TCR_Public/110810.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

            Wednesday, August 10, 2011, Vol. 15, No. 220

                            Headlines

12 BYFIELD: Taps Foley & Lardner as General Bankruptcy Counsel
ADD TRADING: Case Summary & 20 Largest Unsecured Creditors
AES EASTERN: S&P Lowers Ratings on $550-Mil. Certs. to 'CC'
ALLIED IRISH: Intends to Delist ADSs from NYSE
ALROSE KING: Sec. 341(a) Creditors' Meeting Set for Aug. 26

ALROSE KING: Status Conference Set for Sept. 1
ALROSE KING: Elevator Contractor Wants to Pursue State Court Suit
ALTAIR NANOTECHNOLOGIES: Posts $3-Mil. Net Loss in 2nd Quarter
ARLINGTON HOSPITALITY: Still in Fight With Lender, Seeks Dismissal
ART COLLECTION: Judge Gargotta Dismisses Case of "Pawn Debtor"

ASBURY AUTOMOTIVE: S&P Affirms Corporate Credit Rating at 'B+'
AVION POINT: Files Schedules of Assets and Liabilities
BABY TREND: Federal Circuit Rules on Patent Infringement Suit
BARNES BAY: U.S. Trustee Appoints 4-Member Creditor's Panel
BENEDETTO LLC: Case Summary & 5 Largest Unsecured Creditors

BERNARD L MADOFF: Trustee Has Solution for Discovery Nightmare
BILL JOHNSON'S: Case Summary & 20 Largest Unsecured Creditors
BLOCKBUSTER INC: NCR Claims Legal Right to Internet Domain
BLUEKNIGHT ENERGY: Reports $5.3 Million Net Loss in 2nd Quarter
BOCA BRIDGE: Hires Gonano & Harrell as Special Counsel

BOCA BRIDGE: Court Approves Lundy & Shacter as Accountant
BRAND MANAGEMENT: Asks Court to Approve Avrom Vann Hiring
BRAND MANAGEMENT: Status Conference Set for Aug. 15
BRAND MANAGEMENT: Sec. 341 Creditors' Meeting Set for Aug. 29
CAMP COOLEY: Taps Hall and Hall to Conduct Live Auction

CARGO TRANSPORTATION: Court OKs DLA Piper as Committee Counsel
CASCADIA PARTNERS: Could Not Develop Plan, Seeks Dismissal
CATALYST PAPER: S&P Lowers Corporate to 'CCC' on Weak 2nd Qtr.
CATHOLIC CHURCH: Milw. Clergy Opposes Proposed Investigation
CENTRAL FALLS: S&P Affirms SPUR at 'C' After Bankruptcy Filing

CHELLE CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
CHESTER HOLDINGS: S&P Assigns 'BB-' Corporate Credit Rating
CHURCH OF THE FIRST: Case Summary & 17 Largest Unsecured Creditors
CIRCLE ENTERTAINMENT: Incurs $1 Million Net Loss in June 30 Qtr.
CITIZENS BANCORP: Reports $24.2-Mil. Net Income in 2nd Quarter

CITY NATIONAL BANCSHARES: Incurs $1.5MM Net Loss in 1st Quarter
CONGRESS SAND: Presidential Financial Hikes DIP Loan to $1.9-Mil.
CONOLOG CORP: Issues $256,350 Promissory Note to Robert Benou
CONTINENTAL COMMON: Has Until Aug. 31 to Use PNC Cash Collateral
CORDIA COMMUNICATIONS: Adequate Assurance of Payment Deal OK'd

CORELOGIC INC: Moody's Affirms Ba2 Corporate; Outlook Negative
COVENANT INVESTMENTS: Participating Lender's Bid for Fees Denied
CROWN MEDIA: Reports $21.7 Million Net Income in June Quarter
DEB SHOPS: Aims to Secure $30-Mil. Loan for Post-Sale Operations
DEB SHOPS: Committee Proposes Otterbourg as Lead Counsel

DELPHI CORP: Court Finds No Loopholes in Assignment of Claim
DELTA AIR: Posts $366 Mil. Net Income in Second Quarter
DELTA AIR: Reports July 2011 Traffic Results
DELTA AIR: Starts Codeshare Flights With Aerolineas
DELTA PETROLEUM: Reports $534,000 Net Income in June 30 Quarter

DELTATHREE INC: Incurs $1.6 Million Net Loss in Second Quarter
DONALD HARTMANN: Victim's Amended Suit Survives Motion to Dismiss
DSI HOLDINGS: Has Final OK to Borrow up to $21.7MM from Ableco
DSI HOLDINGS: Can Employ Weil Gotshal as Counsel
DYNAVAX TECHNOLOGIES: Posts $10.6-Mil. Net Loss in 2nd Quarter

DYNEGY HOLDINGS: Delaware Supreme Court Rejects PSEG Appeal
DYNEGY POWER: Moody's Assigns B2 Rating to $1.1-Mil. Term Loan
DYNEGY INC: Incurs $116 Million Net Loss in Second Quarter
EAST COAST: Case Summary & 20 Largest Unsecured Creditors
ELEPHANT & CASTLE: Committee Taps FTI Consulting as Fin'l Advisor

ELEPHANT & CASTLE: Committee Taps Goulston & Storrs as Counsel
EMDEON BUSINESS: S&P Lowers Corporate Credit Rating to 'B+'
EMS ENGINEERED: Files for Chapter 7 Bankruptcy
ENERJEX RESOURCES: James Loeffelbein Holds 7.11% Equity Stake
FAIRFAX CROSSING: Wins Confirmation of Reorganization Plan

FHG DEVELOPMENT: Files for Chapter 11 Bankruptcy Protection
FRIEDMAN'S INC: Suit to Convert Debt to Equity Can Move Forward
GALLOP ENTERPRISES: Ala. High Ct. Withdraws Opinion in 2 Appeals
GARLOCK SEALING: Dismissal of 2 Asbestos Cases Reversed
GB HERNDON: Court Has Authority Over Counterclaims Amid Stern

GENEVA MULTI-FAMILY: Court to Hear Lender's Dismissal Plea Aug. 17
GMX RESOURCES: Incurs $11.8 Million Net Loss in Second Quarter
GREENMAN TECHNOLOGIES: Completes Sale of Unit to Irish Knight
GREENWICH SENTRY: Plan Outline Centers on BLMIS Trustee Deals
H&S JOURNAL: Has Deal With CA on Use of Cash Collateral

HARRY & DAVID: Wins Court OK to Terminate 2,700 Pensions
HAWAIIAN TELCOM: S&P Withdraws 'B-' Corporate Credit Rating
HILTON NGUYEN: Case Summary & 20 Largest Unsecured Creditors
HOMELAND SECURITY: Inks Forbearance Pact with YA Global
HUDSON HEALTHCARE: To Get $11-Mil. from State to Pay Creditors

INDYMAC BANCORP: Criminal Probes Said to Have Stalled
INDUSTRIAL SUPPLIES: Files for Chapter 7 Bankruptcy
JACKSON HEWITT: Court Confirms Plan Reorganization
JEFFERSON, AL: Submits Counteroffer to Bondholders
JIN SUK KIM TRUST: Court Rejects Bid to Dismiss Case

LAFARGE NORTH AMERICA: Demoted to Top Junk by Moody's
LAX ROYAL: MSCI Granted Relief From Stay as to L.A. Property
LESLIE CONTROLS: Dismissal of 2 Asbestos Cases Reversed
LENNY DYKSTRA: September Hearing On Grand Theft Auto Charges
LEVEL 3: To Hold Advisory Vote on Exec. Compensation Every Year

LITTLETON APARTMENTS: Taps Neligan Foley as Bankruptcy Counsel
LOS ANGELES DODGERS: Judge OKs $150 Million DIP Loan from MLB
LOS ANGELES DODGERS: Can Pay Up to $1.1-Mil Critical Vendor Claims
MACCO PROPERTIES: Trustee Wants Redmond & Nazar for Parkwood Suit
MACCO PROPERTIES: Bellingham & Loyd Okayed to Represent Trustee

MACCO PROPERTIES: Christopher Stein OK'd as Trustee's Counsel
MAUI LAND: Incurs $2.4 Million Net Loss in June 30 Quarter
METROPARK USA: Can Use Prepetition Lenders Cash Until Aug. 31
MT. VERNON PROPERTIES: Wants to Use Rents from Properties
NAPA HOME: Teters Floral Acquires Core Assets

NAVISTAR INTERNATIONAL: To Close Manufacturing Plant in Ontario
NEBRASKA BOOK: Three Members Resign from Creditors Committee
NETWORK SOLUTIONS: S&P Puts 'B' Corporate Rating on Watch Neg.
NEUROLOGIX INC: Amends Sublicense Agreement with Diamyd
NEW CENTURY FINANCIAL: Criminal Probes Said to Have Stalled

NEW ENTERPRISE: Moody's Downgrades CFR to B3; Outlook Negative
NEW YORK STATE: S&P Cuts Rating on $16-Mil. Revenue Bonds to 'B'
NEXSTAR BROADCASTING: Amends Senior Secured Credit Facility
NON-INVASIVE MONITORING: Extends Hsu Gamma Credit Pact to 2012
NORTHCORE TECHNOLOGIES: To Release 2nd Quarter Results Friday

NORTHEAST INDUSTRIES: Owner Hit With $250T Judgment in Suit
O&G LEASING: Bank Seeks to Prohibit Use of Cash Collateral
OLDE PRAIRIE: Daley and George OK'd for Tax Increment Financing
OMAS INVESTMENT: Case Summary & 17 Largest Unsecured Creditors
OVERLAND STORAGE: Amends Employment Pacts with Executive Officers

PACIFICUS REAL: Taps Solomon Ross to Prepare 2010 Tax Returns
PALM HARBOR: Files Chapter 11 Plan of Liquidation
PARAMOUNT LIMITED: Receiver Says Bankruptcy Filed in Bad Faith
PARAMOUNT LIMITED: Court Wants Combined Plan & Outline by Nov. 18
PENSON WORLDWIDE: Cut by Moody's to 'B2' on Continued Losses

PENSON WORLDWIDE: S&P Affirms 'BB-' Counterparty Credit Rating
PIERCE COMMERCIAL: 4 Former Employees Indicted for Conspiracy
POST STREET: Stutman Treister Approved as Reorganization Counsel
POST STREET: LZSH OK'd to Handle Disputes with PIL/Eurohypo
POST STREET: Nossaman LLP Approved as Special Litigation Counsel

PRECISION PARTS: Sets Oct. 28 Plan Confirmation Hearing
PURSELL HOLDINGS: Has Until Sept. 6 to File Chapter 11 Plan
PURSELL HOLDINGS: Wants to Use Morris & Janes Cash Collateral
QUINCY MEDICAL: Creditors Committee Taps Duane Morris as Counsel
QUINCY MEDICAL: Committee Taps Deloitte FAS as Financial Advisor

REAL MEX: S&P Raises Corporate to 'CC' on Interest Payment
RED DOOR: Voluntary Chapter 11 Case Summary
REGIONS FIN'L: S&P Affirms 'BB+/B' Counterparty Credit Rating
SALLY HOLDINGS: Reports $70.2 Million Net Earnings in Q3
SANMINA-SCI's: Fitch Affirms 'B+' Issuer Default Rating

SEQUENOM INC: Incurs $20.9 Million Net Loss in Second Quarter
SILVERSUN TECHNOLOGIES: Reports $2.7-Mil. Net Income in 2nd Qtr.
SOUTH POINTE: Case Summary & 11 Largest Unsecured Creditors
SITEBRAND INC: Obtains Revocation of Cease Trade Orders
STATION CASINOS: S&P Assigns 'B' Corporate Credit Rating

STORAGE CENTER: Case Summary & 4 Largest Unsecured Creditors
STORY BUILDING: Disclosure Statement Hearing Continued to Oct. 20
TALON INTERNATIONAL: To Allow Issuance of Uncertificated Shares
TAYLOR BEAN: FDIC Seeks Dismissal of $1.75BB BofA Lawsuit
TEN X: Foster and Smith Approved to Handle Reorganization Case

TERRESTAR CORP: DIP Loan Maturity Now Extended Until Sept. 30
TERRESTAR CORP: Committee Wants $5 Million Loan Tagged as Equity
THERMOPYLAE LLC: Court Rules on Dispute With Landlord
THORNBURG MORTGAGE: Litigation v. Luxury Mortgage Stayed
TREY RESOURCES: Reports $2.3 Million Net Income in June 30 Qtr.

USEC INC: Files Form 10-Q; Incurs $21.2-Mil. Q2 Net Loss
UTE MESA: Taps Podoll & Podoll as Special Litigation Counsel
VALLEJO, CA: Has Formal Plan Confirmation Order
VIKING SYSTEMS: Incurs $860,100 Net Loss in Second Quarter
VINEYARD AT SERRA: Taps Keller Williams/West as Property Broker

VONAGE HOLDINGS: Moody's Withdraws 'B2' Corporate Family Rating
WARNER MUSIC: Incurs $46 Million Net Loss in Fiscal 3rd Quarter
WARNER MUSIC: Guarantees Payments of $150-Mil. Holdings Notes
WASHINGTON MUTUAL: DOJ Closes Probe With No Criminal Charges
WESTLAKE CHEMICAL: Moody's Reviews Low-B Ratings for Upgrade

WILLIAM LINDSEY: Plan Violates Absolute Priority Rule
WINDSOR PETROLEUM: Moody's Downgrades Debt Rating to 'Caa1'
WS MINERAL: Files Schedules of Assets and Liabilities
YRC WORLDWIDE: Michael Smid Retires as President and COO

* Commercial and Individual Bankruptcies Down in July

* Two Bank Failures Bring Year's Total to 63

* Mercer Island Man Pleads Guilty in Connection With Ponzi Scheme
* SEC Scores Injunction Against Ex Birmingham, Ala. Mayor

* Cadwalader Adds Leading Structured Finance Lawyer to Hong Kong
* Hal Hirsch Joins Alvarez & Marsal to Head Risk Services Group
* Kirkland Energy Transaction Pro Joins McDermott Will

* Upcoming Meetings, Conferences and Seminars


                            *********


12 BYFIELD: Taps Foley & Lardner as General Bankruptcy Counsel
--------------------------------------------------------------
12 Byfield, LLC, asks the U.S. Bankruptcy Court for the Southern
District of New York for permission to employ Foley & Lardner LLP
as general bankruptcy counsel.

Foley & Lardner's retainer of $20,000 will be paid by the Debtor's
principal and will be applied to its postpetition fees and
expenses, after the postpetition fees and expenses are approved.

To the best of the Debtor's knowledge, Foley & Lardner LLP is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                       About 12 Byfield, LLC

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.


ADD TRADING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: ADD Trading Inc.
        aka ADD Studio Inc.
        70-30 80th Street, Building 36
        Glendale, NY 11385

Bankruptcy Case No.: 11-46776

Chapter 11 Petition Date: August 5, 2011

Court: United States Bankruptcy Court
       Eastern District of New York (Brooklyn)

Judge: Joel B. Rosenthal

Debtor's Counsel: Victor Tsai, Esq.
                  LAW OFFICE OF VICTOR TSAI
                  254 Canal Street, Suite 4018
                  New York, NY 10013
                  Tel: (212) 625-9028
                  Fax: (212) 697-7777
                  E-mail: ourlawyers@aol.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nyeb11-46776.pdf

The petition was signed by Wenge He, president.


AES EASTERN: S&P Lowers Ratings on $550-Mil. Certs. to 'CC'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on U.S.
electricity generator AES Eastern Energy L.P.'s (AEE) $550 million
pass-through certificates ($449 million outstanding) due 2029 to
'CC' from 'CCC'. The outlook remains negative. "We have also
revised the recovery rating to '3' from '2', indicating average
(50% to 70%) recovery of principal if a payment default occurs,"
S&P stated.

Due to the high price of coal relative to electricity prices, AEE
continues to see compression of dark spread margins (the spread
between the cost of coal to generate a megawatt of electricity and
the price at which it can be sold).

"We estimate dark spreads for the balance of 2011 in the range of
$6.5 per Megawatt-hour (MWh), which are not adequate to meet all
fixed obligations," said Standard & Poor's credit analyst Aneesh
Prabhu. "With forecasted energy prices still low, a hedge strategy
continues to be uneconomical. In July 2011, the project drew on
its rent service payment account and also drew on AES NY Surety's
$30 million letter of credit (LOC) to fund operations. This LOC is
due in October 2011. We have lowered the ratings to 'CC' from
'CCC' because we expect a restructuring in the near term."

Toward the end of 2009, Eastern departed from its financial
strategy of hedging a significant portion of its capacity and
energy on a rolling three-year basis. Eastern did so because of
uncertainty about the nature of carbon markets, and reduced
liquidity in the power markets due to fewer participants. In the
past, the strategy muted the potential volatility in commodity
prices. AEE started 2010 with low hedged levels but sold gas
forward to hedge some of its 2010 production. However, as power
prices have continued their decline, AEE's debt service coverage
ratios (DSCRs) have fallen commensurately.


ALLIED IRISH: Intends to Delist ADSs from NYSE
----------------------------------------------
Allied Irish Banks, p.l.c., announced that its Board of Directors
has resolved to delist its American Depositary Shares (ADSs), each
representing ten ordinary shares, par value EUR0.01 per share,
from the New York Stock Exchange, terminate the deposit agreement
with The Bank of New York Mellon as depositary governing the ADSs
and, in due course, terminate the registration of AIB's securities
with the US Securities and Exchange Commission under the US
Securities Exchange Act of 1934, in each case after the completion
of the required legal steps.

The Board of Directors made the decision in light of the increase
in the Irish Government's shareholding to 99.8% on July 27, 2011,
and the savings in costs and administrative efforts that would
result from the delisting and any subsequent deregistration under
the Exchange Act.

AIB plans to file the related Form 25 with the SEC on or about
Aug. 15, 2011.  AIB expects the delisting to become effective at
the close of business on or about Aug. 25, 2011, from which time
AIB's ADSs will no longer be traded on the NYSE.  Concurrently
with or following delisting, AIB intends to terminate the ADS
facility by terminating the ADS deposit agreement between AIB and
the Depositary.  The Depositary will contact ADS holders in due
course with further information, including with regard to any
further action to be taken.

In due course, AIB also intends to deregister its securities and
terminate its obligations under the Exchange Act by filing a Form
15F.  AIB's aim is to meet the applicable criteria for
deregistration of its securities.

AIB reserves the right, for any reason, to delay these filings or
to withdraw them prior to their effectiveness.

AIB has not arranged for listing or registration on another US
national securities exchange or for quotation of its securities in
a US quotation medium, but expects that, after delisting the ADSs,
its ordinary shares will continue to trade on the Enterprise
Securities Market of the Irish Stock Exchange.  Information
required to be made available pursuant to Rule 12g3-2(b) under the
Exchange Act will be made available on AIB's Web site at
www.aibgroup.com.

                  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.


ALROSE KING: Sec. 341(a) Creditors' Meeting Set for Aug. 26
-----------------------------------------------------------
The U.S. Trustee for Region 2 will convene a Meeting of Creditors
pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of Alrose
King David LLC on Aug. 26, 2011, at 9:00 a.m. at Room 563, 560
Federal Plaza, in Central Islip, New York.

Alrose King David LLC is a special entity established by the
Alrose Group to own the 143-room, beachfront hotel property called
the Allegria Hotel & Spa in Long Beach, Long Island.  Alrose King
David filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y.
Case No. 11-75361) in Brooklyn on July 28, 2011, estimating
between $10 million and $50 million in both debts and assets.
Judge Dorothy Eisenberg presides over the case.  Patrick T.
Collins, Esq., at Farrell Fritz, P.C., serves as bankruptcy
counsel.  The petition was signed by Allen Rosenberg, managing
member.


ALROSE KING: Status Conference Set for Sept. 1
----------------------------------------------
The Bankruptcy Court will hold a Status Conference in the
bankruptcy case of Alrose King David LLC on Sept. 1, 2011, at
10:00 a.m. at Courtroom 760, in Central Islip, New York.

Alrose King David LLC is a special entity established by the
Alrose Group to own the 143-room, beachfront hotel property called
the Allegria Hotel & Spa in Long Beach, Long Island.  Alrose King
David filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y.
Case No. 11-75361) in Brooklyn on July 28, 2011, estimating
between $10 million and $50 million in both debts and assets.
Judge Dorothy Eisenberg presides over the case.  Patrick T.
Collins, Esq., at Farrell Fritz, P.C., serves as bankruptcy
counsel.  The petition was signed by Allen Rosenberg, managing
member.


ALROSE KING: Elevator Contractor Wants to Pursue State Court Suit
-----------------------------------------------------------------
ThyssenKrupp Elevator Corp. asks the Bankruptcy Court to lift the
automatic stay in the bankruptcy case of Alrose King David, LLC,
so it may continue a state court breach of contract action pending
in the Supreme Court of the State of New York, Nassau County,
against the non-debtor defendants.  The lawsuit involves an
elevator installation contract and names the Debtor, Alrose
Allegria, LLC, The Alrose Group, and East End Builders Group,
Inc., as defendants.  TKE said it received partial payment for its
work but its final invoices totaling $227,931 were never paid,
despite due demand.

TKE also said it has already obtained judgment against the Debtor
in a mechanic's lien foreclosure case in Nassau County, in an
action entitled DCI Design Communications Inc. v. Alrose King
David, LLC, Nassau County Index Number 24080/2009.  That Judgment,
entered on July 27, 2011, provides TKE with a money judgment of
$314,257.52 and orders that Alrose's real property be sold to
satisfy the Judgment.  TKE has filed a proof of claim for that
amount in the Debtor's bankruptcy case.

TKE said it intends to dismiss the Debtor from the breach of
contract action and proceed against the other parties.

Attorney for ThyssenKrupp Elevator Corp. is:

          Arthur Russell, Esq.
          14 Wall Street, 22nd floor
          New York, NY 10005-2101

               - and -

          661 Franklin Avenue
          Nutley, NJ 07110
          Tel: (973) 661-4545
          Fax: (973)661-4646
          E-mail: arthur@attorneyrussell.com

Alrose King David LLC is a special entity established by the
Alrose Group to own the 143-room, beachfront hotel property called
the Allegria Hotel & Spa in Long Beach, Long Island.  Alrose King
David filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y.
Case No. 11-75361) in Brooklyn on July 28, 2011, estimating
between $10 million and $50 million in both debts and assets.
Judge Dorothy Eisenberg presides over the case.  Patrick T.
Collins, Esq., at Farrell Fritz, P.C., serves as bankruptcy
counsel.  The petition was signed by Allen Rosenberg, managing
member.


ALTAIR NANOTECHNOLOGIES: Posts $3-Mil. Net Loss in 2nd Quarter
--------------------------------------------------------------
Altair Nanotechnologies Inc. filed its quarterly report on Form
10-Q, reporting a net loss of $3.0 million on $476,000 of revenues
for the three months ended June 30, 2011, compared with a net loss
of $4.9 million on $1.5 million of revenues for the same period
last year.

For the six months ended June 30, 2011, the Company recorded a net
loss of $8.9 million on $3.0 million of revenues, compared with a
net loss of $11.0 million on $2.7 million of revenues for the
first six months of 2010.

The Company's balance sheet at June 30, 2011, showed $20.5 million
in total assets, $8.0 million in total liabilities, and
stockholders' equity of $12.5 million.

Perry-Smith LLP, in Sacramento, California, expressed substantial
doubt about Altair Nanotechnologies' ability to continue as a
going concern, following the Company's 2010 results.  The
independent auditors noted that the Company has incurred recurring
losses from operations resulting in an accumulated deficit of
$184,490,000 at Dec. 31, 2010.  "Additionally, the Company
experienced $15,172,000 in negative cash flows from operations
during the year ended Dec. 31, 2010, resulting in a cash balance
of $4,695,000 at Dec. 31, 2010."

A complete text of the Form 10-Q is available for free at:

                       http://is.gd/IXlMqH

Reno, Nev.-based Nano Technologies Inc. (Nasdaq: ALTI)
-- http://www.altairnano.com/-- a Canadian corporation, with
principal assets and operations in the United States, whose
primary business is developing, manufacturing and selling its
nano-lithium titanate battery cells, batteries, battery packs,
battery systems, and providing related design, installation and
test services.  Its primary focus is marketing its large-scale
energy storage solutions to power companies and electric grid
operators throughout the world.  In addition, it markets its
batteries to commercial vehicle manufacturers, which includes
electric and hybrid-electric buses, and began expanding in 2010
into new industrial OEM markets.


ARLINGTON HOSPITALITY: Still in Fight With Lender, Seeks Dismissal
------------------------------------------------------------------
BankruptcyData.com reports that Arlington Hospitality filed with
the U.S. Bankruptcy Court a motion to dismiss its Chapter 11
bankruptcy cases.

BData relates that the motion explains, "The Debtors filed their
bankruptcy cases with the intent of conducting a going concern
sale of their business pursuant to 11 U.S.C. Sec. 363(f) to
maximize value for their stakeholders.  They sought debtor-in-
possession financing, found a buyer and had a sale approved and
closed by January 2006 . . . As consideration for its assets, the
Debtor received approximately $8 million in cash (including a
settlement payment made by Cendant Corporation as part of the
sale) and the assumption of the Debtors' mortgage liabilities
totaling approximately $36 million."

The motion continues, "During the sale process, the Debtors post-
petition lender, Arlington L.F, LLC refused to fund its
obligations under its loan agreement.  Although the Debtor repaid
the principal balance of the loan with interest upon the closing
of the Section 363 sale, Arlington L.F., LLC demanded additional
fees and expenses.  This dispute resulted in two appeals to the
District Court and an appeal to the Seventh Circuit, preventing
the closing of this case.  On March 3, 2011, the United States
Court of Appeals for the Seventh Circuit entered a final judgment
in favor of the Debtors and ruling that Arlington L.F., LLC had no
right to recovery from the bankruptcy estate.  Throughout this
dispute, the Debtors and the Committee attempted on multiple
occasions to reach a settlement with Arlington L.F., LLC to put an
end to the dispute but to no avail."

The Company concludes, "Dismissal of the case as opposed to
conversion is in the best interests of the estate and its
creditors as there is nothing left for a chapter 7 trustee do.
The Committee supports conversion of the case."

According to BData, the Company also filed a separate motion to
abandon and destroy records.  The Court scheduled an Aug. 29, 2011
hearing to consider the motions.

                   About Arlington Hospitality

Based in Arlington Heights, Illinois, Arlington Hospitality, Inc.,
dba Amerihost Properties, Inc., and its affiliates developed and
constructed limited service hotels and owned, operated, managed
and sold those hotels.  The Company operated 15 AmeriHost Inn
Hotels under leases from PMC Commercial Trust.  Arlington
Hospitality, Inc., serves as a guarantor under these leases.

Arlington Inns Inc., an affiliate, filed for bankruptcy protection
(Bankr. N.D. Ill. Case No. 05-24749) on June 22, 2005, the
Honorable A. Benjamin Goldgar presiding.  Arlington Hospitality
and additional debtor-affiliates filed for chapter 11 protection
on Aug. 31, 2005 (Bankr. N.D. Ill. Lead Case No. 05-34885),
represented by Catherine L. Steege, Esq., at Jenner & Block LLP.
Chanin Capital LLC served as the company's investment banker.
David W. Wirt, Esq., at Winston & Strawn, represented the Official
Committee of Unsecured Creditors.  As of March 31, 2005, Arlington
Hospitality reported $99 million in total assets and $94 million
in total debts.  The Debtors proposed a Joint Plan of Orderly
Liquidation in August 2007.


ART COLLECTION: Judge Gargotta Dismisses Case of "Pawn Debtor"
--------------------------------------------------------------
The Hon. Craig A. Gargotta of the U.S. Bankruptcy Court for the
Western District of Texas dismissed the Chapter 11 case of Art
Collection, Inc., with prejudice to the right to re-file for one
year, at the behest of Judy A. Robbins, the U.S. Trustee for
Region 7.

As reported in the June 28, 2011 edition of the Troubled Company
Reporter, the U.S. Trustee sought the dismissal, contending that
the Debtor was used as a pawn by its co-debtors and does not need
reorganizing.  She further contends that the Debtor's Chapter 11
case was filed solely to delay a lawsuit against the Debtor's co-
debtors.

The Debtor had no income in the past two years, and relied on its
parent to pay its expenses, the U.S. Trustee pointed out.  She
noted that despite not having made a payment to its lienholder in
over two years, the lienholder was not threatening the Debtor or
its assets.  In addition, the Debtor's property was not posted for
foreclosure and the lienholder had not sued the Debtor for the
collection of amounts owed.

The co-debtors were 19 days away from a summary judgment hearing
in a lawsuit which had been pending for almost eight months and if
they prevailed at the summary judgment hearing, they were still
set for trial approximately six weeks later, the U.S. Trustee
relates.  She contends that the co-Debtors were facing financial
difficulties, yet they put the Debtor in bankruptcy to protect
themselves by further delaying a nearly 18-month old lawsuit.

The co-debtors seek to transfer the lawsuit to the Court, which
would result in the Court deciding a lawsuit involving two non-
debtor plaintiffs and 22 non-debtor defendants.

The Debtor's sole shareholder is One Realco Corporation, which
purchased 100% of the Debtor in December 2010 from American Realty
Investors, Inc., a New York Stock Exchange traded company.

Since 1998 the Debtor has owned a tract of real property situated
in Travis County, Texas; the tract is approximately 257 acres.
The property is undeveloped, but has water, waste water, and
electricity connections.  The Debtor values the property at $17
million, and the property secures debt of over $15 million owed to
Dynamic Finance Corporation and approximately $165,000.00 owed to
Propel Financial Services.

American Realty and Prime Income Asset Management are listed on
the Debtor's schedules as a co-Debtor on the debt owed to Dynamic
Finance.

Prime Income Asset Management paid the retainer to the Debtor's
counsel.

Creditors Dynamic Finance Corporation and Upper Wise Management
Limited join in the U.S. Trustee's request to dismiss the Chapter
11 case.

                     About Art Collection, Inc.

Dallas, Texas-based Art Collection, Inc., filed for Chapter 11
bankruptcy protection (Bankr. W.D. Tex. Case No. 11-10874) on
April 7, 2011.  Eric A. Liepins, Esq., at Eric A. Liepins P.C.,
serves as the Debtor's bankruptcy counsel.

In its schedules, the Company disclosed that it owns 258 acres in
Travis County, Texas, worth $17 million.  The Debtor said that
California-based Dynamic Finance Corp. holds a secured claim
on the land for $15.3 million.  Total debt is $15.77 million.


ASBURY AUTOMOTIVE: S&P Affirms Corporate Credit Rating at 'B+'
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Duluth,
Ga.-based Asbury Automotive Group Inc. to positive from stable and
affirmed the ratings, including the 'B+' corporate credit rating.

"We believe Asbury's demonstrated ability to expand earnings and
lower leverage while it builds out infrastructure to gain scale
benefits in its core light vehicle retail business, and signs of
stabilizing new-vehicle demand, could help Asbury bring its key
credit measures in line with our assumptions for a higher rating
during the next year," said Standard & Poor's credit analyst Nancy
Messer. "For an upgrade, we need to have higher confidence that
Asbury will not engage in material debt-financed acquisitions or
share repurchases that could erode credit measures."

"We believe Asbury can control costs; it typically generates free
cash flow after capital spending. In the next two years, we assume
the company will reduce leverage as demand recovers, EBITDA
improves, and cash becomes available for permanent debt reduction
and lease buyouts. However, we recognize that Asbury will use cash
to repurchase shares on an opportunistic basis," S&P related.

Asbury's financial and credit measures have improved in the past
year. The EBITDA margin rose to 4.5% for the 12 months ended June
30, 2011, compared with 3.7% for the prior 12 months. Lease-
adjusted debt (excluding floorplan liabilities) to EBITDA has
improved to 4.5% for the 12 months ended June 30, 2011, compared
with 5.6x for the prior 12 months. "Reported EBITDA for the past
12 months, by our calculation, rose by about 26% period over
period to $180.4 million, although adjusted balance-sheet debt
rose 1% to $806 million. Still, adjusted debt to total capital
fell to 72.2% as of June 30, 2011, down from 75.2% as of June 30,
2010. We expect the auto retailers, in general, to report positive
free cash flow after capital spending. However, Asbury reported
negative $35 million of free cash flow for the 12 months ended
June 30, 2011 and negative $23 million for 2010. We recognize that
Asbury's discretionary use of cash to pay down floorplan
borrowings is resulting in negative cash flow and expect, for an
upgrade, that cash flow excluding these discretionary payments
would be positive for most 12-month periods," S&P stated.


AVION POINT: Files Schedules of Assets and Liabilities
------------------------------------------------------
Avion Point West LLC filed with the U.S. Bankruptcy Court for the
Middle District of Florida its schedules of assets and
liabilities, disclosing:

     Name of Schedule              Assets         Liabilities
     ----------------            -----------      -----------
  A. Real Property               $18,000,000
  B. Personal Property                    $0
  C. Property Claimed as
     Exempt
  D. Creditors Holding
     Secured Claims                                $8,254,057
  E. Creditors Holding
     Unsecured Priority
     Claims                                                $0
  F. Creditors Holding
     Unsecured Non-priority
     Claims                                                $0
                                 -----------      -----------
        TOTAL                    $18,000,000       $8,254,057

                      About Avion Point West

Based in Longwood, Florida, Avion Point West LLC and its
affiliate, Orlando Country Aviation Services Inc., filed for
Chapter 11 bankruptcy protection (Bank. M.D. Fla. Case Nos.
11-10364 and 11-10365) on July 8, 2011.  Judge Karen S. Jennemann
presides over the Debtors' cases.  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.

The petitions were signed by James PA Thompson, the managing
member.  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.


BABY TREND: Federal Circuit Rules on Patent Infringement Suit
-------------------------------------------------------------
The U.S. Court of Appeals for the Federal Circuit reversed rulings
by the District Court in a patent infringement suit commenced by
Joovy LLC against Target Corporation.  On April 6, 2006, Joovy
sued both Baby Trend Inc. and Target in the U.S. District Court
for the Northern District of Texas, alleging that Baby Trend
infringed U.S. Patent No. 5,622,375 by selling Sit-N-Stand(R)
strollers to Target -- which in turn sold them to customers --
after inventor Albert Fairclough discontinued Baby Trend's license
in August 2004.  After Baby Trend's bankruptcy filing, the
District Court on Nov. 17, 2009, severed Baby Trend from the
action into a separate action, Joovy LLC v. Baby Trend Inc., No.
09-2012-F (N.D. Tex. filed Oct. 22, 2009), which is stayed pending
the resolution of the bankruptcy proceedings.

In the suit against Target, the retailer moved for judgment as a
matter of law -- JMOL -- that claim 1 of the '375 Patent is
invalid and that the '375 Patent is unenforceable due to
inequitable conduct.  The District court denied JMOL of invalidity
but granted JMOL of unenforceability due to inequitable conduct.
Joovy appeals and Target cross-appeals.

In an Aug. 5, 2011 decision, the Federal Circuit reversed the
District Court's denial of Target's motion for JMOL on the issue
of anticipation of claim 1 of the '375 Patent and vacated the
District Court's JMOL that the '375 Patent is unenforceable due to
inequitable conduct.  A copy of the Federal Circuit's ruling is
available at http://is.gd/OQbzHsfrom Leagle.com.

                         About Baby Trend

Based in Ontario, California, Baby Trend Inc. filed for Chapter 11
bankruptcy protection  (Bankr. C.D. Calif. Case No. 09-34090) on
Oct. 9, 2009.  Judge Sheri Bluebond presides over the case.
Michael B. Reynolds, Esq., at Snell & Wilmer LLP, represents the
Debtor.  In its petition, the Debtor estimated assets and debts of
$10 million to $50 million.


BARNES BAY: U.S. Trustee Appoints 4-Member Creditor's Panel
-----------------------------------------------------------
Roberta A. Deangelis, United States Trustee for Region 3, under 11
U.S.C. Sec. 1102(a) and (b), appointed four unsecured creditors to
serve on the Official Committee of Unsecured Creditors of Barnes
Bay Development Ltd.

The Creditors Committee members are:

      1. Exclusive Resorts Real Estate Holding II, LLC,
         ATTN: General Counsel,
         1515 Arapahoe Street,
         Tower, 3, Suite 300,
         Denver CO 80202,
         Tel: (202) 776-1403,
         Fax: 202-776-1494

      2. Joel Greenburg and Mary Gringlas,
         727 Merion Square Road,
         Gladwyne PA 19035,
         Tel: (610) 617-2610,
         Fax: (610) 617-2905

      3. Carillion Construction (West Indies) Ltd.,
         ATTN: Christopher Buck, Esq.
         Brickfield Road, Carapachaima,
         Trinidad, West Indies,
         Tel: (905) 532-5377

      4. Jacob Stepan,
         40 Roc Etam Road,
         Randolph NJ 07869,
         Tel: (917) 361-2376,
         Fax: (973) 442-0558

                           About Barnes Bay

Beverly Hills, California-based Barnes Bay Development Ltd., owns
the Viceroy Anguilla Resort & Residences on the British West
Indies island of Anguilla.  Barnes Bay and two affiliates filed
for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No.
11-10792) on March 17, 2011, to facilitate the sale of the resort.
Barnes Bay disclosed $3,331,282 in assets and $481,840,435 in
liabilities as of the Chapter 11 filing.

Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy
counsel, and Keithley Lake & Associates is the Debtors' special
Anguillan counsel.  Kurtzman Carson Consultants LLC is the
Debtors' claims, noticing, solicitation and balloting agent.

The U.S. Trustee appointed five members to the official committee
of unsecured creditors in the Debtors' cases.  Brown Rudnick LLP
serves as the Committee's co-counsel, and Womble Carlyle Sandridge
& Rice, PLLC, as its Delaware co-counsel.  C.R. Hodge & Associates
is the Committee's foreign counsel.  FTI Consulting, Inc.,
serves as the Committee's financial advisors.


BENEDETTO LLC: Case Summary & 5 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Benedetto, LLC
        1303 S. Western Avenue
        Los Angeles, CA 90006

Bankruptcy Case No.: 11-43214

Chapter 11 Petition Date: August 4, 2011

Court: United States Bankruptcy Court
       Central District of California (Los Angeles)

Judge: Thomas B. Donovan

Debtor's Counsel: Dana M. Douglas, Esq.
                  11024 Balboa Blvd #431
                  Granada Hills, CA 91344
                  Tel: (818) 360-8295
                  Fax: (818) 360-9852
                  E-mail: dmddouglas@hotmail.com

Scheduled Assets: $2,400,000

Scheduled Debts: $4,738,430

A list of the Company's five largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb11-43214.pdf

The petition was signed by Atef "Mike" Abdou, managing/sole
member.


BERNARD L MADOFF: Trustee Has Solution for Discovery Nightmare
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the trustee liquidating Bernard L. Madoff Investment
Securities Inc. is proposing new procedures for dealing with the
document-production nightmare created by the 900 lawsuits he filed
against almost 5,000 defendants.

According to the report, before starting the lawsuits, the trustee
took 108 examinations of witnesses under oath and required
customers and those who dealt with Mr. Madoff to turn over more
than 5 million documents.  Most of the information he received is
covered by confidentiality agreements and can't be given to anyone
without permission from the person who gave the information to the
trustee in the first place.

The report relates that the trustee now is receiving the first
requests to turn over documents to those he sued.  Once all
defendants are demanding documents, the trustee anticipates he
would be saddled with "enormous costs and administrative burdens"
were he required to obtain permission for every document he needs
to turn over.

According to Mr. Rochelle, the trustee filed papers last week in
bankruptcy court setting up a hearing on Sept. 7 where he will ask
the judge to appoint two special masters to resolve disputes over
producing documents and contentions that some documents are secret
and shouldn't be shown to anyone.

In addition, the trustee, the Bloomberg report adds, wants to do
away with all existing confidentiality agreements.  In their
place, he would put all documents received from outsiders in a
separate electronic document production room, where access can
only be gained by signing a confidentiality agreement.

All information previously given to the trustee by third parties
could be examined by creditors in the document room, unless
there's a new objection filed by the party that originally
produced a document, according to the report.

                     About Bernard L. Madoff

Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping $50 billion.  On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970.  The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.).  Mr. Picard has retained AlixPartners LLP as claims
agent.

On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893).  The case is before Hon. Burton Lifland.  The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.

On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).

The Chapter 15 case was later transferred to Manhattan.  In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.

Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)

As of July 15, 2011, a total of $6.88 billion in claims by
investors has been allowed, with $794.9 million to be paid by the
Securities Investor Protection Corp.  Investors are expected to
receive additional distributions from money recovered by Mr.
Picard from lawsuits or settlements.


BILL JOHNSON'S: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Bill Johnson's Restaurants, Inc.
        dba Bill Johnson's Big Apple Restaurants
        2706 West Fairmont Avenue
        Phoenix, AZ 85017

Bankruptcy Case No.: 11-22441

Chapter 11 Petition Date: August 4, 2011

Court: United States Bankruptcy Court
       District of Arizona (Phoenix)

Judge: Sarah Sharer Curley

Debtor's Counsel: Shelton L. Freeman, Esq.
                  DECONCINI MCDONALD YETWIN & LACY PC
                  6909 East Main St.
                  Scottsdale, AZ 85251
                  Tel: (480) 398-3100
                  Fax: (480) 398-3101
                  E-mail: tfreeman@lawdmyl.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/azb11-22441.pdf

The petition was signed by Sherry Cameron, CEO.


BLOCKBUSTER INC: NCR Claims Legal Right to Internet Domain
----------------------------------------------------------
Erik Gruenwedel at Home Media Magazine reports that NCR Corp. has
filed a motion with the bankruptcy court overseeing the Chapter 11
dissolution of Blockbuster Inc., claiming it has a legal right to
Internet domain name www.blockbusterexpress.com, a right it said
should not be included in separate litigation regarding a license
with Blockbuster to operate 10,000 Blockbuster Express rental
kiosks.

According to the report, on March 2, 2009, NCR and Blockbuster
signed a license agreement regarding the domain right to the
Blockbuster name for a nascent kiosk business venture.  After Dish
acquired Blockbuster stores and related brand rights from bankrupt
Blockbuster Inc., it has sought to terminate the license agreement
with NCR Corp.

Home Media Magazine notes that in bankruptcy law an executory
contract is a contract in which continuing obligations exist on
both sides of the contract.  In this context a trustee may assume
or reject any executory contract or unexpired lease subject to
court approval, the report says.

"As of the petition date in these Chapter 11 cases, the domain
assignment was not an executory contract and, hence, cannot be
assumed or rejected under the bankruptcy code," NCR wrote in the
motion.

                      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.  Blockbuster began the attempted
Chapter 11 reorganization in September with 5,600 stores,
including 3,300 in the U.S.  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.


BLUEKNIGHT ENERGY: Reports $5.3 Million Net Loss in 2nd Quarter
---------------------------------------------------------------
Rod Walton at Tulsa World reports that Blueknight Energy Partners
LP fell back into the red in the second quarter with a $5.3
million net loss.

According to the report, the loss followed $2.6 million in
earnings during the first quarter, Blueknight's first profit since
former parent SemGroup LP went into Chapter 11 bankruptcy more
than three years ago.  Increased maintenance and legal expenses
contributed to the net loss, Chief Operating Officer and President
J. Michael Cockrell said in a statement.

Tulsa World says Blueknight also sustained operating margin
shortfalls in the crude-oil truck business.  Mr. Cockrell,
however, said he expected increased utilization of the company's
Oklahoma pipeline business by parent Vitol Inc.'s marketing
affiliate.

The reports says Blueknight's overall revenue totaled $84 million
for the first half of 2011, 12 percent higher than the $75.4
million for the first six months of 2010, according to the
earnings report.  Total expenses also jumped up $10 million over
the same period last year.

Blueknight Energy Partners is working with its general-partner
controlling interests, held by Vitol and Charlesbank Capital
Partners, on a refinancing deal.  The initial refinancing
agreement, however, was challenged by limited-partner investors
who accused Blueknight, Vitol and Charlesbank of trying to dilute
the limited-partner unitholders for their own interests.

The report notes the company is holding a special meeting Sept. 14
in Oklahoma City to announce a proxy vote on an amended
refinancing deal.

                      About Blueknight Energy

Blueknight Energy Partners, L.P. (Pink Sheets: BKEP)
-- http://www.bkep.com/-- provides integrated terminalling,
storage, processing, gathering and transportation services for
companies engaged in the production, distribution and marketing of
crude oil and asphalt product. It provides services for the
customers, and its only inventory consists of pipeline linefill
and tank bottoms necessary to operate the assets. It has three
operating segments: crude oil terminalling and storage services,
crude oil gathering and transportation services, and asphalt
services.

The Company reported a net loss of $23.79 million on
$152.62 million of total revenue for the year ended Dec. 31, 2010,
compared with a net loss of $16.50 million on $156.77 million of
total revenue during the prior year.

The Company's balance sheet at March 31, 2011, showed $323.49
million in total assets, $358.56 million in total liabilities and
a $35.06 million total partners' deficit.


BOCA BRIDGE: Hires Gonano & Harrell as Special Counsel
------------------------------------------------------
Boca Bridge LLC seeks permission from the U.S. Bankruptcy Court
for the Southern District of Florida to employ and retain Douglas
E. Gonano, Esq. and the firm Gonano & Harrell, Chartered as
special counsel for the Debtor.

The firm can be reached at:

     Douglas E. Gonano, Esq.
     GONANO & HARRELL, CHARTERED
     1600 S. Federal Highway, Suite 200
     Fort Pierce FL 34950

The Debtor said it is essential to employ special counsel to
assist in transaction matters in connection with or arising out
the of the proposed restructuring of the existing first mortgage
loan, including negotiating and drafting documents necessary or
desirable to reflect real estate loan terms applicable to the
restructuring and amended loan documents.

The firm's Douglas E. Gonano, Esq., will charge the Debtor $485
per hour.

                      About Boca Bridge LLC

In August 2010, ten creditors owed $69,400 filed an involuntary
Chapter 11 petition (Bankr. S.D. Fla. Case No. 10-34538) against
Boca Bridge LLC, the owner of the Boca Raton Bridge Hotel.  In
November, the bankruptcy judge entered ruling placing the Boca
Bridge LLC into Chapter 11.  The Debtor disclosed $10,286,336 in
assets and $11,850,060 in liabilities as of the Chapter 11 filing.


BOCA BRIDGE: Court Approves Lundy & Shacter as Accountant
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida
authorized Boca Bridge LLC to employ Lundy & Shacter P.A. as
accountant.  The firm will:

   a) review of the Debtor's books and records;

   b) prepare the Debtor's tax returns; and

   c) render such other assistance in the nature of accounting
      services, financial consulting, valuation issues or other
      financial matters as Debtor may deem necessary.

The hourly rates of the firm are:

   Senior partners                  $225-$290
   Other non-partner accountants    $150-$225
   Bookkeepers                       $70-$100

Richard Lundy, the primary partner that would provide services for
the Debtor, charges an hourly rate of $290.

The Debtor assured the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.

                      About Boca Bridge LLC

In August 2010, ten creditors owed $69,400 filed an involuntary
Chapter 11 petition (Bankr. S.D. Fla. Case No. 10-34538) against
Boca Bridge LLC, the owner of the Boca Raton Bridge Hotel.  In
November, the bankruptcy judge entered ruling placing the Boca
Bridge LLC into Chapter 11.  The Debtor disclosed $10,286,336 in
assets and $11,850,060 in liabilities as of the Chapter 11 filing.


BRAND MANAGEMENT: Asks Court to Approve Avrom Vann Hiring
---------------------------------------------------------
Brand Management Services Inc. seeks Court authority to employ
Avrom R. Vann, P.C., as it is general bankruptcy counsel.

The Debtor said its bankruptcy filing is necessitated by the
commencement and prosecution by Sentry Insurance Company of a
lawsuit against the Debtor seeking to recover judgment for
$9,000,000.  The Debtor's principal liabilities stem from accounts
and loans payable of which the most major obligation is to Sentry,
an insurance company for premiums on an insurance policy, the
amount of which is in dispute.  The lawsuit was commenced in the
United States District Court for the Eastern District of New York,
and trial was stayed upon the bankruptcy filing.

Prior to the bankruptcy filing, ARVPC rendered legal services to
the Debtor in connection with endeavoring to resolve the Sentry
lawsuit.  The firm also provided services in connection with the
Debtor's understanding of bankruptcy as it affects the operations
of the Company.

The Debtor paid ARVPC $80,000 as an advance payment retainer on
July 20, 2011.  A portion of the retainer will be applied against
services rendered by ARVPC, before the bankruptcy filing.

Avrom R. Vann, Esq., attests that his firm has no connection with
the Debtor, its creditors, or any other party in interest, or its
respective attorneys.  Moreover, ARVPC represents no interest
adverse to the Debtor or its estates in the matters upon which it
is to be engaged.

                  About Brand Management Services

Brooklyn, New York-based Brand Management Services Inc. is a
privately held company that provides various business services to
its customers.  Its primary assets consist of accounts receivable,
leasehold improvements and cash in the bank.  Brand Management
Services filed for Chapter 11 bankruptcy (Bankr. E.D.N.Y. Case No.
11-46230) on July 20, 2011.  Judge Joel B. Rosenthal presides over
the case.

Brand Management Services filed with the Court its schedules of
assets and liabilities, disclosing $280,627 in total assets,
consisting mostly of accounts receivable, office improvement and
equipment, and $7,119 in a bank account with Capital One.  The
Debtor listed $10,527,110 in total liabilities, all general
unsecured non-priority in nature.

The petition was signed by Harold Weber, president.


BRAND MANAGEMENT: Status Conference Set for Aug. 15
---------------------------------------------------
The Bankruptcy Court will hold a Status Conference in the
bankruptcy case of Brand Management Services Inc. on Aug. 15,
2011, at 11:00 a.m. at Courtroom 3577 in Brooklyn.

                  About Brand Management Services

Brooklyn, New York-based Brand Management Services Inc. is a
privately held company that provides various business services to
its customers.  Its primary assets consist of accounts receivable,
leasehold improvements and cash in the bank.  Brand Management
Services filed for Chapter 11 bankruptcy (Bankr. E.D.N.Y. Case No.
11-46230) on July 20, 2011.  Judge Joel B. Rosenthal presides over
the case.  Avrom R. Vann, P.C., serves as bankruptcy counsel.

Brand Management Services filed with the Court its schedules of
assets and liabilities, disclosing $280,627 in total assets,
consisting mostly of accounts receivable, office improvement and
equipment, and $7,119 in a bank account with Capital One.  The
Debtor listed $10,527,110 in total liabilities, all general
unsecured non-priority in nature.

The petition was signed by Harold Weber, president.


BRAND MANAGEMENT: Sec. 341 Creditors' Meeting Set for Aug. 29
-------------------------------------------------------------
The United States Trustee for Region 2 will convene a Meeting of
Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case
of Brand Management Services Inc. on Aug. 29, 2011, at 11:30 a.m.
at 271 Cadman Plaza East, Room 4529, in Brooklyn.

                  About Brand Management Services

Brooklyn, New York-based Brand Management Services Inc. is a
privately held company that provides various business services to
its customers.  Its primary assets consist of accounts receivable,
leasehold improvements and cash in the bank.  Brand Management
Services filed for Chapter 11 bankruptcy (Bankr. E.D.N.Y. Case No.
11-46230) on July 20, 2011.  Judge Joel B. Rosenthal presides over
the case.  Avrom R. Vann, P.C., serves as bankruptcy counsel.

Brand Management Services filed with the Court its schedules of
assets and liabilities, disclosing $280,627 in total assets,
consisting mostly of accounts receivable, office improvement and
equipment, and $7,119 in a bank account with Capital One.  The
Debtor listed $10,527,110 in total liabilities, all general
unsecured non-priority in nature.

The petition was signed by Harold Weber, president.


CAMP COOLEY: Taps Hall and Hall to Conduct Live Auction
-------------------------------------------------------
The Hon. Ronald B. King of the U.S. Bankruptcy Court for the
Western District of Texas authorized Camp Cooley Ltd. to employ
Hall and Hall Partners L.L.P. to provide services related to the
auction.

Specifically, the firm will conduct a live auction of the Debtor's
ranch and minerals and provide marketing services related to the
auction, including, focused marketing on the firm's list of the
wealthiest ranch buyers.

If the firm conducts an auction of the Ranch, or a transaction in
which the brokers are paid a commission is consummated, and the
gross sale proceeds of that transaction or auction are less than
$30 million, the firm will receive a fee equal to 15% of the 4%
commission to be paid to the Brokers, with 2/3rd to be paid from
the Brokers' commissions and 1/3rd paid by the Debtor from the
proceeds of the sale.

In the event the gross proceeds of the sale exceed $30 million,
Hall and Hall will receive a fee equal to 20% of the 4% commission
to be paid to the Brokers, with 1/2 to be paid from the Brokers'
commissions and 1/2 paid by the Debtor from the proceeds of the
sale.

In addition, if the successful purchaser of the Ranch and/or
Minerals is a purchaser registered as a client of the firm, the
firm will be entitled to a buyer's broker's commission to be
negotiated with the brokers.  The firm will also be entitled to
reimbursement from the sales proceeds of its reasonable and
necessary expenses incurred in marketing and conducting the live
auction in an amount not to exceed $25,000.

The Debtor assured the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.

                        About Camp Cooley

Franklin, Texas-based Camp Cooley Ltd. operates an agricultural
and farming business.  Camp Cooley is the entity resulting from
the merger of these entities effective Nov. 7, 2009: North CC
Pipeline, LLC; Birkel CCR GP LLC; CCR Royalty, Ltd.; Ultimate
Genetics, LLC; and Camp Cooley Genetics, LLC.

Camp Cooley filed for Chapter 11 bankruptcy protection (Bankr.
W.D. Tex. Case No. 09-61311) on Nov. 8, 2009.  In its schedules,
the Debtor disclosed $57,917,118 in assets and $28,138,421 in
liabilities.

Blake L. Beckham, Esq., at Beckham & Mandel, Esq., in Dallas; and
Debra L. Innocenti, Esq., Raymond W. Battaglia, Esq., and Robert
K. Sugg, Esq., at Oppenheimer Blend Harris & Tate, in San Antonio,
Tex., represent the Debtor as counsel.


CARGO TRANSPORTATION: Court OKs DLA Piper as Committee Counsel
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Middle District of
Florida has approved the Official Committee of Unsecured Creditors
of the Chapter 11 case of Cargo Transportation Services Inc.'s
application to employ and retain DLA Piper as general counsel,
nunc pro tunc April 1, 2011.

