LLC's Chapter 11 case to a case under Chapter 7. The U.S. Trustee believes the debtor's principals have engaged in gross mismanagement. Significant assets of the debtor in the form of cash are undisclosed, unaccounted for, and within the control of one person. Lisa M. Penpraze, Assistant U.S. Trustee, states that the debtor has failed to provide accurate information to the Court and other parties. The debtor's schedules of assets and liabilities does not accurately reflect its financial position as of the Petition Date because it fails to disclose a significant asset -- an unknown amount of cash kept in a secret location by Marilyn E. Stark, a principal of the debtor. Similarly, the debtor's disclosure statement and plan do not disclose the cash-on-hand kept by Mrs. Stark. Ms. Penpraze notes that another example of gross mismanagement is the fact that only Mrs. Stark has access to and knows the whereabouts of the debtor's cash. Mrs. Stark unilaterally controls the debtor's finances; only she has access to the bank accounts, only she has access to the debtor's cash, and only she knows how much cash she has removed from the debtor's cash revenue stream both pre- and post-petition. Ms. Penpraze recalls that Mrs. Stark testified that she does not maintain any written ledger of the debtor's cash-on-hand that she holds in a "secure location." Given the level of sophistication reflected in the books and records kept by the debtor and produced pursuant to the 2004 Order, it seems implausible that there is no written record of the cash taken by Mrs. Stark. However unlikely it may be that the Court would credit Mrs. Stark's assertion on this point, even if the Court assumes for the moment that no such record exists, that fact would establish gross mismanagement. By appointing herself the sole repository of the debtor's cash-on-hand, with no oversight by anyone else, Mrs. Stark has raised the specter of self-dealing with the debtor on terms known only to her. It does not appear that this debtor maintains any corporate formalities, therefore, there is no one other than Mrs. Stark who knows the details of her transactions with the debtor. Ms. Penpraze relates that a significant portion of the debtor's post-petition cash receipts have not been deposited in the debtor-in-possession account. Since the filing in August 2010, $81,994.05 in cash receipts are unaccounted for. Because Mrs. Stark exercises unilateral control of the debtor, she has a vested interest in ensuring that the debtor does not investigate her apparent improprieties or pursue its remedies against her. According to Ms. Penpraze, the Debtor's management, Mr. Stark and Mrs. Stark, have inescapable conflicts of interest with the debtor. It is undisputed that Mrs. Stark's practice is to remove large quantities of cash from the debtor's operations and hold them in a secret location, unknown and undisclosed to all others. At no time since the 2004 examination has the debtor sought this Court's intervention in order to address the issues discovered during the 2004 examination or to remove Mrs. Stark from the management of the debtor's operations. As such, the debtor's principals have breached their fiduciary duties to the bankruptcy estate and the creditors by failing to protect the debtor's assets from further dissipation. Ms. Penpraze adds that based on the debtor's general ledger, it appears that there may have been numerous avoidable transfers in the form of insider payments during the one-year period prior to the Petition Date. It does not appear that the debtor has any intention of pursuing these potentially avoidable transfers. This is further evidence of the inescapable conflict of interest between debtor's management and the debtor, as well as a breach of the fiduciary duties of debtor's management. Debtors Objects to Conversion The Debtor disputes that there is cause to convert its Chapter 11 case to one under Chapter 7 and seeks an evidentiary hearing to refute the Trustee's claims. Richard L. Weisz, Esq., at Hodgson Russ LLP, attorney for the Debtor, tells the Court that if this case is converted to Chapter 7, particularly now during the Debtor's season, the property value will decline precipitously. The Debtor will lose its franchise with Choice Hotels, it will not have sufficient staff to operate and it will not be able to pay adequate protection or any proposed Plan payments. The Debtor submits that the Trustee has misunderstood the financial information of the Debtor and has made this Application to convert in error, and to the great detriment of the Debtor's creditors. The Debtor operates on a business cycle in which it builds up cash and savings through the late summer to tide it through the winter when Lake George, N.Y., does not have the activity or visitors it has in the summer. The Debtor has always kept cash on hand for emergencies. Mr. Weisz concedes that the Debtor could have maintained better cash management records, but the Debtor is essentially a family business in which George Stark provides maintenance and building services, the Starks' sons and a daughter-in-law operates the desk service, housekeeping and other hotel services, and Marilyn Stark does everything else including managing the accounts. Marilyn Stark has not knowingly violated any Orders of the Court. The Debtor believes that it has complied with the Orders of the Court, abided by the cash collateral Orders and has effectively managed the business to the benefit of all creditors of the estate. The Debtor seeks a full evidentiary hearing to present its witnesses and demonstrate to the Court that the Trustee's Application is without merit. Mr. Weisz states that the Trustee's Motion to Convert rests completely on its conclusion that cash is missing. While the Debtor concedes minor cash reporting errors, it disputes that any money has been diverted or that there is an adverse impact to creditors for these minor paperwork deficiencies. Further, the Debtor challenges the assertion of gross mismanagement, failure to provide account information, self-dealing and conflict of interest. Mr. Weisz points out that without the efforts of the Stark Family to personally lend cash to the Debtor pre-petition, and to work for less compensation post-petition, all creditors would have lost the 100% recovery proposed in the Debtor's Plan. About Royal Hospitality LLC Royal Hospitality LLC, dba Comfort Suites, has been operating the Comfort Suites in Lake George, New York since May 2007. It filed for Chapter 11 protection (Bankr. N.D.N.Y. Case No. 10-13090) on Aug. 19, 2010. The Debtor disclosed $13,432,001 in assets and $11,154,770 in liabilities as of the Petition Date. SAVANNAH OUTLET: Can Access Cash Collateral until July 31 --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Georgia has granted Savannah Outlet Shoppes LLC authorization to continue using cash collateral of Comm 2006-C8 Gateway Boulevard Limited Partnership until July 31, 2011, in accordance with a budget. All provisions of the Final Order entered Nov. 19, 2010, will remain in full force and effect except as modified in this order. As reported in the Troubled Company Reporter on Oct. 14, 2010, the Debtor granted Comm 2006-C8 Gateway Boulevard Limited Partnership's predecessor-in-interest a first priority perfected secured interest in and to, inter alia, Debtor's real property, a commercial center located in Savannah, and the proceeds related thereto including rents to secure a debt with a present balance of approximately $10,134,000. The Debtor's real property is also encumbered by a second priority Deed to Secure Debt which is being serviced by Wells Fargo Commercial Mortgage Servicing, securing a debt of approximately $600,000. 