/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110811.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 11, 2011, Vol. 15, No. 221 Headlines 3 S&L: Voluntary Chapter 11 Case Summary 4TH & 9TH: Case Summary & 2 Largest Unsecured Creditors 785 PARTNERS: Sec. 341 Creditors Meeting Set for Sept. 12 785 PARTNERS: Initial Case Conference Scheduled for Sept. 20 785 PARTNERS: Lender Wants Receiver to Continue Property Upkeep ACADEMIA SAGRADO: Case Summary & 20 Largest Unsecured Creditors ANGEL ACQUISITION: Changes Name to BioGeron Inc ARCADE PUBLISHING: Author Not Entitled to Pre-Judgment Interest ARCH ALUMINUM: Trustee Has $370T from Settlement of Preferences ARNOLD DORMER: Files for Chapter 11 Bankruptcy Protection ASSOCIATED GROCERS: Camden Buys Property for $5 Million BAKERS FOOTWEAR: Reports $44.3-Mil. of Net Sales in 2nd Quarter BERNARD L MADOFF: Trustee Can't Pursue Bank Austria Claims BESO LLC: Landry's to Offer $1 Million for Restaurant BILL JOHNSON'S: Big Apple Restaurants to Remain Open in Chapter 11 BLUEKNIGHT ENERGY: Files Form 10-Q, Incurs $5.3MM Net Loss in Q2 BORDERS GROUP: Streambank to Manage Intellectual Property Sale BRADFORD BROWN: Dist. Ct. Tosses Brother's Appeal Over IRS Accord BRETAGNE, LLC: Case Summary & 20 Largest Unsecured Creditors CATALYST PAPER: Files Form 6-K, Incurs C$47.7-Mil. Net Loss in Q2 CENTRAL FALLS: Bankruptcy Filing Allows Trustee to Rewrite Deals CHRISTIAN BROTHERS: Court Okays Bansley & Keiner as Accountant CHRISTIAN BROTHERS: Wants Plan Filing Exclusivity Until Dec. 24 CLEARWIRE CORP: Files Form 10-Q; Incurs $168.7MM Net Loss in 2Q COLONIAL PROPERTIES: Fitch Affirms Issue Default Rating at 'BB+' COLONIAL REALTY: Fitch Affirms 'BB+' Rating on Unsec. Facilities COMPOSITE TECHNOLOGY: Adds Two Members to Creditors Committee CORNERSTONE BANCSHARES: Reports $141,287 Net Income in Q2 CORPORATE INVESTMENT: Voluntary Chapter 11 Case Summary CUMULUS MEDIA: Completes Purchase of Remaining Interests in CMP CRYSTAL CATHEDRAL: Committee Files Sale-Based Exit Plan DAL-JONES INVESTMENTS: Case Summary & Creditors List DANIEL L. HENDON: Case Summary & 2 Largest Unsecured Creditors DELTA AIR: Awaiting IRS's Guidance on Tax Refunds DELTA AIR: Welcomes US Air Flying Rights Transfer Approval DELTA AIR: Former Atlanta Mayor Named to Board E-DEBIT GLOBAL: Commences Review of Mobile Payments Marketplace EAGLE BULK: Posts $1.4 Million Net Loss in 2nd Quarter EMERALD COAST: Case Summary & 3 Largest Unsecured Creditors EVERGREEN PLAZA: Awaits Order to Use Cash Collateral for 3rd Qtr EVERGREEN PLAZA: Has Go-Signal to Hire Bankruptcy Counsel EXIDE TECHNOLOGIES: Files 1st Quarter 2011 Summary Report EXIDE TECHNOLOGIES: Wants Until Oct. 31 to Object to Claims EXIDE TECHNOLOGIES: Has Settlement With SAPP Battery FANNIE MAE: Incurs $2.89 Billion Net Loss in Second Quarter FIDELITY NATIONAL: Fitch Affirms 'BB+' Rating on $1-Bil. Facility FLORIDA EXTRUDERS: Chapter 11 Plan Declared Effective FNB UNITED: Inks Subscription Pacts with Additional Investors FOUNDATIONS MONTESSORI: Voluntary Chapter 11 Case Summary FRONTGATE DEVELOPMENT: Case Summary & Creditors List GCEP - GOODYEAR: Case Summary & 20 Largest Unsecured Creditors GETTY PETROLEUM: Defaults on Rental Payments to Getty Realty GLOBAL CROSSING: Files Form 10-Q, Incurs $34-Mil. Net Loss in Q2 GRAND ISLAND: Case Summary & 20 Largest Unsecured Creditors HALO WIRELESS: Voluntary Chapter 11 Case Summary HARRY & DAVID: Creditors Push for Plan Confirmation HCA HOLDINGS: Reports $320 Million Net Income in June 30 Quarter HERITAGE CONSOLIDATED: Court OKs Hiring of 3 Law Firms HIMES PROPERTIES: Case Summary & 7 Largest Unsecured Creditors HIS, II: Case Summary & 20 Largest Unsecured Creditors INTELSAT SA: Incurs $214.4 Million Net Loss in Second Quarter IOWA HOTEL: Case Summary & 20 Largest Unsecured Creditors JACKSON HEWITT: Stay Lifted in Firm, H&R Block False Ad Row JAMESTOWN MALL: Voluntary Chapter 11 Case Summary JCK HOTELS: U.S. Trustee Forms 3-Member Creditors Committee JEFFERSON, ALA: Won't Extend Standstill Agreement With Creditors KBJ LOGGING: Case Summary & 20 Largest Unsecured Creditors KT SPEARS: Court Approves McCarthy Law as Substitute Counsel KV PHARMACEUTICAL: Partner Fund Owns 1.25MM of Class A Shares LAPAHANA LLC: Case Summary & 2 Largest Unsecured Creditors LAVATEC INC: Goudkuil Buys Business Out of Chapter 11 LEE ENTERPRISES: Incurs $155.4 Million Net Loss in June 30 Qtr. LEHMAN BROTHERS: BNP Paribas Supports Plan Disclosures LEHMAN BROTHERS: Barclays Again Seeks Dismissal of $500MM Suit LEHMAN BROTHERS: Appeals 2008 Order Due to Barclays Windfall LEHMAN BROTHERS: Brokerage Wants Payback to Start Soon LEHMAN BROTHERS: Proposes to Create 2 Credit-Worthy Guarantors LEVELLAND/HOCKLEY: Court OKs Block & Garden as Bankruptcy Counsel LIBBEY INC: Reports $15.4 Million Net Income in Second Quarter LIBBEY INC: Registers 1.46MM Common Shares Under Incentive Plan LIONEL YOW: Files for Chapter 11 Bankruptcy Protection LODGENET INTERACTIVE: Files Form 10-Q; Incurs $2.9-Mil. Q2 Loss LOS ANGELES DODGERS: Committee to Hire Morrison as Counsel LOTHIAN OIL: Re-characterization of Claim Not Limited to Insiders LYMAN LUMBER: U.S. Trustee Names 5 Members to Creditors Panel LYMAN LUMBER: Sec. 341 Creditors' Meeting Set for Sept. 9 LYMAN LUMBER: Can Use Up to $9MM of Lenders' Cash Through Aug. 26 LYMAN LUMBER: Asks Court to Approve Fredrikson & Byron Hiring MACCO PROPERTIES: NBC to Take Over Oklahoma and Texas Assets MACCO PROPERTIES: Trustee May Use Settlement Funds to Pay Expenses MACCO PROPERTIES: Court Denies Adeq. Protection Payment to Price MACCO PROPERTIES: To Pay $400,000 as Settlement for Dispute MACCO PROPERTIES: Redmond & Nazar OK'd to Handle Parkwood Suit MARCO POLO: Seeks Extra Funding to Protect Tanker Ships NEBRASKA BOOK: U.S. Appoints 2 Members to Creditor's Panel NELSON & ASSOCIATES: Case Summary & 20 Largest Unsecured Creditors NEONODE INC: Incurs $2.7 Million Net Loss in Second Quarter NEW ERA HOSPITALITY: Sec. 341 Creditors' Meeting Set for Sept. 20 NGPL PIPECO: Fitch Affirms 'BB+' Rating on Sr. Unsecured Debt OMNICOMM SYSTEMS: Posts $997,312 Net Loss in Second Quarter ORAGENICS INC: Posts $2.4-Mil. Net Loss in Second Quarter OUR FAMILY: Case Summary & 2 Largest Unsecured Creditors PALM HARBOR: Plan Promises Up to 21% Recovery for Unsecureds PLATINUM PROPERTIES: Wants Forbearance Deal with BofA Amended POINT BLANK: Ex-Chief to Plead to Tax Charges, Lawyer Says QUANTUM FUEL: Amends Form S-3 Registration Statement QUINCY MEDICAL: Says Patient Care Ombudsman Appointment Not Needed QUINCY MEDICAL: Wants to Auction Substantially All Assets RADIOSHACK: Fitch Affirms 'BB' Rating on Senior Notes RAY GUY: Ex-Raider Auctions Super Bowl Rings for $96,216 REGENERX BIOPHARMA: Posts $1.5 Million Net Loss in Q2 2011 RTJJ, INC.: Case Summary & 20 Largest Unsecured Creditors RVTC LP: Court Approves Integra Realty as Real Property Appraiser RYLAND GROUP: Files Form 10-Q; Incurs $10.7-Mil. Net Loss in Q2 SBARRO INC: Files Joint Plan of Reorganization SCHOMAC GROUP: Files for Chapter 11 in Tucson, Arizona SCI REAL ESTATE: Has Until Sept. 12 to File Chapter 11 Plan SCHOMAC GROUP: Case Summary & 20 Largest Unsecured Creditors SEARCHMEDIA HOLDINGS: Annual Meeting Set for Sept. 13 SEHANA CORPORATION: Case Summary & 6 Largest Unsecured Creditors SINCLAIR BROADCAST: Files Form 10-Q, Has $18.4-Mil. Profit in Q2 SK FOODS: Appeals Involving Former CEO Consolidated SOLAR DRIVE: Sec. 341 Creditors' Meeting Set for Sept. 8 SOUTH OF THE STADIUM: Taps Ross C. Helbing as Assets Appraiser SOUTHWEST GEORGIA ETHANOL: Requests More Time for Plan SPANISH BROADCASTING: Acquires KTBU-TV for $16 Million SUMMO, INC.: Case Summary & 14 Largest Unsecured Creditors SWAMI SHREE: Case Summary & 20 Largest Unsecured Creditors SWEET HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors TCI COURTYARD: Meeting of Creditors on Aug. 31 THREE D'S: Case Summary & 4 Largest Unsecured Creditors T.O.D.A.Y.S. YOUTH: Files for Chapter 11 Bankruptcy Protection T.O.D.A.Y.S. YOUTH: Case Summary & 20 Largest Unsecured Creditors TP INC: Trustee Can Retain Cameron Management as Agent/Broker TP INC: Trustee Can Hire Treasure Realty as Property Manager TP INC: Trustee Taps Century 21 Action as Rental Property Manager TRISTAR ESPERANZA: Case Summary & 4 Largest Unsecured Creditors UNIFI INC: Completes Call for Partial Redemption of Senior Notes VITRO SAB: Noteholders Want Recognition Petition Dismissed WASTE2ENERGY HOLDINGS: Four Creditors File Involuntary Petition WASTE2ENERGY HOLDINGS: Bondholders Seek to Oust Management WASTE2ENERGY HOLDINGS: Involuntary Chapter 11 Case Summary WEST CORP: Files Form 10-Q; Posts $34.3 Million Net Income in Q2 WESTMORELAND COAL: Incurs $7.9 Million Net Loss in Second Quarter WESTMORELAND COAL: Registers 425,000 Shares of Common Stock ZOTA PETROLEUMS: Files for Chapter 11 Bankruptcy Protection ZOTA PETROLEUMS: Case Summary & 14 Largest Unsecured Creditors * Troubled N.Y. Health-Care Nonprofit May Lose Medicaid License * FDIC Discloses Bidders for Small Investor Program Pilot Sale * Moody's: U.S. Retail Default Rate Low During Recession * Federal Home Loan Banks, Depository Trusts Cut by S&P * Ex. Gov. Carey, Who Helped NYC Duck Bankruptcy, Dies at 92 * Dallas Bankruptcy Lawyer Mark Ralston Joins Taber Estes Thorne * Recent Small-Dollar & Individual Chapter 11 Filings ********* 3 S&L: Voluntary Chapter 11 Case Summary ---------------------------------------- Debtor: 3 S&L Building, LLC 2651 W. Algonquin Road Algonquin, IL 60102 Bankruptcy Case No.: 11-83506 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Northern District of Illinois (Rockford) Judge: Manuel Barbosa Debtor's Counsel: David R. Herzog, Esq. HERZOG & SCHWARTZ PC 77 W Washington Suite 1717 Chicago, IL 60602 Tel: (312) 977-1600 E-mail: drhlaw@mindspring.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. 4TH & 9TH: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------- Debtor: 4th & 9th Townhomes, Inc P.O. Box 330108 Atlantic Beach, FL 32233 Bankruptcy Case No.: 11-05858 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Taylor J. King, Esq. LAW OFFICES OF MICKLER & MICKLER 5452 Arlington Expressway Jacksonville, FL 32211 Tel: (904) 725-0822 Fax: (904) 725-0855 E-mail: court@planlaw.com Scheduled Assets: $1,100,915 Scheduled Debts: $1,403,280 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb11-05858.pdf The petition was signed by Chris Hionides, president. 785 PARTNERS: Sec. 341 Creditors Meeting Set for Sept. 12 --------------------------------------------------------- The United States Trustee will convene a meeting of creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of 785 Partners LLC on Sept. 12, 2011, at 2:30 p.m. at 80 Broad St., 4th Floor, USTM. 785 Partners LLC owns the 566-foot glass sliver tower, nicknamed the sliver tower, at 785 Eighth Avenue in Manhattan. The 43-story building has been frozen since 2010 while an $84 million foreclosure suit wound its way through the courts. On Oct. 6, 2010, the Supreme Court of the State of New York, New York County, appointed Gerald Kahn as receiver in the foreclosure action, which is styled "PB Capital Corporation, as Administrative Agent for Lenders, PB Capital Corporation and TD Bank, N.A. v. 785 Partners LLC, Kevin O'Sullivan, Donal O'Sullivan, et al." (Index No. 810039/2010). 785 Partners LLC filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-13702) on Aug. 3, 2011. Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serves as counsel. The Debtor estimated assets and debts of $100 million to $500 million. The petition was signed by Kevin O'Sullivan, co- manager. 785 PARTNERS: Initial Case Conference Scheduled for Sept. 20 ------------------------------------------------------------ The Bankruptcy Court will hold an Initial Case Conference in the bankruptcy case of 785 Partners LLC on Sept. 20, 2011, at 10:00 a.m. at Courtroom 723. 785 Partners LLC owns the 566-foot glass sliver tower, nicknamed the sliver tower, at 785 Eighth Avenue in Manhattan. The 43-story building has been frozen since 2010 while an $84 million foreclosure suit wound its way through the courts. On Oct. 6, 2010, the Supreme Court of the State of New York, New York County, appointed Gerald Kahn as receiver in the foreclosure action, which is styled "PB Capital Corporation, as Administrative Agent for Lenders, PB Capital Corporation and TD Bank, N.A. v. 785 Partners LLC, Kevin O'Sullivan, Donal O'Sullivan, et al." (Index No. 810039/2010). 785 Partners LLC filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-13702) on Aug. 3, 2011. Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serves as counsel. The Debtor estimated assets and debts of $100 million to $500 million. The petition was signed by Kevin O'Sullivan, co- manager. 785 PARTNERS: Lender Wants Receiver to Continue Property Upkeep --------------------------------------------------------------- First Manhattan Developments REIT asks the Bankruptcy Court to excuse Gerald Kahn, the receiver of 785 Partners LLC's assets, from complying with the requirements imposed under Sections 543(a) and (b)(1) of the Bankruptcy Code. First Manhattan alleges it is owed $100 million, which claim is secured by the Debtor's property. The creditor said the Debtor has a "single asset real estate" case that was filed to stay a foreclosure action that has been pending for over 10 months. It is essentially a two-party dispute. It is undisputed that the units in the Premises are not occupied by any tenants, and that the Debtor has no income with which to pay the expenses necessary to maintain and preserve the Premises. Sections 543(a) and (b)(1) require the Receiver, among other things, to cease his maintenance of the Premises and turnover all property, including funds on hand, to the Debtor. First Manhattan, however, wants the Receiver to remain in place to control, secure and protect the Premises, including maintaining an operable safety system, insurance coverage and keeping out squatters or vandals seeking to enter and damage the Premises. First Manhattan contends the Debtor does not have the funds necessary to maintain and secure the Premises. For the past 10 months, funds necessary to pay for necessary expenditures including security, heat, electricity, and insurance, have been supplied to the Receiver from First Manhattan's predecessor. First Manhattan seeks assurance that it should continue to advance funds to the Receiver, so that he can continue fulfilling his responsibilities under the Appointment Order, and preserve and protect the Premises. The Foreclosure Action arose in connection with three mortgages which secure promissory notes in the aggregate principal amount of up to roughly $84 million, which Notes and Mortgages are in default and have fully matured. The loans evidenced by the Notes and Mortgages were originally made to the Debtor by PB Capital Corporation, as Administrative Agent for lenders PB Capital Corporation and TD Bank, N.A. In July 2009, the Notes became due and the Debtor failed to pay the outstanding principal balance and accrued interest. On July 23, 2009, the Debtor and the Initial Lenders entered into a letter agreement which provided for, among other provisions, a revised Maturity Date for the Notes of Aug. 7, 2009. When the Notes became due and payable on Aug. 7, 2009, the Debtor again failed to pay the outstanding principal balance and accrued interest. On Sept. 27, 2010, the Foreclosure Action was commenced against several parties including the Debtor, as well as Kevin O'Sullivan and Donal O'Sullivan, as guarantors of the Debtor's obligations under the Notes and the Mortgages. On July 29, 2011, First Manhattan acquired the Initial Lenders' interest in the Mortgages and Notes, and related agreements including certain guarantees. Attorneys for First Manhattan Developments REIT are: Kenneth P. Silverman, Esq. Adam L. Rosen, Esq. SILVERMANACAMPORA LLP 100 Jericho Quadrangle, Suite 300 Jericho, NY 11573 Tel: (516) 479-6300 E-mail: KSilverman@SilvermanAcampora.com ARosen@SilvermanAcampora.com About 785 Partners 785 Partners LLC owns the 566-foot glass sliver tower, nicknamed the sliver tower, at 785 Eighth Avenue in Manhattan. The 43-story building has been frozen since 2010 while an $84 million foreclosure suit wound its way through the courts. 785 Partners LLC filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-13702) on Aug. 3, 2011. Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serves as counsel. The Debtor estimated assets and debts of $100 million to $500 million. The petition was signed by Kevin O'Sullivan, co- manager. ACADEMIA SAGRADO: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Academia Sagrado Corazon, Inc. P.O. Box 11368 San Juan, PR 00910 Bankruptcy Case No.: 11-06681 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Carlos Rodriguez Quesada, Esq. LAW OFFICE OF CARLOS RODRIGUEZ QUES P.O. Box 9023115 San Juan, PR 00902-3115 Tel: (787) 724-2867 E-mail: cerqlaw@coqui.net Scheduled Assets: $2,000,000 Scheduled Debts: $190,089 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/prb11-06681.pdf The petition was signed by Lcdo. Moises Gomez, vice-president. ANGEL ACQUISITION: Changes Name to BioGeron Inc ----------------------------------------------- Angel Acquisition Corp. filed a "certificate of change" with the Nevada Secretary of State in order to effectuate a 1:15,900 reverse stock split and a contemporaneous 1:15,900 reduction in the number of the Company's authorized shares of common stock, par value $0.00001, in accordance with the procedure authorized by Nevada Revised Statutes. The board of directors determined that it would be in the Company's best interest to effect the Reverse Split and approved this corporate action by unanimous written consent. The Reverse Split does not require shareholder approval. On Aug. 1, 2011, the Company filed "articles of merger" with the Secretary of State of Nevada in order to effectuate a merger whereby the Company merged with its wholly-owned subsidiary, BioGeron, Inc., as a parent/ subsidiary merger with the Company as the surviving corporation. This merger, which became effective as of Aug. 1, 2011, was completed pursuant to NRS 92A.180. Shareholder approval to this merger was not required under NRS 92A.180. In process of the merger, the Company's name has been changed to "BioGeron, Inc." and the Company's Articles of Incorporation have been amended to reflect this name change. In connection with the Reverse Split and name change, the Company has the following new CUSIP number: 09072F 100. The Company has submitted the required information to FINRA and expects to receive an effective date and new trading symbol soon for the corporate actions. About Angel Acquisition Carson City, Nev.-based Angel Acquisition Corp. was incorporated under the laws of the state of Nevada on March 10, 1999, under the name Palomar Enterprises, Inc. On February 5, 2008, the Company changed its name to Angel Acquisition Corp. to properly reflect the change in business direction. The Company assists private companies in the process of going public as well as being a licensed mortgage broker and developer. As reported by the TCR on April 13, 2011, Gruber & Company, LLC, Lake Saint Louis, Missouri, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditor noted that the Company has been unable to generate sufficient operating revenues and has incurred operating losses. The Company's balance sheet at March 31, 2011, showed $617,760 in total assets, $1.31 million in total liabilities and a $694,727 total stockholders' deficit. ARCADE PUBLISHING: Author Not Entitled to Pre-Judgment Interest --------------------------------------------------------------- Arcade Publishing, Inc., objects to Claim No. 62 filed by Steven K. Hodel, challenging the portion of the unsecured claim seeking prepetition prejudgment statutory interest under section 5001(a) of the New York Civil Practice Law and Rules. Mr. Hodel timely filed a claim for $333,335.52 -- comprised of the principal amount of $224,571.07, plus statutory interest. Before the bankruptcy petition was filed, Mr. Hodel had filed a breach of contract action against Arcade in New York County Supreme Court, but the bankruptcy petition was filed before the State Court Action concluded. Arcade argues that the Claim should be allowed only in the principal amount of $224,571.07; it objects to the allowance of prepetition prejudgment statutory interest for $108,716.19. Bankruptcy Judge Martin Glenn sustained Arcade's Objection and allowed the Claim in the principal amount of $224,571.07, without interest. Based on the plain language of NY CPLR Sec. 5001(a), in the absence of a "sum awarded" in a New York state court (or bankruptcy court) action, Mr. Hodel is not entitled to statutory interest as a portion of the Claim. Mr. Hodel's Claim arises from unpaid royalties from his book, The Black Dahlia Avenger - A Genius for Murder, under a publishing agreement between Arcade and Mr. Hodel executed in 2002. The Black Dahlia Avenger - A Genius for Murder, reached as high as number 14 on The New York Times "Best Sellers - Nonfiction" list in May 2003, became a best seller in France and was published in at least three other foreign countries. A copy of Judge Glenn's Aug. 9, 2011 Memorandum Opinion is available at http://is.gd/fg3qrQfrom Leagle.com. Attorney for Steven K. Hodel is: Anthony N. Elia, Esq. THE LAW OFFICE OF ANTHONY N. ELIA, P.C. 325 Broadway, Suite 201 New York, NY 10007 Tel: (212) 233-5300 Fax: (212) 349-0694 E-mail: info@anelaw.com About Arcade Arcade Publishing, Inc., was a full-service publishing company that had been in business for over 20 years. Arcade specialized in publishing international and domestic literary works and enjoyed a prominent reputation within the industry. With the death of Arcade's president, Richard Seaver, the company struggled to reorganize and find investors. The woes of the publishing industry as well as the economic climate seemed to be the final straws, leading Arcade to seek relief under chapter 11 (Bankr. S.D.N.Y. Case No. 09-13636) on June 5, 2009. Nancy L. Kourland, Esq. -- nkourland@rosenpc.com -- at Rosen & Associates, P.C., in New York, represents the Debtor. The Company estimated $1 million to $10 million in both assets and debts. On July 22, 2010, the Court entered an order approving the sale of the Debtor's assets to Skyhorse Publishing, Inc. A Joint Plan of Liquidation of the Official Committee of Unsecured Creditors and the Debtor was confirmed on April 15, 2011. Arcade's disclosure statement estimated recoveries by unsecured creditors in the range of 7% to 8%. ARCH ALUMINUM: Trustee Has $370T from Settlement of Preferences --------------------------------------------------------------- Chapter11Cases.com reports that the trustee for the Arch Aluminum & Glass Co. Liquidating Trust, John Pidcock, filed a report regarding his efforts to recover alleged preferential transfers by Arch Aluminum & Glass Co., Inc; AAG Holdings, Inc.; Arch Aluminum, L.C.; Arch Aluminum and Glass International, Inc.; and AWP, LLC with the Southern District of Florida bankruptcy court on Friday. Since its retention in November 2010, the law firm representing the liquidating trustee issued demand letters to 208 creditors which the liquidating trustee asserted received preferential transfers that were recoverable under section 547 of the Bankruptcy Code. The liquidating trustee has also filed 87 adversary complaints seeking to recover alleged preferential transfers. The liquidating trustee's report says it has reached settlements with approximately 35 creditors who received challenged transfers. In total, the liquidating trustee had sought to recover almost $1.57 [million] in alleged preferential transfers from these creditors. Chapter11Cases.com notes that the trustee has settled these claims for slightly less than $370,000, however. Of the 35 settlements, only one settlement relates to an adversary complaint filed by the trustee; the rest relate to settlements of demand letters. The firm representing the liquidating trustee is entitled to 25% of the settlement amounts, plus recovery of reasonable expenses, as a contingency fee. Therefore, the firm has claimed $91,655.05 as its contingency fee from the $370,000 in settlements. About Aluminum & Glass Tamarac, Florida-based Arch Aluminum & Glass Co., Inc. -- fka Trident Consolidated Industries, Arch, Inc., and Arch Tulsa Acquisition Co.; and dba Arch Mirror North, Arch Mirror South, Architectural Safety Glass, Arch Mirror West, Arch Tempered Glass Products, and Arch Deco Glass -- was founded in 1978 by Robert Silverstein, as a small South Florida glass and metal distributor with a single truck. During the 1980's the Company opened fabrication facilities and additional distribution facilities in Florida and the Northeast. The Company provides a comprehensive line of products and services to more than 5,000 customers from 28 office, manufacturing and distribution facilities located in 19 states nationwide. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 09-36232) on Nov. 25, 2009. The Company estimated $100 million to $500 million in assets and liabilities as of the Chapter 11 filing. The Company's affiliates -- Arch Aluminum L.C.; AWP, LLC, dba Yale-Ogron; Arch Aluminum and Glass International Inc.; and AAG Holdings, Inc. -- also filed separate Chapter 11 petition. Paul J. Battista, Esq., at Genovese Jblove & Battista, P.A., serves as bankruptcy counsel to the Debtors. Vincen J. Colistra at Phoenix Management Services is the Debtors' restructuring services provider. Michael Dillahunt and Piper Jaffrey & Co. is the Debtors' investment banker ARNOLD DORMER: Files for Chapter 11 Bankruptcy Protection --------------------------------------------------------- Arnold R. Dormer Jr. filed a Chapter bankruptcy petition (Bankr. W.D. Tenn. Case No. 11-27934) on Aug. 5, 2011. Aisling Maki at the Daily News reports Mr. Dormer, a real estate investor from Tennessee, disclosed assets of more than $3.3 million. Creditors he identified include Independent Bank, BancorpSouth Mortgage and the city of Memphis. According to the Daily News, Mr. Dormer is scheduled to lead an early-bird table-top session called "Getting Started Right in Real Estate Investing" Thursday, Aug. 11, at the monthly Memphis Investors Group meeting at the Hilton Memphis, 939 Ridge Lake Blvd. ASSOCIATED GROCERS: Camden Buys Property for $5 Million ------------------------------------------------------- Mainebiz News reports that Camden National Corp., parent company of Camden National Bank, acquired Associated Grocers of Maine's land and buildings for $5 million at a public auction. Kennebec Journal said that the bank, which held the association's $4.8 million mortgage, had foreclosed on the property and set up the auction, according to Mainebiz News. The report relates that the sale included 120 acres and a 263,000-square-foot distribution warehouse in Gardiner, valued at more than $16 million. About Associated Grocers Associated Grocers supplies independent grocers around Maine. Associated Grocers has operated since 1953 and serves hundreds of small grocery stores around the state. The Associated Grocers of Maine was placed in court-ordered receivership in April 2011, after accumulating at least $10.8 million in debt, mostly for two mortgages owed to Savings Bank of Maine and Camden National Bank, the report recalls. BAKERS FOOTWEAR: Reports $44.3-Mil. of Net Sales in 2nd Quarter --------------------------------------------------------------- Bakers Footwear Group, Inc., reported that for the second quarter, the thirteen weeks ended July 30, 2011, net sales were $44.3 million, increasing 2.4% from $43.3 million for the thirteen weeks ended July 31, 2010. Comparable store sales for the second quarter of fiscal 2011 increased 4.7%, compared to a comparable store sales increase of 0.2% for the second quarter of fiscal 2010. For the first six months of fiscal 2011 ended July 30, 2011, net sales were $91.3 million, increasing 5.2% from $86.8 million in the first six months ended July 31, 2010. Comparable store sales for the first six months of fiscal 2011 increased 7.1%, compared to a decrease of 0.7% in the first six months of fiscal 2010. Peter Edison, Chairman and Chief Executive Officer of Bakers Footwear Group commented, "We began the quarter strong with double digit comparable store sales growth in May. However, a challenging performance in open-toe footwear led to a softening in sales as the quarter progressed. As we look ahead, we are optimistic that our business is positioned appropriately to capitalize on key trends for the fall season." About Bakers Footwear St. Louis, Mo.-based Bakers Footwear Group, Inc. (OTC BB: BKRS.OB) is a national, mall-based, specialty retailer of distinctive footwear and accessories for young women. The Company's merchandise includes private label and national brand dress, casual and sport shoes, boots, sandals and accessories. The Company currently operates 231 stores nationwide. Bakers' stores focus on women between the ages of 16 and 35. Wild Pair stores offer fashion-forward footwear to both women and men between the ages of 17 and 29. The Company reported a net loss of $9.29 million on $185.62 million of net sales for the fiscal year ended Jan. 29, 2011, compared with a net loss of $9.08 million on $185.36 million of net sales for the year ended Jan. 30, 2010. The Company's balance sheet at April 30, 2011, showed $48.51 million in total assets, $56.92 million in total liabilities and a $8.41 million total shareholders' deficit. As reported by the TCR on May 6, 2011, Ernst & Young LLP, in St. Louis, Mo., expressed substantial doubt about Bakers Footwear's ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial losses from operations in recent years and has a significant working capital deficiency. Bankruptcy Warning The Company noted in the Form 10-K that its ability to maintain and ultimately improve its liquidity position is highly dependent on sustaining the positive sales trends that began in June 2008 and have continued through April 2011. Comparable store sales for the last three quarters of fiscal year 2008 increased 4.7% and its comparable store sales for fiscal years 2009 and 2010 increased 1.3% and 1.7%, respectively. Through the first 12 weeks of fiscal year 2011 comparable stores sales increased 10.1%. The Company noted that net losses in recent years have negatively impacted its liquidity and financial position. As of Jan. 29, 2011, it had negative working capital of $8.7 million, unused borrowing capacity under our revolving credit facility of $3.1 million, and a shareholders' deficit of $6.0 million. The Company stated, "If positive sales trends do not continue, or if we were to incur significant unplanned cash outlays, it would become necessary for us to obtain additional sources of liquidity, or take additional cost cutting measures. Any future financing would be subject to our financial results, market conditions and the consent of our lenders. We may not be able to obtain additional financing or we may only be able to obtain such financing on terms that are substantially dilutive to our current shareholders and that may further restrict our business activities. If we cannot obtain needed financing, our operations may be materially negatively impacted and we may be forced into bankruptcy or to cease operations and you could lose your investment in the Company." BERNARD L MADOFF: Trustee Can't Pursue Bank Austria Claims ---------------------------------------------------------- Carla Main at Bloomberg News reports that Irving Picard, the trustee for Bernard Madoff's former firm, doesn't have standing to pursue common-law claims against UniCredit Bank Austria AG, a unit of UniCredit Spa, Italy's biggest bank, a federal judge ruled. U.S. District Judge Jed Rakoff in New York on Aug. 6 added UniCredit Bank Austria to a July 28 opinion barring Mr. Picard from pursuing some claims in his lawsuit against the UniCredit parent company as well as London-based HSBC Holdings Plc. The July 28 order was amended, Rakoff wrote, to "include a dismissal of the trustee's common law claims against Bank Austria." Ms. Main reports that Mr. Picard in December filed a revised complaint in U.S. Bankruptcy Court against HSBC, accusing it of aiding Mr. Madoff's fraud. The complaint seeks to recover $2 billion in transfers out of Mr. Madoff's business. It also asserted common-law claims seeking at least $6.6 billion from HSBC and about $2 billion from a group of 36 other defendants, including Milan-based UniCredit, according to Judge Rakoff's ruling. Judge Rakoff took the case out of bankruptcy court and considered whether Mr. Picard could bring common-law claims, such as aiding and abetting Mr. Madoff's fraud. The judge said on July 28 that all the common-law claims must be dismissed, with the remainder of the case returned to the bankruptcy court. Mr. Picard didn't immediately return a phone message seeking comment yesterday after regular business hours. The case is Picard v. HSBC Bank Plc, 11-cv-0763, U.S. District Court, Southern District of New York (Manhattan). 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. BESO LLC: Landry's to Offer $1 Million for Restaurant ----------------------------------------------------- Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reports that Beso LLC, on Monday hired a unit of Landry's Restaurants Inc. to manage its operations. In court papers filed Tuesday, Beso's attorneys also disclosed that Landry's intends to make an offer to buy Beso for $1 million, but the restaurant would have the right to seek higher offers. According to DBR, Beso's attorneys are asking the Court to approve the management agreement, which they deemed "the only viable alternative to ceasing operation" of the cash-crunched restaurant. DBR notes Landry's Chairman and Chief Executive Tilman Fertitta told Vegas Inc. in an interview Tuesday that Eva Longoria would retain a "substantial" stake in Beso, visit the restaurant when she came to town and maintain her say in the restaurant's menu and direction. Landry's bought the Western-themed steakhouse chain Claim Jumper and the fine-dining seafood chain Oceanaire out of Chapter 11 in recent years. Tilman Fertitta's cousins, Frank and Lorenzo Fertitta, continue to operate and own a stake in the Station Casinos chain following its emergence from Chapter 11 protection this June. Longoria Deposition on Aug. 30 Steve Green, writing for VegasInc., reported that the Bankruptcy Court has directed Ms. Longoria to appear in Las Vegas on Aug. 30 to be examined about Beso's finances. Disgruntled Beso investor Mali Nachum made the request. The Nachums assert they were wrongfully pushed out of the business and are still owed more than $710,000. Bankruptcy Judge Mike Nakagawa on July 18 denied a request by the Nachums that a trustee be appointed on an emergency basis, but left the door open for the Nachums to resubmit their request on a normal basis. Mr. Green also reported that Beso has filed a financial report showing it lost $394,000 in June, up sharply from May's loss of about $65,000. Revenue in June of about $704,000 was down from $1 million in May. Through June, the business had lost about $669,000 since filing for bankruptcy on Jan. 6 with $5.68 million in debt and liabilities. The Nachums are represented by: Brian D. Shapiro, Esq. LAW OFFICE OF BRIAN D. SHAPIRO, LLC 228 South 4th Street, Suite 300 Las Vegas, NV 89101 Tel: 702-386-8600 Fax: 702-383-0994 E-mail: mail@brianshapirolaw.com About Beso LLC Beso, LLC, co-owned by "Desperate Housewives" star Eva Longoria, filed for Chapter 11 bankruptcy protection on January 6, 2011 (Bankr. D. Nev. Case No. 11-10202). Beso, LLC, runs a Las Vegas restaurant that opened two years ago. It disclosed assets of $2,512,007 and liabilities of $5,680,339 in the schedules attached to the Chapter 11 petition. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm, in Las Vegas, Nevada, serves as counsel to the Debtor. The petition was signed by William M. Braden, manager. BILL JOHNSON'S: Big Apple Restaurants to Remain Open in Chapter 11 ------------------------------------------------------------------ Max Jarman at The Arizona Republic reports that Bill Johnson's Big Apple Restaurants CEO Sherry Cameron said the Company doesn't contemplate closing any of its restaurants during the reorganization and will retain its 200 employees. Bill Johnson's sought bankruptcy protection as the 55-year-old business has suffered from declining sales and falling real-estate values as the Phoenix-area economy deteriorated. According to the company's petition, Bill Johnson's Restaurants has $5.64 million in assets and $1.89 million in liabilities. Of the debt, $1.57 million is said to be secured, $215,988 is unsecured and $98,210 owed to unsecured creditors with priority claims. Phoenix, Arizona-based Bill Johnson's Restaurants, Inc., doing business as Bill Johnson's Big Apple Restaurants, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 11-22441) on Aug. 4, 2011. Shelton L. Freeman, Esq., at Deconcini Mcdonald Yetwin & Lacy PC, in Scottsdale, Arizona, serves as counsel to the Debtor. The Debtor estimated assets and debts of $1 million to $10 million. BLUEKNIGHT ENERGY: Files Form 10-Q, Incurs $5.3MM Net Loss in Q2 ---------------------------------------------------------------- Blueknight Energy Partners, L.P., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $5.34 million on $43.09 million of total revenue for the three months ended June 30, 2011, compared with a net loss of $2.70 million on $38.44 million of total revenue for the same period a year ago. The Company also reported a net loss of $2.71 million on $84.61 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $7.75 million on $75.47 million of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $327.44 million in total assets, $372.97 million in total liabilities, and a $45.52 million total partners' deficit. "Second quarter adjusted EBITDA was less than anticipated due to $1.0 million of increased maintenance expense (net of $1.4 million of reimbursed maintenance expense) and $0.3 million of legal, financial and advisory expenses related to the refinancing transaction," said J. Michael Cockrell, Blueknight Energy Partners president and chief operating officer. "The increased maintenance expense results from the implementation of tank inspection programs and previously deferred maintenance on our pipeline systems, including the repair of small leaks. We expect to sustain increased maintenance and maintenance capital expense through 2012. We also experienced operating margin shortfalls in our crude oil trucking business due to the continued realignment of that business, transitioning the fleet to newer equipment and increased competition for qualified crude oil drivers." A full-text copy of the Form 10-Q is available for free at: http://is.gd/yYOgyT 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. BORDERS GROUP: Streambank to Manage Intellectual Property Sale -------------------------------------------------------------- The Bankruptcy Court for the Southern District of New York today approved the retention of Streambank, LLC to market and sell the intellectual property assets of Borders Group, Inc., including its Borders(R), Waldenbooks(R), and Brentano's(R) trademarks and the Borders.com e-commerce business assets. The Bankruptcy Court has authorized a sale process for the intellectual property assets that requires bids for the assets by September 8, 2011 and an auction on September 14, 2011. Commenting on the sale, Streambank Principal David Peress noted "Borders has established a worldwide reputation as a leading destination for buyers of physical and digital media including books, eBooks, eReaders and related accessories. Borders remains engaged with its customers through the Borders.com e-commerce site which it expects to continue in business until transitioned to a new operator. In addition to its trademarks and e-commerce assets, Borders is the holder of a contiguous block of IPv4 addresses which it seeks to transfer to a qualified buyer." In accordance with the Bankruptcy Court Order approving the intellectual property sale process, Borders has the ability to provide certain protections to bidders who make meaningful non- contingent offers for the intellectual property assets. Parties with an interest in the intellectual property assets should contact David Peress at (781) 444-4940 or dperess@streambankllc.com for more information. About Streambank Streambank is an advisory firm, specializing in the valuation, marketing, and sales of intangible assets for businesses at all stages. Streambank identifies, preserves, and extracts value for clients through the application of experience, diligence and creativity. The firm's recent experience includes Robb & Stucky Furniture, Berkline/BenchCraft, Tavern on the Green, Anchor Blue, Movie Gallery, Circuit City Stores, KB Toys and other notable trademarks and brand names. About Borders Group Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) -- <http://www.borders.com/>http://www.borders.com/-- is a specialty retailer of books as well as other educational and entertainment items. The company employs approximately 25,000 workers throughout the U.S., primarily in its Borders(R) and Waldenbooks(R) stores. Borders announced the closing of 200 Waldenbooks stores in Nov. 20009. Online shopping is offered through borders.com. Borders Group, Inc., has $1.125 billion of first-lien loans maturing in July 31, 2011. At Aug. 1, 2009, Borders Group, Inc.'s balance sheet showed $1.5 billion in assets and $136.9 million in shareholder equity. Borders Group, Inc., has reported net losses in 2007, 2008 and 2009. BRADFORD BROWN: Dist. Ct. Tosses Brother's Appeal Over IRS Accord ----------------------------------------------------------------- District Judge Clay D. Land of the U.S. District Court for the Middle District of Georgia, Athens Division, affirmed a bankruptcy court's approval of a compromise between Ernest V. Harris, the Chapter 7 Trustee for the estate of Bradford G. Brown, and the Internal Revenue Service. The Debtor was convicted of criminal tax evasion for the years 1994 and 1995. As part of his sentence, the District Court entered an award of restitution against him for over $3 million. In January 2005, the Debtor filed a Chapter 11 bankruptcy case (Bankr. M.D. Ga. 05-_____), which was subsequently converted to Chapter 7. The IRS filed a proof of claim in that case for $3,660,954.66 in unpaid taxes, penalties, and interest for the tax years 1994 through 2003. In February 2007, the Chapter 7 Trustee filed Adversary Proceeding No. 07-3007 to determine the amount of the IRS's claim and the extent and validity of its secured claim. After over three years of investigation and negotiation, the Trustee and the IRS reached a settlement to resolve the controversy, and the Trustee filed a motion to compromise the controversy in October 2010. Under the compromise, the IRS's original $3,660,954.66 claim was reduced by $1,244,865.00 to $2,416,088.00, of which $454,155.00 was treated as an allowed secured claim and $1,961,933.00 was treated as an allowed unsecured claim. The Debtor's brother, Martin L. Brown, objected to the settlement for two reasons. Despite the Debtor's criminal conviction for tax evasion, the brother continued to maintain that the Debtor owed no taxes for the years 1994 and 1995. The brother also maintained that the IRS levied $10.6 million in insurance payments that were intended for the Debtor, and that any tax liability was paid pursuant to those levies. The brother produced no other evidence to substantiate his contention that the IRS levied funds intended for the Debtor. The bankruptcy court approved the settlement. In his Aug. 9, 2011 Order, Judge Land held that the bankruptcy court did not abuse its discretion in approving the Trustee's motion to compromise. The appellate case is Martin L. Brown, Appellant, v. Ernest V. Harris, Trustee, Appellee, No. 3:11-CV-25 (M.D. Ga.). A copy of the ruling is available at http://is.gd/gAeF1qfrom Leagle.com. BRETAGNE, LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Bretagne, LLC 814 Pebble Drive Greensboro, NC 27410 Bankruptcy Case No.: 11-11218 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court Middle District of North Carolina (Greensboro) Judge: William L. Stocks Debtor's Counsel: Dirk W. Siegmund, Esq. IVEY, MCCLELLAN, GATTON, & TALCOTT, LLP 100 S. Elm Street, Suite 500 P.O. Box 3324 Greensboro, NC 27402-3324 Tel: (336) 274-4658 Fax: (336) 274-4540 E-mail: dws@imgt-law.