DLA is replacing Hunton & Williams LLP as general counsel to the
Committee after Craig Rasile, Esq., resigned from his position
with Hunton to join DLA on April 1, 2011.

As the Committee's counsel, DLA will, among other things:

   (a) advise the Committee with respect to its rights, powers,
       and duties in this cases;

   (b) advise and consult with the Committee concerning various
       legal, financial and operational issues arising from the
       administration of the Debtor's estate;

   (c) advise and consult with the Committee concerning the
       unsecured creditors' rights and remedies with respect to
       the assets of the Debtor's estate and the claims of
       administrative, secured, priority and general unsecured
       creditors as well as other parties in interest;

   (d) prosecute, defend and represent the Committee's interests
       in actions arising in or related to the case; and

   (e) assist in the preparation of such pleadings, motions,
       notices and orders as are required for the orderly
       administration of the rights of the Committee and general
       unsecured creditors.

Compensation will be payable to DLA on an hourly basis, less
agreed-upon 10% fee discount, plus reimbursement of actual,
necessary expenses and other charges incurred by the firm.
The normal hourly rates, prior to the application of the 10%
discount for professional services rendered by DLA range from $55
to $290 per hour for legal assistants, from $220 to $465 per hour
for associates, and from $465 to $835 per hour for counsel and
partners.

The Committee assures the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.

                    About Cargo Transportation

Sunrise, Florida-based Cargo Transportation Services, Inc.,
provides transportation services to clients nationwide, including
customized consolidation, distribution, logistics and warehousing
services.  It has 140 employees and averages $100,000,000 in gross
revenue per year.

Cargo Transportation filed for Chapter 11 bankruptcy protection
(Bankr. M.D. Fla. Case No. 11-00432) on Jan. 12, 2011.  Edward J.
Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA,
serves as the Debtor's bankruptcy counsel.  Jennis & Bowen, P.L.,
serves as substitute counsel.  1 Source Partners Inc. and Accell
Audit & Compliance P.A., serve as the Debtor's certified public
accountants.

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 Chapter 11 proceedings.

The Debtor disclosed $11,728,760 in assets, and $11,869,375 in
liabilities as of the Chapter 11 filing.


CASCADIA PARTNERS: Could Not Develop Plan, Seeks Dismissal
----------------------------------------------------------
Cascadia Partners LLC asks the Hon. William E. Anderson of the
U.S. Bankruptcy Court for the Western District of Virginia to
dismiss its Chapter 11 case because it could not develop a
confirmable plan, and Wells Fargo Bank N.A. has argued and the
Court concluded that there is no equity in the real estate which
forms the basis for this single-asset Chapter 11 case.

According to the Debtor, the real estate is encumbered by a deed
of trust lien in favor of Wells Fargo which will not likely
produce any equity for the unsecured creditors if the property is
sold at foreclosure, which has been requested by the bank.

A hearing is set for Aug. 15, 2011, at 9:30 a.m., to consider the
Debtor's request.

Charlottesville, Virginia-based Cascadia Partners LLC owns and
develops certain real property in Albermarle County, Virginia.  It
filed for Chapter 11 bankruptcy protection (Bankr. W.D. Va. Case
No. 10-63442) on Dec. 1, 2010.  W. Stephen Scott, Esq., at
Scott Kroner, PLC, serves as bankruptcy counsel.  The Debtor
disclosed $12,074,100 in total assets, and $4,292,894 in total
liabilities in its schedules.


CATALYST PAPER: S&P Lowers Corporate to 'CCC' on Weak 2nd Qtr.
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Catalyst Paper Corp. to 'CCC' from 'CCC+'.

"We also lowered our issue-level ratings on the company's senior
secured debt to 'CCC' from 'CCC+' and on its unsecured debt to
'CC' from 'CCC-'. The recovery ratings are unchanged," S&P
related.

At the same time, Standard & Poor's placed all of the ratings on
Catalyst on CreditWatch with negative implications.

"The downgrade reflects what we view as deteriorating liquidity
after the company posted weak second-quarter results," said
Standard & Poor's credit analyst Jatinder Mall. "The CreditWatch
placement reflects our concern that Catalyst's capital structure
review could potentially lead to a distressed exchange offer for
the existing $250 million senior unsecured notes due 2014," Mr.
Mall added.

The ratings on Catalyst reflect what Standard & Poor's views as
the company's highly leveraged capital structure, history of weak
profitability, and its participation in cyclical commodity
markets. In Standard & Poor's opinion, these risks are partially
mitigated by the company's revenue diversity and improving cost
profile.

Catalyst is a diverse manufacturer of specialty mechanical
printing papers, newsprint, and pulp, with a combined annual
production capacity of 2 million metric tons. It has three
production facilities in B.C. and one in Arizona.

Standard & Poor's considers the company's business risk profile as
vulnerable. Catalyst operates in a cyclical industry with
commodity products. Demand for some of its products is in secular
decline (especially newsprint) due to continued migration to the
Internet. Furthermore, the company has limited operational
diversity. The lack of upward integration and Catalyst's
concentration of mills on Vancouver Island expose it to fiber
shortages and currency fluctuations. The company's 2010 EBITDA
generation was considerably affected by a weak U.S. dollar.

"We consider Catalyst's mills to be in the middle of the industry
cost curve. The company has been focused on restructuring its
business and reducing costs per metric ton. In the past couple of
years, it has reduced it workforce, renegotiated labor contracts,
and permanently closed its Elk Falls paper mill and Coquitlam
recycling facility in B.C.," S&P related.

"Historically, Catalyst's profitability has been what we view as
weak, with an average operating margin slightly above 10% and what
we consider a marginal return on capital for the past five years.
We expect that the company's profitability could improve in the
future given cost reduction measures and if prices and demand
hold," S&P said.

Standard & Poor's will likely resolve this CreditWatch once it has
a better understanding of what effect Catalyst's capital structure
review would have on the company's existing US$250 million of
7.375% senior unsecured notes, which mature March 31, 2014.


CATHOLIC CHURCH: Milw. Clergy Opposes Proposed Investigation
------------------------------------------------------------
Dow Jones' DBR Small Cap reports that the Archdiocese of Milwaukee
is objecting to a request by unsecured creditors and abuse
survivors to conduct a probe in the bankruptcy case, suggesting
that the parties are attempting to skirt the bankruptcy filing and
further a series of lawsuits frozen in state court.

                About the Archdiocese of Milwaukee

The Diocese of Milwaukee was established on Nov. 28, 1843, and
was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius
IX.  The region served by the Archdiocese consists of 4,758 square
miles in southeast Wisconsin which includes counties Dodge, Fond
du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth,
Washington and Waukesha.  There are 657,519 registered Catholics
in the Region.

The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for
Chapter 11 bankruptcy protection (Bankr. E.D. Wisc. Case No.
11-20059) on Jan. 4, 2011, to address claims over sexual abuse
by priests on minors.

The Archdiocese became at least the eighth Roman Catholic diocese
in the U.S. to file for bankruptcy to settle claims from current
and former parishioners who say they were sexually molested by
priests.

Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in
Milwaukee, Wisconsin, serves as the Archdiocese's counsel.  The
Official Committee of Unsecured Creditors in the bankruptcy case
has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and
Howard, Solochek & Weber, S.C., as its local counsel.

The Archdiocese estimated assets and debts of $10 million to
$50 million in its Chapter 11 petition.

(Catholic Church Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


CENTRAL FALLS: S&P Affirms SPUR at 'C' After Bankruptcy Filing
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'C' underlying
rating (SPUR) on Central Falls, R.I.'s general obligation (GO)
debt following the city's Aug. 1, 2011, filing of a petition
for Chapter 9 bankruptcy. The outlook is developing.

Pursuant to its criteria, Standard & Poor's may assign a 'C'
rating to an issue if the obligor is either a debtor under the
U.S. Bankruptcy Code or similar action has been taken, but
payments on rated obligations are being continued. In accordance
with this, Standard & Poor's previously lowered the GO rating to
'C' from 'BBB-' on May 20, 2010, based on the appointment of a
receiver for Central Falls.

City officials have expressed to Standard & Poor's that Central
Falls intends to continue to make full debt service payments and
prioritize debt. However, in Standard & Poor's opinion, given the
Chapter 9 bankruptcy filing, the prospect of full and timely
payments on the GO debt is uncertain, notwithstanding that,
pursuant to the recently amended Rhode Island General Laws in
Chapter 45-12-1, a first lien on ad valorem taxes and general fund
revenues secures the bonds. Shortly after the Chapter 9 petition
was filed, city officials also filed a motion to approve rejection
of the city's collective bargaining agreements with its police,
fire, and municipal employees unions. City officials also report
that the city will immediately implement such cost-cutting
measures as increased copayments, deductibles, and coshares of
premiums on active employee and retiree health plans and a
reduction in pension plan cost-of-living adjustments.

"In resolving the developing outlook, Standard & Poor's will
continue to monitor the city's progress and assess its ability and
capacity to fulfill its obligations outstanding," said Standard &
Poor's credit analyst Matthew Stephan.

The city currently has about $20 million of GO debt outstanding
and remains current on all such obligations.


CHELLE CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Chelle Construction, Inc.
        19151 SW 108th Ave., Bay#23
        Miami, FL 33157

Bankruptcy Case No.: 11-31930

Chapter 11 Petition Date: August 4, 2011

Court: United States Bankruptcy Court
       Southern District of Florida (Miami)

Judge: Laurel M. Isicoff

Debtor's Counsel: James D. Gassenheimer, Esq.
                  BERGER SINGERMAN, P.A.
                  200 S Biscayne Blvd # 1000
                  Miami, FL 33131
                  Tel: (305) 755-9500
                  E-mail: jgassenheimer@bergersingerman.com

Scheduled Assets: $2,642,814

Scheduled Debts: $3,317,002

A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/flsb11-31930.pdf

The petition was signed by Scott D. Lehman, vice president.

Affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
Lehman Southland, LLC                  11-31905   08/04/11


CHESTER HOLDINGS: S&P Assigns 'BB-' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Peapack, N.J.-based Chester Holdings S.a.r.l.
(d/b/a Capsugel). The outlook is stable.

"At the same time, we assigned a 'BB-' senior secured debt rating
and a '3' recovery rating to the company's $150 million revolving
credit facility and $920 million term loan. The ratings reflect
our expectation of meaningful (50% to 70%) recovery of principal
for lenders in the event of default," S&P related.

"We also assigned a 'B' issue rating and a '6' recovery rating to
the company's EUR325 million ($460 million equivalent) senior
unsecured notes. The '6' recovery rating reflects our expectation
of negligible (0% to 10%) recovery of principal for lenders in the
event of default," S&P related.

"The speculative-grade ratings on Capsugel reflect its highly
leveraged financial risk profile," said Standard & Poor's credit
analyst David Lugg, "highlighted by pro forma operating lease-
adjusted debt to EBITDA which is almost 7x and the execution risk
associated with its spin-off from pharmaceutical giant Pfizer
Inc." "These risks are partly offset by Capsugel's satisfactory
business risk profile given its leading market position in the
hard capsule market, strong customer relationships, significant
barriers to entry, high profitability, and our view of stable
long-term industry growth prospects."


CHURCH OF THE FIRST: Case Summary & 17 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Church Of The First Born Int'l. Inc.
        4701 North 76th Street
        Milwaukee, WI 53218

Bankruptcy Case No.: 11-32117

Chapter 11 Petition Date: August 4, 2011

Court: United States Bankruptcy Court
       Eastern District of Wisconsin (Milwaukee)

Judge: Margaret Dee McGarity

Debtor's Counsel: John D. Dries, Esq.
                  7251 West North Avenue
                  Wauwatosa, WI 53213
                  Tel: (414) 453-9866
                  E-mail: johnddries@sbcglobal.net

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A list of the Company's 17 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/wieb11-32117.pdf

The petition was signed by Linda F. Dickens, executive
administrator - director.


CIRCLE ENTERTAINMENT: Incurs $1 Million Net Loss in June 30 Qtr.
----------------------------------------------------------------
Circle Entertainment Inc. filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of $1.02 million on $0 of revenue for the three months
ended June 30, 2011, compared with a net loss of $11.31 million on
$0 of revenue for the same period during the prior year.

The Company also reported a net loss of $2.79 million on $0 of
revenue for the six months ended June 30, 2011, compared with a
net loss of $22.23 million on $0 of revenue for the same period a
year ago.

The Company's balance sheet at June 30, 2011, showed $2.75 million
in total assets, $6.18 million in total liabilities, and a
$3.43 million total stockholders' deficit.

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/kOdDj1

                     About Circle Entertainment

Circle Entertainment Inc. (CEXE.PK), formerly FX Real Estate and
Entertainment Inc., owns 17.72 contiguous acres of land located at
the southeast corner of Las Vegas Boulevard and Harmon Avenue in
Las Vegas, Nevada.  The Las Vegas Property is currently occupied
by a motel and several commercial and retail tenants with a mix of
short and long-term leases.  On June 23, 2009, as a result of the
default under the first mortgage loan, the first lien lenders had
a receiver appointed to take control of the property.  The Company
is headquartered in New York City.

The Company disclosed in its Form 10-Q for the quarter ended
June 30, 2010, that it has no current cash flow and cash on hand
as of Aug. 13, 2010, is not sufficient to fund its short-term
liquidity requirements, including its ordinary course obligations
as they come due.  On April 21, 2010, the Company's remaining Las
Vegas subsidiary, namely FX Luxury Las Vegas I, LLC, filed for
Chapter 11 in the U.S. Bankruptcy Court for the District of Nevada
(Case No. 10-17015).

The Company's Las Vegas subsidiary filed for Chapter 11 bankruptcy
on April 21, 2010, and a plan of liquidation or reorganization
will eventually be implemented under which the Company will
surrender ownership of the Las Vegas Property.  Under such a plan,
it is extremely unlikely the Company will receive any material
interest or benefit.

The Company reported net income of $346.81 million on $0 of
revenue for the year ended Dec. 31, 2010, compared with a net loss
of $114.68 million on $0 of revenue during the prior year.  The
net profit generated in the year was primarily on account of a
$390.75 million gain from discharge of net assets due to
bankruptcy plan.  The Company's operating subsidiary sought
Chapter 11 protection last year.

As reported by the TCR on April 11, 2011, L.L. Bradford & Company,
LLC, in Las Vegas, Nevada, expressed substantial doubt about the
Company's ability to continue as a going concern.  The independent
auditors noted that the Company has limited available cash, has a
working capital deficiency and will need to secure new financing
or additional capital in order to pay its obligations.


CITIZENS BANCORP: Reports $24.2-Mil. Net Income in 2nd Quarter
--------------------------------------------------------------
Citizens Republic Bancorp, Inc., filed its quarterly report on
Form 10-Q, reporting net income of $24.2 million on $77.6 million
of net interest income for the three months ended June 30, 2011,
compared with a net loss of $39.3 million on $84.6 million of net
interest income for the three months ended June 30, 2010.

Provision for loan losses was $17.6 million for the second quarter
of 2011, compared with $70.6 million for the second quarter of
2010.

Non-interest income was $23.3 million for the second quarter of
2011, compared with $22.3 million for the second quarter of 2010.

The Company reported a net loss of $44.5 million on $156.2 million
of net interest income for the six months ended June 30, 2011,
compared with a net loss of $124.3 million on $165.8 million of
net interest income for the six months ended June 30, 2010.

Provision for loan losses was $106.3 million for the six months
ended June 30, 2011, compared with $172.0 million for the six
months ended June 30, 2010.

Non-interest income totaled $46.5 million for the six months ended
June 30, 2011, compared with $44.7 million for the first six
months of 2010.

The Company's balance sheet at June 30, 2011, showed
$9.496 billion in total assets, $8.516 billion in total
liabilities, and stockholders' equity of $979.7 million.

A copy of the Form 10-Q is available at http://is.gd/l3nL2p

Flint, Michigan-based Citizens Republic Bancorp, Inc. --
http://www.citizensbanking.com/-- is a diversified financial
services company providing a wide range of commercial, consumer,
mortgage banking, trust and financial planning services to a broad
client base.  Citizens serves communities in Michigan, Ohio,
Wisconsin, and Indiana with 220 offices and 249 ATMs.  Citizens is
the largest bank holding company headquartered in Michigan with
roots dating back to 1871 and is the 55th largest bank holding
company headquartered in the United States.

                          *     *     *

Citizens Republic Bancorp, Inc., carries Fitch 'CCC' long-term
issuer ratings last issued on Feb. 4, 2011.


CITY NATIONAL BANCSHARES: Incurs $1.5MM Net Loss in 1st Quarter
---------------------------------------------------------------
City National Bancshares Corporation filed with the U.S.
Securities and Exchange Commission its quarterly report on form
10-Q reporting a net loss of $1.55 million on $4.07 million of
total interest income for the three months ended March 31, 2011,
compared with a net loss of $704,000 on $5.52 million of total
interest income for the same period a year ago.

The Company's balance sheet at March 31, 2011, showed $398.59
million in total assets, $377.51 million in total liabilities and
$21.08 million in total stockholders' equity.

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/eoEQda

                   About City National Bancshares

Newark, N.J.-based City National Bancshares Corporation is a New
Jersey corporation incorporated on January 10, 1983.  City
National Bank, a wholly-owned subsidiary of CNBC, is a national
banking association chartered in 1973 under the laws of the United
States of America and has one subsidiary, City National
Investments, Inc., an investment company which holds, maintains
and manages investment assets for CNB.  CNB provides a wide range
of retail and commercial banking services through its retail
branch network, although the primary focus is on establishing
commercial and municipal relationships.

The Bank owns a 35.4% interest in a leasing company, along with
two other minority banks and has small investments in a Haitian
financial organization that provides microloan financing to
individuals in rural Haiti for business purposes and a mutual fund
which invests in targeted projects throughout the country that are
eligible for Community Reinvestment Act ("CRA") credit.

As reported by the TCR on June 1, 2011, KPMG LLP, in Short Hills,
New Jersey, expressed substantial doubt about City National
Bancshares' ability to continue as a going concern.  The
independent auditors noted that the Company has suffered recurring
losses from operations and has entered into a consent order with
the Office of the Comptroller of the Currency.

The Company reported a net loss of $7.5 million on $12.8 million
of net interest income for 2010, compared with a net loss of
$7.8 million on $14.7 million of net interest income for 2009.


CONGRESS SAND: Presidential Financial Hikes DIP Loan to $1.9-Mil.
-----------------------------------------------------------------
Congress Sand & Gravel, LLC, et al., notified the U.S. Bankruptcy
Court for the Northern District of Texas that Presidential
Financial Corporation, their DIP lender, has increased the maximum
loan amount and aggregate debt amount up to $1,900,000.

On July 13, 2011, Presidential also filed a notice of an increased
maximum loan amount from $1,750,000 to $1,835,000.

As reported in the Troubled Company Reporter on Nov. 11, 2010, the
Debtors and the DIP lender have contemplated raising the maximum
loan amount to $1.90 million by agreement, but in the DIP Lender's
sole discretion.  A copy of the DIP financing is available for
free at:

   http://bankrupt.com/misc/CONGRESS_SAND_dipfinancingpact.pdf

On Dec. 16, 2010, the Court authorized, on a final basis, the
Debtor to obtain (i) $1,750,000 postpetition financing; and (ii)
use cash collateral.

The Debtors will grant, super-priority administrative, first
priority and junior priority liens to the DIP Lender.

Presidential is represented by:

          H. Jefferson LeForce, Esq.
          PATTON BOGGS LLP
          2000 McKinney Avenue, Suite 1700
          Dallas, TX 75201
          Tel: (214) 758-1500

                       About Congress Sand

Bridgeport, Texas-based Congress Materials, LLC -- dba Green
Aggregates and Union Materials, LP -- filed for Chapter 11
bankruptcy protection (Bankr. N.D. Tex. Case No. 10-37526) on
Oct. 28, 2010.  It estimated assets and debts at $10 million
to $50 million.

Kerens, Texas-based Congress Sand filed for Chapter 11 bankruptcy
protection (Bankr. N.D. Tex. Case No. 10-37522) on Oct. 28, 2010.
It estimated its assets and debts at $1 million to $10 million.

Congress Materials' bankruptcy case is jointly administered with
Congress Sand & Gravel, LLC.  Congress Sand is the lead case.
Douglas S. Draper, Esq., at Heller Draper Hayden Patrick & Horn,
LLC, assists Congress Sand and Congress Materials in their
restructuring efforts.  Beveridge & Diamond, PC, serves as special
counsel to represent the Debtors concerning the Texas Commission
on Environmental Quality regulation of environmental matters.

Affiliate Green Aggregates, Inc. (Bankr. N.D. Tex. Case No. 07-
53439) filed a separate Chapter 11 petition on Dec. 31, 2007.


CONOLOG CORP: Issues $256,350 Promissory Note to Robert Benou
-------------------------------------------------------------
Conolog Corporation, on July 28, 2011, issued a promissory note in
favor of Robert Benou in the principal amount of $191,350,
consisting of amounts previously advanced by Mr. Benou to the
Company between Jan. 24, 2011, and June 20, 2011.  Also on
July 28, 2011, Conolog Corporation issued a promissory note in
favor of Robert Benou in the principal amount of $65,000,
consisting of amounts advanced by Mr. Benou to the Company on
July 12, 2011, and July 18, 2011.

Mr. Benou is the Chief Executive Officer and Chairman of the
Company.  The advances were made by Mr. Benou to assist the
Company in meeting short-term obligations.  The Notes are payable
on demand and does not bear interest.  The Note is subject to
various default provisions, and the occurrence of such an Event of
Default will cause the outstanding principal amount under the
Notes, together with any and all other amounts payable under the
Notes, to become immediately due and payable to Mr. Benou.

Full-text copies of the Promissory Notes are available for free
at:

                       http://is.gd/T5fiBY
                       http://is.gd/TaDPmm

                        About Conolog Corp.

Somerville, N.J.-based Conolog Corporation is in the business of
design, manufacturing and distribution of small electronic and
electromagnetic components and subassemblies for use in telephone,
radio and microwave transmissions and reception and other
communication areas.  The Company's products are used for
transceiving various quantities, data and protective relaying
functions in industrial, utility and other markets.  The Company's
customers include primarily industrial customers, which include
power companies located primarily throughout the United States,
and various branches of the military.

The Company's balance sheet at Jan. 31, 2011, showed $1.1 million
in total assets, $861,227 in total liabilities, and stockholders'
equity of $251,212.

As reported in the Troubled Company Reporter on Dec. 7, 2010,
WithumSmith+Brown, PC, in Somerville, New Jersey, expressed
substantial doubt about Conolog's ability to continue as a going
concern, following the Company's results for the fiscal year ended
July 31, 2010.  The independent auditors noted that the Company
has had recurring losses from operations of $3.5 million and
$1.6 million and used cash from operations in the amounts of
$1.6 million and $1.3 million for the years ended July 31, 2010,
and 2009, respectively.


CONTINENTAL COMMON: Has Until Aug. 31 to Use PNC Cash Collateral
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
authorized Continental Common, Inc. to use the cash collateral of
PNC Bank N.A. pursuant to an agreed order submitted by the
parties.

Pursuant to the agreement, the Debtor may access the cash
collateral until Aug. 31, 2011.  The Debtor would use the cash
collateral to maintain its assets, sell or otherwise liquidate its
assets, provide financial information, pay necessary employees,
payroll taxes, overhead, and other expenses necessary to maximize
the value of the Debtor's assets

As reported in the Troubled Company Reporter on July 14, 2011, as
adequate protection of the lender's interests, the Debtor will
make a monthly interest payment to PNC in the amount shown in the
Cash Collateral Budget for each month.

All funds transferred to PNC constitute cash collateral of PNC.

A copy of the Cash Collateral Budget is available for free at:

  http://bankrupt.com/misc/CONTINENTALCOMMON_cashcoll_budget.pdf

PNC is represented by:

         William L. Wallander, Esq.
         Bradley R. Foxman, Esq.
         VINSON & ELKINS L.L.P.
         Trammell Crow Center
         2001 Ross Avenue, Suite 3700
         Dallas, TX 75201-2975
         Tel: (214) 220-7700
         Fax: (214) 220-7716
         E-mail: bwallander@velaw.com
                 bfoxman@velaw.com

                     About Continental Common

Dallas, Texas-based Continental Common, Inc., has primary assets
consist of various real estate holdings in multiple states.  The
Company filed for Chapter 11 bankruptcy protection on October 28,
2010 (Bankr. N.D. Tex. Case No. 10-37542).  Melissa S. Hayward,
Esq., at Franklin Skierski Lovall Hayward LLP, represents the
Debtor.  The Company disclosed $29,250,424 in assets and
$25,150,836 in liabilities.  The U.S. Trustee has not appointed
creditors' committee or examiner in the case.


CORDIA COMMUNICATIONS: Adequate Assurance of Payment Deal OK'd
--------------------------------------------------------------
Karen S. Jennemann of the U.S. Bankruptcy Court for the Middle
District of Florida approved the stipulation between Cordia
Communications Corp., et al., and One Communications, Inc., an
EarthLink Business company, establishing adequate assurance of
payment to One Communications.

The CLEC Debtors and Earthlink were able to agree on terms that
allow the CLEC Debtors to continue to receive service from
Earthlink in order to provide postpetition service to the CLEC
customers and that afford Earthlink protections sufficient to
provide adequate assurance of payment for the service.

Pursuant to the stipulation:

   -- the CLEC Debtors have agreed to, on a going forward basis
   beginning June 20, 2011, pay Earthlink $769 weekly, which
   amount will constitute an estimate of advance payment for
   services to be provided during the upcoming week based on
   historical average usage;

   -- provides a true-up mechanism whereby actual usage will be
   reconciled with the advance weekly payments remitted by the
   CLEC Debtors to Earthlink and appropriate payments or credits
   issued; and

   -- the CLEC Debtors will dismiss the Adversary Proceeding with
   prejudice as to Earthlink upon the entry of an order by the
   Court approving the stipulation and the order becoming final
   and non-appealable.

On the Petition Date, the CLEC Debtors commenced an adversary
proceeding against Verizon Services Corp., Qwest Corporation,
Affinity Networks, Inc. doing business as ANI Networks, One
Communications Corp., and PAETEC Communications, Inc.  By the
Adversary Proceeding, the CLEC Debtors seek a declaratory
judgment holding that defendants are not utilities for the
purposes of section 366 of the Bankruptcy Code and therefore
section 366 is inapplicable to the relationship between the
CLEC Debtors.

                    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.  Bingham McCutchen LLP as special telecommunications
counsel.

Cordia Communications Inc. was authorized in July 2011 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.


CORELOGIC INC: Moody's Affirms Ba2 Corporate; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service affirmed CoreLogic, Inc.'s Ba2 corporate
family and probability of default ratings, but revised the
Speculative Grade Liquidity rating to SGL-2 from SGL-1 and the
ratings outlook to negative from stable.

RATINGS RATIONALE

The revised negative outlook reflects uncertainty of the financial
impact on CoreLogic arising from the sharp decline in mortgage
originations and default activity, which has been exacerbated by
the prolonged industry moratoriums imposed by many of the leading
banks due to alleged errors in the foreclosure process. The
unknown magnitude of evolving regulation and industry-wide
litigation on CoreLogic's business model also contributes to the
negative outlook.

While CoreLogic's revenues and profitability will be pressured
through at least the end of 2012, the company's liquidity profile
is good. The company had $171 million of cash as of June 30, 2011
and about $500 million of revolver availability. Given the
company's downward earnings guidance, Moody's expects free cash
flow to be breakeven to slightly positive for 2011. For 2012,
however, assuming stabilizing industry conditions, Moody's expects
free cash flow to range from $50 to 100 million, consistent with
2010 levels. CoreLogic's liquidity profile should enable the
company to withstand the negative effects of weak industry
conditions through 2012. Nevertheless, the decrease in the SGL
rating reflects lower than anticipated cash flows and profits.

Yesterday, CoreLogic revised its earnings guidance downwards for
2011 by over 20% from earlier guidance (adjusted EBITDA of $260-
280 million from $335-365 million) while projected revenues
essentially remains unchanged with a mix shift to lower margin
services. The earnings cut is primarily driven by the significant
declines in appraisal services (part of both Mortgage Origination
Services and equity earnings through joint ventures) and Default
Services (e.g., broker price opinions) as well as the
underperformance of CoreLogic's marketing services business
(provider of internet marketing solutions and lead generation in
the specialty and personal financial markets).

With the lower anticipated profitability, adjusted debt to EBITDA
could rise to the high 3 times by the end of 2011 (currently about
mid 3x). CoreLogic's ratings could be lowered if it becomes
evident that 1) mortgage originations will decline by greater than
the 6% rate forecasted by the Mortgage Bankers Association for
2012, 2) Default Services revenues will continue to decline into
2012, 3) CoreLogic engages in significant share buyback or
acquisition activity, 4) cash flows fall below Moody's
expectations, or 5) adjusted debt to EBITDA remains above 3.5x
(Moody's adjusted) on a sustained basis. Furthermore, to the
extent that CoreLogic will incur significant legal costs or have
to pay a meaningful settlement for the FDIC lawsuit, the ratings
could be downgraded depending on the company's liquidity position
at that time.

Ratings affirmed (assessments revised):

Corporate Family Rating -- Ba2

Probability of Default Rating -- Ba2

$550 Million Senior Secured Revolving Credit Facility due 2016 --
Baa3, (LGD 2, 19% from 23%)

$350 Million Senior Secured Term Loan due 2016 -- Baa3, (LGD 2,
19% from 23%)

$400 million Senior Notes due 2021 -- Ba3, (LGD 5, 79%)

$59.6 million of 7.55% Senior Debentures due 2028 -- B1, (LGD 6,
94% from 95%)

$34.8 million of 8.5% Capital Securities due 2012 -- B1, (LGD 6,
96% from 97%)

Rating revised:

Speculative Grade Liquidity Rating -- SGL-2 from SGL-1

The rating outlook is negative.

The principal methodology used in rating CoreLogic was Global
Business & Consumer Service Industry Rating Methodology rating
methodology published in October 2010.

CoreLogic, Inc., with about $1.6 billion of projected annual
revenues, is a leading provider of property and mortgage data and
analytics products and solutions. The company provides mortgage
risk tools and other analytical products; property and credit
information; and outsourcing solutions for lenders, employers and
other business clients.


COVENANT INVESTMENTS: Participating Lender's Bid for Fees Denied
----------------------------------------------------------------
Bankruptcy Judge Ralph B. Kirscher denied an application by First
Security Bank of Bozeman, Montana, for payment of $15,030 in
attorney's fees and reimbursement of $150.49 in expenses in the
bankruptcy case of Covenant Investments Inc., saying the requested
fees are, for the most part, duplicative of those already awarded
to Flathead Bank, Valley Bank of Belgrade Branch, which syndicated
the loan.

Covenant Investments borrowed $3,929,036 and $1,807,359 pursuant
to two separate promissory notes.  First Security Bank is a
participating lender for the secured loans.  On July 13, 2011, the
Court awarded Valley Bank's counsel, Wayne E. Jennings, Esq.,
reasonable professional fees in the total amount of $13,527.50 and
costs in the amount of $955.00 for a total of $14,482.50 as part
of the allowed claim of oversecured creditor Valley Bank.

According to Judge Kirscher, the effort by Valley Bank and First
Security to collect from the bankruptcy estate their separate fees
with respect to the loan in effect penalizes the Debtor and the
bankruptcy estate.  The fact that Valley Bank and First Security
entered into the participation agreements does not give them the
unilateral authority to double the fees and costs that the Debtor
is liable to pay under the agreements associated with loans.

A copy of Judge Kirscher's Aug. 5, 2011 Memorandum of Decision is
available at http://is.gd/NcA9BQfrom Leagle.com.

                    About Covenant Investments

Covenant Investments, Inc. in Bozeman, Montana, filed for Chapter
11 bankruptcy (Bankr. D. Mont. Case No. 10-62105) on Aug. 30,
2010.  Judge Ralph B. Kirscher presides over the case.  James A.
Patten, Esq. -- japatten@ppbglaw.com -- at Patten, Peterman,
Bekkedahl & Green, P.L.L.C.  The Debtor scheduled $6,059,042 in
assets and $18,304,947 in debts.  The petition was signed by Dewin
Madill, president.  Covenant's Second Amended Disclosure Statement
was approved May 19, 2011.  Covenant's Second Amended Chapter 11
Plan was confirmed on May 19, 2011.


CROWN MEDIA: Reports $21.7 Million Net Income in June Quarter
-------------------------------------------------------------
Crown Media Holdings, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on form 10-Q reporting
net income and comprehensive income of $21.73 million on
$76.15 million of total net revenue for the three months ended
June 30, 2011, compared with a net loss and comprehensive loss of
$8.98 million on $65.71 million of total net revenue for the same
period during the prior year.

The Company also reported net income and comprehensive income of
$85.83 million on $149.74 million of total net revenue for the six
months ended June 30, 2011, compared with a net loss and
comprehensive loss of $11.30 million on $134.08 million of total
net revenue for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed
$727.88 million in total assets, $616.90 million in total
liabilities, $200.57 million in redeemable preferred stock, and a
$89.59 million total stockholders' deficit.

"We were successful in delivering a solid quarter of financial
results, based on a strong advertising market, growth in our
subscribers, and our continuing ability to maintain a cost-
effective operating structure in order to maximize our bottom
line," noted Bill Abbott, President and CEO of Crown Media.  "This
profile enabled us to access the institutional markets to
refinance our existing debt, significantly lowering our borrowing
costs and ensuring long-term stability."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/vgmZZd

                         About Crown Media

Studio City, Calif.-based Crown Media Holdings, Inc. (NASDAQ:
CRWN) -- http://www.hallmarkchannel.com/-- owns and operates
cable television channels dedicated to high quality, broad appeal,
entertainment programming.  The Company currently operates and
distributes Hallmark Channel in both high definition (HD) and
standard definition (SD) to 90 million subscribers in the U.S.
Crown Media also operates a second 24-hour linear channel,
Hallmark Movie Channel, available in both HD and SD, which focuses
on family-friendly movies with a mix of classic theatrical films,
presentations from the acclaimed Hallmark Hall of Fame library,
original Hallmark Channel movies and special events.

                          Going Concern

KPMG LLP, in Denver, the Company's independent registered public
accounting firm, rendered a going concern opinion in connection
with the financial statements included in the Company's annual
report on form 10-k for the year ended Dec. 31, 2009.  The
independent auditors noted of the Company's significant short-term
debt obligations.

KPMG LLP, however, did not issue a going concern opinion in its
report on the Company's 2010 financial statements.

                           *     *     *

As reported by the TCR on July 25, 2011, Standard & Poor's Ratings
Services assigned Studio City, Calif.-based cable network company
Crown Media Holdings Inc. its 'B' corporate credit rating.  The
outlook is stable.

"The stable rating outlook reflects our expectation that the
company could reduce its lease-adjusted leverage over the
intermediate term through EBITDA growth and modest debt repayment,
barring any unforeseen events," S&P said.


DEB SHOPS: Aims to Secure $30-Mil. Loan for Post-Sale Operations
----------------------------------------------------------------
Dow Jones' DBR Small Cap reports that Deb Shops Inc. wants to move
forward with a $30 million loan from PNC Bank that the retailer's
proposed buyer would spend to continue operating its network of
316 stores and to pay off various debts.

                          About Deb Shops

Deb Shops Inc., is a closely held women's-clothing retailer based
in Philadelphia.  Deb Shops sells junior and large-size clothing
for girls and women ages 13 to 25 through more than 320 U.S.
stores and through debshops.com.  It was bought out by the New
York investment firm Lee Equity Partners in October 2007.

DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought
bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on
June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363.  As of
April 30, 2011, the Debtors' unaudited financial statements
reflected assets totaling $124.4 million and liabilities totaling
$270.1 million.

Lawyers at Weil Gotshal & Manges LLP and Richards, Layton & Finger
P.A. serve as bankruptcy counsel.  Rothschild Inc. serves as the
Debtors' investment banker and financial advisors.  Kurtzman
Carson Consultants, LLC, serves as claims agent.  Sitrick &
Company serves as public relations consultants.

Ableco, the DIP Agent is represented by Michael L. Tuchin, Esq.,
and David A. Fidler, Esq., at Klee Tuchin Bogdanoff & Stern LLP.
Conway Del Genio serves as financial advisors to the First Lien
Lenders.  Schulte Roth serves as corporate and tax advisors to the
First Lien Lenders.  Another lender, Lee DSI Holdings, is
represented by Jennifer Rodburg, Esq., at Fried Frank Harris
Shriver & Jacobson LLP.


DEB SHOPS: Committee Proposes Otterbourg as Lead Counsel
--------------------------------------------------------
Dow Jones' DBR Small Cap reports that the Deb Shops Inc.'s
official committee of unsecured creditors seeks permission from
the U.S. Bankruptcy Court in Wilmington to hire Otterbourg
Steindler Houston & Rosen as lead counsel.  The company filed its
application on July 28.

                          About Deb Shops

Deb Shops Inc., is a closely held women's-clothing retailer based
in Philadelphia.  Deb Shops sells junior and large-size clothing
for girls and women ages 13 to 25 through more than 320 U.S.
stores and through debshops.com.  It was bought out by the New
York investment firm Lee Equity Partners in October 2007.

DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought
bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on
June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363.  As of
April 30, 2011, the Debtors' unaudited financial statements
reflected assets totaling $124.4 million and liabilities totaling
$270.1 million.

Lawyers at Weil Gotshal & Manges LLP and Richards, Layton & Finger
P.A. serve as bankruptcy counsel.  Rothschild Inc. serves as the
Debtors' investment banker and financial advisors.  Kurtzman
Carson Consultants, LLC, serves as claims agent.  Sitrick &
Company serves as public relations consultants.

Ableco, the DIP Agent is represented by Michael L. Tuchin, Esq.,
and David A. Fidler, Esq., at Klee Tuchin Bogdanoff & Stern LLP.
Conway Del Genio serves as financial advisors to the First Lien
Lenders.  Schulte Roth serves as corporate and tax advisors to the
First Lien Lenders.  Another lender, Lee DSI Holdings, is
represented by Jennifer Rodburg, Esq., at Fried Frank Harris
Shriver & Jacobson LLP.


DELPHI CORP: Court Finds No Loopholes in Assignment of Claim
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that a buyer who paid 89 cents on the dollar for a claim
against Delphi Corp. failed to find a loophole creating the right
to force the seller to repurchase the $2.1 million claim against
the company that once was the largest U.S. auto-parts maker.  The
buyer, Longacre Master Fund Ltd., purchased the claim when Delphi
had a Chapter 11 plan on file where unsecured creditors were to be
paid in full.  Although the plan was confirmed, it could never be
implemented.

According to the report, Longacre contended it was entitled to
force the original holder to repurchase the claim under several
theories arising from the purchase agreement.  None of the
theories persuaded U.S. District Judge Robert W. Sweet in New
York.  Part of Longacre's lawsuit was based the idea that a
preference suit filed against the seller was an "impairment" of
the claim, enabling the buyer to recover the purchase price plus
interest.  Judge Sweet said that making a claim against the buyer
didn't affect the validity of the claim, even though Section 502
of the Bankruptcy Code automatically disallowed the claim unless
the preference was repaid.

Mr. Rochelle notes that Judge Sweet's opinion in large part rested
on a 2007 opinion written by U.S. District Judge Shira Scheindlin
in the liquidation of Enron Corp.  Judge Sweet drew a distinction
between a complete sale of the claim and an assignment, where the
seller retains some of the attributes of the claim.  In the Delphi
situation, it was an assignment.  Judge Sweet also ruled that the
seller's knowledge that it received payments within 90 days of
Delphi's bankruptcy didn't amount to knowledge at the time of the
sale that that there was a valid preference claim in existence.
The result might have been different were the preference suit not
ultimately dismissed.

The case is Longacre Master Fund Ltd. V. ATS Automation Tooling
Systems Inc., 10-8024, U.S. District Court, Southern District of
New York (Manhattan).

                        About Delphi Corp.

Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- was a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments.  Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.

The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead
Case No. 05-44481) on Oct. 8, 2005.  John Wm. Butler Jr., Esq.,
John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps,
Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

The Court confirmed Delphi's plan on Jan. 25, 2008.  The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi.  At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.

On Oct. 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization
became effective.  A Master Disposition Agreement executed among
Delphi Corporation, Motors Liquidation Company, General Motors
Company, GM Components Holdings LLC, and DIP Holdco 3, LLC,
divides Delphi's business among three separate parties -- DPH
Holdings LLC, GM Components, and DIP Holdco 3.

Delphi emerged from Chapter 11 as DPH Holdings.  DPH Holdings is
responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.

Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News.  The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates.  (http://bankrupt.com/newsstand/
or 215/945-7000)


DELTA AIR: Posts $366 Mil. Net Income in Second Quarter
-------------------------------------------------------
Delta Air Lines reported financial results for the June 2011
quarter on July 27, 2011.  Key points include:

    * Delta's net income for the June 2011 quarter was $366
      million, or $0.43 per diluted share, excluding special
      items(1).

    * Delta's net income was $198 million, or $0.23 per diluted
      share, for the June 2011 quarter.

    * Strong top line revenue growth of 12% year over year
      helped offset more than $1 billion higher fuel expense.

    * Delta generated a revenue premium, with unit revenues up
      10% for the quarter.

    * Delta generated $1 billion of operating cash flow and $700
      million in free cash flow in the quarter.  The company
      ended the June 2011 quarter with $5.6 billion in
      unrestricted liquidity.

"High fuel prices are putting significant pressure on the
industry, but the benefits of Delta's strategic actions and the
dedication of Delta employees are evident in the solid profit we
produced despite more than $1 billion in higher fuel expense,"
said Richard Anderson, Delta's chief executive officer.  "Our
revenue momentum, coupled with the capacity reductions we are
making in September and actions to get our non-fuel costs to 2010
levels, will generate the margins we need to hit our return
targets."

           Adapting the Business for Higher Fuel Prices

Delta is recalibrating its business to succeed in a permanent,
high fuel price environment.  The company's actions include:

    * Using fare increases, fuel surcharges and revenue
      initiatives to recover fuel cost increases through ticket
      prices;

    * Reducing its December quarter capacity by 4 ? 5% year over
      year, an incremental 1 point reduction from previous
      guidance, focused in markets where revenues do not cover
      higher fuel costs. Domestic capacity will be down 1 ? 3%
      and international capacity will be down 4 ? 6%.  In the
      transatlantic, Delta and its partners, Air France ? KLM
      and Alitalia, established capacity levels as a single
      entity, leading to a combined reduction in transatlantic
      capacity of 7 ? 9% for the December quarter;

    * Retiring 140 of Delta's least efficient aircraft by the
      end of 2012, including the entire DC9 and Saab turbo-prop
      fleets, and 60 50-seat regional jets.  Half of these
      aircraft will exit the fleet in 2011, which will
      contribute to the expected $250 million in maintenance
      savings for the second half of 2011 compared to the first
      half of the year; and

    * Implementing initiatives to reduce the company's non-fuel
      unit costs to 2010 levels by the end of 2011, including
      voluntary exit programs accepted by more than 2,000
      employees; consolidating more than 1.2 million square feet
      of facilities in Atlanta and Minneapolis; and lowering
      selling and distribution costs by shifting to more
      efficient distribution channels.

                       Revenue Environment

Delta's operating revenue grew $1 billion, or 12%, in the June
2011 quarter compared to the 2010 quarter.  Traffic rose 1% on a
2.5% increase in capacity.

    * Passenger revenue increased 13%, or $882 million, compared
      to the prior year period.  Passenger unit revenue (PRASM)
      increased 10%, driven by a 12% improvement in yield
      partially offset by a 1.3 point decline in load factor.
      Passenger revenues were negatively impacted by $125
      million as a result of the March events in Japan.

    * Cargo revenue increased 25%, or $53 million, on higher
      cargo volume and yield.

    * Other revenue increased 5%, or $50 million, from higher
      third-party maintenance revenue.

As part of its plan to generate $1 billion in incremental revenue
by 2013, Delta launched its new international premium economy
product, Economy Comfort, on June 1.  Revenue from Economy
Comfort and other new seat-related products and merchandising
initiatives are expected to generate $150 ? 200 million in
revenue in 2011.

    Comparisons of revenue-related statistics are as follows:

                                   Increase(Decrease)
                                    2Q11 versus 2Q10
                             -------------------------------
                             Change  Unit
Passenger Revenue   2Q11 ($M)  YOY   Revenue  Yield  Capacity
                   -----------------------------------------
Domestic             $3,475    12%    12%      12%     (0.2%)
Atlantic              1,570    16%     7%      10%      7.6%
Pacific                 722    14%     6%      11%      7.8%
Latin America           440    18%    14%      16%      3.7%
                   -------
Total mainline        6,207    13%    10%      12%      3.1%
Regional              1,684    10%    12%      12%     (1.7%)
                   -------
Consolidated          7,891    13%    10%      12%      2.5%

"A strong demand environment, combined with our corporate revenue
share gains and great work by our entire team, resulted in top
line growth of 12% and produced a unit revenue premium to the
industry," said Ed Bastian, Delta's president.  "Right-sizing our
capacity, coupled with pricing initiatives and revenues from
new products and services, position us well to continue to
generate solid unit revenue improvements for the September
quarter."

                         Cost Performance

In the June 2011 quarter, Delta's operating expense increased
$1.4 billion year over year.  More than $1 billion of this
increase was attributable to the 39% increase in fuel prices,
with the remainder of the cost increase primarily driven by
maintenance volumes and higher revenue-related expenses.

Consolidated unit cost (CASM(2)), excluding fuel expense, profit
sharing and special items, was 4.8% higher in the June 2011
quarter on a year-over-year basis.  Consolidated CASM increased
16% due to higher fuel prices.

"We have seen unit cost growth from not only high fuel prices,
but also maintenance volumes and revenue-related expenses," said
Hank Halter, Delta's chief financial officer.  "We are moving
aggressively to stem this cost growth with a target of bringing
our non-fuel unit costs to 2010 levels by the end of the year."

                  Fuel Price and Related Hedges

Delta's average fuel price(3) of $3.22 per gallon for the June
quarter was a $0.90, or 39%, increase over the prior year.  The
June quarter 2011 price included $118 million in gains, net of
option premiums, from its fuel hedging program.  At July 22,
2011, Delta's fuel hedge portfolio for the remainder of 2011 was
worth $225 million, net of option premiums, and the table below
represents fuel hedges Delta had in place on that date:

                               3Q11    4Q11
                               ------------
WTI - Crude                       0%      1%
Heating Oil                      33%     34%
Brent - Crude                    11%     14%
Jet Fuel                          1%      6%
                               ------------
Total                            45%     55%

Projected fuel price           $3.20   $3.31

                        Liquidity Position

As of June 30, 2011, Delta had $5.6 billion in unrestricted
liquidity, including $3.8 billion in cash and short-term
investments and $1.8 billion in undrawn revolving credit
facilities.

Operating cash flow during the June 2011 quarter was $1 billion,
driven by the company's profitability and advance ticket sales.
Free cash flow was $700 million.

Capital expenditures during the quarter were $300 million,
including $205 million in aircraft, parts and modifications.  To
date, Delta has modified 40 aircraft with full flat-bed seats.
The airline's entire widebody international fleet will have full
flat-bed seats in BusinessElite by 2013.  These expenditures are
part of Delta's three-year, $2 billion investment in improved
products, services and facilities.

For the full year 2011, the company expects its capital
expenditures will be $1.2 billion.  The company remains committed
to keeping its annual capital expenditures at $1.2 - $1.4
billion.

During the June quarter, Delta refinanced $2.6 billion of
corporate credit facilities. The transaction, with an effective
annual rate of 3.67%, increased the company's revolving credit
availability by $200 million and reduced its term loan borrowing
by $200 million.  This reduction in term loan borrowing, combined
with normal amortization payments, resulted in net debt payments
of $510 million for the quarter.

At June 30, Delta's adjusted net debt was $13.8 billion, a $700
million reduction from March 31, 2011.  The company has now
completed $3.2 billion of its $7 billion debt reduction target.

"With strong cash generation despite fuel price pressures, we are
making solid progress on our debt reduction goals," Halter added.
"In 18 months, we have reduced our net debt by over $3 billion,
while still making significant investments in our product, fleet
and facilities."

                      Company Highlights

Delta has a strong commitment to its employees, customers and the
communities it serves.  Key accomplishments in the June quarter
include:

    * Delivering significant improvements in operational
      performance, including an on-time arrival rate of 80.7%
      that was among the best in the industry.  Delta employees
      received $9 million in Shared Rewards payments to
      recognize their work in achieving these operational
      improvements;

    * Receiving the Million Work Hours Award from the U.S.
      National Safety Council, recognizing employees in
      Reservation Sales and Information Technology for their
      safety excellence in achieving more than 1 million injury-
      free work hours in 2010;

    * Improving products and facilities for Delta's customers,
      including launching the company's new premium
      international economy seating, Economy Comfort; beginning
      construction on the company's new international facility
      at New York-JFK's Terminal 4, which is set to open in the
      spring of 2013; and updating apps for iPhone, Blackberry
      and Android that allow travelers to download mobile
      boarding passes, check flight status, and search flight
      schedules;

    * Positioning the company as the airline of choice in New
      York with preliminary DOT approval to exchange slots and
      airport facilities at New York's LaGuardia and
      Washington's Reagan National airports with US Airways.
      Under the agreement, Delta will acquire 132 slot pairs at
      LaGuardia, which will allow Delta to double its available
      destinations, offering customers more frequent and
      convenient service at New York's preferred airport for
      business travel;

    * Expanding Delta's global reach to give passengers more
      options through new service to key international business
      destinations such as London-Heathrow, Beijing, Shanghai,
      and Tokyo-Haneda; improving SkyTeam's leading alliance
      position in China with the inclusion of the alliance's
      newest partner, China Eastern; and obtaining anti-trust
      approval of the industry's first US-Australia joint
      venture between Delta and Virgin Australia;

    * Being chosen by the readers of Executive Travel magazine
      as the leading U.S. carrier in six categories for the
      publication's 2011 Leading Edge awards, including Best
      First-Class Service; Best Business-Class Service; Best
      Airport Lounge; Best Flight Experience to Mexico; Best
      Flight Experience to Central/South America; and Best
      Private Jet Service (for Delta Private Jets);

    * Awarding more than $350,000 in scholarships to 330 Delta
      employees and their families through the Delta Scholarship
      Fund; and

    * Teaming with Habitat for Humanity and SkyTeam partners
      China Southern and China Eastern to help build five houses
      in Pinghu, China. This year's effort was Delta's seventh
      international build with Habitat for Humanity.

                          Special Items

Delta recorded special items totaling $168 million in the June
2011 quarter, including:

    * $80 million in severance and related costs associated with
      the voluntary exit programs the company offered as part of
      its initiatives to adapt the airline to higher fuel
      prices;

    * A $64 million charge for facilities consolidation and
      fleet initiatives;

    * A $13 million charge for debt extinguishment associated
      with the company's debt reduction initiatives; and

    * $11 million in mark-to-market adjustments for fuel hedges.

Delta recorded $82 million in special items in the June 2010
quarter, including $46 million in merger-related expenses and $36
million in asset impairment charges.

                 September 2011 Quarter Guidance

Delta's projections for the September 2011 quarter are:

                                           3Q 2011 Forecast
                                             ----------------
Fuel price, including taxes and hedges           $3.20
Operating margin                                 7 - 9%
Capital expenditures                          $250 million
Total liquidity at end of period              $5.1 billion

                                           3Q 2011 Forecast
                                        (compared to 3Q 2010)
                                        ---------------------
Consolidated unit costs - excluding
fuel expense                                    Up 2 - 4%

System capacity                                    Flat
    Domestic                                  Down 1 - 3%
    International                               Up 2 - 4%

Mainline capacity                                  Flat
    Domestic                                  Down 1 - 3%
    International                               Up 2 - 4%

                         Other Matters

Included with this press release are Delta's unaudited
Consolidated Statements of Operations for the three and six
months ended June 30, 2011 and 2010; a statistical summary for
those periods; selected balance sheet data as of June 30, 2011
and Dec. 31, 2010; and a reconciliation of certain non-GAAP
financial measures.