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: Creditors Demand E&Y Earnings Report ------------------------------------------------ Ian Thoms at Bankruptcy Law360 reports that a group of creditors asked a New York bankruptcy court on Tuesday to force Ernst & Young LLP to turn over an earnings report it prepared for Ares Management LLC in relation to a proposed investment in Sbarro Inc. According to Law360, Sbarro's creditors committee said it needed the information to adequately evaluate the options for the company's bankruptcy case. 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 said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SBARRO INC: Wants Plan Filing Exclusivity Until Nov. 30 ------------------------------------------------------- BankruptcyData.com reports that Sbarro filed a motion in the U.S. Bankruptcy Court for a 120-day extension of the exclusive periods during which only the Debtors may file a Chapter 11 plan from August 2, 2011 through and including November 30, 2011 and solicit acceptances from October 1, 2011 through and including January 29, 2012. A hearing has been scheduled for July 26, 2011. 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 said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SBARRO INC: Seeks More Time to Engineer Restructuring ----------------------------------------------------- Dow Jones' DBR Small Cap reports that juggling an offer from a third-party buyer and a restructuring proposal from a first-lien lending group, Sbarro Inc. said it needs more time to carve a path out of Chapter 11. 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 said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SCC/HARMONY GROVE: Court Dismisses Chapter 11 Involuntary Case -------------------------------------------------------------- The Hon. Erithe A. Smith of the U.S. Bankruptcy Court for the Central District of California dismissed the Involuntary Chapter 11 case of SCC/Harmony Grove, LLC. The alleged Debtor filed a motion to dismiss the case and reserve jurisdiction to award it attorney's fees and costs, damages, and punitive damages, subject to proof upon dismissal of the case. The alleged Debtor explained that, among other things: 1. the petitioners, Tesla Gray and Ray Gray, have no standing to commence an involuntary case because they are not holders of claims; 2. any claims of the Grays are subject to a bona fide dispute and/or contingent; and 3. the Grays filed the involuntary petition in bad faith solely as a litigation tactic. At a June 7, hearing, the Debtor appeared by and through counsel, Robert P. Goe, of Goe & Forsythe, LLP. The alleged petitioning creditors, the Grays did not appear nor did they file any opposition to the motion. About SCC/Harmony Grove Tesla Gray and Ray Gray filed an Involuntary Chapter 11 Petition against Irvine, California-based SCC/Harmony Grove (Bank. C.D. Calif. Case No. 11-13660) on March 16, 2011. Bankruptcy Judge Erithe A. Smith presides over the case. Debtor-affiliate Palmdale Hills Property LLC, previously sought Chapter 11 petition (Bankr. Case No. 08-12206) on Jan. 6, 2009. SECUREALERT INC: Completes Acquisition of MM&S ---------------------------------------------- SecureAlert, Inc., reported the completion of its acquisition of the remaining 46.855% in outstanding capital stock of Midwest Monitoring & Surveillance, Inc., based in Minnesota. As a result of the acquisition, MM&S is now a wholly-owned subsidiary of SecureAlert, Inc. "As we focus on expanded domestic services and global growth opportunities, it made good business sense for us to exercise our option to complete the acquisition of MM&S at this time," said John L. Hastings III, President & CEO of SecureAlert, Inc. "MM&S provides not only a foundation for revenue growth, but recent MM&S contract wins are contributing to overall improved bottom line results of the Company," continued Hastings. "Additionally, the Company anticipates further financial synergies through the close collaboration and integration of the two Company's operations, personnel and sales efforts," concluded Hastings. "We are very pleased to be part of SecureAlert, Inc. and its worldwide reach and influence of the electronic monitoring industry," said Gary Shelton, General Manager and former founder and president of MM&S. Shelton further said, "I am also pleased to continue supporting the growth plan of the Company and to facilitate the profitable integration of our organizations, which will benefit our customers and employees alike. Importantly, we will continue to offer a portfolio of reliable electronic monitoring equipment and services, which has been embraced by the Company, and will be expanded through this valued relationship." In December 2007 and April of 2010, the Company had purchased a total of 53.145% of the issued and outstanding capital stock of MM&S, together with an option to purchase the remaining shares from Gary Bengtson, Gary Shelton, Larry Gardner and Sue Gardner. As consideration for the Remaining Shares of MM&S, the Company agreed to pay approximately $2,488,000 as follows: (1) a combined $500,000 in initial cash payments by August 2011; (2) a total of $650,000 in quarterly cash installment payments, beginning October 2011 and ending September 2013; (3) quarterly payments during the same period equal to 10% of the gross profits of MM&S; and (4) issuing to the Sellers a total of 2,705,264 restricted shares of the Company's common stock valued at $238,063 ($0.088 per share). About SecureAlert Inc. Sandy, Utah-based SecureAlert, Inc. (OTC BB: SCRA) -- http://www.securealert.com/-- is an international provider of electronic monitoring systems, case management and services widely utilized by more than 650 law enforcement agencies worldwide. The Company reported a net loss of $2.07 million on $3.68 million of revenue for the three months ended Dec. 31, 2010, compared with a net loss of $5.53 million on $3.20 million of total revenue for the same period a year earlier. The Company's balance sheet at March 31, 2011, showed $12.77 million in total assets, $11.06 million in total liabilities and $1.71 million in total equity. SEVERN BANCORP: Incurs $846,000 Net Loss in Q2 2011 --------------------------------------------------- Severn Bancorp, Inc., announced results for the quarter and six months ended June 30, 2011. Net loss for the second quarter was $846,000, or ($.13) per share, compared to net income of $593,000, or $.02 per share for the second quarter of 2010. Net loss was $399,000 or ($.13) per share for the six months ended June 30, 2011, compared to net income of $65,000, or ($.08) per share for the six months ended June 30, 2010. The net loss for the quarter is a result of management's decision to add approximately $3 million to the loan loss reserves during the quarter for potential losses on primarily acquisition and development loans. While non-performing assets continue to decrease, and loan delinquencies improve, management elected to add to the reserves as it continues to assess its portfolio. "While we are not pleased with its impact, management is comfortable with the decision to act in a prudent and cautious manner with respect to the allowance for loan losses. Were it not for this added reserve, the bank would have had another profitable quarter," said Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued "With the continued sluggish economy nonperforming loans remain one of our toughest challenges. However, due to our diligence in this area our overall delinquencies have decreased. This judicious reserve decision, along with our persistent efforts to be the premier community bank for the residents and businesses of Anne Arundel County, continue to put the Bank in an excellent position for a strong future." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/bzDg2z About Severn Savings Bank Founded in 1946, Severn Savings Bank, FSB -- http://www.severnbank.com/-- is a full-service community bank offering a wide array of personal and commercial banking products as well as residential and commercial mortgage lending. It has assets of nearly $1 billion and four branches located in Annapolis, Edgewater and Glen Burnie. The bank specializes in exceptional customer service and holds itself and its employees to a high standard of community contribution. Severn Bancorp, Inc., (Nasdaq: SVBI) is the parent company of Severn Savings Bank. As reported by the TCR on Nov. 25, 2009, Annapolis, Maryland- based Severn Bancorp along with its Bank unit, has entered into supervisory agreements with the Office of Thrift Supervision, the Bank's primary federal regulator. The agreements set forth steps being taken in response to regulatory concerns with its operating results and effects of the current economic environment facing the financial services industry. The Company's balance sheet at March 31, 2011, showed $967.73 million in total assets, $861.52 million in total liabilities and $106.21 million in total stockholders' equity. SHILO INN: Court OKs Coldwell Banker as Real Estate Broker ----------------------------------------------------------- The U.S. Court for the Central District of California has approved Shilo Inn, Diamond Bar, LLC,'s application to employ Coldwell Banker Commercial George Realty as Real Estate broker. Upon retention, the broker, will among other things: -- advertise and market Hotel to interested parties, -- show the hotel to interested parties -- represent theestate as seller in connection with the sale of the Hotel. In the event of a sale of the Hotel, Coldwell shall be paid a commission equal to 3% of the gross sale price. In the event of that Tommy Thai, Ellen Fu, and Tom Crosby procure a buyer and sell the property by themselves, the commission will be only 2% of the gross sale price. In the event that the Debtor procures a buyer, the commission will be only 1.5% of the gross price sale. Pomona, California-based Shilo Inn, Diamond Bar, LLC, operates a 161 room full -- service hotel located in Pomona, California, pursuant to a franchise agreement with Shilo Franchise International, LLC. It filed for Chapter 11 bankruptcy protection on November 29, 2010 (Bankr. C.D. Calif. Case No. 10-60884). David B. Golubchik, Esq., at Levene Neale Bender Rankin & Brill LLP, serves as the Debtor's bankruptcy counsel. SHOPS AT PRESTONWOOD: Banks Want Case Converted to Chapter 7 ------------------------------------------------------------ Valliance Bank, First National Bank, and Property Tax Solutions LLC ask the Hon. Harlin D. Hale of the U.S. Bankruptcy Court for the Northern District of Texas to convert the Chapter 11 case of the Shops at Prestonwood LP to Chapter 7 liquidation proceeding or, in the alternative, dismiss the Debtor's case. A hearing is set for Aug. 8, 2011, at 9:00 a.m., to consider the creditors request. The Creditors point that the Debtor has zero cash, that all of its real property assets are encumbered, and that its affiliates are unsecured creditors. The Debtor has not equity in any of its real estate and no cash to develop Phase II of its current development. The Debtor is relying on a March 2007 appraisal to assert its position that equity exists in the 17=acre parcel of unimproved real property which lies adjacent to its current development, according to the creditors. The Creditors add that the Debtor has no ability to reorganize and no ability to adequate protect its current secured creditors. The Debtor has no operating income and is incurring deepening losses while operating in Chapter 11. Abernathy Roeder Boyd & Joplin PC represents Valliance Bank; Owens Clary & Aiken LLP represents First National Bank; and Cantey Hanger LLP represents Property Tax. About The Shops at Prestonwood Addison, Texas-based The Shops at Prestonwood, LP's primary assets consist of approximately 144 residential townhome lots and an additional 17.170 acres of residential undeveloped land located within the Shops at Prestonwood subdivision in Denton County, Texas. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-32209) on April 1, 2011. Melissa S. Hayward, Esq., at Franklin Skierski Lovall Hayward LLP, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $18,200,000 in assets and $14,151,239 in liabilities as of the Chapter 11 filing. No creditors' committee, trustee nor examiner has been appointed in the case. SOUPMAN INC: Posts $1.6 Million Net Loss in May 31 Quarter ----------------------------------------------------------- Soupman, Inc., formerly Passport Arts, Inc., reported a net loss of $1.6 million on $411,654 of revenues for the three months ended May 31, 2011, compared with a net loss of $6,559 on $4,351 of revenues for the three months ended May 31, 2010. For the nine months ended May 31, 2011, net loss was $4.1 million on $760,451 of revenues, compared with a net loss of $39,958 on $10,141 of revenue for the nine months ended May 31, 2010. At May 31, 2011, the Company's balance sheet showed $1.1 million in total assets, $6.2 million in total liabilities, all current, and a stockholders' deficit of $5.1 million. MaloneBailey, LLP, in Houston, Tex., expressed substantial doubt about Passport Arts Inc., n/k/a Soupman, Inc.'s ability to continue as a going concern, following the Company's results for the fiscal year ended Aug. 31, 2010. The independent auditors noted that Passport Arts is yet to attain profitable operations. A copy of the Form 10-Q is available at http://is.gd/OmyZwm Staten Island, New York-based Soupman, Inc. (OTC BB: SOUP) currently markets, manufactures and sells soup to grocery chains and other outlets and to its franchised restaurants under the brand name "The Original Soupman". SOUTH DAKOTA: A.M. Best Upgrades Issuer Credit Rating to 'bb+' -------------------------------------------------------------- A.M. Best Co. has upgraded the issuer credit rating to "bb+" from "bb" and affirmed the financial strength rating of B (Fair) of South Dakota State Medical Holding Company, Inc. d/b/a DAKOTACARE (Sioux Falls, SD). The outlook for both ratings has been revised to positive from stable. The ICR upgrade and revised outlook reflects the