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/ncmb11-11218.pdf The petition was signed by Michael A. Falk, manager/member. CATALYST PAPER: Files Form 6-K, Incurs C$47.7-Mil. Net Loss in Q2 ----------------------------------------------------------------- Catalyst Paper filed with the U.S. Securities and Exchange Commission a form 6-K reporting a net loss of C$47.70 million on C$297.80 million of sales for the three months ended June 30, 2011, compared with a net loss of C$368.10 million on C$299.40 million of sales for the same period during the prior year. The Company also reported a net loss of C$60.60 million on C$601.40 million of sales for the six months ended June 30, 2011, compared with a net loss of C$412.80 million on C$572.70 million of sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed C$1.59 billion in total assets, C$1.25 billion in total liabilities, and C$340.90 million in total equity. A full-text copy of the Form 6-K is available for free at: http://is.gd/Yjbjkv About Catalyst Paper Catalyst Paper -- http://www.catalystpaper.com/-- manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.9 million tons. The Company is headquartered in Richmond, British Columbia, Canada and its common shares trade on the Toronto Stock Exchange under the symbol CTL. The Company posted a net loss of C$398.2 million on sales of C$1.229 billion during 2010. The Company's net loss in 2009 was C$5.6 million on sales of C$1.224 billion. The Company's balance sheet at March 31, 2011, showed C$1.64 billion in total assets, C$1.25 billion in total liabilities, and C$389.60 million in equity. * * * Catalyst Paper carried Moody's Investors Service's 'Caa1' corporate family rating. Outlook in Negative. The Company also carries Standard & Poor's CCC+ long-term corporate credit rating, Outlook is Stable. CENTRAL FALLS: Bankruptcy Filing Allows Trustee to Rewrite Deals ---------------------------------------------------------------- The Providence Journal reports that the state receiver charged with reorganizing Central Falls' finances reiterated, in a court filing, his claim that last week's bankruptcy filing gave him the power to rewrite the city's union contracts even before the bankruptcy judge rules on the filing. According to the report, during a conference last week in federal bankruptcy court among lawyers for the receiver, Robert G. Flanders Jr., and the city's unions and retirees, questions were raised about whether Flanders was able to invoke the power of bankruptcy before the judge ruled on whether the city's filing was sufficient. The report says the trustee's lawyer filed a brief in court that said, essentially: Yes. He can. The trustee has used that authority to impose changes in the city's pension and health-insurance plans that could reduce some retirees' pensions by as much as 50 percent. He said he further plans to announce changes in the city's current employee contracts, though probably not pay cuts, within the next 30 days. The report says the brief supporting his use of that authority cited federal law and cases under Chapter 9, the federal bankruptcy law that allows municipalities to file for bankruptcy, and Chapter 11, the commercial bankruptcy law on which Chapter 9 was based. The Trustee's lawyer, Theodore Orson, said courts in previous cases had ruled that, by itself, the act of filing for bankruptcy triggers the law's protections and powers. About Central Falls Central Falls is a city in Providence County, Rhode Island. The population was 18,928 at the 2000 census. Central Falls is the smallest and most densely populated city in Rhode Island. Central Falls sought bankruptcy protection under Chapter 9 of the U.S. Bankruptcy Code (Bankr. D. R.I. Case No. 11-13105) on Aug. 1, 2011. The Chapter 9 filing was made after former Rhode Island Supreme Court Judge Robert Flanders, who serves as state-appointed receiver for the city, was unable to negotiate significant concessions from unions representing police officers, firefighters and other city workers. The city grappled with an $80 million unfunded pension and retiree health benefit liability that is nearly quadruple its annual budget of $17 million. Judge Robert Flanders succeeded the role from retired Superior Court Associate Justice Mark A. Pfeiffer, who was appointed in July 2010. Judge Frank Bailey presides over the Chapter 9 case. Theodore Orson, Esq., at Orson and Brusini Ltd., serves as bankruptcy counsel to the receiver. CHRISTIAN BROTHERS: Court Okays Bansley & Keiner as Accountant -------------------------------------------------------------- The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York authorized the Christian Brothers' Institute and its debtor-affiliate to employ Bansley & Keiner as accountant. The firm will review the annual compilation of the Debtors' statement of position as of June 30, 2011, and the related statements of activities and cash flows for the year then ended. The fee for the services to be rendered by the firm is estimated not to exceed $5,000, plus expenses. The Debtors assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The Christian Brothers' Institute and The Christian Brothers of Ireland filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011. Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves as the Debtors' bankruptcy counsel. CBI estimated its assets at $50 million to $100 million and debts at $1 million to $10 million. CBOI estimated its assets at $500,000 to $1 million and debts at $1 million to $10 million. CHRISTIAN BROTHERS: Wants Plan Filing Exclusivity Until Dec. 24 --------------------------------------------------------------- The Christian Brothers' Institute and its debtor-affiliate ask the Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusive periods to: a) file a Chapter 11 plan until Dec. 24, 2011, and b) solicit acceptances of that plan until Feb. 22, 2012. The current deadline for filing a plan expires on Aug. 26, 2011. The Debtors tell the Court that they have recently filed applications and proposed orders to retain accountants who will be reviewing the Debtors' finances and will give the Debtors advice with respect to (i) operations; (ii) the funding that will be required for continued operations; and (iii) evaluating the costs to modify or change their present structure. The Debtors believe that this analysis will take several months and must be completed before embarking on plan/reorganization negotiations. About Christian Brothers' Institute The Christian Brothers' Institute in New Rochelle, New York, is a domestic not-for-profit 501(c)(3) corporation organized under Sec. 102(a)(5) of the New York Not-for-Profit Corporation Law. CBI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout New York State. The Christian Brothers of Ireland, Inc., in Chicago, Illinois, is a domestic not-for-profit 501(c)(3) corporation organized under the Not-for-Profit Corporation Law of the State of Illinois. CBOI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout the State of Illinois, as well as other spiritual and temporal affairs of the former Brother Rice Province of the Congregation of Christian Brothers. CBI and CBOI depend upon grants and donations to fund a portion of their operating expenses. The Christian Brothers' Institute and The Christian Brothers of Ireland filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011. Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves as the Debtors' bankruptcy counsel. CBI estimated its assets at $50 million to $100 million and debts at $1 million to $10 million. CBOI estimated its assets at $500,000 to $1 million and debts at $1 million to $10 million. CLEARWIRE CORP: Files Form 10-Q; Incurs $168.7MM Net Loss in 2Q --------------------------------------------------------------- Clearwire Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss attributable to Clearwire of $168.73 million on $322.61 million of revenue for the three months ended June 30, 2011, compared with a net loss attributable to Clearwire of $125.91 million on $117.03 million of revenue for the same period during the prior year. The Company also reported a net loss attributable to Clearwire of $395.69 million on $559.42 million of revenue for the six months ended June 30, 2011, compared with a net loss attributable to Clearwire of $220.01 million on $217.79 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $9.11 billion in total assets, $5.02 billion in total liabilities, and $4.08 billion in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/BfBnyI About Clearwire Corporation Kirkland, Wash.-based Clearwire Corporation (NASDAQ: CLWR) -- http://www.clearwire.com/-- through its operating subsidiaries, is a leading provider of wireless broadband services. Clearwire's 4G mobile broadband network serves 68 markets, including New York City, Los Angeles, Chicago, Dallas, Philadelphia, Houston, Miami, Washington, D.C., Atlanta and Boston. The Company reported a net loss of $2.30 billion on $556.82 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.25 billion on $274.46 million of revenue during the prior year. * * * As reported by the Troubled Company Reporter on Nov. 11, 2010, Standard & Poor's Ratings Services lowered its corporate credit rating, and all other ratings, on Clearwire Corp. to 'CCC' from 'B-'. At the same time, S&P revised the CreditWatch listing on the company from negative to developing. S&P had initially placed the ratings on CreditWatch with negative implications on Oct. 6, 2010, based on S&P's view that Clearwire faced significant near- term liquidity risks. The downgrade follows the Company's disclosure -- in its Form 10-Q for quarter ended Sept. 30, 2010 -- regarding the uncertainty about its ability to obtain additional capital and continue as a going concern. In Clearwire's 2010 third-quarter earnings report and conference call, the company indicated that it expected to run out cash by mid-2011, which is consistent with S&P's earlier comments. Cash totaled around $1.4 billion as of Sept. 30, 2010. COLONIAL PROPERTIES: Fitch Affirms Issue Default Rating at 'BB+' ---------------------------------------------------------------- Fitch Ratings has affirmed the following credit ratings of Colonial Properties Trust and its operating partnership, Colonial Realty Limited Partnership: Colonial Properties Trust -- Issuer Default Rating (IDR) at 'BB+'. Colonial Realty Limited Partnership -- IDR at 'BB+'; -- Unsecured revolving credit facilities at 'BB+'; -- Senior unsecured notes at 'BB+'; -- Preferred operating partnership units at 'BB-'. The Rating Outlook has been revised to Positive from Stable. The revision of Colonial's Rating Outlook to Positive from Stable reflects healthy fundamentals across Colonial's multifamily portfolio that are expected to continue their positive trajectory over the near term and materially improve the company's leverage and coverage metrics. The Positive Outlook also takes into account CLP's strong liquidity position, manageable debt maturity schedule, and reduced development risk. While Fitch anticipates upward rating momentum over the next 12- to-24 months, the company's leverage and coverage are currently more consistent with a 'BB+' rating. In addition, the company has moderate levels of secured debt and an unencumbered asset coverage of unsecured debt ratio that indicates somewhat limited contingent liquidity. The rating takes into account Colonial's focus on markets with lower barriers to entry. Net debt-to-recurring operating EBITDA (including cash distributions from partially-owned entities) for the 12 months ended June 30, 2011 was 8.8 times (x), down from 9.3x and 9.4x as of Dec. 31, 2010 and Dec. 31, 2009, respectively. Leverage when measured by annualizing second quarter 2011 (2Q'11) EBITDA was 8.2x, and Fitch projects that leverage will fall to below 8.0x over the next 12-to-24 months as fundamentals continue to improve, which would be appropriate for a higher IDR. The repurchase and retirement of unsecured debt, largely with proceeds from the company's at-the-market equity offering program, and increasing same store net operating income have reduced leverage. In a more adverse case than anticipated by Fitch, leverage could rise above 10x over the next 12-to-24 months, which would result in a downgrade to 'BB'. The company is also well capitalized at a 'BB' rating category stress level, with a risk adjusted capitalization of 1.4x as of June 30, 2011, and is also adequately capitalized at a 'BBB' rating category stress level with a risk-adjusted capitalization of 1.1x as of June 30, 2011. In general, multifamily fundamentals in CLP's markets are experiencing a positive inflection point. CLP's same store net operating income (SSNOI) grew 7.5% in 2Q'11, 5.7% in 1Q'11, and 3.5% in 4Q'10, after seven quarters of SSNOI declines. Furthermore, occupancy is strong at 96.2%, compared with 95.9% at Dec. 31, 2010 and 94.7% at Dec. 31, 2009. The company is currently experiencing rent growth on renewals and new leases over 5.0%, which will drive solid growth over the next 12 months. Fitch anticipates that fundamentals will continue to improve from current levels due to moderate job growth, limited new supply, and favorable demographics across the Sunbelt region. Colonial's liquidity position is strong. Sources of liquidity (unrestricted cash, availability under the company's unsecured revolving credit facility and expected retained cash flows from operating activities after dividends and distributions), divided by uses of liquidity (pro rata debt maturities, expected recurring capital expenditures and in-process development expenditure) for July 1, 2011 to Dec. 31, 2012 result in a liquidity coverage ratio of 3.5x. Liquidity coverage for July 1, 2011 to Dec. 31, 2013 is 2.4x. Assuming the line of credit capacity is reduced by 25% upon renewal in 2012, liquidity coverage would be 2.7x through 2012 and 1.9x through 2013, which would still be strong for the current rating category. Furthermore, the company's debt maturity schedule is well laddered with no more than 20% of debt maturing annually for the next five years. Over the past few years, Colonial has curtailed its development pipeline, thus reducing overall risk to bondholders. Construction- in-progress and land held for development represented 8.5% of total assets as of June 30, 2011, compared with 8.3% and 7.5% as of Dec. 31, 2010 and Dec. 31, 2009, respectively, and down from a peak of 16.5% as of Dec. 31, 2007. Moreover, the amount remaining to be spent on active development projects was just $61.1 million, or 1.9% of total assets at June 30, 2011, compared to a high of $573.1 million, or 12.9% of total assets at Dec. 31, 2006. The company's fixed charge coverage ratio (defined as recurring operating EBITDA including Fitch's estimate of recurring cash distributions from partially-owned entities less recurring capital expenditures less straight line rent adjustments, divided by interest expense, capitalized interest and preferred dividends) was 1.6x for the trailing 12 months ended June 30, 2011, an improvement from 1.5x and 1.4x in 2010 and 2009, respectively. Recent positive momentum continues, as fixed charge coverage was 2.0x in 2Q'11. Fitch projects fixed charge coverage will sustain above 2.0x over the next 12-to-24 months, which would be appropriate for a higher IDR. In a more adverse case than anticipated by Fitch, fixed charge coverage could decline to below 1.5x, which is more consistent with a rating of 'BB+'. The company's incurrence of secured debt has rendered bondholders more structurally subordinated. The company accessed the GSE market during the financial crisis of 2008-2010 and as such, secured debt as a percent of total debt has risen to a level of 40.8% as of June 30, 2011, up from just 5.9% at Dec. 31, 2008. That being said, neither the company's secured debt covenant nor other covenants in Colonial's credit agreements limit its financial flexibility. Likewise, the unencumbered pool has decreased in size and provided less contingent liquidity. Applying a 7.5% capitalization rate to 2Q'11 annualized unencumbered NOI, unencumbered assets divided by unsecured debt results in a ratio of 1.8x, which is adequate for the 'BB+' rating. Separately, many of the markets in the Sunbelt region in which Colonial is focused have limited supply constraints and barriers to entry that have led to cycles of overbuilding. As part of its ongoing strategy, Colonial seeks to dispose of additional commercial assets to reduce its overall exposure to 10% of assets from approximately 20%. In addition, the company seeks to sell older multifamily assets and reinvest the proceeds into newer assets with lower recurring capital needs and better growth profiles. The result of both of these portfolio recycling strategies is the sales of assets with higher cash flow yields and the reinvestment into lower yielding assets, which is dilutive in the near term. The two-notch differential between Colonial's IDR and the rating on its $50 million 7.25% series B cumulative redeemable perpetual preferred units is consistent with Fitch's criteria for corporate entities with an IDR of 'BB+'. Based on Fitch's criteria report, 'Rating Hybrid Securities', dated Dec. 29, 2009, these preferred units are deeply subordinated and have loss absorption elements that would likely result in poor recoveries in the event of a corporate default. The following factors may result in an upgrade of the IDR to 'BBB- ': -- If the company's fixed-charge coverage ratio sustains above 2.0x (for the 12 months ended June 30, 2011, fixed-charge coverage was 1.6x); -- If the company's leverage ratio sustains below 8.25x (as of June 30, 2011, the company's leverage, defined as net debt to recurring operating EBITDA, was 8.8x on a LTM basis, but 8.2x based on annualized 2Q'11 EBITDA); -- More geographical diversification across the multifamily portfolio into markets with above-average NOI growth characteristics. The following factors may result in negative momentum on the ratings and/or Rating Outlook: -- If the company's fixed-charge coverage ratio sustains below 1.5x; -- If the company's leverage ratio sustains above 9.0x; -- A sustained liquidity coverage ratio below 1.0x. COLONIAL REALTY: Fitch Affirms 'BB+' Rating on Unsec. Facilities ---------------------------------------------------------------- Fitch Ratings has affirmed the following credit ratings of Colonial Properties Trust and its operating partnership, Colonial Realty Limited Partnership (collectively, Colonial, or the company): Colonial Properties Trust -- Issuer Default Rating (IDR) at 'BB+'. Colonial Realty Limited Partnership -- IDR at 'BB+'; -- Unsecured revolving credit facilities at 'BB+'; -- Senior unsecured notes at 'BB+'; -- Preferred operating partnership units at 'BB-'. The Rating Outlook has been revised to Positive from Stable. The revision of Colonial's Rating Outlook to Positive from Stable reflects healthy fundamentals across Colonial's multifamily portfolio that are expected to continue their positive trajectory over the near term and materially improve the company's leverage and coverage metrics. The Positive Outlook also takes into account CLP's strong liquidity position, manageable debt maturity schedule, and reduced development risk. While Fitch anticipates upward rating momentum over the next 12- to-24 months, the company's leverage and coverage are currently more consistent with a 'BB+' rating. In addition, the company has moderate levels of secured debt and an unencumbered asset coverage of unsecured debt ratio that indicates somewhat limited contingent liquidity. The rating takes into account Colonial's focus on markets with lower barriers to entry. Net debt-to-recurring operating EBITDA (including cash distributions from partially-owned entities) for the 12 months ended June 30, 2011 was 8.8 times (x), down from 9.3x and 9.4x as of Dec. 31, 2010 and Dec. 31, 2009, respectively. Leverage when measured by annualizing second quarter 2011 (2Q'11) EBITDA was 8.2x, and Fitch projects that leverage will fall to below 8.0x over the next 12-to-24 months as fundamentals continue to improve, which would be appropriate for a higher IDR. The repurchase and retirement of unsecured debt, largely with proceeds from the company's at-the-market equity offering program, and increasing same store net operating income have reduced leverage. In a more adverse case than anticipated by Fitch, leverage could rise above 10x over the next 12-to-24 months, which would result in a downgrade to 'BB'. The company is also well capitalized at a 'BB' rating category stress level, with a risk adjusted capitalization of 1.4x as of June 30, 2011, and is also adequately capitalized at a 'BBB' rating category stress level with a risk-adjusted capitalization of 1.1x as of June 30, 2011. In general, multifamily fundamentals in CLP's markets are experiencing a positive inflection point. CLP's same store net operating income (SSNOI) grew 7.5% in 2Q'11, 5.7% in 1Q'11, and 3.5% in 4Q'10, after seven quarters of SSNOI declines. Furthermore, occupancy is strong at 96.2%, compared with 95.9% at Dec. 31, 2010 and 94.7% at Dec. 31, 2009. The company is currently experiencing rent growth on renewals and new leases over 5.0%, which will drive solid growth over the next 12 months. Fitch anticipates that fundamentals will continue to improve from current levels due to moderate job growth, limited new supply, and favorable demographics across the Sunbelt region. Colonial's liquidity position is strong. Sources of liquidity (unrestricted cash, availability under the company's unsecured revolving credit facility and expected retained cash flows from operating activities after dividends and distributions), divided by uses of liquidity (pro rata debt maturities, expected recurring capital expenditures and in-process development expenditure) for July 1, 2011 to Dec. 31, 2012 result in a liquidity coverage ratio of 3.5x. Liquidity coverage for July 1, 2011 to Dec. 31, 2013 is 2.4x. Assuming the line of credit capacity is reduced by 25% upon renewal in 2012, liquidity coverage would be 2.7x through 2012 and 1.9x through 2013, which would still be strong for the current rating category. Furthermore, the company's debt maturity schedule is well laddered with no more than 20% of debt maturing annually for the next five years. Over the past few years, Colonial has curtailed its development pipeline, thus reducing overall risk to bondholders. Construction- in-progress and land held for development represented 8.5% of total assets as of June 30, 2011, compared with 8.3% and 7.5% as of Dec. 31, 2010 and Dec. 31, 2009, respectively, and down from a peak of 16.5% as of Dec. 31, 2007. Moreover, the amount remaining to be spent on active development projects was just $61.1 million, or 1.9% of total assets at June 30, 2011, compared to a high of $573.1 million, or 12.9% of total assets at Dec. 31, 2006. The company's fixed charge coverage ratio (defined as recurring operating EBITDA including Fitch's estimate of recurring cash distributions from partially-owned entities less recurring capital expenditures less straight line rent adjustments, divided by interest expense, capitalized interest and preferred dividends) was 1.6x for the trailing 12 months ended June 30, 2011, an improvement from 1.5x and 1.4x in 2010 and 2009, respectively. Recent positive momentum continues, as fixed charge coverage was 2.0x in 2Q'11. Fitch projects fixed charge coverage will sustain above 2.0x over the next 12-to-24 months, which would be appropriate for a higher IDR. In a more adverse case than anticipated by Fitch, fixed charge coverage could decline to below 1.5x, which is more consistent with a rating of 'BB+'. The company's incurrence of secured debt has rendered bondholders more structurally subordinated. The company accessed the GSE market during the financial crisis of 2008-2010 and as such, secured debt as a percent of total debt has risen to a level of 40.8% as of June 30, 2011, up from just 5.9% at Dec. 31, 2008. That being said, neither the company's secured debt covenant nor other covenants in Colonial's credit agreements limit its financial flexibility. Likewise, the unencumbered pool has decreased in size and provided less contingent liquidity. Applying a 7.5% capitalization rate to 2Q'11 annualized unencumbered NOI, unencumbered assets divided by unsecured debt results in a ratio of 1.8x, which is adequate for the 'BB+' rating. Separately, many of the markets in the Sunbelt region in which Colonial is focused have limited supply constraints and barriers to entry that have led to cycles of overbuilding. As part of its ongoing strategy, Colonial seeks to dispose of additional commercial assets to reduce its overall exposure to 10% of assets from approximately 20%. In addition, the company seeks to sell older multifamily assets and reinvest the proceeds into newer assets with lower recurring capital needs and better growth profiles. The result of both of these portfolio recycling strategies is the sales of assets with higher cash flow yields and the reinvestment into lower yielding assets, which is dilutive in the near term. The two-notch differential between Colonial's IDR and the rating on its $50 million 7.25% series B cumulative redeemable perpetual preferred units is consistent with Fitch's criteria for corporate entities with an IDR of 'BB+'. Based on Fitch's criteria report, 'Rating Hybrid Securities', dated Dec. 29, 2009, these preferred units are deeply subordinated and have loss absorption elements that would likely result in poor recoveries in the event of a corporate default. The following factors may result in an upgrade of the IDR to 'BBB- ': -- If the company's fixed-charge coverage ratio sustains above 2.0x (for the 12 months ended June 30, 2011, fixed-charge coverage was 1.6x); -- If the company's leverage ratio sustains below 8.25x (as of June 30, 2011, the company's leverage, defined as net debt to recurring operating EBITDA, was 8.8x on a LTM basis, but 8.2x based on annualized 2Q'11 EBITDA); -- More geographical diversification across the multifamily portfolio into markets with above-average NOI growth characteristics. The following factors may result in negative momentum on the ratings and/or Rating Outlook: -- If the company's fixed-charge coverage ratio sustains below 1.5x; -- If the company's leverage ratio sustains above 9.0x; -- A sustained liquidity coverage ratio below 1.0x. COMPOSITE TECHNOLOGY: Adds Two Members to Creditors Committee ------------------------------------------------------------- Frank Cardigan, United States Trustee for Region 16, under 11 U.S.C. Sec. 1102(a) and (b), added two members to serve on the Official Committee of Unsecured Creditors of Composite Technology Corporation. The amended list of members adds Compass Power Solutions and One LLP to the Committee. The Creditors Committee members are now: 1. Jones Day ATTN: Richard Wynne 555 South Flower St., 50th Floor Los Angeles, CA 90071 Tel: (213) 243-2548 Fax: (213) 243-2539 2. Burndy, LLC ATTN: Kevin P. Ryan 47 E. Industrial park Dr. Manchester, NH 03109 Tel: (603) 647-5165 Fax: (800) 246-9826 3. CNH, LLC ATTN: Alfonso Cordero PO Box 14062 Irvine, CA 92623 Tel: (949) 553-0006 Fax: (949) 553-0021 4. Lamifil N.V. Frederic Sheidlaan ATTN: Didier Leclercq B-2620 Herniskem, Belgium Tel: (32) 474-949438 Fax: (32) 038-878059 5. Toray Carbon Fibers America, Inc. ATTN: Greg Clemons PO Box 248 Decatur, AL 35602 Tel: (256) 260-1004 Fax: (256) 260-2627 6. Compass Power Solutions ATTN: David Borrie 26 Spenser Crescent Carnoustie, Angus, Scotland Tel: (44) 1241-854-093 Fax: (44) 1241-854-093 7. One LLP Intellectual Property & Entertainment Law ATTN: Nathan L. Dilger 4000 MacArthur Blvd. West Tower, #1100 Tel: (949) 502-2870 Fax: (949) 258-5081 About Composite Technology Headquartered in Irvine, California, Composite Technology Corporation -- http://www.compositetechcorp.com-- develops, produces, and markets energy efficient and renewable energy products for the electrical utility industry. During the fiscal year ended Sept. 30, 2010, the Company operated with one operating segment, the cable segment operated as CTC Cable Corporation. The CTC Cable segment sells ACCC conductor, a composite core, high capacity, energy efficient overhead conductor for transmission and distribution lines, and manufactures and sells ACCC core, the composite core component of the conductor, along with hardware connector accessories specifically designed for ACCC applications. It sells ACCC products directly to customers and through various distribution agreements both internationally and in North America. As of Sept. 30, 2010, CTC Cable had over 9,500 kilometers of ACCC conductor installed. Composite Technology filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-15058) on April 10, 2011, with Judge Mark S. Wallace presiding over the case. The Debtor's bankruptcy case was reassigned to Judge Scott C. Clarkson on April 13, 2011. The Debtor estimated assets at $10 million to $50 million and $1 million to $10 million in debts as of the Chapter 11 filing. CTC Cable Corporation (Bankr. C.D. Calif. Case No. 11-15059) and Stribog, Inc. (Bankr. C.D. Calif. Case No. 11-15065) also filed for Chapter 11 protection. The cases are jointly administered, with Composite Technology as the lead case. Paul J. Couchot, Esq., at Winthrop Couchot PC, serves as the Debtors' bankruptcy counsel. The McIntosh Group and Marsch Fischman & Breyfogle LLP serve as special intellectual property counsel. Robbin L. Itkin, Esq., and Katherine C. Piper, Esq., at Steptoe & Johnson LLP, serve as counsel to the Official Committee of Unsecured Creditors. CORNERSTONE BANCSHARES: Reports $141,287 Net Income in Q2 --------------------------------------------------------- Cornerstone Bancshares, Inc., reported net income of $141,287 on $5.16 million of total interest income for the three months ended June 30, 2011, compared with net income of $18,145 on $6.73 million of total interest income for the same period during the prior year. The Company also reported net income of $393,562 on $10.37 million of total interest income for the six months ended June 30, 2011, compared with net income of $361,933 on $13.83 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $441.21 million in total assets, $412.35 million in total liabilities, and $28.86 million in total stockholders' equity. "The success of our capital campaign is proof that Chattanooga believes in Cornerstone," said Cornerstone President Frank Hughes. "Today's investment environment is difficult, which makes the capital raise that much more exciting and a true testament to the faith our community has in Cornerstone." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/t9lugH About Cornerstone Bancshares Chattanooga, Tenn.-based Cornerstone Bancshares, Inc. is a bank holding company. Its wholly-owned subsidiary, Cornerstone Community Bank, is a Tennessee-chartered commercial bank with five full-service banking offices located in Hamilton County, Tennessee. The Company reported a net loss of $4.71 million on $25.21 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $8.17 million on $26.31 million of total interest income during the prior year. Consent Order The Company disclosed in 10-Q for the quarter ended June 30, 2010, that following the issuance of a written report by the Federal Deposit Insurance Corporation and the Tennessee Department of Financial Institutions concerning their joint examination of Cornerstone Community Bank in October 2009, the Bank entered a consent order with the FDIC on April 2, 2010, and a written agreement with the TDFI on April 8, 2010, each concerning areas of the Bank's operations identified in the report as warranting improvement and presenting substantially similar plans for making those improvements. The consent order and written agreement, which the Company collectively refers to as the "Action Plans", convey specific actions needed to address certain findings from the joint examination and to address the Company's current financial condition. The Action Plans contain a list of strict requirements ranging from a capital directive, which requires the Company to achieve and maintain minimum regulatory capital levels in excess of the statutory minimums to be well-capitalized, to developing a liquidity risk management and contingency funding plan, in connection with which the Company will be subject to limitations on the maximum interest rates it can pay on deposit accounts. The Action Plans also contain restrictions on future extensions of credit and requires the development of various programs and procedures to improve the Company's asset quality as well as routine reporting on its progress toward compliance with the Action Plans to the Board of Directors, the FDIC and the TDFI. As of April 2, 2010, the date of the Action Plans, the Bank was deemed to be "adequately capitalized." CORPORATE INVESTMENT: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Corporate Investment Company P.O. Box 970926 Orem, UT 84097 Bankruptcy Case No.: 11-31601 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court District of Utah (Salt Lake City) Judge: William T. Thurman Debtor's Counsel: Robert Fugal, Esq. BIRD & FUGAL 384 East 720 South, Suite 201 Orem, UT 84058 Tel: (801) 426-4700 E-mail: robfugal@birdfugal.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Keith Merrill Beckstead, owner. CUMULUS MEDIA: Completes Purchase of Remaining Interests in CMP --------------------------------------------------------------- Cumulus Media Inc. has completed the previously announced acquisition of the remaining equity interests of Cumulus Media Partners, LLC, that it did not already own. CMP owns 32 radio stations in nine markets, including San Francisco, Dallas, Houston, Atlanta, Cincinnati, Indianapolis and Kansas City. Cumulus has operated CMP's business pursuant to a management agreement since CMP acquired the radio broadcasting business of Susquehanna Pfaltzgraff Co. In connection with the acquisition, Cumulus issued 9,945,714 shares of its common stock to affiliates of the three private equity firms that had collectively owned 75% of CMP - Bain Capital Partners, LLC, The Blackstone Group L.P. and Thomas H. Lee Partners, L.P. Blackstone received shares of Cumulus' Class A common stock and, in accordance with Federal Communications Commission broadcast ownership rules, Bain and THL each received shares of a new authorized Class D non-voting common stock. Cumulus has owned the remaining 25% of CMP's equity interests since Cumulus, together with Bain, Blackstone and THL, formed CMP in 2005. Also in connection with the acquisition, currently outstanding warrants to purchase common stock of a subsidiary of CMP were amended to instead become exercisable for up to 8,267,968 shares of common stock of Cumulus. The acquisition of CMP was completed on Aug. 1, 2011, following receipt of approval by Cumulus' stockholders at its annual meeting of stockholders on Friday, July 29, 2011. Cumulus' Chairman and CEO, Lew Dickey, commented: "We are pleased to have completed this important step with our acquisition of CMP. The combination of Cumulus and CMP is a strategic transaction that simplifies our operational structure and positions us to complete our pending transformational deal with Citadel Broadcasting. Following the completion of the Citadel acquisition, we plan to capitalize on the scale of the resulting pro forma platform of approximately 570 stations in 120 markets, and a radio network serving approximately 4000 station affiliates, to compete aggressively with our content and distribution capabilities in broadcast and new media. We are also excited about the opportunity to offer investors what we expect will be the largest pure play radio company, with a large and liquid market capitalization as well as a strong and flexible balance sheet that is well-positioned for continued growth." Cumulus currently expects that, subject to receiving final regulatory approvals and approval by the stockholders of Citadel Broadcasting Corporation, the Citadel acquisition will be completed prior to the end of 2011. In connection with completing the acquisition of Cumulus Media Partners, Cumulus Media Inc. entered into a Registration Rights Agreement, dated Aug. 1, 2011, with each of the CMP Sellers, each of Banc of America Capital Investors SBIC, L.P., and BA Capital Company, L.P., and each of Lewis W. Dickey, Jr., the Company's Chairman, President and Chief Executive Officer, John W. Dickey, the Company's Executive Vice President and Co-Chief Operating Officer, their brothers David W. Dickey and Michael W. Dickey, their father, Lewis W. Dickey, Sr., and an affiliated entity, DBBC, LLC. Pursuant to the 2011 Registration Agreement, the Company has agreed to prepare and file with the Securities and Exchange Commission a registration statement that will cover the resale, on a continuous basis, of all of the shares of the Company's Class A common stock issued to the CMP Sellers in connection with the CMP Acquisition or upon conversion of shares of the Company's Class D common stock issued in the CMP Acquisition or upon exercise of the Restated Warrants. A full- text copy of the Registration Rights Agreement is available for free at http://is.gd/czJnuK Annual Meeting Results On July 29, 2011, at the Company's 2011 annual meeting of stockholders, the Company's stockholders, upon the recommendation of the Company's Board of Directors, adopted an Amended and Restated Certificate of Incorporation to, among other things, increase the total number of shares of authorized capital stock from 270,262,000 to 300,000,000, create a new class of non-voting common stock designated as Class D common stock, and eliminate certain governance and approval rights that were previously applicable to the Company's existing non-voting Class B common stock. Also at the Annual Meeting, each of Lewis W. Dickey, Jr., Ralph B. Everett, Eric P. Robison and David M. Tolley were reelected for a one-year term as directors of the Company by the holders of the Company's Class A Common Stock and Class C Common Stock, voting together as a single class. Pursuant to a voting agreement entered into in 1998 with the holders of the Company's Class C Common Stock, Robert H. Sheridan III was designated to serve as a director by one of the Company's principal stockholders, BA Capital Company, L.P. The stockholders also ratified the appointment of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for 2011. A full-text copy of the Form 8-K is available for free at: http://is.gd/2KAVKl About Cumulus Media Based in Atlanta, Georgia, Cumulus Media Inc. (NASDAQ: CMLS) -- http://www.cumulus.com/-- is the second largest radio broadcaster in the United States based on station count, controlling 350 radio stations in 68 U.S. media markets. In combination with its affiliate, Cumulus Media Partners, LLC, the Company believes it is the fourth largest radio broadcast company in the United States when based on net revenues. The Company's balance sheet at March 31, 2011, showed $318.87 million in total assets, $643.27 million in total liabilities, and a $324.40 million total stockholders' deficit. * * * Standard & Poor's Ratings Services said April it raised its corporate credit rating on Atlanta-based Cumulus Media Inc. to 'B' from 'B-'. "The rating remains on CreditWatch, where we placed it with positive implications Feb. 18, 2011," S&P stated. Moody's Investors Service in April upgraded Cumulus Media's Corporate Family Rating to B1 from Caa1 due to the company's pending acquisition of CMP Susquehanna Corp. in the second quarter of 2011 followed by the announced $2.4 billion acquisition of Citadel Broadcasting Corporation later this year. CRYSTAL CATHEDRAL: Committee Files Sale-Based Exit Plan ------------------------------------------------------- The Crystal Cathedral's Official Committee of Unsecured Creditors filed a proposed bankruptcy exit plan for the church and an explanatory disclosure statement. The cathedral board can choose the buyer in one option and in another, the creditors will choose a buyer for the church. A hearing is set for Sept. 14, 2011, at 11:30 a.m., to consider the adequacy of the disclosure statement explaining the Committee's exit plan. The Plan contemplates the sale of the Debtor's real and personal property assets. Multiple parties have submitted written offers to purchase the Crystal Cathedral Campus. The Committee will select the proposed buyer, advising the Court 15 days before the confirmation hearing. The Committee said it does not intent to effectuate a sale of the campus by way of 11 U.S.C. Sec. 363 sale subject to overbidding. In addition, the Debtor has filed a request to approve the sale of a condominium. If the sale has not be consummated as of the confirmation hearing, the plan agent will proceed to liquidate the condominium, as well as the personal property assets. Offers Hiked Los Angeles Times reports that the Roman Catholic Diocese of Orange increased its cash offer from $50 million to $53.6 million and would require the Crystal Cathedral's ministry to leave the property after three years. But the diocese would attempt to help it find a new space. Los Angeles Times says Chapman University amended its original offer of $46 million to $50 million. In a letter dated Aug. 4, 2011, the school offered the ministry two individuals related to Chapman with "extensive experience in business, financial and operational strategy." The report, citing court documents, says there is a new potential buyer for the property but did not specify which party. The Crystal Cathedral announced 10 days ago that it no longer wanted to solicit offers for the property and instead began a faith-based effort, relying solely on donations. The Committee is allowing the cathedral to choose a buyer, as long as the purchase price is at least $50 million. If the church does not cooperate with the committee, a buyer could be chosen without leasing and buyback options, and the ministry could have to find a new home sooner than expected. The disclosure statement mentioned two other proposals, one from the arts and crafts retailer Hobby Lobby, and the other from Norco-based My Father's House Church International, which the committee singled out as an "inferior" offer. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CRYSTAL_DS_COMMITTEE.pdf About Crystal Cathedral Crystal Cathedral Ministries is a Southern California-based megachurch founded by television evangelist Robert Schuller. The church, known for its television show "The Hour of Power." Mr. Schuller retired from his role as senior pastor of Crystal Cathedral in 2006. His daughter Sheila Schuller Coleman has been senior pastor since July 2009. Contributions declined 24 percent in 2009, in part on account of "unsettled leadership." Crystal Cathedral filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. 10-24771) on Oct. 18, 2010. The Debtor disclosed $72,872,165 in assets and $48,460,826 in liabilities as of the Chapter 11 filing. Marc J. Winthrop, Esq., at Winthrop Couchot P.C. represent the Debtor. Todd C. Ringstad, Esq., at Ringstad & Sanders, LLP, represents the Official Committee of Unsecured Creditors. DAL-JONES INVESTMENTS: Case Summary & Creditors List ---------------------------------------------------- Debtor: Dal-Jones Investments, LLC P.O. Box 531 Wrightsville Beach, NC 28480 Bankruptcy Case No.: 11-05971 Chapter 11 Petition Date: August 4, 2011 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Dean R. Davis, Esq. LAW OFFICE OF DEAN R. DAVIS 1508 Military Cutoff Road, Suite 102 Wilmington, NC 28403 Tel: (910) 256-6558 Fax: (910) 256-6538 E-mail: juliec@amdpllc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nceb11-05971.pdf The petition was signed by R. Edward Mitchel, member-manager. DANIEL L. HENDON: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: The Daniel L. Hendon Family Trust 15509 North Scottsdale Road Scottsdale, AZ 85254 Bankruptcy Case No.: 11-22658 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Mark J. Giunta, Esq. LAW OFFICE OF MARK J. GIUNTA 1413 N 3rd St. Phoenix, AZ 85004-1612 Tel: (602) 307-0837 Fax: (602) 307-0838 E-mail: mark.giunta@azbar.org Scheduled Assets: $10 Scheduled Debts: $2,483,411 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb11-22658.pdf The petition was signed by Daniel L. Hendon, trustee. Affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Danny's Happy Valley, LLC 10-02794 02/04/10 Danny's Raintree & Northsight, LLC 10-02796 02/04/10 Danny's Scottsdale & Shea, LLC 10-02799 02/04/10 Danny's 59th Avenue, LLC 10-02802 02/04/10 Danny's Crossroads, LLC 10-05580 03/03/10 Danny's Gilbert Gateway, LLC 10-05583 03/03/10 Danny's San Tan, LLC 10-05585 03/03/10 Danny's Tempe, LLC 10-05588 03/03/10 Danny's Family Companies, LLC 10-05792 03/04/10 Danny's Car Services, LLC 10-05793 03/04/10 Danny's Scottsdale & TB, LLC 10-05794 03/04/10 National Car Care Development Co. 10-05795 03/04/10 84th & Bell, LLC 10-05796 03/04/10 3rd & Bell, LLC 10-05797 03/04/10 Danny's Tatum, LLC 10-05798 03/04/10 83rd & Union Hills, LLC 10-05799 03/04/10 Mayo & Scottsdale Family Car Wash 10-05800 03/04/10 Danny's Glass, LLC 10-05801 03/04/10 Danny's Fuel, LLC 10-05802 03/04/10 Paradise Village Car Care Centre Inc. 10-05805 03/04/10 Twentieth & Highland, LLC 10-05806 03/04/10 Danny's Commercial Properties, LLC 10-05772 03/04/10 Barcelona Restaurants III, LLC 10-05774 03/04/10 Barcelona Business Center, LLC 10-05775 03/04/10 Danny's Office, LLC 10-05776 03/04/10 Daniel L. Hendon 11-21164 07/25/11 DELTA AIR: Awaiting IRS's Guidance on Tax Refunds ------------------------------------------------- Delta Air Lines (NYSE: DAL) announced early this month it will process tax refunds for customers traveling during the suspension of non-essential services of the Federal Aviation Administration. Funding for the FAA expired on July 23. At that time, Delta stopped collecting several taxes imposed on ticket sales, including a 7.5 percent tax on the base ticket price, a $3.70 segment tax and facilities taxes on international travel and travel to and from Alaska and Hawaii. The Internal Revenue Service (IRS) has advised that travelers who paid for tickets on or before July 22, 2011, for travel beginning on or after July 23 and prior to the reinstatement of FAA funding, may be entitled to a refund of those taxes. Delta is awaiting guidelines from the IRS on the process of providing refunds. However, in order to streamline the process, the airline will process refunds directly for customers once an agreement is reached with the IRS on the procedure for doing so. Information on how to apply for a refund will be posted to delta.com. IRS Issues Guidance On August 5, 2011, the IRS advised that, "As a result of the bill Congress passed today, passengers who purchased tickets prior to July 23 and traveled between July 23 and the date of enactment of today's legislation are not entitled to a refund of the airline ticket excise tax." 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: Welcomes US Air Flying Rights Transfer Approval ---------------------------------------------------------- Delta Air Lines and US Airways said last month they welcome the decision by the Department of Transportation to tentatively approve the proposed slot transaction at New York-LaGuardia and Washington-Reagan National airports. Upon final approval we intend to move forward with the plan, as conditioned by the department, which will enhance competition and allow the airlines to improve service, consumer choice, modernize facilities and create jobs at both airports." On May 23, Delta and US Airways announced a new agreement to transfer takeoff and landing rights at New York's LaGuardia and Washington D.C.'s Reagan National airports, which will enable Delta and US Airways to expand service and increase competition at two of the nation's key cities, and provide the opportunity for additional access to LaGuardia and Reagan National for new entrants and airlines with a limited presence at the airports. Under the agreement, Delta would acquire 132 slot pairs at LaGuardia from US Airways and US Airways would acquire from Delta 42 slot pairs at Reagan National and the rights to operate additional daily service to Sao Paulo, Brazil in 2015, and Delta would pay US Airways $66.5 million in cash. In addition, the airlines will divest 16 slot pairs at LaGuardia and eight slot pairs at Reagan National to airlines with limited or no service at those airports. The completion of the transaction is subject to certain closing conditions, including government and regulatory approvals. A slot pair is the authority to operate one takeoff and one landing. About US Airways US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,200 flights per day and serves more than 200 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs 32,000 aviation professionals worldwide and is a member of the Star Alliance network, which offers its customers 21,000 daily flights to 1,160 airports in 181 countries. Together with its US Airways Express partners, the airline serves approximately 80 million passengers each year and operates hubs in Charlotte, N.C., Philadelphia and Phoenix, and a focus city in Washington, D.C., at Ronald Reagan Washington National Airport. US Airways was the only airline included as one of the 50 best companies to work for in the U.S. by LATINA Style magazine's 50 Report for 2010. For the sixth year in a row, the airline also earned a 100 percent rating on the Human Rights Campaign Corporate Equality index, a leading indicator of companies' attitudes and policies toward lesbian, gay, bisexual and transgender employees and customers. For more company information, visit usairways.com. (LCCG) 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: Former Atlanta Mayor Named to Board ---------------------------------------------- Delta Air Lines' board of directors announced Shirley Franklin, former Mayor of Atlanta, as its newest member, effective immediately. "Throughout her distinguished career, Shirley has demonstrated great leadership and tremendous knowledge of the region and the nation's economy," said Daniel A. Carp, Delta's non-executive chairman of the board. "We look forward to adding her business experience, financial expertise and leadership abilities to the depth and range of Delta's already strong and independent board of directors." Ms. Franklin served as Mayor of Atlanta for two terms, from 2002 to 2010. In 2005, TIME Magazine named Ms. Franklin one of the five best big-city mayors in America, and U.S. News & World Report listed her among its "Best Leaders 2005." Ms. Franklin received the 2005 Profile in Courage award from the John F. Kennedy Library Foundation for her leadership in restoring fiscal stability and ethical government to Atlanta. Prior to being elected Mayor of Atlanta, Ms. Franklin served the city in several executive positions, culminating in her service as the City's Chief Officer of Operations. Ms. Franklin is chair of the board and chief executive officer of Purpose Built Communities, Inc., a national non-profit organization established to transform struggling neighborhoods into sustainable communities. She is a director of Mueller Water Products, Inc. and the United Nations Institute for Training and Research as well as co-chair of the Atlanta Regional Commission on Homelessness and co-chair of the board of directors of the National Center for Civil and Human Rights. Ms. Franklin served on a special task force for the Department of Homeland Security, and held the William and Camille Cosby Endowed Chair at Spelman College in Atlanta. Ms. Franklin holds a bachelor's degree in sociology from Howard University and master's degree in sociology from the University of Pennsylvania. 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. E-DEBIT GLOBAL: Commences Review of Mobile Payments Marketplace --------------------------------------------------------------- E-Debit Global Corporation commenced its review of the mobile payments marketplace with Capital Six Limited its joint venture with ebackup Inc. Overview "We are commencing our review of our opportunities related to the mobile payments marketplace, particularly in the Canadian business space," E-Debit Chief Executive Doug Mac Donald said in a joint statement with ebackup Inc. President Rowland Perkins. "We believe experience gained through the Canadian introduction and roll out of EMV (the payment and security standard for interoperation used for authenticating credit and debit card payments at chip enabled terminals developed for payment systems by Europay, MasterCard and Visa and introduced by the Interac Network) combined with MapleTel's international Telco infrastructure and software expertise holds great opportunity for virtual terminal development which allows transactions processing using any mobile phone, tablet or any type of device with an Internet connection," they added. "I am looking forward to working with E-Debit and ebackup in bringing a mobile payments solution to the Canadian marketplace which today is virtually nonexistent due to dealing with the complex nature of EMV and PIN verification," stated John Kok, President of MapleTel. "Combining E-Debits "processing Switch", ebackup's "Cloud" based PCI compliant data centre, technical and back up support and our Telco and software experience, the potential for success within the Canadian e-commerce business segment is very significant," Mr. Kok stated. About E-Debit Global Corporation E-Debit Global Corporation (WSHE) is a financial holding company in Canada at the forefront of debit, credit and online computer banking. Currently, the Company has established a strong presence in the privately owned Canadian banking sector including Automated Banking Machines (ABM), Point of Sale Machines (POS), Online Computer Banking (OCB) and E-Commerce Transaction security and payment. E-Debit maintains and services a national ABM network across Canada and is a full participating member of the Canadian INTERAC Banking System. The Company reported a net loss of $1.15 million on $3.97 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.28 million on $3.64 million of revenue during the prior year. Going Concern The Company has incurred net losses for the three months ended March 31, 2011, and 2010, and as of March 31, 2011, had a working capital deficit of $1,429,007 and an accumulated deficit of $400,956. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. As reported by the TCR on April 15, 2011, Cordovano and Honeck LLP, in Englewood, Colorado, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses, has a working capital deficit at Dec. 31, 2010, and has an accumulated deficit of $4,457,079 as of Dec. 31, 2010. The Company's balance sheet at March 31, 2011, showed $1.67 million in total assets, $2.07 million in total liabilities and a $400,956 total stockholders' deficit. EAGLE BULK: Posts $1.4 Million Net Loss in 2nd Quarter ------------------------------------------------------ Eagle Bulk Shipping Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $1.4 million on $76.4 million of revenues for the three months ended June 30, 2011, compared with net income of $11.0 million on $65.6 million of revenues for the same period last year. The Company reported a net loss of $7.2 million on $163.1 million of revenues for the six months ended June 30, 2011, compared with net income of $15.6 million on $119.9 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $1.897 billion in total assets, $1.226 billion in total liabilities, and stockholders' equity of $671.0 million. Disagreement with Lender on Interpretation of Facility Agreement's Net Worth Covenant On Aug. 4, 2009, the Company entered into a third Amendatory Agreement to its revolving credit facility dated Oct. 19, 2007. Among other things, the third amendatory agreement reduced the facility to $1.2 billion and changed the applicable interest rate to 2.5% over LIBOR. In addition, among other changes, the third amendatory agreement amended the facility's net worth covenant from a market value to book value measurement with respect to the value of the Company's fleet and reduced the facility's EBITDA to interest coverage ratio, with these changes to stay in effect until the Company is in compliance with the facility's original covenants for two consecutive accounting periods. Based on information which the Company provided in 2010 to the lenders under the revolving credit facility, the agent for the lenders notified the Company that according to its interpretation the Company was in compliance with the original covenants for the second and third quarters during 2010, and, therefore, the Company's original collateral covenants have been reinstated. The Company disagrees with the interpretation of the original covenant calculation being used by the agent and has advised the agent that it is not in compliance with the original covenants for these two consecutive quarters, and, therefore, the amended collateral covenants should remain in place. The Company believes that its interpretation of the facility agreement's covenant calculation is correct, that the reinstatement of the original loan covenant was not valid, and that it remains in compliance with all covenants in effect at June 30, 2011. "We are in active discussions with the agent to resolve this technical matter," the Company said in the filing. "However, if the agent's interpretation is determined to be correct, we would not be in compliance with the original covenants for the periods ending March 31, 2011, and June 30, 2011, which could lead to a default under the facility agreement effective as of the Compliance Certificate Date for that period and would result in the classification as current of amounts due under the facility agreement and could lead to substantial doubt about our ability to continue as a going concern, if we are unable to agree on satisfactory terms or obtain a waiver from the agent." A copy of the Form 10-Q is available at http://is.gd/1lzMHS Eagle Bulk Shipping Inc. is a Republic of the Marshall Islands corporation headquartered in New York City. It owns one of the largest fleets of Supramax dry bulk vessels in the world. The Company transports a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. As of June 30, 2011, it owned and operated a modern fleet of 41 Handymax segment dry bulk vessels, 39 of which are of the Supramax class. It also has an on-going Supramax newbuilding program for the construction of 5 newbuilding vessels in China. Upon delivery of all newbuilding vessels which the Company expects to be completed by the end of 2011, the Company's total fleet will consist of 46 vessels with a combined carrying capacity of approximately 2.51 million dwt. EMERALD COAST: Case Summary & 3 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Emerald Coast Car Wash, LLC dba Quick and Clean of Northwest Florida 22431 Panama City Beach Parkway Panama City Beach, FL 32413 Bankruptcy Case No.: 11-50421 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Northern District of Florida (Panama City) Debtor's Counsel: Michael R. Reiter, Esq. MIKE REITER & ASSOCIATES P.O. Box 330 Lynn Haven, FL 32444 Tel: (850) 277-0777 Fax: (850) 277-0177 E-mail: mikelaw32444@yahoo.com Scheduled Assets: $1,700,500 Scheduled Debts: $2,200,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flnb11-50421.pdf The petition was signed by Lee Sage, president. EVERGREEN PLAZA: Awaits Order to Use Cash Collateral for 3rd Qtr ---------------------------------------------------------------- The Bankruptcy Court was scheduled to consider the request of Evergreen Plaza Investment-DE LLC to use cash collateral for the months of July, August and September 2011, at a hearing set for July 26. Results of that hearing have not been posted on the case docket as of press time. The docket, however, showed an order signed by Judge Geraldine Mund dated Aug. 9. The order spelled out the Debtor's use of cash collateral through July 28. According to the Aug. 9 order, a hearing took place July 15 to consider the Debtor's Emergency Motion for Use of Cash Collateral. M., Jonathan Hayes attended on behalf of the Debtors and Bryce Suzuki, Bryan Cave LLP, attended on behalf of secured creditor CSFB 2005-C1 Paseo Retail Limited Partnership. At the July 15 hearing, the parties advised the court that they had agreed to use of cash collateral for the first 15 days of the case, as requested in the Debtors' Motion, and had agreed also on the use of cash collateral by the Debtor for the second 15 days ending July 28, 2011. The Aug. 9 order directs the Debtor to deposit postpetition revenues collected from the operations of its property in its debtor in possession account. Any secured creditor's liens and security interests in funds constituting cash collateral will continue notwithstanding the deposit of the funds in an approved account. The Aug. 9 order grants CSFB replacement liens on and security interests in the Debtor's assets. The order, however, clarifies that nothing so far constitutes (i) a finding that CSFB's interests in the Debtor's case are adequately protected; or (ii) a determination of the validity, priority, or extent of any lien or security interest claimed by the Lender against the property or assets of the Debtor or the Debtor's estate. According to papers filed by CSFB, Evergreen Plaza owed the Lender in excess of $21 million. CSFB said it holds a Promissory Note made by, among others, Evergreen Plaza, in the principal amount of $19 million dated as of Nov. 5, 2004, and secured by the Debtor's assets. The Debtor is in default under the loan. Early in the case, the Lender demanded sequestration of any rents, issues, profits, proceeds and any other income derived from the Collateral. In its Motion, Evergreen Plaza said it must be authorized to use Cash Collateral to pay ordinary and necessary operating expenses of its real property in order to continue the operation of the property, and avoid irreparable harm to the business. Expenses include utilities, insurance, landscaping, and management fees. The Debtor proposed to pay CSFB an adequate protection payment each month of $70,000 beginning on entry of a Cash Collateral Order and continuing on the 5th day of each month thereafter. According to the Debtor, the adequate protection amount is computed based on $14 million at 6% annual interest. The payment will allow the Debtor to retain sufficient funds each month to be able to pay the property tax payment of roughly $77,000 in December 2011. In its objection, CSFB said the Debtors have not carried their burden of proving that the Lender is adequately protected. The Debtors contend that Lender is adequately protected (i) through the continuation of the Debtors' businesses, which is not a form of adequate protection traditionally recognized under Bankruptcy Code Sec. 361; (ii) and a periodic payment based on an arbitrary non-default interest rate. Attorneys for CSFB 2005-C1 Paseo Retail Limited Partnership are: H. Mark Mersel, Esq. Sheri Kanesaka, CBN 240053 BRYAN CAVE LLP 3161 Michelson Drive, Suite 1500 Irvine, CA 92612 Tel: (949) 223-7000 Fax: (949) 223-7100 E-mail: mark.mersel@bryancave.com sheri.kanesaka@bryancave.com About Evergreen Plaza Investment-DE et al. Evergreen Plaza Investment-DE, LLC; 15352 Vanowen Street Apartments-DE, LLC; Normandie Court III-DE, LLC; Westlake Evergreen-DE, LLC, jointly own, as Tenants-in-Common, 100% of real property located at 3637-3755 E. Thousand Oaks Blvd., Thousand Oaks, California. The percentage of ownership is: Evergreen (54.31%), Normandie (10.74%), Westlake (25%), and Vanowen (9.95%). The four entities jointly operate the Real Property pursuant to a Tenancy in Common Agreement executed between them on Oct. 28, 2004. The Real Property is a commercial complex of about 38 units with 21 units rented at this time. The real property is managed by Kaufman Properties, owned by Mark Kaufman, and JDS Real Estate, Inc. owned by Jason Schwetz. The leasing broker is JDS Real Estate, Inc. who is presently showing the spaces. The four entities filed for Chapter 11 bankruptcy on June 28, 2011, to stop a foreclosure sale by secured creditor LNR Partners. Evergreen Plaza Investment-DE (Bankr. C.D. Calif. Case No. 11- 17858); Westlake Evergreen-DE, LLC (Bankr. C.D. Calif. Case No. 11-17874); 15352 Vanowen Street Apartments-DE (Bankr. C.D. Calif. Case No. 11-17870); and Normandie Court III-DE (Bankr. C.D. Calif. Case No. 11-17872), estimated $10 million to $50 million in both assets and debts in their petitions. The law offices of M. Jonathan Hayes serve as the Debtors' counsel. The Court for the Central District of California has transferred the Chapter 11 case to the calendar of Bankruptcy Judge Geraldine Mund. The Debtors value the real property at roughly $13 million. Total secured debt exceeds $17 million. Each debtor-entity said its case is a single asset case. EVERGREEN PLAZA: Has Go-Signal to Hire Bankruptcy Counsel --------------------------------------------------------- Evergreen Plaza Investment-DE, LLC; 15352 Vanowen Street Apartments-DE, LLC; Normandie Court III-DE, LLC; and Westlake Evergreen-DE, LLC, obtained authority to employ as General Bankruptcy Counsel: M. Jonathan Hayes, Esq. Roksana D. Moradi, Esq. LAW OFFICES OF M. JONATHAN HAYES 9700 Reseda Blvd., Suite 201 Northridge, CA 91324 Tel: (818) 882-5600 Fax: (818) 882-5610 E-mail: jhayes@hayesbklaw.com roksana@hayesbklaw.com Evergreen Plaza Investment-DE, LLC; 15352 Vanowen Street Apartments-DE, LLC; Normandie Court III-DE, LLC; Westlake Evergreen-DE, LLC, jointly own, as Tenants-in-Common, 100% of real property located at 3637-3755 E. Thousand Oaks Blvd., Thousand Oaks, California. The percentage of ownership is: Evergreen (54.31%), Normandie (10.74%), Westlake (25%), and Vanowen (9.95%). The four entities jointly operate the Real Property pursuant to a Tenancy in Common Agreement executed between them on Oct. 28, 2004. The Real Property is a commercial complex of about 38 units with 21 units rented at this time. The real property is managed by Kaufman Properties, owned by Mark Kaufman, and JDS Real Estate, Inc. owned by Jason Schwetz. The leasing broker is JDS Real Estate, Inc. who is presently showing the spaces. The four entities filed for Chapter 11 bankruptcy on June 28, 2011, to stop a foreclosure sale by secured creditor LNR Partners. Evergreen Plaza Investment-DE (Bankr. C.D. Calif. Case No. 11- 17858); Westlake Evergreen-DE, LLC (Bankr. C.D. Calif. Case No. 11-17874); 15352 Vanowen Street Apartments-DE (Bankr. C.D. Calif. Case No. 11-17870); and Normandie Court III-DE (Bankr. C.D. Calif. Case No. 11-17872), estimated $10 million to $50 million in both assets and debts in their petitions. The law offices of M. Jonathan Hayes serve as the Debtors' counsel. The Court for the Central District of California has transferred the Chapter 11 case to the calendar of Bankruptcy Judge Geraldine Mund. The Debtors value the real property at roughly $13 million. Total secured debt exceeds $17 million. Each debtor-entity said its case is a single asset case. EXIDE TECHNOLOGIES: Files 1st Quarter 2011 Summary Report --------------------------------------------------------- Exide Technologies Post-Confirmation Quarterly Summary Report Unaudited Condensed Balance Sheets As of March 31, 2011 (in thousands) Assets Current Assets: Cash $53,359 Accounts receivables, net 147,119 Intercompany receivables 14,139 Inventories 188,913 Prepaid expenses & other 71,821 -------------- Total current assets 475,352 -------------- Property, plant and equipment, net 270,627 -------------- Other Assets: Other intangibles, net 51,217 Investment in affiliates 1,375 Intercompany notes receivables 205,103 Deferred financing costs and other 74,944 -------------- TOTAL ASSETS $1,078,619 ============== Liabilities and Stockholders' Equity Current Liabilities Current maturities of long-term debt $280 Accounts payable 121,970 Accrued expenses 54,465 Accrued interest 11,018 Restructuring reserve 6,882 Liability for warrants 68 Warranty liability 9,869 -------------- Total current liabilities 204,552 Long-term debt 735,227 Noncurrent retirement obligations 66,298 Other noncurrent liabilities 59,311 -------------- Total liabilities 1,065,387 Total stockholder's equity 13,232 -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,078,619 ============== Exide Technologies Post-Confirmation Quarterly Summary Report Unaudited Schedule of Cash Flows Quarter Ended March 31, 2011 (in thousands) Beginning Balance $26,972 Cash Receipts: Collection of accounts receivable 401,161 Proceeds from equity issuance - Proceeds from sale of Debtor's assets - Refinancing 74,256 All other cash receipts 6,730 -------------- Total Cash Receipts 482,147 -------------- Cash Disbursements: Disbursements made under the Plan, excluding payments to bankruptcy professionals - Disbursements made to bankruptcy professionals 729 Repayment of Term Loans - All other disbursements made in the ordinary course 455,032 -------------- Total Cash Disbursements 455,761 -------------- Ending Cash Balance $53,359 ============== About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. The Company filed for Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. The Court confirmed Exide's Amended Joint Chapter 11 Plan on April 20, 2004. The plan took effect on May 5, 2004. While it has emerged from Bankruptcy, reorganized Exide is still resolving claims filed against it in the Bankruptcy Court. * * * Reorganized Exide carries 'B' issuer credit ratings from Standard & Poor's. "The ratings on Exide Technologies reflect what we consider to be the Company's aggressive financial risk profile, which incorporates S&P's expectation that sales and profitability will improve gradually as demand increases," said Standard & Poor's credit analyst Nancy Messer. Exide has 'B3' corporate family and probability of default ratings from Moody's Investors Service. In July 2008, Moody's upgraded the rating to 'B3' from 'Caa1'. Exide's B3 Corporate Family Rating continues to incorporate the company's leveraged profile, cyclical industry characteristics, and raw material pricing pressure, Moody's said in January 2011. EXIDE TECHNOLOGIES: Wants Until Oct. 31 to Object to Claims ----------------------------------------------------------- Exide Technologies seeks approval from the U.S. Bankruptcy Court for the District of Delaware to further extend its deadline for filing objections to claims to October 31, 2011. The deadline for the company to file its objections expired on July 31, 2011. The proposed extension will give Exide enough time to review and resolve the 48 remaining claims, according to James O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware. More than 6,100 proofs of claim aggregating $4.4 billion had been filed against Exide. These do not include about 1,100 proofs of claim that were filed as unliquidated claims. As of July 27, 2011, approximately 6,069 claims had been resolved, reducing the total amount of outstanding claims by more than $4.2 billion. Exide has already completed 25 quarterly distributions to creditors under its confirmed Joint Plan of Reorganization, consisting of distributions on approximately 2,625 claims for about $1.74 billion. Since July 28, 2010, Exide has reached a number of settlements, has filed individual objections to claims, and has generally made considerable advancements with respect to the remaining, more complex claims, according to Mr. O'Neill. The Court will hold a hearing on September 20, 2011, to consider approval of the proposed extension. Parties have until August 15 to file objections. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. The Company filed for Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. The Court confirmed Exide's Amended Joint Chapter 11 Plan on April 20, 2004. The plan took effect on May 5, 2004. While it has emerged from Bankruptcy, reorganized Exide is still resolving claims filed against it in the Bankruptcy Court. * * * Reorganized Exide carries 'B' issuer credit ratings from Standard & Poor's. "The ratings on Exide Technologies reflect what we consider to be the Company's aggressive financial risk profile, which incorporates S&P's expectation that sales and profitability will improve gradually as demand increases," said Standard & Poor's credit analyst Nancy Messer. Exide has 'B3' corporate family and probability of default ratings from Moody's Investors Service. In July 2008, Moody's upgraded the rating to 'B3' from 'Caa1'. Exide's B3 Corporate Family Rating continues to incorporate the company's leveraged profile, cyclical industry characteristics, and raw material pricing pressure, Moody's said in January 2011. EXIDE TECHNOLOGIES: Has Settlement With SAPP Battery ---------------------------------------------------- Exide Technologies sought and obtained court approval of an agreement to settle the claims of Sapp Battery Site Group against the company. The claims, which include Claim Nos. 2856, 2864, 4735, 4737, 5246 and 5248, are on account of the environmental remediation costs incurred with respect to the Sapp site in Florida. Under the deal, Sapp Battery will receive an allowed non- priority, general unsecured Class P4-A claim for $2.4 million to be distributed in stock in accordance with the terms of Exide's confirmed restructuring plan. A certificate for shares based on the claim allowance will also be distributed to Sapp Battery in accordance with the agreement. In exchange, Sapp Battery agreed to withdraw its proofs of claim against Exide and to release the company from all liability arising from or relating to those claims. A full-text of the settlement agreement is available without charge at http://bankrupt.com/misc/LBHI_SappDeal.pdf About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. The Company filed for Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. The Court confirmed Exide's Amended Joint Chapter 11 Plan on April 20, 2004. The plan took effect on May 5, 2004. While it has emerged from Bankruptcy, reorganized Exide is still resolving claims filed against it in the Bankruptcy Court. * * * Reorganized Exide carries 'B' issuer credit ratings from Standard & Poor's. "The ratings on Exide Technologies reflect what we consider to be the Company's aggressive financial risk profile, which incorporates S&P's expectation that sales and profitability will improve gradually as demand increases," said Standard & Poor's credit analyst Nancy Messer. Exide has 'B3' corporate family and probability of default ratings from Moody's Investors Service. In July 2008, Moody's upgraded the rating to 'B3' from 'Caa1'. Exide's B3 Corporate Family Rating continues to incorporate the company's leveraged profile, cyclical industry characteristics, and raw material pricing pressure, Moody's said in January 2011. FANNIE MAE: Incurs $2.89 Billion Net Loss in Second Quarter ----------------------------------------------------------- Federal National Mortgage Association filed with the U.S. Securities and Exchange Commission its quarterly report on form 10-Q reporting a net loss of $2.89 billion on $36.77 billion of total interest income for the three months ended June 30, 2011, compared with a net loss of $1.22 billion on $39.39 billion of total interest income for the same period during the prior year. The Company also reported a net loss of $9.36 billion on $73.88 billion of total interest income for the six months ended June 30, 2011, compared with a net loss of $12.75 billion on $78.83 billion of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $3.19 trillion in total assets, $3.20 trillion in total liabilities and a $5.08 billion total deficit. "We remain the largest source of liquidity for the U.S. mortgage market, and we are committed to creating long-term value by helping to build a stable, sustainable housing market for the future," said Michael J. Williams, president and chief executive officer. "We are focused on reducing taxpayer exposure by limiting our credit losses and building a strong new book of business. Our new book of business is now nearly half of our overall single-family book and we expect these new loans will be profitable over their lifetime." A full-text copy of the Form 10-Q is available for free at: http://is.gd/PInLCH A copy of the news release is available at http://is.gd/nW5jcr About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. Fannie Mae has been under conservatorship, with the Federal Housing Finance Agency acting as conservator, since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the company, and of any shareholder, officer or director of the company with respect to the company and its assets. The conservator has since delegated specified authorities to Fannie Mae's Board of Directors and has delegated to management the authority to conduct day-to-day operations. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9% of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. FIDELITY NATIONAL: Fitch Affirms 'BB+' Rating on $1-Bil. Facility ----------------------------------------------------------------- Fitch Ratings has removed Fidelity National Information Services, Inc. (FIS) from Rating Watch Negative and affirmed all ratings of FIS with a Stable Outlook. Fitch had previously placed FIS on Rating Watch Negative during its regular credit review in June coincident with FIS' announcement that it had made a preliminary approach regarding a possible cash offer to acquire the UK-based company, Misys PLC (Misys). FIS recently announced that those discussions have ended without an agreement. FIS also stated its intention to resume share repurchases of up to 13.6 million shares previously authorized by the Board of Directors in February 2010. This action is already incorporated into the ratings. Fitch has affirmed the following ratings for FIS: -- Issuer Default Rating at 'BB+'; -- $1 billion secured revolving credit facility (RCF) at 'BB+'; -- Senior secured term loan A at 'BB+'; -- Senior secured term loan B at 'BB+'; -- $600 million in 7.625% senior unsecured notes due July 2017 at 'BB'; -- $500 million in 7.875% senior unsecured notes due July 2020 at 'BB'. The Rating Outlook is Stable. A key consideration of FIS' ratings is its free cash flow (FCF) conversion rate and FCF to debt leverage metrics. Fitch believes that the company's capitalization of software development costs tends to exaggerate EBITDA on a relative basis. To compensate for this potential discrepancy, Fitch places greater emphasis on evaluating FIS' leverage on a cash flow basis relative to peers. Fitch estimates FIS' cash flow leverage at 12.6% for the LTM ended June 2011. This is above the median for 'BB' issuers and comparable to the 'BBB' median. Fitch expects this figure to oscillate between the two ranges going forward as the company pursues potential debt financed acquisitions or shareholder friendly actions. FIS' steady operating model and sufficient cash flow generation reflect positively on the credit relative to other investment grade issuers. However, the company's historical predisposition for debt financed acquisitions and investor friendly actions, including its strong consideration of a leveraged buyout, limit upside to the ratings. In fact, the stability of the company's cash flows combined with no meaningful financial and operational rationale for maintaining an investment grade rating, effectively limit the ratings given the company's current size as Fitch would expect any attempt to delever the company to be met by existing shareholder and outsider interest in using leverage to purchase a portion or potentially a majority of shares. Positive rating action is currently limited by the company's size and potential for additional debt financed acquisitions and shareholder friendly actions. Negative rating action could occur if the company was to maintain leverage in excess of 3 times (x) through repeated borrowings and share repurchases. Additionally, negative rating action could occur if the company's primary customer base, small and mid-tier financial institutions, were negatively impacted by regulatory changes or severe economic events. Rating strengths include the following: -- Stable end demand; -- Strong diversification, with increasing international diversification although highly dependent on small- and mid- tier banks; -- High switching costs. Rating concerns include: -- History of debt M&A and shareholder friendly actions; -- High fixed cost business; -- Minimal need to maintain ratings above 'BB'; -- Potential regulatory changes; -- Increasing competition from non-traditional competitors such as IBM and Oracle which have greater resources. The rating and Outlook reflect the following considerations: -- Fitch expects revenue growth in the mid-single digits over the next several years. Revenue growth could exceed expectations if FIS has continued success in cross selling opportunities across the combined customer base of FIS and Metavante including its recently acquired services offering from Capco. Conversely, changes to financial regulations or economic factors that negatively impact small and medium sized financial institutions could result in revenue growth lagging expectations. -- Fitch expects EBITDA growth to largely track revenue growth as benefits realized from operational cost savings are offset by the growth in lower margin services revenue. -- Fitch expects FCF of approximately $700 million to $800 million annually over the next several years, which reflects approximately $300 million in annual capital expenditures plus the company's current $70 million dividend program. Fitch expects FIS to use a portion of its FCF to modestly reduce debt outstanding under its bank facilities. -- Fitch estimates leverage (total debt / operating EBITDA) as of June 2011 to be 2.8x, which has been trending lower since the company's partial debt financed recapitalization effort in the September 2010 quarter. Fitch expects leverage to remain roughly in-line with current metrics, subject to potential debt financed acquisitions or further share repurchases. Fitch estimates interest coverage (EBITDA to Gross Interest Expense) to be 6.7x as of June 2011. -- Fitch expects FIS to utilize FCF to fund additional share repurchases and potential acquisitions. While the company's unsecured notes do have a restricted payment basket, Fitch expects the company to continue to focus on shareholder returns. Total liquidity as of June 30, 2011 was $1.3 billion consisting of approximately $900 million available under FIS' $1 billion senior secured revolving credit facility, of which $112 million expires in January 2012 with the remaining portion expiring July 2014, and approximately $427 million in cash. Total debt as of June 30, 2011 was $4.9 billion and consisted principally of $112 million outstanding under FIS' aforementioned revolving credit facility, $325 million outstanding under a senior secured term loan A maturing January 2012; $1.8 billion outstanding under a senior secured term loan A maturing July 2014; $1.5 billion outstanding under a senior secured term loan B maturing July 2016; $600 million in 7.625% senior unsecured notes due July 2017; and $500 million in 7.875% senior unsecured notes due July 2020. FLORIDA EXTRUDERS: Chapter 11 Plan Declared Effective ----------------------------------------------------- Florida Extruders International, Inc., notified the U.S. Bankruptcy Court for the Middle District of Florida and parties- in-interest in its Chapter 11 bankruptcy case that the effective date of its Chapter 11 Plan occurred on July 5, 2011. As reported in the TCR on June 27, pursuant to the Plan, the net proceeds from the sale of the Assets remaining following payment of, or provision for, the Class 2 Secured Creditor Claims (Ray Valdez, Seminole County Tax Collector), and the Excluded Assets or the proceeds thereof will be distributed first, to Wells Fargo to satisfy its Prepetition Secured Claims; second, to Wells Fargo to satisfy its DIP Financing Secured Claims; and third, to Wells Fargo to satisfy its Super-Priority Claims. Wells Fargo agrees to a carve-out from the distribution an