Delta Air Lines filed with the U.S. Securities and Exchange
Commission a Form 10-Q dated July 27, 2011, detailing its
financial disclosures for the second quarter ended June 30, 2011.
A copy of the Form 10-Q is available for free at:

              http://researcharchives.com/t/s?76a1

                    DELTA AIR LINES, INC.
             Unaudited Consolidated Balance Sheet
                      As of June 30, 2011

                            ASSETS

Current Assets:
Cash and cash equivalents                        $2,855,000,000
Short-term investments                              967,000,000
Restricted cash, cash equivalents
& short-term investments                           432,000,000
Accounts receivable, net                          1,885,000,000
Expendable parts & supplies inventories, net        403,000,000
Deferred income taxes, net                          342,000,000
Prepaid expenses and other                        1,179,000,000
                                              -----------------
Total Current Assets                               8,063,000,000

Property and Equipment, Net                       20,315,000,000

Other Assets
Goodwill                                          9,794,000,000
Identifiable intangibles, net                     4,714,000,000
Other noncurrent assets                             992,000,000
                                              -----------------
Total Other Assets                                15,500,000,000
                                              -----------------
Total Assets                                     $43,878,000,000
                                              =================

              LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Current maturities of long-term debt             $1,635,000,000
Air traffic liability                             5,001,000,000
Accounts payable                                  1,900,000,000
Frequent flyer deferred revenue                   1,687,000,000
Accrued salaries and related benefits             1,086,000,000
Taxes payable                                       766,000,000
Other accrued liabilities                           727,000,000
                                              -----------------
Total Current Liabilities                         12,802,000,000

Noncurrent Liabilities:
Long-term debt and capital leases                13,026,000,000
Pension, postretirement & related benefits       11,307,000,000
Frequent flyer deferred revenue                   2,662,000,000
Deferred income taxes, net                        1,913,000,000
Other noncurrent liabilities                      1,383,000,000
                                              -----------------
Total noncurrent liabilities                      30,291,000,000

Commitments and Contingencies
Stockholders' Equity:
Common stock:
Common stock at $0.00001 par value,
   1,500,000,000 shares authorized,
   801,701,956 shares issued June 30, 2010                    -
Additional paid-in capital                      13,964,000,000
Accumulated deficit                             (9,372,000,000)
Accumulated other comprehensive loss            (3,593,000,000)
Treasury stock, at cost, 12,852,539 shares
  at June 30, 2010                                 (214,000,000)
                                              -----------------
Total Stockholders' Equity                           785,000,000
                                              -----------------
Total Liabilities and Stockholders' Equity       $43,878,000,000
                                              =================


                     DELTA AIR LINES, INC.
         Unaudited Consolidated Statement of Operations
               Three Months Ended June 30, 2011

Operating Revenue:
  Passenger:
   Mainline                                      $6,207,000,000
   Regional carriers                              1,684,000,000
                                              -----------------
  Total passenger revenue                         7,891,000,000

  Cargo                                             264,000,000
  Other, net                                        998,000,000
                                              -----------------
Total operating revenue                          9,153,000,000

Operating Expense:
  Aircraft fuel and related taxes                 2,663,000,000
  Salaries and related costs                      1,739,000,000
  Contract carrier arrangements                   1,410,000,000
  Aircraft maintenance mat./outside repairs         485,000,000
  Contracted services                               415,000,000
  Passenger commissions/other selling expenses      440,000,000
  Depreciation and amortization                     381,000,000
  Landing fees and other rents                      320,000,000
  Passenger service                                 181,000,000
  Aircraft rent                                      74,000,000
  Profit sharing                                      8,000,000
  Restructuring and merger-related items            144,000,000
  Other                                             412,000,000
                                              -----------------
  Total operating expense                         8,672,000,000
                                              -----------------
Operating Income (Loss)                              481,000,000

Other (Expense) Income:
  Interest expense                                 (233,000,000)
  Amortization of debt discount, net                (46,000,000)
  Loss on extinguishment of debt                    (13,000,000)
  Miscellaneous, net                                  9,000,000
                                              -----------------
  Total other expense, net                         (286,000,000)
                                              -----------------
Income (Loss) Before Income Taxes                    195,000,000

Income Tax (Provision) Benefit                         3,000,000
                                              -----------------
Net Income (Loss)                                   $198,000,000
                                              =================


                     DELTA AIR LINES, INC.
        Unaudited Consolidated Statement of Cash Flow
                Six Months Ended June 30, 2010

Net Cash Provided by Operating Activities         $1,774,000,000

Cash Flows from Investing Activities:
Property and equipment additions:
   Flight equipment                                (481,000,000)
   Ground property and equipment                   (172,000,000)
Purchase of short-term investments                (479,000,000)
Redemption of short-term investments               250,000,000
Other investments                                            -
Other, net                                           8,000,000
                                              -----------------
Net Cash used in Investing Activities             (874,000,000)

Cash Flows from Financing Activities:
Payments on long-term debt                      (2,394,000,000)
Proceeds from long-term obligations              1,599,000,000
Debt issuance costs                                (58,000,000)
Restricted cash and cash equivalents               (84,000,000)
Other, net                                                   -
                                              -----------------
Net Cash used in Financing Activities             (937,000,000)

Net Increase (Decrease) in Cash & Equivalents        (37,000,000)

Cash & cash equivalents at beginning
  of period                                       2,892,000,000
                                              -----------------
Cash & cash equivalents at end of period        $2,855,000,000
                                              =================

                   Delta to Deepen Seat Cuts
                   Amidst Rising Fuel Prices

Delta Air Lines, Inc. is planning to further cut seating capacity
by as much as five percent after high fuel and maintenance costs
contributed to low second quarter profits, Bloomberg News
reported on July 27, 2011.

The Company's fuel costs increased 39 percent to about $1
billion.

                       About Delta Air Lines

Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- provides scheduled
air transportation for passengers and cargo throughout the United
States, and around the world.  The Company's route network is
centered on the hub system it operate at airports in Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK,
Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-
Narita. The hub operations include flights, which gather and
distribute traffic from markets in the geographic region
surrounding the hub to domestic and international cities and to
other hubs. The network is supported by a fleet of aircraft, which
is varied in terms of size and capabilities.  On Dec. 31,
2009, the Company's wholly owned subsidiary Northwest Airlines,
Inc., merged with and into Delta.  The wholly owned subsidiary of
the Company is Northwest Airlines Corporation.

Northwest and 12 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan.  That amended plan took effect May 31, 2007.

Delta and 18 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan.  That plan
became effective on April 30, 2007.

(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).

                        *     *     *

Delta Air Lines and Northwest Airlines carry a 'B/Stable/--'
corporate ratings from Standard & Poor's.  They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.

S&P said at the end of February 2011 that its ratings on Atlanta,
Ga.-based Delta Air Lines Inc. reflect its highly leveraged
financial profile, with significant intermediate-term debt
maturities, and the risks associated with participation in the
price-competitive, cyclical, and capital-intensive airline
industry.  The ratings also incorporate the reduced debt load and
operating costs Delta achieved while in Chapter 11 in 2005-2007,
and its enhanced competitive position and synergistic
opportunities associated with its 2008 merger with Northwest
Airlines Corp. (parent of Northwest Airlines Inc.), with the two
airlines fully integrated in December 2009.  S&P characterize
Delta's business risk profile as weak and its financial risk
profile as highly leveraged.


DELTA AIR: Reports July 2011 Traffic Results
--------------------------------------------
Delta Air Lines reported traffic results for July 2011.  System
traffic in July 2011 was flat compared to July 2010 on a 1.0
percent increase in capacity.  System load factor of 87.6 percent
was 0.7 points lower than the prior year.

International traffic increased 1.5 percent year over year on a
3.3 percent increase in capacity, and load factor decreased 1.5
points to 87.1 percent.  Domestic traffic decreased 0.9 percent
year over year on a 0.8 percent decrease in capacity.  Domestic
load factor decreased 0.2 points to 87.9 percent.

                        Delta Air Lines
                  Monthly Traffic Results (a)

                            Jul-11        Jul-10   Change
RPMs (000):
Domestic                 11,249,421    11,352,183     (0.9%)
Delta Mainline           8,924,624     8,981,126     (0.6%)
Regional                 2,324,797     2,371,057     (2.0%)
International             8,392,446     8,269,253      1.5%
Latin America            1,375,111     1,401,075     (1.9%)
   Delta Mainline        1,351,498     1,363,845     (0.9%)
   Regional                 23,613        37,230    (36.6%)
Atlantic                 4,676,995     4,730,274     (1.1%)
Pacific                  2,340,340     2,137,904      9.5%
Total System             19,641,867    19,621,436      0.1%

ASMs (000):
Domestic                 12,792,514    12,890,153     (0.8%)
Delta Mainline          10,001,906    10,045,103     (0.4%)
Regional                 2,790,608     2,845,050     (1.9%)
International             9,640,751     9,328,572      3.3%
Latin America            1,535,866     1,578,771     (2.7%)
   Delta Mainline        1,505,156     1,532,007     (1.8%)
   Regional                 30,710        46,764    (34.3%)
Atlantic                 5,279,380     5,311,578     (0.6%)
Pacific                  2,825,505     2,438,223     15.9%
Total System             22,433,265    22,218,725      1.0%

Load Factor:
Domestic                      87.9%         88.1%     (0.2) pts
Delta Mainline               89.2%         89.4%     (0.2) pts
Regional                     83.3%         83.3%     (0.0) pts
International                 87.1%         88.6%     (1.5) pts
Latin America                89.5%         88.7%      0.8 pts
   Delta Mainline            89.8%         89.0%      0.8 pts
   Regional                  76.9%         79.6%     (2.7) pts
Atlantic                     88.6%         89.1%     (0.5) pts
Pacific                      82.8%         87.7%     (4.9) pts
Total System                  87.6%         88.3%     (0.7) pts

Mainline Completion           99.1%         97.7%      1.4 pts
Factor

Passengers Boarded       16,018,038    15,765,141      1.6%

Cargo Ton Miles (000)       203,275       203,092      0.1%

                        Delta Air Lines
                Year To Date Traffic Results (a)

                            Jul-11        Jul-10   Change
RPMs (000):
Domestic                 67,170,086    67,610,953     (0.7%)
Delta Mainline          53,017,298    53,070,350     (0.1%)
Regional                14,152,788    14,540,603     (2.7%)
International            45,767,019    44,271,652      3.4%
Latin America            8,239,158     8,569,882     (3.9%)
   Delta Mainline        8,114,326     8,369,663     (3.1%)
   Regional                124,832       200,219    (37.7%)
Atlantic                24,204,106    23,256,910      4.1%
Pacific                 13,323,755    12,444,860      7.1%
Total System            112,937,105   111,882,605      0.9%

ASMs (000):
Domestic                 81,089,299    80,823,809      0.3%
Delta Mainline          62,949,676    62,452,097      0.8%
Regional                18,139,623    18,371,712     (1.3%)
International            57,703,512    53,394,201      8.1%
Latin America           10,489,417    10,731,653     (2.3%)
   Delta Mainline       10,308,545    10,464,695     (1.5%)
   Regional                180,872       266,958    (32.2%)
Atlantic                30,588,379    28,052,097      9.0%
Pacific                 16,625,716    14,610,451     13.8%
Total System            138,792,811   134,218,010      3.4%

Load Factor:
Domestic                      82.8%         83.7%     (0.9) pts
Delta Mainline               84.2%         85.0%     (0.8) pts
Regional                     78.0%         79.1%     (1.1) pts
International                 79.3%         82.9%     (3.6) pts
Latin America                78.5%         79.9%     (1.4) pts
   Delta Mainline            78.7%         80.0%     (1.3) pts
   Regional                  69.0%         75.0%     (6.0) pts
Atlantic                     79.1%         82.9%     (3.8) pts
Pacific                      80.1%         85.2%     (5.1) pts
Total System                  81.4%         83.4%     (2.0) pts

Passengers Boarded       95,702,103    94,518,767      1.3%

Cargo Ton Miles (000)     1,382,745     1,275,558      8.4%

                       About Delta Air Lines

Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- provides scheduled
air transportation for passengers and cargo throughout the United
States, and around the world.  The Company's route network is
centered on the hub system it operate at airports in Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK,
Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-
Narita. The hub operations include flights, which gather and
distribute traffic from markets in the geographic region
surrounding the hub to domestic and international cities and to
other hubs. The network is supported by a fleet of aircraft, which
is varied in terms of size and capabilities.  On Dec. 31,
2009, the Company's wholly owned subsidiary Northwest Airlines,
Inc., merged with and into Delta.  The wholly owned subsidiary of
the Company is Northwest Airlines Corporation.

Northwest and 12 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan.  That amended plan took effect May 31, 2007.

Delta and 18 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan.  That plan
became effective on April 30, 2007.

(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).

                        *     *     *

Delta Air Lines and Northwest Airlines carry a 'B/Stable/--'
corporate ratings from Standard & Poor's.  They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.

S&P said at the end of February 2011 that its ratings on Atlanta,
Ga.-based Delta Air Lines Inc. reflect its highly leveraged
financial profile, with significant intermediate-term debt
maturities, and the risks associated with participation in the
price-competitive, cyclical, and capital-intensive airline
industry.  The ratings also incorporate the reduced debt load and
operating costs Delta achieved while in Chapter 11 in 2005-2007,
and its enhanced competitive position and synergistic
opportunities associated with its 2008 merger with Northwest
Airlines Corp. (parent of Northwest Airlines Inc.), with the two
airlines fully integrated in December 2009.  S&P characterize
Delta's business risk profile as weak and its financial risk
profile as highly leveraged.


DELTA AIR: Starts Codeshare Flights With Aerolineas
---------------------------------------------------
Delta Air Lines (NYSE: DAL) and Aerolineas Argentinas
announced a codesharing agreement for flights connecting Miami
and Atlanta to Buenos Aires as well as service to 14 U.S.
destinations, eight domestic destinations in Argentina, three
flights to Canada and flights to Brazil, Bolivia, Chile, Paraguay
and Uruguay.  Codesharing on the flights will start in the fourth
quarter of 2011.

The airlines also announced the future activation of new
reciprocal benefits for their frequent fliers that include accrual
and redemption of miles, scheduled to start in 2012.  Aerolineas
Argentinas will also join the SkyTeam global alliance in 2012,
which will allow the carriers to provide additional customer
benefits.

"Since 1997, Delta's presence in South America has grown
significantly.  Today we offer 95 weekly nonstop flights to eight
countries in South America, and a total of 1,083 weekly flights
to Latin America and the Caribbean.  This new agreement with
Aerolineas Argentinas is key to our strategy, and will help us
solidify and expand our network to, from and within Argentina and
will allow us to provide service to all countries in the Southern
Cone," said Delta President Ed Bastian.  "A significant step for
Aerolineas Argentinas, this codeshare agreement validates the
bold and aggressive steps they are taking to offer a world-class
network prior to joining SkyTeam in 2012."

"This new agreement offers Aerolineas Argentinas a great
opportunity to expand its network in North America, and also will
offer Delta customers new destinations throughout Argentina and
South America," said Mariano Recalde, president of Aerolineas
Argentinas. "The mutual benefits for our passengers are clear,
now Aerolineas' customers will be able to access over 300
destinations around the world."

Codeshare flights allow passengers to buy tickets on one or more
carriers from a single point of sale, offering greater
access to another airline's network.

Delta and Aerolineas Argentinas Codeshare Flights

When implemented in the fourth quarter of 2011, the
agreement will connect Delta's daily service from its hub in
Atlanta to the Aerolineas Argentinas hub at Buenos Aires and
beyond to cities in Argentina, Brazil, Bolivia, Chile, Paraguay
and Uruguay.  It also includes flights connecting Aerolineas
Argentinas service from Buenos Aires to Miami with flights to 15
cities in the U.S. and Canada on Delta's network.

Delta will sell connecting service on Aerolineas Argentinas
flights to eight Argentine destinations: Calafate, Cordoba,
Iguazu, Mendoza, Rio Grande, Rosario, San Carlos de Bariloche,
and Ushuaia, the capital city of Tierra del Fuego Province.
Additional destinations in South America include: Rio de Janeiro
and Sao Paulo, Brazil; Santa Cruz, Bolivia; Santiago de Chile,
Chile; Asuncion, Paraguay; and Montevideo, Uruguay.

Aerolineas Argentinas will sell service to 14 additional
U.S. destinations and three Canadian destinations.  The U.S.
domestic destinations are: Boston, Chicago, Dallas, Denver,
Houston, Los Angeles, New Orleans, New York City, Orlando,
Philadelphia, San Francisco, San Juan, Seattle and Washington,
D.C. Aerolineas Argentinas also will put its code on Delta
service to Montreal, Toronto and Vancouver in Canada.

Reciprocal Frequent Flier Benefits

In addition, Delta and Aerolineas Argentinas will introduce
reciprocal accrual and redemption benefits for frequent fliers in
2012. SkyMiles and Aerolineas Plus members will be able to accrue
and redeem frequent flier miles on all Delta and Aerolineas
Argentinas flights.

The airlines already offer reciprocal access to their
lounges: Delta's award-winning Delta Sky Club lounges in 35
airports worldwide and Aerolineas Argentinas' Salon Condor at the
Ministro Pistarini International Airport in Buenos Aires.

                  About Aerolineas Argentinas

Aerolineas Argentinas, the Republic of Argentina's national
airline, is one of South America's leading companies. Aerolineas
Argentinas flies to 19 international destinations in America,
Europe and the South Pacific.  Along with Austral Lineas Aereas,
Aerolineas operates flights to 33 destinations in Argentina, with
flights to more cities in the Argentinean territory than any
other airline.  Since March 2010, it provides dynamic links
between Argentina and the region through its new hub in
Aeroparque.  Aerolineas is implementing an ambitious fleet
renewal program, which began in 2009 with the addition of 12
Boeing Next-Generation 737-700s and the acquisition of 20 Embraer
190s.  In November 2010, the company began the process of joining
SkyTeam, one of the most prestigious airline alliances worldwide.
For more information about the company, visit www.aerolineas.com

                       About Delta Air Lines

Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- provides scheduled
air transportation for passengers and cargo throughout the United
States, and around the world.  The Company's route network is
centered on the hub system it operate at airports in Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK,
Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-
Narita. The hub operations include flights, which gather and
distribute traffic from markets in the geographic region
surrounding the hub to domestic and international cities and to
other hubs. The network is supported by a fleet of aircraft, which
is varied in terms of size and capabilities.  On Dec. 31,
2009, the Company's wholly owned subsidiary Northwest Airlines,
Inc., merged with and into Delta.  The wholly owned subsidiary of
the Company is Northwest Airlines Corporation.

Northwest and 12 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan.  That amended plan took effect May 31, 2007.

Delta and 18 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan.  That plan
became effective on April 30, 2007.

(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).

                        *     *     *

Delta Air Lines and Northwest Airlines carry a 'B/Stable/--'
corporate ratings from Standard & Poor's.  They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.

S&P said at the end of February 2011 that its ratings on Atlanta,
Ga.-based Delta Air Lines Inc. reflect its highly leveraged
financial profile, with significant intermediate-term debt
maturities, and the risks associated with participation in the
price-competitive, cyclical, and capital-intensive airline
industry.  The ratings also incorporate the reduced debt load and
operating costs Delta achieved while in Chapter 11 in 2005-2007,
and its enhanced competitive position and synergistic
opportunities associated with its 2008 merger with Northwest
Airlines Corp. (parent of Northwest Airlines Inc.), with the two
airlines fully integrated in December 2009.  S&P characterize
Delta's business risk profile as weak and its financial risk
profile as highly leveraged.


DELTA PETROLEUM: Reports $534,000 Net Income in June 30 Quarter
---------------------------------------------------------------
Delta Petroleum Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on form 10-Q reporting
net income of $534,000 on $16.88 million of total revenue for the
three months ended June 30, 2011, compared with a net loss of
$152.48 million on $14.71 million of total revenue for the same
period during the prior year.

The Company also reported a net loss of $29.73 million on $34.59
million of total revenue for the six months ended June 30, 2011,
compared with a net loss of $168.47 million on $33.94 million of
total revenue for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $975.84
million in total assets, $489.14 million in total liabilities,
current and long-term, and $486.70 million in total equity.

Carl Lakey, Delta's CEO and President stated, "We are pleased to
provide our shareholders with another solid operating quarter
coupled with the accomplishment of some very important strategic
steps.  We sold our remaining non-core assets, which reduced our
leverage and provided sufficient liquidity to continue our deep
shale evaluation and development in the Vega Area.  While the
strategic alternatives process, the 2C well results, and the
Netherland Sewell report were all announced subsequent to the end
of the quarter, much of the efforts that went into those steps
occurred in the second quarter.  The 2B and 2C well results and
Netherland Sewell's report are very important contributions that
support Delta's intrinsic value and aid our strategic alternatives
process."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/oXa3QH

                     About Delta Petroleum Corp

Delta Petroleum Corporation -- http://www.deltapetro.com/-- is an
oil and gas exploration and development company based in Denver,
Colorado.  The Company's core area of operation is in the Rocky
Mountain region, where the majority of its proved reserves,
production and long-term growth prospects are located.  Its common
stock is listed on the NASDAQ Capital Market System under the
symbol "DPTR."

The Company reported a net loss of $30.26 million on
$23.05 million of total revenue for the three months ended
March 31, 2011, compared with a net loss of $15.99 million on
$29.17 million of total revenue for the same period during the
prior year.

As reported by the TCR on March 18, 2011, KPMG LLP, in Denver,
Colorado, noted that due to continued losses and limited borrowing
capacity the Company is evaluating sources of capital to fund the
Company's near term debt obligations.  "There can be no assurances
that actions undertaken will be sufficient to repay obligations
under the credit facility when due, which raises substantial doubt
about the Company's ability to continue as a going concern."


DELTATHREE INC: Incurs $1.6 Million Net Loss in Second Quarter
--------------------------------------------------------------
deltathree, Inc., reported a net loss of $1.62 million on
$2.20 million of revenue for the three months ended June 30, 2011,
compared with a net loss of $813,000 on $3.39 million of revenue
for the same period a year ago.

The Company also reported a net loss of $1.59 million on
$5.99 million of revenue for the six months ended June 30, 2011,
compared with a net loss of $1.28 million on $6.46 million of
revenue for the same period during the prior year.

The Company's balance sheet at June 30, 2011, showed $1.66 million
in total assets, $5.07 million in total liabilities, and a
$3.41 million total stockholders' deficiency.

Mr. Effi Baruch, chief executive officer, president and senior
vice president of Operations and Technology of deltathree, stated,
"While deltathree continues to make good progress with the rollout
of our international mobile VoIP offerings, with better than
expected customer ramps and usage, our second quarter financial
results were negatively impacted by a material drop in activity
from our VoIP reseller customers based in the Middle East, caused
in large part by the recent geopolitical uncertainty in the
region.  If we exclude the contribution from reseller client
activity in the Middle East from the results of this quarter and
the corresponding period in 2010, deltathree saw year-over-year
revenue growth across its core VoIP service offerings, with
particular strength in our Mobile offering with ACN under the ACN
Mobile World brand as well as other international service provider
customers."

A full-text copy of the press release announcing the financial
results is available for free at http://is.gd/hmGKcn

                         About deltathree

Based in New York, deltathree, Inc. (OTC QB: DDDC) --
http://www.deltathree.com/-- is a global provider of video and
voice over Internet Protocol (VoIP) telephony services, products,
hosted solutions and infrastructures for service providers,
resellers and direct consumers.

As reported in the TCR on March 23, 2011, Brightman Almagor Zohar
& Co., in Tel Aviv, Israel, expressed substantial doubt about
deltathree, Inc.'s ability  to continue as a going concern,
following the Company's 2010 results.  The independent auditors
noted that of the Company's recurring losses from operations and
deficiency in stockholders' equity.


DONALD HARTMANN: Victim's Amended Suit Survives Motion to Dismiss
-----------------------------------------------------------------
Bankruptcy Judge Michael E. Romero denied Donald Leonhard
Hartmann's motion to dismiss an amended complaint filed by Sally
D. Frederick.

Ms. Frederick filed her Complaint objecting to dischargeability on
Nov. 22, 2010.  She alleges she made investments through Mr.
Hartmann, who was at the time a licensed securities broker, and
that Mr. Hartmann induced her to invest in MKA Real Estate
Qualified Fund by misrepresenting the stability of the Fund, Ms.
Frederick's ability to withdraw money from her investment, Ms.
Frederick's qualifications to invest, and Mr. Hartmann's
investigation of the Fund.  According to Ms. Frederick, at Mr.
Hartmann's behest, she sold rental real estate and invested all
the $156,000 in proceeds in the Fund.  She asserts Mr. Hartmann
falsified paperwork indicating she was eligible to invest in the
Fund, when in fact she was not a qualified investor.  Later, Mr.
Hartmann persuaded her to mortgage her residence and invest an
additional $196,000 in the Fund.  Ms. Frederick received limited
distributions, which later ceased.  In addition, she discovered
she could not withdraw her funds or redeem her investment.
Notwithstanding demands to Mr. Hartmann, he did not return Ms.
Frederick's investment, nor did she receive any further
distributions.  As a result, in late 2009 Ms. Frederick sought
arbitration through the Financial Industry Regulatory Authority,
and was awarded approximately $240,000 from that proceeding.  The
award remains unsatisfied.

As reported by the Troubled Company Reporter on May 31, 2011, the
Court granted Mr. Hartmann's previous motion to the extent it
sought dismissal of Ms. Frederick's second claim for relief under
11 U.S.C. Sec. 523(a)(19), and to the extent it sought dismissal
of the embezzlement components of her first claim for relief under
Sec. 523(a)(4).  The Court denied Mr. Hartmann's previous motion
to the extent it sought dismissal of the fraud or defalcation and
larceny components of Ms. Frederick's first claim for relief under
Sec. 523(a)(4), her third claim for relief under Sec.
523(a)(2)(A), and her fourth claim for relief under Sec.
523(a)(6).  The Court then ordered Ms. Frederick to file an
amended complaint which properly asserted the larceny claim under
Sec. 523(a)(4) and the willful and malicious injury elements of
the claim under Sec. 523(a)(6).

Ms. Frederick filed her Amended Complaint Objecting to
Dischargeability on June 22, 2011.  Mr. Hartmann's renewed Motion
states the Amended Complaint does not properly state a claim for
larceny or for willful and malicious injury, and seeks dismissal
of the Sec. 523(a)(4) claim to the extent it alleges larceny and
of the Sec. 523(a)(6) claim in its entirety.

Judge Romero said the Amended Complaint contains sufficient
allegations that Mr. Hartmann committed intentional acts which he
knew were substantially certain to cause Ms. Frederick the
specific injury of losing her money.

The case is Sally D. Frederick, v. Donald Leonhard Hartmann, Adv.
Proc. No. 10-1919 (Bankr. D. Colo.).  A copy of Judge Romero's
Aug. 4, 2011 Order is available at http://is.gd/hfYgQnfrom
Leagle.com.

Donald Leonhard Hartmann is a Chapter 11 Debtor (Bankr. D. Colo.
Case No. 10-31429).


DSI HOLDINGS: Has Final OK to Borrow up to $21.7MM from Ableco
--------------------------------------------------------------
On July 21, 2011, the U.S. Bankruptcy Court for the District of
Delaware entered a final order authorizing postpetition financing
and authorizing the use of cash collateral.

DSI Holdings, Inc., et al., are authorized to borrow, on a final
basis, up to $21.7 million from Ableco, L.L.C., as DIP Agent for
itself and the DIP Lenders in accordance with the DIP Credit
Agreement, secured by security interests in and liens upon all of
the Collateral, provided that disbursements are in accordance with
a budget, and any borrowings in excess of $15 million will be in
the sole and absolute discretion of the DIP Agent.

DSI Holdings, Inc., et al., also received authorization to use the
Collateral (including Cash Collateral), and to draw on the DIP
facility to make any disbursement as specifically provided in the
budget.

The DIP Lenders are granted, effective as of the Commencement
Date, first priority interest and liens, superior to all other
liens, claims or security interests that any creditor of the
Debtor's estates may have (but subject to the Carve Out Expenses
and the Permitted Priority Liens, as defined in the DIP Credit
Agreement), in the Collateral.

The DIP Lenders are also granted an allowed superpriority
administrative claims pursuant to Section 364(c)(1) of the
Bankruptcy Code, subject only to the Carve-Out Expenses.

Debtors are authorized to use cash collateral until the
termination of the DIP Lenders' commitment to lend under the DIP
Credit Agreement or the other Loan Documents, subject to the
Senior Liens and the Junior Liens.

As adequate protection for the diminution in value of their
interests in the Pre-Petition Collateral (including cash
collateral), the First Lien Lenders (excluding the Credit Support
Provider, are granted senior replacement liens upon all
collateral.  The senior replacement liens will be junior and
subordinate only to the DIP Liens, the Permitted Priority Liens,
the Carve Out Expenses and any other liens permitted to be senior
to the Senior Liens by the First Lien Loan Documents.

To cover any shortfall, the First Lien Lenders (excluding the
Credit Support Provider) is also granted an allowed superpriority
administrative expense claim., junior only to the right of payment
of the DIP Obligations, the superpriority claim in favor of the
DIP Lenders, and the Carve Out Expenses.

The DIP Facility matures on the earlier of six months from the
date of the credit agreement; the effective date of a plan of
reorganization in the Debtors' case; or the date of sale or
liquidation of substantially all of the equity interests or assets
of the Debtors.

An event of default under the DIP Facility will occur upon the
Debtor's failure to achieve timeline milestones in connection with
the sale of substantially all of their assets and equity
interests, including:

     Entry of Sale Procedures Order : no later than July 25, 2011
     Auction Sale                   : no later than Aug. 31, 2011
     Sale Order                     : no later than Oct. 4, 2011
     Sale Closing                   : no later than 21 days after
                                      entry of Sale Order

A copy of the final order is available at:

      http://bankrupt.com/misc/dsi.finaldipfinancingorder.pdf

                         About Deb Shops

Deb Shops Inc., is a closely held women's-clothing retailer based
in Philadelphia.  Deb Shops sells junior and large-size clothing
for girls and women ages 13 to 25 through more than 320 U.S.
stores and through debshops.com.  It was bought out by the New
York investment firm Lee Equity Partners in October 2007.

DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought
bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on
June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363.  As of
April 30, 2011, the Debtors' unaudited financial statements
reflected assets totaling $124.4 million and liabilities totaling
$270.1 million.

Lawyers at Weil Gotshal & Manges LLP and Richards, Layton & Finger
P.A. serve as bankruptcy counsel.  Rothschild Inc. serves as the
Debtors' investment banker and financial advisors.  Kurtzman
Carson Consultants, LLC, serves as claims agent.  Sitrick &
Company serves as public relations consultants.

Ableco, the DIP Agent is represented by Michael L. Tuchin, Esq.,
and David A. Fidler, Esq., at Klee Tuchin Bogdanoff & Stern LLP.
Conway Del Genio serves as financial advisors to the First Lien
Lenders.  Schulte Roth serves as corporate and tax advisors to the
First Lien Lenders.  Another lender, Lee DSI Holdings, is
represented by Jennifer Rodburg, Esq., at Fried Frank Harris
Shriver & Jacobson LLP.


DSI HOLDINGS: Can Employ Weil Gotshal as Counsel
------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
approved DSI Holdings Inc. and its debtor affiliates' application
to employ Weil, Gotshal & Manges as their attorneys, nunc pro tunc
to the Petition Date.

The Court approved the Debtors' retention of Weil under a general
retainer in accordance with Weil's normal hourly rates and
disbursement policies.  Weil will not charge an hourly rate above
$1,000 per hour for any of its attorneys or personnel.

The Court is satisfied that based on representations made by
Michael F. Walsh, a member of the Weil, that the firm represents
no interest adverse to the Debtors or their estates and is a
"disinterested person" as that term is defined under Section
101(14) of the Bankruptcy Code, as modified by Section 1107(b).

                         About Deb Shops

Deb Shops Inc., is a closely held women's-clothing retailer based
in Philadelphia.  Deb Shops sells junior and large-size clothing
for girls and women ages 13 to 25 through more than 320 U.S.
stores and through debshops.com.  It was bought out by the New
York investment firm Lee Equity Partners in October 2007.

DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought
bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on
June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363.  As of
April 30, 2011, the Debtors' unaudited financial statements
reflected assets totaling $124.4 million and liabilities totaling
$270.1 million.

Lawyers at Weil Gotshal & Manges LLP and Richards, Layton & Finger
P.A. serve as bankruptcy counsel.  Rothschild Inc. serves as the
Debtors' investment banker and financial advisors.  Kurtzman
Carson Consultants, LLC, serves as claims agent.  Sitrick &
Company serves as public relations consultants.

Ableco, the DIP Agent is represented by Michael L. Tuchin, Esq.,
and David A. Fidler, Esq., at Klee Tuchin Bogdanoff & Stern LLP.
Conway Del Genio serves as financial advisors to the First Lien
Lenders.  Schulte Roth serves as corporate and tax advisors to the
First Lien Lenders.  Another lender, Lee DSI Holdings, is
represented by Jennifer Rodburg, Esq., at Fried Frank Harris
Shriver & Jacobson LLP.


DYNAVAX TECHNOLOGIES: Posts $10.6-Mil. Net Loss in 2nd Quarter
--------------------------------------------------------------
Dynavax Technologies Corporation filed its quarterly report on
Form 10-Q, reporting a net loss of $10.6 million on $7.3 million
of revenues for the three months ended June 30, 2011, compared
with a net loss of $28.0 million on $2.2 million of revenues for
the same period last year.

The Company reported a net loss of $29.1 million on $9.0 million
of revenues for the six months ended June 30, 2011, compared with
a net loss of $37.2 million on $10.5 million of revenues for the
same period of 2010.

The Company's balance sheet at June 30, 2011, showed $74.4 million
in total assets, $28.6 million in total liabilities, and
stockholders' equity of $45.8 million.

Ernst & Young LLP, in Palo Alto, California, expressed substantial
doubt about Dynavax Technologies' ability to continue as a going
concern, following the Company's 2010 results.  The independent
auditors noted that of the Company's recurring losses from
operations.

A complete text of the Form 10-Q is available for free at:

                       http://is.gd/668JFQ

Berkeley, Calif. Based Dynavax Technologies Corporation (NASDAQ:
DVAX) -- http://www.dynavax.com/-- is clinical-stage
biopharmaceutical company.  The Company discovers and develops
novel products to prevent and treat infectious and inflammatory
diseases.  The Company's lead product candidate is HEPLISAV, a
Phase 3 investigational adult hepatitis B vaccine designed to
provide rapid and superior protection with fewer doses than
current licensed vaccines.


DYNEGY HOLDINGS: Delaware Supreme Court Rejects PSEG Appeal
-----------------------------------------------------------
American Bankruptcy Institute reports that Delaware's Supreme
Court on Friday rejected Public Service Enterprise Group Inc.'s
last-ditch bid to hold up Dynegy Inc.'s $1.7 billion
restructuring, noting that the deal was done, the money had moved
and the fight was "moot."

                     $1.7-Bil. Restructuring

Vice Chancellor Donald Parsons of Delaware's Court of Chancery on
July 29 thumbed down the request of Public Service Enterprise
Group Inc. for an order to hold up Dynegy Inc.'s planned $1.7
billion restructuring.  The judge said PSEG, which leases plants
to Dynegy, failed to show it is likely to succeed on the merits of
claims that Dynegy's restructuring would run afoul of contract
protections.  Judge Parsons also found it unlikely Dynegy's
restructuring would later be found to be a fraud on creditors.

Earlier in July, Dynegy launched a $1.7 billion loan package tied
to a planned corporate restructuring.  The corporate-debt
restructuring will be managed by 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 new companies could be sold or pay dividends to
shareholders even if the holding company eventually defaults on
its $3 billion of bonds.

PSEG, which is owed $790 million by Dynegy in lease payments, sued
in Delaware Court of Chancery to block the reorganization on the
grounds that it "fraudulently transfers" assets away from the
parent holding company, which guarantees the leases.  LibertyView
Capital Management, which owns $30 million of Dynegy bonds, is
pursuing a similar action in New York.

                        About Dynegy Inc.

Through its subsidiaries, Houston, Texas-based Dynegy Inc.
(NYSE:DYN) -- http://www.dynegy.com/-- produces and sells
electric energy, capacity and ancillary services in key U.S.
markets.  The power generation portfolio consists of approximately
12,200 megawatts of baseload, intermediate and peaking power
plants fueled by a mix of natural gas, coal and fuel oil.

                         Failed Sale

The Troubled Company Reporter has chronicled Dynegy's attempts to
sell itself.  In August 2010, Dynegy struck a deal to be acquired
by an affiliate of The Blackstone Group at $4.50 a share or
roughly $4.7 billion.  That offer was raised to $5.00 a share in
November.  Through Carl Icahn and investment fund Seneca's
efforts, shareholders thumbed down both offers.

In December 2010, an affiliate of Icahn commenced a tender offer
to purchase all of the outstanding shares of Dynegy common stock
for $5.50 per share in cash, or roughly $665 million in the
aggregate.  In February 2011, Icahn Enterprises L.P. terminated
the proposed merger agreement with the Company after it failed to
garner the required number of shareholder votes.

Goldman, Sachs & Co. and Greenhill & Co., LLC, served as financial
advisors and Sullivan & Cromwell LLP served as legal counsel to
Dynegy on the sale efforts.

                      Bankruptcy Warning

Dynegy warned shareholders in March it might be forced into
bankruptcy if it is unable to renegotiate the terms of its
existing debt.

The Company's balance sheet at March 31, 2011, showed $9.82
billion in total assets, $7.15 billion in total liabilities and
$2.67 billion in total stockholders' equity.

Ernst & Young LLP, in Houston, said Dynegy projects that it is
likely that it will not be able to comply with certain debt
covenants throughout 2011.  "This condition and its impact on
Dynegy Inc.'s liquidity raises substantial doubt about Dynegy
Inc.'s ability to continue as a going concern."

                        *     *     *

In July 2011, Moody's downgraded Dynegy Holdings' probability of
default rating to 'Ca' from 'Caa3'.  "The downgrade of DHI's PDR
and senior unsecured notes to Ca reflects the increased likelihood
of a distressed debt exchange transaction occurring within the
next several months following announcement of a corporate
reorganization that seeks to modify asset ownership within DHI
through the formation of several wholly-owned subsidiaries", said
A.J. Sabatelle, Senior Vice President of Moody's. "Separate
financing arrangements being established at these subsidiaries
will have annual limits placed on the amount of cash flow that can
be paid to their indirect parent, which Moody's believes raises
default prospects for DHI's senior unsecured notes and the
company's lease", added Mr. Sabatelle.


DYNEGY POWER: Moody's Assigns B2 Rating to $1.1-Mil. Term Loan
-------------------------------------------------------------
Moody's Investors Service has assigned a final B2 rating to Dynegy
Power, LLC (GasCo) $1.1 billion senior secured term loan due 2016.
The rating outlook for GasCo is negative.

RATINGS RATIONALE

The B2, LGD1, 5% rating assigned to GasCo's senior secured term
loan reflects the secured position of this debt relative to Dynegy
Holdings, Inc.'s (DHI: Caa3 Corporate Family Rating / Ca
Probability of Default Rating) substantial unsecured debt, the
modest amount of secured debt in the existing capital structure
and the standalone credit quality of GasCo where Moody's expects a
high percentage of gross margin and cash flow to be derived from
various contractual arrangements currently in place with credit
worthy counterparties over the next several years. With the
corporate restructuring, GasCo owns 6,771 megawatts (MW) of DHI's
natural gas-fired generating plants, which collectively represent
eight plants in five markets. Lenders are secured by a collateral
package that includes the plant collateral, with operating company
leverage being modest, as debt / KW at closing equivalent to
$162/KW based upon all eight plants or $250/KW when one considers
only the newest, more efficient natural gas plants. The rating
recognizes the existence of a restricted payments test at GasCo
which limits the amount of annual restricted payments to $135
million.

GasCo is directly owned by Dynegy Gas Investments Holdings, LLC
(DGIH), whose sole purpose is to hold the stock of GasCo. Both
GasCo and DGIH are owned by Dynegy Gas Holdco, LLC (DGH). Proceeds
from the GasCo term loan, along with cash on hand, are being used
to refinance in part certain existing indebtedness and guarantees
of DHI and its subsidiaries, including amounts required to repay
outstanding indebtedness under the existing DHI secured credit
facility, to cash collateralize letters of credit, to make a $200
million restricted payment to DGIH (and subsequently to DGH), to
pay transaction expenses, and to fund additional cash for GasCo's
working capital requirements.

In addition to GasCo, DHI has converted Dynegy Midwest Generation
LLC (CoalCo) into a bankruptcy remote entity, which is owned by
Dynegy Coal Investments Holdings, LLC (DCIH), whose sole asset is
the stock of CoalCo. DCIH is owned by Dynegy Coal Holdco, LLC.
Moody's understands that a $600 million five year secured term
loan exists at CoalCo to be used primarily to cash collateralize
letters of credit, to make a $200 million restricted payment to
DCIH (which will make a restricted payment in an equal amount to
Dynegy Coal Holdco, LLC), to pay transaction expenses and to fund
additional cash to be used for working capital and general
corporate purposes. Collateral securing the term loan is the 3,132
MW primarily coal-fired portfolio of six plants located in the
MISO region. While collateral coverage appears strong, Moody's
anticipates the credit metrics for CoalCo to be more volatile than
those at GasCo over the next few years because of the sole
reliance on a more challenged unregulated power market in the
Midwest for earnings and cash flow, the lack of formal capacity
market in MISO, as well as the required capital investment program
being undertaken for environmental expenditures. As such, Moody's
anticipates distributable cash flow from CoalCo through 2013 to be
more modest and more volatile (as compared to GasCo) as
environmental capital expenditures are being incurred. To that
end, Moody's understands that the annual restricted payment amount
at CoalCo is $90 million.

As part of the reorganization, DHI has implemented ring-fencing
like measures around DGIH and GasCo and its subsidiaries, and
around DCIH and CoalCo and its subsidiaries. DGIH and DCIH and
each of their respective subsidiaries, GasCo and CoalCo, has at
least one independent manager or director, and each has a variety
of separateness provisions with the intent to hold itself out as a
separate entity. Moody's further understands that unanimous
consent of the board of managers, including the independent
manager, is required for any bankruptcy proceeding, and that the
independent director will make such decisions based solely on the
interests of GasCo or CoalCo and not based upon the interests of
DHI or its parent, Dynegy Inc. DHI intends to sell up to 20% of
GasCo. Potential owners of 20% of GasCo could include an unrelated
third party, DHI shareholders, or DHI creditors.

While the intent of the reorganization is for each legal entity to
be viewed as a separate organization from a legal standpoint,
Moody's believes that the operations of the company will continue
to run largely as a consolidated concern. Commercial strategies,
fuel and asset management strategies, and capital investment will
be directed and guided by DHI and by subsidiaries of DHI excluded
from the ring-fenced subsidiaries. These activities, many of which
are integral to the operating companies' and consolidated parent's
financial performance, are documented in intercompany agreements.
As such, GasCo's B2 rating is less affected by the implementation
of these ring-fencing like measures and more influenced by the
consolidated credit profile at DHI. This is particularly the case
given that Moody's believes the primary reason for executing the
corporate reorganization has more to with restructuring DHI's on-
and off-balance sheet debt obligations in the future and less to
do with any operational or synergistic benefits associated with
having two major subsidiaries.

DHI's Caa3 Corporate Family Rating reflects Moody's concern about
continued weak cash flow over the next several years due to
challenging market conditions caused by lower power prices due to
low natural gas prices and lackluster electric demand. On a
consolidated basis, Moody's believes that during 2011 and 2012, in
the absence of some form of debt restructuring, the company will
generate both negative operating cash flow and negative free cash
flow due to weak operating margins, higher required lease
payments, and required funding for environmental related capital
expenditures.

GasCo's negative outlook largely reflects the negative outlook at
DHI, along with the interrelationship and reliance that will
continue to exist between GasCo, DHI, and other DHI subsidiaries
irrespective of the formation of the ring-fencing like measures
adopted by the company. In light of the continued uncertainty
surrounding other potential DHI restructuring initiatives,
including the sale of up to 20% of GasCo, the rating outlook for
GasCo is likely to mirror that of DHI.

The principal methodology used in this rating was Global
Unregulated Utilities and Power Companies published in August
2009.

Headquartered in Houston, Texas, DHI is an independent power
producer that owns a portfolio of 11,596 MW electric generating
assets. DHI is wholly-owned by Dynegy, Inc.

Dynegy Power, LLC (GasCo) owns 6,771 MW of natural gas-fired
generating plants, which collectively represent eight plants in
five markets. GasCo is directly owned by Dynegy Gas Investments
Holdings, LLC (DGIH), whose sole purpose is to hold the stock of
GasCo. Both GasCo and DGIH are owned by Dynegy Gas Holdco, LLC
(DGH).


DYNEGY INC: Incurs $116 Million Net Loss in Second Quarter
----------------------------------------------------------
Dynegy Inc. filed with the U.S. Securities and Exchange Commission
its quarterly report on Form 10-Q, reporting a net loss of
$116 million on $326 million of revenue for the three months ended
June 30, 2011, compared with a net loss of $191 million on
$239 million of revenue for the same period during the prior year.

The Company also reported a net loss of $193 million on
$831 million of revenue for the six months ended June 30, 2011,
compared with a net loss of $46 million on $1.09 billion of
revenue for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $9.86 billion
in total assets, $7.30 billion in total liabilities, and
$2.56 billion in total stockholders' equity.

"Our operating units turned in an excellent performance during the
quarter," said Robert C. Flexon, president and chief executive
officer of Dynegy.  "In addition, we benefited from an improvement
in G&A and Operating costs of approximately $15 million as our
improvement efforts, initiated earlier this year, are beginning to
show results.  A prerequisite to our successful restructuring is
the continued safe, reliable, and in compliance operations of our
plants while reducing our cost structure."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/26Xop4

                         About Dynegy Inc.

Through its subsidiaries, Houston, Texas-based Dynegy Inc.
(NYSE:DYN) -- http://www.dynegy.com/-- produces and sells
electric energy, capacity and ancillary services in key U.S.
markets.  The power generation portfolio consists of approximately
12,200 megawatts of baseload, intermediate and peaking power
plants fueled by a mix of natural gas, coal and fuel oil.

                            Failed Sale

The Troubled Company Reporter has chronicled Dynegy's attempts to
sell itself.  In August 2010, Dynegy struck a deal to be acquired
by an affiliate of The Blackstone Group at $4.50 a share or
roughly $4.7 billion.  That offer was raised to $5.00 a share in
November.  Through Carl Icahn and investment fund Seneca's
efforts, shareholders thumbed down both offers.

In December 2010, an affiliate of Icahn commenced a tender offer
to purchase all of the outstanding shares of Dynegy common stock
for $5.50 per share in cash, or roughly $665 million in the
aggregate.  In February 2011, Icahn Enterprises L.P. terminated
the proposed merger agreement with the Company after it failed to
garner the required number of shareholder votes.

Goldman, Sachs & Co. and Greenhill & Co., LLC, served as financial
advisors and Sullivan & Cromwell LLP served as legal counsel to
Dynegy on the sale efforts.

                       Bankruptcy Warning

Dynegy warned shareholders in March it might be forced into
bankruptcy if it is unable to renegotiate the terms of its
existing debt.

The Company's balance sheet at March 31, 2011, showed $9.82
billion in total assets, $7.15 billion in total liabilities and
$2.67 billion in total stockholders' equity.

Ernst & Young LLP, in Houston, said that Dynegy projects that it
is likely that it will not be able to comply with certain debt
covenants throughout 2011.  "This condition and its impact on
Dynegy Inc.'s liquidity raises substantial doubt about Dynegy
Inc.'s ability to continue as a going concern."

                         *     *     *

In July 2011, Moody's downgraded Dynegy Holdings' probability of
default rating to 'Ca' from 'Caa3'.  "The downgrade of DHI's PDR
and senior unsecured notes to Ca reflects the increased likelihood
of a distressed debt exchange transaction occurring within the
next several months following today's announcement of a corporate
reorganization that seeks to modify asset ownership within DHI
through the formation of several wholly-owned subsidiaries", said
A.J. Sabatelle, Senior Vice President of Moody's. "Separate
financing arrangements being established at these subsidiaries
will have annual limits placed on the amount of cash flow that can
be paid to their indirect parent, which Moody's believes raises
default prospects for DHI's senior unsecured notes and the
company's lease", added Sabatelle.


EAST COAST: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: East Coast Abatement Co., Inc.
        176 Winchaser Way
        Moyock, NC 27958

Bankruptcy Case No.: 11-73560

Chapter 11 Petition Date: August 5, 2011

Court: United States Bankruptcy Court
       Eastern District of Virginia (Norfolk)

Judge: Stephen C. St. John

Debtor's Counsel: Joseph T. Liberatore, Esq.
                  CROWLEY, LIBERATORE, & RYAN, P.C.
                  1435 Crossways Boulevard, Suite 300
                  Chesapeake, VA 23320
                  Tel: (757) 333-4500
                  Fax: (757) 333-4501
                  E-mail: jliberatore@clrfirm.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/vaeb11-73560.pdf

The petition was signed by Richard C. Webb, II, president.


ELEPHANT & CASTLE: Committee Taps FTI Consulting as Fin'l Advisor
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of Massachusetts Elephant & Castle Group and its affiliates,
asks the U.S. Bankruptcy Court for the District of Massachusetts
for permission to retain FTI Consulting, Inc., as its financial
advisors.

FTI will, among other things:

   -- assist the Committee with the assessment and monitoring of
   the Debtors' short term cash flow, liquidity, prepetition claim
   payments and operating results;

   -- assist the Committee in the review of any proposed plan(s)
   of reorganization and the related disclosure statement; and

   -- assist the Committee in the review and assessment of
   potential bids from investors in connection with any sale
   process.

Subject to Court approval, FTI will seek payment for compensation
on a fixed monthly basis of $45,000 per month, plus reimburesment
of actual and necessary expenses incurred by FTI.

To the best of the Committee's knowledge, FTI is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

            About Massachusetts Elephant & Castle Group

Boston-based Massachusetts Elephant & Castle Group and its
affiliates operates 21 British-style restaurant pubs
in the U.S. and Canada.  The chain, with 10 locations in the U.S.,
generated revenue of $47.5 million in 2010, throwing off
$3.9 million of earnings before interest, taxes, depreciation,
amortization, and foreign exchange gains or losses.

Elephant & Castle filed for Chapter 11 protection (Bankr. D. Mass.
Lead Case No. 11-16155) on June 28, 2011.  Bankruptcy Judge Henry
J. Boroff presides over the case.  John G. Loughnane, Esq. at
Eckert Seamans Chein& Mellott, LLC represents the Debtor in its
restructuring effort.  Repechage Investments' estimated assets and
debts at $10 million to $50 million.  Other Debtors' estimated
assets and debts at $0 to $10 million.

On July 12, 2011, the U.S. Trustee's office appointed the Official
Committee of Unsecured Creditors.


ELEPHANT & CASTLE: Committee Taps Goulston & Storrs as Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of Massachusetts Elephant & Castle Group and its affiliates,
asks the U.S. Bankruptcy Court for the District of Massachusetts
for permission retain the firm of Goulston & Storrs, P.C., as its
counsel.

Goulston & Storrs' standard hourly rates for attorneys range from
$295 - $855 per hour and that its rates for paralegal range from
$205 - $375 per hour.  The professionals who will have primary
responsibility for handling matters on behalf of the Committee in
these cases and their respective hourly rates are:

         Christine D. Lynch             $565
         Peter Bilowz                   $500
         Timothy J. Carter              $305
         Stacey A. Mordas, paralegal    $250

Goulston & Storrs has agreed to discount its standard hourly
rates by 10%, which will be reflected in each of the applications
for compensation filed with the Court.

To the best of the Committee's knowledge, the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

            About Massachusetts Elephant & Castle Group

Boston-based Massachusetts Elephant & Castle Group and its
affiliates operates 21 British-style restaurant pubs
in the U.S. and Canada.  The chain, with 10 locations in the U.S.,
generated revenue of $47.5 million in 2010, throwing off
$3.9 million of earnings before interest, taxes, depreciation,
amortization, and foreign exchange gains or losses.

Elephant & Castle filed for Chapter 11 protection (Bankr. D. Mass.
Lead Case No. 11-16155) on June 28, 2011.  Bankruptcy Judge Henry
J. Boroff presides over the case.  John G. Loughnane, Esq. at
Eckert Seamans Chein& Mellott, LLC represents the Debtor in its
restructuring effort.  Repechage Investments' estimated assets and
debts at $10 million to $50 million.  Other Debtors' estimated
assets and debts at $0 to $10 million.

On July 12, 2011, the U.S. Trustee's office appointed the Official
Committee of Unsecured Creditors.  Goulston & Storrs, P.C.
represents the Committee in the Debtors' cases.  The Committee
tapped FTI Consulting, Inc., as its financial advisors.


EMDEON BUSINESS: S&P Lowers Corporate Credit Rating to 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Nashville-based Emdeon Business Services LLC to 'B+'
from 'BB-'. "At the same time, we placed the rating on CreditWatch
with negative implications," S&P said.

"We expect to withdraw our ratings on the existing credit
facilities, which are not listed on CreditWatch, at the close of
the transaction," S&P related.

The ratings action follows the announcement that Blackstone Group
will acquire a majority interest in Emdeon. Hellman & Friedman,
one of the two current investors in Emdeon, is expected to retain
a minority interest in the company post closing of the going-
private transaction.

"Terms have yet to be disclosed but we anticipate that the
existing debt will be refinanced and we will withdraw our ratings
on these issues as a result of the change of control. Although no
terms have been announced, we believe that depending on the
amount, if any, incremental debt from the transaction could
potentially weaken the company's credit profile below current
levels," S&P related.

Adjusted debt to EBITDA was about 3.7x in March 2011.
Additionally, Emdeon's 100% equity sponsor ownership limits
corporate credit ratings above the 'B' category," S&P said.

"We will resolve the CreditWatch when more information regarding
the transaction and financing becomes available and we have the
opportunity to review any potential changes in business or
financial strategies," S&P added.


EMS ENGINEERED: Files for Chapter 7 Bankruptcy
----------------------------------------------
Philly.com reports that EMS Engineered Mechanical Systems Inc.,
Box 48, Westville, filed for Chapter 7 in the U.S. Bankruptcy
Court for the District of New Jersey.  There is no schedules
available.


ENERJEX RESOURCES: James Loeffelbein Holds 7.11% Equity Stake
-------------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, James D. Loeffelbein and his affiliates
disclosed that they beneficially own 4,932,355 shares of common
stock of EnerJex Resources, Inc., representing 7.11% of the shares
outstanding.  As previously reported by the TCR on April 11, 2011,
Mr. Loeffelbein disclosed that he beneficially own 15,249,430
shares of common stock of the Company representing 19.82% of the
shares outstanding.  A full-text copy of the regulatory filing is
available for free at http://is.gd/8uiO0V

                      About EnerJex Resources

Overland Park, Kansas-based EnerJex Resources, Inc., formerly
known as Millennium Plastics Corporation, is an oil and natural
gas acquisition, exploration and development company.  The
Company's oil and natural gas acquisition and development
activities are currently focused in Eastern Kansas.

The Company's balance sheet at March 31, 2011, showed
$31.80 million in total assets, $14.63 million in total
liabilities, and $17.17 million in total stockholders' equity.


FAIRFAX CROSSING: Wins Confirmation of Reorganization Plan
----------------------------------------------------------
Judge Patrick Flatley of the U.S. Bankruptcy Court for the
Northern District of West Virginia has confirmed Fairfax Crossing
LLC and its affiliates' Second Amended Plan of Reorganization.
Judge Flatley also orders that the Debtors' cases will be deemed
substantively consolidated into one reorganized company.

A copy of the Plan Confirmation Order is available at:
http://bankrupt.com/misc/FAIRFAXCROSSING_orderconfirmingplan.pdf

Fairfax Crossing has also filed a motion seek to delay the date on
which the Effective Date occurs under the Plan so that the Debtors
and BB&T have the opportunity to determine how best to address the
note pledge issue in a manner that best carries out the purpose of
the Plan.  The parties are working diligently on resolving the
issue, and a solution may require some further modification to the
Plan or the Confirmation Order prior to the Effective Date.   Some
modification of the Plan is necessary before the Effective Date
occurs to prevent the Debtors from being in default under the
Plan.

As reported in the Troubled Company Reporter on June 7, 2011,
Fairfax Crossing LLC and Fairfax Crossing II LLC filed a Second
Amended Plan of Reorganization, which provides for the substantial
consolidation of the two debtors into one reorganized company.