significant improvement in DAKOTACARE's operating performance and capitalization over the past two years since it exited the Medicare Advantage Special Needs Plan at the end of 2008. The company's underwriting results continued to improve in 2010, a trend that has continued into the first quarter of 2011. DAKOTACARE's improvement in risk-based capital measures over the past few years was driven by improved operating results and the loss of the Medicare Advantage premium in 2009. Offsetting rating factors include the single state operations, which subject the company to geographic concentration and regulatory risk. Furthermore, DAKOTACARE faces competitive pressures from several local players including a Blue Cross Blue Shield plan and provider-owned systems. SOUTHWEST GEORGIA: Has Until Aug. 4 to Propose Chapter 11 Plan -------------------------------------------------------------- The Hon. James D. Walker of the U.S. Bankruptcy Court for the Middle District Florida extended Southwest Georgia Ethanol, LLC's exclusive periods to file and solicit acceptances for the proposed chapter 11 plan until Aug. 4, 2011, and Oct. 4, respectively. As reported in the Troubled Company Reporter on June 17, the Debtor asks that the Court extend its exclusive periods to file and solicit acceptances for the proposed chapter 11 plan until Sept. 1, 2011, and Nov. 1, respectively. The Debtor said it needs more time to negotiate and prepare adequate information. The Debtor has also commenced substantial additional exchanges of information and negotiations with secured lenders, the Official Committee of Unsecured Creditors, and parties-in-interest in the case. The Debtor added that its financial advisors have engaged in preliminary analyses supporting its prospects for a successful reorganization. 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. SOUTHWEST GEORGIA: Has Until Aug. 30 to Assume or Reject Leases --------------------------------------------------------------- The Hon. James D. Walker of the U.S. Bankruptcy Court for the Middle District Florida extended until Aug. 30, 2011, Southwest Georgia Ethanol, LLC's time to assume or reject unexpired leases of nonresidential real property. The Debtor needed additional time to review its books and records to determine how many unexpired leases exist to which it is a lessee. It also needed more time to analyze the treatment of any such unexpired leases as part of the Debtor's formulation od a plan of reorganization. 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. SPOT MOBILE: LV Administrative Demands Payment of $1.32 Million --------------------------------------------------------------- As previously disclosed, on June 6, 2011, Spot Mobile International Ltd. received a notice of default from LV Administrative Services, Inc., as administrative and collateral agent for Valens Offshore SPV II, Corp., Valens U.S. SPV I, LLC, Laurus Master Fund, Ltd. (In Liquidation), under that certain Master Security Agreement, dated Feb. 24, 2010, executed by the Company and Mr. Prepaid, Inc., the Company's wholly-owned subsidiary, and a Secured Term Note, dated Feb. 24, 2010, issued by the Company in favor of the Creditor Parties. On July 12, 2011, the Company received a further notice from the Creditor Parties regarding the acceleration of all amounts due under the Secured Term Note and demanding payment of $1,323,366. The notice states that if payment was not made by July 14, 2011, the Creditor Parties would proceed to enforce all of their rights and remedies under the loan documents. About Spot Mobile Spot Mobile, formerly Rapid Link Incorporated -- http://www.rapidlink.com/-- is a telecommunications services company which, through its wholly owned subsidiary, provides prepaid telecommunication and transaction based point of sale activation solutions through 1,000 independent retailers in the Eastern United States. The Company also provides long distance services and plans to expand its product offering to include mobile and wireless services. The Company reported a net loss of $3.56 million on $16.08 million of revenue for the year ended Oct. 31, 2010, compared with a net loss of $712,601 on $23.74 million of revenue during the prior year. The Company's balance sheet at Jan. 31, 2011, showed $3.32 million in total assets, $5.22 million in total liabilities and $1.90 million in total shareholders' deficit. WASHINGTON LOOP: ROBI Wants Case Dismissed or Converted ------------------------------------------------------- ROBI1956 LLC asks the U.S. Bankruptcy Court for the Middle District of Florida to dismiss the Chapter 11 case of Washington Loop LLC or convert the case to Chapter 7 liquidation proceeding. A hearing is set for Aug. 11, 2011, at 09:00 a.m., at in Room 4- 117, Courtroom E, United States Courthouse, 2110 First Street, Ft. Myers, Florida. According to ROBI1956, the Debtor failed to (i) satisfy timely any filing or reporting requirement, (ii) comply with an order of the Court, and (iii) file a plan of reorganization on June 30, 2011. ROBI1956 says the Debtor sought Court permission to file a plan on July 5, 2011, but no plan was filed on that date. Andrew C. Ozete, Esq., at Bamberger, Foreman, Oswald & Hahn, LLP, represents ROBI1956. Mr. Ozete says ROBI1956 is the holder of a judgment of foreclosure authorizing the sale of substantially all of the Debtor's real estate Collaboratively to ROBI1956. About Washington Loop, LLC Punta Gorda, Florida-based Washington Loop, LLC, a Limited Liability Company, filed for Chapter 11 bankruptcy protection on March 31, 2011 (Bankr. M.D. Fla. Case No. 11-06053). Joel S. Treuhaft, Esq., who has an office in Palm Harbor, Florida, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $45,098,259 in assets and $19,703,694 in liabilities as of the Chapter 11 filing. The Debtor was dismissed from a prior Chapter 11 case, (Case No. 9:10-27981) by order of the Court entered on March 17, 2011. In the Debtor's prior Chapter 11 case, the Debtor's Schedule F, as filed under penalty of perjury, listed some 34 general unsecured creditors totaling claims of $1,953,354. In that case, the Debtor, under penalty of perjury listed all Schedule F debts and non-contingent, liquidated, and undisputed. The Debtor now declares, under penalty of perjury, that all Schedule F debts are unliquidated. These schedules were filed no less than two weeks after the dismissal of the prior Chapter 11 case, and only six weeks after the Debtor filed its Schedule F in that case. WASHINGTON MUTUAL: Starts Second Try for Chapter 11 Plan Approval ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the hearing for approval of Washington Mutual Inc.'s Chapter 11 plan resumed July 18 and will continue through July 21. Three days of hearings were held last week. The plan for the bank holding company is being opposed by shareholders, who are to receive nothing. They contend some creditors traded in WaMu securities based on non-public information. The bankruptcy court already approved the settlement underlying the plan. WaMu's sixth amended plan resulted from the bankruptcy judge's 109-page opinion in January explaining why she couldn't confirm a prior version. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. The Debtor tapped Valuation Research Corporation as valuation service provider for certain assets. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unsecured Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. The official committee of equity security holders also tapped BDO USA as its tax advisor. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired the WaMu bank unit's assets prior to the Petition Date. On Jan. 7, 2011, the U.S. Bankruptcy Court for the District of Delaware entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A., upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. Additionally, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. Washington Mutual has filed with the Bankruptcy Court a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement. WASHINGTON MUTUAL: Shareholders Question Value of Reorganized WaMu ------------------------------------------------------------------ Lance Duroni at Bankruptcy Law360 reports that Washington Mutual Inc. and its shareholders continued to spar Friday in Delaware over the value of the reinsurance business set to emerge from WaMu's bankruptcy, but the hearing on its Chapter 11 plan -- and insider trading allegations -- will extend into this week. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. The Debtor tapped Valuation Research Corporation as valuation service provider for certain assets. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unsecured Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. The official committee of equity security holders also tapped BDO USA as its tax advisor. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired the WaMu bank unit's assets prior to the Petition Date. On Jan. 7, 2011, the U.S. Bankruptcy Court for the District of Delaware entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A., upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. Additionally, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. Washington Mutual has filed with the Bankruptcy Court a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement. The Company believes that the Modified Plan has addressed the Bankruptcy Court's concerns and looks forward to returning to the Bankruptcy Court to seek confirmation of the Modified Plan. WATERSCAPE RESORT: Loses Bid to Exit From Bankruptcy ---------------------------------------------------- Christie Smythe at Bankruptcy Law360 reports that the developers of New York's new Cassa NY Hotel fell short of winning approval Wednesday from a New York bankruptcy judge for a plan to emerge from a brief stint in Chapter 11 protection as they struggled to work out disputes with contractors. Law360 relates that Judge Stuart M. Bernstein said that he would adjourn a confirmation hearing on the reorganization plan to allow for debtor Waterscape Resort LLC to further negotiate over its proposal to refinance existing debt while allowing contractors to continue to litigate. About Waterscape Resort Waterscape Resort LLC, aka Cassa NY Hotel And Residences, is a Delaware limited liability company formed on or about Jan. 24, 2005. The principal office of the Debtor is at 15 West 34th Street, New York, New York 10001. On July 19, 2005, Waterscape acquired the property, consisting of the three contiguous buildings at 66, 68 and 70 West 45th Street in Manhattan, for the sum of $20 million to develop the property into a 45-storey condominium project including a luxury hotel, a restaurant and luxury residential apartments. The purchase was financed with a $17 million acquisition loan and mortgage from U.S. Bank Association. Construction of the hotel and residential units, given the name Cassa NY Hotel and Residences, commenced in July 2007. By the end of September 2010, the hotel and residential units were completed. The Debtor generates its revenue from guests who stay at the hotel and in the Debtor's residential condominium units, and from sales of unsold residential condominium units. The Debtor's hotel and rental business has produced gross revenues of approximately $17 million to $18 million on an annual basis, and by the end of September 2010, the Debtor had sold five residential apartment units for a total of approximately $12,710,340. The Debtor's Cassa NY Hotel and Residences features 165 hotel rooms, and above the hotel units, 57 residences. The Debtor's restaurant will occupy the first level below ground, but will be visible from the ground floor hotel lobby. The Debtor's restaurant is not yet open for business. The Debtor has for several months been embroiled in litigation with numerous contractors and subcontractors who have asserted alleged mechanics lien claims against the Property totaling approximately $20 million. As of the Petition Date, the Debtor had outstanding approximately $134.4 million of secured loan principal obligations under credit facilities with US Bank and USB Capital Resources, Inc. The debt is secured by liens upon all of the assets of the Debtor, including mortgages on the Debtor's real property, together with liens on all rents, proceeds and cash of the Debtor, pledges of member interests in Waterscape, and guarantees by Waterscape members and other third-party grantors. The Debtor's secured debt was incurred under three separate agreements for: (i) an acquisition and project loan; (ii) a construction loan; and (iii) a mezzanine loan; each of which was made in connection with the acquisition or development of the Debtor's property. Over the last several months, the Debtor engaged in extensive negotiations with the Secured Lenders regarding the parameters of a comprehensive restructuring. The Debtor also engaged in extensive marketing efforts and negotiations to sell its hotel assets to a non-insider buyer. The restructuring discussions between the Debtor and the Secured Lenders reached an impasse, and on March 21, 2011, UBS, the junior of the two Secured Lenders, filed a foreclosure action against the Debtor in the Supreme Court of the State of New York, County of New York. The Debtor then filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-11593) on April 5, 2011. Brett D. Goodman, Esq., and Lee William Stremba, Esq., at Troutman Sanders LLP represent the Debtor as Bankruptcy Counsel. Holland & Knight LLP serves as its special litigation counsel. The Debtor disclosed $214,285,027 in assets and $158,756,481 in liabilities as of the Chapter 11 filing. WECK CORP: Plan Confirmation Hearing Scheduled for Aug. 24 ---------------------------------------------------------- The Hon. Arthur J. Gonzalez of the Bankruptcy Court for the Southern District of New York will convene a hearing on Aug. 24, 2011, at 9:30 a.m. (prevailing Eastern Time), to consider confirmation of the First Amended Plan of Liquidation proposed by The Weck Corporation, et al. and the Official Committee of Unsecured Creditors in the Debtors' cases. Objections, if any, are due Aug. 17, 2011 at 4:00 p.m. The Debtors may file and serve replies or an omnibus reply to any such objections no later than 12:00 p.m. on Aug. 22. Ballots accepting or rejecting the plan are due on Aug 12, at 4:00 p.m. As reported in the Troubled Company Reporter on April 18, the Plan will facilitate the liquidation of the Debtors' estates and the distribution of their remaining assets -- principally cash -- to holders of allowed claims. Under the