amount up to $250,000 plus 2% of each dollar that the final Purchase Price for the assets exceeds $8,000,000 to be distributed for the benefit of the Class 6 General Unsecured Creditors. Class 6 General Unsecured Creditors will be paid on a pro rata basis from (1) the assets of the Debtor's estate or the proceeds thereof remaining following payment in full of administrative and priority claims, and payment of the Class 1-5 Secured Creditor Claims; plus (2) the Guaranteed Distribution in the amount of $250,000 plus 2% of each dollar that the final purchase price for the Assets exceeds $8,000,000 less the amount distributed or to be distributed to Class 6 Creditors, subject to reduction for excess fees and costs of Committee Counsel. Class 7 Equity interests of the Debtor will be deemed of no value. The CRO will be authorized to take the necessary steps and actions to obtain a final decree dissolving the Post Confirmation Debtor. A full-text copy of the court-approved disclosure statement, dated June 2, 2011, is available for free at http://ResearchArchives.com/t/s?764f About Florida Extruders Headquartered in Sanford, Florida, Florida Extruders International, Inc. -- http://www.floridaextruders.com/-- was formed in 1989 and is a low cost, vertically integrated aluminum extruder, window, sliding glass door, and patio screen door manufacturer, and building products distributor. It filed a bare- bones Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-07761) on April 25, 2011. The case has been assigned to Judge K. Rodney May. Christopher C. Todd, Esq., at McIntyre, Panzarella, Thanasides, serves as the Debtor's counsel. Triton Capital Partners, LTD serves as financial advisor and investment banker. The Company disclosed $33,816,432 in assets and $23,958,630 in liabilities as of the Chapter 11 filing. The Debtor disclosed $26.3 million in assets and $16.9 million in debt, mainly owed to lender Wells Fargo & Co., in its original schedules. The secured lender Wells Fargo Bank NA, owed $13.2 million, offered financing for the Chapter 11 case. The Hon. K. Rodney May has authorized Florida Extruders to sell substantially all of its assets to Benada Aluminum Products, LLC. At the June 14 auction, Benada submitted the final bid of $11.8 million, representing the highest and best offer received for the Debtor's assets. FNB UNITED: Inks Subscription Pacts with Additional Investors ------------------------------------------------------------- FNB United Corp. previously reported that it entered into separate investment agreements, as amended, with an affiliate of The Carlyle Group and affiliates of Oak Hill Capital Partners and subscription agreements with certain additional investors, pursuant to which each Investor agreed, subject to certain conditions, to purchase common stock of the Company as part of the Company's expected $310 million capital raise. On Aug. 4, 2011, the Company entered into subscription agreements with additional investors and amendments to the Investment Agreements and certain existing subscription agreements to finalize allocations of the proposed $310 million capital raise. As a result of these amendments and new subscription agreements, each Lead Investor will be investing approximately $79 million and the other investors will invest the remaining approximately $152 million. The amended and restated form of subscription agreement is available for free at http://is.gd/ssn383 In connection with the proposed capital raise and as previously reported, the Company has entered into an Agreement and Plan of Merger, dated April 26, 2011, as amended by Amendment No. 1, dated June 16, 2011, with the Bank of Granite Corporation and a wholly owned acquisition subsidiary of the Company, pursuant to which the wholly owned subsidiary of the Company will, subject to certain conditions, merge with and into Granite, with Granite surviving as a subsidiary of the Company. The closings of the Merger and the Lead Investors' and the other investors' respective investments remain subject to these conditions, among others: -- the closing conditions under the Merger Agreement, the Investment Agreements and the subscription agreements having been satisfied or waived; -- receipt of bank regulatory approvals; -- Company shareholder approval of certain proposals necessary for the Company to consummate the investments, the Merger and the related transactions; -- the shares of Common Stock to be issued under the Investment Agreements being authorized for listing on NASDAQ; -- the exchange of the Company's preferred stock issued to the U.S. Department of the Treasury for Common Stock; -- changes to the Company's Board of Directors; -- the absence of burdensome regulatory conditions or agreements at closing; -- the satisfaction of conditions regarding minimum liquidity and non-brokered deposits and the level of non-performing assets; -- receipt of advice as to the absence of an Internal Revenue Code section 382 ownership change as a result of the private placement investments; and -- neither the Company nor Granite's having experienced a material adverse effect. Agreement with SunTrust Bank On Aug. 1, 2011, CommunityONE Bank, N.A., and SunTrust Bank entered to an agreement to settle $2.5 million in subordinated debt of CommunityONE held by SunTrust Bank for cash in amount equal to 35% of the principal amount of the debt, plus 100% of the unpaid and accrued interest on the debt as of the closing date of the Merger. Pursuant to the terms of the SunTrust Agreement, CommunityONE has also agreed to repurchase 12.5 million shares of preferred stock of CommunityONE owned by SunTrust Bank for cash in an amount equal to 25% of the aggregate liquidation amount of the preferred stock, plus 100% of the unpaid and accrued dividends on the preferred stock as of the closing date of the Merger. Non-Compliance Notice On Aug. 3, 2011, the Company received written notice from The Nasdaq Stock Market of the Nasdaq staff's determination that the Company has not regained compliance with Nasdaq Listing Rule 5550(a)(2), the bid price rule. As previously disclosed, the Company is also not in compliance with Nasdaq Listing Rule 5550(b), the stockholders' equity rule. The Company is in the process of appealing the determination of the Nasdaq staff to remove the Company's common stock from listing and registration on The Nasdaq Stock Market. The Company's common stock will continue to trade on The Nasdaq Capital Market under the symbol "FNBN" during the appeals period. Subscription Agreements On Aug. 4, 2011, the Company entered into subscription agreements providing for the sale of approximately $73.025 million of Common Stock, in aggregate, to additional investors and amended and restated subscription agreements providing for the sale of an additional approximately $3.975 million of Common Stock, in aggregate, to investors that had originally executed subscription agreements on June 16, 2011. In addition, the Company entered into amendments to each of the Investment Agreements providing for the sale of an additional $3 million of Common Stock, in aggregate, to the Lead Investors. About FNB United Asheboro, N.C.-based FNB United Corp. (Nasdaq:FNBN) is the bank holding company for CommunityOne Bank, N.A., and the bank's subsidiary, Dover Mortgage Company. Opened in 1907, CommunityOne Bank -- http://www.MyYesBank.com/-- operates 45 offices in 38 communities throughout central, southern and western North Carolina. Through these subsidiaries, FNB United offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services. The Company's balance sheet at March 31, 2011, showed $1.82 billion in total assets, $1.89 billion in total liabilities, and a $67.70 million total shareholders' deficit. The Company incurred significant net losses in 2009, which continued in 2010 and 2011, primarily from the higher provisions for loan losses due to the significant level of nonperforming assets and the write-off of goodwill. Dixon Hughes PLLC, in Charlotte, North Carolina, in its independent auditors' report dated March 14, 2011 and attached to the financial statements, noted that the Company continued to incur significant net losses in 2010, primarily from the higher provisions for loan losses due to the significant level of non- performing assets. According to Dixon Hughes, the Company is significantly undercapitalized per regulatory guidelines and has failed to reach capital levels required in the Consent Order issued by the Office of the Comptroller of the Currency in 2010. These matters, the accounting firm maintains, raise substantial doubt about the Company's ability to continue as a going concern. Dixon Hughes also said that FNB United Corp. and Subsidiary has not maintained effective internal control over financial reporting as of Dec. 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. FOUNDATIONS MONTESSORI: Voluntary Chapter 11 Case Summary --------------------------------------------------------- Debtor: Foundations Montessori School, Inc. 2651 W. Algonquin Road Algonquin, IL 60102 Bankruptcy Case No.: 11-83507 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Northern District of Illinois (Rockford) Judge: Manuel Barbosa Debtor's Counsel: David R. Herzog, Esq. HERZOG & SCWARTZ PC 77 W Washington Suite 1717 Chicago, IL 60602 Tel: (312) 977-1600 E-mail: drhlaw@mindspring.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. FRONTGATE DEVELOPMENT: Case Summary & Creditors List ---------------------------------------------------- Debtor: Frontgate Development, LLC 4139 N. Oleander Norridge, IL 60706 Bankruptcy Case No.: 11-31963 Chapter 11 Petition Date: August 4, 2011 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jacqueline P. Cox Debtor's Counsel: Aaron Spivack, Esq. LAW OFFICES OF AARON SPIVACK 566 W. Lake Street, Suite LL101 Chicago, IL 60661 Tel: (312) 775-9060 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/ilnb11-31963.pdf The petition was signed by Janek Soltys, sole shareholder. GCEP - GOODYEAR: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: GCEP - Goodyear, LLC 8300 N. Hayden Road #207 Scottsdale, AZ 85258 Bankruptcy Case No.: 11-22546 Chapter 11 Petition Date: August 5, 2011 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: James M. Marlar Debtor's Counsel: Kevin C. McCoy, Esq. KELLY McCOY, PLC 1411 N. Third St. Phoenix, AZ 85004 Tel: (602) 687-7433 Fax: (602) 687-7466 E-mail: kmccoy@kelly-mccoy.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 Affiliates that sought Chapter 11 protection: Petition Entity Case No. Date ------ ------- ---- GCEP - Scottsdale, LLC 11-22547 8/05/11 Assets: $50,001 to $100,000 Debts: $1,000,001 to $10,000,000 GCEP - Surprise, LLC 11-22550 8/05/11 Assets: $50,001 to $100,000 Debts: $1,000,001 to $10,000,000 A list of GCEP - Goodyear's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb11-22546.pdf A list of GCEP - Scottsdale 's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb11-22547.pdf A list of GCEP - Surprise's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb11-22550.pdf The petitions were signed by David R. Agado, managing member. GETTY PETROLEUM: Defaults on Rental Payments to Getty Realty ------------------------------------------------------------ Getty Realty Corp. has not received the monthly rental payment due for August 2011 from its largest tenant, Getty Petroleum Marketing Inc., under its Master Lease and other leases with Marketing. In discussions with Getty Petroleum Marketing, Getty Realty was informed that based on Marketing's distressed financial position, weakness in operating margins, and cash flow deficiencies, it was unlikely to be able to pay full rent for August. Although Getty Petroleum Marketing described various contingencies which, if resolved favorably, may allow for payment of full or partial rent for August, the Company can provide no assurances that Marketing will meet its current or future rental or other obligations under the Marketing Leases. Getty Realty has issued a contractual notice of default to Marketing as a result of its non-payment of rent, and intends to continue discussions with Marketing while it evaluates its options regarding this matter. Getty Realty is the largest publicly-traded real estate investment trust in the United States specializing in ownership, leasing and financing of retail motor fuel and convenience store properties and petroleum distribution terminals. The Company owns and leases approximately 1,170 properties nationwide. Carla Main at Bloomberg News reports that Getty Realty's shares fell 13% Aug. 9 after the announcement. GLOBAL CROSSING: Files Form 10-Q, Incurs $34-Mil. Net Loss in Q2 ---------------------------------------------------------------- Global Crossing Limited filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $34 million on $692 million of revenue for the three months ended June 30, 2011, compared with a net loss of $47 million on $630 million of revenue for the same period during the prior year. The Company also reported a net loss of $67 million on $1.35 billion of revenue for the six months ended June 30, 2011, compared with a net loss of $166 million on $1.27 billion of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2.28 billion in total assets, $2.83 billion in total liabilities and a $548 million total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/q0LAUS About Global Crossing Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- is a global IP, Ethernet, data center and video solutions provider with the world's first integrated global IP-based network. Global Crossing Limited reported a consolidated net loss of $172 million on $2.609 billion of consolidated revenue for the twelve months ended Dec. 31, 2010, compared with a net loss of $141 million on $2.159 billion of revenue during the prior year. * * * As reported by the Troubled Company Reporter on March 31, 2010, Standard & Poor's Ratings Services raised all its ratings on Global Crossing, including the corporate credit rating to 'B' from 'B-'. The outlook is stable. S&P assigned its 'CCC+' issue-level rating and '6' recovery rating to Global Crossing's proposed $150 million of senior unsecured notes due 2019. The '6' recovery rating indicates S&P's expectation for negligible (0%-10%) recovery in the event of a payment default. GRAND ISLAND: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Grand Island Regency Retirement 803 Alpha Street Grand Island, NE 68803 Tel: (308) 381-4553 Bankruptcy Case No.: 11-42109 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court District of Nebraska (Lincoln Office) Judge: Thomas L. Saladino Debtor's Counsel: Galen E. Stehlik, Esq. LAURITSEN, BROWNELL, BROSTROM, STEHLIK 724 W. Koenig P.O. Box 400 Grand Island, NE 68802 Tel: (308) 382-8010 Fax: (308) 382-8018 E-mail: galens@lauritsenlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/neb11-42109.pdf The petition was signed by Ralph Dan Niemoth, treasurer/acting secretary. HALO WIRELESS: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Halo Wireless, Inc. 2351 West Northwest Highway, Suite 1205 Dallas, TX 75220 Bankruptcy Case No.: 11-42464 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: E. P. Keiffer, Esq. WRIGHT GINSBERG BRUSILOW PC Republic Center, Suite 4150 325 North St. Paul Street Dallas, TX 75201 Tel: (214) 651-6517 Fax: (214) 744-2615 E-mail: pkeiffer@wgblawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Russel Wiseman, president. HARRY & DAVID: Creditors Push for Plan Confirmation --------------------------------------------------- Pete Brush at Bankruptcy Law360 reports that companies holding some $30 million in unsecured trade claims against Harry & David Holdings Inc. pushed for confirmation of the company's reorganization plan Tuesday in Delaware after a key ruling erased the holiday gift purveyor's pension liability for 2,700 workers. As reported in yesterday's TCR, Harry & David 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. 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. The Chapter 11 Plan Prepetition, the Debtor negotiated the terms of a plan of reorganization with holders of approximately 81% of its senior notes. The Court entered an order approving the disclosure statement explaining the proposed Chapter 11 plan on June 24. As reported in the Troubled Company Reporter on July 6, 2011, the Debtor modified the plan to gain support from the official unsecured creditors' committee. The modified plan provides for these terms: * Unsecured creditors are to receive 10% in total, with 40% of that coming in 2012 and 60% in 2013. * Pension Benefit Guaranty Corp. and holders of $58.2 million in senior floating-rate notes and $148.2 million in senior fixed-rate notes are in a class together. In return for their claims, they are to receive 146,000 new common shares and the right to purchase another 733,000 shares, or about 74.9%, in a $55 million rights offering. The recovery for noteholders is estimated between 2% and 17.4% for participants in the rights offering. For those not participating, the recovery is 4.2% to 10%, according to the disclosure statement. * The proceeds of the $55 million rights offering will be used to repay the $55 million in second-lien financing for the Chapter 11 case. Noteholders are backstopping the rights offering. As a fee, they will receive 50,000 shares. * Existing lenders providing $100 million in first-lien financing for the bankruptcy case will continue the loan when the company emerges from Chapter 11. The original plan was agreed to before bankruptcy with holders of 81% of the senior notes, including Wasserstein & Co., which also owns 63% of the stock. Wells Fargo Bank is indenture trustee for the noteholders. About Harry & David Medford, Oregon-based Harry & David Holdings, Inc. -- aka Bear Creek Corporation; Bear Creek Direct Marketing, Inc.; Bear Creek Stores, Inc.; Bear Creek Operations, Inc.; and Bear Creek Orchards, Inc. -- is a multi-channel specialty retailer and producer of branded premium gift-quality fruit and gourmet food products and gifts marketed under the Harry & David(R), Wolferman's(R) and Cushman's(R) brands. It has 70 stores across the country. Harry & David Holdings filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10884) on March 28, 2011. Affiliates Harry and David (Bankr. D. Del. Case No. 11-10885), Harry & David Operations, Inc. (Bankr. D. Del. Case No. 11-10886), and Bear Creek Orchards, Inc. (Bankr. D. Del. Case No. 11-10887) filed separate Chapter 11 petitions. The cases are jointly administered, with Harry David Holdings as lead case. David G. Heiman, Esq., Brad B. Erens, Esq., and Timothy W. Hoffman, Esq., at Jones Day, are the Debtors' lead counsel. Daniel J. DeFranceschi, Esq., Paul Noble Heath, Esq., and Zachary Shapiro, Esq., at Richards Layton & Finger, serve as the Debtors' local counsel. Rothschild Inc. is the Debtors' investment banker. Alvarez & Marsal LLC is the Debtors' financial advisor. Garden City Group Inc. is the Debtors' claims and notice agent. McKinsey Recovery & Transformation Services U.S. LLC is being tapped as management consultants. The Debtor also tapped DJM Realty Services, LLC, as real estate consultants; Alvarez & Marsal North America to provide the Debtors an interim chief executive officer and chief restructuring officer and certain additional officers; and McKinsey Recovery & Transformation Services U.S. LLC as their management consultant. Kristopher M. Hansen, Esq., and Erez E. Gilad, Esq., at Stroock & Stroock & Lavan LLP; Thomas B. Walper, Esq., at Munger, Tolles & Olson LLP; and Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP are counsel to principal noteholders. Moelis & Company is the financial advisor to the principal noteholders. Lowenstein Sandler has been retained as counsel to the unsecured creditors committee. The Debtors disclosed $304.3 million in total assets and $360.8 million in total debts as of Dec. 25, 2010. On April 7, 2011, the U.S. Trustee appointed an official committee of unsecured creditors in the Debtors' cases. HCA HOLDINGS: Reports $320 Million Net Income in June 30 Quarter ---------------------------------------------------------------- HCA Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on form 10-Q reporting net income of $320 million on $8.06 billion of revenue for the quarter ended June 30, 2011, compared with net income of $378 million on $7.75 billion of revenue for the same period a year ago. The Company also reported net income of $654 million on $16.11 billion of revenue for the six months ended June 30, 2011, compared with net income of $854 million on $15.30 billion of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $23.87 billion in total assets, $31.41 billion in total liabilities, and a $7.53 billion stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DoTJRt About HCA Inc. Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company with 162 hospitals and 104 freestanding surgery centers (including eight hospitals and eight freestanding surgery centers that are accounted for using the equity method) as of Sept. 30, 2010. For the 12 months ended Sept. 30, 2010, the company recognized revenue in excess of $30 billion. * * * In May 2011, Moody's Investors Service upgraded the Corporate Family and Probability of Default Ratings of HCA Inc. (HCA) to B1 from B2. "The upgrade of HCA's rating reflects the considerable progress the company has made in improving financial metrics and managing the company's maturity profile since the November 2006 LBO," said Dean Diaz, a Moody's Senior Credit Officer. "While the funding of distributions to shareholders at the end of 2010 increased debt levels, the growth in EBITDA and debt repayment since the LBO have improved leverage metrics considerably from the high levels seen just after the company went private," continued Diaz. As reported by the Troubled Company Reporter on March 14, 2011, Moody's Investors Service commented that the completion of the IPO by HCA Holdings, Inc., has no immediate impact on the company's B2 Corporate Family Rating. The outlook for the ratings remains positive. While Moody's believes that the completion of the IPO is a credit positive since proceeds are expected to be used to repay outstanding debt, the estimated $2.6 billion of proceeds to the company won't meaningfully reduce HCA's $28.2 billion debt load. In the March 16, 2011, edition of the TCR, Fitch Ratings has upgraded its ratings for HCA Inc. and HCA Holdings Inc., including the companies' Issuer Default Ratings which were upgraded to 'B+' from 'B'. The Rating Outlook is revised to Stable from Positive. The ratings apply to approximately $28.2 billion in debt outstanding at Dec. 31, 2010. Fitch noted that HCA has made significant progress in reducing debt leverage since it was taken private in 2006 in a LBO which added $17 billion to the company's debt balance; at Dec. 31, 2006, immediately post the LBO, debt-to- EBITDA was 6.7x. Most of the reduction in debt leverage over the past four years was accomplished through growth in EBITDA, which Fitch calculates has expanded by $1.7 billion or 40% to $5.9 billion for 2010 versus $4.2 billion in 2006. Although the company did not undertake a significant organizational restructuring post the LBO, management has nevertheless been successful in growing EBITDA and significantly expanding discretionary free cash flow (FCF). Fitch believes this was accomplished through various operational initiatives, including expansion of profitable service lines and the divestiture of some under performing hospitals, as well as the generally resilient operating trend of the for-profit hospital industry during the recent economic recession despite the pressure of increased levels of uncompensated care and generally weak organic patient volume trends. HERITAGE CONSOLIDATED: Court OKs Hiring of 3 Law Firms ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas has approved Heritage Consolidated, LLC's application to employ Munsch Hardt Kopf & Harr, P.C. and Rochelle McCullough, LLP, as counsel. The Court also authorized Heritage Standard Corporation as special bankruptcy counsel. The Debtors relate that the sale order, in conjunction with the Global Resolution Proposal, significantly reduced the remaining assets and issues for the Debtors and resolved many of the potential conflicts between the estates of HSC and Consolidated. In particular, the Debtors were concerned about potential lien priority disputes among CIT Capital Securities, LLC, the Debtors' primary lender at the time, HSC as the holder of an operator's lien and Consolidated as the owner of the primary assets which were collateralized. The foregoing sale order and global resolution proposal has resulted in the satisfaction of the secured claims of CIT and significantly reduced any chance that the scope of the operator's lien would become an issue for Consolidated. Accordingly, at the insistence of the Committee, HSC requests that the Court authorize Munsch Hardt to take over as general bankruptcy counsel for both Debtors and assume the duties and responsibilities being performed by RM LLP on behalf of HSC, in the absence of an actual conflict between the interests of Consolidated and HSC. To the best of the Debtors' knowledge, the firms are "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. The firms can be reached at: Joe E. Marshall, Esq. Kathleen M. Patrick, Esq. MUNSCH HARDT KOPF & HARR, P.C. 3800 Lincoln Plaza 500 North Akard Street Dallas, TX 75201-6659 Tel: (214) 855-7500 Fax: (214) 978-4365 E-mail: jmarshall@munsch.com kpatrick@munsch.com - and - Kevin D. McCullough, Esq. Kerry Ann Miller, Esq. ROCHELLE McCULLOUGH LLP 325 N. St. Paul Street, Suite 4500 Dallas, TX 75201 Tel: (214) 953-0182 Fax: (214) 953-0185 E-mail: kdm@romclawyers.com kmiller@romclawyers.com About Heritage Consolidated Heritage Consolidated LLC is a privately held company whose core operations consist of exploration for, and acquisition, production, and sale of, crude oil and natural gas. Heritage Consolidated filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 10-36484) on Sept. 14, 2010, in Dallas, Texas. Its affiliate, Heritage Standard Corporation, also filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 10-36485). The Debtors each estimated assets and debts of $10 million to $50 million. HIMES PROPERTIES: Case Summary & 7 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Himes Properties, LLC P.O. Box 90027 Chattanooga, TN 37412 Bankruptcy Case No.: 11-14220 Chapter 11 Petition Date: August 4, 2011 Court: U.S. Bankruptcy Court Eastern District of Tennessee (Chattanooga) Judge: John C. Cook Debtor's Counsel: Kyle R. Weems, Esq. WEEMS & RONAN 744 McCallie Avenue, Suite 520 Chattanooga, TN 37403 Tel: (423) 624-1000 E-mail: weemslaw@earthlink.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/tneb11-14220.pdf The petition was signed by Nancy Chandler, member. HIS, II: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: HIS, II LLC dba Arthur's Wine & Liquor 5475 Poplar Avenue, Suite 104 Memphis, TN 38119-3730 Bankruptcy Case No.: 11-27884 Chapter 11 Petition Date: August 5, 2011 Court: U.S. Bankruptcy Court Western District of Tennessee (Memphis) Judge: Jennie D. Latta Debtor's Counsel: Toni Campbell Parker, Esq. LAW OFFICE OF TONI CAMPBELL PARKER 615 Oakleaf Office Lane P.O. Box 240666 Memphis, TN 38124-0666 Tel: (901) 683-0099 Fax: (866) 489-7938 E-mail: tparker002@att.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/tnwb11-27884.pdf The petition was signed by Robert Hyde, Jr., managing member. INTELSAT SA: Incurs $214.4 Million Net Loss in Second Quarter ------------------------------------------------------------- Intelsat S.A. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $214.48 million on $642.44 million of revenue for the three months ended June 30, 2011, compared with a net loss of $181.91 million on $635.28 million of revenue for the same period during the prior year. The Company also reported a net loss of $430.24 million on $1.28 billion of revenue for the six months ended June 30, 2011, compared with a net loss of $285.34 million on $1.25 billion of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $17.59 billion in total assets, $18.28 billion in total liabilities, $1.90 million in noncontrolling interest, and a $698.94 million total Intelsat S.A. shareholders' deficit. "Business activity is strong, driven by favorable demand trends for broadband infrastructure and media distribution for direct-to- home (DTH) and cable applications. Overall growth was muted in the second quarter, as a result of reduced mobile satellite services revenues in our government business and decreased network services revenues. Still, we experienced strong revenue growth of 9 percent in our government business and modest growth in our media business, resulting in steady overall revenue and maintenance of our 78 percent Adjusted EBITDA margin in the period," said Intelsat CEO David McGlade. A full-text copy of the Form 10-Q is available for free at: http://is.gd/mjdbll About Intelsat Intelsat S.A., formerly Intelsat, Ltd., provides fixed-satellite communications services worldwide through a global communications network of 54 satellites in orbit as of Dec. 31, 2009, and ground facilities related to the satellite operations and control, and teleport services. It had US$2.5 billion in revenue in 2009. Luxembourg-based Intelsat S.A. carries 'B' issuer credit ratings from Standard & Poor's. It has 'Caa1' corporate family and probability of default ratings from Moody's Investors Service. Washington D.C.-based Intelsat Corporation, formerly known as PanAmSat Corporation, is a fully integrated subsidiary of Intelsat S.A., its indirect parent. Intelsat Corp. had US$7.70 billion in assets against US$4.86 billion in debts as of Dec. 31, 2010. The Company reported a net loss of US$507.77 million on US$2.54 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of US$782.06 million on US$2.51 billion of revenue during the prior year. IOWA HOTEL: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Iowa Hotel Investors, LLC dba Country Inn & Suites Hotel 3962 Brown Park Drive, Suite A Hilliard, OH 43026 Bankruptcy Case No.: 11-01836 Chapter 11 Petition Date: August 5, 2011 Court: United States Bankruptcy Court Northern District of Iowa (Waterloo) Debtor's Counsel: Joseph A. Peiffer, Esq. Ronald C. Martin, Esq. Day Rettig Peiffer, P.C. P.O. Box 2877 Cedar Rapids, IA 52406-2877 Tel: (319) 365-0437 Fax: (319) 365-5866 E-mail: joep@drpjlaw.com ronm@drpjlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 Affiliate that sought Chapter 11 protection: Petition Debtor Case No. Date ------ -------- ---- Iowa Hotel Investors II, LLC 11-01837 8/05/11 Assets: $1,000,001 to $10,000,000 Debts: $1,000,001 to $10,000,000 A list of the Iowa Hotel Investors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ianb11-01836.pdf A list of Iowa Hotel Investors II's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ianb11-01837.pdf The petitions were signed by Mark Taylor, managing member. JACKSON HEWITT: Stay Lifted in Firm, H&R Block False Ad Row ----------------------------------------------------------- Pete Brush at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Mary F. Walrath on Monday lifted a stay that had put a stop to a Lanham Act false advertising fight between rival tax preparers Jackson Hewitt Tax Service Inc. and H&R Block Inc., the same day the judge confirmed Jackson Hewitt's plan to exit Chapter 11. Judge Walrath lifted an automatic bankruptcy stay allowing Kansas City, Mo.-based H&R Block's parent, HRB Tax Group Inc., to conduct discovery and pursue its counterclaims to judgment in a New York federal court action, according to Law360. 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. JAMESTOWN MALL: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Jamestown Mall Realty Management, LLC 249-27 37 Ave. Little Neck, NY 11363 Bankruptcy Case No.: 11-48354 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Charles E. Rendlen III Debtor's Counsel: Keith D. Price, Esq. Scott A. Greenberg, Esq. SANDBERG PHOENIX & VON GONTARD 600 Washington Avenue, 15th Floor St. Louis, MO 63101-1313 Tel: (314) 231-3332 Fax: (314) 241-7604 E-mail: kprice@sandbergphoenix.com sgreenberg@sandbergphoenix.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Mehran Kohansieh, managing member. JCK HOTELS: U.S. Trustee Forms 3-Member Creditors Committee ----------------------------------------------------------- Tiffany L. Carroll, Acting United States Trustee for Region 16, under 11 U.S.C. Sec. 1102(a) and (b), appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of JCK Hotels, LLC, fka Mira Mesa Hotels, LLC. The Creditors Committee members are: 1. Sysco Guest Supply LLC 4301 U.S. Highway 1 Monmouth Junction, NJ 08852 ATTN: Michael W. Hall Tel: (609) 514-7373 Fax: (609) 514-1190 E-mail: mhall@guestsupply.com 2. Hospitality Plus Inc. 33171 Camino Capistrano San Juan, Capistrano, CA 92675 ATTN: Richard Rowland Tel: (949) 364-9634 Fax: (949) 364-8917 E-mail: Rowland-5@cox.net 3. Innkeepers Telecom 760 N. Euclid Street #213 Anaheim, CA 92801 ATTN: Kenneth Lee Tel: (949)-261-7330 Fax: (949)-261-7331 E-mail: leekyosik@gmail.com JCK Hotels, LLC, fka Mira Mesa Hotels, LLC, operates the Holiday Inn Express Mira Mesa Hotel and the Comfort Suites Mira Mesa Hotel in San Diego, California. The Hotels are operated under licensing and franchise agreements with Holiday Inn Express and Comfort Suites. JCK Hotels filed for Chapter 11 bankruptcy (Bankr. S.D. Calif. Case No. 11-09428) on June 3, 2011. Judge Louise DeCarl Adler presides over the case. William M. Rathbone, Esq., at Gordon & Rees LLP, serves as bankruptcy counsel. While no formal appraisal has been done recently, the Debtor believes the fair market value of both Hotels exceeds $18 million. The petition was signed by Charles Jung, managing member. JEFFERSON, ALA: Won't Extend Standstill Agreement With Creditors ---------------------------------------------------------------- Jefferson County, Alabama, won't extend a standstill agreement that has allowed for talks with creditors to avoid a bankruptcy filing over $3.1 billion of sewer-system debt, Commission President David Carrington said, according to reporting by Carla Main at Bloomberg News. According to the report, the commission sent creditors a counteroffer for renegotiating the debt on Aug. 7 and hasn't heard back, Mr. Carrington said at a news conference Aug. 9. It proposed 8% sewer-rate increases annually for three years and 3% in each of the next two years, Commissioner Sandra Little Brown said in an interview. Commissioners had previously proposed raising rates at 7.8% annually for three years, followed by 3% increases in two more to help make payments that have strained its finances. Creditors wanted 8% annually for five years, Ms. Little Brown has said. Mr. Carrington said the commission will vote either to file for Chapter 9 bankruptcy protection or approve terms of an agreement with creditors, which include JPMorgan Chase & Co. and bond insurers Financial Guaranty Insurance Co. and Syncora Guarantee Inc. Mr. Carrington said the fact creditors had offered to shave $1 billion from the $3.1 billion debt had done as much damage to the county's reputation as a bankruptcy would. He said any deal struck before the Aug. 12 end of the standstill agreement would begin a process that could last into next year. The county would approve a term sheet that would have to be crafted into an agreement, he said, and the Alabama Legislature would have to approve changes needed to help Jefferson County rebuild its finances. Amended Proposal Barnett Wright, writing for The Birmingham (Ala.) News, reports that two Jefferson County officials said Tuesday the county is asking creditors to erase $1.17 billion of its $3.14 billion sewer debt and put up most of a relief fund for ratepayers who struggle to pay sewer bills. The report notes the amended proposal modifies the county's original request that creditors write off $1.3 billion of the debt. The creditors last month offered to write off nearly $1 billion. According to the report, the new plan also asks creditors to provide $19 million of a $20 million indigent relief fund, with the county paying the remaining amount. According to the report, court-appointed sewer receiver John S. Young, who has served as a mediator between the two sides, said late Tuesday that the county should have the creditors' response Thursday morning. 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. KBJ LOGGING: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: KBJ Logging, Inc. P.O. Box 10 Wallace, NC 28466 Bankruptcy Case No.: 11-06056 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: J. Rich Leonard Debtor's Counsel: Algernon L. Butler, III, Esq. BUTLER & BUTLER, L.L.P. P.O. BOX 38 Wilmington, NC 28402 Tel: (910) 762-1908 Fax: (910) 762-9441 E-mail: albutleriii@butlerbutler.com Scheduled Assets: $888,587 Scheduled Debts: $1,576,022 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nceb11-06056.pdf The petition was signed by Jody A. Brooks, president. KT SPEARS: Court Approves McCarthy Law as Substitute Counsel ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of South Carolina authorized McCarthy Law Firm, LLC to be the substitute bankruptcy counsel in the Chapter 11 case of KT Spears Creek, LLC. The Debtor has consented to the withdrawal of Matthew S. Okin, Maggie D. Conner, and the law firm of Okin Adams & Kilmer LLP as bankruptcy counsel. The Debtor related that its bankruptcy case was transferred from the Southern District of Texas to the District of South Carolina. The original bankruptcy counsel requested that they be allowed to withdraw from representation of the Debtor. KT Spears Creek, LLC, in Houston, Texas, filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-33991) on May 3, 2011, Judge Letitia Z. Paul presiding. Magdalene Duchamp Conner, Esq., at Okin Adams & Kilmer LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Kyle D. Tauch, sole member. KV PHARMACEUTICAL: Partner Fund Owns 1.25MM of Class A Shares ------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Partner Fund Management, L.P., disclosed that it beneficially owns 1,256,596 shares of Class A common stock of K-V Pharmaceutical Company representing 2.5% of the shares outstanding. Partner Investment Management, L.P., also holds 2.4% equity stake. As previously reported by the TCR on March 16, 2011, Partner Fund disclosed ownership of 6,266,219 shares of Class A common stock representing 13.1% of the shares outstanding. A full-text copy of the regulatory filing is available at no charge at http://is.gd/4iEbfa About KV Pharmaceutical Company KV Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. KV Pharmaceutical has not timely filed its Form 10-K for the year ended March 31, 2010 and its Form 10-Qs for the subsequent quarterly periods. The Company's independent accounting firm, KPMG, resigned on June 25, 2010, and the Company has tapped BDO USA, LLP, to audit the fiscal 2010 financial statements. The Form 10-Q for the quarter ended June 30, 2010, was only filed March 10, 2011. The Company's balance sheet at Dec. 31, 2010, showed $296.21 million in total assets, $529.66 million in total liabilities, and a $233.45 million shareholders' deficit. There is substantial doubt about the Company's ability to continue as a going concern. The report of the Company's independent registered public accountants BDO USA, LLP, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2010, includes an explanatory paragraph related to the Company's ability to continue as a going concern. The Company incurred a net loss of $283.61 million on $152.22 million of net revenue for 12 months ended March 31, 2010, compared with a net loss of $313.63 million on $312.33 million of revenue in the same period in fiscal 2009. The Company reported a net loss of $34.60 million on $3.38 million of net revenue for three months ended June 30, 2010, compared with a net loss of $53.95 million on $6.30 million of revenue in the same period in 2009. LAPAHANA LLC: Case Summary & 2 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Lapahana LLC 8647 Salem Unity Road Salem, OH 44460 Bankruptcy Case No.: 11-42353 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court Northern District of Ohio (Youngstown) Judge: Kay Woods Debtor's Counsel: John H. Chaney, III, Esq. DANIEL DANILUK LLC 1129 Niles-Cortland Road Warren, OH 44484 Tel: (330) 609-9999 Fax: (330) 609-9990 E-mail: jchaney@daniluklaw.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 two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/ohnb11-42353.pdf The petition was signed by Linda Dinsio, president. LAVATEC INC: Goudkuil Buys Business Out of Chapter 11 ----------------------------------------------------- Laundry and Cleaning News reports that Goudkuil Laundry Machinery of Apeldoorn, Holland, has bought the assets and business operations of Lavatec Inc. of Naugatuck, Connecticut. According to the report, Albert Goudkuil, who becomes Lavatec Inc.'s president, said the acquisition brings the USA company out of Chapter 11 bankruptcy. He added that following the acquisition, the Goudkuil group will continue to do business under the Lavatec Inc. name and from the same factory and premises that that company has occupied during the past 24 years. Lavatec Inc's staff, including the sales force and service technicians experienced in handling the equipment, will remain with the Dutch employers. Connecticut-based Lavatec, Inc., manufactures industrial laundry equipment with installations across the U.S. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Conn. Case No. 09- 32004) on July 24, 2009. Dean W. Baker, Esq., at Law Offices of Dean W. Baker assists the Company in its restructuring efforts. Lavatec disclosed $3.5 million in assets and $5.5 million in debts. LEE ENTERPRISES: Incurs $155.4 Million Net Loss in June 30 Qtr. --------------------------------------------------------------- Lee Enterprises, Incorporated, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $155.44 million on $187.30 million of total operating revenue for the 13 weeks ended June 26, 2011, compared with net income of $10.04 million on $196.40 million of total operating revenue for 13 weeks ended June 27, 2010. The Company also reported a net loss of $137.91 million on $573.70 million of total operating revenue for the 39 weeks ended June 26, 2011, compared with net income of $40.98 million on $591.98 million of total operating revenue for the 39 weeks ended June 27, 2010. The Company's balance sheet at June 26, 2011, showed $1.18 billion in total assets, $1.26 billion in total liabilities, and a $75.71 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/okeznW About Lee Enterprises Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes the St. Louis Post Dispatch and the Arizona Daily Star along with more than 40 other daily newspapers and about 300 weeklies. Revenue for the 12 months ended December 2010 was approximately $780 million. * * * As reported by the Troubled Company Reporter on May 16, 2011, Standard & Poor's lowered its preliminary corporate credit rating on Lee to 'B-' from 'B'. The rating outlook is negative. "The downgrade is based on the company's significant near-term maturities and our belief that alternative refinancing options will likely be costly," said Standard & Poor's credit analyst Hal F. Diamond. "We withdrew our 'B' preliminary issue rating on Lee Enterprises' proposed $680 million first-lien senior secured notes due 2017 with a preliminary recovery rating of '3' (also withdrawn), indicating our expectation of meaningful (50%-70%) recovery for lenders in the event of a payment default," S&P related. As reported by the TCR on May 6, 2011, Moody's withdrew its ratings on Lee after the publisher cancelled a planned refinancing that would have included the upsizing of its first lien senior secured notes due 2017 to $680 million from $675 million, and shifting of the coupon on the $375 million senior secured notes due 2018 to a cash/PIK combination from all cash. Moody's had previously assigned Caa1 Corporate Family Rating on Lee. LEHMAN BROTHERS: BNP Paribas Supports Plan Disclosures ------------------------------------------------------ BNP Paribas has expressed support for the approval of the disclosure statement describing the revised Chapter 11 plan of Lehman Brothers Holdings Inc. and its affiliated debtors, saying the disclosure statement contains "adequate information." BNP Paribas is one of the Lehman creditors that entered into a plan support agreement with LBHI. Under the PSA, BNP Paribas is required to file a statement in support of the approval of the disclosure statement. LBHI and its affiliated debtors filed a third version of their Chapter 11 plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York in June, which would enable them to pay an estimated $65 billion to their creditors. Under the proposed plan, LBHI's senior unsecured creditors which have an estimated $83.724 billion in claims would recover 21.1% of their claims, down from 21.4% in the previous proposal filed by the company early this year. Meanwhile, the company's general unsecured creditors, which have an estimated $11.39 billion in claims, would recover 19.9% of their claims, up from 19.8% in the prior proposal. The proposed plan also provides that a portion of the money owed to creditors of LBHI's subsidiaries will be reallocated to the company's creditors. Creditors of Lehman subsidiaries also consented to a cap on some of their claims. LBHI's proposed plan has much broader support from creditors than its previous proposals. Thirty institutions and certain of their affiliates have reportedly executed the PSAs, which include substantially all of the proponents of the two competing plans that were proposed earlier this year. The proponents of the rival plans have agreed to hold those plans in abeyance while LBHI moves forward toward approval of the disclosure statement and confirmation of its restructuring plan. In a related development, Lehman creditors, Linda Neufeld and Chris Stovic opposed the approval of the disclosure statement, saying it contains financial inconsistencies and questionable asset valuations, does not disclose the final allowed claims and net recovery for each Lehman unit, among other reasons. Judge James Peck is set to hold a hearing on August 30, 2011, to consider approval of the disclosure statement. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Barclays Again Seeks Dismissal of $500MM Suit -------------------------------------------------------------- Barclays Capital Inc. is again asking Judge James Peck to dismiss a lawsuit filed by Lehman Brothers Holdings Inc. to recover its remaining claim for $500 million in allegedly unpaid bonuses to former employees. LBHI previously asked the bankruptcy judge to rule on its claim, alleging that Barclays did not pay all of the $2 billion in bonuses the U.K. bank agreed to when it bought the company's North American business in 2008. The company said that the $2 billion figure solely applies to bonuses and since only $1.5 billion of it were in actual bonuses, Barclays still owes an additional $500 million. "LBHI argues that while the $2 billion may 'originally' have been an estimate, it later became a contractual obligation," said Barclays' lawyer, Jonathan Schiller, Esq., at Boies Schiller & Flexner LLP, in New York. "That assertion is illogical and impossible to support." Mr. Schiller contended that if Barclays had contractually agreed with LBHI on September 16, 2008, that it would pay exactly $2 billion solely in bonuses, then LBHI would not have told the bankruptcy judge three days later that the $2 billion was an "estimated" amount of Barclays' exposure for Lehman workers who accepted its offers of employment and who would receive not just bonuses but other types of compensation. Judge Peck did touch on the bonuses in his February decision, echoing LBHI's argument that the asset-purchase agreement only referred to bonuses. Barclays lawyers, however, contended that several witnesses during the trial made it clear that the $2 billion was just an estimate and that it referred to all types of compensation, not just bonuses, according to an August 8, 2011 report by The Wall Street Journal. Judge Peck will hear oral argument on September 7, 2011, on LBHI's and Barclays' motions for summary judgment with respect to the company's claim for breach of contract under Count II of its complaint. The claim seeks payment of $500 million in damages for Barclays' failure to pay the bonuses of Lehman employees in full. The deadline for Barclays to file an answer, if any is required after the motions for summary judgment are decided, to the complaint was adjourned from August 15, 2011 to 30 days after entry of a court order disposing those motions. Lehman Brothers Holdings, Inc., filed a memorandum of law in further support of its motion for summary judgment on its breach of contract claim against Barclays Capital Inc. LBHI's breach of contract claims arises from Barclays' failure to pay the full and specified amount it was required to pay under the Asset Purchase Agreement -- i.e. $20 billion in bonuses to transferred Lehman employees -- as part of the consideration for Barclays' purchase of LBHI's North American broker-dealer business. LBHI insists that Judge Peck's findings in its February 22, 2011 Opinion establish the elements of this contractual claim, warranting summary judgment against Barclays. William J. Hine, Esq., at Jones Day, in New York, argues that Barclays' opposition is in effect a thinly disguised -- and wholly improper -- motion for reconsideration, whereby Barclays seeks to relitigate issues the Court has already decided after months of trial followed by the parties' submission of detailed proposed findings of fact. Mr. Hine adds that Barclays also seeks to undermine the Court's well-supported findings by offering substitute evidence to change what it offered at trial. As an example, Mr. Hine cites, Barclays apparently now wants to change the trial testimony of Paul Exall, the witness Barclays itself called to testify about bonus payments. Barclays, he asserts, is bound by Exall's admissions at trial and at his pretrial deposition where, among other things, Exall was Barclays' Rule 30(b)(6) witness. Barclays, Mr. Hines adds, is also bound by the testimony of its other employees and agents, like PricewaterhouseCoopers. LBHI also points out that Barclays offered arguments it never raised at trial, although it had ample opportunity to do so. Among these new arguments are: -- purported "ambiguity" in the APA, which ignores the admissions of Barclays own witnesses, who provided the Court with ample evidence about their understanding of the APA, and certainly enough to resolve any potential "ambiguity;" -- that the Court's findings have no collateral estoppel effect, contending, quite incorrectly, that parties that have lost motions can never assert estoppel over prevailing parties, even with regard to particular factual findings that did not go the prevailing party's way; -- that Barclays cannot be bound by any of the Court's findings in the Rule 60(b) trial because, as the prevailing party on the Rule 60 motion as a whole, Barclays purportedly has no right to appeal them; and -- that LBHI has suffered no harm from Barclays' breach of Paragraph 9.1(c) of the APA. * * * Barclays Capital Inc., Barclays Bank plc and James W. Giddens, the trustee for the liquidation of Lehman Brothers Inc., entered into a court-approved stipulation agreeing to the joinder of Barclays Bank as party to the contested matters and adversary proceedings relating to the sale of LBHI's North American assets. In a separate court-approved stipulation, the parties agreed as to the necessary security to be provided so as to eliminate any risk that a final, non-appealable judgment will not be satisfied. The parties have also agreed to stay enforcement of the judgments on the dispute relating to the "margin assets" and the "clearance box assets" pending appeal. To recall, the Trustee was awarded judgment against Barclays in the sum of $2.054 billion plus 5% interest per annum from Sept. 22, 2008, to the date the judgment was entered. Barclays was also awarded judgment against the Trustee in the sum of $1.1 billion. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Appeals 2008 Order Due to Barclays Windfall ------------------------------------------------------------ Lehman Brothers Holdings Inc. and the Official Committee of Unsecured Creditors are appealing a bankruptcy judge's ruling denying their motions to modify his 2008 sale order. Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York denied the motions to revise his prior ruling, which authorized the sale of LBHI's North American broker-dealer business to Barclays plc. LBHI and the Creditors' Committee accused Barclays plc of receiving possibly $12 billion in excess assets that were never disclosed when it bought the broker-dealer business. An investigation conducted by LBHI showed that the deal was actually structured to give Barclays "immediate and enormous windfall profit." LBHI, in another appeal, also asked the U.S. District Court for the Southern District of New York to reconsider another decision by the bankruptcy judge, which ordered the dismissal of Count III, Count IV, Count V, Count VI and Count IX of the complaint filed by the company in connection with the 2008 sale. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Brokerage Wants Payback to Start Soon ------------------------------------------------------ James Giddens, the trustee overseeing the liquidation of Lehman Brothers Holdings Inc.'s brokerage hopes to start repaying some creditors by year's end," according to an August 9, 2011 report by The Wall Street Journal. At the "State of the Estate" address in the U.S. Bankruptcy Court for the Southern District of New York, Mr. Giddens told Judge James Peck that he controls a $20.6 billion pool of assets to repay creditors but how those funds will be divided between the brokerage and customers is yet to be determined. Mr. Giddens emphasized that a "substantial shortfall," meaning creditors other than individual brokerage customers will not receive anything near 100% of their claims, The Journal reported. A lawyer for the trustee, James Kobak, Esq., at Hughes Hubbard & Reed LLP, in New York, said the bulk of the $20.6 billion in assets will probably go to customers, according to an August 9, 2011 report by Reuters. Mr. Giddens said that after sorting through duplicate and rejected creditor claims, the claims are down to $97 billion from a prior estimate of more than $144 billion. About $12.2 billion of the $97 billion are considered to be "allowed" and an additional $42.8 billion are still unresolved. The unresolved claims are largely from Lehman affiliates including $17 billion from U.K.-based Lehman Brothers International Europe and $8 billion from LBHI. Mr. Kobak said the litigation over claims against LBIE could be a significant "drag" on paying back creditors because of a trial over a $13.9 billion claim that is not scheduled to begin until 2013. Lawyers for both the trustee and LBIE said they have been meeting regularly to talk about the settlement of that large claim, according to The Journal report. At the heart of the trustee-LBIE dispute is the issue of whether money held on behalf of foreign affiliates can be considered customer money. If allowed, the claim could eat up a significant portion of the brokerage's resources for paying back its customers. Mr. Kobak said that regardless of the outcome of the dispute, the brokerage won't be able to make significant payouts on the $47.5 billion in general creditor claims, which face an "inevitable" shortfall, Reuters reported. A full-text copy of Mr. Giddens' August 9 report about the state of the brokerage estate is available for free at: http://bankrupt.com/misc/LBHI_StateLBIEstate081011.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Proposes to Create 2 Credit-Worthy Guarantors -------------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors seek approval from the U.S. Bankruptcy Court for the Southern District of New York to create two auditable entities to serve as guarantors and provide $50 million in cash to each guarantor. Prior to their bankruptcy filing, the Debtors and their controlled subsidiaries held a portfolio of real estate-related assets as collateral. Some of these assets were used to secure mortgages or other loans. Although they are non-recourse, most mortgage loans require that the borrower and its principals or a credit-worthy entity executes a non-recourse carve out guaranty. The guaranty requires the guarantor to pay the lender damages that the latter incurs in case the borrower takes certain actions. The guaranties either convert a non-recourse loan into a full recourse loan against the borrower or guarantor, or provide for corporate liability against them if the borrower commits bad actions, which include obtaining any subordinate financing or lien on the property, opposing foreclosure, among other things. In order for a lender to accept an entity as a guarantor, the entity is required to be credit-worthy, which means that it must meet a minimum liquidity threshold, have a minimum net worth, and be able to provide audited financial statements. Prior to September 15, 2008, most of the Debtors' real estate interests were placed in special purpose entities and the Debtors would use Property Asset Management Inc. as the credit-worthy guarantor. Because PAMI is an indirect subsidiary of LBHI, lenders and services typically waived the requirement for audited financial statements. During their bankruptcy, the Debtors began to foreclose on some of their collateral. As a result of these foreclosures, the Debtors are now the holder of equity in the owner of many real estate-related projects and are required by an intercreditor agreement with the senior lender to substitute the original equity holder guaranty with their own guaranty. In other circumstances, the Debtors are able to negotiate a consensual delivery of the ownership entity from their mezzanine borrowers but are unable to consummate the closing because they cannot provide the senior lender with a substitute guarantor. Further, in order to provide the estate with additional liquidity, the Debtors sought to obtain third party non-recourse mortgage financing for certain real estate properties but had been thwarted because they could not provide the third-party lender with the required credit-worthy guarantor to execute the non-recourse carve out guaranty. Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in Houston, Texas, says there are no entities in the Lehman enterprise that are capable of serving as credit-worthy guarantors as all of them are insolvent, fail the minimum net-worth tests, or cannot be audited without significant cost to the estates. The absence of such a guarantor could lead to the senior lender declaring a technical default on the underlying loan, Mr. Perez tells the Court. In such circumstances the Debtors are faced with the choice of paying off the loan at par or walking away from their investment. Furthermore, there are also situations where having a credit-worthy guarantor could enhance or accelerate recoveries on a project by allowing borrowing such as construction financing, according to Mr. Perez. In light of this, the Debtors intend to establish two entities to act as credit-worthy guarantors and fund each of those entities with approximately $50 million to meet the required net-worth test. It is possible, however, that circumstances will require an additional capital contribution investment of up to $50 million to each guarantor entity. Hence, the Debtors intend to establish the entities and capitalize each up to $50 million, subject to their ability to increase the capitalizing by $50 million to each entity without further court approval. The Court will hold a hearing on August 17, 2011, to consider approval of the request. The deadline for filing objections is August 10, 2011. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEVELLAND/HOCKLEY: Court OKs Block & Garden as Bankruptcy Counsel ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas has approved Levelland/Hockley County Ethanol's application to employ Block & Garden, LLP, as general bankruptcy counsel, nunc pro tunc to the Petition Date. The Debtor has selected B&G as general counsel because of its attorneys' experience in Chapter 11 matters. The services of B&G are necessary to enable Debtor to execute its duties as Chapter 11 debtor in possession. On an interim basis and subject to further order of this Court, B&G will be required to render, among others, these professional services to the Debtor: a. advise and consult with LHCE in connection with its rights and duties as debtor in possession under the Bankruptcy Code, including advice in connection with matters of the administration of the estate and the proposal of a plan of reorganization and in matters arising from or related to confirmation and consummation of a plan; b. advise and assist LHCE in preparation of documents, schedules, statements, lists, reports and other matters required under the Bankruptcy Code and Bankruptcy Rules to be filed, and to coordinate with LHCE in preparation of reporting required by the U.S. Trustee's office; c. advise LHCE concerning and represent it in the conduct of the Bankruptcy Case, and as a complex chapter 11 proceeding as the Bankruptcy Court may order, including preparation of notices to creditors, conducting hearings on First Day matters, maintenance of service lists, and other matters under such rules; d. advise and consult with LHCE on preservation of the bankruptcy estate and its rights and remedies with regard to the assets of the bankruptcy estate and in evaluation and conduct with respect to the claims of secured and unsecured creditors, and the interests of members of the LLC; e. to appear for, prosecute, defend, and represent LHCE's interests in contested matters and adversary proceedings arising from or related to the Bankruptcy Case, and to assist in the preparation of such pleadings, petitions, applications and orders as LHCE shall be required to prepare for the orderly administration of this case; f. to counsel LHCE with respect to obtaining, negotiating, documenting and seeking approval of matters relating to the use of cash collateral of pre-petition secured lenders, as to post-petition financing matters, and other post-petition operating issues; g. to represent LHCE before this Court and other courts of competent jurisdiction related to the Bankruptcy case; and h. to counsel LHCE with respect to the myriad of bankruptcy and other issues related to the Bankruptcy Case, and to perform other legal services that are necessary and desirable to its prosecution. The current hourly rates of the principal attorneys presently designated to represent the Debtors are: I. Richard Levy Shareholder $450 per hour Christopher McNeill Shareholder $400 per hour Susan Frierott Associate $300 per hour Other shareholders, associates staff counsel and paraprofessionals of B&G may from time to time assist in the representation of Debtor in connection with these cases. Billing rates for B&G's other attorneys range from $225 per hour to $500 per hour. Paraprofessionals normally are billed at $125 to $175 per hour. I. Richard Levy, Esq., a shareholder at Block & Garden, LLP, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Levelland Ethanol Levelland/Hockley County Ethanol LLC is a Texas limited liability company that owns and operates a 40 million gallon per annum Ethanol production plant located in Levelland, Hockley county, Texas. The LLC has over 100 members many of whom are local farmers, business people and civic leaders. A recent appraisal Of its facility values its assets, with the Plant under full operation, at over $51.5 million. Levelland Ethanol filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 11-50162) on April 27, 2011. The Debtor is represented by I. Richard Levy at Block & Garden, LLP, in Dallas. The Debtor disclosed total assets of $60,451,124 and total liabilities of $47,557,432 in its schedules. LIBBEY INC: Reports $15.4 Million Net Income in Second Quarter -------------------------------------------------------------- Libbey Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $15.40 million on $214.01 million of net sales for the three months ended June 30, 2011, compared with net income of $9.56 million on $203.03 million of net sales for the same period during the prior year. The Company also reported net income of $14.40 million on $395.02 million of net sales for the six months ended June 30, 2011, compared with net income of $64.97 million on $376.94 million of net sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $815.25 million in total assets, $767.39 million in total liabilities and $47.85 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/GWGpx8 About Libbey Inc. Based in Toledo, Ohio, since 1888, Libbey, Inc., operates glass tableware manufacturing plants in the United States in Louisiana and Ohio, as well as in Mexico, China, Portugal and the Netherlands. Libbey supplies tabletop products to foodservice, retail, industrial and business-to-business customers in over 100 countries. * * * On Oct. 28, 2009, Libbey restructured a portion of its debt by exchanging the old 16% Senior Subordinated Secured Payment-in- Kind Notes due December 2011 of subsidiary Libbey Glass Inc., having an outstanding principal amount as of October 28, 2009, of $160.9 million for (i) $80.4 million principal amount of new Senior Subordinated Secured Payment-in-Kind Notes due 2021 of Libbey Glass, and (ii) 933,145 shares of common stock and warrants exercisable for 3,466,856 shares of common stock of Libbey Inc. On Feb. 8, 2010, Libbey used the proceeds of a $400.0 million debt offering of 10.0% Senior Secured Notes due 2015 of Libbey Glass Inc., as well as cash on hand, to (i) repurchase the $306.0 million then outstanding Floating Rate Senior Secured Notes due 2011 of Libbey Glass, (ii) repay the $80.4 million New PIK Notes and (iii) pay related fees and expenses. Concurrent with the closing of the offering of the Senior Secured Notes, Libbey entered into an amended and restated $110 million Asset Based Loan facility which, among other terms, extended the maturity date to 2014. As reported by the TCR on Aug. 9, 2011, Standard & Poor's Ratings Services raised its corporate and senior secured debt ratings on Toledo, Ohio-based Libbey Inc. to 'B+' from 'B'. The rating outlook is stable. "The upgrade and stable outlook reflect our belief that Libbey will sustain its improved profitability and credit measures and maintain its adequate liquidity position," said Standard & Poor's credit analyst Rick Joy. LIBBEY INC: Registers 1.46MM Common Shares Under Incentive Plan --------------------------------------------------------------- Libbey Inc. filed with the U.S. Securities and Exchange Commission a Form S-8 registration statement registering 1,460,000 shares of common stock to be issued under the Amended and Restated Libbey Inc. 2006 Omnibus Incentive Plan. A full-text copy of the prospectus is available for free at http://is.gd/DUAXKa About Libbey Inc. Based in Toledo, Ohio, since 1888, Libbey, Inc., operates glass tableware manufacturing plants in the United States in Louisiana and Ohio, as well as in Mexico, China, Portugal and the Netherlands. Libbey supplies tabletop products to foodservice, retail, industrial and business-to-business customers in over 100 countries. The Company's balance sheet at June 30, 2011, showed $815.25 million in total assets, $767.39 million in total liabilities and $47.85 million in total shareholders' equity. * * * On Oct. 28, 2009, Libbey restructured a portion of its debt by exchanging the old 16% Senior Subordinated Secured Payment-in- Kind Notes due December 2011 of subsidiary Libbey Glass Inc., having an outstanding principal amount as of October 28, 2009, of $160.9 million for (i) $80.4 million principal amount of new Senior Subordinated Secured Payment-in-Kind Notes due 2021 of Libbey Glass, and (ii) 933,145 shares of common stock and warrants exercisable for 3,466,856 shares of common stock of Libbey Inc. On Feb. 8, 2010, Libbey used the proceeds of a $400.0 million debt offering of 10.0% Senior Secured Notes due 2015 of Libbey Glass Inc., as well as cash on hand, to (i) repurchase the $306.0 million then outstanding Floating Rate Senior Secured Notes due 2011 of Libbey Glass, (ii) repay the $80.4 million New PIK Notes and (iii) pay related fees and expenses. Concurrent with the closing of the offering of the Senior Secured Notes, Libbey entered into an amended and restated $110 million Asset Based Loan facility which, among other terms, extended the maturity date to 2014. As reported by the TCR on Aug. 9, 2011, Standard & Poor's Ratings Services raised its corporate and senior secured debt ratings on Toledo, Ohio-based Libbey Inc. to 'B+' from 'B'. The rating outlook is stable. "The upgrade and stable outlook reflect our belief that Libbey will sustain its improved profitability and credit measures and maintain its adequate liquidity position," said Standard & Poor's credit analyst Rick Joy. LIONEL YOW: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------ Lionel L. Yow filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.C. Case No. 11-06011) on Aug. 5, 2011. Wayne Faulkner at StarNewsOnline.com reports that Mr. Yow, a Wilmington developer, is facing claims by TD Bank for $6.6 million for Dockside WB Investments LLC, and $4.33 million by Wells Fargo Bank for Surf City Investments LLC. According to the report, Mr. Yow's filing follows that of business partner John A. Elmore II. Both developed Porters Neck, Shell Island, Masonboro Forest and numerous other projects in the area. Mr. Faulkner relates that Mr. Yow also is a partner in the popular Dockside restaurant on Airlie Road near the Wrightsville Beach drawbridge and the Beach House Marina project in Surf City. The report says claims are $4.13 million from Rialto Bank for Lighthouse Cove Development Corp. and Lighthouse Cove LLC; as well as from First Bank for various entities associated with the Hawkeswater development in Belville. Trawick "Buzzy" Stubbs, Esq., represents Mr. Yow. LODGENET INTERACTIVE: Files Form 10-Q; Incurs $2.9-Mil. Q2 Loss --------------------------------------------------------------- LodgeNet Interactive Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $2.92 million on $106.63 million of total revenues for the three months ended June 30, 2011, compared with a net loss of $3.14 million on $113.07 million of total revenues for the same period during the prior year. The Company also reported a net loss of $3.83 million on $214.36 million of total revenues for the six months ended June 30, 2011, compared with a net loss of $5.64 million on $231.12 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $419.22 million in total assets, $470.10 million in total liabilities, and a $50.87 million total stockholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/IiqLNz About LodgeNet Interactive Sioux Falls, South Dakota-based LodgeNet Interactive Corporation (Nasdaq:LNET), formerly LodgeNet Entertainment Corp. -- http://www.lodgenet.com/-- provides media and connectivity solutions designed to meet the unique needs of hospitality, healthcare and other guest-based businesses. LodgeNet Interactive serves more than 1.9 million hotel rooms worldwide in addition to healthcare facilities throughout the United States. The Company's services include: Interactive Television Solutions, Broadband Internet Solutions, Content Solutions, Professional Solutions and Advertising Media Solutions. LodgeNet Interactive Corporation owns and operates businesses under the industry leading brands: LodgeNet, LodgeNetRX, and The Hotel Networks. The Company reported a net loss of $11.68 million on $452.17 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $10.15 million on $484.49 million of total revenue during the prior year. * * * Lodgenet carries a 'B3' long term corporate family rating and a 'Caa1' probability of default rating, with 'stable' outlook, from Moody's. It has 'B' long term foreign and local issuer credit ratings, with 'stable' outlook, from Standard & Poor's. "In Moody's opinion, continued cautious investment from LodgeNet's hotel customers will hamper intermediate term growth in its core hospitality services business, and over the long term competing forms of entertainment will pressure this revenue stream as the company seeks to defend its relevance to both hotel operators and hotel guests. The B3 corporate family rating incorporates these weak growth prospects, mitigated somewhat by the company's moderately high financial risk profile and demonstrated capacity to generate positive free cash flow throughout challenging economic conditions, along with a measure of stability from the monthly fees it receives from hotels regardless of occupancy," Moody's said in October 2010. LOS ANGELES DODGERS: Committee to Hire Morrison as Counsel ---------------------------------------------------------- The Official Committee of Unsecured Creditors of the Los Angeles Dodgers seeks permission from the U.S. Bankruptcy Court for the District of Delaware to retain Morrison & Foerster LLP as counsel. Upon retention, the firm, will among other things: -- advise the Committee in connection with its powers and duties under the Bankruptcy Code, the Bankruptcy Rules and the Local Rules; -- assist and advise the Committee in its consultation with the Debtors relative to the administration of these cases; -- attend meetings and negotiate with the representatives of the Debtors; The firm's rates are: Personnel Rates --------- ----- Partners $600 to $950 Counsel $395 to $875 Associates $295 to $640 Paralegals $165 to $270 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. 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. LOTHIAN OIL: Re-characterization of Claim Not Limited to Insiders ----------------------------------------------------------------- The U.S. Court of Appeals for the Fifth Circuit held in an Aug. 9 decision that the bankruptcy court may recharacterize a non- insider claim as equity rather than debt. In In re Lothian Oil Incorporated, Israel Grossman and a secretary of the Debtor signed agreements in April and May 2005 that provided for Mr. Grossman to loan funds to the Debtor. In the April 2005 agreement, Mr. Grossman would loan $200,000 to Lothian Oil in exchange for a 1% royalty to the gross production Lothian Oil receives on the Webb Properties of New Mexico, without any further investment; and repayment of $200,000 from the proceeds of the $0.75 placement or any other equity placements. In the second, Mr. Grossman would loan $150,000 to Lothian Oil in exchange for a royalty of 1% of Lothian Oil's share of gross production of oil and gas on the Webb properties in New Mexico without further investment to be made by Mr. Grossman; and repayment to Grossman of the Loan from the proceeds of a $0.75 per share equity placement made in Lothian Oil or from the proceeds, subject always to the Sterling Bank Credit Agreement, of any other equity placement in Lothian Oil. Mr. Grossman later filed proofs of claim in the bankruptcy case which were settled in an accord dated Oct. 30, 2008. The settlement awarded Mr. Grossman $1.025 million in full payment of most of his claims. Mr. Grossman remained free to seek court determination of the value of the remaining claims, called the "Undetermined Claims." He did so, and on Dec. 15, 2008, the bankruptcy court held a hearing on the Undetermined Claims. The court rejected all of them. In particular, it held that "proof of claim numbers 164, 171, 172, 175, and 178 assert common equity interests at best and that insufficient evidence of the value of the interests was presented." As for the remaining Undetermined Claims, the bankruptcy court held that "proof of claim numbers 174, 179, and 180 assert claims against non-debtor entities for which the Reorganized Debtors are not liable." Mr. Grossman personally signed the notice of appeal to the district court on behalf of various claimants. The claimants' attorney, Jessica Sokol, Esq., did not sign the document, as she was not admitted to practice in the Western District of Texas and had not secured a pro hoc vice admission. The other claimants were aware of the deficiency in their notice of appeal on or before April 7, 2009, when the clerk of court sent a Notice of Filing Discrepancies to several of their lawyers. Approximately one month later, on April 5, 2009, Lothian moved to dismiss the appeal. Because Mr. Grossman had no authority to sign the notice of appeal for anyone other than himself, the district court held that "the instant appeal must be limited to those claims, if any, asserted by Israel Grossman personally." Following the district court's decision, the so-called "Other Claimants" failed to file a notice of appeal. The district court affirmed in part and reversed in part the bankruptcy court's ruling. It reversed the recharacterization of claims 164 and 171 as equity, "declin[ing] to extend the concept of debt recharacterization to a non-insider creditor." The district court cited the Fifth Circuit's 11-factor test for distinguishing between debt and equity. Jones v. United States, 659 F.2d 618, 622 n.12 (5th Cir. 1981). Perceiving a rule against recharacterization for all but "insiders," however, the district court did not apply the factors to the Lothian case. On all but the recharacterization issue, the district court affirmed the bankruptcy court's ruling in favor of the debtors. Lothian appealed to the Fifth Circuit, challenging the district court's recharacterization decision; Mr. Grossman cross-appealed, contesting the remainder of the district court's holdings. He argues for the first time on appeal that the settlement agreement cannot impose a cap on his recovery for the Undetermined Claims because Lothian has opposed Mr. Grossman's efforts to recover from third parties, negating consideration for the settlement. The Fifth Circuit did not reach this newly raised argument, as it is waived. In an Aug. 9, 2011 decision, the Fifth Circuit reversed the district court's ruling on recharacterization. Chief Judge Edith H. Jones, who wrote the opinion, held that the district court applied a per se rule to prohibit bankruptcy courts from recharacterizing contributions from anyone but corporate insiders. The court therefore omitted any analysis on the merits of whether the agreements between Mr. Grossman and Lothian represent debt or equity. Judge Jones said recharacterization extends beyond insiders and is part of the bankruptcy courts' authority to allow and disallow claims under 11 U.S.C. Sec. 502. Judge Jones said Texas law controls the agreements underlying Mr. Grossman's claims and held that because Texas law would not have recognized Mr. Grossman's claims as asserting a debt interest, the bankruptcy court correctly disallowed them as debt and recharacterized the claims as equity interests. The case is ISRAEL GROSSMAN, Appellee Cross-Appellant. LISTOKIN TRUST, SHORIVGER TRUST, AKBERALI KHAKEE PENSION PLAN, LOTHIAN CASSIDY, L.L.C., SHOSHANA TRUST, DEUTSCH-SOKOL TRUST, ANNA MEISHER PENSION PLAN, 731 895 866, L.L.C., PENSION SOLUTIONS, L.L.C., MYG TRUST, HERZBERG FAMILY TRUST, JESSICA SOKOL, Cross-Appellants, v. LOTHIAN OIL INCORPORATED, Jointly Administered Member Cases; Lothian Oil (USA) Inc., Lothian Oil Texas I, Inc., Lothian Oil Texas II, Inc., Lothian Oil Investments I, Inc., Lothian Oil Investments II, Inc., and LeaD I JVGP, Inc., Appellant Cross- Appellee, No. 10-50683 (5th Cir.). The appellate panel consists of Circuit Judges Jones, Patrick Errol Higginbotham and Leslie H. Southwick. A copy of the Fifth Circuit's decision is available at http://is.gd/K1u1JMfrom Leagle.com. About Lothian Oil Based in Midland, Texas, Lothian Oil Inc. was a privately owned oil and gas company. Lothian and six affiliates filed for chapter 11 protection on June 13, 2007 (Bankr. W.D. Tex. Case No. 07-70121). The Debtors were represented by lawyers at Haynes and Boone, LLP. When Lothian sought bankruptcy, it listed assets and debts between $1 million to $100 million. On June 27, 2008, the bankruptcy court confirmed a plan of liquidation. LYMAN LUMBER: U.S. Trustee Names 5 Members to Creditors Panel ------------------------------------------------------------- The U.S. Trustee for Region 12 appointed five creditors to the Official Committee of Unsecured Creditors in the bankruptcy case of Lyman Holding Company and its affiliates: (1) John N. Wedekind 16765 Luther Way Eden Prairie, MN 55346 Tel: (952) 949-8955 (2) James G. Penberthy 264 Water Street Excelsior, MN 55331 Tel: (952) 474-1188 (3) Timothy C. Reuter Central States Pension Fund 9377 W. Higgins Rod Rosemont, IL 60018 Tel: (847) 518-9800 Ext. 3481 (4) Thea Dudley Division Credit Director Guardian Building Products 979 Batesville Road Greer, SC 29651 Tel: 864-281-3571 (5) Gerald Manion Manion Wholesale Building Supplies Inc. 1300 Garfield Ave PO Box 753 Superior, WI 54880 Tel: (715) 394-6605 John N. Wedekind has been designated as acting chairperson until the committee can meet and elect their own chairperson. Habbo G. Fokkena, the United States Trustee for Region 12, may be reached through: Sarah J. Wencil, Esq. Trial Attorney U.S. Trustee's Office 300 South Fourth St., #1015 Minneapolis, MN 55415 Tel: (612) 334-1350 E-mail: Sarah.J.Wencil@usdoj.gov About Lyman Lumber Lyman Lumber Company sells building supplies, such as framing beams, roofing materials, siding and drywall to residential builders. The 113-year old company and several affiliates sought Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on Aug. 4, 2011. Judge Dennis O'Brien presides over the cases. James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Bryon, P.A., serve as bankruptcy counsel. Lyman Lumber estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petition was signed by James E. Hurd, president and chief executive officer. The affiliates that filed for Chapter 11 are: Lyman Holding Company; Automated Building Components, Inc.; Building Material Wholesalers; Carpentry Contractors Corp.; Construction Mortgage Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin, Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville Lumber, Inc.; and Woodinville Construction Services LLC. Lyman Lumber has signed a letter of intent to sell its Midwestern assets to SP Asset Management LLC, an affiliate of Steel Partners Holdings L.P. New York City-based Steel Partners is a diversified holding company that owns and operates businesses in a variety of industries. The purchase price was not disclosed. LYMAN LUMBER: Sec. 341 Creditors' Meeting Set for Sept. 9 --------------------------------------------------------- Habbo G. Fokkena, the United States Trustee for Region 12, will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy cases of Lyman Lumber Company and its affiliates on Sept. 9, 2011, at 1:30 p.m. at Mtg Minneapolis - US Courthouse, 300 S. 4th St. 10th Floor. The last day to object to discharge is Nov. 8, 2011. Proofs of claim are due by Dec. 8, 2011. About Lyman Lumber Lyman Lumber Company sells building supplies, such as framing beams, roofing materials, siding and drywall to residential builders. The 113-year old company and several affiliates sought Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on Aug. 4, 2011. Judge Dennis O'Brien presides over the cases. James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Bryon, P.A., serve as bankruptcy counsel. Lyman Lumber estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petition was signed by James E. Hurd, president and chief executive officer. The affiliates that filed for Chapter 11 are: Lyman Holding Company; Automated Building Components, Inc.; Building Material Wholesalers; Carpentry Contractors Corp.; Construction Mortgage Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin, Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville Lumber, Inc.; and Woodinville Construction Services LLC. Lyman Lumber has signed a letter of intent to sell its Midwestern assets to SP Asset Management LLC, an affiliate of Steel Partners Holdings L.P. New York City-based Steel Partners is a diversified holding company that owns and operates businesses in a variety of industries. The purchase price was not disclosed. LYMAN LUMBER: Can Use Up to $9MM of Lenders' Cash Through Aug. 26 ----------------------------------------------------------------- Lyman Lumber Company obtained permission from the Bankruptcy Court to use, on an interim basis beginning on the petition date and ending Aug. 26, 2011, up to $9,259,212 of the cash collateral of these lenders: * U.S. Bank National Association, as agent; * TCF National Bank; * BMO Harris Bank N.A., successor-by-merger to M&I Marshall & Ilsley Bank; * Bank of America, N.A., successor through merger to Bank of America National Trust & Savings Association; * Wells Fargo Bank, National Association; * JPMorgan Chase Bank, N.A.; and * The Prudential Insurance Company of America As of the bankruptcy filing date, the outstanding amount of the Debtors' obligations to the Prepetition Lenders totaled $19,027,000, plus accrued and unpaid interest, fees, expenses, and other Obligations, if any. The termination date under the Prepetition Financing Documents was Aug. 1, 2011. As adequate protection, the lenders are granted replacement liens on and security interests in all of the Debtors' assets. The liens exclude claims or causes of action under 11 U.S.C. Sections 544, 545, 547, 548, 549, or 550 but will include the proceeds of Avoidance Actions recovered by