As of the Effective Date, the members, distributional interest
holder, and managers of Fairfax immediately prior to the Effective
Date will be deemed to be the members, distributional interest
holder, and managers of the Reorganized Debtor without any further
action by any party.  Pursuant to Section 1129(a)(5) of the
Bankruptcy Code, each of Ronald E. Marcus and Christopher B.
Shultz, will continue to hold 50% of the membership interests and
a 33.33% distributional interest in the Reorganized Debtor and the
estate of Terry L. Marcus will continue to hold a 33.33%
distributional interest in the Reorganized Debtor.  Each of Ronald
E. Marcus and Christopher B. Shultz will be a manager of the
Reorganized Debtor.

Claims are classified and will be paid according to this table:

Class   Description                   Treatment
-----   -----------                   ---------
  1     Secured Claim of BB&T         Impaired, Entitled to Vote
                                      Recovery: 100%

  2     Secured Turf Guaranty Claim   Impaired, Entitled to Vote
                                      Recovery: 100%

  3     Secured Claim of Glendwell    Impaired, Entitled to Vote
        and Jo Ann Lloyd              Recovery: 100%

  4     Unsecured Claim of Perry      Impaired, Entitled to Vote
        Engineering                   Recovery: 100%

  5     Unsecured Claims of           Impaired, Entitled to Vote
        Unrelated Parties other       Recovery: 100%
        than Perry Engineering

  6     Unsecured Claims of           Impaired, Entitled to Vote
        Related Parties               Recovery: 100%

  7     Equity Interests              Unimpaired, Not Entitled to
                                         Vote
                                      Recovery: Retain Equity
                                      Interests in Reorganized
                                      Debtor

A full-text copy of the Second Amended Plan, dated May 10, 2011,
is available for free at http://ResearchArchives.com/t/s?7622

                      About Fairfax Crossing

Based in Charles Town, West Virginia, Fairfax Crossing LLC filed
for Chapter 11 Bankruptcy Protection on June 29, 2010 (Bankr. N.D.
W.V. Case No. 10-01362).  Judge Patrick M. Flatley presides over
the Debtor's case.  The Debtor estimated both assets and debts of
between $1 million and $10 million.

Debtor-affiliate Charles Town, West Virginia-based Fairfax
Crossing II LLC filed a separate petition for Chapter 11
bankruptcy protection on June 29, 2010 (Bankr. N.D.
W.V. Case No. 10-01368).  Fairfax Crossing II disclosed
$24,270,748 in assets and $5,589,190 in liabilities as of the
petition date.

Richard G. Gay, Esq., at the Law Office of Richard G. Gay, L.C.,
in Berkeley Springs, W. Va., and Lawrence J. Yumkas, Esq, at
Vidmar & Sweeney, LLC, in Annapolis, Md., represent the Debtors as
counsel.  The cases are jointly consolidated under Case No.
10-01362.

Fairfax is the developer of Lakeland Place at Fairfax Crossing, a
community comprised of single family residences and townhomes in
Ranson, West Virginia.  Fairfax II is a real estate development
company that holds title to a 19.1139 acre residential and
commercial parcel in Fairfax Crossing and also holds title to an
adjoining 31.13 acre parcel which Fairfax plans to develop into a
residential community called Lloyd's Landing.


FHG DEVELOPMENT: Files for Chapter 11 Bankruptcy Protection
-----------------------------------------------------------
Philly.com reports that FHG Development New Jersey L.L.C., FHG
South Jersey L.L.C., and FHG Acquisitions L.L.C. a New York
Company, 542 Cross Keys Rd., No. 286, Sicklerville, filed for
Chapter 11 in the U.S. Bankruptcy Court for the District of New
Jersey.  There is no schedules available.


FRIEDMAN'S INC: Suit to Convert Debt to Equity Can Move Forward
---------------------------------------------------------------
Thomson Reuters reports that Friedman's Inc. can proceed past the
pleading stage with a lawsuit seeking to recharacterize funds
loaned to it by stockholders as equity, a Delaware bankruptcy
judge has ruled.

According to the report, several stockholders, including Goldman
Sachs Credit Partners LP, sought dismissal of the adversary
complaint, saying the parties intended the funds to be debt.

The report says, however, Judge Christopher Sontchi of the U.S.
Bankruptcy Court for the District of Delaware said the liquidating
trustee for Friedman's Inc. has made "facially plausible
allegations" regarding recharacterization of the funds from debt
to equity.

The report says a group of shareholders subsequently filed general
unsecured claims, saying the funds they provided were debt.
Friedman's responded with an adversary complaint seeking to
recharacterize the funds as equity.  The shareholders asked Judge
Sontchi to dismiss the complaint, saying the parties intended the
funds to be a loan.

The report notes the judge disagreed, concluding under the
plaintiff-friendly light of a pleading-stage motion to dismiss
that Friedman's had alleged facts sufficient to support a finding
that the funds were equity.

According to the report, Judge Sontchi reached this decision after
citing the following allegations, all of which he said could weigh
in favor of a finding that the funds were equity:

  -- There was a pro rata contribution by the shareholders.
  -- Interest payments were deferred.
  -- The promised interest rate was below market.
  -- Interest was not paid when funds were available.
  -- The contributions were made on a subordinated unsecured
     basis.

The report says the judge noted the shareholders ultimately may
prevail on the merits of their defense, saying certain other
factors weigh in favor of characterizing the funds as debt.

                       About Friedman's Inc.

Addison, Texas-based Friedman's Inc. -- http://www.friedmans.com/
-- and -- http://www.crescentonline.com/-- comprised a leading
specialty jewelry retail company.  Friedman's operated 388 stores
in 20 states with over 2,890 employees while Crescent Jewelers
operated 85 stores in 3 states with over 600 employees.

Friedman's and Crescent Jewelers filed for Chapter 11 protection
(Bankr. D. Del. Case Nos. 08-10161 and 08-10179) on Jan. 28, 2008.

David M. Green, Esq., Jocelyn Keynes, Esq., and Nicholas F. Kajon,
Esq., at Stevens & Lee, P.C., in New York; and John D. Demmy,
Esq., at Stevens & Lee, P.C., in Wilmington, Delaware, serve as
counsel to the Debtors.  The Debtors' professionals also include
Rothschild, Inc., as investment banker and financial advisor;
Retail Consulting Services, Inc. as real estate and lease
consultants; ASK Financial as special counsel to review, analyze,
and prosecute preference claims; Grant Thornton LLP as Tax
Advisors; and KZC Services, LLC's Salvatore LoBiondo, Jr., as
Chief Restructuring Officer, and Charles Carnaval as Director of
Restructuring.

The Official Committee of Unsecured Creditors appointed in the
Debtors' cases is represented by Christopher J. Caruso, Esq., Alan
Kolod, Esq., Lawrence L. Ginsburg, Esq., at Moses & Singer LLP in
New York; and Charlene D. Davis, Esq., at Bayard, P.A., in
Wilmington, Delaware.  The Committee also retained Consensus
Advisors as its financial advisors.

On April 10, 2008, the Court approved the sale to Whitehall
Jewelers, Inc., and a joint venture led by Great American Group
LLC to sell to Whitehall the inventory and related property at 78
of the Debtors' stores, and to assume and assign to Whitehall the
leases with respect to those 78 stores.  On June 30, 2008, the
liquidation of the balance of the Debtors' assets through store
closing sales were concluded.

At a confirmation hearing conducted on April 20, 2009, Friedman's
and Crescent Jewelers attained confirmation of their liquidating
plan in their Chapter 11 cases.


GALLOP ENTERPRISES: Ala. High Ct. Withdraws Opinion in 2 Appeals
----------------------------------------------------------------
The Supreme Court of Alabama withdrew its June 17, 2011 opinion in
two appellate cases -- EB Investments, L.L.C. v. Pavilion
Development, L.L.C., et al.; and Pavilion Development, L.L.C.,
v. JBJ Partnership et al., Nos. 1091666, 1091667 -- and dismissed
both appeals.

EB Investments, L.L.C., and Pavilion Development, L.L.C., filed
separate appeals challenging elements of an order entered by the
Madison Circuit Court holding that Pavilion was entitled to redeem
certain property in Madison County in which EB Investments and
multiple other parties held legal interests.  The Supreme Court of
Alabama held that the trial court exceeded its discretion in
certifying its judgment as final pursuant to Rule 54(b), Ala. R.
Civ. P. and thus proper for an immediate appeal.

A copy of the Supreme Court of Alabama's Aug. 5, 2011 decision is
available at http://is.gd/xSLbqhfrom Leagle.com.

The trial court action was initiated on March 21, 1997, when
Pavilion, then operating as John Lary, L.L.C., sued to redeem 19
acres of land purchased by JBJ Partnership at a foreclosure sale
on March 22, 1996.

In August 1991, James E. Pace, James P. Pace, and William B. Pace,
doing business as Pace Properties, sold approximately 22 acres of
unimproved property in Madison County to Gallop Enterprises, Inc.,
a development company operated by Richard Tracey.  The transaction
was financed by Pace and in exchange for the land Gallop gave a
promissory note secured by a mortgage on the property to Pace in
the principal sum of $1,735,000.  Gallop then obtained additional
financing from Ben H. Walker, Inc., to develop a subdivision on
the property, and in return Gallop gave Walker a second mortgage
on the property with a principal value of $149,999.  Gallop,
however, exhausted its funds and could not proceed with the second
phase of the subdivision project.  Under threat of foreclosure,
Gallop filed a petition for bankruptcy pursuant to Chapter 11 of
the Bankruptcy Code.

In April 1995, under the supervision of the bankruptcy court, the
parties reached a settlement agreement wherein Gallop stipulated
that it owed $1,439,010 to Pace and $149,999 to Walker.  Pace also
agreed to loan Gallop up to an additional $200,000 so that Gallop
could complete development of the property and could then pay its
debts to Walker and Pace with proceeds obtained from selling
developed lots in the subdivision.

By December 1995, Gallop was again in default on its obligations,
and Pace instituted foreclosure proceedings. On March 22, 1996,
the property was sold to JBJ -- a new partnership made up of the
Pace family -- at a foreclosure auction for $100,000. The Pace
family thereafter paid off the Walker note and continued
developing the property on its own.

On March 1, 1997, Gallop, through Mr. Tracey, sent a letter to JBJ
stating that Gallop intended to exercise its statutory right to
redeem the 19 acres it had lost in foreclosure.  On March 13,
1997, after JBJ had advised Mr. Tracey that it did not recognize
his authority to exercise Gallop's right of redemption, Tracey
transferred Gallop's right of redemption to Pavilion, a company
operated by his former brother-in-law John Lary and then still
known as John Lary, L.L.C., in return for $1,000.


GARLOCK SEALING: Dismissal of 2 Asbestos Cases Reversed
-------------------------------------------------------
The Court of Appeals of Washington, Division One, reversed the
trial court's dismissal of two personal injury lawsuits against
manufacturers and suppliers of asbestos-containing products or
equipment used on United States Navy vessels at the Puget Sound
Naval Shipyard:

     (1) Abbay v. Aurora Pump Company

George Abbay and his spouse Lynne Abbay appeal summary judgment
dismissal of the personal injury lawsuit.  In an effort to prevent
the respondents from seeking removal to federal court, Abbay
disclaimed "any cause of action or recovery for any injuries
caused by any exposure to asbestos dust that occurred in a federal
enclave, which expressly excludes U.S. Navy vessels."  In the
briefs submitted in opposition to summary judgment, Abbay
clarified that the disclaimer excludes his causes of action under
state law for exposure to asbestos while working on U.S. Navy
vessels at PSNS. On reconsideration, the trial court applied the
rules of grammar in ruling that Abbay disclaimed all state law
causes of action that occurred at PSNS, including causes of action
from exposure to asbestos on Navy ships.

The Court of Appeals concluded that grammatical rules do not
require interpreting the relative clause, "which expressly
excludes U.S. Navy vessels," as only applying to the antecedent
noun, "federal enclave," and the meaning of the disclaimer is
ambiguous.  As clarified in the briefs, the disclaimer does not
exclude Abbay's state law causes of action from exposure to
asbestos while working on U.S. Navy vessels.  Accordingly, the
Court of Appeals said it need not address whether the trial court
erred in ruling that as a matter of law, PSNS in its entirety, is
a federal enclave.  The Court of Appeals reversed dismissal of
Abbay's lawsuit and remanded the matter.

George Abbay worked for about 26 years as a ship rigger on United
States Navy vessels that were in dry dock or moored to piers at
PSNS.  In August 2007, he was diagnosed with malignant pleural
mesothelioma, a form of cancer caused by exposure to asbestos.

Leslie Controls is a respondent in the appeal.  All proceedings in
this matter against Leslie are stayed as a result of its
bankruptcy filing.

Garlock Sealing Technologies is an original defendant in the
matter but not a respondent on appeal.  Garlock has obtained a
preliminary injunction staying all proceedings against it.

A copy of the Court's Aug. 8 decision is available at
http://is.gd/NIMHeYfrom Leagle.com.

     (2) Farrow v. Alfa Laval, Inc.

Michael Farrow and his spouse Lidia Farrow filed a personal injury
lawsuit against a number of manufacturers and suppliers of
asbestos-containing products used on United States Navy vessels at
the Puget Sound Naval Shipyard.  In an attempt to avoid removal to
federal court, the complaint disclaims "any cause of action or
recovery for any injuries caused by exposure to asbestos dust that
occurred in a federal enclave, which expressly excludes U.S. Navy
vessels."  The trial court ruled on summary judgment that the
language of the disclaimer was unambiguous and meant that Farrow
waived all claims from asbestos exposure that occurred at PSNS.
In the linked case, Abbay v. Aurora Pump Co., No. 62399-1-I, the
Court of Appeals held that because the exact same disclaimer
language is ambiguous and susceptible to two reasonable
interpretations, the plaintiff was entitled to clarify the meaning
of the disclaimer in the written response filed in opposition to
summary judgment.  The Court of Appeals reversed the dismissal of
Farrow's lawsuit, and remanded the matter.

A copy of the Court's Aug. 8 decision is available at
http://is.gd/ugC9lpfrom Leagle.com.

Farrow died in May 2008.

Garlock Sealing Technologies and Leslie Controls are respondents
in the appeal.

                      About Leslie Controls

Based in Tampa, Florida, Leslie Controls manufacturers process
control valves, severe service control valves, on-off valves,
regulators, steam water heaters, actuators and controls.
Leslie is a unit of CIRCOR International, Inc.

Leslie Controls sought Chapter 11 bankruptcy protection (Bankr.
D. Del. Case No. 10-12199) on July 12, 2010.  Marion M. Quirk,
Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel,
Forman & Leonard, assist the Company in its restructuring
effort.  Natalie Ramsey, Esq., at Montgomery, McCracken,
Walker & Rhodes, LLP, represents the Asbestos Claimants
Committee, and Edwin J. Heron, Esq., at Young, Conaway,
Stargatt & Taylor, LLP, represents the Future Claimants'
Representative.  William R. Hanlon, Esq., at Goodwin Procter
LLP advises CIRCOR International, Inc.  The Company estimated
its assets at $10 million to $50 million and its debts at
$50 million to $100 million at that the time of the filing.

As reported by the Troubled Company Reporter, the Bankruptcy Court
entered an order on October 28, 2010, confirming the amended
prenegotiated Chapter 11 reorganization plan filed by Leslie
Controls, Inc., on July 12, 2010.  The reorganization plan is
intended to permanently resolve Leslie's asbestos liability
through the creation of a trust pursuant to Section 524(g) of the
U.S. Bankruptcy Code.  All current and future asbestos claims
against Leslie would be channeled to the trust for review and
payment, thus providing both Leslie and CIRCOR with permanent
court protection from such claims.

In February 2011, the U.S. District Court for the District of
Delaware affirmed the U.S. Bankruptcy Court's confirmation of the
amended pre-negotiated Chapter 11 reorganization plan filed by
Leslie Controls.  Leslie Controls emerged from Chapter 11 in April
2011.

                     About Garlock Sealing

Headquartered in Palmyra, New York, Garlock Sealing Technologies
LLC is a unit of EnPro Industries, Inc. (NYSE: NPO).  For more
than a century, Garlock has been helping customers efficiently
seal the toughest process fluids in the most demanding
applications.

On June 5, 2010, Garlock filed a voluntary Chapter 11 petition
(Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina,
to establish a trust to resolve all current and future asbestos
claims against Garlock under Section 524(g) of the U.S. Bankruptcy
Code.  The Debtor estimated $500 million to $1 billion in assets
and up to $500 million in debts as of the Petition Date.
Affiliates The Anchor Packing Company and Garrison Litigation
Management Group, Ltd., also filed for bankruptcy.

The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas.  Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.

Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort.  Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for asbestos matters.

The Official Committee of Asbestos Personal Injury Claimants in
the Chapter 11 cases is represented by Travis W. Moon, Esq., at
Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC,
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New
York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and
Jeanna Rickards Koski, Esq., in Washington, D.C. 20005.

Joseph W. Grier, III, the Court-appointed legal representative for
future asbestos claimants, has retained A. Cotten Wright, Esq., at
Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan
P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co-
counsel.

About 124,000 asbestos claims are pending against Garlock in state
and federal courts across the country.  The Company says majority
of pending asbestos actions against it is stale and dormant --
almost 110,000 or 88% were filed more than four years ago and more
than 44,000 or 35% were filed more than 10 years ago.


GB HERNDON: Court Has Authority Over Counterclaims Amid Stern
-------------------------------------------------------------
In the case Adams National Bank, v. GB Herndon and Associates,
Inc., et al., Adv. Proc. No. 10-10052 (Bankr. D. D.C.), the
defendants filed with the Court a Motion to Temporarily Lift Final
Judgment Pending Resolution of the Motion for Relief from Judgment
and to Alter or Amend Judgment.  In an Aug. 7, 2011 Memorandum
Decision, a copy of which is available at http://is.gd/ne2IIwfrom
Leagle.com, Bankruptcy Judge S. Martin Teel, Jr., said that to the
extent the defendants' motion asks the Court to temporarily stay
its decision lifting the automatic stay in the main bankruptcy
case underlying the adversary proceeding, the motion is denied.
Judge Teel said even if the final judgment were vacated based on
the Supreme Court's recent decision in Stern v. Marshall, 2011 WL
2472792 (2011), the Bankruptcy Court in GB Herndon had
constitutional authority to address the impact of the
counterclaims against Adams National Bank on the propriety of
granting Adams National Bank relief from the automatic stay.  To
the extent the motion asks the court to stay the final judgment in
this adversary proceeding awarding the plaintiff the sum
$8,532,253.74 plus costs, Judge Teel said the motion is granted.

GB Herndon and Associates, Inc., filed for Chapter 11 bankruptcy
(Bankr. D. D.C. Case No. 10-00945) on Sept. 24, 2010.


GENEVA MULTI-FAMILY: Court to Hear Lender's Dismissal Plea Aug. 17
------------------------------------------------------------------
The Hon. Dennis D. O'Brien of the U.S. Bankruptcy Court for the
District of Minnesota will convene a hearing on Aug. 17, 2011 at
11:30 p.m., to determine whether the Chapter 11 case of Geneva
Multi-Family Exchange Xiv, LLC, must be dismissed.  Responses to
the motion, if any, must be filed by Aug. 12, 2011.

Broadstone Towne Crossing Property Owner LLC told Judge O'Brien
that case bears all of the hallmarks of a bad faith filing.  Among
other things, the Debtors:

  * have only one material asset: a 96% tenant in common interest
    in the Property;

  * are highly unlikely to be able to reorganize or effectuate a
    plan of reorganization;

  * have no equity in the Property, and have only approximately
    $70,000 of unsecured debt compared to Lender's claim of
    approximately $24.3 million;

  * are engaged in a two-party dispute with Lender, their single
    secured creditor, which dispute can be resolved through the
    foreclosure process;

  * filed these cases hours before a foreclosure sale of the
    Property was scheduled to occur; and

  * have few, if any, employees.

In short, these cases are essentially a two-party dispute between
the Debtors and Lender, and are a transparent and bad faith
attempt to use the automatic stay imposed by section 362 of
the Bankruptcy Code to frustrate Lender's exercise of its
contractual and state law rights.  The Debtors also have little,
if any, likelihood of proposing a confirmable plan of
reorganization or prospect of rehabilitation.

Goodwin Procter LLP represents Broadstone Towne.

According to the Troubled Company Reporter on July 27, 2011,
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.

              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.

The Debtor listed $25,301,700 in total assets, and $24,370,890 in
total liabilities.


GMX RESOURCES: Incurs $11.8 Million Net Loss in Second Quarter
--------------------------------------------------------------
GMX Resources Inc. reported a net loss of $11.80 million on
$32.85 million of oil and gas sales for the three months ended
June 30, 2011, compared with a net loss of $1.20 million on $23.21
million of oil and gas sales for the same period during the prior
year.

The Company also reported a net loss of $63.62 million on $62.23
million of oil and gas sales for the six months ended June 30,
2011, compared with net income of $4.08 million on $44.51 million
of oil and gas sales for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $634.09
million in total assets, $422.26 million in total liabilities and
$211.83 million in total equity.

Michael J. Rohleder, president, said, "Our second 2011 production
exceeded our guidance and reached a Company record 6.5 BCFE."
Rohleder continued, "Our overarching goals in the next two years
are to accelerate revenues and EBITDA growth to reach
profitability sooner, and to reduce our leverage. "

A full-text copy of the press release announcing the financial
results is available for free at http://is.gd/LaNq3D

                        About GMX Resources

GMX Resources Inc. -- http://www.gmxresources.com/-- is an
independent natural gas production company headquartered in
Oklahoma City, Oklahoma.  GMXR has 53 producing wells in Texas &
Louisiana, 24 proved developed non-producing reservoirs, 48 proved
undeveloped locations and several hundred other development
locations. GMXR has 9,000 net acres on the Sabine Uplift of East
Texas.  GMXR has 7 producing wells in New Mexico.  The Company's
strategy is to significantly increase production, revenues and
reinvest in increasing production.  GMXR's goal is to grow and
build shareholder value every day.

The Company reported a net loss of $138.29 million on
$96.52 million of oil and gas sales for the year ended Dec. 31,
2010, compared with a net loss of $181.08 million on $94.29
million of oil and gas sales during the prior year.

The Company's balance sheet at March 31, 2011, showed $606.60
million in total assets, $413.10 million in total liabilities and
$193.50 million in total equity.

                           *     *     *

GMX Resources got a first time 'Caa1' Corporate Family Rating
and SGL-3 Speculative Grade Liquidity rating from Moody's
Investors Service in February 2011.  GMX's 'Caa1' CFR reflects its
small size, limited diversification, production that is 97%
natural gas in a low gas price environment, high leverage on
production and reserves, and the risks inherent
in developing its newly acquired oil focused Bakken and Niobrara
acreage while outspending cash flow," commented Jonathan
Kalmanoff, Moody's Analyst.  "The rating also considers the
potential for improvement in both profitability and
diversification if GMX is successful in developing its newly
acquired acreage, the pre-funding of the majority of 2011 capital
spending through both debt and equity offerings, a lack of
required drilling to hold acreage in the company's East Texas
properties, and hedges in place which add support to realized
prices for gas production through 2012."

As reported by the TCR on April 25, 2011, Standard & Poor's
Ratings Services said it assigned its 'B-' corporate credit rating
to Oklahoma City-based GMX Resources Inc.  The outlook is stable.
"The ratings on GMX Resources Inc. reflect the company's limited
scale of operations, meaningful exposure to weak natural gas
prices, a very aggressive near-term spending plan, limited
liquidity beyond 2011, and elevated debt leverage," said Standard
& Poor's credit analyst Paul B. Harvey.  "Near-term credit quality
will benefit from the liquidity provided by GMX's $200 million
senior unsecured note issuance and concurrent $100 million common
equity offering, as well as expectations for growing production
from its Haynesville Shale development," S&P related.


GREENMAN TECHNOLOGIES: Completes Sale of Unit to Irish Knight
-------------------------------------------------------------
GreenMan Technologies, Inc., has completed the sale of
substantially all of the assets of Green Tech Products, Inc., its
molded recycled rubber products subsidiary located in Carlisle,
Iowa, to Irish Knight Holdings, L.L.C.  Pursuant to the terms of
the agreement, Irish Knight Holdings purchased substantially all
assets and assumed substantially all of Green Tech's liabilities
(which were approximately $1.6 million at June 30, 2011) and
provided additional consideration in the form of a promissory note
in the principal amount of $100,000 and $50,000 in inventory
credits toward the purchase of products and services.

Lyle Jensen, GreenMan's president and chief executive officer
stated, "The divestiture of our Green Tech subsidiary simplifies
our business structure and allows us to focus our resources solely
on the continued growth of our American Power Group subsidiary.
Our dual fuel technology has generated significant interest
domestically and internationally for use in both stationary and
vehicular applications and we believe this divestiture will enable
us to align our efforts to capitalize on the growth opportunity
that APG represents."

Greenman Technologies, Inc., held a Special Meeting of
Stockholders, at which the Company's stockholders approved the
sale of the Assets, and the increase in the number of authorized
shares of the Company's common stock.

On Aug. 1, 2011, the Company filed a Certificate of Amendment to
its Restated Certificate of Incorporation with the Secretary of
State of the State of Delaware to increase the number of
authorized shares of its common stock from 60,000,000 to
100,000,000 shares.

                    About Greenman Technologies

Lynnfield, Mass.-based GreenMan Technologies, Inc. (OTC QB: GMTI)
through its two alternative energy subsidiaries, American Power
Group, Inc. ("APG") and APG International, Inc. ("APGI"), provides
a cost-effective patented dual fuel conversion technology for
diesel engines and diesel generators.

The Company's balance sheet at March 31, 2011, showed $5.2 million
in total assets, $5.9 million in total liabilities, and a
stockholders' deficit of $733,895.

Schechter Dokken Kanter Andrews & Selcer, Ltd., in Minneapolis,
Minnesota, expressed substantial doubt about GreenMan
Technologies' ability to continue as a going concern, following
the Company's results for the fiscal year ended Sept. 30, 2010.
The independent auditors noted that the Company has continued to
incur substantial losses from operations, has not generated
positive cash flows and has insufficient liquidity to fund its
ongoing operations.


GREENWICH SENTRY: Plan Outline Centers on BLMIS Trustee Deals
-------------------------------------------------------------
Greenwich Sentry, L.P. and Greenwich Sentry Partners L.P.,
submitted to the U.S. Bankruptcy Court of Southern District of New
York their disclosure statements explaining their respective plans
of reorganizations dated as of July 20, 2011.

The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.

According to the Disclosure Statements, the Plans have
substantially similar operative terms, with the exception of
certain monetary amounts and other numbers involved that are
specific to each Debtor.

The primary components of both Debtors' plan are:

   -- the payment in full of allowed administrative expense
   claims, allowed professional fee claims, allowed priority tax
   claims, allowed priority claims and allowed general unsecured
   claims;

   -- the implementation of a settlement with the BLMIS trustee
   for the estate of Bernard L. Madoff Investment Securities; and

   -- the establishment of two trusts to hold the retained assets
   left in the Debtor's estate after consummation of the BLMIS
   trustee settlement and payment of allowed claims with priority
   over the allowed limited partner interests of certificates
   representing the beneficial ownership of the trusts.

The central feature of Greenwich Sentry Partners, L.P.'s Plan is
the BLMIS trustee settlement, wherein the Debtor believing,
pursuant to its good faith business judgment, that avoidance
action claims of the BLMIS trustee would be difficult to defend,
has agreed, in sum, to allow the BLMIS trustee a claim and
judgment in the amount of $5,985,000 and the BLMIS trustee has
agreed to seek recovery of his claim only from certain specified
assets of the Debtor, to allow the Debtor's customer claim against
BLMIS in the amount of $2,011,304, to share recovery on certain
litigation claims with the Debtor, and to provide for the
distribution of the retained assets to creditors and limited
partners free and clear of the BLMIS trustee claims.

The central feature of Greenwich Sentry, L.P.'s Plan is the BLMIS
trustee settlement, wherein the Debtor, believing, pursuant to its
good faith business judgment, that avoidance action claims of the
BLMIS trustee would be difficult to defend, has agreed, in sum, to
allow the BLMIS trustee a claim and judgment in the amount of $206
million, and the BLMIS trustee has agreed to seek recovery of his
claim only from certain specified assets of the Debtor, to allow
the Debtor's customer claim against BLMIS in the amount of $35
million, to share recovery on certain litigation claims with the
Debtor, and to provide for the distribution of the retained assets
to creditors and limited partners free and cler of the BLMIS'
trustee's claims.

The BLMIS trustee agreed to support the Plans and Disclosure
Statement and to vote his claim in favor of the Plans pursuant to
the settlement agreements.  BLMIS is a broker-dealer registered
with the Securities and Exchange Commission, though customer
accounts maintained by the Debtors at BLMIS.  The Debtors have
been informed that holder of not less than $60 million in limited
partner interests in GS also favor the Court's approval of the
Disclosure Statements and confirmation of the Plans.

The Plans provide the Debtors' creditors with substantial
recoveries and allows for recovery of equity.

The Debtors propose a Sept. 1 hearing on the approval of their
Disclosure Statements.  Objections, if any, are due Aug. 25.

Full-text copies of the Disclosure Statements are available for
free at:

      http://bankrupt.com/misc/GREENWICHSENTRY_DS.pdf
      http://bankrupt.com/misc/GREENWICHSENTRYPartners_DS.pdf

                    About Greenwich Sentry

Liquidators of Fairfield Sentry Limited, filed a Chapter 15
petition for Fairfield in June 2010 (Bankr. S.D.N.Y. Case No.
10-13164).  In July 2010, Kenneth Krys and Christopher Stride of
Krys & Associates (BVI) Limited, the liquidators of Fairfield
Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda
Limited obtained cross-border recognition as foreign main
proceedings by the U.S. Bankruptcy Court of the funds' insolvency
proceedings, pending in the British Virgin Islands.  The
liquidators are represented in the U.S. by Brown Rudnick LLP.

Fairfield Sentry Limited was the largest "feeder fund" to Bernard
L. Madoff Investment Securities LLC, and invested approximately
95% of its assets with BLMIS.  BLMIS was placed into liquidation
proceedings in the United States in December 2008, after it was
revealed that Bernard Madoff operated BLMIS as a Ponzi scheme for
many years.  Fairfield Sigma Limited and Fairfield Lambda Limited
were both feeder funds of Fairfield Sentry Limited, and invested
all of their assets with Fairfield Sentry Limited.

Greenwich Sentry, L.P., and an affiliate filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. 10-16229) on Nov. 19, 2010,
hoping to settle lawsuits filed against it in connection with its
investments with Bernard L. Madoff.  Paul R. DeFilippo, Esq., at
Wollmuth Maher & Deutsch LLP, in New York, represents the Debtors
in the Chapter 11 cases.

Bernard L. Madoff was charged by the Securities and Exchange
Commission in December 2008 of orchestrating the largest Ponzi
scheme in history, with losses topping US$50 billion. In March
2009, Mr. Madoff pleaded guilty to 11 federal crimes and admitted
to turning his wealth management business into a Ponzi scheme.  A
trustee was appointed to liquidate and has been filing clawback
suits against investors who withdrew phony profits from Mr.
Madoff.

On May 18, 2009, Irving H. Picard, the trustee liquidating the
estate of Mr. Madoff and his firm, Bernard L. Madoff Investment
Securities, LLC, filed a lawsuit against Fairfield Sentry and
Greenwich, seeking the return of $3.55 billion that Fairfield
withdrew from Madoff during the period from 2002 to Madoff's
arrest in December 2008.  Since 1995, the Fairfield funds invested
about $4.5 billion with BLMIS.

Mr. Picard claims that Fairfield knew or should have known about
the fraud give that it received from BLMIS unrealistically high
and consistent annual returns of between 10% and 21% in contrast
to the vastly larger fluctuations in the S&P 100 Index.

In schedules filed with the Court, Greenwich Sentry disclosed
$317,073,770 in total assets and $206,337,244 in total
liabilities.


H&S JOURNAL: Has Deal With CA on Use of Cash Collateral
-------------------------------------------------------
CA 912-921 Bergen Avenue, LLC, successor to the position of
Oritani Bank through its acquisition of Oritani's interest in the
loan and loan documents of H&S Journal Square Associates LLC, asks
the U.S. Bankruptcy Court for the Southern District of New York to
enter an order approving the stipulation between the H&S and CA
concerning the use of CA's cash collateral generated from the
Debtor's property located at 912-921 Bergen Avenue, Jersey City,
N.J. and Journal Square, Jersey City, N.J.

The hearing on the motion is scheduled for Aug. 16, 2011, at 10:00
a.m.

CA asserts and possesses a validly perfected first lien on the
Debtor's Journal Square Property, and, inter alia, the rents
generated from the Property, securing the Debtor's obligation in
the original amount of $14,250,000 to Oritani, which CA acquired
from Oritani on March 10, 2011.

H&S and CA have agreed to maintain the pre-petition status quo
with regard to the payment an collection of rents whereby the
payments will be made directly to Oritani, now as servicer for
CA, which funds, when collected, will be disbursed or applied by
CA on account of the sums due under the Loan Documents including
non-default interest, taxes, and other charges and expenses that
may be budgeted as agreed by the parties.

The parties have agreed that this understanding has been in effect
since the inception of the bankruptcy case and the Debtor
acknowledges that it has previously reaffirmed its consent to CA's
collection of the Rents in the post-petition period, without
waiver of either parties' rights or remedies.

Pursuant to the stipulation, CA will generate a report reflecting
rents collected and received and how these were applied on a
monthly basis beginning with rents collected for the month of
April 2011.

Other than the taxes, insurance and budgeted carrying costs that
it will be paying out of collected rents, CA will not be required
to incur or fund any other expense on behalf of the Debtor.

As partial adequate protection to CA for the Debtor's use of CA's
cash collateral, CA may apply the rents collected to interest on
its claim at the non-default rate.  Additionally, CA is granted
first and senior replacement liens in all post-petition leases,
rents, issues, profits and proceeds, arising from the CA
Collateral and in all the cash collateral from the CA Collateral
on and after the Petition Date.

Counsel for CA 912-921 may be reached at:

     David S. Catuogno, Esq.
     FORMAN HOLT ELIADES & RAVIN LLC
     80 Route 4 East, Suite 290
     Paramus, NJ 07652
     Tel: (201) 845-1000

Based in Jersey City, New Jersey, H&S Journal Square Associates
LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y.
Case No. 11-11623) on April 6, 2011.  Kevin J. Nash, Esq., and J.
Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in New
York, represents the Debtor.  The Debtor disclosed $20,799,032 in
assets, and $18,944,510 in debts.


HARRY & DAVID: Wins Court OK to Terminate 2,700 Pensions
--------------------------------------------------------
Harry & David Holdings Inc. received permission to terminate the
pensions of more than 2,700 workers.  Under a ruling issued by
U.S. Bankruptcy Court Judge Mary Walrath, the Oregon-based gift
basket maker can terminate its plan when it emerges from
bankruptcy.  The decision comes in spite of the efforts of the
Pension Benefit Guaranty Corporation, which opposes Harry &
David's move to end its pension plan and transfer it to PBGC.

"PBGC's mission is to protect pensions, and we've fought hard to
get Harry & David to keep their pensions going," said PBGC
Director Josh Gotbaum. "Unfortunately, they decided not to, and
the judge supported them."

Harry & David claimed it needed to terminate its pension plan
because its investors, the private equity firm Wasserstein
Partners LP, are unwilling to finance the pensions.  PBGC told the
court that the company could afford to keep the plan, and that the
termination was being undertaken largely to increase investor
returns, not out of necessity to emerge from bankruptcy.

If Harry & David's pension plan ends, PBGC will assume
responsibility and pay benefits up to the legal limits set by
Congress. PBGC said it would review the judge's decision and
decide whether or not to appeal.

                     About Harry & David

Medford, Oregon-based Harry & David Holdings, Inc. -- aka Bear
Creek Corporation; Bear Creek Direct Marketing, Inc.; Bear Creek
Stores, Inc.; Bear Creek Operations, Inc.; and Bear Creek
Orchards, Inc. -- is a multi-channel specialty retailer and
producer of branded premium gift-quality fruit and gourmet food
products and gifts marketed under the Harry & David(R),
Wolferman's(R) and Cushman's(R) brands.  It has 70 stores across
the country.

Harry & David Holdings filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 11-10884) on March 28, 2011.  Affiliates
Harry and David (Bankr. D. Del. Case No. 11-10885), Harry & David
Operations, Inc. (Bankr. D. Del. Case No. 11-10886), and Bear
Creek Orchards, Inc. (Bankr. D. Del. Case No. 11-10887) filed
separate Chapter 11 petitions.  The cases are jointly
administered, with Harry David Holdings as lead case.

David G. Heiman, Esq., Brad B. Erens, Esq., and Timothy W.
Hoffman, Esq., at Jones Day, are the Debtors' lead counsel.
Daniel J. DeFranceschi, Esq., Paul Noble Heath, Esq., and Zachary
Shapiro, Esq., at Richards Layton & Finger, serve as the Debtors'
local counsel.  Rothschild Inc. is the Debtors' investment banker.
Alvarez & Marsal LLC is the Debtors' financial advisor.  Garden
City Group Inc. is the Debtors' claims and notice agent.  McKinsey
Recovery & Transformation Services U.S. LLC is being tapped as
management consultants.

The Debtor also tapped DJM Realty Services, LLC, as real estate
consultants; Alvarez & Marsal North America to provide the Debtors
an interim chief executive officer and chief restructuring officer
and certain additional officers; and McKinsey Recovery &
Transformation Services U.S. LLC as their management consultant.

Kristopher M. Hansen, Esq., and Erez E. Gilad, Esq., at Stroock &
Stroock & Lavan LLP; Thomas B. Walper, Esq., at Munger, Tolles &
Olson LLP; and Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer
& Feld LLP are counsel to principal noteholders.  Moelis & Company
is the financial advisor to the principal noteholders.

Lowenstein Sandler has been retained as counsel to the unsecured
creditors committee.

The Debtors disclosed $304.3 million in total assets and
$360.8 million in total debts as of Dec. 25, 2010.

On April 7, 2011, the U.S. Trustee appointed an official committee
of unsecured creditors in the Debtors' cases.
and never has. Its operations are financed by insurance premiums
and with assets and recoveries from failed plans.


HAWAIIAN TELCOM: S&P Withdraws 'B-' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its preliminary
ratings on Hawaiian Telcom Holdco Inc. including the preliminary
'B-' corporate credit rating, at the company's request. "We also
withdrew preliminary ratings on the company's aggregate $330
million of secured credit facilities," S&P said.


HILTON NGUYEN: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Hilton Nguyen, LLC
        5190 Motel Court
        Mobile, AL 36619

Bankruptcy Case No.: 11-03134

Chapter 11 Petition Date: August 5, 2011

Court: United States Bankruptcy Court
       Southern District of Alabama (Mobile)

Debtor's Counsel: Barry A. Friedman, Esq.
                  BARRY A. FRIEDMAN AND ASSOCIATES P.C.
                  P.O. Box 2394
                  Mobile, AL 36652-2394
                  Tel: (251) 439-7400
                  E-mail: bky@bafmobile.com

Scheduled Assets: $7,998,751

Scheduled Debts: $8,192,569

A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/alsb11-03134.pdf

The petition was signed by Hong V. Nguyen, owner.


HOMELAND SECURITY: Inks Forbearance Pact with YA Global
-------------------------------------------------------
Homeland Security Capital Corporation entered into a Forbearance
Agreement by and among YA Global Investments, L.P., as lender,
Homeland Security Advisory Services, Inc., Celerity Systems, Inc.
and Nexus Technology Group, Inc., pursuant to which the Lender
agreed to forbear from exercising its rights and remedies under
the Financing Documents and applicable law with respect to one or
more Events of Default that have occurred and are continuing as a
consequence of the Company having failed to pay, when due at
maturity, all outstanding principal and accrued and unpaid
interest under the Company's outstanding debt with the Lender.

The forbearance period ends on the earlier of (i) Aug. 31, 2011,
and (ii) the occurrence of a "Termination Event," defined in the
Agreement as (a) the failure of the Company or any Guarantor to
perform or comply with any term or condition of the Agreement; (b)
the determination by the Lender that any warranty or
representation made by the Company or any Guarantor in connection
with the Agreement was false or misleading; (c) the occurrence of
a materially adverse change in or to the collateral granted to the
Lender under the Financing Documents or pursuant to the Agreement,
as determined by the Lender in its sole and exclusive discretion;
and (d) the occurrence of any default or Event of Default under
the Financing Documents.

As a condition to the entry to the Agreement, the Company has
undertaken to grant to the Lender a security interest in its Class
A membership interests in its subsidiary, Fiducia Holdings LLC,
and to cause Fiducia Holdings to guarantee the Company's
obligations to the Lender and grant a security interest in the
capital stock it owns in its subsidiary, Fiducia Real Estate
Holdings, Inc.

A full-text copy of the Forbearance Agreement is available for
free at http://is.gd/wOCcsP

                      About Homeland Security

Homeland Security Capital Corporation is an international provider
of specialized technology-based radiological, nuclear,
environmental disaster relief and electronic security solutions to
government and commercial customers.

At December 31, 2009, the Company had total assets of $35,815,519
against total liabilities of $38,018,448 and Warrants Payable --
Series H Preferred Stock of $169,768.  Stockholders' deficit was
$2,372,697 at December 31, 2009.

In March 2008, the Company entered into a stock purchase agreement
with YA Global Investments, L.P. pursuant to which the Company
sold to YA 10,000 shares of its Series H Convertible Preferred
Stock.  The Series H Stock is convertible into shares of Common
Stock at an initial ratio of 33,333 shares of Common Stock for
each share of Series H Stock, subject to adjustments -- including
the Company's wholly owned subsidiary, Safety & Ecology Holdings
Corporation, achieving certain earnings milestones, as defined,
for the calendar years ending December 31, 2009 and 2008.

Safety operates its business on a fiscal year ending June 30.
Safety achieved the first milestone for the calendar year ending
December 31, 2008.  However, the second financial milestone for
the calendar year ended December 31, 2009, has not been satisfied,
resulting in a potential adjustment to the conversion ratio
yielding approximately 56,300 shares of Common Stock for each
share of Series H Stock, or approximately a potential additional
230,000,000 shares of the Company's Common Stock in the aggregate.

Management is discussing with YA the possibility of a waiver or
amendment of any adjustment to the Series H Stock conversion
ratio, however there can be no assurances YA will waive or amend
the adjustment, if any, to the Series H Stock conversion ratio.
YA has not exercised its conversion rights as of February 22,
2010.

In June 2009 the Company entered into an agreement YA extending
the due date on its senior notes payable, and accrued interest, to
YA from March 14, 2010, until October 1, 2010, for $2,500,000 and
April 1, 2011, for $10,560,000.  In exchange, the Company agreed
to an increase in the interest rate, from 13% to 15%, on the
senior notes payable and certain other debt due to YA, effective
January 1, 2010, if the Company failed to secure a certain
contract by March 2010.  In December 2009, the Company was
informed that it had been eliminated from the award process for
this contract. Accordingly, the Company will begin recording
interest expense at the increased rate effective Jan. 1, 2010.


HUDSON HEALTHCARE: To Get $11-Mil. from State to Pay Creditors
--------------------------------------------------------------
Kristen MacBeth at BankruptcyHome.com reports that the Hoboken
Municipal Hospital Authority in New Jersey will receive
$11 million from the state to help pay off the hospital's
creditors.

Mayor Dawn Zimmer, who also serves on the HMHA board, said the
completion of Hoboken's bankruptcy will allow the hospital's new
owners to start fresh without any debts carrying over from the
previous ownership

                  About Hudson Healthcare

Hudson Healthcare Inc. is the nonprofit operator of Hoboken
University Medical Center in Hoboken, New Jersey.

Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J.
Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets
and debt of less than $50 million.  Attorneys at Trenk,
Dipasquale, Webster, et al., serve as counsel to the Debtor.

Affiliate Hoboken Municipal Hospital Authority also sought Chapter
11 protection.


INDYMAC BANCORP: Criminal Probes Said to Have Stalled
-----------------------------------------------------
Jean Eaglesham, writing for The Wall Street Journal, reports that
people familiar with the situation said federal criminal
investigations of IndyMac Bancorp and New Century Financial Corp.
have stalled and could result in no charges being filed.

The U.S. Attorney's Office for the Western District of Washington
in Seattle on Friday also closed the investigation stemming from
the September 2008 failure of Washington Mutual Bank.  The U.S.
Department of Justice has concluded that the evidence does not
meet the exacting standards for criminal charges in connection
with the bank's failure.

According to the WSJ report, all three separate investigations hit
major stumbling blocks.  People familiar with the matter told the
Journal the WaMu probe had been inactive for more than a year.
Sources also said the IndyMac and New Century investigations are
essentially dormant at the moment.

The Journal says a spokesman for the U.S. Attorney's office in Los
Angeles, which initiated the IndyMac and New Century
investigations, declined to comment.

The Journal notes, however, that the investigations haven't been
closed, meaning they could gain new momentum if fresh evidence
surfaces. A source told the Journal the U.S. Attorney's Office in
Brooklyn, N.Y., recently opened its own criminal investigation
into IndyMac.  The source said in the Brooklyn probe, which is
still at an early stage, prosecutors are looking at the
information IndyMac disclosed about the quality of home loans that
backed bonds it sold to investors.  It isn't clear if the scope of
the Brooklyn-based investigation is significantly different than
the Los Angeles one, but U.S attorneys have broad discretion to
determine which avenues to pursue.

The Journal says a spokesman for the U.S. Attorney's office in
Brooklyn declined to comment.

                          About Indymac

Based in Pasadena, California, IndyMac Bancorp Inc. (NYSE:IMB) --
http://www.indymacbank.com/-- was the holding company for IndyMac
Bank FSB, a hybrid thrift/mortgage bank that originated mortgages
in all 50 states of the United States.

On July 11, 2008, the Office of Thrift Supervision closed IndyMac
Bank and appointed FDIC as the bank's receiver.  Thacher Proffitt
& Wood LLP was engaged as counsel to the FDIC.

All non-brokered insured deposit accounts and substantially all of
the assets of the bank were transferred to IndyMac Federal Bank,
F.S.B., Pasadena, CA, a newly chartered full-service FDIC-insured
institution.  On March 19, IndyMac Federal Bank was sold to
OneWest Bank, F.S.B., Pasadena, California. OneWest Bank, FSB is a
newly formed federal savings bank organized by IMB HoldCo LLC.

Indymac Bancorp filed for Chapter 7 bankruptcy protection on
July 31, 2008 (Bankr. C.D.Calif., Case No. 08-21752).
Representing the Debtor are Dean G. Rallis, Jr., Esq., and John C.
Weitnauer, Esq.  Indymac had about $32.01 billion in assets as of
July 11, 2008.  In court documents, IndyMac disclosed estimated
assets of $50 million to $100 million and estimated debts of $100
million to $500 million.

                 About New Century Financial Corp.

Founded in 1995, Irvine, Calif.-based New Century Financial
Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real state
investment trust, providing mortgage products to borrowers
nationwide through its operating subsidiaries, New Century
Mortgage Corporation and Home123 Corporation.  The Company offers
a broad range of mortgage products designed to meet the needs of
all borrowers.

New Century Financial and its affiliates filed for Chapter 11
protection on April 2, 2007 (Bankr. D. Del. Case No. 07-10416).
Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana
Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A., were tapped as bankruptcy
counsel.  The Official Committee of Unsecured Creditors selected
Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its
co-counsel.  When the Debtors filed for bankruptcy, they listed
total assets of $36,276,815 and total debts of $102,503,950.

The Court confirmed the Debtors' second amended joint Chapter 11
plan of liquidation on July 15, 2008.

                    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.


INDUSTRIAL SUPPLIES: Files for Chapter 7 Bankruptcy
---------------------------------------------------
Philly.com reports that Industrial Supplies Inc., 412 S. Wade
Blvd., Millville, filed for Chapter 7 in the U.S. Bankruptcy Court
for the District of New Jersey.  There is no schedules available.


JACKSON HEWITT: Court Confirms Plan Reorganization
--------------------------------------------------
Jackson Hewitt Tax Service Inc. has received confirmation of its
"pre-packaged" Plan of Reorganization (the "Plan") from the U.S.
Bankruptcy Court in Delaware, which has been overseeing the
Company's Chapter 11 proceedings following its voluntary filing on
May 24, 2011.  This action clears the way for Jackson Hewitt's
Plan to become effective in the very near future, enabling it to
emerge from its court-supervised financial restructuring, a
process which has been completed in 75 days.

Under its Court confirmed Plan of Reorganization, Jackson Hewitt
will emerge as a private company.  The majority owner of Jackson
Hewitt's new equity will be Bayside Capital, an affiliate of
Miami, FL-based H.I.G. Capital, and the largest holder of Jackson
Hewitt's secured debt prior to its restructuring.  A new five-
member Board of Directors will be named and become effective on
emergence.  Under the Plan, approximately two-thirds of Jackson
Hewitt's term debt was forgiven in exchange for newly issued
common equity on emergence. Jackson Hewitt's pre-emergence common
stock will be extinguished on emergence in accordance with the
Plan.

"[This] marks the exciting beginning of the new Jackson Hewitt,"
stated Philip H. Sanford, president and chief executive officer of
Jackson Hewitt.  "With the strong support of our lenders, we have
moved through this process with speed and efficiency, and are
poised to emerge highly-energized and financially healthy.

"We are well positioned to succeed and grow our business going
forward," continued Sanford.  "We are coming off of a 2011 tax
season in which we achieved 3% growth in tax returns prepared -
our first growth in tax returns prepared in five years.  We also
grew our top line, while achieving 4% growth in adjusted EBITDA.
The results we achieved in our Walmart U.S. stores distribution
channel were excellent, and we look forward to further expansion
of this important relationship.  We will build on this positive
momentum as we progress with our preparations for a successful
2012 tax season and beyond.

"[This] is also a great day for all of our key constituents. Our
clients, franchisees, employees and business partners can be
confident in our future.  We move forward with a strong balance
sheet, a fully funded business plan, a seasoned and stable
management team, and the ability to make investments that will
better position us to compete and win in the market place.  As
always, we remain committed to providing quality, accurate tax
preparation services that meet the needs, and exceed the
expectations, of our valued clients," concluded Sanford.

Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka
JHTS Inc., provides computerized preparation services for federal,
state and local individual income tax returns in the United States
through a nationwide network of franchised and company-owned
offices operating under the brand name Jackson Hewitt Tax Service.
The Company has 700 franchisees who collectively operated a total
of 4,846 offices.  The Company also operates 1,110 company-owned
offices.

        Settlement With Committee Paved Way for Plan OK

Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Jackson Hewitt Tax Service Inc. had been facing a
confirmation hearing Aug. 8 where the official unsecured
creditors' committee would oppose approval of the Chapter 11 plan.
The committee was in opposition because their constituency was to
receive nothing.

Mr. Rochelle relates that opposition turned into support when the
secured lenders, who are to end up owning Jackson Hewitt, agreed
to create a $1.1 million cash fund for distribution to unsecured
creditors.  There are other objections still to be resolved or
tossed out by the bankruptcy judge at the Aug. 8 hearing.

The confirmation hearing originally had been scheduled for July 8.
It was pushed back one month due to the creditors' opposition. To
confirm the plan, the judge will nonetheless be obliged to use the
cramdown procedure because the classes of unsecured and
subordinated creditors voted against the plan.

The plan, negotiated before Jackson Hewitt's Chapter 11 filing in
late May, gives all the new stock along with a new $100 million
term loan to secured lenders owed $357 million.   The lenders
unanimously voted in favor of the plan.

                    First Amended Prepack Plan

BankruptcyData.com reports that Jackson-Hewitt Tax Service filed
with the U.S. Bankruptcy Court an Amended Joint Prepackaged
Chapter 11 Plan of Reorganization.

According to the Disclosure Statement, "In accordance with
Bankruptcy Rule 9019, the Plan constitutes a good faith compromise
and settlement among the Debtors, the Lenders, the Administrative
Agent and the Creditors' Committee, regarding the treatment of the
General Unsecured Claims under the Plan, and reflects and
implements such compromise and settlement, including by
establishment of the Post Effective Date Trust and transfer of the
Post Effective Date Initial Funding and the Transferred Avoidance
Actions into the Post Effective Date Trust. Such compromise and
settlement is made in exchange for consideration and is in the
best interests of the Debtors, the Estates, the Lenders, the
Administrative Agent and the Holders of General Unsecured Claims;
is within the reasonable range of possible litigation outcomes, is
fair, equitable and reasonable and is an essential element of the
resolution of these Chapter 11 Cases. The compromise and
settlement embodied in this Plan: (i) falls within the
jurisdiction of the Court under 28 U.S.C.  1334(a), (b) and (d);
(ii) is an essential means of implementing the Plan pursuant to
section 1123(a)(5) of the Bankruptcy Code; (iii) is an integral
element of the transactions incorporated in the Plan; (iv) confers
a material benefit on, and is in the best interests of, the
Debtors, the Estates and holders of General Unsecured Claims; (v)
is vital to the overall objectives of the Plan to finally resolve
all Claims; and (vi) is consistent with sections 105, 1123 and
1129 of the Bankruptcy Code and other applicable provisions of the
Bankruptcy Code."

The Company also filed Plan Supplements for its Chapter 11 Plan of
Reorganization.

                       About Jackson Hewitt

Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka
JHTS Inc., provides computerized preparation services for federal,
state and local individual income tax returns in the United States
through a nationwide network of franchised and company-owned
offices operating under the brand name Jackson Hewitt Tax Service.
The Company has 700 franchisees who collectively operated a total
of 4,846 offices.  The Company also operates 1,110 company-owned
offices.

Jackson Hewitt and its affiliates filed for Chapter 11 bankruptcy
(Bankr. D. Del. Lead Case No. 11-11587) on May 24, 2011.  Judge
Mary F. Walrath presides over the case.  Skadden, Arps, Slate,
Meagher & Flom LLP, serves as the Debtors' bankruptcy counsel.
Alvarez & Marsal North America, LLC, serves as their financial
advisor.  Moelis & Company LLC acts as investment banker.  The
Garden City Group, Inc., serves as the Debtors' Claims and
Noticing Agent.  The Debtors also tapped Deloitte & Touche to
serve as tax advisors and Kekst & Company to serve as
communications advisors.

BDO Financial serves as financial advisors to the Official
Committee of Unsecured Creditors.

The Debtors filed a Joint Prepackaged Plan of Reorganization and
Disclosure Statement together with their petitions.  Under the
terms of the Plan, Jackson Hewitt's current secured lenders will
receive their pro rata share of a new $100 million term loan and
all of the equity in the reorganized enterprise.  The Company also
anticipates entering into a new $115 million revolving credit
facility upon consummation of the Plan.  It is anticipated that
upon consummation of the proposed Plan, Jackson Hewitt's new
equity will be privately held.  All of the Company's existing
common stock will be cancelled upon Jackson Hewitt's emergence
from bankruptcy.