Plan, among other things, holders of unsecured claims are expected to recover between 3% and 7% of their allowed claim. Each holder paid its pro rata distribution of the liquidated assets of the estates after the payment of the administrative claims, priority claims, secured claims and plan expenses. Equity interest will be deemed canceled. The TCR reported on June 9 that the Debtors filed an amended Plan and Disclosure Statement. A full-text copy of the First Amended Plan, dated May 23, 2011, is available for free at: http://ResearchArchives.com/t/s?7631 About The Weck Corporation The Weck Corporation filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. S.D.N.Y. Case No. 10-14349). Mark T. Power, Esq., at Hahn & Hessen LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Affiliates Weck Chelsea, LLC (Bankr. S.D.N.Y. Case No. 10-14353), Gracious Home.com, LLC (Bankr. S.D.N.Y. Case No. 10-14351), and West Weck, LLC (Bankr. S.D.N.Y. Case No. 10-14350) filed separate Chapter 11 petitions on August 13, 2010. WESTERN INSURANCE: A.M. Best Downgrades FSR to 'B' -------------------------------------------------- A.M. Best Co. has downgraded the financial strength rating to B (Fair) from B++ (Good) and the issuer credit ratings to "bb" from "bbb" of Western Insurance Company (WIC) and Western Bonding Company (WBC) (both companies are headquartered in Reno, NV). The outlook for all ratings is negative. The ratings of WIC reflect its weakened risk-adjusted capitalization, continued exposure to contractors in the troubled economies of California and Nevada and loss of its Treasury listing (T-listing) on July 1, 2011. The loss of the T-listing will preclude WIC from writing bonds for federal construction projects. In addition, there is uncertainty over WIC's loss reserve adequacy, as well as a concentration of loans to contractors that are mostly collateralized by illiquid real estate. Offsetting these negative rating factors is the company's successful entry into bail bonds with a partnership involving Two Jinn, Inc., in California. The ratings of WBC reflect its strong balance sheet with no debt and T-listing, which will allow the company to write federal surety bonds. Offsetting these positive rating factors is the company's limited scope of operations, including geographic and product concentrations, limited distribution sources and minimal premium volume. In addition, the issues at WIC may indirectly impact WBC should WIC's financial condition place undue strain on the capitalization and liquidity of the parent holding company, A and H Insurance, Inc., which could in turn put pressure on WBC. The outlook reflects A.M. Best's concern that management will be challenged in the near term to improve the balance sheet strength and operating performance of WIC, as well as the execution risk in developing WBC's business profile and ability to attract profitable business. XAVIER REALTY: Case Summary & Largest Unsecured Creditor -------------------------------------------------------- Debtor: Xavier Realty LLC 4 Rockspray Ct Howell, NJ 07731 Bankruptcy Case No.: 11-30961 Chapter 11 Petition Date: July 13, 2011 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Raymond T. Lyons Jr. Debtor's Counsel: Andre L. Kydala, Esq. LAW FIRM OF ANDRE L. KYDALA 12 Lower Center Street P.O. Box 5537 Clinton, NJ 08809 Tel: (908) 735-2616 Fax: (908) 735-0765 E-mail: kydalalaw@aim.com Scheduled Assets: $2,000,100 Scheduled Debts: $90,586 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ MDSASS Property taxes $90,586 Attn Gary Zeitz 201 Barclay Pavilion West Cherry Hill, NJ 08034 The petition was signed by Robert Kalinofski, member. XODTEC LED: Delays Filing of Quarterly Report on Form 10-Q ---------------------------------------------------------- Xodtec LED, Inc., notified the U.S. Securities and Exchange Commission that it will be late in filing its Quarterly Report on Form 10-Q for the period ended May 31, 2011. The Company said that the compilation, dissemination and review of the information required to be presented in the Form 10-Q for the relevant period has imposed time constraints that have rendered timely filing of the Form 10-Q impracticable without undue hardship and expense to the Company. The Company undertakes the responsibility to file such report no later than five days after its original prescribed due date. About Xodtec LED Headquartered in Jhonghe City, Taiwan, Xodtec LED, Inc. is a Nevada corporation incorporated on November 29, 2006, under the name Sparking Events, Inc. On June 28, 2009, the Company's corporate name was changed to "Xodtec Group USA, Inc." and on May 17, 2010, the Company's corporate name was changed to "Xodtec LED, Inc." The Company, through its subsidiaries, is engaged in the design, marketing and selling of advanced lighting solutions which are designed to use less energy and have a longer life than traditional incandescent, halogen, fluorescent light sources. The Company's wholly-owned subsidiaries, Xodtec Technology Co., Ltd.; Targetek Technology Co., Ltd.; UP Technology Co., Ltd., are organized under the laws of the Republic of China (Taiwan). The Company also owns a 35% interest in Radiant Sun Development S.A., a company organized under the laws of the Independent State of Samoa. The Company reported a net loss of $1.59 million on $1.03 million of revenue for the year ended Feb. 28, 2011, compared with a net loss of $2.23 million on $991,645 of revenue during the prior year. The Company's balance sheet at Feb. 28, 2011, showed $1.53 million in total assets, $4.06 million in total liabilities and a $2.52 million total stockholders' deficit. As reported by the TCR on June 20, 2011, Simon & Edward, LLP, in City of Industry, California, expressed substantial doubt about the Company's ability to continue as a going concern, following the results for the year ended Feb. 28, 2011. The independent auditors noted that the Company has incurred significant operating losses, has serious liquidity concerns and may require additional financing in the foreseeable future. XZERES CORP: Posts $2 Million Net Loss in May 31 Quarter -------------------------------------------------------- XZERES Corp. reported a net loss of $2.0 million on $1.0 million of revenues for the three months ended May 31, 2011, compared with a net loss of $641,256 on $4,385 of revenues for the three months ended May 31, 2010. The Company's balance sheet at May 31, 2011, showed $5.2 million in total assets, $1.1 million in total liabilities, and stockholders' equity of $4.1 million. A copy of the Form 10-Q is available at http://is.gd/c0MOLn As reported in the TCR on June 1, 2011, Silberstein Ungar, PLLC, in Bingham Farms, Michigan, expressed substantial doubt about XZERES Corp.'s ability to continue as a going concern, following the Company's fiscal 2011 results. The independent auditors noted that the Company has incurred losses from operations, has negative working capital, and is in need of additional capital to grow its operations so that it can become profitable. About XZERES Corp. XZERES Corp. is located in Portland, Oregon, and was originally incorporated in the state of New Mexico in January of 1984. The Company was engaged in the natural gas and asphalt businesses until 2007, at which time it liquidated