the Debtors to the extent the court includes those provision in the final order for use of cash collateral. A final cash collateral hearing will be held on Aug. 25, 2011, at 10:00 am. In their motion, the Debtors request interim authorization to use cash collateral through the end of the week beginning Aug. 22, 2011, and final authorization to use cash collateral through Oct. 31, 2011. The Debtors' motion also indicated that with respect to a putative lien of BlueLinx Corporation, the Debtors will provide adequate protection during the interim period by segregating and retaining proceeds from sales of consignment stock, subject to whatever interests BlueLinx may hold, until such time as the Debtors can determine the validity and priority of such interests. The Interim Cash Collateral Order does not include a provision related to BlueLinx. Lyman Lumber and BlueLinx are parties to a Consignment Agreement under which (a) vinyl siding and vinyl siding accessories and (b) metal soffit and installation accessories are to be delivered, stored, reported, sold, and paid for. As of June 30, 2011, Lyman Lumber had in its possession Consignment Stock with an approximate value of $6,000 that was delivered prior to July 1, 2009, and approximately $444,000 worth of Consignment Stock delivered after that date. As of the Filing Date, Lyman Lumber estimates that the outstanding amount due to BlueLinx on account of prepetition sales of Consignment Stock is approximately $128,000. The Debtors will use cash collateral to pay essential business expenses, which include wages and benefits to employees, payroll taxes, and sales taxes, as well as payments to utilities, trade vendors for postpetition purchases, and other parties that supply essential goods and services to the Debtors. About Lyman Lumber Lyman Lumber Company sells building supplies, such as framing beams, roofing materials, siding and drywall to residential builders. The 113-year old company and several affiliates sought Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on Aug. 4, 2011. Judge Dennis O'Brien presides over the cases. James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Bryon, P.A., serve as bankruptcy counsel. Lyman Lumber estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petition was signed by James E. Hurd, president and chief executive officer. The affiliates that filed for Chapter 11 are: Lyman Holding Company; Automated Building Components, Inc.; Building Material Wholesalers; Carpentry Contractors Corp.; Construction Mortgage Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin, Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville Lumber, Inc.; and Woodinville Construction Services LLC. Lyman Lumber has signed a letter of intent to sell its Midwestern assets to SP Asset Management LLC, an affiliate of Steel Partners Holdings L.P. New York City-based Steel Partners is a diversified holding company that owns and operates businesses in a variety of industries. The purchase price was not disclosed. LYMAN LUMBER: Asks Court to Approve Fredrikson & Byron Hiring ------------------------------------------------------------- Lyman Lumber Company and its affiliate debtors ask the Court to approve their employment of Fredrikson & Byron, P.A., as bankruptcy counsel. Fredrikson & Byron is currently among the three largest law firms in Minnesota, with annual revenues exceeding $100 million. The Debtors said they have paid Fredrikson & Byron a retainer of $260,000 prior to filing to secure payment for services provided prior to the Chapter 11 cases. The Prepetition Retainer was paid by Lyman Lumber Company in April 2008 and July 2008 on behalf of all of the Debtors and has been held continuously since then. In the days leading up to the Filing Date, Fredrikson & Byron applied $109,960.90 of the Prepetition Retainer to outstanding prepetition fees which were incurred in the roughly 30 days before the Filing Date and the Debtors funded a "Chapter 11 Retainer" with the injection of $122,420.90 in new funds plus the remaining balance of the Prepetition Retainer. The Chapter 11 Retainer balance is $272,468.00. The Debtors have agreed that Fredrikson & Byron will hold the Chapter 11 Retainer in trust for application against its final allowed fees, the case filing fees, and the fees and expenses incurred in the several days prior to the Filing Date, which may not have been fully paid pre-filing. Because the petitions in these cases were filed on an emergency basis, the Debtors were unable to pay fees and expenses incurred in the 7-10 days prior to the Filing Date in connection with the preparations for bankruptcy. James L. Baillie, Esq., a shareholder at Fredrikson & Byron, said the Debtors have paid to the firm fees and expenses in excess of $1.5 million, including fees and expenses in the 90 days prior to the filing date. The Debtors also provided to Fredrikson & Byron $10,000 to be paid to a public relations firm to provide assistance regarding communications with vendors, customers, employees and other constituents, which Fredrikson & Byron paid on Aug. 4, 2011, to the public relations firm as a non-refundable fee for services provided and to be provided. To the extent that the Debtors require services beyond those already paid, they will file an application to employ the public relations firm. Mr. Baillie disclosed that his firm currently represents Lighthouse Management Group, Inc., a consultant to the Debtors' Prepetition Lenders in the bankruptcy cases, on matters unrelated to the Debtors. From time to time in the past, Fredrikson & Byron has represented Alliance Management, a consultant to the Debtors in these cases, on matters unrelated to the Debtors. Mr. Baillie attests that Fredrikson & Byron does not hold or represent any interest adverse to the estate, and Fredrikson & Byron is a "disinterested person," within the meaning of 11 U.S.C. Sec. 327(a). About Lyman Lumber Lyman Lumber Company sells building supplies, such as framing beams, roofing materials, siding and drywall to residential builders. The 113-year old company and several affiliates sought Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on Aug. 4, 2011. Judge Dennis O'Brien presides over the cases. Lyman Lumber estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petition was signed by James E. Hurd, president and chief executive officer. The affiliates that filed for Chapter 11 are: Lyman Holding Company; Automated Building Components, Inc.; Building Material Wholesalers; Carpentry Contractors Corp.; Construction Mortgage Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin, Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville Lumber, Inc.; and Woodinville Construction Services LLC. Lyman Lumber has signed a letter of intent to sell its Midwestern assets to SP Asset Management LLC, an affiliate of Steel Partners Holdings L.P. New York City-based Steel Partners is a diversified holding company that owns and operates businesses in a variety of industries. The purchase price was not disclosed. MACCO PROPERTIES: NBC to Take Over Oklahoma and Texas Assets ------------------------------------------------------------ The Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma NBC is granted NBC Oklahoma Bank relief from the automatic stay to permit it to enforce its state law rights with respect to its collateral including these real properties: All of Lot 7 Block 36B in Blocks 36A and 36B, Nichols Hills, Oklahoma County, Oklahoma; and Unit 18D, and the space encompassed by the boundaries thereof, the limited common elements appurtenant thereto, together with an 0.114% undivided interest in the general common elements located in and being part of The Claridge, a condominium project in the City of Dallas, Dallas County, Texas. NBC is a secured creditor of Macco pursuant to two promissory notes executed by MACCO in favor of NBC. The Notes, which have a combined balance (including taxes) of roughly $2,510,000, are secured by property with a combined estimated value of approximately $2,650,000. The value of the Oklahoma Property is believed to be $1,650,000, and the value of the Texas Property is believed to be $1,000,000. According to NBC, its interests in the Oklahoma Property and the Texas Property are not adequately protected. Given the values of the Oklahoma Property and the Texas Property, NBC is entitled to claim interest accruing at the contract rate under the terms of the Notes. However, given the rates of accrual, NBC's slim equity cushions in the Oklahoma Property and the Texas Property are rapidly evaporating. Additionally, unpaid property taxes in Oklahoma and Texas are accruing interest and penalties that are further eroding NBC's equity cushion. 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: Trustee May Use Settlement Funds to Pay Expenses ------------------------------------------------------------------ The Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma authorized, on a final basis, Michael E. Deeba, the Chapter 11 trustee in the case of Macco Properties, Inc., to expend funds outside the ordinary course of business. The funds to expend are from the settlement funds held pursuant to the Court's June 13, 2011, order in an amount not to exceed $300,000 for purposes of paying expenses for payroll, utilities and insurance on behalf of the apartment complexes. 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: Court Denies Adeq. Protection Payment to Price ---------------------------------------------------------------- The Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma denied the motion of Jennifer Price to compel the Chapter 11 trustee to make adequate protection payments immediately. Ms. Price is the sole shareholder of Macco. Ms. Price's husband, Lew McGinnis is the president of Macco. Ms. Price, asked the Court to enter an interim order, (a) approving adequate protection payments to certain mortgage-based secured claims effective immediately; and (b) compelling Michael E. Deeba, Chapter 11 trustee, to make payments immediately. According to Ms. Price, on July 7, 2011, the trustee failed to pay $17,800 on a mortgage-secured loan given by Omega Enterprises, LLC, on real estate owned by Reserve Properties, L.L.C., a Macco owned LLC. As a consequence of the trustee's failure, the loan has been accelerated, the total amount of $355,000 is now due and owing, and the lender is in a position to foreclose on the property. Ms. Price added that there is no basis to withhold postpetition payments to the creditors of the claims, which are entitled to adequate protection of their collateral. The Chapter 11 trustee has not indicated any intention to pay these postpetition mortgage obligations. 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. MACCO PROPERTIES: To Pay $400,000 as Settlement for Dispute ----------------------------------------------------------- The Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma approved the settlement of disputed matter with Cobblestone Apartments of Tulsa, LLC, an Oklahoma limited liability company, and the Larry D. Jeanette A. Jamison Family Trust, parties-in-interest in the Chapter 11 case of Macco Properties, Inc. Pursuant to the settlement entered on June 7, 2011, the movants may enter a judgment against the Debtor in the sum of $400,000 against the Debtor in the Tulsa County District Court, Case No. CJ-2009-1548. As reported in the Troubled Company Reporter on June 24, the jury trial against the Debtor and other defendants commenced but the jury was unable to reach a verdict. As a result, the parties entered into an agreement to settle the State Court Proceeding. The settlement provides: a. The parties agreed to continue the matter until a hearing on June 20, 2011, for the entry of a judgment against the Debtor and the defendant, SEP Cobblestone Apartments, LLC, in the sum of $400,000. The defendants could satisfy the judgment by paying $300,000 on or June 20, 2011. b. In the event the settlement payment was not paid on or before June 20, 2011, the $400,000 would be entered in the State Court Proceeding and would constitute an unsecured claim in this bankruptcy proceeding. c. Any of the Defendants could satisfy the outstanding judgment amount of $400,000 prior to July 19, 2011. d. In the event the Defendants did not satisfy such judgment on or before July 19, 2011, a separate judgment would be entered in the State Court Proceeding against Lew S. McGinnis and Jennifer Price, jointly and severally, for $300,000. 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: Redmond & Nazar OK'd to Handle Parkwood Suit -------------------------------------------------------------- The Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma authorized Michael E. Deeba, the Chapter 11 trustee in the Chapter 11 case of Macco Properties, Inc., to retain W. Thomas Gilman of the firm of Redmond & Nazar, LLPC as special counsel. As reported in the Troubled Company Reporter on Aug. 10, 2011, 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. MARCO POLO: Seeks Extra Funding to Protect Tanker Ships ------------------------------------------------------- Dow Jones' DBR Small Cap reports that Marco Polo Seatrade B.V. is seeking emergency approval of a loan to stabilize its operations while previously requested funding is held up in a dispute. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. The petition said assets and debt are both more than US$100 million and less than US$500 million. NEBRASKA BOOK: U.S. Appoints 2 Members to Creditor's Panel ---------------------------------------------------------- Roberta A. Deangelis, Acting United States Trustee for Region 3, under 11 U.S.C. Sec. 1102(a) and (b), appointed two unsecured creditors to serve on the Official Committee of Unsecured Creditors of Nebraska Book Company, Inc. The Creditors Committee members are: 1. U.S. Bank National Association ATTN: James E. Murphy, 100 Wall Street, Suite 1600, New York, NY 10005, Tel: (212) 361-6174, Fax: (212) 514-6841 2. The Bank of New York Mellon Trust Company N.A. as Trustee ATTN: David M. Kerr 101 Barclay Street New York, NY 10283 Tel: (212) 815-5650 Fax: (732) 667-9322 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. NELSON & ASSOCIATES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Nelson & Associates, Inc. 12816 Leffingwell Road Santa Fe Springs, CA 90670-0000 Bankruptcy Case No.: 11-43751 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Sandra R. Klein Debtor's Counsel: Ron Bender, Esq. LEVENE, NEALE, BENDER, YOO & BRILL LLP 10250 Constellation Blvd Ste 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 E-mail: rb@lnbrb.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-43751.pdf The petition was signed by Todd J. Nelson, president. NEONODE INC: Incurs $2.7 Million Net Loss in Second Quarter ----------------------------------------------------------- Neonode, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on form 10-Q reporting a net loss of $2.72 million on $283,000 of net revenues for the three months ended June 30, 2011, compared with a net loss of $13.80 million on $123,000 of net revenues for the same period during the prior year. The Company also reported a net loss of $12.44 million on $822,000 of net revenues for the six months ended June 30, 2011, compared with a net loss of $16.04 million on $269,000 of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $5.99 million in total assets, $9.99 million in total liabilities and a $4 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/5Bz1Vb About Neonode Inc. Lafayette, Calif.-based Neonode Inc. (OTC BB: NEON) -- http://www.neonode.com/-- provides optical touch screen solutions for hand-held and small to midsize devices. KMJ Corbin & Company, LLP, in Costa Mesa, Calif., expressed substantial doubt about Neonode Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and has used substantial amounts of working capital in its operations since inception, and at Dec. 31, 2010, has a working capital deficit of $9.9 million and an accumulated deficit of $112.2 million. The Company reported a net loss of $31.6 million on $440,000 of revenues for 2010, compared with a net loss of $14.9 million on no revenue for 2009. NEW ERA HOSPITALITY: Sec. 341 Creditors' Meeting Set for Sept. 20 ----------------------------------------------------------------- The U.S. Trustee for the Southern District of Texas will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the Chapter 11 case of New Era Hospitality, Inc., on Sept. 20, 2011, at 3:00 p.m. at Houston, 515 Rusk Suite 3401. Proofs of Claim are due by Dec. 19, 2011. Houston, Texas-based New Era Hospitality Inc. filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 11-36492) on July 30, 2011, to avoid foreclosure of its hotel property at 801 St. Joseph Parkway. Money woes stalled its hotel construction plans. Judge Karen K. Brown presides over the case. Samuel L. Milledge, Esq., Milledge Law Firm, P.C., represents the Debtor. The Debtor disclosed $14,000,000 in assets, and $4,213,828 in debts. NGPL PIPECO: Fitch Affirms 'BB+' Rating on Sr. Unsecured Debt ------------------------------------------------------------- Fitch Ratings has affirmed the Issuer Default Rating (IDR) and senior unsecured debt ratings for NGPL PipeCo LLC at 'BB+'. A total of $3 billion of senior unsecured debt is affected by the rating action. The Rating Outlook has been revised to Negative from Stable. The rating action reflects the phased-in reduction of cash flows through 2012 resulting from NGPL's uncontested rate settlement which was approved by FERC in July 2010. The settlement mandated phased-in decreases in NGPL's base recourse rates and fuel retention factors. An additional temporary drain on cash is a pipeline stress corrosion testing program currently being undertaken by the company. Fitch expects NGPL's calendar 2012 debt/EBITDA and FFO/debt to approximate 6.2 times (x) and 7%, respectively. Credit ratios will likely modestly improve thereafter when corrosion testing expenses lessen. Other credit concerns include: the relatively short average term of NGPL's transportation contracts of approximately 2.8 years and the related re-contracting risk; the limiting effect the reduced cash flows has on the company's operating flexibility and strategies; and NGPL's ability to efficiently refinance its $1.25 billion of notes that will mature in December 2012. Favorable considerations include NGPL's strong Chicago/Midwest market franchise, its high-quality and reliable utility customer base, a strong demand for storage services, limited liquidity needs, and its long record of successfully managing contract rollovers. Furthermore, the settlement has enhanced the quality of future cash flows and lowered financial volatility, particularly as it relates to fuel retention revenues. Also, the resulting lower overall transportation costs has improved NGPL's competitive position and enhance its ability to re-contract at maximum rates. NGPL is 80% owned by Myria Acquisition Inc. (Myria), a consortium of investors including Brookfield Infrastructure Partners, SteelRiver Infrastructure Fund North America, a Canadian pension fund and a Netherlands pension fund and 20% owned by Kinder Morgan Kansas, Inc. (IDR rated 'BB+' with a Stable Outlook by Fitch) OMNICOMM SYSTEMS: Posts $997,312 Net Loss in Second Quarter ----------------------------------------------------------- OmniComm Systems, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $997,312 on $3.4 million of revenues for the three months ended June 30, 2011, compared with net income of $216,014 on $3.2 million of revenues for the same period last year. The Company reported a net loss of $4.9 million on $6.7 million of revenues for the six ended June 30, 2011, compared with a net loss of $1.3 million on $5.9 million of revenues for the same period last year. The Company's balance sheet at June 30, 2011, showed $2.8 million in total assets, $25.4 million in total liabilities, and a stockholders' deficit of $22.6 million. Webb & Company, P.A., in Boynton Beach, Fla., expressed substantial doubt about OmniComm Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has a net loss attributable to common shareholders of $3,335,869, a negative cash flow from operations of $1,953,919, a working capital deficiency of $9,400,947 and a stockholders' deficiency of $17,814,029. A copy of the Form 10-Q is available at http://is.gd/4Pf4vl Ft. Lauderdale, Fla.-based OmniComm Systems, Inc. (OTC: OMCM.OB) -- http://www.OmniComm.com/-- provides customer-driven Internet solutions to pharmaceutical, biotechnology, research and medical device organizations that conduct life changing clinical trial research. OmniComm Systems, Inc has U.S. headquarters in Fort Lauderdale, Fla. and European headquarters in Bonn, Germany, with satellite offices in New Jersey and the United Kingdom, as well as sales offices throughout the U.S. and Europe. ORAGENICS INC: Posts $2.4-Mil. Net Loss in Second Quarter --------------------------------------------------------- Oragenics, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.374 million on $347,569 of revenues for the three months ended June 30, 2011, compared with a net loss of $2.01 million on $304,696 of revenues for the same period last year. The Company reported a net loss of $3.9 million on $697,506 of revenues for the six months ended June 30, 2011, compared with a net loss of $3.8 million on $646,179 of revenues for the same period last year. The Company's balance sheet at June 30, 2011, showed $1.3 million in total assets, $6.3 million in total liabilities, and a stockholders' deficit of $5.0 million. As reported in the TCR on April 5, 2011, Kirkland, Russ, Murphy & Tapp, P.A., in Clearwater, Fla., expressed substantial doubt about Oragenics' ability to continue as a going concern, following the Company 2010 results. The independent auditors noted that the Company has incurred recurring operating losses, negative operating cash flows and has an accumulated deficit. A copy of the Form 10-Q is available at http://is.gd/HftqhW About Oragenics Inc. Tampa, Fla.-based Oragenics, Inc. -- http://www.oragenics.com/-- is a biopharmaceutical company focused primarily on oral health products and novel antibiotics. Within oral health, Oragenics is developing its pharmaceutical product candidate, SMaRT Replacement Therapy, and also commercializing its oral probiotic product, ProBiora3. Within antibiotics, Oragenics is developing a pharmaceutical candidate, MU1140-S and intends to use its patented, novel organic chemistry platform to create additional antibiotics for therapeutic use. OUR FAMILY: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Our Family Investments, Inc. P.O. Box 330108 Atlantic Beach, FL 32233 Bankruptcy Case No.: 11-05856 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Taylor J. King, Esq. LAW OFFICES OF MICKLER & MICKLER 5452 Arlington Expressway Jacksonville, FL 32211 Tel: (904) 725-0822 Fax: (904) 725-0855 E-mail: court@planlaw.com Scheduled Assets: $873,700 Scheduled Debts: $2,225,491 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb11-05856.pdf The petition was signed by Chris Hionides, president. PALM HARBOR: Plan Promises Up to 21% Recovery for Unsecureds ------------------------------------------------------------ Carla Main at Bloomberg News reports that Palm Harbor Homes Inc. filed a liquidation plan supported by unsecured creditors who would receive a recovery of as much as 21%. According to the disclosure statement, the primary purpose of the plan is to provide for the orderly liquidation and distribution of the assets. Under the plan, a trust would be created to distribute cash and liquidate any remaining assets, court papers show. Holders of 3.25% senior notes, owed about $54.8 million, and general unsecured creditors would get as much as 21% on their claims. Holders of Palm Harbor stock, which traded at $2.15 a share a year ago, wouldn't receive any recovery. The company scheduled a Sept. 13 hearing to seek court 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. PLATINUM PROPERTIES: Wants Forbearance Deal with BofA Amended ------------------------------------------------------------- Platinum Properties, LLC, and PPV, LLC, ask the U.S. Bankruptcy Court for the Southern District of Indiana for authority to amend forbearance agreement with Bank of America, as successor by merger to LaSalle Bank National Association, PPV, and the guarantors. The amendment will authorize the Debtors to execute and deliver the First Amendment to Second Forbearance Agreement, reducing the minimum lot sale price and the release price for the additional lots. It is also a modification of the terms and conditions pursuant to which BofA consents to the Debtors' use of cash collateral. The cash collateral would fund the purchases contemplated in the assumption motion. The Debtors explain that if the amendment motion and the assumption motion are not granted, the Debtors' reorganization efforts will be impaired by the loss of otherwise available revenue and reduction of the BofA obligations that would occur upon the sale of the additional lots. About Platinum Properties and PPV LLC Indianapolis, Indiana-based Platinum Properties, LLC, is a residential real estate developer. Platinum acquires land, designs the projects, obtains zoning and other approvals, and constructs roads, drainage, utilities, and other infrastructure of residential subdivisions. Platinum then sells the finished, platted lots. Platinum also has an ownership interest in several special purpose entities that in turn own, operate and manage individual projects. PPV LLC is a joint venture between Platinum and a non-debtor entity, Pittman Partners, Inc., each of whom hold an equity interest in PPV. PPV owned four projects directly and owns 100% of the membership interest of Sweet Charity Estates, LLC. Platinum Properties and PPV LLC filed for Chapter 11 protection (Bankr. S.D. Ind. Case Nos. 11-05140 and 11-05141) on April 25, 2011. Lawyers at Baker & Daniels serve as the Debtors' bankruptcy counsel. Platinum Properties disclosed $14,624,722 in assets and $181,990,960 in liabilities as of the Chapter 11 filing. The U.S Trustee has not yet appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. POINT BLANK: Ex-Chief to Plead to Tax Charges, Lawyer Says ---------------------------------------------------------- Carla Main at Bloomberg News reports David Brooks will plead guilty to tax charges, his lawyer said. A federal jury found Mr. Brooks guilty last year of committing a $185 million fraud and looting the company, formerly called DHB Industries Inc., to pay for personal expenses. He hasn't been sentenced yet. Three tax counts were separated from the other charges he was convicted of, including insider-trading, fraud and obstruction of justice. He has asked for a new trial on those charges. "We are channeling our efforts into the other counts," Mr. Brooks' lawyer Gerald L. Shargel said in a phone interview Aug. 9. The plea hearing was scheduled for Aug. 10. The criminal case is U.S. v. Brooks, 06- CR-550, U.S. District Court, Eastern District of New York (Central Islip). About Point Blank Headquartered in Pompano Beach, Florida, Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, as well as select international markets. The Company maintains facilities in Pompano Beach, Florida, and Jacksboro, Tennessee. The Company's former chief executive officer and chief operating officer were convicted in September 2010 of orchestrating a $185 million fraud. Point Blank Solutions, formerly DHB Industries, filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq., David M. Bertenthal, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves as corporate counsel. T. Scott Avila of CRG Partners Group LLC is the restructuring officer. Epiq Bankruptcy Solutions serves as claims and notice agent. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Equity Security Holders in the case. Ian Connor Bifferato, Esq., and Thomas F. Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein, Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq., at Baker & McKenzie LLP, serve as counsel for the Official Committee of Equity Security Holders. Robert M. Hirsh, Esq., and George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to the Creditors Committee, and Frederick B. Rosner, Esq., and Brian L. Arban, Esq., at the Rosner Law Group LLC, serve as co-counsel. QUANTUM FUEL: Amends Form S-3 Registration Statement ---------------------------------------------------- Quantum Fuel Systems Technologies Worldwide, Inc., filed with the U.S. Securities and Exchange Commission Amendment No.1 to Form S-3 registration statement relating to resale by the selling security holders of up to 4,810,681 shares of the Company's common stock, consisting of (i) 2,504,927 shares of common stock that were issued in a private placement that the Company completed in June 2011 and (ii) 2,305,754 shares of the Company's common stock issuable upon the exercise of warrants, of which 2,272,452 of such warrants were issued in the June private placement and 33,302 of such warrants were issued in a private placement that we completed in May 2011. The Company is not selling any shares of common stock in this offering and, therefore, will not receive any proceeds from this offering. The Company will, however, receive proceeds from the exercise price of the warrants if and when these warrants are exercised by the selling security holders for cash. The Company will bear all of the expenses and fees incurred in registering the shares offered by this prospectus. The Company's common stock is quoted on The Nasdaq Global Market under the symbol "QTWW." The last reported sale price of the Company's common stock on Aug. 2, 2011, was $4.11 per share. The Company's warrants are not and will not be listed for trading on any exchange. A full-text copy of the amended prospectus is available at no charge at http://is.gd/VeS9Ab About Quantum Fuel Based in Irvine, California, Quantum Fuel Systems Technologies Worldwide, Inc., is a fully integrated alternative energy company and considers itself a leader in the development and production of advanced clean propulsion systems and renewable energy generation systems and services. Quantum Fuel and its senior lender, WB QT, LLC, entered into a Ninth Amendment to Credit Agreement and a Forbearance Agreement on Jan. 3, 2011. The Senior Lender agreed to provide the Company with a $5.0 million non-revolving line of credit, which may be drawn upon at any time prior to April 30, 2011. Advances under the New Line of Credit do not bear interest -- unless an event of default occurs, in which case the interest rate would be 10% per annum -- and mature on April 30, 2011. The Senior Lender also agreed to forbear from accelerating the maturity date for any portion of the Senior Debt Amount and from exercising any of its rights and remedies with respect to the Senior Debt Amount until April 30, 2011. The Company reported a net loss attributable to stockholders of $11.03 million on $20.27 million of total revenue for the year ended Apri1 30, 2011, compared with a net loss attributable to stockholders of $46.29 million on $9.60 million of total revenue during the prior year. The Company's balance sheet at April 30, 2011, $71.97 million in total assets, $33.39 million in total liabilities and $38.57 million in total equity. Ernst & Young LLP, in Orange County, California, noted that Quantum Fuel's recurring losses and negative cash flows combined with the Company's existing sources of liquidity and other conditions raise substantial doubt about the Company's ability to continue as a going concern. Possible Bankruptcy The Company anticipates that it will need to raise a significant amount of debt or equity capital in the near future in order to repay certain obligations owed to the Company's senior secured lender when they mature. As of June 15, 2011, the total amount owing to the Company's senior secured lender was approximately $15.5 million, which includes approximately $12.5 million of principal and interest due under three convertible promissory notes that are scheduled to mature on Aug. 31, 2011, and a $3.0 million term note that is potentially payable in cash upon demand beginning on Aug. 1, 2011, if the Company's stock is below $10.00 at the time demand for payment is made. If the Company is unable to raise sufficient capital to repay these obligations at maturity and the Company is otherwise unable to extend the maturity dates or refinance these obligations, the Company would be in default. The Company said it cannot provide any assurances that it will be able to raise the necessary amount of capital to repay these obligations or that it will be able to extend the maturity dates or otherwise refinance these obligations. Upon a default, the Company's senior secured lender would have the right to exercise its rights and remedies to collect, which would include foreclosing on the Company's assets. Accordingly, a default would have a material adverse effect on the Company's business and, if the Company's senior secured lender exercises its rights and remedies, the Company would likely be forced to seek bankruptcy protection. QUINCY MEDICAL: Says Patient Care Ombudsman Appointment Not Needed ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Massachusetts will convene a hearing on Aug. 29, 2011 at 10:00 a.m., to consider Quincy Medical Center, Inc., et al.'s request for an entry of an order excusing the appointment of a patient care ombudsman in the Chapter 11 cases. The Company relates that appointment of a patient care ombudsman is not appropriate in the cases, and might prove counterproductive to the Company's pending sale effort. Specifically, the Debtor notes that: i) the Company delivers high quality, award-winning patient care; ii) appointment of a patient care ombudsman would likely distract the Company from its current efforts to maintain high- quality patient care during its pending sale process; and iii) the Company's hospital and related medical care business is likely to be sold near the time any patient care ombudsman could appropriately assess and report on patient care matters, and before any possible patient care recommendations could be implemented. The Company has conferred with each of the Creditors' Committee, the Indenture Trustee for the Company's 2008 MHEFA bond issue (the Company's principal secured creditor and cash collateral lender), the Office of the U.S. Trustee, and the Office of the Attorney General of the Commonwealth of Massachusetts. The Creditors' Committee and the Indenture Trustee have no objection to the relief sought. The Office of the U.S. Trustee and the Office of the Massachusetts Attorney General have indicated that they believe a patient care ombudsman must be appointed. 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: Wants to Auction Substantially All Assets --------------------------------------------------------- Quincy Medical Center, Inc., et al., asks the U.S. Bankruptcy Court for the District of Massachusetts for authority to sell substantially all assets in an auction led by Steward Medical Holdings Subsidiary Five, Inc. The Debtors with the assistance of its financial advisor Navigant Capital Advisors, LLC, intends to sell assets utilized by the Company in operating its business. The assets are subject to various liens and security interests, including those asserted by U.S. Bank National Association, as trustee for holders of $60,250,000 of Massachusetts Health and Educational Facilities Authority Revenue Bonds, Quincy Medical Center Issue, Series A (2008); and Boston Medical Center Corporation. The assets will not be sold free and clear of certain purchase money security interests. As reported in the Troubled Company Reporter on July 15, 2011, the board of the Quincy approved a deal to sell the hospital to Steward. The TCR reported that if Quincy can resolve its present $56 million in debt through bankruptcy proceedings, Steward has agreed to pay $38 million for the hospital and make no less than $34 million worth of improvements to its facilities in five years. That $38 million will have to satisfy all the creditors -- from the big bondholders to small creditors who have been supplying the hospital with everything from X-ray frames to cleaning supplies. Among the assets to be sold under the APA is QMC ED Physicians, Inc.'s 10% ownership interest in BMC NAB Business Trust, a Massachusetts business trust. Boston Medical Center Corporation, a Massachusetts charitable corporation, owns the other 90% interest in the trust. In addition, bidders may submit offers to purchase only the QED shares. Also among the assets to be sold under the APA are the Company's rights under certain unexpired leases of real and personal property, and under certain executory contracts, to be identified by Steward pursuant to APA, or by any winning bidder. Competing bids for the auction of the assets were due Aug. 8. A hearing will be held before the Hon. Melvin S. Hoffman on Aug. 17, at 11:00 a.m. to consider approval of the winning bidder in respect of which the Company will seek authority to assume and assign the assigned agreements designated by the winning bidder. The Court will consider the sale of the assets to Steward or the winning bidder at a hearing on Sept. 21, at 10:00 a.m. (prevailing Eastern Time). Objections, if any, are due Sept. 8. 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. As reported in the Troubled Company Reporter on Aug. 9, 2011, Quincy disclosed $71,214,530 in assets and $81,319,414 in liabilities. On July 12, 2011, the U.S. Trustee for the District of Massachusetts appointed the Official Committee of Unsecured Creditors. RADIOSHACK: Fitch Affirms 'BB' Rating on Senior Notes ----------------------------------------------------- Fitch Ratings has affirmed RadioShack's long-term Issuer Default Rating (IDR) at 'BB.' The Rating Outlook has been revised to Negative from Stable. As of June 30, 2011, RadioShack had $662 million of debt outstanding. Fitch has affirmed RadioShack's ratings as follows and revised the Outlook to Negative from Stable: -- Long-term IDR at 'BB'; -- Bank credit facility at 'BBB-'; -- Senior notes at 'BB'. The Outlook revision is due to an increase in leverage to the mid- 4 times (x) area, which is higher than Fitch's prior expectations which assumed leverage would remain in the 4x context. RadioShack's leverage has climbed in 2011 as EBITDA has fallen from $434 million at the end of 2010 to $372 million for the latest 12 months (LTM) period ending June 30, 2011. The recent slippage in EBITDA to below the $400 million level points to a departure from the trend reflected over the last several years. Despite the economic downturn, RadioShack's financial results over 2007 to 2010 had been relatively stable, as the company's revenues ranged from $4,035 million to $4,266 million and EBITDA was steady in the range of $410 to $480 million. Due to the EBITDA decline and uncertainty around stabilization in the business, Fitch now believes that leverage could be in the mid 4x range over the next 12 - 24 months. This incorporates Fitch's assumption of a flattish top line coupled with further operating margin contraction given the anticipated growth of the mobility platform. The ratings continue to reflect RadioShack's positive free cash flow (FCF) generation and adequate liquidity. Going forward Fitch believes that the pressures on the business profile will make it difficult to maintain historical EBITDA and FCF levels. Of Radioshack's three key product platforms, two are in decline (signature and consumer electronics). Fitch estimates that approximately half of revenues and 60% of gross margin dollars come from signature and consumer electronics. The third key product platform (mobility) is a lower-margin business operating in a competitive space where other larger players in the consumer electronics sector (such as Best Buy and Staples) are ramping up their efforts. Thus, RadioShack's longer term earnings growth prospects remain a concern. RadioShack's business profile, already pressured in light of the crowded and highly-commoditized consumer electronics space, is in the midst of several changes. On the positive front, the company announced that it has entered into an agreement with Verizon Wireless to provide wireless products in RadioShack stores beginning Sept. 15, 2011. However, it will cease offering T- Mobile wireless products in stores (but will continue to offer T- Mobile products in Target kiosks). This transition of exiting one carrier while ramping up on another is one driver of the sluggish operating performance in 2011. The company also saw weakness in its Sprint wireless sales due to a change in Sprint's upgrade program. This is expected to be a short-term timing delay whereby Sprint sales are expected to rebound in future quarters. Another recent drag on EBITDA stems from the transition out of the kiosk business at Sam's Club and simultaneous rollout into Target Mobile centers. The company made an accounting change to reclassify the kiosk operations located in Sam's Club stores to discontinued operations. These kiosks were transitioned to Sam's Club at June 30, 2011. While these may be short-term events, the resulting decline in EBITDA from $434 million at the end of 2010 to $372 million for the LTM period ending June 30, 2011 is not insignificant. Given the dynamics of the consumer electronics sector, Fitch believes that it is uncertain when RadioShack's business will stabilize. Radioshack has adequate liquidity with $552 million in cash and cash equivalents and $419 million available under its $450 million credit facility as of June 30, 2011. There are no borrowings under the facility; availability is net of $31 million letters of credit. During the second quarter of 2011, RadioShack carried out share repurchases in the amount of $101 million. These purchases complete its $610 million share repurchase authorization, thus Fitch does not anticipate further share repurchases in 2011. For 2012 onward, Fitch expects share repurchases in the $100 million context, a figure generally in line with the average over the last several years. RAY GUY: Ex-Raider Auctions Super Bowl Rings for $96,216 -------------------------------------------------------- Carla Main at Bloomberg News reports that former Raiders punter Ray Guy sold his three Super Bowl championship rings for $96,216 at auction to help pay his debts as part of a bankruptcy case. Mr. Guy, 61, who played in seven Pro Bowls during his 14-year career, filed for bankruptcy protection in Augusta, Georgia, in April 2010 and won approval in May to sell the rings. Los Angeles-based Nate D. Sanders Inc. conducted the auction for the rings. REGENERX BIOPHARMA: Posts $1.5 Million Net Loss in Q2 2011 ---------------------------------------------------------- RegeneRx Biopharmaceuticals, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.5 million on sponsored research revenue of $588,575 for the three months ended June 30, 2011, compared with a net loss of $1.4 million on sponsored research revenue of $11,129 for the same period last year. The Company reported a net loss of $3.1 million on sponsored research revenue of $1.2 million for the six months ended June 30, 2011, compared with a net loss of $2.5 million on sponsored research revenue of $11,129 for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $3.0 million in total assets, $1.0 million in total liabilities, all current, and stockholders' equity of $2.0 million. As reported in the TCR on April 8, 2011, Reznick Group, P.C., in Vienna, Va., expressed substantial doubt about RegeneRx's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has experienced negative cash flows from operations since inception and is dependent upon future financing in order to meet its planned operating activities. A copy of the Form 10-Q is available at http://is.gd/W5vPuo Rockville, Md.