On May 23, 2011, the Debtors commenced solicitation of votes on
the Plan from the lenders.  No other classes of creditors or
stockholders were solicited, as each such class is either being
paid in full or receiving no recovery and hence, is deemed either
to accept or reject the Plan, respectively.  The Debtors received
overwhelming acceptances to the Plan from the lenders.

Mark McDermott, Esq., at Skadden Arps, told the Bankruptcy Court
at a May 25 hearing that investor and financier Bayside Capital is
in line to be "a significant majority" owner of Jackson Hewitt.
Bayside Capital has $4.5 billion under management.  Bayside is the
largest of 10 secured lenders that Jackson Hewitt owes a total of
$357 million.

Mr. McDermott also told the Court that Jackson Hewitt, worth an
estimated $225 million, does not have sufficient value to cover
the secured debt.

The Court set a July 8 court date to consider confirmation of
Jackson Hewitt's Chapter 11 plan.  But the unsecured creditors won
an extra month to investigate the company's prepackaged
reorganization plan and secured resources for the effort after a
judge refused to place a hard cap on attorneys' fees.


JEFFERSON, AL: Submits Counteroffer to Bondholders
--------------------------------------------------
Samuel Howard at Bankruptcy Law360 reports that commissioners for
Jefferson County, Ala., reportedly submitted a counteroffer to
bondholders on Friday to refinance roughly $3.2 billion debt and
stave off what could be the largest municipal bankruptcy on
record.

According to Law360, the county commission has postponed voting on
a chapter 9 filing until the week's end as its feels out a truce
with Wall Street banks and other bondholders that financed an
overhaul of the county's crumbling sewer system a decade ago, a
project ultimately mired in corruption and failed derivatives
transactions.

                     About Jefferson County

Jefferson County has its seat in Birmingham, Alabama.  It has a
population of 660,000.  It ended its 2006 fiscal year with a
$42.6 million general fund balance, according to Standard &
Poor's.

Jefferson County is trying to restructure $3.2 billion in sewer
debt.  A bankruptcy by Jefferson County stands to be the largest
municipal bankruptcy in U.S. history.  It could beat the record of
$1.7 billion set by Orange County, California in 1994.

In September 2010, Alabama Circuit Court Judge Albert Johnson
named John S. Young Jr. LLC as receiver for the sewer system.

Jefferson County has retained Kenneth Klee, Esq., at Klee Tuchin
Bogdanoff & Stern LLP to represent the county in the event of
bankruptcy.  Mr. Klee is considered to be a municipal-bankruptcy
expert, having handled Orange County, Calif.'s bankruptcy case in
1994.


JIN SUK KIM TRUST: Court Rejects Bid to Dismiss Case
----------------------------------------------------
La Union Center LLC seeks dismissal of the Chapter 11 case of Jin
Suk Kim Trust d/b/a La Union Mall, claiming that the Debtor is not
eligible to file a bankruptcy petition because it is not a
"business trust."  The Debtor opposes the dismissal motion.  The
Court concludes that the Debtor is a "business trust" as that term
is used in 11 U.S.C. Sec. 101(9)(A)(v) and denied the motion to
dismiss.  A copy of Bankruptcy Judge Thomas J. Catliota's Aug. 8,
2011 Memorandum of Decision is available at http://is.gd/0RkJA2
from Leagle.com.

Jin Suk Kim Trust, dba La Union Mall, filed for Chapter 11 (Bankr.
D. Md. Case No. 11-14033) on March 1, 2011, listing under $50,000
in both assets and debts.  A copy of the petition is available at
no charge at http://bankrupt.com/misc/mdb11-14033.pdf The Trust
is represented by:

          Janet M. Nesse, Esq.
          STINSON MORRISON HECKER LLP
          1150 18th Street, N.W., Suite 800
          Washington, DC 20036-3816
          Tel: 202-785-9100
          Fax: 202-785-9163
          E-mail: jnesse@stinson.com

Affiliate Jin Suk Kim filed for Chapter 11 bankruptcy (Bankr. D.
Md. Case No. 10-18008) on April 12, 2010.


LAFARGE NORTH AMERICA: Demoted to Top Junk by Moody's
-----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Lafarge North America Inc., a producer of cement and
cement-related products, lost investment-grade status on Aug. 5
from Moody's Investors Service when the senior unsecured rating
was lowered one peg to Ba1, the highest junk grade.  Standard &
Poor's made a similar move to junk in March.  Lafarge's French
parent, Lafarge SA, received an identical downgrade to top junk.
Moody's noted that most of the funded debt is at the parent level
and thus structurally subordinated to trade debt.

Lafarge North America, based in Herndon, Virginia, was acquired in
2006 in a $2.95 billion transaction. The parent's $600 million in
7.125% senior unsecured notes due 2036 traded on Aug. 5 at 93.8
cents on the dollar, to yield 7.69%, according to Trace, the bond-
price reporting system of the Financial Industry Regulatory
Authority.


LAX ROYAL: MSCI Granted Relief From Stay as to L.A. Property
------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has granted MSCI 2006-IQ11 West Century Limited Partnership to
lift the automatic stay with respect to the real property owned by
Lax Royal Airport Center, LP, at 5933 West Century Boulevard, in
Los Angeles, California.

The Lender will be granted relief from stay on September 16, 2011,
unless the Debtor will complete one of the following no later than
September 16, 2011:

     a) The Debtor will pay all past due contract interest and
        late charges, plus all undisputed out of pocket costs, to
        the Lender.  To the extent there is any dispute concerning
        the amount of out of pocket expenses or the payment of
        default interest, all sums in dispute will be escrowed in
        a segregated account.

     b) The Debtor will file and set for hearing on October 19,
        2011, at 2:00 p.m., a motion for approval of the sale of
        the Debtors' interest in the subject real property,
        pursuant to which sale the indebtedness owed to the
        Lender will be paid in full.

     c) The Debtor will file a new Disclosure Statement and Plan
        which consists of a transaction(s) which will generate
        within a reasonable time enough new money to cure the
        defaults under the Lender's secured loan in full and which
        plan is otherwise confirmable within a reasonable time.
        If a new disclosure statement and plan are filed by
        September 16, 2011, the hearing on approval of the
        disclosure statement will be set for October 19, 2011, at
        2:00 p.m.

MSCI is represented by:

   H. Mark Mersel, Esq.
   Sheri Kanesaka, Esq.
   Bryan Cave LLP
   Irvine, CA 92612
   Tel: (949)223-7000
   Fax: (949)223-7100
   E-mail: mark.mersel@bryancave.com

                About LAX Royal Airport Center, LP

Los Angeles, California-based LAX Royal Airport Center, LP, filed
for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No.
11-12333) on Jan. 19, 2011.  The Debtor estimated assets at
$10 million to $50 million and debts at $1 million to $10 million.
Michael N. Sofris, Esq., represent the Debtor as counsel.  No
request for the appointment of a trustee or examiner was made.


LESLIE CONTROLS: Dismissal of 2 Asbestos Cases Reversed
-------------------------------------------------------
The Court of Appeals of Washington, Division One, reversed the
trial court's dismissal of two personal injury lawsuits against
manufacturers and suppliers of asbestos-containing products or
equipment used on United States Navy vessels at the Puget Sound
Naval Shipyard:

     (1) Abbay v. Aurora Pump Company

George Abbay and his spouse Lynne Abbay appeal summary judgment
dismissal of the personal injury lawsuit.  In an effort to prevent
the respondents from seeking removal to federal court, Abbay
disclaimed "any cause of action or recovery for any injuries
caused by any exposure to asbestos dust that occurred in a federal
enclave, which expressly excludes U.S. Navy vessels."  In the
briefs submitted in opposition to summary judgment, Abbay
clarified that the disclaimer excludes his causes of action under
state law for exposure to asbestos while working on U.S. Navy
vessels at PSNS. On reconsideration, the trial court applied the
rules of grammar in ruling that Abbay disclaimed all state law
causes of action that occurred at PSNS, including causes of action
from exposure to asbestos on Navy ships.

The Court of Appeals concluded that grammatical rules do not
require interpreting the relative clause, "which expressly
excludes U.S. Navy vessels," as only applying to the antecedent
noun, "federal enclave," and the meaning of the disclaimer is
ambiguous.  As clarified in the briefs, the disclaimer does not
exclude Abbay's state law causes of action from exposure to
asbestos while working on U.S. Navy vessels.  Accordingly, the
Court of Appeals said it need not address whether the trial court
erred in ruling that as a matter of law, PSNS in its entirety, is
a federal enclave.  The Court of Appeals reversed dismissal of
Abbay's lawsuit and remanded the matter.

George Abbay worked for about 26 years as a ship rigger on United
States Navy vessels that were in dry dock or moored to piers at
PSNS.  In August 2007, he was diagnosed with malignant pleural
mesothelioma, a form of cancer caused by exposure to asbestos.

Leslie Controls is a respondent in the appeal.  All proceedings in
this matter against Leslie are stayed as a result of its
bankruptcy filing.

Garlock Sealing Technologies is an original defendant in the
matter but not a respondent on appeal.  Garlock has obtained a
preliminary injunction staying all proceedings against it.

A copy of the Court's Aug. 8 decision is available at
http://is.gd/NIMHeYfrom Leagle.com.

     (2) Farrow v. Alfa Laval, Inc.

Michael Farrow and his spouse Lidia Farrow filed a personal injury
lawsuit against a number of manufacturers and suppliers of
asbestos-containing products used on United States Navy vessels at
the Puget Sound Naval Shipyard.  In an attempt to avoid removal to
federal court, the complaint disclaims "any cause of action or
recovery for any injuries caused by exposure to asbestos dust that
occurred in a federal enclave, which expressly excludes U.S. Navy
vessels."  The trial court ruled on summary judgment that the
language of the disclaimer was unambiguous and meant that Farrow
waived all claims from asbestos exposure that occurred at PSNS.
In the linked case, Abbay v. Aurora Pump Co., No. 62399-1-I, the
Court of Appeals held that because the exact same disclaimer
language is ambiguous and susceptible to two reasonable
interpretations, the plaintiff was entitled to clarify the meaning
of the disclaimer in the written response filed in opposition to
summary judgment.  The Court of Appeals reversed the dismissal of
Farrow's lawsuit, and remanded the matter.

A copy of the Court's Aug. 8 decision is available at
http://is.gd/ugC9lpfrom Leagle.com.

Farrow died in May 2008.

Garlock Sealing Technologies and Leslie Controls are respondents
in the appeal.

                      About Leslie Controls

Based in Tampa, Florida, Leslie Controls manufacturers process
control valves, severe service control valves, on-off valves,
regulators, steam water heaters, actuators and controls.
Leslie is a unit of CIRCOR International, Inc.

Leslie Controls sought Chapter 11 bankruptcy protection (Bankr.
D. Del. Case No. 10-12199) on July 12, 2010.  Marion M. Quirk,
Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel,
Forman & Leonard, assist the Company in its restructuring
effort.  Natalie Ramsey, Esq., at Montgomery, McCracken,
Walker & Rhodes, LLP, represents the Asbestos Claimants
Committee, and Edwin J. Heron, Esq., at Young, Conaway,
Stargatt & Taylor, LLP, represents the Future Claimants'
Representative.  William R. Hanlon, Esq., at Goodwin Procter
LLP advises CIRCOR International, Inc.  The Company estimated
its assets at $10 million to $50 million and its debts at
$50 million to $100 million at that the time of the filing.

As reported by the Troubled Company Reporter, the Bankruptcy Court
entered an order on October 28, 2010, confirming the amended
prenegotiated Chapter 11 reorganization plan filed by Leslie
Controls, Inc., on July 12, 2010.  The reorganization plan is
intended to permanently resolve Leslie's asbestos liability
through the creation of a trust pursuant to Section 524(g) of the
U.S. Bankruptcy Code.  All current and future asbestos claims
against Leslie would be channeled to the trust for review and
payment, thus providing both Leslie and CIRCOR with permanent
court protection from such claims.

In February 2011, the U.S. District Court for the District of
Delaware affirmed the U.S. Bankruptcy Court's confirmation of the
amended pre-negotiated Chapter 11 reorganization plan filed by
Leslie Controls.  Leslie Controls emerged from Chapter 11 in April
2011.

                     About Garlock Sealing

Headquartered in Palmyra, New York, Garlock Sealing Technologies
LLC is a unit of EnPro Industries, Inc. (NYSE: NPO).  For more
than a century, Garlock has been helping customers efficiently
seal the toughest process fluids in the most demanding
applications.

On June 5, 2010, Garlock filed a voluntary Chapter 11 petition
(Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina,
to establish a trust to resolve all current and future asbestos
claims against Garlock under Section 524(g) of the U.S. Bankruptcy
Code.  The Debtor estimated $500 million to $1 billion in assets
and up to $500 million in debts as of the Petition Date.
Affiliates The Anchor Packing Company and Garrison Litigation
Management Group, Ltd., also filed for bankruptcy.

The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas.  Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.

Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort.  Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for asbestos matters.

The Official Committee of Asbestos Personal Injury Claimants in
the Chapter 11 cases is represented by Travis W. Moon, Esq., at
Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC,
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New
York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and
Jeanna Rickards Koski, Esq., in Washington, D.C. 20005.

Joseph W. Grier, III, the Court-appointed legal representative for
future asbestos claimants, has retained A. Cotten Wright, Esq., at
Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan
P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co-
counsel.

About 124,000 asbestos claims are pending against Garlock in state
and federal courts across the country.  The Company says majority
of pending asbestos actions against it is stale and dormant --
almost 110,000 or 88% were filed more than four years ago and more
than 44,000 or 35% were filed more than 10 years ago.


LENNY DYKSTRA: September Hearing On Grand Theft Auto Charges
------------------------------------------------------------
Dan Whitcomb, writing for Reuters, reports that a Los Angeles
judge on Monday set a September pretrial hearing for former New
York Mets star Lenny Dykstra on grand theft auto charges.  The
report says Mr. Dykstra, 48, entered a second not guilty plea in
the case, which stems from what prosecutors say was a scheme to
lease cars using phony business and credit information.

Reuters recounts Mr. Dykstra was charged in June 2011 with 25
counts of grand theft auto, attempted grand theft auto, filing
false financial statements and possessing a controlled substance.
He faces 12 years in prison if he is convicted.  In July 2011,
following a preliminary hearing, a Los Angeles Superior Court
judge ordered Mr. Dykstra to stand trial, along with his
accountant, Robert Hymers and friend Christopher Gavanais.
Prosecutors said Messrs. Dykstra, Hymers and Gavanais ran a scheme
to lease high-end automobiles from dealerships using fraudulent
information and claiming credit through a phony business, Home
Free Systems.  An unrelated indictment handed down by a federal
grand jury in May 2011 accuses Mr. Dykstra of stealing or
destroying some $400,000 in property that was part of his
bankruptcy case.  Mr. Dykstra faces up to 80 years in federal
prison if convicted in that case, according to federal
prosecutors.

                       About Lenny Dykstra

Lenny Dykstra is a former Major League Baseball all-star player.
He was center fielder for the New York Mets and Philadelphia
Phillies.  He filed for Chapter 11 bankruptcy protection (Bankr.
C.D. Calif. Case No. 09-18409) on July 7, 2009, in Woodland Hills,
California.  The Law Office of M. Jonathan Hayes, in Northridge,
California, represents the Debtor.  The Debtor estimated up to
$50,000 in assets and $10 million to $50 million in debts in his
Chapter 11 petition.

A Chapter 11 trustee was appointed in September 2009, and the case
was converted to a liquidation in Chapter 7 on November 20, 2009.
The trustee -- Arturo M. Cisneros -- was investigating the
disposition of personal property both before and after the Chapter
11 filing.

In August 2010, Mr. Cisneros stepped down as Chapter 7 trustee
following issues with his failing to disclose the extent of his
business with J.P. Morgan Chase & Co., which happens to be largest
creditor in Mr. Dykstra's case.


LEVEL 3: To Hold Advisory Vote on Exec. Compensation Every Year
---------------------------------------------------------------
Level 3 Communications, Inc., held its 2011 annual meeting of
stockholders on May 20, 2010.  At the Annual Meeting, the
stockholders, among other things, approved a proposal to conduct
an advisory vote on the executive compensation program for the
Company's named executive officers every year.

                    About Level 3 Communications

Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.

The Company's balance sheet at June 30, 2011, showed $8.86 billion
in total assets, $9.29 billion in total liabilities, and a
$432 million total stockholders' deficit.

Level 3 Communications carries a 'Caa1' corporate family rating,
and 'Caa2' probability of default rating, with negative outlook
from Moody's, a 'B-' issuer default rating from Fitch, and 'B-'
long term issuer credit ratings from Standard & Poor's.


LITTLETON APARTMENTS: Taps Neligan Foley as Bankruptcy Counsel
-------------------------------------------------------------
Littleton Apartments LLC and MS 128 Littleton Limited Partnership,
ask the U.S. Bankruptcy Court for the Northern District of Texas
for permission to employ Neligan Foley LLP as their counsel to
perform the legal services that will be necessary during the
Chapter 11 cases.

Nicholas A. Foley, a partner in Neligan Foley tells the Court that
prior to the Petition Date, Neligan Foley received a deposit of
$150,000 from the Debtors.  Neligan Foley applied $30,361 of the
funds to prepetition fees and expenses.  Thus, Neligan Foley
is now holding $119,638 in trust for the Debtors.

To the best of the Debtors' knowledge, Neligan Foley is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

The Debtors set an Aug. 24, at 9:30 a.m., hearing on the requested
employment of Neligan Foley.

                    About Littleton Apartments

Based in Dallas, Texas, Littleton Apartments LLC, owns a newly
constructed 350-unit luxury apartment property in downtown
Littleton, Colorado, known as the "Alexan Downtown Littleton".  MS
128 Littleton Limited Partnership owns 100% of the membership
interests in Littleton and has no other assets.  Neither Littleton
nor MS 128 have any employees.  The Property is managed by GREP
Southwest, LLC d/b/a Greystar, pursuant to a Management Agreement.

Littleton and MS 128 filed separate Chapter 11 petitions (Bankr.
N.D. Tex. Case Nos. 11-34564 and 11-34563) on July 14, 2011.  The
cases are jointly administered.  Judge Stacey G. Jernigan presides
over the cases.  Patrick J. Neligan, Jr., Esq., at Neligan Foley
LLP, serves as counsel.  In its petition, Littleton Apartments
estimated assets and debts of $50 million to $100 million.  The
petitions were signed by Timothy J. Hogan, vice president.


LOS ANGELES DODGERS: Judge OKs $150 Million DIP Loan from MLB
-------------------------------------------------------------
Pete Brush at Bankruptcy Law360 reports that a Delaware bankruptcy
judge on Monday gave the green light for the Los Angeles Dodgers
to borrow $150 million from Major League Baseball after the once-
proud franchise, bleeding cash, struck out on a bid to borrow from
a hedge fund.

The organization, which filed an operating report Friday saying
its affiliates lost more than $4.2 million from June 1 through
June 30, will borrow the debtor-in-possession financing from the
league's Baseball Finance LLC, according to Law360.

                   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.  Thomas Lauria, Esq., at White & Case,
represents MLB.

Attorneys at Morrison & Foerster LLP and Pinckney, Harris &
Weidinger, LLC, serve as counsel to the Official Committee of
Unsecured Creditors.

The LA Dodgers is the 12th professional sports team in North
America to have sought bankruptcy protection, and the fifth
baseball club to have done so, after the Texas Rangers in 2010;
the Chicago Cubs in 2009; the Baltimore Orioles in 1993; and the
Seattle Pilots in 1970.  The other seven teams were from the
National Hockey League, including the Phoenix Coyotes in 2009.


LOS ANGELES DODGERS: Can Pay Up to $1.1-Mil Critical Vendor Claims
------------------------------------------------------------------
Judge Kevin Gross has authorized Los Angeles Dodgers LLC to pay
prepetition claims owed to critical vendors in an aggregate amount
not to exceed $1.1 million, provided that the payments may only be
made in accordance with any postpetition financing order.

The Court also direct the Debtor's banks to continue to honor and
pay checks issued prepetition on account of critical vendor claims
that have yet to be cashed to ensure that these essential goods
and services will continue to be available to the Debtors without
interruption.

                   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.  Thomas Lauria, Esq., at White & Case,
represents MLB.

Attorneys at Morrison & Foerster LLP and Pinckney, Harris &
Weidinger, LLC, serve as counsel to the Official Committee of
Unsecured Creditors.

The LA Dodgers is the 12th professional sports team in North
America to have sought bankruptcy protection, and the fifth
baseball club to have done so, after the Texas Rangers in 2010;
the Chicago Cubs in 2009; the Baltimore Orioles in 1993; and the
Seattle Pilots in 1970.  The other seven teams were from the
National Hockey League, including the Phoenix Coyotes in 2009.


MACCO PROPERTIES: Trustee Wants Redmond & Nazar for Parkwood Suit
-----------------------------------------------------------------
Michael E. Deeba, as Chapter 11 trustee in the case of Macco
Properties Inc., asks the U.S. Bankruptcy Court for the Western
District of Oklahoma for permission to retain W. Thomas Gilman of
the firm of Redmond & Nazar, LLPC as special counsel.

Macco is the 100% owner and the controlling member of LP Parkwood
Village Apartments, L.L.C., an Oklahoma limited liability company,
which owns and operates an apartment complex located in Wichita,
Sedgwick County, Kansas.  Pursuant to the Oklahoma Limited
Liability Company Act, Macco's membership interest constitutes the
personal property of the member.  Upon Macco's bankruptcy filings,
Macco effectively transferred its interest to the Bankruptcy
estate.  Because there are no other members in the majority of
Parkwood Village, other than Macco, the entire membership interest
in Parkwood Village passed to the Bankruptcy estate, and the
trustee is a substituted member.

Parkwood Village failed to pay the ad valorem taxes on the
apartment complex located in Wichita, Sedgwick County, Kansas.  As
a result of the failure to pay ad valorem taxes, Sedgwick County
has filed tax liens on the property, and on June 1, 2011, filed an
action in the 18th Judicial District Court for Sedgwick County,
Kansas, Civil Department, seeking to foreclose its tax liens by
selling said property.

Redmond & Nazar will represent the trustee, as the sole member/
manager of Parkwood Village.

The hourly rates of the firm's personnel are:

         Partners             $225 - $285
         Associates              $185
         Legal Assistants         $75

To the best of the trustee's knowledge, the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                      About Macco Properties

Oklahoma City, Oklahoma-based Macco Properties, Inc., filed for
Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-
16682) on Nov. 2, 2010.  G. Rudy Hiersche, Jr., Esq., at the
Hiersche Law Firm, serves as the Debtor's bankruptcy counsel.  The
Debtor disclosed $50,823,581 in total assets, and $4,323,034 in
total liabilities.

Richard A. Wieland, the U.S. Trustee for Region 20, appointed
three members to the Official Committee of Unsecured Creditors.
The Committee is represented by Ruston C. Welch, at Welch Law
Firm, P.C., in Oklahoma City, Oklahoma.  The Committee tapped
Dennis Maley, CPA, as accountant.

Receivership Services Corp., a division of the Martens Cos., has
been named by the Court as property manager for the six Wichita
apartment complexes caught up in the bankruptcy of Macco
Properties of Oklahoma City.

W. Thomas Gilman of the firm of Redmond & Nazar, LLPC serves as
special counsel to Michael E. Deeba, Chapter 11 trustee.  Price
Edwards & Company serves as trustee's property manager.


MACCO PROPERTIES: Bellingham & Loyd Okayed to Represent Trustee
---------------------------------------------------------------
The Hon. Niles Jackson of the U.S. Bankruptcy Court for the
Western District of Oklahoma authorized Michael E. Deeba, Chapter
11 trustee in the case of Macco Properties Inc., to retain Janice
D. Loyd and James H. Bellingham of the firm of Bellingham & Loyd,
P.C. as his counsel.

As reported in the Troubled Company Reporter on June 17, 2011,
Bellingham & Loyd, is expected to, among other things:

   a. advise trustee with respect to his rights, duties and
      obligations as Trustee and regarding other matters of
      bankruptcy law;

   b. assist in the preparation and filing of all pleadings and
      documents which may be required in these proceedings,
      including, but not limited to Plan of Liquidation and
      Disclosure Statement; and

   c. assist in claims review and objection process in
      analyzing and identifying claims against the estate

Bellingham & Loyd's rates are:

      Personnel                     Rate
      ---------                     ----
       Partner                     $250
       Associate                   $175
      Legal Assistant               $75

                      About Macco Properties

Oklahoma City, Oklahoma-based Macco Properties, Inc., filed for
Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-
16682) on Nov. 2, 2010.  G. Rudy Hiersche, Jr., Esq., at the
Hiersche Law Firm, serves as the Debtor's bankruptcy counsel.  The
Debtor disclosed $50,823,581 in total assets, and $4,323,034 in
total liabilities.

Richard A. Wieland, the U.S. Trustee for Region 20, appointed
three members to the Official Committee of Unsecured Creditors.
The Committee is represented by Ruston C. Welch, at Welch Law
Firm, P.C., in Oklahoma City, Oklahoma.  The Committee tapped
Dennis Maley, CPA, as accountant.

Receivership Services Corp., a division of the Martens Cos., has
been named by the Court as property manager for the six Wichita
apartment complexes caught up in the bankruptcy of Macco
Properties of Oklahoma City.

Janice D. Loyd and James H. Bellingham of the firm of Bellingham &
Loyd, P.C. represents Michael E. Deeba, Chapter 11 trustee.  W.
Thomas Gilman of the firm of Redmond & Nazar, LLPC serves as
special counsel.  Price Edwards & Company serves as trustee's
property manager.


MACCO PROPERTIES: Christopher Stein OK'd as Trustee's Counsel
-------------------------------------------------------------
The Hon. Niles Jackson of the U.S. Bankruptcy Court for the
Western District of Oklahoma authorized Michael E. Deeba, Chapter
11 Trustee in the case of Macco Properties, Inc., to retain
Christopher T. Stein, of counsel to the firm of Bellingham & Loyd,
P.C., as his legal counsel.

Mr. Stein is expected to, among other things:

   a. advising the trustee with respect to his rights, duties and
   obligations as Trustee and regarding other matters of
   bankruptcy law;

   b. assist in preparation and filing of all pleadings and
   documents which may be required in these proceedings,
   including, but not limited to Plan of Liquidation and
   Disclosure Statement; and

   c. assist in claims review and objection process in analyzing
   and identifying claims against the estate.

The hourly rates of Bellingham & Loyd are:

         Partner                        $250
         Of Counsel                     $200
         Associate                      $175
         Legal Assistant                 $75

To the best of the trustee's knowledge, Mr. Stein is a
"disinterested person" as that term is defined in section 101(14)
of the Bankruptcy Code.

                      About Macco Properties

Oklahoma City, Oklahoma-based Macco Properties, Inc., filed for
Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-
16682) on Nov. 2, 2010.  G. Rudy Hiersche, Jr., Esq., at the
Hiersche Law Firm, serves as the Debtor's bankruptcy counsel.  The
Debtor disclosed $50,823,581 in total assets, and $4,323,034 in
total liabilities.

Richard A. Wieland, the U.S. Trustee for Region 20, appointed
three members to the Official Committee of Unsecured Creditors.
The Committee is represented by Ruston C. Welch, at Welch Law
Firm, P.C., in Oklahoma City, Oklahoma.  The Committee tapped
Dennis Maley, CPA, as accountant.

Receivership Services Corp., a division of the Martens Cos., has
been named by the Court as property manager for the six Wichita
apartment complexes caught up in the bankruptcy of Macco
Properties of Oklahoma City.

Michael E. Deeba, Chapter 11 trustee is represented by Christopher
T. Stein, of counsel to the firm of Bellingham & Loyd, P.C., and
Janice D. Loyd and James H. Bellingham of Bellingham & Loyd, P.C.
W. Thomas Gilman of the firm of Redmond & Nazar, LLPC serves as
special counsel.  Price Edwards & Company serves as trustee's
property manager.


MAUI LAND: Incurs $2.4 Million Net Loss in June 30 Quarter
----------------------------------------------------------
Maui Land & Pineapple Company, Inc., filed with the U.S.
Securities and Exchange Commission its quarterly report on form
10-Q reporting a net loss of $2.46 million on $5.23 million of
total operating revenues for the three months ended June 30, 2011,
compared with a net loss of $4.58 million on $6.28 million of
total operating revenues for the same period during the prior
year.

The Company also reported net income of $9.96 million on $11.64
million of total operating revenues for the six months ended
June 30, 2011, compared with a net loss of $7.29 million on $13.87
million of total operating revenues for the same period a year
ago.

The Company's balance sheet at June 30, 2011, showed $71.61
million in total assets, $86.57 million in total liabilities,
current and long-term, and a $14.96 million stockholders'
deficiency.

"While the Company still faces many challenges, we continue to
make steady progress towards resolving our legacy issues, and
restructuring and streamlining our operations," said Tim Esaki,
Chief Financial Officer.

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/4nIxoH

                 About Maui Land & Pineapple Company

Maui Land & Pineapple Company, Inc. (NYSE: MLP)
-- http://mauiland.com/-- develops, sells, and manages
residential, resort, commercial, and industrial real estate.  The
Company owns approximately 23,000 acres of land on Maui and
operates retail, utility operations, and a nature preserve at the
Kapalua Resort.  The Company's principal subsidiary is Kapalua
Land Company, Ltd., the operator and developer of Kapalua Resort,
a master-planned community in West Maui.

As reported in the TCR on March 17, 2011, Deloitte & Touche LLP,
in Honolulu, Hawaii, expressed substantial doubt about Maui Land &
Pineapple's ability to continue as a going concern, following the
Company's 2010 results.  The independent auditors noted that of
the Company's recurring negative cash flows from operations and
deficiency in stockholders' equity.


METROPARK USA: Can Use Prepetition Lenders Cash Until Aug. 31
-------------------------------------------------------------
On Aug. 1, 2011, the U.S. Bankruptcy Court for the Southern
District of New York entered its order granting Metropark USA,
Inc., permission, on an interim basis, to use cash collateral of
Wells Fargo Bank, National Association, as administrative agent
and collateral agent, and the other prepetition senior secured
parties, until Aug. 31, 2011.  This is the fourth interim order
authorizing the Debtor's limited use of cash collateral.

The Debtor may use cash collateral to pay actual, ordinary, and
necessary expenses pursuant to a revised and extended budget.

A final hearing to consider entry of a Final Cash Collateral Order
on the Cash Collateral Motion is scheduled for Aug. 29, 2011, at
10:00 a.m.

As reported in the Troubled Company Reporter on May 25, as of the
Petition Date, the Debtor owes Wells Fargo:

   i) $2,555,353 (inclusive of $618,840.60 of letters of
      credit), plus any and all interest, fees and costs, and any
      and all other debts or obligations under the Prepetition
      Senior Claim Documents; and

  ii) $825,000 under the Prepetition Subordinated Credit
      Agreement.

As partial adequate protection for any use or diminution in the
value of the Prepetition Senior Secured Parties' interest, the
Debtor will grant replacement liens and additional liens and
security interests, of the highest available priority in and upon
all of the properties and assets of the Debtor.

As additional partial adequate protection, the Debtor will make
these payments to the Prepetition Agent:

   a) payment of interest on the first day of each month on the
      Prepetition Senior Claim;

   b) payment of all proceeds from the Store Closing Sale; and

   c) reimbursement to the Prepetition Agent.

                      About Metropark USA

Metropark USA, Inc. -- http://www.metroparkusa.com/-- is a Los
Angeles retail chain with 70 stores in 21 states.  Metropark was
founded in 2004 to capitalize on the large Gen Y segment (the 25-
35 year old customer) in demand for fashion-forward apparel and
accessories.  Its headquarters, distribution centers, and e-
commerce site located in Los Angeles, California.

Metropark filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 11-22866) on April 26, 2011.  Cathy Hershcopf,
Esq., Jeffrey L. Cohen, Esq., and Alex R. Velinsky, Esq., at
Cooley LLP, in New York, serve as the Debtor's bankruptcy counsel.
CRG Partners Group, LLC, is the Debtor's financial advisor.  The
Debtor also tapped Great American Group Real Estate, LLC doing
business as GA Keen Realty Advisors as special real estate
advisor.

The Debtor disclosed total assets of $28,933,805 and total debts
of $28,697,006 as of April 2, 2011.

Blakeley & Blakeley LLP represents the Official Committee of
Unsecured Creditors.


MT. VERNON PROPERTIES: Wants to Use Rents from Properties
---------------------------------------------------------
Mt. Vernon Properties, LLC, asks the U.S. Bankruptcy Court for the
District of Maryland to approve its application for authorization
to use cash collateral, consisting of income from the Debtor's
properties, pursuant to a budget that will be provided at or prior
to the hearing on the motion.

The lenders First Mariner Bank, City National Bank, Fannie Mae,
Columbo Bank and Carrolton Bank have asserted claims against the
Debtor's properties and the rents derived therefrom.

The Debtor proposes to provide the Lenders, as adequate protection
for the use of cash collateral, a replacement lien on the Debtor's
assets to the extent of any diminution in value of the Lenders'
interest in the Debtor's pre-petition assets, if any.

As additional adequate protection, the Lenders will have a
statutory grant of an administrative expense priority claim
pursuant to Section 507(b) of the Bankruptcy Code.

Mt. Vernon Properties, LLC, based in Baltimore, Maryland, is the
owner of many parcels of real property located in Baltimore City
that the Debtor operates as multi-family rentl properties.  The
Company filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No.
11-24801) on July 18, 2011.  Judge David E. Rice presides over the
case.  Aryeh E. Stein, Esq., at Meridian Law, LLC, in Baltimore,
serves as bankruptcy counsel.  In its petition, the Debtor
estimated assets and debts of $10 million to $50 million.  The
petition was signed by Ronald Persaud, managing member of Mt.
Vernon Properties II LLC, the Debtor's sole member.


NAPA HOME: Teters Floral Acquires Core Assets
---------------------------------------------
Home Accents Today reports that Napa Home & Garden Inc. has
announced that the company's assets have been acquired by Teters
Floral Products, Inc., a permanent floral and decorative
accessories provider.

According to the report, transaction details were finalized on
Aug. 4, 2011, after the two organizations entered into an
agreement for Teters to purchase assets related to the core Napa
Home & Garden business.

The report says Napa also announced that the company is taking
orders as normal and shipping from its facility located here as
Napa Home & Garden, a division of Teters Floral.  Napa founders
Jerry and KC Cunningham will direct Napa operations, and the
company will maintain showrooms at the Atlanta, Dallas, Denver,
High Point and Los Angeles markets, the press release continued.
Napa will continue to use its sales force of over 75 independent
representatives.

Napa Home & Garden, Inc., filed a Chapter 11 petition (Bankr. N.D.
Ga. Case No. 11-69828) on July 5, 2011.  The Debtor estimated
assets and debts of $1 million to $10 million.  Leslie Pineyro,
Esq., at Jones & Walden, LLC, in Atlanta -- ljones@joneswalden.com
-- serves as counsel to the Debtor.  A copy of the petition is at
http://bankrupt.com/misc/ganb11-69828.pdf


NAVISTAR INTERNATIONAL: To Close Manufacturing Plant in Ontario
---------------------------------------------------------------
committed to close its International truck manufacturing plant in
Chatham, Ontario and Workhorse chassis plant in Union City,
Indiana, and to significantly scale back operations at its Monaco
recreational vehicle headquarters and motor coach manufacturing
plant in Coburg, Oregon.  These activities are expected to result
in restructuring charges of $105 million to $139 million in the
aggregate, excluding non-cash asset impairments, and associated
cash outlays of $65 million to $80 million.  The Company expects
most of these restructuring charges to be incurred during the
third and fourth quarters of 2011, with the remainder taking place
in 2012.

The Company's Chatham, Ontario plant has been idled since June
2009 due to an inability to reach a collective bargaining
agreement with the Canadian Auto Workers.  As a result, products
previously built in Chatham were transitioned to other assembly
plants in North America.  The commitment to close the Chatham,
Ontario plant was driven by economic, industry and operational
conditions that have rendered the plant uncompetitive.  The
closing of the Chatham, Ontario plant is expected to result in
restructuring charges of $88 million to $115 million, excluding
non-cash asset impairments.  These charges consist of $63 million
to $80 million of charges for pension and other postretirement
contractual termination benefits and related benefits, $10 million
to $20 million in personnel costs for employee termination and
approximately $15 million of other charges.  Approximately $50
million to $60 million of these restructuring charges are expected
to require cash outlays.

The Company's Workhorse Custom Chassis subsidiary plans to close
its Union City, Indiana chassis plant and consolidate operations
previously performed at Union City, Indiana into other existing
facilities.  The Company's Monaco RV headquarters and motor coach
manufacturing plant in Coburg, Oregon will be significantly scaled
back, with all motor coach production being consolidated at
Monaco's existing manufacturing facility in Wakarusa, Indiana.
Certain functions previously performed at the Monaco RV
headquarters are expected to be consolidated into the Company's
new corporate campus in Lisle, Illinois.  The Company plans to
continue producing RV towables and maintain certain administrative
functions in facilities in Oregon, as well as maintain a RV
service center there.  The commitment to close the Union City,
Indiana plant and significantly scale back operations at the
Coburg, Oregon facility was made to enhance efficiency and
productivity through the consolidation of operations.  These
activities are expected to result in restructuring charges of $17
million to $24 million, excluding non-cash asset impairments.
These charges consist of approximately $13 million in personnel
costs for employee termination and related benefits, $4 million to
$6 million of equipment relocation and start-up costs and up to $5
million of other charges.  Approximately $15 million to $20
million of these restructuring charges are expected to require
cash outlays.  The Company expects the Workhorse and Monaco
consolidation actions to be implemented by the end of the second
quarter of the Company's fiscal 2012.

                    About Navistar International

Navistar International Corporation (NYSE: NAV) --
http://www.Navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans.  It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets.  The company also provides truck and diesel
engine parts and service.  Another affiliate offers financing
services.

The Company's balance sheet at April 30, 2011, showed $9.96
billion in total assets, $10.64 billion in total liabilities, $5
million in redeemable equity securities, $84 million in
convertible debt and a $769 million total stockholders' deficit.

Navistar has a 'BB-/Stable/--' corporate credit rating from
Standard & Poor's and a 'B1' Corporate Family Rating and
Probability of Default Rating from Moody's Investors Service.

Moody's said in October 2010 that Navistar's B1 rating could
improve if the North American truck market remains on track for a
sustained recovery into 2011, and Navistar's operational
initiatives to moderate its vulnerability to the truck cycle show
evidence of taking hold.


NEBRASKA BOOK: Three Members Resign from Creditors Committee
------------------------------------------------------------
BankruptcyData.com reports that the U.S. Trustee assigned to the
Nebraska Book Company case appointed a second amended official
committee of unsecured creditors.  Elsevier Inc. resigned from the
committee effective July 15, 2011, and Pearson Education Inc.
resigned effective July 27, 2011.  In addition, on Aug. 3, 2011,
JanSport, a Division of VF Outdoor, resigned.

                 About Nebraska Book Company

Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the
leading providers of new and used textbooks for college students
in the United States.  Nebraska Book and seven affiliates filed
separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002
to 11-12009) on June 27, 2011.  Hon. Peter J. Walsh presides over
the case.  lawyers at Kirkland & Ellis LLP and Pachulski Stang
Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel.  The
Debtors; restructuring advisors are AlixPartners LLC; the
investment bankers are Rothschild, Inc.; the auditors are Deloitte
& Touche LLP; and the claims agent is Kurtzman Carson Consultants
LLC.  As of the petition date, the Debtors had consolidated assets
of $657,215,757 and debts of $563,973,688.

JPMorgan Chase Bank N.A., as administrative agent for the DIP
lenders, is represented by lawyers at Richards, Layton & Finger,
P.A., and Simpson Thacher & Bartlett LLP.  J.P. Morgan Investment
Management Inc., the DIP arranger, is represented by lawyers at
Bayard, P.A., and Willkie Farr & Gallagher LLP.

An ad hoc committee of holders of more than 50% of the Debtors'
Second Lien Notes is represented by lawyers at Brown Rudnick.  An
ad hoc committee of holders of the Debtors' 8.625% unsecured
notes are represented by Milbank, Tweed, Hadley & McCloy LLP.


NETWORK SOLUTIONS: S&P Puts 'B' Corporate Rating on Watch Neg.
--------------------------------------------------------------
Standard & Poor's Rating Services placed its ratings on Network
Solutions LLC, including its 'B' corporate credit rating, on
CreditWatch with negative implications. "Negative implications
indicate that we could lower or affirm the rating. Network
Solutions' financial risk profile would likely weaken in light of
higher debt leverage and weaker interest coverage but the business
risk profile could either improve or remain unchanged after we are
better able to asses the new combined entity," S&P related.

The CreditWatch placement follows Network Solutions' announcement
that it has entered into a definitive agreement to be acquired by
Web.com.

"We could lower our rating if we conclude that the meaningful
increase in debt leverage took place without an offsetting benefit
to the company's business profile," said Standard & Poor's credit
analyst Chris Valentine. "We could also affirm the existing
ratings if we believe that the company's business and financial
risk profile will remain relatively unchanged. Our review will
consider Network Solutions' business risk profile, ownership
structure, capital structure, liquidity profile, and expected
financial policy following a potential transaction."

Network Solutions is a Web-based service provider focusing on
helping small and midsize businesses establish, design, maintain,
promote, and optimize their online presence. Despite success in
cross-selling its clients, it faces certain industry risks. The
market for Web-site hosting and related services is highly
competitive. Furthermore, effective pricing (i.e., pricing implied
when bundled with other services) for domain registration services
continues to decrease as competitors reduce prices to attract more
customers.

In the first quarter of 2011, generally accepted accounting
principles (GAAP) EBITDA declined by 9%, despite flat revenue,
because of increases in marketing and operating expenses. Declines
in domain name services appear to be less severe as revenues were
up 0.8% as a result of both new customers and renewals, while Web
presence revenue increased 2.1% from higher renewals in
hosting products.


NEUROLOGIX INC: Amends Sublicense Agreement with Diamyd
-------------------------------------------------------
Neurologix, Inc., Diamyd Therapeutics AB, and its parent company,
Diamyd Medical AB, executed a "First Amendment to Sublicense
Agreement dated July 27, 2006".  The First Amendment amends
certain terms of the Sublicense Agreement dated July 27, 2006,
between the Company and Diamyd Therapeutics AB and grants to
Diamyd Therapeutics AB a non-exclusive license to certain of the
Company's patent rights.

The principal terms of the First Amendment include (i) extending
the target dates contained in the Sublicense Agreement related to
the Company's development, manufacture and sale of its Parkinson's
disease product, (ii) reducing certain royalty rates payable by
the Company to Diamyd Therapeutics AB, and (iii) granting to
Diamyd Therapeutics AB a non-exclusive worldwide royalty free
license in the Company's patent rights related to its gene
transfer technology for use with a gene therapy product to treat a
disease other than Parkinson's disease and using a non-adeno-
associated virus vector or a non-viral vector.

A full-text copy of the First Amendment to Sublicense Agreement is
available for free at http://is.gd/bbYDu4

                       About Neurologix, Inc.

Fort Lee, N.J.-based Neurologix, Inc. (OTC Bulletin Board: NRGX)
-- http://www.neurologix.net/-- is a clinical-stage biotechnology
company dedicated to the discovery, development, and
commercialization of gene transfer therapies for serious disorders
of the brain and the central nervous system.  The Company's
current programs address such conditions as Parkinson's disease,
epilepsy, depression and Huntington's disease, all of which are
large markets not adequately served by current therapeutic
options.

The Company reported a net loss of $10.16 million on $0 of revenue
for the year ended Dec. 31, 2010, compared with a net loss of
$13.46 million on $0 of revenue during the prior year.

BDO USA, LLP, in New York, raised substantial doubt about the
Company's ability to continue as a going concern.  BDO noted that
the Company has suffered recurring losses from operations, expects
to incur future losses for the foreseeable future and has
deficiencies in working capital and capital.

The Company's balance sheet at March 31, 2011, showed
$7.06 million in total assets, $13.20 million in total
liabilities, and a $6.13 million total stockholders' deficit.


NEW CENTURY FINANCIAL: Criminal Probes Said to Have Stalled
-----------------------------------------------------------
Jean Eaglesham, writing for The Wall Street Journal, reports that
people familiar with the situation said federal criminal
investigations of IndyMac Bancorp and New Century Financial Corp.
have stalled and could result in no charges being filed.

The U.S. Attorney's Office for the Western District of Washington
in Seattle on Friday also closed the investigation stemming from
the September 2008 failure of Washington Mutual Bank.  The U.S.
Department of Justice has concluded that the evidence does not
meet the exacting standards for criminal charges in connection
with the bank's failure.

According to the WSJ report, all three separate investigations hit
major stumbling blocks.  People familiar with the matter told the
Journal the WaMu probe had been inactive for more than a year.
Sources also said the IndyMac and New Century investigations are
essentially dormant at the moment.

The Journal says a spokesman for the U.S. Attorney's office in Los
Angeles, which initiated the IndyMac and New Century
investigations, declined to comment.

The Journal notes, however, that the investigations haven't been
closed, meaning they could gain new momentum if fresh evidence
surfaces. A source told the Journal the U.S. Attorney's Office in
Brooklyn, N.Y., recently opened its own criminal investigation
into IndyMac.  The source said in the Brooklyn probe, which is
still at an early stage, prosecutors are looking at the
information IndyMac disclosed about the quality of home loans that
backed bonds it sold to investors.  It isn't clear if the scope of
the Brooklyn-based investigation is significantly different than
the Los Angeles one, but U.S attorneys have broad discretion to
determine which avenues to pursue.

The Journal says a spokesman for the U.S. Attorney's office in
Brooklyn declined to comment.

                          About Indymac

Based in Pasadena, California, IndyMac Bancorp Inc. (NYSE:IMB) --
http://www.indymacbank.com/-- was the holding company for IndyMac
Bank FSB, a hybrid thrift/mortgage bank that originated mortgages
in all 50 states of the United States.

On July 11, 2008, the Office of Thrift Supervision closed IndyMac
Bank and appointed FDIC as the bank's receiver.  Thacher Proffitt
& Wood LLP was engaged as counsel to the FDIC.

All non-brokered insured deposit accounts and substantially all of
the assets of the bank were transferred to IndyMac Federal Bank,
F.S.B., Pasadena, CA, a newly chartered full-service FDIC-insured
institution.  On March 19, IndyMac Federal Bank was sold to
OneWest Bank, F.S.B., Pasadena, California. OneWest Bank, FSB is a
newly formed federal savings bank organized by IMB HoldCo LLC.

Indymac Bancorp filed for Chapter 7 bankruptcy protection on
July 31, 2008 (Bankr. C.D.Calif., Case No. 08-21752).
Representing the Debtor are Dean G. Rallis, Jr., Esq., and John C.
Weitnauer, Esq.  Indymac had about $32.01 billion in assets as of
July 11, 2008.  In court documents, IndyMac disclosed estimated
assets of $50 million to $100 million and estimated debts of $100
million to $500 million.

                 About New Century Financial Corp.

Founded in 1995, Irvine, Calif.-based New Century Financial
Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real state
investment trust, providing mortgage products to borrowers
nationwide through its operating subsidiaries, New Century
Mortgage Corporation and Home123 Corporation.  The Company offers
a broad range of mortgage products designed to meet the needs of
all borrowers.

New Century Financial and its affiliates filed for Chapter 11
protection on April 2, 2007 (Bankr. D. Del. Case No. 07-10416).
Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana
Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A., were tapped as bankruptcy
counsel.  The Official Committee of Unsecured Creditors selected
Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its
co-counsel.  When the Debtors filed for bankruptcy, they listed
total assets of $36,276,815 and total debts of $102,503,950.

The Court confirmed the Debtors' second amended joint Chapter 11
plan of liquidation on July 15, 2008.

                    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.


NEW ENTERPRISE: Moody's Downgrades CFR to B3; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service downgraded New Enterprise Stone & Lime
Co., Inc.'s  corporate family rating and probability of default
rating to B3 from B2, and downgraded the rating of its $250
million senior unsecured notes to Caa2 from Caa1. The outlook is
negative.

RATINGS RATIONALE

The downgrade results from weaker than expected operating
performance and Moody's expectation that public construction will
face further slowing through 2012 as all levels of government
grapple with fiscal constraints and the exhaustion of ARRA
(America Recovery and Reinvestment Act) funds. NESL's adjusted
Debt-to-EBITDA leverage increased to over 7.0x and its EBIT-to-
Interest coverage fell below 1.0x as a result of weakening
earnings. Private sector residential and non-residential
construction in NESL's key markets remains weak following several
years of contraction.

The B3 corporate family rating balances the company's modest
scale, seasonality, limited geographic diversification,
concentration of business with Pennsylvania DOT, and tight
liquidity, against the company's historic resilience through
various economic cycles, multi-generational family stewardship,
and prudent acquisition and growth strategy.

New Enterprise derives over half of its revenues from construction
materials and most of the remainder from highway construction
contracting. Its operations remain largely concentrated in
Pennsylvania, Western New York, and adjacent states, leaving it
largely exposed to the economic conditions and public spending in
that region. That said, the company's vertical integration enables
it to operate as a single source provider of materials and
construction services, creating cost and convenience advantages
over other competitors.

The negative outlook reflects the risk of further fiscal
tightening at most levels of government and increased risk of
slowing private sector construction. Federal highway spending will
likely suffer from the expiration of stimulus spending, and
intensified political pressure to cap or possibly cut highway
funds. A decelerating general economy will further postpone a
recovery in residential and non-residential private construction.

Material de-levering resulting in adjusted debt-to-EBITDA
consistently falling below 5.0x, and EBIT-to-Interest exceeding
1.5x would result in ratings improvement. Building additional
geographic diversity, scale, and customer diversity would also
improve the company's credit risk profile.

The rating would likely be downgraded in the event that debt-to-
EBITDA leverage exceeds 7.5x or EBIT-to-Interest Coverage remains
below 1.0x. Revenue deterioration due to falling highway and
construction activity in core markets would likely pressure the
ratings as well.

The principal methodology used in rating NESL was the Global
Building Materials Industry Methodology published in July 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.

NESL is a privately held, vertically-integrated construction
materials supplier, heavy construction contractor, and traffic
safety services and equipment provider.

                       *     *     *

Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the new B3 corporate rating from Moody's Investors
Service lines up with the demotion issued in June by Standard &
Poor's.   When S&P downgraded the notes to B- in June, it
predicted the holders would recover 30 percent to 50% in the event
of payment default.


NEW YORK STATE: S&P Cuts Rating on $16-Mil. Revenue Bonds to 'B'
----------------------------------------------------------------
Standard & Poor's Ratings Services corrected 19 ratings on bonds
backed at original issuance by bond insurance or bank letters of
credit. The accumulated value at issuance of these bonds totals
$567.35 million. "Due to administrative errors, we did not in
these instances appropriately reflect changes in the ratings of
the entities providing support or recognize the expiration of
support. In several instances, we are also assigning a Standard &
Poor's Underlying Rating (SPUR) and a recovery rating to the
obligor or issuer whose credit quality is now the primary
determinant of the resulting issue rating. Specifics on the
corrections follow," S&P related.

Ratings List

Harrison County Commission
$1 mil 6.25% solid waste disp rev bnds (Monongahela Pwr Co. Proj)
1st mtg bnd ser B due 2023
Insurer: National Public Finance Guarantee Corp.
Obligor: Monongahela Power Co.

Rating Raised
To      From
BBB+    BBB/Developing

New Recovery Rating
1+

New SPUR
BBB+

La Cygne
$21.94 mil poll cntl rfdg bnds (Kansas Gas & Elec Co. Proj) ser
1994B due

2027
Insurer: National Public Finance Guarantee Corp.
Obligor: Kansas Gas & Electric Co.

Rating Raised
To      From
BBB+    BBB/Negative

New Recovery Rating
1

New SPUR
BBB+

Lake Charles Harbor & Term District
$20.9 mil rev rfdg bnds (ConocoPhilips) ser 1999A due 2029
Obligor: ConocoPhillips

Rating Lowered
To          From
A/A-1       AAA/A-1+

Michigan Strategic Fund
$68.5 mil var rte ltd oblig rev bnds (Detroit Edison Co. Exempt
Fac Proj) ser
2006CT due 2036
Insurer: Syncora Guarantee Inc.
Obligor: Detroit Edison Co.

Issue Rating
A

New Recovery Rating
1+

New Jersey Economic Development Authority
$20 mil 4.5% var rt dem wtr fac rev rfdg bnds secd IRB - LOC ser
1996B due
2025
Bond Insurer: Ambac Assurance Corp.
Obligor: United Water New Jersey Inc.

Outlook Revised
To    From
A-    A-/Negative

Ohio State Air Quality Development Authority
$37.77 mil Collateral Pollution Control Revenue Refunding Bonds
(The Dayton
Pwr & Light Co. Proj), Series 2005B Due 2034
Insurer: Berkshire Hathaway Assurance Corp.
Obligor: Dayton Power & Light Co.

Rating Removed From CreditWatch
To            From
AA+/Stable    AA+/Watch Neg

New SPUR
A

Ohio State Air Quality Development Authority
$34.975 mil Collat Air Quality Dev Rev Bnds (Dayton Power & Light
Co. Proj)
Ser 2006A due 2036
Insurer: Berkshire Hathaway Assurance Corp.
Obligor: Dayton Power & Light Co

Rating Removed From CreditWatch
To            From
AA+/Stable    AA+/Watch Neg

Ohio State Air Quality Development Authority
$43.225 mil Collat poll cntl rev rfdg bnds (Dayton Power & Light
Co. Proj)

Ser
2005 B due 2024
Insurer: Berkshire Hathaway Assurance Corp.
Obligor: Dayton Power & Light Co

Rating Removed From CreditWatch
To            From
AA+/Stable    AA+/Watch Neg

Ohio State Air Quality Development Authority
$11.7 mil Collat Air Quality Dev Rev Bnds (Dayton Power & Light
Co. Proj) Ser
2006A due 2036
Insurer: Berkshire Hathaway Assurance Corp.
Obligor: Dayton Power & Light Co

Rating Removed From CreditWatch
To            From
AA+/Stable    AA+/Watch Neg

Oklahoma Development Finance Authority
$20 mil rev bnds ser 2002 Due 2037
Obligor: ConocoPhillips

Rating Lowered
To          From
A/A-1       AAA/A-1+

New York St Energy Research & Dev Auth
$50 mil 5.635% adj rate gas fac rev bnds unsecd IRB ser 1991D due
2026
Obligor: KeySpan Energy Delivery New York

Rating Lowered
To    From
A     AAA

New SPUR
A

New York State Environmental Facilities Corp.
$16 mil wtr fac rev bnds (Long Island Water Corp. proj) ser 2004A
due 2034
Insurer: MBIA U.K. Insurance Ltd.
Obligor: Long Island Water Corp.