its assets and operations and distributed the net proceeds to its shareholders after paying its debts. On Oct. 2, 2008, the Company re-domiciled from New Mexico to Nevada in anticipation of pursuing the wind turbine business. The Company commenced operations in the wind turbine business in the fiscal quarter ended May 31, 2010. The Company formed two subsidiaries during the year ended Feb. 28, 2011. XZERES Energy Services Corp. was incorporated in Nevada in January 2011 and XZERES Wind Europe Limited was formed in Ireland in October 2010. The Company is in the business of designing, developing, and marketing small wind turbine systems and related equipment for electrical power generation, specifically for use in residential, small business, rural electric utility systems, other rural locations, and other infrastructure applications. The Company employs proprietary technology, including power electronics, alternator design, and blade design to increase performance, reliability, and sound suppression. The Company also works with manufacturers of inverters, lightning protection equipment and towers to integrate their equipment into the Company's products. YAVAPAI COUNTY: Files For Chapter 7 Bankruptcy ---------------------------------------------- Thoroughbred Times reports that the Yavapai County Farm and Agriculture Association, which operates Yavapai Downs horse raising track, has filed for protection under Chapter 7 of the U.S. Bankruptcy Code. The filing, which comes less than two months after the Arizona racetrack was forced to cancel its live meeting due to the non- profit Yavapai County's ongoing financial issues, was made before the U.S. Bankruptcy Court for the District of Arizona, according to Thoroughbred Times. The report relates that Yavapai County Farm and Agriculture Association cited a combination of "overwhelming financial pressures," as a reason for its filing, "including $14.5-million in loans and interest due to the U.S. Department of Agriculture; hundreds of thousands of dollars of debt owed to Yavapai Downs' racing-industry partners, and the county's recent re-assessment that increased the fairgrounds' property taxes approximately ten- fold." "While it is with deep regret that we take this step today, it is with great energy and optimism for tomorrow that we approach the challenge of revitalizing this property," statement from the Yavapai County Farm and Agriculture Association said. "Toward that end, we have entered into detailed discussions with many interested parties, and, in the weeks to come, we will begin discussions with many of the nation's top business people. They have made known their strong interest in, and their desire to pursue, the opportunities this facility will provide in the future." According to Thoroughbred Times, Yavapai Downs canceled its 56-day meeting on May 25, just days before it was scheduled to open. The track's operators made last-ditch attempts to convene a new operating partnership and a restructure, but were unsuccessful, the report discloses. The status of this year's county fair also remains uncertain, Thoroughbred Times notes. The Yavapai County Farm and Agriculture Association named Randy Nussbaum, an attorney who specializes in business bankruptcy, as its representative in the bankruptcy process, Thoroughbred Times adds. The Yavapai County Farm and Agriculture Association has operated the fairgrounds since taking over the property's assets from the Yavapai County Fair Association in 2009. It has managed the annual race meeting at Yavapai Downs, the Yavapai County Fair, and the Coors Event Center, and it leases a portion of fairgrounds' property to the privately run motorsports facility Prescott Valley Raceway. YELLOWSTONE CLUB: Patten Says Court Can't Hear Malpractice Suit --------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that Patten Peterman Bekkedahl & Green PLLC on Thursday argued that a Montana federal court lacks jurisdiction to hear claims seeking $375 million over its alleged malpractice in the Yellowstone Club's bankruptcy case, alleging the plaintiff did not have the bankruptcy court's permission to file the suit. According to Law360, Timothy Blixseth, co-founder of the Yellowstone Club resort, alleges that Patten Peterman, debtor's counsel in the reorganization, conspired with his former attorney and head of the creditors' committee to pin the bankruptcy on him. About Yellowstone Club Located near Big Sky, Montana, Yellowstone Club -- http://www.theyellowstoneclub.com/-- is a private golf and ski community with more than 350 members, including Bill Gates and Dan Quayle. The Company was founded in 1999. Yellowstone Mountain Club LLC and its affiliates filed for Chapter 11 on Nov. 10, 2008 (Bankr. D. Mont. Case No. 08-61570). The Company's owner affiliate Edra D. Blixseth, filed for Chapter 11 on March 27, 2009 (Bankr. D. Mont. Case No. 09-60452). In June 2009, the Bankruptcy Court entered an order confirming Yellowstone's Chapter 11 Plan. Pursuant to the Plan, CrossHarbor Capital Partners, LLC, acquired equity ownership in the reorganized club for $115 million. Attorneys at Bullivant Houser Bailey PC and Bekkedahl & Green PLLC, represented the Debtors. The Debtors hired FTI Consulting Inc. and Ronald Greenspan as CRO. The official committee of unsecured creditors were represented by Parsons, Behle and Latimer, as counsel, and James H. Cossitt, Esq., at local counsel. Credit Suisse, the prepetition first lien lender, was represented by Skadden, Arps, Slate, Meagher & Flom. The Court entered an order confirming The Yellowstone Club's Chapter 11 Plan of Reorganization in June 2009. * 2nd Circ. Backs Matrix's $9-Mil. Breach for Dunkin Donuts Stores ------------------------------------------------------------------ Samuel Howard at Bankruptcy Law360 reports that the Second Circuit on Thursday affirmed a $9 million penalty for Matrix Realty Group Inc. after the company reneged on an agreement to buy a string of Dunkin' Donuts franchises out of bankruptcy for $27 million. In a summary order, Law360 says, the appeals court upheld the $9 million breach of contract judgment and flatly rejected Matrix's claim that it properly terminated the sales contract for some 27 Dunkin' Donuts locations in Westchester, N.Y., after Dunkin as franchisor objected to the deal. * Right to Jury Trial Waived by Filing Copyright Claim ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a plaintiff on a copyright violation claim waived the right to a jury trial by filing a proof of claim in a bankruptcy case, U.S. District Judge David Doty in Minneapolis ruled July 14. Judge Doty noted that appeals courts are divided. The Court of Appeals in New Orleans says there is a right to a jury trial despite filing a claim while the Court of Appeals in New York holds that filing a claim waives the jury. Judge Doty sided with the Second Circuit in New York by saying that the jury trial right was waived. The case is Pearson Education Inc. v. Almgren, 11-496, U.S. District Court, District of Minnesota (Minneapolis). * Spending $300 Monthly on Cigarettes Not Unreasonable ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that spending $300 a month on cigarettes and another $300 on recreation isn't automatically unreasonable, U.S. District Judge