-based RegeneRx Biopharmaceuticals, Inc. (OTC BB: RGRX) -- http://www.regenerx.com/-- is a biopharmaceutical company focused on the development of a novel therapeutic peptide, Thymosin beta 4, or TB4, for tissue and organ protection, repair, and regeneration. RTJJ, INC.: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: RTJJ, Inc. 500 East Long Avenue Gastonia, NC 28054 Bankruptcy Case No.: 11-32050 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court Western District of North Carolina (Charlotte) Judge: J. Craig Whitley Debtor's Counsel: James H. Henderson, Esq. JAMES H. HENDERSON, P.C. 1201 Harding Place Charlotte, NC 28204-2248 Tel: (704) 333-3444 Fax: (704) 333-5003 E-mail: henderson@title11.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/ncwb11-32050.pdf The petition was signed by Rick L. Jones, president. RVTC LP: Court Approves Integra Realty as Real Property Appraiser ----------------------------------------------------------------- The Hon. Leif M. Clark of the U.S. Bankruptcy Court for the Western District of Texas authorized RVTC Limited Partnership to employ Integra Realty Resources-San Antonio as appraiser. As reported in the Troubled Company Reporter on July 14, 2011, Integra Realty is preparing an appraisal of the Debtor's real property asset. The firm will be compensated in this manner: a) The total fee for completion of the appraisal as requested by the Debtor will be $10,000, of which Debtor will pay an immediate retainer of $5,000. The entire fee, including the retainer, shall not be either paid or applied by Integra until completion of the appraisal. b) In connection with the appearance at any deposition or hearing, Integra will charge the following hourly rates: i) Martyn C. Glen $350 per hour; and ii) Senior Analyst $175 per hour. The Debtor assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The Court also ordered that Integra will file a notice indicating that the appraisal has been completed and Integra's intention to apply the retainer. The notice will give all parties-in-interest 14 days to file an objection to the application, but only to assert that Integra has either not completed the appraisal or that such appraisal was prepared in a fraudulent manner. About RVTC LP Rialto Village Town Center is a proposed $60 million to $70 million mixed-used development on 24 acres on the far Northwest Side in San Antonio, Texas. RVTC Limited Partnership fka Fair Prospects, L.P., owner of the Rialto Village Town Center, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 11-52240) on June 29, 2011. Judge Leif M. Clark presides over the case. Thomas Rice, Esq., at Cox smith Matthews Incorporated, represents the Debtor. The Debtor disclosed $12,158,560 in assets and $12,564,538 in liabilities as of the Chapter 11 filing. RYLAND GROUP: Files Form 10-Q; Incurs $10.7-Mil. Net Loss in Q2 --------------------------------------------------------------- The Ryland Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on form 10-Q reporting a net loss of $10.71 million on $225.22 million of total revenues for the three months ended June 30, 2011, compared with a net loss of $21.76 million on $373.27 million of total revenues for the same period during the prior year. The Company also reported a net loss of $30.25 million on $400.15 million of total revenues for the six months ended June 30, 2011, compared with a net loss of $36.06 million on $624.04 million of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.57 billion in total assets, $1.05 billion in total liabilities and $513.79 million in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/CrezL4 About Ryland Group Headquartered in Calabasas, California, The Ryland Group, Inc. (NYSE: RYL) -- http://www.ryland.com/-- is one of the nation's largest homebuilders and a leading mortgage-finance company. Since its founding in 1967, Ryland has built more than 285,000 homes and financed more than 240,000 mortgages. The Company currently operates in 15 states and 19 homebuilding divisions across the country and is listed on the New York Stock Exchange under the symbol "RYL." * * * As reported by the Troubled Company Reporter on June 21, 2010, Fitch Ratings has affirmed Ryland Group, Inc.'s ratings -- Issuer Default Rating at 'BB'; and Senior unsecured debt at 'BB'. The Rating Outlook has been revised to Stable from Negative. Ryland Group carries Moody's "Ba3" corporate family rating, "Ba3" probability of default rating, "Ba3" senior unsecured notes rating, and "SGL-2" speculative grade liquidity rating. Ryland Group carries Standard & Poor's Ratings Services' 'BB-' corporate credit and senior unsecured note ratings. SBARRO INC: Files Joint Plan of Reorganization ---------------------------------------------- Sbarro, Inc., and its domestic subsidiaries has filed a Joint Plan of Reorganization and related Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York. The Company, with the assistance of its advisors and the Restructuring Committee of its Board of Directors, has proposed a plan sponsored by certain of Sbarro's first lien lenders as its stalking horse restructuring plan. Under the terms of the proposed Plan, Sbarro expects to reduce its debt by approximately 73%, or $295 million (from approximately $405 million to $110 million, plus any amounts funded under a new money term loan facility), by: -- converting 100% of the outstanding amount of the $35 million post-petition debtor-in-possession financing into an equal amount of a newly issued $110 million senior secured exit term loan facility; -- converting approximately $173 million in prepetition senior secured debt held by the Company's prepetition first lien lenders into the remaining exit term loan facility and 100% of the common equity of the reorganized company (subject to dilution by shares issued under a management equity plan); and -- eliminating all other outstanding debt. Upon emergence from the Chapter 11 process, Sbarro's prepetition first lien lenders would own substantially all of the Company's equity. Certain of the Company's pre-petition first lien lenders have also committed, subject to the satisfaction of certain conditions, to provide Sbarro with an $18.6 million new money term loan facility to be used for general corporate and working capital needs following emergence, which will provide the Company with sufficient liquidity at emergence. In addition, the Company expects to generate additional cash from operations through the end of the year. A hearing to consider approval of the disclosure statement for the proposed plan is scheduled for September 7, 2011. Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro, said, "The plan gives us a clear path to emerge from the bankruptcy process with significantly reduced debt and increased financial flexibility and liquidity. Sbarro continues to perform well, experiencing positive same store sales and outpacing mall traffic in the first half of 2011. Despite a challenging economic environment, Sbarro remains a strong company with one of the most recognizable restaurant brands in the world. As we seek to implement our balance sheet restructuring, Sbarro's restaurants will continue to operate in the normal course and without interruption and will be positioned to compete more effectively going forward." To ensure maximum recoveries for all stakeholders, Sbarro intends to file shortly a motion to approve bidding procedures and establish an auction process for interested parties to "top" the stalking horse proposal in the current plan while the Chapter 11 cases are still pending. This overbid process will also allow qualified bidders acceptable to a steering committee of the Company's first lien lenders to take advantage of a $110 million "stapled" financing option offered by certain of the Company's first lien lenders in support of any qualified overbid. The Company is currently in discussions with a number of interested parties considering submitting competing proposals. The Company is being advised by Kirkland & Ellis LLP, its legal counsel, and Rothschild Inc., its financial advisor. Cantor Fitzgerald Securities, the agent for Sbarro's first lien lenders and post-petition debtor-in-possession lenders, is being advised by Davis Polk & Wardwell LLP, its legal counsel, and Conway Del Genio Gries & Co., LLC, its financial advisor. Sbarro filed for bankruptcy protection on April 4, 2011. The chapter 11 cases are pending before the Honorable Shelley C. Chapman in the United States Bankruptcy Court for the Southern District of New York under case number 11-11527 (SCC). About Sbarro Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. According to its schedules, the Debtor disclosed $51,537,899 in total assets and $460,975,646 in total debts. Sbarro said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. DJM Realty Services, LLC, serves as the Debtors' real estate consultant and advisor. On April 12, 2011, the U.S. Trustee for the Southern District of New York appointed appointed an official committee of unsecured creditors. The Committee retained Mesirow Financial Consulting, LLC, as financial advisor and Otterbourg, Houston & Rosen, P.C., as counsel. On May 27, 2011, the Bankruptcy Court established (i8) July 8, 2011, as the general bar date for filing proofs of claim against the Debtors' estates and (ii) Oct. 3, 2011, for governmental units to file proofs of claim. SCHOMAC GROUP: Files for Chapter 11 in Tucson, Arizona ------------------------------------------------------ Schomac Group Inc., a real-estate investment company, filed for bankruptcy protection (Bankr. D. Ariz. Case No. 11-bk-22717) on Aug. 9 in Tucson, Arizona, where it's based. The Debtor estimated assets and debt are as much as $50 million each. A meeting of creditors is scheduled for Sept. 8. Tedco Inc., a company that shares an address with Schomac Group, also filed for bankruptcy. SCI REAL ESTATE: Has Until Sept. 12 to File Chapter 11 Plan ----------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California extended the exclusive periods of SCI Real Estate Investments LLC to file a Chapter 11 plan until Sept. 12, 2011, and solicit acceptances of that plan until Nov. 8, 2011. The Debtors said they need more time to facilitate negotiations, which they believe will lead to prompt confirmation of a consensual plan. Soon after the commencement of the Chapter 11 cases, the Debtors initiated discussions with their largest creditors, Wells Fargo and First Citizens Bank, regarding negotiations of a plan. About SCI Real Estate Investments Los Angeles, California-based SCI Real Estate Investments, LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-15975) on Feb. 11, 2011. Jeffrey W. Dulberg, Esq., at Pachulski Stang Ziehl & Jones LLP, serves as the Debtor's bankruptcy counsel. Haskell & White LLP as accountant. Kennerly, Lamishaw & Rossi LLP as special real estate counsel. The Debtor disclosed $55,431,222 in assets and $69,514,028 in liabilities as of the Chapter 11 filing. SCHOMAC GROUP: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: The Schomac Group, Inc. 5997 E. Grant Road Tucson, AZ 85712 Bankruptcy Case No.: 11-22717 Chapter 11 Petition Date: August 9, 2011 Court: U.S. Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Frederick J. Petersen, Esq. MESCH, CLARK & ROTHSCHILD, P.C. 259 N. Meyer Avenue Tucson, AZ 85701 Tel: (520) 624-8886 Fax: (520) 798-1037 E-mail: ecfbk@mcrazlaw.com - and - Michael W. McGrath, Esq. MESCH CLARK & ROTHSCHILD 259 North Meyer Avenue Tucson, AZ 85701-1090 Tel: (520) 624-8886 Fax: (520) 798-1037 E-mail: ecfbk@mcrazlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Ryan M. Schoff, president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ WMS Partners LP Contract $90,369 5997 E. Grant Road Tucson, AZ 85712 Sierra Pacific Windows Contract $90,000 P.O. Box 8489 Red Bluff, CA 96080 Michael W. Graf Contract $74,048 227 Behrens Street EL Centro, CA 94530 Chase Card Services Contract $25,817 First Insurance Funding Corp. Insurance Funding $12,547 Pacific Forest Products Building Materials $11,627 Fireman's Fund Insurance Insurance $8,471 Great American Insurance Company Insurance $7,793 Ron Tilford Electrical Electrical Services $5,890 Tile Outlet Supplier $5,701 Great American Insurance Group Insurance $5,035 Lathrop & Gage DC Legal Services $3,223 Cetti Services -- $2,639 Allied Insurance Insurance $2,613 DHC Supplies Inc. Supplier $2,407 Stanton Mechanical Inc. Services $2,295 Longfellow Building Supply Supplier $2,165 Sierra Mountain Pipe & Supply Services/Supplier $1,840 Santa Lucia Preserve -- $1,700 Intermountain Disposal Inc. Debris Disposal $1,669 SEARCHMEDIA HOLDINGS: Annual Meeting Set for Sept. 13 ----------------------------------------------------- SearchMedia Holdings Limited's 2011 annual general meeting of shareholders will be held at Floor 13, Central Modern Building, 468 Xinhui Road, Shanghai, China, 200060, on Sept. 13, 2011, at 9:00 a.m. local time for these purposes: 1. To elect Mr. Robert Fried, Mr. Chi-Chuan, Mr. Steven D. Rubin, Peter W. H. Tan, and Ms. Qinying Liu as directors of the Company; 2. To amend the Company's Amended and Restated 2008 Share Incentive Plan by increasing the number of authorized ordinary shares available for grant under the 2008 Plan from 1,796,492 ordinary shares to 3,000,000 ordinary shares; and 3. To approve, ratify and confirm the appointment of Marcum Bernstein & Pinchuk LLP as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2011. The Board of Directors of the Company has fixed the close of business on Aug. 1, 2011, as the record date for determining the shareholders entitled to receive notice of and to vote at the Meeting or any adjournment or postponement thereof. In order to regain compliance with NYSE Amex Company Guide Section 704, the Meeting will also serve as the Company's 2010 annual general meeting of shareholders. About SearchMedia SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia operates a network of high-impact billboards and one of China's largest networks of in-elevator advertisement panels in 50 cities throughout China. Additionally, SearchMedia operates a network of large-format light boxes in concourses of eleven major subway lines in Shanghai. SearchMedia's core outdoor billboard and in- elevator platforms are complemented by its subway advertising platform, which together enable it to provide a multi-platform, "one-stop shop" services for its local, national and international advertising clients. As reported by the TCR on July 6, 2011, Marcum Bernstein & Pinchuk LLP, in New York, expressed substantial doubt about SearchMedia Holdings' ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring net losses from operations and has a working capital deficiency. The Company reported a net loss of $46.6 million on $49.0 million of revenues for 2010, compared with a net loss of $22.6 million on $37.7 million of revenues for 2009. The Company's balance sheet at Dec. 31, 2011, showed $86.9 million in total assets, $86.4 million in total liabilities, and stockholders' equity of $463,000. SEHANA CORPORATION: Case Summary & 6 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Sehana Corporation dba Shinchon Oriental Market 11422 Harry Hines Boulevard, #210 Dallas, TX 75229 Bankruptcy Case No.: 11-35086 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser Debtor's Counsel: Joyce W. Lindauer, Esq. JOYCE W. LINDAUER, ATTORNEY AT LAW 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/txnb11-35086.pdf The petition was signed by Ki Pong Na, president. SINCLAIR BROADCAST: Files Form 10-Q, Has $18.4-Mil. Profit in Q2 ---------------------------------------------------------------- Sinclair Broadcast Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $18.47 million on $186.58 million of total revenues for the three months ended June 30, 2011, compared with net income of $16.95 million on $183.19 million of total revenues for the same period during the prior year. The Company also reported net income of $33.60 million on $366.07 million of total revenues for the six months ended June 30, 2011, compared with net income of $27.94 million on $350.65 million of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.49 billion in total assets, $1.63 billion in total liabilities and a $135.30 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/TrZ8EV About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. * * * As reported by the TCR on Feb. 24, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Hunt Valley, Md.- based TV broadcaster Sinclair Broadcast Group Inc. to 'BB-' from 'B+'. The rating outlook is stable. "The 'BB-' rating on Sinclair reflects S&P's expectation that the company could keep its lease-adjusted debt to EBITDA below historical levels throughout the election cycle, absent a reversal of economic growth, meaningful debt-financed acquisitions, or significant shareholder-favoring measures," explained Standard & Poor's credit analyst Deborah Kinzer. Moody's raised its ratings for Sinclair Broadcast Group, Inc., and subsidiary Sinclair Television Group, Inc., including the Corporate Family Rating and Probability-of-Default Rating, each to Ba3 from B1, and the ratings for individual debt instruments, concluding its review for possible upgrade as initiated on Aug. 5, 2010. Moody's also assigned a B2 (LGD 5, 87%) rating to the proposed $250 million issuance of Senior Unsecured Notes due 2018 by STG. The Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is now stable. As reported by the Troubled Company Reporter on Feb. 24, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Hunt Valley, Md.-based TV broadcaster Sinclair Broadcast Group Inc. to 'BB-' from 'B+'. The rating outlook is stable. "The 'BB-' rating on Sinclair reflects S&P's expectation that the company could keep its lease-adjusted debt to EBITDA below historical levels throughout the election cycle, absent a reversal of economic growth, meaningful debt-financed acquisitions, or significant shareholder-favoring measures," explained Standard & Poor's credit analyst Deborah Kinzer. SK FOODS: Appeals Involving Former CEO Consolidated --------------------------------------------------- Senior District Judge Lawrence K. Karlton issued a Related Case Order on Aug. 8, 2011, consolidating various appeals pending before the U.S. District Court for the Eastern District of California involving Frederick Scott Salyer, former owner and CEO of SK Foods L.P. Those appeals were originally assigned to different judges but will now be before Judge Karlton's courtroom. Upon the notice of Bradley D. Sharp, Chapter 11 Trustee for SK Foods, and Bank of Montreal, as Administrative Agent, successor by Assignment to SK Foods, Judge Karlton said any dates currently set in the reassigned cases are vacated. A copy of the Related Case Order is available at http://is.gd/1SQpLqfrom Leagle.com. As reported by the Troubled Company Reporter on Feb. 19, 2010, a federal grand jury returned a seven-count indictment charging Mr. Salyer, 54, of Pebble Beach, Calif., with violations of the Racketeer Influenced and Corrupt Organizations Act, in connection with his direction of various schemes to defraud SK Foods' corporate customers through bribery and food misbranding and adulteration, and with wire fraud and obstruction of justice. SK Foods LP ran a tomato processing facility. It filed for Chapter 11 bankruptcy protection after being dropped by its lending group. Creditors filed an involuntary Chapter 11 petition against SK Foods LP and affiliate RHM Supply/ Specialty Foods Inc. (Bankr. E.D. Calif. Case No. 09-29161) on May 8, 2009. SK Foods had said it was preparing to file a voluntary Chapter 11 petition when the creditors initiated the involuntary case. The Company later put itself into Chapter 11 and Bradley D. Sharp was appointed as Chapter 11 trustee. The Debtors were authorized on June 26, 2009, to sell the business for $39 million cash to a U.S. arm of Singapore food processor Olam International Ltd. The replacement cost for the assets is $139 million, according to Olam. SOLAR DRIVE: Sec. 341 Creditors' Meeting Set for Sept. 8 -------------------------------------------------------- The U.S. Trustee for Region 16 in Los Angeles will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of Solar Drive, LLC, on Sept. 8, 2011, at 1:30 p.m. at RM 2610, 725 S Figueroa St., in Los Angeles. Los Angeles, California-based Solar Drive, LLC, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-42298) on July 28, 2011. Judge Peter Carroll presides over the case. The Law Offices of Carolyn A. Dye serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Tim Devine, manager. SOUTH OF THE STADIUM: Taps Ross C. Helbing as Assets Appraiser -------------------------------------------------------------- South of the Stadium I, LLC, asks the U.S. Bankruptcy Court for the Northern District of Texas for permission to employ Ross C. Helbing as appraiser. Mr. Helbing will assist in valuing the principal asset of the Debtor, real estate, for purposes of proposing and confirming a plan of reorganization. The Debtor proposes to compensate Mr. Helbing in these terms: -- a fee of $2,000 to prepare an appraisal of the Debtor's principal asset, real property; and -- a $200 per hour rate with a minimum of $800 for deposition and trial preparation and testimony and assistance with evaluation of any other appraisals and depositions and trial testimony of any other experts. Mr. Helbing has received a retainer from the Debtor totaling $1,000. To the best of the Debtor's knowledge, Mr. Helbing is "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. About South of the Stadium I, LLC 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. SOUTHWEST GEORGIA ETHANOL: Requests More Time for Plan ------------------------------------------------------ Carla Main at Bloomberg News reports that Southwest Georgia Ethanol LLC wants more time to submit a reorganization plan. The company asked to extend its period of exclusivity to file a plan to Sept. 1 and to gather support for the proposal to Nov. 1, saying in a court filing that the bankruptcy case is "large and complex." About Southwest Georgia Southwest Georgia Ethanol LLC, a unit of First United Ethanol Co., sought bankruptcy protection (Bankr. M.D. Ga. 11-10145) in Albany, Georgia, on Feb. 1, 2011. The Debtor owns and operates an ethanol production facility located on 267 acres in Mitchell County, Georgia, producing 100 million gallons of ethanol annually. Ethanol production operations commenced in October 2008. Revenue was $168.9 million for fiscal year ended Sept. 30, 2010. The Debtor said profitability and liquidity have been materially reduced by unfavorable fluctuations in commodity prices for ethanol and corn. John Michael Levengood, Esq., at McKenna Long & Aldridge LLP, in Atlanta, Georgia, serves as counsel to the Debtor. Morgan Keegan & Company, Inc., is the investment banker and financial advisor. The Debtor's balance sheet showed $164.7 million in assets and $134.1 million in debt as of Dec. 31, 2010. Since 2008, at least 11 ethanol-related companies have sought court protection, including VeraSun Energy Corp., once the second- largest U.S. ethanol maker; units of Pacific Ethanol Inc.; and White Energy Holding Co. SPANISH BROADCASTING: Acquires KTBU-TV for $16 Million ------------------------------------------------------ Spanish Broadcasting System, Inc., announced the acquisition of KTBU-TV (Digital 42 / Virtual Channel 55) and other television assets serving the Houston, Texas market from U.S. Farm & Ranch Supply Company, Inc., for an aggregate purchase price of approximately $16 million. Spanish Broadcasting System will begin operating the station on Aug. 2, 2011. This station will be the third owned or operated MegaTV facility in the U.S., in addition to WSBS-TV in Miami and WMEI-TV in Puerto Rico. KTBU-TV is a full power television station reaching approximately 1.8 million households in the Houston DMA through its over-the- air, cable and satellite distribution platforms. Houston is the 4th largest Hispanic market in the nation. Since SBS launched MegaTV five years ago, the network has expanded its distribution to 5.6 million households via over-the-air affiliates in seven cities throughout the U.S. and Puerto Rico, as well as cable (AT&T U-verse Channel 3008) and satellite (DIRECTV Channel 405) distribution. SBS leverages its diversified media resources to provide marketing and advertising sales support to MegaTV and develops original content for the network from production facilities located in Miami and Puerto Rico. The network also has correspondent bureaus in New York and Los Angeles. In addition, as part of the television station acquisition, the Company entered into a lease agreement with USFR Equity Drive Property LLC. The lease agreement covers approximately 30,000 square feet of space in Houston, Texas, and specified furnishings and broadcasting equipment. The lease has an initial term of 10 years, subject to two 5-year extensions at the Company's option, and is terminable at any time by the Company on not less than 180 days prior notice. The lease also provides the Company with an option to purchase the property and the furnishings and equipment for a purchase price of $4 million if the purchase occurs during the first 12 months of the lease term, increasing by 2.5% annually each during each successive 12-month period of the lease term. "This Houston acquisition marks another important watershed for MegaTV as we increase viewership in the western region of the country, reflecting our desire to replicate an augment our radio footprint with TV penetration in the largest U.S. Hispanic markets," stated SBS Chief Executive Officer, Raul Alarcon. "Our strategic vision of integrating our Radio, TV, Entertainment and Online properties is in full swing as we continue to seek out unique growth opportunities with a clear eye on capturing the U.S. Hispanic consumer," he added. "The Houston DMA is our gateway to our Central/West Coast growth strategy, where MegaTV will now debut its original programming for a differentiated Latino audience. We have a unique style and a unique approach to Spanish-Language content, featuring renowned talent and innovative formats that will allow MegaTV to continue its successful ratings track record on a national level," stated Albert Rodriguez, Chief Revenue Officer of SBS. KTBU-TV Mega TV Channel 55, will feature MegaTV's early fringe and prime time original programming block including the hit shows "Paparazzi Magazine," "Esta Noche Tu Night" with Alexis Valdes" and "Bayly," among others, and first-run novelas "Chepe Fortuna" and "Mujeres de Lujo." Also, for the first time, the Houston market will have access to the popular daily Radio/TV simulcast of "El Vacilon del Mandril," live from SBS sister-station KLAX-FM in Los Angeles. "We are proud to introduce high-quality, award winning original programming to the growing Hispanic population in the Houston market," said Jose R. Perez, Vice President of Programming of MegaTV." The launch of KTBU-TV expands our broadcast footprint and strengthens our presence in the nation's Space City. KTBU-TV will fill the void in the market for alternative entertainment for local Hispanics and offer advertisers a new, powerful option for reaching this vibrant Latino community." "With the completion of this strategic Houston transaction, SBS and MegaTV have taken a significant step towards establishing network penetration of the U.S. Hispanic market," said Alex Aleman, VP of Operations of MegaTV. "The station will play an important role in the growth of our TV business - KTBU-TV will allow us to provide the growing Hispanic population of Houston with a new Spanish language television alternative." A full-text copy of the press release is available for free at: http://is.gd/F3LLpl About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting System, Inc. -- http://www.spanishbroadcasting.com/-- owns and operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. The Company reported net income of $15.04 million on $136.12 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $13.78 million on $139.39 million of net revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $476.63 million in total assets, $434.87 million in total liabilities, $92.35 million in cumulative exchangeable redeemable preferred stock, and a $50.58 million total stockholders' deficit. * * * In November 2010, Moody's Investors Service upgraded the corporate family and probability of default ratings for Spanish Broadcasting System, Inc., to 'Caa1' from 'Caa3' based on improved free cash flow prospects due to better than anticipated cost cutting and the expiration of an unprofitable interest rate swap agreement. Moody's said Spanish Broadcasting's 'Caa1' corporate family rating incorporates its weak capital structure, operational pressure in the still cyclically weak economic climate, generally narrow growth prospects (though Spanish language is the strongest growth prospect) given the maturity and competitive pressures in the radio industry, and the June 2012 maturity of its term loan magnify this challenge. In July 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Miami, Fla.-based Spanish Broadcasting System Inc. to 'B-' from 'CCC+', based on continued improvement in the company's liquidity position. The rating outlook is stable. "The rating action reflects S&P's expectation that, despite very high leverage, SBS will have adequate liquidity over the intermediate term to meet debt maturities, potential swap settlements, and operating needs until its term loan matures on June 11, 2012," said Standard & Poor's credit analyst Michael Altberg. SUMMO, INC.: Case Summary & 14 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Summo, Inc. fka Pinion Ridge, LLC 215 Dittmer Avenue Pueblo, CO 81004 Bankruptcy Case No.: 11-28971 Chapter 11 Petition Date: August 9, 2011 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Elizabeth E. Brown Debtor's Counsel: Daniel K. Usiak, Jr., Esq. USIAK LAW FIRM 128 S. Tejon Street, Suite 202 Colorado Springs, CO 80903 Tel: (719) 955-0143 Fax: (719) 328-0329 E-mail: daniel@usiaklaw.com Scheduled Assets: $15,845,500 Scheduled Debts: $4,809,760 The petition was signed by John Musso, president. Debtor's List of 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Gradisar Trechter Ripperger & Roth Legal Work $23,000 1836 Vinewood Lane, Suite 200 Pueblo, CO 81005 Buxman Kwitek & Ohlsen, PC Legal Work $22,060 601 N. Main Street, Suite 200 Pueblo, CO 81003 Pueblo County Treasurer Parcel E $1,807 215 West 10th Street, Room 110 Pueblo, CO 81003-2968 Pueblo County Treasurer Lot 61 Unit 16 $140 Pueblo County Treasurer Lot 31 Unit 10 $62 Pueblo County Treasurer Lot 24 Unit 10 $62 Pueblo County Treasurer Lot 63 Unit 10 $62 Pueblo County Treasurer Lot 75 Unit 10 $62 Pueblo County Treasurer Lot 30 Unit 10 $62 Pueblo County Treasurer Lot 64 Unit 10 $62 Pueblo County Treasurer Lot 76 Unit 10 $62 Pueblo County Treasurer Lot 112 Unit 10 $62 Pueblo County Treasurer Lot 308 Unit 18 $62 Pueblo County Treasurer Lot 35 Unit 18 $62 SWAMI SHREE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Swami Shree, LLC dba La Quinta Inn and Suites 254 S. Pennell Road Media, PA 19063 Bankruptcy Case No.: 11-25973 Chapter 11 Petition Date: August 4, 2011 Court: U.S. Bankruptcy Court District of Maryland (Baltimore) Judge: David E. Rice Debtor's Counsel: Curtis C. Coon, Esq. COON & COLE, LLC 401 Washington Avenue, Suite 501 Towson, MD 21204 Tel: (410) 244-8800 Fax: (410) 244-8801 E-mail: cccoon@ccclaw.net Scheduled Assets: $338,140 Scheduled Debts: $4,861,772 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/mdb11-25973.pdf The petition was signed by Vasudev Patel, managing member. SWEET HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Sweet Hospitality, LLC 4300 N. Ocean Boulevard, 2P Fort Lauderdale, FL 33308 Bankruptcy Case No.: 11-32124 Chapter 11 Petition Date: August 7, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: John K Olson Debtor's Counsel: David A. Ray, Esq. HOUGH LAW GROUP, P.A. 320 SE 11 Stree Ft Lauderdale, FL 33316 Tel: (954) 239-4760 Fax: (954) 239-4761 E-mail: dray@houghlawgroup.com Scheduled Assets: $288,200 Scheduled Debts: $4,579,482 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flsb11-32124.pdf The petition was signed by Hussein Shehata, manager. TCI COURTYARD: Meeting of Creditors on Aug. 31 ---------------------------------------------- Carla Main at Bloomberg News reports that a meeting of creditors of TCI Courtyard Inc., has been scheduled for Aug. 31. The deadline for filing a claim, for nongovernmental claimants, is Nov. 29. TCI Courtyard, a hotel company, filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 11-34977) on Aug. 1, 2011. Eric A. Liepins, Esq., at Eric A. Liepins, P.C., in Dallas, serves as counsel. The Debtor estimated assets of up to $10 million and debts of up to $50 million. THREE D'S: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Three D's LLC dba Baymont Inn of Wilmington P.O. Box 717 Norlina, NC 27563 Bankruptcy Case No.: 11-06070 Chapter 11 Petition Date: August 8, 2011 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Debtor's Counsel: George M. Oliver, Esq. OLIVER FRIESEN CHEEK, PLLC P.O. Box 1548 New Bern, NC 28563 Tel: (252) 633-1930 Fax: (252) 633-1950 E-mail: efile@ofc-law.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/nceb11-06070.pdf The petition was signed by Danny Moss, member/manager. T.O.D.A.Y.S. YOUTH: Files for Chapter 11 Bankruptcy Protection -------------------------------------------------------------- Michael Schwartz at Richmond BizSense reports that Ashland-based T.O.D.A.Y.S. Youth Services LLC filed for Chapter 11 bankruptcy protection, listing $1.4 million in debt. According to the report, almost $1 million of those liabilities were owed to the IRS. It also owes $124,000 to the Virginia Department of Taxation. The company is disputing the federal and state tax liabilities, according to its bankruptcy filing. The report says T.O.D.A.Y.S., which is an acronym for Today's Opportunities Directly Affect Youth Success, has offices in Richmond and Petersburg. The company offers short-term mental health and community services to at-risk youth and families to identify and reduce inappropriate actions, to maintain baseline behaviors and to improve their ability to interact with adults and peers. The Company is represented in its bankruptcy by the law office of Corine E.G. Bailey. T.O.D.A.Y.S. YOUTH: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: T.O.D.A.Y.S. Youth Services LLC 10035 Silding Hill Road, Suite 206 Ashland, VA 23005 Bankruptcy Case No.: 11-35068 (11-35069) Chapter 11 Petition Date: August 5, 2011 Court: U.S. Bankruptcy Court Eastern District of Virginia (Richmond) Judge: Kevin R. Huennekens Debtor's Counsel: Corine E. G. Bailey, Esq. LAW OFFICE OF CORINE E.G. BAILEY PC 116 N. Sycamore Street P.O. Box 548 Petersburg, VA 23804 Tel: (804) 722-1457 E-mail: CorineB55@aol.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/vaeb11-35069.pdf The petition was signed by Aric T. Melton, managing member. TP INC: Trustee Can Retain Cameron Management as Agent/Broker ------------------------------------------------------------- The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina authorized Algernon L. Butler, III, appointed trustee of TP Inc., to employ Cameron Management, Inc. and R. Hill Rogers of that firm as agent/broker. Cameron is assisting the trustee in the administration of the estate, locating a buyer and selling the property and any other properties of the Debtor which the trustee might subsequently request for the agent/broker to handle. The property of the estate that the trustee intends to sell includes a couple tracts of land located on Country Club Drive, Hampstead, Pender County, North Carolina comprising approximately 47.2 acres more or less. The trustee will compensate the agent/broker by paying a commission of 5% of the total sales price of the property if sold in-house, and 8% if co-brokered, with the compensation and any reimbursement to be paid to the agent/broker to be subject to further application and order of the Court at such time as the property is proposed to be sold. To the best of the trustee's knowledge, Cameron is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. The Court also ordered that Cameron is permitted to engage in a dual-agency agreement with the trustee pursuant to which an agent/broker employed by Cameron other than Mr. Rogers is permitted to serve as agent/broker for prospective purchasers of the property. The Court further ordered that any third-party in possession of the property will cooperate with the trustee and the trustee's agents, including the agent/broker, with regard to the trustee's marketing, showing, and selling of the property listed by the agent/broker and must vacate the property at the request of the trustee and prior to the closing of any sale of the property approved by the Court. The Court's order authorizing the employment of the agent/broker will remain effective after any conversion of th case to Chapter 7. About TP, Inc. Boone, North Carolina-based TP, Inc., is in the business of property development and currently owns a various tracts of real estate in and around North Topsail, Topsail Beach, and Surf City, North Carolina. The Company filed for Chapter 11 protection (Bankr. E.D. N.C. Case No. 10-01594) on March 1, 2010. David J. Haidt, Esq., at Ayers, Haidt & Trabucco, P.A., represented the Debtor. The Debtor tapped Trawick H. Stubbs, Jr., and Stubbs & Perdue, as counsel, and Gary K. Shipman and Shipman & Wright, L.L.P., as special counsel to assist in matters relating to claims by Bank of America and its agents. In its schedules, the Debtor disclosed $13,156,424 in assets and $4,129,049 in liabilities. Algernon L. Butler, III, is the duly-appointed Chapter 11 trustee in the case of TP Inc., and is represented by Butler & Butler, LLP, as counsel. TP INC: Trustee Can Hire Treasure Realty as Property Manager ------------------------------------------------------------ The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina authorized Algernon L. Butler, III, appointed trustee of TP Inc., to employ Treasure Realty, Inc., of Sneads Ferry, NC, and Sherrie Hoops as property manager for the rental and maintenance certain property. The Court ordered that the property manager, will be entitled to a 10% of the gross rental income received. Since the filing of the application, the property manager, at the request of the Bankruptcy Administrator and the trustee, has agreed to reduce its commission from 15% to 10%. It is further ordered that the order authorizing the employment and compensation of the property manager will remain effective after any conversion of this case to Chapter 7. About TP, Inc. Boone, North Carolina-based TP, Inc., is in the business of property development and currently owns a various tracts of real estate in and around North Topsail, Topsail Beach, and Surf City, North Carolina. The Company filed for Chapter 11 protection (Bankr. E.D. N.C. Case No. 10-01594) on March 1, 2010. David J. Haidt, Esq., at Ayers, Haidt & Trabucco, P.A., represented the Debtor. The Debtor tapped Trawick H. Stubbs, Jr., and Stubbs & Perdue, as counsel, and Gary K. Shipman and Shipman & Wright, L.L.P., as special counsel to assist in matters relating to claims by Bank of America and its agents. In its schedules, the Debtor disclosed $13,156,424 in assets and $4,129,049 in liabilities. Algernon L. Butler, III, is the duly-appointed Chapter 11 trustee in the case of TP Inc., and is represented by Butler & Butler, LLP, as counsel. TP INC: Trustee Taps Century 21 Action as Rental Property Manager ----------------------------------------------------------------- The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina approved the consent order entered between Algernon L. Butler, III, appointed trustee of TP Inc., and Bank of America. Bank of America asserts that it holds a promissory note secured by deeds of trust on numerous parcels of real property in Pender and Onslow counties, which property constitutes property of the bankruptcy estate. In June 2009, Bank of America initiated foreclosure proceedings on the properties after the Debtor defaulted under the note. On June 20, 2011, Bank of America filed a limited objection to authorizing the trustee or property manager to enter into new leases or renew existing leases on the properties. Bank of America also objected to the trustee's proposal that the property manager pay the net rental proceeds from the properties to the trustee instead of Bank of America. The parties believe that it would be in the best interest of the estate for the trustee to be authorized to enter into leases of the properties and other real property of the estate. Pursuant to the consent order between the trustee and Bank of America: 1. The trustee is authorized to employ Century 21 Action, Inc. of Surf City, NC, and Scott Erickson of that firm as property manager. The firm is assisting the trustee in the administration of the estate with regard to the leasing and management of the properties and any other properties of the estate which the trustee might subsequently request for the property manager to handle. 2. The property manager will be entitled to a commission of 12% of the net rental income received through July 31, and 10% of the net rental income received August 1, and afterwards, and to reimbursement of all actual, reasonable and necessary expenses paid for the maintenance, utilities and other incidental expenses of the properties, without further notice or hearing. 4. The trustee will be authorized to enter into leases (both new leases and renewals of existing leases) of the properties and any other properties of the estate, and will be authorized to permit the property manager to enter into such leases on behalf of the trustee, without further notice or hearing. 