Rating Lowered
To            From
B/Negative    AA-/Watch Dev

New Jersey Economic Development Authority
$40 mil wtr fac rev bnds (New Jersey -American Wtr Co. Proj) ser
1998A due
2038
Insurer: National Public Finance Guarantee Corp.
Obligor: New Jersey-American Water Co.

Rating Raised
To    From
A     BBB/Developing

Salem County Indl Poll Ctl Fin Authority
US$23 mil poll cntl rev bnds Public Service Elec & Gas Co. Proj)
ser 1993B

due
2025
Insurer: National Public Finance Guarantee Corp.
Obligor: Public Service Electric & Gas Co.

Rating Raised
To      From
A-      BBB/Developing

New Recovery Rating
1+

New SPUR
A-

St Marys
$45 mil poll cntl rev rfdg (Western Resources Inc. Proj)) ser 1994
due 2032
Insurer: National Public Finance Guarantee Corp.
Obligor: Westar Energy Inc.

Rating Raised
To      From
BBB+    BBB/Developing

New Recovery Rating
1

New SPUR
BBB+

St. Marys
$14.5 mil poll cntl rfdg bnds (Kansas Gas & Elec Co. Proj) ser
1994 due 2032
Insurer: National Public Finance Guarantee Corp.
Obligor: Kansas Gas & Electric Co.

Rating Raised
To      From
BBB+    BBB/Negative

New Recovery Rating
1

New SPUR
BBB+

Wamego
$58.34 mil poll cntl rfdg rev bnds (Westar Energy Inc. Proj) ser
2004 due

2033
Insurer: MBIA U.K. Insurance Ltd.
Obligor: Westar Energy Inc.

Rating Lowered
To      From
BBB+    AA-/Watch Dev

New Recovery Rating
1

Wamego
$30.5 mil poll cntl rfdg bnds (Kansas Gas & Elec Co. Proj) ser
1994 due 2032
Insurer: National Public Finance Guarantee Corp.
Obligor: Kansas Gas & Electric Co.

Rating Raised
To      From
BBB+    BBB/Negative

New Recovery Rating
1

New SPUR
BBB+

Wamego
$10 mil poll cntl rfdg bnds (Kansas Gas & Elec Co. Proj) ser 1994
due 2032
Insurer: National Public Finance Guarantee Corp.
Obligor: Kansas Gas & Electric Co.

Rating Raised
To      From
BBB+    BBB/Negative

New Recovery Rating
1

New SPUR
BBB+


NEXSTAR BROADCASTING: Amends Senior Secured Credit Facility
-----------------------------------------------------------
Nexstar Broadcasting, Inc., entered into an amendment to its
senior secured credit facility on July 29, 2011.  The amendment,
among other things, removes as an event of default the termination
of more than three stations network affiliation agreements with
major networks and lowers the maximum consolidated total leverage
ratio to 7.50 to 1.00 through Dec. 30, 2012.

A full-text copy of the Fifth Amendment to Fourth Amended and
Restated Credit Agreement is available for free at:

                       http://is.gd/VpN91R

                 About Nexstar Broadcasting Group

Irving, Texas-based Nexstar Broadcasting Group Inc. currently
owns, operates, programs or provides sales and other services to
62 television stations in 34 markets in the states of Illinois,
Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania,
Louisiana, Arkansas, Alabama, New York, Rhode Island, Utah and
Florida.  Nexstar's television station group includes affiliates
of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches
approximately 13 million viewers or approximately 11.5% of all
U.S. television households.

The Company reported a net loss of $1.81 million on $313.35
million of net revenue for the year ended Dec. 31, 2010, compared
with a net loss of $12.61 million on $251.97 million of net
revenue during the prior year.

The Company's balance sheet at Dec. 31, 2010 showed
$602.53 million in total assets, $777.70 million in total
liabilities and $175.17 million in total stockholders' deficit.

                          *     *     *

As reported by the Troubled Company Reporter on Aug. 30, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Nexstar Broadcasting Group to 'B' from 'B-'.  The rating
outlook is stable.

"The 'B' corporate credit rating reflects S&P's expectation that
Nexstar's core ad revenue will continue growing modestly in 2010
and 2011," said Standard & Poor's credit analyst Deborah Kinzer.
The EBITDA growth resulting from the rebound in core advertising,
combined with political ad revenue from the 2010 midterm
elections, should, in S&P's view, enable Nexstar to reduce its
leverage significantly by the end of the year.


NON-INVASIVE MONITORING: Extends Hsu Gamma Credit Pact to 2012
--------------------------------------------------------------
Non-Invasive Monitoring Systems, Inc., entered into the Second
Amendment to the Note and Security Agreement dated as of March 31,
2010, and as amended on March 14, 2011, with Hsu Gamma
Investments, L.P., an entity controlled by NIMS' Chairman, Jane H.
Hsiao, Ph.D., and Frost Gamma Investments Trust.  Pursuant to the
terms of the Agreement, the Lenders granted NIMS a revolving
credit line in the aggregate amount of $1,000,000.  The Second
Amendment extended the maturity date of the Revolver from July 31,
2011, until July 31, 2012.  As of the date of the Second
Amendment, NIMS had drawn down $1,000,000 under the Agreement.
The Second Amendment did not amend any other terms of the
Agreement.

A full-text copy of the Second Amendment to Note and Security
Agreement is available for free at http://is.gd/XCNEF2

                    About Non-Invasive Monitoring

Based in Miami, Florida, Non-Invasive Monitoring Systems, Inc.,
(OTC BB: NIMU) -- http://www.nims-inc.com/-- is primarily engaged
in the research, development, manufacturing and marketing of a
line of motorized, non-invasive, whole body, periodic acceleration
platforms, which are intended as aids to improve circulation and
joint mobility, relieve minor aches and pains, relieve morning
stiffness, relieve troubled sleep and as mechanical feedback
devices for slow rhythmic breathing exercise for stress
management.

The Company's balance sheet at April 30, 2011, showed
$1.27 million in total assets, $1.32 million in total liabilities,
and a stockholders' deficit of $53,000.

As reported in the Troubled Company Reporter on Nov. 3, 2010,
Morrison, Brown Argiz & Farra, LLP, in Miami, Florida, expressed
substantial doubt about Non-Invasive Monitoring Systems' ability
to continue as a going concern, following the Company's fiscal
year ended July 31, 2010.  The independent auditors noted that the
Company has experienced recurring net losses, cash outflows from
operating activities and has an accumulated deficit and
substantial purchase commitments.


NORTHCORE TECHNOLOGIES: To Release 2nd Quarter Results Friday
-------------------------------------------------------------
Northcore Technologies Inc. scheduled to release its financial
results for the second quarter of 2011 on August 11 following the
close of the markets.  The Company will hold a conference call at
10:00 a.m. (Eastern) on Friday, August 12 to discuss its financial
results and review operational activities.  Investors and
followers of Northcore are invited to listen to the call live over
the Internet on the Company's Web site at:

                    www.northcore.com/events.html

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction.

                          About Northcore

Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC
BB: NTLNF) -- http://www.northcore.com/-- provides a Working
Capital Engine(TM) that helps organizations source, manage,
appraise and sell their capital equipment.  Northcore offers its
software solutions and support services to a growing number of
customers in a variety of sectors including financial services,
manufacturing, oil and gas and government.

Northcore owns 50% of GE Asset Manager, LLC, a joint business
venture with GE.  Together, the companies work with leading
organizations around the world to help them liberate more capital
value from their assets.

Northcore reported a net loss for the first quarter of C$574,000.
This compares with a net loss of C$677,000 in the fourth quarter
of 2010.  In the first quarter of 2010, Northcore reported a net
loss of $713,000.

Northcore reported consolidated revenues of C$183,000 for the
first quarter, an increase of 4% over the C$176,000 reported in
the fourth quarter of 2010.  In the same period of 2010, Northcore
reported consolidated revenues of C$150,000.

Certain adverse conditions and events cast substantial doubt upon
the ability of the Company to continue as a going concern, the
Company said in the filing.  "The Company has not yet realized
profitable operations and has relied on non-operational sources of
financing to fund operations."

The Company's balance sheet at March 31, 2011, showed C$595,000 in
total assets, C$1.83 million in total liabilities and a C$1.24
million in total shareholders' deficiency.


NORTHEAST INDUSTRIES: Owner Hit With $250T Judgment in Suit
-----------------------------------------------------------
Magistrate Judge George J. Limbert ruled on Vindicator Printing
Company's motion for summary judgment against Sam Boyles, owner of
bankrupt Northeast Industries, Inc., and Lessie Boyles.
Vindicator on Aug. 21, 2009, filed a complaint alleging breach of
contract and promissory estoppel claims against the Boyles and
Northeast Industries.  The Plaintiff owns The Vindicator, a daily
newspaper circulated in Youngstown, Ohio.  Northeast had agreed to
supply and install equipment at the Plaintiff's production
facility.  The lawsuit was automatically stayed with respect to
Northeast Industries after it filed for bankruptcy.  On Dec. 7,
2010, the Court severed the claims against the Boyles and
Northeast, to allow the claims against the Boyles to proceed to
judgment.

In his Aug. 5, 2011 Memorandum Opinion and Order, Judge Limbert
held that the Plaintiff's motion for summary judgment against the
Boyles is granted as to the breach of contract claim and denied as
to the promissory estoppel claim.  Judgment is rendered in favor
of the Plaintiff in the amount of $250,000, as well as expenses
and attorney fees.  The promissory estoppel claim is dismissed sua
sponte as a matter of law.

The lawsuit is Vindicator Printing Company, v. Sam W. Boyles, et
al., No. 4:09CV01973 (N.D. Ohio).  A copy of the decision is
available at http://is.gd/OO1Uxsfrom Leagle.com.

Based in Camp Verde, Arizona, Northeast Industries, Inc., sells,
manufactures, repairs, engineers and installs printing presses.
Northeast filed Chapter 11 bankruptcy (Bankr. D. Ariz. Case No.
10-21438) on July 8, 2010, represented by Daniel R. Warner, Esq.
-- drw@jpglaw.com -- at J. Phillip Glasscock PC, as bankruptcy
counsel.  Judge Redfield T. Baum, Sr., presides over the case.  In
its petition, the Debtor estimated $1 million to $10 million in
assets and debts.


O&G LEASING: Bank Seeks to Prohibit Use of Cash Collateral
----------------------------------------------------------
Washington State Bank (WSB) asks the U.S. Bankruptcy Court for the
Southern District of Mississippi to prohibit O&G Leasing, LLC from
the continued use of cash collateral.

Prior to the filing of the bankruptcy petition, on December 5,
2008, O&G executed a $5.25 million promissory note to WSB, secured
by Rig #48, related equipment and all revenues from Rig #48.  Rig
#48 has continued to be utilized by the Debtor. Rig #48 has been
leased and is continuing to generate revenues.

As of Aug. 3, 2011, the WSB debt had grown to $4,991,849.57.  In
the past 14 months since the filing of the bankruptcy petition,
WSB has been paid nothing.  The Debtor has also not paid any funds
to First Security Bank, Indenture Trustee either, which is a
$38 million creditor.

Washington State Bank is represented by:

     Derek A. Henderson, Esq.
     111 East Capitol Street, Suite 455
     Jackson, Mississippi 39201
     Phone: (601) 948-3167
     E-mail: d_henderson@bellsouth.net

                            About O&G Leasing

Jackson, Mississippi-based O&G Leasing, LLC, filed for Chapter 11
bankruptcy protection (Bankr. S.D. Miss. Case No. 10-01851) on
May 21, 2010.  Douglas C. Noble, Esq., at McCraney Montagnet &
Quin, PLLC, assists the Company in its restructuring effort.  The
Company estimated $10 million to $50 million in assets and $50
million to $100 million in liabilities.


OLDE PRAIRIE: Daley and George OK'd for Tax Increment Financing
---------------------------------------------------------------
The Hon. Jack B. Schmetterer of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized Olde Prairie Block Owner
LLC, to employ Daley and George, Ltd. as special counsel for
zoning, tax increment financing, and other typical real property
development at the Debtor's real properties.

The Debtor is authorized to pay interim compensation to Daley &
George, including the $20,000 retainer payment and any draws upon
this retainer, provided that the payments comply with the
requirements of the Amended DIP Order.

The Debtor related that the Court approved the Debtor's request to
pay Daley & George up to $50,000 for services provided after
Jan. 1, 2011.

In the Amended DIP Order and the Amended DIP Findings and
Conclusions, the Court authorized the Debtor to use DIP Loan
proceeds to pay Daley & George up to $50,000 for services provided
after Jan. 1, 2011.

The hourly rates of Daley & George's pesonnel are:

         Jack George             $450
         Associate               $350

To the best of the Debtor's knowledge, Daley & George is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                  About Olde Prairie Block Owner

Olde Prairie Block Owner, LLC, owns two parcels of real estate:
(a) a parcel known as the "Olde Prairie Property" located at 230
E. Cermak Road in Chicago, and (b) a parcel known as the "Lakeside
Property" located across the street at 330 E. Cermak Road in
Chicago.  It also holds a long-term lease with the Metropolitan
Pier and Exposition Authority that allows it rent-free use of 450
parking spaces at the McCormick Place parking garage until the
year 2203.

Olde Prairie Block Owner sought chapter 11 protection (Bankr. N.D.
Ill. Case No. 10-22668) on May 18, 2010.  The Debtor is
represented by John E. Gierum, Esq., at Gierum & Mantas, and John
Ruskusky, Esq., George R. Mesires, Esq., and Nile N. Park, Esq.,
at Ungaretti & Harris LLP.  Marcus, Clegg & Mistretta, P.A.,
serves as special counsel.  The Debtor estimated assets of
$100 million to $500 million and liabilities of $10 million to
$50 million at the time of the filing.  The Debtor filed a Chapter
11 plan on Sept. 11, 2010.  A copy of that plan is available at
http://bankrupt.com/misc/OLDEPRAIRE_Plan.pdfat no charge.

The Court previously found that the total value of the Real
Properties and the Parking Lease was $81,150,000, far more than
the $48,000,000 that CenterPoint claims to be owed by the Debtor.
No trustee, examiner, or committee has been appointed in this
case.


OMAS INVESTMENT: Case Summary & 17 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Omas Investment LLC
        dba King's Row Apartments
        c/o C & G Investors, Inc.
        P.O. Box 970918
        Miami, FL 33197

Bankruptcy Case No.: 11-31958

Chapter 11 Petition Date: August 4, 2011

Court: United States Bankruptcy Court
       Southern District of Florida (Fort Lauderdale)

Debtor's Counsel: Martin L Hannan, Esq.
                  MARTIN HANNAN, P.A.
                  9370 SW 72 St # A266
                  Miami, FL 33173
                  Tel: (305) 279-7280
                  Fax: (305) 279-7145
                  E-mail: arhannanlaw@aol.com

Scheduled Assets: $5,029,330

Scheduled Debts: $20,869,431

A list of the Company's 17 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/flsb11-31958.pdf

The petition was signed by Eugene Sims, as President of C & G
Investors, Inc.


OVERLAND STORAGE: Amends Employment Pacts with Executive Officers
-----------------------------------------------------------------
The Compensation Committee of the Board of Directors of Overland
Storage, Inc., approved amended and restated employment agreements
with Eric L. Kelly, the Company's president and chief executive
officer, and Kurt L. Kalbfleisch, the Company's vice president of
Finance, chief financial officer and secretary.

The Kelly Agreement provides for Mr. Kelly to earn a base salary
of $400,000, which has been his base salary since his appointment
as Chief Executive Officer on Jan. 27, 2009.  Mr. Kelly is
eligible to receive an annual bonus based upon the achievement of
financial and management objectives reasonably established by the
Board of Directors or an authorized committee of the Board of
Directors.  His annual bonus target is 100% of the greater of
$400,000 or his base salary as of the end of the applicable fiscal
quarter or year in which the bonus is earned, and he has the
opportunity to earn an annual bonus of up to 150% of the target
bonus.  If the Company terminates Mr. Kelly's employment without
cause or he resigns for good reason, or if he dies or becomes
disabled, before the end of a fiscal quarter or year, he will be
eligible to receive a prorated amount of the target bonus for the
fiscal quarter or year in which his employment terminates.  The
termination of employment by the Company without cause includes a
termination by the Company at the end of the term then in effect.
To the extent that any travel, lodging or auto expense
reimbursements are taxable to Mr. Kelly, the Company will provide
him with a tax restoration payment so that he will be put in the
same after-tax position as if such reimbursements had not been
subject to tax.  The Kelly Agreement has a three-year term and
automatically renews for additional one-year terms.  The Company
may unilaterally modify Mr. Kelly's cash compensation at any time,
subject to Mr. Kelly's right to terminate his employment for good
reason.  A full-text copy of the Kelly Agreement is available for
free at http://is.gd/11igkt

The Kalbfleisch Agreement provides for Mr. Kalbfleisch to earn a
base salary of $266,000.  Mr. Kalbfleisch is eligible to receive
an annual bonus based upon the achievement of financial and
management objectives reasonably established by the Board of
Directors or an authorized committee of the Board of Directors.
If the Company terminates Mr. Kalbfleisch's employment without
cause or he resigns his employment for good reason before the end
of a fiscal quarter or year, he will be eligible to receive a
prorated amount of the target bonus for the fiscal quarter or year
in which his employment terminates.  The Kalbfleisch Agreement has
a three-year term and automatically renews for additional one-year
terms.  The Company may unilaterally modify Mr. Kalbfleisch's cash
compensation at any time, subject to Mr. Kalbfleisch's right to
terminate his employment for good reason.

A full-text copy of the Kalbfleisch Employment and Severance
Agreement is available for free at http://is.gd/NxJ1yH

                      About Overland Storage

San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) --
http://www.overlandstorage.com/-- is a global provider of unified
data management and data protection solutions designed to enable
small and medium enterprises (SMEs), corporate departments and
small and medium businesses (SMBs) to anticipate and respond to
change.

As reported in the Troubled Company Reporter on Sept. 28, 2010,
Moss Adams LLP, in San Diego, Calif., expressed substantial
doubt about Overland Storage's ability to continue as a going
concern, following the Company's results for the fiscal year ended
June 30, 2010.  The independent auditors noted of the Company's
recurring losses and negative operating cash flows.

The Company's balance sheet at March 31, 2011, showed $48.50
million in total assets, $35.89 million in total liabilities and
$12.61 million in total shareholders' equity.


PACIFICUS REAL: Taps Solomon Ross to Prepare 2010 Tax Returns
-------------------------------------------------------------
PacificUS Real Estate Group, et al., ask the U.S. Bankruptcy Court
for the Central District of California for permission to employ
Solomon Ross Grey & Company, LLP as accountants to prepare the
consolidated 2010 tax returns.

Stuart M. Ross, a member of the firm, tells the Court that the
hourly rates of SRG&Cs personnel are:

         Stuart M. Ross, CPA                      $350
         Philip Marshall, CPA                     $300
         Professional Staff and Accountants    $125 - $195
         Administrative Staff                      $60

SRG&C estimates that its total fees and expenses for the services
will be between $9,000 and $10,000.  The Debtor did not pay any
amounts to SRG&C within 90 days of the petition date.

To the best of the Debtor's knowledge, SRG&C is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

                   About Pacificus Real Estate

PacificUS Real Estate Group, based in Pasadena, California, owns
various real estate properties, including the "SilverTip
Property"located at the south entrance of Yosemite National Park.
It filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No.
11-40120) on July 14, 2011.  Judge Ernest M. Robles presides over
the case.  The Debtor is represented by Ron Bender, Esq., at
Levene, Neale, Bender, Yoo & Brill, LLP.  In its petition, the
Debtor estimated assets and debts of $10 million to $50 million.
The petition was signed by Paul J. Giuntini, its president.

PacificUS said it intends to reorganize through a sale of -- or a
joint venture to develop -- the SilverTip Property.


PALM HARBOR: Files Chapter 11 Plan of Liquidation
-------------------------------------------------
Palm Harbor Homes Inc. filed a proposed plan of liquidation that
promises to pay bondholders and unsecured creditors up to 21% of
what they are owed.  The creditors will be paid from the proceeds
from the prior sale of its assets.

BankruptcyData.com reports that under the Plan, holders of
priority claims will be paid in full, holders of 3 1/4%
Convertible Senior Notes will receive their pro rata share of
$54.78 million and holders of general unsecured claims will
receive their pro rata share of available cash.

The Court scheduled a Sept. 13, 2011, hearing to consider approval
of the Disclosure Statement.

                   About Palm Harbor Homes

Addison, Texas-based Palm Harbor Homes, Inc. --
http://www.palmharbor.com/-- manufactured and marketed factory-
built homes.  The Company marketed nationwide through vertically
integrated operations, encompassing manufactured and modular
housing, financing and insurance.

Palm Harbor, along with affiliates, filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-13850) on
Nov. 29, 2010.  It disclosed $321,263,000 in total assets and
$280,343,000 in total debts.

Brian Cejka at Alvarez & Marsal is the Debtors' chief
restructuring officer.  Raymond James and Associates, Inc., is the
Debtors' investment banker.  Alvarez & Marshal North America, LLC,
is the Debtors' financial advisor.  BMC Group, Inc., is the
Debtors' claims agent.  Pachulski Stang Ziehl & Jones LLP serves
as counsel to the Official Committee of Unsecured Creditors.

Following a court-approved sale process, Palm Harbor in March 2011
sold its business for $85.25 million to Fleetwood Enterprises
Inc., a venture between Cavco Industries Inc. and a fund advised
by Third Avenue Management LLC.  Fleetwood is providing up to
$55 million in secured financing for Palm Harbor's reorganization.

As reported in the TCR on May 16, 2011, Cavco Industries and
Fleetwood Homes filed with the Bankruptcy Court a motion for an
order enforcing and ordering Palm Harbor Homes to perform its
obligations under the Court-approved amended and restated asset
purchase agreement and to pay administrative expenses.  According
to Cavco and Fleetwood, the Debtors ceased paying former
employees' sales commissions and profit-sharing bonuses prior to
the closing date when the individuals were still employees of the
Debtors.


PARAMOUNT LIMITED: Receiver Says Bankruptcy Filed in Bad Faith
--------------------------------------------------------------
The Police & Fire Retirement System of the City of Detroit,
Michigan, and McTevia & Associates, the court-appointed receiver,
object to the request of Paramount Limited and its debtor-
affiliates to use cash collateral.

The receiver contends there is no likelihood that the Debtors can
reorganize under Chapter 11 and that the bankruptcy case was filed
in bad faith and should be dismissed.  The Pension Fund asserts
the Debtors are incapable of operating their business.

As of the Petition Date, Paramount owed the Police & Fire
Retirement System $13,220,000 pursuant to a 2008 loan agreement.
The Pension Funds has a lien on all assets of Paramount, and
Paramount Land Holdings, LLC (MI)'s membership interests in
Paramount.  In their Cash Collateral Motion, the Debtors
acknowledged that some or all of the assets may constitute cash
collateral under Section 363 of the Bankruptcy Code.

Due to alleged defaults under the Loan Agreement, the Pension Fund
filed Case No. 11-006035-CR in the Wayne County Circuit Court
requesting the appointment of a receiver, which request was
granted.  James V. McTevia was appointed receiver.

In the Cash Collateral Motion, Paramount said that, to operate the
business and be able to propose a Plan of Reorganization, the
Debtors are in desperate need of the use of cash collateral.
Without the use of cash collateral, the Debtors would be forced to
shut down their operations and liquidate their assets.

The Debtors project that the funds needed to permit them to
operate through the third week of August, including payment of
administrative expenses of the estate, is $95,000 which consists
of:

     * the amounts owed for the services of Southern Servicing,
       LLC, pursuant to a Management Agreement for the managing
       of the Debtors' operations,

     * adequate protection/interest payments to the Pension Fund,
       and

     * funding of professional fees to be held in trust by the
       Debtors' counsel pending approval from the Court.

Southern is responsible for collecting accounts receivable,
advertising and marketing for sales of the Debtors' properties,
maintaining records concerning the Debtors' properties and the
transactions associated therewith.

The Debtors contend that the Pension Fund has adequate protection
for its secured claim in the form of an equity cushion of
$6,645,450.  Based on the Receiver's Fourth Weekly and First
Thirty-Day Advisory Report to the Court and First Petition for the
Payment of the Receiver's Fees and Expenses:

     -- The receivables owed to the Debtors on account of land
        contracts and/or notes receivables is at least $17 million
        of which 43% is current with the balance paying, albeit
        late.  Only about 60 of the nearly 600 accounts in the
        Receivables Portfolio are in forfeiture proceedings.

     -- The Debtor's cash receipts will be in the range of $50,000
        to $100,000 per a month while Debtors expected expenses
        are $85,000, which includes interest.

Debtors also have a number of unsold real properties which are
worth an estimated $2,865,450.

Additionally, the Debtors propose to grant the Pension Fund
further adequate protection for the Debtor's use of cash
collateral in the form of replacement liens, to the same extent
and priority as held on the Petition Date, on post-petition assets
of the estate.

The receiver, however, is concerned that if the Court were to
grant the use of cash collateral and order the turnover of records
to the Debtors, there is substantial likelihood -- based on
previous behavior -- that records will disappear and any cash flow
received by the Debtors will be dissipated.  The receiver also
contends that the Debtors have not made any provision for payment
or escrow for current taxes.  According to the receiver, the only
reason he has been able to operate is that the Pension Fund
advanced $50,000.  The receiver also notes he has terminated
Southern Servicing as of August 1 but Southern has failed or
refused to forward receipts of land contracts.

The Pension Fund meanwhile contends that the Debtors have failed
to pay more than $10,000 in real estate taxes.  The Pension Fund
also says it is undersecured, and that there is insufficient cash
flow to pay adequate protection.

The Bankruptcy Court initially held a hearing on the Cash
Collateral Motion and decided to adjourn matter.  The Court will
hold another hearing on Aug. 30, 2011, at 10:00 a.m.

                     About Paramount Limited

Paramount Limited LLC was an investor in distressed real estate.
Paramount Limited and three other affiliates sought Chapter 11
bankruptcy protection (Bankr. E.D. Mich. Lead Case No. 11-59829)
on July 21, 2011, after a state court appointed McTevia &
Associates as receiver to take over.  The receiver was appointed
at the behest of the Police and Fire Retirement System of the city
of Detroit, one of Paramount's unsecured creditors, with $13.2
million owed.  The Retirement System said Paramount was "a classic
Ponzi scheme."

Judge Thomas J. Tucker presides over the case.  Gene R. Kohut of
Kohut Management Group, LLC, has been tapped to serve as their
Chief Restructuring Officer.  Stephen M. Gross, Esq., and Jayson
Russ, Esq., at McDonald Hopkins Plc, serve as bankruptcy counsel.
Paramount Limited estimated assets of more than $10 million and
debt of less than $10 million.  The petition was signed by Abner
McWhorter, Paramount's managing member.

Affiliates that simultaneously sought Chapter 11 protection are
Paramount Land Holdings, LLC; Paramount Servicing, LLC; and
Paramount Land Holdings, LLC.

The receiver is represented by:

          Mark S. Frankel, Esq.
          Jerry M. Ellis, Esq.
          COUZENS LANSKY FEALK ELLIS ROEDER & LAZAR P.C.
          39395 W. Twelve Mile Road, Suite 200
          Farmington Hills, MI 48331
          Tel: 248-489-8600
          E-mail: mfrankel@couzens.com
                  jerry.ellis@couzens.com

The Police and Fire Retirement System is represented by:

         Marie T. Racine, Esq.
         Jennifer A. Cupples, Esq.
         RACINE & ASSOCIATES
         1001 Woodward Avenue, Suite 1100
         Detroit, MI 48226
         Tel: 313-961-8930
         Fax: 313-961-8945
         E-mail: mracine@racinelaw.us
                 jcupples@racinelaw.us


PARAMOUNT LIMITED: Court Wants Combined Plan & Outline by Nov. 18
-----------------------------------------------------------------
The Bankruptcy Court at a hearing on Aug. 3 directed Paramount
Limited and its debtor-affiliates to file a Combined Plan and
Disclosure Statement by Nov. 18, 2011.  The Court will hold a plan
confirmation hearing Jan. 4, 2012, at 11:00 a.m.  Plan ballots
will be due Dec. 23, 2011.  Objections to Disclosure and
Confirmation of Plan will due Dec. 23.

Objections to the Court's Fast Track Order are due Aug. 24, 2011.

                     About Paramount Limited

Paramount Limited LLC was an investor in distressed real estate.
Paramount Limited and three other affiliates sought Chapter 11
bankruptcy protection (Bankr. E.D. Mich. Lead Case No. 11-59829)
on July 21, 2011, after a state court appointed McTevia &
Associates as receiver to take over.  The receiver was appointed
at the behest of the Police and Fire Retirement System of the city
of Detroit, one of Paramount's unsecured creditors, with $13.2
million owed.  The Retirement System said Paramount was "a classic
Ponzi scheme."

Judge Thomas J. Tucker presides over the case.  Gene R. Kohut of
Kohut Management Group, LLC, has been tapped to serve as their
Chief Restructuring Officer.  Stephen M. Gross, Esq., and Jayson
Russ, Esq., at McDonald Hopkins Plc, serve as bankruptcy counsel.
Paramount Limited estimated assets of more than $10 million and
debt of less than $10 million.  The petition was signed by Abner
McWhorter, Paramount's managing member.

Affiliates that simultaneously sought Chapter 11 protection are
Paramount Land Holdings, LLC; Paramount Servicing, LLC; and
Paramount Land Holdings, LLC.

The receiver is represented by lawyers at Couzens Lansky Fealk
Ellis Roeder & Lazar P.C.  The Police and Fire Retirement System
is represented by Racine & Associates.


PENSON WORLDWIDE: Cut by Moody's to 'B2' on Continued Losses
------------------------------------------------------------
Rating and Senior Secured Ratings of Penson Worldwide, Inc. to B2
from B1 and continues to review these ratings for possible further
downgrade.

RATINGS RATIONALE

The rating action reflects Moody's view that Penson's financial
flexibility is severely limited as a result of continued operating
losses due to industry-wide low trading volumes and the current
historic low interest rate environment. In addition, Penson's cash
flow leverage has increased significantly over the past several
quarters, and the company may find it increasingly difficult to
service its debt obligations without an improvement in operating
performance and/or strategic asset sales.

In explaining the downgrade, Moody's pointed to Penson's recent
financial results. For the 2Q2011, the company recorded net
revenues of $78 million (4.7% reduction from 1Q2011) and a $48
million pre-tax loss. The pre-tax loss was exacerbated by a $43
million write-down of non-accrual receivables primarily associated
with margin loans backed by Retama Development Authority bonds
that are secured by a horse racing track and other related real
estate. The large size of the Retama margin loan receivable to a
former Penson board member raises Moody's concerns regarding the
company's governance and risk management controls.

The company has announced several strategic initiatives that are
designed to reduce operating costs and leverage, and improve
profitability. These actions include, (1) exploring the sale of
Pension Financial Services Ltd (UK), (2) creating a strategic
partnership between Penson Financial Services Australia Pty Ltd or
an outright sale of this subsidiary, (3) combining Penson's
registered Broker Dealer unit with its US Futures operation to
free-up excess regulatory capital, and (4) streamlining the
company's operation to reduce operating expenses. This extensive
restructuring plan entails significant execution risk.

In its continued review for downgrade, Moody's will further
examine to what degree Penson can execute a turnaround of its core
business and its ability to improve its debt burdened capital
structure through strategic asset sales and debt reduction.

The last rating action on Penson was on June 30, 2011, when the B1
Corporate Family Rating and Senior Secured rating was placed on
review for downgrade. The principal methodology used in this
rating was the Global Securities Industry Methodology published in
December 2006. Please see the Credit Policy page on www.moodys.com
for a copy of this methodology.

Penson Worldwide, Inc., is headquartered in Dallas, Texas.


PENSON WORLDWIDE: S&P Affirms 'BB-' Counterparty Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Penson
Worldwide Inc. to negative from stable. "At the same time, we
affirmed our ratings, including the 'BB-' counterparty credit
rating," S&P said.

"The outlook revision reflects our opinion that continued volatile
market volumes and low interest rates have and will hurt the
company's profitability metrics and ability to internally generate
capital through 2011," said Standard & Poor's credit analyst Vikas
Jhaveri. Penson posted net losses for the first two quarters of
2011, after a net loss for 2010. In the most recent quarter, the
company posted a net operating loss of $3.5 million (after tax),
which was primarily a result of low volumes in the second half of
the quarter. Furthermore, the company took a large charge of
approximately $26.7 million (after tax) in the quarter, reflecting
a write-down of nonaccrual receivables. These receivables have
underlying collateral largely consisting of illiquid municipal
bonds that Retama Development Corp. (Retama) issued. Although the
write-down will not affect the company's regulatory capital and
liquidity since these bonds have already been marked down for
regulatory purposes, it will decrease the book equity.
Furthermore, the company still has approximately $54 million of
additional collateral backed by municipal bonds, which it has not
written down.

The company has announced several strategic initiatives in
response to the low market volumes and low interest rates to
increase profitability and capital. "Although we believe these
initiatives will better position the company through cost savings
and increase liquidity, we remain concerned over the company's
short-term earnings potential as these steps take form. We will
continue to monitor the company's progress toward achieving these
goals and how it will ultimately impact profits and capital," S&P
said.

"Our ratings on Penson reflect the company's strong franchise in
providing clearing, execution, securities lending, and other
processing services to the global securities industry. The ratings
also consider Penson's limited propensity to take on proprietary
trading risk, acting primarily as a clearing broker for its
clients. The high operating leverage inherent in Penson's
business model, high financial leverage, and a risk-management
framework that we believe is not yet fully integrated offset the
strengths," S&P related.

"The negative outlook reflects our expectation that macroeconomic
factors will continue to weigh negatively on the company's ability
generate positive operating earnings and generate capital. If net
losses continue into 2012 and if the company doesn't execute on
certain strategic initiatives, resulting in further deteriorating
profitability, we could lower the ratings. Alternatively, if the
company's strategic initiatives result in improving profitability
and increasing capital levels, we could change the outlook back
to stable," S&P added.


PIERCE COMMERCIAL: 4 Former Employees Indicted for Conspiracy
-------------------------------------------------------------
Four former bank employees have been indicted by the grand jury in
connection with fraudulent mortgage loans originated at the now
defunct Pierce Commercial Bank.  The lead defendant in the case,
Shawn L. Mr. Portmann, 39, was arrested this morning and will make
his initial appearance in U.S. District Court in Tacoma.  Mr.
Portmann, a former Senior Vice President and loan officer at the
Bank, is charged in a 30 count indictment with conspiracy, false
statements on loan applications, false statements to HUD, mail
fraud, wire fraud, bank embezzlement, and transactional money
laundering.  Three other defendants are charged in the indictment:
Sonja L. Lightfoot, 52, the former Senior Vice President of
Residential Lending at Pierce Commercial Bank; Jeanette R. Salsi,
54, a former underwriter at Pierce Commercial Bank; and ADAM S.
VOELKER, 38, a former loan processor at Pierce Commercial Bank
from January 2005 until July 2006.  Pierce Commercial Bank was
closed by regulators in November 2010, in part because of mortgage
lending losses.

"This conspiracy didn't just damage Pierce Commercial Bank.  This
activity helped pump up the housing bubble that artificially drove
up valuations, and now leaves innocent families underwater on
their mortgages," said U.S. Attorney Jenny A. Durkan.  "Mr.
Portmann and his co-conspirators are being held accountable for
their criminal conduct that was fueled by greed.  I commend the
painstaking work by FBI, IRS-CI, HUD-OIG and U.S. Postal
Inspection Service in bringing this case."

According to the indictment, between 2004 and 2008, Mr. Portmann
and the other defendants conspired to submit false documents
within various loan documents and applications.  They falsified
information about the borrowers' qualifications as well as about
the value of the properties being purchased.  Based on a review of
a sample of loans, the co-conspirators caused more than 270 loans
that contained false and fraudulent documents and information to
be funded by Pierce Commercial Bank representing in excess of $45
million in loan proceeds.  More than 100 of these loan files have
defaulted, causing in excess of $10 million in loss to Pierce
Commercial Bank, secondary investors, and HUD/FHA.  The indictment
details multiple false statements included in loan documents
regarding an applicant's employment, income, and intention to
reside in the property.

The indictment alleges that Mr. Portmann committed mail fraud
affecting a financial institution when sending various documents
through the mail to support the scheme.  Mr. Portmann and
LIGHTFOOT are charged with counts of wire fraud stemming from the
sale of these mortgages on the secondary market to financial
institutions such as Wells Fargo, Countrywide, IndyMac and J.P.
Morgan Chase.

Mr. Portmann is charged with bank embezzlement for billing Pierce
Commercial Bank for advertising that never occurred.  Mr. Portmann
set up two companies, The Principles, LLC and WM1, LLC.  Using
these companies Mr. Portmann billed Pierce Commercial Bank more
than $150,000 for advertising that was never provided.  Mr.
Portmann used some of these funds to purchase a $68,000 BMW.  That
purchase is the basis for the transactional money laundering
count.

"This investigation targets an unscrupulous goliath in the
mortgage industry-someone who brokered thousands of loans with
little regard for the ability of the borrowers to make good on the
payments," said Laura M. Laughlin, Special Agent-in-Charge of the
FBI Seattle office. "Fraudulent business practices on thousands of
loans that Mr. Mr. Portmann and his co-conspirators pushed through
unquestionably contributed to the larger housing market decline
and the failure of Pierce Commercial Bank."

"Mortgage fraud has burdened our economy and caused an urgent
reliance on the government, and ultimately the taxpayer, to
bolster devastated communities," said Wayne North, Special Agent
in Charge of HUD's Office of Inspector General.  "HUD OIG is
deeply committed to working with our law enforcement partners in
the continuing efforts to bring to justice those that seek to
enrich themselves at the expense of our economic well-being."

"Mortgage fraud is a modern day plague throughout the country that
has burdened lenders with bad loans and neighborhoods with
abandoned and deteriorating properties," said Marcus Williams, the
IRS Special Agent in Charge of the Pacific Northwest.  "Washington
residents can rest assured knowing that federal law enforcement
takes mortgage fraud seriously since it played a major role in
almost crippling our nation's banking system just a few years
ago."

Pierce Commercial Bank received $6.8 million from Troubled Asset
Relief Program (TARP) in January 2009.  This money was never
repaid.

False statements in loan applications, mail fraud affecting a
financial institution, and bank embezzlement are punishable by up
to 30 years in prison and a $1,000,000 fine.  Wire fraud is
punishable by up to 20 years in prison and a $250,000 fine.
Conspiracy is punishable by up to five years in prison and a
$250,000 fine.  False statements to HUD are punishable by up to
two years in prison and a $250,000 fine.  Transactional money
laundering is punishable by up to 10 years in prison and a
$250,000 fine.

The charges contained in the indictment are only allegations.  A
person is presumed innocent unless and until he or she is proven
guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI, the HUD Office of
Inspector General (HUD-OIG), Internal Revenue Service Office of
Criminal Investigation (IRS-CI) and the United States Postal
Inspection Service.  The case is being prosecuted by Assistant
United States Attorneys Brian Werner and Arlen Storm.
This indictment is brought as part of President Barack Obama's
Financial Fraud Enforcement Task Force.

President Obama established the interagency Financial Fraud
Enforcement Task Force to wage an aggressive, coordinated and
proactive effort to investigate and prosecute financial crimes.
The task force includes representatives from a broad range of
federal agencies, regulatory authorities, inspectors general, and
state and local law enforcement who, working together, bring to
bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal
executive branch, and with state and local partners, to
investigate and prosecute significant financial crimes, ensure
just and effective punishment for those who perpetrate financial
crimes, combat discrimination in the lending and financial
markets, and recover proceeds for victims of financial crimes.


POST STREET: Stutman Treister Approved as Reorganization Counsel
----------------------------------------------------------------
The Hon. Thomas E. Carlson of the U.S. Bankruptcy Court for the
Northern District of California authorized Post Street, LLC, to
employ Stutman, Treister & Glatt Professional Corporation as
reorganization counsel.

As reported in the Troubled Company Reporter on July 25, 2011,
ST&G is representing the Debtor in the Chapter 11 proceedings.

ST&G received $22,610 for prepetition services rendered.  The
amount came from the $280,000 retainer that ST&G received for
services to be rendered and expenses to be incurred in connection
with the Debtor's Chapter 11 case.  The Debtor does not owe ST&G
any amount for prepetition services.  As of the Petition Date,
$257,989 of the retainer remains in a segregated interest-bearing
trust account.

Stanley Gribble, the sole member and sole manager of the Debtor
advanced the retainer on behalf of the Debtor.

To the best of the Debtor's knowledge, ST&G is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

                       About Post Street LLC

Post Street LLC, based in San Francisco, California, filed for
Chapter 11 bankruptcy (Bankr. Case No. 11-32255) on June 15, 2011.
Judge Thomas E. Carlson presides over the case.  Eric D. Goldberg,
Esq., at Stutman, Treister and Glatt, serves as the Debtor's
bankruptcy counsel. The Debtor disclosed assets of $3,316 plus
unknown amount and liabilities of $55,906,564 as of the Chapter 11
filing.  The petition was signed by Stanley W. Gribble, authorized
agent.


POST STREET: LZSH OK'd to Handle Disputes with PIL/Eurohypo
-----------------------------------------------------------
The Hon. Thomas E. Carlson of the U.S. Bankruptcy Court for the
Northern District of California authorized Post Street, LLC, to
employ Lurie, Zepeda, Schmalz & Hogan, A Professional Corporation,
as special litigation counsel.

As reported in the Troubled Company Reporter on July 25, 2011,
prepetition, LZSH represented and advised the Debtor in connection
with the Debtor's disputes with Eurohypo AG, New York Branch Loan
to Post Investors LLC, an affiliate of Square Mile Capital
Management, LLC, and First American Title Insurance Company,
including representing the Debtor, Festival Retail Fund 1 228 Post
Street, LP and Stanley Gribble, the Debtor's sole member.

The Debtor owns a 34.41% tenant in common interest in a commercial
building located at 228-240 Post Street, in San Francisco,
California.  Festival owns the other 65.59% tenant in common
interest in the property.

The Debtor wishes to employ Bruce J. Lurie, Andrew W. Zepeda,
Lawrence J. Imel and other members, associates, and of-counsel
attorneys of LZSH, as the Debtor's special litigation counsel.

In a separate motion, the Debtor requested for permission to
employ Nossaman LLP as special litigation counsel.

During one year prior to the Petition Date, LZSH did not receive
any compensation from the Debtor.  LZSH received compensation in
the aggregate amount of $100,000 from Mr. Gribble for prepetition
services rendered.  As of the Petition Date, the LZSH holds a
claim totaling approximately $165,800 for prepetition services
rendered on behalf of the Debtor, Festival and Mr. Gribble.

To the best of the Debtor's knowledge, LZSH is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

                       About Post Street LLC

Post Street LLC, based in San Francisco, California, filed for
Chapter 11 bankruptcy (Bankr. Case No. 11-32255) on June 15, 2011.
Judge Thomas E. Carlson presides over the case.  Eric D. Goldberg,
Esq., at Stutman, Treister and Glatt, serves as the Debtor's
bankruptcy counsel.  Nossaman LLP serves as special litigation
counsel.  The Debtor disclosed assets of $3,316 plus unknown
amount and liabilities of $55,906,564 as of the Chapter 11 filing.
The petition was signed by Stanley W. Gribble, authorized agent.


POST STREET: Nossaman LLP Approved as Special Litigation Counsel
----------------------------------------------------------------
The Hon. Thomas E. Carlson of the U.S. Bankruptcy Court for the
Northern District of California authorized Post Street, LLC, to
employ Nossaman LLP as special litigation counsel.

As reported in the Troubled Company Reporter on July 25, 2011,
prepetition, Nossaman represented and advised the Debtor in
connection with its dispute with Eurohypo AG, New York Branch
Loan to Post Investors LLC, as local San Francisco counsel to
Lurie Zepeda Schmals & Hogan, which is based in Beverly Hills,
California.  The representation included representing the Debtor
in the civil action before the Superior Court of the State of
California, County of San Francisco.

The Debtor will employ Brendan F. Macaulay, and other members,
associates, and of-counsel attorneys of Nossaman.  Nossaman's role
would be limited to a local counsel role, with LZSH providing
great majority of the services in the PIL Eurohypo litigation.

In a separate motion, the Debtor requested for permission to
employ Lurie, Zepeda, Schmalz & Hogan, A Professional Corporation,
as special litigation counsel.

Prepetition, Nossaman received compensation in the aggregate
amount of $5,000.  As of the petition date, the Debtor owes
Nossaman $11,688 for prepetition services.

To the best of the Debtor's knowledge, Nossaman is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                       About Post Street LLC

Post Street LLC, based in San Francisco, California, filed for
Chapter 11 bankruptcy (Bankr. Case No. 11-32255) on June 15, 2011.
Judge Thomas E. Carlson presides over the case.  Eric D. Goldberg,
Esq., at Stutman, Treister and Glatt, serves as the Debtor's
bankruptcy counsel. The Debtor disclosed assets of $3,316 plus
unknown amount and liabilities of $55,906,564 as of the Chapter 11
filing.  The petition was signed by Stanley W. Gribble, authorized
agent.


PRECISION PARTS: Sets Oct. 28 Plan Confirmation Hearing
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Precision Parts International Services Corp., a
producer of metal formed components for the auto and aerospace
industries, scheduled an Oct. 28 confirmation hearing for approval
of the liquidating Chapter 11 plan.

Last week, the bankruptcy judge in Delaware approved the
disclosure statement giving creditors the information needed to
decide how to vote.

According to the report, the disclosure statement tells unsecured
creditors they can expect to recover between 0.15% and 0.35% on
their $103 million in claims.  PPI sold the assets in March 2009,
producing net proceeds of $16 million.  Secured lenders received
$9.8 million immediately.

Mr. Rochelle relates that the Plan resulted from a settlement with
secured lenders where $575,000 was carved out for creditors with
lower priorities.  In addition to $150,000 cash, unsecured
creditors are to receive some recoveries from lawsuits, plus
excess cash, if any.

                       About Precision Parts

Headquartered in Rochester Hills, Michigan, Precision Parts
International Services Corp. -- http://www.precisionparts.com/--
sold products to major north American automotive and non-
automotive original equipment manufacturers and Tier 1 and 2
suppliers.  PPI and its units operated six manufacturing
facilities throughout North America, including a facility in
Mexico operated on their behalf by Intermex Manufactura de
Chihuahua under a shelter and logistics agreement.

The Company and eight of its affiliates filed for Chapter 11
protection on Dec. 12, 2008 (Bankr. D. Del. Lead Case No.
08-13289).  Attorneys at Pepper Hamilton LLP serve as the Debtors'
bankruptcy counsel.  Alvarez & Marsal North America LLC is the
Debtor's financial advisors and Kurtzman Carson Consultants LLC is
the claims, noticing and balloting agent.  PPI Holdings, Inc.,
estimated assets and debts between $100 million and $500 million
in its Chapter 11 petition.

Attorneys at Stevens & Lee, P.C., represent the Creditors
Committee as counsel.

On March 13, 2009, the Bankruptcy Court approved the sale of
substantially all of the Debtors' assets to Cerion, LLC.  The sale
closed on March 26, 2009.  The Debtors received net proceeds of
approximately $16,031,508 after an agreed upon working capital
adjustment.


PURSELL HOLDINGS: Has Until Sept. 6 to File Chapter 11 Plan
-----------------------------------------------------------
The Hon. Jerry W. Venters of the U.S. Bankruptcy Court for the
Western District of Missouri extended the exclusive periods of
Pursell Holdings to file and solicit acceptances for the proposed
chapter 11 plan until Sept. 6, 2011, and Nov. 7, respectively.

According to the Troubled Company Reporter on June 29, 2011, the
Debtor anticipates it will file an initial plan prior to July 8,
but it will likely require amendments to address treatment for
some secured creditors and to address issues not yet resolved in
its claims objections.

The Debtor sought the extension out of an abundance of caution but
remains hopeful it can file a confirmable plan by the initial
deadline.

                     About Pursell Holdings

Liberty, Missouri-based Pursell Holdings, LLC, filed for Chapter
11 bankruptcy protection (Bankr. W.D. Mo. Case No. 11-40999) on
March 10, 2011.  Frank Wendt, Esq., Brown & Ruprecht, P.C., serves
as the Debtor's bankruptcy counsel.  In its schedules, the Debtor
disclosed $12,204,248 in assets and $23,382,741 in debts.
Affiliate Damon Pursell Construction Company filed a separate
Chapter 11 petition (Bankr. W.D. Mo. Case No. 10-44965) on
Sept. 15, 2010.

The U.S. Trustee said that a committee under 11 U.S.C. Sec. 1102
has not been appointed because an insufficient number of persons
holding unsecured claims against Pursell Holdings LLC have
expressed interest in serving on a committee.  The U.S. Trustee
reserves the right to appoint such a committee should interest
develop among the creditors.


PURSELL HOLDINGS: Wants to Use Morris & Janes Cash Collateral
-------------------------------------------------------------
Pursell Holdings, LLC, asks the U.S. Bankruptcy Court for the
Western District of Missouri to approve the stipulation providing
adequate protection to Morrill & Janes Bank, a secured lender to
the Debtor.

The Debtor, together with Summerfield Development Company, Inc.,
gave a Promissory Note in the amount of $199,500 to Lender on
May 29, 2007.  The Debtor also gave a second Promissory Note in
the amount of $199,500 to the Lender on May 29, 2007.  The Lender
has a first and senior lien interest in Lots 123 and 133, Pine
Grove Meadows 2nd Plat, a Subdivision of Kansas City, Clay County,
Missouri, securing both the Renewal Note and the Debt Modification
Agreement and in the rents.

The Debtor retains an account with Lender containing a balance of
$5,142 and has also segregated the post-petition rents received
from the two tenants of the subject properties pursuant to the
Assignment of Leases and Rents contained in the Deed of Trust and
Lender's demand.  The Debtor now holds the total sum of $14,000,
representing rent payments from March 10 to July 11.  The parties'
stipulation provides for the application of those funds and
resolves that issues relating to the administrative hold on the
Debtor's checking account.

Pursuant to the terms and conditions in the Stipulation, Debtor
and Lender have agreed to provide for adequate protection of
Lender's secured claim in the rents and the real property by,
among other things, periodic cash payments to Lender, for so long
as there are rents being paid to the Debtor and to permit the
continued marketing of the property for nearly five more months
without any additional loan servicing required from other assets
of the Debtor.  The resolution of the issues as set forth in the
Stipulation is in the best interests of the Debtor's creditors
and estate.

Pursell Holdings intends to repay its unsecured creditors from
the excess rents generated by its commercial properties.  The
residential properties are properties that remain in inventory as
the Debtor exits the residential development market.  The purpose
of the stipulation is to provide for an orderly liquidation of
these two residential properties while limiting the exposure of
the Debtor's stream of income from its commercial properties to
the claims of Morrill & Janes Bank.  The terms of the Stipulation
are favorable to the Debtor and its estate as it permits the
Debtor an opportunity to realize upon a small amount of equity
while limiting the Debtor's exposure to a deficiency claim.  The
effective liquidation of this property and limitation of liability
is in the best interests of the Debtor and its creditors.

                     About Pursell Holdings

Liberty, Missouri-based Pursell Holdings, LLC, filed for Chapter
11 bankruptcy protection (Bankr. W.D. Mo. Case No. 11-40999) on
March 10, 2011.  Frank Wendt, Esq., Brown & Ruprecht, P.C., serves
as the Debtor's bankruptcy counsel.  In its schedules, the Debtor
disclosed $12,204,248 in assets and $23,382,741 in debts.
Affiliate Damon Pursell Construction Company filed a separate
Chapter 11 petition (Bankr. W.D. Mo. Case No. 10-44965) on
Sept. 15, 2010.

The U.S. Trustee said that a committee under 11 U.S.C. Sec. 1102
has not been appointed because an insufficient number of persons
holding unsecured claims against Pursell Holdings LLC have
expressed interest in serving on a committee.  The U.S. Trustee
reserves the right to appoint such a committee should interest
develop among the creditors.


QUINCY MEDICAL: Creditors Committee Taps Duane Morris as Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of Quincy Medical Center, Inc., et al., asks the U.S.
Bankruptcy Court for the District of Massachusetts for permission
to retain Duane Morris LLP as its counsel.

Duane Morris will, among other things:

   -- assist and advise the Committee as to its communications to
  the general creditor body regarding significant matters in the
  chapter 11 cases;

   -- represent the Committee at all hearings and other
   proceedings before the Court; and

   -- review and analyze motions, applications, orders,
   statements, operating reports and schedules filed with this
   Court and advise the Committee as to their propriety, and to
   the extent deemed appropriate by the Committee support, join or
   object thereto, as applicable.

The hourly rates of Duane Morris' personnel are:

         Partners                    $375 - $935
         Special Counsel and Counsel $300 - $915
         Associates                  $225 - $510
         Paraprofessionals           $125 - $335

Duane Morris attorneys expected to have primary responsibility for
providing services to the Committee are:

         Paul D. Moore, partner          $695
         Jeffrey D. Sternklar, partner   $675
         Wendell M.N. Harp, associate    $350

To the best of the Committee's knowledge, Duane Morris is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                   About Quincy Medical Center

Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy,
Massachusetts.

Quincy Medical Center, Inc. together with two affiliates, sought
Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on
July 1, 2011.

John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves
as counsel to the Debtors.  Navigant Capital Advisor LLC and
Navigant Consulting Inc. serve as financial advisors.  Epiq
Bankruptcy Solutions LLC is the claims, noticing, and balloting
agent.

Quincy disclosed assets of $73 million and liabilities of
$79.4 million.  Debt includes $56.4 million owing on secured bonds
issued through a state health-care finance agency.  There is
another $2.5 million secured obligation owing to Boston Medical
Center Corp.  Accrued liabilities are $18.2 million.

On July 12, 2011, the U.S. Trustee for the District of
Massachusetts appointed the Official Committee of Unsecured
Creditors.