Thomas L. Ludington in Detroit ruled on July 14 in upholding confirmation of a Chapter 13 plan. Creditors challenged approval of the bankrupts' repayment plan in Chapter 13, contending that cigarette and entertainment expenses were unreasonable in calculating disposable income left for payment to creditors. Following other courts, Judge Ludington said cigarette consumption is not "per se unreasonable" because it is a legal activity. He also said the bankruptcy judge didn't err in finding entertainment expense reasonable because the couple had minor children. The case is Dow Chemical Employees Credit Union v. Collins, 10-20718, U.S. District Court, Eastern District Michigan (Detroit). * U.S. Bank Failures Slow So Far But Will Likely Remain Elevated ---------------------------------------------------------------- Dow Jones' DBR Small Cap reports that U.S. bank failures have slowed in 2011 from the flood of recent years, but a large reservoir of problem banks will keep the failure rate relatively high as regulators slog through the backlog. * Economic Crisis Threatens Greek Community Paper in Istanbul ------------------------------------------------------------- Dow Jones' DBR Small Cap reports that the impact of Greece's economic crisis has reached Istanbul, where the Greek minority's main newspaper, the 86-year-old Apoyevmatini, is under threat of closure, Agence France-Presse reported. * New Legislation Aims to Bar Bankruptcy-Venue Shopping ------------------------------------------------------- Dow Jones' DBR Small Cap reports that Republican Rep. Lamar Smith and Democratic Rep. John Conyers Jr. have teamed up to propose legislation that would bar companies from strategically seeking bankruptcy protection in a faraway court deemed friendly to their interests rather than where they operate. Ranking Member John Conyers, Jr. (D-Mich.) along with House Judiciary Committee Chairman Lamar Smith (R-Texas) introduced legislation to prevent forum-shopping in chapter 11 bankruptcy reorganization cases, according to American Bankruptcy Institute. * U.S. Business Bankruptcy Filings Drop in June ----------------------------------------------- American Bankruptcy Institute reports that fewer struggling U.S. businesses sought bankruptcy protection in June, leading nationwide filing numbers to drop 1.8 percent from May, to 6,481 cases, and continuing a pattern that began to take shape earlier this year. * More Small Business Owners Sell as Values Remain Depressed ------------------------------------------------------------ Dow Jones' DBR Small Cap reports that more small-business owners sold their companies in the second quarter, but there's gloom surrounding the transactions. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- A&W REV ROYAL-UT AWRRF US 179.2 (147.6) 3.6 A&W REV ROYAL-UT AW-U CN 179.2 (147.6) 3.6 ABSOLUTE SOFTWRE ABT CN 116.3 (12.0) (12.6) ACCO BRANDS CORP ABD US 1,094.2 (77.0) 293.1 ALASKA COMM SYS ALSK US 609.8 (27.4) 6.3 AMER AXLE & MFG AXL US 2,167.8 (415.4) 60.4 AMR CORP AMR US 27,113.0 (3,949.0) (1,028.0) ANOORAQ RESOURCE ARQ SJ 1,024.0 (77.0) 20.9 AUTOZONE INC AZO US 5,884.9 (1,119.5) (655.3) BLUEKNIGHT ENERG BKEP US 323.5 (35.1) (85.8) BOSTON PIZZA R-U BPF-U CN 148.2 (100.1) 1.3 CABLEVISION SY-A CVC US 8,962.9 (6,462.4) (309.5) CADIZ INC CDZI US 46.7 (2.1) 2.1 CC MEDIA-A CCMO US 16,938.6 (7,280.4) 1,644.2 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,439.5 (333.5) 208.1 CHENIERE ENERGY CQP US 1,776.3 (547.6) 24.4 CHENIERE ENERGY LNG US 2,564.4 (509.7) 87.4 CHOICE HOTELS CHH US 412.4 (49.0) (1.9) CINCINNATI BELL CBB US 2,636.2 (650.4) 6.4 CLOROX CO CLX US 4,051.0 (82.0) (28.0) COLUMBIA LABORAT CBRX US 27.8 (2.6) 11.5 DENNY'S CORP DENN US 296.8 (102.3) (36.9) DIRECTV-A DTV US 20,593.0 (678.0) 2,813.0 DISH NETWORK-A DISH US 10,280.6 (502.5) 705.1 DISH NETWORK-A EOT GR 10,280.6 (502.5) 705.1 DOMINO'S PIZZA DPZ US 487.4 (1,167.7) 167.9 DUN & BRADSTREET DNB US 1,825.5 (615.8) (321.8) EPICEPT CORP EPCT SS 12.4 (6.0) 6.0 EXELIXIS INC EXEL US 495.7 (68.7) 126.1 FREESCALE SEMICO FSL US 4,097.0 (5,076.0) 1,468.0 GENCORP INC GY US 987.3 (161.1) 94.3 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GRAHAM PACKAGING GRM US 2,943.5 (501.5) 313.1 HANDY & HARMAN L HNH US 372.2 (23.9) 13.2 HCA HOLDINGS INC HCA US 23,809.0 (7,788.0) 2,719.0 HUGHES TELEMATIC HUTC US 108.8 (62.4) (16.0) IDENIX PHARM IDIX US 54.9 (40.6) 19.6 INCYTE CORP INCY US 459.6 (104.0) 315.8 IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 131.7 (161.7) 6.6 JUST ENERGY GROU JE CN 1,588.6 (219.4) (303.2) KNOLOGY INC KNOL US 823.7 (4.0) 42.7 LIN TV CORP-CL A TVL US 797.4 (127.9) 38.6 LIZ CLAIBORNE LIZ US 1,255.8 (124.5) (26.5) LORILLARD INC LO US 3,590.0 (449.0) 1,290.0 MAINSTREET EQUIT MEQ CN 453.0 (10.2) - MANNKIND CORP MNKD US 254.8 (203.5) 26.2 MEAD JOHNSON MJN US 2,465.4 (250.4) 572.3 MERITOR INC MTOR US 2,675.0 (1,006.0) 205.0 MOODY'S CORP MCO US 2,524.4 (223.2) 498.6 MORGANS HOTEL GR MHGC US 692.8 (29.2) 205.1 MPG OFFICE TRUST MPG US 2,725.0 (1,082.2) - NATIONAL CINEMED NCMI US 796.4 (327.0) 74.0 NAVISTAR INTL NAV US 9,966.0 (764.0) 1,819.0 NEXSTAR BROADC-A NXST US 582.6 (181.2) 40.0 NPS PHARM INC NPSP US 158.3 (159.7) 117.8 NYMOX PHARMACEUT NYMX US 10.0 (3.3) 6.8 ODYSSEY MARINE OMEX US 25.7 (8.1) (14.0) OTELCO INC-IDS OTT-U CN 319.2 (7.6) 22.4 OTELCO INC-IDS OTT US 319.2 (7.6) 22.4 PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 248.7 (371.2) (161.6) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PRIMEDIA INC PRM US 208.0 (91.7) 3.6 PROTECTION ONE PONE US 562.9 (61.8) (7.6) PURE INDUSTRIAL AAR-U CN 277.1 (8.6) - QUALITY DISTRIBU QLTY US 281.4 (124.4) 40.9 QUANTUM CORP QTM US 431.0 (61.1) 97.9 QWEST COMMUNICAT Q US 16,849.0 (1,560.0) (2,828.0) RAPTOR PHARMACEU RPTP US 20.5 (14.6) (21.4) REGAL ENTERTAI-A RGC US 2,323.2 (541.6) (114.5) RENAISSANCE LEA RLRN US 49.9 (31.4) (36.6) REVLON INC-A REV US 1,105.5 (686.5) 132.7 RSC HOLDINGS INC RRR US 2,817.4 (62.2) (71.6) RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,707.0 (340.6) 418.5 SINCLAIR BROAD-A SBGI US 1,571.2 (144.6) 60.4 SINCLAIR BROAD-A SBTA GR 1,571.2 (144.6) 60.4 SMART TECHNOL-A SMT US 546.2 (43.3) 173.7 SMART TECHNOL-A SMA CN 546.2 (43.3) 173.7 SPIRIT AIRLINES SAVE US 545.2 (97.0) 27.6 SUN COMMUNITIES SUI US 1,160.1 (111.7) - SWIFT TRANSPORTA SWFT US 2,555.7 (9.8) 204.6 TAUBMAN CENTERS TCO US 2,535.6 (512.8) - TEAM HEALTH HOLD TMH US 832.2 (25.7) 44.8 THERAVANCE THRX US 315.1 (27.8) 266.9 TOWN SPORTS INTE CLUB US 460.0 (4.7) (15.4) UNISYS CORP UIS US 2,949.3 (692.1) 547.6 UNITED RENTALS URI US 3,692.0 (29.0) 123.0 US AIRWAYS GROUP LCC US 8,217.0 (30.0) (104.0) VANGUARD HEALTH VHS US 4,162.2 (186.6) 356.5 VECTOR GROUP LTD VGR US 924.6 (61.4) 294.8 VENOCO INC VQ US 815.6 (21.6) 8.1 VERISK ANALYTI-A VRSK US 1,286.4 (109.1) (180.8) VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) VONAGE HOLDINGS VG US 251.7 (102.0) (39.2) WARNER MUSIC GRO WMG US 3,617.0 (254.0) (650.0) WEIGHT WATCHERS WTW US 1,126.0 (636.6) (345.4) WESTMORELAND COA WLB US 788.0 (173.9) (1.0) WORLD COLOR PRES WC CN 2,641.5 (1,735.9) 479.2 WORLD COLOR PRES WCPSF US 2,641.5 (1,735.9) 479.2 WORLD COLOR PRES WC/U CN 2,641.5 (1,735.9) 479.2 ********* 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, 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 ***