5. Until such time as the Court orders otherwise, the trustee will receive all rental proceeds from the properties after deduction of the allowed compensation and reimbursement of the property manager, and will deposit and maintain such net rental proceeds in a segregated account. 6. Bank of America may request that the Court reconsider this provision allowing the trustee to receive the net rental proceeds at any hearing conducted by the Court on the motion to set aside consent order filed by the Debtor on March 16, 2011, or otherwise upon no less than 30 days notice to the trustee. 7. The trustee will be authorized to make such reasonable and necessary expenditures from the rental proceeds generated by the properties. 8. To the extent that it is determined that Bank of America holds a valid and enforceable security interest in the properties, the compensation and reimbursement allowed to the property manager will be deemed to have been allowed. About TP, Inc. Boone, North Carolina-based TP, Inc., is in the business of property development and currently owns a various tracts of real estate in and around North Topsail, Topsail Beach, and Surf City, North Carolina. The Company filed for Chapter 11 protection (Bankr. E.D. N.C. Case No. 10-01594) on March 1, 2010. David J. Haidt, Esq., at Ayers, Haidt & Trabucco, P.A., represented the Debtor. The Debtor tapped Trawick H. Stubbs, Jr., and Stubbs & Perdue, as counsel, and Gary K. Shipman and Shipman & Wright, L.L.P., as special counsel to assist in matters relating to claims by Bank of America and its agents. In its schedules, the Debtor disclosed $13,156,424 in assets and $4,129,049 in liabilities. Algernon L. Butler, III, is the duly-appointed Chapter 11 trustee in the case of TP Inc., and is represented by Butler & Butler, LLP, as counsel. TRISTAR ESPERANZA: Case Summary & 4 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: TRISTAR Esperanza Properties, LLC 30242 Esperanza Rancho Santa Margari, CA 92688 Bankruptcy Case No.: 11-21095 Chapter 11 Petition Date: August 8, 2011 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Ian Landsberg, Esq. LANDSBERG & ASSOCIATES APC 16030 Ventura Blvd Ste 470 Encino, CA 91436 Tel: (818) 855-5900 Fax: (818) 855-5910 E-mail: ilandsberg@landsberg-law.com Estimated Assets: $0 to $50,000 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/cacb11-21095.pdf The petition was signed by Thomas Veale, managing member. UNIFI INC: Completes Call for Partial Redemption of Senior Notes ---------------------------------------------------------------- Unifi, Inc., completed the previously announced redemption of an aggregate principal amount of $10,000,000 of its 11.5% Senior Secured Notes due 2014. The Company redeemed the Notes pursuant to their terms at 102.875% of the principal amount plus unpaid and accrued interest. The total aggregate redemption price was approximately $10.5 million, including approximately $0.3 million in accrued interest. The Company financed the redemption through borrowings under its revolving credit facility. Since June 30, 2010, the Company has retired $55.0 million in principal amount of the Notes. Upon completion of this partial redemption, approximately $123.7 million principal amount of the Notes remain outstanding. As a result of this partial redemption, the Company expects to record in the first quarter of fiscal 2012 a one-time charge for early extinguishment of debt of $0.5 million (of which $0.2 million is a non-cash charge related to the write off of unamortized debt issuance costs), or about $0.02 per share. The Company expects this partial redemption to result in savings of approximately $0.8 million in annualized net interest expense. About Unifi Unifi, Inc. (NYSE: UFI) -- http://www.unifi.com/and http://www.repreve.com/-- is a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials. In December 2010, Standard & Poor's Ratings Services said that it raised its corporate credit and senior secured debt ratings on Greensboro, N.C.-based Unifi Inc. to 'B' from 'B-'. The ratings upgrade and stable outlook reflect S&P's belief that Unifi will continue to improve its operating performance and sustain its recently strengthened credit measures as it end-use markets continue to recover. * * * This concludes the Troubled Company Reporter's coverage of Unifi Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. VITRO SAB: Noteholders Want Recognition Petition Dismissed ---------------------------------------------------------- The members of the Ad Hoc Group of Vitro Noteholders ask the U.S. Bankruptcy Court for the Northern District of Texas to dismiss the case purportedly commenced by the filing of the recognition petition by Alejandro Francisco Sanchez-Mujica and Javier Arechavleta Santos. The Adhoc Group serves as holders of or managers of entities that hold beneficial interests in three series of notes issued by Vitro, S.A.B. de CV and guaranteed by Vitro Packaging de Mexico S.A. de CV, and parties-in-interest in the Debtors' cases. According to the Noteholders, VPM's recognition petition must be denied as a matter of law because VPM's center of main interest is not in Mexico, the petitioners are not eligible under the Mexican law to be its foreign representatives and because VPM is not currently party to a foreign proceeding within the meaning of Section 101(23) of the Bankruptcy Code. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009 and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced a voluntary judicial reorganization proceeding under the Ley de Concursos Mercantiles before the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, the United Mexican States. On June 30, 2011, Vitro Packaging filed a chapter 15 petition (Bankr. N.D. Tex. Case No. 11-34224). Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro Packaging de Mexico S.A. de C.V. The Foreign Representatives are represented by David M. Bennett, Esq., Katharine E. Battaia, Esq., and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz, Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley & McCloy LLP. Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P. Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok, LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq., Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert LLP. Chapter 11 Proceedings A group of noteholders, namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P., opposed the exchange. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. The U.S. subsidiaries subsequently sold their businesses to an affiliate of Sun Capital Partners Inc. for $55 million. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. WASTE2ENERGY HOLDINGS: Four Creditors File Involuntary Petition --------------------------------------------------------------- One company and three individuals allegedly holding $3.2 million of bonds of Waste2Energy Holdings, Inc., filed an involuntary chapter 11 bankruptcy petition against the Company in Wilmington, Delaware. The petitioning creditors are asking the Bankruptcy Court to appoint an independent trustee to take over its operations. Chapter11Cases.com reports that on Feb. 11, 2011, Waste2Energy Holdings entered into an asset purchase agreement with WTE Waste to Energy Canada Inc., whereby the Canadian company agreed to acquire substantially all of the assets of Waste2Energy and each of its subsidiaries in exchange for common shares aggregating 12% of the fully diluted WTE Waste to Energy Canada Common Shares outstanding as of the closing of the sale and assumption or discharge of Waste2Energy's outstanding liabilities. Waste2Energy had approximately $17 million in liabilities, including $10.6 million of 12% convertible debentures and interest and approximately $700,000 of 10% convertible debentures. The sale was expected to close on Feb. 28, 2011, but it is unclear from court and SEC filings whether that sale was ever definitively closed. On April 14, a Scottish court ordered that Waste 2 Energy Engineering Limited, one of Waste2Energy's subsidiaries be wound up and an interim liquidator be appointed. Waste 2 Energy Engineering Limited ran a $35 million facility in Dumfries, Scotland which was capable of converting 180 metric tons per day of municipal and hazardous waste into energy. ' In May, Waste2Energy terminated the employment of its president and chief executive officer. The company's stock was traded on the OTC "Pink Sheets" under the symbol WTEZ.PK. About Waste2Energy Holdings Greenville, S.C.-based Waste2Energy Holdings, Inc. (Pink Sheets: WTEZ) -- http://www.waste2energy.com/-- is a "cleantech" technology company that designs, builds, installs and sells waste to energy plants that generate "Renewable Green Power" converting biomass or other solid waste streams traditionally destined for landfills into clean renewable energy. The Company incurred a net loss from continuing operations of $4.0 million and used $1.8 million of cash in continuing operations for the three months ended June 30, 2010. At June 30, 2010, the Company had a working capital deficit of $8.8 million and a $34.5 million accumulated deficit. The Company's balance sheet at June 30, 2010, showed $3.4 million in total assets, $11.7 million in total liabilities, and a stockholders' deficit of $8.3 million. As reported in the Troubled Company Reporter on July 19, 2010, Marcum LLP, in New York, expressed substantial doubt Waste2Energy Holdings' ability to continue as a going concern, following its results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has incurred a significant loss from continuing operations of $11.7 million and used cash of $5.2 million for continuing operations which resulted in an accumulated deficit of $30.4 million and a working capital deficiency of $6.6 million as of March 31, 2010. Default As reported in the TCR on Feb. 2, 2011, the Company has not paid approximately $276,000 of interest due on the of the Company's 12% Senior Convertible Debentures (the "Debentures") due on Jan. 1, 2011, and as of Jan. 8, 2011, an additional Event of Default under the Debentures has occurred on outstanding debentures having an aggregate principal balance of $5,830,400 and an Event of Default has occurred on outstanding Debentures having an aggregate principal balance of $4,227,500 . WASTE2ENERGY HOLDINGS: Bondholders Seek to Oust Management ---------------------------------------------------------- The four creditors who filed the involuntary chapter 11 bankruptcy petition against Waste2Energy Holdings are asking the bankruptcy court to remove Waste2Energy's existing management and replace them with a chapter 11 trustee. Chapter11cases.com notes the motion, which was accompanied by several declarations, begins with the assertion that "[t]he actions of W2E's current management present a sorry tale of incompetence, avarice, and betrayal of W2E, its creditors, and its investors." In the ensuing pages, the motion makes extensive claims about the company's operations and management, which it calls "neither prudent nor reasonable." Katy Stech, writing for Dow Jones' Daily Bankruptcy Review, reports that the creditors, bondholders of Waste2Energy owed $3.2 million, argue that the company's top executives "have taken a promising company with patents and other intellectual property for producing green energy and have grossly mismanaged it for their own personal aggrandizement." They said Chairman Christopher d'Arnaud Taylor and Chief Executive Joseph "John" Murphy's collective management of the company has been "marked by inappropriate uses of corporate funds, bullying of employees, abuse of business partners, and open denigration of customers." The bondholders filed their motion for a trustee Tuesday following the involuntary bankruptcy petition they filed Monday with the U.S. Bankruptcy Court in Wilmington, Delaware. According to DBR, the bondholders also rued the executives' decision to walk away from a legitimate business partnership with a Canadian company that does similar work -- selling giant machines that turn landfill-bound garbage into steam and other forms of energy -- exposing them to more than $500 million in liabilities and preventing the company from taking in money from potentially lucrative projects. That breakup could leave the company "completely and hopelessly insolvent and destroy the possibility of any real recovery to the petitioning creditors, whose claims are a fraction of that amount," the bondholders said. DBR relates that Mr. Murphy -- reached by email -- said the filing caught him off guard because the company is already trying to figure out how to repay its debts. The company recently sent a letter that laid out the details of an out-of-court repayment plan to all bondholders, he said. DBR also relates that in a Securities and Exchange Commission filing dated Feb. 11, the company said it owed one group of bondholders $10.6 million and another group of bondholders $700,000. "We have operated under a mandate of the board to take any and all actions necessary to stabilize the financial affairs of the company by capitalizing on potential business relationships to satisfy all creditors without any preferences," Mr. Murphy said in an email, according to DBR. "It now seems that a few of the creditors feel they deserve more preference than others and we will not allow the process to be abused in this manner." DBR says Mr. Murphy declined to comment on the allegations of mismanagement. Mr. Taylor couldn't be reached Tuesday, according to DBR. Bankruptcy law gives the company 20 days to formally respond to the filing. About Waste2Energy Holdings Greenville, S.C.-based Waste2Energy Holdings, Inc. (Pink Sheets: WTEZ) -- http://www.waste2energy.com/-- is a "cleantech" technology company that designs, builds, installs and sells waste to energy plants that generate "Renewable Green Power" converting biomass or other solid waste streams traditionally destined for landfills into clean renewable energy. The Company's balance sheet at June 30, 2010, showed $3.4 million in total assets, $11.7 million in total liabilities, and a stockholders' deficit of $8.3 million. As reported in the Troubled Company Reporter on July 19, 2010, Marcum LLP, in New York, expressed substantial doubt the Company's ability to continue as a going concern, following its results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has incurred a significant loss from continuing operations of $11.7 million and used cash of $5.2 million for continuing operations which resulted in an accumulated deficit of $30.4 million and a working capital deficiency of $6.6 million as of March 31, 2010. Default On October 30, 2010, a total of $87,500 of principal amount of the Company's 12% Senior Convertible Debentures became due. On November 2, 2010, $40,000 of principal amount of the Debentures became due. The Company did not make the required payment on the maturity date or by the cure period provided by the Debentures and as result an Event of Default under the Debentures has occurred. As a result of the Event of Default, the outstanding principal amount of the Debentures plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of the acceleration will become at the election of the holder of the Debenture immediately due and payable in cash at the Mandatory Default Amount. WASTE2ENERGY HOLDINGS: Involuntary Chapter 11 Case Summary ---------------------------------------------------------- Alleged Debtor: Waste2Energy Holdings, Inc. 1 Chick Springs Road, Suite 218 Greenville, SC 29609 Bankruptcy Case No.: 11-12504 Involuntary Chapter 11 Petition Date: August8, 2011 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Judge: Kevin J. Carey Petitioners' Counsel: Frederick B. Rosner, Esq. THE ROSNER LAW GROUP, LLC 824 N. Market Street, Suite 810 Wilmington, DE 19801 Tel: (302) 777-111 Creditors who signed the Chapter 11 petition: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Steven Benkovsky Bond Debt $2,000,000 80 Raynor Avenue Ronkonkoma, NY Luppino Landscaping & Masonry, LLC Bond Debt $750,000 Carmelo Luppino 77 Sheather Road Mount Kisco, NY Andrew John Savage Bond Debt $250,000 11 Rolling Hills Road Sharon, CT 06069 William Paul Simmelink Bond Debt $200,000 736 Gatestone Street Gaithersburg, MD 20878 WEST CORP: Files Form 10-Q; Posts $34.3 Million Net Income in Q2 ---------------------------------------------------------------- West Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on form 10-Q reporting net income of $34.37 million on $622.82 million of revenue for the three months ended June 30, 2011, compared with net income of $36.29 million on $596.55 million of revenue for the same period during the prior year. The Company also reported net income of $68.95 million on $1.23 billion of revenue for the six months ended June 30, 2011, compared with net income of $72.29 million on $1.19 billion of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $3.23 billion in total assets, $4.18 billion in total liabilities, $1.59 billion in Class L common stock, and a $2.54 billion total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/7nq8hA About West Corporation Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. The Company reported net income of $60.30 million on $2.39 billion of revenue for the year ended Dec. 31, 2010, compared with net income of $90.97 million on $2.38 billion of revenue during the prior year. * * * West Corp. carries a 'B2' corporate rating from Moody's and 'B+' corporate rating from Standard & Poor's. Moody's Investors Service upgraded the ratings on West Corporation's existing senior secured term loan to Ba3 from B1 and the rating on $650 million of existing senior notes due 2014 to B3 from Caa1 upon the closing of its recent refinancing transactions. Concurrently, Moody's affirmed all other credit ratings including the B2 Corporate Family Rating and B2 Probability of Default Rating. The rating outlook is stable. Standard & Poor's Ratings Services assigned Omaha, Neb.-based business process outsourcer West Corp.'s proposed $650 million senior unsecured notes due 2019 its 'B' issue-level rating (one notch lower than the 'B+' corporate credit rating on the company). The recovery rating on this debt is '5', indicating S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. The company will use proceeds from the proposed transaction and some cash on the balance sheet to redeem its $650 million 9.5% senior notes due 2014. WESTMORELAND COAL: Incurs $7.9 Million Net Loss in Second Quarter ----------------------------------------------------------------- Westmoreland Coal Company filed with the U.S. Securities and Exchange Commission its quarterly report on form 10-Q reporting a net loss of $7.91 million on $112.14 million of revenue for the three months ended June 30, 2011, compared with net income of $706,000 on $127.63 million of revenue for the same period during the prior year. The Company also reported a net loss of $26.64 million on $239.90 million of revenue for the six months ended June 30, 2011, compared with a net loss of $3.03 million on $254.07 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $772.37 million in total assets, $952.57 million in total liabilities and a $180.20 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/IoCHBh About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. The Company reported a net loss of $3.2 million on $506.1 million of revenues for 2010, compared with a net loss of $29.2 million on $443.4 million of revenues for 2009. Operating income was $20.5 million in 2010 compared to a loss of $31.8 million in 2009. * * * As reported in the TCR on March 4, 2011, Standard & Poor's Ratings Services said that it assigned a 'CCC+' corporate credit rating to Colorado Springs, Colorado-based Westmoreland Coal Co. The rating outlook is stable. WESTMORELAND COAL: Registers 425,000 Shares of Common Stock ----------------------------------------------------------- Westmoreland Coal Company filed with the U.S. Securities and Exchange Commission a Pre-Effective Amendment No.1 to Form S-1 registration statement relating to the resale, from time to time, by the Westmoreland Coal Company Retirement Plan Trust, referred to as the selling securityholder or the Trust, of up to 425,000 shares of Westmoreland Coal Company common stock. Shares of common stock that may be offered and sold by selling securityholder consist of 425,000 shares contributed by the Company to the Trust in satisfaction of certain funding obligations the Company has to the Trust. The selling securityholder received the securities in a transaction to which the registration requirements of the Securities Act of 1933, as amended, do not apply. The prices at which the selling securityholder may sell the securities will be determined by prevailing market prices or through privately negotiated transactions and the selling securityholder will be responsible for any discounts or commissions due to brokers or dealers. The Company will not receive proceeds from the sale of the securities. The Company has agreed to bear the expenses of registering the securities covered by this prospectus and any prospectus supplements. The Company's common stock is listed on NASDAQ Global Market under the symbol "WLB." On Aug. 3, 2011, the last reported sale price of the Company's common stock on the NASDAQ Global Market was $14.09 per share. A full-text copy of the amended prospectus is available for free at http://is.gd/na9eaI About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. The Company reported a net loss of $3.2 million on $506.1 million of revenues for 2010, compared with a net loss of $29.2 million on $443.4 million of revenues for 2009. Operating income was $20.5 million in 2010 compared to a loss of $31.8 million in 2009. The Company's balance sheet at June 30, 2011, showed $772.37 million in total assets, $952.57 million in total liabilities and a $180.20 million total deficit. * * * As reported in the TCR on March 4, 2011, Standard & Poor's Ratings Services said that it assigned a 'CCC+' corporate credit rating to Colorado Springs, Colorado-based Westmoreland Coal Co. The rating outlook is stable. ZOTA PETROLEUMS: Files for Chapter 11 Bankruptcy Protection ----------------------------------------------------------- Michael Schwartz at Richmond BizSense reports that gasoline sales company Zota Petroleums LLC filed Chapter 11. It disclosed assets of less than $50,000 and liabilities between $1 million and $10 million. Shashikant Zota is listed as president of the business. It is being represented by local attorney Douglas A. Scott. ZOTA PETROLEUMS: Case Summary & 14 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Zota Petroleums LLC 11269 Silverstone Drive Mechanicsville, VA 23116 Bankruptcy Case No.: 11-35079 Chapter 11 Petition Date: August 7, 2011 Court: U.S. Bankruptcy Court Eastern District of Virginia (Richmond) Judge: Douglas O. Tice, Jr. Debtor's Counsel: Douglas Scott, Esq. DOUGLAS A. SCOTT, PLC 1805 Monument Avenue, Suite 311 Richmond, VA 23220 Tel: (804) 257-9860 E-mail: BankruptcyCounsel@gmail.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 14 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/vaeb11-35079.pdf The petition was signed by Shashikant Zota, managing member. * Troubled N.Y. Health-Care Nonprofit May Lose Medicaid License --------------------------------------------------------------- Dow Jones' DBR Small Cap reports that state officials are expected to strip away the Medicaid license of a Bronx health-care nonprofit controlled by an indicted former New York state senator, Pedro Espada, according to individuals familiar with the discussions. * FDIC Discloses Bidders for Small Investor Program Pilot Sale -------------------------------------------------------------- The Federal Deposit Insurance Corporation has closed on the first sales in its Small Investor Program (SIP). The pilot SIP involved two competitive sales of equity interests (each, a Private Owner Interest) in two limited liability companies (LLCs), each formed by the FDIC in its receivership capacity to hold certain assets of FirsTier Bank located in Louisville, Colorado, that failed on January 28, 2011.The assets transferred by the FirsTier receivership to the LLCs consist of 213 loans pooled by loan type. A pool of performing and non-performing commercial real estate loans and commercial acquisition and development and construction loans and credit facilities (the CRE/CADC assets) were transferred to one LLC and a pool of performing and non-performing residential acquisition, development and construction loans and credit facilities (the RADC assets) were transferred to the other LLC. The purchaser of the Private Owner Interest in the LLC holding the CRE/CADC assets was Acorn Loan Portfolio Private Owner IV, LLC. (Acorn), Los Angeles, CA, which is owned by Calista Corporation, a minority-owned business, FACP Mortgage Investments, LLC and entities controlled by Oaktree Capital Group Holdings. The purchaser of the Private Owner Interest in the LLC holding the RADC assets was HRC SVC Pool II Acquisition LLC (HRC), New York, an entity controlled by Hudson Realty Capital LLC, a minority and women owned business. Acorn paid a total of approximately $25.6 million (net of working capital) in cash for its initial 25% equity stake in the LLC holding the CRE/CADC assets; its bid valued the CRE/CADC assets at approximately 65% of the aggregate unpaid principal balance (UPB) of such assets. The CRE/CADC assets are comprised of 116 loans with an aggregate UPB of approximately $158 million with the highest concentration in Colorado (96%). Acorn will provide for the management, servicing and ultimate disposition of the LLC's assets. HRC paid a total of approximately $14.9 million (net of working capital) in cash for its initial 25% equity stake in the LLC holding the RADC assets; its winning bid valued the RADC assets at approximately 43% of the aggregate UPB of such assets. The RADC assets are comprised of 97 loans with an aggregate UPB of approximately $139 million with the highest concentration in Colorado (95%). HRC will provide for the management, servicing and ultimate disposition of the LLC's assets. The pilot SIP sales were conducted on a competitive basis, offering bidders the option to bid on either or both a leveraged structure (for a 50% equity interest) and an unleveraged structure (for an initial 25% equity interest). A total of 13 groups submitted bids to purchase an equity interest in one or both of the newly-formed LLCs. Since both winning bids were unleveraged, the Private Owner of each LLC initially will hold a 25 % Private Owner Interest in such LLC and the FirsTier receivership will hold the remaining 75% equity interest until all equity is returned. After the return of equity, the receivership's interest in each LLC will decrease to 50% and the Private Owner Interest will correspondingly increase to 50%. This pilot program was geared towards the small investor and offered smaller sized asset pools and unique structural features to make it more accessible for smaller investors and increase participation in structured sales while maintaining a level playing field for all investors. * Moody's: U.S. Retail Default Rate Low During Recession -------------------------------------------------------- The rate of retail defaults was "surprising low" and helped businesses to weather the recession of 2007 to 2009, Moody's Investors Service said Aug. 9 in a statement, according to Carla Main at Bloomberg News. "Better inventory management combined with lower capital spending were two factors" in the ability of U.S. retailers to come through the recession, Moody's said. Moody's expects the U.S. speculative-grade default rate for rated retailers to be 1.9% a year from now, said Maggie Taylor, a Moody's vice president. * Federal Home Loan Banks, Depository Trusts Cut by S&P ------------------------------------------------------- Ten of the 12 Federal Home Loan Banks had their issuer credit ratings and related issue ratings downgraded to AA+ from AAA, according to a statement Aug. 8 by Standard & Poor's. The senior debt issued by the Federal Home Loan Bank System was also downgraded to AA+ from AAA, the ratings service said in the statement. In addition, the Federal Farm Credit System had its senior debt rating downgraded to AA+ from AAA by Standard & Poor's. The ratings on the individual farm member banks aren't affected, the ratings company said in the statement. The downgrades of 10 of the 12 Federal Home Loan Banks and the Federal Home Loan Bank System's senior debt "reflect a one-notch reduction in the U.S. sovereign rating," Standard & Poor's said in the statement, referring to the action taken by the ratings company on Aug. 5, when it downgraded the long-term sovereign credit rating on the U.S. to AA+ from AAA, according to the Aug. 8 statement. The outlooks for all 12 Federal Home Loan Banks "are negative," Standard &Poor's said in the statement. Depository Trust and Clearinghouses Depository Trust Co., National Securities Clearing Corp., Fixed Income Clearing Corp., and Options Clearing Corp. saw their long- term counterparty credit ratings downgraded Aug. 8 to AA+ from AAA by S&P. The companies are removed from credit watch negative, where they were placed July 15, S&P said in the statement, and the "applicable short-term counterparty credit ratings are unaffected." The outlooks on Depository Trust and the three clearinghouses "are negative," according to the rating company's statement. The rating actions "follow the lowering of the long-term sovereign credit rating" on the United States of America's long-term sovereign debt that took place on Aug. 5, S&P said in the statement. The downgrades of Depository Trust and the three clearinghouses "are not the result of any company-specific event. We have not changed our view of the fundamental soundness of their depository or clearing operations. Rather, the downgrades incorporate potential incremental shifts in the macroeconomic environment and the long-term stability of the U.S. capital markets as a consequence of the decline in the creditworthiness of the federal government," the ratings company said in the statement. * Ex. Gov. Carey, Who Helped NYC Duck Bankruptcy, Dies at 92 ------------------------------------------------------------ Carla Main at Bloomberg News reports that Hugh Carey, the two-term New York governor who helped New York City avert bankruptcy in 1975 by imposing financial controls and made tough choices on the state level to cut taxes and balance the budget, has died. He was 92. He died early in the day on Aug. 7 at his summer home on New York's Shelter Island, according to a statement from his family released by New York Governor Andrew Cuomo's office. "Governor Carey led our state during a time of great financial turmoil and pulled us back from the brink of bankruptcy and economic ruin," Mr. Cuomo said in a statement. A Democrat who served in Congress as a representative from the New York borough of Brooklyn, Carey made financial discipline a priority from his first days after taking over as governor in 1975. By then, New York City was already in a fiscal crisis. Within months, banks cut off the city's access to credit because it had run up a $5 billion deficit by borrowing to pay operating expenses and loans. With his hand-picked partner from Wall Street, financier Felix Rohatyn, Gov. Carey oversaw the effort that rescued the city from a bond default. Ultimately, U.S. government help was needed to save the city -- and its last-resort lender, the state -- from default. * Dallas Bankruptcy Lawyer Mark Ralston Joins Taber Estes Thorne ---------------------------------------------------------------- The Dallas-based law firm of Taber Estes Thorne & Carr PLLC is disclosed that Mark H. Ralston has joined the firm as a Partner. With a national bankruptcy practice, Mr. Ralston represents businesses in proceedings and related litigation in trial and bankruptcy courts across the country. He has more than 20 years of experience representing secured and unsecured creditors, creditor committees, purchasers in Section 363 sales, Chapter 11 debtors and Chapter 7 bankruptcy trustees. "The team at Taber Estes Thorne & Carr is exceptional in both legal talent and client service," says Mr. Ralston, who is recognized in D Magazine's listing of The Best Lawyers in Dallas. "I am thrilled to be joining an outstanding group of lawyers, and I'm looking forward to the great work we will continue to do for clients." Prior to joining the firm, Mr. Ralston was a Partner and founder of the Dallas office of Ciardi Ciardi & Astin. He earned his law degree from the University of Virginia School of Law, where he was a Moot Court board member. He earned his undergraduate degree, with distinction, from the University of Virginia College of Arts & Sciences. Taber Estes Thorne & Carr PLLC -- http://www.taberestes.com/-- is one of the few certified women-owned law firms in Dallas. It features a collaborative team of highly experienced attorneys, representing clients in business litigation and transactions, labor and employment, family law, health care, energy, construction, bankruptcy, insurance and other corporate legal matters. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In Re Ana Duenas Bankr. C.D. Calif. Case No. 11-42822 Chapter 11 Petition filed August 1, 2011 In Re Juana Kennedy Bankr. C.D. Calif. Case No. 11-42836 Chapter 11 Petition filed August 1, 2011 In Re Raymond Albers Bankr. C.D. Calif. Case No. 11-20746 Chapter 11 Petition filed August 1, 2011 In Re Richard Byrd Bankr. C.D. Calif. Case No. 11-42757 Chapter 11 Petition filed August 1, 2011 In Re Progeny Corporation Bankr. E.D. Calif. Case No. 11-38855 Chapter 11 Petition filed August 1, 2011 filed pro se In Re Ohlone I, LLC Bankr. N.D. Calif. Case No. 11-57222 Chapter 11 Petition filed August 1, 2011 filed pro se In Re Harvey's Caretaking, Inc. Bankr. M.D. Fla. Case No. 11-14707 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/flmb11-14707.pdf In Re FM Land, LLC Bankr. N.D. Ga. Case No. 11-72077 Chapter 11 Petition filed August 1, 2011 filed pro se In Re Eber Freitas Bankr. D. Mass. Case No. 11-17343 Chapter 11 Petition filed August 1, 2011 In Re Ivan Rubio Bankr. D. Mass. Case No. 11-17322 Chapter 11 Petition filed August 1, 2011 In Re Carlos Rubio Bankr. D. Mass. Case No. 11-17323 Chapter 11 Petition filed August 1, 2011 In Re Detroit Global Properties, LLC Bankr. E.D. Mich. Case No. 11-60838 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/mieb11-60838p.pdf See http://bankrupt.com/misc/mieb11-60838c.pdf In Re Ace Lock & Key Service, Incorporated Bankr. W.D. Mo. Case No. 11-43622 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/mowb11-43622p.pdf See http://bankrupt.com/misc/mowb11-43622c.pdf In Re Phil Rosequist Bankr. D. Nev. Case No. 11-22184 Chapter 11 Petition filed August 1, 2011 In Re BIGR Enterprises, Inc. dba Dante's Pizzeria & Ristorante Bankr. D. N.J. Case No. 11-33064 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/njb11-33064.pdf In Re Frank R. DePaola DDS Associates, LLC Bankr. D. N.J. Case No. 11-33051 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/njb11-33051.pdf In Re Robert Barnhill Bankr. E.D. N.C. Case No. 11-05840 Chapter 11 Petition filed August 1, 2011 In Re Robert Barnhill Bankr. E.D. N.C. Case No. 11-05844 Chapter 11 Petition filed August 1, 2011 In Re Kevin Edgell Bankr. N.D. Ohio Case No. 11-16695 Chapter 11 Petition filed August 1, 2011 In Re Miguel Ramos Rivas Bankr. D. Puerto Rico Case No. 11-06544 Chapter 11 Petition filed August 1, 2011 In Re Juan Aparicio Bankr. E.D. Texas Case No. 11-42385 Chapter 11 Petition filed August 1, 2011 In Re Donald Valden Bankr. N.D. Texas Case No. 11-44389 Chapter 11 Petition filed August 1, 2011 In Re Hickox Road Development, LP Bankr. N.D. Texas Case No. 11-34927 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/txnb11-34927.pdf In Re Sheryl Overbeck Bankr. N.D. Texas Case No. 11-34920 Chapter 11 Petition filed August 1, 2011 In Re Arthur Levine Bankr. S.D. Texas Case No. 11-36549 Chapter 11 Petition filed August 1, 2011 In Re Joe and Abe Enterprises, L.L.C. Bankr. S.D. Texas Case No. 11-36687 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/txsb11-36687.pdf In Re Aziz Shakarzahi Bankr. W.D. Texas Case No. 11-31481 Chapter 11 Petition filed August 1, 2011 In Re EMB, Inc. Bankr. W.D. Texas Case No. 11-52672 Chapter 11 Petition filed August 1, 2011 See http://bankrupt.com/misc/txwb11-52672.pdf In Re John Stephenson Shirley Stephenson Bankr. W.D. Texas Case No. 11-60851 Chapter 11 Petition filed August 1, 2011 In Re Perfect Shape Bankr. W.D. Texas Case No. 11-11920 Chapter 11 Petition filed August 1, 2011 filed pro se In Re Douglas E. Darling Bankr. E.D. Va. Case No. 11-15658 Chapter 11 Petition filed August 1, 2011 In Re Bert Briones Bankr. C.D. Calif. Case No. 11-20818 Chapter 11 Petition filed August 2, 2011 In Re Christopher Clemens Bankr. C.D. Calif. Case No. 11-13675 Chapter 11 Petition filed August 2, 2011 In Re Gwendolyn Williams Bankr. C.D. Calif. Case No. 11-19245 Chapter 11 Petition filed August 2, 2011 In Re Mathew Chavol Bankr. C.D. Calif. Case No. 11-19243 Chapter 11 Petition filed August 2, 2011 In Re Rosario Perry Bankr. C.D. Calif. Case No. 11-20817 Chapter 11 Petition filed August 2, 2011 In Re DKW Precision Machining Inc. Bankr. E.D. Calif. Case No. 11-38958 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/caeb11-38958.pdf In Re Kenneth Knighten Bankr. E.D. Calif. Case No. 11-38954 Chapter 11 Petition filed August 2, 2011 In Re Digvijay Patel Bankr. N.D. Calif. Case No. 11-12930 Chapter 11 Petition filed August 2, 2011 In Re Omer Beaird Bankr. N.D. Calif. Case No. 11-32846 Chapter 11 Petition filed August 2, 2011 In Re Thomas Burdick Bankr. N.D. Calif. Case No. 11-12934 Chapter 11 Petition filed August 2, 2011 In Re Bertha LLamas Bankr. S.D. Calif. Case No. 11-12994 Chapter 11 Petition filed August 2, 2011 In Re Green Cedar, LLC Bankr. M.D. Fla. Case No. 11-05716 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/flmb11-05716.pdf In Re Magno Reategui Bankr. M.D. Fla. Case No. 11-11732 Chapter 11 Petition filed August 2, 2011 In Re Paul Kappel Bankr. M.D. Fla. Case No. 11-05735 Chapter 11 Petition filed August 2, 2011 In Re Randall Callahan Bankr. M.D. Fla. Case No. 11-14749 Chapter 11 Petition filed August 2, 2011 In Re Time 48 Inc. Bankr. S.D. Fla. Case No. 11-31679 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/flsb11-31679.pdf In Re ODC 140 100, LLC Bankr. N.D. Ga. Case No. 11-72630 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/ganb11-72630.pdf In Re ODC 140 200, LLC Bankr. N.D. Ga. Case No. 11-72633 Chapter 11 Petition filed August 2, 2011 In Re ODC Oakside, LLC Bankr. N.D. Ga. Case No. 11-72638 Chapter 11 Petition filed August 2, 2011 In Re Ricky Martin Bankr. N.D. Ga. Case No. 11-72643 Chapter 11 Petition filed August 2, 2011 In Re 4755 South St. Lawrence LLC Bankr. N.D. Ill. Case No. 11-31667 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/ilnb11-31667.pdf In Re Red-Wies, Inc. Bankr. S.D. Iowa Case No. 11-03127 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/iasb11-03127.pdf In Re Ruhieh Zayed Bankr. M.D. La. Case No. 11-11222 Chapter 11 Petition filed August 2, 2011 In Re Prlanta of Michigan, Inc. fdba Prlanta of Michigan, Inc. dba Prlanta Fine Jewelry & Timepieces Bankr. E.D. Mich. Case No. 11-60979 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/mieb11-60979p.pdf See http://bankrupt.com/misc/mieb11-60979c.pdf In Re George Newkirk Bankr. E.D. N.C. Case No. 11-05896 Chapter 11 Petition filed August 2, 2011 In Re John Elmore Bankr. E.D. N.C. Case No. 11-05900 Chapter 11 Petition filed August 2, 2011 In Re Sirena B1, LLC Bankr. D. N.J. Case No. 11-33151 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/njb11-33151.pdf In Re V.M.E.P. CORP. Bankr. E.D.N.Y. Case No. 11-46702 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/nyeb11-46702.pdf In Re SMK Laundromat, Inc. Bankr. S.D.N.Y. Case No. 11-13697 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/nysb11-13697.pdf In Re Equino Properties, L.L.C. Bankr. S.D. Texas Case No. 11-50179 Chapter 11 Petition filed August 2, 2011 See http://bankrupt.com/misc/txsb11-50179.pdf In Re Isaac Adkison Bankr. S.D. Texas Case No. 11-36728 Chapter 11 Petition filed August 2, 2011 In Re Daniel Rivera Bankr. D. Ariz. Case No. 11-22335 Chapter 11 Petition filed August 3, 2011 In Re Jay Lester Bankr. D. Ariz. Case No. 11-22307 Chapter 11 Petition filed August 3, 2011 In Re Force -JRG, LLC Bankr. C.D. Calif. Case No. 11-43051 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/cacb11-43051.pdf In Re Scott Tene Bankr. D. Colo. Case No. 11-28506 Chapter 11 Petition filed August 3, 2011 In Re Dunrite Metal Fabricators, Inc. Bankr. M.D. Fla. Case No. 11-14777 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/flmb11-14777p.pdf See http://bankrupt.com/misc/flmb11-14777c.pdf In Re Sheila Bates Bankr. M.D. Fla. Case No. 11-05752 Chapter 11 Petition filed August 3, 2011 In Re David Sinbela Bankr. S.D. Fla. Case No. 11-31761 Chapter 11 Petition filed August 3, 2011 In Re Peters Machine, Inc. Bankr. C.D. Ill. Case No. 11-72051 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/ilcb11-72051.pdf In Re Hillstreet Overlook, LLC Bankr. D. Md. Case No. 11-25891 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/mdb11-25891.pdf In Re Christopher Bunker Bankr. D. Nev. Case No. 11-22356 Chapter 11 Petition filed August 3, 2011 In Re Agunloye Development Corporation Bankr. S.D.N.Y. Case No. 11-23575 Chapter 11 Petition filed August 3, 2011 filed pro se In Re Cafe Amore of N.Y. Restaurant, Inc. dba Cafe Amore Bankr. S.D.N.Y. Case No. 11-13705 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/nysb11-13705.pdf In Re Tim Smith Enterprises, LLC Bankr. M.D. N.C. Case No. 11-51205 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/ncmb11-51205.pdf In Re Energy Concepts, Inc. dba ECI dba ECI Concepts Bankr. E.D. Pa. Case No. 11-16153 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/paeb11-16153.pdf In Re John Richardson Bankr. M.D. Tenn. Case No. 11-07697 Chapter 11 Petition filed August 3, 2011 In Re John M. Richardson, Jr., P.C. Bankr. M.D. Tenn. Case No. 11-07696 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/tnmb11-07696.pdf In Re GGS Enterprises, Inc. dba Certified Electric Electrical Contractors Bankr. W.D. Texas Case No. 11-52724 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/txwb11-52724.pdf In Re Beam, Inc. Bankr. S.D. W.Va. Case No. 11-30500 Chapter 11 Petition filed August 3, 2011 See http://bankrupt.com/misc/txeb11-30500.pdf In Re Jin-Hyung Lee Bankr. W.D. Wash. Case No. 11-19231 Chapter 11 Petition filed August 3, 2011 In re Michael D. Irwin Bankr. M.D. Ala. Case No. 11-81167 Chapter 11 Petition filed August 4, 2011 See http://bankrupt.com/misc/almb11-81167.pdf ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, 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 ***