QUINCY MEDICAL: Committee Taps Deloitte FAS as Financial Advisor
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of Quincy Medical Center, Inc., et al., asks the U.S.
Bankruptcy Court for the District of Massachusetts for permission
to retain Deloitte Financial Advisory Services LLP as its
financial advisor.

Deloitte FAS will, among other things:

   -- assist and advise the Committee in connection with the
   identification, development, and implementation of strategies
   related to the Debtors' business plan and other matters, as
   agreed, relating to the restructuring of the Debtors' business
   operations;

   -- assist the Committee in understanding the business and
   financial impact of various operational, financial, and
   strategic restructuring alternatives on the Debtors; and

   -- advise the Committee in connection with its negotiations and
   due diligence efforts with other parties relating to the sale
   of the business.

Sheila T. Smith, a principal of Deloitte FAS, tells the Court that
the hourly rates of Deloitte FAS' personnel are:

         Partner/Principal/Director                $810 - $875
         Senior Manager                                $770
         Manager                                       $675
         Senior Associate                              $520
         Associate and Junior Staff                $310 - $420
         Administrative                                $125

Notwithstanding the foregoing, Deloitte FAS will agree to take a
voluntary reduction in its fees so that the blended rate for the
services does not exceed $425 per hour.

Ms. Smith assures the Court that Deloitte FAS is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

                   About Quincy Medical Center

Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy,
Massachusetts.

Quincy Medical Center, Inc. together with two affiliates, sought
Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on
July 1, 2011.

John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves
as counsel to the Debtors.  Navigant Capital Advisor LLC and
Navigant Consulting Inc. serve as financial advisors.  Epiq
Bankruptcy Solutions LLC is the claims, noticing, and balloting
agent.

Quincy disclosed assets of $73 million and liabilities of
$79.4 million.  Debt includes $56.4 million owing on secured bonds
issued through a state health-care finance agency.  There is
another $2.5 million secured obligation owing to Boston Medical
Center Corp.  Accrued liabilities are $18.2 million.

On July 12, 2011, the U.S. Trustee for the District of
Massachusetts appointed the Official Committee of Unsecured
Creditors.


REAL MEX: S&P Raises Corporate to 'CC' on Interest Payment
----------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on Cypress,
Calif.-based Real Mex Restaurants Inc., including the corporate
credit rating to 'CC' from 'D'.

The rating action reflects Real Mex's announcement that it paid
the missed interest payment on its senior secured notes that was
due on July 1, 2011 within the grace period. The company also
amended its credit agreement and bond indenture to provide for the
waivers of certain financial covenant breaches and cross-defaults.
The amendment also required the company to submit a proposal to
restructure its debt on or prior to Sept. 15, 2011 and to
execute the restructuring on or prior to Oct. 31, 2011.

"In our view, making the interest payment is only a temporary
respite from the company's financial difficulties," said Standard
& Poor's credit analyst Andy Sookram. "We forecast free operating
cash flow remaining at negligible levels, which significantly
tightens liquidity and pressures its ability to service upcoming
debt requirements. As a result, we see the company restructuring
its balance sheet in a manner that is detrimental to lenders,
either filing for protection under Chapter 11 or pursuing a debt
exchange to lower its financial burden. The latter would result in
a selective default," S&P related.

"Real Mex has weak liquidity, in our opinion," added Mr. Sookram.
Sources of cash include funds from operations and availability
under its revolving credit facility. Uses of cash include capital
spending and debt service requirements," S&P said.

Key assumptions of S&P'S liquidity assessment include:

    Sources declined significantly following the $9.2 million
    interest payment in July 2011. At March 27, 2011, the company
    had $1.7 million cash on hand and $10.4 million availability
    under the revolving credit facility.

    Capital spending could decline to maintenance levels over the
    next year, to under $6 million.

    It has significant upcoming debt maturities, with the
    revolving credit facility due July 2012 and the secured notes
    in 2013.

"The negative rating outlook reflects our opinion that Real Mex is
likely to restructure its balance sheet either through a Chapter
11 filing or a debt exchange transaction. If a bankruptcy filing
occurs, we would lower the ratings to 'D'. We would consider the
completion of any exchange of its debt where lenders receive less
than par value to be tantamount to default, and lower the ratings
to 'SD'," S&P related.


RED DOOR: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: Red Door Property Management LLC
        2009 Temple Road
        Magnolia, MS 39652

Bankruptcy Case No.: 11-02704

Chapter 11 Petition Date: August 4, 2011

Court: United States Bankruptcy Court
       Southern District of Mississippi
       (Jackson Divisional Office)

Judge: Katharine M. Samson

Debtor's Counsel: Craig M. Geno, Esq.
                  HARRIS JERNIGAN & GENO, PLLC
                  587 Highland Colony Pkwy.
                  P.O. Box 3380
                  Ridgeland, MS 39157
                  Tel: (601) 427-0048
                  Fax: (601) 427-0050
                  E-mail: cmgeno@hjglawfirm.com

Estimated Assets: $500,001 to $1,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Joel C. Groshong, member/owner.

Affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
Joel P. Groshong                       11-02179   06/20/11


REGIONS FIN'L: S&P Affirms 'BB+/B' Counterparty Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+/B'
counterparty credit rating on Regions Financial Corp. (Regions)
and its 'BBB-/A-3' rating on Regions's subsidiary Regions Bank.
"At the same time, we revised the outlook on both entities to
stable from negative," S&P related.

"The outlook change mainly results from our revised expectation
that Regions will remain profitable throughout 2011 and 2012, as
we forecast a lower level of loan-loss provisions aided by
gradually improving loan performance," said Standard & Poor's
credit analyst Robert Hansen, CFA. "Specifically, Regions's
profitability in recent quarters has modestly exceeded
our previous expectations, aided by some improvement in loan
performance, some gains on securities sales, and most recently a
very small level of reserve releases. Loan performance has
improved in recent quarters, although the pace of improvement has
lagged some peers' in our view. We think these factors and the
potential sale of Morgan Keegan increase the likelihood that the
company will redeem its preferred shares sold to the Treasury
under the Troubled Asset Relief Program. This could benefit both
profitability and common equity ratios by our forecast within the
next few quarters," S&P said.

"We expect the company to be profitable in 2011 and 2012,
consistent with recent operating results. We also expect
provisions for loan losses to remain relatively high, partly
because of depressed commercial real estate (CRE) prices. In the
second quarter, the company reported net income of $55 million
after preferred dividends, aided by lower provisions for loan
losses, reduced adjusted noninterest expenses, and modest gains on
securities sales. Furthermore, the company's results in our credit
stress-testing methodology were nearly comparable to those for
some other large regional banks," S&P said.

"The stable outlook reflects our belief that the long-term rating
is unlikely to change in the near term. More specifically, the
outlook is based partly on our expectation that NPAs will decline
gradually and that the tangible common equity ratio will rise.
However, if loan performance or capital ratios deteriorate
meaningfully from current levels or if the bank does not remain
firmly profitable as we expect, we could lower the long-term
rating. Conversely, if profitability or loan performance exhibits
more rapid and further meaningful improvement over and above our
current expectations, then we could raise the long-term rating,"
S&P related.


SALLY HOLDINGS: Reports $70.2 Million Net Earnings in Q3
--------------------------------------------------------
Sally Holdings LLC filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q reporting net
earnings of $70.24 million on $836.57 million of net sales for the
three months ended June 30, 2011, compared with net earnings of
$42.27 million on $742.97 million of net sales for the same period
a year ago.

The Company also reported net earnings of $162.92 million on $2.43
billion of net sales for the nine months ended June 30, 2011,
compared with net earnings of $105.50 million on $2.16 billion of
net sales for the same period during the prior year.

The Company's balance sheet at June 30, 2011, showed $1.72 billion
in total assets, $2.04 billion in total liabilities and a $315.93
million total member's deficit.

"We are extremely pleased with our strong financial results in the
third quarter," stated Gary Winterhalter, President and Chief
Executive Officer.  "Both Sally Beauty and BSG had a great quarter
with sales growth of 11% and 16%, respectively.  Consolidated same
store sales grew 5.9% and gross profit margin expanded 50 basis
points.  Adjusted EBITDA grew 23% to reach $133 million.  During
the quarter, we reduced our debt balance by $61 million bringing
our long-term debt reduction for the fiscal year to $77 million."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/ZhZdWn

                        About Sally Holdings

Sally Holdings, LLC, based in Denton, Texas, is a leading retailer
and distributor of beauty products with over 3,800 stores in 10
countries.  Annual revenues are around $2.6 billion.

                          *     *     *

As reported by the TCR on May 31, 2011, Standard & Poor's Ratings
Services raised its corporate credit rating on Denton, Texas-based
Sally Holdings LLC to 'BB' from 'BB-'.  "Our 'BB' rating reflects
our view that Sally Holdings LLC and its wholly owned subsidiary
Sally capital Inc. will maintain their positive momentum with
sales growth, positive comparable-store sales, margin improvement,
and debt reduction," said Standard & Poor's credit analyst Jayne
Ross, "resulting in improving credit protection measures over the
next 12 months."

It has 'B2' corporate family and probability of default ratings
from Moody's.


SANMINA-SCI's: Fitch Affirms 'B+' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has affirmed the ratings for Sanmina-SCI
Corporation:

   -- Issuer Default Rating (IDR) at 'B+';

   -- Senior secured credit facility at 'BB+/RR1';

   -- Senior unsecured notes at 'BB/RR2';

   -- Senior subordinated debt at 'B-/RR6'.

In addition the Rating Outlook is revised to Positive from Stable.

Approximately $1.2 billion of debt is affected by Fitch's action.

The Positive Rating Outlook reflects these considerations:

   -- Sanmina's leverage continues to decline, falling to 3.4
      times (x) as of July 2, 2011 from 4.6x as of July 3, 2010.
      The decline in leverage is attributed to a combination of
      10.2% revenue growth, consistent EBITDA margin levels above
      5%, and $80 million of debt reductions over the same period
      (6% of total debt).

   -- Improvements in key operating metrics reflect incremental
      success in management's efforts to differentiate Sanmina
      from larger competitors and target more niche market
      opportunities. The company has historical strength in
      complex, low-volume, high-mix manufacturing operations and
      has right-sized operations and rationalized the cost basis
      of its manufacturing base to target these opportunities.

The ratings may be upgraded if, over the longer term, Sanmina
demonstrates:

   -- Consistent organic revenue growth reflecting success in
      management's strategy and execution;

   -- Sustained EBITDA margins in excess of 5% and more consistent
      free cash flow generation;

   -- A continued commitment to using excess cash to reduce total
      debt outstanding

Alternatively, returns to prior revenue volatility and below
industry-average EBITDA margins would suggest that Sanmina is
still struggling to differentiate itself as a value-adding
manufacturing partner to successful OEMs, and is still subject to
broader industry trends, whereby the Rating Outlook would likely
return to stable. Furthermore, a decline in global economic
activity over the next 12 months would likely prohibit an accurate
assessment of Sanmina's operational progress and limit any
potential positive rating action.

Rating strengths include:

   -- Sanmina's position as one of the larger global electronics
      manufacturing services (EMS) providers with increasing
      exposure to complex manufacturing services which tend to be
      more stable and less prone to competitive threats;

   -- Fitch's belief that the long-term opportunity for revenue
      growth in non-traditional markets for Sanmina including
      industrial, clean-tech and medical supplies, should enable
      the company to grow revenue in excess of global GDP and
      continue to improve EBITDA margins.

Ratings concerns include:

   -- A difficult competitive environment which has pressured
      profitability across the industry;

   -- Management's history of underperformance, prior to the most
      recent 18-month period, in managing a global manufacturing
      operation in an industry with minimal room for execution
      missteps;

   -- A high degree of vertically integrated operations
      (components represent 20% of revenue) which, while typically
      a driver of higher margins in growth periods, presents
      additional challenges for management execution and higher
      fixed costs;

   -- Highly working-capital-intensive business which tends to be
      a drain on liquidity in periods of growth, although it may
      provide some measure of liquidity during business downturns;

   -- Sanmina's downsized operations make it significantly smaller
      than leading tier one service providers in a market where
      scale is of significant importance, though this is less of a
      concern in the higher complexity manufacturing space;

   -- Modest segment concentration with almost 47% of revenue
      coming from the networking and communications segment;

   -- Customer concentration risk with Sanmina's top 10 customers
      representing roughly 50% of revenue.

The ratings reflect these financial expectations:

   -- Fitch continues to believe that the economic drivers of the
      EMS sector are maturing, which should lead to greater
      stability and profitability of leading market participants.
      The secular trend toward increased outsourcing of
      manufacturing has and will continue to grow the pie for the
      EMS sector.

   -- The global manufacturing base and scale Sanmina offers,
      though smaller than competitors such as Flextronics
      International Ltd. and Jabil Circuit Inc., has been
      increasingly important to servicing global OEM customers,
      including the ability to manufacture product in or near the
      geographic end-market. No longer is the EMS industry driven
      largely by lowest labor cost but rather the services and
      total cost behind end-to-end product fulfillment.

   -- Sanmina's revenue grew 10.2% in the latest 12 month
      (LTM)period, overcoming slowness in certain segments,
      including defense and enterprise communications. Fitch
      expects revenue growth in the mid-single digits in fiscal
      2011 (end September), and roughly 2x global GDP growth
      thereafter fueled by increased outsourcing of manufacturing
      as well as expanding customer relationships and new customer
      program wins. Macro economic weakness and the above-average
      volatility of Sanmina's end-market demand could potentially
      offset higher growth prospects.

   -- Sanmina's EBITDA margins, which historically have been below
      peer levels and subject to greater volatility, have equaled
      or exceed the market average for the past four quarters.
      This constitutes the highest levels achieved by the company
      in over five years. Fitch expects EBITDA margins to remain
      in the low 5% range with potential upside from increased
      activity in the higher margin industrial, defense and
      medical segment, as well as improved execution in the
      components business. However, confidence in profitability
      improvements is tempered by a history of below-average
      margin levels and significant industry price competition
      which has typically capped profitability near current
      levels. Conversely, Fitch would expect margins to fall back
      to roughly 3.5% in a cyclical downturn.

   -- Fitch expects leverage (total debt to total operating
      EBITDA) to remain near the current level of 3.4x in the
      near-to-medium term absent further debt reductions. Interest
      coverage (EBITDA to total interest expense) is expected
      increase to 3.4x in fiscal 2011. Funds from operations less
      capital spending and dividends are expected to represent 10%
      of total debt at the end of fiscal 2011.

   -- Fitch expects modestly positive free cash flow in 2011 given
      the slowing working capital requirements associated with
      more moderate revenue growth. Sanmina has historically
      underperformed its peers in cash flow generation.
      Historically, funds from operations (FFO) minus capital
      expenditures and dividends as a percent of revenue has
      averaged roughly 25 basis points, leaving minimal excess
      cash to absorb working capital needs associated with revenue
      growth. Fitch believes that the ability to produce free cash
      flow through most of the business cycle would be further
      evidence of a change in the overall industry dynamics and
      supportive of positive rating action.

   -- Uses of cash flow and excess cash will principally go to
      fund organic growth, working capital needs, acquisitions,
      and continued modest debt reduction as indicated by
      management. The company's next maturity is not until 2014
      when $257 million senior secured floating-rate notes are
      due. Fitch does not expect any substantial acquisition
      activity that would result in a material leverage event.

As of July 2, 2011, liquidity was solid with $582 million in cash,
$165 million available under a $235 million senior secured
revolving credit facility which expires in November 2013, and
$24.6 million of availability from Chinese and Indian
subsidiaries' credit facilities which have a combined capacity of
$85 million. The reduced availability under the $235 million
revolver at the end of the most recent quarter reflects the
borrowing base calculation rather than borrowings under the
facility.

Sanmina recently refinanced $500 million in senior subordinated
debt with $500 million in senior unsecured debt due 2019. The
company refunded $80 million on senior subordinated debt with cash
on hand.

Total debt, as of July 2, 2011 was $1.2 billion and consists
primarily of:

   -- $257 million of senior unsecured floating-rate notes due
      June 2014;

   -- $500 million of 7% senior unsecured notes due June 2019;

   -- $400 million 8.125% senior subordinated notes due March
      2016.

The Recovery Ratings (RRs) for Sanmina reflect Fitch's recovery
expectations under a distressed scenario, as well as Fitch's
expectation that the enterprise value of Sanmina, and hence
recovery rates for its creditors, will be maximized in a
liquidation scenario rather than as a going concern. In estimating
liquidation, Fitch applies advance rates of 80%, 20%, and 10% to
Sanmina's accounts receivables, inventories, and property, plant,
and equipment balances, respectively. Fitch arrives at an adjusted
reorganization value of $806 million after subtracting
administrative claims. As is standard with Fitch's recovery
analysis, the revolver is fully drawn and cash balances fully
depleted to reflect a stress event. The 'RR1' for SANM's secured
bank facility reflects Fitch's belief that 91%-100% recovery is
realistic. The 'RR2' for the senior unsecured notes reflects
Fitch's belief that 71%-90% recovery is realistic. The 'RR6' for
SANM's senior subordinated notes reflect Fitch's belief that 0%-
10% recovery is realistic.


SEQUENOM INC: Incurs $20.9 Million Net Loss in Second Quarter
-------------------------------------------------------------
Sequenom, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on form 10-Q reporting a net loss
of $20.93 million on $13.33 million of total revenues for the
three months ended June 30, 2011, compared with a net loss of
$59.13 million on $11.41 million of total revenues for the same
period a year ago.

The Company also reported a net loss of $33.61 million on $26.84
million of total revenues for the six months ended June 30, 2011,
compared with a net loss of $76.08 million on $22.02 million of
total revenues for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $156.87
million in total assets, $30.97 million in total liabilities and
$125.90 million in total stockholders' equity.

"Results for the quarter were in line with our expectations, as we
met our goals of continued revenue growth and effective cost
controls through the first half of 2011.  We continue to move
forward on the path toward additional product commercialization,"
said Paul V. Maier, Sequenom's CFO.  "Once again our conservative
approach to cash management allowed us to maintain our strong cash
balances as we head into the second half and the implementation of
our molecular diagnostics commercialization strategy and further
development of our infrastructure to expand that business unit."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/HlNKL2

                          About Sequenom

Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a
life sciences company committed to improving healthcare through
revolutionary genetic analysis solutions.  Sequenom develops
innovative technology, products and diagnostic tests that target
and serve discovery and clinical research, and molecular
diagnostics markets.  The company was founded in 1994 and is
headquartered in San Diego, California.

Sequenom reported a net loss of $120.85 million on $47.45 million
of total revenue for the year ended Dec. 31, 2010, compared with a
net loss of $71.01 million on $37.86 million of total revenue
during the prior year.

Ernst & Young LLP of San Diego, California, in its audit report
attached to the 2010 financial statements, did not include a going
concern qualification for Sequenom.  E&Y, in its report on the
2009 results, expressed substantial doubt against Sequenom's
ability as a going concern, noting that the Company "has incurred
recurring operating losses and does not have sufficient working
capital to fund operations through 2010."


SILVERSUN TECHNOLOGIES: Reports $2.7-Mil. Net Income in 2nd Qtr.
----------------------------------------------------------------
SilverSun Technologies, Inc., formerly known as Trey Resources,
Inc., filed its quarterly report on Form 10-Q, reporting net
income of $2.35 million on $2.69 million of revenues for the three
months ended June 30, 2011, compared with a net loss of $751,608
on $1.79 million of revenues for the same period last year.

Total other income for the three months ended June 30, 2011, was
$2.27 million, as compared to other expense of $476,866 for the
three months ended June 30, 2010.  This change is primarily
attributed to the gain on the extinguishment of debt and
derivative liability of $2.23 million as well as the market value
change of derivatives related to price protections on conversion
features associated with debt of $99,247.

The Company had net income of $2.73 million on $5.45 million of
revenues for the first six months of 2011, compared with a net
loss of $328,313 on $3.62 million of revenues for the first six
months of 2010.

The Company's balance sheet at June 30, 2011, showed $1.68 million
in total assets, $2.47 million in total liabilities, all current,
and a stockholders' deficit of $790,392.

As reported in the TCR on April 2, 2011, Friedman LLP, in East
Hanover, NJ, expressed substantial doubt about Trey Resources,
Inc.'s ability to continue as a going concern, following the
Company's 2010 results.  The independent auditors noted that the
Company has incurred substantial accumulated deficits and
operating losses, and at Dec. 31, 2010, has a working capital
deficiency of approximately $5.1 million.

A copy of the Form 10-Q is available at http://is.gd/mgab1c

Livingston, N.J.-based SilverSun Technologies, Inc., formerly
known as Trey Resources, Inc., focuses on the business software
and information technology consulting market, and is looking to
acquire other companies in this industry.  SWK Technologies, Inc.,
the Company's subsidiary and the surviving company from the
acquisition and merger with SWK, Inc., is a New Jersey-based
information technology company, value added reseller, and master
developer of licensed accounting and financial software published
by Sage Software.  SWK  Technologies also publishes its own
proprietary supply-chain software, the Electronic Data Interchange
(EDI) solution "MAPADOC."  SWK Technologies sells services and
products to various end users, manufacturers, wholesalers and
distribution industry clients located throughout the United
States, along with network services provided by the Company.


SOUTH POINTE: Case Summary & 11 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: South Pointe Apartments LLC
        c/o C & G Investors, Inc.
        P.O. Box 970978
        Miami, FL 33197

Bankruptcy Case No.: 11-31959

Chapter 11 Petition Date: August 4, 2011

Court: United States Bankruptcy Court
       Southern District of Florida (Miami)

Judge: A. Jay Cristol

Debtor's Counsel: Martin L. Hannan, Esq
                  MARTIN HANNAN, P.A.
                  9370 SW 72 St # A266
                  Miami, FL 33173
                  Tel: (305) 279-7280
                  Fax: (305) 279-7145
                  E-mail: arhannanlaw@aol.com

Scheduled Assets: $4,002,001

Scheduled Debts: $20,031,817

A list of the Company's 11 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/flsb11-31959.pdf

The petition was signed by Eugene Sims, as president of C & G
Investors, Inc.


SITEBRAND INC: Obtains Revocation of Cease Trade Orders
-------------------------------------------------------
Sitebrand Inc. disclosed that effective August 5, 2011 and
August 8, 2011 the Ontario Securities Commission and British
Columbia Securities Commission, respectively, have issued orders
revoking the cease trade orders that were issued on April 15, 2011
and April 7, 2011, respectively.

The cease trade orders were issued as a result of the Company's
failure to file on a timely basis its audited annual financial for
the year ended November 30, 2010 along with related management's
discussion and analysis and the applicable officer's
certifications (the "Annual Filings").  Subsequently, the Company
also failed to file on a timely basis its interim financial
statements for the period ended February 28, 2011 along with the
related management's discussion and analysis and the applicable
officer's certifications (the "Interim Filings").  The Company
filed the Annual Filings on June 3, 2011 and the Interim Filings
on June 14, 2011.

The Company also confirmed that it filed restated management's
discussion and analysis for its first quarter ended February 28,
2011 on July 15, 2011, held its annual and special meeting of
shareholders on June 30, 2011 and filed its interim financial
statements for the period ended May 31, 2011 along with the
related management's discussion and analysis and the applicable
officer's certifications.

The Company's first quarter MD&A was re-filed in order to expand
upon the Company's disclosure with respect to its future plans for
financing and operations and its IFRS changeover plans.

The Company's shareholders approved all proposed resolutions at
the AGM, including the re-election of John Eckert, Bruce Linton
and Peter Evans as directors, the consolidation of the Company's
common shares on a 5 to 1 basis and the change of the Company's
name to Marchwell Ventures Ltd.

The Company recorded no revenue for the three month period ended
May 31, 2011.  This compares to $483,576 in the same period in the
prior fiscal year.  This was due to bankruptcy of the Company's
revenue generating subsidiary, SiteBrand.com Inc. during the first
quarter of 2011.

The net loss for the three months ended May 31, 2011 was
($73,473), as compared to a loss of ($29,161) for the same period
in the prior fiscal year. The net gain for the six months ended
May 31, 2011, was $798,903, as compared to a loss of ($141,325)
for the same period in the prior year. Of the net gain this year,
$943,322 was due to a gain on the net write off of assets and
liabilities of Sitebrand.com as consolidated with Sitebrand Inc.'s
loss on its investment and loans with its subsidiary.

Subject to regulatory approval, the Company intends to proceed
with its plans to consolidate its common shares, to change its
name, and to complete a private placement raising gross proceeds
of approximately $1 million by the issuance of subscription
receipts for units at a price of $0.01125 per unit (on a pre
consolidation basis or $0.05625 on a post consolidation basis).
Each unit will be comprised of one common share and a warrant to
purchase one additional common share at an exercise price of $0.10
for a period of 2 years following the satisfaction of certain
release conditions.

                      About SiteBrand Inc.

Based in Quebec, Canada, Sitebrand Inc. (CVE:SIB) --
http://www.sitebrand.com/-- is engaged in the business of online
marketing solutions.  The Company's Sitebrand Segment&Serve
personalization platform is designed to solve challenges faced by
online retailers and multichannel vendors: the need to convert a
higher percentage of their Web traffic into online or in-store
buyers and to build deeper, more profitable long-term customer
relationships.  The Company uses real-time technology to assess
visitor information: past transactions, key word searches and
geographic location to recognize patterns in visitor behavior and
to predict, in one or two clicks, why a visitor has come to a
particular site and what type of message would interest that
visitor. Utilizing Sitebrand's Segment&Serve solution, Sitebrand
can personalize any of the online content presented to the visitor
regardless of the medium. This includes Websites, e-mail, landing
pages, search engine marketing, affiliate marketing, banner
advertising and kiosks.


STATION CASINOS: S&P Assigns 'B' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Las Vegas-based Station Casinos LLC. The rating
outlook is stable.

"At the same time, we assigned Station Casinos LLC's senior
secured credit facilities (the Propco debt) our 'B' issue-level
rating (at the same level as the 'B' corporate credit rating) with
a recovery rating of '4', indicating our expectation of average
(30% to 50%) recovery for lenders in the event of a default. The
Propco debt comprises a $125 million revolving credit facility, a
$200 million term loan B-1, and a $750 million term loan B-2, all
of which mature June 17, 2016 (though the company may request
extensions of two additional one-year periods), and a $625 million
term loan B-3, which matures June 17, 2018," S&P related.

"In addition, we assigned subsidiary NP Opco LLC's (Opco) $25
million revolving credit facility our 'BB-' issue level rating
(two notches higher than the 'B' corporate credit rating on parent
company Station Casinos LLC) with a recovery rating of '1',
indicating our expectation for very high (90% to 100%) recovery
for lenders in the event of a default. The revolving credit
facility has first-out priority in application of proceeds from
collateral. We also assigned Opco's $435.7 million term loan our
'B+' issue level rating (one notch higher than the corporate
credit rating), with a recovery rating of '2', indicating our
expectation for substantial (70% to 90%) recovery for lenders
in the event of a default. The initial maturity date of the Opco
credit facilities is June 17, 2016, but the company may request
extensions of two additional one-year periods," S&P related.

"We also assigned subsidiary Station GVR Acquisition LLC's (GVR)
$225 million first-lien credit facility our 'BB-' issue level
rating (two notches higher than the 'B' corporate credit rating on
parent company Station) with a recovery rating of '1', indicating
our expectation for very high (90% to 100%) recovery for lenders
in the event of a default. The first-lien credit facilities
comprise a $10 million revolving credit facility and a $215
million first-lien term loan, both due June 17, 2016. We also
assigned GVR's $90 million second-lien term loan due June 17, 2017
our 'B' issue-level rating and a recovery rating of  '4',
indicating our expectation of average (30% to 50%) recovery for
lenders in the event of a default," S&P said.

"The 'B' corporate credit rating reflects our view of the credit
quality of the consolidated Station portfolio of properties and
assets, following its emergence from bankruptcy, despite the fact
that different operating subsidiaries secure different pieces of
the capital structure," said Standard & Poor's credit analyst
Melissa Long. "Given our perception of the strategic relationships
between these entities and their common management and ownership,
we expect management will make decisions regarding operating and
financial strategies with a view toward the collective group of
companies. We believe that if a payment default were to occur on
the Propco debt or at either of its subsidiaries, management would
consider alternatives regarding the capital structure of the
consolidated group, which would likely include a comprehensive
restructuring or a bankruptcy filing."


STORAGE CENTER: Case Summary & 4 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: The Storage Center, LLC
        1387 E. Pine Log Road
        Aiken, SC 29803

Bankruptcy Case No.: 11-04923

Chapter 11 Petition Date: August 5, 2011

Court: United States Bankruptcy Court
       District of South Carolina (Columbia)

Judge: David R. Duncan

Debtor's Counsel: Jane H. Downey, Esq.
                  MOORE TAYLOR & THOMAS P.A.
                  1700 Sunset Blvd
                  P.O. Box 5709
                  West Columbia, SC 29171
                  Tel: (803) 796-9160
                  E-mail: jane@mttlaw.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A list of the Company's four largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/scb11-04923.pdf

The petition was signed by William M. Nowlin, managing member.


STORY BUILDING: Disclosure Statement Hearing Continued to Oct. 20
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Santa Ana Division, approved a stipulation continuing the hearing
on the approval of the disclosure statement explaining the
reorganization plan of Story Building LLC to October 20, 2011, at
10:30 a.m.

The stipulation was entered into between Story Building LLC and
Wells Fargo Bank, N.A., as trustee for the registered holders of
J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial
Mortgage Pass-Through Certificates, Series 2004-C1.

                            The Plan

The Debtor will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.

As reported in the Troubled Company Reporter on Jan. 7, 2011,
according to the Disclosure Statement, the Plan provides for the
resolution of all claims against the estate.  Plan distributions
will be funded primarily from operations of the Story Building
property, and the new value contribution.

The Debtor's interest holder will provide $50,000 on the effective
date sufficient cash to cover payments due on the effective date
of the Plan.

Under the Plan, holders of Class 4 general non-insider unsecured
claims will receive, among other things: (i) a pro rata share of
25% of net operating income for the calendar years 2012 to 2017,
derived from the rents generated from the Story Building property;
(ii) one final payment of the balance of the allowed claim and all
accrued interest in full on or before Dec. 31, 2018; and (iii) in
the event that the property is sold, a pro rata share of up to
100% of the net proceeds, if any, after payment of all costs of
sale, etc.

Copies of the Disclosure Statement is available for free at

         http://bankrupt.com/misc/StoryBuilding_DS2.pdf

The Debtor is represented by:

     Sandford L. Frey, Esq.
     Stuart I. Koenig, Esq.
     CREIM MACIAS KOENIG & FREY LLP
     633 W. Fifth Street, 51st Floor
     Los Angeles, CA 90071
     Tel: (213) 614-1944
     Fax: (213) 614-1961
     E-mail: sfrey@cmkllp.com
             skoenig@cmkllp.com

Wells Fargo Bank is represented by:

     H. Mark Mersel, Esq.
     Sheri M. Kanesaka, Esq.
     Bryan Cave LLP
     3161 Michelson Drive, Suite 1500
     Irvine, California 92612
     Phone: (949) 223-7000
     Fax: (949) 223-7100
     E-mail: mark.mersel@bryancave.com

                    About Story Building LLC

Story Building LLC is a real estate management company based in
Irvine, California.  The Company owns and operates a 13-story
historical building located in Downtown, Los Angeles, known as the
Walter P. Story Building, located at 610 S. Broadway.  The
building is primarily utilized as a jewelry plaza.

Story Building LLC filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Calif. Case No. 10-16614) on May 17, 2010.  Sandford
Frey, Esq., who has an office in Los Angeles, California,
represents the Debtor in its restructuring effort.  The Debtor
disclosed $19,421,024 in assets and $16,500,721 in liabilities as
of the Chapter 11 filing.  There was no official committee of
unsecured creditors appointed in the Debtor's case.


TALON INTERNATIONAL: To Allow Issuance of Uncertificated Shares
---------------------------------------------------------------
The Board of Directors of Talon International, Inc., amended
Article VII of the Company's Bylaws, effective as of Aug. 2, 2011,
to allow for the issuance of uncertificated shares.  By being able
to issue uncertificated shares, the Company may now participate in
the Direct Registration System, which is currently administered by
The Depository Trust Company.  The Direct Registration System
allows investors to have securities registered in their names
without the issuance of physical certificates and allows investors
to electronically transfer securities to broker-dealers in order
to effect transactions without the risks and delays associated
with transferring physical certificates.  The amendment to the
Bylaws also provides that each registered stockholder will be
entitled to a stock certificate upon request to the Company.

A full-text copy of the Amended Bylaws is available for free at:

                        http://is.gd/bYy29y

                     About Talon International

Woodland Hills, Calif.-based Talon International, Inc. (OTC BB:
TALN) -- http://www.talonzippers.com/-- is a global supplier of
apparel fasteners, trim and interlining products to manufacturers
of fashion apparel, specialty retailers, mass merchandisers, brand
licensees and major retailers.  Talon manufactures and distributes
zippers and other fasteners under its Talon(R) brand, known as the
original American zipper invented in 1893.  Talon also designs,
manufactures, engineers, and distributes apparel trim products and
specialty waistbands under its trademark names, Talon, Tag-It and
TekFit, to more than 60 apparel brands and manufacturers including
Wal-Mart, Kohl's, J.C. Penney, Victoria's Secret, Tom Tailor,
Abercrombie and Fitch, Polo Ralph Lauren, Phillips-Van Heusen,
Reebok and Juicy Couture.  Talon has offices and facilities in the
United States, United Kingdom, Hong Kong, China, and Bangladesh.

The Company reported a net loss of $1.46 million on $41.46 million
of net sales for the year ended Dec. 31, 2010, compared with a net
loss of $2.69 million on $38.67 million of net sales during the
prior year.

The Company's balance sheet at March 31, 2011, showed $15.24
million in total assets, $10.35 million in total liabilities,
$18.48 million in Series B convertible preferred stock and a
$13.59 million in total stockholders' deficit.


TAYLOR BEAN: FDIC Seeks Dismissal of $1.75BB BofA Lawsuit
---------------------------------------------------------
Patrick Fitzgerald, writing for Dow Jones' Daily Bankruptcy
Review, reports that The Federal Deposit Insurance Corp. is asking
a federal judge to dismiss Bank of America Corp.'s lawsuit seeking
to recover $1.75 billion in losses suffered by investors in Ocala
Funding LLC, a mortgage-financing vehicle established by Taylor,
Bean & Whitaker Mortgage Corp.  The FDIC told the federal judge
Friday that BofA doesn't have the authority to sue it over losses
incurred by the Taylor Bean subsidiary.

BofA filed the lawsuit last fall in Washington.  DBR relates that
BofA, which served as the trustee for notes issued by Ocala and
sold to investors, asked a federal judge to allow it to pursue the
FDIC, the receiver for Colonial Bank and a smaller affiliate,
Platinum Community Bank.  The bank's lawyers said Colonial and
Platinum "actively participated in the fraud and contributed
directly" to $1.75 billion in losses at Ocala.  Although the banks
are under the control of the FDIC, they remain on the hook for
Ocala's losses.  BofA sued after FDIC had earlier rejected its
claim against the Colonial receivership to recover losses stemming
from the fraud at Taylor Bean and the bank.

DBR notes a BofA spokesman couldn't immediately be reached to
comment on the FDIC filing.

                         About Taylor Bean

Taylor, Bean & Whitaker Mortgage Corp. grew from a small Ocala-
based mortgage broker to become one of the largest mortgage
bankers in the United States.  In 2009, Taylor Bean was the
country's third largest direct-endorsement lender of FHA-insured
loans of the largest wholesale mortgage lenders and issuer of
mortgage backed securities.  It also managed a combined mortgage
servicing portfolio of approximately $80 billion.  The company
employed more that 2,000 people in offices located throughout the
United States.

Taylor Bean sought Chapter 11 protection (Bankr. M.D. Fla. Case
No. 09-07047) on Aug. 24, 2009.  Taylor Bean filed the Chapter 11
petition three weeks after federal investigators searched its
offices.  The day following the search, the Federal Housing
Administration, Ginnie Mae and Freddie Mac prohibited the company
from issuing new mortgages and terminated servicing rights.
Taylor Bean estimated more than $1 billion in both assets and
liabilities in its bankruptcy petition.

Jeffrey W. Kelly, Esq., and J. David Dantzler, Jr., Esq., at
Troutman Sanders LLP, in Atlanta, Ga., and Russel M. Blain, Esq.,
and Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain &
Prosser, PA, in Tampa, Fla., represent the Debtors.  Paul Steven
Singerman, Esq., and Arthur J. Spector, Esq., at Berger Singerman
PA, in Miami, Fla., represent the Committee.  BMC Group, Inc.,
serves as the claims and noticing agent.


TEN X: Foster and Smith Approved to Handle Reorganization Case
--------------------------------------------------------------
The Hon. John D. Squires of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized Ten X Capital Partners
III, LLC (Series B) to employ Foster and Smith to represent the
Debtor in the Chapter 11 proceedings.

As reported in the Troubled Company Reporter on July 25, 2011,
prepetition, Foster and Smith received $15,000 in connection with
the services rendered.  A total of $3,209 of the retainer was
applied against the fees and expenses incurred leaving a balance
of $11,791.

To the best of the Debtor's knowledge, Foster and Smith is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                    About Ten X Capital Partners

Ten X Capital Partners III, LLC (Series B) operates an industrial
real property located at 601 W. Polk Street, Chicago, Illinois, as
a telecom hotel and storage facility.  Ten X Capital Partners III,
LLC (Series B) filed a voluntary Chapter 11 petition (Bankr. N.D.
Ill. Case No. 11-27294) on June 30, 2011.  Judge John H. Squires
presides over the case.  The Debtor is represented by Chester H.
Foster, Jr., Esq., at Foster & Smith.  In its petition, the Debtor
estimated $10 million to $50 million in assets, and $1 million to
$10 million in debts.  The petition was signed by John W. Branch,
manager of RM Advisors, LLC.


TERRESTAR CORP: DIP Loan Maturity Now Extended Until Sept. 30
-------------------------------------------------------------
The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the
Southern District of New York approved the eighth amendment to
TerreStar Networks, Inc., et al.'s Debtor-in-Possession Loan
Agreement with EchoStar Corporation.

Pursuant to the eighth amendment, the loan's maturity date is now
Sept. 30, 2011.  The aggregate amount of the commitment on the
eighth amendment effective date is $90,000,000

A full-text copy of the order and the Eight Amendment to the DIP
agreement is available for free at

  http://bankrupt.com/misc/TerrestarCorp_loanagreement_order.pdf

           About TerreStar Corp. and TerreStar Networks

TerreStar Corporation and TerreStar Holdings, Inc., filed
voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for
the Southern District of New York on Feb. 16, 2011.

TSC's Chapter 11 filing joins the bankruptcy proceedings of
TerreStar Networks Inc. and 12 other affiliates, which filed on
Oct. 19, 2010.  The October Chapter 11 cases are procedurally
consolidated under TSN's Case No. 10-15446 under Judge Sean H.
Lane.

TSC is the parent company of each of the October Debtors.  TSC has
four wholly owned direct subsidiaries: TerreStar Holdings, Inc.,
TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings
Inc.

TSC's case is jointly administered with the cases of seven of the
October Debtors under the caption In re TerreStar Corporation, et
al., Case No. 11-10612 (SHL).  The seven Debtor entities who
sought joint administration with TSC are TerreStar New York Inc.,
Motient Communications Inc., Motient Holdings Inc., Motient
License Inc., Motient Services Inc., Motient Ventures Holdings
Inc., and MVH Holdings Inc.

TSC is a Delaware corporation whose main asset is the equity in
non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use
a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by
the Federal Communication Commission.  TSC also has an indirect
89.3% ownership interest in TerreStar Network, Inc., which
operates a separate and distinct mobile communications business.
TerreStar Holdings is a Delaware corporation that directly holds
100% of the interests in 1.4 Holdings LLC.

TerreStar Networks -- TSN -- the principal operating entity of
TSC, developed an innovative wireless communications system to
provide mobile coverage throughout the United States and Canada
using satellite-terrestrial smartphones.  The system, however,
required an enormous amount of capital expenditures and initially
produced very little in the way of revenue.  TSN's available cash
and borrowing capacity were insufficient to cover its funding;
thus, forcing TSN to seek bankruptcy protection in October 2010.

TSC estimated assets and debts of $100 million to $500million in
its Chapter 11 petition.

Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP,
in New York, serves as counsel for the TSC and TSN Debtors.
Garden City Group is the claims and notice agent.  Blackstone
Advisory Partners LP is the financial advisor.

The Garden City Group, Inc., is the claims and noticing agent in
the Chapter 11 cases.  Otterbourg Steindler Houston & Rosen P.C.
is the counsel to the Official Committee of Unsecured Creditors
formed in TSN's Chapter 11 cases.  FTI Consulting, Inc., is the
Committee's financial advisor.


TERRESTAR CORP: Committee Wants $5 Million Loan Tagged as Equity
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of TerreStar Networks, Inc., et al., asks the U.S.
Bankruptcy Court for the Southern District of New York to:

   i) re-characterize the $5 million August 2010 Advance by
   Harbinger from secured debt to equity; or in the alternative

  ii) subordinate the $5 million August 2010 advance by Harbinger
   to the claims of general unsecured creditors of the Debtors,
   and of TSN in particular.

Harbinger is consist of U.S. Bank National Association, in its
capacity as collateral agent under the purchase money credit
agreement, Harbinger Capital Partners, Harbinger Capital
Management, Harbinger Capital Partners Fund I, Ltd., Harbinger
Capital Partners special situation Fund, L.P., Credit Distressed
Blue Blue Line Master Fund I, LTD., and their affiliates.
Harbinger's successors in interest are MAST Credit Opportunities I
Master Fund Limited and its affiliates, Cohanzick High Yield
International Master Fund, Ltd., et al.,

According to the Committee, at the time when the Debtors were
severely undercapitalized, Harbinger provided an additional
$5 million to the Debtors as further secured advance under the
Feb. 5, 2008 purchase money credit agreement among Terrestar
Networks Inc., as borrower, and Harbinger and EchoStar, as
original lenders.  The reality, however, is that the $5 million
actually a further equity investment in TSN by Harbinger.

The $5 million advanced by Harbinger was funded at a time when
Harbinger was one of the most significant holders of the Debtors'
stock and outstanding debt and Harbinger's investment was subject
to substantial risk due to the Debtors' liquidity constraints.

The Committee is represented by:

          Scott L. Hazan, Esq.
          David M. Posner, Esq.
          Stanley L. Lane, Jr., Esq.
          OTTERBOURG, STEINDLER, HOUSTON & ROSEN, P.C.
          230 Park Avenue
          New York, NY 10169
          Tel: (212) 661-9100
          Fax: (212) 682-6104

           About TerreStar Corp. and TerreStar Networks

TerreStar Corporation and TerreStar Holdings, Inc., filed
voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for
the Southern District of New York on Feb. 16, 2011.

TSC's Chapter 11 filing joins the bankruptcy proceedings of
TerreStar Networks Inc. and 12 other affiliates, which filed on
Oct. 19, 2010.  The October Chapter 11 cases are procedurally
consolidated under TSN's Case No. 10-15446 under Judge Sean H.
Lane.

TSC is the parent company of each of the October Debtors.  TSC has
four wholly owned direct subsidiaries: TerreStar Holdings, Inc.,
TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings
Inc.

TSC's case is jointly administered with the cases of seven of the
October Debtors under the caption In re TerreStar Corporation, et
al., Case No. 11-10612 (SHL).  The seven Debtor entities who
sought joint administration with TSC are TerreStar New York Inc.,
Motient Communications Inc., Motient Holdings Inc., Motient
License Inc., Motient Services Inc., Motient Ventures Holdings
Inc., and MVH Holdings Inc.

TSC is a Delaware corporation whose main asset is the equity in
non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use
a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by
the Federal Communication Commission.  TSC also has an indirect
89.3% ownership interest in TerreStar Network, Inc., which
operates a separate and distinct mobile communications business.
TerreStar Holdings is a Delaware corporation that directly holds
100% of the interests in 1.4 Holdings LLC.

TerreStar Networks -- TSN -- the principal operating entity of
TSC, developed an innovative wireless communications system to
provide mobile coverage throughout the United States and Canada
using satellite-terrestrial smartphones.  The system, however,
required an enormous amount of capital expenditures and initially
produced very little in the way of revenue.  TSN's available cash
and borrowing capacity were insufficient to cover its funding;
thus, forcing TSN to seek bankruptcy protection in October 2010.

TSC estimated assets and debts of $100 million to $500million in
its Chapter 11 petition.

Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP,
in New York, serves as counsel for the TSC and TSN Debtors.
Garden City Group is the claims and notice agent.  Blackstone
Advisory Partners LP is the financial advisor.

The Garden City Group, Inc., is the claims and noticing agent in
the Chapter 11 cases.  Otterbourg Steindler Houston & Rosen P.C.
is the counsel to the Official Committee of Unsecured Creditors
formed in TSN's Chapter 11 cases.  FTI Consulting, Inc., is the
Committee's financial advisor.


THERMOPYLAE LLC: Court Rules on Dispute With Landlord
-----------------------------------------------------
Rockville Pike Joint Venture, L.P., seeks preliminary injunction
to enjoin Thermopylae LLC and The Harbor Bank of Maryland from
removing certain kitchen equipment and improvements from the space
Rockville leased to the Debtor.  The parties dispute whether
Rockville or the Debtor owns the equipment and improvements and,
if Rockville owns it, whether the Bank's security interest trumps
Rockville's ownership rights.  In a Aug. 5, 2011 Memorandum of
Decision, a copy of which is available at http://is.gd/4KKwXWfrom
Leagle.com, Bankruptcy Judge Thomas J. Catliota denied Rockville's
motion with respect to the Equipment, because the Lease provides
that the Debtor was entitled to remove it upon expiration of the
Lease.  With respect to the improvements, the Court held that
Rockville's right to claim ownership of it arose long after the
Bank's security interest attached.  The Court accordingly granted
the motion with respect to the improvements only on a limited
basis, and lifted the injunction on the improvements upon a
showing by the Bank that it can comply with Section 12.03 of the
Lease to repair and restore the Premises upon removal.  The case
is Rockville Pike Joint Venture L.P., v. Thermopylae LLC; The
Harbor Bank of Maryland, Adv. Proc. No. 11-00016 (Bankr. D. Md.).

Thermopylae LLC operated the Hollywood Diner at 895 Rockville
Pike, in Rockville, Maryland, until it closed on Jan. 11, 2011.
Thermopylae filed for Chapter 11 bankruptcy protection (Bankr. D.
Md., Case No. 10-32452) on Sept. 30, 2010.  Steven H. Greenfeld,
Esq., serves as its bankruptcy counsel.  The Company estimated
under $50,000 in assets and $500,001 to $1 million in debts in its
Chapter 11 petition.  It listed Harbor Bank of Maryland as its
largest unsecured creditor, owed $461,873.


THORNBURG MORTGAGE: Litigation v. Luxury Mortgage Stayed
--------------------------------------------------------
Bankruptcy Judge Duncan W. Keir signed off on a stipulation and
consent order temporarily staying litigation commenced by Joel I.
Sher, Chapter 11 Trustee for TMST Home Loans, Inc. f/k/a Thornburg
Mortgage Home Loans, Inc., against Luxury Mortgage Corp.  The
Chapter 11 Trustee filed the Complaint for Damages,
Indemnification and Specific Performance on Nov. 24, 2010.  Luxury
filed a Motion to Dismiss, or in the Alternative, Change Venue.

On July 25, 2011, the parties and their counsel met to discuss a
potential settlement.  To avoid the extensive costs of litigation
while the parties take certain actions as are necessary outside of
the Adversary Proceeding to foster a possible settlement of the
Adversary Proceeding, the parties agreed to a temporary stay of
litigation, followed by a streamlined process for resolution of
the pending motions, and a schedule for the completion of
discovery in the event the parties are unable to consummate a
settlement.

Pursuant to the Stipulation, Luxury agreed to withdraw its Motion
to Dismiss with prejudice.  All pending motions, including, but
not limited to, the Chapter 11 Trustee's Motion for Summary
Judgment, are stayed through and including Dec. 31, 2011.  All
currently propounded discovery is stayed through and including
Nov. 30, 2011.  The discovery deadline is extended from Aug. 16,
2011 through and including Dec. 31, 2011, to afford the parties an
opportunity to complete discovery, including the remaining
depositions that may need to be noted, in the event the parties
are unable to resolve the Adversary Proceeding before Nov. 30,
2011.

The Chapter 11 Trustee will take actions to:

     (i) prosecute TMHL's foreclosure of the property located at
982 Noyack Road, Southampton, New York, in the case styled
Thornburg Mortgage v. Visilios Gregoriadis (Case No. 029712-2009)
pending in the Supreme Court of Suffolk County, New York;

    (ii) continue to assert and advance TMHL's rights and
interests in the foreclosure action filed in the Supreme Court of
Suffolk County, New York styled E*Trade Bank v. Donald MacPherson,
(Case No. 033098-2007) whereby E*Trade has asserted a first
priority mortgage on the Property; and

   (iii) take such actions as are appropriate for the Trustee, in
his sole discretion, to assert and advance the Trustee's and
TMHL's rights with respect to the Property outside of the Luxury
Adversary Proceeding, including, but not limited to, asserting the
Trustee's and TMHL's right and claims against other parties
involved in the sale of the Property.

Without admitting any liability or waiving any of its defenses,
Luxury will contribute $10,000 to the Trustee on Aug. 30, 2011,
Sept. 30, 2011, and Oct. 30, 2011 for a total of $30,000, to
defray the costs of the TMHL bankruptcy estate to maintain the
Property.

The case is Joel I. Sher, Chapter 11 Trustee for TMST Home Loans,
Inc. f/k/a Thornburg Mortgage Home Loans, Inc., v. Luxury Mortgage
Corp., Adv. Proc. No. 10-0898 (Bankr. D. Md.).  A copy of the
Stipulation, signed by the Court on Aug. 5, 2011, is available at
http://is.gd/Lwj8Zcfrom Leagle.com.

                     About Thornburg Mortgage

Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA)
-- http://www.thornburgmortgage.com/-- was a single-family
residential mortgage lender focused principally on prime and
super-prime borrowers seeking jumbo and super-jumbo adjustable
rate mortgages.  It originated, acquired, and retained investments
in adjustable and variable rate mortgage assets.  Its ARM assets
comprised of purchased ARM assets and ARM loans, including
traditional ARM assets and hybrid ARM assets.

Thornburg Mortgage and its four affiliates filed for Chapter 11 on
May 1, 2009 (Bankr. D. Md. Lead Case No. 09-17787).  Thornburg
changed its name to TMST, Inc.

Judge Duncan W. Keir is handling the case.  The Debtors tapped
David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, is
tapped as counsel, and Orrick, Herrington & Sutcliffe LLP as
special counsel.  The Debtors hired Jim Murray, and David Hilty,
at Houlihan Lokey Howard & Zukin Capital, Inc., as investment
banker and financial advisor.  Protiviti Inc. was engaged for
financial advisory services.  The Debtors also hired KPMG LLP as
tax consultant and Epiq Systems, Inc., as claims and noticing
agent.  Thornburg disclosed total assets of $24.4 billion and
total debts of $24.7 billion, as of Jan. 31, 2009.

On Oct. 28, 2009, the Court approved the appointment of Joel I.
Sher as the Chapter 11 Trustee for the Company, TMST Acquisition
Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging
Strategies, Inc.


TREY RESOURCES: Reports $2.3 Million Net Income in June 30 Qtr.
---------------------------------------------------------------
Silversun Technologies, Inc., formerly known as Trey Resources,
Inc., filed with the U.S. Securities and Exchange Commission its
quarterly report on Form 10-Q, reporting net income of
$2.35 million on $2.69 million of total net revenues for the three
months ended June 30, 2011, compared with a net loss of $789,416
on $1.78 million of total net revenues for the same period during
the prior year.

The Company also reported net income of $2.82 million on $5.45
million of total net revenues for the six months ended June 30,
2011, compared with a net loss of $387,426 on $3.61 million of
total net revenues for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $1.68 million
in total assets, $2.47 million in total liabilities, all current,
and a $790,392 total stockholders' deficit.

Mark Meller, chief executive officer of SilverSun Technologies,
stated, "This has been an important quarter for our Company.  We
have reduced our total liabilities by $3,661,402, from $6,133,472
on March 30, 2011, to $2,472,070 on June 30, 2011, a reduction of
59.7%.  We have recapitalized the Company, and we now have
4,447,028 shares of common stock outstanding, versus over 8
billion shares of common stock outstanding as of March 30, 2011."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/mgab1c

                        About Trey Resources

Livingston, N.J.-based Trey Resources, Inc. operates as a business
consultant, and value-added reseller and developer of financial
accounting software in the United States.

The Company reported a net loss of $568,505 on $7.48 million of
total revenue for the year ended Dec. 31, 2010, compared with a
net loss of $1.50 million on $7.41 million of total revenue during
the prior year.

Friedman LLP, in East Hanover, NJ, expressed substantial doubt
about the Company's ability to continue as a going concern.  The
Company's financial statements for the year ended Dec. 31, 2010
have been prepared assuming the Company will continue as a going
concern.  The Company has incurred substantial accumulated
deficits and operating losses, and at Dec. 31, 2010, has a working
capital deficiency of approximately $5.1 million.


USEC INC: Files Form 10-Q; Incurs $21.2-Mil. Q2 Net Loss
--------------------------------------------------------
USEC Inc. filed with the U.S. Securities and Exchange Commission
its quarterly report on form 10-Q reporting a net loss of $21.20
million on $454.40 million of total revenue for the three months
ended June 30, 2011, compared with net income of $7.20 million on
$459.70 million of total revenue for the same period during the
prior year.

The Company also reported a net loss of $37.80 million on $834.90
million of total revenue for the six months ended June 30, 2011,
compared with a net loss of $2.50 million on $804.40 million of
total revenue for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $4.12 billion
in total assets, $2.80 billion in total liabilities and $1.32
billion in stockholders' equity.

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/r7MTwz

                          About USEC Inc.

Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) --
http://www.usec.com/-- supplies enriched uranium fuel for
commercial nuclear power plants.

                          *     *     *

USEC Inc. carries 'Caa1' corporate and probability of default
ratings, with "developing" outlook, from Moody's, and 'CCC+' long
term foreign issuer credit rating and 'CCC-' long term local
issuer credit rating, with outlook "developing", from Standard &
Poor's.

In May 2010, S&P said that its rating and outlook on USEC Inc. are
not affected by the announcement that Toshiba Corp. and Babcock &
Wilcox Investment Co., an affiliate of The Babcock & Wilcox Co.,
have signed a definitive investment agreement for $200 million
with USEC.


UTE MESA: Taps Podoll & Podoll as Special Litigation Counsel
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado authorized
Ute Mesa Lot 1, LLC, to employ Podoll & Podoll as special
litigation counsel.

The Debtor related that on the Petition Date, a civil action was
pending in the District Court, Pitkin County, Colorado styled
United western Bank v. Leathem Stearn, an individual; Ute Mesa,
LLC, A Colorado limited liability company, Ute Mesa Lot 1, LLC, a
Colorado limited liability company; AAA Waterproofing, Inc.,
Colorado corporation; RMS Concrete, Inc.,  a Colorado corporation;
Aspen Digger, Inc., a Colorado corporation; Case No. 10CV177.

As a special litigation counsel, the firm will represent the
Debtor in connection with the State Law Civil Action.  The firm
will also represent Leathem Stearn, the Debtor's sole member and
manager, and Ute Mesa, LLC, an affiliate of the Debtor and one in
which Mr. Stearn is the sole member, in connection with the State
Law Civil Action.

The firm's hourly rates are:

         Richard Podoll            $400
         Robert Podoll             $400
         Robert Kitsmiller         $400
         Greg Sapakoff             $350
         Associates            $250 - $300
         Paralegals                 $80
         Law Clerks                $100

Mr. Stearn advanced the firm a retainer amounting to $10,000.
Mr. Stearn does not intend to seek reimbursement from the Debtor
for the Debtor's proportional share of the retainer.

Richard Podoll, a partner at the firm, assures the Court that the
firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code.

Mr. Podoll can be reached at 5619 CTC Parkway, Suite 1100,
Greenwood, Colorado.

                       About Ute Mesa Lot 1

Denver, Colorado-based Ute Mesa Lot 1, LLC, filed for Chapter 11
bankruptcy protection on August 13, 2010 (Bankr. D. Colo. Case No.
10-30620).  Duncan E. Barber, Esq., and Steven T. Mulligan, Esq.,
at Bieging Shapiro & Burrus LLP, in Denver, assist the Debtor in
its restructuring effort.  The Debtor disclosed $10,017,982 in
assets and $11,633,024 in liabilities.


VALLEJO, CA: Has Formal Plan Confirmation Order
-----------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the city of Vallejo, California, has the green light
to exit the municipal reorganization that began in May 2008.
The bankruptcy judge in Sacramento, California, signed a
confirmation order last week formally approving the plan and
overruling the remaining two objections.  Other objections were
resolved by the confirmation hearing in July.

The report relates that the Plan restructures $50 million of
publicly held debt secured by leases on public buildings.
Although the Plan doesn't affect pensions, it adjusts the claims
and benefits of current and former city employees.

                     About Vallejo, California

Vallejo -- http://www.ci.vallejo.ca.us/-- is a city in Solano
County, California in the United States.  As of the 2000 census,
the city had a total population of 116,760.  It is located in the
San Francisco Bay Area on the northern shore of San Pablo Bay.  It
was named for General Mariano Guadalupe Vallejo.

Vallejo filed for protection under Chapter 9 of the U.S.
Bankruptcy Code (Bankr. E.D. Calif. Case No. 08-26813) on May 23,
2008, after it was unable to persuade labor unions to accept
salary concessions as the recession began cutting into local
government tax collections nationwide.  Marc A. Levinson, Esq.,
and Norman C. Hile, Esq., at Orrick, Herrington & Sutcliffe LLP in
Sacramento, California, represent the City.  The city estimated
$500 million to $1 billion in assets and $100 million to $500
million in debts in its petition.  According to Vallejo's
comprehensive annual report for the year ended June 30, 2007, the
city has $983 million in assets and $358 million in debts.


VIKING SYSTEMS: Incurs $860,100 Net Loss in Second Quarter
----------------------------------------------------------
Viking Systems, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on form 10-Q reporting a net loss
of $860,128 on $2.51 million of net sales for the three months
ended June 30, 2011, compared with a net loss of $450,850 on $2
million of net sales for the same period during the prior year.

The Company also reported a net loss of $1.30 million on $5.63
million of net sales for the six months ended June 30, 2011,
compared with a net loss of $746,300 on $3.92 million of net sales
for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $6.64 million
in total assets, $2.53 million in total liabilities, all current,
and $4.11 million in total stockholders' equity.

Jed Kennedy, President and CEO of Viking Systems said, "During the
second quarter we made significant inroads into recapitalizing the
Company and securing funds to increase our marketing campaign.  We
experienced improvements in our year-over-year sales, and also
strengthened our Board of Directors.  As part of our increased
emphasis on sales and marketing, we have hired a sales consultant
to assist us in our sales process, and move us ahead to the next
level, as we seek to bolster our sales both globally and
domestically."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/Ip5aK6

                        About Viking Systems

Based in Westborough, Massachusetts, Viking Systems, Inc. (OTCBB:
VKNG.OB) -- http://www.vikingsystems.com/-- is a developer,
manufacturer and marketer of visualization solutions for complex
minimally invasive surgery.  The Company partners with medical
device companies and healthcare facilities to provide surgeons
with proprietary visualization systems enabling minimally invasive
surgical procedures, which reduce patient trauma and recovery
time.

The Company reported a net loss applicable to common shareholders
of $2.44 million on $8.04 million of sales for the year ended
Dec. 31, 2010, compared with a net loss applicable to common
shareholders of $1.07 million on $7.22 million of sales during the
prior year.

The report from Viking Systems, Inc.'s independent registered
public accounting firm, Squar, Milner, Peterson, Miranda &
Williamson, LLP, dated February 22, 2010, includes a going concern
explanatory paragraph which states that factors relating to the
Company's net losses and working capital concerns raise
substantial doubt the Company's ability to continue as a going
concern.  Viking Systems said it will need to generate significant
additional revenue to achieve profitability and it may require
additional financing during 2010.  "The going concern explanatory
paragraph in the independent auditor's report emphasizes the
uncertainty related to our business as well as the level of risk
associated with an investment in our common stock," Viking Systems
said.


VINEYARD AT SERRA: Taps Keller Williams/West as Property Broker
---------------------------------------------------------------
The Vineyard at Serra Retreat, LLC, asks the U.S. Bankruptcy
Court for the Central District of California for permission to
employ Keller Williams/West Realty Group as its real estate
broker.

The Debtor owns three contiguous parcels of real property in the
Serra Retreat enclave in Malibu, California.  The Debtor's three
properties are located at 3314 Serra Road, 3328 Serra Road, and
3410 Serra Road.

According to appraisals of the properties commissioned by the
Debtor's secured lender, First Citizens Bank, the combined value
of the Debtor's three parcels was $19,000,000 as of May 20, 2010.
Specifically, the FCB appraisals dated as of May 20, 2010 gave an
appraised value of $9,000,000 for the 3314 Serra Road parcel;
$3,500,000 for the 3328 Serra Road parcel, and a value of
$6,500,000 for the 3410 Serra Road parcel.

As established by FCB's Notice of Sale dated May 12, 2011, FCB
asserted a total amount due of $17,142,813 as of the date of that
notice.  The Debtor disputes that FCB is owed that much,
particularly with respect to penalties and fees.  More
importantly, the Debtor believes its three properties are worth
significantly more than the $19,000,000.

According to the Debtor, a few factors make these particularly
valuable properties.  First, the Debtor has rights to development
that are not available to any other properties, not only in the
Serra Retreat neighborhood but anywhere in Malibu.  Second, the
3314 Serra Road parcel is exempt from certain restrictions imposed
regarding septic tank issues in Malibu. Third, parcel 3328 Serra
Road is a cactus and succulent nursery.  Because of these
features, the Debtor believes that the two parcels consisting of
3314 Serra Road and 3328 Serra Road are alone worth more than
$21,500,000, without taking into account the third property owned
by the Debtor, located at 3410 Serra Road.

Tentatively, the Debtor believes the listing price for a combined
sale of the two parcels must be $21,500,000.  The Debtor requires
the services of broker to assist the Debtor in verifying the
viability of a marketing plan for the two parcels, as a master
estate combined with an adjoining vineyard property.

The broker will market the sale of all three of the Debtor's
parcels of real property, located at 3314 Serra Road, 3328 Serra
Road, and 3410 Serra Road.  The broker will also assist the Debtor
and its counsel with the analysis and ultimate determination of
whether the two parcels - 3314 and 3328 Serra Road - can be
successfully marketed as a combined property for sale in a manner
to satisfy in full the debt obligation to FCB.

The broker will be paid a commission of 3 percent (or 5 percent)
of the total purchase price, which will be paid out of the escrow
upon consummation of the sale of the property.  The broker has not
received any compensation from the Debtor in respect of the
agreement.

To the best of Debtor's knowledge, the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

               About The Vineyard at Serra Retreat

The Vineyard at Serra Retreat, LLC, in Malibu, California, filed
for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17323)
on June 15, 2011.  Judge Victoria S. Kaufman presides over the
case.  The Law Offices of David W. Meadows serves as bankruptcy
counsel.  The Company disclosed $19,017,000 in assets and
$27,180,313 in liabilities.  The petition was signed by John
Hall, manager.


VONAGE HOLDINGS: Moody's Withdraws 'B2' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings assigned to
Vonage Holdings Corp. as a result of the company's announcement
that it has repaid existing debt with a new, unrated facility,
warranting the rating withdrawal. Since Moody's does not rate any
of Vonage's debt, Moody's has also withdrawn the company's
Corporate Family Rating, Probability of Default Rating, and
Speculative Grade Liquidity Rating.

Withdrawals:

   Issuer: Vonage Holdings Corp.

   -- Corporate Family Rating, Withdrawn, previously rated B2

   -- Probability of Default Rating, Withdrawn, previously rated
      B1

   Issuer: Vonage Holdings Corp., Vonage America Inc.

   -- $200 million Senior Secured Term Loan, Withdrawn, previously
      rated B2 (LGD4, 69%)

   -- Rating Outlook: Withdrawn, previously Stable

The principal methodology used in rating Vonage was Moody's Global
Telecommunications Industry, published in December 2010 and
available on www.moodys.com. Other methodologies and factors that
may have been considered in the process of rating this issuer can
also be found in the Rating Methodologies sub-directory on Moody's
website.

Vonage, located in Holmdel, New Jersey, is a provider of voice and
messaging services to approximately 2.4 million subscribers across
the United States and abroad. The company generated about $870
million in revenues for the trailing twelve months ending June 30,
2011.


WARNER MUSIC: Incurs $46 Million Net Loss in Fiscal 3rd Quarter
---------------------------------------------------------------
Warner Music Group Corp. filed with the U.S. Securities and
Exchange Commission its quarterly report on form 10-Q reporting a
net loss of $46 million on $686 million of revenue for the three
months ended June 30, 2011, compared with a net loss of $55
million on $652 million of revenue for the same period during the
prior year.

The Company also reported a net loss of $103 million on $2.15
billion of revenue for the nine months ended June 30, 2011,
compared with a net loss of $99 million on $2.23 million of
revenue for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed $3.58 billion
in total assets, $3.87 billion in total liabilities and a $289
million total deficit.

"Our focus on disciplined A&R investments, revenue diversification
and innovative digital strategies has helped us to grow our
Recorded Music revenue and deliver healthy increases in three key
segments of our Music Publishing revenue," said Edgar Bronfman,
Jr., Warner Music Group's CEO.  "We are approaching the point
where the majority of our U.S. Recorded Music business will be
digital while continuing to transform our approach to artist
signings with more than 60% of the artists on our active global
recorded music roster being signed to deals with a comprehensive
suite of expanded rights."

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/4LOVrJ

                      About Warner Music Group

Based in New York, Warner Music Group Corp. (NYSE: WMG)
-- http://www.wmg.com/-- was formed by a private equity
consortium of investors on Nov. 21, 2003.  The Company is the
direct parent of WMG Holdings Corp., which is the direct parent of
WMG Acquisition Corp.  WMG Acquisition Corp. is one of the world's
major music-based content companies and the successor to
substantially all of the interests of the recorded music and music
publishing businesses of Time Warner Inc.

The Company classifies its business interests into two fundamental
operations: Recorded Music and Music Publishing.  The Company's
Recorded Music business primarily consists of the discovery and
development of artists and the related marketing, distribution and
licensing of recorded music produced by such artists.  The
Company's Music Publishing operations include Warner/Chappell, its
global Music Publishing company, headquartered in New York with
operations in over 50 countries through various subsidiaries,
affiliates and non-affiliated licensees.

Warner Music reported a net loss of $39 million on $682 million of
revenue for the three months ended March 31, 2011, compared with a
net loss of $28 million on $666 million of revenue for the same
period during the prior year.  The Company also reported a net
loss of $57 million on $1.47 billion of revenue for the six months
ended March 31, 2011, compared with a net loss of $44 million on
$1.58 billion of revenue for the same period during the prior
year.

                          *     *     *

In May 2011, Warner Music Group Corp. and Access Industries, the
U.S.-based industrial group, announced the execution of a
definitive merger agreement under which Access Industries will
acquire WMG in an all-cash transaction valued at $3.3 billion.
The purchase includes WMG's entire recorded music and music
publishing businesses.


WARNER MUSIC: Guarantees Payments of $150-Mil. Holdings Notes
-------------------------------------------------------------
Warner Music Group Corp., on Aug. 2, 2011, issued a guarantee with
respect to the $150 million aggregate principal amount of 13.75%
Senior Notes due 2019 initially issued by WM Holdings Finance
Corp. which was merged with and into WMG Holdings Corp. whereby it
fully and unconditionally guaranteed, on a senior unsecured basis,
the payments of WMG Holdings Corp. on the Holdings Notes.

A copy of the Holdings Notes Guarantee is available for free at:

                        http://is.gd/bgDyWc

WMG Holdings Corp. entered into a supplemental indenture, dated as
of Aug. 2, 2011, that supplements the Indenture, dated July 20,
2011, as amended, among WMG Holdings Corp., and Wells Fargo Bank,
National Association, as trustee, pursuant to which the Holdings
Notes were issued.  The Supplemental Indenture adds provisions
providing for, but not requiring, the guarantee of the Holdings
Notes.

A copy of the Supplemental Indenture is available for free at:

                        http://is.gd/D8riGz

                      About Warner Music Group

Based in New York, Warner Music Group Corp. (NYSE: WMG)
-- http://www.wmg.com/-- was formed by a private equity
consortium of investors on Nov. 21, 2003.  The Company is the
direct parent of WMG Holdings Corp., which is the direct parent of
WMG Acquisition Corp.  WMG Acquisition Corp. is one of the world's
major music-based content companies and the successor to
substantially all of the interests of the recorded music and music
publishing businesses of Time Warner Inc.

The Company classifies its business interests into two fundamental
operations: Recorded Music and Music Publishing.  The Company's
Recorded Music business primarily consists of the discovery and
development of artists and the related marketing, distribution and
licensing of recorded music produced by such artists.  The
Company's Music Publishing operations include Warner/Chappell, its
global Music Publishing company, headquartered in New York with
operations in over 50 countries through various subsidiaries,
affiliates and non-affiliated licensees.

Warner Music reported a net loss of $39 million on $682 million of
revenue for the three months ended March 31, 2011, compared with a
net loss of $28 million on $666 million of revenue for the same
period during the prior year.  The Company also reported a net
loss of $57 million on $1.47 billion of revenue for the six months
ended March 31, 2011, compared with a net loss of $44 million on
$1.58 billion of revenue for the same period during the prior
year.

The Company's balance sheet at June 30, 2011, showed $3.58 billion
in total assets, $3.87 billion in total liabilities and a $289
million total deficit.

                          *     *     *

In May 2011, Warner Music Group Corp. and Access Industries, the
U.S.-based industrial group, announced the execution of a
definitive merger agreement under which Access Industries will
acquire WMG in an all-cash transaction valued at $3.3 billion.
The purchase includes WMG's entire recorded music and music
publishing businesses.


WASHINGTON MUTUAL: DOJ Closes Probe With No Criminal Charges
------------------------------------------------------------
The United States Department of Justice closed the investigation
stemming from the September 2008 failure of Washington Mutual
Bank.  In October 2008, following the failure of Washington Mutual
Bank, the United States Attorney's Office for the Western District
of Washington issued a statement indicating that a federal task
force was examining events at the bank to determine whether
federal criminal violations had been committed by the bank and its
leaders.

Since that time, investigators have conducted an extensive
investigation that included hundreds of interviews and the review
of millions of documents relating to the operations, and the
subsequent failure, of Washington Mutual Bank.  Investigators also
reviewed reports generated during investigations conducted by
other government bodies, including by the United States Senate
Permanent Subcommittee on Investigations, and by the Offices of
the Inspector General at the Department of the Treasury and the
Federal Deposit Insurance Corporation.  Based upon its
investigation, the Department of Justice has concluded that the
evidence does not meet the exacting standards for criminal charges
in connection with the bank's failure.  The Department of Justice
is cooperating with the Federal Deposit Insurance Corporation
(FDIC), which has a pending lawsuit against three former
executives of the bank alleging gross negligence and breach of
fiduciary duties.

In addition to the United States Attorney's Office for the Western
District of Washington, and the Criminal Division of United States
Department of Justice, numerous agencies participated in the
investigation, including the Federal Bureau of Investigation, the
Internal Revenue Service, the Department of Labor, the Federal
Deposit Insurance Corporation, Office of the Inspector General,
and the Washington State Department of Financial Institutions.

                      *     *     *

Jean Eaglesham, writing for The Wall Street Journal, reports that
people familiar with the situation said federal criminal
investigations of IndyMac Bancorp and New Century Financial Corp.
have stalled and could result in no charges being filed.

The U.S. Attorney's Office for the Western District of Washington
in Seattle on Friday also closed the investigation stemming from
the September 2008 failure of Washington Mutual Bank.  The U.S.
Department of Justice has concluded that the evidence does not
meet the exacting standards for criminal charges in connection
with the bank's failure.

According to the WSJ report, all three separate investigations hit
major stumbling blocks.  People familiar with the matter told the
Journal the WaMu probe had been inactive for more than a year.
Sources also said the IndyMac and New Century investigations are
essentially dormant at the moment.

The Journal says a spokesman for the U.S. Attorney's office in Los
Angeles, which initiated the IndyMac and New Century
investigations, declined to comment.

The Journal notes, however, that the investigations haven't been
closed, meaning they could gain new momentum if fresh evidence
surfaces. A source told the Journal the U.S. Attorney's Office in
Brooklyn, N.Y., recently opened its own criminal investigation
into IndyMac.  The source said in the Brooklyn probe, which is
still at an early stage, prosecutors are looking at the
information IndyMac disclosed about the quality of home loans that
backed bonds it sold to investors.  It isn't clear if the scope of
the Brooklyn-based investigation is significantly different than
the Los Angeles one, but U.S attorneys have broad discretion to
determine which avenues to pursue.

The Journal says a spokesman for the U.S. Attorney's office in
Brooklyn declined to comment.

                          About Indymac

Based in Pasadena, California, IndyMac Bancorp Inc. (NYSE:IMB) --
http://www.indymacbank.com/-- was the holding company for IndyMac
Bank FSB, a hybrid thrift/mortgage bank that originated mortgages
in all 50 states of the United States.

On July 11, 2008, the Office of Thrift Supervision closed IndyMac
Bank and appointed FDIC as the bank's receiver.  Thacher Proffitt
& Wood LLP was engaged as counsel to the FDIC.

All non-brokered insured deposit accounts and substantially all of
the assets of the bank were transferred to IndyMac Federal Bank,
F.S.B., Pasadena, CA, a newly chartered full-service FDIC-insured
institution.  On March 19, IndyMac Federal Bank was sold to
OneWest Bank, F.S.B., Pasadena, California. OneWest Bank, FSB is a
newly formed federal savings bank organized by IMB HoldCo LLC.

Indymac Bancorp filed for Chapter 7 bankruptcy protection on
July 31, 2008 (Bankr. C.D.Calif., Case No. 08-21752).
Representing the Debtor are Dean G. Rallis, Jr., Esq., and John C.
Weitnauer, Esq.  Indymac had about $32.01 billion in assets as of
July 11, 2008.  In court documents, IndyMac disclosed estimated
assets of $50 million to $100 million and estimated debts of $100
million to $500 million.

                 About New Century Financial Corp.

Founded in 1995, Irvine, Calif.-based New Century Financial
Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real state
investment trust, providing mortgage products to borrowers
nationwide through its operating subsidiaries, New Century
Mortgage Corporation and Home123 Corporation.  The Company offers
a broad range of mortgage products designed to meet the needs of
all borrowers.

New Century Financial and its affiliates filed for Chapter 11
protection on April 2, 2007 (Bankr. D. Del. Case No. 07-10416).
Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana
Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A., were tapped as bankruptcy
counsel.  The Official Committee of Unsecured Creditors selected
Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its
co-counsel.  When the Debtors filed for bankruptcy, they listed
total assets of $36,276,815 and total debts of $102,503,950.

The Court confirmed the Debtors' second amended joint Chapter 11
plan of liquidation on July 15, 2008.

                    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.


WESTLAKE CHEMICAL: Moody's Reviews Low-B Ratings for Upgrade
------------------------------------------------------------
Moody's Investors Service placed the ratings of Westlake Chemical
Corporation under review for upgrade. This review is prompted by
the company's continued strong financial performance and an
increasing cash balance that is reducing event risk from a
potential larger petrochemical capacity addition. The review will
focus on the costs related to the previously announced capacity
expansions in Lake Charles, the potential cost of increasing
capacity in Calvert City, and management's plans for growth post
2014.

Westlake's improving profitability has largely been driven by
access to low feedstock costs (Gulf Coast ethane) and continued
demand for its polyethylene resins in North America. Profitability
of its PVC and fabricated products business remains challenged,
despite the profitability of PVC exports. The company's elevated
profitability should allow it to fund a large portion of its
planned ethylene and chlor alkali expansions from operating cash
flows, while allowing it to maintain a cash balance well above
$500 million. The review will seek to understand management's
plans for funding future ethylene and polyethylene capacity
expansions and the amount of capital required to maintain organic
growth at reasonable levels post 2014.

Ratings on review for possible upgrade:

Westlake Chemical Corporation

Corporate Family Rating at Ba1

Probability of Default Rating at Ba1

Guaranteed Senior Unsecured Debt at Ba2 (LGD4, 68%)

Unsecured GoZone bonds guaranteed by Westlake at Ba2 (LGD4, 68%)

The principal methodology used in rating Westlake Chemical
Corporation was the Global Chemical Industry Methodology published
in December 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.

Westlake Chemical Corporation, headquartered in Houston, TX, is a
producer of commodity petrochemicals (ethylene and styrene),
plastics (polyvinyl chloride and polyethylene), as well as
compounded PVC resins and fabricated PVC products (window and door
profiles, siding, etc.). Revenues were $3.4 billion for the LTM
ended June 30, 2011.


WILLIAM LINDSEY: Plan Violates Absolute Priority Rule
-----------------------------------------------------
Bankruptcy Judge Richard Stair, Jr., granted the motions for
summary judgment filed by Pinnacle National Bank and Mountain
National Bank on June 27, 2011, and by FirstBank on July 12, 2011,
seeking a determination that the First Amended Plan of
Reorganization filed by William Edwin Lindsey on April 6, 2011,
cannot be confirmed as a matter of law because it allows the
Debtor to retain pre-petition property in violation of 11 U.S.C.
Sec. 1129(b)(2)(B)(ii).  Judge Stair said, because the Plan
provides for the retention of property owned by the Debtor pre-
petition but does not propose to pay the dissenting class of
unsecured creditors in full, the Amended Plan is not "fair and
equitable" as required by Sec. 1129(b).  A copy of Judge Stair's
Aug. 5, 2011 Memorandum is available at http://is.gd/qiYpEafrom
Leagle.com.

The Amended Plan provides for 12 classes, Classes 2 through 12 of
which are impaired, and is to be implemented through the sale of
property as designated in the Amended Plan, through the Debtor's
income, and through the commencement of required payments.
Specifically, the Amended Plan proposes the sale of:

     (1) the Debtor's tenancy in common interest in real property
         located at Briarthicket Road in Cocke County, Tennessee;

     (2) his stock in Ultimate Toys Motorsports, Inc.;

     (3) his membership in BTRG, LLC;

     (4) his membership in Ultimate Toys, LLC; and

     (5) his membership in WL & MC Development, LLC.

The property owned by the Debtor that is not proposed for sale and
is to be retained by the Debtor are:

     (1) real property located at 826 Loop Road, Knoxville,
         Tennessee;

     (2) real property located at Lot #88 Ladd Landing, Roane
         County, Tennessee;

     (3) real property located at 708 Eagleton Road, Maryville,
         Tennessee;

     (4) real property located at 400 Henderson Street, Maryville,
         Tennessee;

     (5) real property located at 7111 Clinton Highway, Knoxville,
         Tennessee;

     (6) a lease with Mercy Partners in Cocke County, Tennessee;

     (7) a note in the amount of $87,000 with a Ms. Chitwood
         secured by residential real property located at 723 E.
         Churchwell Avenue, Knoxville, Tennessee;

     (8) 100,000 shares of WIN stock;

     (9) 50% membership in Jefferson Plaza, LLC;

    (10) 100% interest in Eastland Capital, LLC;

    (11) 50% interest in Lindsey Leasing, LLC;

    (12) 50% interest in JS&A, LLC;

    (13) 30% interest in LEC Properties;

    (14) 30% interest in LHC Properties;

    (15) 33.33% interest in LECH;

    (16) 50% interest in L&C Properties;

    (17) a pistol;

    (18) a note with the Maupin Estate;

    (19) a 1995 Jeep;

    (20) a 1997 pick-up truck;

    (21) office equipment; and

    (22) a note in the amount of $470,961.00 with Danika Lindsey.

Attorneys for Pinnacle National Bank and Mountain National Bank
are:

          HODGES, DOUGHTY & CARSON, PLLC
          Thomas H. Dickenson, Esq.
          617 Main Street
          P.O. Box 869
          Knoxville, TN 37901-0869
          Tel: 865-292-2243
          Fax: 865-292-2321
          E-mail: tdickenson@hdclaw.com

Attorney for FirstBank is:

          Walter N. Winchester, Esq.
          WINCHESTER, SELLERS, FOSTER & STEELE, P.C.
          800 S. Gay Street, Suite 1000
          Knoxville, TN 37929
          Tel: (865) 637-1980
          Fax: (865) 637-4489
          E-mail: Tsmith@wsfs-law.com

                    About William Edwin Lindsey

Knoxville, Tennessee-based William Edwin Lindsey, dba Lindsey &
Associates aka Bill Lindsey aka William E. Lindsey, filed for
Chapter 11 bankruptcy (Bankr. E.D. Tenn. Case No. 10-31694) on
April 5, 2010.  Judge Richard Stair, Jr., presides over the case.
Michael H. Fitzpatrick, Esq. -- mhf@jlaw.com -- at Jenkins &
Jenkins Attorneys, PLLC, serves as the Debtor's counsel.  In his
petition, the Debtor estimated $1 million to $10 million in assets
and $10 million to $50 million in debts.


WINDSOR PETROLEUM: Moody's Downgrades Debt Rating to 'Caa1'
-----------------------------------------------------------
Moody's Investors Service downgraded Windsor Petroleum Transport
Corporation's 7.84% Term Secured Notes due 2021 (term notes) to
Caa1 from B3 and is maintaining a negative outlook on the rating.
The downgrade is prompted by Windsor's announcement that the
Memorandum of Agreement (MOA) to sell its Pioneer VLCC for $54
million was terminated. The MOA had contingency provisions linked
to the buyer's ability to obtain a contract on the vessel.

RATINGS RATIONALE

The downgrade reflects the increased risk that Windsor could
default on principal and interest payments as a result of
shortfalls in the cash available to support Pioneer's $57.9
million allocated portion of principal and accruing interest (as
per the end of first quarter 2011).

Pioneer's charter with BP expired on January 2, 2011. Since then,
the vessel has been on spot charter. In the first quarter the
vessel was chartered out at a rate equivalent to $7,800/day, below
the amount needed to cover operating and financial expense. With
the termination of the potential sale, Pioneer's cash reserves
($7.73 million as of March 31, 2011) will continue to erode.
Frontline Ltd. is continuing to pursue a sale of the Pioneer at a
Minimum Required Bid. Moody's believes the combined cash resources
from the charters and cash balances of the other three vessels
will continue to support Windsor's debt service. Their cash
balances totaled $29.7 million at the end of the first quarter
2011. However, barring a near-term sale of the Pioneer, a
continued draw on its allocated cash could ultimately lead to a
default by Windsor.

Given Pioneer's tight liquidity, Moody's is maintaining a negative
rating outlook. If the vessel cannot be sold at a Minimum Required
Bid level, it will remain subject to volatile spot market rates
and declining cash resources. In that event Frontline Ltd. could
continue to charter the Pioneer or sell it below par (subject to
bondholder approval), with proceeds retiring a portion of the
allocated debt. A shortfall in vessel proceeds would cause the
remaining allocated debt to be apportioned to the other three
Windsor VLCCs, increasing their leverage.

Moody's notes the other three Windsor vessels are still under
charter to BP and will continue to generate revenues at sufficient
minimum rates to service their own allocated debt. However,
Windsor's market risk is increasing, since the vessels are subject
to annual rolling notifications of intent to renew or terminate.
Weak tanker markets and new vessel supply increase the risk that
BP may not retain its remaining charters on future renewal dates.
BP recently renewed the charters on two of the vessels, the
Purpose and the Pride to July 2013, and the Progress has been
renewed to February 2013.

Windsor Petroleum's ratings were assigned by evaluating factors
Moody's believes to be relevant to the credit profile of the
issuer, such as i) the business risk and competitive position of
the company versus others within its industry, ii) the capital
structure and financial risk of the company, iii) the projected
performance of the company over the near-to-intermediate term, and
iv) management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of the shipping industry and its ratings are believed to
be comparable to those of other issuers with similar contract
structures.

Windsor Petroleum Transport Corporation is a special purpose
entity originally formed to finance the construction of four VLCCs
under long-term time charter to a shipping subsidiary of BP plc.
Independent Tankers Corporation Limited ITCL), headquartered in
Hamilton, Bermuda, owns a portfolio of oil tankers under long-term
charter to shipping subsidiaries of BP plc and Chevron
Corporation. ITCL is majority-owned by Frontline Ltd., one of the
world's largest shipping companies engaged in crude oil and
product shipping.


WS MINERAL: Files Schedules of Assets and Liabilities
-----------------------------------------------------
WS Mineral Holdings, LLC, filed with the U.S. Bankruptcy Court for
the Northern District of Texas its schedules of assets and
liabilities, disclosing:

     Name of Schedule              Assets         Liabilities
     ----------------            -----------      -----------
  A. Real Property               $26,000,000
  B. Personal Property                $3,589
  C. Property Claimed as
     Exempt
  D. Creditors Holding
     Secured Claims                               $14,573,064
  E. Creditors Holding
     Unsecured Priority
     Claims                                                $0
  F. Creditors Holding
     Unsecured Non-priority
     Claims                                            $2,250
                                 -----------      -----------
        TOTAL                    $29,003,589*     $14,575,314

* corrected: 26,003,589

A full-text copy of the schedules is available for free at:

             http://bankrupt.com/misc/WSMINERAL_sal.pdf

South of the Stadium I, LLC, in Carrollton, Texas, filed a Chapter
11 petition (Bankr. N.D. Tex. Case No. 11-43278) on June 6, 2011.
Debtor-affiliates 261 CW Springs LTD (Bankr. N.D. Tex. Case No.
11-33757), WS Minerals LLC (Bankr. N.D. Tex. Case No. 11-43273),
and WS Mineral Holdings LLC (Bankr. N.D. Tex. Case No. 11-43290)
also filed on the same day.  Judge D. Michael Lynn presides over
the cases.  Richard W. Ward, Esq. -- rwward@airmail.net -- Plano,
Texas, serves as the Debtors' bankruptcy counsel.

South of the Stadium I, WS Minerals LLC, and WS Mineral Holdings
LLC each estimated assets and debts of $10 million to $50 million
in their petitions.  261 CW Springs estimated assets and debts of
$1 million to $10 million in its petition.  The petitions were
signed by Jeff Shirley, authorized representative.


YRC WORLDWIDE: Michael Smid Retires as President and COO
--------------------------------------------------------
Michael J. Smid, President of YRC Inc. and Chief Operations
Officer of YRC Worldwide Inc., retired from his positions with the
Company and its subsidiaries.  In connection with Mr. Smid's
departure, the Company expects to enter into a Separation
Agreement and Complete Release with Mr. Smid pursuant to which Mr.
Smid will generally receive benefits described in the Company's
Executive Severance Policy, and the Retention Payment, Non-
Competition, Non-Solicitation, Non-Disparagement, and
Confidentiality Agreement dated June 2, 2009, by and between the
Company and Mr. Smid.

Consistent with the Policy, it is expected that the Separation
Agreement will, among other things, provide Mr. Smid with his
current base salary and continuation of certain health and welfare
benefits for a 24-month period following his cessation of
employment, subject to certain limitations including compliance
with certain confidentiality, non-competition, non-solicitation
and non-disparagement covenants set forth in the Separation
Agreement.

Mr. Smid will also be eligible for benefits pursuant to the
Company's 401(k) and pension plans, including the Company's
Supplemental Executive Pension Plan, as modified by the Agreement.
Under the SEPP, as modified by the Agreement, Mr. Smid will
receive a lump sum payment equal to 80% of his accrued benefit six
months following his termination of employment.  He also will be
bound by the non-competition and non-solicitation agreements
contained in the Agreement that extend for six months following
termination of Mr. Smid's employment and certain non-disparagement
and confidentiality agreements contained in the Agreement that
extend indefinitely.  Mr. Smid must comply with the non-
competition, non-solicitation, non-disparagement and
confidentiality provisions of the Agreement as a condition to
receiving and retaining the SEPP benefits provided by the
Agreement.

                        About YRC Worldwide

Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ:
YRCW) -- http://www.yrcw.com/-- is a holding company that through
wholly owned operating subsidiaries offers its customers a wide
range of transportation services.  These services include global,
national and regional transportation as well as logistics.

KPMG LLP's audit reports on the consolidated financial statements
of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each
contain an explanatory paragraph that states that the Company has
experienced significant declines in operations, cash flows and
liquidity and these conditions raise substantial doubt about the
Company's ability to continue as a going concern.

The Company's balance sheet at March 31, 2011, showed $2.62
billion in total assets, $2.91 billion in total liabilities, and a
$287.64 million total shareholders' deficit.

                           *     *     *

In January 2011, Standard & Poor's Ratings Services placed its
'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on
CreditWatch developing.  At the same time, S&P is withdrawing the
existing issue level ratings on Yellow Corp.'s senior unsecured
debt, given the negligible amounts outstanding.

"The ratings on Overland Park, Kan.-based YRCW reflect its near-
term liquidity challenges, meaningful off-balance-sheet contingent
obligations related to multiemployer pension plans, as well as its
participation in the competitive, capital-intensive, and cyclical
trucking industry," said Standard & Poor's credit analyst Anita
Ogbara.  "YRCW's substantial (albeit deteriorating) market
position in the less-than-truckload (LTL) sector, which has high
barriers to entry, partially offsets these characteristics.  We
characterize YRCW's business profile as weak, financial profile as
highly leveraged, and liquidity as weak."

In the Aug. 2, 2011, edition of the TCR, Moody's Investors Service
revised YRC Worldwide Inc.'s Probability of Default Rating ("PDR")
to Caa2\LD ("Limited Default") from Caa3 in recognition of the
agreed debt restructuring which will result in losses for certain
existing debt holders.  In a related action Moody's has raised
YRCW's Corporate Family Rating to Caa3 from Ca to reflect modest
but critical improvements in the company's credit profile that
should result from its recently-completed financial restructuring.
The positioning of YRCW's PDR at Caa2\LD reflects the completion
of an offer to exchange a substantial majority of the company's
outstanding credit facility debt for new senior secured credit
facilities, convertible unsecured notes, and preferred equity,
which was completed on July 22, 2011.

As reported by the TCR on May 5, 2011, Fitch Ratings downgraded
YRC's Issuer default rating to 'C' from 'CC'; Secured bank credit
facility rating downgraded to 'CCC/RR2' from 'B-/RR2'; and Senior
unsecured rating affirmed at 'C/RR6'.  In addition, Fitch has
removed YRCW's ratings from Rating Watch Negative.  Fitch said
that although it appears increasingly likely that the company will
successfully complete the restructuring, until the transactions
constituting the restructuring close, which is not anticipated
until late July 2011, there exists a potential for the transaction
to fail, in which case Fitch expects the company would be forced
to file for Chapter 11 bankruptcy protection.


* Commercial and Individual Bankruptcies Down in July
-----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the 110,000 bankruptcy filings in the U.S. during
July were about the same as June, although 9.6% fewer than the
same month last year.  For the first seven months of 2011, total
bankruptcies trail the same period in 2010 by 9%, according to
data compiled from court records by Epiq Systems Inc.  Commercial
bankruptcies continued dropping faster still.  The 5,760 business
bankruptcies in July were 27.3% below the same month in 2010.

Mr. Rochelle relates that filings in Chapter 11, where larger
companies reorganize or liquidate, totaled 826 in July, or one-
third fewer than July 2010.  The states with the highest per
capita bankruptcies are Nevada, Georgia and Tennessee.
Bankruptcies declined in all 50 states.

According to the report, there have been 841,400 bankruptcies of
all types this year, compared with 1.56 million for 2010 as a
whole.  Last year had the most since 2005, when a record
2.1 million were filed.  Americans in 2005 were filing bankruptcy
ahead of new laws making it more difficult for individuals to
cancel debt.  In the last two weeks before the law changed,
630,000 American sought bankruptcy protection.


* Two Bank Failures Bring Year's Total to 63
--------------------------------------------
Bank failures in Washington and Illinois on Aug. 5 brought the
year's total to 63.  The combined cost to the Federal Deposit
Insurance Corp.'s insurance fund was $160.4 million.

There were 157 bank failures for the entire 2010. The failures in
2010 were the most since 1992, when 179 institutions were taken
over by regulators.

                  2011 Failed Banks List

The FDIC was appointed as receiver for the closed banks.  To
protect the depositors, the FDIC entered into a purchase and
assumption agreement with various banks that agreed to assume the
deposits of most of the closed banks.  The FDIC also entered into
loss-share transactions on assets bought by the banks.

For this year, the failed banks are:

                                  Loss-Share
                                  Transaction Party   FDIC Cost
                     Assets of    Bank That Assumed   to Insurance
                     Closed Bank  Deposits & Bought   Fund
   Closed Bank       (millions)   Certain Assets      (millions)
   -----------       -----------  -----------------   ------------
Bank of Whitman          $548.6  Columbia State Bank       $134.8
Bank of Shorewood        $110.7  Heartland Bank and Trust   $25.6

Integra Bank           $2,200.0  Old National Bank         $170.7
BankMeridian, N.A.       $239.8  SCBT N.A.                  $65.4
Virginia Business         $95.8  Xenith Bank                $17.3
Bank of Choice         $1,070.0  Bank Midwest, N.A.        $213.6
LandMark Bank of Fla.    $275.0  American Momentum          $34.4
Southshore Community      $46.3  American Momentum           $8.3
Summit Bank               $72.0  The Foothills Bank         $11.3
First Peoples Bank       $228.3  Premier American Bank       $7.4
One Georgia Bank         $186.3  Ameris Bank                $44.4
High Trust Bank          $192.5  Ameris Bank                $66.0
Colorado Capital         $717.5  First-Citizens Bank       $283.8
First Chicago Bank       $959.3  Northbrook Bank           $284.3
Signature Bank            $66.7  Points West Community      $22.3
Mountain Heritage        $103.7  First American Bank        $41.1
First Commercial Bank     $98.6  Stonegate Bank             $28.5
McIntosh State Bank      $339.9  Hamilton State Bank        $80.0
Atlantic Bank and Trust  $208.2  First Citizens Bank        $36.4
First Heritage Bank      $173.5  Columbia State             $34.9
First Georgia Banking    $731.0  CertusBank                $156.5
Atlantic Southern        $741.9  CertusBank                $273.5
Summit Bank              $142.7  Columbia State             $15.7
Coastal Bank             $129.4  Premier American Bank      $13.4
Community Central        $476.3  Talmer Bank & Trust       $183.2
The Park Avenue Bank     $953.3  Bank of the Ozarks        $306.1
Cortez Community Bank     $70.9  Florida Community Bank     $18.6
First National Bank      $352.0  Florida Community Bank     $42.9
First Choice Community   $308.5  Bank of the Ozarks         $92.4
Heritage Banking         $224.0  Trustmark National         $49.1
Rosemount National        $37.6  Central Bank                $3.6
Nexity Bank              $793.7  AloStar Bank of Commerce  $175.4
New Horizons Bank        $110.7  Citizens South Bank        $30.9
Bartow County Bank       $330.2  Hamilton State Bank        $69.5
Superior Bank          $3,000.0  Superior Bank, N.A.       $259.6
Nevada Commerce Bank     $144.9  City National Bank         $31.9
Western Springs          $186.8  Heartland Bank             $31.0
Bank of Commerce         $163.1  Advantage National         $41.9
Legacy Bank              $190.4  Seaway Bank and Trust      $43.5
First Nat'l Bank of Davis $90.2  The Pauls Valley National  $26.5
Valley Community Bank    $123.8  First State Bank           $22.8
Citizens Bank            $214.3  Heritage Bank              $59.4
San Luis Trust           $332.6  First California           $96.1
Habersham Bank           $387.6  SCBT National              $90.3
Charter Oak Bank         $120.8  Bank of Marin              $21.8
Sunshine State           $125.5  Premier American           $30.0
Badger State Bank         $83.8  Royal Bank                 $17.5
Canyon National          $210.9  Pacific Premier Bank       $10.0
Peoples State Bank       $390.5  First Michigan Bank        $87.4
American Trust Bank      $238.2  Renasant Bank              $71.5
Community First           $51.1  Northbrook Bank            $11.7
North Georgia Bank       $153.2  BankSouth                  $35.2
First Community Bank   $2,310.0  U.S. Bank, N.A.           $260.0
FirsTier Bank            $781.5  No Acquirer               $242.6
Evergreen State          $246.5  McFarland State            $22.8
The First State Bank      $43.5  Bank 7                    $20.1
The Bank of Asheville    $195.1  First Bank                 $56.2
CommunitySouth Bank      $440.6  Certus Bank                $46.3
Enterprise Banking       $100.9  [No Acquirer]              $39.6
United Western Bank    $2,050.0  First-Citizens Bank       $312.8
Oglethorpe Bank          $230.6  Bank of the Ozarks         $80.4
Legacy Bank, Arizona     $150.6  Enterprise Bank & Trust    $27.9
First Commercial Bank    $598.5  First Southern Bank        $78.0

In 2010, there were 157 failed banks, compared with 140 in 2009
and just 25 for 2008.

A complete list of banks that failed since 2000 is available at:

  http://www.fdic.gov/bank/individual/failed/banklist.html

                     884 Banks in Problem List

The FDIC said for all of 2010, mergers absorbed 197 institutions,
while 157 insured commercial banks and savings institutions
failed.  This is the largest annual number of bank failures since
1992, when 181 institutions failed.

The number of institutions on the FDIC's "Problem List" increased
from 860 in the third quarter to 884 in the fourth quarter.  There
were 775 banks on the list at the end of the first quarter and 829
at June 30.

Total assets of "problem" institutions increased from $379 billion
at Sept. 30, 2010, to $390 billion at the end of the fourth
quarter.  The assets though are below the $403 billion reported at
year-end 2009.

FDIC Chairman Sheila C. Bair notes the rate of increase in the
number of "problem" banks has declined in each of the past four
quarters.  Thirty insured institutions failed during the fourth
quarter, bringing the total number of failures for the full year
to 157.  "As we have repeatedly stated, we believe that the number
of failures peaked in 2010, and we expect both the number and
total assets of this year's failures to be lower than last
year's," added Bair.

                Problem Institutions        Failed Institutions
                --------------------        -------------------
Year           Number  Assets (Mil)        Number Assets (Mil)
----           ------  ------------        ------ ------------
2010              884      $390,017         157        $92,085
2009              702      $402,800         140       $169,700
2008              252      $159,405          25       $371,945
2007               76       $22,189           3         $2,615
2006               50        $8,265           0             $0
2005               52        $6,607           0             $0
2004               80       $28,250           4           $170

Federal regulators assign a composite rating to each financial
institution, based upon an evaluation of financial and operational
criteria.  The rating is based on a scale of 1 to 5 in ascending
order of supervisory concern.  "Problem" institutions are those
institutions with financial, operational, or managerial weaknesses
that threaten their continued financial viability. Depending upon
the degree of risk and supervisory concern, they are rated either
a "4" or "5."  The number and assets of "problem" institutions are
based on FDIC composite ratings.  Prior to March 31, 2008, for
institutions whose primary federal regulator was the OTS, the OTS
composite rating was used.


* Mercer Island Man Pleads Guilty in Connection With Ponzi Scheme
-----------------------------------------------------------------
Frederick Darren Berg, 49, of Mercer Island, Washington, pleaded
guilty late today in U.S. District Court in Seattle to one count
of Wire Fraud, one count of Money Laundering and one count of
Bankruptcy Fraud.  BERG and prosecutors agreed to an 18 year
prison term when he is sentenced by U.S. District Judge Richard A.
Jones on November 4, 2011.  If Judge Jones rejects the 18 year
prison term, both sides can withdraw from the plea agreement and
proceed to trial.

BERG is the founder of the Meridian Group of investment funds.
The funds represented that $280 million in investor money was
invested in real estate contracts, however the funds were
elaborate ponzi schemes.  BERG used more than $100 million from
about 500 investors for his own expenses and to keep the fraud
going.  BERG claimed he was cooperating with bankruptcy trustees
in his personal and corporate bankruptcies in an effort to help
unravel his fraud schemes.  Federal investigators learned that he
had concealed approximately $400,000 from the trustees and later
lied about the source of these funds when confronted by the
trustee in his personal bankruptcy.  Further investigation
revealed the funds came from the sale of a home he had failed to
disclose in his bankruptcy proceedings and the funds were
deposited into a series of bank accounts he concealed from the
trustee.  Failure to disclose those assets to the trustee results
in the bankruptcy fraud charge.  BERG was indicted in November
2010.

BERG was arrested in Los Angeles on October 21, 2010.  He has been
in federal custody ever since.

The case was investigated by the FBI, the Washington State
Department of Financial Institutions (DFI) and the Internal
Revenue Service Criminal Investigation (IRS-CI).   The case was
being prosecuted by Assistant United States Attorney Norman
Barbosa.

* SEC Scores Injunction Against Ex Birmingham, Ala. Mayor
---------------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that the U.S. Securities
and Exchange Commission on Monday won an injunction against a
former mayor of Birmingham, Ala., who was sentenced to 15 years
for participating in a bid-rigging scheme that helped push a
county to the brink of bankruptcy.

Law360 relates that U.S. District Judge Abdul K. Kallon granted
the SEC's motion for summary judgment on collateral estoppel
grounds and permanently banned Larry P. Langford from violating
securities laws.


* Cadwalader Adds Leading Structured Finance Lawyer to Hong Kong
----------------------------------------------------------------
Cadwalader, Wickersham & Taft LLP disclosed that Jeffrey H. Chen,
a preeminent lawyer in structured finance and derivatives, has
joined the firm's Hong Kong office as Partner.  Mr. Chen, formerly
with Mayer Brown JSM in Hong Kong, will be a part of the Capital
Markets team.

"Jeff is a highly regarded capital markets lawyer.  He brings to
Cadwalader extensive knowledge of and experience with complex
structured finance products," said Christopher White, Chairman of
Cadwalader.  "With great talent like Jeff, we continue to develop
our full suite of debt, equity and hybrid capital markets services
to clients throughout Asia. We look forward to his contributions
to the Firm and to Cadwalader's continued growth and success in
Asia."

"Jeff is experienced in limited recourse financing structures of
all types, including asset-backed loans and asset-backed
securities," stated Rocky Lee, Head of Cadwalader's Asia practice.
"He has pioneered limited recourse receivables financing in
mainland China under existing PRC law.  I am honored to welcome
him to our Office and our Firm," he said.

Mr. Chen has advised on many of the headline structured finance
transactions in Asia over the past decade, including Huarong AMC
NPLs, Samsung Life RMBS, HKMC's cross-border Korean
securitizations, and more recently a slew of complex structured
notes and derivatives litigation arising out of the global Lehman
bankruptcy proceedings.

"Cadwalader will be by far the best platform that I will have ever
worked on in my career in structured finance," says Mr. Chen.
"The firm is absolutely top-tier in this practice area globally,
and I am delighted to have the opportunity of spear-heading the
firm's structured finance initiatives into Asia."

"Our European capital markets clients with interests in Asia will
benefit greatly from Jeff's breadth of experience on the ground in
Hong Kong," said Angus Duncan, Managing Partner of Cadwalader's
London office.

Mr. Chen is an active participant in several industry
associations, including the Asia-Pacific Legal & Regulatory
Committee of the International Swaps & Derivatives Association
(ISDA) and the China Securitization Forum (CSF).  He is a member
of the Professional Advisory Board, Asian Institute of
International Financial Law, Faculty of Law, The University of
Hong Kong.

Mr. Chen received a B.A. and an M.A. in History from the
University of Michigan and graduated from George Washington
University with his law degree.  He is licensed to practice law in
Washington, D.C., New York and Hong Kong.

                About Cadwalader, Wickersham & Taft LLP

Cadwalader, Wickersham & Taft LLP, established in 1792, is one of
the world's leading international law firms, with offices in New
York, Washington, Charlotte, Houston, London, Brussels, Hong Kong
and Beijing.  Cadwalader serves a diverse client base, including
many of the world's top financial institutions, undertaking
business in more than 50 countries in six continents.  The firm
offers legal expertise in antitrust, banking, business fraud,
corporate finance, corporate governance, environmental, financial
restructuring and reorganizations, healthcare, intellectual
property, litigation, mergers and acquisitions, private client,
private equity, real estate, regulation, securitization,
structured finance, and tax.


* Hal Hirsch Joins Alvarez & Marsal to Head Risk Services Group
---------------------------------------------------------------
Global professional services firm Alvarez & Marsal disclosed that
Hal Hirsch has joined the firm as managing director and head of
its newly formed Global Asset Risk Services practice.  Leveraging
A&M's global platform and depth of expertise, the practice has
been established to assist sovereigns, foundations and
corporations in tracing, tracking, quantifying and recovering
investments and donations in situations including sovereign
investments, international military assistance, humanitarian and
disaster relief, and fraud.

Formerly chair of the global recovery practice at Greenberg
Traurig, Mr. Hirsch brings 30 years of experience in complex
international and domestic asset investigation, recovery and
strategic counseling. Over the course of his career, his efforts
have produced more than one billion dollars in cash recoveries on
behalf of clients.

"From the precedent-setting Lehman Brothers bankruptcy, where we
are working to maximize the value of highly complex assets around
the world, to the New Orleans public schools in the aftermath of
Hurricane Katrina, where mismanagement had jeopardized the very
future of the system, A&M has a long and successful track record
of identifying and protecting assets and maximizing recoveries for
a wide range of entities," said Bryan Marsal, co-CEO of Alvarez &
Marsal.  "This background, combined with our well-established
global forensics and dispute services business, provides an ideal
platform for a specialized practice focused on helping clients to
locate, track and recover funds in a variety of challenging
situations.

"Hal's experience and leadership will be invaluable as we continue
to position our services at the forefront of global asset advisors
and managers capable of comprehending and remediating the world's
most complex and sensitive transactions," he added.

"All global investors and donors seek to avoid and mitigate
significant financial loss by instilling sound financial,
transparent and practical policies.  Yet, in many cases,
accountability, prioritization, reporting and results are beyond
investor and donor means," said Mr. Hirsch.  "In other cases,
investors and donors are seeking to recover their assets or
improve their returns-on-investment.  By bringing to bear our
experience in forensic data analysis, fraud expertise, financial
processes, and, in certain instances, as a third party fiduciary
services, our services will greatly enhance the accountability,
transparency, recovery and integrity of our clients' investments."

Throughout his career, Mr. Hirsch has been involved in all aspects
of asset investigation and recovery including pursuits related to:
anti-money laundering, bank secrecy, Mareva injunctions, Hague
Convention and Ponzi fraud.  He has conducted internal
investigations of public and private entities globally to trace
and recover financial and intellectual property lost through
mismanagement, fraud and embezzlement.  His efforts have assisted
foreign countries and the U.S. including testimony before United
States Congress to report on the investigation of fraud.  In
addition, his work led the United States to enter into the only
agreement ever executed by the U.S. with a non-sovereign, the
client-entity, whereby the U.S. consented to remit all proceeds of
international fraud, along with disclosing multiple sovereign
intelligence reports (Mutual Legal Assistance Treaty), with
sovereign consent. His work also led to the first worldwide Mareva
injunction (freezing order) to protect suspect assets from
dissipation.

Mr. Hirsch served as a federal trustee in bankruptcy for more than
a decade, was appointed by the United States Department of Justice
and elected as Operating Chapter 11 trustee and trustee in scores
of special circumstance and high-profile cases.  A graduate of New
York University, he earned a law degree from Brooklyn Law School.

                      About Alvarez & Marsal

Alvarez & Marsal (A&M) is a global professional services firm
specializing in turnaround and interim management, performance
improvement and business advisory services. A&M delivers
specialist operational, consulting and industry expertise to
management and investors seeking to accelerate performance,
overcome challenges and maximize value across the corporate and
investment lifecycles.  Founded in 1983, the firm is known for its
distinctive restructuring heritage, hands-on approach and
relentless focus on execution and results.


* Kirkland Energy Transaction Pro Joins McDermott Will
------------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that McDermott Will &
Emery LLP said Monday that it had lured to its New York office a
former Kirkland & Ellis LLP energy attorney whose transaction and
restructuring expertise should bolster the firm before a
forecasted rise in energy project bankruptcies.

The firm said Iskender H. "Alex" Catto -- who helped represent
Constellation Energy Group Inc. in its pending $7.9 billion
acquisition by Exelon Corp.-- has joined McDermott's energy
advisory practice group, according to Law360.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Oct. 14, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     Hilton San Diego Bayfront, San Diego, CA
        Contact: http://www.turnaround.org/

Dec. 1-3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 3-5, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.
           Contact: http://www.turnaround.org/

Apr. 19-22, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/


                           *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR.  Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts.  The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

The Sunday TCR delivers securitization rating news from the week
then-ending.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                           *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise
Marie Varquez, 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 ***